THE NEW ZEALAND OFFICIAL 1990 YEAR BOOK

Cover

The History of Migration to and Settlement of Pito-one (Petone) 1840–1990 (after James Turkington 1940).

A series of acrylic mural paintings by Irena Stenner and Grant Corbishley, 1989.

Petone Settlers Museum (Te Whare Whakaaro o Pito-one).

The mural by James Turkington originally decorated the four walls in the foyer of the Wellington Provincial Centennial Memorial, built on the Petone foreshore in 1940. A number of events were also staged on the beach nearby, which is where the first New Zealand Company settlers landed.

The painting, along with the building, subsequently fell into disrepair and was painted over in the late 1970s, at about the time the building was refurbished and converted to the Petone Settlers Museum. The only record of the original mural remaining was a series of black-and-white photographs held by the Alexander Turnbull Library in Wellington. When it was decided to commission the repainting for the 1990 commemorations, these were used as a basis, although two new panels were added.

New Zealand Official Yearbook
Cat. no. 01.001
ISSN 0078–0170

Recommended retail price:
      — softcover $49.95 (incl. GST)
      — hardcover $69.95 (incl. GST)

Published by the Department of Statistics.

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Table of Contents

List of Tables

Foreword

The ultimate shape of any society is determined by the choices made by its people in their everyday lives. Sometimes they are choices forced upon them by extraordinary circumstances.

The focus of early historians was upon the large events of history and the prominent characters. Then came the modern, social historians who asked about ordinary people's lives, about the size of their families, where they lived, why they moved, how much they earned, what happened to their land, what they believed in, or died of.

Probably the most important and lasting effect of the 1990 commemorations is a thoughtful reassessment of our country by its citizens at large. People are realising any future we may have presupposes a present and a past which are all ultimately related. So we look to perceive patterns which might help us understand what really makes us tick as New Zealanders.

And we are very lucky, because for most of the past 150 years, quietly providing a full and informative record of the changing shape of our lives, have been the New Zealand Official Yearbooks. They have provided students of geography and social history with a remarkable and respected source of accessible, accurate, up-to-date information.

For this high standard of service I commend the Department of Statistics and all who have worked on the Yearbooks. They have made a contribution to the accurate charting of our heritage which is gaining more and more public recognition.

Now, there is this special edition to mark 1990. It is a fitting landmark which will be a highlight in our records. I do not think any collection of reference books can afford to be without a copy. I hope the Official Yearbooks continue to chronicle our lives and land.


PAUL REEVES, Governor-General.

The New Zealand coat of arms

New Zealand has had its own coat of arms since 1911. Prior to that the United Kingdom coat of arms (featuring a lion and a unicorn on either side of a shield and crown) was used. This design still adorns the top of the pediment on the Old Government Buildings in Wellington, which were built in 1875 to house the colony's public service.

One of the few specific changes to flow on from the granting of dominion status in 1907, was the right for New Zealand to have its own coat of arms. The design below was approved by royal warrant on 26 August 1911. It appeared in the 1912 Yearbook in colour, along with a written description in full heraldic jargon.

The coat of arms was revised in 1956. This time in the wake of further constitutional changes which saw the country become the ‘Realm of New Zealand’ instead of ‘Dominion’. Accordingly, the Union Jack and British lion were replaced by St Edward's Crown, which had been worn by Queen Elizabeth II at her coronation.

At that same time the dress of the figures at the side of the shield was revamped, some Victorian-looking scroll work at the base of the design was replaced by two ferns, and the motto ‘onward’ was replaced by ‘New Zealand’. The new coat of arms appeared in full colour at the beginning of the 1963 and subsequent Yearbooks, and this is reproduced below.

Preface

Readers will notice the changes from earlier editions with the 1990 edition of the New Zealand Official Yearbook. Apart from the obvious change of size, there are also major differences in content.

The 94th edition of the Official Yearbook not only provides the regular statistics and other authoritative reference material on New Zealand, but also a wealth of historical material on many different topics, much of which has been reproduced or derived from earlier editions.

The departmental editors have managed to counterpoint the contemporary information with historical text, graphics and photographs, and the result is a volume with frequent changes of perspective as the reader peruses it. I am sure that readers will find the mixture both interesting and informative.

The Official Yearbook can trace its origins in time to a number of different dates last century. It was not known as the Official Yearbook until 1893, but a precursor, the Handbook of New Zealand was prepared as early as 1875. Although not strictly the Official Yearbook's centennial, the 1990 commemorative year was seen as an appropriate time for a special edition.

The preparation of the 1990 Official Yearbook has involved even more contributors than usual, with several hundred persons in various departments and other organisations contributing. Many persons have also given generously of their private time, particularly in the preparation of historical material. All contributors are acknowledged at the end of each chapter, but on behalf of the department I would like to offer my thanks to all concerned. I also record my appreciation of the fine work of the Department of Statistics editorial and graphic design staff, as well as those at the Government Printing Office, who have successfully completed their tasks under considerable time pressure. My special thanks go to Bob White, the Chief Editor of the Official Yearbook, for turning the concept of the 1990 commemoration edition into a product of such excellence.

Despite the emphasis on history, this is not the last edition of the Official Yearbook of course. It will return in the second half of 1991—in its usual format—and continue to chronicle developments in New Zealand as a nation, while providing an authoritative reference work that New Zealanders can use from day to day.

In regard to the specific statistical content of the Official Yearbook, readers should understand that the volume contains only a very small fraction of available official statistics. Just because statistics are not in the Official Yearbook do not assume, as sometimes happens, that they are not available. A written or telephone inquiry to the Department of Statistics will readily reveal the full range of available statistics.

I welcome you as a reader of this special edition of the New Zealand Official Yearbook, and hope that it provides an effective source for meeting a wide range of public information needs.


S. KUZMICICH
Government Statistician

June 1990.

Acknowledgements

The 1990 Yearbook was produced by the Information Services Branch of the Department of Statistics, with the assistance of many individuals and organisations—these are listed in the ‘Contributors’ section at the end of each chapter, but the department wishes to record its thanks here.

Deputy Government Statistician: Len Cook.
Manager: Kevin Eddy.

Editor: Bob White.
Assistant editors: Elizabeth Stone; Don Hunter; lain Malcolm; Michael Biggs.
Designer: Alistair Stewart.
Maps and diagrams: Peter McGrath; Maureen Metcalfe.
Photograph editor: Athol McCredie.
Proofreading: Jane Hunt; Myra Page.

Photographs

Individual photographs are credited separately, usually at the bottom right-hand corner. Two abbreviations have been used in crediting photographs. ‘NM’ denotes the National Museum as the source of a photograph, while ‘ATL’ refers to the Alexander Turnbull Library. All credits are given in roman type, with individual collections) within larger collections given in italics (e.g., ATL, McAllister refers to the McAllister Collection within the Alexander Turnbull Library).

The editors record their thanks to the many individuals and institutions who made photographs available—particularly the staff of the Alexander Turnbull Library.

Thanks is also expressed to the individual artists and owners of works of art featured in the section ‘Some New Zealand landscape art’.

A Yearbook for New Zealand

The New Zealand government has published a Yearbook of one form or another for more than a century—this volume is an attempt to place this publishing heritage before a wider audience than the historians, economists, and other researchers who frequently begin their research into particular topics in the pages of early Yearbooks and Handbooks.

As such it is not a complete unearthing of what earlier Yearbooks contain, instead it offers only a glimpse. A wider view of many subjects will be found in the rows of earlier Yearbooks in the country's libraries.

The Yearbook traces its origins to the Official Handbook of New Zealand—a Collection of Papers by Experienced Colonists on the Colony as a Whole and in the Several Provinces. This publication, which was printed in England and largely circulated there, appeared in 1875. It was edited by Julius Vogel (later Sir), the Premier of New Zealand, who was at the time leading the country through a period of rapid growth—largely based on capital borrowed overseas. Its purpose was to give ‘a New Zealand view of New Zealand to those who may think of making in the colony their homes or the theatre of business operations’. The book's well-written articles, generously illustrated with woodcuts and photographs, make interesting reading to this day. Although its purpose made it perhaps a little too sanguine.

A new Handbook was issued in parts during 1883–84. It had a similar purpose to its predecessor, but was largely revised—reflecting the rapid political, social and economic changes taking place in the country. Also, by this time the colonial economy was beginning to wane—and this was reflected.

The first Handbooks published and printed in New Zealand appeared in 1891. Early in that year the Report on the Statistics of New Zealand, 1889 was produced by the Registrar-General's office. Later in the year a similar volume was produced that was based on 1890 statistics. Both books were concise (at about 200 pages) and contained a brief history (discovery and early settlement) and a description of the physical features of New Zealand, followed by descriptive and interpretative comment on each of the main classes of statistics published in the annual statistical report. Appendices included a diary of principal events in the history of the colony, the customs tariff, and a brief article on the thermal springs district of New Zealand.

The following year, 1892, saw the appearance of the more ambitious New Zealand Official Handbook, also published by the Registrar-General, E. J. Von Dadelszen, but in the name of the Premier, Balance.

Its 350 pages included a list of successive Parliaments, Premiers, foreign consuls, members of both houses, the principal government officials, and, among other things, an ecclesiastical section. A 64-page commentary on official statistics followed. Articles on special subjects ranging from agriculture to mineral waters concluded the main section of the Handbook, comprising 165 pages. An appendix of 62 pages dealt with lands open for selection, the customs tariff, postal information, and principal events (a feature which has continued to the present). This volume, like its predecessors, was written largely for the information of new or prospective settlers.

In 1893 the first New Zealand Official Yearbook appeared. The government had decided to publish the book annually, and it began the series that has continued to this day. The book was divided into three parts: part 1 included the introductory, official and statistical sections; part 2 contained over 40 articles on special subjects; and the third part contained a detailed description of each land district in New Zealand—locality by locality.

The Yearbook continued in substantially the same format for several years, although there was a gradual change in emphasis until, by the early years of the twentieth century, the considerably expanded volume was intended as a reference work for New Zealanders, and less for intending settlers.

A feature of the earlier issues of the Yearbook was the inclusion of many plates of scenery to accompany colourful descriptive articles. Also, at a time of strong economic growth and new prosperity and assurance for the colony, numerous hand-colour block diagrams and pictograms were included—showing the many areas of progress.

By 1913 the Yearbook had grown to 988 pages and still appeared in three parts—introductory (largely official), statistical, and articles on special subjects. The 1913 issue also contained for the first time a bibliography of works on New Zealand.

During World War I, shortages of staff and paper, and other priorities, saw the Yearbook shrink to a relatively ‘slim’ 700 pages. By the end of the war the transition from guidebook to reference work was complete.

Gone were all the photographs and diagrams and most of the special articles on topical subjects as they arose. Accordingly, the style of writing also changed—to a more sparse and ‘modern’ style, as would be expected from an official reference book.

The post-war slump, combined with severe paper shortages, saw the book shrink from 968 to 414 pages in 1920, the smallest issue this century. The next volume—a combined one covering 1921 and 1922—was in an entirely new form, the demi-octavo size of page previously used giving way to the royal octavo, a size retained until the 1988–89 edition. The book was entirely rearranged, several new sections were introduced, and new features included in existing sections.

In those days of ‘hot metal’ letterpress printing, the trays of lead type that made up each page were stored at the Government Printing Office, with amendments made line-by-line (or ‘slug’ of type) for each edition. ‘Re-casting’ the entire type for the Yearbook was not completed again until well after World War II (in 1953). From about this time the first graphs and black-and-white plates began to reappear in the book after a gap of 40 years.

Yearbook sales, like everything else about the book, remained steady at about 5000 copies per annum or less for most years until the 1960s. In 1961 it was again reformatted and a more ‘vigilant’ editorial policy began to emerge. This, coupled with a relatively-stable (and heavily subsidised) cover price of between 15/- and £1, saw sales begin to increase steadily—eventually to reach a peak of over 12 000 copies per edition in the late 1970s (as recently as 1981 the 1040-page volume sold for less than $10).

The two decades from 1960 were, in many ways, the heyday of the Yearbook as a reference volume. It faced little competition as an authoritative source of information on New Zealand, and was fairly heavily subsidised. Also, as it became more assured in its coverage of ‘routine’ facts and figures, it began to branch out into increasing numbers of special articles and photographic supplements on topical subjects—or, if nothing else was available, New Zealand scenery. This was, in a sense, a return to the approach of the first Handbooks and Yearbooks. In 1974, the Commonwealth Games at Christchurch saw the first colour photograph supplement, and these were to be an annual feature until the early 1980s.

The 1980s were, in turn, to see major changes for New Zealand's Yearbook. The revolution in printing and information technology that has taken place from the late 1970s was to affect sales badly as it failed to capitalise on the new technologies and several new reference works appeared in competition. At the same time the price subsidy was reduced, leading to sales falling to just over a third of their former levels by about the middle of the decade. A soft cover was introduced in 1983 to keep the purchase price down.

Despite being converted to the new ‘cold-type’ and offset printing process in 1978, the Yearbook continued to be presented largely as it had been for 70 years, while its statistics were available from a range of more up-to-date sources, and it had failed in many ways to keep step as a general reference on New Zealand. At the same time, in an age of on-line access to computer databases and a general passion for up-to-the-minute information, the need for a ‘chronicle’ was not widely perceived.

After 1930s-level sales in 1986 (4500 copies), the Yearbook has begun to recover some of its lost sales and restore itself to its former position as a New Zealand reference work of first resort.

This edition takes stock of the Yearbook's long publishing heritage and illustrates some aspects of its role as a chronicle over more than a century. Whether this role will be retained for another century remains to be seen.

How to use the 1990 Yearbook

As a new reader of the New Zealand Official Yearbook you may be surprised at the range of information within its pages. But, like any other reference work, the Yearbook is only as effective as its information is accessible. The following notes are therefore included to familiarise you with the book.

What is the Yearbook?

As noted above, the aims and functions of the New Zealand Official Yearbook have changed with the times. Today, its editors publish with two main purposes in mind. Firstly, it is a compendium of facts and figures on New Zealand. Secondly, it is an annual describing major changes in New Zealand's administrative framework for the year preceding publication.

The Yearbook does not usually contain the latest or most detailed statistics on particular topics, but it does tell its readers where the latest or more detailed figures or information are available. Also, the historical material included in the 1990 Yearbook, while accurate, is obviously not complete. Rather it is illustrative and has been included to complement the current facts and figures.

Finding your way

There are two likely ways you will look for information.

If your question is general, for example ‘How is New Zealand governed?’, then you will probably refer firstly to the table of contents (beginning overleaf), which lists not only chapter headings but major sections within chapters. In approaching the book this way it is worth bearing in mind that the 26 chapters follow a ‘logical’ progression. The first few chapters describe the physical setting as well as New Zealand's history, system of government and international relations. A description of its people comes next, followed by social framework and institutions. Chapters 12–21 describe New Zealand's work-force and industries, while the final chapters of the book discuss the nation in broad economic terms.

Throughout the book cross references are made, usually by reference to numbered sections within chapters (which appear at the head of each right-hand page).

If, on the other hand, your question is more specific, for example ‘How many people drown while boating each year?’, then the book is thoroughly indexed, and a brief note on the system used can be found at the beginning of the index.

To find historical information simply follow the same steps as to find contemporary facts and figures.

About the history

The 1990 Yearbook is in a sense two books—one about today and another about the past—and at times the relationship between current and historical material can be confusing. One or two ‘rules of thumb’ can eliminate this confusion. The first point to remember is that current text and tables appear only in the wider column on each page and in the same typeface as you are reading. The second is that historical material appears only in the narrower column of type—in another typeface and usually with a colour background.

A third rule to remember is that all text or tables reproduced from earlier Yearbooks appears in italic type—again only in the narrow column.

If it is not given in the text, the year any text originally appeared is given in boldface type below. Where photographs or diagrams are reproduced from earlier-editions, the date of the Yearbook they appeared in is given in small print below the left-hand corner.

Remember, historical material reproduced from earlier editions does not necessarily reflect the view of the Department of Statistics or any other Yearbook contributor today—but it is reproduced word-for-word as it originally appeared (in italic type).

Deadline for statistics

Because the Yearbook covers such a broad range of subjects, few of its statistics are being published for the first time. Many statistics from government departments and other organisations have been published late in the year preceding publication.

For this edition the figures published are at least the latest available at 1 January 1990.

Tables

If the source of a particular table is other than the Department of Statistics, then it is noted at the base of the table. Tables are usually for the year ended 31 March, or for the calendar year. Most tables indicate the months in which the years end, and where a single year is indicated and no month is mentioned the figures can be assumed to be for the calendar year. Where two years are given together, e.g., 1988–89, and no month is mentioned, it can be assumed the figures are for the year ended 31 March.

The following symbols are used in all the tables:

Figures are often rounded-off to the nearest thousand or some convenient unit. Sometimes this rounding results in tables with totals which disagree slightly with the total of the individual items shown.

Statistics from the 1981 and 1986 Censuses of Population and Dwellings have been subject to a process of random rounding, whereby all cell values, including row and column totals, have been rounded. Individual figures will therefore not necessarily add up to the stated totals.

Weights and measures, and a glossary of statistical terms used, are given at the back of the book.

Further information

If you require general information on a topic the ‘Further information’ section at the end of each chapter provides a brief list of official publications relevant to that chapter. Contributing organisations are also listed in the order of appearance at the end of each chapter, and a list of Department of Statistics publications can be found at the back of the book.

Colophon

Special articles in earlier Yearbooks

1892 Building stones; Varieties of soil.

1894 Acclimatisation; Co-operative system of constructing public works; Frozen meat trade; Labour in New Zealand; Railways in New Zealand: their history and progress; Sheep fanning; The Southern Alps; State farms; The West Coast Sounds:

1895 Shipping companies; The Wellington-Manawatu railway.

1896 Laws of England and New Zealand, difference between.

1897 Waihi Gold Mining Co.

1898 Mount Cook: its glaciers, and the Hermitage; A scenic wonderland.

1899 Christchurch to West Coast, journey from; Forest trees and the timber industry'; The gold dredging industry; The Mount Cook district; Journeys in Central North Island; Tuhoeland.

1900 The Chatham Islands; Coal deposits of New Zealand; The hemp industry'; Kauri gum; Maori mythology; Ascent of Mount Sefton, and a night on Mount Cook; New Zealand contingents for South Africa; Pumicestone deposits of New Zealand; Up the Wanganui River, to Tokaanu.

1901 Maori religion; The Marlborough Sounds, and Otago lakes.

1902 Cook Islands, the law of; The neolithic Maori.

1903 Maori sociology.

1905 Colour sense of the Maori.

1906 Maori marriage customs.

1907 Amusements, games, etc. of the ancient Maori; New Zealand International Exhibition.

1908 Clothing, etc. of the ancient Maori.

1912 Agriculture in New Zealand

1913 HMS New Zealand and government training ship Amokura; Mineral waters of New Zealand.

1915 The external trade of New Zealand.

1919 Topographical nomenclature of the Maori; Wages and working hours in New Zealand.

1925 Education system of New Zealand; Effect of nativity order on infant mortality; Local government in New Zealand; Terman intelligence tests in New Zealand schools.

1926 Cancer in New Zealand: a statistical study; The totalisator.

1927 Mission of the Britomart at Akaroa in August 1840; Mortality rates.

1929 Livestock production.

1938 Dairy farm survey; Ross Dependency.

1940 Plants and fauna; Libraries; Tourist attractions, mineral waters and spas.

1946 The Alexander Turnbull Library; The National Film Unit.

1947–49 Retail prices in New Zealand.

1950 Economic policy and national income.

1951–52 Department of Scientific and Industrial Research; Standardisation.

1953 Sources of statistical information.

1954 Royal Tour of New Zealand, 23 December 1953 to 31 January 1954.

1955 New Zealand tourist industry, tourist and sporting attractions.

1956 Royal Commission on Monetary, Banking, and Credit Systems.

1957 Consumers Price Index—1955 revision.

1958 New Zealand activities in the Antarctic.

1959 New Zealand's international activities.

1960 Grassland research in New Zealand.

1961 University education for science and technology.

1962 New Zealand and the European Economic Community.

1963 Royal visit, February 1963; The development of New Zealand's railway system 1863–1963.

1964 The arts in New Zealand.

1965 The Maori people as shown by the Population Census 1961.

1966 Industrial relations—the next ten years and beyond; Population growth and economic development in New Zealand.

1967 Scientific research in New Zealand.

1968 Recent constitutional changes in the South-west Pacific.

1969 National Development Conference 1969; Development of forestry and forest industries; Captain James Cook and his three voyages of discovery in the Pacific 1768–79.

1970 Metrication; Human pressures on the natural environment.

1971 Ministry of Works, 1871–1971.

1972 Evolution of social security in New Zealand; The New Zealand dairy industry 1871–1971.

1973 Development of the meat industry 1922–72; New Zealand membership of the Organisation for Economic Co-operation and Development;

1974 Tenth British Commonwealth Games 1974; New Zealand ports and shipping developments.

1975 Revision of Consumers Price Index 1974; Household Sample Survey 1973–74; Input-output analysis: an abacus for economists.

1976 Tourism, the invisible export; One hundred years of Lands and Survey.

1977 Royal visit 1977; New Zealand at the turning point; Education in the New Zealand community.

1978 Abbreviations, contractions, and acronyms; General Price Index.

1979 Abbreviations, contractions, and acronyms (revised); The child and learning in a multi-cultural society.

1980 The New Zealand environment and changes in environmental management since 1970; Life tables: a measure of life expectancy.

1981 The golden fleece: the evolution of the New Zealand wool industry; Consumers Price Index 1980 revision.

1982 General election 1981; A century of meat exports.

1984 INFOS (Information Network for Official Statistics).

1985 New Zealand women: their changing situation, 1970–84.

1986–87 Goods and services tax.

1987–88 National parks centennial.

1988–89 New Zealand's immigration policy; Te reo Maori; New directions in social policy.

Chapter 1. Geography

1.1 Physical features

New Zealand lies in the south-west Pacific Ocean and consists of two main, and a number of smaller islands, whose combined area of 270 000 square kilometres is similar to the size of Japan or the British Isles.

The main North and South Islands are separated by Cook Strait, which at its narrowest point is 20 kilometres wide. They lie on an axis running from north-east to south-west, except for the low-lying Northland peninsula. The administrative boundaries of New Zealand extend from 33° to 53° south latitude, and from 162° east to 173° west longitude. In addition to the main and nearby islands, New Zealand also includes the following small inhabited outlying islands: the Chatham Islands, 850 kilometres east of Christchurch; Raoul Island in the Kermadec Group, 930 kilometres north-east of the Bay of Islands; and Campbell Island, 590 kilometres south of Stewart Island. New Zealand also has jurisdiction over the territories of Tokelau and the Ross Dependency, which are described in chapter 4.

Table 1.1. LAND AREA OF NEW ZEALAND*

Land areaSize

* These figures were current at 1 December 1989. New mapping techniques mean there are regular small adjustments.

Includes islands in territorial local authorities.

Excluding islands in territorial local authorities.

Source: Department of Survey and Land Information.

 sq. km.
North Island115,777
South Island151,215
Offshore islands833
Stewart Island1,746
Chatham Islands963
                Total270 534

New Zealand is more than 1600 kilometres long and 450 kilometres wide at its widest part, and has a long coastline for its area. The coast is very indented in places, providing many natural harbours. The country is also very mountainous, with less than a quarter of the land less than 200 metres above sea level. In the North Island the main ranges run generally north-east to south-west, parallel to the coast, from East Cape to Cook Strait, with further ranges and four volcanic peaks to the north-west. The South Island is much more mountainous than the North Island. A massive mountain chain, the Southern Alps, runs almost the length of the island. There are many outlying ranges to the Southern Alps in the north, and the south-west of the South Island. There are at least 223 named peaks higher than 2300 metres. There are also 360 glaciers in the Southern Alps. The largest are, on the east, the Tasman (length 29 kilometres), Murchison (17 kilometres), Mueller (13 kilometres), Godley (13 kilometres) and the Hooker (11 kilometres), and, on the west, the Fox (15 kilometres) and the Franz Josef (13 kilometres).

Table 1.2. PRINCIPAL MOUNTAINS

Mountain or peakElevation

* Since 1986 both the Maori and European names of this mountain have had official recognition.

Peaks over 5000 metres.

Source: Department of Survey and Land Information.

 metres
North Island—
     Ruapehu2,797
     Taranaki or Egmont*2,518
     Ngauruhoe2,290
     Tongariro1,968
South Island
Southern Alps
     Cook3,764
     Tasman3,497
     Dampier3,440
     Silberhorn3,279
     Lendenfeldt3,201
     Mt Hicks (St David's Dome)3,183
     Torres3,163
     Teichelmann3,160
     Sefton3,157
     Malte Brun3,155
     Haast3,138
     Elie de Beaumont3,117
     Douglas3,085
     La Perouse3,079
     Heidinger3,066
     Minarets3,055
     Aspiring3,030
     Glacier Peak3,007

New Zealand's rivers are mainly swift and difficult to navigate. They are important as sources of hydro-electric power and artificial lakes have been created as part of major hydroelectric schemes.

Table 1.3. PRINCIPAL RIVERS*

RiverLength

* Over 150 kilometres in length from the mouth to the farthest point in the river system irrespective of name, including estimated courses through lakes.

Source: Department of Survey and Land Information.

 km
North Island—
Flowing into the Pacific Ocean
     Rangitaiki193
     Waihou175
     Mohaka172
     Ngaruroro154
Flowing into the Tasman Sea
     Waikato425
     Wanganui290
     Rangitikei241
     Manawatu182
     Whangaehu161
     Mokau158
South Island—
Flowing into Cook Strait
     Wairau169
Flowing into the Pacific Ocean
     Clutha322
     Taieri288
     Clarence209
     Waitaki209
     Waiau169
     Waimakariri161
Flowing into Foveaux Strait
     Mataura240
     Waiau217
     Oreti203
Flowing into the Tasman Sea
     Buller177

Table 1.4. PRINCIPAL LAKES*

LakeArea

* Over 20 square kilometres in area.

Source: Department of Survey and Land Information.

 sq. km
North Island—
     Taupo606
     Rotorua80
     Wairarapa80
     Waikaremoana54
     Tarawera36
     Rotoiti34
South Island—
     Te Anau344
     Wakatipu293
     Wanaka193
     Ellesmere181
     Pukaki169
     Manapouri142
     Hawea141
     Tekapo88
     Benmore (artificial)75
     Hauroko71
     Ohau61
     Poteriteri47
     Brunner39
     Coleridge36
     Monowai31
     Aviemore (artificial)29
     Rotoroa23
     Mahinerangi (artificial)21

1.2 Geology

New Zealand is in an area of the world characterised by active volcanoes and frequent earthquakes. The ‘ring of fire’, as this area is known, forms a belt that surrounds the Pacific Ocean and is the surface expression of a series of boundaries between the plates that make up the earth's crust.

Plate tectonics is a theory used to explain the fundamental geological features of the earth. According to the theory the crust of the earth is made up of a series of plates, rather like a jigsaw puzzle. Although these surface plates are rigid, the rocks of the underlying layer of the earth, its upper mantle, are partially molten. This provides the convection mechanism for movement of the overlying plates. Over millions of years these plates have moved in relation to each other, colliding together, pulling apart, or sometimes sliding past each other. The boundary between the Indo-Australian plate and the Pacific plate runs through New Zealand, and the processes resulting from their collision have had a profound effect on New Zealand's geology. When two plates collide, one is pushed beneath the other in a process known as subduction. Zones of subduction are defined by two deep sea trenches to the north and south of New Zealand, which are connected by the Alpine Fault. The size, shape and geology of New Zealand reflects the long process of construction and deformation along this plate boundary.

Rock types

The interplay of earth movements and erosion has created the sedimentary rocks that cover almost three-quarters of New Zealand. Erosion of land produced sand, mud, gravel and other debris which was carried out to sea and accumulated in great thicknesses to form rocks such as sandstone, mudstone, greywacke and conglomerate. The shells and skeletons of sea creatures also accumulated and formed thick layers of limestone. Most sedimentary rocks are formed in near horizontal layers called strata. Earth movements later raised the rocks above the sea to form land, and in many places pressure tilted and folded the strata. Seas advanced and retreated over the New Zealand area many times and the sedimentary rocks represent almost every geological period since the Cambrian (see time scale). Their age is revealed by the fossils they contain or may be determined by various radiometric techniques.

As well as the sedimentary rocks of various ages, New Zealand incorporates in its complex structure metamorphic rocks (schist, gneiss and marble), and intrusive igneous rocks (granite, gabbro, diorite and serpentine). Many of these metamorphic and intrusive igneous rocks are hundreds of millions of years old.

Instrusive rocks are generally considered to have entered the outer crust in a molten state, often during periods of mountain building. Some may, however, result from the intense metamorphism (melting) of pre-existing sediments. Intrusive rocks contain large crystals and have a coarse-grained texture.

Metamorphic rocks are formed when previously existing rocks are subjected to high temperatures and pressures while buried deep within the earth's crust. During metamorphism new minerals and structures develop within a rock due to the great temperatures and pressures. Such metamorphism often takes place during relatively short periods of mountain building.

Volcanic rocks (basalt, andesite, rhyolite and ignimbrite), are the products of many volcanic eruptions that have characterised New Zealand's geological history. The most recognisable volcanoes in New Zealand now occur in the North Island, where a number are active. They include those in Tongariro National Park, White Island and Mount Tarawera. Others such as Mount Taranaki (or Egmont), and Rangitoto may be considered dormant at present although they are still regarded as significant hazards. Sporadic episodes of volcanic activity have also occurred in the South Island with Timaru, Lyttelton, Oamaru and Dunedin all having basaltic volcanoes less than 13 million years old.

Geological history

The oldest rocks in New Zealand are found in Nelson, Westland and Fiordland. They have been dated back to the Paleozoic era about 570 million years ago. They include thick sedimentary rocks which suggest that to yield the great volume of sediments a large land-mass existed nearby at that time, although so far little has been deduced about its shape or position.

The history of the later part of the Paleozoic era, and the Mesozoic era, is rather better understood. For a vast span of time from the Carboniferous period, probably until the early Cretaceous period, an extensive depositional basin occupied the New Zealand region. At first, during much of the late Paleozoic, huge quantities of submarine lava and volcanic ash were included in the materials that accumulated. In the later Permian and Mesozoic times sediments were mainly sand and mud, probably derived from some landmass west of present New Zealand. These rocks have been compacted into hard greywacke (a type of sandstone), and argillite (hard, dark mudstone).

In the early Cretaceous period one of the main mountain-building episodes in New Zealand's history took place. Although basinal sedimentation continued through the Cretaceous period in eastern New Zealand, elsewhere this basin was compressed, and the sediments were intensely crumpled, broken and raised above the sea, probably forming a large, mountainous landmass. Some of the sediments, now exposed over much of Otago, alpine Westland, and parts of the Marlborough Sounds, were metamorphosed into schist and gneiss by high temperatures and the tremendous deforming pressures. This intense folding of the strata occurred approximately 100 million years ago in the mid-Cretaceous period. Slowly the mountains were eroded and gradually a land of low relief was produced. The sea gradually advanced over the eroded stumps of the Mesozoic mountains, beginning its transgression earlier in some areas than in others. In the early Cretaceous period the land became submerged in the region of present Northland and the eastern margins of the North and South Islands, and thick deposits of mudstone and sandstone accumulated in some of these areas. At the close of the Mesozoic era, and in the very early Tertiary era, the land became so reduced in size that little sediment was produced and only comparatively thin deposits of bentonitic and sulphurous muds, and fine, white foraminiferal limestone accumulated. During this time, New Zealand's main coal deposits accumulated in swamps on the surface of the old land. These became buried by marine deposits as the sea continued its transgression in the Eocene period. By the Oligocene period most of the land was submerged, and in shallow waters free of land sediments, thick deposits of shell and foraminiferal limestone accumulated. Scattered remnants of this Oligocene limestone are used for most of New Zealand's cement and agricultural lime.

Table 1.5. GEOLOGICAL TIMESCALE

EraPeriod Approximate time since
period began (years)
CenozoicHolocene (recent)Quaternary10,000
Pleistocene2 million
PlioceneTertiary6 million
Miocene24 million
Oligocene38 million
Eocene53 million
Paleocene65 million
MesozoicCretaceous 135 million
Jurassic 190 million
Triassic 238 million
PaleozoicPermian 300 million
Carboniferous 350 million
Devonian 405 million
Silurian 435 million
Ordovician 500 million
Cambrian 570 million
Source: DSIR.

After the Oligocene submergence, earth movements became more vigorous; many ridges rose from the sea as islands, and sank or were worn down again; sea basins formed and were rapidly filled with sediments. New Zealand's late Tertiary environment has been described by Sir Charles Fleming (Tuatara, June 1962) as follows: ‘The pattern of folds, belts and troughs that developed was on a finer scale than in the Mesozoic … the land moved up and down as a series of narrow, short, interfingering or branching folds. … We can think of Tertiary New Zealand as an archipelago … a kind of writhing of part of the mobile Pacific margin seems to have gone on.’ The thick deposits of soft grey sandstone and mudstone that now make up large areas of the North Island and some parts of the South Island, are the deposits that accumulated in the many sea basins that developed in the later Tertiary.

Recent geological history

Late in the Cenozoic era, in the Pliocene and Pleistocene periods between 6 million and 1 million years ago, another great episode of mountain building took place. Earth movements became intense, and slowly pushed up the Southern Alps and New Zealand's other main mountain chains. It was during this period that the general size and shape of the present islands of New Zealand was determined. Much of the movement during this mountain-building period (the Kaikoura Orogeny) took the form of displacement of blocks of the earth's crust along fractures called faults. The total movement of blocks adjacent to major faults amounted to thousands of metres. It must have been achieved very slowly, probably by innumerable small movements, each less than a few metres. The blocks adjacent to ‘transcurrent’ faults moved both vertically and laterally along the faults. The New Zealand landscape today in some regions shows well-preserved, tilted fault blocks bounded by fault scarps (steep faces hundreds or even thousands of metres high). From Milford Sound to Cook Strait, an almost unbroken depression, formed by river valleys and low saddles on the intervening ridges, marks the line of New Zealand's Alpine Fault. Contrasting rock types occur on either side of the fault. This is illustrated by the 480 kilometre separation of Permian igneous rocks, which occur in Nelson and western Otago. Fault movements continue to the present day and have accompanied several major earthquakes of the past century. Many minor but revealing landscape features, such as scarplets or offset ridges, or streams, show where the movement has been occurring over recent centuries.

Erosion has transformed the landscape during this time, carving detailed patterns of peaks, ridges, valleys and gorges. The deposition of debris has built up alluvial plains, shingle fans and other construction forms. At the coast, waves have eaten back the headlands and built beaches, spits and bars. The late Pleistocene glaciers carved the fiords of Fiordland and the valleys occupied by most of the South Island lakes; there were also small glaciers on Ruapehu, where remnants survive, on Mount Taranaki and the Tararua Range. Sea-level changes accompanied the formation and later melting of global glacial ice, affecting the erosion and deposition of the rivers. These changes were responsible for the formation of many prominent river terraces.

Volcanic activity over the past few million years has played an important part in shaping the landscape. Banks Peninsula, a twin volcanic dome in Canterbury, also achieved much of its growth then. The largest volcanic outpourings of late geological times in New Zealand has been in the region between Tongariro National Park and the Bay of Plenty coast; andesite lava, scoria, and ash were erupted in the Pleistocene period and later, to build the volcanoes, Ruapehu, Tongariro, and Ngauruhoe. More than 8000 cubic kilometres of molten ignimbrite pumice and rhyolite lava erupted, building up the Volcanic Plateau, which is one of the largest and youngest accumulations of acid volcanic rocks in the world. Mount Taranaki is an andesitic stratovolcano, with the remnants of three other volcanic cones nearby; all are of Pleistocene age. In the Waikato there are eroded Pleistocene cones of andesitic composition associated with a number of alkaline eruptive centres. The largest is Pirongia, a basaltic andesite cone some 900 metres high. Auckland city and the area just south has been the scene of many eruptions of basalt lava and scoria in Pleistocene and Holocene times, and many small scoria cones can be seen there. Late Tertiary and Quaternary basaltic eruptions in North Auckland have built lava plateaus and many young cones. From these volcanic outpourings some valuable mineral resources have been derived. The ironsands mined on the west coast of the North Island are concentrations of magnetite and ilmenite, which have been eroded from volcanic rocks.

Earthquakes

Compared with some other parts of the almost continuous belt of earthquake activity around the rim of the Pacific—such as Japan, Chile, and the Philippines—the level of seismic activity in New Zealand is moderate, although earthquakes are common. It may be roughly compared with that prevailing in California. A shock of Richter magnitude 6 or above occurs on the average about once a year, a shock of magnitude 7 or above once in ten years, and a shock of about magnitude 8 perhaps once a century, but in historic times only one shock (the south-west Wairarapa earthquake in 1855) is known to have reached this magnitude.

Other natural disasters and accidents are together responsible for more casualties than earthquakes. The most serious seismic disasters in New Zealand have been the Hawkes Bay earthquake of 1931 in which 256 deaths occurred, and the Buller earthquake of 1929 in which there were 17 deaths. The total resulting from all other shocks since 1840 is less than 15 deaths. The last earthquake to cause deaths occurred at Inangahua in 1968, when three people died, while the most recent damaging earthquakes have been at Edgecumbe in the Bay of Plenty in March 1987 and Dannevirke in May 1990.

The process of earthquake occurrence is understood in terms of a large volume of the earth's crust being subjected to strain by the relentless movement of the great plates of the earth's surface against each other. The strain eventually exceeds the strength of the rock, which ruptures. Energy is radiated outwards in the form of elastic waves, which can be felt at places near the origin, and detected by sensitive instruments at greater distances. In large shallow earthquakes the rupture may appear at the surface, forming or renewing movement on a geological fault. In regions where the majority of earthquakes are very shallow, such as California, there is a tendency for the earthquake origins to cluster near geological fault traces, but in regions of deeper activity, such as New Zealand, this is not so. There is little activity near the Alpine Fault, which stretches for some 500 kilometres from Milford Sound to Lake Rotoiti, and is considered one of the world's largest and most active faults.

Within New Zealand at least two separate systems of seismic activity can be distinguished. The Main Seismic Region covers the whole of the North Island except the Northland peninsula, and the part of the South Island north of a line passing roughly between Banks Peninsula and Cape Foulwind. The Southern, or Fiordland, Seismic Region includes southern Westland, western Southland, and western Otago. Less clearly defined activity covers the remainder of the two main islands, and extends eastwards from Banks Peninsula to include the Chatham Islands.

Shallow earthquakes, which are the most numerous, originate within the Earth's crust, which in New Zealand has an average thickness of some 35 kilometres. These shocks are responsible for almost all damage to property, and are widely scattered throughout the country. In historically recent times, the Main and Fiordland Seismic Regions have been significantly more active than the rest of New Zealand, but neither the Central Seismic Region., which lies between them, nor the Northland peninsula has been free from damaging shocks. The details of the present pattern are not necessarily unchanging, and could alter significantly after the occurrence of a major earthquake. Because of this, the broader geophysical setting, and the distance to which the effects of a large earthquake extend, it would be highly imprudent to treat any part of New Zealand as completely free from the risk of serious earthquake damage.

Many active regions of the Earth have only shallow earthquakes, but in others shocks have been known to occur at depths as great as 700 kilometres below the surface. It is thought that these deep shocks originate within the edges of crustal plates that have been drawn down or thrust beneath their neighbours. Such deep events are common in both the Main and Fiordland Seismic Regions of New Zealand, but their relative positions with respect to the shallow activity and to other geophysical features are rough mirror images. This is believed to indicate that in the North Island the edge of the Pacific Plate lies below that of the Indian Plate, while in the south of the South Island the Pacific Plate is uppermost and the Indian Plate has been thrust beneath it.

The most important system of deep shocks in New Zealand lies in a well-defined zone beneath the Main Seismic Region, stretching from the Bay of Plenty to Nelson and Marlborough. The maximum depth of occurrence is about 400 kilometres at the northern end, and decreases evenly to a depth of about 200 kilometres before the southern boundary of the region is reached. Along the whole of the system, there is also a regular decrease in depth from west to east. In northern Taranaki, near the western limit of this activity, a small isolated group of shocks at a depth of about 600 kilometres has also been recorded. In the Central Seismic Region only shallow shocks are known. The maximum depth of earthquakes appears to be less than 150 kilometres in the Fiordland Region where the deep activity is more concentrated than in the north, lying close to Lakes Te Anau and Manapouri.

Both earthquakes and volcanoes are found in geophysically disturbed regions, but large earthquakes are rare, although small earthquakes usually accompany volcanic eruptions. Regions of active volcanism are also subject to periodic outbreaks of small earthquakes, all of similar magnitude, and very numerous, known as ‘earthquake swarms’. Although the number of shocks may cause alarm, it is unusual for even minor damage to result. There is not often a simultaneous volcanic outbreak, but swarms are rare in non-volcanic regions. In New Zealand they have occurred in the volcanic zone that includes Mount Ruapehu and White Island, the Coromandel Peninsula, parts of Northland, and Taranaki.

Earthquakes in 1989. The largest earthquake during the year was on 23 May, 800 kilometres south of Invercargill on the Macquarie Ridge. It was of magnitude 8.2, the largest in the world in several years. Despite its size, there was no damage because of its oceanic location. It was felt very strongly on Macquarie Island, however.

Within New Zealand, the largest earthquake was on 31 May at Te Anau. It was of magnitude 6.6 and was felt throughout the southern South Island. There was some damage in Fiordland and Central Otago, but this was limited because the focal depth was about 60 kilometres.

Most other earthquakes were small, causing more alarm than damage. On 8 August another deep earthquake, this one of magnitude 5.9, occurred south of Patea in southern Taranaki and was felt over much of central New Zealand. Numerous other smaller shocks generally followed the diffuse pattern of previous years.

Each year analysis of earthquake data from a network of record stations is completed by the Seismological Observatory of the Department of Scientific and Industrial Research. This analysis allows scientists to pinpoint the location, magnitude and depth of earthquakes—information that can be used to pick trends and in the theory of plate tectonics.

1.3 Climate

New Zealand is a long, narrow, mountainous country surrounded by a large expanse of ocean. The nearest major land mass is Australia some 1600 kilometres to the west.

The climate of New Zealand is largely influenced by:

  • Its location in a latitude zone where the prevailing wind flow is westerly;

  • Its oceanic environment; and

  • Its mountains, especially the main mountain chain which modifies the weather systems as they pass eastwards, and also provides a sheltering effect on the leeward side of the mountains. Local orography is the cause of a number of different ‘microclimates’ in a given region.

The day-to-day weather is mostly determined by a series of anticyclones and troughs of low pressure in the westerlies. Consequently New Zealand weather is changeable, typically with short periods of a few days of settled or unsettled weather. At times the westerly regime breaks down and there are cold southerly outbreaks (with snow in winter and sometimes spring), or northerly intrusions of warm, moist air when tropical depressions move southwards into New Zealand latitudes in the summer.

The main mountain chain which extends much of the length of the country is a major barrier to weather systems approaching from the west. Consequently there is a marked contrast between the climates of regions west and east of the mountains, and this is much greater than north-south climatic differences.

The surrounding ocean means that New Zealand largely has a ‘marine’ climate—except in Central Otago, which most nearly approaches a ‘continental’ climate (dry with hot summers and cold winters).

Many parts of the country are subject to extremes of wind and rain, giving rise to wind damage to buildings and forests, and flooding as depressions with their fronts pass close to or over the country. The rugged terrain is an important factor in the enhancement of the wind strength and/or rainfall.

Temperature extremes are mainly confined to places east of the main ranges. High temperatures usually occur in warm north-westerly wind conditions due to the so-called föhn effect. These high temperatures are often followed by sudden falls in temperature as a cold front moves up the east coast of both islands.

Winds

Although New Zealand lies in a zone of predominant westerlies, easterlies may predominate in individual months and, north of Taranaki, the mean wind flow is south of west.

New Zealand is thought of as a windy country because:

  • Its rugged terrain affects the wind speed and gustiness;

  • Most of the population lives close to the windier coastal places; and

  • There is an abundance of open agricultural land with little shelter to reduce the mean wind speed.

However, over most of the country for much of the time wind speeds are not high.

In practice the wind regime is complex. This is mainly due to the interaction of the wind with the rugged terrain. Cook Strait, which is the major break in the main mountain chain, is a region of relatively high mean wind speed in strong westerly and easterly airstreams. The wind speed is also enhanced near the Manawatu Gorge and Foveaux Strait. A notable but not very common wind in New Zealand is the warm, dry north-westerly föhn wind, which occurs east of the main mountains, and is best known in Canterbury. Easterly föhns can occur too but are fairly rare.

Wind speeds are generally lower inland compared with coastal locations, but occasional high winds occur depending on the type of terrain. Mean wind speeds over the sea are generally higher than over land (because of less factional drag) and this is reflected in higher average wind speeds at coastal locations compared with inland sites.

In the North Island winds decrease during late summer or early autumn, whereas in much of the South Island, winter is the least windy season. Sea breezes are common in summer in coastal locations of both islands.

Rainfall

The rainfall distribution is largely controlled by the mountains and the greatest mean annual rainfall occurs over the South Island mountains, which are also the highest. There is a large range of mean annual rainfall over the country from less than 400 mm in Central Otago to over 12 000 mm in the Southern Alps.

Much of the North Island has a mean annual rainfall in the range 1200–1800 mm. About the mountains values are above 2400 mm and less than 1200 mm in Manawatu, central and southern Hawkes Bay, the Hauraki Plains and parts of Wairarapa. The driest areas are about Hastings and Martinborough where annual totals are about 800 mm.

The mean annual rainfall distribution in the South Island is much more complicated, ranging from totals over 12 000 mm in the Southern Alps to much drier areas east of the mountains. The latter areas include much of north and central Canterbury, with annual totals less than 800 mm, south Canterbury and the Mackenzie Country with totals below 600 mm, to the very dry area of Central Otago with totals below 400 mm in places.

There is a marked difference in the seasonal rainfall for the North and South Islands. The wettest season, for virtually all the North Island and for Nelson, Marlborough and north Canterbury, is winter. For the West Coast and the Southern Alps the wettest season is spring, when the westerlies are strongest. Central and south Canterbury are wettest in summer, and Fiordland, Southland and southern Otago are wettest in autumn.

The driest season is summer for most of the North Island and the northern part of the South Island. The West Coast is driest in winter, as is much of inland Canterbury. Otago and Southland. Coastal parts of Gisborne, Hawkes Bay, Canterbury and south Otago are driest in spring as they are sheltered from the westerlies which prevail then.

Over most of the North Island there are at least 130 rain days annually (days with at least 1 mm of rain). East of the ranges there are some places which have less than 100 rain days annually. In the South Island there is a much greater contrast in annual rain days. In Fiordland and Stewart Island rain days exceed 200 a year, while on the West Coast they exceed 180 a year. In the very dry areas of Central Otago annual rain days number less than 80.

Seasonal rainfall does not vary greatly from year to year and its reliability in spring is particularly advantageous for agriculture. However, spring is the driest season in much of Hawkes Bay and coastal Canterbury.

Heavy rain and floods. Because of its rugged terrain and oceanic location New Zealand is susceptible to serious flooding, which occurs quite frequently. No part of the country is immune from flooding due to heavy rain and overflowing river systems. Although there are seasonal frequencies for different parts of the country, floods can occur at any time of the year. Sometimes only localities are affected, but whole provinces can experience flooding as well.

Tropical depressions

Tropical cyclones are relatively small intense weather systems which can wreak havoc in islands in the South Pacific if they pass nearby. The usual tropical cyclone season is November to March. Occasionally tropical cyclones move south into New Zealand latitudes by which time they have lost their ‘cyclone’ characteristics of a circular cloud system (which may have a central eye), very strong wind field and large amount of water vapour in their cloud system. By the time these weather systems move southwards into the Tasman Sea or the seas east of New Zealand they cover a much larger area with their cold front/warm front cloud system and somewhat weakened wind field. However, if one of these former tropical depressions passes close to or over New Zealand the combination of New Zealand's terrain, the large amount of remaining water vapour in the cloud system and the strong winds can produce heavy rain and flooding. A recent example was Cyclone Bola, which caused massive damage in the Poverty Bay/East Cape region in March 1988. Tropical depressions moving into New Zealand latitudes also have the effect of spreading warm, moist air over the country thereby noticeably increasing the humidity and maximum and minimum temperatures above those usually experienced.

Drought

Summer droughts are a big problem for farmers because high temperatures result in high soil moisture loss. However, droughts can occur in other seasons (e.g., autumn and spring) as well, being least common in winter. Droughts are relatively common in summer in Northland, Hawkes Bay, Wairarapa and Manawatu. In the South Island, Nelson, Marlborough and regions east of the Alps are prone to drought, especially in summer.

Temperature

Mean annual temperatures decrease steadily from north to south; from 15°C in Northland to 13°C in Wellington to 10°C in Southland. Some inland parts of the South Island have mean temperatures below 8°C. Temperatures also decrease with altitude at the rate of 2°C per 300 metres.

January and February are the warmest months and July the coldest. The highest temperatures occur east of the main ranges and in Central Otago and reach the low to mid-thirties in most summers and sometimes the high thirties. The lowest temperatures occur on clear frosty nights especially in Central Otago and in the mountains. Minimum air temperatures of several degrees below zero are not uncommon in winter, but values below −10°C rarely occur away from the mountains.

Frosts

All parts of the country, except the northern tip of Northland, experience frosts. Apart from the mountain areas, the coldest parts of the country in winter are Central Otago and the Mackenzie Country in Canterbury. There are considerable variations in frostiness even over small areas, as each place has its own microclimate. Spring air frosts are a problem for horticulturists in Central Otago and some pans of the lower North Island as crop damage can result if precautions are not taken.

Sunshine

The sunniest places, where annual sunshine hours exceed 2350, are near Blenheim, the Tasman Bay area from Nelson to Riwaka, and the Bay of Plenty area near Whakatane. Other areas with at least 2000 annual sunshine hours include Central Otago, coastal pans of Gisborne and Hawkes Bay, Manawatu, lowland parts of Taranaki and southern Wairarapa.

Despite the marked difference in rainfall between Westland and Canterbury, sunshine hours are similar. This is due to the fact that although rainfall on the West Coast is greater than east of the mountains, there are substantial fine periods. Also, in westerlies, cloud spreads from the mountains across Canterbury and prevailing north-easterly winds cause low cloud about the east coast.

There is also an increase in cloudiness down the east coast from Kaikoura to Invercargill with annual sunshine hours ranging from over 2000 in the north to 1600 in the south. This tendency continues further south.

Hail

Severe hail storms are small scale phenomena and therefore are not easily detected by the weather station network. Most reports therefore come from the media.

About nine severe hail storms occur on average each year although there is a large year-to-year variation (two to 17). The country can be divided into two approximate regions, east and west of the main ranges. In the eastern region, which includes central Hawkes Bay, part of the Waimea Plains south and west of Nelson, and a strip near the coast from central Canterbury to northern Otago, most of the severe storms between October and February, in the afternoon. In the western region, storms are less likely from February to May, but still more likely during the afternoon, although they occur at other times too. Wairarapa south of Pahiatua is less susceptible to severe hail storms than other parts of the country.

Thunder

The incidence of thunderstorms in New Zealand is quite low by world standards. Fewer than 15 people have been killed by lightning strikes in New Zealand since about 1920. In coastal areas in the north and west of the country thunderstorms are most frequent in winter or spring. They usually occur at night or in the morning, although some occur in the afternoon. There are few thunderstorms in much of the east of both islands. Those that do occur are usually in summer afternoons. In the interior of the South Island most thunderstorms occur in spring.

Tornadoes

The average number of tornadoes recorded in New Zealand is in excess of 30 a year. These can occur in any month and are most likely in the early afternoon. New Zealand tornadoes are generally much smaller than those occurring in other countries, such as the United States, and therefore the amount of damage is correspondingly much less. Most tornado reports come from densely populated areas, suggesting that many more tornadoes occur than are reported.

Snow

The permanent snow fields in New Zealand are, in the North Island, on Mt Taranaki, and a small area on the central plateau above 2300 metres, and in the Southern Alps above 2000 metres. Snow fails are highly variable from year to year. They usually occur in winter, but can occur in spring as well, even as late as November. Winter snow lines are about 1500 metres in the North Island. For the South Island they range from 1000 metres in the south to 1300 metres in the north. Snow lines sometimes fall below 600 metres in winter, but usually for no more than a few days. Snow occasionally falls down to sea level on the east coast of the South Island, but does not lie very long. Spring storms can cause severe losses of new-born lambs on the east coast.

Relative humidity

Because of its oceanic environment most parts of New Zealand experience relatively high average humidity (70–80 percent) in coastal areas and somewhat lower inland. Humidity is usually highest overnight and in the early morning and lowest in mid-afternoon. Very low humidities (below 40 percent) occur in Canterbury when hot, dry föhn north-westerlies blow. Low humidities also occur behind cold fronts moving up the east coast of the South Island. Periods of up to a week of high humidity can occur in summer when a stationary anticyclone, east of the country', brings warm, moist air over much of New Zealand. High humidities also occur when former tropical cyclones move south into the Tasman Sea. Northland and Auckland also tend to experience high humidity in the summer.

Air pollution

Because of the absence of major heavy industry, its remote location in an oceanic environment and a relatively windy climate. New Zealand's air is much cleaner than in the Northern Hemisphere. However, where there are any large population centres, extensive motor vehicle usage or factories, air quality problems occur from time to time (e.g., photochemical pollution in Auckland on a few days in summer).

Table 1.6. SUMMARY OF CLIMATE OBSERVATIONS TO 1980, RAINFALL, FROST AND SUNSHINE

StationElevationRainfallAir frostGround frost;Bright sunshine
Mean annualRain days*

* A rain day is one when 1.0 mm or more of rain was recorded.

A screen (or air) frost occurs when the temperature in the screen (at 1.3 metres above ground) falls below 0°c.

A ground frost occurs when the grass minimum thermometer (25 mm above short grass) reads −1.0°c or lower.

Source: New Zealand Meteorological Service.

 metresmm no. days
per year
no. days
per year
hours
Kaitaia Airport801,41813801.72,113
Kerikeri731,6821351.024.92,004
Dargaville201,2481495.016.81,956
Auckland (Albert Park)491,18514004.22,102
Tauranga Airport41,3491185.356.92,277
Hamilton (Ruakura)401,20113125.571.82,006
Rotorua Airport2871,49112321.256.9..
Gisborne Airport41,0581136.840.72,204
Taupo3761,17812237.171.42,021
Taumarunui1711,44314034.764.71,704
New Plymouth Airport271,5291442.012.82,165
Waiouru8231,04813765.1100.6..
Napier2824958.838.62,245
Wanganui229061153.510.72,087
Palmerston North (DSIR)3499512613.554.41,794
Masterton (Waingawa)11497112431.489.12,004
Wellington (Kelburn)1251,240125015.02,019
Nelson Airport29869937.789.72,397
Blenheim46428138.586.12,447
Westport Airport22,1921681.039.31,925
Hanmer Forest3871,16311481.7139.51,898
Christchurch76668735.788.71,974
Hokitika Airport392,78316816.056.41,846
Lake Tekapo68359772100.1175.82,217
Timaru175878137.987.81,869
Queenstown3298059250.3140.71,921
Alexandra1413436586.2154.02,064
Dunedin (Musselburgh)27841209.777.71,676
Gore7283613643.7100.21,698
Invercargill Airport01,03715746.3111.11,621
Milford Sound36,26718228.556.1..

Table 1.7. SUMMARY OF CLIMATE OBSERVATIONS TO 1980, AIR TEMPERATURE

 Mean daily minimum*Mean daily maximumDaily minimumAnnual extremes
JanuaryJulyJanuaryJulyJanuaryJulyMax.Min.

* The mean daily temperature is the average of the maximum and minimum temperature for a given day.

Source: New Zealand Meteorological Service.

 degrees Celsius
Kaitaia Airport19.311.723.815.214.88.130.5−0.5
Kerikeri18.910.824.515.513.36.134.3−2.0
Dargaville18.610.723.414.913.76.532.1−5.0
Auckland (Albert Park)19.410.923.114.115.77.832.4−0.1
Tauranga Airport18.59.323.614.113.34.533.3−5.3
Hamilton (Ruakura)17.88.323.913.511.63.134.7−9.9
Rotorua Airport17.67.522.811.912.43.029.8−5.7
Gisborne Airport18.79.124.413.813.04.438.1−3.4
Taupo17.36.523.511.011.01.933.0−6.3
Taumarunui18.37.324.812.511.82.133.9−6.4
New Plymouth Airport17.19.121.413.012.75.330.3−2.4
Waiouru13.84.019.27.68.20.328.5−9.0
Napier18.99.023.813.414.14.635.8−3.9
Wanganui17.88.721.912.513.74.931.2−2.3
Palmerston North (DSIR)17.38.021.911.912.84.031.7−6.0
Masterton (Waingawa)17.37.123.711.810.82.435.2−6.9
Wellington (Kelburn)16.48.220.010.912.85.531.1−1.9
Nelson Airport17.26.521.911.912.51.136.3−6.6
Blenheim17.87.023.612.412.01.536.0−8.8
Westport Airport15.88.219.512.012.04.328.6−3.5
Hanmer Forest15.63.922 29.29.0−1.337.1−13.2
Christchurch16.65.921.510.311.61.441.6−7.1
Hokitika Airport15.37.219.211.711.42.727.5−3.2
Lake Tekapo14.81.621.36.08.3−2.833.3−15.6
Timaru16.25.321.49.811.00.737.2−6.8
Queenstown15.83.721.77.79.9−0.434.1−7.8
Alexandra17.02.623.27.310.7−2.237.2−11.7
Dunedin (Musselburgh)15.06.419.09.911.11934.5−8.0
Gore15.04.620.99.19.20.235.0−8.9
Invercargill Airport13.75.118.49.48.90.832.2−7.4
Milford Sound14.45.418.59.310.31.528.3−4.9

The southern oscillation

When the air pressure is abnormally high in the Indonesian region, it is correspondingly low in the South Pacific and vice versa. This phenomenon is called the ‘southern oscillation’. When southern oscillation episodes occur, the usual weather patterns in the southern Pacific, including New Zealand, are significantly altered.

An index, called the southern oscillation index, has been constructed using pressure recordings from Tahiti and Darwin. Usually there is a lag of some months between a major excursion of the oscillation, either positive or negative, and a characteristic weather regime developing. The period of the southern oscillation is very irregular, varying between about two and ten years with an average period of three to four years. However, once established, significant El Niño and La Niña episodes can persist for six to 12 months.

In general, negative values of the oscillation index are associated with an increase in the frequency of south-westerly winds over New Zealand, with below average rainfall in the north and east of the country. This phase of the southern oscillation is called El Niño. The most recent example occurred in 1986–87. However, 1982–83 was the period when the oscillation index reached its largest negative value this century and rainfall was well above normal on the west coast of the South Island.

The other major phase of the southern oscillation, when the index is positive, is called La Niña. Positive values of the index are associated with an increase in the frequency of northeasterly winds over the country with reduced rainfall in western areas. A recent La Niña episode occurred over the year from spring 1988–89 and was associated with a major drought on the east coast of the South Island.

Table 1.8. SUMMARY OF CLIMATE EXTREMES

Rainfall
Highest rainfall for selected periods
PeriodAmount
(mm)
LocationDate
10 minutes3Tauranga17 April 1948
1 hour107Whenuapai16 February 1966
12 hours368Milford Sound26–27 March 1978
24 hours521Milford Sound11–12 February 1958
24 hours651Prices Flat (Westland)12 May 1978
48 hours690Milford Sound11–12 February 1958
72 hours871Stratford Mountain House22–24 February 1971
1 year9,760Horner Tunnel1940
1 year13,219Waterfall Creek (Westland)1983
Drought
Lowest rainfall for selected periods
PeriodAmount
(mm)
LocationDate
3 months10CoromandelJanuary 1950
3 months10BlenheimJanuary 1935
3 months10ClydeJuly 1966
6 months74HastingsNovember 1920
6 months53AlexandraMarch 1930
Rainless periods (selection)
LocationDuration (days)Date
Wai-iti (Marlborough)718 February–19 April 1939
Moa Creek (West Otago)6819 March–25 May 1950
Mangapura Landing (Taranaki)6719 December 1927–23 February 1928
Otamatapaio (Otago)6721 March–26 May 1970
Otamatapaio (Otago)6517 April–20 June 1966
Temperature*
LocationTemperature (°C)Date
Highest
North Island
Ruatoria39.27 February 1973
Ruatoria38.911 January 1979
Ruatoria35.26 December 1970
Gisborne airport35.110 March 1983
South Island
Rangiora42.47 February 1973
Ashburton38.419 January 1956
Lincoln36.930 December 1896
Ashburton36.010 March 1956
Lowest
North Island
Chateau Tongariro−13.67 July 1937
Minginui−12.028 May 1978
Kuripapango−11.630 June 1958
South Island
Ophir−19.72 July 1943
Manorburn−18.62 August 1939
Lake Tekapo−15.620 June 1927
Manorburn−15.630 June 1941
Sunshine*
LocationTotal (hours)Date
North Island
Taupo335January 1950
Gisborne327December 1947
Highest total for one year was 2533 hours at Napier 1942
South Island
Blenheim335January 1957
Blenheim321December 1974
Blenheim307November 1968
Queenstown307November 1937
Highest total for one year was 2686 hours at Blenheim 1972
Wind gusts*
LocationSpeed (km/h)Date

* Selection of extremes for various months.

Source: New Zealand Meteorological Service.

Mt John (Canterbury)25018 April 1970
Hawkins Hill (Wellington)2486 November 1959
Hawkins Hill (Wellington)2484 July 1962
Mt John (Canterbury)24810 September 1970
Oteranga Bay (Wellington)24310 April 1968

1.4 Vegetation and wildlife

The vegetation and wildlife of New Zealand are the product of not only natural factors during tens of millions of years, but also human factors over the last 1000 years. The New Zealand landmass is believed to be a fragment of the ancient southern continent of Gondwanaland, which has been isolated for over 100 million years, allowing many ancient plants and animals to survive. Although New Zealand has undergone many physical and climatic changes, such as mountain building, volcanic activity, and glaciation, parts of the landmass have remained in continuous existence with part of their original complement of plants and animals.

New Zealand is now a very diverse land and changes from being almost subtropical (‘winterless’) in the north, to cool temperate, even subantarctic in the south, with a very wet, mild climate in the west, and a much drier, sometimes almost continental climate, in the east. The long and exceptionally diverse coastline, with many islands, produces habitats for coastal and lowland plants and animals, and there are extensive montane and alpine habitats as well. Geological variation has meant species have adapted to habitats based on soils derived from limestone, volcanic rock, serpentine, alluvial muds and gravels, and peat. Such diversity has led to New Zealand being classified into over 260 ecological districts, each with a distinct blend of topography, climate, vegetation, and wildlife.

Superimposed on natural diversity has been 1000 years of human activity; harvesting of naturally occurring species, introduction of species from elsewhere, and transformation of natural vegetation into farmland by fire, logging, and drainage. While approximately 80 percent of the land area was forested before humans arrived, only 27 percent remains forested, mainly in the mountainous hinterland.

Origins of plants and animals

The vegetation and wildlife of New Zealand today is made up of different bio-geographic elements. The Gondwanaland element consists of ancient plants and animals: conifers such as kauri (Agathis australis), frogs (Leiopelma), reptiles like tuatara (Sphenodon punctatus), large ground snails (Powelliphanta), and flightless birds such as the kiwi (Apteryx spp.) and the now extinct moa (Dinothiformes). A tropical element includes the nikau palm, kie kie (Freycenetia), tree ferns, many northern forest trees, tropical snails (Placostylis), and earthworms.An Australian element includes many ferns, orchids, small seeded tree species like manuka (Leptospermum scoparium), insects, and birds (such as the nectar-feeding tui (Prosthemadera novaeseelandiae), parakeets, and many wetland birds). A Pacific element includes trees like pohutukawa (Metrosideros excelsa), numerous ferns, and migratory birds like the shining cuckoo (Chalcites lucidus). A subantarctic or circumpolar element includes beech (Nothofagus), which occurs also in South America and Southern Australia and was once present on Antarctica, and the world's largest number of several characteristically southern bird groups such as penguins, albatrosses, and petrels. A South American element includes Fuchsia. A cosmopolitan mountain element entered New Zealand along the mountain and island chain from South-east Asia and includes plants such as buttercups, daisies, veronicas and gentians. A cultural element of recent human origin comes from all parts of the world (particularly Europe, North America, Australia and South Africa), and consists of trees, horticultural plants, weeds, mammals, birds, and many other groups.

Northern (subtropical), central (temperate), and southern (subantarctic) marine areas are recognisable as such by their characteristic species; for instance rock oyster, blue mussel and dredge oyster, respectively. Bull kelp is a notable southern species. Some very unusual marine animals occur, including black coral and ancient brachiopods in the southern fiords and sea daisies—starfish relatives which live on sunken wood at a depth of 1000 metres. The complex sea floor means that shore, continental shelf, and deep water species occur close together, resulting in diverse marine life.

Vegetation and wildlife today

Uniqueness is a feature of the natural life of New Zealand. Foremost is the absence—apart from two species of bat, of local land mammals, which had not evolved at the time New Zealand became separate. Many flightless birds and insects have evolved. The most remarkable birds were some 12 species of moa, forest and shrub browsers that took the place of large herbivores in other parts of the world. Moa became extinct during Maori times, but other flightless birds remain, including kiwi, kakapo (a nocturnal parrot—the largest in the world), and weka (a scavenging rail). Flightless insects are numerous, including many large beetles and cricket-like weta.

The absence of mammals also meant that birds became important as seed-dispersing agents, so that most forest plants bear small berries, including the giant conifers (podocarps), the smaller canopy trees, and even some forest-floor herbs. Some alpine plants produce berries, dispersed by the New Zealand pipit and the kea (mountain parrot).

As a consequence of the great physical and climatic upheavals which New Zealand has undergone the forest has been influenced by extinction. Coconut palms once occurred in New Zealand, and fossil remains of kauri, now limited to the northern North Island, have been found south to Canterbury. Some tropical plant groups are represented by a single species, surviving only on protected islands, or in the far north. Some, like Tecomanthe are known from only a single plant in the wild.

The range of bird species is also very limited in comparison with other temperate land masses of similar size. Considerable natural extinction has occurred. The endemic family of wattle birds contains only four species. One of these, the huia, is now extinct. On the other hand, there has been great diversification among smaller life-forms, such as tiny forest-floor snails, spiders, aquatic caddis flies, lichens, mosses and liverworts. Of note is the diversity of alpine plants such as daisies (Celmisia, Senecio), veronica (Hebe), native carrot (Aciphylla) and buttercups. Many of these plants produce rosettes of large leaves, which seem to adapt the plants to cold, windy, subantarctic conditions in the relatively recently-formed high mountains. Other plants adapted to cold, windy conditions are cushion plants, some of which form remarkable mounds called ‘vegetable sheep’.

In the forest and along its margins there are shrubs with tangled and criss-crossed branches bearing tiny leaves. Sometimes these shrubs are the juvenile forms of tree species, but more often are the adult itself. Nowhere else in the world is this peculiar growth form so abundant. It may be an adaptation to browsing by the now extinct moa, or it may help plants to adapt to cold or dry conditions.

Although many New Zealand plants and animals occupy very specialised habitats, droughts, high winds, floods, and erosion mean that many species need to be highly adaptable. Accordingly, many insects, such as native bees, gather food from a wide variety of sources, and some forest species, like beech, regenerate best after the parent forest has been destroyed (by volcanic eruption for example).

However, the overwhelming character of the land-based wildlife is its dependence on forest, and its vulnerability to introduced predators such as rats. The forests and natural grasslands have also been severely modified by introduced browsers such as possums, deer and goats, and some introduced plants, like marram grass, have taken over the places where native species would normally grow.

A vast proportion of the native animals and plant species are found only in New Zealand. Virtually all insects, spiders and snails, and all earthworms are restricted to New Zealand, as are most birds and plants, most freshwater fish (27 species), and all reptiles (38 species).

Table 1.9 summarises the numbers of native and introduced species in New Zealand today, although many figures are approximate and may change after future scientific investigation.

Table 1.9. SELECTED GROUPS OF NATIVE AND INTRODUCED SPECIES

GroupNumber of speciesPercentage endemic*
IntroducedNative

* Native species not found anywhere else.

Estimated.

Source: Department of Conservation.

Marine algae (seaweeds)390043
Bryophytes—
     Mosses1548528
     Liverworts..500..
Ferns and allies2016341
Conifers3020100
Flowering plants1,7001,81384
Earthworms40178100
Landsnails/slugs1252099
Spiders/harvestmen602 50090
Insects1,1009,46090
Freshwater fish232785
Amphibia23100
Reptiles138100
Birds—
     Land/freshwater336557
Mammals—
     Marine1346
     Land332100

Forests. Apart from mountains above bush-line, swamps, coastal dunes, and some dry inland basins, most of New Zealand was originally forest-covered. The forests were reduced by a third by Maori clearance before European settlement, and a further third by European clearance over the last 150 years, so that now only 23 percent of New Zealand remains forested. Much occurs in mountainous areas, and most is now protected.

There is a wide range of natural forest types. Around the coast is a fragmented narrow band of plants with varying degrees of salt tolerance, (including mangroves, nikau palm and mostly tropical Pacific species, such as karaka and pohutukawa. Coastal forests are particularly important habitats for marine birds (for example various petrels and penguins), and offshore islands form refuges for tuatara, flightless insects and snails. The characteristic New Zealand forest type is warm temperate evergreen rain forest. In the far north this is dominated by kauri and various broad-leaved species, though little original forest remains. Swamp forest dominated by the podocarp kahikatea (Dacrycarpus dacrydioides) was once extensive, and remains prominent in the western South Island. Elsewhere the podocarps (rimu, totara, matai, and miro) are associated with a diverse range of broad-leaved evergreen tree species, ferns, vines and epiphytes, forming dense and complex multi-storeyed communities at low altitudes. The range of species gradually diminishes with both increasing altitude and increasing latitude. Evergreen beech forest is characteristic of the central and southern North Island and South Island, above 300 metres altitude. These montane forests have fewer species than lowland forests, and extensive areas may be dominated by a single tree species. The bush-line, usually of mountain or silver beech, is located generally between 1350 and 1500 metres.

A wide range of secondary forest types have developed since human arrival, notably kanuka forests east of the main divide, manuka and kanuka forests in northern New Zealand, and a range of broad-leaved tree and tree-fern forest types on abandoned farmland.

Cool moist climates produce an abundance of ferns in New Zealand forests, not only giant tree ferns, but also filmy ferns which clothe tree trunks, and ground ferns.

Wetlands. A rise in sea-level inundated coastal valleys formed during the ice-age. This created extensive estuaries, rich in worms, molluscs and eelgrass, which are important habitats for marine birds, such as oyster-catchers, and a refuge for migratory waders. In the north the estuaries support dense groves of low mangroves, while elsewhere there are extensive rush and sedge wetlands which are spawning grounds for whitebait or inanga (Galaxias spp.). The numerous rivers of New Zealand created extensive freshwater wetlands dominated by harakeke or flax (Phormium), raupo (Typha) and sedges. These have mostly been drained but are extensive in the western South Island. Numerous small swamps and lakes have been formed to the lee of sand dunes deposited along western coasts by prevailing westerly winds. Lakes, swamps and bogs made by glaciers are features of the South Island high country.

Dune lands. Coastal sand deposits were once colonised by the now threathened pingao (Desmochoenus spiralis), a sedge used for traditional Maori weavings. The areas have been stabilised by marram grass, lupins and pines, which have displaced native species, and so few remain in their natural state.

Grasslands. When Europeans arrived in the nineteenth century much of the eastern South Island was covered by short tussock grassland or silver tussock and fescue, which had become established after Maori fires removed forests. Before the Maori the only naturally occurring lowland tussock was in the dry interior of Central Otago. Pastoral farming and introduced grasses have now largely destroyed short tussock grassland. However, at higher altitudes, especially above the bush-line, extensive areas of natural tall snow tussock (Chionochloa spp.) occur.

Shrublands. Natural shrublands are rare and usually occur where soil or water factors restrict forest development, such as the margins of coastal estuaries and other wetlands, and rocky bluffs. Immediately above the bushline, a narrow band of diverse shrubland often occurs, dominated by the heath Dracophyllum, shrub daisies, hebes, and alpine podocarps. The most extensive shrublands occur in the once-forested dryland of eastern New Zealand, where small-leaved sometimes spiny shrubs occur, notably matagouri (Discaria), tauhinu (Cassinia), and divaricating coprosmas. These shrublands are stages in the re-establishment of forest. Fernland, particularly bracken fern (Pteridium esculentum), once a staple Maori food, is very widespread throughout deforested New Zealand hill country. Like shrubland it serves as a nurse-bed for forest species.

Alpine vegetation. Large-leaved herbs, mat plants, and cushion plants occur throughout the tall tussocks, and in places dominate and form herb fields of great beauty in flower. Scree supports a range of specialised, often fleshy, drought-resistant plants. Alpine bluffs support a scattered cover of shrubs, herbs and cushion plants, adapted to extreme climate and sometimes possessing very strange form, such as the vegetable sheep (Raoulia spp, Haastia spp).

Introduced vegetation and wildlife. The New Zealand landscape is now dominated by introduced animals and plants. Over 1500 exotic plants grow wild, some (like rye-grass, browntop, gorse and sweet briar), over large areas. Although introduced plants have seldom colonised extensive areas of native vegetation, wild animals (deer, pigs, goats, possums, stoats and rats) are widespread, and some introduced birds, such as blackbirds, occur everywhere. Urban vegetation is largely exotic and domestic stock dominate agricultural areas throughout the lowlands.

Introduced plants and animals have greatly increased the diversity of species in New Zealand. However, their increase has been associated with a decrease in the area dominated by native species. Today a large number of native species are very rare and seldom seen. In recent years the urgency for measures to ensure the survival of endangered species has become a world-wide concern.

1.5 Time zone

One uniform time is kept throughout mainland New Zealand. This is the time 12 hours ahead of Co-ordinated Universal Time, and is named New Zealand Standard Time (N.Z.S.T.). It is an atomic standard, and is maintained by the New Zealand Time Service of the Department of Scientific and Industrial Research (DSIR). One hour of daylight saving, named New Zealand Daylight Time, which is 13 hours ahead of Co-ordinated Universal Time, was observed for 1989–90 from 2 a.m. (N.Z.S.T.) on the second Sunday in October, until 2 a.m. (N.Z.S.T.) on the third Sunday in March. Time kept in the Chatham Islands is 45 minutes ahead of that kept in New Zealand.

Contributors

  • 1.1 Department of Survey and Land Information.

  • 1.2 Department of Scientific and Industrial Research.

  • 1.3 New Zealand Meteorological Service.

  • 1.4 Department of Conservation.

  • 1.5 Department of Internal Affairs.

Historical

Department of Survey and Land Information; Department of Scientific and Industrial Research; New Zealand Meteorological Service; Department of Internal Affairs; Department of Statistics.

Further information

Geography

New Zealand Atlas. Ward, I., ed. Government Printer, 1976.

The New Zealand Map Collection. Department of Survey and Land Information.

Geology

Gage, M. Legends in the Rocks—An Outline of New Zealand Geology. Whitcoulls, 1980.

Lillie, A. R. Strata and Structure in New Zealand. Tohunga Press, 1980.

Riddolls. P. M. New Zealand Geology—Containing Geological Maps of New Zealand 1:2000000. DSIR, Science Information Publishing Centre, 1987.

Searle, E. J. City of Volcanoes. 2nd edition. Longman Paul, 1981.

Smith, I. E. M., ed. Late Cenozoic Volcanism in New Zealand. Bulletin 23, Royal Society of New Zealand, 1986.

Soons, J.; Selby, M., eds. Landforms of New Zealand. Longman Paul, 1982.

Speden, I. G.; Keyes. I. W. Illustrations of New Zealand Fossils. DSIR Information Series 150, 1981.

Stevens, G. R. Lands in Collision: Discovering New Zealand's Past Geography. DSIR Information Series 161, 1985.

Stevens, G. R. New Zealand Adrift: The Theory of Continental Drift in a New Zealand Setting. A. H. and A. W. Reed, 1980.

Stevens, G. R. Rugged Landscape. A. H. and A. W. Reed, 1974.

Suggate, R. P.; Stevens, G. R.; Te Punga, M. T., eds. The Geology of New Zealand. 2 vols. Government Printer, 1978.

Thornton, J. Field Guide to New Zealand Geology. Reed Methuen, 1985.

Williams, G. J. Economic Geology of New Zealand. AusIMM Monograph Series 4, 1974.

Climate

An Encyclopedia of New Zealand. McLintock, A. H., ed. Government Printer, 1966.

Johnson, K. F. Bibliography of New Zealand Meteorological Service Publications 1892–1985. New Zealand Meteorological Service, 1986.

New Zealand Atlas. Ward, I., ed. Government Printer, 1976.

The Meteorological Service publishes monthly summaries of:

Climate Observations (Misc. Pub. 109) and Rainfall Observations (Misc. Pub. 110) annually; Climate Observations which are updated every 10 years, e.g. 1980 (Misc. Pub. 177); Rainfall Normals (averages) for 30-year periods, e.g. 1951–1980 (Misc. Pub. 185); Sunshine Normals (averages) for 30-year periods, e.g. 1951–1980 (Misc. Pub. 186); and Temperature Normals (averages) for 30-year periods, e.g. 1951–1980 (Misc. Pub. 183). The service also produces regional climatologies (Misc. Pub. 115), maps and many other publications.

Vegetation and wildlife

Enting, B.; Molloy, L. The Ancient Islands. Port Nicholson Press, 1982.

Kuschel, G., ed. Bio-geography and Ecology in New Zealand. W. Junk, 1975.

Salmon, J. J. The Native Trees of New Zealand. Reed Methuen, 1980.

Stevens, G. R. Lands in Collision: Discovering New Zealand's Past Geography. DSIR, 1985.

Chapter 2. History

2.1 New Zealand before 1840

Archaeology and oral tradition are the main sources for present-day knowledge of the origins and way of life of the early Polynesian inhabitants of the islands in the Pacific which became known as Aotearoa. Archaeology encompasses physical anthropology, linguistic evidence, and traditional accounts, as well as sophisticated examination of the tangible relics of human occupation. Oral traditions did not simply describe what happened. They also explained and justified past events, and were often the accounts of the victors in intertribal conflict. Both are of much value to historians, and also pose problems. Statements about New Zealand's Polynesian past must therefore remain tentative.

An outpost of Polynesia

The ancestors of Aotearoa's earliest inhabitants are thought to have reached the western Pacific some 4000 years ago, and gradually made their way along the Melanesian chain of islands. Long ocean journeys became possible for them with the introduction of the sail and the invention of the outrigger, which stabilised canoes in rough seas. They reached Fiji and Tonga by about 1000 B.C., and in this area many of the distinctive features of Polynesian social organisation and language developed. About 2000 years ago there was a further eastward movement to the Society, Marquesas, and Cook Islands, at the heart of the Polynesian triangle. Probably from this region, the most isolated parts of Polynesia were settled—New Zealand, Hawaii, and Easter Island. There has been much controversy as to the nature of, and reasons for, undertaking such long ocean voyages. Some would have been accidental, the result of canoes being blown off shore. At other times, refugees from defeated tribes or over-populated areas may well have set off into the unknown, confident that they were likely to make a safe landfall somewhere. Knowledge of stars, currents, bird migrations, and the signs of distant land was such that the possibility of controlled journeys over even thousands of kilometres cannot be discounted. The canoe or canoes which brought the first successful colonists to Aotearoa must have carried men and women, dogs, rats, vegetables for cultivation, and a variety of tools and ornaments for practical use and as models for those to be made subsequently. Such a well-equipped expedition is unlikely to have been completely accidental.

Polynesian people, known today as Maori, were living in New Zealand by about the tenth century A.D., although earlier dates have been considered until quite recently. They had come in one or more groups from the same general area of eastern Polynesia, known to them as Hawaiki. There are traditions of numerous voyages from Hawaiki, and of a number of famous canoes, whose occupants were the founders of tribal groupings which remain distinctive today. Some of these stories probably refer to migrations within New Zealand; a few to voyages elsewhere in Polynesia. After the initial period of settlement there were probably few or no continuing contacts with the outside world. Maori culture developed characteristics which reflected both its Polynesian roots and its new physical environment.

Maori agriculture. By the twelfth century settlements were scattered over most of the country. At first their inhabitants tried to reproduce a tropical Polynesian economy. Their ideal subsistence base was kumara (sweet potato) horticulture, supplemented by fishing, hunting, and plant gathering, but there was no typical form of subsistence. In the tropical Pacific the kumara is a perennial and can be propagated by direct transfer. Under New Zealand conditions it was necessary to store the crop over winter in sunken cellars and underground pits to provide tubers for winter consumption and seed tubers for spring planting. This adaptation of kumara cultivation was a great agricultural achievement. Gourds were also grown widely, and taro was important in a few favoured northern areas, while yam and paper mulberry cultivation was barely possible. Kumara would not grow in the southern part of Te Waipounamu (the South Island). Here people lived by hunting, fishing, and food gathering, and moved seasonally between areas with different resources.

In the early centuries of settlement the plains of Te Waipounamu, in particular, supported huge numbers of large flightless birds called moa. These provided an excellent food source, substituting for native land mammals, which were almost non-existent. Until moa numbers were seriously depleted, by hunting and by the destruction of the forest cover on which they depended for food, the eastern South Island seems to have been the most densely peopled part of New Zealand. The decline of the moa was probably accompanied by climatic changes which made horticulture more difficult and made the inhabitants more dependent on fish, shellfish, and marine mammals. After about 1400 the population of the South Island fell. In the most closely settled parts of Te Ika a Maui (the North Island), such as the Tamaki isthmus (now the site of Auckland city), hunting and trapping declined rapidly, and fishing and shellfish gathering provided the main sources of protein. Here cultivations were more extensive and productive, and most people lived in settled communities, in which pa (earthwork forts) became increasingly common as the population grew, and competition for the most valuable land led to greater conflict.

Maori social organisation. Maori society comprised groups of varying size: whanau (extended families of perhaps 10 to 30 people), hapu (subtribes, with up to 500 members) and iwi (tribes). Membership of these groups was usually based on descent from a common ancestor. There were also waka, loose groupings of tribes whose claimed descent from people who had sailed on the same migratory canoe. Components of the system changed over time. Large whanau evolved into hapu, and large hapu came to be considered tribes, while other related branches declined. In everyday life hapu were probably the largest significant groups. They were the basis of the larger settlements and probably formed the normal fighting units in warfare. In response to major external threats, however, people would congregate at a few large pa, setting aside quarrels to face the common tribal enemy. Settlement styles varied greatly, influenced by patterns of subsistence, climate, and the extent to which local relationships were peaceful or warlike. James Cook's 1769 expedition observed pa sizes ranging between three and 500 houses. People lived in dispersed hamlets, in large fortified pa and, in some areas, in isolated households. As with economic life, there was no single characteristic form of social organisation.

For most Maori life was fundamentally a communal experience, in which all aspects of living were inter-related. Economic and social activities were shared, and carried out on behalf of the whole community. Land, which was by far the most important form of property, belonged to the tribe as a whole, although smaller groups had traditional rights to use particular areas and resources. Kaumatua (elders) headed families. Communities were nominally—and to a significant degree, actually—ruled by rangatira (chiefs), whose positions were hereditary but had in practice to be reinforced by performance. Nor could rangatira ignore public opinion as expressed at tribal meetings by kaumatua. Chiefs and their possessions were to some extent tapu (sacred) and thereby protected against harm. Tapu also safeguarded cultivations and burial grounds, and functioned as an agency of social control more effective than any police force. Tapu was regulated by tohunga (priests or experts). Those of highest status interpreted the will of the gods and embodied tribal history' and knowledge; lesser tohunga were specialists in such things as carving, tattooing, and canoe-building.

Relations between tribes. Tribal groups interacted through both trade and warfare. Regional specialities such as greenstone (jade) and titi (muttonbirds) were often transported long distances for bartering, probably at first mainly by ocean-going canoes. Knowledge also was transferred between tribes; Cook found at some landfalls that news of his coming had preceded him.

Making war was probably an important feature of life from the earliest times, although particular areas might be free of it for long periods. Competition for status and authority, and the desire for mana (prestige), motivated both individuals and whole tribes. Reasons for continuing conflicts were seldom absent: the importance of the concept of utu (the principle that acts should be repaid equally) meant that at least one party to a dispute usually felt justified in carrying it on. War was also a means of gaining control over land, which was valued for its fertility or its resources, such as stone for tool-making. But fighting was usually seasonal, fitting in with the cycles of subsistence, and conducted by small' raiding parties carrying out sporadic attacks which produced few casualties. The construction of elaborate fortified pa in the seventeenth and eighteenth centuries suggests that warfare intensified in that period. Particularly in the warm, fertile northern part of Te Ika a Maui, where an increasing population made natural resources scarcer and more valuable. At times, economic pressures or military defeat displaced hapu or whole tribes into less desirable areas, whose occupants were in turn driven out or enslaved. But in many regions there was unbroken occupation by the same group of people over long periods.

Life in pre-European New Zealand has been seen by various writers as embodying ‘manly’ virtues, ideal communism, nature-centred spirituality, or healthy rural simplicity. It had elements of all these qualities, but it could also be ‘nasty, brutish and short’. Archaeological evidence suggests that the Maori were relatively tall and sturdy, free from infectious diseases, adequately fed, and fairly unlikely to die violently. But the average life span was only about 30 years, similar to that in most societies up to the twentieth century. Many adults suffered from arthritis brought on by constant physical labour, and from gum infections and tooth loss resulting from their diets.

By the late eighteenth century there were probably rather more than 100 000 ‘New Zealanders’, all but a few thousand of them living in the North Island. Fiercely protective of their social identities, they were deeply attached to the land which gave them physical and spiritual life. Their ways of living had evolved many local variations. They had no concepts of nationhood or race; as they began to encounter Europeans, they saw them as members of another, if stranger, rival tribe.

European exploration

There is no convincing evidence to support ingenious theories that New Zealand was the landfall for one or several long-forgotten European voyagers before the 1640s. It seems clear that the first arrivals from overseas for several centuries were the members of a Dutch East India Company expedition commanded by Abel Tasman. He was sent in quest of the riches of the Great South Land which was supposed to balance the land mass of Eurasia in the Northern Hemisphere. On 13 December 1642 he sighted ‘a large, high-lying land’ which he named Staten Landt. It was the west coast of the South Island of the soon-to-be-renamed ‘Nieeuw Zeeland’. Tasman anchored a few days later, and lost four men when local Maori interpreted an exchange of trumpet fanfares as a prelude to battle. Sailing away up the west coast of the North Island, he did not again attempt to land, and so found none of the ‘treasures or matters of great profit’ which were the object of his voyage. Aotearoa was now represented by a jagged line on European maps, but Tasman's experience did not encourage explorers or fortune-seekers to follow in his wake.

Europeans did not return until 1769. This time those seeking the mythical southern continent were British, the expedition's ostensible purposes were scientific, and its leader was the great explorer James Cook. On his first visit he circumnavigated New Zealand; his published journal and the reports of the scientists and artists on board made it known to the outside world. He returned in 1773–74 and 1777. There were misunderstandings and violence: a Maori was killed at Cook's first landfall and, in 1773, ten of his men were killed and eaten at Arapawa Island in the Marlborough Sounds. But he persevered, finding most encounters characterised by mutual curiosity and eagerness to barter. His respect for the Maori as ‘noble savages’ excited European imaginations, and foreshadowed attitudes which were to be important later.

Other explorers soon followed, the Frenchman Jean de Surville only two months after Cook first arrived. Ill-treating the local inhabitants, he set the scene for the blunders which three years later led to the deaths of his countryman Marion du Fresne and some two dozen of his crew. Julien Crozet, du Fresne's second-in-command, massacred about 250 Maori in retaliation. Further expeditions under the Englishman Vancouver, the Frenchman D'Entrecasteaux, and the Italian Malaspina (leading a Spanish fleet) ensured that New Zealand was not again forgotten in Europe.

Trade and religion. Two early British schemes to colonise New Zealand came to nothing. But soon after a penal colony was established at Fort Jackson (now Sydney) in 1788, commercial exploitation of Aotearoa's resources became practicable. New Zealand became, in economic terms, an offshoot of New South Wales. In 1792 the first sealing vessel in New Zealand waters left a gang at Dusky Sound in Fiordland. Americans soon played a major role in sealing, which was mostly carried out in the far south, from Dusky Sound to Otago. It reached a peak in the first decade of the nineteenth century, after which over-exploitation brought a shift in the focus of activity to the newly-discovered sub-antarctic Campbell and Macquarie Islands.

Deep-sea whaling in New Zealand waters began in 1791, and remained important for about half a century, reaching a peak in the 1830s. Most whalers were American or British, although Australian, French, and Portuguese vessels were involved late in this period. Increasingly whaling vessels called at New Zealand harbours, notably the Bay of Islands, for rest, recreation, and replenishment of supplies. While whalers' visits were usually brief, they became frequent enough to have a significant impact on local Maori communities. From 1829 bay whaling stations were established around the coasts of the South Island and the southern half of the North Island. These bases were usually quasi-permanent, and often became focal points for European settlement, as their activities included farming and trade.

Flax was seen as an important commodity from Cook's time. It was the intended economic basis for several abortive colonisation schemes. A boom in flax exports from the late 1820s proved to be short-lived, but it did result in more settlers joining the bay whalers and the already well-entrenched missionaries. Scraping flax was very laborious work, and the ropes and cordage made from it varied in quality. Timber was the next major primary product, with exports reaching a peak about 1840. Mills were opened around the richly-forested northern coasts, most notably around Hokianga Harbour, where a number of European timber millers settled, and a shipyard was established in 1826. Agricultural exports also increased. Potatoes (introduced by Cook or du Fresne) and pigs (landed at the orders of Governor King of New South Wales in the 1790s) were being traded with visiting ships by the early 1800s. From this time wheat and maize were cultivated by Bay of Islands Maori. By 1836 it was said that New Zealand was ‘becoming a perfect granary for New South Wales’. Missionaries had introduced horses and cattle in 1814, and later set up demonstration farms. Bay whalers and other traders also grew crops and ran stock. European enterprise developed side by side with such Maori adaptations as the rapid acceptance of the potato as a staple food.

New Zealand's first mission station was established at Rangihoua in the Bay of Islands in 1814, under the auspices of the Church of England's Church Missionary Society. The man most responsible for its formation was Samuel Marsden, senior chaplain to the New South Wales penal colony from 1800 until his death in 1838. An entrepreneur as well as a stern propagator of the faith, he was a successful breeder of sheep and cattle, pioneered grape growing in New South Wales, and owned mills and ships. Under his supervision the society's mission at first comprised men with practical skills, who were encouraged to engage in trade. Indeed they had no choice, as the first station was on a site too poor to support even subsistence agriculture. The community barely survived isolation, internal squabbles, and the uncertain patronage of local chiefs. Preaching the faith did not really begin until the determined Henry Williams arrived to set up a new station at Paihia in 1823. The establishment of a farm inland at Waimate in 1831 was followed late in the decade by expansion of Anglican missions southwards as far as the Waikato, Rotorua, and Gisborne, and (in 1839) to the coast north of Wellington. From 1827 Maori language translations of the Bible were made, and the teaching of reading and writing in Maori was emphasised. The Wesleyans had opened a mission in the Hokianga area in 1823, and also set up stations further south in the 1830s. A Roman Catholic Marist mission, led by Bishop Pompallier, began in Northland in 1838. From the mid-1830s many Maori converted to Christianity. Movements which blended Maori and Christian ideas also developed. An example was that of Te Atua Wera/Papahurihia in the Bay of Islands-Hokianga area. They were part of the adjustment of traditional social patterns to new realities.

Changes in Maori society

It is difficult to assess what effect the presence of Europeans—around the coasts and venturing into the interior in the last few years before 1840—had on the indigenous inhabitants. It has been asserted that the Maori population declined by nearly 50 percent between 1770 and 1840; and, alternatively, that it was about the same in both years. Both sides put the 1840 figure at between 100 000 and 125 000. Differences of this scale over such a basic issue suggest how difficult it is to make firm statements about Maori society in the period. Areas such as the Bay of Islands and the Hokianga, where contact with Europeans was greatest, underwent in a few decades changes which had taken centuries to transform Europe. Maori society was resilient and able to adapt to the revolution in technology and ideas with which it was confronted. The European impact varied greatly. In the Bay of Islands there was an intermittent pakeha (non-Maori) presence from the 1790s, and permanent settlers from 1814; these numbered several hundred by 1839. In contrast, areas such as the Urewera mountains had not been visited by Europeans when British sovereignty was declared. Other regions had varying exposure to direct and indirect contact.

European diseases seem to have first reached epidemic proportions in the 1790s. The Maori initially had no immunity to them, and they were made more vulnerable by their communal lifestyle. Dysentery, diphtheria and influenza took many lives in the following decades. But some of the world's most lethal diseases, including yellow fever, typhus, and cholera, were not introduced, and by 1840 immunities to the more common types of sickness were beginning to develop. Some health problems resulting from pakeha presence were very localised—alcoholism and prostitution were confined to the few zones of intense contact. Other effects were widespread. European-introduced animals were both a source of food and rivals for scarce resources, while new plants such as potatoes and corn eventually became staples of Maori diet. The ability to purchase desired European goods depended on income-generating activities which often necessitated debilitating labour, such as raising commercial crops, felling and transporting timber, and stripping flax. Sometimes whanau or hapu moved to unhealthy lowland areas to be close to now-valued resources. New fashions in clothing, such as the wearing of European suits or blankets, regardless of their unsuitability in hot or wet weather, also increased susceptibility to sickness.

The nature of Maori warfare was altered by the introduction of muskets in the early 1800s. These were first used in small numbers as close-combat weapons of the traditional kind. By 1818 the Ngapuhi confederation—because of geography the pioneers of much social change in the period—discovered that the firing of many weapons at a distance created enough terror to enable the rout of an enemy to be completed by traditional means. From 1820, when their great chief Hongi Hika returned from a missionary-inspired visit to England with 300 muskets, Ngapuhi and their allies rampaged across the North Island on a series of expeditions which took many lives, settled old scores, and raised the mana of the victors to unprecedented heights. As muskets became widely available, other tribes took advantage of temporary leads in local arms races to attack their neighbours. By 1840 the balance of power was such that inter-tribal warfare had virtually ceased. One result of these campaigns was the migration of perhaps 30 000 people and, as a consequence, intractable disagreements about land rights in some areas.

Maori people were eager to adopt European goods and ideas: muskets, agricultural techniques, literacy, and Christianity were all enthusiastically embraced, and some (such as firearms) rapidly became necessities. Some Maori even travelled the world as crew members on European ships. But pakeha innovations were used in Maori ways for Maori purposes. If they did not serve these purposes they tended to be abandoned. The increased rate of conversions to Christianity just before 1840, for example, can be understood in terms of changes in Maori society, as well as seen as a consequence of more effective missionary activity. Social dislocation which resulted from inter-tribal fighting fed a need for spiritual explanation. But the new religion was also fashionable, and the mana which was granted to the literate brought many eager students to mission schools. Missionary teaching was a means to the end of gaining European knowledge. For Maori the most important function of a pakeha was to provide trade goods. Europeans lived in New Zealand on Maori terms, and in 1839 there were still only a few more than 1000 scattered over the whole country.

British sovereignty established

The vagueness of their instructions allowed early Governors of New South Wales to view New Zealand as a political as well as an economic ‘dependency’, and also to encourage plans for settlement. In 1804 Governor King ordered investigations into charges that brutalities had been inflicted on Maori by a ship's captain. This was the first of many attempts to regulate the behaviour of British subjects in New Zealand. In 1814 the Maori people were declared to be ‘under the protection of His Majesty’, and the missionary Thomas Kendall was appointed as a justice of the peace to maintain order in co-operation with local chiefs. He had no effective force at his disposal. Prisoners had to be sent to Sydney for trial. In 1817 Britain declared New Zealand to be outside its legal jurisdiction, although British subjects could be charged for serious crimes committed there. Schemes for colonisation continued, and in 1826 settlers selected by the first New Zealand Company arrived. While many went straight on to Sydney, some established themselves at the Hokianga. As trade and settlement increased. New Zealand moved further into the British sphere of influence. In 1832 James Busby was appointed British Resident at the Bay of Islands. He was a ‘watchdog without teeth’, having very few legal powers (he was not even a justice of the peace) and no reliable means of coercing British subjects. His authority rested on occasional visits by British warships. In 1837 one of three Europeans who had plundered the home of a Kororareka storekeeper was hanged in Sydney. British subjects fomenting disorder in New Zealand were clearly now subject, at least potentially, to legal retribution.

In May 1837 a combination of the remnants of the earlier New Zealand Company and others interested in profiting from Edward Gibbon Wakefield's ideas of transplanting the pre-industrial English class structure to the colonies formed what was soon to be named the New Zealand Company. An attempt at the ‘systematic colonisation’ of New Zealand was now imminent. Wakefield's vision was of the migration of integrated communities comprising all social strata from gentry to respectable working folk, while excluding the nobility and the very poor. The key to success was to set a ‘sufficient’ price for land. If land was too cheap it would be bought by both speculators and labourers, with undesirable consequences; but the price was to be low enough to enable working-class people to settle on the land after some years of thrift and honest toil, their purchases financing a fresh influx of labourers and ensuring continued economic growth. The eventual form of settlement owed little to this theory, but Wakefield's energy and the strength of his backers ensured that large-scale colonisation would take place. The company sent an expedition in 1839 to find a site for a colony. It acted in haste because the decision to annex New Zealand had already been made, and it wished to buy land before its dealings could be regulated by officials. Even before word reached England that any land had been bought, ships full of emigrants had departed, the first (the Tory) arriving at Port Nicholson (Wellington) on 22 January 1840.

British sovereignty over New Zealand was established in international law by New South Wales Governor Gipps' proclamation on 14 January 1840 that his frontiers included New Zealand, and that Captain William Hobson was appointed his Lieutenant-Governor there. Hobson arrived at the Bay of Islands with a small entourage of officials on 24 January, and at Waitangi on 6 February 1840 he obtained from local Maori chiefs the first signatures to the Treaty of Waitangi'. The significance of this document has been debated ever since. In its English-language original all rights and powers of sovereignty were ceded to Queen Victoria, while in return the possession of land, forests and fisheries was secured to the chiefs, with the Crown alone having the right to purchase land. The Queen extended her protection and all the rights and privileges of British subjects to the Maori people. The Maori-language version, hastily translated by the missionary Henry Williams, was couched in considerably vaguer terms, partly because of the difficulty of conveying European legal concepts. Maori signatories assented to the Queen taking over the rights of ‘kawanatanga’ (governorship). As the only local example of the exercise of such authority was the ineffective James Busby, it is unlikely they understood the possible implications of their agreement. Over the next few months signatures to several differing versions of the treaty were collected around the country. Important tribes such as Ngati Maniapoto and Waikato did not regard it as a matter deserving serious consideration, and failed to sign; Ngapuhi were resented for their role as first signatories. To further complicate matters, on 21 May 1840, while signatures were still being sought, Hobson proclaimed British sovereignty over the North Island by virtue of the treaty, and over the South and Stewart Islands on the basis of Cook's discoveries. In 1841 New Zealand became a colony in its own right, and the capital followed a shift in the balance of European settlement from its first site at Russell in the Bay of Islands to the new town of Auckland on the Tamaki isthmus, which was both strategically located and surrounded by land ideal for farming.

2.2 European and Maori, 1840 to 1890

Growth of European settlement

New Zealand Company settlements were founded at Wellington in 1840, Wanganui and New Plymouth in 1841, and Nelson in 1842. By 1845 the company had brought about 9000 settlers to the country. In 1842 the main towns had non-Maori populations of 3800 in Wellington, 2900 in Auckland, 2500 in Nelson, 900 in New Plymouth, 650 in Russell and Hokianga combined (which shows how quickly this area was bypassed by settlers), and 200 in Akaroa, where colonists were landed by the French Nanto-Bordelaise Company in 1840. These European enclaves were ‘mere encampments on the fringe of Polynesia’; their very existence was dependent on the tolerance of local Maori. This could scarcely be relied on, as the New Zealand Company had bought land in such haste, and with such little regard for the communal nature of Maori land tenure, that war was at least threatened at each of their sites within a few years. In 1843 a number of Europeans were killed in the Wairau area when they illegally tried to arrest two Ngati Toa chiefs. Te Rauparaha and Te Rangihaeata, for resisting the survey of land that the chiefs denied having sold. Tribes-people led by these chiefs were involved in fighting in the hinterland of the Wellington settlement in 1846; again, Maori were opposing settler encroachment onto land that the Maori held was still theirs. There were several attacks on the town of Wanganui in 1847. In Taranaki the two races teetered on the brink of war for nearly 20 years. After two official investigations of the company's land purchase, the New Plymouth settlers were left to occupy a few thousand acres adjacent to the town. The scarcity of land suitable for agriculture blighted life within the towns. Uncertainty of tenure, and the mediocre quality of much of what was available, slowed sales and Jed to the acquisition of an increasing number of sections by absentee speculators (a problem which had impeded development in the New Zealand Company towns from the beginning). The resulting under-employment of Wakefield's ‘respectable’ labourers and artisans produced recurrent poverty and unrest. Only the later settlements of Otago and Canterbury could be considered successes. Otago was established in 1848 under the auspices of the New Zealand Company and in co-operation with the Free Church of Scotland. Canterbury folowed in 1850, with the support of the Church of England. There were only 2000 Maori in the whole of the South Island, and land purchases there were not disputed at the time.

War and politics in the 1840s and 1850s

New Zealand's first Governors—Hobson and Robert FitzRoy—were hamstrung by their acute lack of resources. The British Colonial Office required its colonies to be self-supporting; they were expected to pay their way through customs revenue and land sales. But the New Zealand state was at first unable to obtain much land, despite its monopoly on purchases from the Maori. The latter were not eager to sell at less than a fair market price, which the state could not afford to offer them. The imposition of customs duties drove away traders and raised the price of imported goods. The administration, at times insolvent, survived on Maori goodwill and economic assistance, and minimal financial support from London. In 1844 FitzRoy abolished customs duties, imposed a property tax, and allowed limited direct land dealings beween settlers and Maori. The practical effect of these measures was the loss of his only potential sources of substantial revenue. The measures were insufficient to conciliate the Ngapuhi chief Hone Heke, who was concerned at the decline of the Bay of Islands as a centre for European trade and settlement, and at the government's efforts to diminish chiefly authority by partially replacing it with its own. Heke's quarrel was with the state alone; he wanted to preserve the valuable Maori-European economic relationship. He allied himself with the resourceful chief Kawiti, who adapted traditional pa design to successfully withstand artillery bombardment and inflicted a serious defeat on British regular troops at Ohaeawai in mid-1845. Their combined forces had the better of a ten-month campaign which ended after an inconclusive engagement at Ruapekapeka in January 1846. Heke continued to be the most powerful man in the North until his death in 1850, and government influence there remained low. No punishment was imposed on the ‘rebels’.

FitzRoy was replaced during the Northern War by George Grey, who was to rule as Governor until 1853, and again (less autocratically) from 1861 to 1868. Backed, as his predecessors had not been, by adequate financial support from Britain, he was better equipped than they to mollify pakeha grievances about the slow growth of the colony. The European population had reached only 32 500 by 1854, when an elected General Assembly first met in Auckland. Demands for local self-government had nevertheless been voiced since 1840, when a New Zealand Company-appointed regime had ‘ruled’ for several months at Port Nicholson until Hobson declared it illegal. The ‘Wakefield’ settlements were led by well-educated gentry and middle-class families who expected to govern themselves. After Grey successfully argued against the implementation of an 1846 British Act conferring representative institutions, on the grounds that the state of race relations in the North necessitated his being in total control, constitutional associations in several centres agitated for elected assemblies.

The British Constitution Act of 1852 conferred a General Assembly with two chambers—an elected House of Representatives and a nominated Legislative Council—and divided the colony into six provinces (centred on the five Wakefield settlements and Auckland), each with an elected Provincial Council and headed by a separately-elected Superintendent. The vote was granted to all pakeha men aged 21 or more who met minimal property-owning requirements. Maori were in practice nearly all disfranchised. The Provincial Councils were subordinate to the General Assembly, and were barred from legislating on a range of subjects, including customs duties, currency, the justice system, postal services, and marriage. The central settler government was competent to act in most areas, but ‘native’ policy remained in the hands of the Governor until 1864, and foreign policy was made by the British government. In areas of domestic policy the General Assembly was not completely its own master. The Governor was empowered to reserve New Zealand legislation for the Sovereign's assent, and the Sovereign could disallow legislation after the Governor had assented to it. Both these powers were used, although rarely. The United Kingdom Parliament also had the authority to pass legislation applying to New Zealand, even overriding New Zealand legislation. After considerable confusion, Parliament's right to appoint ministers whose advice the Governor was normally obliged to take was recognised, and in 1856 Henry Sewell became Premier and formed the first responsible ministry.

Despite the comparatively wide franchise, for several decades only a minority of European males participated in electoral politics. The property test eliminated some, and many who were eligible did not register on the electoral rolls. Until 1879 polls in which fewer than half of those registered voted were common. Most people had more pressing concerns. A small group of men with sufficient leisure time to engage in politics easily dominated the scene, many were elected and re-elected unopposed. While there was a rapid turnover of MPs and ministries in the absence of any party organisation, there was considerable continuity in administration. A core of able men was essential for any ministry which was to last for long.

Most politicians put the interests of their own provinces before the colony's. Having been firmly established for several years before responsible central government came into effect, the provinces had taken over many key matters, including immigration, roading, land administration, policing, education, and hospitals. In 1856 their entitlement to land revenue and a share of customs duties was confirmed. In return they accepted responsibility for colonisation and development. Wide regional and local disparities resulted. The North Island provinces, particularly Auckland and Taranaki, had little land to sell and were always short of funds. Th South Island counterparts, especially Canterbury and Otago, had ample land and were to profit from economic booms which accompanied gold rushes in the 1860s, when they embarked on ambitious road, harbour, tunnelling, and immigration programmes. Wealthy provinces resented central government interference in their affairs, and southerners saw their revenues threatened by increased military expenditure in the North Island in the 1860s. Poor provinces looked to the capital for salvation from insolvency. Within each province the main towns were dominant, and little money reached outlying districts. This stimulated a desire for local autonomy which bore fruit in the creation of the new provinces of Hawkes Bay, Marlborough, Southland, and later Westland. Except for Hawkes Bay, they conspicuously failed to prosper, and their Lilliputian crises brought the whole system into disrepute. Nevertheless, European settlers identified strongly with their own communities, and the difficulty of communication between the areas they occupied made considerable regional autonomy essential.

Maori society from 1840 to 1860

In the 1840s the Maori were still preoccupied with their own concerns. Inter-hapu and intertribal competition was of paramount importance, and society remained fragmented. The very use of the word ‘Maori’, which implied the existence of a common race and culture, was mainly confined to pakeha until the 1850s. European innovations provided new ways to pursue traditional social and economic rivalries. Christianity offered literacy, a skill prized as a new basis for competition. Introduced foodstuffs such as potatoes and pigs, which could be raised in abundance with comparatively little effort, transformed the conspicuous production and ceremonial display of food—the yardstick shifted from quality to quantity. Maori participated vigorously in the colonial economy, exporting potatoes, wheat, and pigs throughout Australasia, and to the Californian goldfields. Maori farmers produced the bulk of New Zealand's exports to the Australian diggings. Horses, sheep, schooners, and flour mills were acquired as symbols of wealth as well as means to its creation. However, Maori agricultural production declined after an 1856 slump in the market in Victoria. European farmers had the advantage of individualised land tenure and, with access to credit, could make better use of technological innovations.

The first census of the Maori population in 1857–58 put the total at about 56 000, less than the pakeha population and only half of Dieffenbach's 1843 estimate. Both figures are doubtful, but the trend was clear. To the toll of diseases such as influenza, whooping cough, dysentery, and measles was added the effects of tuberculosis, bronchitis, and other respiratory tract infections, and low fertility caused by the previous generation's ill-health. High mortality rates contributed to the survival of belief in tapu and makutu (magic). The rituals of Christianity were widely adhered to, but for many Maori offered only partial explanations of an unsettled world.

As more European colonists arrived, questions of land ownership became more pressing. The traditional Maori practice was to reinforce claims to land by regularly using its resources. From this perspective, settlers who paid for land, built houses, and planted crops were generally accepted, but people who piled goods on the shore and disappeared were not taken seriously. From 1840 Maori people quickly became aware of the significance to the pakeha of the land deed itself, and the permanent nature of the alienation which followed its transfer. Yet they offered much land for sale over the next two decades. Many Maori were anxious to have settler communities in their midst as a guarantee of long-term progress. Land sales gave a unique opportunity to vindicate claims to customary title over rivals. The ceremony of payment was usually a vital part of the transaction, while the price paid was less important. Tensions between claimants often made sales acrimonious. Few chiefs obstructed sales on principle, just as few were committed to a policy of selling land. The goal was rather the advantage of one's own hapu.

Extensive land purchases by the Crown during Grey's first governorship were masterminded by his able lieutenant Donald McLean. Most of the South Island was bought for only £15 000, and 13 million hectares throughout New Zealand had been obtained by 1853 at a total cost of £50 000. McLean made huge purchases in the Manawatu, Wairarapa, and Hawkes Bay, while the boundaries of settlement advanced more slowly in the Auckland area. Maori tribes remained in control of a broad belt of territory stretching across the North Island from Taranaki to the Bay of Plenty and the East Coast. Grey's successor, Thomas Gore Browne, was unable to buy much land in this region, even when McLean resorted to secret deals and other underhand tactics in response to increasing settler pressure. Maori attempts to prevent land sales culminated in a pantribal movement, the Kingitanga, which in 1858 installed the venerable Waikato chief Te Wherowhero as King Potatau I. Its promoters hoped to end the chronic disputes by placing all Maori land under the King's mana and making its ownership subject to the decisions of his magistrates. But Maori society had no precedents for allegiance to a central judicial or administrative authority. Tribes of the Tainui confederation generally supported the King, but many others did not. The Kingitanga meant more to the chiefs, as a means of bolstering their mana—threatened by European-inspired individualism—than it did to their followers.

The struggle for supremacy: 1860–1872

Grey hoped to gradually transform the Maori into brown-skinned pakeha, who would ultimately be absorbed into a predominantly European population by inter-marriage. Grey's policy would require radical changes in Maori lifestyle, which he encouraged in a variety of ways. He financed English-language education of Maori children, fostered Maori agriculture and commerce with gifts of ploughs, mills, seeds, and schooners, and employed Maori and pakeha on ostensibly equal terms in the police forces that he controlled. In his second term Grey established a scheme for local administration under which Maori runanga (assemblies) would gradually introduce European concepts of law. The purpose of these ‘new institutions’ illustrates Grey's overall aim: the ‘amalgamation of the races’ was to occur on pakeha terms. Britain had asserted since 1840 that its law applied throughout Aotearoa, but in 1860 much of the North Island was still effectively beyond government control. The war which now broke out had much to do with the contest for land, but it was also a struggle for authority over the people that the land sustained, and for mana.

Fighting began in Taranaki in March 1860, when British troops attempted to remove Te Atiawa tribes people from land at Waitara which the Crown had allegedly bought, but which most of its claimants had refused to sell. Te Atiawa were soon reinforced by the Taranaki and Ngati Ruanui tribes, and later by Kingite forces from the Waikato region. In June, 350 Imperial troops were heavily defeated when they assaulted a pa at Puketakauere which contained both dummy and concealed defensive positions. For a year the civilian pakeha population remained virtually under siege in New Plymouth, while the British military vainly sought to engage the Maori in a decisive battle. Eventually the British embarked, under cover of a series of redoubts, on a laborious advance which had achieved no tangible success by the time a truce was agreed in March 1861. Fewer than 1000 Maori warriors had not lost any territory to some 3500 opponents, and were also able to keep the considerable resources plundered from abandoned European properties.

With Grey's return in 1861 the focus shifted to the Waikato. Imperial troops were steadily augmented, a military road was constructed from Auckland to the Waikato River, and the heartland of Kingite power was invaded in July 1863. British forces eventually numbered 14 000 effective troops (more than were available for the defence of England) and were led by a highly competent staff under General Sir Duncan Cameron, but they had great difficulty pushing back Maori opponents who never numbered more than 2000 at one time. Given the inability of the Maori economy to sustain an army continuously in the field, and the many obstacles to effective inter-tribal military co-operation, the Kingite resistance was remarkably successful, but by mid-1864 the Waikato Basin had been occupied up to the Puniu River. The search for a decisive victory now led Cameron to Tauranga, where he was stunningly defeated in a frontal attack on a superbly-designed fortress at Gate Pa, but was able to partially avenge this reverse at Te Ranga a few weeks later.

The territory occupied in the ‘Waikato War’, about 400 000 hectares, was confiscated by the colonial government, but fighting was far from over. Imperial troops campaigned on the west coast in 1865–66, while colonial units and allied kupapa (pro-government Maori) fought in the east. Both opposed adherents of the new religion of Pai Marire, which combined elements of traditional Maori beliefs, Christianity, and the innovations of its Taranaki prophet, Te Ua Haumene. In 1868, with Imperial forces now withdrawn from active service and ‘native’ policy firmly in the hands of the settler government, a grave crisis abruptly confronted pakeha New Zealand. Belated attempts to implement years-old land confiscations provoked a campaign by the Ngati Ruanui chief Titokowaru, who with a few hundred warriors repeatedly defeated much larger colonial forces until dissension among his followers brought his advance to an end. Simultaneously, the Rongowhakata prophet Te Kooti Rikirangi conducted a brilliant guerrilla campaign in the Poverty Bay area after escaping with some 160 prisoners of war from exile in the Chatham Islands. He proved far less adept than Titokowaru at pa construction and defence, however, and armed support for his cause dwindled until he was forced to seek sanctuary in Kingite territory early in 1872. The zone of effective Maori autonomy had now shrunk, but it still encompassed the ‘King Country’ in the central North Island, South Taranaki, and the Urewera district. Pakeha sovereignty was now an established fact, but it was by no means absolute.

Pastoralism and gold

The huge Grey/McLean land purchases were the basis for an expansion of European economic activity. The Canterbury settlement, whose social composition came closest to Wakefield's ideal, was for a few years the colony's best approximation to a concentrated agricultural community. Soon, however, it became the most important base for a rapidly expanding pastoral economy. From the late 1840s, sheep grazing spread across the open country along the east coasts of both islands. Australian ‘squatters’ sold surplus merinos to New Zealand colonists with capital, and from the early 1850s many crossed the Tasman themselves to take up cheap long-term grazing leases. Grey reduced the price of rural land in 1853, ostensibly to help small farmers. The main effect, however, was to allow runholders to consolidate their holdings. By the mid-1860s many had secure tenure. During this ‘golden age’ of pastoralism, overseas prices for wool rose steadily, and sheep numbers increased from 750 000 in 1855 to 10 million in 1870. Wool was king, and the pastoralist came in some ways to resemble Wakefield's rural gentleman, pre-eminent economically, socially, and politically in his domain. But the scale of pastoral farming was very different from the intensive agriculture Wakefield had envisaged. Much of the work (e.g., shearing) was seasonal and undertaken by itinerant labourers; station homesteads were often quite primitive, and usually far from neighbours. Transience and loneliness thus accompanied economic growth.

The quest for wealth from a second staple product—gold—brought more hardship and isolation in the 1860s, even as the population rose rapidly. Beginning in 1861, a series of gold rushes transformed Otago virtually overnight. The province's population increased fivefold (to 60 000) between 1861 and 1863. Then the main focus of activity shifted to the west coast of the South Island, where by 1867 there were 29 000 inhabitants in an area almost unoccupied three years earlier. Mining declined rather quickly in Otago, more slowly in Westland. From the 1880s expensive dredging techniques revived the industry in both regions. The ‘diggers’ had profited less than had merchants, bankers, and farmers. Farmers also benefited from the influx of British troops during the Waikato war. Briefly, their provisioning was one of the colony's main sources of income. Equally briefly, small mixed farms became profitable.

In the 1860s, while the European population of the North Island rose to 97 000, the South Island's European population increased to 159 000. Unequal growth brought political change in 1865, when the capital was moved south to Wellington and the South Island gained 13 additional parliamentary seats. Otago was transformed from an obscure Presbyterian outpost into the foremost commercial and industrial province, with a quarter of the colony's pakeha population producing one-third of its exports. Secondary industries, largest in Otago and Auckland, manufactured a wide range of products for local markets, and by 1871 about 10 000 people were employed in manufacturing. The larger towns now contained groups of artisans and labourers with some capacity for combined action. In Dunedin the unemployed demanded relief work as boom turned to slump in the late 1860s.

‘Vogelism’: immigration and public works

The Otago-based businessman and politician Julius Vogel became Colonial Treasurer in 1869, and dominated political life until his departure for London in 1876 as Agent-General (a post which combined diplomacy and business promotion). When he took office the income-generating British troops had almost all left and the colony had just survived the severe military crisis of 1868–69. Dependence on world commodity prices had proved to be a mixed blessing, since receipts for wool and gold exports had slumped. The average wool price had fallen to 11 pence per pound in 1870 from 16 pence in 1860. Faced with the prospect of a serious depression, Vogel persuaded his cabinet colleagues to approve a programme of public borrowing to finance growth. Twenty million pounds were borrowed in a decade, mostly from Britain. The role of the state grew; there were four times as many civil servants in 1877 (some 7200) than a decade earlier. A large publicly-owned infrastructure of transport, communication, and other services was established. The 234 kilometres of public railways in 1873 became 1840 kilometres by 1880. One-third of public expenditure in the decade to 1881 went on roads and bridges, which had more practical effect than railways in improving communications in most areas. Also. 6500 kilometres of telegraph lines were built in the 1870s (their construction had begun for military reasons in the previous decade). Expensive harbour projects were undertaken around the country, and there was a boom in residential, business, and public building. Government spending in 1872 was said to be 13 times that of Canada on a per capita basis.

The 1870s was a decade of large-scale emigration from Europe. Most migrants went to America, a significant fraction to Australasia. The arrival in New Zealand within nine years of 115 000 government-assisted immigrants contributed to the near-doubling of the non-Maori population to 490 000 in 1880. Organised communities of Scandinavian, English and Irish came out under special settlement schemes. The first group were prominent in the clearing of the ‘Great Bush’ which covered much of the southern half of the North Island. This unremitting toil, like that of the railway and road builders, laid the foundations for much future development. The immediate result of Vogel's policies, however, was a substantial enlargement of New Zealand society without any corresponding strengthening of the economy. The colony had become more rather than less dependent on Britain as a source of both capital and income. By 1881 more than 90 percent of export revenue came from the United Kingdom, whereas Australia had taken over half New Zealand's exports in the 1860s. Wool had regained the status of largest overseas earner from gold.

The development of a centralised colonial economy linked by modern communications had political implications. While the implementation of ‘Vogelism’ was much influenced by regional pressures, it transformed the balance of power between centre and provinces. Provincial governments, designed in part as agents of colonisation, were now proving superfluous in this role. In 1871 the central government took over sole responsibility for immigration and railway construction. Opposition to some of Vogel's policies by provincialists in the House led ultimately to the end of the provincial system in 1876, over the protests of wealthy Canterbury and Otago. A network of county councils now joined existing borough councils, road boards, and harbour boards as the units of local government. Regional education, hospital, and land boards soon followed.

The 1880s: stagnation and innovation

A credit squeeze in 1878–79 ushered in some 15 years of economic stagnation, during which export and import prices and wages all fell roughly in proportion. Burdened with the overseas debts incurred in the 1870s, New Zealand remained dependent on the ability of a depressed British working class to buy its primary products. The most promising development was the beginning of frozen meat exports with the voyage of the Dunedin to the United Kingdom in 1882. This trade grew slowly at first. While there were 21 freezing works in 1892, they were not working to capacity. By then, however, meat exports exceeded £1 million in value annually, second only to wool. Experimentation produced new breeds of ‘sheep, which provided good quality mutton as well as wool and were suited to the country's dryish pastures. In 1882 New Zealand's first dairy factory opened at Edendale in Southland. Exports of dairy produce also grew slowly, with banks reluctant to finance small farmers’ production of perishable butter and cheese. Mechanisation in processing was paralleled by technological innovations in farming itself. Horse-drawn reapers and binders began to replace men. Traction engines and mechanical threshing mills appeared in the 1880s, as a boom in wheat production saw exports peak at more than £1 million in 1883. Local manufacturers ingeniously adapted agricultural equipment to local needs. The introduction of shearing machines in the late 1880s further reduced the demand for rural labour.

Other products enjoyed fluctuating fortunes. Most important in Auckland ‘province’ (provincial identity long outlived the institutions themselves), timber processing became the country's largest manufacturing enterprise between 1875 and 1885. A substantial export trade in kauri timber was vulnerable to erratic prices, as was the ‘poor man's industry’ of extracting kauri-gum (resin) deposits. Coal was exported from Westland from the mid-1880s. Urban manufacturing continued to grow until about 1886, after which the availability of cheap imports brought a decade of decline. By 1886 the number of industrial workers, including those making handicrafts, had reached 39 000. Most industries were small concerns serving local needs. In 1891 one-third of factory employees produced clothing and textiles, while a fifth made building materials, and another fifth food, drink, and tobacco products. Local manufacturers received some protection in 1888, when the Atkinson ministry imposed a 20 percent tariff on imported goods which competed with locally-made products. Not for the last time, a conservative government proved willing to use the power of the state for economic ends. The low-cost, low-wage conditions under which New Zealand industry operated were highlighted by the report of the 1890 ‘Sweating Commission’, which revealed exploitation of women and children in industry. The failure of the 1890 Maritime Strike by seamen, watersiders, miners, and railwaymen emphasised the relative weakness of urban labour in a mainly rural, export-dependent economy.

Maori society to 1890

The wars of the 1860s had brought both unprecedented Maori unity and new divisions. Alliance with the pakeha had offered some tribes the opportunity to settle old scores. While some kupapa fought defensive actions on their own soil, others ranged across the North Island in a manner reminiscent of the large supra-tribal war parties of earlier in the century. Co-operation and resistance continued to be twin motifs of Maori response to the pakeha for several decades after overt warfare ended. On balance, it seems that in this period collaboration was the less successful means of preserving tribal autonomy.

Kupapa and ‘rebels’ both suffered from the land confiscations of the 1860s. Fertility and strategic location were more important considerations for the settler government than the owners' part in rebellion. The operations of the Native Land Court, established under the Native Lands Act 1865, which permitted the leasing or purchase of land from Maori named in the court's certificates of title, efficiently parted the Maori from much of their remaining land. From 1873, the court operated under a system that was even more clearly weighted in favour of Maori wishing to sell land. In the 1880s land in the King Country itself—where King movement supporters had continued to live in effective independence—began to come before the court, and this paved the way for its purchase. Construction of the Auckland-Wellington railway through Ngati Maniapoto territory symbolised the end of an autonomous Maori zone. By 1892 less than one-sixth of the country remained in Maori ownership, and a quarter of that was leased to Europeans. Most Maori-owned land was rugged and bush-clad. Maori were now only 7 percent of the population; epidemics had reduced their numbers to 42 000 by 1896. Living in poor conditions—many in insanitary, makeshift camps—they grew scarcely enough for their own needs and relied increasingly on public works and seasonal work on European farms.

Yet Maori society remained resilient and adaptable. This was a time of intense political activity, of large tribal and supra-tribal meetings held in splendid new meeting-houses, and of negotiations with pakeha politicians. ‘Loyal’ Maori had been rewarded with four seats in the House of Representatives in 1867 and Maori MPs became increasingly skilled advocates of Maori rights. Ngati Kahungunu kupapa leaders organised a Repudiation movement to challenge the Hawkes Bay land sales of the 1860s. Kepa te Rangihiwinui, who had been one of the pakeha's main military allies, led an anti-land-sales group in Wanganui in the 1880s. In Te Waipounamu, the prophet Te Maiharoa led a heke (migration) of Ngai Tahu, which peacefully reoccupied tribal land in the Waitaki valley for two years, until evicted by armed police in 1879. In Taranaki, land proclaimed confiscated was left in Maori hands for more than a decade before pakeha settlers sought to occupy it. Here Te Whiti o Rongomai and Tohu Kakahi, based at Parihaka, led a movement of passive resistance which attracted wide support, and was only subdued in 1881 by a massive show of military force. The two leaders and many of their followers were temporarily exiled to the South Island. Maori spiritual values remained strong. King Tawhiao's Tariao (‘morning star’) faith recognised guardian spirits and ancestors, and drew on the teachings of Te Ua. Te Kooti proved ultimately more significant as founder of the comprehensive and sophisticated Ringatu faith than as a warrior. The mission-trained Te Whiti claimed God's special protection for the Maori and preached predestination.

While Maori people now participated in the pakeha economy, they generally did so in family groups rather than as isolated individuals. The Maori remained separated from pakeha life by language and culture, as well as by geography. While there was no rigid segregation, they were still a distinct ethnic and social group. In the context of nineteenth-century European expansion world wide, this was no small achievement.

2.3 Development and depression: 1890–1935

The Liberals in power

Although 1890 came to be seen as a watershed year in New Zealand history, its significance was less apparent at the time. A general election resulted in a fragile majority for the loosely-organised team supporting Liberal leader John Ballance, who differed from Premier Harry Atkinson chiefly in proposing a graduated land tax which would encourage large landowners to reduce the size of their holdings and allow more small farmers on to the land. In Dunedin and Christchurch, increased awareness of political issues among wage-earners after the defeat of the Maritime Strike had electoral consequences, with the return of candidates sympathetic to labour. In rural electorates, by contrast, abstention from voting remained the most typical form of political activity. The abolition of plural voting had reduced the direct political power of those who owned property in several constituencies, but there was still a ‘country quota’ which gave rural voters 28 percent more strength than was justified by their share of the total population.

Ballance became assured of a viable majority in the House only after Atkinson alienated a number of members by stacking the Legislative Council with new appointees, in a bid to establish an unassailable majority there. The conservative ‘Continuous Ministry’ at last left office, leaving a legacy of constitutional controversy which did much to unify the Liberal alliance. Ballance now sought to make his own appointments to the upper house. After two years' argument the British Colonial Secretary instructed New Zealand's Governor to acquiesce. This ended the Governor's substantive role in politics. An Act set a seven-year term (as against tenure for life) for future legislative councillors and reduced the upper house to the effective status of a debating chamber. These events, together with the extension of the franchise to women in 1893—a result of the unwillingness of the new Liberal leader Richard John Seddon to alienate a powerful feminist-temperance alliance—gave New Zealand politics a markedly more democratic appearance.

Liberal legislation at first focused on land issues. The Land and Income Assessment Act 1891 imposed a modest, and modestly-graduated, tax on unimproved land values. This tax was a minimal imposition on prospering pastoralists, who sold up (when they did so) because rising land prices made it worthwhile. In 1892, Minister of Lands John McKenzie offered Crown lessees an optional 999-year lease without revaluation—this was freehold tenure in all but name. By 1907 more than 5000 Crown tenants had taken up some 1 million hectares under this tenure. These measures fostered Liberal support in the countryside, and in the 1893 election the party doubled its rural representation. Overall it now held 51 of the 74 European seats. The Advances to Settlers Act 1894 offered state loans to (non-Maori) settlers at reasonable interest rates. Its chief beneficiaries were not new ‘bush farmers’, but established farmers who could borrow to make improvements.

The success of these policies was much enhanced by a steady rise in export receipts after 1894. This income allowed the government to borrow for public works construction, land purchase, and loans to farmers, and enabled farmers to service their mortgages from increased earnings. By the end of the 1890s the full impact of refrigeration was bringing significant economic changes. In 1901 there were nearly 5000 dairy farmers, and by 1911—when they totalled one-third of all farmers—there were three times as many. The trend towards intensive farming was firmly established, as small-scale production became commercially viable. Before 1890 it took many sheep or a substantial herd of cattle to make a living; by 1900 a few hundred sheep or a handful of dairy cattle would suffice. Subsistence farming, widespread in the nineteenth century, now declined. Farming became a business, and increasingly a family business, as mechanisation brought a decline in the number of rural labourers. There were now three farm-produced export staples rather than one, although earnings from wool continued to be greater than those from meat or dairy products.

Townspeople profited from an expanding rural economy. Urban workers also benefited from legislation sponsored by the Liberals' first Minister of Labour, William Pember Reeves. The Factories Act 1894 provided for regular inspection of factories, closely regulated the conditions of employment of women and children, and restricted the working week in most industries to 48 hours. The Industrial Conciliation and Arbitration Act 1894 set up a mechanism for peacefully settling industrial disputes, and in the process elevated unions to equal status with employers in the bargaining process. Disputes not resolved by negotiation were to be settled by a central Arbitration Court, whose decisions were binding. Registration of unions was voluntary, and direct collective bargaining remained an option. But the collapse of unionism after 1890 made the new system appear attractive, and most unions sought the recognition offered. Union membership soared from some 8000 in 1896 to 57 000 in 1910. Reeves was not present to witness this growth of the labour movement. In 1896, unable to win support from his colleagues for a new round of radical legislation, he became Agent-General in London. His departure left urban wage-earners without an effective voice in the government, which was now dominated by the populist improvisation of Seddon, McKenzie, and a latter-day Vogel, Colonial Treasurer Joseph Ward.

Growth of the public sector. The Liberals created 12 new government departments, of which two were particularly notable. The Labour Department, initially set up in 1891 as the Bureau of Industries, was envisaged by its first Secretary, Edward Tregear, as a ‘benevolent bureaucracy’ which would act as a buffer between capital and labour. His staff, who numbered 83 full-timers and many part-time inspectors by 1908, administered Reeves' legacy. The Department of Agriculture, also created in 1891, increasingly assumed important regulatory functions. Systematic grading and branding of export produce was carried out at major ports. Farm inspectors ensured hygienic milking and milk storage, and campaigns against pests and stock diseases were stepped up. The Journal of Agriculture was founded in 1910. In 1893 the government took over direct control of the railway system, and set about expanding it. The country had 3200 kilometres of line by 1896 and 4800 kilometres by 1914. The North Island main trunk line was completed in 1908. Railways opened up whole areas for settlement—notably the hinterland of Auckland ‘province’—by making practicable the movement of supplies and farm produce. Provision of railways and roads remained of vital importance in local and national politics, and not only for economic reasons. Improved communications did much to reduce the demoralising isolation of backblocks living.

Other government functions also expanded. In 1903 the state asserted its control of all future hydro-electric power generation, and in 1911 the first large power station was completed at Lake Coleridge in Canterbury. Old-age pensions were introduced in 1898 to assist the growing numbers of destitute elderly people. As immigration grew relatively less important and family size also fell—women who married in 1880 averaged 6.5 live births, compared with 2.4 for those who married in 1923—the proportion of the aged in the population grew. Young people also benefited from the government's increased social role. The 1877 Education Act had set up a colony-wide system of primary education, through which four-fifths of the country's five to 15-year-olds were receiving instruction by 1891. After George Hogben became administrative head of the Education Department in 1899 the primary school service was much improved, the secondary system expanded, and technical education introduced. Activity in all these areas (and in others, such as health) required many more civil servants. In the past, government ministers had made most appointments, and controlled much of the day-to-day administration of ‘their’ departments. This became impractical as the functions of the bureaucracy grew more specialised. From 1912 appointment on merit, job classification, and standardised procedures were the norm. As in other western economies at this time, private bureaucracies were also growing, and wage and salary earners made up an increasing proportion of the work-force.

The rise of Reform

By 1900 the Liberal Party had a mass organisation as well as strong leadership. The Liberal-Labour Federation united regional associations through a national council and annual conferences. For the first time ordinary' people could become members of a political party. But, while the Liberals remained dominant in Parliament after Ward became Prime Minister on Seddon's death in 1906, social and economic forces gradually split the alliance between urban wage-earners and small-to-middling farmers which sustained them in power. As they became more established, small dairy and mixed farmers grew more critical of the government which had in many cases given them their start on the land. Demand for the freehold became a rallying cry. Free trade, unrestricted access to Maori land, and freedom from government regulation and from the spectre of socialist trade unionism, were other demands. The New Zealand Farmers' Union, launched in 1899, spread especially rapidly in newly-opened North Island districts. Its leadership soon comprised established as well as struggling farmers, and increasingly it supported the new Reform Party, led by William Ferguson Massey, which also gained the backing of protection-dependent urban businessmen after dropping free trade as party policy.

Meanwhile, urban workers grew disenchanted with the government as their share of the country's growing prosperity diminished after 1900. Real wages fell as the Arbitration Court delivered more miserly and belated award increases. In addition, up to 10 percent of the work-force continued to be intermittently or seasonally unemployed. Although this was much less than the one-third comparably affected in Edwardian England, rising national income was clearly being distributed unequally. Both the arbitration system and the political member unions to refuse arbitration and take direct action to achieve radical goals. Many leading militants had come from Australia, where an Irish-dominated working-class culture had developed nationalist, anti-British characteristics. In the decades around 1900 there was much movement of labour between New Zealand and Australia as economic conditions fluctuated. Many sheep-shearing gangs followed a regular seasonal route through both countries. A few socialists came from the United States, where revolutionary organisations like the Industrial Workers of the World preached the overthrow of capitalism through the unification of worker's into ‘one big union’ with the strength to confront the state.

Class conflict and world war

Losing support at both ends of the political spectrum, the Liberals failed to gain a clear majority in the 1911 election, and in 1912 enough MPs crossed the floor of the House to bring down the government. Massey now led a Reform Party government which in effect offered a more efficient administration of the Liberals' heritage. He moved first to defeat the challenge from the left. A 1912 dispute at the Waihi goldmine, over whether workers should accept arbitration under the 1894 Act, eventually ended in police-backed violence. In 1913 a ‘lock-out’ on the Wellington waterfront led to a general strike by watersiders, seamen, and coalminers. This was defeated after thousands of middle-class and farmer ‘special constables’, supporting the regular police and sustained by logistical backing from the military, fought with unionists on the streets of Auckland and Wellington. Clearly unable to overthrow the government by direct action, the militants turned to more conventional politics. A total of six ‘Social Democrat’ and Labour MPs were elected in 1914, and in 1916 a Labour Party was formed. If any one cause united Labour supporters behind their new party, it was opposition to military conscription, which was introduced in 1916 as New Zealand troops began to suffer the torments of the Western Front. The ‘Great War’ also marked the development of a sense of national identity in many New Zealanders. Since 1870, when dissatisfaction with Imperial troop withdrawals and declining prices on London markets had led to talk of secession and alliance with the United States, pakeha New Zealanders had taken for granted a position of loyal subordination within the British Empire. Remoteness from its centre was offset by the guarantee of security provided by the Royal Nan', and the facts of economic dependence. Throughout the period from 1875 until World War II, roughly 80 percent of New Zealand's exports were sold to the United Kingdom, and at least half its imports came from that country. Failure to join the Australian federation (created in 1901) was in large part an acknowledgment that New Zealand's most vital interests lay elsewhere. The ‘colony’ was officially renamed a ‘dominion’ in 1907, but this was seen as recognition of autonomy rather than full nationhood.

Wartime support for Britain modified attitudes of dependence. The 6500 volunteers who went to the South African War (1899–1902) saw themselves as superior mentally and physically to their British regular-force counterparts. The experience of World War I—103 000 New Zealanders served abroad, and some 18 000 died, out of a total population of little more than a million—reinforced claims of military excellence. These were enhanced by the heroic assault on Chunuk Bair in August 1915, during the Gallipoli campaign; achievements at Passchendaele in October 1917; and the role of the New Zealand Division in helping stop the great German advance in the spring of 1918. Although Massey claimed (unconvincingly) that in signing the Treaty of Versailles he did not act as the agent of a sovereign state, many New Zealanders felt they had earned statehood. The country was now a minor colonial power in its own right, having annexed the Cook Islands in 1901 and bloodlessly conquered German Samoa in August 1914. Prowess at the ‘national sport’ of rugby football had also become a source of (mostly male) patriotic pride after an all-but-undefeated tour of the British Isles by a representative team in 1905–6.

Uncertainty and depression

War had widened domestic divisions. While farmers profited from the commandeer system, under which the British government guaranteed purchase of New Zealand's main exports, the cost of living rose in towns and cities, and by 1919 real wages were lower than at any time since the turn of the century. The Protestant Political Association, which claimed to have 200 000 members in 1919, vigorously opposed ‘Rum’, ‘Romanism’ (i.e., Roman Catholicism) and ‘Rebellion’ (i.e., the Labour Party). Massey won his first decisive electoral victory in 1919. Reform now had 46 seats to the Liberals' 20 and Labour's eight. But the government had won only 36 percent of the vote, and Labour's share had reached 24 percent. Throughout the 1920s the existence of a three-party system was to lead to much greater fluctuations in seats won than in voting patterns.

Political instability reflected economic uncertainty. Soldiers had returned to promises of a ‘land fit for heroes to live in’—the state would put them on farms, or at least provide loans for this purpose. But government resettlement policies further fuelled a rise in land values initially sparked by wartime guarantees of markets. Between 1915 and 1925 some 40 percent of occupied land changed ownership, much of it for a great deal more than it was worth. Rural prosperity ended abruptly in 1921–22, when export prices fell sharply. In response, the government legislated. The Meat Export Control Act 1922 established a board to handle beef and mutton exports, and a 1923 Act regulated dairy exporting. Massey's successor as Reform Party leader and Prime Minister, J. Gordon Coates, was responsible for the Rural Advances Act 1926, which created a new section of the State Advances Department to grant rural first-mortgage loans, and also for the Rural Intermediate Credit Act 1927. Coates' government implemented a substantial public works programme, building hydro-electric power stations, railways, and roads. It also introduced a child allowance in 1926. Once again, a purportedly conservative administration was expanding the state's economic role.

Urban wage-earners, whose incomes were cut during the 1921–22 slump, looked to Labour to protect their interests. Labour now had to modify its radicalism to expand its appeal. It could not hope to govern without rural votes, which were denied Labour so long as they were seen as advocates of land nationalisation. Meanwhile, dissatisfaction with Coates' leadership grew among businessmen who resented his promotion of state activity, and farmers who had looked to him to break the bitter cycle of falling returns, fixed mortgage repayments, and increasing costs. The temporary beneficiaries of this disillusionment were the Liberals, who (renamed United and again led by the now ageing and ailing Ward) won more seats than either of their rivals in the 1928 election by opting for the old policy of borrowing for development. But, as export prices plummeted, depression deepened and borrowing proved impracticable. In 1930 United and Reform formed a coalition which comfortably won the 1931 election. This government moved to assist farmers through a 25 percent devaluation of the currency, a series of mortgage adjustment Acts, and lowered freight and interest rates. These measures did little to reduce growing support for radical monetary reform, which was advocated by the Douglas Credit movement and influenced Labour policy.

Giving priority to defending farmers' incomes worsened conditions in the cities. Most wages and salaries were cut by 10 percent in both 1931 and 1932. Such savage deflation in an already contracting economy led to an eighth of the work-force being unemployed by 1933. Government determination that the jobless should earn the meagre relief provided under the 1930 Unemployment Act (which levied a special tax on all males aged over 20) resulted in labour-intensive make-work projects and the establishment of spartan camps for single men in isolated areas. Sporadic outbreaks of violent protest in the main cities in 1932 were blamed by Prime Minister George Forbes on a ‘lawless minority’ and Communist agitation. His response was the Public Safety Conservation Act, which empowered the government to proclaim a national emergency and assume Draconian powers when public order was thought to be endangered. ‘Disloyal’ public servants, including those who protested against wage cuts, could now be dismissed under the Finance Act 1932. Resentment of the government became widespread.

Other social and economic developments. New Zealand's non-Maori population grew from 625 000 in 1891 to almost 1.5 million in 1936. This increase was uninterrupted, but slowed markedly in the 1930s as hard times led to fewer births and a net outflow of migrants. Until then immigration was continuous—there was a net inflow of some 200 000 between 1901 and 1928—but immigrants were a steadily diminishing proportion of the population. For this reason, and also because there was an even balance of the sexes among immigrants in later decades, the proportion of women to men increased. At the height of the gold rushes in the 1860s there had been only five pakeha women in the colony for every eight men. The ratio had reached nine to ten by 1901, and 97 to 100 by 1936. As unmarried men grew relatively fewer, some of the characteristic problems of frontier societies—such as alcoholism, crime, and loneliness—became less prevalent. The transience (enforced by the ephemeral nature of much employment) which had seen a majority of income-earners changing localities several times each decade also gradually diminished. The rural frontier moved forward more slowly, and in the 1930s contracted as many marginal back-country farms were abandoned.

There was a gradual but persistent movement of population from rural to urban areas, although this was arrested in the 1930s by the growth of public works camps. In 1896, 29 percent of the non-Maori population lived in towns of more than 8000 people; by 1936 the figure was 49 percent. The opening-up of the North Island's farming hinterland before World War I, and industrial development between the wars, saw its share of the population rise from half in 1900 to 65 percent in 1936. Non-Maori people were nearly all of northern European origin. Gold had attracted 5000 Chinese migrants by 1874, but discrimination and restrictions on immigration saw their numbers fall to little more than 2000 by 1916. About the same number of people of Yugoslav birth were living in New Zealand in 1911—most in the North Auckland peninsula. By 1936 some 1200 Indians were resident in the country.

Mechanisation brought substantial productivity increases in the primary sector, whose share of the total work-force fell from 42 percent in 1896 to 30 percent in 1926. Some primary industries declined in absolute terms, not merely relatively, as resources were concentrated on the three major export products. Kauri-gum production fell from a 1903 peak, the flax industry declined in the 1930s after fluctuating wildly, and gold and timber had ceased to be significant exports by 1914. Coal mining, which had expanded chiefly to provide fuel for the growing railway system, stagnated as railway construction slowed down. Urbanisation was paralleled by the growth and diversification of secondary industries. By the 1920s manufacturing's share of the gross domestic product was only slightly less than that in Australia and the United States, despite New Zealand's relative lack of protective barriers. Industry was typically small-scale, mixed, and unsophisticated, and processed imported components. In the 1920s motor-vehicle assembly and metalworking expanded significantly. By 1926 some 45 percent of the work-force were employed in the tertiary sector (providing services and doing ‘white-collar’ work). New Zealand had become a predominantly urban, yet farming-dependent, nation. It remained Britain's outlying farm as it developed many of the social and demographic characteristics of an industrialised society.

Maori society 1890–1935

Even after 1890, Maori resistance to pakeha dominance was occasionally physical. In 1895 Urewera Maori obstructed a survey until overawed by a military party. In 1898, 120 men of the regular army confronted followers of the Hokianga tohunga Hone Toia. Serious bloodshed in this ‘Dog Tax War’ was averted only by the timely intervention of the MP Hone Heke Rankin. In 1916 ‘the last shooting in the Anglo-Maori wars’ occurred when armed police fought a gun battle with followers of the Tuhoe leader Rua Kenana (founder of the Wairua Tapu religion), killing two of them. Increasingly, resistance took new forms. Petitioners sought the aid of the Crown in persuading the New Zealand government to honour the terms of the Treaty of Waitangi, which now gained a status among Maori which many had not granted it in 1840. The King movement set up its own parliament (Kauhanganui) under a constitution promulgated in 1894. More significant—even though pakeha legislators refused to acknowledge it—was the rival Kotahitanga parliament, promoted chiefly by kupapa leaders, which met annually from 1892 to 1902.

Expansion of the ‘native schools’ system in the 1870s (there were 57 by 1879) laid the basis for an influx of gifted students into church boarding-schools such as Te Aute and St Stephen's Colleges in succeeding decades. A group of former Te Aute students took the Irish-Maori MP James Carroll as their mentor (he held a general electorate from 1893 to 1919, having earlier represented Eastern Maori). They called themselves the Young Maori Party and advocated the wholesale adoption of pakeha culture. ‘There is no alternative but to become a pakeha’, said Maui Pomare, who had become the first Maori Health Officer in 1900. Pomare and his assistant Te Rangihiroa (Peter Buck), who was Director of Maori Hygiene from 1920, worked for improvements in sanitation and living conditions. The Maori population rose from 45 500 in 1901 to 57 000 in 1921, due to a decline in the frequency of epidemics, the gradual acquisition of immunity to them, and an increase of numbers in the child-bearing age group. Life expectancy rose from around 25 years in 1890 to 35 in 1905. But Maori health was still comparatively poor. The death rate in the influenza pandemic of 1918 was seven times that for Europeans.

Although Carroll was Minister of Native Affairs, the Liberals transferred 1.2 million hectares of Maori land to pakeha ownership. Reform alienated a further 1.4 million hectares. ‘Maori landowners, rather than the squattocracy, were vanquished by the state's promotion of closer settlement.’ Improvements in Maori farming came through communal initiatives. In the 1890s the Ngati Porou iwi, who retained much land on the East Coast of the North Island, embarked on large-scale pastoralism. By the mid-1920s they owned a million sheep, as well as a dairy factory, a finance company, and a co-operative store. Apirana Ngata (himself a Ngati Porou) as Native Minister sponsored a 1929 Act which channelled state credit to Maori farmers through the Department of Native Affairs. By 1937, the 750 000 acres being developed under this scheme were supporting about 18 000 people, most of whom lived in communities on or near the land they were working. Ngata, although, a member of the Young Maori Party, believed in fostering a communal rural lifestyle which continued Maori traditions.

While Maori in Parliament became skilful practitioners of taha pakeha (the European aspects of living), local leaders continued to have the most effective influence over Maori community life. None gained more stature than Te Puea Herangi, a member of the Waikato kahui ariki (paramount family), who came to prominence in the Kingitanga by leading a campaign against the conscription of Waikato Maori during the First World War. In 1921 she established a model pa at Ngaruawahia, and from the 1920s she was a figure of national importance for Maori. With her support. Ngata's land development schemes allowed Waikato communities to preserve their traditional way of life while productively occupying their own lands.

Gordon Coates was the first pakeha politician to provide leadership on Maori issues. As Minister of Native Affairs between 1921 and 1928 he was determined to ‘remove the old grievances so that economic and social change could proceed’. Among many initiatives, he established the Sim Commission to investigate the Waikato and Taranaki land confiscations (its findings largely upheld Maori grievances), and also the Maori Purposes Fund to make grants for educational, social, and cultural activities. With Ngata as Native Minister from 1928 to 1934 the momentum of reform continued. But the leadership of these two politicians began to be challenged by the spiritual leader Tahupotiki Wiremu Ratana, who was an advocate for the interests of the ‘morehu’—detribalised, non-chiefly common people—to whom he offered a vision of spiritual and material betterment. His teachings seemed increasingly attractive as the depression worsened. Maori are thought to have comprised some 40 percent of the jobless, and by 1933 three out of every four adult male Maori were registered as unemployed.

2.4 The mid-twentieth century

Labour's first term (1935–38)

The Labour Party won power in the 1935 election, when it gained a total of 59 seats (counting a few sympathetic independent MPs) compared to the 19 retained by the Coalition government's candidates. In 1938 it was re-elected, with an increased share of the vote and 53 seats to the new National Party's 25. These successes inaugurated a 14-year tenure of office which, like the Liberal era of the 1890s, was to establish new patterns and set the terms of economic and political debate for the next 40 years. Like the Liberals, Labour benefited by being elected as the economy recovered from depression. And, as with the Liberals, the administration of Labour's achievement was eventually to be taken over by its conservative opponents.

Labour won office because it was seen to represent a genuine alternative to the orthodox economic policies which had entailed hardship for too many. In addition, although export prices and the general economy were recovering in 1935, dairy produce receipts were still low. Discontented dairy' farmers, who approved Labour's promises of guaranteed prices and cheap credit, were decisive in turning the Coalition's defeat into a rout. Led by the former ‘Red Fed’ and Socialist Party militant Michael Joseph Savage, the Labour government moved to restore and direct the economy and introduce a comprehensive social welfare system.

Previous cuts in wages and conditions of employment were reversed, and the normal manufacturing working week was reduced to 40 hours. Pay rates for relief work were substantially increased. Unemployment fell to 38 000 in 1936, and continued economic growth combined with a large public works programme to leave only about 8000 on ‘sustenance and relief’ by December 1937. In 1936 full jurisdiction was restored to the Arbitration Court, and union membership was made compulsory' for all workers subject to awards. The number of unionists rose in consequence from 103 000 in 1935 to 249 000 in 1938. The Agricultural Workers Act 1936 set a minimum pay rate for previously unprotected rural labourers, and required the provision of decent living conditions for them. By buying out private shareholding in the Reserve Bank (created by Coates in 1933 to give the state some control over monetary policy), the government assumed conclusively the power to use the ‘people's credit’. Finance issued by the Reserve Bank underwrote housing construction, public works, and guaranteed prices for dairy products. Cheap mortgages from the revitalised, government-controlled State Advances Corporation helped efficient but indebted farmers remain on the land.

During Labour's 14 years in power some 30 000 ‘state houses’ (government-owned, privately-built rental dwellings) were constructed. State Advances mortgages financed a further 19 000 houses built for private ownership in the same period. The two schemes together gave government assistance to two in every five houses built. Spreading state house suburbs whose inhabitants shared similar lifestyles came to symbolise an egalitarian ‘levelling upwards’ in the quality of New Zealand life. Educational reforms included the lowering of the school-entry age from six to five. The primary-level Proficiency examination was abolished and, after the leaving age was raised to 15, was effectively replaced by the new School Certificate. These changes required much greater spending on school construction and teachers' salaries. The landmark Social Security Act of 1938 was intended not merely to provide a subsistence income but to meet the ‘normal needs’ of beneficiaries. Essentially free general medical care was introduced despite the bitter opposition of doctors, who, ironically, were to be the group who benefited most from the new ‘welfare state’. Social security and public admiration for Savage were major factors in Labour's 1938 electoral triumph, which was blighted only by the recapture of some rural seats by a more united parliamentary opposition.

War and rehabilitation

The government now looked forward to years of development, but was immediately reminded that New Zealand remained a small, dependent trading economy. Withdrawal of private capital combined with the expense of overseas-purchased machinery and supplies to reduce the country's sterling reserves from £29 million to £8 million in the six months before foreign exchange controls were introduced in December 1938. Minister of Finance Walter Nash won few concessions in months of negotiation with the British government and financiers. But bleak prospects were transformed by the outbreak of World War II. Britain rapidly agreed to bulk purchase arrangements at prices favourable to New Zealand for meat and dairy products, and later wool. Imports declined as European production was diverted to war purposes or made unobtainable by shipping difficulties. The exchange crisis was quickly succeeded by a healthy balance of payments surplus, which even allowed the repayment of some earlier loans.

As in World War I, the country's major contribution to the Allied effort was the provision of food, which went mostly to Britain and later to the Pacific theatre. While the war claimed some 12 000 New Zealand lives and saw 17 000 wounded, these were significantly lower casualties than World War I inflicted on a society of half a million fewer people. Nevertheless, some 150 000 were serving in the armed forces when they were at their peak, and civilians were mobilised in support of the war effort. Prices and wages were tightly controlled, and the labour force was subject to direction into essential occupations. Secondary industry, already stimulated by economic expansion, public works, and import licensing, was now boosted by the need for greater self-sufficiency. A ‘hot-house growth of manufacturing’ resulted as many small, previously marginal ventures secured a disciplined labour force and guaranteed markets. The strongest growth occurred in Auckland, which was the largest focus for the urbanisation which had resumed with the end of the Depression. With so many men in the armed forces, women entered the work-force in large numbers. The proportion of public service clerical workers who were female rose from 5 percent in 1939 to 25 percent in 1947. By 1945 nearly 15 percent of married women under 30 were in full-time employment, a percentage which was not to decline after the war ended. From national necessity, many women entered rural and industrial occupations previously assumed to be ‘men's work’.

As with perceptions of women's role in society, assumptions about New Zealand's place in the world were irrevocably altered by World War II. The Balfour Report of 1926 recognised that Britain's dominions were de facto independent stales. The Statute of Westminster of 1931 effectively relinquished the British parliament's power to make laws for the dominions. New Zealand was not to accept this formally until 1947. The Labour government, like its conservative predecessors, sought consultation with Britain rather than an independent foreign policy. In the late 1930s New Zealand's support for the League of Nations and collective security brought disagreement with the appeasement-minded British. In 1945 Prime Minister Peter Fraser was to be a leading advocate for the rights of the small nations represented in the new United Nations organisation. In the intervening years the limits of British power had been particularly brought home by the rapid capitulation to the Japanese in 1942 of the vaunted Singapore military base. The necessity of reliance on United States protection was underlined by the wartime presence of 100 000 American ‘GIs’ at New Zealand staging bases. Unlike Australia. New Zealand kept its best fighting troops in the Mediterranean theatre throughout the war. After participating in the unsuccessful defence of Greece and Crete in 1941, they endured the hardships of the North African desert and the slow, difficult advance through Italy. Although operating within the British command structure, New Zealand troops remained under New Zealand government control. The war also stimulated a redirection of New Zealand trade. New Zealand's exports to non-British markets doubled to about 40 percent of all its exports in the decade after 1941, and were never to return to the levels of the previous half-century.

While a multi-party War Cabinet made the major decisions, Labour's regular Cabinet continued its largely domestic business. Pragmatic politics counterpointed national sacrifice. The 1943 Servicemen's Settlement and Land Sales Act empowered the government to control prices in all land transactions, and to buy land suitable for subdivision. Farmers hoping to profit as before from a wartime rise in land values, and dissatisfied with the level of guaranteed prices, turned against the government. Despite its abolition of the country quota, Labour won a majority of only four seats in the 1946 election. In contrast with 1919, the reintegration of returning service personnel into the economy was impressively successful, backed as it was by full employment, enforced wartime savings, and guaranteed markets abroad. But the continuation of many wartime restrictions—symbolised by the 1948 Economic Stabilisation Act—was irksome. Maintaining supplies to impoverished Britain required continued rationing, electricity use was limited, and soaring marriage and birth rates outstripped house building.

National in office

The post-war National Party promised more efficient management of key Labour gains and greater personal freedom (such as the right of purchase for state house tenants). Led by Sidney Holland, National won the 1949 election. In 1951 it increased its majority in a rare snap election called to take advantage of the government's crushing termination of a major five-month-long industrial dispute which had been precipitated by a breakdown in relations between waterfront workers and their employers. The Labour Party, though clearly not laggards in their enthusiasm for the ‘Cold War’—they introduced peacetime compulsory military training in 1949—were outmanoeuvered by a government which consolidated its support around the popular themes of ‘law and order’, anti-communism, and curbing the unions. Labour's ambivalence towards the strikers reflected divisions within the union movement, inside which a militant Trade Union Congress had emerged in opposition to the cautious Federation of Labour.

National continued to present itself to the electorate as the party which would best defend the ‘national interest’ against divisive sectional concerns. Buoyed by continuing prosperity, it was interrupted in its self-described role as the ‘natural party of government’ only by the one-term Labour administrations of 1957–60 and 1972–75. Both these periods saw adverse alterations in New Zealand's terms of trade. Both Labour cabinets made changes too rapidly for the liking of an electorate more comfortable with the ‘steady-does-it’ approach epitomised by (later Sir) Keith Holyoake's term as Prime Minister in the 1960s. In that decade political life sometimes seemed to dimly reflect the American scene; New Zealand troops fought in Vietnam, New Zealand youth rebelled against their parents’ staidness and complacency, and the voices of New Zealand's indigenous inhabitants began to be heard by the wider society. Seen as more efficient at managing a mixed economy, the National Party retained power even in the troubled economic times between 1975 and 1984.

Economic and social modernisation

In the quarter-century after 1950, New Zealand for many at last lived up to Seddon's characterisation of it as ‘God's Own Country’. National wealth per head rose continuously, if at varying rates, until the ‘oil crisis’ of 1973 began a period of stagnation. Standards of living mirrored this ‘pervasive prosperity’. The proportion of houses owned rather than rented rose from 61 percent to 69 percent during the 1950s. Low-cost suburban bungalows of uniform style were furnished with a widening range of consumer durables. Electric stoves, refrigerators, and washing-machines, found in only about half of all houses in the 1940s, were nearly universal by the mid-1960s (as were radiograms and, eventually, television sets). New Zealanders had more choice in spending their increasing discretionary incomes. Although many men remained preoccupied with sport, home-centred leisure (gardening, reading, television watching) increased with suburbanisation. Car ownership and substantial expenditure on roading (secondary routes as well as showpiece motorways) brought unparalleled mobility to many. Passenger use of railways declined as air transport came to dominate long-distance personal travel.

The dream of creating a materialist Utopia in New Zealand was kept alive by the unprecedented continuation of full employment for 30 years after World War II, when for the first time there had been the possibility of a job for almost everyone who wanted one. More white-collar work balanced a continuing relative decline in rural employment. The proportion of the labour force employed in agriculture fell from about one-quarter in the mid-1930s to about one-eighth in the early 1970s, while farming productivity rose at about 1 percent annually, as all aspects of farm management became more sophisticated. Capital improvements compensated for a diminishing labour force; tractor numbers increased tenfold from 1938 to the 1970s, and aircraft were widely used to spread fertiliser. By 1972 the number of farms had fallen by nearly a third from the post-war peak of 92 000 reached in 1955. The number of dairy farmers declined particularly dramatically, from nearly 40 000 in 1950 to about 17 000 in 1976. This reflected changes in the relative profitability of different types of farming, as well as a general exodus from the ranks of the small farmer. Meanwhile, male blue-collar employment rose steadily, roughly in proportion to the overall growth of the labour force. By 1976 there were more than 400 000 blue-collar workers, 47 percent of the male work-force. Most rapid expansion came in white-collar employment, which occupied a quarter of working men in 1951, a third in 1971. The same proportions of all women aged over 15 were in paid employment in each of these years. In 1971, 62 percent of women in the labour force had white-collar jobs. Most of these jobs were in clerical occupations. In contrast, the major occupations for women at the beginning of the century had been domestic service, and tailoring and dressmaking. But despite the fact that the female occupational structure had changed, women still continued to work in jobs performed mostly by women.

The goal of ‘being one's own boss’ became less attainable; between 1951 and 1971 small proprietors fell from one-fifth to an eighth of the work-force. Small business operators, like small farmers, felt themselves vulnerable to growing pressure from larger rivals and increasing regulation. The resentments of these two groups were reflected in the support they gave the Social Credit party in the 1960s and 1970s (although this was too geographically diffuse for the party to gain more than token parliamentary representation). By the early 1970s about 40 percent of the work-force belonged to bureaucracies—organisations with specialised jobs structured in a hierarchy, and governed by formal rules and regulations. The public sector, with about 250 000 employees, had grown by 100 000 in 20 years although, contrary to widespread popular belief, it had not increased its share of the work-force or of national resources. Private bureaucracies now employed some 200 000 people. The growth of both sectors was closely linked to the expansion of post-primary education. Between 1945 and 1970 spending on education rose from 6 percent to 14 percent of government expenditure, and the number of secondary school students more than trebled. By 1971 one person in every three participated directly in the education system, as full-time student, teacher or administrator. Seven-eighths of all pupils attended state-run schools. Public education, like the state's housing policy, was based on an ethos which emphasised equality of access, social integration, and cultural uniformity. University students doubled in numbers in the 1960s, becoming 10 percent of the school-leaving age-group by the end of the decade.

The pakeha birth rate had fallen steadily from the 1880s to the mid-1930s, prompting fears of a near-stationary population, This at last came to pass in the late 1970s, but only after a period of unprecedented growth, from 1.7 million in 1945 to more than 3 million. One-third of the increase was due to immigration, at first from war-ravaged Europe, later from the Pacific Islands. Both Western Samoa and the Cook Islands gained effective independence in the 1960s, but their citizens retained rights of entry to New Zealand. By 1976, 61 000 Pacific Island Polynesians lived in New Zealand. The bulk of the population growth, however, came from natural increase—the postwar ‘baby boom’, which lasted until use of effective contraception became more widespread during the 1960s. By 1961 a third of New Zealanders were aged under 15. This generation put stress on the education system and then on the job market, and seemed likely to overload superannuation schemes and health resources as it aged. Other demographic trends were continued movements from country to town and from south to north. By 1976 only one-sixth of New Zealanders lived outside urban areas. In that year 73 percent of the population lived in the North Island. The Auckland conurbation alone had a quarter of the country's people and a third of those employed in manufacturing. Whereas the greatest number of Vogel-period immigrants had settled in Canterbury and Otago, the latest wave of European migrants went disproportionately to the cities of Auckland and Wellington, as did newly-arriving Pacific Islanders and Maori leaving rural areas.

Self-reliance and self-doubt

New Zealand's modernising society became more complex, more distinctive, and less self-confident as a Maori cultural renaissance began to affect the cities, more than a century of migration from Europe diminished to a trickle, and the country finally lost its secure place as Britain's offshore farm. In the 1970s greatly-increased oil prices, and the global economy's inability to distribute the world's food production effectively, led to an apparently irreversible decline in the terms of New Zealand's trade with the outside world. Primary products—wood-pulp and paper as well as wool, meat, and dairy produce—continued to be export staples, but their share of total exports fell to 60 percent by 1975. In that year Britain (which had cut the symbolic umbilical cord by joining the protectionist European Economic Community) took only one-fifth of New Zealand's exports, and the country's four major markets (the others were Australia, the United States, and Japan) only three-fifths between them. An increasing variety of agricultural and manufactured products were sold in a growing range of markets. Primary produce sales were increasingly handled by centralised producer boards. The main focus of secondary industry was still the further processing of imported goods for local markets. Although import licensing was said to shelter inefficient industries, the average level of protection was not high by world standards. Nor is it clear that New Zealand output or standards of living have lagged nearly as far behind other developed countries as figures based on exchange-rate comparisons suggest. At worst, the country's economic performance has been an average one.

Much the same could be said in social terms. In New Zealand many features of western social change have been experienced on a smaller scale. These have included the rise of youth culture (as both a new form of consumerism and a serious attempt to transform styles of living), the revitalisation of ethnic minorities, and the assertion by women of their right to participate fully in all aspects of economic and social life. Equal pay for equal work became a legal requirement in 1972, showing the extent of change since 1936, when the first minimum-wage legislation had set the female minimum rate at 47 percent of the male. But women remained over-represented in low-status occupations, and the twentieth-century idealisation of motherhood continued to be a potent source of guilt for mothers who, from necessity, took paid employment. As age, ethnic, and gender distinctions came to matter more, class divisions grew more subtle and apparently less important. Although extremes of wealth and poverty were rare, equality of income and status had been brought no closer by decades of formal equality of access to society's resources. And social consensus as to the desirability of relative equality and social security was being eroded by harsh economic realities and the diversification of individual aspirations.

Maori society after 1935

The state of Maori health still caused concern in the 1930s. In 1938 the Maori death rate was 24 per 1000, compared with 10 for pakeha, and the infant mortality rate was 153 for each 1000 live births, as against 37 for non-Maori. In 1940, 36 percent of Maori people were said to live in houses unfit for habitation by minimum pakeha standards. Funding by the first Labour government of the Native Housing Act 1935 resulted in the construction of some 3000 houses by 1951. More systematic efforts to improve Maori health saw experts such as H. B. Turbott combine with community leaders like Te Puea to introduce ‘health programmes. Effective control of diseases such as tuberculosis and typhoid, and falling infant mortality, led to a rise in Maori life expectancy from 46 years in 1925 to 58 in 1956. These factors, and a continuing high birth rate, saw the Maori population double in 30 years to reach 116 000 in 1951. In that year 57 percent of Maori people were aged under 21, compared with 35 percent of non-Maori. In 1955 the Maori birth rate was 44 per 1000, as against 25 for non-Maori. By 1966 half of all Maori were aged under 15. Continuing high fertility and improved health saw the Maori population reach 270 000 in 1976. Maori now comprised 9 percent of all New Zealanders.

Movement of Maori to the cities began during World War II, when manpower regulations and the work of the Maori War Effort Organisation opened up a variety of urban employment opportunities. In any case, fanning could not have sustained the rapid increase in numbers. Eleven percent of Maori people had lived in urban areas in 1936. Forty years later, three-quarters of the Maori people were urbanised, and a fifth lived in Auckland, the Maori population of which doubled during the 1960s. Migration to the cities meant improved housing conditions, but most Maori could not afford to live outside areas offering low-cost accommodation. Urbanisation was reflected in employment data. While 40 percent of male Maori had worked in agriculture, forestry and fisheries in 1951, only 16 percent did so by 1971. The respective figures for blue-collar employment were 52 percent and 70 percent. Over the same period, the proportion of Maori women in service occupations fell from 42 percent to 23 percent, while the percentage in blue-collar work rose from 24 percent to 36 percent. By the late 1960s, Maori and Pacific Islanders in Auckland and Wellington formed a ‘new under-class’, most holding poorly-paid jobs which offered little security or prospects for advancement.

Maori education benefited from the first Labour government's introduction of free secondary education and a school-leaving age of 15. By 1953, while special Maori schools (directly administered by the Department of Education) were still numerous, 60 percent of Maori children attended ordinary state primary schools. By 1960 most Maori children went on to secondary school; but they did so on average at a later age, and left earlier with fewer qualifications than pakeha children. In 1960, 5 percent of Maori pupils gained School Certificate, compared with 30 percent of non-Maori of the same age. The state school system was still almost entirely monocultural. Educational under-achievement was both a cause and an effect of low occupational status.

From 1943, with the defeat of Apirana Ngata, the Ratana-Labour alliance held all four Maori parliamentary seats. Much of the discrimination against Maori workers was removed by the first Labour government, and Maori shared in the general expansion of economic activity and in social security provisions. The Maori Social and Economic Advancement Act 1945 set up tribal committees and executives concerned especially with welfare and marae administration. In 1947 the word ‘Maori’ replaced ‘Native’ in all official usage, an acknowledgment that Polynesian New Zealanders now more than before saw themselves as one people. National organisations such as the Maori Women's Welfare League (formed in 1951) and the Maori Council (established in 1962) helped strengthen the authority of a postwar generation of leaders. Many had served with distinction in the Maori Battalion in North Africa and Italy, or in essential industries. Returning servicemen were able to demand equality with more success than had their counterparts in the World War I Pioneer Battalion, who had received no rehabilitation assistance. Maori sporting ability (demonstrated particularly in rugby union and league) also earned respect from the wider community.

In the 1940s Ngata spoke of the need for a ‘continuous attempt to interpret the Maori point of view to the pakeha in power’. Te Puea argued that ‘unity of Maori and Pakeha can only grow from each sharing the worthwhile elements in the other's culture’. As urbanisation brought the two races together, discrimination and the lack of equal opportunity grew more visible. Maori were told they must adapt to the pakeha way of life; there was no equivalent pressure on pakeha. From the late 1960s groups such as Nga Tamatoa (‘the young warriors’) challenged the continuing loss of land, declining use of the Maori language, and what came to be called ‘institutional racism’ in pakeha-dominated society. A cultural resurgence which emphasised tribal identity, traditions, and protocol developed in parallel with a drive to establish urban marae. Under the third Labour government, multiculturalism replaced integration as official policy. Maoritanga (the experience and expression of Maoriness) had an officially recognised place in the future of Aotearoa.

2.5 Chronology of main events

c 1000 Arrival of first Polynesian settlers in Aotearoa.

1642 European discovery by Abel Tasman.

1769 James Cook's first visit to New Zealand.

c 1790 First severe epidemic among Maori population.

1792 First sealing gang left on New Zealand coast at Dusky Sound.

1806 First pakeha women arrive in New Zealand.

1814 Arrival of Rev, Samuel Marsden, and establishment of Anglican mission station.

1820 Hongi's visit to England.

1826 Attempt at European settlement under Captain Herd.

1831 Tory Channel whaling station established.

1833 James Busby appointed British Resident at Bay of Islands.

1839 Governor of New South Wales authorised to annex New Zealand. Preliminary expedition of New Zealand Company under Colonel Wakefield to Port Nicholson.

1840 Arrival of New Zealand Company's settlers at Port Nicholson. New Zealand annexed, Captain Hobson arrives as Lieutenant-Governor, and Treaty of Waitangi signed. Settlements formed in the Far North, and at Akaroa.

1841 New Zealand proclaimed independent of New South Wales. Arrival of New Plymouth and Wanganui settlers.

1842 Settlement founded at Nelson.

1843 Affray at Wairau.

1845 ‘Northern War’.

1846 Fighting near Wellington. New Zealand divided into two provinces. New Munster and New Ulster. Exploration of West Coast by Thomas Brunner party begins.

1848 Otago settlement founded.

1850 Canterbury settlement founded.

1852 Constitution Act passed by Imperial Parliament, granting representative institutions to New Zealand, and dividing country into six provinces.

1854 Opening at Auckland of first session of General Assembly.

1855 First members elected to the House of Representatives under system of responsible government. Severe earthquake on both sides of Cook Strait.

1856 Appointment of first ministry under system of responsible government.

1858 Te Wherowhero (Potatau) becomes Maori King.

1860 ‘Taranaki War’.

1861 Bank of New Zealand incorporated. Gold discovery at Gabriel's Gully, Otago.

1862 First electric telegraph line opened—Christchurch to Lyttelton.

1863 Commencement of ‘Waikato War’, Wreck of HMS Orpheus on Manukau Bar. First steam railway in New Zealand opened.

1864 Hostilities in Waikato end. Discovery of gold on West Coast.

1865 Seat of Government transferred to Wellington.

1866 Cook Strait submarine telegraph cable laid.

1867 Opening of Thames gold-field. Lyttelton railway tunnel completed. Four Maori seats provided in House of Representatives. Armed Constabulary established.

1868 Campaigns of Titokowaru and Te Kooti.

1869 Government Life Insurance Office founded.

1870 Last pitched battles of ‘New Zealand Wars’. First rugby match in New Zealand. Commencement of San Francisco mail service. Inauguration of Vogel public works policy.

1873 Establishment of New Zealand Shipping Co.

1876 New Zealand-Australia cable. Provinces abolished.

1877 Education Act passed, providing for free, compulsory education.

1878 Completion of the Christchurch-Invercargill railway.

1879 Triennial Parliaments Act passed. Universal male suffrage introduced. Kaitangata coal mine explosion. Annual property tax introduced.

1881 Parihaka community forcibly broken up. Wreck of s.s. Tarawa.

1882 First shipment of frozen meat from New Zealand.

1883 Direct steamer link established between New Zealand and Britain.

1884 Construction of King Country section of North Island main trunk railway begins.

1886 Tarawera eruption and destruction of Pink and White Terraces.

1887 First national park created.

1888 Birth of writer Katherine Mansfield.

1889 Abolition of non-residential or property qualification to vote.

1890 Great maritime strike. First election on one-man-one-vote basis; Liberal government elected.

1891 Land and Income Assessment Act passed.

1892 Land for Settlements Act passed.

1893 Franchise extended to women. Liquor licensing poll introduced. Elizabeth Yates elected Mayor of Onehunga.

1894 Industrial Conciliation and Arbitration Act passed. Government Advances to Settlers Act passed. Wreck of s.s. Wairarapa. First ascent of Mt Cook/Aoraki.

1896 Brunner Mine explosion. National Council of Women founded.

1898 Old-age Pensions Act passed.

1899 New Zealand army contingent sent to South African War.

1901 Cook and other Pacific Islands annexed.

1902 Pacific cable opened. Wreck of s.s. Elingamite.

1903 Richard Pearse achieves semi-controlled flight near Timaru.

1905 State Insurance Office founded.

1906 Death of Premier Seddon.

1907 New Zealand given name of Dominion.

1908 North Island main trunk railway opened. Ernest Rutherford awarded Nobel Prize in Chemistry.

1909 S.s. Penguin wrecked in Cock Strait, with loss of 75 lives. Battle cruiser presented by New Zealand to Imperial Government. System of compulsory military training introduced.

1911 Wireless telegraphy installed in New Zealand. Widows' Pensions Act passed. First poll on national prohibition taken.

1912 Civil service placed under control of Public Service Commissioner. Waihi strike. Reform ministry formed.

1913 Extensive strikes with confrontations in Auckland and Wellington.

1914 World War I begins. German Samoa occupied. New Zealand Expeditionary Force despatched.

1915 Gallipoli campaign.

1916 New Zealand Division transferred to Western Front. Battle of the Somme. Conscription introduced. Lake Coleridge electricity supply scheme opened.

1917 Battle of Passchendaele.

1918 End of World War I. Great influenza epidemic kills 6700 New Zealanders.

1919 Women eligible for Parliament. New Zealand represented at Peace Conference by Prime Minister.

1920 First aeroplane flight across Cook Strait. League of Nations mandate to administer Western moa.

1921 New Zealand Division of Royal Navy established.

1922 Meat export trade placed under control of a board.

1923 Death of writer Katherine Mansfield. Opening of Otira Tunnel. Ross Dependency proclaimed. Dairy Produce Export Control Act passed.

1924 Direct radio communication with England.

1925 Death of Prime Minister Massey.

1926 Department of Scientific and Industrial Research founded.

1928 First flight across Tasman Sea. United government elected.

1929 Severe earthquake in Murchison-Karamea district

1930 Legislation provides for relief of unemployment.

1931 Hawkes Bay earthquake. General reduction of 10 percent in wages and salaries. Mortgagors' relief legislation passed.

1932 Reductions in old-age and other pensions, in salaries of state employees, and in rentals, interest rates and other fixed charges. Sporadic rioting in main centres. Ottawa Conference.

1933 Elizabeth McCombs becomes first woman M.P.

1934 First trans-Tasman airmail. Reserve Bank incorporated.

1935 First Labour government elected.

1936 Inauguration of inter-island trunk air services. Reserve Bank nationalised. System of basic prices for butter and cheese introduced. 40-hour week introduced.

1937 Royal New Zealand Air Force established.

1938 Social Security Act passed. Introduction of import control.

1939 Second World War begins. HMS Achilles takes part in Battle of the River Plate.

1940 Death of Prime Minister Savage. 2nd NZEF despatched.

1941 War with Japan begins.

1942 Complete mobilisation. Rationing introduced. Mobilisation of women for essential work. Battle of El Alamein.

1943 New Zealand Division serves in Italy.

1945 War in Europe ends (8 May). War in Pacific ends (15 August). National Airways Corporation founded.

1946 Family benefit of £1 per week made universal as from 1 April. Bank of New Zealand nationalised.

1947 Statute of Westminster adopted by New Zealand Parliament.

1949 Referendum agrees to compulsory military training. National government elected.

1950 Legislative Council Abolition Act passed. Naval and ground forces sent to Korean War. Wool boom.

1951 Prolonged waterfront dispute. United Slates, Australia, and New Zealand sign ANZUS Treaty. Maori Women's Welfare League established.

1953 Railway disaster at Tangiwai. First tour by reigning monarch.

1954 New Zealand signs South-east Asia Collective Defence Treaty.

1955 Pulp and paper mill at Kawerau opened. Rimutaka rail tunnel opened.

1956 Roxburgh and Whakamaru power stations in operation. New Zealand troops sent to Malaya.

1957 Scott Base established in Ross Dependency. Last hanging in New Zealand. Labour government elected.

1958 PAYE taxation introduced.

1959 Auckland Harbour Bridge opened. Antarctic Treaty signed.

1960 Regular television programmes began in Auckland. Government Service Equal Pay Act passed. National government elected.

1961 New Zealand joins International Monetary Fund.

1962 Cook Strait rail-ferry service commenced with Aramoana. Western Samoa becomes independent.

1964 Cook Strait power cables laid. Oil refinery opened at Whangarei.

1965 Limited free trade agreement negotiated with Australia. Cook Islands became self-governing, Combat force sent to Vietnam.

1966 National Library of New Zealand created.

1967 Decimal currency introduced. Referendum extends hotel hours.

1968 T.e.v. Wahine founders in Wellington Harbour.

1969 Vote extended to 20-year-olds.

1970 Natural gas from Kapuni supplied to Auckland.

1971 Negotiations by Britain with members of European Economic Community secure New Zealand's butter and cheese exports to the United Kingdom. Bluff aluminium smelter in commercial operation. Generators installed at Manapouri hydroelectric station. Metric conversion for weights and measures.

1972 Labour government elected.

1973 Britain joins European Economic Community. Colour television introduced. First step of Equal Pay Act in effect. First United Women's Convention.

1974 Death of Prime Minister Norman Kirk. Commonwealth Games, Christchurch.

1975 Waitangi Tribunal established. National government elected.

1976 Cuts in subsidies on electricity, rail charges, and Post Office charges. Subsidies on bread, eggs, butter, and flour abolished. New Zealand's sporting links with South Africa resulted in walk-out at Olympic Games in Montreal.

1977 National superannuation scheme begins. New Zealand signs Gleneagles agreement on sporting contacts with South Africa, 200-mile exclusive economic zone established.

1978 National government re-elected.

1979 First stage of Maui gasfield development completed. Severe landslip at Abbotsford. Air New Zealand crash on Mount Erebus.

1980 Expansion of Marsden Point oil refinery. New methanol plant and expansion of New Zealand Steel Ltd plant approved. Saturday retail trading legalised.

1981 Butter deal concluded with EEC. Controversial tour of New Zealand by South African rugby team. National government re-elected.

1982 Twelve-month wage, price, and rent freeze imposed. Kohanga reo (language nurseries) established to encourage revival of Maori.

1983 Signing of Closer Economic Relations Agreement with Australia. New Zealand's triple A international credit rating reduced by Standard and Poor's Corporation. Wage-price freeze extended until 1984. Phased deregulation of land transport begins.

1984 Price freeze lifted. The Labour Party wins snap General Election. Government devalues the New Zealand dollar by 20 percent and re-imposes price freeze. Economic summit conference. Maori summit conference. Budget introduces Family Care and tax surcharge on national superannuation, and lifts price freeze. Queen Street riot, Auckland. New Zealand ratifies the United Nations Convention on the Elimination of All Forms of Discrimination Against Women.

1985 United States request for visit by USS Buchanan declined. New Zealand dollar floated. University Entrance examinations abolished. Greenpeace protest vessel Rainbow Warrior bombed and sunk by French agents.

1986 Soviet cruise ship Mikhail Lermontov sinks in Marlborough Sounds. Property qualifications for voting in local body elections abolished. United Nations Secretary-General rules on sinking of the Rainbow Warrior. Homosexual Law Reform Bill passed. Notice given that School Certificate to be abolished and replaced with internal assessment within four years. (Oct) Goods and services tax (GST) comes into effect. (Nov) First visit by Pope.

1987 (Feb) Ansett Airlines begins services on New Zealand domestic routes. United States ends special arrangement that allowed New Zealand to buy military equipment at wholesale rates. (Mar) Flooding in Southland. Bay of Plenty earthquake causes widespread damage. New Zealand Forest Service abolished. (Apr) Soviet diplomat expelled. (May) Air New Zealand 747 hijacked at Nadi Airport. (Jun) Non-nuclear legislation becomes law. Commission of enquiry ordered into cervical cancer research programme at National Women's Hospital. First Budget surplus in 35 years announced. Court of Appeal ruling' that Maori land claims would not be affected by transfer of assets to new state-owned enterprises. (Jul) $1.5 billion modernisation programme for Navy announced. (Aug) First lotto draw. General Election returns Labour government. Council of Trade Unions formed. Sharemarket crash. (Nov) Australian Prime Minister Hawke visits. (Dec) New Zealand's first heart transplant performed. Waitangi Tribunal given power to decide which Crown land has Maori claimants. Economic package introduces, among other things, major lax reforms.

1988 (Feb) Oil strike at Kupe South field. Number of unemployed exceeds 100 000. (Mar) Public servants strike. Cyclone Bola strikes northern North Island. (Apr) State Sector Act became law. Report of task force on hospitals and related services released. Electricity Corporation pays $6.3 billion to government for assets. Broadcasting deregulation announced. (May) Oil industry deregulated. Floods at Greymouth. (Jun) Waitangi Tribunal reports on Muriwhenua Incorporation's claim to Northland fisheries. Australia-New Zealand free trade policy brought forward to July 1990. North Island main trunk railway electrification completed. (Jul) Import duty and excise cut. Budget announces further sales of state assets. (Aug) New Zealand sends 10 observers to UN peacekeeping force in Persian Gulf. (Sep) Floods in Greymouth. New Zealand wins 3 gold. 2 silver and 8 bronze medals at Seoul Olympics. (Oct) EC announces butter sales to Britain to be cut by 25 percent over four years. Fisheries quota package announced for Maori tribes. (Nov) Minister for State-owned Enterprises replaced. South Island affected by drought. System of youth and student support announced. (Dec) Government sells its interest in Motunui synthetic petrol plant and brokerage rights for Maui gas. Minister of Finance replaced. Terms of sale of Air New Zealand and Postbank announced.

1989 (Jan) Committee of inquiry recommends introduction of casinos. Equiticorp Group placed under statutory receivership. (Feb) Government indicates its intention to sell Bank of New Zealand. South Westland rain forest protected from logging. (Mar) Defence review released. Tax and excise changes announced. Shipping Corporation sale finalised. National superannuation and benefit adjustment changes announced. Establishment of Serious Fraud Office outlined. (Apr) Audit Office report criticises administration of Waitemata City. Prime Minister suggests New Zealand's withdrawal from Anzus Council. (May) New Labour Party launched. Reserve Bank Act sets bank's role as maintenance of price stability. First school board elections under Tomorrow's Schools' reforms. East coast drought forecast to affect exports. (Jun) GST rate increases to 12.5 percent. Government refuses entry to Soviet research ship. Police numbers cut. BNZ records country's worst corporate loss to date—$634 million, sale proceeds. Announcement that police recruiting and training to be deferred. (Jul) Government and Maori groups sign agreement over sale of state forests. Changes to national superannuation and other welfare measures announced in Budget. NZ Steel sold to BHP-led consortium. (Aug) Former finance minister, Roger Douglas returns to Cabinet. Prime Minister Lange resigns and is replaced by Geoffrey Palmer, with Helen Clarke, first women Deputy Prime Minister. First balance of payments surplus in 17 years announced. Rural Bank sold to Fletcher Challenge Ltd. (Sep) Anzac frigate deal reached. Increases in tertiary student fees announced. Fletcher Challenge Ltd records highest corporate profit to date—$653 million. (Oct) First elections under revised local government structure. Court of Appeal disallows sale of Coalcorp without safeguards and recompense to Tainui. DFC New Zealand Limited placed under statutory management, sees reaction to Japanese finance markets. (Nov) Review of police force released. Sale of State Insurance Office announced. Third television channel begins. (Dec) Sunday trading begins. Second Maui production platform approved.

Contributors

  • 2.1–2.4 Historical Branch, Department of Internal Affairs.

  • 2.5 Department of Statistics and Historical Branch, Department of Internal Affairs.

Historical

Department of Statistics; Historical Branch.

Chapter 3. Government

3.1 Constitution

New Zealand is a monarchy with a parliamentary government. The Crown is vested in the same person as the British Crown and Queen Elizabeth II has the title Queen of New Zealand.

Although an independent state today, New Zealand's constitutional history can be traced back to 1840 when by the Treaty of Waitangi the Maori people exchanged their sovereignty for the guarantees of the treaty and New Zealand became a British colony.

A constitution is concerned with the establishment and composition of the legislative, executive, and judicial organs of government, their powers and duties, and the relationship between these organs. In New Zealand, the constitution is not contained in a single document that can be referred to as ‘the Constitution’, although the Constitution Act 1986 brought together in one statute the most important statutory constitutional provisions. Some United Kingdom statutes, constitutional conventions, and case law add to the body of New Zealand constitutional law.

A feature of constitutional documents in some countries is that their provisions are safeguarded by requiring a special procedure to amend them. Only two New Zealand constitutional statutes have a requirement of this nature. They are the Electoral Act 1956 and the Constitution Act 1986. Some sections of the Electoral Act 1956 require a 75 percent majority in Parliament to change them, o a majority of votes cast at a referendum. However, the 75 percent requirement could itself be removed by a simple majority in Parliament. In this sense, the protection is political rather than legal. One of the entrenched, or protected, sections in the Electoral Act 1956 was transferred to the Constitution Act 1986, where it retains the protection previously provided.

Important sources of constitutional law include, the Constitution Act 1986, which replaced the Constitution Act 1852 (the 1986 Act is discussed in more detail below); the United Kingdom Habeas Corpus Act 1679, and Bill of Rights 1689, which respectively protect the individual against arbitrary detention, and define some of the relative powers of the Crown and Parliament; the Electoral Act 1956, which provides procedures for parliamentary elections; the Letters Patent 1983, which set out the Governor-General's powers, and the Imperial Laws' Application Act 1988, which defines those United Kingdom statutes that are still part of New Zealand law.

The Crown and Governor-General

The Governor-General is the representative of the Sovereign in New Zealand and exercises the royal powers derived from statute and the general law (prerogative powers). The Governor-General possesses only those prerogative powers delegated in the Letters Patent, and the courts may decide on the limits of them. Almost all of the Governor-General's powers are now statutory, and this has the effect of abridging any of the prerogative powers that cover the same ground. The Sovereign appoints the Governor-General on the Prime Minister's recommendation, normally for a term of five years.

The Governor-General's main constitutional function is to arrange for the leader of the majority party in Parliament to form a government. By constitutional convention and the Letters Patent, the Governor-General is required to follow the advice of ministers. By convention the Governor-General can in extraordinary circumstances reject advice if he or she believes that a government is intending to act unconstitutionally—known as the reserve power. The extent of these powers in New Zealand is unclear, and events in Australia in 1975 demonstrated how controversial the use of the reserve powers can be.

Parliamentary tradition

A feature of New Zealand's constitution is that, although it is a monarchy in form, it operates democratically because of a long political tradition of parliamentary government and a network of constitutional principles. This tradition developed during the course of British history, and was transferred to New Zealand. Some principles have legal status, and some exist as constitutional conventions.

The Crown is still the formal legal repository of much power. The Crown is part of Parliament, and the Governor-General's assent is required before bills can become law. Government administration is formally carried out by the Crown through its ministers and state servants. However, the Crown must act according to its ministers' wishes, and they, in turn, must retain parliamentary support. The Government cannot act effectively without Parliament, because it cannot raise or spend money without parliamentary approval, and for most categories of expenditure this approval takes the form of an annual vote of funds to the Government. Parliament therefore has to be assembled regularly and has the opportunity to hold the Government to account. Under the modern two-party system, however, the Government effectively controls proceedings in Parliament and cases of Government members voting with the Opposition are very uncommon.

Judges are also appointed by the Crown, and there is a strong tradition of independence for judges and various mechanisms to protect it.

Recent constitutional reform

Events immediately after the July 1984 general election highlighted a need for constitutional reform. Difficulties experienced by the incoming government, in taking what was considered urgent action, revealed uncertainties in the rules for the handing over of power from an outgoing to an incoming government.

An officials committee was set up to examine and report on the rules for the handing over of power and to carry out a general reorganisation of statutory constitutional provisions. The committee's recommendations included a draft bill which eventually led to the Constitution Act 1986.

The Act, which came into effect on 1 January 1987, clarified the rules relating to the handover of power and brought together in one Act the most important statutory constitutional provisions. It deals with the principal components of New Zealand's constitutional arrangements; the Sovereign, the Executive, the legislature and the judiciary.

Part I of the Act concerns the Sovereign. It contains the essence of the Royal Titles Act 1974 and replaces the Royal Powers Act 1983. It deals with the Sovereign as the Head of State of New Zealand and expressly recognises the role of the Governor-General. Part I also deals with the exercise of royal powers by either the Sovereign or the Governor-General, and with the legal effects of a death of the Sovereign (the demise of the Crown).

Part II deals with the Executive. It restates the rule that no person may be a minister of the Crown or member of the Executive Council unless that person is a member of Parliament. However, due to the uncertainties in applying this rule created by the events of 1984, an exception was provided. A non-member of Parliament may now be appointed as a minister or member of the Executive Council if that person was a candidate at the general election immediately before appointment. However, if within 40 days that person does not become a member of Parliament he or she must vacate office.

There is a further exception which re-enacts, with some amendment, a provision authorising ministers of an outgoing government to continue to hold office for 28 days after ceasing to be members of Parliament. Part II also deals with the power of ministers to act for other ministers, and the appointment and powers of parliamentary under-secretaries.

Part III of the Act concerns the law-making body, the legislature: what it does and how it is to do it. The Act confirms the existing power of the New Zealand Parliament to make laws. It declares that the Parliament of New Zealand ‘continues to have full power to make laws’. It also removed the residual power of the United Kingdom Parliament to make laws for New Zealand, which is now inappropriate given New Zealand's independent status. To this end the Act also repealed the Statute of Westminster 1931 (in relation to New Zealand) and other linked legislation. Under the Statute of Westminster the United Kingdom Parliament could legislate for New Zealand.

The Act also altered the composition of Parliament to consist of the Sovereign in right of New Zealand, rather than, as previously, the Governor-General, and the House of Representatives. The new description is more appropriate to New Zealand's independent constitutional status. Part III also deals with matters such as the election and term of the Speaker, the royal assent to bills, and the procedure for the summoning, proroguing, and dissolution of Parliament. It also requires Parliament to meet not later than six weeks after the date fixed for the return of the writs from the election. This embodies the important constitutional principle that parliaments should meet frequently, as set out in the Bill of Rights 1689.

There remain a number of United Kingdom Acts (referred to as ‘imperial Acts’) which are in force as part of the law of New Zealand. Those which are still in force have been listed in the Imperial Laws Application Act 1988, which clarifies the effect of Imperial laws in New Zealand. Some are historic constitutional Acts, such as the Magna Carta, the Habeus Corpus Act 1679, and the Bill of Rights 1689.

In Part IV of the Act are found some of the important constitutional rules governing the judiciary, their tenure, and salaries. The Act also empowers the Sovereign, or the Governor-General, to remove High Court judges and sets out how, and on what grounds, they can be removed. The Constitution Act 1986 made some changes to the law on these matters. It enabled the Governor-General in Council to remove judges and abolished the power of suspension. It also clarified uncertainties about the method and grounds for removal.

In summary, although the Constitution Act 1986 is not, and does not purport to be, a ‘written’ constitution in the technical sense, it contains most of the provisions found in written constitutions of unitary (i.e., non-federal) countries. However, as mentioned above, only one of its provisions is specially protected. Nor does it include one feature of a number of written constitutions of other countries, namely, a statement of fundamental human rights, such as freedom of religion, speech, and assembly. This was the subject of a White Paper on a Bill of Rights for New Zealand, which was tabled in the House of Representatives in 1985. The paper contained a draft bill which would protect fundamental civil and political rights.

A parliamentary select committee considered the white paper in detail. It recommended that a Bill of Rights be introduced, but with numerous amendments to the white paper's draft bill. The most important differences are, firstly the Bill of Rights would not be an entrenched statute. Instead, it would be an ordinary statute that can be repealed or amended by a majority in Parliament. Secondly, the courts would not have the power to strike down legislation that is inconsistent with the rights expressed in the bill. Instead, the Attorney-General would be charged with the responsibility of alerting Parliament when any legislation or provision in the bill before Parliament is inconsistent with those rights. Thirdly, the Treaty of Waitangi of 1840 would not be included in the bill.

The New Zealand Bill of Rights Bill, with these changes, was introduced to the House of Representatives on 10 October 1989 and referred to the Justice and Law Reform Select Committee.

3.2 Parliament and the Cabinet

House of Representatives

At the heart of the parliamentary system lies the power to make laws that is vested by the Constitution Act 1986 in the Parliament of New Zealand, which consists of the Sovereign in right of New Zealand (normally represented by the Governor-General) and an elected House of Representatives.

The principal functions of Parliament are to enact laws, supervise the Government's administration, vote supply, provide a government, and redress grievances by way of petition.

The Constitution Act 1986 forbids the House to allocate public funds for any purpose unless first recommended by the Crown. Although the reasons for this provision are historical, it is also used by governments to defeat legislation brought forward by individual members which ministers are unwilling to support or adopt. On the other hand, the law forbids the Crown to tax citizens without express parliamentary approval.

Constitutional law includes the law and custom of Parliament, itself derived from a variety of sources. The Bill of Rights 1689 saves any proceeding in Parliament from being questioned in any forum, other than the House itself, and the Legislature Act 1908 provides that the powers, privileges, rights, and immunities of the House (and its committees and members) are those possessed by the British House of Commons on 1 January 1865. One aspect of the powers of the House is the ability to make rules for the conduct of its business. Most of these are contained in the Standing Orders, although some are made on a sessional, and others on an ad hoc basis. The traditional three readings given to a bill are part of Standing Orders, but it is open to the House to alter or suspend its rules at any time. The House has retained the right to punish breaches of its privileges, whether by members or citizens. There is no right of appeal (although the courts could be asked to decide whether the privilege claimed is one recognised by law).

Perhaps the most important privilege of the House is that of freedom of speech, guaranteed by the Bill of Rights 1689, and claimed by the Speaker upon confirmation in office by the Governor-General.

The House meets in answer to a summons from the Governor-General. Sessions of Parliament are marked by a formal opening when the Government's legislative programme is described in the Speech from the Throne, read by the Governor-General in the absence of the Sovereign, and a closing prorogation by proclamation. Unless the House, by resolution made under the authority of the Constitution Act 1986, carries forward business to the next session, all business before the House on prorogation lapses. Parliament is either dissolved by the Governor-General or expires after three years, and another general election is held.

Because control of the House's business lies with the Government, many of the rules and customs of the House are designed to ensure that members are given a full opportunity to debate any aspect of government proposals. A central figure in Parliament is the Speaker, who is elected to act as an impartial chairman when the House is in session. The Speaker controls debates and the conduct of members, and ensures the Standing Orders are complied with. The Speaker is assisted by the Clerk of the House of Representatives who notes all proceedings of the House and of any committee of the House, and provides advice on parliamentary law and custom.

Parliamentary opposition. As the name suggests, it is the job of the opposition party with the highest number of seats to oppose the Government. Its role is to present itself to the people as an alternative government. It will attack government policy and attempt to demonstrate inefficiency, and government or departmental mismanagement. The party system means it is unlikely that the Opposition could bring down a government by a no-confidence vote—there has been no instance of a successful no-confidence vote in the history of the New Zealand Parliament since 1928.

In modern times the House of Representatives has been characterised by having two large, dominant parties, with the majority party forming the Government and the minority party forming the Opposition. In recent years, however, members of a third party have been elected to Parliament, and from time to time members have left one of the parties and have continued to sit as independent members. Because of the growth of a largely two-party system and the importance that the parties have assumed within the political framework, the party caucus (a meeting of each party's members of Parliament in closed session at regular intervals, once a week when Parliament is in session) is a primary means of developing policies and tactics. Caucus committees of the parties travel around the country frequently, investigating issues of interest or concern to them. Although the existence of the caucuses and their committees is not recognised by the law, indirect recognition has been given. For example, travelling allowances are payable to members when travelling as members of a caucus committee.

PARLIAMENTARY SEATS HELD BY POLITICAL PARTIES AFTER GENERAL ELECTIONS
ElectionTotalLiberalConservativeLabourOthers Independent

* Country Party

Ratana

Social Credit/Democrats.

1890743825  7 (4)
18937451136 (4)
18967439256 (4)
18997449192 (4)
190280471910 (4)
19058058166
 Reform 
19088050261 3
191180333746
191480334160
191980214784
1922802237174
192580IT55122
1928802727191*6
 Coalition 
19318051241*4
 National 
1935801953+22*4
19388025532
19438034451
1946803842 
1949804634
1951805030
1954804535
1957803941
1960804634
1963804535
19668044351
1969844539 
1972873235
1975875532
19789251401
19819247432
19849537562
1987974057 

Process of legislation. Proposed laws are placed before the House in the form of draft laws known as ‘bills’. There are three types of bill: public bills, which deal with the most important subjects of a public and general nature (most public bills are introduced by the Government); local bills, which are promoted by local authorities to give themselves special powers or validate unlawful action they may have taken; and private bills, which are promoted by private individuals or companies also to give themselves special powers.

The procedure for passing a public bill in the House of Representatives is for it to receive a first reading, which is a formal introductory stage. This will have a maximum debating time of two hours, although often no debate occurs. Almost all bills are then sent to a select committee. Detailed scrutiny of legislation and facets of executive activity, e.g., expenditure of public money, is carried out by select committees which consist of a small number of members, and report their findings and recommendations to the House. Since 1980 all Government bills are referred to a select committee unless they are certified by the Speaker as ‘money bills’ (or are particularly urgent). The procedure is intended to enable the public and interested bodies to make submissions, in the expectation that better laws will result. Following its deliberations the select committee will report the bill back with any proposed amendments. On the second reading the formal debate will occur on the substance of the bill. Following this the bill is considered by the whole House ‘in committee’, when the Committee of the whole House considers the bill clause by clause. This may involve considerable debating time. The entire bill is considered in this way and formally reported back to the House for its third reading, with any amendments that have been agreed. Debate may also take place on the bill's third reading, after which it is forwarded to the Governor-General for his approval. On receiving the royal assent the bill becomes an act of parliament and part of the law of New Zealand.

The various stages of the bill do not always follow any set time pattern. Weeks or even months can elapse between readings. Bills normally have explanatory notes on the front, which detail the contents. These do not appear on the act. Local and private bills pass through similar stages to those for a public bill, however in these two types of bills the person or body promoting the bill must also advertise the bill before it can be introduced.

Sessions of Parliament. The first session of the forty-second New Zealand Parliament was called following the general election of 15 August 1987. The last sitting day of that session was on 12 December 1989. Queen Elizabeth II opened the second session on 14 February 1990. The session will continue, with short breaks, until the next election is called.

During the first session of the forty-second Parliament, 414 public acts were passed. Other aspects of parliamentary activity are summarised in the following tables, and a list of public acts in force and their administering departments was published in the 1988–89 edition of the Yearbook.

Table 3.1. PARLIAMENTARY SESSIONS

ParliamentPeriod of session
Thirty-ninth17 May 1979–14 December 1979
15 May 1980–12 December 1980
20 May 1981–23 October 1981
Fortieth7 April 1982–17 December 1982
7 April 1983–16 December 1983
31 May 1984–14 June 1984
Forty-first15 August 1984–12 December 1985
26 February 1986–21 July 1987
Forty-second16 September 1987–12 December 1989
14 February 1990—
Source: Clerk of the House of Representatives.

Table 3.2. SUMMARY OF PARLIAMENTARY PROCEEDINGS

 1986–87*1987–89;

* Second session, Forty-first Parliament.

First session, Forty-second Parliament.

Source: Clerk of the House of Representatives.

Sitting days135184
Public bills introduced by Government107180
Public bills referred to select committees83150

Parliamentary Service. Established in 1985 to replace the Legislative Department, the Parliamentary Service provides administrative and support services to the members of Parliament and the House of Representatives.

The Parliamentary Service is not a department of the executive government and is not responsible to a minister, it is controlled by the Parliamentary Service Commission which consists of the Speaker of the House of Representatives as chairperson, and six members, three of whom are members of the Government and three of the Opposition.

Among the services provided by the Parliamentary Service are:

  • Parliamentary Library—to provide library, information and research facilities to members of Parliament;

  • Hansard—to provide an official record of the proceedings of the House of Representatives.

  • Security, secretarial, messenger and other services needed for the day-to-day running of Parliament; and

  • Personnel, finance and administrative services to members of Parliament and other agencies operating within Parliament House including the Office of the Clerk, the parliamentary party research offices, the Parliamentary Counsel Office, and Bellamy's.

Salaries and allowances of parliamentarians. These are set out in table 3.3 below. An electorate allowance is also paid at a rate dependent on the nature of each member's electorate, e.g., urban, rural, or semi-rural, and ranges from $7 600 to $18 600. A day allowance of $48 is payable where indicated for each day on which a member attends a sitting of Parliament or a committee, and a night allowance of up to $110 for each night a member requires overnight accommodation away from home by reason of such attendance. In addition to the allowances in the table, a once-only setting-up allowance is paid towards the purchase of a motor vehicle to members elected for the first time. The amount paid varies between $6 840 and $16 740 depending on the nature of the member's electorate.

Table 3.3. PARLIAMENTARY AND MINISTERIAL SALARIES AND ALLOWANCES

 Annual salary or
allowance payable
from 1 July 1989
Salaries      
Members of the Executive
Prime Minister156,000
Deputy Prime Minister122,000
Minister of the Crown109,000
Minister of the Crown without portfolio88,000
Parliamentary under-secretary84,750
Officers of the House of Representatives
Speaker102,500
Chairman of Committees87,000
Deputy Chairman of Committees65,750
Leader and Deputy of the Opposition
Leader of the Opposition109,000
Deputy Leader of the Opposition84,750
Whips
Chief Government Whip75,000
Chief Opposition Whip75,000
Junior Government Whip70,750
Junior Opposition Whip70,750
Members of Parliament
Member of Parliament61,000
Allowances
Prime Minister27,300
Deputy Prime Minister12,100
Minister of the Crown11,300
Minister of the Crown without portfolio8,900
Parliamentary under-secretary8,900
Minister of Foreign Affairs (additional)6,000
Speaker5,750
     (additional allowance as Speaker; plus electorate allowance abated by one-third of the appropriate rate, and day allowance)9,200
Chairman of Committees5,750
     (additional allowance as Chairman plus electorate allowance abated by one-third of the appropriate rate, and day allowance)5,250
Deputy Chairman of Committees5,750
     (additional allowance as Deputy Chairman, and day allowance)625
Leader of the Opposition (plus house and travelling allowances)11,300
Deputy Leader of the Opposition5,750
     (plus additional allowance as deputy and electorate, night, and day allowances at appropriate rates)4,450
Members (plus electorate, day, and night allowances at appropriate rates)5,750
Source: Clerk of the House of Representatives.

Members of Parliament. Table 3.4 shows the percentage of women members of Parliament, and members of both sexes of various ages elected in the 1987 general election compared to the voting population.

Table 3.4. PARLIAMENTARY REPRESENTATION*

 Percentage of
total members
of Parliament
Percentage of
total voting-age
population

* As at 31 December 1989.

Source: Clerk of the House of Representatives.

Women14.451.2
Age groups, both sexes—
     18–29 years28.4
     30–3918.621.3
     40–4942.316.9
     50–5930.912.3
     60 years and over8.221.1

Table 3.5 lists members of the House of Representatives at the end of December 1989. The final results of the 1987 general election were printed in the Report of the General Election (also Parl. paper E.9). Amended statistics, including the result of an electoral petition which saw the Government member for Wairarapa replaced by a National Party candidate during 1988, were printed subsequently (also Parl. paper E.9).

                                                            Prime Minister—Rt. Hon. Geoffrey Palmer.
Leader of the Opposition—Hon. J. B. Bolger
Speaker—Hon. Kerry Burke.
Chairman of Committees—J. J. Terris.
Clerk of the House—D. G. McGee.

Table 3.5. HOUSE OF REPRESENTATIVES, FORTY-SECOND PARLIAMENT

Member of Parliament*Year of birthPrevious occupationElectoral district

* Names are given in the form in which individual members prefer to be addressed.

Government member.

Source: Clerk of the House of Representatives.

Anderson, Robert1936FarmerKaimai
Anderton, J. P.1938Company directorSydenham
Angus, D. A.1938Freezing company stock buyerWallace
Austin, Margaret1933TeacherYaldhurst
Banks, John1946RestaurateurWhangarei
Bassett, Hon. Dr Michael1938LecturerTe Atatu
Birch, Hon. W. F.1934Consultant surveyor-engineerMaramarua
Bolger, Hon. J. B.1935FarmerKing Country
Braybrooke, G. B.1935Sales managerNapier
Burdon, P. R.1939Company directorFendalton
Burke, Hon. Kerry1942TeacherWest Coast
Butcher, Hon. David1948Research officerHastings
Carter, John1950Local government officerBay of Islands
Caygill, Hon. David1948Barrister and solicitorSt Albans
Clark, Hon. Helen1950LecturerMt Albert
Collins, Anne1954TeacherEast Cape
Cooper, Hon. Warren1933MotelierOtago
Creech, W. B.1946AccountantWairarapa
Cullen, Hon. Dr M.1945LecturerSt Kilda
Davies, Sonja1923Vice-president of Federation of LabourPencarrow
de Cleene, Hon. Trevor1933Barrister and solicitorPalmerston North
Dillon, Bill1933Barrister and solicitorHamilton East
Douglas, Hon. R. O.1937Company secretaryManurewa
Dunne, P. F.1954Deputy chief executive officerOhariu
Duynhoven, Harry1955TeacherNew Plymouth
East, Paul1946Barrister and solicitorRotorua
Elder, Jack1949TeacherWest Auckland
Falloon, Hon. J. H.1942Farm management consultantPahiatua
Gair, Hon. G. F.1926Personal assistant to general manager, Air New ZealandNorth Shore
Gerard, R. J.1937FarmerRangiora
Gerbic, F. M.1932Industrial conciliatorOnehunga
Goff, Hon. P. B.1953LecturerRoskill
Graham, D. A. M.1942Banister and solicitorRemuera
Grant, Jeff1958FarmerAwarua
Gray, R. M.1931FarmerClutha
Gregory, Dr B.1937Doctor of medicineNorthern Maori
Hunt, Rt. Hon. Jonathan1938TeacherNew Lynn
Jeffries, Hon. W. P.1945Banister and solicitorHeretaunga
Keall, Judy1942TeacherGlenfield
Kelly, Graham1941Trade unionistPorirua
Kidd, Doug1941Barrister and solicitorMarlborough
King, Hon. Annette1947Dental tutorHorowhenua
Kirk, Jenny1945JournalistBirkenhead
Kyd, Warren1939Barrister and solicitorClevedon
Lange, Rt. Hon. David1942Barrister and solicitorMangere
Lee, G. E.1935Company directorCoromandel
Luxton, John1946FarmerMatamata
McClay, R. N.1945TeacherWaikaremoana
McCully, Murray1953Public relations consultantEast Coast Bays
McKinnon, D. C.1939Real estate agentAlbany
McLean, I.1935FarmerTarawera
McTigue, M. P.1940FannerTimaru
Mallard, Trevor1954TeacherHamilton West
Marshall, Hon. Russell1936Minister and teacherWanganui
Marshall, Denis1943Farmer and company directorRangitikei
Matthewson, Clive1944Civil engineerDunedin West
Maxwell, Ralph1934TeacherTitirangi
Maxwell, R. F. H.1941FarmerTaranaki
Meurant, Ross1947Police inspectorHobson
Moore, Hon. Mike1949Freezing workerChristchurch North
Movie, Hon. Colin1929Teacher/farmerOtara
Muldoon, Rt. Hon. Sir Robert, G.C.M.G., C.H.1921AccountantTamaki
Munro, R. J. S.1946Barrister and solicitorInvercargill
Neilson, Hon. Peter1954Civil servantMiramar
Northey, Richard1945Advisory officerEden
O'Regan, Katherine1946FarmerWaipa
Palmer, Rt. Hon. Geoffrey1942LecturerChristchurch Central
Peters, W. R.1945Barrister and solicitorTauranga
Prebble, Hon. Richard1948Banister and solicitorAuckland Central
Richardson, Ruth1950Legal adviser/farmerSelwyn
Robertson, H. V. Ross1949Industrial engineerPapatoetoe
Robinson, Dave1951Probation officerManawatu
Rodger, Hon. Stan1940M.O.W.D. employeeDunedin North
Scott, Hon. Noel1929Education administratorTongariro
Shields, Hon. Margaret1941Research workerKapiti
Shipley, Jenny1952FarmerAshburton
Shirley, K. L.1950ScientistTasman
Simpson, Dr Peter1942LecturerLyttelton
Smith, Dr Lockwood1948Managing directorKaipara
Storey, W. R.1936President of Federated FarmersWaikato
Sutherland, Larry1951Trade unionistAvon
Sutton, J. R1941FannerWaitaki
Sutton, Dr Bill1944ScientistHawkes Bay
Tapsell, Hon. Dr Peter M.B.E.1930Doctor of medicineEastern Maori
Tennet, Elizabeth..Trade unionistIsland Bay
Terns, J. J.1939BroadcasterWestern Hutt
Tirikatene-Sullivan, Hon. Mrs T. W. M.1932Political scientistSouthern Maori
Tizard, Rt. Hon. R. J.1924TeacherPanmure
Upton, S. D.1958Student/teacherRaglan
Wallbank, A. R.1937FannerGisborne
Wellington, Hon. M. L.1940TeacherPapakura
Wetere, Hon. K. T.1935FarmerWestern Maori
Wilde, Hon. Fran1948JournalistWellington Central
Williamson, Maurice1951Planning analystPakuranga
Woollaston, Hon. P. T. E.1944TeacherNelson
Young, T. J.1925General superintendent of New Zealand AllianceEastern Hutt
Young, Hon. V. S.1929FarmerWaitotara

Executive government

The executive government of New Zealand is carried out on behalf of the Sovereign by the ministers of the Crown, who make up the members of the Cabinet and the Executive Council, and control the state services. Ministers are responsible to Parliament for their official actions by constitutional convention, and are required to be members of Parliament by the Constitution Act 1986.

After a general election the Governor-General invites the leader of the majority party in the House of Representatives to accept office as Prime Minister, and form a government. On the new Prime Minister's advice the Governor-General appoints a number of members of Parliament as ministers, generally with responsibilities for various areas of government administration (portfolios). The Governor-General may also appoint parliamentary undersecretaries, who are not ministers and not members of the Executive Council, to assist ministers.

Cabinet and the Executive Council. The Cabinet and the Executive Council have separate functions. All members of Cabinet are members of the Executive Council, as are the ministers not in the Cabinet.

The Executive Council is a formal body with formal functions, whereas the Cabinet is an informal body with deliberative functions; the Executive Council tenders advice to the Governor-General on the basis of policy formulated in the Cabinet. The council is established under Clause VII of the Letters Patent and is the main legal vehicle for promulgating government decisions that will form part of the law, such as statutory regulations, which are made by Order-in-Council.

The Cabinet is in effect the highest council of government. In it the government of the day decides on administrative and legislative proposals and policies, and co-ordinates the work of ministers. The Cabinet has a system of subcommittees with authority to examine subjects in detail and decide specific policy.

The proceedings of the Cabinet are informal and confidential, which encourages consensus decisions. By constitutional convention the Cabinet accepts collective responsibility for its decisions, which ensures that ministers will have the support of the Government as a whole in Parliament for their legislative and other proposals. The Cabinet Office provides services for the Cabinet and its committees. The current Secretary of the Cabinet is also the Clerk of the Executive Council.

PREMIERS AND PRIME MINISTERS
Premier/Prime Minister*Term(s) of office
* Honours are specified only if held on retirement from office.
Premiers—
Henry Sewell7.5.1856–20.5.1856
William Fox20.5.1856–2.6.1856
12.7.1861–6.8.1862
28.6.1869–10.9.1872
3.3.1873–8.4.1873
Edward William Stafford2.6.1856–12.7.1861
16.10.1865–28.6.1869
10.9.1872–11.10.1872
Alfred Domett6.8.1862–30.10.1863
Frederick Whitaker, M.L.C.30.10.1863–24.11.1864
21.4.1882–25.9.1888
Frederick Aloysius Weld24.11.1864–16.10.1865
George Marsden Waterhouse, M.L.C.11.10.1872–3.3.1873
Sir Julius Vogel, K.C.M.G.8.4.1873–6.7.1875
15.2.1876–1.9.1876
Daniel Pollen, M.L.C.6.7.1875–15.2.1876
1.9.1876–13.9.1876
Sir Harry Albert Atkinson, K.C.M.G.13.9.1876–13.10.1877
(ministry reconstructed)
25.9.1883–16.8.1884
28.8.1884–3.9.1884
8.10.1887–24.1.1891
Sir George Grey, K.C.B.13.10.1877–8.10.1879
John Hall8.10.1879–21.4.1882
Sir Robert Stout, K.C.M.G.16.8.1884–28.8.1884
3.9.1884–8.10.1887
John BallanceLiberal24.1.1891–d27.4.1893
Rt. Hon. Richard John SeddonLiberal1.5.1893–d10.6.1906
Prime Ministers—
William Hall-JonesLiberal21.6.1906–6.8.1906
Rt. Hon. Sir Joseph George Ward, Bt., K.C.M.G.Liberal6.8.1906–28.3.1912
 United10.12.1928–28.5.1930
Thomas MacKenzieLiberal28.3.1912–10.7.1912
Rt. Hon. William Ferguson MasseyReform10.7.1912–12.8.1915
 National12.8.1919–d10.5.1925
Sir Francis Henry Dillon Bell, G.C.M.G., K.C., M.L.C.Reform14.5.1925–30.5.1925
Rt. Hon. Joseph Gordon Coates, M.C.Reform30.5.1925–10.12.1928
Rt. Hon. George William ForbesUnited28.5.1930–22.9.1931
 Coalition22.9.1931–6.12.1935
Rt. Hon. Michael Joseph SavageLabour6.12.1935–d27.3.1940
Rt. Hon. Peter Fraser, C.H.Labour1.4.1940–13.12.1949
Rt. Hon. Sidney George Holland, C.H.National13.12,1949–20.9.1957
Rt. Hon. Sir Keith Jacka Holyoake, G.C.M.G., C.H.National20.9.1957–12.12.1957
12.12.1960–7.2.1972
Rt. Hon. Walter Nash, C.H.Labour12.12.1957–12.12.1960
Rt. Hon. John Ross Marshall (later Sir)National7.2.1972–8.12.1972
Rt. Hon. Norman Eric KirkLabour8.12.1973–d31.8.1974
Rt. Hon. Wallace Edward Rowling (later Sir)Labour6.9.1974–12.12.1975
Rt. Hon. Sir Robert David Muldoon, G.C.M.G., C.H.National12.12.1975–26.7.1984
Rt. Hon. David Russell LangeLabour26.7.1984–8.8.1989
Rt. Hon. Geoffrey Winston Russell PalmerLabour8.8.1989.

Table 3.6. NEW ZEALAND GOVERNMENT, AT 19 MARCH 1990

Governor-General
His Excellency The Most Reverend Sir Paul Reeves, G.C.M.G., G.C.V.O.
Official Secretary: Paul Canham
Executive Council
Membership of the Executive Council comprises all ministers with the Governor-General presiding. The Clerk of the Executive Council is Marie Shroff.
The Cabinet
Rt. Hon. Geoffrey Palmer, Prime Minister, Minister for the Environment.
Rt. Hon. Helen Clark, Deputy Prime Minister, Minister of Health, Minister of Labour.
Rt. Hon. M. K. Moore, Minister of External Relations and Trade, Minister of Foreign Affairs, Minister of Overseas Trade and Marketing.
Hon. D. F. Caygill, Minister of Finance.
Hon. R. W. Prebble, Minister of State-owned Enterprises, Minister of Police, Minister of Railways, Minister of Pacific Island Affairs.
Hon. K. T. Wetere, Minister of Maori Affairs.
Hon. Dr. Michael Cullen, Minister of Social Welfare, Associate Minister of Health, Associate Minister of Labour.
Hon. P. B. Goff, Minister of Education.
Rt. Hon. J. L Hunt, Minister of Housing, Minister of Communications, Minister of Broadcasting.
Hon. W. P. Jeffries, Minister of Justice, Minister of Transport, Minister of Civil Aviation and Meteorological Services.
Hon. Margaret Shields, Minister of Consumer Affairs, Minister of Statistics, Minister of Women's Affairs, Associate Minister of Education.
Hon. P. Tapsell, M.B.E., Minister of Defence, Minister of Lands.
Hon. D. J. Butcher, Minister of Commerce, Minister of Energy.
Hon. Annette King, Minister of Employment, Minister of Immigration, Minister of Youth Affairs.
Hon. Fran Wilde, Minister for Disarmament and Arms Control, Minister of Tourism, Associate Minister of External Relations and Trade, Associate Minister of Foreign Affairs.
Hon. P. T. E. Woollaston, Minister of Conservation, Minister of Local Government, Associate Minister of Justice.
Hon. P. Neilson, Minister of Customs, Minister of Revenue, Minister of Works and Development, Associate Minister of Finance, Associate Minister for State-owned Enterprises.
Hon. J. R. Surton, Minister of Agriculture, Minister of Forestry.
Hon. C. D. Matthewson, Minister of Science (DSIR), Minister of State Services, Associate Minister of Labour, Associate Minister of Energy, Associate Minister of Commerce, Associate Minister for State-owned Enterprises.
Hon. Margaret Austin, Minister of Internal Affairs, Minister of Arts and Culture, Minister of Civil Defence, Minister of Research, Science and Technology.
Ministers not in Cabinet
Rt. Hon. D. R. Lange, Attorney-General, Minister of State.
Hon. Noel Scott, Minister without portfolio, Associate Minister of Education, Associate Minister of Employment, Minister of Recreation and Sport.
Hon. P. F. Dunne, Minister of Regional Development, Associate Minister for the Environment, Associate Minister of Justice.
Hon. F. Gerbic, Associate Minister of Transport, Associate Minister of Civil Aviation and Meteorological Services, Associate Minister of Immigration.
Hon. Ralph Maxwell, Minister without portfolio, Associate Minister of Agriculture, Associate Minister of External Relations and Trade.
Hon. Ken Shirley, Minister of Fisheries, Associate Minister of Agriculture, Associate Minister of Health. Associate Minister of Forestry.
Other responsibilities
Ministers with other vote or statutory responsibilities are indicated below. Statutory titles are shown in italics.
Rt. Hon. Geoffrey Palmer, Minister in Charge of the New Zealand Security Intelligence Service.
Hon. M. K. Moore, Member, New Zealand Planning Council, Minister for the America's Cup.
Hon. D. F. Caygill, Earthquake and War Damage Commission.
Hon. R. W. Prebble, Airways Corporation of New Zealand Ltd, Coal Corporation of New Zealand Ltd, Electricity Corporation of New Zealand Ltd, GCS Ltd, Government Printing Office, Government Property Services Ltd, Government Supply Brokerage Corporation (NZ) Ltd, Land Corporation Ltd. New Zealand Forestry Corporation Ltd, New Zealand Post Ltd, Minister in Charge of Public Trust Office, State Insurance Office, Telecom Corporation of New Zealand Ltd, Works and Development Services Corporation (NZ) Ltd.
Hon. K. T. Wetere, Minister in Charge of the Iwi Transition Agency.
Hon. Dr. Michael Cullen, Minister in Charge of War Pensions.
Hon. P. B. Goff, Education Review Office.
Rt. Hon. J. L Hunt, Leader of the House.
Hon. Margaret Shields, Minister responsible for the National Library.
Hon. P. Tapsell, M.B.E., Minister of Survey and Land Information, Minister in Charge of Valuation Department.
Hon. Annette King, Minister assisting the Prime Minister.
Hon. C. D. Matthewson, Audit Department, Radio New Zealand Ltd, Television Corporation of New Zealand Ltd.
Hon. Margaret Austin, New Zealand Symphony Orchestra Ltd.
Rt. Hon. D. R. Lange, Serious Fraud Office.
Source: Cabinet Office.

Parliamentary elections

Persons 18 years and over have the right to vote in parliamentary elections. Enrolment as an elector is compulsory, but voting is not. To qualify for enrolment persons must (i) be at least 18 years old; (ii) be New Zealand citizens or permanent residents; (iii) have lived continuously in New Zealand for at least a year at some time; and (iv) have last lived continuously for one month in the electorate they are to be enrolled in. Maoris, including persons of Maori descent, may choose to enrol for either a Maori or general electorate, but may make the choice only at certain times. The electoral rolls are maintained by New Zealand Post.

Voting. The conduct of polls is the responsibility of the Department of Justice, and is controlled by a returning officer in each electorate, who arranges voting facilities and staff, conducts the election, supervises counting of votes, and declares the result. Generally only persons whose names are validly enrolled before an election are qualified to vote. General elections and by-elections are held on Saturdays, and polling booths are open from 9 a.m. to 7 p.m. Most electors cast their votes at polling booths in their electorates on polling day, but they may vote as special voters at booths outside their electorate. Special votes may also be cast before polling day at issuing offices or at home because of sickness, travel, or similar reasons. Provision is also made for voting overseas.

Voting is by secret ballot. The method of voting has been changed by the Electoral Amendment Act 1990. Ballot papers list the surnames of candidates for the electorate concerned, and electors indicate their choice by putting a tick in the circle immediately after the name of the candidate they choose. A preliminary count of ordinary votes is available for each electorate on election night, and final results are normally available a fortnight later, once special and overseas votes have been received and counted. The candidate with the most votes is elected member of Parliament for the electorate concerned.

VOTING PATTERNS: HISTORICAL SUMMARY
YearElectors enrolledElectors votingInformalVoter turnout percentVotes disallowed
Contested seatsUncontested (seats in brackets)

* Includes 500 estimated as enrolled in New Plymouth, Grey and Bell and Omata electorates.

No figure for Otago Goldfields where miners' right gave vote. Estimated 6000 holders.

Actual votes cast including second and third votes in four three-member constituencies.

§ Civilian votes only.

Forces votes.

These are added to electors enrolled inorder to give total number entited to vote.

** There was considerable duplication of electors enrolled. 360 870 deletions were made in 1979–80. This would reduce the number enrolled to 2 126 724 and increase percentage of those voting to 79.86.

18535,860      
185510 024*
1860–6113,466
186633 338
187147,275
1875–7661,755
187963,83716,434(14)43,77666.50
1881109,24411,728(11)69,23066.49
1884123,20214,484(11)74,67260.61
1887166,7838,627(5)111,91167.10
1890169,48313,688(6)136,33780.44
   (150 025) 
1893292,45810,539(3)220,08275.25
   (304 176) 
1896339,230258,25476.13
  (359 404) 
1899360,01813,726(3)279,33077.59
   (387 629) 
1902415,789318,8594,97476.69
  (416 962)  
1905476,473395,6575,46883.25
1908537,003428,6484,59679.82
1911590,0429,050(1)492,9124,14383.54
1914616,043 521,5255,61884.66
1919683,420550,3277,58780.53
1922700,1117,606(1)620,6506,58088.65
1925754,1137,428(1)678,8776,90690.92
1928844,633 743,6918,30088.05
1931838,34436,443(4)698,0274,95583.26
1935919,798 834,6826,88790.75
1938995,173924,0576,37392.85
19431 000 197§20 837 (2)828 39359,95782.82§ 
   92 934  
19461 081 8981 019 0867,99993.46
19491 113 8521 041 7946,72493.53
19511 205 762Additional votes allowed1 074 0704,27989.08
19541 209 6701 105 6098,71691.40
19571 244 7487,581 1 163 0615,69692.87
19601 303 9556,7871 176 9636,46089.79
19631 322 37113,4651 205 3227,27789.56
19661 399 7209,8801 212 1277,03285.99
19691 503 95215,9371 351 81311,64588.94
19721 569 93713,3191 410 2409,08889.0742,179
19751 938 10814,9421 612 0208,24382.5376,252
19782 487 594**28,9001 721 44311,27069.1550,175
19812 034 747 1 801 3038,99888.5250,263
19842 111 6511 936 7667,56591.7142,032
19872 114 6561 842 96111,18487.1540,433

Electoral boundaries. The boundaries of electorates are revised even' five years after the Census of Population and Dwellings, and the new boundaries come into effect at the expiry of the parliamentary term during which the revision is finalised. The Department of Statistics supplies figures for revision purposes on the general electoral population. This is defined as the total electoral population except: (a) the Maori electoral population (This is the number of adult Maoris enrolled in the four Maori electorates, adjusted to include children. Maoris have been defined since 1980 as persons of the Maori race of New Zealand including any of their descendants.); and (b) some temporary' residents of various kinds.

The Representation Commission is responsible for defining the boundaries of electorates based on the population census. The commission has eight members. Five are officials, the Surveyor-General, the Government Statistician, the Chief Electoral Officer, and (until 1987) the Director-General of the Post Office, and the Chairman of the Local Government Commission (the latter cannot vote). Two members are nominated by the House of Representatives to represent the Government and Opposition respectively, and the final member is appointed to chair the commission on the nomination of the other members. The appointments of the unofficial members lapse at the next census.

The number of general electorates is based on a formula that allocates 25 electorates to the South Island. The general electoral population of the South Island is divided by 25, and the population quota for each South Island electorate is divided into the general electoral population of the North Island to give the number of electorates required in the North Island. In addition there is a fixed number of four Maori electorates. Once the provisional electoral boundaries have been settled, maps of the proposals are drawn, and boundary details published in the New Zealand Gazette. Objections may be lodged within one month of publication. They are then published, and there are a further two weeks for lodging counter-objections. The objections and counter-objections are considered by the Representation Commission, which makes a final decision on the boundaries that define the new electoral districts.

General election results. A triennial general election of members of Parliament was last held on 15 August 1987. The previous election was held on 14 July 1984. The total number of electors on the master roll for the 1987 election was 2 114 656. A total of 1 842 961 votes were cast; representing 87.15 percent of electors on the master roll.

Table 3.7. GENERAL ELECTION RESULTS

Political partyNumber of MPs
19661969197219751978198119841987*

* Includes result of electoral petition which was upheld and saw Wairarapa seat pass from Labour to National in July 1988.

Source: Department of Justice.

Democrats1122
Labour3539553240435657
National4445325551473740
                Total8084878792929597

Table 3.8. GENERAL ELECTIONS—VOTES FOR POLITICAL PARTIES

Political partyValid votesPercentage of total valid votes
1978198119841987*1978198119841987

* Includes adjustments consequent upon the Wairarapa Election Petition Judgment Dated 12 July 1988.

Excludes special votes disallowed.

Source: Department of Justice.

Democrats274,756372,056147,162105,09116.0720.657.635.74
Labour691,076702,630829,154878,44840.4139.0142.9847.96
Mana Motuhake8,3325,9899,7890.460.310.53
National680,991698,508692,494806,30539.8238.7835.8944.02
New Zealand Party236,3855,30611250.29
Others63,35019,77718,01726,8383.701.100.941.46
    Total valid votes1 710 1731 801 3031 929 2011 831 777100.00100.00100.00100.00
Informal votes11,2708,9987,56511,184
    Totals1 721 4431 810 3011 936 7661 842 961

Table 3.9. SEATS CONTESTED BY POLITICAL PARTIES, 1987 GENERAL ELECTION

Political partySeats Contested

* All those contesting one seat only.

Source: Department of Justice

Labour97
National97
Democrats97
New Zealand Party31
McGillicuddy Serious19
Wizard14
Independent15
Values10
Mana Motuhake7
Imperial British Conservative3
Independent Labour3
Breakfast2
Labour Independent2
Socialist Action League2
Other*25
                Total candidates424

General Licensing Poll. The licensing poll held in conjunction with the 1987 General Election was the twenty-second at which the three options—national continuance, state purchase and control, and national prohibition (without compensation)—were submitted to the electors.

Table 3.1. RESULTS OF GENERAL LICENSING POLLS

Voting issue197219751978198119841987
For national continuance931,7781 094 4451 053 2681 124 2581 3195181 212 989
For state purchase and control244,003235,374252,154247,217222,049217,290
For national prohibition203,791250,640374,194384,780352,949372,364
Source: Department of Justice.

Royal commissions and commissions of inquiry

The Commissions of Inquiry' Act 1908, provides that the Governor-General may, by Order-in-Council, appoint any person or persons to be a commission to inquire into and report upon any question arising out of, or concerning: (a) the administration of the Government; (b) the working of any existing law; (c) the necessity or expediency of any legislation; (d) the conduct of any officer in the service of the Crown; (e) any disaster or accident (whether due to natural causes or otherwise) in which members of the public were killed, injured, or were or might have been exposed to risk of death or injury; and (f) any other matter of public importance.

A royal commission is appointed by the Governor-General pursuant to the Letters Patent, but in other respects derives its powers from the Commissions of Inquiry Act 1908. Royal commissions are generally regarded as having greater prestige. A committee of inquiry may be set up by a minister to investigate some matter, but such a committee normally has no statutory basis, although there are ancillary powers in some instances.

Amendments to the legislation in 1979 and 1980 conferred new rights upon any person if he or she is a party to the inquiry or satisfies the commission that he or she has an interest in the inquiry apart from any interest in common with the public. Usually the terms of reference for a commission are quite specific. While there is frequently a final term of reference which appears to include everything else, this term of reference must be considered in context. It does not confer the right on almost anyone to become a party or participant in the inquiry.

The Department of Internal Affairs administers the Commissions of Inquiry Act 1908 and provides basic services to commissions. These inquiries are not pan of the justice system, nor are they part of the conventional administrative bureaucracy. The department retains important constitutional responsibilities, and is held responsible to ensure that complete independence and impartiality of the investigations is maintained.

Commissions of inquiry must report to the Governor-General, who in turn refers the findings to his or her ministers. The reports are usually published.

3.3 State sector

The state sector is responsible for putting the policies of the Government into effect. It comprises government departments, the parliamentary, education, health and defence services and statutory organisations (quangos).

At 30 June 1989, the number of staff employed in the public service, that is government departments, was 58 038 — this compares with 89 105 at 31 March 1986.

Government departments may, and often do, work with and through local authorities, statutory boards and government-sponsored organisations operating under various degrees of government control. A change of government does not necessarily affect the general functions of government departments, although a radical change in policy may be accompanied by organisational change. Departments are required to produce an annual report for parliamentary and public scrutiny.

Recent reform

Until recent years several government departments and other government-owned organisations combined trading and regulators' or policy functions. This was seen as an impediment to organisations fulfilling either of these roles, and a major thrust of recent public sector reform has been clarification of the distinction between public service departments with regulatory, social and other functions on the one hand, and trading enterprises owned by government, on the other. A significant stage in this process was the establishment of several state-owned enterprises from former government departments or divisions of departments from 1 April 1987. These were:

Airways Corporation of New Zealand Limited;

Coal Corporation of New Zealand Limited;

Electricity Corporation of New Zealand Limited;

Government Life Insurance Corporation;

Government Property Services Limited;

Land Corporation Limited;

New Zealand Forestry Corporation Limited;

New Zealand Post Limited;

Post Office Bank Limited; and

Telecom Corporation of New Zealand Limited.

Other state-owned enterprises already in existence, such as Air New Zealand Limited, and the Shipping Corporation of New Zealand Limited, also came under the provisions of the State Owned Enterprises Act 1986.

The process has continued, and the Works and Development Services Corporation, Government Computing Service Limited, Government Supply Brokerage Corporation of New Zealand Limited, Radio New Zealand Limited and Television New Zealand Limited were established in 1988. An overview of the State Owned Enterprises Act 1986, and the formation of these organisations is given in the 1987–88 edition of the Yearbook. In this edition the activities of the various state-owned enterprises are described in the relevant chapters, e.g., New Zealand Railways Corporation, New Zealand Post Limited, and Telecom Corporation of New Zealand Limited are described in chapter 20, Transport and communications.

The specialised government services, i.e., the armed forces, police, health, and education, are also described in the relevant chapters.

The state-owned enterprises have returned dividends to the Government as a shareholder, but it is recognised that public ownership may limit the potential for further efficiency gains and government policy is to sell state assets which it has no reason to retain. The sale of state assets is part of fiscal strategy to reduce public debt. Hence, several state-owned enterprises as well as trading units of government departments have been sold. These include the Health Computing Service of the Department of Health; Communicate New Zealand of the Tourist and Publicity Department; the Government Printing Office; Air New Zealand Limited; Shipping Corporation of New Zealand; Development Finance Corporation Limited; New Zealand Steel Limited; Petroleum Corporation of New Zealand Limited; Post Office Bank Limited; and the Rural Bank. The sale of other state-owned enterprises, such as Telecom Corporation of New Zealand Limited was pending at the time of going to press (April 1990). See also section 25.1, Central Government Finance.

Reform of the state sector, as distinct from the state-owned enterprises described above, has continued and is another major element of the Government's policy to improve the efficiency of the public sector.

The State Sector Act 1988, which became law on 1 April 1988, replaced the State Services Act 1962 and the State Services Conditions of Employment Act 1977 (which set common conditions of employment for all departments). The new legislation provides senior Public Servants with increased flexibility, but this is linked to greater accountability.

The Act aligned the public service with the private sector by bringing it under the provisions of the Labour Relations Act 1987 (see section 12.5, Labour relations). It redefined the role of the State Services Commission (see below) and reshaped senior levels of the public service, with new appointment provisions for senior executives.

Heads of departments, previously known as ‘permanent heads’, are now known as ‘chief executives’, although they may retain specific designations required by departmental legislation. A Senior Executive Service was established to provide a core of key senior managers. Members of this service may number up to 500. Both chief executives and members of the Senior Executive Service are engaged on contract for a maximum term of five years. The office of the State Services Commission provides training and development opportunities for the Senior Executive Service.

Within departments the broader personnel functions formerly discharged by the State Services Commission are now the responsibility of each chief executive. The Act also removed the preference which formerly existed for public service applicants for departmental vacancies.

Operating under the State Sector Act 1988, the State Services Commissioner retains a review capacity and thus serves as a source of advice to the Government on the performance of the public service. With the former emphasis on centralised controls diminished, the office of the commissioner is expected to concentrate on the provision of specialist advice and support to departments in the personnel and industrial relations fields.

State Services Commissioner

The State Sector Act 1988 (as amended in December 1989) provides for a State Services Commissioner and a deputy to replace the former commission. The commissioner is also the chief executive of the department now known as the The Office of the State Services Commission. The main functions of the commissioner are:

  • To review the machinery' of government, including the allocation of functions to and between departments and the desirability of, or need for, the creation, amalgamation or abolition of departments:

  • To review the performance of each department including the discharge by the chief executive of his or her functions:

  • To appoint chief executives of departments and to nominate their conditions of employment and maintain, in association with chief executives, a senior executive service for the public service;

  • To negotiate conditions of employment of employees in the public service;

  • To promote and develop personnel policies and standards of personnel administration for the public service, including equal employment opportunity policies and programmes:

  • To advise on management systems and structures, career development and training within the public service;

  • Other functions with respect to the administration and management of the public service as directed by the Prime Minister.

A further feature of the restructuring of government departments has been the separation of the policy and advisory functions from the operations, and the establishment of general policy ministries, e.g., Education, Health, Maori Affairs, Science and Defence.

Equal employment opportunities. The Office of the State Services Commission has overall responsibility for the promotion and monitoring of equal employment opportunity policies, programmes and practices within the public service.

The Office of the Commission works with departments at central and regional levels. In every government department, the senior management responsible for the promotion, development, and co-ordination of equal employment opportunity policy reports progress achieved in accordance with the policy, and each department is required to develop a plan which outlines specific action to be taken.

The commission promulgates positive action programmes which target the most employment-disadvantaged groups in the public service. Regular seminars and workshops are organised on equal employment principles and strategies for departmental managers, equal employment opportunities liaison officers, and training staff.

Table 3.11 lists the departments of the public service as set out in the first schedule of the State Sector Amendment (No. 2) Act 1989.

Table 3.11. CHIEF EXECUTIVES OF GOVERNMENT DEPARTMENTS*

DepartmentTitleName
* As at 1 December 1989.
Agriculture and Fisheries, Ministry ofDirector-GeneralR. Ballard
AuditController and Auditor-GeneralB. H. C. Tyler
Commerce. Ministry ofSecretaryM. J. Belgrave
Conservation, Department ofDirector-GeneralW. R. Mansfield
Crown Law OfficeSolicitor-GeneralJ. J. McGrath QC
CustomsComptrollerM. W. Taylor
Defence. Ministry ofActing SecretaryD. J. Swallow
Education, Ministry ofChief ExecutiveM. L. O'Rourke
Education Review OfficeChief ExecutiveM. G. Gianotti
Energy. Ministry ofActing SecretaryP. J. McCarthy
Environment. Ministry for theSecretaryR. W. G. Blakeley
External Relations and Trade, Ministry ofSecretaryG. K. Ansell
Forestry, Ministry ofSecretaryT. R. Cutler
Government Printing OfficeGovernment PrinterV. R. Ward
Government Superannuation FundActing Chief ExecutiveR. Wilderspin
Health, Department ofDirector-GeneralG. C. Salmond
Housing CorporationDirector-GeneralR. A. Carter
Inland RevenueCommissionerD. Henry
Internal Affairs, Department ofSecretaryP. W. Boag
Iwi Transition AgencyGeneral ManagerW. Gardiner
Justice, Department ofSecretaryD. Oughton
Labour. Department ofSecretaryC. J. McKenzie
Lands, Department ofActing Director-GeneralJ. Bishop
Maori Affairs, Ministry ofChief ExecutiveJ. H. Clarke
National LibraryNational LibrarianP. G. Scott
National Provident FundChief ExecutiveW. J. Perham
PoliceCommissionerJ. A. Jamieson
Prime Minister and Cabinet, Department ofChief ExecutiveD. K. McDowell
Public Trust OfficePublic TrusteeW. B. R. Hawkins
Research Science and Technology, Ministry ofChief ExecutiveB. V. Walker
Scientific and Industrial Research, Department ofDirector-GeneralA. J. Ellis
Serious Fraud OfficeChief ExecutiveC. Sturt
Social Welfare, Department ofDirector-GeneralJ. W. Grant
State Insurance OfficeGeneral ManagerJ. F. Stirton
State Services Commission, Office of theState Services CommissionerD. K. Hunn
Statistics, Department ofGovernment StatisticianS. S. R. Kuzmicich
Survey and Land Information, Department ofDirector-GeneralW. A. Robertson
Transport, Ministry ofSecretaryM. C. Bazley
The TreasurySecretaryG. C. Scott
Tourist and PublicityGeneral ManagerW. N. Plimmer
ValuationValuer-GeneralH. F. McDonald
Women's Affairs. Ministry ofSecretaryJ. E. Aitken
Youth Affairs, Office ofChief ExecutiveJ. Y. Quinnell

Functions of government departments

The functions of central government are under a continual process of review. The following account of departments was correct at the time of going to press (April 1990).

Agriculture and Fisheries, Ministry of. (Te Manatū Ahuwhenua, Ahumoana.) The ministry implements the Government's policies and programmes to derive maximum benefit to the nation from farming, horticulture, and fishing. Its programmes aim to improve; productivity, through research, advisory and management services; protection, by monitoring animals, fish and plants and preventing the introduction of exotic pests and diseases; and quality assurance, by ensuring that export primary produce meets agreed standards. The ministry also provides policy advice to the Government. See chapter 15, Agriculture and chapter 16, Forestry and fishing.

Audit Office. See ‘Controller and Auditor-General’ below.

Ministry of Commerce. (Te Manatū Tauhokohoko.) The Ministry of Commerce, which came into being on 1 December 1988, has advisory, programme and administrative functions in competition policy, business and intellectual property law, business development, tariff policy, trade remedies, communications, regional development and, from 1 January 1990, energy and resources.

Activities which were transferred to the ministry when it was established were: tariff policy (from the Customs Department), the Weights and Measures Service, now the Trade Measurement Unit (from the Department of Labour); and the Patent Office (from the Department of Justice).

Included in the Ministry of Commerce is the Ministry of Consumer Affairs which operates as a separate division reporting to the Minister of Consumer Affairs. See section 21.1, Controls on trading.

The ministry' services the portfolios of Commerce, Broadcasting, Consumer Affairs, Regional Development, and Energy.

Conservation, Department of. (Te Papa Atawhai.) The department is responsible for the management of much of New Zealand's natural lands and water, as well as historic places and wildlife. In addition to managing national parks and reserves, farm and forest parks, the public aspects of harbours and foreshores, and marine reserves, the department is also the Government's advocate in conservation issues. See chapter 14, Land and environment.

Crown Law Office. The Crown Law Office is the legal adviser to, and provides counsel in court for, the Government and ministers in matters affecting the Crown and government departments. The Solicitor-General, who heads the office, performs most of the statutory and ex-officio duties of the Attorney-General and is entrusted by statute with various specific rights, duties and functions. The range of the Crown Law Office's legal work corresponds with the activities of the Government itself.

Customs Department. The department is charged with the administration of border control and some indirect taxation, and the tendering of advice to the Government on these and associated matters. The department performs a number of roles under the Customs Acts and other enabling legislation. These include; the administration of the tariff at the border; protecting New Zealand's borders by exercising the required control over the export and import of goods and international passengers in accord with the immigration, emigration, quarantine, and other statutory and government policy requirements (with particular attention to controlled drugs); and providing a service to commerce through the effective administration of customs procedures, and the facilitation of cargo movements. In managing its role the department balances these requirements to ensure that there is movement of people and trade, while the border is maintained. See chapter 22, Overseas trade.

Defence, Ministry of. The ministry provides advice on defence policy, reports to the Minister of Defence on the performance of the armed forces, and is responsible for all capital procurement, replacement expenditure or repairs which entail major changes to capability or involve major re-equipment. See section 4.4, Defence.

Education, Ministry of. (Te Tāhuhu o te Matauranga.) The primary function of the department is to ensure that suitable education programmes, facilities, staffing, and services are readily available for: pre-school children; children of compulsory school age (6–15 years); children who by choice start school at the age of 5 years; pupils over the age of 15 who stay on at school; suitably qualified school-leavers who seek education and training at teachers colleges or polytechnics; and adults wishing to continue their education, whether for vocational or non-vocational purposes. See chapter 9, Education.

Education Review Office. This office was established on 1 October 1989 to report to the Minister of Education on how learning institutions are meeting their goals, as set out in their charters. The office also reports on the policy advice of the Ministry of Education and the quality of policy implementation as it affects the performance of institutions, and carries out reviews of services and assistance provided by parts of the education system (see section 9.1, Administration of education).

Energy, Ministry of. The Ministry of Energy was merged into an Energy and Resources Division within the Ministry of Commerce in December 1989.

Environment, Ministry for the. (Te Manatū mō te Taiao.) The ministry advises Government on all forms of environmental administration. This includes; policies for influencing the management of natural and physical resources and ecosystems, so as to achieve the objectives of the Environment Act 1986; possible consequences for the environment of proposed developments by either the private or public sector, particularly any developments not adequately covered by legislative or other environmental assessment requirements; and ways of providing effective public participation in environmental planning and policy formulation.

To carry out its role, the ministry' gathers information and may conduct and commission research necessary for formulating advice to the Government. It also provides the Government, its agencies, and other public authorities, with advice on: the application, operation, and effectiveness of legislation relevant to achieving the objectives of the Environment Act; procedures for assessing and monitoring environmental impacts; pollution control and the management of pollutants; identification and likelihood of natural hazards, and the reduction of their effects; and the control of hazardous substances, during the management of their manufacture, storage, transport, and disposal.

As well, the ministry works towards the resolution of conflicts relating to policies and proposals which may affect the environment. It also provides and disseminates information on environmental policies.

Besides the Environment Act 1986, the ministry administers the Town and Country Planning Act 1977, the Water and Soil Conservation Act 1967, and the Soil Conservation and Rivers Control Act 1941. The Resource Management Bill, introduced to Parliament in December 1989, has major implications for the ministry.

External Relations and Trade, Ministry of. (Te Manatū Āhuatauga Tāwāhi, Tauhoko.) The ministry assists the Government in the conduct of all its external relations and the formulation and conduct of trade policy, and administers the network of diplomatic and consular posts overseas. See chapter 4, International relations and defence.

Forestry, Ministry of. The ministry is responsible for providing forestry sector services and policy advice to the Government. Its mission is to ‘promote the national interest through forestry, including the wood-based industries’. Its functions include research, advice on forestry policy to the Government, advisory services, and the collection of forestry related statistics. Other responsibilities of a regulatory nature include quarantine and forest disease control, and timber inspection and grading.

Government Printing Office. In December 1989 the Government announced the sale of the Government Printing Office to the Rank Group Limited.

Government Superannuation Fund. Previously part of Treasury, the Government Superannuation Fund was set up as a separate department in October 1988. Its function is to administer the Government Superannuation Fund Act 1956.

Health, Department of. (Te Tari Ora.) The principal functions of the Department of Health are: (a) to administer all public acts relating to the promotion or conservation of human health; (b) to offer policy advice to the Minister of Health, area health boards and other agencies; (c) to prevent, limit, and suppress communicable and other diseases; (d) to promote or carry out research and investigation in public health fields and in the prevention and treatment of disease; (e) to monitor health status and health services; (f) to publish reports, information, and advice concerning public health; (g) to organise and control medical, dental, and nursing services, so far as such services are paid for out of public moneys; (h) generally to take all such steps as may be desirable to secure the preparation, effective carrying out, and co-ordination of measures conducive to public health; and (i) to provide advisory information and processing services to area health boards and various health agencies. See chapter 8, Health and safety.

Housing Corporation. (Te Kaporeihana Whare.) The corporation is the primary government agency for providing subsidised housing assistance and is the Government's principal adviser on housing issues. Its major activities are the provision of rental housing and housing finance for low- and modest-income earners. It also provides home improvement loans, mortgage guarantees and refinance/'second chance' lending. Other activities include the purchase, development and sale of land; construction and sale of houses; management of its rental housing stock; loans and subsidies for housing for the elderly; and assistance for urban renewal and redevelopment.

The corporation administers the ‘Homestart’ scheme, which provides deposit-gap assistance for first home purchase. A programme for lending on multiply-owned Maori land uses the house rather than the land as security.

A number of lending activities are administered by the corporation either on an agency basis or in its own right. These include: loans to state servants on transfer; rehabilitation concessions to ex-service personnel; subsidies for hostel accommodation for young people; and loans for private schools and medical centres.

The corporation also administers the Residential Tenancies Act 1986. It provides information on tenancy law for landlords and tenants, maintains a tenancy mediation service and acts as an office for the Tenancy Tribunal. See chapter 19, Housing and construction.

Inland Revenue Department. (Te Tari Taake.) The main function of the Inland Revenue Department is to assess and collect various taxes and duties. The principal tax is income tax, which is collected in part by pay-as-you-earn (PAYE) deductions from salaries and wages, in part by the payment of provisional tax during the year of derivation of income, and in part by an end-of-year assessment. Of the other revenues collected the most significant are goods and services tax, stamp duty, estate and gift duties, land tax, fringe benefit tax, and totalisator duty. The department also collects accident compensation levies on behalf of the Accident Compensation Corporation. See chapter 25, Public sector finance.

Internal Affairs, Department of. The department has a variety of responsibilities related to New Zealand's national identity, cultural heritage and community wellbeing. It reports to the Prime Minister, Deputy Prime Minister and seven Cabinet portfolios (actually four cabinet ministers); Arts and Culture, Civil Defence, Internal Affairs, Local Government, Pacific Island Affairs, Recreation and Sport, and Youth Affairs. Services are provided in the following five main areas:

Constitutional services—The department provides constitutional services to central government and citizens, including: issuing passports and granting New Zealand citizenship; protection of national emblems, flags and names; arranging some documentation of Parliament and elections as required by constitution; ministerial services; administering commissions of inquiry; and reception of distinguished visitors.

Local government services—The department provides the main link between central and local government and is responsible for; local government legislation, research and reviews; the Local Government Commission; and related functions.

Cultural heritage and community development services—The department works to promote national and cultural identity, enhance wellbeing and preserve the people's heritage. This involves responsibility for a wide range of activities including: the 1990 Commission, Historical Publications Branch and the Dictionary of New Zealand Biography; film and video recording censorship; control of gaming, racing and lotteries; the Museum of New Zealand Planning Committee; the Ministry of Civil Defence; and the National Archives.

Government agency and statutory body services—The department provides financial and/or administrative services to organisations such as the Pacific Island Affairs Unit; the Board of Trustees of the National Art Gallery, Museum and War Memorial; the Hillary Commission for Recreation and Sport; and a number of others.

Commercial services—The department provides a translation service for government departments and exporters; a government cleaning service operated on a commercial basis; and National Archives, which provides records management consultancy on a cost-recovery basis.

Many of the functions of the department are described in the relevant chapters of this book.

Iwi Transition Agency. (Te Tira Ahu Iwi.) The agency was established on 1 October 1989. Its functions are to maintain the programmes of the former Department of Maori Affairs and to facilitate the transfer of responsibility for them to iwi authorities. (See section 6.4, Maori society.)

Justice, Department of. The department's functions may be classified broadly under the following headings; administration of courts; registration of land transactions, births, deaths and marriages; control of prisoners, probationers and parolees; law reform; commercial affairs (including administration of the Companies Act 1955); electoral work; and administrative work for the many authorities and tribunals. The tribunals, authorities, and committees serviced by the department help administer Acts, or advise the Government. The Department of Justice is responsible for the administration of about 160 acts of Parliament.

Labour, Department of. The principal responsibilities of the Department of Labour are to promote full employment through the provision of an employment service; to ensure, through the work of its field staff, that workers are employed under safe and healthy working conditions; to assist and promote good industrial relations; and to administer immigration legislation. Among the most important legislation administered are the Labour Relations Act 1987, the Factories and Commercial Premises Act 1981, the Construction Act 1959 and the immigration Act 1987.

Lands, Department of. This department ceased to exist on 31 January 1990. Its residual functions were taken over by the Department of Survey and Land Information. See section 14.1, Land resources and ownership.

Maori Affairs, Department of. This department was disestablished on 30 September 1989. Most functions were taken over by the Iwi Transition Agency (see section 6.4, Maori society).

Maori Affairs, Ministry of. (Te Manatū Māori.) This ministry was established on 1 July 1989. Its functions are to monitor and advise government on the responsiveness of government agencies to Maori issues, to formulate policy of interest to Maori, and to comment on government proposals where it determines a Maori perspective is necessary. See section 6.4, Maori society.

National Library of New Zealand. (Te Puna Mātauranga o Aotearoa.) The Library's functions are to: coordinate the New Zealand network of libraries and provide collections to ensure there is sufficient depth in the country's collections to satisfy users' needs and that information is accessible and available; compile and make available in New Zealand and overseas bibliographic records of all published New Zealand material; advise the minister on all issues relating to libraries and library development; and to be the principal New Zealand link in international and co-operative library development. See section 11.3, Books and libraries.

National Provident Fund. This fund was, until 1988, part of Treasury. It mainly provides superannuation to employees of local authorities, area health boards, and other governmental and quasi-governmental entities. See section 21.3, Insurance and superannuation.

Police, New Zealand. (Ngā Pirihimana o Aotearoa.) The mission of the police is protecting life and property; preventing crime; maintaining the peace; detecting offenders by assisting and working together with the community and other agencies; and maintaining a police organisation capable of providing a high quality of service. See section 10.4. Police.

Prime Minister and Cabinet, Department of. This department was established in October 1989. It is made up of an advisor)' group and an analytical group responsible respectively for the provision of short- and long-term policy advice to the Prime Minister; the Cabinet Office, responsible for constitutional advice and secretariat services for the Cabinet and Cabinet Committee system; and the Domestic and External Security Secretariat, which services the Officials and Cabinet Committees on Domestic and External Security. The overall function of the department is to help co-ordinate the work of the Government across departmental lines, to test the quality of advice coming from departments and to act as an ‘honest broker’ where there are conflicts over policy advice being offered by different parts of the bureaucracy.

Public Trust Office. The Public Trust Office provides a wide range of services as trustee, executor, manager, and attorney. It also acts as sinking fund or depreciation fund commissioner for many local authorities when so appointed, and additionally holds other funds on their behalf. It is also required to provide a number of statutory services irrespective of whether these are income earning.

Research, Science and Technology, Ministry of. Established in October 1989, the ministry's primary role is to provide advice to government on the development of research, science and technology policy. Other functions include the development and funding of national priorities; the review and assessment of research science and technology activity and opportunities; and the promotion of research, science and technology, including science education. See section 13.2, Organisation of science.

Rural Banking and Finance Corporation. The sale of the bank to Fletcher Challenge Limited was completed in October 1989.

Serious Fraud Office. The office was established on 1 April 1990. Its role is to investigate cases of serious or complex fraud and to prosecute offenders. It also has the objectives of; deterring serious or complex fraud; liaising with other agencies investigating fraudulent conduct to ensure the use of the best available expertise in the conduct of enquiries; and educating the public and promoting the understanding and recognition of serious or complex fraud. The office consists of a nucleus of lawyers, accountants and investigators, and a corporate services unit. See section 21.2, Commercial framework.

Scientific and Industrial Research, Department of. The department's role is to advance, maintain, and apply scientific and technical knowledge for the benefit of New Zealand's social and economic development. See section 13.2, Organisation of science.

Social Welfare, Department of. (Te Tari Toko i te Ora.) The principal functions of the Department of Social Welfare are: (a) to administer the Department of Social Welfare Act 1971, the Children, Young Persons and their Families Act 1989, Parts I and III of the Social Security Act 1964, and to provide for the effective administration and servicing of the War Pensions Act 1954, the Rehabilitation Act 1941, and the Disabled Persons Community Welfare Act 1975; (b) to advise the minister on the development of social welfare policies; (c) to provide such social welfare services as the minister may from time to time direct; (d) to provide for the training of persons to undertake social welfare activities; (e) to maintain close liaison with and encourage co-operation and co-ordination among any organisations and individuals engaged in social welfare activities; and (f) to undertake and promote research into aspects of social welfare. See chapter 7, Social welfare.

State Insurance Office. The State Insurance Office transacts all classes of fire, accident, and marine insurance. Its function is to maintain a competitive insurance service. It also administers the Export Guarantee Office, which provides credit insurance for exporters. In May 1990 the Government announced the sale of the office to the Norwich Union Life Insurance Society.

State Services Commission, Office of the. (Te Kōmihana o ngā Tari Kāwanatanga.) See ‘State Services Commissioner’ above.

Statistics, Department of. (Te Tori Tatau.) The main functions of the department are: (a) to provide a statistical service relevant to the needs of governmental and community users, covering economic, demographic, and social activity; (b) to advise the Minister of Statistics on statistical policy matters; (c) to define and promote standard concepts, procedures, definitions, and classifications for use in official statistics; (d) to examine proposals by government departments for commencing or commissioning new statistical surveys, and to prepare submissions to the Minister of Statistics for approval or otherwise; (e) to review the collection, compilation, analyses, abstraction, and publication of official statistics produced in both the department and other government departments; and (f) to maintain liaison with international organisations or agencies requiring or making use of New Zealand official statistics.

Survey and Land Information, Department of. (Te Puna Kōrero Whenua.) The department is the principal government (civil and military) survey and mapping, and land information agency. In 1990 it celebrates the 150th anniversary of the New Zealand Surveyor-General. The department's work includes control surveys as the basis for cadastral surveys and basic topographic mapping, land title surveys, investigations into the status of Crown land and Maori land, large scale topographical surveys for engineering and management purposes, land development servicing, fixing of marine and air navigation aids, aerodrome obstruction surveys earth deformation studies, environmental planning of land, and a graphic support for the electoral system.

The main acts administered by the department are the Survey Act 1986, the New Zealand Geographic Board Act 1946, and the Crown Grants Act 1908. Proposals for the Reserves and Other Lands Disposal Bill are also collated by the department each year. See also section 14.1, Land resources and ownership.

Tourist and Publicity Department, New Zealand. The main functions of the New Zealand Tourist and Publicity Department are to promote travel to, within, and beyond New Zealand; to develop domestic tourism and stimulate off-season travel; to promote New Zealand overseas in the interests of tourism industry development; to administer schemes for financial assistance for the provision of tourist facilities and to undertake research into overseas tourism markets and into domestic tourism. It also provides research services for the New Zealand Tourism Council, an advisory body reporting and making recommendations to the Minister of Tourism on all aspects of tourism. See also section 11.6, Tourism.

Trade and Industry, Department of. The Department of Trade and Industry was disestablished on 30 November 1988. Responsibility for international trade relations passed to the newly-formed Ministry of External Relations and Trade; the division known as the New Zealand Trade Commission was merged with the Market Development Board to become the New Zealand Trade Development Board; and responsibility for a range of business-related work passed to the Ministry of Commerce.

Transport, Ministry of. (Te Manatū Waka.) The ministry' is responsible for promoting safe and efficient transport in New Zealand.

In 1988 the ministry's eight divisions (four operational and four support) were reorganised into four independent divisions: land transport, air transport, maritime transport and the New Zealand Meteorological Service. A small corporate head office was also created to provide support to the chief executive. (See chapter 20, Transport and communications.)

The Meteorological Service is responsible for providing information and advice to all sections of the community on the atmosphere, environment, weather, climate conditions, and pollution of the air. It also promotes meteorological research and aereal science, and advises the Government on meteorological matters.

Treasury. The principal functions of Treasury are to: provide the Government with independent economic and financial advice; implement the Government's economic and financial policies; control and account for the receipt and payment of government finances; and to provide financial information on the operations of the Government.

The Treasury assists informed public discussion of economic and financial matters, subject to the discretion required by its constitutional position, and administers the coinage. It also includes the Government Actuary's Office.

Valuation New Zealand. The major activity of the department is to prepare valuation rolls for all districts in New Zealand, to keep these rolls up to date with changes in property holdings, ownership, occupancy, and development, and to revise the values at not more than five-yearly intervals. Since 1988 the department has been progressively introducing a three-yearly cycle. Between the five-yearly general revaluations, current market values of individual properties are assessed as required. Values set by the department are used by other authorities to levy rates, land tax, estate, stamp and gift duties, and also by most government departments and agencies involved in land transactions. The department does research work on real estate markets and compiles section, house, and farmland price indexes. It provides an advisory service to local authorities on all matters relating to rating. The department's extensive property record system is used to furnish data for land use, town planning and similar surveys both to local authorities and other public sector organisations. See section 14.1, Land resources and ownership.

Women's Affairs, Ministry of. (Te Minitatanga mō ngā Wāhine.) This ministry was established in 1984 to assist the Government to improve the status of women and to work towards the achievement of equality in all spheres of social, political and economic activity. The ministry's primary function is to advise the Minister of Women's Affairs. In carrying out this function the ministry provides specialist advice on legislative and other policy matters affecting the status of women and undertakes educational and informative programmes designed to increase women's knowledge of and familiarity with the scope and processes of public policy-making (see section 6.3, Human rights, immigration and citizenship).

Youth Affairs, Office of. (Te Tari Taiohi.) This office was established on 1 July 1989 to provide a co-ordinated and informed approach to the development of government policies, services, and legislation affecting youth.

Non-departmental public bodies (quangos)

In addition to the state service organisations there is a multitude of advisory bodies, statutory corporations, companies, councils, commissions, committees, tribunals and other organisations loosely connected to the Government.

They are popularly known as quangos (quasi-autonomous non-government organisations) and include: (a) some public corporations; (b) agricultural marketing boards; and (c) other non-departmental public bodies such as: (i) bodies with executive, administrative, regulatory, or commercial functions; (ii) bodies whose role is to advise ministers or departments; and (iii) tribunals and other judicial bodies.

These types of organisations have been established for various reasons such as: independence from political control and direct ministerial responsibility, freedom from departmental procedures and controls; impartiality in carrying out regulatory functions; participation of non-departmental personnel in advisory and decision-making functions; and representation of special interests in administration.

New Zealand Planning Council

The Planning Council provides a focus for better information and consultation on the key medium-term issues in New Zealand's development. It was set up in 1977 as a result of recommendations by a Task Force on Economic and Social Planning which aimed to produce a more relevant planning framework for New Zealand. The New Zealand Planning Act 1982 provided the basis for the council to be independent of government in its choice of work and in publishing its reports. The council's main task is to monitor and report on trends, prospects, issues, and options in relation to social, economic and cultural development. An amendment passed in 1987 added environmental development to the council's sphere of operation. This amendment also gave the council the status of body corporate and made several changes which enhance the independence of the Planning Council. As well as reporting directly to the Government and working with government departments, the council uses published reports to foster understanding and discussion of issues among private organisations and the public generally.

The council itself has 12 members, including two co-opted members, drawn from different disciplines and areas of interest. The membership therefore reflects wide experience in many fields rather than representing particular sectional interests. A minister of the Crown nominated by the Prime Minister is a member of the council in an ex-officio capacity. There is also a full-time multi-disciplinary secretariat of around 17 people and a network of about 100 people are involved in monitoring and support groups.

The council's work is built around these expert monitoring and support groups. An Economic Monitoring Group (EMG), analyses and stimulates discussion on issues of continuing concern in management of the economy. A Population Monitoring Group (PMG) identifies important population issues, monitors trends, and examines their implications for planning and policy-making. The Social Monitoring Group (SMG) documents trends relevant to social development in New Zealand, explores their implications and significance and comments on the social implications of economic policies. The Income Distribution Group monitors aspects of income and wealth distribution in New Zealand.

The Maori Round Table reviews changes in policy on Maori matters and in 1990 will concentrate on Treaty of Waitangi issues. The National Sectoral Programme Producers forecasts, after consultation with industry, using computerised economic models. The Employment Programme is currently examining trends and information with the goal of developing policies to return New Zealand to full employment. The Environmental Programme monitors natural resources and the development of environmental policy.

During 1989 the council concentrated on two key issues, the Treaty of Waitangi and in particular Iwi development, and employment.

Also during 1989 the council published six overview reports. These were; From Birth to Death II (SMG Overview Report); For Richer or Poorer (IDG Overview Report No. 1); Prospects: Economic and Sectoral trends to 1997 (NSP); Diversity and Change: Regional Populations in New Zealand (PMG Report No. 5); The Economy in Transition: Restructuring to 1989 (EMG Report No. 9); Work Today: Employment Trends to 1989 (EWS Report).

A number of special interest papers were also published.

Controller and Auditor-General

The Controller and Auditor-General is an officer of the Crown appointed by the Governor-General under the Public Finance Act 1977. Much like the judiciary, he or she is independent of the executive government and can only be removed from office by the Governor-General upon an address from the House of Representatives. There is also a Deputy Controller and Auditor-General, whose mode of appointment and tenure of office are the same. The Controller and Auditor-General, and persons acting under delegation from him or her, are collectively called ‘the Audit Office’. No minister is in any way responsible for the carrying out or exercise by the Audit Office of its functions, duties and powers.

The constitutionally important role of the Audit Office is to act as a monitor on behalf of Parliament, and take part in the procedures laid down in the Public Finance Act 1989 to control issues of money out of the Crown Bank Account. The Audit Office has to be satisfied that all issues from the Crwon Bank Account to meet the Government's expenditure requirements are within the appropriations and other authorities granted by Parliament. This role is crucial to the ability of Parliament to control the supply of funds to the Crown, and in certain circumstances the Audit Office may prevent the issue of money.

The Audit Office audits the financial statements of government departments, local authorities, and most government-controlled corporations, boards and companies. As auditor of organisations in the public sector, the Audit Office plays a key part in the process of accountability by those organisations, and accordingly it has a range of responsibilities much more extensive than that accepted by auditors whose role is confined to the traditional financial audit. In addition to carrying out audits leading to the expression of an opinion on financial statements, the Audit Office conducts periodic reviews of financial control systems and of selected programmes or operations to ascertain whether resources have been applied effectively and efficiently in a manner consistent with the policies of the governing bodies.

The Audit Office also places considerable emphasis on reporting the results of its work. The most visible result of that emphasis is the reports tabled in Parliament each year, which deal with issues ranging from those arising from particular audits to matters concerning financial management and administration in the public sector.

To enable it to carry out its functions, the Audit Office has a number of powers. These include rights of access to the books, accounts, and property of its clients, and the right to require persons to supply information or deliver up books and accounts in their possession or under their control.

The Controller and Auditor-General has no general power of sanction to remedy shortcomings discovered during an audit. The principal recourse is to report to the management of the organisation either by letter or in the formal audit opinion on financial statements, to a minister, or to Parliament and its select committees. If there is a deficiency or loss of public money or stores, the Controller and Auditor-General has the power to surcharge the persons responsible to recover the amount involved. This power is rarely used.

Official information

The Official Information Act 1982 is based on to the principle that information shall be made available unless there is good reason for withholding it. It establishes a flexible mechanism, capable of contributing to and being responsive to changing altitudes and circumstances, and leading to increased availability of information. The purposes of the Act are: (a) to increase progressively the availability of official information to the people of New Zealand to encourage participation in the making and administration of laws and policies; and to promote the accountability of ministers and officials, and thereby enhance respect for the law and promote the good government; (b) to provide for proper access by each person to official information relating to that person; and (c) to protect official information to the extent consistent with the public interest and the preservation of personal privacy.

With the exception of the Parliamentary Service, the Act covers all government departments—but it does not include courts, tribunals (in relation to their judicial functions), or some other judicial bodies. The Act also covers state-owned enterprises, and a range of statutory bodies.

In addition, statutory boards and all local authorities are now covered by official information legislative requirements, either in the form of the Official Information Act 1982 or the Local Government Official Information and Meetings Act 1987.

The acts provide special rights of access to personal information, which means any official information held about an identifiable person. A ‘person’ is defined as including a sole corporation and a body of persons, whether corporate or unincorporate. Where it is necessary to make a distinction between a human being, and other entities legally described as ‘persons’, the former is referred to as a ‘natural person’.

Withholding information. In legislating for increased openness in the release and dissemination of information. Parliament recognised that there may be good reasons for withholding some information. The criteria which may justify not releasing information are set down in sections 6 and 7 of the Official Information Act 1982 and cover information which, if released, would be likely to prejudice: (a) the security, defence, or international relations of New Zealand; (b) the entrusting of information to the Government of New Zealand on a basis of confidence by the government or a government agency of another country, or any international organisation; (c) the maintenance of law and order; (d) the safety of any person; (e) the economic interests of New Zealand; and (f) the security or defence of the Cook Islands, Tokelau, Niue, or the Ross Dependency. Section 9 sets out other good reasons for withholding official information, unless in the circumstances of the particular case the withholding of that information is outweighed by other considerations which render it desirable in the public interest to make that information available.

Applications for access. Requests for information do not have to be made in any prescribed form. They may be made by telephone, in person, or in writing. Requests should however provide sufficient detail to allow the relevant material or documents to be identified. Sometimes applicants will need assistance with this task and the Act makes the provision of reasonable assistance a duty. Information guides concerning access to personal and official information are available. Organisations covered by the Act are required to respond to requests within specified time limits.

To assist the lodging of requests, reference can be made to the Directory of Official Information, published every two years and available at public libraries and Citizens' Advice Bureaux. The directory gives a complete list of organisations covered by the Act, their structure and function, a general description of all kinds of documents held; a list of all manuals, and similar types of documents which contain policies, principles, rules, or guidelines, in accordance with which decisions are made; and how to obtain access to information, including details of contact officers.

Review by an ombudsman. The Ombudsman can review a decision to refuse information. There is no charge and the investigation is private. The Ombudsman's formal recommendations are binding unless overridden by a minister in accordance with a formal procedure. That procedure requires that where a minister declines to accept an ombudsman's recommendation, the decision, the grounds for it, and (except on the grounds of national security), the source and purport of any advice on which it was based are to be published in the New Zealand Gazette. If an ombudsman concludes that any complaint made under the Act cannot be sustained, he or she will explain the reasons to the complainant.

Ombudsmen

The position of Parliamentary Commissioner for Investigations (Ombudsman) was created in 1962. Until 1968 the principal function of the Ombudsman was to enquire into complaints relating to administrative decisions of government departments and related organisations. In 1968 the jurisdiction was extended to hospital boards and education boards. Under the Ombudsmen Act 1975 the jurisdiction was further extended to all local authorities. Under the 1975 Act, provision was made for the appointment of a Chief Ombudsman and one or more other ombudsmen, whose appointments could be permanent or temporary.

Ombudsmen's investigations are conducted in private and an ombudsman may decide not to investigate a complaint where there appears to be an alternative administrative avenue of redress available to the complainant; where the complaint relates to a matter which has been within the complainant's knowledge for more than 12 months; where the complaint is trivial; or where the complainant has not a sufficient personal interest in the subject-matter of the complaint. The Ombudsmen have no authority to investigate certain complaints, for example, complaints against private companies and individuals, decisions of judges, complaints directed at ministerial decisions, or at the full council or board of a local organisation. However, an ombudsman may investigate recommendations made to a minister by any government department, organisation or employee, or to a full council by any committee, sub-committee, officer, employee, or member. An ombudsman may not investigate a complaint where the complainant has a statutory right of appeal on the merits of the case to a court or statutory tribunal, unless there are special circumstances why it would not be reasonable to expect that person to have exercised the right of appeal.

Where an ombudsman forms the opinion that a complaint can be sustained, he or she reports his or her opinion to the government department or government organisation concerned with any recommendation that he or she may make for remedial action. A copy of the report is also made available to the responsible minister. In the case of a local organisation, the ombudsman reports the opinion to that organisation and makes a copy of his report available to the mayor or chairperson.

The Ombudsmen also have certain responsibilities under the Official Information Act 1982 and Local Government Official Information and Meetings Act 1987. On receipt of a complaint an ombudsman has a responsibility to investigate any decision made on a request for information: for example, a refusal of the whole or part of the request; or a decision on what charge is to be made for providing the information. An ombudsman may also investigate undue delays in responding to requests.

Table 3.12. COMPLAINTS TO THE OMBUDSMEN, 1989*

Action on complaintOmbudsmen
Act 1975
Official
Information
Act 1982
Local Government
Official Information
and Meetings Act 1987

* Year ended 31 March.

Source: Office of the Ombudsmen.

Declined, no jurisdiction315202
Declined or discontinued section 17430816
Resolved in course of investigation19621341
Resolved informally805014
Sustained, recommendation made60153
Sustained, no recommendation made5015
Not sustained36610417
Formal investigation not undertaken, explanation, advice, or assistance given5968914
Still under investigation as at 31 March52517930
                        Total2 618766127

3.4 Local government

New Zealand has a separate system of local government, made up of many local authorities. It is mainly independent of the central executive government. However, it has a subordinate role in the constitution because the powers of local authorities are conferred on them by Parliament, and do not originate in the authorities themselves. Local authorities fall into three categories: regional authorities, territorial authorities, and special purpose authorities.

Many territorial authority areas also contain one or more communities, administered by community boards. These are not separate local authorities. The boards have a statutory role of advocacy for their communities and also have such powers as may be delegated to them by their parent territorial authorities.

Local government in general is characterised by six principles:

  • Every local authority is created by act of Parliament (either by a special or local statute or, more commonly, general legislation);

  • Every local authority has its powers defined in the Act under which it is established, and under other general local government legislation;

  • Each local authority has a specific district in which it operates;

  • Every local authority is controlled by its own council or board;

  • All local authorities, except for area health boards (which are totally funded by central government), rely on one or more of the following sources of funding: local taxes on land (rates); levies on other local authorities; and/or charges derived from trading utilities under their control; and

  • All local authorities can determine their own expenditure priorities, and are free to set their own overall levels of expenditure except for area health boards.

Local government in New Zealand is not involved in the funding, administration or management of education, social welfare, police, traffic control and enforcement, or urban fire services. These services are either the responsibility of central government, or specialised agencies closely associated with central government. For example, urban fire services are provided by the New Zealand Fire Service, and education is provided through school boards of trustees which are funded by central government.

The emphasis in local government is on local accountability to electors. This precludes central government from becoming directly involved in local government decision-making. The decisions of local authorities cannot be reviewed or overturned by central government. Although area health boards are funded from central government, they are locally responsible for meeting the health needs of their districts.

Although decisions by local authorities are not subject to review by central government, local authorities are subject to other types of review. There is provision for the Ombudsmen to investigate allegations of maladministration in local government. There is also provision for the Controller and Auditor-General to investigate financial misconduct or conflict of interest on the part of local government officers or elected members. Such investigations can result in automatic forfeiture of office and/or prosecution under the Local Authorities (Members Interests) Act 1968 or the Local Government Act 1974. There is further scope for review of local government decisions in a limited number of areas by appeal to the courts or various judicial tribunals. For example, the Planning Tribunal is the appeal body on land-use planning and related issues.

Local authorities are subject to the general power of judicial review by the High Court. The Administrative Division of the High Court has jurisdiction to consider appeals from the Planning Tribunal on points of law, in addition, the Administrative Division has general jurisdiction to review the exercise of any statutory power by any local authority. Under the Bylaws Act 1910, the Administrative Division of the High Court can quash or amend local authority bylaws on the grounds that they are ultra vires the local authority, repugnant to the laws of New Zealand, or unreasonable.

The ability of a local authority to incur debts is also subject to control. All local authorities were subject to loan-raising controls exercised by a Local Authorities Loans Board. Since 1986, however, many local authorities and categories of loans have been exempted by central government on the recommendation of the board.

The provisions of the Local Government Official Information and Meetings Act 1987 parallel closely those of the Official Information Act 1982 (see above section). Local authorities are required to supply official information on request, subject to certain safeguards, and give proper access to any person to official information relating to them. The Act is intended to promote more open conduct of local authority meetings and protect official information consistent with the public interest and personal privacy. The 1987 Act meant that all local authorities are covered by some form of official information legislation.

Local government reform

Until 1989 the last major reform of the system of local government in New Zealand had occurred in 1876 with the abolition of the provinces.

Before 1876, local administration had been carried out by municipal councils in a handful of major settlements (11 in 1865, 36 in 1876), and by numerous road boards (314 in 1876). Outside the few municipalities, most local functions other than roading were carried out, if at all, by six (later up to nine) provincial councils.

With the abolition of the provinces, the country was divided into 63 counties (originally 39 had been proposed) and the 45 municipalities already in existence. The number of authorities grew rapidly, and by 1920 there were 129 counties and 117 municipalities. By 1950, the numbers respectively were 125 and 134. From 1950 the numbers gradually decreased as the result of reorganisation schemes organised by the Local Government Commission.

Parallel to the growth of these multi-purpose territorial authorities, a large number of special purpose local authorities grew and multiplied. The first were harbour boards, of which the first was established in Auckland in 1871. Others have included hospital boards, rabbit boards (later termed pest destruction boards), land drainage boards and electric power boards. By 1950, there were 537 special purpose authorities. The major reason for their development was the view that the many relatively small territorial authorities had neither the resources nor the inclination to undertake and develop many newly required services and activities.

The growth of particularly special purpose authorities gave rise to a situation of confusing, multifarious and often irrelevant local authority boundaries when compared to the patterns of settlement and the actual delivery of services.

Various attempts at reform between 1876 and 1989 met with little success, and the only major change to the structure of local government during that time was the establishment of regions and regional authorities (see section on regional government below).

On 17 December 1987, as part of a government economic statement, the Minister of Local Government announced a complete and comprehensive review of all aspects of local government—functions, structure, funding, organisation and accountability. This would be the first time that all aspects of local government were looked at in an integrated manner.

Organisations subject to review included not only regional and territorial authorities but also special purpose authorities and other sub-national organisations. However, a number of special purpose authorities, including education, electric power, hospital, and area health boards, were later excluded from the remainder of the reform programme.

The review was to be undertaken in two phases: policy development and implementation.

Policy development. To guide the review, the Government established a Cabinet Committee on Reform of Local Government and Resource Management Statutes. Also established, to report to the Cabinet committee on the issues involved, was an Officials Co-ordinating Committee on Local Government.

In February 1988 the committee of officials published a general discussion document on all aspects of local government, and invited submissions from organisations and individuals. These submissions were then reported to the Cabinet committee.

In August 1988 the Minister of Local Government issued a policy statement outlining the Government's decisions on the issues raised in the discussion document and the submissions. Significant features of the policy—prepared as a set of legislative provisions in the Local Government Amendment Act (No. 3) 1988—were:

  1. There would be two principal types of local authorities:

    1. Directly elected regional councils with a major role in resource management functions; and

    2. Directly elected territorial authorities responsible for broadly the same range of functions as at present; and

  2. Special purpose authorities would exist only in a limited range of circumstances.

The policy statement also set the programme for the implementation of the reform, which would proceed along two paths: reform of the structure of local government by the Local Government Commission; and a concurrent reform of the legislation applying to local government. In particular it was stated that future legislation would require local authorities to make appropriate organisational and accounting arrangements to ensure clear separation between regulatory and service delivery functions, and between trading and other activities.

Reorganisation. Also in August 1988, all reorganisation schemes in progress were suspended and the Local Government Commission was required to prepare final reorganisation schemes for the reform of the structure of local government. The object was to enable substantial reform of local government to take place before the next triennial general elections in October 1989.

There was no longer any right for public surveys to ascertain opposition to the commission's reorganisation proposals. Also, the formal objection procedures for local authorities were replaced by a requirement for the commission to consult with all local authorities affected by a scheme.

With the exception of some provisions relating to regional government, the Act left a wide area of discretion to the commission to prepare reorganisation schemes to improve local government in New Zealand. (Chatham Islands County was specifically placed outside the jurisdiction of the commission and as mentioned above, special purpose authorities, such as hospital and area health boards, electric power boards and licensing trusts, did not fall within it.)

In preparing its final reorganisation schemes, the commission was directed to observe a number of provisions set out in a schedule to the Act. The most significant of these was the requirement that the boundaries of every region conform, as far as practicable, to water catchment areas. This recognised a new emphasis intended for regional councils in resource management.

In fixing local authority boundaries the following factors were to be considered:

  • The area of impact of the functions, duties and powers of the local authority concerned;

  • The area of benefit of the services provided;

  • The likely effect on any local authority of the exclusion of any area from its district:

  • Community of interest; and

  • The efficient and effective exercise of the functions, duties and powers of the local authority concerned.

Apart from a standard set of statutory functions listed in the Act, the commission was required to prescribe the functions, duties, and powers of each local authority. It was also required to divide each territorial authority district with a population of more than 20 000 into electoral wards.

Before releasing its final, reorganisation schemes, the commission issued ‘possible’, ‘indicative’ and ‘draft’ schemes, and at each stage requested submissions from local authorities affected. Following the release of draft schemes in December 1988, the commission heard submissions from each local authority affected which desired a meeting.

The commission's decisions on the restructuring of local government were contained in the final reorganisation schemes, issued on 12 June 1989. The main features were:

  1. A reduction in the number of regions from 22 to 14, with directly elected regional councils in 13 of those regions (the Gisborne region is unique in being administered by a district council which also has regional powers) undertaking statutory functions such as regional planning and civil defence, maritime planning, and those functions formerly exercised by catchment boards, pest destruction beards, noxious plants authorities and, in many cases, harbour boards;

  2. A reduction in the number of territorial authority districts from 204 to 73 (excluding Chatham Islands County);

  3. A reduction in the number of special purpose authorities under the commission's jurisdiction from around 400 to seven: and

  4. Provision for 159 community boards.

Legislative reform. The Local Government Amendment Act (No. 2) 1989 inserted new parts in the Local Government Act 1974 dealing with the general structure of local government, its constitutional and electoral basis, and its organisational and accountability provisions.

For the first time, the legislation includes a statement on the purposes of local government, by which local authorities are to provide for; the recognition of the existence of different communities in New Zealand; the efficient and effective exercise of local government functions, duties and powers; and the effective participation of total people in local government.

Various provisions for sub-district government (community councils and district community councils) have been abolished and replaced with provisions for a single structure known as a community board (see below).

The Act contains provisions relating to the optional ‘corporatisation’ of local authority trading activities, excluding airports, seaports and any energy supply operation. Corporatisation is discretionary, but local authorities must consider any benefits, and be able to justify a decision—to the public or to competitors—not to corporatise. The Act has also been amended to require: (a) the corporatisation of any local authority organisation carrying out subsidised road construction work; (b) the sale or other disposal by regional councils of any interest in the provision of public passenger transport; and (c) the corporatisation of any territorial authority public transport undertaking.

Local authorities are required (from 1 July 1990) to conduct their affairs in a transparent and open manner. They are required by law to establish clear objectives and resolve conflicting objectives in a clear and proper manner, separate their regulator)' and non-regulatory activities, and keep local communities adequately informed of their activities. Emphasis is placed on setting objectives and measuring performance, with each local authority being required to, firstly, prepare a report outlining what it proposes to do over the next year, and how this will be financed, and, secondly, at the end of the year, report on what it has achieved in terms of its objectives. Clearer lines of accountability are also required and each local authority must operate a personnel policy that complies with the principle of being a ‘good employer’ set out in the Labour Relations Act 1987.

At the time of going to press (April 1990) three main areas remained to be covered in the reform of local government: Maori involvement in local government and the application of the principles of the Treaty of Waitangi; local authority funding; and local authority functions.

Territorial authorities

Territorial authorities in New Zealand are directly elected, general purpose authorities with responsibility for a wide range of functions. These include: reading, water supply, sewage disposal, rubbish disposal, parks and reserves, libraries, community development, land subdivision, land-use planning, pensioner housing, health and building inspection, urban passenger transport, parking controls, and civil defence.

The present system of territorial government in New Zealand has evolved since the abolition of the provinces in 1876 (see above). In that year a system of locally-elected general purpose territorial local authorities funded from local taxes on land (rates) was established. Municipalities were provided for in urban areas, and the remainder of North, South and Stewart Islands was divided into counties. Counties were later established for the Chatham Islands, Great Barrier Island, and Waiheke and nearby islands. In sparsely settled counties, councils were not established immediately, and the last to come under the control of a county council was Fiord County in 1981, when it was merged with Wallace County. Only some small, generally uninhabited, offshore islands remain outside territorial authority boundaries.

Prior to the reform of local government referred to above, New Zealand was covered by 205 elected territorial authorities of five different types: borough, city, county, district and town councils; all constituted under the Local Government Act 1974.

Borough and city councils. Borough councils looked after the needs of urban areas. Until 1978, there had to be a population of at least 1500 with an average density of at least one person per 4000 square metres before a new borough could be constituted. There were 78 borough councils immediately prior to 1 November 1989.

In legal terms, a city was a borough which had a population of more than 20 000 and had been designated a city by proclamation. There were 28 city councils prior to November 1989. Every borough and city council was headed by a mayor, who was elected by the residents. Except for specific responsibilities under the Civil Defence Act 1983, the legal powers of mayors are no greater than the powers of council members, apart from presiding at all council meetings.

County councils. County councils looked after the needs of rural areas. They were headed by a chairman, who was elected by council members every three years following the triennial general elections of that council. There were 67 county councils prior to November 1939.

District councils. Many territorial authorities were neither entirely rural or entirely urban, and the district council type of authority was introduced in 1974 in recognition of this fact. There were 31 district councils prior to November 1989. A district council could either be formed by a Local Government Commission reorganisation scheme when boroughs, counties or cities united, or when a borough or county council decided to redesignate itself as a district council. Some district councils were headed by a chairman, who was elected in the same manner as the chairman of a county council, while other district councils had a mayor, who was elected by residents every three years in the same manner as mayors of borough or city councils.

Town councils. Town councils looked after the needs of some urban areas that did not have enough residents to justify the forming of a borough, though legally it has not been possible to constitute a new town council since 1978. Only the Hikurangi Town Council still remained prior to November 1989. Town councils were headed by a chairperson, who was elected by the council members every three years.

Cities and districts at 1 November 1989. After the reform of the structure of local government outlined above, territorial government now comprises only two types of councils; city councils and district councils. (The Chatham Islands County Council remains distinct and is undergoing separate review).

The Local Government Commission's final reorganisation schemes constituted 14 cities and 59 districts, with councils all headed by mayors.

New cities can now only be constituted by a reorganisation scheme where a new district is formed and that district; has a population of at least 50 000, is predominantly urban, and is a distinct entity and a major centre of activity within the region.

Table 3.13. CITIES AND DISTRICTS CONSTITUTED ON I NOVEMBER 1989

Cities/districtsCouncil
members
North Island
North Shore City18
Waitakere City16
Auckland City24
Manukau City24
Hamilton City17
Napier City12
Palmerston North City15
Porirua City13
Upper Hutt City12
Lower Hutt City15
Wellington City21
Far North District13
Whangarei District13
Kaipara District10
Rodney District10
Papakura District12
Franklin District14
Waikato District14
Waipa District13
Otorohanga District10
Waitomo District10
Thames-Coromandel District13
Hauraki District12
Matamata-Piako District12
South Waikato District14
Taupo District15
Tauranga District14
Western Bay of Plenty District12
Rotorua District16
Whakatane District15
Kawerau District10
Opotiki District10
Gisborne District16
Wairoa District9
Hastings District14
Central Hawkes Bay District12
New Plymouth District16
Stratford District12
South Taranaki District12
Ruapehu District14
Wanganui District14
Rangitikei District11
Manawatu District13
Horohenua District12
Tararua District12
Kapiti Coast District14
Masterton District15
Carterton District12
South Wairarapa District10
South Island
Nelson City14
Christchurch City24
Dunedin City21
Tasman District16
Marlborough District17
Kaikoura District7
Buller District11
Grey District12
Westland District12
Hurunui District9
Waimakariri District13
Selwyn District13
Bank's Peninsula District10
Ashburton District18
Timaru District16
Mackenzie District10
Waimate District13
Waitaki District15
Queenstown-Lakes District15
Central Otago District15
Clutha District15
Southland District15
Gore District11
Invercargill District15
Source: Department of Internal Affairs

Community government

Prior to 1 November 1989, the system of sub-district government in New Zealand consisted of a number of communities with either community councils or district community councils. These bodies were not local authorities and were established within the districts of their parent territorial authorities.

There were a number of restrictions upon the constitution of communities, relating, in some cases, to their population, to the nature of particular territorial authorities, and to their location within the districts of territorial authorities.

Community councils were not represented directly on their parent territorial authorities. They derived their powers by discretionary delegation from their parent authorities, except that powers dealing with finance, staff and planning could not be delegated. The general purpose of community councils was to co-ordinate and express the views of the community on any matter of concern to it and to undertake, encourage and co-ordinate activities for their general wellbeing. Community councils were entitled to have one of their members attend meetings of their parent authorities, with speaking rights on community issues. There were 118 community councils prior to November 1989.

District community councils could be established only for communities with populations of no fewer than 1500 and were represented directly on their parent territorial authorities. District community councils could exercise all the powers and functions of their parent authorities, except for certain reserved powers dealing with finance, staff and planning. There were 13 district community councils prior to November 1989.

Community boards. With the passing of the Local Government Amendment Act (No. 2) 1989, community boards can now be established anywhere in New Zealand to serve any number of inhabitants, although the consent of the Local Government Commission is required. The commission's final reorganisation schemes abolished all existing community councils and established 159 new community boards. Most of these communities cover the entire area of a ward or wards, but some only-cover part of a ward.

Community boards must consist of between six and 12 members, with at least six elected. Boards may include up to four appointed members, chosen from among the elected representatives of the territorial authority representing the ward or wards in which the community is situated.

The purposes of community boards are:

  • The consideration of and reporting on all matters referred to it by the territorial authority or any matter of interest or concern to the board:

  • The overview of road works, water supply, sewerage, stormwater drainage, parks, recreational facilities, community activities, and traffic management within the community;

  • The preparation of an annual submission to the budgetary process of the territorial authority for expenditure within the community; and

  • Communication with community organisations and special interest groups within the community.

Other functions may be delegated to a community board by the parent territorial authority, but such functions as borrowing money, levying rates, making bylaws, the owning of property and appointing staff cannot be delegated.

Regional government

Prior to the reform of the structure of local government, all of New Zealand, except for the Great Barrier Island and Chatham Islands Counties, was divided into 22 regions, administered by three regional councils and 19 united councils.

The first unit of regional government in New Zealand was the Auckland Regional Authority, established in 1963 as a directly elected regional authority to carry out a range of functions in the Auckland metropolitan area and adjoining rural districts. The authority's functions included regional responsibility for urban passenger transport, planning, parks and reserves, urban water supply, drainage, refuse collection and disposal, reading, community development, civil defence, assistance to beach patrol and rescue services, and a regional orchestra. The Auckland Regional Authority was also the catchment authority for its region.

The Wellington Regional Council was established in 1980, and carried out catchment authority responsibilities in its region. It was also responsible for regional planning, civil defence, parks and reserves, urban water supply, forestry and urban public passenger transport planning. The Northland Regional Council was established in March 1987, through the union of the Northland United Council and the Northland Catchment Board.

Between 1977 and 1983, united councils were established in 20 regions (including the Northland United Council referred to in the previous paragraph). They were seen as providing a form of regional government for regions either unwilling to establish, or not warranting the expense of, a regional council. Particular features of united councils, which distinguished them from regional councils, were: (a) the members were appointed by the territorial authorities of the region, not elected; (b) the finance of the united council was by levy on the territorial authorities, not by rates; and (c) a united council required the prior consent of the majority of territorial authorities in its region before it could take on any new function.

Most united councils had their staff seconded to them by one of the territorial authorities of the region, which was known as ‘the administering authority’. Regional councils employed their own staff and resources.

Every united and regional council had three mandatory functions: regional planning, regional civil defence and petrol rationing planning. United or regional councils could also undertake functions relating to regional reserves, forestry, reading, and community development, with qualifications in some cases. They could, in certain circumstances, undertake the functions of a territorial authority or special purpose authority. United or regional councils were empowered to undertake, exclusively, any new regional function which was not already undertaken by any other local authority in the region, and could also enter into an agreement with a constituent authority to undertake any function of that authority where, in the opinion of either party, that function would be more effectively and economically undertaken by the regional body. Finally, united or regional councils could enter into agreements with the Crown whereby they could exercise any function or provide any service for the Crown.

The 1989 reform of the structure of local government saw the number of regions reduced from 22 to 14, and now only the Chathams Islands County, because of its isolation, remains outside any region. All regional authorities are now directly elected regional councils, with the normal powers described above and the additional powers of maritime planning, water and soil conservation, animal pest destruction and noxious plants control. Some regional councils have also been allocated other functions, such as those formerly undertaken by harbour boards (other than those functions of harbour boards transferred to port companies) and land drainage boards.

Table 3.14. REGIONS CONSTITUTED ON 1 NOVEMBER 1989

RegionCouncil
members

* District regional council.

Source: Department of Internal Affairs.

North Island
Northland12
Auckland28
Waikato16
Bay of Plenty12
Gisborne District*16
Hawkes Bay14
Taranaki11
Manawatu-Wanganui16
Wellington19
South Island
Nelson-Marlborough13
West Coast10
Canterbury17
Otago15
Southland15

Special purpose authorities

From the early 1870s, various special purpose local authorities were established to carry out specific tasks thought beyond the capacity or desire of territorial authorities. Special purpose authorities were charged with only one major function, and their boundaries often had little relationship to the districts of territorial authorities or other special purpose authorities in the same area. Sometimes territorial authorities undertook the same functions as special purpose authorities, or functioned as a special purpose authority under a different name.

Prior to 1 November 1989, the special purpose authorities included those administering harbours, hospital services, retail distribution of electricity, and soil conservation and river control. Other special purpose authorities were involved in water supply, urban drainage and transport, animal pest destruction, nassella tussock control, land drainage and, in some areas, the liquor and hotel trade.

However, many types of special purpose authorities were affected by the reform of the structure of local government. Of the around 400 special purpose authorities placed under the Local Government Commission's jurisdiction during the reform, only seven remain. Whole classes of special purpose authorities (most notably catchment boards, harbour boards, pest destruction boards and land drainage boards) disappeared on 1 November 1989. The functions of those authorities abolished were reallocated by the commission to either regional or territorial authorities. Area health boards, electric power boards and licensing trusts were among those not placed under the commission's jurisdiction.

Most special purpose authorities are directly elected, although a minority are indirectly elected as their members are representatives from other local authorities.

The major categories of special purpose local authorities remaining include 14 area health boards and 37 electric power boards. These categories are directly elected and are found throughout New Zealand.

There are various minor categories of special purpose authorities which are found only in some parts of New Zealand. These include 28 elected licensing trusts, two elected charitable land trusts and three museum trust boards.

Powers of local authorities

Local authorities derive their power from governing statutes. The Local Government Act 1974 is the main statute for territorial authorities, regional councils, and community boards. Special purpose authorities come under other statutes.

Several statutes apply to all local authorities, e.g., the Local Authorities (Members Interests) Act 1968, and the Local Authorities Loans Act 1956. Other statutes apply to territorial, regional and various other types of local authorities, e.g., the Rating Powers Act 1988, the Local Elections and Polls Act 1976, the Public Bodies Leases Act 1969, the Town and Country Planning Act 1977, the Public Works Act 1981, the Reserves Act 1977, the Health Act 1956, and the Local Government Official Information and Meetings Act 1987.

Local authorities' powers to levy local taxes on land (rates) are contained within the Rating Powers Act 1988. Local authorities can make bylaws within limits defined in their governing Acts. Special purpose authorities' bylaws must be approved by the Minister of Local Government. Territorial authorities and regional councils do not need approval from the minister if their bylaws have been made solely under the Local Government Act 1974, except for fire bylaws.

Local authorities can promote legislation about matters affecting areas within their jurisdiction which they are not empowered to deal with already. This legislation is of two main types: transient and permanent. Usually, routine matters, such as permitting the sale of a parcel of land, are included in a section of the annual Local Legislation Act. Where permanent or major additional powers are sought, a local bill must be prepared for the consideration of Parliament. If this is enacted it becomes a local Act, and applies only to the particular authority or authorities which promoted it.

Local government elections and membership

Local government elections are held on the second Saturday in October every third year. The next elections will be held in 1992. All regional council, territorial authority, special purpose authority and community board elections will be conducted at the same time.

Every territorial authority district with a population of 20 000 or more (prior to 1989 the figure was 70 000) must be divided into separate electorates, known as wards. Where a territorial authority has a population of less than 20 000, it may decide whether its district should be divided into wards, or whether all members should be elected from the district as a whole.

The districts of regional councils and most special purpose authorities are divided into separate electorates, which usually coincide with territorial district or ward boundaries. Regional council electorates are known as constituencies. Ward boundaries and the constituencies of regional councils, must be reviewed even' three years by their councils and finally determined by the Local Government Commission after consideration of various statutory factors. However, in accordance with particular legislation, the Auckland Regional Council's electorates coincide with the parliamentary electorates in the region.

Voting procedures. Any territorial authority may decide whether an election is to be conducted by attendance at a polling booth or by post. If the election is at a polling booth, the council may decide to conduct it over a period of not more than 11 consecutive days instead of on a single day. For the 1989 elections, however, the Local Government Commission determined that all elections (with the exception of the Chatham Islands County Council, which conducted its elections at polling booths) would be conducted by post.

The method of casting a vote is similar to parliamentary elections. The names of candidates are printed on the ballot paper and the elector must indicate on the paper the candidates he or she wishes to vote for. The number of candidates chosen must not exceed the number of positions available, as shown on the ballot paper. An elector may not allocate more than one vote for any candidate, nor is there any provision for an elector to indicate a preference where multiple candidates are voted for.

Local authority franchise. Every parliamentary elector is automatically qualified as an elector of a regional council, a territorial authority and a community board if the address at which the person is registered as a parliamentary elector is within a region, district, ward or community.

Ratepayer voting (the right to vote in as many territorial districts as one was a ratepayer) was discontinued by the Local Government Amendment Act 1986, which also ended the requirement that people often had to enrol separately for local government and parliamentary elections. Territorial authorities are responsible for compiling their own electoral rolls, and the data for these rolls must be taken from the computerised parliamentary electoral database.

Membership of local authorities. A parliamentary elector anywhere in New Zealand may stand for election for any local authority, although he or she cannot stand for election in more than one constituency of the same district. Only in licensing trusts is eligibility for membership still restricted to electors of that trust's district. The Local Government Amendment Act (No. 2.) 1989 provides that any person who is a parliamentary elector may be elected to any number or combination of regional councils, territorial authorities and community boards.

Vacancies in the elected membership of the council of the local authority may be filled either by election or appointment, depending on the Act under which the local authority is constituted. In the case of a territorial authority or regional council, a petition by 5 percent of the electors is sufficient to require a by-election. Extraordinary vacancies on the Auckland Regional Council must be filled by election. In the case of most special purpose authorities, any vacancy in membership is filled by appointment by the relevant territorial authorities. The number of women members of local authorities has increased steadily over recent years. Since the 1989 local government elections, nine of 73 mayoralties (four of the 14 cities and five of the 59 districts) are held by women.

Remuneration of members. Payment of mayors, chairpersons, and members of regional, territorial and special purpose authorities is governed by the Local Government Act 1974. Most boards and councils pay their chairperson or mayor an annual salary, while other members are paid a combination of a daily meeting allowance and an annual salary.

Rates of remuneration for members of local authorities are determined by the Minister of Local Government. Where appropriate, that minister must also consult with the minister who has some responsibility for a particular type of local authority, for example the Minister of Health in respect of remuneration for the members of area health boards. All remuneration rates determined by the minister are maxima so it is up to the discretion of the council or board to decide the actual remuneration rate within the prescribed limits.

Local Government Commission

The present (seventh) Local Government Commission comprises six members appointed by the Minister of Local Government. The commission's main function has always been to review the structure of local government and prepare reorganisation schemes for the constitution of new local authorities.

Prior to July 1988, amalgamations were largely voluntary and supported by the local authorities involved, as survey provisions meant that a reorganisation proposal voted against by more than 50 percent of the electors affected could not proceed. The present commission issued 24 final reorganisation schemes uniting local authorities or constituting new local authorities under these conditions.

The Local Government Commission played a major role in the implementation of the reform of local government described earlier in this section. The Local Government Amendment Act (No. 3) 1988 suspended existing reorganisation procedures (including surveys) and required the Commission to prepare final reorganisation schemes for the entire country by 1 July 1989, and this was completed by the month before.

With the completion of the necessary structural reform of local government, from 1 April 1990, the commission was reduced to three members. Future reorganisation proposals will largely be dealt with by local authorities themselves, and the commission's role will include the determination of the membership of regional and territorial councils, the boundaries of regional constituencies and territorial wards, and the representation of these constituencies and wards. The Commission will also consider, report, and make recommendations to the Minister of Local Government on other matters it considers appropriate, or as referred to it by the minister.

3.5 National emblems and anthems

New Zealand flag

Under the Flags, Emblems, and Names Protection Act 1981 the flag, previously known as the New Zealand ensign, was declared to be the national flag of New Zealand. It is the symbol of the realm, Government and people of New Zealand. The basis of the New Zealand flag is the Union Flag (Jack) in the upper left quarter, and on a blue ground to the right the Southern Cross is represented by four five-pointed stars with while borders.

New Zealand coat of arms

The New Zealand coat of arms was pictured and described as a frontispiece in the 1969 and earlier issues of the Yearbook. It appears on the title page and the spine of this volume.

The coat of arms is protected under the Flags, Emblems, and Names Protection Act 1981, and its lawful use is confined to official purposes.

National anthems

God Defend New Zealand, the words written by Thomas Bracken and the music composed by John J. Woods, was first performed in public in 1876. In 1940, the Crown acquired the copyright as part of New Zealand's centennial celebrations, and it was adopted formally as the New Zealand national hymn. In 1977 it was announced that, with the Queen's consent, the Government had decided that the national anthems of New Zealand be the traditional anthem, God Save the Queen, and God Defend New Zealand, both being of equal status as national anthems appropriate to the occasion.

In 1979 the Minister of Internal Affairs published a specially-commissioned arrangement of God Defend New Zealand more suited to general or massed singing than the original score, which lent itself best to solo or choral singing. The new arrangement was published as a supplement to the New Zealand Gazette dated 31 May 1979.

Table 3.15. ENGLISH AND MAORI TEXTS OF THE NEW ZEALAND ANTHEM

GOD DEFEND NEW ZEALANDAOTEAROA

1. God of nations at Thy feet

In the bonds of love we meet.

Hear our voices, we entreat,

God defend our free land.

Guard Pacific's triple star

From the shafts of strife and war,

Make her praises heard afar,

God defend New Zealand.

1. E Ihoa Atua,

O nga Iwi! Matoura,

Ala whaka rongona;

Me aroha roa.

Kia hua ko te pai;

Kia tau to atawhai;

Manaakitia mai

Aotearoa.

2. Men of ev'ry creed and race

Gather here before Thy face,

Asking Thee to bless this palce,

God defend our free land.

From dissension, envy, hate,

And corruption guard our state,

Make our country good and great,

God defend New Zealand.

2. Ona mano tangata

Kiri whero, kiri ma,

Iwi Maori Pakeha,

Repeke katoa,

Nei ka tono ko nga he

Mau e whakaanu ke,

Kia ora marire

Aotearoa.

3. Peace, not war, shall be our boast,

But, should foes assal our coast,

Make us then a mighty host,

God defend our free land.

Lord of battles in Thy might,

Put our enemies to flight,

Let our cause be just and right,

God defend New Zealand.

3. Tona mana kia tu!

Tona kaha kia u;

Tona rongo hei paku

Ki te ao katoa

Aua rawa nga whawhai.

Nga tutu a tata mai;

Kia tupu nui ai

Aotearoa.

4. Let our love for Thee increase,

May Thy blessings never cease,

Give us plenty, give us peace,

God defend our free land.

From dishonour and from shame

Guard our country's spotless name,

Crown her with immortal fame,

God defend New Zealand.

4. Waiho tona takiwa

Ko te ao marama;

Kia whiti tona ra

Taiawhio noa.

Ko te hae me te ngangau

Meinga kia kore kau;

Waiho i te rongo man

Aotearoa.

5. May our mountains ever be

Freedom's ramparts on the sea,

Make us faithful unto Thee,

God defend our free land.

Guide her in the nation's van,

Preaching love and truth to man,

Working out Thy glorious plan.

God defend New Zealand.

5. Tona pai me toitu;

Tika rawa, pono pu;

Tona noho, tana tu;

Iwi no Ihoa.

Kaua mona whakama;

Kia hau te ingoa;

Kia tu hei tauira;

Aotearoa.

Contributors

  • 3.1 Department of Justice.

  • 3.2 Clerk of the House of Representatives; Parliamentary' Service; Department of the Prime Minister and Cabinet; Department of Justice; Department of Internal Affairs.

  • 3.3 Office of the State Services Commission; government departments as listed; New Zealand Planning Council; Audit Office; Office of the Ombudsmen.

  • 3.4 Department of Internal Affairs; Local Government Commission.

  • 3.5 Department of Internal Affairs.

Historical

Department of Statistics/Claudia Orange; Department of Internal Affairs; Office of the Prime Minister and Cabinet: Office of the State Services Commission; Local Government Commission.

Further information

Constitution

Constitutional Reform: Reports of an Officials Committee. Department of Justice, 1986.

Introduction to New Zealand Legal System. Mulholland, R. D., Butterworths, 6th ed., 1985.

New Zealand: The Development of its Laws and Constitution. Robson, J. L. and others. Stevens, 2nd ed., 1967.

The New Zealand Constitution Scott, K. J., Oxford, Clarendon Press, 1962.

Parliament and the Cabinet

A Checklist: New Zealand Royal Commissions, Commissions and Committees of Inquiry, 1864–1981. New Zealand Library Association, 1982.

New Zealand Parliamentary Record 1840–1984. Wilson, J. O., Government Printer, 1985.

Parliamentary Bulletin. Government Printer (weekly when Parliament is in session).

Parliamentary Practice in New Zealand. McGee, D. G., Government Printer, 1985.

Report of Cabinet Office (Parl. paper G. 47).

Report of the Department of Internal Affairs (Parl. paper G. 7).

Report of the General Election 1987 and the Timaru By-election 1985 (Parl. paper E. 9).

Report of the General Election 1987: Amended Enrolment and Voting Statistics from the General Election as a Result of the Wairarapa Election Petition Judgement (Parl. paper E. 9).

Report of the Licensing Polls 1987 (Parl. paper E. 9B, 1987).

Report of the Royal Commission on the Electoral System; Towards a Better Democracy. (Parl. paper H. 3, 1986).

Standing Orders of the House of Representatives. Government Printer, 1986.

The Upper House in Colonial New Zealand. McLintock, A. H. and Wood, G. A., Government Printer, 1987.

Who's Who in the New Zealand Parliament. Parliamentary Service, 1987.

State sector

Directory of Official Information. Department of Justice (biennial).

Ninth Compendium of Case Notes of the Ombudsmen. Office of the Ombudsmen, 1989.

Reports of the Controller and Auditor-General (Parl. paper B. 28).

Report of the Ombudsmen (Parl. paper A. 3).

Report of the New Zealand Planning Council (Parl. paper D. 9).

Report of the State Services Commission (Parl. paper G. 3).

Tables of New Zealand Acts and Ordinances and Statutory Regulations in Force. Government Printer (annual).

All government departments and statutory organisations publish annual reports in the parliamentary paper series.

Local government

Local Authority Election Statistics. Department of Internal Affairs, 1985.

Reform of Local Government in New Zealand. Final Reorganisation Schemes for 14 Local Government Regions. Local Government Commission, 1989.

Report of the Department of Internal Affairs (Parl. paper G. 7).

Report of the Local Government Commission (Parl. paper G. 9).

Statement on Reform of Local and Regional Government by Minister of Local Government. Local Government Commission, 1988.

Synopsis of Submissions on Reform of Local Government. Department of Internal Affairs, 1988.

Chapter 4. International relations and defence

4.1 Relations with other countries

An independent New Zealand foreign policy dates from 1935. In 1943 the Government established a career foreign affairs service, and began to station its own diplomatic representatives overseas. The first expansion came in the 1950s with recognition that New Zealand security was bound up with South-east Asia, and diplomatic relations were established with five Asian countries. In the 1960s diplomatic posts were set up in Western Europe, as Britain negotiated its entry to the European Community. At the same time in the South Pacific, a number of posts were opened. In the 1970s and early 1980s the search for new trading opportunities led to the strengthening of posts in Asia and the Pacific, and new embassies in the Middle East. Latin America and China. Posts were re-opened in the Soviet Union and India. In 1986 a post was opened in Zimbabwe, and in 1987, one in Vanuatu. In addition to the 50 diplomatic and consular posts, multiple accreditation allows some New Zealand representatives to cover other countries from their bases.

The Ministry of External Relations and Trade has the primary responsibility for advising and assisting the Government on its relations with the outside world. This includes advising foreign governments of New Zealand's policies and keeping the Government informed of overseas developments affecting New Zealand's interests. Policy formulation is undertaken in relation to the country's economic, trade, political and security needs, and recommendations to the Government are prepared in close association with other government departments.

Other functions include the administration of the official programme of aid to developing countries, and responsibility for all official New Zealand information and publicity activities overseas other than those relating specifically to trade promotion or tourism.

The ministry is the agency through which other governments and their representatives in New Zealand communicate with the Government. It also undertakes external affairs and defence functions for the Cook Islands and Niue, after consultation with their respective heads of government, and administers Tokelau.

In addition, it is responsible for operating and administering the network of diplomatic and consular posts which represent and pursue New Zealand's interests overseas through a variety of ways, including participation in international negotiations, the gathering of information, and the promotion of a favourable New Zealand image. The posts perform services overseas on behalf of all government departments and give assistance to New Zealanders overseas, whether travelling in official or private capacities, and are responsible for the overseas issue of passports and visas.

For the addresses of New Zealand's overseas posts, and for information on diplomatic, consular and other representation in New Zealand refer to the 1988–89 Yearbook. More recent information can also be found in the publications New Zealand Representatives Overseas, and the Diplomatic List: Diplomatic and Consular Representatives in New Zealand, on sale at Government Bookshops.

South Pacific

In the 1960s there was a dramatic emergence of new nations in the South Pacific. New Zealand led this development in its own territories.

Western Samoa became an independent state in 1962. The Cook Islands became a self-governing state in free association with New Zealand in 1965, and Niue in 1974. The Cook Islands and Niue governments have full legislative and executive competence. The constitutional relationship provides for the exercise by New Zealand of certain responsibilities for defence and external relations. This does not confer any rights of control. Cook Islanders and Niueans are New Zealand citizens. The relationship between the Cook Islands and New Zealand was elaborated in 1973 as ‘one of partnership, freely entered into and freely maintained’. The Cook Islands or Niue can end the ‘free association’ status in favour of complete independence at any time. The Cook Islands and Niue can conduct their own external relations and enter into international agreements. Their capacity is limited only by the extent to which the governments of other states will deal with them. In practice, the Cook Islands and Niue have participated on an equal basis with sovereign states in the South Pacific. Tokelau is described in section 4.3, New Zealand territories.

There are now diplomatic missions in most of the independent countries of the South Pacific and regular contacts with those countries on a range of bilateral and regional issues. Eighty percent of bilateral development assistance is directed to the South Pacific.

The region (not including Australia) is of growing importance to New Zealand, with exports of $402 million in 1988–89. Fiji and Papua New Guinea are the most important markets. Imports, amounting to about $113 million, came principally from Western Samoa, Nauru, Fiji and Papua New Guinea. New Zealand has taken special measures to foster trade with these countries and New Zealand investment in the region. A regional trade agreement, SPARTECA, provides unrestricted duty-free access to New Zealand (and Australia) on a non-reciprocal basis for all of the products exported by island countries. The Pacific Islands Industrial Development Scheme (PIIDS) provides financial assistance and incentives for New Zealand companies developing approved manufacturing operations in selected Pacific countries. Its objective is to foster economic development and employment opportunities there.

There is close co-operation with the South Pacific on defence matters. New Zealand has mutual assistance programmes with a number of South Pacific countries which have armed forces and the New Zealand armed forces undertake joint exercises in various parts of the region. They also assist with maritime surveillance (a task of great importance to countries with vast exclusive economic zones), provide immediate help after natural disasters such as cyclones, and undertake civil development projects in isolated areas.

New Zealand has also helped build up regional co-operation in the South Pacific. A major step in this direction was the creation of the South Pacific Forum in 1971. Since then meetings have been held annually, recently at Nuku'alofa in 1988 and Tarawa in 1989. The forum provides an opportunity for states to discuss common problems, exchange views, consider priorities, and plan programmes for mutual and regional benefit. The topics considered include regional trade, shipping, civil aviation, telecommunications, the environment, the law of the sea, fishing, disaster relief, nuclear testing and decolonisation.

The forum has established the South Pacific Bureau for Economic Co-operation (SPEC), renamed the Forum Secretariat in 1988, which advises members on ways of promoting regional trade and free trade among island members and encourages collaboration in areas such as regional transport which will assist the economic development of the island members. Its headquarters are in Suva. It has also set up the South Pacific Forum Fisheries Agency to facilitate the rational utilisation and conservation of the region's marine resources. Its headquarters are in Honiara.

The Cook Islands, Fiji, Kiribati, Nauru, New Zealand. Papua New Guinea, Tonga and Western Samoa established the Pacific Forum Line (PFL) in 1977. The Solomon Islands and Tuvalu joined later, and Australia and Niue have made financial contributions. This shipping line is based at Apia, and charters three vessels, the Forum New Zealand, the Forum Samoa and the Fua Kavenga, owned by New Zealand. Western Samoa, and Tonga. Together with other governments in the region, New Zealand has made additional contributions since the PFL began operations in 1978. Although the line initially incurred heavy financial losses, in 1985 it achieved a trading profit for the first time and has continued to operate profitably.

The South Pacific Commission is primarily a technical assistance organisation, and has accomplished much in promoting the economic and social welfare of the South Pacific peoples as well as in helping to build a sense of regional identity. Its annual budget is mainly funded from proportional contributions by member governments.

Australia

A diplomatic office was established in Australia in 1943 (trade posts had been established as early as 1906), and in 1944 the Australia-New Zealand Agreement (known also as the ANZAC Pact or the Canberra Pact) was signed. In 1983, the two countries concluded the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER for short). It was reviewed in 1988, and will bring about complete free trade in goods on 1 July 1990 and provides for the progressive removal of obstacles to the flow of services and investment between the two countries. See also section 22.2, Trading partners.

In matters of foreign policy, defence and economics, regular and increasingly frequent bilateral meetings take place with a minimum of formality covering almost all government activity. New Zealand ministers participate in a wide range of regular meetings between and with Australian federal and state ministers. There is free movement of people under the Trans-Tasman Travel Arrangement. Australia is a major trading partner for New Zealand, which is in turn Australia's second largest single market for manufactured exports. In defence, the Anzac partners continue to co-operate closely in training programmes, exercises and the acquisition of equipment and other supplies. In 1989, New Zealand agreed to acquire two replacement frigates through the joint Anzac ship project with Australia. The Australia-New Zealand Foundation sponsors research projects and publications, as well as cultural exchanges.

Asia

New Zealand has a direct interest in the maintenance of peace and the growth of prosperity in Asia. A pattern of regular economic consultations with the main Asian trading partners has been developed and bilateral economic agreements have been signed. Over a third of New Zealand's export receipts come from Asia. Political contacts with countries of the area have been developed including diplomatic representation, high-level exchanges of visits and regular bilateral consultations.

New Zealand is closely associated with the Association of South-east Asian Nations (ASEAN), and has initiated a number of joint projects with ASEAN for development and trade co-operation. The continuing exodus of refugees from Vietnam and Kampuchea, and the political uncertainties stemming from the fighting in Cambodia have posed difficult problems for the countries of the region, and New Zealand has kept in close touch with the ASEAN countries over these developments.

Cultural interchange with the countries of Asia has increased steadily. Professional bodies, sporting associations, cultural groups and universities today have links with similar organisations in Asia. The development of air links and the growth of tourism have also helped to bring a wider range of contacts.

The relationship with Japan, New Zealand's largest export market in 1989, is one of the most important and beneficial the country has. The elements are varied—trade, fishing and a growing range of cultural, educational, sporting and personal lies. The conditions for a developing trading relationship are ideal, for the two countries are located in different hemispheres, their economies are complementary, and each has in abundance products that the other needs. Japan has made some welcome moves to open access to its market, particularly to beef. But New Zealand continues to seek improved access for other commodities—dairy and horticultural products in particular.

Notwithstanding the events in Beijing at the beginning of June 1989, New Zealand also recognises China's bilateral and regional importance and seeks to maintain a relationship which encourages the People's Republic of China to continue with its policies of economic reform and openness to the West.

Americas

United States. Since 1941 close consultations have been held with the United States on many bilateral questions and international issues. Basic similarities in political philosophy and social and economic processes have encouraged the development of close governmental relations, supported by increasing contacts, both official and non-official, across a broad range of activities.

This relationship finds expression in political, economic and cultural fields. New Zealand, the United States and Australia are parties to the ANZUS Treaty, although in practical terms the treaty is currently inoperative, due to the suspension by the United States of its security obligations to New Zealand as a consequence of New Zealand's anti-nuclear policy. The United States is one of New Zealand's most important markets. Programmes for scientific and technical co-operation, and academic and cultural exchanges maintain an awareness of New Zealand in the United States and promote the interchange of ideas and experience. The two countries work closely in Antarctic scientific research and operate a joint logistics pool for their Antarctic programmes.

Canada. New Zealand and Canada have traditionally enjoyed a close relationship. Since 1942, there have been numerous ministerial and official exchanges in many fields, and both countries take a close interest in developments in the Pacific Basin.

The Trade and Economic Co-operation Agreement, which came into effect in 1982, is intended to encourage economic co-operation between the two countries. In addition to consultations on trade and economic issues, the agreement provides for co-operation in investment, joint ventures and technology transfer.

Latin America and the Caribbean. In 1972 diplomatic missions were opened in Chile and Peru, primarily to support an expanding trade in dairy products. An embassy was opened in Mexico City in 1983. By cross-accreditation, diplomatic relations have since been established with Brazil, Ecuador, Colombia, Venezuela, Argentina, Uruguay, Nicaragua and Costa Rica.

A 1986 trade mission to Peru, Chile, Brazil, Venezuela and Mexico strengthened economic ties and the flow of exports to the region expanded markedly, particularly to Mexico and Venezuela. Chile has become an important destination for New Zealand overseas investment. Since 1974 the High Commissioner in Ottawa has been cross-accredited to Trinidad and Tobago, Jamaica, Barbados and Guyana.

Western Europe

Developments in Western Europe exert a strong influence on New Zealand life. The importance of the European Community as a market for agricultural exports and as a competitor in world markets for meat and dairy products has highlighted the economic aspects of the relationship. The EC is New Zealand's largest export market and trading partner. Although New Zealand exports have diversified considerably since Britain joined the EC, the Community remains a key market for sheepmeat and butter. New Zealand exports in a range of non-traditional products also show encouraging growth. Community imports into New Zealand are substantial and growing.

The range of other contacts with the individual countries of Western Europe is steadily expanding. New Zealand has consultative links with the Community on a range of political and economic issues. New Zealand and Western Europe co-operate closely on international issues and exchange information through multilateral organisations such as the United Nations and the OECD.

Soviet Union and Eastern Europe

New Zealand has developed stable working relationships with the Soviet Union and the countries of Eastern Europe. Trading and economic concerns dominate. The Soviet Union has become a significant market for primary commodities, particularly meat and dairy products, but trade with Eastern Europe since the late 1970s has not fulfilled earlier hopes and remains small. For the Soviet Union the fisheries resources of New Zealand's 200-mile zone are an additional source of economic interest. (A fisheries agreement was signed in 1978.)

Political relations with the Soviet Union were interrupted in 1979 by that country's intervention in Afghanistan, but were subsequently normalised with the return of ambassadorial representation in Wellington and Moscow in 1984. The embassy in Vienna is accredited to five East European countries—Poland, Hungary, Romania, Czechoslovakia and the German Democratic Republic—and the embassy in Athens to Yugoslavia. In August New Zealand accepted an invitation to contribute to the programme of economic assistance to Poland and Hungary being offered by Western countries and Japan to help them implement political and economic reforms. Moves towards reform also began in East Germany, Czechoslovakia and Bulgaria.

Middle East

Active involvement in the Middle East has increased markedly over the last decade. For more than 30 years New Zealand has watched the Arab-Israeli conflict with concern. On this issue New Zealand has maintained an even-handed policy, consistently upholding the right of the Palestinian people to self-determination and, equally consistently, Israel's right to exist. Recognising the wider implications for world peace, New Zealand has contributed personnel to United Nations truce observation teams in the Middle East, most recently in Iran as part of the United Nations Iran/Iraq Military Observer Group. Since 1982 New Zealand has also contributed a contingent to the Sinai Multinational Force and Observers. Since 1973, when the Organisation of Petroleum Exporting Countries (OPEC) emerged as a major economic force in the world, the Middle East has become increasingly important to New Zealand as a source of crude oil and petroleum products and as an export market for primary products and a wide range of manufactured goods.

Israel and Iran have embassies in Wellington, while Egypt, Iraq, Lebanon and Saudi Arabia have cross-accreditations from Canberra, and Oman and Qatar from Tokyo. New Zealand opened resident missions in Iran and Iraq in 1975, and in 1977 established a consulate-general in Bahrain which was upgraded to an embassy in 1984 when an embassy in Riyadh, Saudi Arabia, was also established. The functions of the Bahrain embassy were transferred to Riyadh in 1989. The Ambassador in Riyadh is cross-accredited to Egypt, Qatar, Oman and the United Arab Emirates, the Ambassador in Paris to Algeria, the Ambassador in The Hague to Israel, and the Ambassador in Baghdad to Jordan and Kuwait.

Africa

New Zealand enjoys good relations with the countries of Africa. The Government's policies on South Africa, including its condemnation of apartheid and support for international initiatives for its abolition, discouragement of sporting contacts with South Africa, and financial assistance to the countries which suffer from South Africa's regional ‘destabilisation’ policies, have contributed to these good relations.

In the international arena, New Zealand has taken a prominent role on the issue of apartheid. It has co-sponsored wide-ranging resolutions on international action against apartheid in the United Nations. As well, New Zealand has implemented all economic and other measures against South Africa recommended by the United Nations Security Council and the Commonwealth.

At the October 1989 Kuala Lumpur Commonwealth Heads of Government Meeting, New Zealand reaffirmed its abhorrence of the apartheid system and joined with the rest of the international community to urge the South African Government to bring the system of apartheid to a peaceful end. This message was repeated by the Minister of Foreign Affairs at the December 1989 United Nations Special Session on Apartheid.

In 1986 New Zealand's first resident diplomatic mission in Africa was established in Harare, Zimbabwe, with cross-accreditation to Botswana, Kenya, Tanzania and Zambia. This step implemented an undertaking made by former Prime Minister David Lange, on his official visit to Africa a year before. The High Commissioner in London is accredited to Nigeria.

In recent years there has been considerable contact between New Zealand and Africa. The Minister of Foreign Affairs made a visit to Nigeria, Zimbabwe, Zambia, and Mozambique in 1988, and the following year New Zealand hosted visits by the foreign ministers of Nigeria, Zambia and Zimbabwe.

New Zealand has joined the international donor community in responding to the emergency relief, rehabilitation and development needs of African countries. The Government contributes through a range of international and voluntary agencies. The New Zealand community has also responded generously to international relief appeals.

New Zealand contributes to technical co-operation projects in African countries on a bilateral basis. It also contributes to Commonwealth and other multilateral programmes, including those sponsored by the Southern African Development Co-ordination Committee.

Total trade with African countries amounts to only a modest percentage of New Zealand's global trade. The major New Zealand exports to the region are dairy products, fish, wool, textiles, electrical equipment and non-electrical machinery. The main imports from Africa are cocoa, coffee, sisal and tobacco.

Assistance to developing countries

In 1986 the New Zealand Government adopted a target for Official Development Assistance (ODA) of 0.51 percent of gross national product (GNP) by 1990–91. This was in support of the long-term goal of reaching the United Nations target ratio of 0.7 percent of aid volume to GNP. During 1988–89 it became obvious that this target would not be met due to ongoing need for fiscal constraint. Disbursements in the 1988 calendar year totalled $158.22 million or 0.27 percent of GNP, compared with $146.06 million, or 0.26 percent of GNP, in 1987. This compares with the average ratio of 0.35 percent recorded by the nations belonging to the OECD's Development Assistance Committee (which has 18 members including New Zealand, with percentages ranging from 0.20 percent for Ireland and the United States to 1.12 percent for Norway).

For the 1988–89 financial year New Zealand's expenditure under the Official Development Assistance Programme was $141.82 million. This was about $5.4 million over the previous year's total. Overall bilateral disbursements (including the separate Niue category) decreased slightly during the year from $82.87 million in 1987–88 to $79.0 million. This made up 56 percent of the overall programme. South Pacific countries received 80 percent of the bilateral expenditure. The main recipients were the Cook Islands ($14.14 million), Niue ($9.25 million), Western Samoa ($5.51 million), Papua New Guinea ($4.85 million), Tokelau ($4.65 million), and Tonga ($4.15 million). Fiji received $4.07 million, Solomon Islands $2.94 million and Tuvalu $1.70 million. The Federated States of Micronesia, New Caledonia, Palau and the Marshall Islands received smaller amounts. Countries in Southeast Asia received $9.20 million, or 11 percent of bilateral expenditure. The largest recipient was Indonesia.

New Zealand's contributions to multilateral organisations declined to $14.73 million in 1988–89 from $16.37 million the year before.

The cost of tuition for students from other countries studying in New Zealand totalled $28.71 million. South Pacific shipping disbursements were $11.88 million compared to $6.63 million the year before. The high level of expenditure in 1988–89 represented some large one-off costs and shipping is expected to become a much smaller component of the ODA programme in subsequent years.

Table 4.1. OFFICIAL DEVELOPMENT ASSISTANCE PROGRAMME EXPENDITURE, 1988–89

Bilateral assistance$(000)
     South Pacific54,062
     Niue9,248
     ASEAN9,199
     Other Asia1,237
     Africa1,160
     Latin America467
     Other Bilateral (voluntary agencies, information, etc.)4,619
                        Total bilateral79 997
Multilateral assistance
     South Pacific institutions2,235
     Development finance institutions4,117
     Commonwealth programmes1,235
     United Nations institutions6,023
     Other contributions1,175
                        Total multilateral14 785
South Pacific shipping11,880
Imputed student costs28,711
Administration6,450
                        Total141 823
Source: Ministry of External Relations and Trade.

The official development assistance programme involves the skills and experience of hundreds of New Zealanders, as well as capital and technical support. Through the bilateral (country-to-country) programmes, New Zealand responds to the development priorities established by developing countries. Development projects are the main form of assistance. New Zealand supports hundreds of projects and often commits expertise and/or material and capital resources for several years ahead. The main purpose of bilateral assistance is to promote the economic and social development of the partner countries and to raise living standards. Emphasis is placed on increasing productivity through livestock and pasture improvement programmes, assistance with crops, and the development of forestry, fisheries and energy resources.

The Ministry of External Relations and Trade maintains a register of potential advisers from New Zealand's private and public sectors who are willing to be assigned to overseas projects. At any time there are usually about 40 advisers on two-year assignments overseas, with many more on shorter visits. Advisers usually train local counterparts, some of whom consolidate their training with visits to New Zealand. The ministry also employs agents from the private and public sectors to manage projects overseas.

Education and training are a vital feature of the development programme. On-the-job training is an essential part of most projects supported by New Zealand. In addition study and training opportunities are provided for students from about 40 developing countries. In the year ended March 1989 government sponsored about 759 students and trainees from overseas to attend secondary schools, tertiary institutions and special practical courses in New Zealand. (Only students from some Pacific Island states are eligible for sponsored secondary schooling.) New Zealand also supported the education of 206 students and trainees at institutions in other countries. Development funds also support three New Zealand organisations that attract students from developing countries: the Seed Technology Centre at Massey University; the English Language Institute at Victoria University; and the Geothermal Institute at Auckland University. New Zealand supplies 4 percent of the University of the South Pacific's annual budget and gives grants to various Commonwealth training programmes.

From the 1987–88 financial year the tuition costs of overseas students, formally funded from Vote: Education, were transferred to the ODA Programme. This covers roughly 3500 students studying privately in New Zealand.

Multilateral assistance extends New Zealand's capacity to deliver support to areas of need. International relief and development institutions such as the Asian Development Bank, the International Development Association, the United Nations Development Programme, World Food Programme, UNICEF, and other United Nations agencies channel assistance to regions where New Zealand does not have diplomatic representation. This avenue enables New Zealand to help victims of famine, drought, conflict and other crises. New Zealand promotes development of the South Pacific region as a whole with contributions to the South Pacific Bureau for Economic Co-operation, the Forum Fisheries Agency and the South Pacific Commission.

Voluntary agency support is an increasingly significant feature of New Zealand's development co-operation. Many New Zealand voluntary agencies are active in small village-level projects overseas. Government support of such agencies has been maintained in recent years, particularly through assistance to Volunteer Service Abroad, the Voluntary Agency Support Scheme, the Development Education Fund, and the Women in Development Fund which began in 1988–89.

4.2 International organisations

United Nations

New Zealand was a founding member of the united Nations organisation in 1945 and successive governments have strongly supported it as a major instrument for maintaining peace and security, developing friendly relations among countries, encouraging international co-operation aimed at solving economic and social problems, and promoting respect for human rights. Over the years the range and complexity of functions of the United Nations and its specialised agencies have steadily grown. New Zealand concentrates on areas where it can play a useful role in matters directly affecting its interests.

In pursuit of its anti-nuclear commitment, New Zealand has continued to press for progress on a wide range of arms control and disarmament issues. New Zealand was pleased by the progress in superpower relations achieved in 1987 with the signing of an INF (intermediate-range nuclear forces) agreement. New Zealand's views on disarmament and arms control were presented at a number of forums including the Conference on Disarmament in Geneva, where its representative made statements calling for a ban on all nuclear testing and the conclusion of a treaty banning the development, production and stockpiling of chemical weapons. New Zealand took part in the International Conference on the Relationship between Disarmament and Development which was held in New York in September 1987, and co-sponsored a number of arms control and disarmament resolutions at the 1987 session of the General Assembly. New Zealand took the lead in 1988 with a resolution calling for a comprehensive test ban and this resolution received considerable support in the General Assembly. At the regional level, New Zealand has been a strong supporter of the South Pacific Nuclear Free Zone Treaty (SPNFZ), which it ratified on 13 November 1986. The treaty came into force on 11 December of the same year. Eleven South Pacific Forum members have signed the treaty to date.

At the national level, the New Zealand Nuclear Free Zone Disarmament and Arms Control Act came into force on 8 June 1987. The Act bans nuclear weapons from New Zealand, implements New Zealand's responsibilities under the South Pacific Nuclear Free Zone, and incorporates into New Zealand law a number of other existing arms control agreements, such as the Non Proliferation Treaty.

During 1989 New Zealand demonstrated its firm commitment to UN peacekeeping by doubling its personnel contribution to peacekeeping operations. New Zealand military personnel are now serving in Iran (UNIIMOG), Lebanon (UNTSO), Pakistan (UNMCTT), and Namibia (UNTAG), the latter also comprising a contingent of 32 police. In addition to the provision of personnel New Zealand also contributes financially to various peacekeeping operations (see section 4.5, Defence).

New Zealand has continued to participate in humanitarian relief work, for example, working closely with the UN High Commissioner for Refugees (UNHCR) particularly to resettle Indo-Chinese refugees. Continuing support, $50 000 in 1988–89, has been provided to the United Nations Border Relief Operation (UNBRO) to assist Cambodian refugees located in camps on the Thai border. The Government also contributed $350 000 to UNHCR in 1988–89 and made another grant of $100 000 for Mozambican refugees in Malawi. A voluntary contribution of $120 000 was paid to the Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) and $850 000 was given to the World Food Programme. There was an annual grant of $850 000 to the UN Children's Fund (UNICEF), plus special grants in 1988–89 of $700 000 for a UNICEF maternal and child health care programme in East Timor and $50 000 to assist the repatriation programmes for Afghan women and children.

In addition to its contributions to the humanitarian work of the UN and its agencies, New Zealand provided a voluntary contribution to the International Red Cross (ICRC) of $175 000. A further $50 000 was contributed for the ICRC's emergency programme in Africa and $100 000 to enable the New Zealand Red Cross Society to increase the number of New Zealand personnel engaged in refugee relief activities.

Human rights issues, including United Nations measures to eliminate torture, discrimination against women, and racism and racial discrimination, remain an important concern. During 1989 New Zealand ratified the Optional Protocol to the International Covenant on Civil and Political Rights, and the Convention Against Torture, thereby completing its adherence to the United Nations major human rights treaties. It also presented its second periodic report to the Human Rights Committee on its compliance with the International Covenant on Civil and Political Rights, and, in 1988, its first report to the Committee on the Elimination of Discrimination Against Women was presented. New Zealand has also maintained its financial support of the UN's voluntary funds in support of human rights, contributing during 1989 to the separate funds to assist victims of torture, for advisory services, and for indigenous populations.

New Zealand continued to support balanced resolutions at the Commission on Human Rights and in the Third Committee (which deals with human rights matters) at the General Assembly, particularly those in support of the United Nations human rights instruments and the effective functioning of the monitoring bodies they have established.

New Zealand also plays a full part in all aspects of international economic and development activity, not only in the United Nations agencies but also in the annual meetings of the IBRD (World Bank) and the IMF, and in Commonwealth and regional groupings that seek to stabilise international trade and finance. New Zealand continues to emphasise the special requirements of the South Pacific island countries, some of which are not represented at the UN. New Zealand contributed ($2.4 million in 1988–89) to the UN Development Programme (UNDP).

United Nations General Assembly. The delegation to the 44th General Assembly, in 1989, was led by the Prime Minister the Rt. Hon. Geoffrey Palmer. In his speech in the general debate he focused on the international environment. In particular, he outlined the Government's concerns about the ecologically destructive practice of drift netting. This became the subject of debate in the Assembly's Second Committee, which deals with economic and environmental matters. A consensus resolution calling for drift netting in the South Pacific to cease by mid-1991 was adopted. Mr Palmer's speech also referred to the need for new institutional authority within the United Nations system to make binding decisions on serious environmental problems such as climate change. During discussions on the global environment in the session, members considered arrangements for a Second UN Conference on the Environment, to be held in 1992. A special session on apartheid was held and other matters debated during the 44th session were international security issues (including disarmament and peacekeeping), human rights, decolonisation, and humanitarian relief and development assistance for the needy. New Zealand co-sponsored resolutions calling for a comprehensive test ban and acknowledging the South Pacific Nuclear Free Zone Treaty. The delegation supported UN reform.

The specialised agencies. The United Nations system encompasses 16 autonomous organisations, known as the specialised agencies, and a large number of additional bodies with their own secretariats, budgets and operations. Among the largest of these is the Food and Agricultural Organisation (FAO) which aims to raise levels of nutrition and global living standards, to promote agriculture and food security, and to expand the world economy. Similarly the World Health Organisation (WHO) seeks ‘the attainment by all peoples of the highest possible level of health’, the International Labour Organisation (ILO) seeks to improve working and living conditions and the UN Educational, Scientific and Cultural Organisation (UNESCO) seeks to increase international co-operation through education, science and culture.

Four agencies participate in efforts to promote the international flow of capital for productive purposes and facilitate the economic development of less developed countries. These are the International Bank for Reconstruction and Development (IBRD, or the World Bank), the International Monetary Fund (IMF), the International Finance Corporation (IFC) and the International Development Association (IDA).

Other UN special agencies of which New Zealand is a member, are concerned with civil aviation (ICAO), agricultural development (IFAD), maritime safety (IMO), telecommunications (ITU), postal services (UPU), patents and trademarks (WIPO), and climate and weather (WMO) and industrial development (UNIDO).

Contributions to United Nations. Contributions to the United Nations budget are based on members' capacity to pay. In 1989 New Zealand's assessed contribution rate was set at 0.24 percent of the regular budget, resulting in dues of $3 million. Contributions to the budgets of specialised agencies are fixed according to a scale of assessment agreed by the membership as a whole.

Along with many other countries, New Zealand has been concerned at the rapidly rising costs of running the United Nations and related bodies. Moreover, the failure of certain members to either pay their dues on time, or in full, coupled with administrative inefficiencies has led to a serious financial crisis. New Zealand supported the establishment of a group of experts to deal with this situation and has sought to ensure that the group's recommendations for financial and administrative reform can be implemented.

General Agreement on Tariffs and Trade (GATT). New Zealand was one of the original 23 parties to the General Agreement on Tariffs and Trade negotiated in Geneva in 1947 as a framework for negotiations to achieve substantial reductions in tariffs and other barriers to trade. The GATT has since expanded to 96 members, representing over 80 percent of world trade. The Secretariat for GATT is a United Nations specialised agency, based in Geneva.

The GATT has been founded on the principle of non-discrimination amongst contracting parties, embodied in the most-favoured nation (MFN) obligation. The MFN principle is particularly important to countries such as New Zealand, since it ensures that larger nations cannot exert economic influence through discriminatory trade policies.

A series of multilateral trade negotiations has been held under the auspices of the GATT to reduce obstacles to trade and refine the rules and disciplines. The early negotiating rounds concentrated on reducing tariff levels and binding them at agreed maximum levels. The ‘Tokyo Round’, which ran from 1973 to 1979 was broader in scope, embracing both negotiations on tariff reductions and elaborating on codes of conduct which refined or added to existing GATT rules.

New Zealand participated in all aspects of the Tokyo Round negotiations, making a global tariff offer through ‘binding’ certain tariff rates which covered items with a trade value of around $579 million. In return for offers made in the context of bilateral negotiations. New Zealand received useful concessions on tariffs and access for its major export products, particularly in relation to trade with the United States, the European Community and Canada. New Zealand also joined the multilateral arrangements negotiated on meat and dairy products and a number of other codes.

In 1986 member countries agreed to embark on an eighth round of negotiations, the ‘Uruguay Round’. This is the most ambitious set of negotiations yet, extending to 15 broad areas, many not previously covered by GATT rules. One of New Zealand's main priorities will be to ensure that trade in agricultural products, which has never been fully integrated into the GATT system, is progressively liberalised and brought under effective rules and disciplines (for both barriers and subsidies). The Cairns Group of agricultural trade reformers, of which New Zealand is an active participant, has been working to that end.

Other major issues include the negotiation of general tariff and non-tariff barrier reductions, rules for trade in services and improved rules and disciplines for dispute settlement, and safeguards and trade in intellectual property.

National negotiating positions were being tabled until the end of 1989, to be followed by a consolidation and negotiation phase in the first half of 1990. The second half of the year is to be devoted to the weaving together of an agreement to cover all the negotiating areas. The Uruguay Round is scheduled to be completed in December 1990 at a ministerial meeting to be held in Brussels.

Other UN bodies. In addition to the specialised agencies, many UN organisations help to seek solutions to international problems through diverse economic, development, humanitarian and technical activities. The International Atomic Energy Agency (IAEA) established ‘under the aegis of the United Nations’, supports peaceful uses of nuclear energy, while several bodies encourage economic development (UNDP, UNCTAD, IFAD), and others address issues as diverse and necessary as environmental protection, tourist promotion, drug abuse and population planning. Humanitarian concerns include the health and welfare of children (UNICEF), assistance to refugees (UNHCR and UNRWA) and the elimination of racism and of discrimination against women. Contributions are usually voluntary, and table 4.1 (above), includes New Zealand's contributions for 1988–89.

World Bank

The World Bank group is comprised of the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA) and the International Finance Corporation (IFC). The common objective of these institutions is to help raise standards of living in developing countries by channelling financial resources from developed countries to them. The IBRD's lending operations are directed towards developing countries at more advanced stages of economic and social development, whereas the IDA provides loans of a highly concessional nature to the poorest of the developing nations. The IFC promotes growth in the private sector of developing countries by lending or investing in business enterprises without government guarantees.

New Zealand joined the IBRD in 1961. It has subscribed to a total of 4696 shares in the bank, which in terms of voting shares is 0.56 percent of the total. The shares have a total par value of US$566 million, although over 90 percent of this amount has not been called-up but, together with the uncalled subscriptions of other member countries, acts as a guarantee for the IBRD's borrowing in the financial markets.

New Zealand joined the IDA in 1975, having earlier made a voluntary contribution of $5 million to the association. Since becoming a member. New Zealand has committed a further $54.8 million to IDA through having participated in its fourth, fifth, sixth, seventh and eighth replenishments of funds and its fiscal year 1984 account. Negotiations for the ninth replenishment of IDA are currently underway. New Zealand will be making a contribution consistent with its contribution to the eighth replenishment. New Zealand owns 1583 fully-paid shares in the IFC, which have a total par value of US$1.6 million.

Asian Development Bank

The Asian Development Bank's (ADB's) principal function is to promote and finance the economic and social advancement of its 28 developing member countries in the Asia-Pacific region. It has 32 member countries in the Asia-Pacific area and 15 member countries in Europe and North America. The ADB's financial structure is similar to that of the World Bank.

New Zealand first took up shares in the ADB when it was established in 1966. The country currently holds 27 170 shares, which make up about 2 percent of the bank's total share capital.

New Zealand also makes contributions to the ADB's Asian Development Fund (ADF) and Technical Assistance Special Fund (TASF). The ADF is the bank's facility for lending to its poorest developing member countries, to which New Zealand contributed a total of approximately US$17.3 million up to the end of 1987. New Zealand has granted a total of US$1 096 000 to the TASF since 1969.

Commonwealth

The 49 members and two ‘special members’ of the Commonwealth include countries in the six continents and the five oceans of the world. The South Pacific region is represented by Tonga, Western Samoa, Papua New Guinea, Solomon Islands, Kiribati, Vanuatu, Australia and New Zealand. (Fiji's membership lapsed in October 1987.) Nauru and Tuvalu have special membership status. The Cook Islands and Niue are not eligible for full membership because of their continuing constitutional association with New Zealand. In consequence they do not attend Commonwealth heads of government meetings, but are entitled to participate in Commonwealth meetings dealing with those subjects for which their governments are responsible.

A permanent Commonwealth Secretariat is the main agency for multilateral communication between governments. The secretariat promotes consultation, disseminates information on matters of common concern, organises meetings and conferences, and co-ordinates a wide range of other activities.

Heads of government meet every second year. The most recent meeting was held in Kuala Lumpur in October 1989. Commonwealth finance ministers meet annually, and ministers of agriculture, labour, health, education and other portfolios also meet at varying intervals.

The Commonwealth's principal official development assistance programmes are financed by the Commonwealth Fund for Technical Co-operation, to which New Zealand contributed $1 million in 1989–90. New Zealand also takes part in the Commonwealth Scholarship and Fellowship Plan, contributing about $700 000 in 1989–90. Contributions are made to a range of other intergovernmental Commonwealth co-operative programmes, including, in 1989, $250 000 to the Commonwealth fund for Mozambique and $50 000 for Commonwealth co-operation on distance education, and to agencies, including the Commonwealth Youth Programme, the Commonwealth Science Council, the Commonwealth Agricultural Bureaus and the Asia-Pacific regional working groups. In the non-governmental area, New Zealand's main contribution is to the Commonwealth Foundation, established to promote close links in the professions throughout the Commonwealth.

Organisation for Economic Co-operation and Development

The Paris-based OECD aims to foster intergovernmental co-operation amongst its 24 members on matters relating to economic and social policy. The majority of its members are the large industrialised countries of the world and New Zealand joined in 1973 with the intention of voicing its opinions in OECD forums, which were of increasing importance in international decision-making.

New Zealand has traditionally concentrated on economic, agricultural, and trade consultations in the OECD. Recently the environment has been added to this list of high priority-topics. Other areas where New Zealand participates in OECD work include education, science, health, labour, financial and investment affairs, and social policy. The OECD exchanges, analyses and disseminates a wide variety of information, including the OECD forecasts (Economic Outlook) and reports on individual countries. The New Zealand economy is periodically subjected to a thorough review within the OECD system. Its aid policy is reviewed regularly by the OECD's Development Assistance Committee.

An example of the benefits of OECD membership is the continuing conceptual work being done on the multilateral trading system in parallel to the current Uruguay Round under GATT. This includes work in protectionism in agricultural trade (initiated by New Zealand), subsidies and trade in services.

New Zealand is also a member of the International Energy Agency (IEA), an autonomous body of 19 member countries within the OECD framework. The IEA was set up in response to the energy crisis of the early 1970s and is charged with maintaining a programme for emergency procedures in oil supply. While this remains a priority, in 1989 the IEA has also incorporated energy-related environmental issues into its overall programme of energy co-ordination which aims to promote co-operation between energy producing and consuming countries.

International Whaling Commission

Since New Zealand rejoined this commission in 1976, it has played an active role among the conservationist member nations. The 41st annual meeting was held in San Diego in June 1989, the year before the commission met in Auckland.

4.3 New Zealand territories

Tokelau

A territory under New Zealand's administration, Tokelau is a scattered group of three atolls in the South Pacific with a total land area of about 12 square kilometres and a population of 1690 in 1986. Sovereignty was transferred from Britain, and Tokelau included within the boundaries of New Zealand, in 1948. Tokelau lies between Micronesia and Polynesia, but its inhabitants are Polynesian. They retain linguistic, family and cultural links with Western Samoa, although the culture of Tokelau is shaped by its atoll environment. Tokelauan is spoken, with English as a second language.

Administrative responsibility for Tokelau lies with the Administrator, Mr Neil Walter, Assistant Secretary in the Ministry of External Relations and Trade in Wellington. Many of his powers are delegated to the Official Secretary who heads the Office for Tokelau Affairs, based in Apia by agreement with Western Samoa. The Administrator reports annually to the New Zealand Parliament.

New Zealand is committed to helping Tokelau towards greater self-government and economic self-sufficiency. Invited missions from the UN Special Committee on Decolonisation visited Tokelau and were advised by the people that they did not, for the time being, wish to review the existing ties between New Zealand and the territory. A delegation from Tokelau visited New York in June 1987, and its message to the United Nations reflected the views expressed to earlier missions. New Zealand takes steps to ensure that the Tokelau public service meets Tokelau's administrative, social, economic and development requirements. The public service numbered 199 at 31 March 1989. Almost all public servants are Tokelauans.

New Zealand provided $3.9 million of budgetary aid in the year ended 31 March 1989. Tokelau also receives considerable assistance from various international agencies, the UN Development Programme being the largest donor. Western Samoa gives much practical assistance, particularly medical.

Tokelau has a separate legal system, and local government is conducted through representative institutions. The Faipule and Pulenuku are elected every three years by adult suffrage.

Tokelau's economy, largely subsistence, is based on fishing, crops and livestock, although the soil is barren and resists fertilisation. The territory's size, isolation and lack of land-based resources give little scope for economic development, although measures have been taken to redistribute available cash income. Each atoll has a small general hospital and a primary school.

Ross Dependency

The Ross Dependency consists of the land, permanent ice-shelf and islands of Antarctica between 160° east and 150° west. The land is almost all covered by ice, and is uninhabited except for people working on scientific research programmes. New Zealand has exercised jurisdiction over the territory since 1923, has maintained an Antarctic scientific research programme since 1957 and operates Scott Base on Ross Island as a permanent base, with a seasonal base at Lake Vanda in the Dry Valleys region. New Zealand is an original party to the Antarctic Treaty, which requires Antarctica to be used for peaceful purposes only and promotes international co-operation, freedom of scientific investigation, and exchange of information and scientific personnel. The 39 parties to the treaty meet regularly to consider questions within its framework.

4.4 Defence

The Governor-General as Commander-in-Chief is empowered to raise and maintain the New Zealand Naval Forces, the New Zealand Army, and the Royal New Zealand Air Force. These forces, together with civilian employees, constitute the New Zealand Defence Force.

The Minister of Defence has the power of control of the New Zealand Defence Force, which is exercised through the Chief of Defence Force. The Chief of Defence Force is the principal military adviser to the minister and responsible for the carrying out of the functions and duties of the Defence Force; the general conduct of the Defence Force; the management of the activities and resources of the Defence Force, and is convenor and chairman of a Chiefs of Staff Committee.

The Secretary of Defence, chief executive of the Ministry of Defence, is the principal civilian adviser to the minister. The secretary is responsible for formulating advice, in consultation with the Chief of Defence Force, on defence policy; the procurement, replacement or repair of defence equipment which has major significance to military capability; and assessment and audit of the Defence Force in relation to any function, duty, or project.

The former Defence Council was abolished in April 1990 with the repeal of the Defence Act 1971.

Reorganisation of defence

In 1987 a comprehensive review of defence policy by the Government concluded with the release of a white paper, entitled Defence of New Zealand: Review of Defence Policy 1987. A feature of the review was extensive consultation with the public, which had not occurred in past defence reviews.

The white paper concluded that the defence forces should have the capability to operate independently in New Zealand's region of direct strategic concern, and that decisions on force structure were needed to give practical effect to the greater emphasis on New Zealand's defence role in the South Pacific. It also noted that New Zealand and Australia shared strategic concerns in the South Pacific, and stressed the importance of close defence cooperation between the two nations.

Resource management review. A resource management review of the Ministry of Defence was undertaken in 1988. The review, conducted by Strategos Consulting Ltd, was wide ranging and covered organisation, personnel, scientific and electronic data processing activities, equipment, training, programme management, and cost recovery. It also considered the rationalisation of real estate holdings.

Following consideration of the findings of the review the Government enacted legislation to establish two separate defence organisations; the New Zealand Defence Force, headed by the Chief of Defence Force, and a new Ministry' of Defence, headed by the Secretary of Defence (see section 3.3, State sector).

The review gave priority to improving management systems and the rationalisation of defence assets. A programme to decentralise authority, ensure accountability, and delegate responsibility to lower levels of authority, commensurate with skill and ability, is being put in place. Management information systems are being improved, particularly in the areas of finance, personnel, and stores control.

The rationalisation of defence assets is a complex undertaking, but has commenced in the areas of real estate holdings, including property disposal, and defence commercial line vehicles. Pilot studies of catering and facilities management for camps and bases, and planning for individual training for personnel from all three services have been initiated.

The resource management review also recommended that the Secretary of Defence conduct an annual defence assessment to advise the Government on defence policy. This would take the place of the former, less frequent, cycle of defence reviews.

Defence goals. In November 1989 the Government endorsed the following goals as a basis for defence planning until a more thorough review is carried out during the first annual defence assessment.

  • To preserve the security and integrity of New Zealand, and its 200-mile Exclusive Economic Zone, and the island states (the Cook Islands. Niue and Tokelau) for which New Zealand has defence responsibilities.

  • To be able to mount an effective, independent military response to any low-level contingency threatening New Zealand or the island states for which New Zealand has defence responsibilities or close regional ties.

  • To be able to contribute to an effective military response, most probably in association with Australia, to any low level contingency within New Zealand's area of direct strategic concern. (This area includes mainland Australia, and extends north through Papua New Guinea to Kiribati, east to the Cook Islands, and south to the Ross Dependency in Antarctica.)

  • To maintain close defence co-operation with Australia, and in particular areas (such as defence procurement, logistic support, and co-ordination of defence activities in the South Pacific) to develop a closer defence relationship.

  • To promote the security and stable development of the South Pacific by providing practical assistance in defence matters to the countries of the South Pacific region.

  • To maintain an expansion base which would enable New Zealand to respond using existing resources, to higher-level contingencies within its area of direct strategic concern.

  • To continue to meet existing defence obligations in conventional terms.

  • To contribute to the maintenance of peace and stability in South-east Asia by continuing to maintain an active role in the Five Power Defence Arrangements and mutually beneficial military assistance, training and exchange programmes with the countries in the region.

  • To provide disaster relief assistance, resource protection, rescue and medical evacuation services to the community in New Zealand, and in the South Pacific.

  • To maintain an ability to operate in New Zealand southern maritime region, and provide logistic support to New Zealand activities in Antarctica.

  • To promote peace and international security through contributions to United Nations peacekeeping operations.

International defence relationships

ANZUS. This security treaty between Australia, New Zealand and the United States came into force in 1952. Each party recognised that an armed attack in the Pacific on any of the parties would be dangerous to its own peace and safety and declared that it would act to meet the common danger in accordance with its constitutional processes. However, because of the dispute between New Zealand and the United States over the introduction of nuclear weapons into New Zealand ports and over visits of nuclear-propelled vessels, the ANZUS Council has not met since 1984. The Government considers that New Zealand can best meet its ANZUS obligations, and make an effective contribution to western security, by playing a constructive role in promoting the collective security of New Zealand's part of the world.

The Five Power Defence Arrangements. The basis of the Five Power Defence Arrangements is not a formal treaty but a statement in the communiqué of the meeting of ministers of Britain, Malaysia, Singapore, Australia and New Zealand in 1971. The ministers declared, ‘that in the event of any form of armed attack externally organised or supported or the threat of such attack against Malaysia or Singapore, their governments would immediately consult together for the purpose of deciding what measures should be taken jointly or separately in relation to such attack or threat’. Under these arrangements Australia maintains an RAAF presence in Malaysia, while up until 1989 New Zealand maintained a contingent in Singapore (known as New Zealand Force South-east Asia).

Manila Treaty. Australia, Britain, France, New Zealand, Pakistan, the Philippines, Thailand and the United States signed the South East Asia Collective Defence Treaty, or the Manila Treaty, in 1954. Although the South-east Asia Treaty Organisation (SEATO) established under the treaty was phased out in 1977, the treaty was not abrogated.

Co-operation with other countries. To facilitate exchanges on military matters, defence representatives are posted to New Zealand diplomatic missions in London, Canberra, Melbourne, Washington, Ottawa, Jakarta, Singapore, Kuala Lumpur and Port Moresby. In addition, some members of these staffs are also accredited to other countries. The United Kingdom, Australia and Malaysia have service representatives attached to their respective High Commissions in Wellington and there are service attachés on the staffs of the French, Indonesian, and United States embassies in Wellington. Several other countries have service attaches accredited to, but not resident in, New Zealand.

Armed forces overseas

Five Power Defence Arrangements (FPDA). The withdrawal of New Zealand Force Southeast Asia from Singapore was completed by December 1989. A small administrative element, known as the Defence Support Unit, will remain in Singapore to support bilateral exercises under the FPDA and the Mutual Assistance Programme, continued single service deployments and training attachments. An RNZAF officer will also remain attached to the staff of the FPDA Integrated Air Defence System Headquarters at Butterworth, Malaysia.

United Nations observers. New Zealand has four observers in the Middle East with the United Nations Truce Supervisory Organisation.

Sinai Multinational Force and Observers (MFO). This programme was established in April 1982 to verify compliance with the terms of the peace treaty concluded between Egypt and Israel on 26 March 1979. MFOs headquarters are in Rome, and the operational headquarters, commanded by New Zealander Lieutenant-General D. S. McIver, is in El Gorah, in the Sinai. Ten countries contribute to MFO, including a 25-man New Zealand contingent, which includes a training and advisory team, a heavy transport section and engineers.

United Nations Iran/Iraq Military' Observer Group (UNIIMOG). This group is responsible for confirming, supervising and monitoring the cease-fire between Iran and Iraq which came into effect on 20 August 1988. New Zealand's contribution to UNIIMOG comprises 10 army officers and an 18-strong RNZAF flight and ground crew contingent which is operating an RNZAF Andover aircraft.

Both groups work in Iran. The army team took up duties on 20 August 1988 and their RNZAF counterparts in early October 1988. Both commitments were renewed in August and September 1989 respectively for a further year. Although 26 countries are represented in UNIIMOG, New Zealand is currently the largest national contributor in terms of both manpower and equipment. The RNZAF detachment is based in Tehran and its main task is to provide a link to the four sector headquarters three times a week carrying freight and observers.

United Nations Mine Clearance Training Project. This programme was established early in 1989 to train Afghan personnel in mine clearance techniques so that they could undertake mine clearance work in Afghanistan, especially in the border areas through which returning refugees would pass. It is estimated that several million mines of many different types are randomly scattered around the countryside. New Zealand provided a team of five army personnel in February 1989 for a period of six months and a second team was deployed in late August. The New Zealand contingent is based in Peshawar, in north-west Pakistan. It is the first United Nations programme to employ military personnel in a humanitarian role.

United Nations Transitional Assistance Group (UNTAG). This group is responsible for ensuring the early independence of Namibia through free and fair elections under the supervision and control of the United Nations. In addition to the contribution of 32 police in April 1982, New Zealand contributed 14 army engineers in late September 1989 for a period of six months. They are attached to an Australian army engineer unit. The main tasks of the unit are the removal of debris from transport routes, the construction and maintenance of electoral facilities, and assistance with community projects. The New Zealand Army personnel were located in seven different centres.

Mutual Assistance Programme, ASEAN and South Pacific countries participate in New Zealand's Mutual Assistance Programme. The programme is a practical demonstration of New Zealand's commitment to regional security. It contributes to the effectiveness of the armed forces in New Zealand's South Pacific neighbourhood and in South-east Asia through training and advisory assistance; and by assisting in development projects utilising the armed forces engineering and trade skills. The range and scope of activities is determined by New Zealand's partners, who have widely different needs. The most common forms of assistance are the provision of formal courses or on-the-job training attachments in New Zealand, the deployment of training and technical teams overseas, the attachment of military instructors to other armed forces for periods of up to two years, and civic action projects in the engineering and medical fields.

Antarctica support. During November and December 1989 RNZAF C130 Hercules made 14 return trips to McMurdo Sound, transporting 209 847 kilograms of freight and 403 passengers and 11 435 kilograms of baggage. All three services provided air cargo handlers at Harewood and McMurdo Sound during the summer season, and specialist personnel such as chefs, communications operators and engineers supported the New Zealand Antarctic Research Programme at both Scott and McMurdo Bases.

Exercises. Exercise Joint Venture 88 involved units of all three armed forces exercising in Western Samoa and Niue for seven days in April and May 1988.

Community assistance

Hydrographic survey. The Navy is the sole authority for the production of nautical charts in New Zealand and operates a survey ship, HMNZS Monowai and two inshore survey craft. HMNZ ships Takapu and Tarapunga. The Hydrographic Office also provides tidal analysis data and predictions. During 1988–89 Monowai completed the East Cape survey and was then deployed to Kiribati in support of the South Pacific Forum Conference. Monowai also attempted a survey in Aliepata, Western Samoa, but the attempt had to be abandoned owing to weather conditions. Takapu and Tarapunga updated the survey of the Manakau Bar and were involved in the East Cape survey. They also conducted mine countermeasure exercises at Napier, and in December 1989 were involved in a survey of Port Taranaki.

Fishery protection. Patrols of the New Zealand 200-mile Exclusive Economic Zone (EEZ) are conducted by ships of the RNZN and by RNZAF aircraft (principally Orions and Friendships). Surveillance patrols include fishery protection tasks, after which all information is passed to the Ministry of Agriculture and Fisheries.

Search and rescue. A search and rescue capability is maintained by the Navy and Air Force, with operational units maintained on a 24-hour stand-by. Both services have assisted in extensive sea searches, and the Army has supported the Air Force in land searches. In 1988 the Air Force flew 61 search and rescue missions and assisted in the rescue or recovery of 79 people.

New Zealand Cadet Forces. Cadet Forces comprise the Sea Cadets, Air Training Corps and New Zealand Cadet Corps (previously known as the School Cadet Corps). They are community-based youth training groups aimed at teaching leadership, comradeship, self-confidence and good citizenship to young people between the ages of 13 and 18 years. The Cadet Forces are supported by the Navy League, Air Cadet League, Returned Servicemens' Association, Army Association and schools. The Ministry of Defence assists only to the extent necessary to preserve the special military character of the organisation.

As at 30 June 1989, there were a total of 85 cadet units (17 Sea Cadet, 50 Air Training Corps and 18 Cadet Corps units). Cadet Forces strength at the same date was 373 officers and 4656 cadets.

Other assistance provided to the community included co-operation with the police (field catering and helicopter support) and the Departments of Internal Affairs, Labour (including explosive ordnance disposal), Customs and Justice, and the Ministries of Civil Defence and Agriculture and Fisheries.

Disaster relief

The RNZAF undertook relief flights to Vanuatu and the Cook Islands in January 1988 following Cyclone Anne, to Vanuatu in March 1988 in the wake of Cyclone Bola, and to Western Samoa, Niue, Tokelau and the Cook Islands in February 1990 after Cyclone Ofa. HMNZS Wellington and Endeavour also delivered relief supplies to Niue. Tokelau and Western Samoa after Cyclone Ofa, and the ships' crews were engaged on a range of reconstruction tasks in Tokelau and Western Samoa.

Defence expenditure

About 90 percent of Vote: Defence was spent in New Zealand in 1988–89, mainly on personnel and operating and capital costs. There is a policy to encourage greater logistic self-sufficiency, both within New Zealand and in conjunction with Australia.

Table 4.2. DEFENCE EXPENDITURE

ItemYear ended 31 March
19851986198719881989
$(million)
Personnel355.97390.44464.28532.51611.47
Travel, transport, and communications28.7831.1337.7641.0443.56
Maintenance, operation, upkeep, and rental54.2866.6589.26102.62111.96
Materials and supplies150.60185.91184.19190.46177.51
Services16.2319.5825.4539.9254.25
Other operating expenditure6.195.917.8713.7014.52
Grants, contributions, subsidies, advances. GST.0.360.3849.86114.67133.56
Capital works16.6722.1537.1342.0186.48
Capital equipment127.33148.30200.16201.56157.44
                    Total756.41870.451 095.961 278.491 390.75
Source: Ministry of Defence.

Table 4.3. NUMBER OF DEFENCE PERSONNEL

As at 31 MarchNavyArmyAir ForceTotalCivilians
19852,6875,4314,30612,4243,097
19862,6195,8144,17612,6093,073
19872,6265,8994,19512,7202,673
19882,5725,8724,08312,5273,272
19892,5475,7184,18312,4483,326
Source: Ministry' of Defence.

Table 4.4. INTERNATIONAL COMPARISON OF DEFENCE EXPENDITURE

 Percentage of GDP
19831984198519861987
Australia2.82.83.02.72.9
Canada2.22.22.22.2 
India3.03.93.23.53.8
New Zealand2.11.92.12.02.0
Sweden3.12.93.02.93.0
United Kingdom5.35.55.24.9 
United States of America6.46.96.96.76.2
Source: International Institute of Strategic Studies.

Royal New Zealand Navy

Command and administration. The Chief of Naval Staff exercises command and control of the Royal New Zealand Navy and is assisted by the Naval Staff.

Below is a selection of some of New Zealand's ‘mainstay’ weaponry used since World War I.

Table 4.5. STATE OF THE NAVY

Frigates (Leander class)Wellington11th Frigate Squadron.
Southland
Waikato
Canterbury
Fleet tankerEndeavour 
Survey shipMonowai 
Research shipTui 
Patrol craftHaweaFirst New Zealand Patrol Craft Squadron.
Taupo
Rotoiti
Pukaki
Inshore survey craftTakapu 
Tarapunga
RNZNVR inshore patrol craftMoaSecond New Zealand Patrol Craft Squadron.
Kiwi
Wakakura
Hinau
Diving tenderManawanui 
Training tenderKahu 
Dockyard service craftArataki 
Source: Ministry of Defence.

Shore establishments. The naval base at Devonport, Auckland, consists' of the office of the Commodore Auckland (the operational authority of the RNZN), HMNZS Philomel (the naval barracks and base support establishment), the Royal New Zealand Naval Hospital, the Naval Supply Depot, and the Dockyard. The dockyard is capable of refitting all units of the Navy. HMNZS Tamaki is the naval training establishment at Narrow Neck, Devonport, Auckland. The RNZN Armament Depot is situated at Kauri Point and the RNZN Hydrographic Office is at Takapuna. HMNZS Irirangi is the naval radio receiving and transmitting station at Waiouru. HMNZS Wakefield is the administrative unit for RNZN personnel in the Wellington area.

Table 4.6. STRENGTH OF THE NAVY

CategoryAt 31 March
1986198719881989
Regular forces
     Officers (male and female)366286370377
     Ratings (male and female)2,2531,9762,2272,198
                    Total2 6192 2622 5972 575
Non-regular forces
     Royal New Zealand Naval Reserve (officers)4441
     Royal New Zealand Naval Volunteer Reserve (all ranks)475447464508
     Royal New Zealand Navy Emergency List (officers)52587584
     Royal New Zealand Naval Fleet Reserve (ratings)762794701703
                    Total1 2931 3031 2441 296
Source: Ministry of Defence.

Royal New Zealand Naval Volunteer Reserve—There is a division of the Royal New Zealand Naval Volunteer Reserve in each of the four main centres where reservists are given basic naval training.

New Zealand Army

The Army comprises regular, territorial, and reserve elements and is structured to provide the following operational options:

  1. A Ready Reaction Force based on an infantry battalion group consisting of Regular Force personnel.

  2. An Integrated Expansion Force of up to a brigade group comprising Regular and Territorial Force personnel.

  3. Force troops, such as the Special Air Service, Force Intelligence Group and Signals to operate with or independently of the Ready Reaction Force and the Integrated Expansion Force.

  4. A deployable Force Maintenance Group, comprising Regular and Territorial Force personnel.

Command and administration. The Chief of General Staff commands the Army, supported by the General Staff. The Army has the following formation commands:

  1. Headquarters Land Force Command is responsible for the four operational components of the Army, namely; the Ready Reaction Force, the Integrated Expansion Force, the Force Troops, and the Force Maintenance Group.

  2. Headquarters Support Command is responsible for the provision of individual training, static support and facilities, and base support.

Table 4.7. STATE OF THE ARMY

Army unitsRegular
Force units
Major integrated units
Regular and
territorial
units
Major weapons
and armoured
fighting vehicles
Infantry battalions2 
Armoured reconnaissance squadron1
Field artillery battery1
Infantry battalions 6 
Artillery regiment (five batteries)1
Armoured squadrons2
Engineer squadrons2
Signals squadrons4
SAS group1
Transport squadrons2
Field workshops3
Base workshop1
Supply companies2
Base supply battalion1
Field hospital3
Combat reconnaissance vehicles (tracked) 26
M113 armoured personnel-carrier family of vehicles78
105 ram guns/howitzers44
106 mm recoilless rifles19
Source: Ministry of Defence.

Table 4.8. STRENGTH OF THE ARMY

CategoryAt 31 March
1986198719881989

* Class A and class B reserves.

Source: Ministry of Defence.

Regular forces
     Officers (male and female)824831814814
     Other ranks (male and female)4,9905,0415,0584,904
                    Total5 8145 8725 8725 718
Non-regular forces
     Territorial Force (all ranks)5,8215,9216,0066,050
     Officers Reserve610621131120
     Other ranks*1,2591,5471,2141,222
                    Total7 6908 0897 3517 392

Below is a selection of vehicles used by the New Zealand Army today.

New Zealand military decorations

Royal New Zealand Air Force

Command and administration. The RNZAF is structured to provide forces for maritime surveillance and reconnaissance, offensive air support and air transport in New Zealand's area of interest.

The Chief of Air Staff commands the Royal New Zealand Air Force supported by the Air Staff.

Organisation. The RNZAF in New Zealand is organised into two functional groups: Operations Group, with its headquarters at RNZAF Base Auckland, is responsible for all operational functions and operational flying training; Support Group, with its headquarters at RNZAF Base Wigram, is responsible for all recruitment, formal individual training (except advanced pilot training) and certain support functions such as supply and depot level maintenance. RNZAF Base Shelly Bay acts as the administrative and domestic base for all RNZAF personnel assigned to Wellington for duty in Air Staff and Defence Force Headquarters. Operational flying units are based at RNZAF Base Auckland RNZAF Base Ohakea and a VIP flying unit at RNZAF Base Woodbourne. Flying training is conducted at RNZAF Base Wigram, while ground training is carried out at RNZAF Bases Auckland, Woodbourne and Wigram. RNZAF Base Te Rapa is the RNZAFs stores depot. A museum and historical centre is located at Wigram.

Engineering. Aircraft technical services are co-ordinated by Air Staff with specific levels of aircraft maintenance assigned to the bases and squadrons. The overhaul, repair and some manufacturing of aeronautical equipment is carried out at RNZAF Base Woodbourne. A proportion of repair and overhaul work is contracted to the private sector in New Zealand and overseas.

Table 4.9. STATE OF THE RNZAF

Operational units roleAircraftLocation
Maritime  6 OrionsRNZAF Base Auckland
Air transport  2 Boeing 727s
  9 Andovers
  5 Hercules
Helicopters14 Iroquois
  7 Wasps (operated by RNZN)
Offensive air support21 SkyhawksRNZAF Base Ohakea
Advanced flying training and attack transition training15 Strikemasters
VIP transport  3 Cessna 421CsRNZAF Base Woodbourne
Flying training  4 Air tourersRNZAF Base Wigram
15 Air trainers
  3 Sioux helicopters
  3 Friendships
Source: Ministry of Defence.

Table 4.1. STRENGTH OF THE AIR FORCE

CategoryAt 31 March
1986198719881989
Regular forces
     Officers (male and female)717731698542
     Airmen and airwomen3,4593,4643,5773,530
                Total4 1764 1954 2754 072
Non-regular forces
     Territorial Air Force224216215224
     Active Reserve817697961902
     General Reserve176103172203
                Total1 2171 0161 3481 329
Source Ministry of Defence.

Security Intelligence Service

The New Zealand Security Intelligence Service Act 1969 gives statutory recognition to the New Zealand Security Intelligence Service.

Subject to the control of the Minister in Charge of the Security Intelligence Service, the functions of the service are to obtain, correlate, and evaluate intelligence relevant to security and to advise ministers on security matters. The Security Intelligence Service does not enforce security measures. Nor does it institute surveillance of any person or class of persons by reason only of his, her, or their involvement in lawful protest or dissent in respect of any matter affecting the constitution, laws, or government of New Zealand.

There is a Commissioner of Security Appeals, to whom complaints may be made in writing at the office of the High Court in Wellington.

During the year ended 31 March 1989, three interception warrants were issued for the ‘detection of activities prejudicial to security’ (section 4A (1) (a) (i) of the New Zealand Security Intelligence Service Act 1969). The average term of each warrant was five months and 26 days. The methods of interception used were listening devices and copying of documents.

Table 4.11. EXPENDITURE ON SECURITY INTELLIGENCE SERVICE

Year ended 31 MarchGross
expenditure
Increase
previous year
 $(000)percent
19854,5895
19865,43718
19877,59639
19889,43324
19899,7754
Source: Security Intelligence Service.

Contributors

4.1–4.3 Ministry of External Relations and Trade.

4.4 Ministry of Defence; New Zealand Security Intelligence Service.

Historical

Ministry of External Relations and Trade; Department of Statistics; Ministry of Defence.

Further information

Defence of New Zealand: Review of Defence Policy 1987. Government Printing Office, 1987.

Diplomatic List. Diplomatic and Consular Representatives in New Zealand. Government Printing Office (twice-yearly).

External Relations and Trade—a Guide to the Ministry and its Work. Ministry of External Relations and Trade.

information Bulletins (including an annual bulletin on disarmament and arms control). Ministry of Foreign Affairs.

New Zealand Defence: Resource Management Review 1988. Strategos Consulting Ltd.

New Zealand External Relations Review. Ministry of External Relations and Trade (quarterly).

Overseas Posts, a List of New Zealand Representatives Abroad. Ministry of External Relations and Trade (twice-yearly).

Report of the Ministry of Defence (Parl. paper G. 4).

Report of the Ministry of External Relations and Trade (Parl. paper A. 1).

Chapter 5. Population

The demography of New Zealand has changed dramatically in the past hundred years. The nation has passed through a ‘demographic transition’ similar to those experienced by most western countries, and despite continued reliance on agricultural exports, has become highly urbanised.

Family formation patterns have changed radically, the divorce rate has soared, and de facto unions have become common. The average family size has shrunk to less than half of what it was and is now at a historical low. Substantial reductions in mortality mean that New Zealanders now expect to live, on average, over 20 years longer than they did a century ago.

The population age structure has also undergone profound changes, largely as a result of peaks and troughs in the birth rate. The number of elderly New Zealanders has increased over 20-fold since 1876, and the population is ageing—a process that is expected to hasten when the ‘baby boom’ generation reaches retirement age after the turn of the century. Low birth rates, recent emigration levels and the ‘greying’ of population have raised the prospect of a future slow growth or no growth environment.

New Zealand's first 150 years mark an absorbing demographic history, full of dramatic changes, paradoxes as well as population predictions which simply went astray.

5.1 Population growth

The year 1840 is taken as the starting point for this discussion of changes in the New Zealand population. It marks the systematic colonisation of New Zealand, with the arrival of the first body of immigrants from the United Kingdom.

Until then, the population consisted of indigenous Maori, and European whalers, sealers, traders and missionaries in scattered settlements along the country's coastline. Contemporary estimates put the number of Maori between 100 000 and 125 000 (see inset). By the time the first census was conducted in 1857–58, the number had depleted to below 60 000, as a result of the recurrent problems of warfare and disease.

By contrast, the European population grew rapidly in the early years of colonisation, primarily through immigration from the British Isles. The 1857–58 census counted a total of 115 456 people in New Zealand: Europeans (59 413) already outnumbered Maori (56 043). These opposing growth patterns were to continue until the end of the century. The Maori population was to drop to a low of 42 113 in 1896, before the tide turned.

The discovery of gold in Otago in 1861, which brought a tremendous influx of people, and a rapid upturn in natural increase (excess of births over deaths) saw the annual growth rate climb to a peak of 20.7 percent during 1861–64. (Any population growing at such a rate doubles in less than three-and-a-half years.)

Immigration stagnated at the conclusion of the gold rushes and, despite a steep rise in natural increase, the growth rate more than halved. Increasing population itself had started to exert a dampening influence on the growth rate. The 1870s saw the implementation of a vigorous immigration and public works policy to stave off a possible economic stagnation. The arrival in New Zealand within nine years of 115 000 government-assisted immigrants, coupled with a further rise in natural increase, saw the total population reach 500 000 by 1880. The average annual rates of population growth during the 1874–78 and 1878–81 intercensal periods were very high: 7.3 and 5.1 percent, respectively.

Immigration ebbed when the boom subsided and economic stagnation set in, and during 1886–90 more people left the country than arrived (see inset). There was a small corresponding drop in natural increase, and the rate of population growth fell to only 1.5 percent per annum. An improving economy during the 1890s restored the earlier pattern of a positive migration balance and led to a small recovery in the growth rate. However, since then, the growth rate has never exceeded 3.0 percent per annum. Reversing the earlier trend, the Maori population also started to grow again. New Zealand's first million of population was reached in 1908.

The advent of World War I and a reduced level of net immigration meant slower growth during 1911–16 (1.5 percent per annum). But after the war there was a resurgence in growth, with the population increasing by an average of 2.2 percent per annum between 1916 and 1926. Net immigration contributed over one-third of the population increase during the period 1921–25, a direct result of the resumption of assisted immigration. During the Depression, departures exceeded arrivals and there was a corresponding decrease in the number of births. Population growth was sluggish and the annual growth rate fell to 1.1 percent during the 1926–36 intercensal period.

Table 5.1. TOTAL NEW ZEALAND POPULATION, 1858–1986 CENSUSES

Census*Total
population
Intercensal increase
NumberPercentAnnual
average
(percent)
* Omits censuses of 1861, 1864, 1867 and 1871 as censuses of Maori population were not taken in these years.
1858, 24 December115,462
1874, 1 March344,984
1878, 3 March458,007113,02332.767.33
1881, 3 April534,03076,02316.605.10
1886, 28 March620,45186,42116.183.07
1891, 5 April668,65148,2007.771.49
1896, 12 April743,21474,56311.152.13
1901, 31 March815,86272,6489.771.89
1906, 29 April936,309120,44714.762.75
1911, 2 April1 058 312122,00313.032.52
1916, 15 October1 149 22590,9138.591.50
1921, 17 April1 271 668122,44310.652.27
1926, 20 April1 408 139136,47110.732.06
1936, 24 March1 573 812165,67311.771.13
1945, 25 September1 702 330128,5188.170.83
1951, 17 April1 939 472237,14213.932.37
1956, 17 April2 174 062234,59012.102.31
1961, 18 April2 414 984240,92211.082.12
1966, 22 March2 676 919261,93510.852.11
1971, 23 March2 862 631185,7126.941.35
1976, 23 March3 129 383266,7529.321.80
1981, 24 March3 175 73746,3541.480.29
1986, 4 March3 307 084131,3474.140.82

Low birth rates and the net outflow of population painted a gloomy picture for the future growth. In his 1944 book Population and New Zealand's Problem, commentator Donald Sinclair warned ‘the present drift in population must be arrested if our nationhood or our race is to survive, although subsequent events proved the alarm to be premature’. Population growth resumed again in the late 1930s as the economic situation improved until the advent of World War II saw annual growth rates fall to 0.8 percent during the 1936–45 intercensal period—the lowest growth rate recorded since population statistics had been collected. Increased mortality, postponement of marriages and childbearing, and insignificant net immigration all contributed to the low population growth during this period.

All that changed after the war. The post-war years saw the growth rate climb to 2.4 percent during the 1945–51 intercensal period as the ‘baby boom’ and increased immigration levels made their impact. The second million of population was reached in 1952, 44 years after the first million. With the post-war baby boom, a positive migration balance, and a growth rate averaging 2 percent per annum, it took only 21 years to add the third million. Almost one-fifth of the growth came from net immigration. The projections prepared at the peak of the baby boom suggested a total population of over four and a half million by the end of the century (see inset section, 5.5). However, since 1973, New Zealand's population has increased by barely one-third of a million to reach 3.38 million at 31 December 1989.

There have been dramatic changes in the growth rate which could not have been foreseen two decades ago. Although the recession years of the late 1960s had recorded a brief turnaround in the external migration balance, because of the demographic legacy of the baby boom, the growth potentials in the medium term remained high. The large excess of departures over arrivals which followed would also have appeared a remote possibility in the early 1970s.

There have been significant fluctuations in the growth rate caused by wide swings in the level and direction of the external migration balance. The rate of population growth has varied between 0.29 percent and 2.11 percent per annum during the last five intercensal periods. In absolute terms, New Zealand's population grew by a record 266 752 during 1971–76, by only 46 354 during 1976–81 and by 131 347 during the latest intercensal period (1981–86). On an annual basis, the estimated population change ranged between an increase of 67 000 (March year 1974) and a decrease of 2000 (March year 1979).

The decline in population growth during the 1970s and 1980s is not unique to New Zealand. A number of other developed countries including France, Denmark, West Germany, Sweden, Switzerland, the United Kingdom and the United States, have all experienced reduced growth rates during this period.

Table 5.2. ESTIMATED POPULATION, 1885–1989

YearTotal population
at 31 December
Mean population
for year ended
31 December
1885619,323613,862
1886631,355624,275
1887645,330638,343
1888649,349647,340
1889658,021653,685
1890667,477662,749
1891676,051671,776
1892692,426684,239
1893714,258703,342
1894728,121721,190
1895740,699734,410
1896754,016746,288
1897768,910761,463
1898783,317776,114
1899796,359789,838
1900808,132802,246
1901830,800821,111
1902851,072840,936
1903875,648863,360
1904900,682888,165
1905925,605913,144
1906956,457943,325
1907977,215966,836
19081 008 373992,794
19091 030 6571 019 515
19101 050 4101 040 534
19111 075 2501 063 887
19121 102 4711 088 861
19131 134 5061 118 488
19141 145 8381 140 172
19151 152 6381 149 238
19161 150 3391 149 225
19171 147 4481 148 893
19181 158 1491 152 798
19191 227 1811 192 665
19201 257 6111 242 396
19211 292 7171 276 652
19221 318 8841 305 126
19231 343 0211 328 193
19241 370 4031 352 618
19251 401 2301 384 428
19261 429 7001 413 800
19311 522 7001 514 200
19361 584 6001 575 200
19391 641 6001 628 500
19401 633 6001 637 300
19411 631 2001 630 900
19421 636 4001 639 500
19431 642 0001 635 600
19441 676 3001 655 800
19451 727 8001 694 700
19461 781 2001 759 600
19471 817 5001 798 300
19481 853 9001 834 700
19491 892 1001 871 700
19501 927 7001 909 100
19511 970 5001 947 600
19522 024 6001 996 200
19532 074 7002 048 800
19542 118 4002 094 900
19552 164 8002 139 000
19562 209 2002 182 800
19572 262 8002 232 500
19582 316 0002 285 800
19592 359 7002 334 600
19602 403 6002 377 000
19612 461 3002 426 700
19622 515 8002 484 900
19632 566 9002 536 900
19642 617 0002 589 100
19652 663 8002 635 300
19662 711 3002 682 600
19672 745 0002 727 700
19682 773 0002 753 500
19692 804 0002 780 100
19702 852 1002 819 600
19712 898 5002 864 200
19722 959 7002 915 600
19733 024 9002 977 100
19743 091 9003 041 800
19753 143 7003 100 100
19763 163 4003 131 800
19773 166 4003 142 600
19783 165 2003 143 500
19793 163 9003 137 800
19803 176 4003 144 000
19813 194 5003 156 700
19823 226 8003 180 800
19833 264 8003 221 700
19843 293 0003 252 800
19853 303 1003 271 500
19863 316 7003 278 300
19873 349 1003 308 800
19883 356 2003 325 900
19893 384 6003 343 100

5.2 Distribution of population

Three major trends stand out prominently in the historical geographic distribution and redistribution of the population of New Zealand over the last 150 years. The first is for the greater proportion of people to live in the north of the country. The second is the tendency for people to move from south to north. A third is for an increasing degree of urbanisation and in particular, a concentration of people in the main centres.

Initial European settlement of New Zealand prior to 1840 was sporadic and on a small scale. It mainly consisted of whaling bases, small trading stations and missionary centres. The whaling bases were dotted along the coasts of the South Island and lower North Island. Trading and missionary activities were initially based in the Bay of Islands and other districts in the north of the North Island. Due to trading opportunities with Maori the Bay of Islands became the centre of European population in the early period of European settlement. During the 1830s missionaries began to spread out and moved south from the Bay of Islands. It was estimated that by 1839 the European population of New Zealand numbered about 1000.

The distribution of the Maori population is described in section 5.4, Composition of the population.

North and South Islands

European settlement accelerated substantially from 1840 onwards. The New Zealand Company established Wellington, Wanganui, New Plymouth and Nelson in the early 1840s and by 1845 had alone brought 9000 people to New Zealand. In 1842 the population of non-Maori was over 11 000 and by 1851 had climbed to over 26 000. For a time the North Island consistently gained more people than the South. By 1858, 57 percent of the non-Maori and 75 percent of the total population was located in the North Island, however, the balance soon changed. The 1861 census revealed that the number of non-Maori in the South Island had surpassed that of those in the North Island (no census of Maori was taken that year). The lead was maintained until 1896. This was a unique period in the history of European colonisation. It was the only time that the population of the South Island consistently exceeded that of the North. The rapid growth in numbers in the south during the 1850s and 1860s was a consequence of several factors, although the discovers' of gold in Otago and Westland was the central one. Tens of thousands of prospectors flocked to the gold-fields. Otago's population increased five-fold between 1861 and 1863. Following the diggers were service industries and agriculture. Secondary industries began to develop in the wake of the gold boom and the opening up of new land. And unlike the North Island there was limited conflict with Maori over land. This led to generally more rapid development and the expansion of agriculture into the interior of the island.

Table 5.3. POPULATION OF NORTH AND SOUTH ISLANDS, 1858–1986 CENSUSES

CensusNorth IslandSouth IslandTotal
population
185887,15028,312115,462
1874155,472189,512344,984
1878199,523258,484458,007
1881234,648299,382534,030
1886290,009330,442620,451
1891321,247347,404668,651
1896377,954365,260743,214
1901431,471384,391815,862
1906521,899414,410936,309
1911610,599447,7131 058 312
1916695,396453,8291 149 225
1921791,918479,7501 271 668
1926892,679515,4601 408 139
19361 018 038555,7741 573 812
19451 146 292556,0061 702 298
19511 313 869625,6031 939 472
19561 497 364676,6982 174 062
19611 684 785730,1992 414 984
19661 893 326783,5932 676 919
19712 051 363811,2682 862 631
19762 268 393860,9903 129 383
19812 322 989852,7483 175 737
19862 441 615865,4693 307 084

The initial alluvial gold rushes had ended by the 1870s. However, after a short lull high levels of immigration were maintained, bolstered by Vogel's assisted passage scheme. From 1867 the proportion of the total population resident in the North Island began to steadily increase. A strengthening economic base and suppression of Maori opposition to land alienation made the prospect of settling in the North Island more attractive. Farming in the North Island became increasingly feasible and profitable with innovations in agricultural methods and, in particular, the development of refrigeration. Large estates were also being broken up by the 1890s and this contributed to more intensive settlement. The greater opportunities seemingly available ensured that the North Island became the usual destination chosen by both external and internal migrants. At the same time the South Island lost people due to migration and the North Island population experienced a higher rate of natural increase. By 1901 these factors resulted in the population of the North Island again exceeding that of the South Island.

Since that time the North Island's population has continued to expand at a greater rate, and its share of the total population has continued to grow. A little over 60 percent of the population resided in the North Island by 1916. This figure rose to 70 percent by 1966 and to over 73 percent by 1986.

From the 1940s the centre of gravity of the North Island population has itself gradually moved further north.

Census questions

Personal questionnaire

QuestionPeriod askedComments
Full name1851–1986 
Sex1851–1986
Age1851–1986
Marital status1851–1986E (pre-1926); 15+(1851–1916, 1971–86); 16+(1921–66)
—de facto status1981, 1986 
—duration of current marriage whether married to a European1911–21E (married women only)
1921MCI
No. of children
—born alive within marriage1911–21, 1945, 1971–76Married women only E (1911–21); E, MCI (1945). Existing marriages only 1911–21; All marriages 1945, 1971–6.
—born alive198115+ (resident females)
—still living1911–1921E (married women only)
—deceased1911E (married women only)
—dependant (i.e. under 16yrs)1921–66E (pre-1951)
Orphanhood1921–36E (1916)
Infirmities1851–1916E
Relationship to occupier or to person in charge of dwelling1851–1986E (pre-1945)
Religion1851–1986E (pre-1926); Voluntary.
Social security benefits1976–8615+
Social security income198115+
Income group1926–86E (pre-1951)
Life insurance sum assured1921E
Address on census night1956–86 
Usual residential address
—on census night1921–86E (1936, 1945)
—1 year ago1971, 1981 
—5 years ago1971–86 
—no of years lived at1976, 1986 
Years lived in N.Z.1851–58, 1901–86E (pre-1951)
Country of birth1851–1921, 1936–86E (pre-1951)
—of father1921E
Nationality
—whether British or foreign1874–1921E Actual nationality asked in 1921
—how acquired1901–1921E British subjects only (pre-1921). All Europeans (1921).
Race or ethnic origin1874–1986E (pre-1921) Only Chinese required to identify themselves (pre 1916). Detailed race statistics from 1916
Descendant of a N.Z. Maori1976Response to Maori Affairs Act 1974 and Electoral Act 1975 changes of definition of Maori
Working hours1945–86E (1945); 15+ (1971–81); Distinction between 1st, 2nd and other jobs (1981, 1986)
Employment status1891–1986E (pre-1951) 15+ (1971–86)
Occupation1874–1986E (pre-1921) 15+ (1971–86)
Industry1851–1986E (pre-1951) 15+ (1971–86).
Name of employing organisation1945–86E (pre-1951) 15+ (1971–86)
Address of workplace1971–8615+
Travel to work
—means1971–8615+
—time taken1945, 1961, 1971E (1945) 15+ (1971)
Unemployment (see also Employment status)
—persons unemployed1896–1936E
—duration of1916–36E
—whether registered1936E
Working time lost through
—sickness/injury1926–45E
—other causes1936E
Seeking work in last four weeks1986 
Infirmities causing inability to work1851, 1861–1916E
Voluntary work198615+
War service
—wars in which served1936–71E(1936) 15+ (1971)
—forces in which served1936–66E(1936)
—whether receiving war pension1936E
Intention to postpone retirement1945E
Intended industry in peacetime1945E
Intended occupation in peacetime1945E Armed forces or ‘manpowered’ individuals only.
Literacy1851–1921E
Education
—Sunday schooling1858–1911E
—establishments being attended1851–1921E
—establishments attended in past1966–8115+
—duration and level1966–71, 198115+
Qualifications
—educational1966–7115+ (1971, 1981, 1986)
1981–86
—vocational1971, 1981, 198615+
Courses for personal interest197615+
Sugar diabetes1971Treatment methods used.
Cigarette smoking1976–8115+

Dwellings questionnaire

For early censuses, a single large questionnaire was used for each dwelling, but in 1921 a ‘personal schedule’ was introduced for use in non-private dwellings, with continued usage of a ‘householder's schedule’ for private dwellings. In 1926 and 1936, three types of schedule were used, namely the ‘householders dwelling schedule’, ‘single householder's family schedule’ and ‘personal schedule’. Dwelling and personal schedules were used for the 1945 census and thereafter, but renamed ‘questionnaires’ in 1976.

QuestionPeriod askedNotes
Address of dwelling1926–86 
Name of nearest post office1916–86E (pre-1951) Rural areas only.
Distance to nearest post office1916–86E (pre-1951) Rural areas only.
Type of dwelling
     —Private/non-private1916–86E (pre-1926)
     —Private1926–86 
     —non-private1911–86 
Name of non-private dwelling1926–36, 1981E (1926–36)
Number of rooms in:
     —private dwellings1861–1981E (pre-1951)
     —non-private dwellings1901–76E (pre-1951)
Number of bedrooms1976–86 
Material of outer walls1851–1981E (pre-1951) P (1976–81)
Material of roof1961–81P (1976–81)
Heat insulation (ceiling & outer walls)1976–1981P
Year or period built1956E
Permanent or temporary1926E
No. of storeys1981 
Flats built as such1926, 1951E (1926)
Name of occupier or person in charge1945–86E (1945)
Occupants, number of1916–86E (pre-1951)
Domestic servants, number of1901E
Absent persons
     —no of each sex1926E
     —details of each absentee1971–86P
Tenure1916–86E (pre-1926); P (1971–86)
Rent Rented or leased dwellings only.
     —paid per week1911–86E (pre-1951) P (1911–86)
     —from whom rented1981, 1986P
     —furnished/unfurnished1936, 1951–86E (1936); P (1971–86)
Distance to nearest1945E
—shopping facilities
—transport services
—public primary school
Cooking, means of1945, 1956–81E (1945)
Water heating1945, 1956–86E (1945)
     —type or main supply1966–86 
     —type of secondary supply1976–86 
Heating of dwelling
     —principal means of1961–71P 1986
     —source of energy for1971–86 
Source of electrical supply1945E
Electric light1945MCI.
Piped water supply laid on1945, 1956E (1945)
Principal source of water supply1961–71 
Amenities1945–81Flats only (1951) P (1971–81) Items listed varied over time
Vehicles, number owned or in care of household members
     —motor cars1971, 1981–86P
     —motor cycles or scooters1981P
Pleasure boats1971, 1981P
Caravans1976–81P
Holiday residence, address of1971, 1981P
Home vegetable production1956, 1971P (1971)
Poultry1861–91, 1906–71E (pre-1945); P (1971)
Bees1906–21E.

Abbreviations

E—General European Census only.

15+—Asked of those 15 years and older only.

16+—Asked of those 16 years and older only.

MCI—Asked of Maori living in North Island or Chatham Islands only.

U16—Asked of these under 16 years only.

P—Private dwelling only.

Many influences have contributed to the persistence and amplification of the population differential between the two islands. The North Island has had a higher birth rate, a lower mortality rate and, as a result, a higher rate of natural increase. The bulk of overseas migrants settle in the North Island and people are also gained internally from the South Island.

Internal migration

The movement of people within and between regions is an important determinant of New Zealand's population distribution. Overall, New Zealanders are a mobile people and, while the majority of movement is within regions there is a significant traffic of people between regions. These latter flows have the greater impact on regional populations. In addition to affecting the size of the population of different regions, inter-regional migration also influences age structures, fertility levels and population growth rates.

For the last hundred years the trend has been for a northward drift of people. During the decade 1971–81 regions in the north of each island gained more people from internal migration than did other regions. The highest growth areas over this period were Northland and Bay of Plenty in the North Island and Nelson Bays in the South Island. Losses were also recorded in a number of regions in both main islands.

Table 5.4. MIGRATION BETWEEN LOCAL GOVERNMENT REGIONS, 1981–1986

Local government regionUsually resident
population aged
5 years and over
at 1986 census
In-migration (2)Out-migration (3)Gross
migration
(2)+(3)=(4)
Net migration
(2)−(3)=(5)
Migration
effectiveness
ratio
(5)/(4)×100
Northland111,88219,56914,18433,7535,38515.95
Auckland813,98462,79951,258114,05711,54110.12
Thames Valley51,68111,03410,31721,3517173.36
Bay of Plenty167,90728,79123,06751,8585,72411.04
Waikato207,64229,84731,89961,746−2 052−3.32
Tongariro34,7228,1969,36017,556−1 164−6.63
East Cape48,5496,7148,23214,946−1 518−10.16
Hawkes Bay127,68914,44816,14030,588−1 692−5.53
Taranaki99,14410,98011,39122,371−411−1.84
Wanganui62,78110,68912,12622,815−1 437−6.30
Manawatu106,38618,76518,95737,722−192−0.51
Horowhenua49,50911,4668,22619,6923,24016.45
Wellington300,08733,70842,45976,167−8 751−11.49
Wairarapa35,9435,3166,48011,796−1 164−9.87
Nelson Bays62,4399,1748,02517,1991,1496.68
Marlborough33,9276,6066,09912,7055073.99
West Coast30,3784,9385,58610,524−648−6 16
Canterbury320,17231,17929,55960,7381,6202.67
Aorangi74,7099,07312,53720,610−4 464−21.66
Clutha-Central Otago41,0258,8957,82116,7161,0746.42
Coastal-North Otago126,90315,63317,56833,201−1 935−5.83
Southland94,8517,90213,42521,327−5 523−25.90

Auckland is a key region in internal migration patterns. Throughout the 1971–1981 period it accrued population at the expense of most other regions. The second major region for receiving migrants was Wellington. It functioned as a re-distribution centre. Population was gained from the South Island and also sent to northern regions. Canterbury performed a similar function in the South Island.

In most cases population flows favoured regions to the north. Thus, Southland lost population to Otago, Otago to Canterbury, Canterbury lost to Wellington and Wellington lost to Auckland. In total the North Island gained population from the South Island during the 1971–1981 decade. Although this trend is continuing, between 1981 and 1986, the shift from south to north was at its lowest level since the late 1960s.

The significance of the ‘drift north’, however, must be put in perspective. Internal migration is not a one-way process. Typically, for each migration stream moving in one direction there is an opposing counter stream. For example, during the early 1980s there was a relatively consistent south-to-north movement of 42 000 people. There was also a north-to-south flow of around 33 000. Further, a sizeable proportion of internal migration occurs between adjacent regions. The major flows over long distances, however, are mainly between major urban areas.

Internal migrants are not spread evenly across age groups. Almost 60 percent are within the 15–44 age group and just under one-third are in the 15–24 age group.

Urban-rural balance

The balance of urban and rural components of population is another major feature of New Zealand's changing demography.

Over the past 150 years substantial changes in the sizes of each of the populations have occurred, but the most significant trend has been steadily increasing urbanisation.

In 1858 over two-thirds of the population lived in rural areas. With the rise of agriculture in the South Island and increasing European settlement in the North Island, the rural proportion of the population had risen to over three-quarters by 1871. However, this was the peak.

As technological advances in agriculture were made and processing and manufacturing industries and commerce grew, the trend towards urbanisation developed. In 1874 a little over one-third of the population lived in urban areas. The trend towards urbanisation slowed during the 1890s, when there were renewed initiatives to encourage the settlement of rural areas. Nevertheless, New Zealand was by this time considered to be by international standards highly urbanised.

By 1916 more than half the population lived in urban areas and the trend continued. Further developments in primary industries resulted in less labour-intensive processes.

Table 5.5. URBAN-RURAL POPULATION, 1881–1986 CENSUSES*

Non-Maori populationUrbanRural
numberpercentnumberpercent

* Excludes shipping.

Boroughs and cities, vs. counties (including town districts).

Urban areas and towns with over 1000 population vs. remaining population.

Census
1881194,98140.1291,23859.9
1886245,61242.9327,32857.1
1891270,34343.4352,09756.6
1896307,29444.0391,73556.0
1901350,20245.6417,59654.4
1906424,61448.1458,79751.9
1911505,59850.4496,77949.6
1916585,30653.9501,25946.1
1921681,98856.2530,85243.8
Total population;
1926953,17368.0448,50132.0
19361 065 22867.9503,88532.1
19451 227 06974.2427,07625.8
19511 406 51672.7527,07827.3
19561 600 80873.8568,80626.2
19611 840 20276.4569,21723.6
19662 119 08579.3553,02320.7
19712 328 87681.5528,60918.5
19762 614 11983.6511,00416.4
19812 658 96883.8512,42316.2
19862 770 02483.8533,68716.2

Improved communications and transportation encouraged the centralisation of previously dispersed services, and secondary and tertiary industries continued to expand. Almost four-fifths of the population lived in urban areas by 1966, and by 1986 the urban proportion of the population had risen to over 84 percent of the total.

The cities

An important aspect of urbanisation is the proportion of people living in major urban areas. As urbanisation has intensified so has the concentration of people in major urban areas. In 1874 a little over one-third of the population lived in urban areas and a little under one-fifth lived in one of the four main centres. By 1916, when half the population was classified as urban, over one-third lived in one of the four main metropolitan areas, and by 1961, when the urban population had reached almost three-fifths of the total, two-fifths of the total also lived in one of the four major metropolitan areas. At the time of the 1986 census, while 84 percent of population lived in urban areas, 68 percent lived in ‘main urban areas’ (places with 30 000 people or over).

A recent feature of urbanisation has been the growing concentration of people in Auckland. In 1986 a quarter of New Zealand's population lived there, compared with only 15 percent in 1921.

The populations of specific urban areas have grown at widely varying rates over the last century. Although the major urban areas of today have almost all shown a consistent increase in population, other once prominent areas have faded and others taken their places. For example, patterns of initial settlement and regional economies ensured both Lyttleton and Hokitika a place amongst the ten most populated areas during the 1870s. In contrast, Palmerston North only became prominent towards the close of the nineteenth century; and Hamilton not until well into the twentieth century.

From the earliest records Auckland, Wellington, Christchurch and Dunedin stand out as major population centres. However, their ranking in terms of relative size has varied a great deal. In 1858 Auckland was New Zealand's largest city, with a population of only 6283. Wellington was the second largest having a population of 4516. Next were Nelson (2701) and Dunedin (1712). Different rates of development and the temporary economic preeminence of the South Island led to a subsequent reshuffle in the ranking, and by 1864 Dunedin, with a population of 15 790, was the most populous area. Auckland had the second highest population of 12 423. Christchurch was third with 6438 people and Wellington fourth with a population of 4741.

Dunedin remained the largest urban area until 1886. In that year Auckland had a population of 57 048, while Dunedin's population was 45 518. The populations of Christchurch and Wellington were 44 688 and 27 833 respectively.

It was not until 1916 that the present ranking was established. In that year the populations of the four main centres were: Auckland 133 712; Wellington 95 235; Christchurch 92 733; Dunedin 68 716.

Today, while a large majority of the population live in urban areas, there has been a decline in the growth of many urban areas. This began in the 1970s and is continuing. In most areas, other than Auckland, the growth rates are virtually static. Between 1981 and 1986 Wellington, Christchurch and Dunedin all lost population through net outward migration. An effect of this is a stabilisation of the relative urban and rural components of the population.

Table 5.6. POPULATION OF 20 LARGEST URBAN AREAS AT SELECTED CENSUSES

 1989*19861961193619111886

* Estimated at 31 March.

Excludes Maori.

Auckland850,900820,754448,365226,366102,67633,161
Wellington324,600325,697249,532159,35770,72925,945
Christchurch301,500299,373220,510133,51580,19329,655
Dunedin106,400106,864105,00385,60764,23723,243
Hamilton104,100101,81450,50520,0963,5421,201
Palmerston North67,40067,40543,18524,37210,9912,606
Tauranga62,70059,43524,6595,8081,3461,148
Hastings55,60054,90932,49017,9206,2861,504
Rotorua53,60052,00125,0688,8992,390
Napier52,10052,15132,71619,17011,7367,680
Invercargill51,80052,80741,08825,91215,8588,251
New Plymouth47,90047,38432,38718,5975,2383,093
Nelson45,40044,59325,32113,4938,2347,315
Whangarei43,80044,04321,7909,8682,664
Wanganui41,00040,75835,69425,75014,7024,901
Gisborne31,80032,23825,06515,8788,1962,194
Timaru28,30028,62126,42418,77111,2803,754
Kapiti25,10023,20312,3055,3671,068
Blenheim23,10022,68111,9565,0363,7713,094
Masterton19,95020,14515,1289,0965,1823,160

Population of local government areas today

The following tables outline the population of New Zealand's territorial local authority areas and local government regions. All data conforms with the boundaries established after the 1989 reorganisation of local government. For population figures for cities, boroughs and counties in existence before 1 November 1989, refer to the 1988–89 Yearbook.

Table 5.7. POPULATION OF TERRITORIAL LOCAL AUTHORITIES

Territorial authority*Census of
Population
1986
Estimated at
31 March 1989
Change 1986–89

* Boundaries at 1 November 1989.

Figures have been rounded.

Cities  numberpercent
     North Shore144,149147,4003,3002.3
     Waitakere122,581128,8006,2005.1
     Auckland301,448306,3004,9001.6
     Manukau206,741219,50012,9006.2
     Hamilton95,38897,6002,2002.3
     Napier52,51252,500
     Palmerston North66,82166,800
     Porirua45,66347,2001,5003.4
     Upper Hutt37,29037,100−200−0.5
     Lower Hutt95,34295,000−300−0.4
     Wellington149,868147,800−2 100−1.4
     Nelson35,91936,5006001.5
     Christchurch286,601288,4001,8000.6
     Dunedin114,349113,800−500−0.5
            Subtotal, cities1 754 8021 784 80030,1001.7
Districts
     Far North47,56649,4001,8003.9
     Whangarei62,27863,0007001.2
     Kaipara17,20017 350.1500.9
     Rodney45,88350,8004,90010.7
     Papakura32,76534,2001,4004.4
     Franklin37,32838,6001,3003.4
     Thames-Coromandel21,71623,2001,5006.8
     Hauraki15,90416,0001000.6
     Waikato36,47536,8003000.9
     Matamata-Piako29,40929,5001000.3
     Waipa35,55336,8001,2003.5
     Otorohanga9,2829,120−160−1.7
     South Waikato28,26627,400−900−3.1
     Waitomo10,52210,200−300−3.1
     Taupo29,01729,9009003.0
     Western Bay of Plenty26,90928,6001,7006.3
     Tauranga60,04663,8003,8006.3
     Rotoma62,91264,9002,0003.2
     Whakatane31,18531,5003001.0
     Kawerau8,3118,040−270−3.3
     Opotiki8,1348,5504205.1
     Gisborne45,75844,900−900−1.9
     Wairoa10,68010,400−300−2.6
     Hastings64,37165,1007001.1
     Central Hawkes Bay13,05413,1501000.7
     New Plymouth66,97268,2001,2001.8
     Stratford10,08610,050−50−0.4
     South Taranaki30,77030,000−800−2.5
     Ruapehu19,46119,000−450−2.4
     Wanganui44,01944,2002000.4
     Rangitikei17,69916,950−750−4.2
     Manawatu25,82626,1003001.1
     Tararua19,88419,700−200−0.9
     Horowhenua28,85829,3004001.5
     Kapiti Coast29,75431,9002,1007.2
     Masterton22,50822,300−200−0.9
     Carterton6,3366,320−20−0.3
     South Wairarapa8,7478,8701201.4
     Tasman33,72834,9001,2003.5
     Marlborough34,59734,9003000.9
     Kaikoura3,5293,560300.9
     Buller11,12411,1000−0.2
     Grey14,30014,300
     Westland9,5199,470−50−0.5
     Hurunui9,2809,120−160−1.7
     Waimakariri25,40026,3009003.5
     Banks Peninsula7,2327,3901602.2
     Selwyn20,52021,30080018
     Ashburton24,85524,600−300−1.0
     Timaru43,39443,100−300−0.7
     Mackenzie4,8664,320−550−11.2
     Waimate8,2348,030−200−2.5
     Waitaki23,26822,900−400−1.6
     Central Otago16,80516,750−50−0.3
     Queenstown-Lakes12,02413,1001,1008.9
     Clutha19,20118,250−950−5.0
     Southland34,55833,800−800−2.2
     Gore13,87713,400−500−14
     Invercargill56,88255,800−1 200−2.0
            Subtotal, districts1 549 7821 570 50021,9001.4
Chatham Islands County775770−10−0.6
Population outside territorial authority areas3,0003,000
            Total, New Zealand3 307 0843 359 00051 9001.6

Table 5.8. POPULATION OF LOCAL GOVERNMENT REGIONS*

RegionCensus of
Population
1986
Estimated at
31 March 1989
Change 1986–89

* Boundaries at 1 November 1989.

Figures have been rounded.

Includes Kermadec Islands and oil rigs.

§ Includes Chatham Islands County and Campbell Island.

North Island  numberpercent
Northland127,688130,4002,7002.1
Auckland880,979915,30034,3003.9
Waikato325,220330,7005,5001.7
Bay of Plenty194,622202,4007,8004.0
Gisborne45,95345,100−900−1.9
Hawkes Bay140,844141,3005000.3
Taranaki107,498107,9004000.4
Manawatu-Wanganui223,021222,500−500−0.2
Wellington395,610396,6001,0000.3
Remainder North Island179200
            Subtotal, North Island2 441 6152 492 40050,8002.1
South Island
Nelson-Marlborough106,775108,8002,0001.9
West Coast36,37536,300−100−0.2
Canterbury433,017435,3002,3000.5
Otago183,005182,200−800−0.4
Southland105,512103,200−2 300−2.2
Remainder South Island§785800
            Subtotal, South Island865,469866,6001,1000.1
            Total, New Zealand3 307 0843 359 00051 9001.6

5.3 Components of population change

As discussed in section 5.1 above, population change has two main components, natural increase (the excess of births over deaths) and net migration. To indicate the relative importance of these components, in the period 1858–1989 as a whole, net migration contributed 23 percent of the total population growth in New Zealand, and natural increase the remaining 77 percent.

In the earlier years, except for a brief period following the end of the gold boom, net immigration was the main contributor to population growth. Beginning in the late 1870s, natural increase became the dominant element in population growth and this pattern has remained unchanged for well over a century. The relative contribution of the two components has varied from one five-year period to another, but net immigration's share has never exceeded two-fifths. In only three five-year periods (1941–45, 1966–70 and 1981–85), it contributed less than one-tenth of the total population growth, while in three periods (1931–35, 1976–80 and 1986–89) because of a net population outflow, its contribution was negative.

The volatility of migration trends contrasted with the upward trend in natural increase until 1961. There were two brief interruptions to the upward trend in natural increase and these were caused by a decline in births—the first occurred in 1891–95, and the other in 1926–35. This aside, the rise in natural increase has been prodigious. In 1861–65, births exceeded deaths by only 16 610—a century later in 1961–65, the margin had soared to 205 164. Since then, the gap between births and deaths has gradually diminished because of a significant drop in the number of live births and a corresponding rise in the number of deaths. In 1981–85, births exceeded deaths by 125 109, a drop of 39 percent on the 20 years before. The rate of natural increase of population had tumbled from 1.7 percent to 0.8 percent.

The following text briefly looks at the various population processes—fertility, mortality and migration—individually and reviews their major determinants.

Fertility

Changing levels of fertility have played a major role in determining the size and structure of New Zealand's population over the years. In the early colonial days, marriage was early, childbearing was frequent and modern contraceptive practice was uncommon. High masculinity of the early immigrant population—with men outnumbering women by five to two at ages 20–39 years—virtually ensured early marriages. The frontier conditions then existing also favoured large families. Available evidence suggests that both Maori and pakeha women bore, on average, six or more children. The Maori norms were to stay that way, more or less, for another century. However, non-Maori fertility levels started to decline in the 1870s, even before the economic depression of the 1880s set in.

Between 1870 and 1892, the non-Maori birth rate dropped by one-third, from over 42 births per 1000 mean population to 28 per 1000. The 1911 census found that non-Maori women born in 1850–51, who reached age 20 in 1870–71, averaged 6.3 children during their reproductive life; those born in 1870–71, who reached age 20 in 1890–91, averaged only 3.8 children. So rapid was the fertility decline that despite a significant growth in the number of women in childbearing ages (or prospective mothers), the number of births fell from 19 846 to 17 876, between 1884 and 1892.

There is no simple explanation for this shift to smaller families, which involved both delayed marriages and limitation of childbearing within marriages. Contraceptive methods were still rudimentary, and abortion was illegal (see inset section 8.2). Some demographers see the introduction of compulsory education and its upgrading in New Zealand as the likely catalyst for change in demographic behaviour. Others have drawn attention to a marked similarity in the timing of the initial fertility decline in New Zealand and the United Kingdom, from where the New Zealand colonists mainly originated. This view regards the importation of changing social norms and attitudes through immigration as important.

The ‘long depression’ of the 1880s was probably another key influence. It may not have triggered off the fertility decline, but it possibly helped maintain it. Early marriages became less common, although a reduced imbalance of the sexes, as the society became more settled, possibly contributed to this change. In 1876, 83 percent of women aged 25–29 years were married; by 1901, the proportion had dropped to 58 percent.

Subsequently, the dominant European pattern of later marriages and a high proportion not marrying became established. It is important to note though, that the decline in fertility continued even after economic conditions improved measurably in the 1890s. The crude birth rate fell further to 23.3 per 1000 in 1901.

The early years of the new century saw a brief recovery in the birth rate, to 27.5 per 1000, but by the end of the decade New Zealand fertility had resumed its downward trend. Beginning in 1912, the registration of births and deaths became compulsory for the non-Maori population and, as a consequence, detailed tabulations on births by age of mother and her previous issue(s) became available, offering the first detailed data for analysis by demographers.

In 1913, the average family size, as implied by the total fertility rate, stood at 3.3 births per woman. The total fertility rate is the average number of births a women would have during her reproductive life if she experienced the age-specific fertility rates for a given year.

By then, late childbearing was the prevailing norm, with barely one-fifth of childbearing being undertaken at ages below 25 years and over half beyond 30 years. Age group 25–29 years was the commonest age group for childbearing, followed in that order by age group 30–34 years, 20–24 years, and 35–39 years. The fertility rate for women aged 40–44 years was well over twice that for women under 20 years, and the median age of mothers bearing their first child was 26 years.

By 1930, when the Depression overtook New Zealand, the total fertility rate had already dropped to 2.6 births per woman. High rates of unemployment and a general economic insecurity forced many New Zealanders to postpone or perhaps forego marriage and childbearing. Where 30 percent of women born in the late 1870s had borne five or more children, among those born in 1902–06, who were at peak childbearing ages during the Depression, the corresponding figure was only 14 percent. On the other hand, there was a significant increase in the proportion of women bearing one child or none, from 28 to 36 percent. Given the imperfect nature of the contraceptive methods then available, the recourse to abortion must have been widespread, and the McMillan Committee estimated that at least 20 percent of the pregnancies begun during the mid-1930s were terminated by abortion.

The total fertility rate fell to a record low of 2.2 births per woman in 1935, which was barely sufficient for the population to replace itself, in the long run, without migration. For the second time in New Zealand's demographic history, the number of births actually fell, from 30 448 in 1922 to 29 045 in 1928 and further to 27 216 in 1935. The recovery after the trough of the Depression was quite rapid and was probably caused by making up of deferred marriages and births. By the beginning of World War II, the total fertility rate had already increased to 2.6 births per woman. Another sharp increase followed the demobilisation of forces, when the making up of marriages and births postponed during the war years, pushed the rate to 3.6 births per woman in 1947.

Table 5.9. FERTILITY TRENDS AND PATTERNS

YearTotal
live births
Crude
birth rate
Total
fertility rate
;
Gross
reproduction
rate§
;
Net
reproduction
rate
;
Ex-nuptial
birth rate**

* Non-Maori population only.

Per 1000 mean population.

Average number of births a woman would have during her reproductive life if she was exposed to the fertility rates experienced during that year.

§ Average number of daughters a woman would bear during her reproductive life assuming that the age-of-mother-specific birth rates experienced during that year continue to apply.

Figures up to 1966 are for non-Maori population.

Number of daughters that a woman would bear during her reproductive life assuming that the age-of-mother-specific birth rates and mortality rates experienced during that year continue to apply.

** Per 1000 mean number of not-married women aged 15–49 years.

1881*18,73237.95........
1886*19,29934.88........
1891*18,27329.01........
1896*18,61226.33........
1901*20,49123.34........
1906*24,25227.08........
1911*26,35425.97......8.93
1916*28,50925.94......9.24
192129,62323.24......9.21
192629,90421.152.88....9.92
193128,86719.062.56......
193628,39518.032.301.040.976.71
194139,17024.022.931.371.27..
194647,52427.013.451.591.4711.67
195149,80625.573.601.641.5814.85
195656,53125.903.981.841.7717.79
196165,39026.954.312.031.9624.14
196660,00322.373.381.581.5337.72
197164,46022.503.131.551.5145.10
197655,10517.602.241.091.0736.86
198150,79416.091.960.980.9638.81
198652,82416.111.960.960.9439.83
198755,25416.702.020.980.9542.55
198857,54617.302.091.020.9946.04
198957,42717.382.101.031.0049.05

Also in the post-war years. New Zealanders began to marry young, and marriage became nearly universal. By 1961, half of all women were married before age 22 years, compared with barely a quarter married by that age in the early 1940s. These trends were reinforced by early childbearing and the shortening of birth intervals, in the mid-1950s, age group 20–24 years replaced 25–29 years as the commonest age group for childbearing. The median age at first birth fell from 25.5 years in 1945 to 22.9 years in 1964. Fewer couples remained childless or had only one child. The net result was soaring birth numbers, up from just over 27 000 in 1935, to about 42 000 in 1945 and to over 65 000 in 1961. Over 1.1 million New Zealanders were born between 1945 and 1964—the ‘baby boomers’.

As was the case elsewhere, this burgeoning in the number of births was to reshape the population age-pyramid (see diagrams, section 5.4) and pose many and varied problems for policy-makers and planners in both the public and private sectors. At its peak in 1961, the total fertility rate exceeded 4.3 births per woman and significantly exceeded the figures for other developed nations. However, the upward trend was reversed in the early 1960s, just as suddenly as it had begun, which has prompted demographers to suggest that the ‘baby boom’ was merely a temporary diversion from a long-term downward trend.

The turnaround coincided with the introduction of the oral contraceptive pill in the early 1960s, but the ‘cause-and-effect’ relationship is not clear-cut. It is possible that the increased acceptance and use of the pill helped sustain the downward trend. By the mid-1970s, the post-Depression rise in fertility had ended. The total fertility rate fell below the ‘replacement level’ in 1978 and then to an all-time low of 1.92 births per woman in 1983. Its impact on the annual number of births was large. Despite a substantial increase in the number of prospective mothers, caused by the large baby boom cohorts entering the prime reproductive ages, and thus the prospects of an ‘echo boom’, births dropped from over 64 000 in 1971 to below 50 000 in 1982.

Since 1983, there has been a minor resurgence in fertility and the 1989 rate implies a lifetime average of 2.11 births per woman, which is barely sufficient for the population to replace itself, without migration. However, it is still too early to suggest whether the upturn is merely a temporary phenomenon, arising largely from the making up of deferred childbearing by women aged 28–36 years, or is a long-term trend, reflecting a permanent shift to later childbearing.

The dynamics of the fertility decline or of the current low fertility levels are complex. Increased use of contraceptives, increased participation of women in the labour force, rising divorce rates and general economic conditions have probably all, directly or indirectly, contributed to it. Patterns of marriage and family formation have changed radically, with a shift away from early marriage and childbearing. Early childbearing has given way to delayed parenthood.

Between 1971 and 1986, the first marriage rate for women aged 20–24 years dropped by about two-thirds, from 308 to 112 marriages per 1000 never married women. New Zealand women are now marrying on average, nearly four years later than they did in the early 1970s. The average age at first marriage in 1988 was 24.9 years compared, with 21.2 years in 1971–72. A growing proportion are remaining single through their twenties. At the 1986 census, over 12 percent of women aged 30–34 reported themselves as ‘never married’, compared with 6 percent in 1971.

The substantial postponement of marriage has been partly offset by the growth of de facto relationships (cohabitation outside marriage). Such relationships may be either a prelude to or a substitute for formal marriages. At the 1986 census, 9.0 percent and 6.2 percent of New Zealand women aged 25–29 years and 30–34 years, respectively, were living in de facto relationships.

These changes partly account for the substantial rise in the number of ex-nuptial births (children born to women who are not legally married), up from just over 5000 in 1962 to over 10 000 in 1977, and to nearly 20 000 in 1989. Ex-nuptial births comprised 8 percent of all births registered in New Zealand in 1962 and 33 percent in 1989.

These changes in extra-marital childbearing need to be interpreted with reservations. The percentage of ex-nuptial births exaggerates the incidence of childbearing outside wedlock, because there has been a corresponding drop in the number of births occurring within wedlock. Changing social norms and the availability of social welfare benefits to single parents have contributed to—and reflected—this increase.

There is also a high incidence of ex-nuptial births among Maori. In 1989, 71 percent of all Maori births were classified as ex-nuptial and they accounted for one-quarter of the country's ex-nuptial births. This atypical situation does not necessarily reflect unconventional attitudes of Maori towards childbearing outside wedlock, but arises partly from the fact that Maori customary marriages are not legally recognised.

As far as the overall fertility levels are concerned, the transition in Maori fertility from relatively large to small families is of more recent origin. Their total fertility rate fell from a high of 6.2 births per woman in 1962 to 2.2 births per woman in 1988, a 65 percent drop. The gap between the Maori and non-Maori fertility has narrowed from 2.2 to 0.2 births per woman during this period. Census-based studies also indicate high fertility among the Pacific Island Polynesians in New Zealand.

Table 5.1. VITAL STATISTICS: SUMMARY

Five-year
period ending
31 December
Total
births*
Total
deaths*
Natural
increase*
Life expectancy
at birth
;
Average
age at death
MalesFemales

* For five-year period.

Excluding Maori population.

At year after each interval, i.e. 1886, 1991, etc.

188596,48229,07467,40854.0257.2126.49
189094,07129,74664,32555.2958.0931.56
189591,41033,52557,88557.3759.9533.38
190094,68535,15159,53458.0960.5538.10
1905109,42340,68568,73859.1761.7640.92
1910127,79446,04681,74860.9663.4842 64
1915137,98548,98089,00560.6364.1745.35
1920137,01260,40576,60762.7665.4347.51
1925148,34858,97189,37763.6666.2950.97
1930145,80164,34281,45965.0767.6654.36
1935137,97666,27371,70365.4668.4557.36
1940158,95378,55580,39865.4369.0558.88
1945191,24387,021104,22267.1770.6160.89
1950244,45688,109156,34768.2972.4363.17
1955263,19194,187169,00468.8873.8864.38
1960300,089102,879197,21069.1774.5165.68
1965317,280112,116205,16468.6774.8465.19
1970307,547120,250187,29769.0975.1665.71
1975304,377124,797179,58069.3775.8866.13
1980263,134128,103135,03170.4876.3568.17
1985254,640129,531125,10971.5476.3569.43
Annual
198652,82427,04525,779 
198755,25427,41927,835
198857,54627,40830,138
198957,42727,04230,385

Mortality

New Zealand has been quite successful in raising the average life expectancy of its population over the past hundred years. A temperate climate, low population density, lack of heavy industry and good nutrition gave New Zealand an early advantage over other nations in terms of health conditions.

From the middle of the nineteenth century until the 1930s, New Zealand had the lowest mortality rates in the world. However, by present-day standards, mortality levels (especially infant mortality) were high. In the late 1870s, 10 percent of all children born died before reaching their first birthday. Infectious diseases were the dominant causes of death among both children and adults.

The risk of infant death was greater in urban areas than in country districts. Typically, in 1887, when the national infant mortality rate was 94 per 1000 live births, the four main centres (Auckland, Christchurch, Dunedin and Wellington) suffered rates ranging between 101 and 162 per 1000.

Table 5.11. DEATH RATES

YearUnder 1*1–45–1413–2425–3435–4445–5455–6465–7475 and
over

* Per 1000 live births.

Non-Maori figures only as Maori at ages not available for these years.

 rates per 1000 of mean population in each age group
Males
190178.606.811.893.523.976.1611.9423.1250.59141.67
192153.104.781.852.443.565.559.6119.9646.17128.60
194143.654.391.362.532.933.959.2021.1347.44140.27
196125.861.340.491.281.472.687.3919.6547.33126.31
198113.010.950.351.531.352.266.5717.3043.39x114.11x
198512.090.540.361.541.381.945.8616.7542.20120.09
198612.500.860.341.701.522.125.7116.1041.80112.00
198710.990.590.391.731.531.905.6315.4841.01110.86
198812.490.650.311.651.532.065.0815.8039.44111.88
198912.140.660.341.801.512.005.0914.3038.10108.11
Females
190163.875.501.643.584.726.7010.6219.4443.32127.98
192142.314.491.312.343.384.468.0014.8836.81120.23
194137.753.841.201.942.443.506.9015.0438.60118.92
196119.501.160.350.530.871.954.5911.2229.89104.74
198110.220.640.230.670.641.513.949.1923.7384.67
19859.470.580.290.570.691.393.859.4423.4489.59
19869.870.480.260.550.691.273.439.3922.4084.00
19879.650.520.230.620.701.283.859.2823.3883.82
19889.680.490.250.610.701.293.458.3022.0483.52
19898.920.390.200.590.561.283.598.6121.3380.98
Both sexes
190171.406.171.773.554.336.4011.3721.6347.87135.71
192147.824.641.582.393.475.108.8517.5941.90124.84
194139.814.121.282.222.673.728.0218.1643.04129.15
196122.761.250.420.911.182.316.0015.4137.67114.01
198111.650.800.291.110.991.895.2913.15x32.6795.41x
198510.810.560.331.061.031.664.8713.0631.86100.69
198611.210.680.301.131.101.694.5812.7231.1294.19
198710.330.550.311.191.111.594.7511.3831.2793.82
198811.130.570.281.141.111.684.2812.0629.8193.97
198910.570.530.271.201.031.644.3511.4728.9690.98

In 1876, the average expectation of life for newborn non-Maori male and female children was 52 and 54 years, respectively. This compares with life expectancy of 71 years and 77 years, for males and females, respectively, in 1985–87—gains of 19 and 23 years respectively.

A large part of this improvement in longevity occurred prior to the 1930s, and was due to the saving of life at younger ages. The infant mortality rate fell steadily, from 96 per 1000 in the late 1870s to 76 per 1000 in the early 1900s, to below 40 per 1000 in the early 1930s. This was also associated with a major reduction in mortality due to infectious diseases (and respiratory diseases), which were previously the main causes of death in New Zealand.

Improvement in the life expectancy of the older population did not keep pace with these overall gains. In fact, life expectancy at age 60 years improved only by one year between 1880–82 and 1921–22 and then remained virtually unchanged for the next half century. Another significant development was the slowing down of mortality decline between 1955–57 and 1970–72, and there was a slight deterioration in male mortality during the mid-1960s.

Since 1970–72, there has been a gain of two-and-a-half years in the life expectancy at birth of both sexes. Unlike in earlier years, a major part of this improvement has occurred at the retirement ages. However, this improvement has not altered New Zealand's slightly disadvantaged position internationally. Currently residents of at least ten other countries can expect to live longer than New Zealanders.

There is therefore considerable room for improvement, especially with regard to mortality in the first year of life and at retirement ages. Although the infant mortality rate has dropped steadily in the last 50 years—from 41.7 per 1000 in 1939 to 20.5 per 1000 in 1962, and further to 10.2 per 1000 in 1989, it is still high compared with some European countries. For two decades now, its post neo-natal component (i.e., death of a child over 28 days but under 1 year of age) has remained unchanged, at around 6 per 1000 and is over twice the rate recently achieved in Scandinavian countries (see section 8.2, Public health).

Recently released statistics for 1986 indicate that heart disease, cancer and cerebrovascular diseases (in that order) continue to be the three leading causes of death in New Zealand, and together account for over three-fifths of all deaths among the adult population in any year. Respiratory diseases claim another 10 percent. Motor-vehicle accidents cause another 3 percent of all deaths in a year, with teenagers and those in their early twenties accounting for over four-fifths of these fatalities.

Although the whole nation has benefited from better living standards, advances in medical knowledge and technology, and improvements in health services over the years, some differentials still exist. One notable historical trend is the widening of the male-female differences in mortality. A century ago, women could expect to outlive men by two years. By 1950–52, the female advantage had increased to five years, and by 1975–77, to six-and-a-half years.

Life expectancy also varies according to ethnicity, with a substantial reduction in Maori mortality in the last three decades, and a significant convergence in the Maori-pakeha gap in longevity. The life expectancy at birth for Maori males increased from 54.0 years in 1950–52 to 67.4 years in 1985–87, a gain of 13.4 years. That for females rose by 16.5 years, from 55.9 years to 72.4 years. However, in 1985–87, a newborn pakeha male child could expect to outlive his Maori counterpart by 4.1 years. For females, the difference was 5.1 years.

Table 5.12. HISTORICAL LIFE EXPECTANCIES: INTERNATIONAL COMPARISON

CountryYear/PeriodMalesFemales
* Non-Maori population only.
New Zealand1901*58.160.6
Australia1901–1055.258.8
Denmark1895–190050.253.2
Japan1899–190337.838.2
Norway1891–190050.454.1
United Kingdom190648.051.6
New Zealand1950–5267.271.3
Australia1953–5567.172.8
Denmark1951–6070.173.2
Japan1950–5259.663.0
Norway1951–5571.174.7
United Kingdom195166.271.2
New Zealand1970–7268.674.6
Australia1975–7769.576.4
Denmark1971–7570.976.5
Japan197069.374.7
Norway1971–7571.477.7
United Kingdom197168.875.0
New Zealand1980–8270.476.4
Australia198171.478.4
Denmark1981–8571.577.5
Japan198073.378.8
Norway1981–8272.679.4
United Kingdom1981–70.876.8
New Zealand1986–8871.377.4
Australia198773.079.5
Denmark1985–8671.677.5
Japan198675.280.9
Norway198672.979.7
United Kingdom198471.577.4

External migration

New Zealand has traditionally been a country of immigration, although in the last 150 years the country's intake has been small compared with immigration flows to some New World countries, such as Australia, Canada and the United States.

Since 1840 the country has gained over 750 000 people, or just over 5000 each year.

Over the years, immigration has had a major impact on the size, growth rate, age-sex structure and ethnic composition of New Zealand's population, and has been a subject of vigorous public debate, especially when large-scale immigration has tested the amenities and structures of the country.

The early years of colonisation were essentially years of organised settlement, with various settlement associations (notably the New Zealand Company) and provinces, actively promoting and assisting immigration. Estimates indicate that just under 25 000 people immigrated to New Zealand between 1840 and 1853, mainly from the British Isles. The discovery of gold in Otago in 1861 brought a tremendous influx of miners, from both the declining gold-fields of Victoria and from China. Over 45 000 people arrived in New Zealand in 1863 alone, and total arrivals exceeded departures by 93 000 during 1861–65. Gold discoveries increased the Otago province's population five-fold (to 60 000) in a matter of four years and also contributed measurably to the general development of the South Island.

Immigration stagnated as the gold boom ended, but then increased sharply in the 1870s, which were years of assisted immigration on a large scale. Over 7000 German, Danish, Norwegian, Swedish and French immigrants joined those from the British Isles to make up the record 136 760 immigrants during 1871–80—the largest net immigration for any ten-year period.

Over the next 65 years (1881–1945), external migration was generally low but quite irregular. These fluctuations reflected booms and slumps in world commodity prices, the general economic situation in New Zealand and abroad, and changes in government policy, especially with regard to assisted immigration. In half of these 65 years, annual net immigration was less than 5000 and in none of the years did it exceed 15 000. Twice during this period, economic depression reversed the migration balance. The depression of the 1880s, a consequence of a fall in world prices, resulted in widespread unemployment, and for the first time in the country's history, emigration exceeded immigration during the late 1880s and early 1890s. The net outflow during the Depression of the 1930s was slightly larger and resulted from a sharp drop in the number of arrivals, rather than a ‘mass exodus’.

Political expediency and economic circumstances, especially the desire to safeguard the living standards of New Zealand workers, were the main factors influencing immigration policy in the early years of the twentieth century. Policies were enacted to restrict the non-British migrants, especially to control the immigration of Chinese, Indians and southern Europeans (see inset, section 6.3).

The reintroduction of a policy of assisted immigration in the early 1920s—to attract farmers, farm labourers, and domestic servants—did not cause a large influx. Migration intake in the 1920s was boosted by the introduction of overseas settlement schemes, which provided free passage to ex-servicemen, widows and dependants. Several schemes were also approved to settle boys and young men from the United Kingdom in New Zealand. But just as before, when the economy deteriorated the assisted passage scheme was suspended. Overall, net immigration during 1881–1945 was 277 000, or just over 4000 per annum.

The economic stability of the post-World War II years saw the reintroduction in 1947 of an assisted/free passage scheme to attract working-age industrial and agricultural labour from the United Kingdom. The immigration policy was further liberalised in 1950. Agreements were also negotiated to accept young non-British European migrants. Refugee immigration was allowed on humanitarian grounds. Subsequently, these grounds were to lead to the settlement of just under 4000 Indo-Chinese refugees in New Zealand during the March years 1978–82. Historical and regional considerations also led to the establishment of immigration quotas for small Pacific island countries.

Government adopted a new immigration policy in 1974, which ended unrestricted immigration from the United Kingdom and Ireland and provided for the selection of immigrants from all sources on the same criteria. The reciprocal Trans-Tasman Travel Agreement, which allows free movement of residents between Australia and New Zealand, was not changed. Similarly, the right of free entry into New Zealand was maintained for the people of the Cook Islands, Niue and the Tokelau Islands, who are regarded as New Zealand citizens. As a result, immigrants in post-war years have come from a wider range of countries than before.

Between 1951 and 1966, the country gained roughly 200 000 people. In 12 of the 16 years, net immigration was over 10 000. The economic recession of the late 1960s turned the tide again. A significant drop in immigration and a sharp upturn in emigration, resulted in a net emigration of 15 333 during 1967–69. This was just the beginning of the dramatic events to come.

The last two decades have witnessed some major and unprecedented changes in external migration levels and patterns. The preponderance of immigrants coming from the British Isles has decreased, and migration to and from Australia has become the largest in terms of volume. The rate of migration has increased significantly and there have been dramatic shifts in the flow of migrants.

The total number of arrivals has jumped almost seven-fold, from 254 000 during 1968, to 1.67 million during 1989. This reflects the ease and relatively low cost of international travel, with tourists making up the bulk of the international traffic. Unlike in early years, total departures exceeded total arrivals by an average of 1100 people per annum during 1968–89. But this figure disguises the large swings in the external migration balance from one period to another. A large net gain of 116 917 during 1971–75, was followed by a record net outflow of 98 000 during 1976–80, followed in turn by a small net gain of 9687 during 1981–85 and a significant net outflow of 32 571 during 1986–89.

The early 1980s pointed to radical changes in permanent and long-term migration (persons arriving to settle, or departing for 12 months or more). The number of permanent and long-term departures—which had shown a steep upward trend since 1961, rising from 13 305 to 82 554 in 1979—started to decline, and by 1983 had fallen to 33 871. Departures to Australia accounted for about three-fifths of this decline. In fact, in 1983 more people arrived from, than left for Australia and there was an overall gain of 8285. However, this turnaround was short-lived, and by 1989 the figure had climbed to 61 535, giving a net emigration of 12 275.

Significantly, immigration from the South Pacific countries, although small in size, is continuing. Moreover, unlike in earlier years, New Zealanders now comprise a significant component of permanent and long-term movements, which are dominated by persons of younger working ages.

Table 5.13. EXTERNAL MIGRATION: SUMMARY

Five-year
period
ended
31 March
TotalPermanent and long-termShort-term
ArrivalsDeparturesNetArrivalsDeparturesNetArrivalsDepartureNet
188098,87730,37668,501 
188573,86144,77629,085
189075,06379,747−4 684
1895101,50888,06713,441
190093,03784,3988,639
1905141,67899,50142,177
1910190,772146,78343,989
1915202,087165,28636,801
192098,47390,5327,941
1925199,791151,28548,506
1930192,606167,34625,26053,98816,08137,907138,618151,265−12 647
1935111,933118,076−6 14313,46614,830−1 36498,467103,246−4 779
1940171,424159,51411,91022,87119,2673,604148,553140,2478,306
194535,00332,4142,5896,5979,241−2 64428,40623,1735,233
1950158,637135,43923,19851,48730,02021,467107,150105,4191,731
1955306,837239,14867,689116,51037,41979,091190,327201,729−11 402
1960395,218347,02148,197115,30851,16964,139279,910295,852−15 942
1965737,703676,13761,566156,46275,05581,407581,241601,082−19 841
19701 278 8671 273 4095,458155,008127,81427,1941 123 8591 145 595−21 736
19752 506 7142 400 234106,480274,842196,99377,8492 231 8722 203 24128,631
19803 793 4833 874 575−81 092204,867319,964−115 0973 588 6163 554 61134,005
19854 772 2574 766 9935,264213,059247,712−34 6534 559 1984 519 28139,917
Annual
19861 111 9261 130 444−18 51835,98257,595−21 6131 075 9441 072 8493,095
19871 321 7291 317 3724,35744,36058,629−14 2691 277 3691 258 74318,626
19881 554 9921 555 949−95747,84463,469−15 6251 507 1481 492 48014,668
19891 669 6371 687 935−18 29846,23370,941−24 7081 623 4041 616 99464 10
19901 700 4161 702 301−1 88551,98156,021−4 0401 648 4351 646 2802,155

5.4 Composition of the population

Age and sex of the population

The age and sex profile of a population represents its heritage in terms of past changes in the dynamics of population growth—fertility, mortality, and migration.

At present the New Zealand population contains slightly more females than males. This contrasts with the situation in the early colonial days when there was a large surplus of males, especially young males. This unusual situation reflected the character of settler society and industries, particularly the demand for miners and forestry and construction workers. Also, the difficulties of pioneering and the remoteness of the country from Europe tended to deter female immigration.

At the 1867 census, males outnumbered females by three to two among the European population, an imbalance to which the discovery of gold had made a significant contribution. However, as the number of births and deaths grew in importance, the imbalance of the sexes began to wane. By the 1878 census, the sex ratio had dropped to 125 males per 100 females, before falling further to 113 per 100 in 1906.

Over the next six decades males outnumbered females, but each census saw the sex ratio draw closer to parity, with two exceptions when there was a temporary excess of females—during World War I and again during World War II.

In 1968, for the first time in the country's demographic history, females outnumbered males, and since then their advantage has increased steadily. Latest population estimates indicate that there were 1 673 600 males and 1 711 000 females in New Zealand at the end of 1989, representing a sex ratio of 98 males per 100 females. The shift largely reflects the preponderance of females among the retirement-age population (60 years and over) which carried a sex ratio of 80 males per 100 females in 1989. At ages below 60 years, men still outnumber women by a small margin.

Generally, for every 100 female births, there are 105 male births, but higher mortality among males reduces this surplus with increasing age, and the 1989 estimates gave a ratio of 101 males per 100 females at ages below 60 years.

Table 5.14. SEX OF THE POPULATION, 1858–1986 CENSUSES

CensusMalesFemalesTotal
population
Sex ratio*
* Males per 100 females.
185865,38750,075115,462130.6
1874195,765149,219344,984131.2
1878254,936203,071458,007125.5
1881293,973240,057534,030122.5
1886335,061285,390620,451117.4
1891355,738312,913668,651113.7
1896393,033350,181743,214112.2
1901429,112386,750815,862111.0
1906496,546439,763936,309112.9
1911558,385499,9271 058 312111.7
1916577,715571,5101 149 225101.1
1921651,155620,5131 271 668104.9
1926719,642688,4971 408 139104.5
1936799,091774,7211 573 812103.1
1945832,877869,4211 702 29895.8
1951973,968965,5041 939 472100.9
19561 093 2111 080 8512 174 062101.1
19611 213 3761 201 6082 414 984101.0
19661 343 7431 333 1762,676,919100.8
19711 430 8561 431 7752 862 63199.9
19761 562 0421 567 3413 129 38399.7
19811 578 9271 596 8103 175 73798.9
19861 638 3561 668 7283 307 08498.2

Changes in the age structure of New Zealand population have been more profound over the past hundred years. They largely reflect the ‘roller coaster’ movements in the birth rate, with small and large birth cohorts moving into the age structure. However, migration gains/losses (dominated by persons of younger and middle working ages) have added significantly to these structural changes. The age-sex pyramid (see accompanying diagrams) of the non-Maori population in the early colonial days was typical of the new immigrant communities, with a narrow base, a bulging mid-section showing relatively large surplus of males, and a small proportion of the population aged 60 years and over.

Ageing of the settlers, higher male mortality (which gradually eliminated the male surplus) and a rapid rise in births changed this. By the 1886 census, the age pyramid had become bottom-heavy and children under 15 years made up over 41 percent of the total population. Such high figures are currently only found in high-fertility developing nations. The median age was only 19.2 years, that is, half the population was below that age. The dependency ratio—defined as the ratio of persons under 15 years and, 60 years and over to persons in working ages (taken as 15–59 years)—was 0.80. Broadly interpreted, this means that there were eight ‘dependent’ persons for every ten ‘workers’.

A general downturn in fertility over the 50 years from 1886 remoulded the age pyramid. By 1936, the proportion of children in the population had dropped to 27 percent, which meant a much lighter ‘youth dependency burden’. However, the ageing of the children born during the high fertility years of the 1850s through to the early 1870s, had meant a sevenfold rise in the numbers of persons aged 60 and over (from 23 000 to 160 000) and their proportion of total population had gone up from 3.7 percent in 1886 to 10.2 percent in 1936. The rise in the ‘aged’ component of the dependency ratio partially offset the decline in the youth component. However, in the meantime, the entry of large numbers of people born in the earlier high-fertility period into working ages, and the immigration of young workers had boosted the proportion of 15–59-year-olds in the population from 56 percent to 63 percent. The net result was a drop in dependency ratio to 58 dependants per 100 ‘workers’ in 1936.

The post-war baby boom broadened the base again and lifted the proportion of children in the population to 33 percent in 1961. With almost half of the population aged under 25 years at that time, the population looked youthful once again. The movement of small birth cohorts of the depression years up the age scale meant a smaller proportion of workers in the population—only 55 percent in 1961. The elderly population increased in size by 84 percent, to make up over 12 percent of the total population. As the ‘youth’ and ‘aged’ components reinforced each other, the dependency ratio lifted sharply to an historical peak of 0.83, even exceeding the 1886 figure.

The subsequent sharp decline in fertility, increased longevity, and the movement of the baby boom ‘bulge’ into working ages has caused a major alignment of the age structure as well as incipient ageing. The median age of the population has risen by five years since 1971, from 25.6 years to 30.6 years in 1989. The dependency ratio has fallen to a more favourable 0.61, due largely to a sharp drop in the ‘youth’ component.

At the end of 1989, children under 15 numbered 775 000 (down from 814 000 in 1961) and comprised 23 percent of the total population, the lowest percentage on record. Over the same period the working-age population has risen by 747 000 (or 55 percent) to 2.10 million, and in 1989 accounted for 62 percent of the country's 3.38 million population. The aged population has once again showed the largest rise, up 71 percent to well over 500 000, which represents a 22-fold increase over the 1876 census figure of just over 23 000. Within this age group, the number of people aged 80 years and over has risen over the past 100 years from only 1400 to 74 800, a 53-fold increase.

Finally, it is important to note that within New Zealand there are population sub-groups with remarkably different age structures. Ethnic groups such as Maori and Pacific Island Polynesians have more youthful populations, commonly characteristic of developing nations. They contain roughly twice as many children under 15 years as their non-Maori, non-Polynesian counterparts (22 percent for the latter); about seven-tenths of their populations are under 30 years, and their median ages are about 12 years lower than their non-Maori, non-Polynesian counterparts (which is 32.2 years). At the other end of the age scale, only 4 percent of Maori, and 3 percent of Pacific Island Polynesians (because of their recent migration to New Zealand) are 60 years or over, compared with 17 percent for the non-Maori, non-Pacific Island Polynesian population.

Ethnic and cultural diversity

The islands of New Zealand have been ethnically and culturally connected to Polynesia for at least 1000 years. Less than 200 years ago, its population and cultural heritage was wholly that of Polynesia, but now New Zealand is dominated by cultural traditions that are mainly European, emanating especially from Britain.

About four-fifths of New Zealanders are of European origin, predominantly of British Isles origin, but also including people from the Netherlands, Yugoslavia, Germany and other nations. The indigenous Maori population make up the next largest group of the population, about 12.4 percent in 1986. The third main ethnic group is the Pacific Island Polynesians, who made up around 3.5 percent of the population at the time of the 1986 census.

The ethnic and cultural composition of New Zealand has also been shaped and reshaped by three main demographic processes; international migration, natural increase, and intermarriage between members of different groups. The most important of these processes has been international migration.

The Maori are believed to have first arrived in New Zealand in about 1000 A.D. (see section 2.1, New Zealand before 1840). Much later, they were followed by Europeans, who began to settle in New Zealand in large numbers from the 1840s on. As well as those from the British Isles, nationalities from other European countries have influenced the diversity of the New Zealand population. Settlers from non-European sources have also added to the wider ethnic diversity of New Zealand.

Maori population. Estimates of the size of the Maori population at the time of European contact in 1769 vary greatly. Figures ranging from 100 000 to 200 000 have all been advanced (see inset). There is, however, agreement that whatever the original size of the population, a substantial decline occurred over the following 70 years. It is believed that the population had dropped to no more than 100 000 by 1840. And at the time of the first census, in 1858, numbers had been further eroded to less than 60 000. This decline, combined with European immigration, made Maori a minority group in the population by the 1860s.

Contact with Europeans had proved disastrous for the Maori population. Tuberculosis, typhoid, venereal disease, measles and other diseases new to Maori exacted a heavy toll. The introduction of firearms and subsequent warfare, both inter-tribal and with Europeans, also resulted in a depletion of population. Numbers continued to decline further, at a rate of over 1 percent per annum, until the 1870s.

For the remainder of the nineteenth century population levels fluctuated, suggesting an arrest in the trend towards depopulation. The lowest point was reached in 1896, and from this time onwards there was a recovery in the Maori population.

Between 1896 and 1916 there was an average annual increase of over 1 percent, and from 1916 to 1945 this rate rose to over 2 percent. By the end of this latter period the population had risen to a level comparable to that at the time systematic European colonisation began in 1840.

The growth rate accelerated markedly after World War II, and peaked at 4.4 percent per annum during the early 1960s. This is believed to be close to the maximum possible increase for a human population that is ‘closed’ to inward migration. The rate of increase persisted at high levels until the mid-1970s. By 1976 the Maori population had reached 356 847, although still only amounting to 11.4 percent of the total New Zealand population.

Between 1976 and 1986 the rate of increase dropped significantly, averaging 1.2 percent per annum. By 1986 Maori made up 12 percent of the population and numbered 403 185.

During the 1970s, international migration emerged for the first time as a significant factor in Maori population change. Large numbers of young Maori left New Zealand on a permanent or long-term basis in the 1980s. A population loss of 8100 was recorded between 1981–1986. The main destinations of the migrants were Australia and the United Kingdom. Sizeable Maori communities now exist in Australia—particularly in Sydney. A result of this is that the Maori population is now susceptible to inward migration, both from return migration and the inward migration of Maori born overseas. Fertility transition—Maori fertility has historically been high. Up to the 1960s the birth rate was around 45 per 1000. However, a transition in fertility from high to low rates occurred in the 1960s and 1970s. Maori experienced one of the most rapid transitions chronicled anywhere in the world when the fertility rate dropped to a level two-fifths of that prior to 1962. The ten years from 1962–71 saw the total fertility rate begin to decline, from 6 births per woman to 5 births per woman. The rate then began to fall even more sharply, and by 1977 was 2.9 births per woman. This level had only been reached by non-Maori women in 1972. By 1986 the fertility rate was a little over 2 births per woman, only slightly higher than that of the total population.

Actually, as the birth rate reduced so did the average Maori family size. In 1962 it was 2.2 children greater than that of non-Maori. By 1982 the difference had narrowed to 0.5 children.

Rural to urban migration—The change from being a largely rural to a predominantly urban population also happened extremely rapidly for Maori. In the 1920s over four-fifths of Maori lived in rural areas. By 1945 around three-quarters still lived in rural places. However, within two decades the majority of the Maori population were living in urban areas. By the mid-1970s, three-quarters lived in urban areas. It is worth noting that at this time a trend for migration from urban to rural ancestral marae became apparent. Initially such migrants were older urban Maori. More recently a wider section of urban Maori have been involved. Nevertheless, by 1981, four-fifths of the Maori population was urban and a majority of Maori have now probably been born and raised in urban areas.

Urbanisation of Maori has been accompanied by wider distribution throughout the country. In the 1920s, 95 percent of Maori lived in the North Island. Countering the trend of the total New Zealand population, Maori began to shift south, to the southern North Island and to the South Island. In 1986, 10 percent lived in the South Island. Age structure—Youthfulness is the central characteristic that has distinguished the Maori from the non-Maori population structure. Throughout most of this century the Maori population has been concentrated in the younger age groups—a result of the consistently high fertility of Maori.

Between 1926 and 1976, the proportion of children in the Maori population consistently exceeded 43 percent. A peak of 50 percent was achieved in 1966. In 1961, when the impact of the ‘boom’ in fertility was greatest, over 20 percent of the Maori population was less than five years old. Over the 15 years from 1971–86 significant changes to the structure of the Maori population occurred. The transition in fertility experienced in the 1970s had much impact. The median age, the point at which half the population is older and half younger, steadily increased. In 1971 it was 15.3 years, by 1986 it had risen to 18.8 years. The number and proportion of children in the Maori population also changed over this period. Children made up 49 percent of the population in 1971, but this had fallen to 39 percent by 1986.

With the decline in the proportion of children in the population there has been an expansion in the population of the working-age group (15–64 years) and in the women's reproductive age (15–49 years) group. Of the total Maori population in 1971, 49 percent were of working age. In contrast 59 percent were of working-age in 1986. Maori women of reproductive age accounted for 22 percent of the total population in 1971. This proportion had risen to 26 percent by 1986. Both the working age and reproductive age groups have a substantial youthful component. Almost one third of the total Maori population were aged between 15–29 in 1986 and over three-fifths of women of reproductive ages were also aged between 15 and 29 in the same year.

The Maori population is showing signs of moving towards a more elderly structure, yet it is still far younger than that of non-Maori. In 1986 there were larger proportions of Maori than non-Maori in each age group under 30 years. And the median age of Maori was, in 1986, 12.8 years below that of the non-Maori.

See also section 6.4, Maori society.

Table 5.15. ETHNIC COMPOSITION OF THE POPULATION, 1958–1986 CENSUSES

Census*Total
population
MaoriPacific
Island
Polynesian
ChineseIndianFijianOther

* Omits censuses of 1861, 1864, 1867 and 1871 as censuses of Maori population were not taken.

Those specifying themselves as half or more Sew Zealand Maori plus those not specified, the degree of origin. 1986 census figures relate to those persons who stated Sew Zealand Maori as their only ethnic origin.

Usually resident population.

1858115,46256,049    59,413
1874344,98447,3304,816292,838
1878458,00745,5424,433408,032
1881534,03046,1415,004482,885
1886620,45143,9274,542571,982
1891668,65144,1774,444620,030
1896743,21442,1133,85946697,196
1901815,86245,5492,9637.4767,326
1906936,30950,3092,5706883,424
19111 058 31252,7232,630151 002 944
19161 149 22552,9971512,1471811 093 749
19211 271 66856,9873343,2666711 210410
19261 408 13963,6705883,3749871 339 520
19361 573 81282,3269882,9431,2001 486 355
19451 702 29898,7442,1594,9401,5541 594 901
19511 939 472115,6763,6245,7232,4251 812 024
19562 174 062137,1518,1036,6673,0874792 018 575
19612 414 984167,08614,3408,3334,0277462 220 452
19662 676 919201,15926,2719,9826,6551,3232 431 529
19712 862 631227,41440,91812,4707,1401,1472 573 542
19763 129 383270,03561,35414,8609,2471,5482 772 339
19813 175 737279,25289,69719,24811,5801,9082 774 052
19863 307 084295,65999,13520,25912,4832,1272 877 421
19863 263 286295,31497,14019,50912,1231,8722 837 058

Chinese. After 1840, the Chinese were the first non-European group of any size to settle in New Zealand. The first Chinese arrived in the gold rushes of the 1860s. Frequently they worked the tailings left by other miners, living in a climate of prejudice that was manifest, not only in the altitudes of many Europeans towards the Chinese, but also in a number of restrictions in law that were placed on the Chinese immigrants. One example of this was a law passed to keep Chinese workers from living within town limits. As a consequence of this, many were forced to live in makeshift houses made of the poorest materials outside the town limits. Such laws reflected a prevailing attitude of the authorities which saw some need for limits and conditions on the immigration of persons of non-European origin into New Zealand.

The first direct restrictions on Chinese immigration began in 1881, with a tax on each new arrival and their numbers limited in any one ship to one person for every 10 tons of cargo. In 1896, the Asiatic Restriction Act was passed for the express purpose of restricting the immigration of persons of Asian origin into New Zealand. From this time, natural increase became the main factor in the subsequent growth of the Chinese population in New Zealand. Many Chinese subsequently moved into market gardening and small business enterprises, such as laundries and fruiterers. During the conflicts in China in the 1930s and 1940s, the rules on immigration were relaxed to a degree to enable Chinese in New Zealand to bring out members of their families. In 1952, most Chinese in New Zealand exercised a new right to become New Zealand citizens. In 1986, the Chinese population in New Zealand numbered 19 506.

Dalmatians. In the late nineteenth century, a large group of immigrants came to New Zealand from the Dalmatian coast of the Austro-Hungarian Empire. They became one of the larger European ethnic groups of non-British Isles origin. Initially, they were heavily concentrated in northern New Zealand, working the gum-fields (see inset section 17.4) for many years. They have also contributed significantly to the development of horticulture in New Zealand and have been particularly dominant in the development of the New Zealand wine industry.

Indians. The second major non-European ethnic group to settle in any great numbers in New Zealand were those from the Indian subcontinent. The Punjabis were the first to come to New Zealand from India, although their numbers were small and have remained so. The first wave of Gujurati, who currently make up over 90 percent of the Indian community in New Zealand, emigrated during the 1920s, through an indentured labour system, to work in drain digging, the flax industry and as scrubcutters. They came from two main areas; Navsari and Surat in the Gujurat province. Between 1920 and 1960, the Indian population increased from about 200 to 11 600. Since the early 1960s, the Indian population has been augmented by the arrival of people of Indo-Fijian origin, many of whom have come to New Zealand as students and who have entered a range of professions.

Refugees. Refugees from Europe arrived in the 1930s and again during. World War EL Many of these were Jews and Poles. The migration of refugees into New Zealand was intensified after the war. About 6000 refugees from Poland were eventuality allowed to settle in New Zealand in the immediate post-war years. Following the 1956 Hungarian uprising, a further limited intake of refugees from Hungary were received by New Zealand. As a result of the conflict in Indo-China, about 7000 Indo-Chinese refugees have been resettled in New Zealand since 1975. This has accounted for over 90 percent of New Zealand's total refugee intake from this time. In addition to the Indo-Chinese refugees, small numbers of Chilean, Russian Jew, East European and Assyrian refugees have also been received at different times.

Pacific Island Polynesians. Since the early 1960s the cultural and ethnic diversity of New Zealand has been enhanced by the inflow of Pacific Island Polynesians to New Zealand. Over this time, the Pacific Island Polynesian population in New Zealand has grown from a total of just over 14 000 in 1961 to about 115 000 by the mid 1980s. The Pacific Island Polynesian population is concentrated in several areas, particularly in Auckland and Wellington.

In the late 1970s, as a result of economic downturn, immigration of Polynesians dropped sharply and natural increase became the major influence on Polynesian population growth. The 1980s saw a return to substantial net migration gains from Polynesia, and between 1981 and 1986, there were 14 856 more arrivals than departures. These people added the equivalent of 30 percent to the total Pacific Island Polynesian born population enumerated in New Zealand in the 1981 census. Thus international migration remarks a very important determinant of growth in this component of New Zealand's population.

See also section 6.5, Pacific Island Polynesian population.

While the cultural diversity of New Zealand is—for the greater part—Eurocentric, the range of cultural norms present in New Zealand that have come from non-European sources, along with the existing Maori culture, suggest that New Zealand will proceed into the next century possessing a wide range of different ethnic and cultural values.

For further information on ethnicity and country of birth of the population refer to section 6.3, Human rights, immigration and citizenship.

5.5 Future population issues

What lies ahead in New Zealand's demographic future? Predicting future trends, even beyond the short-term, is a difficult task because population trends and structures influence and are in turn affected by a host of economic, social and other circumstances.

The Department of Statistics regularly prepares a range of projections for the New Zealand population. These combine different scenarios on future changes in fertility, mortality and external migration, which appear likely in the light of the historical trends. These projections are not exactly forecasts, but illustrate what the changes in population size, growth rate and age-sex structure would be if the given assumptions are met.

In New Zealand, as in other developed nations, the general demographic outlook over the coming decades is for smaller families. The illustrative projections adopted here, which cover the period 1989–2021, assume that the total fertility rate will rise to 2.19 births per woman before declining slowly to 1.87 births per woman in the year 2021, i.e., about 11 percent below the ‘replacement level’. Death rates are also assumed to decline significantly. This is reflected in a projected gain of 4.1 years in the life expectancy at birth for males, from 71.1 years in 1985–87 to 75.2 years, and a gain of 4.3 years for females, from 77.1 years to 81.4 years.

Three alternative assumptions on future external migration (−5000, 0 and +5000 per annum) are used, with the ‘low’ and ‘high’ variants reflecting historical experience. The ‘low’ assumption (−5000 per annum) approximates the average net migration levels for the ten years ended 31 March 1988 and the ‘high’ assumption (+5000 per annum) that for the last 50 years.

The projections indicate that sub-replacement fertility will not mean an end to population growth during the projection period. New Zealand's current age structure has a built-in momentum for further growth—a legacy of the baby boom—and will ensure an excess of births over deaths well beyond the next three decades. However, the rate of natural increase of the population will slow down substantially, dropping from over 1.1 percent in 1989 to 0.5 percent, or perhaps less, by the year 2021.

Even without migration gain. New Zealand's population will increase by 650 000 over the next 30 years, reaching 4.04 million by the year 2021. With a migration intake of 5000 per annum, the increase will be larger—up 860 000 to 4.25 million by 2021, while a net loss of similar magnitude would mean only 3.83 million New Zealanders by 2021, compared with 3.39 million at present.

Fertility will again be the dominant contributor to population growth, but changes in the number of births will be irregular. Given a migration gain of 5000 per annum, and sub-replacement fertility, the number of births will rise from 58 000 in 1989 to over 62 000 in 1993, drop below 50 000 in 2008 and then rise to 54 000 in 2021. This would mean successively smaller and larger cohorts progressing through the age structure over the next few decades. Because of the ageing of the population, the number of deaths, unlike births, will rise steadily over this period, from just under 28 000 in 1989 to between 38 000 and 39 000 in 2021.

Table 5.16. POPULATION PROJECTIONS 1988–2031*

Age-group1988 (Base)19912001201120212031
* Assuming ‘medium’ fertility and ‘medium’ mortality with long-term annual immigration of 5000 per annum.
0–9511,300542,200600,600514,200522,000523,000
10–14269,000254,700294,600294,800253,200270,600
15–19310,200291,400255,100313,400268,900259,400
20–29566,000581,400531,000535,100593,300508,000
30–39504,800530,300600,900551,400555,800613,800
40–49390,600429,600524,800594,900546,600551,700
50–59293,800303,800413,800507,100575,800529,900
60–69262,700273,100277,700380,300467,900532,400
70–79168,800175,400209,200219,000304,700378,500
80+70,20078,500106,500137,500158,300220,600
        Total population3 347 0003 460 0003 814 0004 048 0004 246 0004 388 000

All projection series indicate that future changes in the age structure of the population will be more profound than in population size. Sustained low fertility, increased longevity and the movement of the baby boom ‘bulge’ up the age scale would lead to a significant realignment of the age structure and would mean relatively fewer children, an older labour force, and an ageing population, in the future. The median age of the population will rise from 30.3 years in 1989 to between 38.6 and 39.8 years in 2021. Migration gains, unless relatively large, would only slightly retard the ageing process.

The elderly population (60 years and over) is expected to grow rapidly after 2005, when survivors of the baby boom generation turn 60. Their number is expected to more than double from 500 000 at the end of 1989 to over 1.1 million by 2021. By 2021, one in every four New Zealanders will be aged 60 years and over, and the proportion will still be growing.

Significantly, the population under 15 outnumbered senior citizens (aged 60 and over) by 50 percent in 1989. By the year 2021, this situation is expected to have reversed. This realignment would also mean a progressively lighter youth dependency burden. The ratio of children under 15 years of age to working-age population (15–59 years) will shrink from 0.353 in 1989 to 0.300 (given no migration gain) in 2021. Conversely, the ratio of population aged over 60 years to the working-age population will rise from 0.243 to 0.380 during this period.

These dependency indices are crude, because not all elderly people are retired and dependent; nor do all persons of working-age work. Nevertheless, they provide valuable insights into emerging trends. Because the elderly are heavy users of hospital facilities and health care services, and are dependent largely on social welfare services for care and financial assistance, these trends have major implications for social and economic planning at both the national and regional levels.

Contributor

  • 5.1–5.5 Department of Statistics.

Historical

Department of Statistics.

Further information

Census of Population and Dwellings 1986

Ages and Marital Status. Series C, Report 3. Department of Statistics.

1987 Electorate Profiles. Series B, Report 27. Department of Statistics.

Labour Force—Part 1. Series C, Report 4. Department of Statistics.

Local Authority Population and Dwelling Statistics. Series A, Report 2. Department of Statistics.

National Summary. Series C, Report 2. Department of Statistics.

Profiles of New Zealanders: Families and Households. Series E, Report 3. Department of Statistics.

Profiles of New Zealanders: The Labour Force. Series E, Report 2. Department of Statistics.

Regional Statistics. Series B, Reports 2–23. Department of Statistics. (Reports for each local government region.)

Regional Summary. Series B, Report 24. Department of Statistics.

Rural Population Statistics. Series A, Report 3. Department of Statistics.

Usually Resident Population. Series B, Report 25. Department of Statistics.

Dwellings. Series C, Report 11. Department of Statistics.

A full list of 1986 Census of Population and Dwellings publications can be found in the list of Department of Statistics publications at the back of this volume.

Demography, vital statistics, and migration

Demographic Trends. Department of Statistics (annual).

Elderly Population of New Zealand. Department of Statistics, 1990.

External Migration Statistics. Department of Statistics (annual).

Foetal and Infant Deaths. National Health Statistics Centre (annual).

Hospital and Selected Morbidity Data. National Health Statistics Centre (annual).

The Human Face of New Zealand: A Context for Population Policy into the Twenty-first Century. Report of the Inter-departmental Committee on Population Policy Guidelines, Department of Statistics, 1990.

Inter-regional Migration in New Zealand, 1971–1981. Department of Statistics, 1986.

Maps of Statistical Boundaries. Department of Statistics. (Map series), 1986.

Key Statistics. Department of Statistics (monthly).

New Zealand Life Tables 1980–82. Department of Statistics, 1986.

New Zealand Sub-national Population Projections 1986–2006. Department of Statistics, 1985.

Profile of Women: A Statistical Comparison of Females and Males in New Zealand 1945–84. Department of Statistics, 1985.

Trends and Patterns in New Zealand Fertility 1912–1983. Department of Statistics, 1986.

Chapter 6. Social framework

6.1 Households

There was a total of 1 078 005 private households living in permanent dwellings in New Zealand at the Census of Population and Dwellings held on 4 March 1986. This was an increase of 74 892, or 7.5 percent, in the total number of private households since the 1981 census.

Table 6.1 describes the number of households by type counted at the 1986 census. Because the basis for deriving statistics of household composition was changed from ‘census night’ in 1981 to ‘usual composition’ in 1986, no comparable figures are available from the earlier census. A ‘one-family-only’ household consists of a husband and/or wife with or without unmarried children of any age who are living at home. Amounting to 68.7 percent of all private households in New Zealand at the 1986 census, one-family-only households continue to be predominant.

‘One-person’ households are easily the next most common type, comprising 18.6 percent of all private households.

Table 6.1. USUAL HOUSEHOLD COMPOSITION, 1986 CENSUS

TypeNumber*Percentage
of total
* Excludes households where the occupier is an overseas resident, is aged under 15 years, or where the household is composed entirely of visitors.
One family only734,26268.7
One family plus other persons56,1725.3
Two families (with or without other persons)15,1291.4
Three or more families (with or without other persons)1,1400.1
Non-family households63,5795.9
One-person households199,16418.6
                    Total1 069 446100.0

Dwellings

The total number of dwellings occupied on the night of the Census of Population and Dwellings increased from 1 011 882 in 1981 to 1 095 747 in 1986, a rise of 83 865, or 8.3 percent. This percentage increase was much more than that of the total New Zealand population, leading to a reduction in the average number of people per occupied dwelling. In 1986, the average number of occupants per permanent private dwelling was 2.9, compared with 3.0 five years earlier.

Statistics on types of dwellings are given in table 6.2.

Table 6.2. TYPES OF DWELLINGS

TypeNumber of dwellings1986 census
number of occupants
1981
census
1986
census
Aggregate*Average*

* Total New Zealand census night population including those whose usual place of residence is overseas.

Sum of two houses or flats joined together or three or more flats (houses) joined together.

Includes mobile or temporary dwellings within a motor camp.

Occupied dwellings—
     Permanent private dwellings—
          Separate house793,599862,3412 682 7293.1
          Two houses or flats joined together197 889103,338215,4182.1
          Three or more flats (houses) joined together 90,984165,1831.8
          Flat/house attached to business or shop7,8308,19022,4462.7
          Bach, crib, hut (not in a work camp)3,7895,94912,2852.1
          Not specified7,20918,0512.5
                    Total, permanent private dwellings1 003 1071 078 0053 116 1122.9
     Temporary private dwellings2,37910 59622,8932.2
     Non-private dwellings6,3967,149168,08123.5
                    Total, occupied dwellings1 011 8821 095 7473 307 0833.0
Unoccupied dwellings—
     Occupants temporarily away30,22531,128
     Empty habitable dwellings (to let, for sale, etc.)28,69835,454
     Holiday residences38,19340,950
                    Total, unoccupied dwellings97 113107 535
Dwellings being built6,83410,440

Table 6.3 shows the number and distribution of occupied permanent private dwellings by number of occupants on census night in 1981 and 1986. Changes in distribution of dwellings by numbers of occupants are a result of demographic, social and economic trends.

Intercensal increases in both the number and percentage of dwellings with one occupant reflect demographic shifts in the population towards increasing numbers of ‘not married’ people at the ages where living alone is most common. However, not all of the increase can be explained by demographic shifts within the population and reflect changes in the attitudes and choices of New Zealanders.

These trends, together with the growing incidence of de facto relationships, solo parents and childless marriages help explain the comparable increases in the number and percentage of dwellings with two or three occupants and the reduced (or negative) growth in dwellings with four or more occupants.

Table 6.3. NUMBER OF OCCUPANTS OF PERMANENT PRIVATE DWELLINGS

Number of occupants1981 census1986 censusIntercensal
percentage
change
DwellingsPercentageDwellingsPercentage
1184,99218.4209,46019.413.2
2293,00429.2329,26230.512.4
3164,64016.4184,36517.112.0
4181,70718.1190,83317.75.0
5105,94510.6100,8489.4−4.8
644,0194.438,3613.6−12.9
7 or more28,8032.924,8672.3−13.7
            Total, occupied1 003 113100.01 078 005100.07.5

Tenure of dwellings. A comparison of the 1981 and 1986 census data shows two dominant trends in relation to changes in the tenure of private dwellings. These can be seen in table 6.4.

Occupied private dwellings owned without a mortgage increased by 18.1 percent during the intercensal period to reach 339 420 in 1986. This category increased its share of total dwellings from 28.8 percent to 31.8 percent There was also an increase (of 5.4 percent) in the number of occupied dwellings owned with mortgage during this period although the share of total dwellings with this tenure status fell from 42.4 percent in 1981 to 41.9 percent in 1986.

Table 6.4. TENURE OF DWELLINGS AND CATEGORY OF LANDLORD

Tenure and category of landlord1981 census1986 censusIntercensal
percentage
change
Permanent
private
dwellings
Percentage
of total
specified
Permanent
private
dwellings
Percentage
of total
specified
Owned—
     With mortgage423,45942.4446,25341.95.4
     Without mortgage287,34328.8339,42031.818.1
Rented or leased from—
     Private person/company143,13614.4148,80613.94.0
     Housing Corporation57,0725.756,0885.3−1.7
     Other government departments21,8012217,7391.7−18.6
     Local authority19,0951.916,5241.5−13.5
     Landlord not specified12,2851.210,7311.0−12.6
Total, rented or leased253,38925.4249,89423.4−1.4
Provided free33,5283.430,5852.9−8.8
Not specified5,38811,853120.0
            Total, permanent private dwellings1 003 113100.01 078 005100.07.5

In contrast to the growth in self-owned permanent private dwellings, there was a 1.4 percent decline in the number of rented or leased dwellings during 1981–86. This fall in the rented and leased dwelling stock can be attributed to reduced servicing of the rental housing market by the Housing Corporation, other government departments, and local authorities.

Dwellings rented or leased from individuals and companies increased by 4.0 percent during the 1981–86 intercensal period.

Maori and Pacific Island Polynesian households and dwellings

Composition of households. There was a total of 69 477 households in permanent private New Zealand Maori dwellings at the 1986 Census of Population and Dwellings. The corresponding figure for households living in permanent private Pacific Island Polynesian dwellings was 19 962.

In each case, the dwellings are defined in terms of the ethnic origin of the dwelling ‘occupier’ and are based on the number of occupiers of ‘solely New Zealand Maori’ or ‘solely Pacific Island Polynesian’ origin. As a consequence, the 1986 census gives a conservative estimate of the numbers of such dwellings (and, by definition, households). Occupied permanent private dwellings should ideally be defined in terms of the ethnic identity of the majority of household members.

In the case of New Zealand Maori, this problem is compounded by the fact that the preferred definition of a ‘Maori’ is ‘a person of Maori origin, descent or identity’ and includes those both of solely Maori origin and mixed origin including Maori.

No direct comparison of either New Zealand Maori or Pacific Island Polynesian households or dwellings between the 1981 and 1986 censuses is possible because of an amended 1986 census question on ethnic origin which abolished fractions of origin.

Table 6.5 shows the usual composition of New Zealand Maori and Pacific Island Polynesian households by type at the 1986 census. The outstanding feature of this table is that the percentage distribution of Pacific Island Polynesian households is more weighted towards the ‘one family plus other persons’ and ‘two or more families with or without other persons’ categories. Of all Pacific Island Polynesian households, 33.0 percent are in the above categories compared to 21.3 percent of New Zealand Maori households.

Table 6.5. USUAL COMPOSITION OF MAORI AND POLYNESIAN HOUSEHOLDS, 1986 CENSUS*

Household typeNew Zealand MaoriPacific Island Polynesian
NumberPercentage
of total
NumberPercentage
of total

* Private households occupying permanent dwellings where the ‘occupier’ is a person of ‘solely Sew Zealand Maori origin’ or ‘solely Pacific Island Polynesian origin’.

Excludes households where the occupier is aged less than 15 years, where the occupier is temporarily resident in the dwelling or where the household is composed entirely of visitors.

One family only43,95063.311,46957.5
One family plus other persons9,58513.84,40722.1
Two families (with or without other persons)4,5876.61,9029.5
Three or more families (with or without other persons)6090.92851.4
Non-family households3,9755.78374.2
One-person households6,7719.71,0625.3
                    Total69 477100.019 962100.0

Types of dwellings. An indication of the 1986 census distribution of Maori and Pacific Island Polynesian occupying permanent private dwellings by type is given in table 6.6. New Zealand Maori show a greater tendency to live in separate houses than Pacific Island Polynesians. The reverse is true for two and three semi-detached houses or flats.

Table 6.6. TYPES OF MAORI AND POLYNESIAN DWELLINGS, 1986 CENSUS*

TypeNew Zealand MaoriPacific Island Polynesian
NumberPercentage
of total
NumberPercentage
of total

* Permanent dwellings without households where the ‘occupier’ is a person of ‘solely New Zealand Maori origin’ or ‘solely Pacific Island Polynesian origin’.

Calculated in terms of specified cases.

Occupied permanent private dwellings—
     Separate house54,62478.813,86068.9
     Two houses or flats joined together6,5349.42,52612.5
     Three or more flats (houses) joined together6,8649.93,52817.5
     Flat/house attached to business or shop5460.81860.9
     Bach, crib, hut (not in work camp)7081.0240.1
     Not specified678114
                    Total69 957100.020 224100.0

Number of occupants. The distribution of New Zealand Maori and Pacific Island Polynesian dwellings by number of occupants at the 1986 census (see table 6.7) reinforces the patterns evident in the usual composition of households by type for these two ethnic groups. Whereas 47.3 percent of Maori dwellings have three or fewer occupants, only 30.0 percent of Pacific Island Polynesian do.

This can be partly explained by the lower average size of Maori families and the tendency for Pacific Island Polynesian dwellings to house more than one family.

Table 6.7. NUMBER OF OCCUPANTS OF MAORI AND POLYNESIAN DWELLINGS 1986 CENSUS*

Number of occupantsNew Zealand MaoriPacific Island Polynesian
DwellingsPercentage
of total
DwellingsPercentage
of total

* Permanent dwellings with households where the ‘occupier’ is a person of ‘solely New Zealand Maori origin’ or ‘solely Pacific Island Polynesian origin’.

Refers to the number of people residing in a permanent private dwelling on census night.

One7,26610.41,1105.5
Two12,90918.52,21110.9
Three12,89718.42,76013.6
Four13,51219.33,36916.6
Five9,98714.33,37516.7
Six6,1298.82,82313.9
Seven or more7,25710.44,59922.7
            Total69 957100.020 244100.0

Tenure. Patterns of tenure and category of landlord shown in 1986 census data reflect the household income and demographic structures of Maori and Pacific Island Polynesian ethnic groups. Table 6.8 shows that Pacific Island Polynesians tend to be more reliant on rented or leased housing than Maori, who, in turn, are almost twice as reliant on rental housing as the general population (see table 6.4).

For occupier-owned housing, 46.9 percent of Maori dwellings, compared with 42.4 percent of Pacific Island Polynesian dwellings, were owned with or without a mortgage.

Table 6.8. TENURE OF MAORI AND POLYNESIAN DWELLINGS AND CATEGORY OF LANDLORD, 1986 CENSUS*

Tenure and category of landlordNew Zealand MaoriPacific Island Polynesian
Permanent
private
dwellings
Percentage
of total
Average
number of
occupants
;
Permanent
private
dwellings
Percentage
of total
Average
number of
occupants
;

* Permanent dwellings where the ‘occupier’ is a person of ‘solely Sew Zealand Maori origin’ or ‘solely Pacific Island Polynesian origin’.

Calculated in terms of specified cases.

Refers to the average number of people residing in a permanent private dwelling on census night.

Owned—
     With mortgage22,35232.54.47,23636.25.7
     Without mortgage9,93914.43.61,2426.24.7
Rented or leased from—
     Private person/company14,43921.0..4,28421.4..
     Housing Corporation12,70818.5..5,39727.0..
     Other government departments3,0004.4..3211.6..
     Local authority1,2691.8..3932.0..
     Landlord not specified2,3463.4..8314.2..
Total, rented or leased33,76849.03.611,22656.24.5
Provided free2,7844.03.72701.44.6
Not specified1,1013.32704.4
                    Total69 957100.03.920 224100.04.9

Household transport

At the 1986 Census of Population and Dwellings 913 113 households had the use of one or more motor vehicles for private transport. This was an increase of 80 256 over the number of private households (832 857) with the use of vehicles at the 1981 census.

The proportion of private households with one or more motor vehicles remained relatively static at 87.6 percent. Private households without a motor vehicle increased from 12.4 percent to 13.3 percent during the intercensal period, while there was a related decline in the percentage of one-vehicle households.

A small rise in the share of households with two vehicles—from 28.0 percent at the 1981 census to 28.5 percent at the 1986 census—was recorded and is consistent with a decrease in the percentage of households with access to three or more vehicles, during the same period.

Table 6.9. HOUSEHOLD TRANSPORT

Number of motor vehicles*1981 census1986 censusIntercensal
percentage
change
HouseholdsPercentage
of total
HouseholdsPercentage
of total

* Includes cars, station-wagons, vans, trucks, and other vehicles used on public roads. Business vehicles if available for private use are also included.

Calculated on specified cases only.

0118,35612.4140,29513.318.5
1476,58350.1519,79549.39.1
2266,56228.0300,77428.512.8
364,4316.869,1836.67.4
417,5561.817,2381.6−1.8
5 or more7,7250.86,1260.6−20.7
Not specified51,89724,597−52.6
                    Total1 003 113100.01 078 005100.07.5

Household income and expenditure

The New Zealand Household Expenditure and Income Survey is conducted continuously by the Department of Statistics and the results are presented on a March-year basis. It provides statistics on the expenditure patterns and income levels of private households and information on the social and demographic characteristics of households.

A sample of approximately 4500 private households is randomly selected for the survey every third year, to provide data for the revision of the Consumers Price Index (see section 23.1, Consumer prices), and a smaller sample of approximately 3500 private households is selected in other years. In the 1988–89 year, 3435 private households (comprising 9652 people) participated in the survey, each household containing an average of 2.81 people. Questionnaires administered to each household include a household questionnaire, an expenditure questionnaire and income questionnaires. In all cases, information as reported or recorded by household members is processed without adjustment for under-reporting of income and expenditure. Overseas experience suggests that expenditure on tobacco and alcohol, meals away from home, and food items such as ice cream and confectionery, tend to be under-reported in household surveys. Other data sources indicate that a similar situation occurs in the New Zealand survey.

In the following tables the aggregate survey income/expenditure has been averaged over all households in the survey, rather than over only those households which reported income/expenditure in particular areas. This averaging procedure has the effect of reducing some average income/expenditure statistics to a level below that which would normally be expected (e.g., expenditure on rent).

Table 6.1. INCOME DISTRIBUTION OF HOUSEHOLDS, 1988–89*

Annual incomeApproximate equivalent
weekly income
Number of
households
Average weekly
income per
household

* As estimated from Household Expenditure and Income Survey.

Including nil and loss.

$$(000)$
Under 11 00Under 211109.2150.20
11 000–13 999211 and under 307103.8266.87
16 000–19 999307 and under 384119.0344.10
20 000–24 999384 and under 479103.5430.42
25 000–30 999479 and under 595110.1536.04
31 000–36 999595 and under 710106.1649.95
37 000–44 999710 and under 863113.4782.28
45 000–53 999863 and under 1 036106.3942.25
54 000–67 9991 036 and under 1 304107.81 148.85
68 000 or over1 304 or over            112.21 808.97
                    Total 1 091.4708.47

Table 6.11. AVERAGE WEEKLY EXPENDITURE FOR SELECTED FAMILY TYPES, 1988–89

Expenditure groupYoung
couple*
Older
couple
Couple with
1 child
Couple with
2 children
Couple with
3 or more
children
Solo parent
with child(ren)
Non-family
households
Extended
family
households
All
households
* Householder is under 35 years of age.
$
Food91.7276.23104.84124.61137.5782.2654.57144.5392 31
Housing261.8157.02106.93178.97115.31156.5673.32177.86115.47
Household operation86.6974.1693.4589.2385.9271.8150.60104.2075.64
Apparel32.4120.6428.3841.4037.7624.4017.4640.8527.51
Transportation110.7493.96129.68138.9094.7986.3575.83130.66102.06
Other goods75.4955.8176.8784.1273.4951.3443.8591.0363.42
Other services78.7587.7788.21112.80105.1353.9950.3494.1580.87
Total expenditure737.61465.59628.35770.03649.98526.70365.97783.27557.28
Total households (000)48.7208.7125.3168.4119.7103.4273.144.01 091.4

Table 6.12. AVERAGE WEEKLY HOUSEHOLD EXPENDITURE, 1988–89

Expenditure group and subgroupAverage weekly
household
expenditure*
Percentage
of total
expenditure
* Averages have been rounded to the nearest 5 cents.
 $percent
Food—
     Fruit7.551.4
     Vegetables7.651.4
     Meat12.202.2
     Poultry2.650.5
     Fish2.100.4
     Farm products, fats, oils11.652.1
     Cereals, cereal products12.102.2
     Sweet products, spreads, beverages10.451.9
     Other foodstuffs7.801.4
     Food consumed in eating places, takeaway foods18.153.3
                Total, food92.3016.6
Housing—
     Rent21.003.8
     Net capital outlay and related expenses−0.70−0.1
     Mortgage payments40.607.3
     Payments to local authorities11.952.2
     Property maintenance goods16.953.0
     Property maintenance services25.404.6
     Housing expenses not elsewhere classified0.350.1
                Total, housing115.4520.7
Household operation—
     Domestic fuel and power15.102.7
     Home appliances18.203.3
     Household equipment and utensils2.850.5
     Furniture8.451.5
     Furnishings2.400.4
     Floor coverings3.050.6
     Household textiles4.550.8
     Household supplies6.301.1
     Household services14.802.7
                Total, household operation75.6513.6
Apparel—
     Men's clothing5.401.0
     Women's clothing8.301.5
     Children's clothing2.000.4
     Clothing not otherwise classifiable3.750.7
     Clothing supplies and services2.550.5
     Men's footwear1.200.2
     Women's footwear1.500.3
     Children's footwear0.750.1
     Footwear not otherwise classifiable1.850.3
     Footwear supplies and services0.25
                Total, apparel27.504.9
Transportation—
     Public transport in N.Z.5.401.0
     Overseas travel24.004.3
     Purchase of road vehicles31.655.7
     Vehicle ownership expenses38.106.8
     Private transport costs n.e.c.2.950.5
                Total, transportation102.0518.3
Other goods—
     Tobacco products7.151.3
     Alcohol14.502.6
     Medical goods2.200.4
     Toiletries and cosmetics3.700.7
     Personal goods5.150.9
     Pets, racehorses and livestock5.501.0
     Publications, stationery and office-type equipment9.551.7
     Leisure and recreational goods10.5019
     Recreational vehicles3.300.6
     Goods n.e.c.1.900.3
                Total, other goods63.4011.4
Other services—
     Health services9.101.6
     Personal services3.700.7
     Educational and tuitional services4.150.8
     Accommodation services3.400.6
     Financial, insurance and legal services14.502.6
     Vocational services1.600.3
     Leisure services13.102.4
     Services n.e.c.2.250.4
     Expenditure n.e.c.10.851.9
     Contributions to savings18.253.3
                Total, other services80.8514.5
                Total, net expenditure557.30100.0
                Number of households surveyed3,435 

Table 6.13. HOUSEHOLD AMENITIES

Amenity in dwellingPercentage of all surveyed households*
1987–881988–89
* Household Expenditure and Income Survey.
Electric range or wall oven95.194.9
Gas, coal or oil-fired range8.79.6
Microwave oven37.645.5
Telephone95.295.7
Clothes-washing machine96.497.3
Clothes dryer55.758.4
Separate refrigerator37.134.6
Refrigerator/freezer combination69.871.7
Separate deep-freeze unit59.160.6
Dish-washing machine18.619.0
Colour television (owned)79.384.3
Monochrome television (owned)16.315.2
Colour television (rented)13.911.2
No television5.23.9
Video recorder (owned)41.548.9
Video recorder (rented)1.23.0
Home computer (mains operated, with keyboard)9.611.5
Portable electric heater84.585.0
Electric heater fixed in place33.931.2
Portable gas heater4.86.0
Gas heater fixed in place7.18.3
Open fire34.133.0
Slow-combustion fire30.031.2
Portable kerosene heater6.55.5
Wet-back fire of any kind21.222.2
Central heating of any kind536.3
Pet dog..27.1
Pet cat..50.1

International comparisons of standards of living

Relative standards of living cannot be compared by taking per-head incomes or expenditure alone. Environmental and other factors are increasingly recognised as components of the quality of life—a much less easily measured concept. In assessing standards of living, consideration is now given to the development of social indicators in parallel with purely economic terms of measurement. These include health and personal safety; equality of educational opportunity; employment and quality of working life; leisure satisfaction; social-welfare provisions; social opportunity and quality; social, cultural, and communication capabilities; housing and community facilities; and the physical environment.

Methods of measurement of these factors are being recommended on an international basis. In these wider terms of reference New Zealand's relative position is appreciably improved.

Some comparative indicators related to standards of living are set out in table 6.14.

Table 6.14. INDICATORS OF STANDARDS OF LIVING

ItemNew
Zealand
United
States
CanadaAustraliaUnited
Kingdom
SwedenJapan

* 1982

1983

1984

§ 1985

1986.

Sources: OECD Economic Survey of New Zealand, May 1989; UNESCO Statistical Yearbook 1988–89.

Population density (per km2) 198712263223219328
GDP per capita ($ US)—198710,52018,33816,01911,91911,76518,87619,465
Private consumption per capita ($ US)—19876,23612,23210,0597,3897,7317,2737,623
Passenger cars per 1000 inhabitants—1985455473421*..312377221
Telephones per 1000 inhabitants—1983646§650664540521890535
Television sets per 1000 inhabitants—1986358813546472534393585
Doctors per 1000 inhabitants—19852.42.01.8*..0.52.51.2*
Infant mortality (per 1000 live births)—198510.810.49.19.29.46.85.9
Total public education expenditure as percentage of GNP—19854.76.77.95.65.27.75.1
Employment by sector (percentage):
     Agriculture10.52.44.95.82.44.28.3
     Industry28.929.825.326.6.29.830.233.8
     Services60.667.869.867.667.865.657.9
Wages and prices (average annual percentage increase over 5 years to 1987):
     Wages7.43.13.65.78.57.62.6
     Prices12.63.34.27.04.75.91.1

6.2 Marriage

Marriage may be solemnised either by a celebrant or before a registrar of marriages. A licence must be obtained from a registrar before a marriage by a celebrant can be solemnised, and notice must be given by one of the parties. Marriage celebrants may be nominated members of approved (including non-religious) organisations or justices of the peace. People under 20 years of age, not being widowed, require the consent of parents or guardian. In case of refusal, the consent of a District Court judge may be sought.

The minimum age for marriage is 16 years, no marriage, however, is deemed to be void by reason only of an infringement of the minimum age.

Table 6.15. MARRIAGE RATES

December yearNumber of
marriages
Marriage rate
Crude*General

* Per 1000 mean population.

Per 1000 mean not-married population aged 16 years and over.

198425,2727.7727.96x
198524,6577.5426.54x
198624,0377.3325.28
198724,4437.3924.93
198823,4857.0623.34

Marital status of the population

Table 6.16 shows the usually resident New Zealand male and female populations by marital status and age group at the 1986 Census of Population and Dwellings. The numbers ‘never married’ and ‘married’ in each age group reflect the long-term changes that have taken place in the average age at marriage, the marriage rate and the age-sex distribution of the population.

Age-specific marriage rates have, in turn, been affected by the increasing number of people in each age group living in stable ‘de facto’ relationships. General improvements in life expectancy and earlier increases in divorce rates have had a continuing impact on the numbers in the ‘widowed’ and ‘divorced’ categories at all ages.

The outcome of these changes during the 1981–86 intercensal period is shown in table 6.17, which shows the numbers of males and females in each marital status category and the percentage distribution of the population by marital status at the 1981 and 1986 censuses. There was a considerable increase in the percentages of both males and females ‘never married’ between the 1981 and 1986 censuses. In contrast, the corresponding percentages for the ‘married’ group showed a compensating decline. Also evident are percentage increases in the numbers ‘separated’, ‘widowed’ and ‘divorced’ during the period.

Table 6.16. MARITAL STATUS BY AGE GROUP, 1986 CENSUS*

Age group (years)Never
married
MarriedSeparatedWidowedDivorcedNot
specified
Total

* Usually resident New Zealand population.

Includes persons remarried.

Males
15–19146 370x65415042515,658152,928
20–24118,74020,1361,716813002,079143,052
25–3482,083149,09112,3753967,5843,261254,787
35–4420,184166,39212,65194813,0472,625215,856
45–5410,659124,3297,6112,1669,7802,232156,771
55–6410,149114,5194,4555,7787,2661,629143,799
65–745,78773,0831,8519,4863,0691,08394,365
75 and over2,90730,36061812,9039481,09848,831
     Total396 879678 56441 42731 80042 05419 6711 210 389
Females
15–19140,1512,22926718364,467147,168
20–2490,68742,1744,3381477831,716139,845
25–3452,887171,99616,8631,23912,4022,898258,285
35–4412,720165,42614,1453,44417,5262,352215,601
45–546,552118,9686,9218,20211,3761,893153,915
55–646,996101 2.473,63923,1937,4851,617144,183
65–747,20959,1811,52442,6033,7681,347115,638
75 and over7,43118,60343253,6701,4251,71683,277
     Total324 633679 82448 132132 51354 79818 0061 257 909

Table 6.17. DISTRIBUTION OF POPULATION BY MARITAL STATUS*

Marital status1981 census1986 censusIntercensal increase or decrease (−)
NumberPercentage
distribution
NumberPercentage
distribution
NumberPercentage

* Usually resident New Zealand population aged 15 years and over.

Percentages are calculated on specified cases only.

Includes persons remarried.

Males
Never married346,47031.3396,87933.350,40914.5
Married668,68860.4678,56157.09,8731.5
Separated35,7453.241,4243.55,67915.9
Widowed29,7962.731,8002.72,0046.7
Divorced26,0552.442,0543.515,99961.4
Net specified23,58619,671−3 915−16.6
                    Total1 130 340100.01 210 389100.080 0497.1
Females
Never married271,87523.8324,63326.252,75819.4
Married670,22158.6679,82754.89,6061.4
Separated42,4053.748,1323.95,72713.5
Widowed125,46011.0132,51310.77,0535.6
Divorcee33,7082.954,7984.421,09062.6
Not specified22,695 18,006−4 689−20.7
                    Total1 166 364100.01 257 912100.091 5487.8

When the living arrangements of the population are studied, i.e., people are classified as living together as husband and wife or as living alone, a trend emerges with reference to the 1981–86 intercensal period which reflects changing attitudes to traditional marriage. The population ‘living together as husband and wife’ consists of those in the ‘married’ category plus those in stable ‘de facto’ relationships but excluding ‘married’ people and those people whose marital status is ‘not specified’.

During the 1981–86 intercensal period, the percentage of males living in a ‘husband and wife’ relationship declined slightly from 62.5 percent at the 1981 census to 61.7 percent at the 1986 census. There was a corresponding trend for females.

Table 6.18 shows the male and female populations living in de facto relationships by age group, irrespective of their legal marital status.

Table 6.18. DE FACTO RELATIONSHIPS*

Age group (years)1981 census1986 censusIntercensal increase or decrease (−)
NumberPercentage
distribution
NumberPercentage
distribution
NumberPercentage

* Usually resident New Zealand population.

Includes people in the ‘married’ and ‘not specified’ marital status categories.

Males
15–192,5175.71,8993.3−618−24.6
20–2411,51126.213,12522.8161414.0
25–3416,40437.322,30538.85,90136.0
35–447,80317.711,57120.13,76848.3
45–543,8738.85,3889.41,51539.1
55–641,4553.32,4454.299068.0
65–743720.86421.127072.6
75 and over810.21710.390111.1
     Total44 019100.057 549100.013 53030.7
Females
15–196,76215.45,79610.1−966−14.3
20–2413,37730.416,77329 23,39625.4
25–3414,08232.019,82134.55,73940.8
35–446,27614.39,55216.63,27652.2
45–544005.53,8016.61,40158.4
55–647891.81,2302.144155.9
65–742010.54020.7201100.0
75 and over510.11080.257111.8
     Total43 941100.057 480100.01353930.8

Age at marriage

Until recently, the proportion of minors among persons marrying had been increasing over a fairly long period, but it is now declining slightly. In 1971 the age of majority was lowered from 2.1 to 20 years of age. In 1988, one bride in every 16 was under 20 years of age. Bridegrooms were usually older than their brides; only one in every' 82 was under 20 years of age. Of the people married in 1988, 1765 or 3.8 percent were under 20 years of age; 15 790 or 33.6 percent were aged 20–24 years; 13 983 or 29.8 percent were 25–29 years; 9444 or 20.1 percent were 30–39 years; and 5988 or 12.7 percent were 40 years of age and over.

Table 6.19. AGES OF PERSONS MARRIED, 1988

Age of
bridegroom,
in years
Age of bride, in yearsTotal
bridegrooms
Under 2020–2425–2930–3435–3940–4445 and
over
Under 20172921553287
20–249304,50377013829966,385
25–293043,6643,0076381332937,778
30–34468241,57083224778223,619
35–3921224556524345143451,858
40–443631832593112401161,175
45 and over2351041823214381,3012,383
       Total brides1 4789 4056 2052 5781 3899371 49323 485

Table 6.20 gives the average age (arithmetic mean) at marriage for the five years to 1988, but these figures do not correspond with the ‘modal’, or most popular, age. The modal age for brides in 1988 was 21 years. In the case of bridegrooms the most popular age has varied, and for recent years it has been 21 to 24; in 1988 it was 25 years.

Table 6.2. MEAN AGE OF PERSONS MARRIED

YearBridegroomsBrides
BachelorsDivorcedWidowersSpinstersDivorcedWidows
 age in years
198426.1239.9558.8023.7936.0552.76
198526.4040.1559.6924.0336.3952.34
198626.5740.7059.3224.3236.9652.39
198726.8940.9159.3224.6637.3152.36
198827.2140.9059.6624.9237.1353.31

Marriage guidance

A national network of marriage guidance counsellors is funded largely through a grant from central government.

Marriage Guidance New Zealand—which maintains this network—aims to develop positive relationships between partners and within families, whether they live together or apart. Counselling referrals come from the Family Court, Department of Social Welfare, other professionals and social service agencies. However, most are self referrals. Education programmes are conducted by marriage guidance tutors who organise courses covering subjects such as becoming partners, ‘making it alone’ for those separated, and parenting. Contract courses are also organised for professional bodies, government departments and business.

During 1988, just over 46 000 hours were spent counselling and taking courses by the 600 counsellors and tutors. The counsellors saw 10 600 cases, resulting in 34 000 interviews. The education programme conducted 710 courses which were attended by a total of 13 000 people.

A public education programme includes the production of resources and articles for the media and during 1990 this will focus on communication skills for parents.

In November 1989, Marriage Guidance New Zealand celebrated 40 years of operation. Initially, seven cities had marriage guidance services in 1949 but by 1990, 30 cities and 32 towns were being serviced with counselling and educational programmes. Recent developments include Te Korowai Aroha, a programme to train Maori to work with Maori clients in a culturally appropriate way. Launched in 1989, phase one of this programme has seen workers operating in the Bay of Islands, Waikato, Hauraki, Rotorua, Gisborne and Hawkes Bay. By late 1990 it is expected that the programme will be extended to other areas in New Zealand.

Dissolution of marriage

There is only one ground on which an order dissolving a marriage can be made—that is, that the marriage has broken down irreconcilably. The Family Proceedings Act 1980, which provides the legal framework for the dissolution of marriage, also makes provision for orders declaring a marriage void and for declarations of presumption of death. To establish that a marriage has broken down irreconcilably, the parties must be living apart, and have done so for the previous two years.

Since 1981, applications for dissolution of marriage have been made to Family Courts, which are less formal and have more simplified procedures than other courts. The following are the main pieces of legislation in the area:

Matrimonial Property Act 1976. This Act provides for the just division of the matrimonial property between the spouses when their marriage ends by separation or dissolution.

Domestic Protection Act 1982. This Act aims to mitigate the effects of domestic violence by providing for non-molestation orders, non-violence orders, and emergency occupation and tenancy orders.

Guardianship Act 1968. This Act requires custody applications to be heard in a Family Court and requires a judge to appoint a lawyer to represent the interests of any children involved. The concept emphasised is that the more suitable parent is to be given custody of a child or children irrespective of the sex of the parent or age of the children. An offence of wilfully hindering access to children is defined by the Act, and the court has the power to require medical, psychiatric, or psychological reports on children. The Act also gives Family Courts the power to call witnesses.

Social Security Act 1964. This Act contains a scheme known as the Liable Parent Contribution Scheme, which aims to provide a fair and uniform method of determing the contributions a liable parent must make to support his or her children if the other parent is receiving a domestic purposes benefit. See section 7.2, Income support.

Table 6.21. DISSOLUTION ORDERS AND DECREES ABSOLUTE GRANTED

Ground or evidence presented198619871988
Applications filed for dissolution of marriage9,1438,9428,812
Evidence of irreconcilable breakdown—
     Separation order770657588
     Written separation agreement4,1713,8653,882
     Verbal separation agreement2,4192,6173,026
     Lived apart, no agreement or order1,3701,5591,164
          Total, irreconcilable breakdown8 7308 6988 660
     Other dissolution orders7711
          Total, dissolution orders8 7378 7058 671
Grounds for divorce decrees—
     Adultery11
     Separation by agreement111
     Separation by court order4
     Having lived apart for 4 years or more122
                    Total, decrees absolute1643
                    Total, all dissolution orders and decrees absolute8 7538 7098 674

Table 6.22. DURATION OF DISSOLVED MARRIAGES, 1988*

Duration of marriage
(in years)
Age (in years) at marriage
Under 2020–2425–2930–5435–3940–4445 and over (including not stated)Total

* Excludes three divorce proceedings carried over from previous legislation.

At time of dissolutions granted in 1988, calculated from month and year of marriage to month and year of order.

Husbands (all petitions and applications)
Under 5334213161389162901,151
  5–91171,153581254128591102,402
10–141718373601095531601,623
15–19179889255924112191,487
20 and over1551,1904621173523262,008
               Total6554 4901 9747103501873058 671
Wives (all petitions and applications)
Under 51705172001027038541,151
  5–95811,1583021588951632,402
10–14594688197703214281,623
15–1964265012140168101,487
20 and over7111,02717543228222,008
               Total2 6984 0409954132291191778 671

Table 6.23. APPLICATIONS AND ORDERS UNDER FAMILY PROCEEDINGS, GUARDIANSHIP AND DOMESTIC PROTECTION ACTS

 198619871988
ApplicationsOrdersApplicationsOrdersApplicationsOrders
* Includes definition of access for which the original undefined access provisions way not have been the subject of court orders.
Married parties
     Separation1,4743251,2542941,070213
     Maintenance1,6014311,3613261,272270
     Custody2,9891,0972,8491,0412,874995
     Access*688705667548723528
     Non-violence1,0313701,0373761,284428
     Non-molestation1,6684701,6754511,913467
     Occupancy of home1,4233701,1863961,216339
Non-married parties
     Paternity1,1995691,3336331,247563
     Maintenance878209951270665207
     Custody1,6897181,9088982,190990
     Access*242284375361407394
     Non-violence6722937673441,018403
     Non-molestation9193411,0763871,339443
     Occupancy of home324131259124312112

Table 6.24. CUSTODY ORDERS, 1988

Type of partyNumber of children involvedTotal
1234567 or more
* Joint, divided, other party.
Married—
     Custody to mother2352851234345695
     Custody to father526124531146
     Custody, other*2868421231154
          Total orders315414189601061995
          Total children315828567240503672 043
Non-married—
     Custody to mother6021242981764
     Custody to father4919674
     Custody, other*11128121152
          Total orders7621714782990
          Total children76234214132101 287

Table 6.25. APPEALS TO HIGH COURT AGAINST DECISIONS IN DOMESTIC PROCEEDINGS AND FAMILY COURTS

YearHeardAllowed
198311647
198410337
19858329
19868036
19875822
19885915

6.3 Human rights, immigration and citizenship

Human Rights Commission

An Act was passed by Parliament in 1977 to establish a Human Rights Commission and to promote the advancement of human rights in New Zealand in general accordance with the United Nations International Covenant on Human Rights.

The Human Rights Commission has the general functions of promoting, encouraging, and co-ordinating programmes and activities in the field of human rights, and the specific functions of investigating alleged breaches of the wide-ranging provisions against discrimination on grounds of sex, marital status, or religious or ethical beliefs set out in part II of the Act. Part II also makes unlawful any discrimination on grounds of colour, race, or ethnic or national origin in a number of areas not already covered by the Race Relations Act 1971. The commission is made up of the Chief Human Rights Commissioner (the chairperson), the Chief Ombudsman, the Race Relations Conciliator, the Proceedings Commissioner, and up to three others appointed by the Governor-General on the recommendation of the Minister of Justice.

An Equal Opportunities Tribunal was constituted under the same Act. Its function is to adjudicate in civil proceedings brought by the commission alleging discriminatory practice under part II of the Act. The tribunal consists of a chairperson, who must be a barrister or solicitor of the High Court, and two other persons appointed by the chairperson for the purposes of each hearing from a panel maintained by the Minister of Justice.

Office of the Race Relations Conciliator

The Race Relations Act 1971 affirms and promotes racial equality in New Zealand and implements the International Convention on the Elimination of All Forms of Racial Discrimination. Discrimination is unlawful on the grounds of colour, race, or ethnic or national origins in: (a) access by the public to places, vehicles, and facilities; (b) provision of goods and services; (c) employment (including employment of independent contractors): and (d) land, housing, and other accommodation. It is also unlawful to publish or display any advertisement or notice which indicates an intention to commit a breach of any of these provisions. The Act also makes it an offence to incite racial disharmony. A breach of any of the provisions may be the subject of an investigation by the Office of the Race Relations Conciliator.

A major role for the office of the conciliator is in the field of education, and in resolving situations where there has been misunderstanding due to different racial backgrounds or concepts on the part of the parties. Potential racial incidents can often by avoided by education and conciliation. This extension of the conciliator's duties from an area confined to complaints and investigation of racial discrimination to one where discrimination may not have occurred, but where racial misunderstanding exists, is in keeping with the aims of the Act of affirming and promoting racial equality in New Zealand.

There are race relations offices in Auckland, Wellington, and Christchurch.

Women's issues

A Ministry of Women's Affairs, an autonomous department of state, was established in 1984 to advise the Government on policy matters relating to the equality of women.

The ministry has three units—policy, Te Ohu Whakatupu, and a corporate services unit. The corporate services unit provides information services, management of the department's publications programmes, and financial and administrative support. The unit also administers a project fund and a women's appointment file.

Te Ohu Whakatupu is responsible for ensuring the specific interests of Maori women are included in all areas of the ministry's work. Its work includes liaison with Maori women in the community and the development of policy which is explicitly addressed to issues of greatest importance for Maori women.

The policy unit prepares policy reports, reviews of legislation, ministerial correspondence, replies to parliamentary questions and cabinet papers. The unit participates directly in numerous interagency activities aimed at social or economic equality.

The ministry's regular publications are Panui, a quarterly newsletter sent to 34 000 groups and individuals, and WagMag, a quarterly newsletter distributed to about 4000 rural women.

Major issues affecting women recently include:

Education. The comprehensive reforms of education administration included the establishment of the Ministry of Education, headed by a woman, Dr Maris O'Rourke. The policy division of the ministry includes a Girls and Women Section that will develop policy relating to female learning.

The new funding structure for tertiary education includes significantly increased tuition fees payable by students. The Ministry of Education is monitoring the system to ensure women are not disadvantaged in access to tertiary education. Additional funding is available to education providers for programmes to encourage access and participation by women.

Charters between schools and the Ministry' of Education charge each school with addressing questions of equity for girls. There is now an expectation of educators to change their practice to benefit girls and women and to create an environment in the school that recognises and broadens women's aspirations and achievements.

Funding for early childhood care and education was dramatically increased in the 1989 Budget. Government commitment to improving the quality and accessibility of early childhood care and education is of particular significance to women.

Housing. In 1989 the Ministry of Women's Affairs published a booklet Women's Guide to Housing, which includes sections on emergency housing, rental accommodation, home ownership, and the housing needs of specific groups.

The Housing Corporation has established a women's policy unit within its head office, to help improve services to female clients, to ensure its policies and programmes meet the housing needs of women, and to remove the institutional ‘barriers’ which disadvantage women.

A consultative committee of Maori women was established in 1989 to assist in overseeing an 18 month research project on Maori women's housing needs.

Paid work-force. An Employment Equity Bill had its first reading in Parliament in December 1989. It covers the areas of equal employment opportunity and pay equity and the appointment of an Employment Equity Commissioner to administer the legislation. See section 12.5, Labour relations.

The National Advisory Council on the Employment of Women (NACEW) is undertaking a major research project on the position of women in the labour market. The project will cover participation, occupational segregation, wages and conditions, and assessing how economic and social changes and policies have affected various groups of women.

The Minister of Employment is developing a women's training and employment policy package to help overcome the barriers to participation and occupational diversity women face.

Valuing unpaid work. The Department of Statistics, in association with other interested organisations, has developed a time use survey which will be piloted in 1990. The survey will measure the range and extent of unpaid work done by men and women in the home and the community to show the economic contribution of unpaid work. The information gathered will assist the development of policy on issues such as childcare, income maintenance, the (paid) labour market, and voluntary agency support.

Violence and pornography. The Ministry' of Women's Affairs chaired an interdepartmental working party on the funding of sexual abuse recovery services. The committee consulted with those working in the provision of sexual abuse support services, reviewed the funding programmes available to services and now is involved in the development of competency guidelines for sexual abuse counsellors.

In the 1988–89 financial year, 48 women's refuges received $2.46 million and 76 rape/sexual abuse support services received $1.306 million from the Department of Social Welfare's programmes for services for victims of violence against women.

The report of a ministerial inquiry into pornography was published in January 1989.

Income maintenance./The guaranteed retirement income replaced national superannuation and continues to provide universal entitlement. It is significant for women in that it continues to he funded from general taxation revenue and not through individual contributions.

Health. Important advances in the area of women's health have been made in response to the Report of the Cervical Cancer Inquiry, published in August 1988. Nelson and Wanganui are pilot areas for a national cervical screening programme being developed. A discussion document on informed consent was drawn up by a working party convened by the Department of Health, and circulated with a' view to ensuring that properly informed consent is obtained before treatment. A standard for hospital ethics committees has been developed and promulgated. A working party was also convened to develop a proposal for the establishment of a health commissioner and the appointment of patient advocates in all area health boards, and has reported to the Minister of Health.

Applications were invited for the establishment of fully evaluated pilot programmes for breast cancer screening as the first step in the development of a policy for effective mammography screening for New Zealand.

The restructuring of the health services has implications for women's health and the Ministry of Women's Affairs published a booklet, ‘Think Women's Health’ to encourage the establishment of structures for liaison between boards and women in their communities.

A women's health unit has been established in the restructured Department of Health.

Maori women. Examples of issues of concern to Maori women during 1989 included:

Health—Significant changes in the provision of health services to Maori women include the devolution of health service delivery to area health boards, the findings of the cervical cancer inquiry and the emphasis the Government has given to ensuring services are more culturally appropriate to Maori.

Te Ohu Whakatupu has been working to create an awareness amongst policy-makers and health workers of the need to consider Maori women's issues in their work, and a greater involvement of Maori people in the health system.

Putea pounamu—Putea pounamu was initiated in 1987 as a grant programme to identify and develop decision-making skills among Maori women. The aim of putea pounamu is to encourage Maori women to participate at a decision-making level in the whanau, hapu and iwi and in the wider community. During 1989, putea pounamu grants were used for the community-based training of Maori women to develop decision-making, assertiveness, administrative, managerial and other appropriate skills. Initial training for more than 60 Maori women representing iwi groups was completed by April 1989. These women have subsequently assisted in the training of other Maori women in their iwi and communities.

Maori women in enterprise—Late in 1989, Te Ohu Whakatupu, with the Maori Women's Development Fund of the Maori Women's Welfare League, organised a wananga at Tatai Hono Marae in Auckland. Over 50 Maori women already in business or planning to enter business attended. The wananga was held to identify the barriers and supports Maori women have experienced when establishing business enterprises. The programme covered business ideas; business skills training; finance; barriers and extra pressures; supports for business ventures; confidence and motivation. Plans for further developments were also discussed at the wananga.

Religious professions

At the 1986 Census of Population and Dwellings the number of New Zealanders identifying with a prominent religion showed an increase from those recorded in the 1981 census, in most cases. The exceptions were Anglicans, ‘Christian n.e.s.’, Brethren, the Salvation Army and ‘other specified religions’, which showed a decline in support during the 1981–86 intercensal period. In the case of Anglicans. Brethren and the Salvation Army this was a continuation of the trend first evident in the intercensal period 1976–81.

People reporting themselves as having no religion increased more than threefold, while those not specifying any religion or objecting to provide the requested information were nearly halved between the 1981 census and the 1986 census. As shown in table 6.26, this was apparently the result of New Zealanders reclassifying themselves as having ‘no religion’, rather than exercising their right to object or failing to specify a religious profession.

Among the most significant facts to emerge from the table is the long-term decline in the percentage of the resident population identifying with the four traditional major religions: Anglican, Presbyterian. Roman Catholic and Methodist. From 69.1 percent at the 1976 census, the share of the population in these categories fell to 63.3 percent at the 1986 census.

Table 6.26. RELIGIOUS PROFESSIONS*

Religious professionNumberPercentage
1976x1981x1986197619811986

* Usually resident New Zealand population.

Major religious professions within the Associated Pentecostal Churches.

Includes some cases of facetious answers and also those which were not specified in sufficient detail to allow precise classification.

§ This is the only census question earning a statutory right to object to providing the information sought.

Anglican (Church of England)908,415807,135791,84729.626.624.7
Presbyterian564,735521,040587,51718.417.118.3
Roman Catholic (incl. catholic undefined)475,452452,871496,15815.514.915.5
Methodist171,816147,192153,2435.64.84.8
Baptist49,05949,53667,9351.61.62.1
Christian n.e.s.51,963100,81542,3511.73.31.3
Ratana35,07935,76339,7291.11.21.2
Mormon (Latter Day Saints)35,95837,43137,1461.21.21.2
Brethren24,35124,21319,7100.80.80.6
Salvation Army21,95120,40616,8210.70.70.5
Jehovah's Witness13,33813,68916,3770.40.50.5
Pentecostal n.e.s.4,8306,36915,7170.20.20.5
Assemblies of God5,54712,46514,3520.20.40.4
Seventh Day Adventist11,87711,42712,0150.40.40.4
Other specified158,136164,058115,1825.25.43.6
No religion100,398166,014533,7663.35.516.7
Object§434,898468,573244,73114.215.47.6
Not specified35,460104,31058,686
               Total3 103 2633 143 3073 263 283100.0100.0100.0

Ethnicity

Before the 1986 census, questions on the ethnic origins of the population asked respondents to describe their descent using fractions. For the 1986 census, and in line with practice in other countries, the use of fractions was dropped and a new system of classification adopted. In addition, a related priority convention for deriving ethnic origins where a person had equal fractions of two origins (used in the 1981 and earlier censuses) was eliminated as far as possible. To allow comparison between the 1986 and earlier censuses, considerable reprocessing of earlier census data had to be completed.

In response to requests from the census users, the Department of Statistics produced a series of ethnic definitions to assist users to classify people of ‘one origin’ and ‘mixed origin’. Statistics based on these definitions were derived to ensure the greatest possible comparability of 1986 census data on ethnic origin with that from previous censuses.

To meet the varying present day requirements, two optional definitions have been adopted for each major ethnic origin category. ‘One ethnic origin’, which is the series derived on a group affiliation concept based on cultural and ancestral criteria, is regarded as more relevant to current needs by most ethnic groups. The populations derived using this concept give census time-series numbers which, although generally smaller than those previously based on the relevant ‘half or more’ or ‘more than half origin definitions, show stable trends.

‘Ethnic origin or descent’, which is closely comparable with previous census statistics on a descent basis, provides populations with a common biological (or ancestral) background, and, with the exception of New Zealand Maori groups, is considered by most users to be of less relevance to present requirements.

Table 6.27 compares the population of major ethnic groups at the 1981 and 1986 censuses in terms of the new classification adopted.

Table 6.27. ETHNIC ORIGINS OF POPULATION

Ethnic origin1981 census1986 censusIntercensal
percentage
change
NumberPercentage
of total
NumberPercentage
of total

* Includes other ethnic origins not elsewhere counted.

Comprises combinations of the Pacific Island Polynesian ethnic origins specified in the ‘one ethnic origin’ category.

Includes all other two ethnic origin combinations not elsewhere counted.

§ Persons of New Zealand Maori or Pacific Island Polynesian origin are obtained from the one, two and three ethnic origin categories and include those of mixed New Zealand Maori-Pacific Island Polynesian origin in both cases.

One ethnic origin—
     European2 590 71683.42 651 37682.22.3
     New Zealand Maori273,6308.8295,3179.27.9
     Pacific Island Polynesian—
          Samoan35,8951.250,1991.639.8
          Cook Island Maori19,9710.623,9730.720.0
          Niuean7,1070.28,4720.319.2
          Tongan5,6820.29,2250.362.4
          Tokolauan2,0490.12,3160.113.0
          Other Pacific Island Polynesian2,9940.1474−84.2
          Total, Pacific Island Polynesian73,6952.494,6562.928.4
          Chinese16,6530.519,5060.617.1
          Indian9,9540.312,1260.421.8
          Other*6,9870.214,4870.4107.3
Total, one ethnic origin2 971 63895.73 087 46595.73.9
Two ethnic origins—
     European-New Zealand Maori105,8493.494,8842.9−10.4
     European-Pacific Island Polynesian11,898−0.414,7960.524.4
     European-other ethnic origins6,1620.28,0550.230.7
     New Zealand Maori-Pacific Island Polynesian4,2420.16,0900.243.6
     New Zealand Maori-other ethnic origin1,2121,6590.136.9
     Mixed Pacific Island Polynesian2,4300.12,6340.18.4
     Pacific Island Polynesian-other ethnic origins8011,20950.9
     Other combinations of two ethnic origins765723−5.5
Total, two ethnic origins133 3594.3130 0474.0−2.5
Three ethnic origins1 6980.19 2100.3442.4
Not specified36,61236,561−0.1
Total3 143 307100.03 263 283100.03.8
Persons of New Zealand Maori origin§384,93312.4404,77812.55.2
Persons of Pacific Island Polynesian origin§93,0663.0125,8503.935.2

All the largest ‘one ethnic origin’ groups in the New Zealand population experienced growth during the 1981–86 intercensal period. Increases ranged from 2.3 percent for European to 107.3 percent for the ‘other’ category. Pacific Island Polynesians achieved a high growth rate of 28.4 percent, while New Zealand Maori increased by 7.9 percent. The ‘European’ group's share of the population decreased from 83.4 percent at the 1981 census to 82.2 percent at the 1986 census. This was offset by increases in the proportion of the population in ‘Pacific Island Polynesian’ and ‘New Zealand Maori’ categories during the intercensal period.

An interesting trend in the mixed-origin population was the 10.4 percent decline in the ‘European-New Zealand Maori’ category during the 1981–86 intercensal period.

Changes in the size of populations belonging to the different ethnic origin categories and in their shares of the total population over the 1981–86 intercensal period reflect the different levels of natural increase, the size and directions of external migration flows, intermarriage between ethnic group, and inter-ethnic mobility.

Table 6.28 gives a comparison of the age structure of New Zealand's major ethnic groups. ‘Age-sex pyramids’ derived from the data are continued in section 5.4, Composition of the population.

Table 6.28. COMPARISON OF AGE STRUCTURE OF MAJOR ETHNIC GROUPS, 1986 CENSUS*

Age group
(years)
Percentage of population in age group
EuropeanNew Zealand
Maori
;
Pacific Island
Polynesian
ChineseIndianOther§;

* Usually resident New Zealand population.

Persons of single ethnic origin.

Persons of origin or descent.

§ Includes persons of ‘other’ single ethnic origin, and persons of two and three ethnic origins (except where one origin is New Zealand Maori).

0–46.513.311.47.49.215.2
5–1415.125.722 413.515.427.5
15–198.612.210.59.29.311.5
20–248.211.010.312.812.410.2
25–3415.515.719.621.324.116.3
35–4413.99.413.314.014.99.6
45–5410.16.67.110.48.25.0
55–595.12.32.23.42.31.6
60–644.81.61.52.51.61.2
65–799.92.01.74.12.31.5
80 and over2.30.30.21.40.30.3
               Total100.0100.0100.0100.0100.0100.0

Country of birth

Since 1945, the percentage of the resident population born in New Zealand has remained almost stable. At the 1981 and 1986 censuses, 85.6 percent and 85.1 percent, respectively, of the population was New Zealand born, as can be seen in table 6.29.

The small intercensal decline in the percentage of New Zealand born is a consequence of the rise in natural increase (live births less deaths) recorded which was more than offset by the substantial net inflow of overseas-born migrants—especially Pacific Island Polynesian during the period. Also evident is the reduced importance of the United Kingdom and Ireland as a source of new settlers.

Table 6.29. COUNTRY OF BIRTH OF POPULATION*

Country of birth1981 census1986 censusPercentage
intercensal
change
NumberPercentage of
specified cases
NumberPercentage of
specified cases

* Usually resident New Zealand population.

Persons who did not specify a country of birth.

New Zealand2 679 05485.62 759 17885.13.0
Australia43,8091.447,2081.57.8
Pacific Islands57,9991.972,9632.325.8
United Kingdom and Ireland257,5898.2255,7627.9−0.7
Canada5,5080.26,4110.216.4
Netherlands21,2040.724,4860.815.5
United States of America6,1080.27,3620.220.5
India6,0180.26,5700.29.2
China4,1760.14,9440.218.4
South Africa3,9990.14,3200.18.0
Other44,5291.452,5241.618.0
Not specified13,31421,55561.9
               Total3 143 307100.03 263 283100.03.8

Table 6.30 shows the overseas born population by years of usual residence at the 1981 and 1986 censuses. The intercensal decline in some categories is mainly the result of emigration.

Table 6.3. PERSONS BORN OVERSEAS BY YEARS OF RESIDENCE IN NEW ZEALAND

Years of
residence
1981 census1986 censusPercentage
intercensal
change
Number born
overseas*
Percentage of
specified cases
Number born
overseas*
Percentage of
specified cases

* Usually resident New Zealand population.

Includes persons who specified an overseas birthplace but who did not specify a duration of residence in New Zealand.

Excludes person who specified a duration of residence in New Zealand but who did not specify an overseas birthplace.

  0–457,35413.366,16814.615.4
  5–988,11920.445,05410.0−48.9
10–1451,83112.084,03018.662.7
15–1953,61912.447,18110.4−12.0
20 and over180,56141.8210,24046.416.4
Not specified32,76629,871−8.8
                    Total;464 253100.0482 553100.03.9

Citizenship

The current legislation of New Zealand citizenship is the Citizenship Act 1977, and the Citizenship (Western Samoa) Act 1982 together with the Citizenship Regulations 1978.

Under the Citizenship Act 1977, New Zealand citizenship may be established in the following ways: by birth in New Zealand; by descent (i.e., birth outside New Zealand); or by grant of citizenship.

Citizens under the British Nationality and New Zealand Citizenship Act 1948 (whether by birth, descent, naturalisation, registration or under transitional provisions) at 31 December 1977, retain their status under the 1977 Act. This Act also introduced citizenship by descent through the female line, and citizenship by recognition of adoption and paternity. For people (other than spouses of New Zealand citizens or those under 18 years) who want New Zealand citizenship, the eligibility criteria are that they must:

  1. Have resided in New Zealand for the three years immediately preceding the date of application;

  2. Be entitled in the terms of the Immigration Act 1987 to reside in New Zealand permanently;

  3. Be of full capacity;

  4. Be of good character;

  5. Have sufficient knowledge of the English language and of the responsibilities and privileges attaching to New Zealand citizenship; and

  6. Intend to continue to reside in New Zealand or to enter or continue Crown service under the New Zealand Government, or service in the employment of a person, company, society, or other body of persons resident or established in New Zealand.

Citizenship can be granted also to those who marry New Zealand citizens, and to their children. Sometimes, citizenship can be granted in cases of hardship, statelessness or where the relevant parent was a citizen by descent only.

The Citizenship (Western Samoa) Act 1982 provides primarily for the grant of citizenship to any person who can establish that he or she is a Western Samoan citizen or that he or she comes within the specified degrees of association with Western Samoa; and who either:

  1. Was in New Zealand at any time on 14 September 1982; or

  2. Lawfully entered New Zealand on or after 15 September 1982 and is entitled to reside in New Zealand permanently in terms of the Immigration Act 1987.

Adults who obtain New Zealand citizenship by grant may be asked to swear allegiance to the Queen of New Zealand. Commonwealth citizens (British subjects) whose country' recognises Queen Elizabeth II as head of state are asked to take the oath on the application form. Other persons holding citizenship of a country which does not give this recognition are conditionally approved as New Zealand citizens, and are required to swear allegiance at a private or public ceremony to make the grant effective. Apart from this, the Citizenship Act treats citizens of countries other than Commonwealth on exactly the same basis as citizens of Commonwealth countries.

New Zealand citizens can have their citizenship taken away if they:

  • Choose a foreign nationality by any formal act other than by marriage;

  • Have acted in a manner which is contrary to the interests of New Zealand;

  • Choose to exercise any of the privileges or perform any of the duties of another nationality or citizenship which is contrary' to the interests of New Zealand; or

  • Have obtained citizenship by fraud, false representation, mistake, or wilful concealment of relevant information.

Sometimes people can renounce New Zealand citizenship, e.g., when required to by countries like the United States of America, which won't accept dual citizenship. However, New Zealand citizenship must be renounced formally. This is because the New Zealand government insists that New Zealand citizens should not become stateless during changes of citizenship. To protect citizens, government requires proof of citizenship in another country before giving approval to renounce New Zealand citizenship.

Applications received for the year ended 31 March 1989 totalled 15 108, compared with 16 207 the previous year, and 17 051 people were granted citizenship.

Immigration

New Zealand's experience of immigration and emigration since the mid-1970s has been one of continued large increase in the total numbers of persons arriving in and departing from New Zealand. There has also been, from year to year, great variability in the net balance of migration flows. In some years there have been net losses of as many as 26 000; in others annual gains of up to 15 000 people. Within these figures, permanent and long-term migration—that is, movements of people who have arrived in or left New Zealand with the stated intention of staying at least 12 months—has varied from a net loss of 40 000 in 1979, to a net gain of 6500 in 1984. Provisional figures for the year ended 31 March 1990 showed a net loss of 4040. (See also section 5.3, Components of population change.)

A significant element of these flows is the travel overseas—and return—of New Zealand citizens, who are not subject to permit controls under the Immigration Act 1987.

New Zealand's immigration policies have for a number of years covered four broad categories of permanent migration: occupational migration (on the basis of work skills assessed as being in short supply in New Zealand); a ‘business immigration’ policy, allowing the entry of people with proven business skills and experience and investment capital, which would create employment opportunities and exports; family reunion (enabling people settled in New Zealand to sponsor the entry of family members); and humanitarian programmes (including an annual programme for the settlement of refugees).

The main thrust of policy on occupational grounds has been to encourage the entry of people having (and proposing to use) a level of skills or qualifications and experience not currently available in New Zealand. The main group were approved on the basis of the Occupational Priority List, but employers could sponsor other applicants if the job could not be filled from the local labour market. A firm job offer from a New Zealand employer, appropriate to the applicant's skills and qualifications, was required in all cases (except for applicants under special quota arrangements with the Netherlands and Western Samoa).

Policy in the temporary entry field has been aimed to facilitate the entry of tourist and business visitors, and New Zealand has arrangements for visa-free entry for citizens of over 25 countries. Applications for work permits are considered in the light of the local labour market. Policy allows entry on student visas of people wishing to undertake long-term courses at universities and other tertiary institutions, although some courses of less than three months' duration can be attended without a student permit. Provision is also made for people to enter New Zealand for medical treatment in certain circumstances.

In tandem with the controls over who may be given a permit to be in New Zealand, there are compliance mechanisms to locate and ensure the departure of those who remain in the country unlawfully. People who remain unlawfully in New Zealand are liable to removal under a civil offence procedure. Those convicted of criminal offences are liable to be deported. Deportation has more serious consequences, including lifetime prohibition from further entry to New Zealand and, possibly, to other countries.

The objectives of the New Zealand Immigration Service are to improve the economic and social well-being of New Zealand by assisting both the facilitation and control of flows across New Zealand's borders of immigrants and temporary' visitors requiring permits to be in New Zealand, in a manner consistent with statutory requirements and government policy.

During 1989 emphasis was placed on streamlining procedures and reducing the time taken to deal with applications for permits and visas, and on improving the quality of service provided to clients.

In December 1989 the Minister of Immigration appointed a working group to review immigration policy. It is made up of representatives of interested government departments, joined by an immigration consultant.

New policy measures were announced in March 1990, for implementation later in the year. These included a move to a points-based system for assessing applicants for permanent residence. Further work has still to be done on other areas, including temporary workers.

Notwithstanding the above review, below is a summary of New Zealand's immigration requirements.

Production of travel documents on arrival. All travellers, including New Zealand citizens, who arrive in New Zealand are required to produce a valid passport or some other acceptable recognised travel document. Members of the armed forces of any country (and crew of craft transporting such members) are exempt from this requirement if they are in New Zealand with the consent of the Government of New Zealand, and provided they carry military identification documents.

Permits to be in New Zealand. Except for New Zealand citizens and certain other categories of travellers specified under the Immigration Act 1987, everyone entering New Zealand are required to obtain permits to be in New Zealand. Anyone intending residence or to work or study or undergo medical treatment in New Zealand should seek a visa before setting out on their journey.

Visitors. Visitor permits for people wishing to make tourist or business visits to New Zealand are generally granted for an initial period of three months and may be extended up to 12 months. Visitors from a number of countries do not require visas provided the purpose of entry is for tourism, for business, or to visit family and friends, and the traveller has outward tickets and adequate means of support.

Returning residents. Residence and other permits are deemed to expire when the holders leave New Zealand. Non-New Zealand citizens who have been granted residence and who wish to preserve this status on return from overseas travel should therefore obtain a Returning Resident's Visa. These are normally current for a period of four years (and may be replaced) and entitle the holder to leave and return to New Zealand on any number of occasions while the visa remains valid.

Australian citizens and residents. Australian citizens travelling on Australian passports do not require visas, are exempt from New Zealand permit requirements (but not from other provisions of the Immigration Act), and may indefinitely in New Zealand. Australian residents with current Australian resident return visas do not require visas to come to New Zealand and are granted residence permits on arrival.

Migration on occupational grounds. Applications for residence on occupational grounds are considered in the light of the current demand in the New Zealand labour market for particular skills or qualifications. Skill shortages are identified by national surveys of job vacancies and consultation with central employer, manufacturer and union organisations. The Occupational Priority List identifies those skills for which employers may recruit qualified migrants overseas. Applicants whose skills are not on the list may also be approved provided certain extra conditions are met by the applicant and prospective employer. A firm job offer from a New Zealand employer in a field appropriate to the applicant's skills and qualifications is required in all cases.

In general the main applicant for residence on occupational grounds must be aged under 46 years of age and all family members must meet normal health and character requirements. If married with dependent children applicants are subject to an income test to ensure they can obtain adequate accommodation without government assistance. An interview to assess the settlement prospects and English language capacity of the principal applicant and spouse is normally required.

Business immigration. Applicants under the business immigration policy are assessed on their potential contribution to New Zealand, with account being taken of previous demonstrated business record and skills, investment capital available (in addition to funds required for personal establishment in New Zealand) and intended business activities. Applicants are expected to become genuine residents contributing fully to the New Zealand community. The main applicant and family need to satisfy standard health, character and interview requirements.

South Pacific work permit schemes. New Zealand has special work permit schemes in operation for citizens of Tonga, Western Samoa, Kiribati and Tuvalu under which selected workers may undertake employment in response to specific job offers from New Zealand employers. Appropriate arrangements are required on the part of employers and/or nominating governments to ensure the financial and other welfare and accommodation of participants.

Students. Visas may be issued to overseas students to undertake approved courses of study, provided they make prior application and meet a number of requirements (including producing evidence of payment of course fees, and the availability of the necessary funds for their maintenance and return home when their course is completed). Students from developing nations may be eligible for full scholarship or study awards administered by the Ministry of External Relations and Trade.

Family relationship. Spouses of New Zealand citizens or residents are eligible to be granted residence subject to the immigration authorities being satisfied that the relationship is a bona fide one.

Parents with no dependent children are eligible to be reunited with their adult children who are citizens or residents of New Zealand, if they have no children in their home country; or more children in New Zealand than in any other single country; or where they have an equal number of children in New Zealand and in the home country.

Parents with dependent children are eligible for residence if the number of dependent children is the same as (or less than) the number of adult children resident in New Zealand.

Unmarried dependent children (under 17 years of age) are eligible if they have no children of their own and they were declared in their parent's application for residence in New Zealand. Adult children, brothers and sisters are eligible if they are single, without children and alone in their home country.

Adult children, brothers and sisters (whether or not married or with children) can be formally sponsored for settlement in New Zealand by a brother, sister or parent, who has been a lawful resident of New Zealand for three years. To be eligible, the overseas relative must be under 46 years of age, have a worthwhile skill (and meet skill level and work experience requirements) and either have the offer of a skilled job not able to be filled from the local labour market, or submit evidence of their intention to buy or establish a business (or enter a business partnership) in New Zealand.

All family reunion applicants must meet health and character requirements. In addition, adult children, brothers and sisters sponsored on the basis of a worthwhile skill (and all members of their families over 12 years of age) must have adequate English language skills.

Other categories. Scope exists for the Minister of Immigration to consider residence applications which would not qualify in terms of normal occupational criteria from people who have distinguished themselves in the arts or sciences, or in public or cultural life overseas, or who have been actively involved in promoting or protecting New Zealand's interests overseas.

Netherlands quota. Under a longstanding bilateral agreement up to 1000 occupational migrants from the Netherlands may be accepted annually, subject to standard age, health and character requirements, but with employment and accommodation aspects guaranteed by the Netherlands Emigration Service.

Western Samoan quota. A long standing arrangement (dating from the 1960s) provides that up to 1100 Western Samoan citizens (including dependants) may be accepted for residence each year subject to a guarantee of employment without specific skill requirements and to standard age, health and character requirements.

Refugees. The admission and settlement of refugees who come within the mandate of the United Nations High Commissioner for Refugees operates under an annual intake of up to 800 persons subject to the availability of community sponsorship. Allocation of settlement places within this intake is determined by the Minister of Immigration in consultation with the Minister of Foreign Affairs and other agencies, and selection takes into account the humanitarian circumstances of each case and any previous association or links with New Zealand.

Temporary workers. People who wish to work in New Zealand on a temporary basis (usually up to three years) may be issued visas to travel for that purpose. This facility may be used by people on exchange programmes, people with finite work contracts, people coming from overseas to honour service contracts on equipment, and in similar cases. Visitors who wish to work while in New Zealand, whether for a New Zealand employer or on behalf of an overseas company, must apply for a work permit; otherwise visitors are prohibited from working here. This requirement does not, however, affect Australian citizens or permanent residents who wish to work while in New Zealand, nor does it affect people born in the Cook Islands, Niue or Tokelau who are New Zealand citizens and therefore have unrestricted right to be in New Zealand.

Removal or deportation. The Immigration Act 1987 makes provision for the removal of people who are unlawfully in New Zealand. People who are removed from New Zealand are not eligible to return for a period of five years from the date of their departure from New Zealand. The Act also provides for a right of appeal against removal warrant through two avenues. There is an appeal to the High Court against the issue of the warrant by a District Court (with provision for a further appeal to the Court of Appeal on a question of law), and an appeal to the minister based on humanitarian grounds and on the fact that it would not be contrary to the public interest to allow the appellant to remain in New Zealand. Appeals must be received within 21 days.

The Immigration Act 1987 also provides for the deportation of people threatening national security; suspected terrorists; and criminal offenders. A deportation order remains in force from the date on which it is served until the person named in the order leaves New Zealand, unless it has been quashed or revoked under the provisions of the Act. A deportee is not permitted to return to New Zealand at any time or for any purpose without special permission from the Minister of Immigration. A right of appeal to both the High Court and the Deportation Review Tribunal exists for persons ordered to be deported for criminal offences. All appeals against deportation orders must be lodged within 21 days after the day on, which the order is served on the person named in the order.

Administration and information. Immigration legislation and policy are administered by the New Zealand Immigration Service of the Department of Labour. Officers also operate under delegated authority in New Zealand's diplomatic and consular missions overseas, and at ports of entry to New Zealand.

Further information about immigration policy, and/or application forms and details of fees and charges, may be obtained from the nearest Immigration Service regional or branch office in New Zealand (located in Auckland, Manukau, Hamilton, Palmerston North, Wellington, Christchurch and Dunedin) or from New Zealand diplomatic and consular representatives overseas.

6.4 Maori society

Demography

Statistics on the New Zealand Maori population from the 1986 census are based on the ‘origin or descent’ concept (see Ethnicity in preceding section) and are closely comparable with previous census statistics. This definition was adopted as the best option for analysing Maori population growth and distribution. It was also considered more relevant to the present day requirements of users in that it is referred to in legislation pertaining to New Zealand Maori and used to measure the Maori electoral population. People who described themselves as belonging to one, two or three ethnic categories, one of which is ‘New Zealand Maori’, are defined as belonging to the ‘origin or descent’ category.

Age distribution. Table 6.31 compares the Maori population usually resident in New Zealand at the 1981 and 1986 censuses by age group.

When the intercensal change is analysed on a consistent age group basis, i.e., the age groups 0–4 years, etc., at the 1981 census, are compared with the 5–9 years age groups, etc., at the 1986 census, the contribution made by net external migration and natural increase to New Zealand Maori population growth can be seen.

Table 6.31. NEW ZEALAND MAORI POPULATION BY AGE GROUP*

Age group
(years)
1981 census1986 censusIntercensal
change (percent)
NumberPercentageNumberPercentage
* Persons of Maori origin or descent usually resident in New Zealand.
  0–453,46913.953,76013.30.4
  5–955,17614.351,06012.6−7.4
10–1454,37814.152,93213.1−2.7
15–1730,2347.930,8587.62.0
18–1919,8125.118,5614.6−6.4
20–2439,63310.344,40011.012.0
25–2929,3167.636,1178.923.1
30–3423,5536.127,2586.715.6
35–3917,6734.621,7625.423.1
40–4416,2214.216,3894.01.0
45–4913,0473.414,9073.714.2
50–5410,6172.811,7872.911.0
55–597,7222.09,2252.319.5
60–645,4691.46,3451.616.0
65–693,9811.04,0201.01.1
70–742,4840.62,7030.78.9
75–791,2600.31,5210.421.0
80 and over8910.21,1640.330.6
                Total384 933100.0404 775100.05.1

At the 1986 census, the New Zealand Maori population was significantly younger in age structure than the total population. This youthfulness is demonstrated by the fact that 39.0 percent of Maori were under 15 years of age, compared with 24.4 percent of the total population. In contrast, only 3.9 percent of Maori were 60 years of age and over at that time, the corresponding figure for the total population being 14.7 percent.

These differences reflect both the higher historical fertility (in terms of birth numbers) and mortality levels of the Maori population relative to the total population. The impact of the levels and directions of net external migration on the age structures of the two populations has been much less.

The decline in the New Zealand Maori populations in all age groups (except the 0–4 years age group) at the 1986 census relative to the adjacent younger age group at the 1981 census, indicates a net external emigration of Maori during the intercensal period. At the older age groups, the impact of mortality has also influenced this decrease. Maori birth numbers during this period have remained stable as can be seen from the 1981 and 1986 census populations in the 0–4 age group.

Geographical distribution. Changes in the regional distribution of the Maori population between the 1981 and 1986 censuses are shown in table 6.32. Maori continue to be concentrated in the North Island regions (where 89.1 percent live) and more especially in the northern local government regions—Northland, Auckland, Bay of Plenty and Waikato. However, the proportion of the Maori population in the North Island regions declined slightly, from 89.6 percent at the 1981 census to 89.1 percent at the 1986 census.

The South Island's share of the Maori population accordingly showed a slight increase, from 10.1 percent to 10.4 percent, during the intercensal period. Canterbury, the only local government region in the South Island with a significant level of Maori settlement, received the bulk of this increased share and contained 4.2 percent of the Maori population at the 1986 census.

Redistribution of the New Zealand Maori population during 1981–86 is the result of variations in the relative levels of natural increase (births less deaths) in the local government regions and the impact of both internal and external migration flows. The South Island has received small net gains in its Maori population through net internal migration.

Table 6.32. NEW ZEALAND MAORI POPULATION BY LOCAL GOVERNMENT REGION*

Local government region1981 census1986 censusIntercensal
change
(percent)
NumberPercentageNumberPercentage

* People of Maori origin or descent usually resident in New Zealand.

† Includes population of Great Barrier Island County, Chatham Islands County, extra-county islands, and shipping.

North Island—
     Northland28,6717.430,6757.67.0
     Auckland93,52224.398,76324.45.6
     Thames Valley6,2341.66,2221.5−0.2
     Bay of Plenty43,37711.344,57411.02.8
     Waikato38,68210.040,28110.04.1
     Tongariro11,8683.111,3882.8−4.0
     East Cape20,1155.220,6645.12.7
     Hawkes Bay26,2476.827,3186.74.1
     Taranaki.11,6763.012,2103.04.6
     Wanganui12,1773.212,5463.13.0
     Manawatu10,8632.811,7062.97.8
     Horowhenua5,5111.45,9131.57.3
     Wellington31,4828.233,5708.36.6
     Wairarapa4,6231.24,7131.21.9
               Total, North Island345 04889.636054389.14.5
South Island—
     Nelson Bays2,7360.72,9130.76.5
     Marlborough2,5080.72,6340.65.0
     West Coast1,5810.41,8270.415.6
     Canterbury15,2644.016,8844.210.6
     Aorangi2,9010.82,5950.6−10.5
     Clutha-Central Otago1,7190.42,0970.522.0
     Coastal-North Otago4,1911.14,7491.213.3
     Southland8,1242.18,5832.15.6
               Total, South Island39 02410.142 28210.48.3
     Extra-county islands and shipping5010.15910.118.0
     Not specified/no fixed abode3570.11,3740.3285.0
               Total, New Zealand384 933100.0404 775100.05.2

Male-female ratio. The earliest reliable statistics on the Maori population show a predominance of males. In 1881 there were 81.1 females per 100 males and the gap has progressively closed until in 1976, there were 98.9 females to every 100 males. At the 1986 census, for the first time, females outnumbered males. There were 201 129 males and 202 056 females in the total Maori population, representing a sex ratio of 100.5 females to every 100 males.

Dynamics of population change. Maori have a substantially higher rate of natural increase than non-Maori, due largely to a higher birth rate, which in turn is due mainly to the more youthful age structure. Table 6.33 shows demographic indexes based on those of half or more New Zealand Maori descent.

The Maori fertility rate has undergone a rapid and significant decline in the last 25 years, falling from an estimated 6.18 births per woman in 1962 to 2.16 births per woman in 1986. As a consequence, the gap between Maori and non-Maori average family size, as implied by total fertility rate, has narrowed over the years. In 1962 the difference between the Maori and non-Maori total fertility rates was 2.0 births per woman; by 1985 this had narrowed to 0.5 births per woman. However, unlike their non-Maori counterparts, Maori women are still reproducing at above the ‘replacement level’ and have an earlier childbearing pattern. In 1985, the median age at childbearing was 23.3 years for Maori women and 26.9 years for non-Maori women.

Table 6.33. MAORI DEMOGRAPHIC INDEXES

YearLive birthsDeathsRate of
natural
increase*
;
Reproduction rates
NumberCrude
birth
rate*
Total
fertility
rate
NumberCrude
death
rate*
GrossNet

* Per 1000 of mean population.

† Average number of births a woman would have during her reproductive life if she was exposed to the fertility rates characteristic of various childbearing age-groups.

‡ Excess of births over deaths.

19826,21621.972.27x1,3184.6617.311.091.05
19836,27121.902.23x1,3264.6317.271.071.03
19846,74523.27x2.34x1,2634.3618.911.141.10
19856,46922.072.20x1,2724.3417.731.081.04
19866,51322.012.161,2254.1417.871.041.00
19876,98223.332.291,2054.0319.301.111.07
19886,76722.412.221,2584.1718.241.091.05
19896,96722.892.291,3514.4418.451.111.07

Life expectancy. In 1985, the average life expectancy of Maori males was 67.4 years, compared with 71.3 years for Maori females, while for non-Maori, life expectancies were 71.2 years for males and 77.1 years for females. Therefore, Maori females were expected to outlive Maori males by nearly four years, and non-Maori females were expected to outlive non-Maori males by nearly six years. Over the past 35 years, Maori have recorded much greater gains in life expectancies than have non-Maori, as shown in table 6.34. In spite of these gains, however, the life expectancy for Maori males is still almost four years lower than that for non-Maori males and the life expectancy for Maori females is nearly six years lower than that for non-Maori females.

Table 6.34. COMPARISON: MAORI AND NON-MAORI LIFE EXPECTANCY

YearLife expectancy at birth (years)
MaoriNon-Maori
MaleFemaleMaleFemale
1950–5254.055.968.372.4
1960–6259 061.469 274 5
1970–7261.065.069.175.2
1980–8263.868.570.877.0
198567.471.371.277.1

The Treaty of Waitangi / Te Tiriti o Waitangi

The Treaty of Waitangi has recently been brought to the forefront of debate on race relations in New Zealand (see section 3.1, Constitution).

The treaty has always been recognised within Maori society as an affirmation of rights and highly valued as a taonga, a sacred pact, entered into by the ancestors of today's New Zealanders. It has moved from obscurity through various levels of importance and now occupies an important position in relation to much of the Government's activities.

The landmark 1987 Court of Appeal case, New Zealand Maori Council v the Crown (see section 14.1, Land resources and ownership), saw the special relationship between the Maori people and the Crown as one of an ongoing partnership, requiring the partners to act reasonably and with the utmost good faith towards each other.

Waitangi Tribunal. This tribunal considers claims from any Maori who considers he or she or any group of Maori of which he or she is a member, is prejudiced by any legislation, policy or practice by or on behalf of the Crown which is inconsistent with the principles of the Treaty of Waitangi. The tribunal is made up of a chairperson and six members appointed by the Governor-General. The chairperson is the Chief Judge of the Maori Land Court, and four of the tribunal members must be Maori.

The 1987 Court of Appeal decision focused much attention on the treaty and the functions and powers of the Waitangi Tribunal. In the same year, the tribunal also reported and made recommendations to the Government on the Ngati Paoa and Orakei claims. Both findings recommended the re-establishment of the tribes on their ancestral land.

During 1988, the tribunal considered an extensive claim by Kai Tahu in the South Island and a fisheries claim brought by the Muriwhenua incorporation of the Far North.

Restructuring of Maori affairs administration

In June 1987, the Minister of Maori Affairs announced the introduction of an improved delivery system for government resources based on the tribal authorities (iwi). This initiative, known as tuku rangatiratanga, or devolution, advocates the decentralisation of decision making to local Maori agencies and is a focal point of continuing discussion on the identification of the best methods to deliver government resources to the Maori people.

In April 1988, the Minister of Maori Affairs launched a discussion paper entitled He Tirohanga Rangapu—Partnership Perspectives. This paper suggested a range of options for reforming the existing relationship between central government and the Maori people. The main points involved were: the phasing down of the Department of Maori Affairs and the transfer of its functions to other departments; the establishment of a new ministry of Maori policy; and a commitment from the Government to utilise the new structures to strengthen and empower iwi authorities, to increase Maori participation in the political process and to, ultimately, work to achieve a greater social and economic parity between Maori and pakeha.

Written submissions were called for from interested parties, and an extensive consultation programme followed, taking the Minister of Maori Affairs and senior officials to over 55 hui around the country in seven weeks. This allowed for an important sounding of Maori opinion on issues related to the green paper and reaffirmed the consultation process as one of primary importance in government's dealings with Maori people.

Public submissions were taken into consideration when the Government produced its policy statement Te Urpare Rangapu—Partnership Response in November 1988.

The policy statement proposed measures to restore and strengthen the operational base of iwi; a Ministry of Maori Affairs to provide a Maori perspective in policy-making; the transfer of the Maori Land Court's servicing to the Department of Justice; ways of improving the responsiveness of government agencies; an Iwi Transition Agency (for a five-year period) to help iwi develop their operational base; an independent review of the Maori Trust Office; disbanding of the Board of Maori Affairs; and options for Pacific Island Polynesian communities.

To this end, the Government established the Ministry of Maori Affairs (Te Manatū Māori) on 1 July 1989. The ministry has no operational responsibilities, it monitors and advises government on the responsiveness of government agencies to Maori issues. It also has responsibility for formulating policy of interest to Maori and commenting on all government proposals where it determines a Maori perspective is necessary. The former Department of Maori Affairs is now known as the Te Tira Ahu Iwi (Iwi Transition Agency), with a life span of five years. The immediate responsibility of Te Tira Ahu Iwi is to maintain programmes until iwi are ready and able to assume these responsibilities. However, its main task is to work with iwi to prepare them to accept their new role, which will be the key to greater self-reliance for Maori. The Maori Trust Office remains intact within Te Tira Ahu Iwi. Decisions will be made over the five-year period as to the future of its functions and how these will be managed.

The Maori Land Court is now administered by the Department of Justice. The Maori Land Court registries continue to operate as a division of the Department of Justice from their existing premises. Maori Land Court records continue to be available to the public as they were in the past and Maori Land Court judges continue also to sit at various venues around the country.

The Board of Maori Affairs was disbanded. Programmes that were previously under board control, such as Mana Business Enterprises and Maori Access Schemes are maintained by Te Tira Ahu Iwi, until iwi assume control.

Pacific Island units have also been opened in Tokoroa, Auckland, Wellington and Christchurch. These units have specific responsibility for delivering programmes and services to Pacific Island people. Details of the future management of Pacific Island peoples' needs are being planned with the Ministry' of Pacific Island Affairs.

Maori tribal developments

As described above, a recent trend has seen the increased willingness of government to channel communications and resources through tribal organisations to the ‘flax roots’ of Maoridom. Runanga or trust boards have a key role to play in the implementation of development schemes, the development of a comprehensive Maori fisheries policy, the administration of Maori language boards and cultural wananga, and other activities.

Tribal structures are ideally placed to represent the whole range of Maori opinion, and because they operate in a Maori framework, they can harness the enthusiasm and commitment of groups more effectively. As this strategy is pursued, the Government expects to benefit from improved liaison with the Maori community.

There are also major benefits for Maori people. Tribal identity and pride are enhanced and there is even greater incentive for Maori people to participate in tribal affairs. Traditional institutions and networks have been revitalised and new runanga and trust boards have been established in areas where they did not exist. This strong tribal infrastructure is a key element in the emerging biculturalism in New Zealand, Maori economic development, and the adaptation of traditional strengths to meet contemporary needs, which are features of Maori society today.

Maori community services

A range of community services tailored to meet the specific needs of the Maori people are overseen by the Iwi Transition Agency.

The Maori Community Services Programme, as these services are collectively known, has as its legislative basis the Maori Community Development Act 1962, the Maori Affairs Act 1953 and the Maori Purposes Fund Act 1934–35. The primary functions of community services in terms of the legislation are to advise and assist the Maori people in respect of their general welfare and, in particular, in respect of health, housing, education, vocational training and employment.

However, the very nature of the responsibilities of the various Maori community workers, particularly those employed by the agency, working with and alongside communities and Maori organisations involves them in the broad spectrum of community life and a wide range of peripheral concerns of Maori communities.

A new dimension to this community work has come with the implementation of the Iwi Transition Agency's primary function—to devolve responsibility and empowerment to the tangata whenua (Maori people).

Statutory Maori organisations working alongside and partially resourced by the Department of Maori Affairs are:

  • The New Zealand Maori Council; District Maori Councils; Maori executive committees and Maori communities;

  • Maori wardens; and

  • Honorary community officers.

Additionally, there are a number of ad hoc voluntary organisations initiated at community level and providing services in areas of social concern including health; drug, alcohol and solvent abuse; criminal rehabilitation; family violence; skills training; and employment and education. These organisations include the Maori Women's Welfare League, Maatua Whangai, kohanga reo whanau and Kokiri management committees. The Iwi Transition Agency works closely with these organisations, and financial support is provided by the department in some cases.

New Zealand Maori Council. The activities of the New Zealand Maori Council embrace almost every facet of Maori life including social, economic, and cultural matters and the maintenance of good race relations.

District Maori Councils have the same aims and functions as the national body and are additionally responsible for the nomination and the renomination of Maori wardens for the Ministry of Maori Affairs' approval, and for screening applications for marae subsidies in their regions. Each council is represented on the New Zealand Maori Council.

Maori executive committees represent defined sub-tribal areas within district Maori council boundaries and are responsible for the same functions as the national and district councils. Each executive committee is represented on the District Maori Council.

Maori wardens. These voluntary workers, among other things, provide liaison between police, the courts and the Maori people.

Recently there has been recognition that, with escalating social problems, there is a need for a high degree of expertise and training and courses are being organised to meet this need. There are approximately 1200 wardens nationally.

Community officers. Community officers employed by the Iwi Transition Agency carry out different functions from traditional social workers in that they address the requirements of communities as a whole or community groups, with little involvement in individual casework. Their task has been and continues to be one of support and involvement in community initiatives and to provide a positive link between government and communities.

Maori Women's Welfare League. The league is a national Maori organisation, its members spread throughout all regions. The league has emerged as an important link within Maoridom. Its purpose is to enable its members to play an effective part in the cultural, social, educational and economic development of Maori people, and the people of New Zealand.

The league has always been in the forefront of efforts towards the social advancement of the Maori people. An example was a recent health survey conducted by Maori themselves to determine the Maori woman's perception of her own health and the health of her family. The report provided a base for positive health action programmes to improve Maori health.

Kohanga reo. A kohanga reo is a whanau/family group where a deliberate effort is made to create a Maori cultural environment, in which Maori language values and customs are naturally acquired by pre-school children from their kaumatua (elders). Through the example of the whanau, the children learn aroha (love, compassion), manaakitanga (caring, hospitality), whanaungatanga (family responsibilities) and are taught traditional knowledge, crafts and customs, all through the medium of Maori language. Successful kohanga reo naturally become centres of community interest and activity, and provide a forum for the revival of traditions and the sharing of information and knowledge throughout the Maori community.

The kohanga reo movement has demonstrated how Maori culture could be maintained and developed in modern society and has been the springboard for other community education and development programmes.

Maatua whangai is a scheme whereby young Maori people at risk of offending are directed to the care of members of their whanau, hapu or iwi. In return for the commitment of the Maori community, government provides some assistance with boarding costs and housing loans if necessary. Funds have also been allocated to help reinforce family networks which underpin this programme.

Rapu mahi/Hanga mahi. This is a scheme to increase employment opportunities for young Maori people by matching individuals who are known to be unemployed with organisations which are found to have jobs or training opportunities, and creating employment opportunities in areas of Maori investment or economic growth.

Kokiri centres are primarily basic skills centres set up with financial assistance from Maori Affairs, and run by independent executive management committees. Many operate from a marae base while others, particularly in major urban areas, have set up their headquarters in various buildings suitable for their needs.

Most kokiri centres are recognised or are in the process of gaining recognition as ACCESS/Maori ACCESS training providers. Other community programmes can also operate out of kokiri centres, such as kohanga reo, maatu whangai and health programmes. Some centres have fully-appointed health centres operating as part of the complex.

Marae subsidies. Marae are traditional centres of Maori tribal life, the venue for major social, political and ceremonial activity. The Iwi Transition Agency supplements money raised by marae committees to renovate and maintain marae, and to provide necessary facilities so they can serve their communities effectively.

Employment and training. See section 12.3, Training and employment assistance.

Te reo Maori

Taketake ake nô Aotearoa te reo Mâori, â, he âhua 50 000 ngâ tângata ko te reo Mâori tô râtou ake reo. Ko te reo Mâori o Aotearoa têtahi o ngâ reo o Te Moana-nui-a-Kiwa, â, he reo e whanaunga ana ki ngâ reo o Rarotonga, o Tahiti me Hawai'i.

Nâ te kaha o te reo Pâkehâ i ruarua haere ai te hunga kôrero Mâori mai i te tímatanga o tênei ratau; otirâ, mai i te tîmatanga o tênei ngahurutanga, kua oho ake te aroha o te iwi Mâori ki tôna reo. E hia nei ngâ mokopuna kei te kôhanga reo e ako ana i te reo Mâori! E hia nei ngâ reo irirngi, inâ koa Te Upoko O Te Ika, e pâho nei ki te reo Mâori!

Ko te ture i kîia ai ko te reo Mâori he reo mana nô Aotearoa, i whakatûria ai hoki Te Taura Whiri I Te Reo Mâori i te tau 1987, i whakatakotoria hei urupare ki te pûrongo e tata tonu ana te puta i Te Rôpû Whakamana I Te Tiriti O Waitangi—e pâ ana taua pûrongo ki te reo Mâori me tôna tûranga i ngâ whare whakawâ, i ngâ kura, i ngâ mahi pâho me ngâ tari kâwanatanga.

Ahakoa kâore i rite i Te Ture Reo Mâori 1987 te katoa o ngâ whakahau a Te Rôpû Whakamana I Te Tiriti O Waitangi, i kîia te reo Mâori he reo mana, â, ka âhei hoki te tangata ki te kôrero Mâori i ngâ whare whakawâ o te motu.

Ko te tino mahi a Te Taura Whiri I Te Reo Mâori he whakatairanga i tênei reo kia ora tonu ai, kia tutuki ai hoki ngâ whakaaro me ngâ wawata o te iwi Mâori ki taua reo. Hei hanga i têtahi Aotearoa e âhei ana ngâ tângata katoa ki te kôrero i tô râtou ake reo, ahakoa ko te reo Mâori, ko te reo Pâkehâ rânei, e aro nui atu ana Te Taura Whiri I Te Reo Mâori ki ngâ rôpû e toru e whai ake nei: ki te iwi Mâori, ki te hunga o ngâ tari kâwanatanga me te iwi whânui.

Kei te iwi Mâori tonu te uara whakaora ake i tôna reo, inâ hoki kei reira te tino mâtauranga ki te reo. Ko te hunga maîatau ki te reo e whakahauria ana e Te Taura Whiri 1 Te Reo Mâori kia tukua iho e râtou tênei taonga ki te mâtâtahi e tupu haere nei, ki te mâtâpuputu hoki kâore i te môhio ki te reo o ôna mâtua tîpuna. 1 tua atu i te wero atu ki te iwi Mâori kia matapakitia, kia whakatutukia he kaupapa mô te reo, ko têtahi o ngâ mahi a Te Taura Whiri I Te Reo Mâori he tito, he kohi kupu hou mai hei whakamahi mâ te hunga kôrero Mâori (hei tauira, ‘waea whakaahua’ facsimile device, fax).

E akiakitia ana ngâ tari kâwanatanga kia aro mai ki ngâ awhero o te iwi Mâori e pâ ana ki te reo. Ko têtahi atu o ngâ mahi a Te Taura Whiri I Te Reo Mâori he âwhina i aua tari ki te whakarite ratonga reo Mâori. Kei te nui ngâ pânui tûranga watea kua puta kê i ngâ nûpepa o te motu, i êtahi atu wâhi hoki, ki ngâ reo e rua, â, kei te nui ngâ pukapuka kôrero whânui kua tângia kêtia ki te reo Pâkehâ me te reo Mâori, â, i êtahi wâ hoki, ki ngâ reo o Te Moana-nui-a-Kiwa.

E whakaohongia ana te iwi whânui ki ngâ wawata o te iwi Mâori e pâ ana ki te reo, tae atu hoki ki ngâ kura kaupapa Mâori me te pâho reo Mâori. Ahakoa ka riro mâ te iwi Mâori anô ênei kaupapa e whakahaere, e tika ana kia tautokona e te iwi whânui kia pûmau ai te mana o te reo môake tonu atu.

New Zealand Maori, a Polynesian language closely related to Cook Islands Maori, Tahitian and Hawaiian, is the indigenous language of New Zealand, and the first language of some 50 000 Maori New Zealanders.

The number of native speakers of Maori has been declining throughout this century in the face of strong competition from English, but over the last decade there has been a renewal of interest in the language on the part of the Maori-language pre-school movement, Te Kohanga Reo, and the establishment of Maori-language radio stations.

The legislation that led to the declaration of Maori as an official language of New Zealand and the establishment in 1987 of Te Taura Whiri i te Reo Mâori (the Maori Language Commission) was drafted in response to the imminent publication of the Waitangi Tribunal's finding on a claim relating to the use of the Maori language in courts of law, the education system, broadcasting and the public service. Although the Maori Language Act 1987 fell short of the tribunal's final recommendations, the language was declared ‘official’ and the right to speak Maori in courts of law and before a number of tribunals was established.

The main aim of the Maori Language Commission is to promote Maori as a living language, able to fulfil the wide range of communication needs of its speakers. In working towards a society where all New Zealanders feel able to communicate in the official language of their choice, either English or Maori, Te Taura Whiri i te Reo Mâori is initially addressing three main groups: the Maori people, the state sector and the general population.

Maori people themselves possess the essential element in the revitalisation of the Maori language: knowledge of the language. Those who currently speak Maori are urged to pass their knowledge on to younger generations and to others who were not brought up speaking the language. As well as offering a forum where language policy can be discussed, developed and promoted, Te Taura Whiri i te Reo Mâori offers a technical service by undertaking language research, including the creation and collection of new terms in the Maori language such as waea whakaahua ‘facsimile device; fax’.

The state sector is encouraged to respond to the language needs of its Maori-speaking clientele. Te Tura Whiri i te Reo Mâori assists government departments and other Crown agencies in offering a range of services in Maori. Already, large numbers of advertisements for positions in the public service appear in daily newspapers and elsewhere in a bilingual format, and much public information is now published in English and Maori, and often also in other Polynesian languages.

The general population is gradually being made aware of the language concerns of the Maori people, including the need for Maori-medium schooling and broadcasting. While it is the Maori people who are the key players in issues concerning the revitalisation of the language, the goodwill and support of the general population is required if the Maori language is to achieve status as a fully official language.

6.5 Pacific Island Polynesian population

Demography

The 1986 census provides the most accurate and complete data on New Zealand's Pacific Island Polynesian population. The following tables use a ‘sole origin’ series, which is derived on a group affiliation concept based on cultural and ancestral criteria, and allows comparison between the 1981 and 1986 census data. This population includes the categories of Samoan, Cook Island Maori, Niuean, Tokelauan, and other Pacific Island Polynesian e.g., Hawaiian, Tahitian. Persons who specified themselves as belonging to one, two or three island categories within the Pacific Island Polynesian group are defined as ‘solely Pacific Island Polynesian’.

Age distribution. Table 6.35 compares the Pacific Island Polynesian populations at the 1981 and 1986 censuses on an age group basis.

When intercensal population growth is analysed on a consistent age group basis, i.e., the age group 0–4 years at the 1981 census is compared with the 5–9 years group at the 1986 census, etc., a major contribution made by net immigration to the increase in the Pacific Island Polynesian population during the period is evident.

In addition, the high growth of 21 441 (28.2 percent) in the resident Pacific Island Polynesian population during the 1981–86 intercensal period was partly a result of significant natural increase (births less deaths) for this ethnic group.

Table 6.35. PACIFIC ISLAND POLYNESIAN POPULATION BY AGE GROUP*

Age group (years)1981 census1986 censusIntercensal
change
(percent)
NumberPercentageNumberPercentage

* Persons of solely Pacific Island Polynesian origin usually resident in New Zealand.

† Includes combinations of two and three Pacific Island Polynesian ethnic groups specified in the ‘one ethnic origin’ category.

  0–  410,68614.111,11811.44.0
  5–  99,93013.111,18411.512.6
10–148,65811.410,59010.922.3
15–174,4375.86,1656.338.9
18–192,8443.74,0774.243.4
20–247,2999.69,99610.337.0
25–298,23510.89,79210.118.9
30–347,2639.69,2529.527.4
35–395,0166.67,6837.953.2
40–443,9755.25,2625.432.4
45–492,5773.44,1224.260.0
50–541,8542.42,7542.848.5
55–591,2091.62,1062.274.2
60–648521.11,4161.566.2
65–695490.78790.960.1
70–743150.45070.561.0
75–791560.22670.371.2
80 and over930.12040.2119.4
                Total75 966100.097 407100.028.2

At the 1986 Census of Population and Dwellings, the Pacific Island Polynesian population was considerably younger in age structure than the total usually resident New Zealand population. This is shown by the fact that 33.8 percent of Pacific Island Polynesians were under 15 years of age, compared with 24.4. percent of the total population. In contrast, only 3.4 percent of Pacific Island Polynesians were 60 years of age and over at that time, the corresponding figure for the total population being 14.7 percent.

The Pacific Island Polynesian population has a different age structure from that of the New Zealand Maori population. This is mainly the result of consistently high external net migration levels, especially for the younger working-age groups (15–24 years) during the past 20 years. It has created a Pacific Island Polynesian population which is more concentrated in the middle working-age range (25–44 years) than is the case for Maori. Pacific Island Polynesian births in New Zealand have only shown a significant increase in the past decade, the result of the growth in the population of reproductive age.

Distribution of population. The distribution of the Pacific Island Polynesian population by local government region is shown in table 6.36. All local government regions except Marlborough and Aorangi experienced growth in their Pacific Island Polynesian populations between the 1981 and 1986 censuses. In terms of numbers, the Auckland local government regions experienced the greatest increase (15 819), or 73.8 percent of the national increase of 21 441 during the intercensal period.

Table 6.36. PACIFIC ISLAND POLYNESIAN POPULATION BY LOCAL GOVERNMENT REGION*

Local government region1981 census1986 censusIntercensal
change
(percent)
NumberPercentageNumberPercentage

* Persons of solely Pacific Island Polynesian origin usually resident in New Zealand.

† Includes Great Barrier Island County, Chatham Islands County, extra-county islands and shipping.

North Island—
     Northland3090.44110.433.0
     Auckland50,61366.666,43268.231.2
     Thames Valley810.11020.125.9
     Bay of Plenty1,0231.31,2541.322.6
     Waikato2,9013.83,3783.516.4
     Tongariro2910.43360.315.5
     East Cape1620.21950.220.4
     Hawkes Bay1,2091.61,4971.523.8
     Taranaki1680.21890.212.5
     Wanganui3150.43960.425.7
     Manawatu5250.77620.845.1
     Horowhenua1800.23330.385.0
     Wellington13,69218.016,32616.819.2
     Wairarapa2340.32550.39.0
                Total, North Island71 70394.491 86694.328.1
South Island—
     Nelson Bays1020.11380.135.3
     Marlborough570.142−26.3
     West Coast36398.3
     Canterbury2,1932.93,0273.138.0
     Aorangi990.1960.1−3.0
     Clutha-Central Otago570.1930.163.2
     Coastal-North Otago8821.21,1281.227.9
     Southland8161.19421.015.4
                Total, South Island4 2425.65 5055.729.8
Extra-county islands and shipping1536140.0
                Total, New Zealand75 966100.097 407100.028.2

Ministry of Pacific Island Affairs

A Ministry of Pacific Island Affairs has existed since 1985. It has the aim of encouraging Pacific Island people to contribute fully to New Zealand's social, cultural and economic life, while recognising and reflecting the cultural values and aspirations of people of the Pacific.

More specifically, it works to close gaps in the areas of education, employment, health and housing that exist between New Zealanders of Pacific Island Polynesian origin and other ethnic groups. The ministry also works to foster the transmission of cultural values important to the identity of the various Pacific Island Polynesian peoples and of New Zealand as a whole.

It works through the administrative mechanisms described below, each of which is, in turn, linked to the community.

Minister of Pacific Island Affairs' Advisory Council. This 12-member council is made up of representatives of each of the six main Pacific Island Polynesian communities in New Zealand. Its functions include advising and making recommendations to the minister, and promoting the dissemination of information to and from Pacific island people in New Zealand. The council meets regularly to consider a wide range of matters, including immigration legislation and policy, employment and training, and education issues.

Pacific Island Affairs Unit. This small group also advises the Minister of Pacific Island Affairs, while providing administrative back-up and co-ordination of the above council and other programmes. The unit establishes and maintains liaison with and between Pacific Island Polynesian communities in New Zealand and government agencies; monitors, reports on and promotes issues related to the communities; and is developing a resource base (including a directory and appointments file and events diary) on Pacific island matters.

A separate department of state was not established for the Pacific island affairs portfolio. Autonomy for the unit is provided in that it is directly responsible for tendering policy advice to the minister. Administrative support is provided by the Department of Internal Affairs.

Contributors

  • 6.1 Department of Statistics.

  • 6.2 Department of Statistics; Marriage Guidance New Zealand; Department of Justice.

  • 6.3 Human Rights Commission; Office of the Race Relations Conciliator; Ministry of Women's Affairs; Department of Statistics; Department of Internal Affairs; Department of Labour.

  • 6.4 Department of Statistics; Ministry of Maori Affairs; Iwi Transition Agency; Maori Language Commission.

  • 6.5 Department of Statistics; Department of Internal Affairs;

Historical

Department of Statistics; Department of Internal Affairs.

Further information

Households

Household Expenditure and Income Survey Report. Department of Statistics (annual).

Profiles of New Zealanders: Families and Households, Census of Population and Dwellings, Series E, Report 3. Department of Statistics.

Marriage

Demographic Trends. Department of Statistics (annual).

Justice Statistics: Part A. Department of Statistics (annual).

Report of the Department of Justice (Parl. paper E.5).

Human rights, immigration and citizenship

Demographic Trends. Department of Statistics (annual).

The Human Face of New Zealand: A Context for Population Policy into the Twenty-first Century. Report of the Inter-departmental Committee on Population Policy Guidelines, 1990.

International Migration and the New Zealand Economy—A Long Run Perspective. Institute of Policy Studies, 1988.

Report of the Department of Internal Affairs (Parl. paper G.7).

Report of the Department of Labour (Parl. paper G.1).

Review of Immigration Policy, 1986 (Parl. paper G.42).

Report of the Human Rights Commission and the Race Relations Conciliator (Parl. paper E.6).

Maori population

Demographic Trends. Department of Statistics (annual).

New Zealand Population Projections 1983–2016. Department of Statistics, 1986.

Report of the Ministry of Maori Affairs (Parl. paper E.35)

Pacific Island Polynesian population

Report of the Department of Internal Affairs (Parl. paper G.7).

Chapter 7. Social welfare

In nineteenth century New Zealand a variety of public and private institutions distributed welfare to the deserving poor. However, systematic state funding or provision of income maintenance, health services, social work and social services have been a twentieth century development. Means-tested old-age pensions (1898), widows pensions (1911) and family allowances (1926) were first steps in providing income support to individuals and families. Widespread poverty during the Depression of the early 1930s demonstrated the inadequacy of existing provisions. Under the Unemployment Act 1930 a fund was established to provide limited assistance to unemployed workers. In 1938 the first Labour government introduced a comprehensive Social Security Act to provide income support and primary health care for everyone in need.

The growth of state-provided social work services, and the extension of stale funding for voluntary social services have been post-war developments. Two important pieces of legislation underpinning these services are the Disabled Persons Community Welfare Act 1975 and the Children, Young Persons and Their Families Act 1989 which replaced the 1974 Children and Young Persons Act.

Important developments in income support and superannuation provisions during the post-war period have been the introduction of the universal family benefit (1946), domestic purposes benefit (1973), disability allowance (1974) and national superannuation (1977).

Recent developments include additional financial assistance for modest-income families. Also, National Superannuation has been restructured as Guaranteed Retirement Income.

Significant changes to the structure of benefits are also planned, to take effect in 1991. This will include provisions to extend earnings-related payments to people incapacitated by sickness. At present, earnings-related payments are available only to accident victims under the Accident Compensation Act 1982 (see section 8.5, Accidents).

Department of Social Welfare

The Department of Social Welfare was formed in 1972 when the Social Security Department and the Child Welfare Division of the Department of Education amalgamated.

Its functions are:

  • To administer effectively social security benefits, war pensions and related programmes;

  • To ensure the provision of effective social work and other social services for communities, families and individuals; and

  • To provide advice to the Government on the development and impact of social policy.

Table 7.1. SOCIAL WELFARE EXPENDITURE

ProgrammeYear ended 31 March
1986198719881989

* Guaranteed Retirement Income from 1 April 1990.

Source: Department of Social Welfare.

 $(m)
Administration109.1170.8264.6311.7
Benefits1 707.32 092.02 618.23 265.9
Social work services120.8169.0206.9233.8
War pensions85.092.3114.5108.7
National superannuation*3 341.23 650.13 986.64 314.3
            Total gross expenditure5 363.46 174.27 190.88 234.4
Receipts37.553.648.457.1
            Total net expenditure5325.96 120.67 142.48 177.3

In the past few years, government support for programmes run by voluntary welfare organisations has substantially increased and the community has become more involved in the responsibility for social welfare. This move was reinforced by the acceptance of a ministerial committee report on a Maori perspective for the department, Puao-le-Ata-tu (Daybreak) in 1986, which argued for more community involvement in the department's functioning. The Department of Social Welfare now delegates more of its responsibilities to regional and local district level. Community input is provided by the Social Welfare Commission at a national level, and by district executive committees at a local level.

7.1 Income support

Unlike most overseas social security schemes, the New Zealand scheme is non-contributory. Benefits are financed from general taxation, and wage and salary earners are not required to pay regular contributions to a social security fund. An advantage of this is that people who are unable to pay contributions are covered to the same extent as wage and salary earners. The social security system provides for a range of assistance:

  • Cash benefits are paid as of right to those who meet income, residence and other eligibility criteria for each category. The residence test varies from 10 years, for guaranteed retirement income and invalids benefit, to 12 months for sickness and unemployment benefits. Benefits are payable at fiat standard rates, including allowances for dependants. Emergency benefits are available for those who need income support but are not eligible for standard benefits.

  • Other assistance is available to help with specific expenses such as accommodation or those related to a disability.

  • The weekly rates payable for cash benefits are listed in table 7.2 and a brief description of each of the main cash benefits is set out in the text following. The full requirements for eligibility are beyond the scope of this publication, but more information is available from offices of the Department of Social Welfare.

Table 7.2. CASH BENEFITS: WEEKLY RATES*

BenefitWeekly rate
from April 1990

* Rates shown are net and do not include family benefit, ($6.00 per child).

† Guaranteed Retirement Income replaced national superannuation from 1 April 1990. It is not subject to an income test but is taxable.

Source: Department of Social Welfare.

Without dependent children—
Invalid's and sickness—$    
          18 and over162.26
          Under 18131.30
     Couple— 
          Husband or wife separately135.22
          Spouse included270.44
Widows and domestic purposes—
     ‘Woman alone’162.26
     Caring for sick or infirm— 
          Single and 18 or over162.26
          Single and under 18131.30
          Married (each partner)135.22
Unemployment and training—
     Single person—
          20 or over143.57
          16–1786.14
          18–19114.86
     Spouse included223.22
Any of the above benefits with dependent children (incl. Family Support)
     Solo parent and one child249.14
     Solo parent with two children280.87
          Each subsequent child16.00
          Couple with one child291.08
          Each subsequent child16.00
Orphans78.22
Family—
     Each dependent child6.00
Accommodation benefit—Available to beneficiaries with limited incomes and assets to assist them with accommodation costs
Emergency and special benefits—According to circumstances
Guaranteed Retirement income and veterans pension
     Married person144.05
     Single person172.86
     Spouse included288.10

Income-tested benefits

Invalids, sickness, widows, domestic purposes, unemployment, and training benefits are income-tested and are adjusted annually on 1 April each year in line with movement in the Consumers Price Index, but within a wage band. The after-tax benefit rate for couples cannot be more than 72.5 percent or less than 65 percent of average after-tax wages.

Basic income exemptions. The basic income exemption is $50 a week ($60 for beneficiaries with children). Benefits are reduced by 30 cents for every $1 a week over this amount up to $80, then 70 cents for every $1 a week of income. For invalids, widows and domestic purposes beneficiaries, exemptions are calculated on the basis of annual rather than weekly income.

Invalids benefit. This benefit is payable to people aged 15 years or over who are either totally blind or are permanently and severely restricted in their capacity for work as the result of an accident, illness, or congenital disability. The number of invalids benefits in force at 31 March 1989 was 26 253.

Sickness benefit. A sickness benefit is payable to persons over the age of 15 who are incapacitated for work through sickness or accident, and as a result suffer a loss of earnings. The number of sickness benefits in force at 31 March 1989 was 16 021. The average duration of sickness benefits for the year ended 31 March 1989 was 39.1 weeks (41.5 weeks for men and 37.4 weeks for women).

Widows benefit. This benefit is payable to a woman whose husband (including de facto) has died. The number of widows benefits in force at 31 March 1989 was 13 026.

Domestic purposes benefit. This benefit is payable to a parent caring for children without the support of a partner, to a person caring at home for someone who would otherwise be hospitalised, and in some circumstances to an older woman alone. The number of domestic purposes benefits in force at 31 March 1989 was 85 615.

Unemployment benefit. This is payable to people who are unemployed, are capable and willing to undertake full-time work, and have taken reasonable steps to obtain suitable employment. The average duration of unemployment benefits (not including emergency unemployment benefits) which ceased during the year ended 31 March 1989 was 25.4 weeks (25.6 weeks for men and 25.2 weeks for women). The average number of unemployment benefits in force during the year was 103 032, with a further 9505 receiving emergency unemployment benefits.

Training benefit. The training benefit was introduced in 1989. It is payable to people who are not full-time students, but are engaged in full-time employment-related training programmes.

Miners benefits. A miner's benefit is payable to any person who, while working as a miner in New Zealand, contracted an occupational disease and is as a result permanently and seriously incapacitated for work, provided that compensation for the same disability is not being received. There were only seven miners benefits being paid at 31 March 1989.

Emergency benefits. An emergency benefit may be granted on grounds of hardship to any person who because of age, physical or mental disability, or any other reason is unable to earn a sufficient livelihood and is ineligible for any other monetary benefit other than family benefit.

Family assistance

Family benefit. This is a universal benefit paid at the rate of $6 per week to the carer of every dependent child in recognition of the contribution of families to the care of children. Its value has been $6 a week since 1979, and the direction of policy in recent years has been towards supplementing family benefit with additional assistance to low- and middle- income families.

Until October 1986 family benefit could be capitalised by families and the proceeds contributed towards the cost of purchasing a first home. This scheme was replaced by Housing Corporation assistance through the ‘Homestart’ scheme (see section 19.2, House purchase and mortgage finance).

Family support. The maximum amount payable is $36 a week for the first child and $16 a week for each subsequent child. Family support is provided to people with dependent children who meet income eligibility requirements. It is paid to income-earners through taxation (see section 25.2, Taxation), but is delivered to beneficiaries and non-earners through the social welfare system.

Orphans benefit. This benefit is payable to a person caring for an orphan or an unsupported child.

Guaranteed Retirement Income

From 1 April 1990 national superannuation was replaced by Guaranteed Retirement Income, which is available to people aged 60 years or over. The differences between national superannuation and Guaranteed Retirement Income are not great in the short-term. However, the Government has announced that between the years 2006 and 2026 the age of entitlement will gradually rise from 60 to 65 years. This will reduce the cost of the scheme during a period when the number of people reaching retirement age will increase rapidly.

Like national superannuation, Guaranteed Retirement Income is not subject to an income test, but is subject to a tax surcharge on ‘other income’ above certain limits. Standard rates are at present somewhat above those for income-tested benefits. The most significant short-term change, begun in 1989, is that rates will be adjusted annually in line with the lesser of the annual movement in the Consumers Price Index or average after-tax wages, until they are aligned with other benefit rates. Until 1989 the after-tax rate of national superannuation for a couple equalled 80 percent of average after-tax wages. This change will also help make the scheme more affordable in the long-term.

People who wish to supplement their Guaranteed Retirement Income when they retire can contribute to private superannuation or insurance schemes. The first half of income from all such schemes will be exempt from the surcharge. Private superannuation and insurance is described in more detail in section 21.3, Superannuation and insurance.

Table 7.3. CASH BENEFITS IN FORCE

Type of benefitAt 31 March
19851956198719881989

* Changed to Guaranteed Retirement Income from 1 April 1990.

† Since 1986 orphans benefits have been used to support children in their extended families as an alternative to departmental care.

Source: Department of Social Welfare.

 number
National superannuation*459,813465,079473,401479,985485,962
Widows13,55713,30413,01912,86213,026
Domestic purposes56,54862,57069,14674,86285,615
Orphans3653644961,5372,993
Family455,961455,330450,072436,066437,287
Family Care164,77611 5971115,971
Invalids21,46421,99323,08724,37926,260
Miners11101097
Unemployment38,41942,40563,92286,782123,565
Sickness9,6279,51711,11613,13216,021
            Total1 220 5411 186 5431 220 2401 129 6141 190 736

Table 7.4. PAYMENTS UNDER THE SOCIAL SECURITY ACT 1964*

Item1984–851985–861986–871987–881988–89

* Excludes payments for health benefits.

† These figures were obtained by multiplying by 52 the amount paid in the week to 31 March.

Source: Department of Social Welfare.

 $(000)
Cash benefits—
     National superannuation2 743 5123 341 2113 650 1653 986 5444 314 259
     Widows78,49589,33894,732104,170106,062
     Domestic purposes460,385603,878709,568808,787962,871
     Orphans1,0041,2811,7006,17414,074
     Family284,167281,957273,248290,556258,445
     Family Care60,460165,38768,969
     Invalids105,724133,287159,823196,051226,304
     Miners7276746972.
     Unemployment274,689290,462459,685672,694987,275
     Sickness72,55091,762124,292159,850192,745
     Payment after death3,4953,4934,9885,0445,255
Advances for repairs to homes1,0291,3391,6011,8092,361
Disability allowance7,81411,78822,75130,39143,893
Handicapped child's allowance4,9056,3717,8199,3159,127
Accommodation benefit41,58357,949100,79896,618100,800
Special benefit2,0364,4956,40312,69429,190
Telephone rental concession4,6044,8226,2537,2055,393
            Total cash benefits4 146 5245 088 8965 692 8696 3879717 258 126

Other assistance

Accommodation benefit. Accommodation benefit is for people whose income and cash assets are limited and who have high accommodation costs. The maximum rates of assistance at April 1989 were $40 per week for a single person, and $65 per week for a married couple. A supplement of up to $20 per week may be paid for elderly people and people with disabilities who are in residential care.

Disability allowance. This is an income-tested allowance of up to $35 a week and is payable to people with special costs arising from disability.

Handicapped child allowance. A non-taxable allowance of $26 a week is payable to the parents of seriously physically or mentally handicapped children being cared for at home.

Special benefit. This is for people with special or unusual costs, whose income and assets are insufficient to meet those costs, in addition to normal living expenses.

Special needs grant. This is a one-off payment made in an emergency situation where the need cannot be met in any other way, and where there are insufficient financial resources to pay for the item.

Advance payments of benefit. Advance payments are available to some categories of long-term beneficiary to pay for essential needs which they would otherwise be unable to afford.

Essential services. An advance may be made to beneficiaries or pensioners owning their own homes for essential repairs and maintenance, or to install essential services or appliances.

Telephone service rental allowance. A telephone allowance is available to income-tested beneficiaries other than unemployment beneficiaries, where the duration of benefit is likely to be more than 26 weeks.

Training incentive allowance. This allowance is available to widows, invalids and domestic purposes beneficiaries to help meet costs associated with attending recognised occupational or work-related courses which provide specific work skills.

Transition-to-work allowance. This allowance is available to those who have been receiving an income-tested benefit for 12 months or more and find a full-time job.

Payment while in hospital. Applicants with no dependent children receive a benefit at the current rate for the first 13 weeks of hospitalisation. Thereafter they receive a reduced rate. The benefit rate is not reduced for applicants with dependent children.

Continuation of benefit after death of beneficiary. Benefits are paid for a period of four weeks following the death of beneficiaries, to dependants who are not entitled to lump sum payments under the Accident Compensation Act 1982.

Lump sum payments after death. Dependants of any person who dies are eligible to receive a single payment, if their share of the net value of the estate is less than $10000, and they meet an income test. If the deceased person was a superannuitant or beneficiary, any amount paid as continuation of benefit after death will be deducted from the lump sum.

Where a person dies without dependants, a contribution may be made to funeral expenses which are not able to be paid from the deceased person's estate. A grant may also be made, subject to a means test, to the parents or guardians of a dependant child who dies.

Support of children by non-custodial parents

When a couple separates there are two means by which the non-custodial parent may be required to make payments towards the care of children.

Maintenance. The Family Court, established under the Family Courts Act 1980, can make, register, confirm, vary' or cancel maintenance orders and agreements. The Department of Social Welfare is responsible for the collection and enforcement of maintenance payable under maintenance orders and registered agreements in terms of the Family Proceedings Act 1980. Following the introduction of the Liable Parent Contribution Scheme the number of such orders and agreements has declined from 47 000 in March 1981 to 24 308 in March 1989. The amount due for enforceable orders and agreements during the year ended 31 March 1989 was $22.7 million, and receipts for the year totalled $10.7 million, a collection rate of 47.6 percent. Of this amount $321 000 was set aside as public money (i.e., lodged to the Consolidated Account) to provide maintenance for those with a domestic purposes benefit granted before 1981. Payment of maintenance has the effect of partially or completely replacing a domestic purposes benefit.

Liable Parent Contribution Scheme. This scheme, introduced in 1981, is a system for assessing and obtaining contributions from the non-custodial parent towards the cost of paying a domestic purposes benefit to the person caring for the children. The formula for assessing the contribution is contained in the schedules to the Social Security Act.

The pattern of reimbursement for the cost of domestic purposes benefits through maintenance orders and liable parent contributions is set out in table 7.5.

Table 7.5. REIMBURSEMENT FOR DOMESTIC PURPOSES BENEFIT

Year ended 31 MarchDPB
expenditure
Maintenance
and liable
parent receipts
Rate of
recovery
Net
expenditure
 $(million)$(million)percent$(million)
1985460.430.96.7429.5
1986603.933.55.5570.4
1987709.637.35.3672.3
1988808.841.95.2766.9
1989962.949.75.2913.2
Source: Department of Social Welfare.

War pensions and rehabilitation

The war pensions programme provides pension and rehabilitation assistance for those who saw service in the two world wars, Korea or South-east Asia. It also includes obligations under the charter of the United Nations, and service within the Regular Force before 1 April 1974. Assistance for service people injured after that date is provided under the Accident Compensation Act 1982.

The administration of the War Pensions Act 1954 is the responsibility of the Secretary of War Pensions, who acts under the general direction and control of the Minister of War Pensions and Rehabilitation. On 1 April 1989 centralised decision-making by the War Pensions Board was changed to provide for:

  • A War Pensions Advisory Board to advise the Minister on war pensions policy and related matters; and

  • Local war pensions claims panels to deal with local pensions decisions previously the responsibility of the War Pensions Board.

The war pensions programme comprises:

Veterans pension. This is paid at the same rate as Guaranteed Retirement Income. It replaces the former war service pension, war veterans allowance, and economic pension.

War disablement pension. This pension provides compensation for disablement. The basic rate for 100 percent disablement was $128.28 at 1 April 1990.

Other provisions. The war pensions programme also provides for allowances and concessions to supplement pensions, in cases of special need. These include an additional pension for severe disablement, clothing allowance, travelling allowance, attendance allowance, and allowances for dependants. In addition, rehabilitation and resettlement assistance is available to help ex-service people to return to civilian life.

Since nearly 90 percent of war disablement and dependants' pensions are paid in respect of service in either World War 1 or World War II, war pensions are increasingly related to the elderly section of the population.

Table 7.6. WAR PENSIONS AT 31 MARCH 1989

Type of pensionNumber
in force
Dependant wives
included
Annual value*
$(000)
* The annual values have been calculated from the amount being paid in the week to 31 March, multiplied by 52.
War disablement21,09546,178
Dependants of disabled36242
Widows4,21819,405
Other dependants of deceased22
Economic1,019378,382
War service1,48484316,989
War veteran's allowance4391875,112
Police3382
            Total28 3461 06796 390

Census statistics on benefit payments

Information on social welfare payments received by the population aged 15 years and over usually resident in New Zealand was obtained at the 1986 Census of Population and Dwellings. Respondents were required to specify the nature of payments, benefits and pensions received during the year ended 4 March 1986.

A total of 1 096 932 New Zealand residents, 44.4 percent of the population in the specified age group, indicated that they were in receipt of at least one social welfare payment during the year prior to the 1986 census. This figure comprised 327 675 males (or 27.1 percent of the male population) and 769 257 females (61.2 percent of the female population). These statistics reflect the larger numbers and wider range of social welfare benefits, pensions and other payments which are normally made to women, e.g., family benefit and family care, widows benefit and national superannuation. They are products of the age-sex structures of the population and the eligibility of persons to receive payments in terms of age, number of children and household income, marital status and living arrangements, and employment status.

By far the largest social welfare categories, based on numbers of payments made, are national superannuation (34.4 percent of total payments) and family benefit (34.2 percent of total payments).

Details were published in the last edition of the Yearbook.

Reciprocity agreements

Australia. There is reciprocity between New Zealand and the Commonwealth of Australia in relation to a wide range of benefits. For the purpose of any application for a benefit, residence in one country is regarded as residence or birth in the other. As well as being qualified on residential grounds, applicants must meet entitlement criteria for a benefit or pension, such as eligibility conditions concerning age, or medical incapacity. For example, in order to receive an Australian age pension a former New Zealand superannuitant must be at least 65, if a male; 60 if a female. The 1989 revision of the reciprocal agreement with Australia has seen the New Zealand Government take the first steps towards benefit portability by agreeing to meet the cost of Australian age, widows and invalids pensions paid to former superannuitants, widows and invalids beneficiaries who left New Zealand after 1 April 1989.

Reciprocal benefits in force for Australians in New Zealand at 31 March 1989 comprised 625 national superannuation payments, 15 widows benefits, and 70 invalids benefits, making a total of 710, compared with 740 in 1988.

United Kingdom. The Social Security (Reciprocity with United Kingdom) Act 1983 provides for reciprocity in a comprehensive range of benefits. The general principle of the convention is that people migrating from one country to the other will be taken into the social security scheme of the receiving country and paid benefits under the laws and conditions applicable to other residents of that country.

However, male applicants for a retirement pension under the convention, in either country, are not entitled to receive payment until the age of 65. The qualifying age for women is 60 years.

Reciprocal benefits in force for United Kingdom citizens in New Zealand at 31 March 1989 were 10 828 national superannuation payments. 16 widows benefits, and 95 invalids benefits, making a total of 10 939, compared with 11 368 in 1988.

Reciprocal agreements are being negotiated with several other countries.

General portability. From 1 April 1990 people receiving Guaranteed Retirement Income or veterans pension will be able to continue to receive 50 percent of their pension while living overseas, provided that they were resident in New Zealand on 1 April 1990 and are not living in a country with which New Zealand has a social security reciprocal agreement. Rates of payment above 50 percent will be negotiated in the context of reciprocal agreements.

7.2 Social services

The Department of Social Welfare provides a range of assistance to elderly people and people with disabilities, to children, young people and families, and to community groups. For example, under the Disabled Persons Community Welfare Act 1975 it provides grants to assist individuals with costs arising from disability, and funds organisations providing services to support home-based care, residential care, and vocational rehabilitation services. Under the Children, Young Persons, and Their Families Act 1989 the department funds programmes to support families and to assist children and young people at risk. It maintains a team of social workers and other staff who provide a counselling and social work service, as well as undertaking general field inquiry work and residential care for children and young people. In addition, most district offices of the department have a community services section, which works with non-government social service agencies.

Some of the wide range of social services available are outlined below.

Table 7.7. DEPARTMENT OF SOCIAL WELFARE EXPENDITURE ON FUNDING PROGRAMMES

Year ended 31 March 1989
Programme

* Includes both payments to individuals requiring assistance and payments to voluntary organisations providing social services. Excludes administration costs and salaries.

Source: Department of Social Welfare.

 $(000)
Older people and people with disabilities91,260
Support for children, young persons and families20,652
Community welfare16,619
            Total gross expenditure on funding programmes*128 531

Services for the elderly and disabled

In addition to administering income support provisions described in section 7.1 (Guaranteed Retirement Income, invalids benefit, sickness benefit, disability allowance and handicapped child allowance), the Department of Social Welfare provides funding for social services to older people and people with disabilities, as well as financial assistance to individuals.

Aid to families. The cost of alternative care of children or adults with a disability may be met for up to four weeks a year.

Attendant care. People under age 65 who have serious physical disabilities can be provided with an attendant, to assist with personal care for up to 35 hours a week, to enable them to remain in, their own homes.

Home care—60s plus. A demonstration project in Auckland aims to increase the range and level of support available to older people living in their own homes who might otherwise require residential care. Assistance is provided for up to 14 hours a week.

Home help. A home help scheme provides assistance to people who are unable to meet the cost of necessary help in the home.

Homes for people with disabilities. Under the capital subsidy programme for people with disabilities, limited subsidies are available for essential upgrading of homes to meet fire protection and health standards.

Loans for alterations to homes. Suspensory loans are available for essential alterations or to incorporate special features so people with serious disabilities can remain in, their own homes.

Rest home subsidy scheme. A special subsidy is available to assist elderly people who require rest home care and are unable to meet the cost.

Supply of appliances. People with severe disabilities may be assisted with the purchase of ambulatory or other equipment, which enable them to return to, or remain in their own homes.

Assistance to attend treatment or training. A person with a serious disability may be provided with assistance for travel and accommodation expenses incurred in an approved course of medical treatment.

Loans for cars. Suspensory loans may be granted to people with serious disabilities to help them purchase a motor vehicle, where they need a vehicle to obtain or retain employment, to undergo training for suitable work, or to engage in voluntary work which will benefit the community.

Rehabilitation allowance. People undergoing retraining or assessment for work at an approved agency may receive a rehabilitation allowance, payable without a means test, in addition to the normal entitlement to a benefit.

Rehabilitation League of New Zealand (Inc). Assessment and work experience is provided by this organisation, which is fully funded by the department. The league also provides a hospital rehabilitation liaison service, retraining and work adjustment, through branches in Auckland, Napier, Wellington, Christchurch and Dunedin.

Self-employment. Financial assistance is available to people with disabilities to help them become self-employed.

Vocational opportunities support programme. Approved organisations can receive funding assistance towards the cost of providing sheltered and supported employment, promoting continuing education, and providing training and ‘skills for living’ programmes for people with disabilities.

Artificial Limb Board. The board is responsible for the provision, fitting and maintenance of artificial limbs for amputees in New Zealand.

Disability training course. Funding is available towards training for people who work with and care for people with disabilities.

Disabled Persons Assembly. Funding is provided to the Disabled Persons Assembly, to enable it to represent the interests of people with disabilities, and to promote the coordination of services.

Disabled persons services. Grants are paid towards the salaries of approved full-time field-workers and to assist organisations to meet the costs of administration and of co-ordinating volunteers.

New Zealand Society for the Intellectually Handicapped (Inc). A subsidy programme supports all services provided by this organisation, including residential care, vocational assistance, early childhood services, social work and community development.

Welfare services for deaf people. A subsidy programme supports the New Zealand Association of the Deaf for its field workers and interpreters, and the National Foundation for the Deaf for its work in advocacy and service co-ordination for deaf people.

Community programmes

Maatua whangai and whanau development. Funding is available to tribal authorities to help establish tribal registers and strengthen traditional networks through appropriate iwi processes.

Refugee services programmes. Funding is available to refugee groups and welfare organisations for both one-off and on-going projects which are developmental and supportive. The aim is to help refugee communities develop projects and services to meet their welfare needs and to support welfare organisations assisting refugees.

Pacific people's development fund. Funding is available to enable the Pacific Island community to develop culturally appropriate services and to promote the well-being of Pacific Island people in New Zealand.

Rural social services. Funds are available to appropriate community groups in Northland and the West Coast of the South Island to improve access to social services in those areas.

Telephone counselling. Voluntary organisations offering telephone counselling and support for individuals and families may receive annual grants for operating and volunteer expenses.

Budgeting services support programme. Financial support is provided to support and encourage voluntary budgeting services. Grants are available for volunteer expenses and travel costs, and for operating costs, to community budgeting services affiliated to the New Zealand Federation of Family Budgeting Services.

Social rehabilitation. Financial assistance is given to voluntary agencies providing periodic social rehabilitation programmes in a residential setting.

Community welfare initiatives fund. Grants may be made to community organisations for small-scale local initiatives or developmental work, where no other funds are available.

Contingency fund. One-off grants are made to approved welfare agencies in serious financial difficulties, and to assist voluntary agencies needing help to maintain services which do not qualify for support under other schemes.

Co-ordination of voluntary welfare organisations. Grants are made to national voluntary welfare organisations to improve co-operation between and co-ordination of voluntary welfare services at a national level.

Community organisations grants scheme. The scheme provides local funding for essential social services. Grants are made to non-profit community organisations for staff costs, projects, and related costs.

Children, young persons and families

Children, Young Persons, and Their Families Act 1989. A comprehensive review of the former Children and Young Persons Act 1974 resulted, in 1989, in the passing of a new Children, Young Persons, and Their Families Act. This Act, which came into force on 1 November 1989, reforms the law relating to children and young persons (over 13 and under 17 years of age) in need of care or protection, or who offend against the law. In particular, the Act:

  • Seeks to advance the well-being of families and the well-being of children and young persons as members of families, whanau, hapu, iwi and family groups;

  • Provides for families, whanau, hapu, iwi and family groups to receive assistance in caring for their children and young persons;

  • Provides for matters relating to children and young persons who are in need of care or protection or who have offended against the law to be resolved, wherever possible, by their own family, whanau (kin-based family group), hapu (sub-tribes), iwi (tribes) or family group; and

  • Provides for the appointment of a Commissioner for Children.

The major changes introduced by the new Act are noted below:

  • Separate jurisdictions are established for care and protection matters and offending matters. Issues relating to the protection and care of children and young persons are heard in the Family Court, while offending by young persons is dealt with in a new Youth Court, established as a separate division of the District Court.

  • General principles, principles relating to the care and protection of children and young persons, and youth justice principles, are established, to be applied in the exercise of powers under the Act.

  • Authority is provided for family group conferences, to give families and whanau the first opportunity to resolve problems concerning children and young persons, before these matters are referred to the court.

  • A widened range of orders is made available to the Family Court to support children and young people without separating them from their family groups to deal with issues of custody, guardianship and access.

  • Provision is made for the approval of iwi authorities, cultural authorities and child and family support services to act, where appropriate, as custodian or guardian of children and young persons.

  • New procedures are established for dealing with young offenders, to facilitate informal solutions to minor offences and appropriate time-limited sanctions for more serious ones.

Proceedings prior to the 1989 Act. Under the Children and Young Persons Act 1974 both offending cases and cases involving complaint action against parents (e.g., for neglect or ill treatment) were dealt with in the Children and Young Persons Court. The main action available to the court was to place the child or young person in the care of the Director-General of Social Welfare. Less serious situations could be dealt with by children's boards by the Youth Aid Section of the Police.

Statistics relating to court proceedings under the new Act are not yet available. The following tables provide information about proceedings in the Children and Young Persons Court to 1988.

Table 7.8. CHILDREN'S AND YOUNG PERSONS' CASES COMING TO NOTICE

YearTotal youth
aid cases
Children's
board cases
Total court
appearances
Total number
of children
Percentage
change on
previous year*
* The decline in 1987 and 1988 is due to changing practice in line with the new Act.
19841,8172,15412,23316,204+0.9
19851,7522 038x11,26515 055x−7.0
19861,4261 463x11,75914 648x−4.0
19871,0881,0769,65811,822−18.2
19881,8549117,95310,718−8.4

In the tables which follow, ‘distinct cases’ relate to court appearances, the most serious or most heavily penalised of the charges against each person at one court hearing being selected as the distinct case.

Table 7.9. CHILDREN AND YOUNG PERSONS COURT APPEARANCES BY TYPE OF COMPLAINT AND DECISION

Type of complaint*19861987
MalesFemalesTotalMalesFemalesTotal

* Excludes complaints dismissed, withdrawn or struck out.

† Includes failure to exercise parental duty.

‡ Includes offending by children.

§ Includes orders to come up for sentence if called upon and referrals to children's boards or District Courts.

Neglect or ill treatment215253468203251454
Beyond control428261689245158403
Truancy403574231134
Breach of supervision order27154226935
            Total7105641 274497429926
Court decision—
     Admonished and/or discharged137782156653119
     Admonished and returned to care or supervision
     Supervision order338291629284221505
     Committed to care of Department of Social Welfare195180375117139256
     Others§401555301646
            Total7105641 274497429926

Table 7.1. CHILDREN AND YOUNG PERSONS COURT OFFENCE CASES

Type of offence198519861987

* Includes interfering with vehicle.

† Includes forgery and uttering.

‡ Includes traffic offences and offences against decency.

Total charges
Sexual offences8410880
Violent offences1,1931,3091,211
Other offences against the person324447472
Burglary, and breaking and entering5,6965,1844,933
Theft, receiving, and fraud6,3756,8286,405
Unlawful conversion*3,9253,9424,061
Wilful damage and arson1,0651,2591,029
Other offences against property259161140
Offences against good order2,7873,3813,453
Other offences2,1542,2642,134
            Total23 86224 88323 918
Distinct cases
Sexual offences596862
Violent offences9721,032968
Other offences against the person221310317
Burglary, and breaking and entering2,9032,5642,549
Theft, receiving, and fraud3,0053,1693,067
Unlawful conversion of vehicles*1,5561,6261,625
Wilful damage and arson476491447
Other offences against property654248
Offences against good order1,5511,8481,747
Other offences1,3171,3891,312
            Total12 12512 53912 142

Table 7.11. CHILDREN AND YOUNG PERSONS COURT APPEARANCES FOR OFFENDING: DECISIONS MADE

DecisionTotal chargesDistinct cases
198519861987198519861987

* Includes periodic detention and community care.

† Includes adult supervision, ordered to come up for sentence, convicted and discharged, and community service.

Dismissed or withdrawn2,1502,4802,3151,2391,3941,332
Admonished and/or discharged4,3935,3135,0682,4373,0093,013
Committed to care of Department of Social Welfare574626648176160144
Placed under supervision5,2265,2645,1222,1482,1902,115
Committed to an institution*3,3133,4783,3291,0681,083979
Fined3,6183,5853,2942,7732,8152,567
Otherwise dealt with4,5884,1374,1422,2841,8881,992
            Total cases, offending23 86224 88323 91812 12512 53912 142
Males19,91420,88020,2289,83810,27010,072
Females3,9484,0033,6902,2872,2692,070

Social work with children and young persons. As at 31 March 1989, social-work staff employed by the Department of Social Welfare included 883 social workers and 361 residential social workers. Casework duties include preventive work; investigation and assessment of child abuse allegations; investigations and reporting for the Family and Youth Courts; activities to carry out orders and plans agreed to in family group conferences, or made in court orders; adoption work; approval of foster parents; reporting to courts on matrimonial proceedings affecting custody of children; and inspection of homes run by voluntary organisations. Social workers receive assistance from social welfare volunteers from the community who give support and assistance to individuals and families under the close supervision of the department.

Residential-care facilities include long-term training centres for difficult and delinquent children, short-term facilities providing assessment, emergency, and temporary care for older children, and ‘family homes’ and ‘group homes’ which provide care for children of all ages either on a short-term or long-term basis. After a review of its residential services during 1986, the department decided to move towards the community care of children and young people rather than relying to the extent that it has in the past on institutional care. A significant proportion of resources are being reallocated from institutional to community care and the number of children and young people in residential care has fallen substantially.

Social workers undertake a wide variety of miscellaneous investigations and inquiries concerning the welfare of children. Concern for individual children may be expressed by neighbours, police, teachers, employers, doctors, solicitors and so on, or by parents themselves who are seeking advice and guidance. Under the new legislation, the Children, Young Persons, and Their Families Act 1989, decisions are made by ‘family group conferences’, or, if no agreement can be reached, through action in the Family Court.

Young offenders. Under the new Act a clear distinction is made between processes appropriate for dealing with children and young persons needing care and protection, and processes for dealing with young people who offend against the law. (A ‘young person’ is someone at least 14 and less than 17 years old.)

The Act holds young people accountable when they commit offences; at the same time it assures them of the same rights as an adult in a court of law, with age as a mitigating factor. Processes of arrest and questioning by enforcement agencies are carefully defined in the new Act, and admissibility of evidence gathered during these processes is restricted by the requirement that the correct procedures are carried out.

Significant offending behaviour is dealt with in the first place by a family group conference, after referral by the prosecuting authority. If the family group conference is unable to resolve matters, or if the offence is sufficiently serious, it may be referred to a Youth Court. If the facts of the alleged offending are denied, the matter is adjudicated in the Youth Court.

Orders available to the court are specific and time-limited. It is no longer possible to place a young person in the care of the Director-General for an indeterminate period simply because of his or her offending behaviour. Two new sanctions available to the court are ‘supervision with activity’ and ‘supervision with residence’ for up to three months. The latter is the only custodial order available to the Youth Court. Young people may also be referred to the District Court for sentence.

Children and young persons in care, custody or guardianship. A majority of children and young persons at present in the care of the Department of Social Welfare came into care as a result of proceedings under the Children and Young Persons Act 1974, which provided for the Director-General of Social Welfare to take sole guardianship of children and young people who needed care or protection, or who had offended against the law. In addition, a number of children and young persons were placed in the department's care by agreement with the parents.

The majority of children and young persons in care live in the community. In 1988, 67.3 percent were living in foster homes, departmental family homes, boarding schools, or with relatives; 14.2 percent were with their own parents; 6.8 percent were in employment. Only 7.1 percent were in institutional care, either in Department of Social Welfare or Department of Justice institutions.

Table 7.12. CHILDREN AND YOUNG PERSONS UNDER THE CONTROL OF THE SOCIAL WELFARE DEPARTMENT, 30 NOVEMBER 1988

 NumberPercentage
Reasons for being placed in care—
     Children placed under guardianship of the Director-General by court order3,29964.5
     Children under control by agreement with parents73814.4
     Children on court remand, postponements, warrant, etc.1,07821.1
            Total5 115100.0
Placement of children—
     In foster homes2,48548.6
     Placed with parents for trial period72914.2
     Living with and supported by relatives1012.0
     In employment (excluding those with relatives, etc.)3496.8
     In residential colleges2003.9
     Receiving tertiary education130.3
     In Department of Social Welfare short-term institutions2144.2
     In Department of Social Welfare family homes65612.8
     In private institutions1512.9
     In Department of Education special schools130.3
     In hospitals140.3
     In psychiatric hospitals and psychopaedic hospitals170.3
     On probation40.1
     In Department of Social Welfare national institutions1392.7
     In youth prison or corrective training centres100.2
     In police custody10.0
     Absent without leave190.4
            Total5 115100.0
Source: Department of Social Welfare.

In leaving their homeland to emigrate to the new colony of New Zealand the early settlers were looking to a new life—away from unemployment, poverty, the Poor Law, the workhouses and the orphanages. In their first years they found the new land challenging, with success for some and disappointment and failure for others. With failure and hardship for some of the population came social problems. Among the first problems to be noticed and remedies sought for were those affecting children.

Fathers deserted their families for the gold-fields and the forestry camps, or fell victims of accident or illness. Mothers deserted their families for other reasons, or fell victims of illness. Other family members or neighbours did their best to care for orphans or neglected children, but by 1857 the country's first orphanage was operating in Christchurch. Others followed soon after in each of the main centres.

At first the orphanages were provided by the churches, but from the 1880s hospital boards were also to play a part under their ‘charitable aid’ provisions. Until the second half of this century child welfare measures tended to concentrate on the needs of Europeans—Maori were ignored or left to their extended family.

The ‘long depression’ of the 1880s heightened the need for orphanages, and by 1891 ‘this new land’ had at least five ‘orphan asylums’—two provided by the hospital boards, two by Roman Catholic orders, and one by the Anglican church. These institutions admitted orphans or destitute children on the order of the local magistrate. That year eight boys and 28 girls were admitted to these orphanages, and at the end of the year 59 boys and 119 girls were in residence.

Twenty years later there were 35 orphanages or children's homes throughout the country. There were few true orphans in residence and the term ‘orphanage’ was being phased out, although some retained the name—it was more emotive than ‘home’. The passing of the Education Act 1910 had provided for the inspection of these premises by officers of the Education Department a preliminary to the establishment of a Child Welfare Division in 1925.

Many churches were establishing homes for children ‘deprived of normal home life’—a term which covered most situations. For example between 1907 and 1910 the Presbyterian Church built several new homes for children, and some of the buildings remain, although their uses are now different. All the churches were involved in this expansion, as the need had been recognised and private charity was generously available for work to benefit children.

Life in the orphanages and homes reflected the normal standards of the community—at a time when it was hard for many families. But the children in care were housed, clothed, fed and educated, though the standards were spartan compared to today.

Dormitories tended to be large and plain, with varnished floors and rows of iron frame beds with identical bed covers, and no lockers or wardrobes. Their appearance was usually very clean and spare—and usually there was no admission during the day to the sleeping quarters. Good clothes were kept in cupboards in a separate room, play clothes kept in lockers in the play rooms along with personal toys and books.

Uniform clothing was common, although used clothing was welcomed and worn for play and around the premises, ‘best’ or ‘Sunday’ clothes were kept apart for those occasions. Money for running costs was not plentiful but church homes did benefit from parish concern. Gifts of food at Harvest Festival time helped to fill the larder, and for 50 years one group of homes established in 1909 received thousands of eggs from country parishes at an annual egg harvest. They were stored in baths of egg preserver and the children were sure of at least plenty of eggs for the year.

Children were expected to do various tasks in the home, according to ages, and sometimes staff tended to expect too much. The day usually began with the bell at 6.30 a.m.—out of bed, washed, bed made, dressed for school, floors polished, tables laid for breakfast of porridge, toast, jam and milk, dishes washed, then walk to school. After school, and a plain cut lunch, it would be straight home, change to play clothes, more chores, tables laid for tea, washing dishes, homework or play, then to bed according to age—with no reading in bed.

There was frequently friction between ‘home’ and other children within schools, and a view commonly held by teachers and others was that they were less intelligent. Home children were also often the first to be suspected of thefts or breakages. Bullying, however, was generally well handled as the older children looked after the smaller and younger. Time has also done much to dispel the prejudice against ‘home’ children and many have became successful and public figures.

Churches and later, service clubs were generous in their interest especially about Christmas, with drives, parties and entertainments—but none of these replaced their parents—good or bad. Some parents and relatives were regular visitors at weekends, while others ignored their children once admitted. When children left school they were found work and accommodation.

By 1935 the number of homes had reached a peak of 75, caring for 2941 children. Many children were taken into care during the Depression as parents surrendered or deserted them. About this time the name ‘orphanage’ was being widely dropped in favour of ‘children's home’. By 1949 the Child Welfare Division reported there were 2520 children residing in the same number of registered homes as in 1935. Of these, 104 children had both parents dead (true orphans) 216 had fathers dead and 372 had mothers dead. The remaining 70 percent had both parents living but not necessarily together.

Over the years the standards of the homes and their staff improved. The children had some security—their basic needs were being provided and they had caring supervision. They were free from the scenes of marital strife and violence from which so many had come. However, with the numbers and variety of backgrounds in existence—often for long periods—it was inevitable that the children suffered from institutionalism. Aware of this, in the 1940s authorities began to set up small family homes caring for from six to eight children in a family atmosphere under the care of a married couple, with the husband going out to his normal job. The success depended on the quality of the couple employed, and there were failures. At its best the system approximated ‘typical’ family life and the children developed a stable base and strong bonds with their foster parents and peers. However a new phase was coming.

In 1946 in Britain the Curtis Report on the care of children reviewed standards and practices in the field and made a number of major recommendations. It was well received in New Zealand and many of its recommendations were adopted by the Child Welfare Division and by homes themselves. The move was towards foster care in families, or making it possible for children to remain with their own families with support and supervision from trained social workers. This change in approach was to lead to the closure of many homes. In the cities alternative uses could often be found but in rural areas this was more difficult and numerous buildings became largely unusable.

In recent years less than one-fifth of the children coming under the supervision of the Department of Social Welfare have been placed in institutions and today there are only a small number of children's homes operated by the Department of Social Welfare and private agencies. Usually they provide short-term accommodation only. Family homes are still operated. Staffing, buildings and routine have also changed greatly since the heyday of orphanages earlier this century.

It is anticipated that the provisions of the Children, Young Persons, and Their Families Act 1989 will result in fewer children and young persons coming into the custody or guardianship of the Director-General of Social Welfare. The emphasis in the new Act is on assisting families and family groups—including whanau, hapu and iwi—to resolve problems and to care for their own children and young persons. Where possible, a family group conference will resolve matters, and where a matter does go to the Family Court a wide choice of orders is available. Where possible, a child or young person who has been removed from his or her family is returned to that family. Where return is not possible, he or she is placed in a new family, or a family-like setting.

Adoption. Under the Adoption Act 1955 social workers counsel parents considering relinquishing their child, approve prospective adoptive parents, report to the Family Court, and supervise interim adoption orders made by the court. The steadily declining numbers of children available for adoption by strangers reflects changing social attitudes. A majority of sole parents now care for their children themselves, or make arrangements for the child to be cared for within their family or extended family network.

The Adult Adoption Information Act 1985 allows adopted adults to apply for and receive copies of their original birth certificates through the Registrar-General and also allows the birth parents of adopted adults access to information about their birth child through the Department of Social Welfare.

Both adopted adults and birth parents may place a veto preventing access to information directly related to themselves. The vetoes last for ten years and are renewable.

Funding for children, young persons and families

Funding is available to individuals and to a wide range of community organisations providing support, counselling, care and rehabilitation for children, young people, families, hapu and iwi.

Childcare subsidy. The childcare subsidy programme has two parts. An income-tested subsidy of up to $30 a week per child is available to assist low-income families with the cost of daycare for pre-school children. Secondly, in special circumstances up to the full cost of childcare can be paid, to prevent family breakdown.

Family services programme. Funding assistance is available to voluntary organisations providing support for families where stress is adversely affecting the family's ability to provide for the well-being, care and protection of children and young persons.

Homebuilders family support programme. This provides funding for voluntary' organisations and community groups who enter into contracts with the department to provide intensive home-based support for families under stress. The object is to promote the ability of family groups to provide for the care, protection and belonging of their children and young people.

Child and family support services programme. This provides funding assistance on a negotiated contract basis to approved organisations and bodies to undertake custody and guardianship of children and young people under the Children, Young Persons and Their Families Act 1989.

Koha placement. Funding is directly available to iwi to make koha payments to whanau where a Maori child is temporarily unable to live with his or her parents.

Youth services programme. Funding is provided for community-based residential and day services for seriously disadvantaged young people. Financial assistance is also provided to give effect to decisions and plans of family group conferences, for young people ordered by the Youth Court to undertake ‘supervision with activity’, and to community groups providing recreational activities for young people.

Emergency housing. There is joint involvement with the Housing Corporation to allocate emergency houses for homeless families, women's refuges and adolescents at risk. In addition there is provision for financial assistance for co-ordinators carrying out support work for families in emergency housing.

Women's refuges. Financial support is provided to the National Collective of Independent Women's Refuges to distribute to refuges providing emergency accommodation and ongoing support for women and children who are victims of domestic violence or abuse. At the end of 1989 there were 49 such refuges.

Rape and sexual abuse services. The programme promotes and supports services to assist victims of rape and sexual abuse and their families. Annual grants assist counselling/support workers and volunteers in some 80 organisations. Funding is also provided for operating and administrative costs for three national collectives based on cultural groupings.

Men's violence rehabilitation. This programme promotes and supports community counselling, anger management and other rehabilitation programmes for male family violence.

Contributors

  • 7.1 Department of Social Welfare; Department of Statistics.

  • 7.2 Department of Social Welfare; Department of Statistics.

Historical

Department of Statistics; Department of Social Welfare; W R Lake.

Further information

The April Report. 5 vols. Royal Commission on Social Policy, 1988.

Justice Statistics. Department of Statistics (annual).

Report of the Department of Social Welfare (Parl. paper E. 12).

Chapter 8. Health and Safety

8.1 Organisation of health services

The New Zealand health system is made up of public, private and voluntary sectors which interact in providing and funding health care.

The public sector provides free treatment at hospitals for immediate and major medical problems, including maternity and geriatric care, and free dental treatment for those under 18 years of age. Administration of health services is the responsibility of the Department of Health and its health development units, area health boards, other government departments with an interest in the area, and local authorities (which have some public health functions). Training of health professionals is also funded by the state.

Private sector health care is provided by general practitioners, dentists, pharmacists, physiotherapists, specialists and private hospitals—although the state provides a number of subsidies to those services. There are also the less orthodox techniques such as chiropractic, naturopathic, and ‘alternative’ healing, and the sector incorporates any private company or organisation which provides some type of health service to its members or employees. For example some firms employ occupational health nurses to perform duties directed toward prevention of occupational illness and injury.

A feature of private sector health care has been the development in private health insurance over the last ten years. Today, approximately 45 percent of the population has this type of insurance. It helps finance their surgical and medical care in private hospitals and usually part of the costs of consultations with general practitioners and specialists. Health insurance is provided by non-profit friendly societies and private insurance companies.

The voluntary sector is extensive and diverse. Large-scale organisations include the Plunket Society, Family Planning Association, the Salvation Army and St John Ambulance. Many are organised nationally or even internationally, e.g., Red Cross, Barnados. Some of these larger voluntary organisations—such as the Homes of Compassion, the Crippled Children Society, and the Society for the Intellectually Handicapped (IHC)—run hospitals, daycare centres, hostels and sheltered workshops. There is also a wide range of organisations catering for the sufferers of specific diseases or disabilities and/or supporting those caring for them—such as the Royal New Zealand Foundation for the Blind, the Multiple Sclerosis Society and the Diabetes Association. Some provide not only services but also research and educational programmes, e.g., the Cancer Society. Preventive work by community support groups is especially important to promote physical and mental health programmes such as care and craft classes for the elderly, stress and weight reduction classes, smoking cessation courses, and new mother support groups.

All three sectors provide health care on two levels. Primary care, the first level of health services, is used by people as and when they require treatment, without the need for referral to a specialist. General practitioners and dentists are perhaps the most well-known of primary health carers, although the category can also include physiotherapists and chiropractors, as well as alternative healers. Secondary care is the second level of services—those available from the hospital system and from specialist practitioners.

The public sector meets over 80 percent of the total costs of health care and subsidises health care provided by general practitioners and specialists in private practice. Nearly all private hospitals are government subsidised and are subject to the same legislation and controls as public hospitals.

Recent restructuring

The administration of New Zealand's public health system was restructured during 1989, and the resulting changes continue to be implemented in 1990. Restructuring was considered necessary when various reviews commissioned by the Government highlighted inefficiencies in the system.

The objectives of the Government's health sector reforms have centred on:

  • Reducing inefficiency and waste, particularly within the hospital system and in pharmaceuticals expenditure;

  • Restraining government expenditure;

  • The accountability and responsiveness of health service suppliers;

  • Patients' access to primary care and early contact with the health system;

  • Health promotion and disease prevention, in order to reduce the need for secondary care.

The need to improve efficiency has been the major reason for reform. Traditional hospital boards were not geared towards making the changes necessary to meet the needs of consumers. In addition, the needs of many groups in the non-institutional sector have overwhelmed that sector's capacity to cope.

These problems occurred partly because of the structure of the health system, and the lack of clear accountability of the service providers to those funding the services.

As a result, hospital boards have been reconstituted as area health boards, and their responsibilities under the new system are described below.

Under the new system, the Government continues to accept overall responsibility for setting national health policy and for funding public health. Health resources are expended by the Department of Health, area health boards, and a wide range of private and voluntary organisations which provide health care and receive public funding.

New Zealand health goals. Released in December 1989, a new Health Charter identified ten goals as priorities for the public health system until the year 2000. If achieved the goals will greatly improve the overall health of New Zealanders. They are:

  • To reduce the smoking of tobacco;

  • To improve nutrition;

  • To reduce alcohol consumption;

  • To reduce the prevalence of high blood pressure;

  • To reduce death and disability from preventable road accidents;

  • To reduce hearing loss in children under five;

  • To reduce disability and death from asthma;

  • To reduce and prevent coronary heart disease and strokes;

  • To reduce cervical cancer; and

  • To reduce skin cancer.

All public, private and voluntary health organisations fully or partially funded from public health resources are expected to work towards the achievement of these health goals.

Administration of health services

Department of Health. This department advises the Minister of Health on health issues, administers relevant legislation, funds programmes and provides essential services. The department also promotes health and co-operation between those involved in providing health services. It collects and disseminates information, monitors health programmes and is responsible for ensuring that the Health Charter is carried out.

Functions of the Department of Health are described in more detail in the following sections. In addition to its administrative control over health policy and the institutions providing health care, the department also shares responsibility for public health with local authorities and voluntary agencies. This is described in section 8.3, Public health.

Area health boards. General health policy is determined by the Department of Health, and until recently, hospital boards and district health offices under the control of the department managed the provision of health services at community level. This function is now carried out by area health boards.

Fourteen area health boards have replaced hospital boards throughout New Zealand, and have much wider powers than the hospital boards had. They contract directly with the Minister of Health to promote, protect and conserve public health within their region; ensure effective co-ordination of health services between the public, private and voluntary-sectors within their area; and keep a balance between health promotion, protection, education and treatment. Area health boards must provide and fund health care services within their region, and also have day-to-day responsibility for implementing health policy.

Area health boards are elected bodies, with members voted in every' three years—other than those members appointed directly by the Minister of Health. As well as being accountable to the minister, board members must answer to their communities through a variety of consultative bodies, such as community health committees, service development and special advisory groups.

Funding of area health boards is set out below.

Health expenditure

Health services and medical benefits (under the Social Security Act 1964) are funded from general taxation through the Department of Health, which distributes funds to area health boards, and a wide range of practitioners, administrative organisations and others providing services to the public.

Over recent years governments have introduced a number of measures to curb health spending, while maintaining services. Board funding, which makes up nearly 70 percent of health expenditure, has come in for particular attention. A population-based method is used to determine funding for boards. Financial restraint is applied to those boards shown by the funding formula to be advantaged. The funds recovered from these boards are available for redistribution to boards shown to be disadvantaged and which submit acceptable service development plans.

Policy for the 1989–90 financial year called for the continuation of restraints on financially advantaged boards and again these funds were available to disadvantaged boards. The total allocation for grants to boards for 1989–90 was restrained, as wage and price stabilisation was not granted.

Service planning guidelines have also been progressively developed to help area health boards to make the best use of resources and to encourage equitable access to services. The guidelines relate the levels of health services to catchment population: local (up to 30 000); district (30 000 to 250 000); regional (over 250 000); and national. These population guidelines are, however, adjusted to meet the specific needs of a particular population.

The implementation of the funding formula and the development of service planning guidelines were accompanied by a request from the Minister of Health for each board to submit a comprehensive service development plan and these are now being implemented.

Table 8.1. NET EXPENDITURE OF THE DEPARTMENT OF HEALTH*

Programme1985–861986–871987–881988–891989–90

* Years ended 31 March, except 1989–90, which is year ended 30 June.

† Inflated by Consumers Price Index to 1989–90 prices.

‡ GST and employer superannuation contributions deducted. Inflated by Consumer Price Index.

Source: Department of Health.

 $(million)
Nominal unadjusted—
Hospital and area health boards1 584.02 050.22 362.82 524.12 607.5
Parmaceuticals346.3439.6506.6549.4517.3
Other378.7467.5518.1565.7666.3
     Total2 309.02 95733 387.53 639.23 791.1
Real unadjusted
Hospital and area health boards2 315.02 614.62 657.22 698.32 607.5
Pharmaceuticals506.1560.6569.7587.3517.3
Other553.5596.2582.6604.7666.3
     Total3 374.53 771.43809.53 890.33 791.1
Real adjusted
Hospital and area health boards2 149.62 386.82 389.12411.72 317.8
Pharmaceuticals470.0511.7512.2524.9459.8
Other513.9545.5518.4544.7589.8
     Total3 133.53 443.93419.83 481.33 367.3

Table 8.2. STAFF EMPLOYED BY HOSPITAL AREA HEALTH BOARDS*

Category of staffAs at 31 March
1985198619871988

* Includes hospitals under the control of the Department of Health. All figures based on full-time equivalents.

Source: National Health Statistics Centre.

Medical2 588.32 733.43 023.33 293.2
Dietitians150.5146.5143.0151.1
Laboratory technologists576.8613.5609.6590.0
Occupational therapists406.6411.6426.1459.2
Physiotherapists525.2500.3502.3541.7
Radiographers537.6537.4542.9494.3
Hospital scientific officers103.199.5100.6115.6
Social workers518.8526.1535.7587.8
Other staff (professional and technical)2 859.82 940.73 022.03 970.3
Nursing staff (qualified)16 103.416 385.617 391.318 090.9
Nursing staff (unqualified)3 439.03 486.13 414.83 515.6
Nursing students2 626.62 027.61 622.9883.7
Students, other629.8606.2582.9616.6
Administration and clerical staff5 737.75 903.36 098.76 035.7
Other11 509.411 356.611 180.510 742.4
     Total48 312.648 274.449 196.650 088.1

Table 8.3. GRANTS TO HOSPITAL/AREA HEALTH BOARDS

Grants to hospital boards1985–861986–871987–88*1988–89

* Prior to 1988 this covered community care health centres only.

Source: Department of Health.

Grants allocated directly$(000)
Operating grants—
     Salaries and wages948,4451 273 4981 685 4901 816 119
     Other319,337392,206463,819458,713
          Subtotal1 267 7821 665 7042 149 3092 274 832
Supplementary grants
Reserve for salary and wage increases180,256208,00225,1721,211
Loans—Repayments and payments into sinking fund56,15873,57944,53065,020
               —Net interest51,67057,63860,13671,323
Service development and special items*572419,54436,817
     Equipment for national and regional specialty services5,3073,4976,6485,895
Geriatric hospital patient assistance22,72641,78557,49969,041
          Subtotal316 174384 525213 529249 307
          Total1 583 9562 050 2292 362 8382 524 139

Regulation of health service professionals

The health service workforce is made up of a large number of professions and occupations. Some require lengthy tertiary education with controlled entry to the profession and others have no formal training requirements. Determining the numbers and kinds of workers necessary to meet New Zealand's health service requirements is a responsibility of the Department of Health. The department is concerned with maintaining work-force data profiles for the different groups, workforce planning, dealing with production issues such as intakes into basic training/education programmes, recruitment and retention and immigration issues.

A work-force consultancy group comprising a range of health professionals provides professional advice to the department and other organisations within the health service.

Following are the major registration councils and boards for health service professionals.

Doctors. The Medical Council of New Zealand, constituted under the Medical Practitioners Act 1968, consists of the Director-General of Health, the deans of the faculties of medicine in the Universities of Otago and Auckland, eight registered medical practitioners appointed on a representative basis, and one layperson.

The council deals with all applications for registration as medical practitioners under the Act. Until an applicant is able to satisfy the council that he or she has obtained 12 months experience as a house officer or has obtained comparable experience, registration is on a conditional basis. Those registered conditionally may only practise in an approved hospital. Responsible to the council is a medical education committee which supervises the training of those conditionally registered. The number of medical practitioners on the register at 30 June 1989 was 9453, with 6631 holding annual practising certificates. The Medical Council also has disciplinary powers, with a right of appeal to the High Court.

Dentists. The Dental Council was constituted under the Dental Act 1963. It examines and approves the qualifications of applicants for registration as dentists, and exercises discipline over registered dentists. The number of dentists on the register at 30 October 1989 was 1861.

The Dental Technicians' Board, established in 1968, was reconstituted under the Dental Act 1988. As at 7 March 1990, the number of dental technicians on the register was 590, of whom 228 held practising certificates.

Nurses. The Nursing Council of New Zealand is constituted under the Nurses Act 1977 and 1986 regulations. Its primary function is the registration and enrolment of nurses. The council sets minimum standards for registration; makes recommendations on programmes leading to registration and enrolment; conducts examinations; approves schools of nursing (subject to ministerial concurrence); issues annual practising certificates; and exercises disciplinary' powers. It also maintains a register of nurses for each of the following categories—comprehensive, general, general and obstetric, psychiatric, psychopaedic, enrolled nurses, and midwives.

In the year ended 31 March 1989, 44 490 nurses held annual practising certificates.

Most nurses are now trained in three-year technical institute courses which lead to registration as a comprehensive nurse. Some institutes also conduct midwifery courses. Area health board schools offer one-year programmes leading to enrolment. All hospital-based three-year programmes have taken their last group of students, with the exception of one school which is in recess and has not staled when it will close.

Post-basic education for nurses ranges from regular in-service and short clinical courses to diploma courses at technical institutes and at Massey University, and degree-level courses at Massey and Victoria Universities.

The Department of Health is also responsible under the Nurses Act for the provision of a qualified nursing work-force. It is involved in overall planning to meet demand for nurses in the health sector and prepares policies and guidelines to assist the chief nurses of hospital and area health boards.

Psychologists. The Psychologists Board is constituted under the Psychologists Act 1981. The board is concerned with the registration and conduct of those engaged in psychology. In March 1990 there were 1002 registered psychologists, and 708 held annual practising certificates. During 1989–90, 58 psychologists have been registered to practise.

Physiotherapists. The New Zealand Physiotherapy Board is constituted under the Physiotherapy Act 1949. The board examines and registers candidates for physiotherapy practise, issues special licences, and regulates the conduct of those registered under the Act.

The training period for physiotherapists is three years. Full-time training is conducted at the Auckland Technical Institute, and at Otago Polytechnic. All students are required to pass the State Examination in Physiotherapy to qualify for registration.

Occupational therapists. The Occupational Therapy Board is constituted under the Occupational Therapy Act 1949. The board is concerned with the education, registration and conduct of occupational therapists.

The Central Institute of Technology, Heretaunga, conducts the required three-year training course and clinical experience is gained at hospitals. Students who successfully complete the course are awarded a diploma in occupational therapy and then registered. At 31 December 1989 there were 1905 registered occupational therapists, with 758 holding annual practising certificates.

Dietitians. The Dietitians Board, constituted under the Dietitians Act 1950, is concerned with the training, examination and registration of people practising dietetics.

The training period for a dietitian is 12 months in a hospital training school (these are located in Auckland, Wellington and Christchurch). Students are usually already qualified in either ‘home’, ‘consumer’ or ‘applied’ science. As at 9 March 1990 there were 793 registered dietitians. Annual practising certificates were issued to 282 dietitians in the 1989–90 registration year.

Optometrists and dispensing opticians. The Opticians Board—constituted under the Optometrists and Dispensing Opticians Act 1976—is concerned with the registration and conduct of registered optometrists and registered dispensing opticians.

As at 9 March 1990, there were 213 registered optometrists and 67 registered dispensing opticians. There were 28 new optometrist registrations during 1989.

Podiatrists. The Medical Auxiliaries Act 1966 provided for the constitution of a Podiatrists Board. The board sets standards of education and conduct with regard to the profession and conducts special examinations. The board also deals with all applications for registration under the Act.

At the end of 1989 there were 267 registered podiatrists, with 173 practising. Many of those work only part-time. Following government policy, a number of area health boards are establishing community-oriented podiatry services, principally intended for the elderly.

Chiropractors. The Chiropractic Board is constituted under the Chiropractors Act 1982, and is concerned with the registration and conduct of practising chiropractors.

There is no training available for chiropractors in New Zealand. The principal criteria for colleges applying to the New Zealand Chiropractic Board for approval are documentary evidence that the college has been accredited by the federal appointed professional accrediting agency in the United States of America, or those accrediting agencies having reciprocity with that agency. There were 353 registered chiropractors at 9 March 1990, 125 of whom were licensed to practise.

Pharmacists. The Pharmacy Act 1970 requires that pharmacies in New Zealand are always supervised and controlled by a registered pharmacist. At the end of December 1989 there were 3478 registered pharmacists.

All registered pharmacists, except those who have conscientious objection to membership, automatically become members of the Pharmaceutical Society of New Zealand. The society is managed by a 12-member council. Its role is to administer the Pharmacy Act and to protect and to promote the interests of both the profession and the public.

From 1992 all pharmacy education will be centred on the University of Otago, which offers a four-year degree programme. Graduates must gain a year's practical experience before becoming eligible for registration as pharmacists.

Any pharmacist (or company in which not less than 75 percent of the share capital is owned by a pharmacist or pharmacists) may establish one pharmacy. Unqualified persons or companies in which less than 75 percent of the share capital is pharmacist-owned must get the consent of the Pharmacy Authority before commencing business; and in all cases the establishment of more than one pharmacy under the same ownership, or the holding of an interest in more than one pharmacy by any person, is subject to the consent of the authority. All pharmacies must be registered with the society.

At the time of going to press legislation was before Parliament which may alter the ownership provisions of community pharmacies.

At the end of December 1989 there were 1108 community pharmacies in New Zealand, employing over 2000 pharmacists. A further 250 to 300 pharmacists were working in hospitals, government departments and the pharmaceutical industry.

Medical radiation technologists. The Medical Radiation Technologists' Board is constituted under the Medical Auxiliaries Act 1966. The board is concerned with the registration, education and conduct of those practising medical radiation technology. It has representation from the New Zealand Institute of Medical Radiation Technologists (Inc.), the New Zealand Branch of the Royal Australasian College of Radiologists, the New Zealand Branch of the Australasian College of Physical Scientists and Engineers in Medicine, and the Department of Health.

There are five classes of medical radiation technology: diagnostic radiography; radionuclide imaging; therapeutic radiography; ultrasound imaging; and magnetic resonance imaging. As at 9 March 1990 there were 1812 registered practitioners, with 988 annual licences issued and 87 new registrations during the year to 31 December 1989.

Medical laboratory technologists. The Medical Laboratory Technologists' Board is constituted under the Medical Auxiliaries Act 1966. The board is concerned with the training, examination, registration and conduct of those engaged in the practice of medical laboratory technology. It has representation from the New Zealand Institute of Medical Laboratory Technology (Inc.), the New Zealand Society of Pathologists (Inc.), and the Department of Health.

Trainees first study for a New Zealand Certificate in Science (Medical Science) or a science degree. They then spend one year (two years for graduates) studying and working in a laboratory. During this time they complete a ‘practical competence assessment logbook’ in one often disciplines prior to sitting the board's theory examination in the same discipline. On successful completion of these, the trainee gains the Diploma in Medical Laboratory Technology and is eligible for registration.

At 8 March 1990 there were 1792 full registrations, with 948 licensed to practise.

8.2 Health benefits

The Department of Health administers Part II of the Social Security Act 1964. It deals with medical and related benefits, and provides for medical, pharmaceutical, hospital, maternity and other benefits. This section describes these benefits.

Medical benefits

The Department of Health pays a medical benefit to doctors that covers at least part of the cost of their services to patients. The benefit applies to most treatment outside hospitals, such as visits to general practitioners or consultations with specialists. Doctors claim the benefit direct from the department and receive the remainder of their fees from the patient. The standard benefit for adult patients is $4.00. For social welfare beneficiaries, pensioners and dependants, and some patients defined as ‘chronically ill’, the benefit is $12.00. For children (up to 16 years) the benefit is $16.00. This also applies to children over 16 who are still eligible for family benefit.

The benefit is $22.00 for everybody for first referred visits to some kinds of specialist (psychiatrists, paediatricians, neurologists, radiotherapists and specialist physicians). For first visits to all other types of specialist the benefit for children is $11.00, and for other patients, $5.45. For subsequent visits the benefit drops to $1.35. For later visits by social welfare beneficiaries, pensioners and dependants, and ‘chronically ill’ patients, the benefit is $3.30. For children the benefit for later visits is $5.20.

Medical benefits do not apply to certain services, namely, maternity cases (which are covered by maternity benefits described later), examinations for medical certificates, and extraction of teeth by medical practitioners (although anaesthetics for this are included).

There is also an incentive bonus for general practitioners in some rural areas. There is an immunisation benefit of $7.65. This should cover the full cost of doctors' vaccinations, at no extra charge.

Pharmaceutical benefits

New Zealand residents are entitled, at a small cost to themselves, to medicines, drugs, approved appliances and materials which are included in the drug tariff, and prescribed by medical practitioners or dentists. A charge is made for each prescription item which is included on the drug tariff. This charge is $2.00 for children and beneficiaries, and $5.00 for other adults. No individual has to pay the prescription charge for more than 25 items in any one calendar year and no family has to pay the charge for more than 40 items. Certain medicines are subject to a part charge to the patient. Doctors and chemists have a list of these items.

The number of prescriptions passed for payment in the year ended 31 March 1989 totalled 29.97 million. The average total cost was $18.45.

Hospital benefits

New Zealand residents receive free treatment in public hospitals, and part of their costs are met for private hospitals and other approved institutions. In the case of private hospitals, the rates are $31.00 a day for maternity patients and $27 75 for geriatric, hospice, and disabled patients. Outpatients at public hospitals also receive free treatment, and there is provision for free supply of a range of medical aids and appliances. There is a geriatric hospital special assistance scheme for geriatric patients in private hospitals who need hospital care but cannot be placed in public hospital beds. The patients must contribute to the cost.

Psychiatric hospitals. Treatment of patients in public psychiatric hospitals is free, and there are hospital benefits available for treatment in approved private psychiatric hospitals.

Maternity benefits. Maternity benefits cover antenatal and post-natal advice and treatment by medical practitioners, and the services of doctors and nurses at confinements in maternity hospitals or elsewhere. Recognised specialists may charge the patient over and above the benefit. Licensed private maternity hospitals are entitled to receive fees of $31.00 in respect of the day of birth of the child and for each of the succeeding 14 days.

Diagnostic services

There is a health benefit for most X-rays taken on a doctor's recommendation. They are free if done in a public hospital, and the benefit covers part of a private radiographer's fee. Dental X-rays and X-rays for medical certificates, life insurance, etc., are not eligible. There are also benefits covering most laboratory diagnostic services.

Physiotherapy benefits

There is a benefit available for physiotherapy recommended by a doctor, usually for a course of treatment of up to eight weeks, but with some illnesses treatment can continue for six months, and doctors can recommend extensions of treatment. The standard benefit is $1.10 per treatment with a higher rate of $1.65 for beneficiaries and dependants. For group patients the benefit is 45 cents per patient.

Home nursing and home help

Home nursing is free when provided by a registered nurse or midwife employed by the department, an area health board or an approved organisation. There are subsidies available to associations that provide domestic help in appropriate cases to old people or families with young children. Area health boards also provide home-aid as part of a range of services to reduce the need for hospital or residential-home care.

Dental services

Dental treatment is free for people under 16, or under 18 if still at school or otherwise dependent. Dentists under contract provide the treatment, and there is a set scale of fees which are paid by the department. Public hospitals also have dental departments which provide a free service to patients.

Artificial aids

There are specific benefits available in various circumstances for a range of artificial aids. These include breast prostheses, contact lenses, hearing aids, wheelchairs, artificial eyes, and wigs. Specific conditions apply in each type of case as to the suitability of the aid and the necessity for it. The benefits generally contribute to the initial cost and to replacements.

Table 8.4. EXPENDITURE ON HEALTH BENEFITS

Item1987–881988–89
 $(000)$(000)
Primary services—
     General medical services56,28469,972
     General medical services motor vehicle allowance189154
     Rural practice bonuses1,2511,477
     Immunisation2,4442,274
     Maternity benefits (medical problems)32,87736,237
     Maternity benefits motor vehicle allowance1,9683,126
     Practice nurse scheme23,08325,849
     Dental benefits15,23914,806
     Domiciliary midwife fees263434
     Domiciliary midwives motor vehicle allowance182195
          Subtotal133 780154 524
Referral services
     Specialist consultations4,8715,185
     Laboratory66,54777,298
     Diagnostic imaging3,7744,073
     Physiotherapy2,8403,146
          Subtotal78 03289 702
     Secondary services
     Private hospital benefits—  
               Geriatric45,69147,398
               Maternity128115
               Disability547919
               Hospice103157
               Other3,17810
     Approved institutions3,5384,482
          Subtotal53 18553 081
Artificial aids
     Breast prostheses336377
     Hearing aids374450
     Wigs/hairpieces251273
     Stump socks125150
 1 0861 250
Provider subsidies
     Triple ‘S’ scheme438601
     Student health services229268
     Medical officers in industry270218
     National toxicology group624627
     Ashburn Hall221266
     Private geriatric hospitals1,3231,393
     Other253
          Subtotal3 1073 426
Pharmaceutical benefits
Prescriptions—
     Doctors and midwives prescriptions479,453528,489
     Dispensing contracts561584
     Dentists prescriptions8461,131
Private hospitals and approved institutions—
     Bulk supply orders6,5455,445
     Wholesale supply orders3,173324
     Anaesthetic gases138
Doctors and midwives supply orders—
     Practitioners supply orders11,26510,472
     Wholesale supply orders3,9022,334
     Anaesthetic gases112
     Allergy treatment sets257267
Dentists supply orders—
     Practitioners supply orders325333
     Anaesthetic gases831
          Subtotal506 660549 380
          Total expenditure on health benefits775 850851 363
Source: Department of Health.

8.3 Public health

Environmental health

A major function of local government is the promotion and conservation of public health. Each territorial local authority appoints health inspectors to carry out regular inspections and abate any nuisances or conditions injurious to health. Specific responsibilities include the control of sanitary conditions (including overcrowding of housing) and the regulation of plumbing and drainage. There is also the control of offensive trades, environmental noise and air pollution control of small industries. The hygiene of premises, including restaurants, in which food is manufactured or sold, is another responsibility. Local authorities are also empowered to provide public water supplies, sewage disposal systems, refuse collection and disposal, stormwater drainage, public conveniences, cemeteries, crematoria, swimming pools and other sanitary' works.

The Department of Health also has responsibilities in public health. Its role is to support and advise local authorities in the performance of their statutory duties, to monitor environmental health conditions and to promote improvements where necessary. For these purposes, the department operates numerous programmes including health-protection services, periodic surveys of environmental health systems, air pollution control, financial incentives for other authorities, and staff training.

Health-protection services provided by the department include both national and international functions. They include the maintenance of food standards, quarantine, health education, communicable disease control, monitoring shellfish and the carrying out of national surveys of water supplies, food premises and refuse disposal sites. The department assists with the basic training of health inspectors employed by local authorities and conducts specialist and refresher courses for them at the Wellington Polytechnic. In the case of some smaller local authorities the necessary inspections are made by departmental officers on behalf of the authority.

Financial incentives in the form of grants and subsidies towards the capital cost of water supply, solid waste management and fluoridation systems are provided for local and regional authorities by the Department of Health. These have been available since 1969 in various forms and have been particularly successful in improving environmental health. Emphasis is now being given to disposal of hazardous wastes.

Industrial air pollution is controlled under the Clean Air Act 1972. All licensed premises are monitored to ensure they conform to the requirement for containment by meeting conditions of their licence. Air is also monitored regularly near most population centres.

Clean air zones, which have been established for Christchurch City and surrounding urban areas, are made under the Clean Air Act when pollution is severe enough to require special controls on the emission of air pollutants. In Christchurch there is a particular problem with domestic smoke emissions, and the Act provides for control of domestic heating appliances and the granting of financial assistance for electrical space and water heating to reduce domestic smoke emissions.

Control of medicines and drugs

The Medicines Act 1981 and the Medicines Regulations 1984 provide controls over therapeutic substances.

New medicines and related products require the approval of the Minister of Health before they can be marketed. Consent is only given when satisfactory evidence of the safety, effectiveness and quality of the product has been provided.

A medicine is defined as any substance or article, other than a medical device, which is intended wholly or principally for administration to humans for a therapeutic purpose or as a pregnancy test. Any food, cosmetic or dentifrice (tooth powder or paste) which is claimed to be effective for a therapeutic purpose is considered to be a related product.

Any material change in a medicine or a related product has to be notified to the Director-General of Health, and the changed product must not be distributed until 90 days have elapsed from the notification or until the Director-General signifies consent.

Medicines are classified as either ‘prescription medicines’, ‘restricted medicines’ (for sale by a pharmacist personally), as ‘pharmacy only medicines’, or are considered safe for general sale. The legislation controls the advertising and labelling of medicines, related products and methods of treatment; the standards of manufacture, package and storage of medicines, related products and cosmetics; and the prescribing and dispensing of medicines.

Licences are required for manufacturers and others dealing with medicines. Any refusal of a licence can be appealed to the Medicines Review Committee. The committee may also enquire into an objection to a recommendation that the Minister of Health refuse to consent to the distribution of a new medicine.

Misuse of drugs. A wide range of narcotic and other drugs are strictly controlled by the Misuse of Drugs Act 1975 and the Misuse of Drugs Regulations 1977. It is a serious offence to obtain, manufacture, possess, consume, supply or offer to supply controlled drugs unless authorised under the Act.

Controlled drugs are divided into three classes. The heavier penalties are for offences involving drugs in class A, which include heroin and lysergide. Classes B and C contain many drugs which are used for medical and scientific purposes, such as morphine, pethidine and codeine. Cannabis plants, as well as its fruit and seeds, and the recently manufactured ‘designer drugs’ are included in class C.

Illegal dealing in any class of controlled drug is subject to heavy penalties varying from lengthy terms of imprisonment through go fines.

To curb drug abuse, the departments of Health, and Customs and Police have maintained the National Drug Intelligence Bureau since 1972.

Food hygiene and nutrition

The Food Act 1981 provides for the analysis of any articles of food or drink for sale, and for the inspection of places where food is manufactured or sold. There are stringent measures to prevent the adulteration of food and for the inspection of places where food is manufactured or packed. Regulations lay down minimum standards for many classes of food, control additives of all kinds and deal with the labelling of food packages. Control is also established over all utensils and appliances coming into contact with food. Sampling and inspection of foods for sale in New Zealand and investigation of food complaints is undertaken by officers of area health boards.

An important provision of the Act controls all kinds of publicity where a purchaser of any food would possibly be deceived about its properties—whether or not it is standardised by regulations.

A Food Standards Committee meets regularly to discuss the latest technical advances in food production and to make recommendations for amendments to food standards.

Food hygiene regulations require food premises to be registered and to meet minimum construction requirements. These regulations also contain provisions dealing with the maintenance of food premises and the conduct of workers. Environmental health officers employed by local authorities carry out inspections to check compliance with these regulations.

Health welfare services

Continuing care residential services for older people are provided by area health boards, and private hospitals and rest homes.

Increasing attention is being given to measures to help older people to remain in their homes as long as possible. These include the provision of district nursing services, home aid, meals-on-wheels, laundry services and occupational therapy. In addition, many religious and welfare homes are now providing day-care for those who do not want full accommodation in an old people's home. In general the services are provided by area health boards with voluntary organisations and old people's welfare councils assisting in various ways. The importance of old people's clubs and social centres, with an adequate range of services, is also receiving increasing recognition. Government lottery funds are being used to assist in providing suitable premises and in helping welfare councils with administrative costs.

Voluntary welfare organisations. Over the years voluntary' welfare organisations have made valuable contributions to important aspects of public health. In many cases they are encouraged and assisted in their work by grants from public funds. Among these organisations are the Royal New Zealand Plunket Society, the Children's Health Camps Board, the New Zealand Red Cross Society, the St John Ambulance Association, the New Zealand Crippled Children Society, the Hearing Association, the Royal New Zealand Foundation for the Blind, the Family Planning Association, the Neurological Foundation, the Rehabilitation League, the Laura Fergusson Trust for Disabled Persons, the New Zealand Society for the Intellectually Handicapped, the Cancer Society and the National Heart Foundation.

Mental health

Mental health services in New Zealand have continued to develop initiatives in community-based mental health care.

A national mental health consortium—convened by the Departments of Health and Social Welfare to make recommendations on developments in mental health—reported to the Government during 1989 and, following on from the report, new legislation entitled The Mental Health (Compulsory Assessment and Treatment) Bill 1989 is expected to come into effect during 1990.

Innovations in forensic psychiatry services are being implemented by area health boards with additional funding provided by the government. Forensic psychiatry applies to people who come to notice through the criminal justice system. Services include the establishment of community-based forensic psychiatric teams as well as the construction of medium security units in six centres.

Family health

The health of families is promoted through co-operation between the Department of Health, other government departments, voluntary agencies, area health boards, and health professionals. Women can receive free antenatal, perinatal and postnatal care from their general practitioners or domiciliary midwives (through benefits set out in the Social Security Act 1964) or by attending antenatal clinics established in connection with public hospitals with maternity wards. Some women choose private obstetric care from a specialist.

Approximately 99 percent of confinements take place in hospital but domiciliary midwives, working with general practitioners, provide care for those women who choose to have their baby at home. Antenatal classes, to prepare parents for their baby's arrival, are available at hospitals or from voluntary organisations.

All private maternity hospitals are licensed under the Hospitals Act 1957, and the Department of Health is responsible for ensuring that regulations regarding buildings, equipment and staff are observed.

Family planning. Family planning advice can be obtained from general practitioners, private specialists, and from any one of the 40 clinics operated by the New Zealand Family Planning Association (Inc.) in various centres throughout the country. Government provides a grant to meet the cost of salaries of doctors, nurses and clinical health assistants employed by the association in approved clinics.

Government also provides a grant to the New Zealand Association of Natural Family Planning (Inc.) to meet the payment of the salary of the national medical co-ordinator, and the costs for both an initial one-week residential training course for up to 175 teachers each year, and an annual three-day training course for up to 250 teachers.

A number of area health boards have established family planning clinics within their obstetrics and gynaecology departments to provide additional facilities for the public, and training for doctors, medical students and nurses. Other boards are being encouraged to provide these facilities.

Women's health. Women's health has traditionally been associated only with childbearing and reproduction, but a consideration of women's health is no longer limited to these areas. Recent policy also recognises that specific groups of women, such as Maori women and elderly women, have particular health needs which should be catered for in health planning. The Department of Health has a women's health policy unit with responsibility for developing policy in this area. Its priority recently has been to finalise a national women's health policy. As a result of an inquiry into research practices at a major New Zealand women's hospital, a number of initiatives are underway to maintain the rights of women undergoing diagnosis or treatment. They include guidelines on informed consent, the establishment of ethics committees, and the appointment of patient advocates and a health commissioner. A national cervical cancer screening programme is being developed and a pilot scheme for mammography screening (for breast cancer) is under consideration. Women's health services are provided by area health boards, health professionals and a large variety of community and consumer groups. An advisory committee on women's health provides advice and suggests priority areas to the Minister of Health and the department.

Child health. A comprehensive child health service that focuses on prevention is offered by area health boards and the Royal New Zealand Plunket Society. Examinations by family doctors are recommended at about six weeks of age and again at nine months, and whenever there is anxiety over acute or chronic illness or development. The Plunket Society provides the major proportion of preventive community health nursing services to infants and pre-school children although some supervision is undertaken by public health nurses. In addition to nursing services provided in the first year, developmental health checks are recommended at 18 months and three years. Hearing screening by impedance audiometry in the pre-school period is also recommended. When necessary children are referred to family doctors, or to medical officers or community paediatricians employed by the Department of Health.

A comprehensive review of preventive child health care is currently underway, in conjunction with the development of an information base for child surveillance.

A Children's Health Camps Board maintains seven permanent camps for the short-stay placement of children convalescing after illness, for those whose physical health is unsatisfactory, and for those with minor behavioural or psychiatric problems. It is funded by the state. Referrals to the camps are made by public health nurses while medical officers undertake general health supervision of the camps. The Department of Education maintains school classes in the camps, with emphasis on remedial teaching.

A consultative service is provided to schools by public health nurses, with special emphasis on health education and health promotion.

Table 8.5. CHILDREN'S PUBLIC HOSPITAL DISCHARGE RATES PER 1000 MEAN POPULATION, 1986*

PopulationAge group (years)
Under 11–45–910–14

* Includes deaths in hospital.

Source: Department of Health.

Maori920.2204.495.878.7
Non-Maori384.096.356.545.7
          Total450.31 10561.649.7

Immunisation. Immunisation against a range of diseases is free and is usually performed by family doctors or their practice nurses, although some immunisations are given by public health nurses.

Table 8.6. RECOMMENDED IMMUNISATION SCHEDULE

AgeVaccine

* Diphtheria, tetanus, whooping cough.

† Diphtheria, tetanus.

Source: Department of Health.

BirthHepatitis B
6 weeksTriple (DPT)*
 Hepatitis B
3 monthsTriple (DPT)*
 Poliomyelitis
 Hepatitis B
5 monthsTriple (DPT)*
 Poliomyelitis
15 monthsMeasles
 Hepatitis B
18 monthsDouble (DT)
 Poliomyelitis
5 yearsPoliomyelitis
Form 1 girlsRubella
15 yearsTetanus

Table 8.7. INFANT IMMUNISATION LEVELS BY VACCINE TYPE: PERCENTAGE OF BIRTHS IMMUNISED, 1986

Vaccine typePercentage immunised

* Diphtheria, tetanus, whooping cough.

† Diphtheria, tetanus.

Source: Department of Health.

Poliomyelitis67
Triple (DPT)*68
Double (DT)88
Measles69

Health education

It is becoming widely recognised that to a large extent our health is a direct result of how we live, work, and interact with others and with our environment. In short, our health is a result of how we behave.

Health education is the basis of health promotion and aims to foster individual and community self reliance.

The Health Education Service of the Department of Health develops health education projects and provides support, resources and advice to the department and area health boards. A major role is to provide health education initiatives that support the national health goals (see section 8.1, Organisation of health services), ‘World Health Day’ and ‘Smokefree Week’.

This is done through developing and distributing promotional material, and through mass media campaigns.

Over the last year promotional material and other resources have included the ‘elderly project’, cervical cancer prevention for teenagers, a smokefree industrial workplace kit, baby health care resources, a food hygiene kit, a dental kit, and AIDS campaign support materials.

The campaigns, which have been conducted through radio, television and the press, included the ‘Kick It In the Butt’ anti-smoking campaign; a publicity campaign to support new legislation prohibiting the sale of cigarettes to people under 16; ME awareness week (myelagic encephalomyelitis) also known as chronic fatigue syndrome; an AIDS prevention campaign and seminars.

Printed materials are also produced, and an audio-visual library is available to area health boards and other health-related agencies.

Health education training, formerly offered by the department, will shortly tranfer to a university.

Alcohol

In New Zealand problem drinking is a major public health issue. Problem drinking covers not only those who are dependent on alcohol (and who are usually referred to as alcoholics) but also those who as a result of their drinking cause problems for themselves or others. These resulting problems may range from illness or accidents to financial problems, violence, and family breakdown.

An indication of the prevalence of alcohol problems comes from a 1986 Christchurch study of people aged 18–64 years. It was found that 19 percent had met criteria for alcohol abuse and/or alcohol dependence at some time in their lives. Assuming that Christchurch is similar in this respect to the rest of New Zealand, then more than 380 000 people in New Zealand have had psychiatrically classifiable alcohol abuse and/or alcohol dependence at some time in their lives. An additional 17 percent (more than 340 000 New Zealanders) were problem drinkers at some time in their lives.

Alcohol consumption for the year ended June 1989, in 750 ml bottles, was the equivalent of 204 bottles of beer, 25 bottles of wine and 6 bottles of spirits for every person aged 15 years and over. This was including those who do not drink, or rarely drink, alcoholic beverages. Consumption of alcohol per person 15 years and over is 16 percent less than its peak in 1978. Nonetheless, consumption of alcohol per person 15 years and over in 1989 is still 10 percent higher than it was 20 years ago.

The Alcoholic Liquor Advisory Council (ALAC) continues to fund a multi-disciplinary alcohol research unit in association with the Medical Research Council and the University of Auckland School of Medicine, and also supports other independent research projects. The council has abstracted New Zealand alcohol research for publication and for on-line use through the National Library's ‘Index New Zealand’ computerised information system. An ALAC library and information resource centre provides pamphlets, posters, and films.

The majority of alcohol dependence cases are dealt with on an outpatient basis. At alcohol and/or drug outpatient treatment agencies, almost 8000 new-to-agency outpatients were treated in 1987 and during this time at least 1864 people received help in dealing with someone else's alcohol and/or drug problem. In 1987, 2708 people were admitted or readmitted for inpatient alcohol treatment. Employee Assistance Programmes continue to be developed by ALAC, providing assistance not only for those in the workplace who have alcohol problems but also for any type of personal problem that affects work performance.

In the health promotion area, ALAC funds mass media advertising to raise the level of awareness of alcohol-related problems. The council has also sponsored an alcohol and drug education programme in schools, which is currently being promoted by the colleges of education. A wide variety of pamphlets and posters and more specialised information is available through the regional offices and the main library at the national office of ALAC. Contributions are made to the funding of community workers and groups around the country' who are working to promote healthy choices about alcohol in their areas, such as drink-drive programmes.

The council also provides to the Government, government departments and other agencies, advice and statistics on control policies, treatment methods and facilities, and other alcohol-related matters.

See also section 21.1, controls on trading.

Dental health

New Zealand's dental health service combines a school dental service for children, dental benefits for adolescents, and private practice for adults. Major hospitals also provide dental services for inpatients and other special groups. The skills of dentistry are taught at a school for dental nurses in Wellington and at the School of Dentistry, University of Otago.

School Dental Service. This service works to maintain a high standard of dental health of pre-school and school children by care, starting at the age of two-and-a-half and continuing through to the highest class at primary or intermediate school.

School dental nurses, after completing the two-year training course, are appointed to school dental clinics where children are given routine dental care.

The dental care involves examination, disease prevention measures, fillings in deciduous (first) and permanent teeth, extraction of teeth and dental health education. Some children are referred to dentists for additional care which is beyond the scope of the school dental nurses. The cost of such care is usually met as a special dental benefit. Orthodontic treatment and some other specialist services are not provided as part of school dental service or dental benefit programmes but can be obtained privately.

For children leaving the care of the School Dental Service at the end of their primary schooling, the number of filled teeth was down to an average of 2.5 per child in 1989, and 28.5 percent had no fillings at all in their permanent teeth.

Dental services for teenagers. Children who remain at school after age 16 and qualify for the extended family benefit, or who are otherwise dependent upon parents for support, continue to receive dental benefits up to age 18.

Dental research. The dental unit of the Medical Research Council carries out research on a wide range of dental problems. Further research is undertaken by the School of Dentistry at the University of Otago.

Fluoridation. Hastings (1954) and Lower Hutt (1959) were the first cities in New Zealand to adopt fluoridation. In the years 1965 to 1970 many other towns and cities implemented fluoridation schemes and by 1980 about 55 percent of the population lived in areas with fluoridated water supplies.

In recent years several towns and cities have decided to cease fluoridation. As a result of the widespread availability of fluoride from sources other than fluoridated water, principally toothpaste, the difference in dental decay rates in fluoridated and non-fluoridated communities is being debated.

Rehabilitation of disabled people

During 1990 the Department of Health created a ‘health of older people’ programme. Under this programme responsibility for funding and continuing care for people with intellectual or physical disabilities will move to the Department of Social Welfare with effect from 1 July 1990. Area health boards will retain responsibility for medical care for all of these groups.

Assistance to the disabled is described in chapter 7, Social welfare.

Health research and development

New Zealand Communicable Disease Centre. In February 1990 the former National Health Institute became the New Zealand Communicable Disease Centre. It now provides epidemiological as well as laboratory services in the field of infectious diseases. A new surveillance unit has also been established. Four units cover medical and environmental microbiology, reference testing, quality assurance and training services. The centre works closely with area health boards to achieve better prevention (through immunisation), diagnosis, and control of infectious diseases.

Health Research Services. This unit is a service group within the Department of Health with research and evaluation functions. The unit carries out, advises on, and supports research on health and health services and publicises the findings. These studies are designed:

  1. To improve the level of knowledge and understanding about health services, trends in health issues and the social and economic factors influencing health; and

  2. To provide an informed base for decision-makers.

It has contact with university and medical researchers; hospital managers and board members; ward, clinic and office staff; and many others. The information is used to evaluate existing policies, to help in planning new policies and to increase understanding about health issues.

Current studies include: health promotion among the elderly; area health boards; AIDS; rural health services and needs; hospital waiting lists; health facts; complementary therapies; cot deaths; women's health issues; alcohol; and retirement.

Current evaluations include: diabetes services; asthma services; ‘Well Women’ clinics; the needle exchange scheme; and primary health care initiatives.

Medical Research Council. The Medical Research Council is the major organisation supporting medical research in New Zealand, and acts as the central co-ordinating body. The council was established in December 1937 as a committee of the Department of Health. It became incorporated by the Medical Research Council Act 1950 as an independent body, though it is largely financed by a government grant. It can also receive bequests and donations.

The functions of the council are:

  1. To initiate, foster and support medical research;

  2. To give information, advice and assistance to those concerned with medical research; and

  3. To collect and distribute scientific information, including publishing reports.

A Health Research Council Bill, before a parliamentary select committee at the time of going to press, provides for replacement of the council by a new statutory body, the Health Research Council of New Zealand on 1 July 1990.

The council supports research in its own units (virus, dental and toxicology groups) and through project grants to research groups in universities and hospitals. It also awards scholarships, fellowships and travel grants to individuals, and assists with the staging of scientific meetings. In 1989 the council supported the equivalent of about 360 full-time research workers. The financial resources available to the council in 1989 were $14.7 million. Support is currently being provided in most fields of medicine.

Although applications in all research fields are considered, the council particularly welcomes applications from those equipped to undertake research or research training in medical or medico-social fields and disciplines where unique opportunities exist in New Zealand, such as Maori and Pacific Island Polynesian health and epidemiological research. Other fields of research sponsored include:

  • Health of the very young and the elderly;

  • Unintentional injury;

  • Women's health; and

  • Public health aspects of, for example, communicable diseases, mental health, primary health care, health education/promotion, health economics and health services delivery.

The council is responsible for maintaining a balance in the research supported throughout New Zealand and liaises closely with other medical research funding bodies. It also represents the medical research community on other bodies and has links with overseas research funding organisations.

Health statistics. The National Health Statistics Centre is responsible for the collection, analysis and distribution of information about the health status of New Zealanders and the use of health care resources. It liaises with organisations and institutions both within and outside New Zealand, and is a forum for new ideas and techniques to improve health.

Deaths by causes

The World Health Organisation's International Classification of Diseases recommends basing classification of deaths by causes on the concept of the underlying cause. The certifier's statement largely determines the cause to which a death is classified, but to obtain more accurate data reference is also made to all autopsy reports received, cancer case registrations, coroners' reports and hospital case summaries.

Medical practitioners certified 81 percent of deaths registered in 1986, and 19 percent were certified by coroners. Of the deaths certified by doctors, 9 percent were subject to autopsy, compared with 99 percent of deaths certified by coroners. Overall, 26 percent of all deaths had autopsies performed.

New Zealand adopted the ninth revision of the International Classification of Diseases in 1979. As a result, care must be taken when comparing figures since 1979 with those for previous years.

Table 8.8. MAJOR CAUSES OF DEATH*

Cause of deathNumber of deathsRate per million of mean population
198419851986198419851986

* Further details of causes of death are available from the National Health Statistics Centre.

Source: National Health Statistics Centre.

Malignant neoplasm5,8886,1676,2211,8071,8811,898
Diabetes mellitus341397409105121125
Chronic rheumatic heart disease123147127384539
Hypertensive disease254277254788477
Ischaemic heart disease7,1967,3407,4552,2092,2392,274
Other forms of heart disease9031,0811,064277330325
Cerebrovascular disease2,8112,8832,855863879871
Disease of arteries, arterioles, and capillaries581686633178209193
Pneumonia1,0631,3991,203326427367
Bronchitis, emphysema, and asthma709766637218234194
Other diseases of respiratory system8241,2211,001253372305
Peptic ulcer176229210547064
Cirrhosis of liver126132113394034
Nephritis, nephrotic syndrome and nephrosis183201236566172
Congenital anomalies212216234656671
Birth injury, difficult labour, other anoxic and hypoxic conditions, and other causes of perinatal mortality129134160404149
All other diseases2,0932,2832,201642696692
Motor vehicle accidents710747782218228239
All other accidents610731681187223208
Suicide and self-inflicted injury389338414119103126
All other external causes62109162193349
          Total, all causes of death25 38327 48427 0527 7908 3828 252

Ischaemic heart disease, malignant neoplasms (cancer), and cerebrovascular disease were again the leading causes of death in 1986 (the latest year for which data is available) and collectively accounted for approximately 61 percent of all deaths: ischaemic heart disease accounted for 28 percent of deaths, malignant neoplasms for 23 percent, and cerebrovascular disease for approximately 11 percent.

Further statistics on causes of death can be found in section 8.5, Accidents. For general health statistics see section 8.4, Hospitals.

Cancer. In New Zealand in 1986 nearly one death in four was caused by cancer. The cancer crude death rate has increased over the latest eight years for which figures are available, from 171.7 per 100 000 population in 1979 to 188.1 in 1985 and 189.8 in 1986.

Table 8.9. DEATHS FROM CANCER, 1986

Age groups, in yearsMalesFemales
NumbersRate per 100 000 of population at ages givenPercentage of total death at ages givenNumbersRate per 100 000 of population at ages givenPercentage of total deaths at ages given
Under 596.92.164.91.9
5–14217.622.6114.115.9
15–24248.14.8134.58.2
25–4414129.616.518939.341.4
45–64962319.730.1842281.944.8
65 and over2,2071 533.123.31,796899.818.6
          All ages3 364207.223.12 857172.722.8
Source National Health Statistics Centre.

A detailed report on cancer mortality and morbidity in New Zealand is published annually by the National Health Statistics Centre. It covers mortality from cancer and surveys all cases reported to the National Cancer Registry.

Ninety-three percent of deaths from cancer during 1986 were at 45 years of age or above, and 64 percent were at 65 years of age or above. The lungs continue to be the major site in male deaths from cancer and 7 percent of all male deaths in 1986 were caused by lung cancer. The breasts are the major cancer site in females and accounted for 4 percent of all female deaths.

Table 8.1. DEATHS FROM CANCER AT SELECTED SITES

SiteSexNumbersRates per million mean population
198419851986198419851986
Buccal cavity and pharynxM697475434546
 F333341202025
OesophagusM7510185466252
 F465250283130
StomachM200206214124127132
 F119119131737279
Large intestineM294302297182186183
 F325338404198205244
RectumM17718015810911197
 F119116114737069
Bronchus, trachea, and lungM975866949602532584
 F307331329187200199
BreastM213112
 F504565529307342320
Cervix uteriF989789605954
Corpus uteriF514752312831
Ovary, fallopian tube, and broad ligamentF150153139919384
ProstateM335351360207216222
Bladder and other urinary organsM164181172101111106
 F6710377416247
Skin, all formsM115127118717873
 F867487524553
BrainM869584535852
 F837664514639
Lymphosarcoma and reticulum-cell sarcomaM273029171818
 F212427131516
LeukaemiaM108103116676371
 F78100104486163
All other and unspecified sitesM610723704377444434
 F564591620344358375
          Total cancer deathsM3 2373 3183 3642 0002 0392 072
 F2 6512 8492 8571 6161 7251 727
Source: National Health Statistics Centre.

Infant and perinatal mortality. An infant death is defined as a live-born infant dying before the first year of life is completed. A neonatal death is defined as the death of a live-born infant before the 28th day of life; a post-neonatal death as the death of a live-born infant between the 28th day and the first year of life. Perinatal deaths consist of stillbirths and deaths in the first week of life. The late foetal death (stillbirths) and the perinatal mortality rate are calculated per 1000 total births (stillbirths plus live births), while the death rate for neonatal and infant death is calculated per 1000 live births.

Table 8.11. MAORI AND NON-MAORI PERINATAL MORTALITY RATES, 1986*

Category of deathMaoriNon-MaoriTotal population
NumberRateNumberRateNumberRate

* Per 1000 total births (stillbirths plus live births).

Source: National Health Statistics Centre.

Late foetal243.72284.92524.7
Early neonatal284.31803.92083.9
Perinatal528.04088.84608.7
Neonatal375.72345.12715.1
Post-neonatal639.72665.73296.2
Infant10015.450010.860011.4

Table 8.12. INFANT MORTALITY RATES FOR SELECTED COUNTRIES, 1986*

CountryYearAge of child
Under 1 yearUnder 1 day1–7 days7–28 days28 days to 1 year

* Per 1000 live births. Later years not available.

Sources: World Health Statistics Annual 1988; Deaths, Australian Bureau of Statistics 1986; Childhood Mortality Statistics, England and Wales 1986.

Australia19868.93.01.41.03.4
Denmark19868.12.11.61.33.0
England and Wales19869.42.41.81.042
Netherlands19867.81.82.20.83.0
Norway19867.92.11.11.03.7
Sweden19865.91.41.90.62.0
New Zealand198611.42.51.41.26.2

The principal causes of infant mortality are shown in table 8.13. The cause of death has been selected according to the main disease affecting the neonate, with a specific code for sudden infant death syndrome.

Table 8.13. PRINCIPAL CAUSES OF INFANT MORTALITY FOR MAORI AND NON-MAORI, 1986

Cause of deathMaoriNon-MaoriTotal population
Number of deathsRate per 1000 live birthsNumber of deathsRate per 1000 live birthsNumber of deathsRate per 1000 live births

* Excludes 25 sudden infant deaths (6 Maori and 19 non-Maori) where another condition was also present at time of death and, in accordance with WHO ICD coding rules, death was classified to that other condition.

Source: National Health Statistics Centre.

Infectious and parasitic diseases30.590.2120.2
Malignant neoplasm
Diseases of the nervous system10.2160.3170.3
Diseases of the circulatory system20.340.160.1
Diseases of the respiratory system91.4260.6350.7
Diseases of the digestive system60.160.1
Congenital anomalies213.21362.91573.0
Perinatal causes—
     Birth injury50.150.1
     Respiratory distress syndrome60.9370.8430.8
     Other anoxic and hypoxic conditions30.5150.3180.3
     Immaturity40.6260.6300.6
     Other perinatal causes60.9541.2601.1
Sudden infant death syndrome*426.41453.11873.5
Accidents, poisonings, and violence (external causes)30.5120.3150.3
Remainder (all other causes)90.290.2
          Total, all infant deaths under one year10015.450010.860011.4

Maternal deaths. Maternal deaths from complications of pregnancy, childbirth and the puerperium numbered seven in 1986, with a rate of 1.3 per 10 000 live births.

Maternal deaths occurring during pregnancy or within three months of delivery, but not due to complications of pregnancy or childbirth or the puerperium numbered 12 in 1986 with a rate of 2.3 per 10 000 live births.

Abortion. Abortion is permitted by New Zealand law in certain circumstances. The main conditions required are that the gestation of the pregnancy is not more than 20 weeks and that continuation of the pregnancy would result in serious danger (not being danger normally associated with childbirth) to the life, or to the physical or mental health of the woman or girl: or that there is a substantial risk that the child, if born, would be so physically or mentally abnormal as to be seriously handicapped. The Crimes Act 1961 (as amended) sets out when an abortion would be unlawful.

The Contraception, Sterilisation and Abortion Act 1977 sets out the referral procedure where a woman seeks an abortion. It also sets out the requirements when a case is determined. If, after consideration of a case, two specially appointed consultants both believe that the provisions of the law can be met, an authorising certificate is issued.

To supervise the workings of the abortion law a three-member committee, known as the Abortion Supervisory Committee, was established under the Act.

New Zealand's abortion law is kept under review by the committee, which also licenses institutions for the performance of abortions, appoints certifying consultants to consider cases, and liaises with all those providing facilities, both public and private.

Counselling advisors also monitor counselling services for women seeking advice about their pregnancy and keep the committee informed on related issues.

Table 8.14. ABORTIONS ACCORDING TO AGE GROUP

Age group198619871988
PercentageNumberPercentageNumberPercentageNumber
11  
12  
130.0650.0760.055
140.63510.52460.4747
151.891521.751541.54155
163.803063653213.44346
174.823884.594034.63465
185.654555.624945.78581
195.984826.255496.26629
20–2430.302,44128.842,53529.292,942
25–2921.801,75623.522,06723.702,380
30–3413.891,11914.671,28914.431,449
35–398.717027.586667.97800
40–442.171752.622302.35236
45 and over0.30240.33290.099
          Total100.008 056100.008 789100.0010 046
Source: Abortion Supervisory Committee.

Table 8.15. GROUNDS ON WHICH ABORTIONS WERE AUTHORISED

Grounds1985198619871988
Serious danger to physical health20223416
Serious danger to mental health6,9017,8398,5729,805
Combination of serious danger to physical and mental health11010186102
Substantial risk of abnormal child42363942
Incest..3
Offence under s. 131 Crimes Act1
Mother severely subnormal321
Serious danger to mental health and risk of abnormal child40425567
Serious danger to physical and mental health and substantial risk of abnormal child24
Serious danger to mental health and offence under s. 131 Crimes Act3222
Serious danger to mental health and woman severely subnormal2
Other multiple grounds4914
          Total71308 0568 78910 044
Factors of alleged rape taken into account5482  
Source: Abortion Supervisory Committee.

Table 8.16. ABORTION RATES AND RATIOS: NEW ZEALAND AND OTHER LOW FERTILITY COUNTRIES

Country*YearRate per 1000Ratio per 1000
Total populationWomen 15–44BirthsBirths plus abortions

* With the exception of New Zealand, Sweden, England and Wales data have been obtained from the Alan Guttmacher Institute.

Source: Abortion Supervisory Committee.

New Zealand19862.510.5149130
 19872.711.3155134
 19883.012.7174148
Australia19843.515.2227185
Canada19862.510.2170146
Denmark19874.118.3371270
England and Wales19862.913.5223183
France19843.214.9233189
German Federal Republic19841.46.4149129
Japan19874.118.6378275
Netherlands (residents only)19861.35.39889
Sweden19874.119.8331249
United States19856.728.0422297

8.4 Hospitals

Hospital administration

New Zealand's public hospitals and hospital-based services are administered by area health boards. Members may be either elected or appointed to these boards, and their responsibilities and those of the Department of Health and the Minister of Health are set out in the Area Health Boards Act 1983.

The role of the Department of Health is to advise the minister on the extent and standard of hospital and allied services, and public health. The building requirements to provide these services, the numbers and levels of the main groups of professional staff to be employed are largely the prerogative of the boards concerned. The appropriate annual financial grants, and the measure of financial assistance to be given to private hospitals (including loan finance) are determined by the minister. The department also licenses private hospitals, inspects hospitals, and compiles financial and statistical data about them. By December 1989 a national network of 14 area health boards had been established.

Hospital treatment in public hospitals is free. Private hospitals, which provide about one-fifth of the available beds, receive partial payment from the state, depending on the type of treatment. The balance of fees may be claimed from the patients. Hospital and home nursing services involve the Department of Health in establishing and helping to maintain minimum standards of nursing service in institutions such as general hospitals and homes for the aged; in advising, inspecting and reporting on such services in hospitals; and advising the Minister of Health on nursing.

Advisory boards, committees and councils also help prepare health policies and programmes and, in certain cases, to administer government policies or programmes. Such agencies enable the minister and the Department of Health to draw on expert advice and wide experience. They also ensure that non-departmental people with up-to-date knowledge, experience, and responsibility in particular areas of health play a worthwhile part in health administration.

Hospital accommodation

Public hospitals. At 31 March 1989 public hospitals provided 23 158 beds throughout New Zealand.

A total of 465 024 inpatient and long-stay admissions to public hospitals was recorded for the year ended 31 March 1989. This figure, which included people in surgical, medical, maternity, and psychiatric beds and non-hospital beds in old people's homes, was equivalent to 14.0 percent of the population. The 1986–87 figure was 442 129.

Outpatient and daypatient attendances (excluding X-ray, laboratory and pharmacy diagnostic services) at public hospitals totalled 4 138 359 and 256 213 respectively for the year ended 31 March 1989, compared with 4 370 685 and 352 313 in 1987.

As at 31 March 1989 there were 60 284 names on surgical waiting lists for admission to public hospitals. This compares with 50 804 on waiting lists at 31 March 1987.

Table 8.17. BEDS IN PUBLIC INSTITUTIONS, 1989*

Type of bedBeds availableAverage number of occupied beds per day
NumberProportion per 1000 of populationNumberProportion per 1000 of population

* Year ended 31 March.

Source: National Health Statistics Centre.

General13,4244.59,9243.0
Maternity2,1290.61,2770.4
Psychiatric and intellectually handicapped6,9842.15,7421.7
          Total hospital beds22 5376.816 9435.1
Non-hospital beds6210.24990.1
          Total23 1587.017 4425.2

Private hospitals. At 31 March 1988 the 173 licensed private hospitals provided a total of 6194 beds.

Table 8.18. PRIVATE HOSPITAL BEDS*

Type of hospitalNumber of hospitalsLicensed beds
198619871988198619871988

* As at 31 March.

† Geriatric/longstay medical.

Source: National Health Statistics Centre.

Maternity11..3322
Medical and surgical1625..6249061,409
Medical, surgical and/or geriatric150146..5,3135,1464 763
Maternity, medical, and surgical11..102102 
Psychiatric/geriatric..
          Total1681731736 04261576194

Public hospital patients

Principal diseases and disabilities. Detailed statistical information is supplied to the Department of Health about all patients discharged from, or dying in, public hospitals in New Zealand.

Table 8.20 shows the principal diseases and injuries treated in public hospitals in 1987, together with average days stay and conditions as a percentage of total cases. The disease headings are the 50 disease group categories of the International Classification of Diseases.

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 condition for which the patient was admitted, regardless of what other unrelated diseases may have been present or developed during the stay in hospital.

Length of stay in public hospitals. The average length of stay in public hospitals in 1987 was 9.5 days. Among sufferers from specified diseases, the longest average stays were made by those with psychoses (55.9 days) and cerebrovascular disease (45.3 days) followed by patients with other diseases of the nervous system (28.2 days).

Table 8.19. AGE AND SEX OF PATIENTS ADMITTED TO PUBLIC HOSPITALS, 1987*

Age groupMalesFemalesTotal

* Year ended 31 December

Source: National Health Statistics Centre.

0–426,88719,59746,484
5–99,2036,28715,490
10–147,6786,16513,843
15–1911,02918,92629,955
20–2410,70535,95746,662
25–298,83545,02153,856
30–347,66730,09037,757
35–396,77615,58922,365
40–446,2159,70215,917
45–496,7708,31015,080
50–547,5897,60815,197
55–5910,3027,91418,216
60–6412,0339,19821,231
65–6912,89010,53823,428
70–7412,50411,56724,071
75–7911,16811,22622,394
80–846,6629,00415,666
85 and over3,8827,88311,765
          Total178 795270 582449 377

Table 8.2. DISEASES AND CONDITIONS TREATED IN PUBLIC HOSPITALS (INCLUDING READMISSIONS) DURING 1987

Diagnostic groupTotal discharges or deaths in public hospitalsPercentage of all casesAverage stay (days)
Infectious and parasitic diseases (except tuberculosis)7,9741.86.0

* Carcinoma-in-situ, and malignant neoplasm of lymphatic and heamatopoietic tissue.

† Neoplasms of uncertain behaviour or neoplasms of unspecified nature.

‡ Includes diseases of veins and lymphatics.

Source: National Health Statistics Centre.

Tuberculosis2840.115.9
Malignant neoplasms*26,4685.911.4
Benign neoplasms4,7051.16.2
Disorders of thyroid gland5990.19.0
Diabetes mellitus3,1800.717.1
Other endocrine, nutritional, metabolic and immunity disorders1,9170.411.0
Diseases of blood and blood-forming organs2,4860.617.6
Psychoses4,6161.055.9
Other mental disorders5,0941.114.9
Disorders of the eye and adnexa6,8661.55.9
Diseases of ear and mastoid process4,5991.02.9
Other diseases of the nervous system6,5501.528.2
Acute rheumatic fever and chronic rheumatic heart disease7350.215.5
Ischaemic heart disease15,4563.49.8
Hypertensive disease and other forms of heart disease10,6112.414.4
Cerebrovascular disease7,4161.745.3
Diseases of arteries, arterioles and capillaries3,9850.914.8
Other diseases of circulatory system5,2061.27.0
Acute respiratory infections and influenza5,6461.33.9
Pneumonia5,1001.117.4
Chronic obstructive pulmonary disease and allied conditions17,6283.96.6
Chronic disease of tonsils and adenoids3,5920.83.6
Other diseases of respiratory system5,3431.25.9
Diseases of oral cavity, salivary glands and jaws2,7510.62.3
Diseases of oesophagus, stomach and duodenum4,6491.07.6
Appendicitis4,3471.05.1
Hernia of abdominal cavity4,6611.04.7
Non-infective enteritis and colitis and other diseases of intestines and peritoneum7,1601.68.3
Other diseases of digestive system6,1941.49.3
Diseases of urinary system7,3571.68.0
Diseases of male genital organs4,0270.98.5
Diseases of breast and inflammatory disease of female pelvic organs4,2761.03.3
Other disorders of female genital tract11,2802.54,4
Complications of pregnancy, childbirth and the puerperium (except abortion)70,07815.65.9
Pregnancy with abortive outcome8,2421.82.0
Diseases of skin and subcutaneous tissue6,3721.48.9
Arthropathies and related disorders, dorsopathies and rheumatism except rheumatic fever14,5283.212.8
Osteopathies, chondropathies and acquired musculoskeletal deformities2,3970.514.4
Congenital anomalies6,2861.48.6
Certain conditions originating in the perinatal period9,0952.010.0
Symptoms, signs and ill-defined conditions25,3505.76.7
Fractures19,8004.414.7
Dislocations, sprains and strains of joints and adjacent muscles2,6320.64.7
Intracranial injury (except skull fracture)7,1571.63.9
Laceration and open wound6,8891.55.1
Burns1,3580.312.4
Poisoning by drugs, medicaments and non-medicinal substances4,1750.93.3
Other injuries and adverse effects, and late effects of injuries14,7133.39.7
Special admissions without current complaint or reported diagnosis and for elective procedures37,5478.46.6
          All conditions449 377100.09.5

Accident cases. During 1987 the two largest categories of accident came under the headings ‘accidental falls’ and ‘other accidents’ (which includes, for instance, accidents caused by cutting and piercing instruments, machinery, falling objects, fire and hot objects). Victims of accidental falls also had the longest aggregate stay in hospital. This was because of the long period spent in hospital by many elderly people who had sustained fractures of the femur in falls. More than one in four patients had been injured in a fall of some kind.

Motor-vehicle traffic accidents were the third largest group and had the second largest aggregate stay.

Table 8.21. ACCIDENT CASES TREATED AS INPATIENTS IN PUBLIC HOSPITALS (INCLUDING READMISSIONS), 1987*

type of accidentTotal casesPercentage of all accident casesAverage stay (days)Aggregate stay (days)Aggregate stay as percentage of total

* Year ended 31 December.

Source: National Health Statistics Centre.

Transport—
     Railway320.123.17400.1
     Motor-vehicle traffic10,61717.310.6112,20117.2
     Motor-vehicle non-traffic6871.18.55,8660.9
     Other road vehicles2,0823.44.79,8241.5
     Water1830.35.49850.2
     Air1080.29.51,0240.2
     Vehicle accidents not elsewhere classifiable9- -5.650
          Subtotal, transport13 71822.39.5130 69020.1
Non-transport—
     Accidental poisoning1,2322.01.92,3450.4
     Accidental falls15,24524.816.2246,12537.8
Surgical and medical complications and misadventures7,11911.614.3101,63315.6
Late effects of accidental injury3,7886.214.956,4578.7
Adverse effects of drugs, medicaments, and biological substances1,4302.38.111,6011.8
Suicide and self inflicted injury3,0154.96.619,8153.1
Homicide and injury purposely inflicted by other persons2,5124.13.99,8061.5
Legal intervention by police102.222
Injury undetermined whether accidentally or purposely inflicted1810.34.78430.1
Injury resulting from operations of war48.032
Other accidents13,21421.55.471,81511.0
          Subtotal non-transport47 75077.710.9520 49479.9
          Total468100.010.6651 184100.0

Accidents at home. A high percentage of non-transport accidents, especially those involving young children and elderly people, occur at home. Domestic accidents are included by type of accident in the previous section, and are listed separately in the table below. Table 8.22 shows the number of patients discharged from, or dying in, public hospitals after treatment for injuries from accidents at home. It includes only inpatients in public hospitals, not the large numbers of home accident cases treated in outpatient departments, doctors' surgeries, and at home.

Table 8.22. INPATIENTS IN PUBLIC HOSPITALS AFTER ACCIDENTS AT HOME, 1987*

Cause of accidentTotal patientsAggregate stay (days)

* Year ended 31 December.

Source: National Health Statistics Centre.

Accidental poisoning by—
     Drugs and medicaments5901,041
     Petroleum products and other solvents103146
     Agricultural and horticultural preparations other than plant foods or fertilisers6489
     Noxious foodstuffs and poisonous plants4647
     Other solid and liquid substances112170
     Gases and vapours2435
Accidental falls6,526117,273
Struck by falling objects107741
Accidents caused by cutting and piercing instruments1,5825,852
Accidental burns89211,453
Accidents caused by foreign bodies5991,241
All other and unspecified accidents1,6989,196
          Total12 343147 284

For further accident statistics, see section 8.5, Accidents.

Psychiatric hospitals and hospitals for the intellectually handicapped

Nine psychiatric hospitals and four hospitals for people with intellectual handicaps are controlled by area health boards. One hospital, Lake Alice Hospital, near Marton, provides for maximum security patients from throughout the country.

Funding for these hospitals has been fully integrated with that of public hospitals since 1978. Psychiatric units have also been developed at public hospitals. There are currently 17 units.

The Mental Health (Compulsory Assessment and Treatment) Bill 1989, expected to come into effect during 1990, will remove the requirement for psychiatric hospitals to be separately designated from public hospitals. Psychiatric security institutions will continue to be separately designated.

A detailed report, Mental Health Data, is published annually by the National Health Statistics Centre. It contains administrative and clinical data about first admissions and readmissions (including replacements from leave), discharges, and deaths for all inpatients under psychiatric care. The report also presents information about psychiatric disorders in terms of age and sex, place of residence, ethnicity and length of stay.

Table 8.23. PSYCHIATRIC AND INTELLECTUALLY HANDICAPPED PATIENTS: NUMBERS AND RATES*

Year ended 31 DecemberPatients in psychiatric hospitals and hospitals for the intellectually handicappedPatients in psychiatric units of public hospitals
Average number residentRateAverage number on leaveRateAverage number totalRateAverage number residentRate

* Per 100 000 mean population. Year ended 31 December.

† Refers only to committed and special patients.

Source: National Health Statistics Centre.

19836,927214.52,24669.59,173284.02969.2
19846,715205.62,06263.38,777269.42999.2
19856,463197.12,01961.68,482258.72979.1
19866,170188.21,83756.08,007244.22999.1
19875,788174.91,68651.07,474225.12788.4

Table 8.24. RATES OF FIRST ADMISSION TO PSYCHIATRIC HOSPITALS*

YearAgesTotal all ages
0–910–1920–2930–3940–4950–5960 and over

* Per 100 000 mean population. Year ended 31 December.

Source: National Health Statistics Centre.

1983—
     Maori17168411324145162145194
     Non-Maori19102211162140122193136
1984—
     Maori1616843332019090115199
     Non-Maori2390205147136119146124
1985—
     Maori12192493318224109102222
     Non-Maori17110206149118102150125
1986—
     Maori921653324412862122220
     Non-Maori1510922816311798146129
1987—
     Maori1517039325311710351180
     Non-Maori1311121814912798149127

Admissions. The total number of admissions to psychiatric care during 1987 was 14 343. This total was made up of 4351 first admissions, and 9992 readmissions. Included in the readmission figure were 1350 patients replaced from leave. This last category applies only to people who may not discharge themselves, for example, special and committed patients.

The average number of occupied beds in psychiatric hospitals and hospitals for the intellectually handicapped in 1987 was about 1.7 per 1000 of population. This is the lowest figure recorded since 1876. The downward trend reflects advances in treatment and, in more recent years, the provision of alternative forms of care.

During 1987, 85 percent of first admissions and 81 percent of readmissions were on an informal (voluntary) basis. Table 8.25 shows that the two leading diagnostic reasons for entering inpatient care for all psychiatric admissions were schizophrenic psychoses and alcohol dependence and abuse.

Discharges. All informal patients are discharged outright when they leave their hospital or unit. Committed patients may also be discharged outright or they may be given ‘discharge on leave’ which means that they are still legally committed and under the authority of the hospital. There is a further statistical category ‘discharged not committed’ which is equivalent to an outright discharge in that the patient is no longer legally under the authority of the hospital. The phrase simply indicates that although the patient entered hospital on a remand or three-week basis, it was not found necessary to keep him or her for a longer period as a committed patient.

During 1987 there were 14 335 discharges from psychiatric hospitals and hospitals for the intellectually handicapped, psychiatric units of public hospitals and institutions treating alcoholism and drug addiction. Of these, 8328 were discharged from psychiatric hospitals, 412 from hospitals for the intellectually handicapped, 4290 from public hospital psychiatric units, and 1305 from institutions licensed under the Alcoholism and Drug Addiction Act 1966.

Approximately six out of every ten patients leaving hospital in 1987 had a stay of less than 30 days.

Table 8.25. DISCHARGES FROM PSYCHIATRIC HOSPITALS, 1987*

DiagnosisOutrightLeaveNot committed
NumberMean stay (days)NumberMean stay (days)NumberMean stay (days)

* Year ended 31 December:

Source: National Health Statistics Centre.

Senile and pre-senile organic psychotic conditions25121916288
Alcoholic psychoses4833631604
Drug psychoses76201586338
Other organic psychotic conditions112150263631108
Schizophrenic psychoses1,7392111,0462221623
Affective psychoses1,98648472114813
Paranoid states1215979107111
Other psychoses3005690101212
Neurotic depression and other depressive disorders1,5314567227114
Other neurotic disorders267291637237
Alcohol dependence or abuse2,44047179128411
Drug dependence or abuse573251937417
Other personality disorders742741003001112
Stress and adjustment reactions6843023133
Non-psychotic disorders of childhood and adolescence331,34649
Non-psychotic mental disorders following brain damage3316830117
Conditions associated with physical disorders689166
Mental retardation6261,776133350467
No psychiatric diagnosis2792621436314
          Total11 8471712 36825312019

Table 8.26. PSYCHIATRIC HOSPITAL DIAGNOSES, 1987*

DiagnosisTotalsFirst admissionsReadmissionsReplacements from leave

* Year ended 31 December:

Source: National Health Statistics Centre.

Senile and pre-senile organic psychotic conditions4092981047
Alcoholic psychoses112336316
Drug psychoses9735539
Other organic psychotic conditions149597119
Schizophrenic psychoses2,7062711,812623
Affective psychoses2,4514501,723278
Paranoid states2075910939
Other psychoses38815618547
Neurotic depression and other depressive disorders1,53365785224
Other neurotic disorders2861231567
Alcohol dependence or abuse2,5969261,62149
Drug dependence or abuse65627736910
Other personality disorders80227646660
Stress and adjustment reactions71341728016
Non-psychotic disorders of childhood and adolescence23149
Non-psychotic mental disorders following brain damage58172219
Conditions associated with physical disorders734
Mental retardation60370424109
No psychiatric diagnoses54721031918
          Total, all cases14 3434 3518 6421 350

Deaths. In 1987 there were 332 deaths in psychiatric hospitals and hospitals for the intellectually handicapped, psychiatric units of public hospitals and institutions licensed under the Alcoholism and Drug Addiction Act 1966. This compares with 343 in 1986.

8.5 Accidents

Accident compensation

Virtually all individuals resident in or visiting New Zealand are covered by a comprehensive system of accident prevention, treatment and compensation as set out in the Accident Compensation Act 1982.

The Act's three main objectives are: to promote safety in every walk of life; to promote the concept of prompt and effective rehabilitation of all people injured by accident so as to restore them to the fullest physical, mental, social, vocational, and economic usefulness of which they are capable; and to provide prompt, fair and reasonable compensation so that every accident victim will be treated according to his or her real needs.

Accident Compensation Corporation. The corporation is responsible for the administration of the Accident Compensation Act and is controlled by a board of directors with up to eight members, six of whom are appointed by the Governor-General on the recommendation of the Minister of Labour. It has a head office in Wellington, with regional and district offices throughout New Zealand. Its main functions are described below:

Safety— The corporation's role is to encourage the prevention of personal injury by accident (including occupational disease) and where accidents do occur to minimise their effects. It is intended that ultimately organisations and individuals be largely self-sufficient in accident prevention.

The corporation offers advice and guidance in accident reduction, and supports accident prevention research. It also conducts campaigns on specific hazards, supported by a range of accident prevention publications and resource materials. Corporation accident prevention consultants are available at a community level to assist with accident prevention activities.

Rehabilitation— The overall aim of rehabilitation is to assist injured people to reach their maximum potential, freed as far as possible from the consequences of their accident. The corporation employs rehabilitation coordinators, who are located at all its offices, to help injured persons identify their needs, and to plan and co-ordinate individual rehabilitation programmes. They also liaise with hospitals, rehabilitation agencies, government departments and employer and employee organisations to assist injured persons. The corporation also arranges any special equipment and co-ordinates housing, workplace and car modifications.

The corporation provides financial assistance to promote rehabilitation and also plays an important role in stimulating, supporting and fostering additional rehabilitation facilities.

Compensation—Compensation is paid to injured persons to allow financial security in overcoming their incapacity. For earners the scheme provides compensation for loss of earnings at the rate of 80 percent of normal average earnings. No payment is made by the corporation for the first week following the accident, but in the case of a work accident an employer is generally required to pay an employee 80 percent of his or her normal rate of pay for this period. Self-employed people also qualify for compensation for loss of earnings at the rate of 80 percent of normal average earnings after the first week.

There is a wide range of benefits, including compensation for medical and hospital expenses and the cost of transport for medical treatment to the extent permitted by regulations. Lump sum payments are made for permanent loss or impairment of bodily function and for loss of capacity to enjoy life. In the event of a fatal accident the corporation will pay reasonable funeral expense, and earnings-related compensation to dependants.

Table 8.27. ACCIDENT COMPENSATION CLAIMS RECEIVED

Claims*Year ended 31 March
19851986198719881989

* Not all claims result in compensation being paid—particularly those made to protect the claimant's entitlement to compensation for any future incapacity.

Source: Accident Compensation Corporation.

 number (000)
Earners' Account114115113100101
Motor Vehicle Account1717181818
Supplementary Account2719202024
          Total claims158151151138143
Percentage annual change3.3−4.4−8.63.6

Accident compensation is a form of compulsory insurance where the community as a whole accepts responsibility for the accidents which inevitably will afflict a proportion of its members. The community pays in three ways:

  1. Levies on vehicle owners to pay for motor vehicle accidents. (These are collected through the Post Office as agent for the corporation when motor vehicles are registered or relicensed.);

  2. Levies on employers (including the Crown) and on the self-employed to pay for other accidents to earners. (These are collected through the Inland Revenue Department as agent for the corporation.); and

  3. General taxation, which pays for other claims through the Crown Bank Account.

  4. The scheme is currently being reviewed and a possible extension to include illness disability is being considered.

Table 8.28 shows income from levies, compensation payments and administrative costs for the years ended 31 March 1988 and 1989.

Table 8.28. ACCIDENT COMPENSATION COSTS AND ADMINISTRATION COSTS*

ItemEarners' accountMotor vehicle accountSupplementary accountTotal
19881989198819891988198919881989

* Years ended 31 March. For the 1988–89 year the basis of accounting for income and expenditure has been changed from a cash to an accrual basis. Figures are therefore not comparable with earlier years.

Source: Accident Compensation Corporation.

Income—$(000)
Gross levy revenue-665,950889,866118,577186,822784,5271 076 687
Investment income51,257100,7468,39010,978180569,646113,529
Other79,098102,00079,098102,000
          Total income717 207990 611126 967197 80079 098103 805923 2711 292 217
Expenditure—
Earnings-related compensation—injured243,859315,77656,66068,30475175300,594384,254
Earnings-related compensation—dependants18,49321,04317,30519,78735,79840,830
Dependant's allowances and funeral expenses1,0401,2042,4962,41557467344,292
Non-economic loss (i.e., lump sums)93,30398,08930,69235,11121,50025,668145,496158,868
Medical treatment36,35150,7499,83913,72939,81555,73786,006120,215
Hospital treatment13,92318,1662,4403,3063,7595,30220,12226,774
Dental treatment2,3773,47076810622,1902,8025,3357,334
Conveyance for medical attention3,2783,6142,1572,3271,60318397,0387,779
Rehabilitation2,5874,1711,8872,6586968835,1707,712
Other5269,1336,0186,0473,4334,1519,97719,331
          Total compensation and medical expenditure415 736525 414130 262154 74573 64797 229619 646777 388
Financial grants—Department of Labour16,56616,93216,56616,932
Financial grants—other1,2331,530136574237191,7932,307
Levy revenue collection fee7,2537,7701,3581,6098,6119,379
General fund transfer28,38331,5928,8939,4035,0285,85642,30446,851
          Total expenditure469 172583 237140 650165 81479 098103 805688 920852 857

Accident compensation statistics. The Accident Compensation Corporation collects a number of statistics on compensated claims. Compensated claims largely exclude injuries causing less than eight days incapacity (for which the corporation is not required to pay compensation) and claims for medical treatment only (for which the doctor is normally reimbursed directly).

Statistics showing the type and location of accidents causing injury can be found later in this section, while statistics for accidental injuries treated in public hospitals appear in section 8.4, Hospitals.

Traffic accidents and road safety

Accidents on roads. Motor-vehicle accidents involving death or personal injury are required by law to be reported to the Land Transport Division of the Ministry of Transport or to the police. During the year ended 31 December 1988, there were 12 554 reported accidents resulting in 728 fatalities and injuries to 17 324 other people.

Table 8.29. ROAD ACCIDENT CASUALTIES BY TYPE, 1988

Classification of accidentsFatalInjuryTotal
Overtaking or lane change43665708
Head on (not overtaking)1811,8051,986
Lost control or ran off road on straight691,6541,723
Lost control or ran off road while cornering1983,2773,475
Collision with obstruction19899918
Rear end169881,004
At intersections or driveways—
     Vehicles moving in same direction, one turning211,1701,191
     Vehicles crossing paths, not turning251,7371,762
     Vehicles crossing paths, one turning191,1771,196
     Vehicles merging2311313
     Vehicles moving in opposite directions, one turning right1715121,529
Vehicles manoeuvring9810819
Pedestrian crossing road651,0281,093
Pedestrian—other17155172
Miscellaneous27136163
          Total72817 32418 052
Source: Ministry of Transport.

Table 8.3. AGE OF PERSONS KILLED AND INJURED IN MOTOR ACCIDENTS

Age groups (years)Killed*Injured
1986198719881986x19871988

* Killed immediately or died within 30 days of accident.

Source: Ministry of Transport.

Under 5252117393426320
    5–9192014537522472
10–14252312884901756
15–191511541435,0974,8954,070
20–241491571533,7983,5973,315
25–297989941,8172,1321,955
30–345366411,1921,2301,281
35–39504841876843885
40–44262533645657748
45–49302028465539533
50–54232020446414439
55–59242421442394385
60–64192219361328374
65–69201422309268284
70 and over467346579616655
Unknown age27x21241,038975852
          Total766x79772818 87918 73717 324

Table 8.31. ROAD USERS KILLED AND INJURED IN MOTOR ACCIDENTS, 1988

Type of casualtyKilledInjuredTotal
Driver of—
     Car2336,3846,617
     Rental car
     Taxi3030
     Van25723748
     Truck7202209
     Articulated truck
     Bus1313
     Other, including unknown32025
Motorcyclist1252,4982,623
Passenger2285,2225,450
Pillion rider21365386
Cyclist201,0811,101
Pedestrian831,1191,202
Other, including unknown23739
          Total72817 32418 052
Source: Ministry of Transport.

Table 8.32. ROAD ACCIDENT CASUALTIES AND RATES

December yearPersons killedKilled per 10000 vehicles on roadPersons injuredInjured per 10000 vehicles on roadCasualties (killed and injured) per 10 000 vehicles
19846683.417,47887.791.1
19857463.818,78392.095.8
19867673.718,75889.593.2
19877973.818,64289.693.4
19887283.417,32481.384.7
Source: Ministry of Transport.

Table 8.33. INTERNATIONAL COMPARISONS: MOTOR ACCIDENT DEATH RATES, 1985

CountryPersons killedParsons killed per 10 000 vehiclesPersons killed per 100 000 population
New Zealand7663.823.1
Australia2,8883.217.9
Great Britain5,3972.79.8
Source: Ministry of Transport.

Road safety. Road traffic is controlled by the Ministry of Transport, For further information, see section 22.4, Road transport.

Publicity directed towards road safety is carried out through the press, radio, television, and by means of posters and other advertising. Special road safety campaigns and traffic improvement courses are held from time to time.

The main emphasis in schools and colleges of education centres around integrating traffic education into school programmes. Traffic education units are co-operatively planned and implemented. Traffic officers, teachers and others in the community also work together to plan and implement traffic education interventions that are based on the special social and traffic needs of the community.

The New Zealand Defensive Driving Trust also provides a safety course for licensed drivers.

Advice on road safety policy is given to the Government by a permanent parliamentary select committee, by the Road Traffic Safety Research Council, and by a number of other bodies, including 24 road safety committees.

Motor vehicle insurance. Under the Accident Compensation Act 1982 a motor vehicle ‘scheme provides cover for everyone in respect of personal injury caused by motor accidents. There is a fund financed by premiums paid with the annual motor vehicle licence fee. See ‘Accident compensation’ above.

Water accidents

Table 8.34. DROWNINGS

LocationYear ended 31 October
1986198719881989

* Includes drownings in pools, rivers, sea and other.

Source: New Zealand Water Safety Council.

Boating25221623
Whitewater activities4332
Angling33310
Scuba diving and snorkelling41084
Swimming*2110911
River crossing434
Other water-related373
Non water-related31
          Total recreational60624555
  Non-recreational—
     Immersion accidents—
     Adult23172716
     Preschool—Pools6467
     Preschool—Other8447
Rescuing others1113
Vehicle accidents21242215
Tourism and commercial2
Commercial fishing56142
Employment related53
Floods and civil emergencies3
Suicides and homicides28151311
          Total non-recreational99719361
          Total drownings159133138116

General accident statistics

Accidents, poisonings and violence caused approximately 8 percent of total deaths in each of the years 1976 to 1980, 7 percent in 1981 and 1982, 6 percent in 1983, 7 percent in 1984 and 1985, and 8 percent in 1986.

Table 8.35. DEATHS FROM EXTERNAL CAUSES*

Causes of deathNumber of deathsRate per million of mean population
198419851986198419851986

* Registered during calendar year.

Includes falls aboard ship and from horseback.

‡ Includes drowning from water transport.

Source: National Health Statistics Centre.

Motor vehicle accidents710747782218228238
Other transport accidents594245181314
Accidental poisoning161619556
Accidental falls255319316789796
Accidents caused by machinery263125898
Accidents caused by fire and explosion of combustible material29403891212
Accidents caused by firearms7816225
Accidental drowning and submersion86133121264137
Suicide and self-inflicted injury389338414119103126
Homicide386673122022
All other external causes156185190485658
          Total deaths from accidents, poisoning, or violence1 7711 9252 039543587622

Table 8.36. DEATHS FROM LEADING EXTERNAL CAUSES BY SEX AND AGE, 1986*

Age group (in years)Motor vehicle accidentsAccidental drowningsAccidental poisoningsAccidental falls
MFMFMFMF
Under 153730168211
15–242476231344
25–3411525174341
35–4461201217
45–5433201232111
55–6429141024112
65–742622421416
75 and over192277166
          All ages56721510219172129187
Age group (in years)Suicide and self inflicted injuryHomicideAll accidents, poisonings, and violence
MFMFMF

* Registered during calendar year.

† Includes causes other than those shown in table.

Source: National Health Statistics Centre.

Under 15226888766
15–246823137410102
25–34532112825166
35–4461177118044
45–543914311146
55–643615412243
65–742412128663
75 and over1891138224
          All ages30111346271 385654

Accidental falls. There were 316 deaths duo to accidental falls in 1986. This is one accident area in which the total female mortality rate exceeds that for males; although there is an excess of male deaths over female deaths between the ages of 15 and 64 years. At 65 years of age and above, the higher life expectancy of females ensures that more elderly women than elderly men are exposed to the risk of fatal falls.

In 1986, 33 percent of fatal accidental falls occurred at home. Falls are the chief cause of death in domestic accidents, particularly for the aged and infirm.

Sites of non-transport accidents. Accidents occurring at home and in residential institutions (rest homes, hospitals, etc.) accounted for 54 percent of all fatal non-transport accidents in 1986.

Table 8.37. SITES OF FATAL NON-TRANSPORT ACCIDENTS*

Place of occurrenceNumber of accidentsRate per million of mean population
198419851986198419851986

* Excludes surgical and medical misadventure, late effects of accidental injury.

† Revised to no longer include undetermined whether purposely or accidentally inflicted injury.

Source: National Health Statistics Centre.

Home (including home premises and vicinity and any non-institutional place of residence)200237204617262
Farm (including buildings and land under cultivation, but excluding farm and home premises)262525888
Mine and quarry476122
Industrial places and premises2436267118
Places for recreation and sport7815225
Street and highway17119533
Public building (building used by the general public or a particular group of the public)639213
Residential institution (homes, hospitals, etc.)106149117334536
Other specified places7410294233129
Place not specified29388891227
          Total493616593151188181

Deaths of pre-school children. Mortality rates among children aged one to four years in New Zealand are disappointingly high. In 1986 New Zealand's age-specific mortality rate for children aged one to four was 67.6 per 100 000 compared with 32.3 per 100 000 in Sweden (1986), 42.7 per 100 000 in England and Wales (1986), and 48.4 per 100 000 in Australia (1986). Various explanations have been attempted, but the fact remains that New Zealand pre-schoolers are at a higher risk of accidental death than pre-schoolers in many other countries with similar standards of living.

Table 8.38. DEATHS OF PRE-SCHOOL CHILDREN FROM ACCIDENTS AND VIOLENCE, 1986

Age (in years)SexCauses of death
1234Total
DrowningM64111
 F325
Motor vehicle accidentsM324918
 F31127
HomicideM11
 F1214
All other external causesM1214
 F11114
          Subtotal, male 10761134
          Subtotal, female 844420
          Total 1811101554
Source: National Health Statistics Centre.

8.6 Civil defence and fire safety

Civil defence

The phrase ‘civil defence’ describes the planning and organisation of measures necessary for public safety during disasters (except for those emergencies dealt with by the normal emergency services). Communities have an obligation to take the steps necessary to prevent or reduce loss of life or distress by using their own resources and drawing on volunteers. The Ministry of Civil Defence helps local authorities to meet their obligations and co-ordinates government planning. A declaration of a state of ‘civil defence emergency’ grants special powers to: local authorities and the civil defence controllers appointed by them; the police; and the ministry's director and commissioners.

The Ministry of Civil Defence was established in 1959 as an integral part of the Department of Internal Affairs. The current concept of civil defence dates from December 1983 when the most recent Civil Defence Act came into force.

Under the Civil Defence Act 1983 every local authority has an obligation to prepare a civil defence plan, to set up a civil defence organisation, and to appoint a local controller of civil defence for the purpose of dealing with a disaster in its district should the use of civil defence measures be warranted. Neighbouring authorities may unite for civil defence purposes or may arrange for the regional council to provide civil defence services.

At 30 November 1989, 70 district and city councils had formed their own civil defence organisations or combined with other authorities. Four district councils had arranged for regional provision of civil defence services. The regional civil defence structure is described below.

Each of the 14 regional councils maintains a regional civil defence organisation except Gisborne where civil defence is covered by its district council. Every regional council prepares a civil defence plan, appoints a regional controller of civil defence, and sets up the organisation necessary for dealing with a disaster in its region if the task is beyond the capability of any one particular local or combined district civil defence organisation.

The ministry provides support through four civil defence zones, each headed by a civil defence commissioner. These civil defence operational headquarters are located in Auckland, Palmerston North, Wellington and Christchurch. The four commissioners exercise powers and functions under the general direction of the Director of Civil Defence in Wellington.

The National Civil Defence Committee—comprising the permanent heads of 14 government agencies most closely involved in disaster-relief measures, together with the Chief of Defence Staff, the chairperson of the Fire Service Commission and others—advises and assists the minister and the Director of Civil Defence in the planning and implementation of civil defence measures. The ministry also provides subsidies for local and regional civil defence work, and through the national civil defence school encourages training and planning.

A National Civil Defence Operational Headquarters is established in the sub-basement of the executive wing of Parliament Buildings. It is kept ready for use but is activated only when required. In a disaster it provides the means for co-ordinating the use of all governmental and non-governmental resources and, where necessary, for the control of the overall civil defence effort where there are demands which cannot be met by a regional council and the appropriate civil defence commissioner.

Earthquake and war damage insurance

The Earthquake and War Damage Commission administers the Earthquake and War Damage Act 1944 and regulations which currently provide property owners in New Zealand, who have purchased fire insurance, with automatic insurance cover for damage to property caused by: activities of war; earthquake shock, earthquake fire and seismic seawave (tsunami); hydrothermal activity and volcanic eruption; landslip; and land cover (damage caused by earthquake, storm, flood, hydrothermal activity, volcanic eruption and landslip.

‘Earthquake damage’ is defined as damage occurring as the direct result of earthquake or of fire caused by earthquake.

Under the Earthquake and War Damage Act 1944 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 5c for each $100 of insurance cover are collected by the insurance companies and paid into the Earthquake and War Damage Fund (less commission of 2.5 percent).

Grants may be made from the Crown Bank Account if at any time the amount in the Earthquake and War Damage Fund is not sufficient to meet the ‘awful claims on the commission.

The commission's board constituted under the Act consists of not less than five and not more than nine commissioners appointed by the Governor-General on the recommendation of the Minister of Finance. Every commissioner is appointed for a term of up to three years, but may be reappointed.

During 1988, the Government implemented its reform of the natural disaster insurance industry in New Zealand. This involved the reconstitution of the commission as a statutory corporation on 1 October 1988. Further changes are proposed. The Government is considering proposals such as compulsory disaster insurance for owners of residential property, and reforms are expected to come into effect later in 1990.

For the year ended 31 March 1988 (the latest year for which data is available) a total of 1092 claims were received. This compared with 6813 for the previous year. The breakdown of claims was: earthquake, 740; disaster, 2; landslip. 110; and land, 240. Respective figures for the previous year were 6566; 6; 67 and 747.

Earthquake claims—As a result of seismic activity, 740 claims amounting to approximately $220 000 were registered,

Disaster claims—Claims totalled two, with payments amounting to approximately $2 000.

Landslip claims—A total of 110 claims for this year resulted in payments of approximately $630000.

Land claims—A total of 240 claims for this year resulted in payments of approximately $400 000.

Fire fighting

Fire-fighting services are organised nationally as the New Zealand Fire Service.

New Zealand Fire Service Commission. The commission is the national administrative body which deals through the commanders of regions, areas and districts. There are three permanent commissioners, one (the chairperson) with a special knowledge of administration, while the other two have senior operational experience in the fire service. The Secretary for Internal Affairs is also represented. The commission owned 1209 vehicles and 617 buildings at 31 March 1988.

Organisation of fire fighting. There are six administrative regions, based in Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Dunedin. Their primary task is to co-ordinate operational units.

The fire regions are divided into fire areas, of which there are 20 in all. They are responsible for developing the firefighting resources of their areas and for the training and operational efficiency of the brigades in districts within them.

Every urban fire district which existed immediately prior to the commencement of the Fire Service Act 1975, was declared a fire district under the new Act. There has been some adjustment of fire districts since 1976. As at 1 January 1990 they numbered 269.

Nineteen of the 269 fire districts are served mainly by permanent firefighters, augmented by more than 1000 volunteers. The remaining 250 fire districts are staffed by volunteer firefighters who are an essential part of the New Zealand Fire Service. During 1988 there were 2619 employees and 7851 volunteer firefighters and fire police officers. Several women are now employed as operational firefighters, and facilities for women are provided at all permanently staffed fire stations.

Approximately 90 percent of the cost of maintaining the New Zealand Fire Service is met by the insurance industry through a levy on policies, with the remainder being met by government. For the year ended 31 March 1988 contributions from insurance companies totalled $131 100 000, while government contributed $10 653 000 compared with $23 023 000 in 1987.

Fire safety. The Fire Service Act requires the Fire Service Commission to take an active and co-ordinating role in the promotion of fire safety. Giving effect to this is a Fire Safety Division at national headquarters, with fire safety departments in each of the fire districts served by permanent firefighters providing a nationwide fire safety survey and advisory' service.

Table 8.39. INCIDENTS ATTENDED BY FIRE BRIGADES

Incidents19871988

* An exposure fire is where a fire originating in one property spreads to another property. They are subtracted from total fire incidents to reflect a clear total number of incidents attended.

Fires—
     Structure fires4,4284,657
     Vehicle fires2,8803,087
     Other property fires1,3581,996
     Oven fires640675
     Chimney fires1,6211,501
     Rubbish fires4,4794,876
     Tree, grass, and scrub fires3,9324,336
     Other fires200 
 19,53821,328
Less, exposure fires*165198
          Total, fire incidents19 37321 130
Non-fire incidents—
     Flammable liquid spills (under 30 litres)1,6561,349
     Flammable liquid spills (over 30 litres)1,030951
     Overpressure or rupture (no fire)2735
     Emergency medical calls (assistance to other agencies)381417
     Rescues (vehicle extrication, etc.)1,6171,565
     Chemical, hazardous substances486639
     Service calls3,3174,975
     Other421416
          Total, non-fires8 93510 347
False alarms—
     Malicious1,7581,650
     Defective apparatus or installation6,7197,625
     Accidental3,4733,551
     Good intent4,7525,145
          Total, false alarms16 70217 971
          Total incidents attended45 01049 448

Fire statistics. Forty-two people died as a result of property fires during 1988, compared with 34 in 1987 and 53 in 1986. In 1988 the most common suspected causes of fires resulting in fatalities were accidents with equipment (causing eight deaths) and careless disposal of smoking materials (five deaths). There were seven deaths resulting from fires of unknown cause.

Fire insurance is described in section 21.3, Insurance and superannuation.

8.7 Occupational safety and health

Administering organisations

Responsibility for administration of occupational safety and health legislation is shared among the Department of Labour, Ministry of Transport, Ministry of Energy and Department of Health. However, most of the occupational safety and health functions of the Department of Health have been delegated to area health boards. The Accident Compensation Corporation also has an important responsibility, as outlined earlier in this chapter.

During 1990 a bill was introduced to Parliament which, when passed, will consolidate all occupational safety and health legislation under one act. It will also establish an occupational safety and health commission which will advise the Minister of Labour on occupational safety and health matters including the development of regulations and codes of practice made under the new act. The commission will be made up of representatives from the New Zealand Council of Trade Unions and the New Zealand Employers Federation. The Department of Labour will be mainly responsible for the administration of the new Act, and most of the occupational safety and health functions now in other departments will be transferred to the Department of Labour during 1990.

The following text describes the transitional arrangement in place at the time of going to press (April 1990).

Department of Health. As a result of changes to legislation concerning occupational health and safety, the Department of Labour is to take over from the Department of Health, responsibility for policy initiatives and delivery of these services. The Department of Health (which was formerly responsible for occupational health through its district medical offices) will continue to contribute opinions on the health policy for the workplace. Area health boards will provide occupational health, nursing and medical services at a local level under contract to the Department of Labour. Health protection officers will contribute services within the occupational health and safety structure and in some cases may work under contract.

Legislation currently administered by the Department of Health will transfer to the Department of Labour.

Included in the Department of Health resources to be transferred will be the Occupational Health Task Force, which provides technical and scientific advice and financial resources to enable further scientific investigations in the major cities.

Future review of the process of disease notification is anticipated. The present notification of occupational diseases to the Department of Health will continue in the meantime, with subsequent transfer of this information to the Department of Labour.

The Department of Health also administers the Toxic Substances Act 1979, and has an input into the Pesticides Act 1979. The department involvement in these functions will be influenced by the resource management law reform presently being undertaken by the Government. More information about the reform is contained in section 14.2, Environmental and resource management.

Department of Labour. The Department of Labour is responsible for a wide range of legislation which relates to the safety and health of the work-force in industrial, commercial, agricultural, bush and construction undertakings. The principal statutes it administers are set out below. The department aims to promote and maintain safe and healthy working conditions in undertakings by carrying out regular inspections, investigating accidents and complaints, giving advice to employers, supervisors and workers, and publishing safety and health pamphlets, guides and codes of practice.

At 31 March 1990 the department employed in branch offices 84 inspectors of factories, 29 construction safety inspectors, 10 bush inspectors, and 14 explosives and dangerous goods inspectors. These inspectors have extensive powers to enforce compliance with the legislation, although compliance is usually achieved through the co-operation of employers and workers.

The Factories and Commercial Premises Act 1981 applies to undertakings which include places such as bakehouses, cinemas, commercial depots, factories, hotels, laundries, laboratories, mailrooms, offices, restaurants, shops, stores, theatres, telegraph and telex offices, and warehouses. The Act also covers places where motor vehicles are repaired, serviced or tested, and places where food is prepared, or cooked and sold. Regulations have been made under the Act prescribing rules for work with asbestos, abrasive blasting, electroplating, lead, noxious substances and spray coating, and for the provision of first aid facilities.

The Agricultural Workers Act 1977 requires employers to instruct agricultural workers in the dangers likely to arise at work and the required precautions, to provide first aid facilities and protective clothing or equipment as appropriate, and to prevent exposure to harmful noise.

The Bush Workers Act 1945 provides for the safety and protection of persons employed in the felling, pruning and thinning of trees, and extends to all logging operations, transportation (including sawn timbers and waste products) other than on a public road or government railway, the construction and maintenance of roads and bridges, and the shifting of any plant used in logging and related operations. The minimum standards are set out in the Safety Code for Bush Undertakings issued by the department in consultation with the industry.

The Machinery Act 1950, with certain exceptions, applies to all industrial machinery. It places an obligation on the owners of machines to securely fence moving and dangerous parts. The Act also covers amusement devices, which require a certificate from a registered engineer that the device is mechanically and structurally safe for the purpose intended. The Act also requires the testing and certification of tractor safety frames used in agricultural operations.

The Construction Act 1959 covers a wide variety of work including new construction, maintenance, and demolition of buildings, roads, harbour works, railways, canals, bridges, dams, pipelines, earthworks, and the like. Certificates of competency are issued, after examination, to scaffolders, safety supervisors and construction blasters. Registers of qualified construction divers, crane operators and construction riggers are maintained.

The Dangerous Goods Act 1974 and the Explosives Act 1957 are the main legislation providing for the safety of workers and the public in relation to potentially dangerous substances. The Dangerous Goods Act is concerned with the packing, marking, handling, carriage, storage and use of certain flammable and oxidising materials and certain compressed, liquified, dissolved and other gases. The Explosives Act is concerned with the sale, storage, carriage, use and disposal of the different types of explosives. In most areas local authorities administer the Dangerous Goods Act, subject to the direction of the Chief Inspector.

For further information on industrial inspection see section 12.4, Labour relations.

Ministry of Transport: Safety of ships—A substantial portion of the Shipping and Seamen Act 1952, administered by the Ministry of Transport, is concerned with the safety of ships and those who sail in them. This Act contains the necessary authority for implementing the provisions of the international conventions of which New Zealand is a signatory. These conventions deal principally with ships engaged on international voyages, but the Act also contains provisions for the safety of all other commercial ships plying New Zealand coastal and inland waters.

Aircraft—The Air Transport Division of the Ministry of Transport is responsible for promoting safety in all elements of private and commercial aviation. It does this by setting safety standards and maintaining a safety audit inspection system to ensure aviation safety standards are met by operators.

Boilers, lifts, and cranes—The Marine Transport Division of the Ministry of Transport carries out inspections of boilers, lifts and power cranes as required by the Boilers, Lifts and Cranes Act 1950. In the calendar year 1988 there were 30 012 inspections of boilers and unfired pressure vessels, 9198 inspections of lifts, and 3983 inspections of cranes. In 1988, 28 accident investigations were carried out under the Act, with 12 people suffering injuries. There were no fatalities.

Ministry of Commerce. There are a number of acts of Parliament which cover the occupational safety and health of workers in specific areas of the energy field. These Acts are administered and enforced by the ministry's Energy resources division. Until 1 December 1989 they were the responsibility of the Ministry of Energy, which was dissolved on that date.

Five Acts allow for the appointment of inspectors:

  • The Quarries and Tunnels Act 1982 and the Mining Act 1971 are administered and enforced by a mines, quarries and tunnels inspectorate.

  • The Coal Mines Act 1979 is administered and enforced by a coal mines inspectorate which consists of three sections: coal mines inspectors, engineering inspectors and mines rescue.

  • The Petroleum Act 1937 covers safety in activities associated with the prospecting, extraction and transporting by pipeline of petroleum and high-pressure gas. A petroleum inspectorate oversees exploration and production wells and pipelines to ensure safety standards are met.

  • The Geothermal Energy Act 1953 covers the exploration, development and use of geothermal energy—as well as setting health and safety standards.

Other legislation sets safety standards for workers and the public in electricity reticulation: the Electrical Registration Act 1979, the Electric Linemen Act 1959, Electricity Act 1968, the Electrical Supply Regulations 1984 and the Electrical Wiring Regulations 1976. Inspection is generally carried out by officers of electrical supply authorities.

The Gas Act 1982, with regulations and codes of practice, covers safety in the reticulation and use of gases, including LPG. Gas installation inspectors are employed by supplying authorities.

Contributors

  • 8.1 Department of Health; Nursing Council of New Zealand; Pharmaceutical Society of New Zealand.

  • 8.2 Department of Health.

  • 8.3 Department of Health; Alcoholic Liquor Advisory Council; Medical Research Council; National Health Statistics Centre; Abortion Supervisory Committee.

  • 8.4 Department of Health; National Health Statistics Centre.

  • 8.5 Accident Compensation Corporation; Ministry of Transport; Water Safety Council; National Health Statistics Centre.

  • 8.6 Department of Internal Affairs; Earthquake and War Damage Commission; New Zealand Fire Service Commission.

  • 8.7 Department of Health; Department of Labour; Ministry of Transport; Ministry of Commerce.

Historical

Department of Health; Department of Statistics; National Health Statistics Centre; Earthquake and War Damage Commission; Department of Internal Affairs; New Zealand Fire Service Commission; Department of Labour.

Further information

Health

Alcohol Consumption Statistics. Alcoholic Liquor Advisory Council (annual).

Alcohol/Drug Outpatient Statistics. Alcoholic Liquor Advisory Council (annual).

Alcohol-Related Social Research Abstracts: Vol. 1. Alcoholic Liquor Advisory Council, 1987.

Annual Report and Statement of Accounts. Pharmaceutical Society of New Zealand.

Cancer Data. National Health Statistics Centre, Department of Health (annual).

Commission of inquiry into Discharge of Psychiatric Patients, 1988.

Commission of inquiry into Cancer Treatment at National Women's Hospital, 1988.

Families Care: Dependent Persons and their Caregivers. Department of Health, 1987.

Hospital and Selected Morbidity Data. National Health Statistics Centre, Department of Health (annual).

Hospital Management Data. National Health Statistics Centre. Department of Health (annual).

Long-term Hospital Care for Physically Disabled Adults. Department of Health, 1987.

Medicine Distribution—A Guide for Importers, Manufacturers, Distributors and Suppliers of Medicines, Medical Devices and Related Products. Department of Health, 1987.

Mental Health Data. National Health Statistics Centre, Department of Health (annual).

Mortality and Demographic Data. National Health Statistics Centre, Department of Health (annual).

The Public Health: Report of the Department of Health (Parl. paper E. 10).

Report of the Abortion Supervisory Committee (Parl. paper E. 28).

Report of the Alcoholic Liquor Advisory Council (Parl. paper E. 26).

Unshackling the Hospitals: Report of the Hospital and Related Services Taskforce, 1988.

Women's Health in New Zealand: A Statistical Overview, 1968–1983. Department of Health, 1987.

Safety

The Accident Compensation Scheme: Interim Report on Aspects of Funding. Law Commission, 1987.

Diseases Arising from Occupation. Department of Health, 1984.

Key Statistics. Department of Statistics (monthly).

Motor Accidents in New Zealand. Ministry of Transport (annual).

Report of the Accident Compensation Corporation (Parl. paper E. 19).

Report of the Advisory Council on Occupational Safety and Health (Parl. paper G. 41).

Report of the Department of Labour (Parl. paper G. 1).

Report of the Earthquake and War Damage Commission (Parl. paper B. 11).

Report of the Ministry of Transport (Parl. paper F. 5).

Report of the National Poisons and Hazardous Chemicals Information Centre. National Toxicology Group (annual).

Report of the New Zealand Fire Service Commission (Parl. paper G. 8).

Chapter 9. Education

9.1 Administration of education

Virtually every aspect of the administration of education in New Zealand has been reviewed during the last three years.

The process began in 1987 with a comprehensive review of the broader aspects of administration and has continued into other areas such as pre-school, technical and university education.

Many of the reforms coming out of this process are only now being implemented and much of the legislative change necessary for this is happening progressively throughout 1990. New organisations have been created in some areas and others are being disestablished. As a result the following description of the education sector, whilst complete at the time of going to press, is still subject to change. Where possible the situation current at May 1990 has been described, with any changes planned for the coming months also added.

Recent reforms

In 1987 the Government appointed a task force to review education administration.

After considering several hundred submissions from individuals and interested groups, the task force presented its findings in May 1988 in the report, Administering for Excellence. It concluded that the administrative structure for education, which had existed in New Zealand in much the same form for over a hundred years, was overcentralised, overly complex, and in need of extensive change.

The report proposed that any new administration for education should be based upon choice, giving options to users of education programmes and individual learning institutions (the schools), the needs of parents and the community; cultural sensitivity and equity. It also called for good management practices so that those working in the system have detailed and clear objectives, control over resources, no overlapping lines of responsibility, and an understanding of the need to be accountable for the decisions they make.

These principles formed the basis for the proposed reforms and gave the Government a framework for setting its policy. Following 20 000 public responses to the report, the Minister of Education released the Government's policy position, Tomorrow's Schools: The Reform of Education Administration in New Zealand. This report largely affirmed the proposals, although were some departures from the task force's recommendations. The Government's report focused only on the changes to primary and secondary education.

Two other working parties considered early childhood education and tertiary' and post-compulsory education. Both working parties released reports in September 1988.

Changes in the primary and secondary service. The most significant change in the delivery and administration of primary and secondary education involves parents and the community, in partnership with the teachers previously running schools. Responsibility for the administration of the many primary and secondary schools previously controlled by education boards and regional offices of the former Department of Education has been decentralised to boards of trustees of individual schools. Each board of trustees is responsible for preparing a charter (a contract between the community, the school and the state), in consultation with the principal, the staff and the community.

The changes also provide for groups of parents representing at least 21 children to withdraw from existing arrangements and set up their own institution, provided they meet national guidelines for education.

Boards of trustees are accountable for meeting the objectives set out in their charter, and for expenditure made from bulk grants received from government to run institutions. Boards will be required to report to the Education Review Office which in turn reports directly to the Minister of Education.

Changes in early childhood education. The report of the early childhood care and education working group. Education to be More, placed emphasis on community involvement and the presence of a central agency to deliver bulk funding. An important feature of the proposed model was the establishment of an Early Childhood Development Unit to provide essential developmental work at the community level to foster new services. This unit also provides in-service training and other support/advisory services.

In February 1989, the Minister of Education released the Government's policy statement, Before Five: Early Childhood Care and Education in New Zealand, which largely incorporated the recommendations of the report.

Changes to the administration of education in the early childhood and compulsory sectors took place on 1 October 1989.

Changes proposed for tertiary education. The report of the working group on post-compulsory education and training recommended a considerable degree of decentralisation, with changes to the system of resource accountability and an increased reliance on non-public funding. A new organisation to co-ordinate, approve and monitor national educational qualifications, the National Educational Qualifications Authority was recommended, and for scholarship and research, the Public Scholarship and Research Agency was proposed.

The Government's response, expressed in the document Learning for Life: Education and Training Beyond the Age of Fifteen, incorporated many of the principles of the report, including decentralised decision-making, a common formula for government funding, greater participation in post-compulsory education and training, and the active encouragement of excellence. However, the Government proposed further study of the proposal for the setting up of a Public Scholarship and Research Agency and declared that the existing Board of Studies, which oversees secondary school awards, be disestablished. It also proposed that ACCESS training (see section 12.3, Training and employment assistance) and apprenticeships be run by a Training Support Agency working under a special arrangement with the Ministry of Education and proposed a spread of responsibility for the review and audit function.

Eighteen working groups were set up, comprising representatives from colleges of education, polytechnics, universities, unions and other representative groups.

A further document, Learning for Life: Two was released in August 1989. It summarised the Government's decisions on the recommendations of these working groups.

An implementation unit of the Ministry of Education will continue to oversee the reforms in the tertiary sector until the implementation period ends on 1 July 1990.

At the time of going to press a number of working committees had helped develop a new funding system (which will be based solely on student numbers for the whole tertiary sector) and to prepare a set of performance indicators for institutions. The new funding system will begin in 1991.

A temporary unit was established to approve the interim charters and corporate plans produced by tertiary institutions. This task was due to be completed by the end of April.

The organisation of education

Ministry of Education. This organisation is at the head of the new structure for education. It is accountable to the Minister of Education, and advises the minister on all aspects of education from early childhood to tertiary level. It also oversees the implementation of government policies, and ensures that the resources it owns or funds are properly distributed.

The ministry administers legislation, funds institutions and manages education property. It is responsible for:

  • Developing national curriculum guidelines and objectives;

  • Approving charters of educational institutions;

  • The collection, analysis and dissemination of education statistics; and

  • Managing the registration and integration of private schools.

The ministry replaced the former Department of Education from 1 October 1989 and reflects the review of educational administration described above. A major feature of the new ministry is its reduced size, brought about by the decentralisation of many of the earlier department's functions.

Under the new ministry education advisory services, special education services, curriculum and early childhood development are provided by new organisations described below.

The national office of the ministry is divided into divisions. The district operations division has locations in 11 districts to enable property and operations functions to be carried out as near as possible to institutions and agencies providing education and training.

Special Education Service. This service was established on 1 October 1989 to provide services to assist those learners from early childhood to tertiary who have special physical and learning needs.

Early Childhood Development Unit. This unit was established on 1 October 1989 to provide liaison and co-ordination for all early childhood education services. It provides in-service training and education and gives support and advice to families, service organisations and community groups interested in providing early childhood care and education.

Education service centres. Fourteen independent centres have been formed out of the ten former education boards and three regional offices of the Department of Education to offer services such as transport, payroll, property, supply and direct administration to schools.

Other organisations have been established to protect the interests of different groups within the education system.

Parent Advocacy Council. This is a new statutory organisation responsible for promoting the interests of parents at all levels of education. It is an independent investigation agency for parents who feel their children's needs are not being met within the education system. The council provides information about the education system and the rights and obligations of individuals and groups within it. It also assists parents who wish to educate their children at home or set up a separate school.

Teacher Registration Board. This is a small independent body which maintains a register of approved teachers.

Boards of trustees. All state primary and secondary schools in New Zealand are governed by a board of trustees. Members of a board are elected by parents of students enrolled at the school. Members include representatives of parents of students, the principal of the school, and a staff representative. A student enrolled full-time in a class above form 3 may also be elected to a board as a student representative. Boards may co-opt additional members, to ensure, for instance, that there is a gender balance and that the board reflects the ethnic and socio-economic diversity of the student body of the school. Boards that administer integrated schools may include members appointed by the proprietors of the school or schools.

Each board of trustees has a large measure of autonomy in the running of its own school. It has responsibility for payment of ancillary staff salaries and for the allocation of funds for the operation of the school. The board must also ensure that there is a written charter of aims, purposes and objectives of the school approved by the Minister of Education. The school charter includes the national guidelines for education and local goals and objectives which reflect the particular aspirations of individual schools and their communities.

Education Review Office. This office reports on how educational institutions are meeting their goals and objectives as set out in their charters, to ensure that public funds are being used efficiently and effectively. Its major task is to conduct regular reviews of the performance of early childhood, primary, secondary and tertiary learning institutions. From July 1990, reviews of primary and secondary schools will lake place three-yearly, and annually for early childhood services and home-based schooling. The frequency of reviews of post-school institutions is still to be decided.

In addition to reviewing the educational effectiveness of institutions, reviewers will also be looking at equal employment and equal educational opportunities, financial management and property aspects in early childhood, primary and secondary institutions. Reviews in tertiary institutions will focus only on equity.

The office also reports on the performance of other elements in the education system: the special education service's supply of services to institutions; the Early Childhood Development Unit's supply of services to early childhood educators; the effectiveness of colleges of education in supplying general advisory services to institutions; and the effectiveness or otherwise of the ministry's advice to institutions. It is also responsible for monitoring home-based schooling.

The Education Review Office may also undertake special reviews on its own initiative or as directed by the Minister of Education.

Several other new organisations will come into existence from 1 July 1990, these are listed below.

National Education Qualifications Authority. This Crown agency will co-ordinate national secondary school educational qualifications, national vocational qualifications, and advanced academic qualifications. It will oversee the setting and regular review of standards and encourage institutions to design courses so that people can more easily move between courses and institutions. It will also be responsible for the gaining of recognition for New Zealand qualifications overseas and for the recognition of overseas qualifications in New Zealand.

Career Development and Transition Education Service. This service will provide information resources, training and consultancy for career guidance and transition advisers and career counsellors. It will also operate ‘Quest’, a database on vocational and careers information. See also section 12.3.

Education and Training Support Agency. This agency will administer and service the apprenticeship and ACCESS systems and work with apprenticeship committees to promote apprenticeship training. It will also support and service regional employment and ACCESS councils (REACs) in their role of facilitating ACCESS training regionally. See also section 12.3, Employment and training assistance.

Other educational bodies

New Zealand Council for Educational Research. The Carnegie Corporation of New York was instrumental in founding the New Zealand Council for Educational Research in 1933. Since 1945 the council has been supported by slate funds, contributions from educational bodies, philanthropic foundations, business organisations, and its own trading operations. It has remained, however, under independent control as originally provided for in the New Zealand Council for Educational Research Act 1972.

The council has concentrated its research on New Zealand problems. Its main publications, more than 100 research monographs and numerous shorter studies in education, include critical surveys of major policy issues in New Zealand education, and accounts of outstanding experiments in school practice. The council is also involved in the publication of two periodicals; the New Zealand Journal for Educational Studies, and a special research information package for teachers. Called Set, it has, since 1980, been published jointly with the Australian Council for Educational Research.

The New Zealand Council for Educational Research is the main source of overseas and locally standardised educational and psychological tests used by universities, government agencies, hospitals, business firms, and schools. Progressive achievement tests, established by the council specifically for New Zealand schools are used extensively throughout the country and also in Australia.

The council employs around 15 permanent research staff plus temporary research fellows or project assistants, and assists honorary research workers in other institutions such as universities, colleges of education, and schools. Its current research programme includes major projects related to families and early childhood education, evaluation and assessment in primary and secondary schools, educational computing, children's written English, Maori language, and education, vocational education and adult learning, and services for children with special needs. Staff act as consultants and visit South-east Asia and the Pacific Islands. The council also acts as a clearing house for information on educational matters and maintains seven local institutes for educational research in Auckland, Wellington, Christchurch, Dunedin, Palmerston North, Hamilton, and Suva (Fiji).

Maori Education Foundation. The foundation was established in 1961 by Act of Parliament, to promote and encourage improved education for Maori people by providing financial assistance. The foundation had assets of $5 302 977, at 31 March 1989. The Board of Trustees allocates grants to sponsor annual speech contests; grants to higher secondary education and long-distance scholarships.

In 1988 the foundation distributed $1 369 198 in grants for Maori education.

Funding

Early childhood education. From February 1990 early childhood services have been funded at a rate of $2.85 per hour per child for up to six hours a day for free kindergartens, and $2.25 per hour per child for up to six hours a day or 30 hours per week for all other services. Access to funding is through an early childhood education centre meeting the minimum standards for all services and negotiating a charter with the Ministry of Education.

By 1994 all services will receive the same rate as kindergartens. By then it will be $3.30 per child per hour.

Capital works and other necessary major expenses for voluntary and community groups can be met through a system of discretionary grants and loans at commercial interest rates.

Te Kohanga Reo, the Maori initiative early childhood service, is funded at the same rate as other services, but the funding is administered by the national Te Kohanga Reo Trust.

Schools. The costs of teachers' salaries, school transport, teacher removal expenses, major capital works, long-term maintenance and vandalism or other property damage are paid directly by the Ministry of Education. All other costs are funded by bulk grants to individual schools, with expenditure being controlled by each school's board of trustees. Financial management of the schools will be subject to review and audit by the Audit Office. Education management and attainment is to be reviewed by the Education Review Office.

Special education. All special education classes, units and pupils are being funded at the schools to which they are attached. Society for the Intellectually Handicapped schools and residential schools, previously funded directly through the former Department of Education, receive funding for the pupils directly under their control.

Universities. Since 1961 the University Grants Committee has advised the Government on the needs of New Zealand for university education and research. It has also recommended grants to meet these needs, determined the allocation of the grants among universities and reviewed the expenditure by the universities of money appropriated by Parliament. The University Grants Committee was also responsible for the award of scholarships, and, through its statutory subcommittee, the Research Committee, was responsible for the distribution of a government grant for research.

The functions of the University Grants Committee will be assumed by the National Education Qualifications Authority, the Ministry of Education and the Vice-Chancellors Committee from 1 July 1990.

Apart from the income from students fees and the relatively small amount available to some universities from endowments, block grants from government determine the income of the universities to meet their running costs for five-year periods. The current five-year period ends in June 1990. Under the block grant system, grants have been calculated and approved five years in advance to enable the universities to plan their activities in advance. They are block grants in the sense that they are not itemised. This has the effect of making the governing bodies—the university councils—not only responsible for arranging their budgets within their incomes, but also free to make their own decisions about the allocation of new expenditure among the many competing proposals which arise within the institutions. With these grants, the university councils have an obligation to determine the numbers of students to be admitted to any class or faculty in the university, except where class sizes are restricted. The concurrence of the University Grants Committee has been required to reallocate, where appropriate, existing staffing or accommodation resources in response to changes in demand for courses.

Polytechnics. The funding of polytechnics is determined by the Ministry' of Education. Allocations are derived from the staffing components of approved programmes, a host of individual grants against specific items, and a general expenses grant related to the student hour totals. In addition, polytechnics derive income from other sources, particularly the ACCESS programme. From 1990 polytechnics will be funded by bulk grants and will move to three-yearly allocations from January 1991.

Colleges of education. Funding allocations for the four colleges of education and two teachers colleges are derived from approved staffing entitlements and a general expenses grant (based on student numbers) and funding for minor capital works, rents, leases and refunds of actual costs of utilities. Grants are also made to continue the capital works programme prepared in consultation between the ministry and individual colleges. While colleges derive some income from other activities, the major part of their funding comes from government grants.

In 1990 colleges will be bulk-funded, based on the above formula. As with polytechnics, three-yearly funding is to be introduced from January 1991, so that all three tertiary sectors, i.e., colleges of education, polytechnics and universities, are funded in a similar manner.

Public expenditure on education. Table 9.1 shows the net expenditure (actual expenditure less recoveries) from public funds on each branch or service of education for the years ended 31 March 1988 and 1989.

Table 9.1. EXPENDITURE ON EDUCATION

Item1987–881988–89
Net
expenditure
Net
expenditure
Percentage
of total
 $(000)percent
Administration and general—
     General administration45,90069,8522.0
     Examinations2,5523,0500.1
     Research3,0103,5930.1
                    Subtotal51,46276,4952.2
Early childhood education—
     General administration3,3643,8640.1
     Free kindergartens42,28048,0601.3
     Playcentres2,4013,0160.1
     Other early childhood agencies571771
     Childcare services7,25911,4280.3
     Buildings2,5582,6520.1
                    Subtotal58,43369,7911.9
Education support services—
     General administration5,9916,6650.2
     School inspection service12,62013,1730.4
     Advisory and guidance service34,10137,7851.1
     Curriculum development and resources14,41514,7870.4
     School transport71,67276,7332.1
     Recruitment of teachers8791,175
                    Subtotal139,678150,3184.2
Operation of schools—
     State primary schools895,9331 001 97228.0
     State secondary schools773,954871,46324.4
     Correspondence School24,74127,2110.8
     Integration of private schools14,05524,1920.7
     Assistance to private schools14,64715,1050.4
     Special education61,56762,8741.8
     School buildings109,41094,5502.6
                    Subtotal1 894 3072 097 36758.7
Teacher education—
     General administration577527-
     Pre-service training62,24870,4402.0
     In-service training7,9139,5270.3
     Teachers college buildings5,4776,9950.2
                    Subtotal76,21587,4892.5
Senior technical and community education—
     General administration3,3464,4750.1
     Polytechnics and community colleges241,434293,4788.2
     Assistance to students28,56236,7481.0
     Other continuing education agencies and programmes13,99016,3900.5
     Polytechnics and community college buildings77,47890,7562.5
                    Subtotal364,810441,84712.3
University education—
     Operation of universities371,838434,57612.2
     Assistance to students79,35792,8982.6
     University buildings39,64949,1311.4
                    Subtotal490,844576,60516.2
National Library—
     Operation of National Library29,41832,2321.0
     National Library buildings13,07637,0371.0
                    Subtotal42,49469,2692.0
                    Total3 118 2433 569 181100.0
Source: Ministry of Education.

Table 9.2. EDUCATION EXPENDITURE RELATED TO GOVERNMENT EXPENDITURE AND POPULATION

Year ended 31 MarchNet education expenditurePercentage of net government expenditurePercentage of GDPExpenditure per head of mean population
Current salariesBuildingsTotal
 $(million)percentpercent$
19851 607.2121.41 728.611.34.5531.17
19861 868.0142.32 010.311.44.5618.86
19872 392.8202.42 595.212.45.1781.78
19882 870.6247.63 118.213.55.3940.26
19893 288.0281.13 569.100.00.01 072.32
Source: Ministry of Education.

International links

The Ministry of Education—in consultation with the Ministry of External Relations and Trade, the New Zealand Immigration Service and the Trade Development Board—has responsibilities for the Government's foreign student policy and its implementation, particularly as it affects fee-paying students. It compiles data on foreign students, provides information on policy and application procedures, compiles information on courses available to foreign students and convenes the advisory body which monitors the implementation of the policy.

The ministry administers a range of bilateral educational and cultural exchange activities. Each year, teacher exchanges are arranged between New Zealand the United Kingdom, Australia, Canada and Germany. The New Zealand-Japan exchange programme provides financial and administrative support for a wide range of activities for school teachers, artists and scholars. Other exchange activities include overseas in-service training for teachers of French and German and the Language Assistants Scheme for teachers of French, German and Spanish.

New Zealand is a member of various intergovernmental organisations concerned with education. It participates in the education activities of the United Nations Educational, Cultural and Scientific Organisation, the Commonwealth Secretariat, and the Organisation for Economic Co-operation and Development through the Education Committee of the OECD, the Centre for Educational Research and Innovation and the Programme on Educational Building.

9.2 Pre-school, primary and secondary education

Most New Zealand children begin their formal education before primary school. Early childhood education is available to children under five years old through a wide range of services, most of which are administered by voluntary agencies with government assistance.

The Education Act 1964 and subsequent amending legislation provides for free education in state primary and secondary schools, and attendance is compulsory until the age of 15 years.

Primary school education is compulsory from six years of age, but children usually start formal schooling at the age of five. The final two years of the primary course, forms 1 and 2, may be taken at a full primary school, an intermediate school, an area school, or a form 1–7 school depending on where a child lives. On completing form 2, usually after eight years' school attendance, a child normally enters form 3 of a secondary school, or alternatively form 3 in an area school.

School terms

Primary and secondary schools are required to be open for at least 400 half days and 380 half days, respectively, each year. The school year is divided into three terms. The first term commences usually on the fifth Monday of the year (in secondary schools, the fifth Tuesday), the second term in May on the 21st Monday, and the third term in September on the 37th Monday. These dates may vary where they coincide with statutory holidays.

Early childhood care and education

The main organisations involved in providing part-day sessional programmes are the New Zealand Free Kindergarten Union and the New Zealand Playcentre Federation. Part-day sessional programmes are also provided through mobile early childhood units, early childhood classes in primary schools and hospital early childhood groups.

A wide range of childcare centres provide both part-day and full-day programmes. Childcare centres are administered by a variety of groups including community and church groups, voluntary agencies and private and commercial operators. The New Zealand Childcare Association, the New Zealand Licensed Childcare Centres Federation, the Associated Childcare Council, and Barnado's are some of the many organisations involved. Childcare services are also provided in centres run by The Society for Intellectually Handicapped and the Crippled Children Society. Family daycare schemes as well as nanny services provided in private homes are other types of childcare services.

From 1 July 1990, all early childhood centres wishing to receive government funding must hold a charter. Those not holding a charter must be licensed.

Kohanga reo (language nests) have been established by Maori to provide an educational environment in which children can learn Maori language and Maori cultural values. Kohanga reo are special-purpose childcare centres under the control of Te Kohanga Reo Trust (Inc.) and licences are approved by the trust.

Small non-profit making early childhood groups and Pacific Island Polynesian playgroups receive special funding from government, but are exempt from the need to hold a charter or a licence. Pacific Island Polynesian communities run early childhood language nests with an emphasis on language development, both in their own language and in English, increasing parental knowledge in early childhood care and education and assisting a child's transition into the formal education system. Home-based programmes are also linked to these language nests.

Primary and secondary school curricula

Primary school curriculum. The curriculum of the primary and intermediate schools, as set out in the syllabuses, covers English (including oral and written language, reading, spelling and handwriting), mathematics, social studies, arts and crafts, science, physical education, health education, and music. Maori language is taught in some schools, and there are 15 official bilingual state primary schools. Seventy-five primary schools and 20 secondary-schools have official bilingual units. At intermediate level (forms 1 and 2), the curriculum includes workshop craft and home economics.

Secondary school curriculum. The secondary curriculum is based, for the first two years, on a common core consisting of English, social studies, general science, mathematics, music, arts and crafts, and physical education. Secondary schools are required to give all pupils a minimum number of units of instruction in the common core subjects. At the fifth to seventh form levels, students may choose from a wide range of subjects.

Curriculum review. A national curriculum statement based on the report. The Curriculum Review, the Report of the Committee to Review the Curriculum for Schools, sets out a framework for teaching and learning in primary and secondary schools. The draft statement is being used by a small number of schools to consult with their communities in reviewing their curricula. Other schools will use the report as the basis for consultation.

Further reforms relating to the setting of the curriculum have been dealt with in the review of education administration were addressed in the Government's report. Tomorrow's Schools: The Reform of Education Administration in Sew Zealand, mentioned above.

Secondary school attainments

School Certificate. The School Certificate examination is conducted by the Ministry of Education and taken by most pupils at the end of three years of secondary education. With the exception of part-time students each candidate's course of study must include English, although the student is not required to sit the examination in that subject. A candidate may enter the examination in any number of subjects up to six and is credited with a grade for each subject. There are seven grades: A1 (highest), A2, B1, B2 (middle). C1, C2, and D (lowest). School Certificate regulations now allow single subject passes.

Sixth Form Certificate. Sixth Form Certificate is awarded, on a single-subject basis, to pupils who have satisfactorily completed a course of one year beyond School Certificate level. No more than six subjects can be taken. Grades are awarded on a 1 to 9 scale, grade 1 being the highest.

Higher School Certificate. Higher School Certificate is awarded after a five-year course of study, to pupils who have been accepted for entry to form 6 and have satisfactorily completed an advanced course of two years. It is also awarded to pupils who have obtained an A or B bursary qualification from the University Bursaries Examination.

Bursary and scholarship examinations. The University Bursaries Examination and the University Entrance Scholarship Examination, usually taken by secondary school pupils in form 7, are conducted by the Universities Entrance Board; they are competitive examinations for supplementary awards for study at a university.

Table 9.3. SCHOOL CERTIFICATE CANDIDATES*

YearNew Zealand school candidatesExtra-mural candidatesPacific Island school candidatesTotal candidates
Number enteredPercentage of totalNumber enteredPercentage of totalNumber enteredPercentage of total

* Based on number of candidates sitting examinations. All figures raised.

Source: Ministry of Education.

198458,30980.73,9406.89,99913.872,248
198557,30380.33,7425.210,30214.471,347
198658,83479.93,1734.311,60515.873,612
198759,45182,22,8553.910,04813.972,354
198860,84391.83,1084.72,3123.566,263

Table 9.4. NUMBER OF SUBJECTS TAKEN BY SIXTH FORM CERTIFICATE STUDENTS

YearNumber of subjects taken
654321
 percentage of total
198514.563.88.42.53.17.6
198619.554.28.93.83.89.8
198719.552.29.34.64.69.9
198819.048.410.75.85.610.5
Source: Ministry of Education.

Table 9.5. ATTENDANCE AND ATTAINMENTS OF SECONDARY SCHOOL LEAVERS

Years in
attendance
PupilsAttainmentsPupils
19871988 1988

* One or more subjects irrespective of grade awarded.

Source: Ministry of Education.

 no.no.percent no.percent
One8015971.1University Scholarship2290.4
Two3,9743,3046.1University Bursary9,03716.6
Three13,58111,04920.3Higher School Certificate6,30811.6
Four19,74017,89332 9Sixth Form Certificate*15,06027.7
Five18,52620,98138.6School Certificate*13,13824.2
Six and over5425391.0No formal national academic qualification10,59119.5
               Total57 16454 363100.0               Total54 363100.0

Table 9.6. ATTENDANCE AND ATTAINMENTS OF MAORI SCHOOL-LEAVERS

AttainmentYears in attendance of school-leavers* during or at the end of 1988
OneTwoThreeFourFiveSixTotal
MFMFMFMFMFMFMFGrand

* Does not include deceased or students leaving to attend another secondary school.

† One or more subjects irrespective of grade awarded.

Source: Ministry of Education.

University Scholarship 31 314
University Bursary 11011793119120239
Higher School Certificate 2192042213241217458
Sixth Form Certificate 44660334732142148359381 773
School Certificate 4745555785936452631,1221,2032 325
No formal school qualifications1169869157391074815117617911,8861,6053 491
                    Total116986915731 3841 3041 1751 37276070480334 2064 0848 290

Assessment for better learning. A ministerial working party on assessment for better learning was set up in 1988. The working party was required to recommend to the Government procedures which can monitor the effectiveness of the New Zealand education system and assess the effect of individual schools on students learning achievements. The working party produced a public discussion document in October 1989 Assessment for Better Learning: A Public Discussion Document, that made proposals about the assessment of the system, the schools, the teachers and the students. Responses to this discussion document were taken into account in preparing a final report, which was released early in 1990.

Establishments

Primary schools. Table 9.7 sets out the number of school providing education for children at the primary and intermediate (forms 1 and 2) level. The reduction in the number of state primary schools as indicated in this table can be attributed to the closure of a number of schools where rolls had fallen below nine pupils.

Table 9.7. PRIMARY SCHOOLS

Type of school19841985198619871988

* These schools also cater for students at secondary school ages.

Source: Ministry of Education.

State full primary schools1,1351,1291,1271,1181,111
State contributing primary schools1,0221,0221,01610131,011
Intermediate and attached intermediate schools169169169167166
Private primary, intermediate and special schools6166697678
Composite private schools*2829272728
Departmental and Social Welfare special schools*2526242318
Special schools under board control*6058585656
Correspondence School*11111
Area schools*3536363535
State forms 1–7 schools*5252525353
Private forms 1–7 schools*66666

Table 9.8. SIZES OF GENERAL CLASSES AT PRIMARY SCHOOLS

YearNumber of pupils at 30 September*
0–1920–2425–2930–3435–3940 and overTotal
Classes%Classes%Classes%Classes%Classes%Classes%

* Includes general classes at state full-contributing, intermediate, attached intermediate and area schools. In 1988 there were 694 special classes at state schools: 481 with 0–9 pupils, 150 with 10–14 pupils, 49 with 15–19 pupils and 14 with 20–24 pupils.

Source: Ministry of Education.

19842,17013.22,38414.54,47227.25,96636.31,4088.6150.116,415
19852,26214.22,66716.74,19126.25,62535.21,2367.7715,988
19862,31914.62,75417.44,28527.05,46334.41,0436.6715,871
19872,30814.52,64516.74,09625.85,37133.81,1367.215,556
19882,25514.72,56116.74,26327.95,25534.39616.3515,300

Secondary schools. Table 9.9 shows the number of schools providing secondary education. Figures exclude the secondary department of the Correspondence School.

At 1 July 1988, of the 314 state form 3–7 and form 1–7 secondary schools, 218 were coeducational, 46 for boys only and 50 for girls only. Most of the private schools are single-sex schools.

Table 9.9. SECONDARY SCHOOLS

YearState schools with secondary pupilsPrivate
schools
Total
Forms 1–7Forms 3–7Area
schools
 number 
1984522633547397
1985522643650402
1986522633648399
1987532613547396
1988532623544394
Source: Ministry of Education.

Consolidation of secondary schools. In order to give children in rural districts the advantage of special equipment and more specialised teaching in larger schools, the consolidation of the smaller rural schools has been a feature of the last 30 years. Composite schools have been developed in recent years to bring together larger concentrations of children. They provide education at primary and secondary level and are known as ‘form 1 to 7 schools’ and ‘area schools’.

The first form 1 to 7 school was opened in 1962 and by 1988 there were 59 of these schools (including six private). This type of school developed from the secondary departments of district high schools, with the addition of form 1 and 2 pupils from neighbouring primary schools. They receive improved stalling, accommodation, and equipment in order to promote equality of educational opportunity for country children.

However, a large number of form 1 and 2 children remain in country districts which are too small to support a form 1–7 school. In these districts, area schools have been established. Area schools provide education from the infant stage to form 7 for all children in the immediate vicinity, and from form 1 upwards for children from contributing schools over a wider area. The first area school was opened in 1969 and at 1 July 1988 there were 35.

Private schools. These schools comply with defined standards of accommodation and teaching as a prerequisite for compulsory registration. Some financial assistance is provided by the state towards running costs. Government requirements must be met before new private schools can be built, and, after a transitional period, new teacher entrants to private schools must possess certain minimum qualifications.

The Private Schools Conditional Integration Act 1975 has allowed for the voluntary integration of private schools into the state system, and this has happened progressively.

Private schools, whether integrated or not, are subject to the provisions of the Education Act 1964, and subsequent amending legislation. Integrated schools operate under the same system of control and management as state primary and secondary schools. Non-integrated private schools are controlled by trustee committees and management boards on behalf of proprietors.

Secondary school hostels. At 1 July 1988 there were 65 hostels for state secondary schools and 23 private schools provided hostel accommodation.

Correspondence School. This is a national school administered by an elected board of trustees composed of parents, community representatives, school representatives and a student. It provides courses for four major categories of students: early childhood and full-time students obtaining all their education through the school; students enrolled in New Zealand primary or secondary schools but doing one or more subjects with the Correspondence School and adult part-time students who wish to continue their basic education.

The school roll on 1 July 1989 was 21 213, made up of 519 early childhood; 900 primary; 717 special-needs section (pupils with significant educational handicaps); 1205 individual programme section (pupils needing remedial tuition); 1203 secondary full-time students at secondary schools; and 10 260 part-time adult students.

The 1203 full-time secondary students were enrolled for a variety of reasons—232 because of isolation, 159 for medical reasons, 185 New Zealand children living overseas, 110 were pregnant, 44 in institutions, 92 school suspensions, 80 with school phobia and other psychological problems, and 115 adult full-time, 97 itinerant and 89 students who are also enrolled at other secondary schools. For full-time students the school provides daily lessons in print, tape, and video. Regular radio broadcasts, club activities, a school magazine, and parent and ex-pupil associations extend the school's work.

Personal contact between students and the school is strengthened by resident teachers based in major centres who visit families regularly. Visits are also made by teachers from the school. At the district level, school-day and school-week gatherings are held periodically. A residential school for invited pupils from forms 1 to 4 is held each year to provide children with an opportunity for social education through taking pan in group activities.

The total staff of the Correspondence School is 560 and of this number, 345 are secondary teachers, 96 are primary teachers (including those in special-needs and individual programme sections), 19 are early childhood teachers, 10 are resident teachers and 90 are administrative staff.

Table 9.1. STUDENT NUMBERS

Type of institutionAt 1 July
198619871988
Early childhood—
     Non-profit-making groups3,8793,6123,465
     Playcentres14,50914,41214,628
     Kindergartens41,82241,97142,537
     Early childhood classes at primary schools1,052983993
     Correspondence School713749779
 61,97561,72762,402
Primary (juniors to form 2)
     Primary schools344,907340,631334,515
     Intermediate schools and attached intermediate69,82466,17863,674
     Area and district high schools5,9645,5025,528
     Forms 1 and 2 at form 1 to 7 schools6,9956,9636 652.
     Correspondence School1,6061,6961,683
     Departmental special schools201259150
     Department of Social Welfare schools463925
     Royal New Zealand Foundation for the Blind689390
     Private primary schools11,41711,61112,053
 441,028432,972424,370
Secondary (form 3 to form 7)
     State form 3 to form 7 schools200,383201,075202,717
     Forms 3 to 7 at state form 1 to 7 schools13,91714,66414,555
     Area schools (form 3 to form 7)3,1913,0973,028
     Correspondence School1,1091,1901,171
     Departmental special schools330214226
     Department of Social Welfare schools266214171
     Private secondary schools11,81611,85312,132
                    Total231 012232 307234 000
Source: Ministry of Education.

Maori pupils. An estimated 32 704 Maori pupils were receiving secondary education at 1 July 1988. This number comprised 37 975 pupils attending state secondary schools and 729 pupils attending private secondary' schools.

Table 9.11. TEACHING STAFF

Type of institutionPositions (full-time equivalents)Full-time staff 1988Total
19871988MaleFemale

* All staff are part-time.

† Includes teachers at full and contributing primary schools, intermediate schools, board schools, special schools, attached intermediates, teachers of special classes, special-needs teachers, primary teachers at Correspondence School and reading recovery teachers.

‡ Includes advisers, psychologists, speech and reading teachers, and teachers not employed under staffing schedules such as visiting teachers, itinerant teachers, museum and zoo teachers, pool relief, physiotherapists, etc.

§ Includes all staff at form 1–7 schools.

Includes stall at Department of Education, Social Welfare and Justice special schools.

Source: Ministry of Education.

Early childhood—
     Playcentres*245242.........
     Kindergartens1,3361,355151,3221,337
Primary
     State18,40318,2145,11212,41617,528
     Private348356127194321
     Supporting services1,1331,109329553882
     Area schools544543265248513
     Composite private schools649663198353551
     Manual training691690332343675
Secondary—
     State§14,45614,5067,2575,75813,015
     Private449451279104383
     Departmental special schools1701696886154

Teacher-pupil ratios. The ratios shown in the accompanying graph have been calculated using the 30 September roll divided by staffing entitlement for primary schools, while the secondary roll uses the 1 March roll divided by entitlement. Manual training teachers are included with primary teachers for the purpose of calculating ratios. The introduction of a 1:20 ratio in junior classes at primary schools appears in the lower-primary ratios in 1985–89. The introduction of extra secondary teachers in response to the report of a secondary staffing working party also shows up in the secondary ratios for those years. In 1988 the teacher-pupil ratio for primary schools was 1:20.42, and for secondary' schools 1:16.35.

Projected student numbers. A projection of roll numbers at 1 July, made in 1988 by the then Department of Education and based on policies and trends at the time, is set out in table 9.12.

Table 9.12. PROJECTED STUDENT NUMBERS

 YearKindergartenPrimarySecondary
Actual198641,800441,000231,000
 198742,000433,000232,300
198842,600424,402234,000
198942,700421,400233,600
Projected199043,700416,000225,800
(1989 base)199144,300415,300219,400
 199744,900459,200203,500
Source: Ministry of Education.

School boarding and course bursaries. The value of school boarding and course bursaries is $1 485 a year. The number of pupils receiving boarding bursaries during 1988 was 3100 compared with 3072 the previous year. A total of 335 course bursaries were awarded in 1988, compared with 334 in 1987.

School transport. During the 1988 school year nearly 17 percent of the total school population received transport assistance. Most pupils used buses operated under contract to education boards or operated by the then Department of Education.

The school transport service carried 111 484 students to and from school daily in 1988. Of these 102 279 students were transported by 2340 school bus services and 2799 students by 747 taxi services (in special needs cases). Transport allowances were paid to the remaining 6406 students.

Special education

Whenever possible, children with physical or other disabilities are enrolled with other children at ordinary early childhood services and in ordinary classes at their local primary or secondary school. When necessary, buildings are modified, special equipment is provided, and ancillary staff are appointed to assist the teachers. Members of the Special Education Service and other specialist advisers also help staff develop suitable teaching programmes.

A comprehensive range of special education services has been developed for children whose special needs cannot as yet be met in ordinary education settings. Small part-time groups for children with disabilities in early childhood are attached to selected kindergartens and playcentres. The Special Education Service employs teachers to work with children in early childhood centres. Boards of trustees govern classes, units and resource centres in ordinary or special schools, and in hospitals. A very small number of children attend residential schools for periods of time ranging from one term to several years.

Teachers working in early childhood centres and schools are moving towards providing a service to all children in their area with special learning needs rather than specialising in one type of difficulty, such as children with a slower than average rate of academic learning. They are also increasingly taking the service to the children in ordinary classes and programmes, rather than withdrawing them to separate settings. Individual programmes for children are helping to co-ordinate the services and inform and involve parents and caregivers.

Teacher training

The training of teachers is carried out at colleges of education at Auckland, Wellington, Christchurch and Palmerston North, as well as at teachers colleges at Hamilton and Dunedin. All of these institutions have a range of off-campus teacher training provisions.

Colleges of education are run by councils which include representatives from universities and teacher organisations, although their composition will change from 1 July 1990.

Entrance to teacher training at any of the six institutions is controlled by a quota system based on the demand and supply statistics for the staffing of schools.

Early childhood workers and teachers. Three-year training programmes for early childhood workers and teachers have been available since 1988. They are operated at each of the colleges of education. The Advanced Studies for Teachers Unit at Palmerston North College of Education and Massey University offer advanced courses for all early childhood education workers and teachers.

Primary teacher training. The normal course of training for primary teacher trainees (division A) is a period of three years at a college of education, followed by two years of satisfactory teaching in a state primary school. Courses may be shortened to two years for trainees who are university graduates or who are partway through degree courses or for mature trainees with relevant work experience.

Primary teacher trainees are encouraged to undertake university study. Trainees in Hamilton, Palmerston North, Christchurch and Dunedin may enrol for the Bachelor of Education degree at the respective university. Teacher trainees at Auckland and Wellington may gain cross-credits from their college courses towards degrees from Auckland University or Victoria University.

Special education training. Students who wish to become speech/language therapists enrol for a four-year Bachelor of Education (Speech-Language Therapy) degree at the University of Canterbury.

Postgraduate courses for teachers who wish to be trained as teachers of people with disabilities are available at Auckland, Palmerston North, Wellington and Christchurch. Specialist postgraduate training courses for teachers of the deaf and visually impaired are located at Auckland and Christchurch.

There is also a postgraduate course for bilingual (Maori/English) teachers available at Hamilton Teachers College.

Secondary teacher training. Two options are available to people who wish to train as secondary teachers. For graduates and those with other approved advanced qualifications there is a one-year (division C) course. People with University Entrance or acceptable Sixth Form Certificate may be accepted into division B which involves up to four years consecutive or concurrent study. All colleges of education provide both division B and C courses.

Table 9.13. STUDENTS ATTENDING TEACHERS COLLEGES AT 1 JULY

Type of course19841985198619871988
MFMFMFMFMF

* Includes speech/language and Pacific Island supplementary training students.

Source: Ministry of Education.

Students at teachers colleges
Early childhood programmes—
     Division E118211532209831611517
Primary—
     Division A*3281,4863641,5834491,0725002,3065542,618
     Post-graduate courses1143144527008722177
Secondary —
     Division B741378689548741883877
     Division C136197165203282320343319261239
     Other one-year courses64
               Total at teachers college by sex5562 0496302 0738142 6489003 1018853 528
               Total at teachers college2 6052 7033 4624 0014 413
Students attending university or polytechnic full-time
Primary—
     Division A30189361001144126816101
Secondary—
     Division B153240108211118246120255117227
               Total students full-time at university or polytechnic by sex183429144311129290132323133328
               Total at university or polytechnic612455419455461

Continuing education for teachers. A wide range of professional education papers is offered to teachers. The majority of the papers are intended to provide credits towards diploma qualifications and service increments for certified teachers.

The Advanced Studies for Teachers Unit at Palmerston North College of Education caters for the continuing education of teachers and other adult learners through distance education. It is a teaching department within the college, with a core of permanent professional tutorial and administrative staff. College of education staff throughout New Zealand act as part-time tutors for these courses.

Colleges of education offer a range of approved after-hours advanced study courses for teachers who wish to advance their professional qualifications. Teachers completing courses gain credit towards the Higher or Advanced Diploma of Teaching or a service increment.

Resources for teaching

Rural education activities programmes (REAPs). Since they began in 1979, 13 rural education activities programmes have been established. They provide extra resources to certain relatively isolated and sparsely populated rural areas.

The resources offered include: early childhood staffing; guidance and visiting teachers; curriculum support for teachers through advisers or seconded teachers; an organiser to develop continuing education; additional staffing in rural secondary schools; and assistance to develop liaison between schools.

District management committees have been established as an integral part of the programmes. They comprise those with early childhood interests, teacher organisations, continuing education groups, school controlling authorities, service organisations, and other interested groups. As each committee represents the interests of its district, it takes a significant part in identifying local educational requirements and in co-ordinating the use of resources. Each district makes use of its resources to meet local needs. Programmes may therefore vary considerably from district to district.

The districts in which REAPs have been set up are the Far North, eastern Bay of Plenty, East Coast, Central Plateau, central King Country, Taihape-Ruapehu, southern Hawkes Bay, Wairarapa, Marlborough, Westport-Buller, West Coast, Central Otago, and Southland.

As part of the reform of education administration the programme is to be reviewed in 1990 to consider whether resource distribution should be changed.

Reading recovery. The reading recovery programme provides intensive individual help for children having difficulties in reading and writing after one year at school. It was extended to a further 157 schools in 1989, and during the year approximately 1000 teachers assisted nearly 10 000 six-year-old children throughout New Zealand.

Children who require long-term assistance are provided for by 67 resource teachers of reading.

Other advisory services. A total of 216 primary and secondary advisers were employed by colleges of education at 1 July 1981. They provide advice and guidance to schools and run in-service courses for teachers throughout the country. Particular emphasis is given to assisting schools to reach their local and curriculum charter objectives within the context of the national educational guidelines.

The Early Childhood Development Unit provides assistance and advice to informal and developing early childhood groups, and provides in-service training for chartered early childhood institutions.

Specialist assistance in helping children with special needs is provided mainly by the special education service. This service includes psychologists, speech-language therapists, visiting teachers, advisers on deaf children, and teachers who teach at resource centres for people with disabilities.

Learning media. The Learning Media Group of the Ministry of Education provides services that were carried out by the audio and visual production units and school publications branch of the former Department of Education. The group carries out all aspects of the planning, development, production, dissemination and promotion of resources for learning. The emphasis is on materials that document and support the curriculum for schools—for example, syllabuses, teachers' handbooks, pupils' books and classroom materials in all media. Recently, however, support of early childhood education has been an important focus.

Materials include picture packs, slide sets, audio cassettes, video cassettes and booklets of all kinds.

The group also publishes the New Zealand Education Gazette and prepares a video magazine called Education Update which goes to all schools each term for viewing by teachers, parents and others who may be interested. The School Journal, which has been published since 1907, is also published in four broad parts to cater for different levels within primary schools.

Publishing in the Maori language is an important function of the Learning Media Group. A syllabus for Maori language in primary schools has been developed, and a range of reading materials at different levels is available. A course for teachers to learn Maori, using audio cassettes and booklets, has been on trial and will be widely available by mid-1990. Handbooks to assist teachers in planning class programmes in Maori and a variety of supporting resources are in production. Eight picture-book titles for early childhood have been produced in bilingual editions of both Maori and English.

Pacific Island language materials are also produced. There have been some co-operative projects involving individuals and groups in the islands, through which writers and artists have had some training and titles have been produced. A notable achievement in 1989 was the publication of 11 Tokelauan language books, which are available in New Zealand and in Tokelau. The Ready to Read books and associated handbooks for teaching reading in junior classes have proved to be both innovative and successful. They are marketed in the United States, Canada, Singapore and Australia.

Learning Media Group also promotes awareness of educational innovations and activities through funding and supporting a School Daze segment on after-school television. Materials are issued free to schools, or at a small charge. People may purchase personal copies of most items at a normal retail price.

National Film Library. The National Film Library was founded in 1942, and is the responsibility of the National Library of New Zealand. Educational films and videos are lent to financial members and distributed locally from branches in Auckland, Wellington and Christchurch. The Wellington office also offers a service to the Chatham Islands and to Western Samoa, Tokelau, Niue, Pitcairn, and the Cook Islands.

Each year the library buys films and video recordings. Stocks have also been built up by valuable gifts from diplomatic missions, other government departments, and various organisations and commercial enterprises. The National Film Library now holds some of the diplomatic film libraries, which are supplemented by the embassies from time to time.

The library has approximately 29 000 prints of 6190 titles and 8153 copies of 870 video titles. In 1988 films and videos were issued to 3000 educational institutions and over 400 community organisations. The National Film Library also offers a record, cassette and compact disc loan service, a sample sheet music service and loan of the Claude Laurie Music Collection. These services are limited to educational institutions only. The audio library holds more than 8300 discs, 15 000 audio cassettes and 240 compact discs.

Museums. Approximately 300 000 school children make visits to museums every year. Fifteen full-time and four part-time museum education officers, together with other staff, assist students from early childhood to tertiary institutions to utilise the educational opportunities in museums, zoos, art galleries and at the Museum of Transport and Technology.

Free textbooks in schools. Textbooks are supplied free to all primary and secondary pupils in both state and private schools. Under the free textbooks scheme, the books remain the property of the school controlling authorities and are issued on loan to pupils.

9.3 Tertiary and continuing education

Universities

There are seven universities. They are the University of Auckland, the University of, Waikato (at Hamilton), Massey University (at Palmerston North), Victoria University of Wellington, the University of Canterbury (at Christchurch), the University of Otago (at Dunedin), and Lincoln University (formerly agricultural college) near Christchurch.

All universities offer courses in the usual faculties of arts, science, and commerce, whilst law and music courses are available at Auckland, Victoria, Canterbury, and Otago. Most universities specialise in certain fields. The University of Otago provides courses in medicine, dentistry, surveying, home science, physical education, and pharmacy; the University of Canterbury in forestry, engineering and fine arts; Lincoln University in topics related to agriculture and horticulture; the University of Auckland in architecture, planning, engineering, medicine, optometry and fine arts; and Victoria University of Wellington in architecture, public administration, and social work. Massey University has courses in agriculture, horticulture, food technology, and veterinary science, as well as extra-mural tuition in a number of subjects for students throughout New Zealand. Joint courses leading to the degree of Bachelor of Education are available at Waikato, Massey, Canterbury, and Otago universities in association with the local teachers colleges.

Each university sets its own programme, and each university council sets the dates for terms. Typically, the university academic year runs from late February to early November each year.

Each university is established under its own act of Parliament. All matters relating to management are the responsibility of the council of the institution, which represents the interests of staff, students and the community. University funding is described in section 9.1, Administration of education.

The Curriculum Committee, established under the Universities Act 1961, has been responsible for approving course regulations and for maintaining the equivalence of courses for degree and other qualifications.

The Universities Entrance Board has maintained a common educational standard for admission to the universities. The board sets conditions of examinations for university bursaries and entrance scholarships.

On 1 July 1990, these arrangements will change as a result of the Government's statutory implementation of tertiary education reform. Tertiary education institutions will be gazetted bodies provided for by an amended Education Act. The University Grants Committee's, the Curriculum Committee's and the University Entrance Board's responsibilities will be variously assumed by the Ministry of Education, National Education Qualifications Authority, Career Development and Transition Education Authority and the Education Training and Support Agency.

Table 9.14. UNIVERSITY COURSES TAKEN BY INTERNAL STUDENTS, 1988

Course*Total
enrolled
at 1 July

* Includes degree, diploma and certificate courses.

Source: Ministry of Education.

Agriculture2,240
Architecture and building science1,281
Arts and humanities17,162
Commerce and business administration12,039
Communications (incl. journalism, librarianship)96
Dentistry246
Divinity and theology163
Education2,817
Engineering2,697
Fine arts333
Home science63
Law and jurisprudence4,878
Medicine and health-related2,230
Music432
Optometry71
Parks and recreation285
Pharmacy270
Physical education372
Resource planning and management160
Science8,939
Social sciences1,899
Social work448
Valuation and property management355
Veterinary science450
Other311
                    Total60 237
Adjustment for students enrolled in more than one course3,303
                    Total56 934

Table 9.15. DEGREE GRADUATES FROM NEW ZEALAND UNIVERSITIES, 1988

Degrees awardedFirst degreePostgraduate
Agriculture, horticulture and forestry35858
Architecture and town planning11234
Arts1,856455
Commerce and business administration1,485152
Dentistry485
Divinity and theology2215
Education26252
Engineering253292
Fine arts423
Home science353
Law and jurisprudence42282
Medicine (incl. human biology)34115
Mineral technology63
Music5012
Optometry15
Pharmacy242
Physical education661
Public policy2
Regional and resource planning519
Science technology and applied science1,145532
Social sciences12434
Social work3212
Surveying181
Veterinary science5910
                    Total6 7801 794
* Excluding doctorates, of which there were 190 awarded in 1988.
Source: Ministry of Education.

Student allowances

Financial support for students. A new system of student allowances was introduced on 1 January 1989. It provides a range of allowances for tertiary students 16 years old and over, and secondary students aged over 18 years old on 1 January of the year they are attending secondary school.

For single students the rate of allowance is dependent on the student's age, parental income (if the student is under 20 years old) and whether or not they live at home. There are also separate rates for students with a dependent spouse and/or dependent children.

In addition there is special provision for students aged under 20 years to be considered independent of their parents where extraordinary circumstances exist which prevent them from living with their parents or relying on them for financial support. Such students are paid an ‘independent circumstances allowance’, at the rate available to those aged 20 years and over. This provision is applied to a very small number of students only.

Students may also qualify for accommodation or transport assistance in addition to these allowances.

The net rate of weekly payment may range from $11 for a 16–17-year-old tertiary student with a parental income of over $37 284 up to $243.84 for a student with a dependent spouse and children.

The Ministry of Education annually updates the Student Allowances information booklet which is available from polytechnics, colleges of education, and universities, and from the ministry.

Table 9.16. ASSISTANCE TO INTERNAL UNIVERSITY STUDENTS*

Form of assistanceAwards at 1 July
19871988

* Does not include overseas students. Students may receive more than one award.

† Students are also included under the tertiary study grant category.

Source: Ministry of Education.

Fees grants only (full-time)153230
Fees grants only (part-time)543590
Tertiary study grants (incl. fees grants)28,99231,615
Accommodation grants18,79520,516
Hardship grants127227
Special hardship grants6895
A Bursaries10,73212,062
B Bursaries6,6067,696
Teachers' university studentships8277
Secondary teacher studentships393316
Teachers bursaries5125
Teachers college students' fees1,9872,156
Rehabilitation and war bursaries11
All government study awards774480
Health bursaries
Maori and Polynesian scholarships6797
Tu Tangata management programme5458
                    Total69 42576 241

Table 9.17. ASSISTED OVERSEAS STUDENTS AT NEW ZEALAND UNIVERSITIES, 1988

Form of assistanceAt 1 July
MalesFemalesTotal
Assisted by the New Zealand Government—
     Official Development Assistance (Ministry of Foreign Affairs)345169514
     Commonwealth scholarships371148
     Exchange students213
     Government departments (other than Ministry of Foreign Affairs)617
     University Grants Committee or university grant321042
                    Subtotal422192614
Other assistance from—
     Chinese Government224
     Tongan Government538
     Fijian Government10717
     Malaysian Government5555110
     Other government16420
     Fulbright awards213
     Lee Foundation131124
     Ford Foundation22
     Rotary3710
     United Nations Development Programme28730
     Other391958
                    Subtotal173113286
                    Total, assisted overseas students595305900
Source: Ministry of education.

University staff and students

Table 9.18. UNIVERSITY STAFF, 1988*

PositionFull-timePart-time
MalesFemalesTotalMalesFemalesTotal

* At 1 July.

Source: Ministry of Education

Filled teaching posts—
     Professors3461636254135
     Associate professors3833141432335
     Senior lecturers1,2711431,41438567452
     Lecturers463251714534295
     Assistant lecturers85100185399272671
     Instructors and demonstrators (if engaged in teaching)4439838365381,374
                    Total2 5925803 1721 7599232 682
Vacant teaching posts—206
Entitlement of academic staff = 3809 full-time equivalents
Non-teaching staff—
     Administrative, clerical and typing1918381,0299340349
     Technical8223061,12839147186
     Data processing143561994812
     Central administration1351482,8356267
     Library752723471693109
     Student welfare283563224466
     Printing and binding5649105189
     Other (grounds, trades and cleaners)39549444160336496
                    Total non-teaching staff1 8451 7533 5982561 0381 294

Table 9.19. UNIVERSITY STUDENTS

YearInternal studentsExternal studentsTotal
MalesFemalesMalesFemales
198425,80821,6454,0206,76958,242
198525,66422,1354,5837,48659,868
198625,93823,4274,7527,86261,979
198727,04824,9915,6348,76266,435
198829,18827,7425,9299,45472,313
Source: Ministry of Education.

Part-time and full-time students. At July 1988 there were 40 504 full-time university students and 16 426 part-time students as compared with 37 074 full-time students and 14 965 part-time students at 1 July 1987. Of this number, 15 383 students studied extra-murally.

Table 9.2. UNIVERSITY ENROLMENTS, 1988*

EnrolmentsInternal studentsTotalExternal studentsTotal studentsOverseas students included
SexFull-timePart-timeAt Massey UniversityAt own universityTotal

* At 1 July.

Source: Ministry of Education.

AucklandM5,9701,7537,723304347,757439
F4,4262,3196,745771786,823248
WaikatoM1,7778222,599442,603137
F1,6321,8773,50930303,539124
MasseyM3,0986003,6985,6375,6379,335282
F2,4319683,3999,0059,00512,404181
VictoriaM3,2861,4154,7014616624,763465
F2,9051,6004,50586201064,611430
CanterburyM3,7799194,698205254,723411
F2,6831,6244,30747474,534243
LincolnM1,140901,230221,232121
F457204772247929
OtagoM3,5929474,539371281654,704191
F3,3281,4724,800641221864,986131
All universitiesM22,6426,54629,1885,7761535,92935,1171,386
F17,8629,88027,7429,3111439,45437,1963,432

Table 9.21. OCCUPATIONS OF PART-TIME INTERNAL UNIVERSITY STUDENTS, 1988*

OccupationMalesFemalesTotal

* At 1 July.

Source: Ministry of Education.

No occupation other than study1,1811,0292,210
University staff431484915
Teacher3237571,080
Teachers college student3501,6441,994
Government employee1,0661,3212,387
Local body employee219264483
Private employment2,1231,8944,017
Self-employed person338514852
Houseperson or housekeeper1441,3671,511
Full-time student at technical institute133346
Other358573931
                    Total6 5469 88016 426

Table 9.22. RESIDENCES OF FULL-TIME INTERNAL UNIVERSITY STUDENTS, 1988*

Type of residenceAucklandWaikatoMasseyVictoriaCanterburyLincolnOtagoAll full-time internal studentsOverseas students included
MFTotalMF

* At 1 July.

Source: Ministry of Education.

Own home1,0571925439217551315222,0892,0324,12118396
Parents' home4,8646003982,3032,0951967046,5834,57111,1607040
Hall of residence5296651,1976997745601,5023,2892,6375,926475326
Boarding909280359354398411361,5049732,477197184
Shared flat or house2,9611,5402,8701,8662,4406573,9798,8647,44916,313827579
Other or not known761321624812773131945075838
               Total10 3963 4095 5296 1916 4621 5976 92022 64217 86240 5041 8101 263

Polytechnic education

Over recent decades vocational education and training has moved away from the secondary to the continuing education sector, with training formerly provided by technical high schools now provided by polytechnics.

Polytechnics provide a diverse range of vocational education resources and cover an increasing number of subjects at various levels of specialisation.

There are 24 polytechnics. They are; Northland, Auckland, Manukau, Carrington, Waikato, Bay of Plenty, Waiaraki, Taranaki, Wanganui, Manawatu, Tairawhiti, Hawkes Bay, Central Institute of Technology, Hutt Valley, Whitireia, Wellington, Nelson, Wairarapa Community, Christchurch, Aoraki, West Coast Community, Otago, Southland, and the Open Polytechnic of New Zealand.

Polytechnics are controlled by councils. Members represent business, industry, local authorities, universities, women's and ethnic groups, as well as education and community interests.

Open Polytechnic of New Zealand. This institution parallels the subjects taught at other polytechnics and it provides instruction in many subjects not available elsewhere. Almost 20 percent of all apprentices who sit the Trades Certification Board examinations study with this polytechnic.

The remaining students enrol for a wide variety of professional and industrial qualifications. These include Advanced Vocational Awards examinations in engineering, building, commerce and sciences.

Over 950 subjects are available—from hairdressing, plumbing and agriculture to airline pilots' licences and the National Diploma in Accountancy. Many subjects are now available to senior secondary school students under the nationwide ‘link’ scheme offered by the polytechnic. There is open entry to the polytechnic.

The New Zealand Open Polytechnic's precursor, the Technical Correspondence Institute, was established in 1946 with 12 staff and 600 students. The roll now numbers over 36 000, with 500 full-time staff members and it is the largest distance education institute in New Zealand. All educational material is written and printed on campus and over one-third of all polytechnic students study through the open polytechnic.

Central Institute of Technology. Located in Wellington, the institute mainly provides short-term ‘block courses’ for students from throughout the country, but also some special full-year, full-time courses on a national level such as health sciences.

Authority for Advanced Vocational Awards and Trades Certification Board examinations. This authority has been responsible for the curriculum and examination of all three-stage technicians certificates and five-stage New Zealand Certificate Courses. The Trades Certification Board has been responsible for examination of apprentices sitting for either a trade certificate or advanced trade certificate.

The authority and the board will be disestablished under the reforms of tertiary education and their functions taken over by the National Education Qualifications Authority from July 1990.

Technician courses—Both five-year New Zealand certificates and three-year technicians certificates are offered in the following vocational areas:

New Zealand Certificate: Building, building inspection, manufacturing, draughting (architecture), survey draughting, engineering (options: aeronautics, civil, electrical, heating ventilating and air conditioning, industrial measurement and control, mechanical, production, plastics, power and plant, road transport, telecommunications, electronics and computer technology, gas, chemical/metallurgy), fire technology, forestry, land surveying, local-government administration, quantity surveying, science (options: biology, chemistry, statistics, food science, geology, metallurgy, medical science, physics, water technology), and town planning.

Technicians' Certificate. Civil, draughting, electrical, electronics, measurement control, mechanical, survey, telecommunications, waste water treatment, water treatment.

New Zealand Certificate courses are part-time and require regular study at day-release and evening classes or intermittent periods of full-time study block courses.

Most subjects may be studied through the Open Polytechnic of New Zealand. Students may also study selected New Zealand certificate courses full-time at a polytechnic. All New Zealand certificates require students to complete not less than three years of suitable work experience.

Trade courses—Apprenticeship training accounts for a significant percentage of the work of polytechnics. Examination prescriptions for a full range of trade courses are prescribed by the New Zealand Trades Certification Board, which conducts assessments and examinations during apprenticeship, and usually an advanced trade certificate examination to be taken near the end of the apprenticeship. Since the inception of these awards this board had issued 81 195 New Zealand Trade Certificates and 22 921 Advanced Trade Certificates as at 31 March 1989.

Apprentices in almost all trades are obliged to spend at least three years in part-time vocational study. However, the long-established pattern where apprentices attend evening theory classes and short block, or day-release courses for practical training is changing.

Table 9.23. TECHNICIAN, TRADE AND TYPING/SHORTHAND CERTIFICATES ISSUED

Year ended MarchTechnicians certificates three-stageN.Z. certificates five-stage course finalTrade certificatesAdvanced trade certificatesIndustrial practiceTypingShorthand
19852737664,0229961,141....
19862315022,2457241,455....
19871794943,3211,0571,3182,230103
19883724552,8909801,6772,18960
19892,26156P2,7855793,9006,400329
Source: Ministry of Education.

Other courses. In addition to the national trade and technician courses, there is a large number of important courses such as national certificate, national diploma and polytechnic diploma courses. These have been developed nationally to meet vocational needs. These include courses in business studies, electronic data processing, journalism, and in industrial and commercial design and crafts. In addition, instruction is given on the separate examination syllabuses for independent organisations such as the New Zealand Society of Accountants, New Zealand Institute of Management, and the Real Estate Institute of New Zealand. A wide range of vocational courses have also been organised regionally to meet local demands.

The largest number of full-time polytechnic students take the nursing course. This is a three-year full-time course offered by 15 polytechnics. The course has the endorsement of the Department of Health and the Nursing Council of New Zealand. Post-basic courses are available in special areas such as midwifery.

Transition education

Polytechnics play an important role in providing transition education and training. In many cases these programmes account for more than one-third of the total courses offered. In the case of 12 youth learning centres in smaller population centres the proportion is nearer 100 percent. Since 1987 these programmes have been provided under contract to regional employment and access councils, which are themselves currently government funded. Responsibility for allocating the funding will transfer from the Department of Labour to the Ministry of Education on 1 July 1990.

Polytechnics have also developed transition courses independent of ACCESS funding. These include the Link programme in which secondary school students undergo specialised vocational education and training, either in blocks or on an extended part-time basis, while continuing with their secondary studies. Foundation, employment rich and bridging courses have also been established and are offered, in varying mixes, by all polytechnics.

Table 9.24. FULL-YEAR FULL-TIME ENROLMENTS AT POLYTECHNICS

Full-time courses: full-yearAt 1 July 1987At 1 July 1988
MalesFemalesTotalMalesFemalesTotal

* Classified according to the UNESCO International Standard Classification of Education, Levels are graded from preschool (level 0) to post-graduate (level 7), with level 9 describing out-of-school education without prerequisites.

Source: Ministry of Education.

Pre-vocational57126666471,313
Level 3*
     Agriculture, forestry and fisheries80561367340113
     Fine and applied arts214061153752
     Commercial and business administration221,6561,678301,4031,433
     Service trades149315464106284390
     Mathematics and computer science639
     Medical science and health-related5364177
     Engineering296352121
     Trade, craft, and industrial programmes41722964680265345
     General programmes194665
                    Subtotal7532 3943 1471 0252 7693 794
Level 5*
     Agriculture, forestry and fisheries4222671320
     Fine and applied arts135152287129150279
     Commercial and business administration8167891,6058479451,792
     Mass communication and documentation3274106244872
     Mathematics and computer science433477337173510
     Medical science and health-related4394,2294,6684814,5144,995
     Engineering5914063169358751
     Architecture and town planning923112313242174
     Trade, craft, and industrial programmes130150280113129242
     Humanities, religion, and theology2222453641
     Service trades2156773912
     Home economics, maintenance, and gardening4913
     Natural science283765203353
     Social and behavioural science91524
                    Subtotal2 3465 6608 0062 7916 1508 941
                    Total3 0998 05411 1533 8168 91912 735

Table 9.25. FULL-YEAR PART-TIME ENROLMENTS IN TECHNICAL AND CONTINUING EDUCATION, 1988*

Part-time coursesMalesFemalesTotal

* As at 1 July.

† See footnote, table 9.24.

Source: Ministry of Education.

Pre-vocational8642,4633,327
Level 3
     Authority for Advanced Vocational Awards1,1301221,252
     Trade Certificate15,6142,72418,339
     Other9,82712,94622,773
Level 5
     Authority for Advanced Vocational Awards7,4771,9079,384
     Trade Certificate2,663952,758
     Other9,6846,92416,608
Level 9
Non-vocational11,05126,63637,687
                    Total58 31053 818112 128

Continuing education

National Council Of Adult Education. Since 1987 this council has been in recess. The council's functions and powers are set out in the Adult Education Act 1963. The council's main function was to provide the Minister of Education with advice on the development of adult education in New Zealand. During 1985–86 an interim advisory group was established to decide on the needs of non-formal education groups and funding for those groups, and to decide on the type of organisation which would best serve the needs of non-formal education in the future. The assets of the council are to be handed to a trust which has been established. The trust is waiting incorporation and will manage a national resource centre. This centre is to be funded from the Ministry of Education by contract through Community Learning Aotearoa New Zealand.

As a result of these developments the Adult Education Act 1963 is to be repealed.

Community Learning Aotearoa New Zealand (CLANZ). This group was established as the result of the report to the Minister of Education by the interim advisory group on non-formal education. Its main function is to advise the Minister of Education on non-formal and community education and to disburse grants to non-formal community education groups.

University extension. All seven universities have centres for continuing education.

A typical university education centre has a director-in-charge and a staff of lecturers in a range of academic disciplines. Staff may plan and develop sections of the department's programme or have responsibilities for a geographical area and its programme. There are marked differences in their approaches and systems of organisation used. A large number of university teaching staff are co-opted in order to supplement the activity of the full-time continuing education centre staff. The courses are conducted by various methods—lecture courses, study conferences, seminars, schools of varying lengths (both residential and non-residential), and correspondence courses. Most universities continue to offer the general public substantial extension programmes in the liberal studies area. There has been, however, a significant increase in programmes designed for specialist groups, especially occupational. Some of these are national in scope.

Community education programmes. Most organised adult education is provided by day schools and community education classes at secondary schools. There has been a recent increase in adult classes leading to the School Certificate examination, but there is also a wide range of other examinable and non-examinable courses. An amendment to the Education Act in 1975 allowed adults to return full-time or part-time to secondary schools, in day classes. For the next few years there was a rapid increase in the number of adult admissions to day classes. In 1987 there were 436 full-time and 2445 part-time adult students. This is in addition to the community education programmes which cater for 156 000 enrolments annually.

Correspondence education. The main agencies in the field of distance education are the Correspondence School (with over 10 000 adult students enrolled in 1988), the extramural studies of Massey University (over 12 000), and the Open Polytechnics of New Zealand (over 36000).

Community centres. Community centres, which opened experimentally some 40 years ago in Feilding, Christchurch, and Westport, were the forerunners of the school-based community learning centres. Generally the centres receive professional and ancillary staffing and an annual grant. In effect, 13 community learning centres have been established in association with primary and secondary schools.

Several schools which have developed large community programmes have been given lesser levels of support in the meantime. Other schools operate successful programmes within their own resources. All have developed community education programmes which aim at increasing community involvement in continuing education by making a wider use of schools for expanded extension programmes and, by using the resources of the community, to enrich the programmes of pupils still at school.

The community action programme in the Wairarapa region has now merged with the Wairarapa Community Polytechnic. Together with the Wairarapa REAP they provide a range of education programmes to meet a wide variety of learning needs in the area. The community education service in the Nelson region is at the Nelson Polytechnic and together they provide for the continuing and community educational needs of people in the Nelson area.

Organisations contributing to non-formal and continuing education. Many voluntary organisations make some provision for continuing education. For most of them, such as the Playcentres Federation, and the Country Women's Co-ordinating Committee, continuing education is only one aspect of their overall activities. However, several organisations, such as the New Zealand Workers' Educational Association, have community education as their primary purpose.

New Zealand Workers' Educational Association—This is an independent voluntary organisation which provides further educational opportunities for adults. District councils are located in Auckland, West Auckland, Waikato, New Plymouth, Kapiti Coast, Wellington, Canterbury, Otago, and Southland. Branches exist in Upper Hutt, Lower Hutt, and Christchurch. District councils and branches run varied programmes, including seminars, courses, summer schools, public forums, and literacy programmes. Special courses are run for the elderly, the unemployed, and trade unions. The WEA book discussion scheme has 211 groups (over 2000 people) throughout the country.

Trade Union Education Authority—This authority was set up under the Union Representatives Education Leave Act, to provide for authorised representatives to be granted leave on pay by their employers to attend approved union education courses.

The authority also conducts courses, produces resource materials and advises and assists unions in each district to set up their own educational programmes.

There is a national office in Wellington and seven regional offices.

Trade Union Education Authority Distance Education Unit—The Workers' Educational Association Trade Union Postal Education Service was fully integrated with the authority on 1 April 1989. It operates as a distance education unit and provides non-formal, low-cost correspondence programmes for union members and their families.

Country Women's Co-ordinating Committee—The committee is involved with international affairs through the Associated Country Women of the World and in particular the South Pacific Country Women of the World. Its main focus is on the South Pacific, giving financial and practical aid, and assistance with the training of women in the Pacific Islands.

Contributors

  • 9.1 Ministry of Education; New Zealand Council for Educational Research.

  • 9.2–9.3 Ministry of Education.

Historical

Ministry of Education; Department of Statistics; University Grants Committee.

Further information

Administering for Excellence: Report of the Task Force to Review Education Administration, 1988.

Annual Report of the New Zealand Council for Educational Research.

Assessment for Better Learning: A Public Discussion Document. Department of Education, 1988.

Before Five: Early Childhood Care and Education in New Zealand. Department of Education, 1988.

Education to be More: Report of the Early Childhood Care and Education Working Group. Department of Education, 1988.

Education Statistics of New Zealand. Department of Education (annual).

Educational Research Series. New Zealand Council for Educational Research.

Learning for Life: Education and Training Beyond the Age of Fifteen. Department of Education, 1989.

Learning for Life: Two: Policy Decisions August 1989. Department of Education.

New Zealand School Enrolment Projections 1987–1997. Department of Education, 1987.

New Zealand Teachers College Summary Statistics. Ministry of Education (annual).

Primary Staffing Survey. Ministry of Education (annual).

Profile of Full-year Full-time Technical and Continuing Education Students. Research and Statistics Division, Ministry of Education (annual).

Profile of New Entrants to Teachers College. Ministry of Education (annual).

Report of the Ministry of Education (Parl. paper E. 1)

Report of the Maori Education Foundation (Parl. paper E. 24)

Report of the Pacific Islands Polynesian Education Foundation (Parl. paper E. 21)

Reports of the University Grants Committee and University Institutions (Parl. paper E. 3).

Report on the Working Group on Post-Compulsory Education and Training. Department of Education, 1988.

School Certificate Examination Statistics. Ministry of Education (annual).

Secondary Staffing Survey. Research and Statistics Division, Ministry of Education (annual).

State Secondary Schools in New Zealand. Department of Education, 1986.

Tomorrow's Schools: The Reform of Education Administration in New Zealand. Minister of Education, 1988.

Chapter 10. Justice and law

10.1 Legal system

New Zealand has inherited a tradition of an independent judiciary, seen as a protection against unnecessary intrusion by the state in the lives of citizens. The Judicature Act 1908 and the Constitution Act 1986 contain a number of constitutionally significant provisions, designed to ensure judicial independence. High Court judges (including those who sit in the Court of Appeal) are appointed by the Governor-General. They have security of tenure and may not be removed from office except by the Sovereign or the Governor-General on grounds of misbehaviour or incapacity upon an address of the House of Representatives.

The salaries of judges are determined by the Higher Salaries Commission under the Higher Salaries Commission Act 1977. Salaries may not be diminished during a judge's commission. No person may be appointed a judge unless he or she has held a practising certificate as a barrister or solicitor for at least seven years. The retirement age is 68, although former judges may be re-appointed as acting judges for two years, or one year if the judge is 72 years of age when reappointed.

The District Courts Act 1947 provides for the appointment and tenure of District Court judges. They are appointed by the Governor-General, who may, if he or she thinks fit, remove a judge for inability or misbehaviour. The convention against arbitrary removal ensures the independence of District Court judges in the exercise of their judicial functions. The salaries of District Court judges are also determined by the Higher Salaries Commission. Qualifications for appointment are similar to those for High Court judges. The retirement age is 68. Retired judges may be appointed from time to time by the Governor-General as acting judges for a term not exceeding two years, or one year if the person has attained the age of 72.

The appointments, salaries, tenures, and retirement of judicial officers of specialist courts are those of High Court or District Court judges, depending on the ranking of the court in the hierarchy.

Hierarchy of courts

At the head of the hierarchy of courts of New Zealand is the Judicial Committee of the Privy Council. Below this is the Court of Appeal, followed by the High Court, and the District Courts. All courts exercise both criminal and civil jurisdiction.

The Judicial Committee of the Privy Council is the final appeal tribunal for New Zealand, although the Government announced in October 1987 that it would remove the right to appeal to the Privy Council. The judicial committee advises the Sovereign in the same way as it did when New Zealand was still a British colony. Most Commonwealth countries have abolished the right to appeal to the judicial committee, although it still exists in certain dependent territories (like Gibraltar and Hong Kong) and in the Bahamas, Barbados, Belize, Gambia, Jamaica, Mauritius, the Seychelles, Singapore, and Trinidad and Tobago.

The judicial committee is not an English court, although its members are primarily eminent British judges. New Zealand judges have sat on the judicial committee in recent years. The judicial committee acts like a court, but it does not deliver a judgment. It submits its opinion on a case it has heard to the Sovereign. This is given effect by an Order-in-Council. By constitutional convention the Sovereign is required to make the necessary order.

Appeals to the Privy Council may be brought by leave of the court appealed from, or by special leave of the Privy Council itself. Leave is granted as of right from any final judgment of the Court of Appeal, where the matter in dispute amounts to the value of $5 000 or more, or involves directly or indirectly some claim to property, or some civil right exceeding that value. The Privy Council has a discretionary power to grant special leave to appeal in criminal cases. Such leave is not commonly granted in criminal appeals from New Zealand.

The Court of Appeal is the highest appeal court in New Zealand. A Court of Appeal has existed since 1846. It is now constituted by the Judicature Amendment Act 1957.

The court consists of the Chief Justice, who is a member by virtue of his or her office as the head of the judiciary; a judge of the High Court appointed by the Governor-General as its President; and four other judges of the High Court appointed by the Governor-General as judges of the Court of Appeal. Additional judges of the High Court may be nominated by the Chief Justice to sit on the Court of Appeal. The judges of the Court of Appeal are also judges of the High Court. They have seniority over all other judges of that court except the Chief Justice or the acting Chief Justice.

The primary function of the Court of Appeal is to settle the law of New Zealand and to reconcile conflicting decisions of the courts below. It hears and determines ordinary appeals from the High Court. Certain other proceedings in inferior courts may, by order of the High Court, be removed to the Court of Appeal. The court does, however, also have some original jurisdiction.

The Court of Appeal may remit any proceedings pending before it to the High Court and all its judgments, decrees, and orders may be enforced by the High Court.

Criminal jurisdiction—The Court of Appeal hears appeals against convictions and sentences imposed in the High Court or District Court trial courts. All appeals, except on a question of law, are by leave only. If it allows an appeal, the Court of Appeal may quash the conviction, vary the sentence, or order the case to be retried.

The decisions of the Court of Appeal are final except where an appeal lies to the Judicial Committee of the Privy Council.

The High Court (then the Supreme Court) was first created in 1841. It has all the jurisdiction which may be necessary for a court to administer the laws of New Zealand.

The High Court exercises jurisdiction in cases of major crimes, Admiralty rem proceedings, the more important civil claims, appeals from lower courts and tribunals, and reviews of administrative actions. The High Court also has inherent jurisdiction to punish for contempt of court. It consists of the Chief Justice and 32 other judges, as prescribed by the Judicature Act 1908. An additional judge or-judges may be appointed, whenever the Governor-General deems it necessary by reason of the absence, or anticipated absence, of any of the judges on leave before retirement. The Governor-General may also, at any time during the illness or absence of any judge, or for any other temporary purpose, appoint any person (including a former judge) to be a temporary judge for a period of no more than two years in total.

All the judges of the High Court are stationed in Wellington, Auckland, Hamilton, or Christchurch. The High Court travels on circuit to Whangarei, Rotorua, Gisborne, Napier, New Plymouth, Wanganui, Palmerston North, Blenheim, Nelson, Greymouth, Timaru, Dunedin and Invercargill. There are High Court offices at Masterton and Tauranga, but the court does not sit in those areas.

Administrative Division—This division consists of up to six judges of the High Court who are assigned to the division by the Chief Justice. Lay persons may be appointed to sit as members of, or assessors with, the Administrative Division if any other act makes provision for such appointments.

The division has a mixed jurisdiction in administrative matters based on a variety of legislation and case law. In some areas it can consider appeals from administrative tribunals, and substitute its own decisions for those of the lower body. In other areas it has powers of judicial review, i.e., it can set aside decisions of administrative tribunals made in excess of their legal authority, or in breach of the rules of natural justice.

The division has jurisdiction to deal with (a) appeals which are to be heard and determined by it under any enactment (these are appeals from the decisions of a large number of administrative tribunals); (b) proceedings other than appeals which are referred to it by any other enactment (more than 30 acts confer jurisdiction on the division); and (c) applications for orders of certiorari, prohibition, or mandamus; declaratory judgments, orders, or injunctions; and applications for review under Part I of the Judicature Amendment Act 1972 which are referred to it from time to time by the Chief Justice. Applications for review may be made where any person has exercised, refused, or purported to exercise a statutory power or a statutory power of decision. The terms ‘statutory' power’ and ‘statutory power of decision’ are defined in the Judicature Amendment Act 1972. There is no appeal on fact or law from the decision of the division, unless provided in the statute conferring the right to appeal.

The Administrative Division of the High Court sits in Wellington only.

Commercial list—Instead of being included in the normal order of cases to be heard in the High Court, a separate list of commercial cases is kept to ensure they are resolved quickly. The Judicature Amendment Act 1986 made provision for the establishment of this list at the office of the High Court at Auckland for an initial period of four years. The Governor-General may extend that period by notice in the New Zealand Gazette or declare that it continue indefinitely.

Masters—There may be up to four masters of the High Court with the legal qualifications and experience necessary for judicial appointment. Masters may exercise certain powers of the High Court concurrently with High Court judges. Masters deal inter-alia with applications for summary judgments, specified company and land transfer matters, the assessment of damages where liability has been determined, and trials where the amount of the debt or damages only is in dispute.

Table 10.1. JUDGES OF THE COURT OF APPEAL AND HIGH COURT*

* As at 1 January 1990.

† Includes Court of Appeal judges.

Chief Justice:Rt. Hon. Sir Thomas Eichelbaum, G.B.E.
Court of Appeal:Rt. Hon. Sir Thomas Eichelbaum, G.B.E. (ex officio); Rt. Hon. Sir Robin Cooke, K.B.E.,
President; Rt. Hon. Sir I. L M. Richardson; Rt. Hon. E. J. Somers; Rt. Hon.
M. E. Casey; Hon. G. E. Bisson.
High Court:Rt. Hon. Sir Thomas Eichelbaum, G.B.E.; Hon. M. F. Chilwell; Hon. R. I. Barker;
Hon. J. F. Jeffries; Hon. J. B. Sinclair, Hon. A. D. Holland; Hon. T. M. Thorp;
Hon. L. M. Greig; Hon. C. C. Fraser; Hon. J. H. Wallace; Hon. D. L. Tompkins;
Hon. P. G. Hillyer; Hon. R. G, Gallen; Hon. J. S. Henry; Hon. R. A. Heron; Hon.
A. A. T. Ellis; Hon. N. W. Williamson; Hon. R. P. Smellie; Hon. R. E. Wylie; Hon.
R. A. McGechan; Hon. J. A. Doogue; Hon. A. P. C. Tipping; Hon. N. C. Anderson;
Hon. T. M. Gault; Hon. J. B. Robertson; Hon. R. L Fisher; Hon. D. P. Neazer.

District Courts. Unlike the High Court, which is one court for New Zealand, District Courts are established as separate entities in various localities.

The District Courts are constituted under the District Courts Act 1947, which, at the end of 1989, limited the number of District Court judges to 98. Judges are appointed by the Governor-General, who also appoints a Chief District Court Judge, who oversees the administration of the courts and also sits in court. District Courts have extensive civil and criminal jurisdiction. A number of District Court judges are specially warranted to preside over jury trials of criminal cases.

Justices of the Peace can sit as a District Court to hear a limited number of minor criminal and traffic charges which, if proven, attract a maximum fine of $500.

Specialist courts

In New Zealand there are a number of courts with specialist functions.

Labour Court. This court is constituted under the Labour Relations Act 1987. It consists of the Chief Judge and four other judges. For certain types of case, in particular personal grievances, demarcation disputes and some apprenticeship matters, there is also provision for the judge to appoint two panel members from a panel established by the Minister of Labour.

The judges of the court are appointed from time to time by the Governor-General. Qualifications for appointment, tenure, and retirement age are the same as these applying to High Court judges.

Broadly speaking, the Labour Court has jurisdiction to settle disputes in the industrial relations field, except disputes of interest, which are handled by the Arbitration Commission.

The court may state a case for the Court of Appeal on any question of law (other than any question as to the construction of an award or collective agreement). Any person dissatisfied with any decision of the court (other than a decision on the construction of an award or collective agreement) may appeal to the Court of Appeal.

Family Courts. Family Courts have been established since 1980 as divisions of the District Courts. The Governor-General appoints the Family Court judges—who are also judges of the District Court—and a Principal Family Court Judge.

Family Courts have jurisdiction to deal with dissolution of marriages, adoption, guardianship applications, domestic actions, matrimonial property, care and protection applications in respect of children and young persons, and similar matters. They may state a case on a point of law to the High Court or transfer complex proceedings to that court.

Youth Courts. These courts are constituted by the Children, Young Persons, and Their Families Act 1989, which came into force on 1 November 1989. They replaced Children and Young Persons Courts. The jurisdiction of the courts is exercised by specially designated District Court judges. Offences committed by children (under 14 years) and young persons (older than 14 but less than 17 years of age) come before the Youth Courts initially and most are dealt with there. The remainder proceed to District Courts or the High Court The Youth Courts do not hear matters relating to the care or protection of children and young people. These are dealt with in the Family Courts.

Maori Land Court and Maori Appellate Court. These courts are constituted under the Maori Affairs Act 1953 and have jurisdiction to hear matters relating to Maori land. The Governor-General may from time to time appoint a Chief Judge and other judges of the court as may be required. The judges of the Maori Land Court are also judges of the appellate court. Three or more of the judges have power to act as the Maori Appellate Court. All judges hold office during the pleasure of the Governor-General and retire at age 68 (although a retired judge may be appointed as a temporary judge for up to 12 months).

The Maori Land Court or the appellate court may state a case for the opinion of the High Court on any point of law arising in proceedings before it. The decision of the High Court is subject to an appeal to the Court of Appeal. A case stated for the opinion of the High Court may be removed to the Court of Appeal for re-hearing. The decision of the High Court or Court of Appeal, as the case may be, on any case stated is binding on the Maori Land Court and the Maori Appellate Court. In 1989 these courts came under the jurisdiction of the Department of Justice, when the Department of Maori Affairs was disestablished.

Tribunals

Over 100 tribunals, authorities, boards, committees or related bodies exist to deal with disputes, largely between individuals, on matters such as environmental planning; economic issues; scientific and technical matters; censorship; welfare and benefits; taxation; occupational licensing and discipline; activity licensing, e.g., shop trading hours; labour relations, and company registration. It is beyond the scope of this publication to deal in detail with the various tribunals and other bodies in existence. The main tribunals which deal with individual disputes are described below together with the Waitangi Tribunal and the Planning Tribunal, two of the most important of all tribunals.

Disputes tribunals. These tribunals (previously known as Small Claims Tribunals) were established in 1976 as divisions of the District Courts. The tribunals have jurisdiction to determine disputes up to a value of $3 000 based on contract, quasi-contract, or tort (in respect of the destruction or loss of any property, damage or injury to any property, or recovery of property). Claims may also be determined by the tribunal up to the value of $5 000 if the plaintiff and the defendant agree to settle in this way, rather than take the matter to a higher court. Every District Court, apart from the five courts with police registrars, has a disputes tribunal. There are 30 part-time referees to service the 58 tribunals.

Equal Opportunities Tribunal. This tribunal was set up under the Human Rights Act 1977 to deal with complaints of unlawful discrimination. Each sitting of the tribunal consists of a barrister or solicitor who has not less than seven years practice and two other appointees with experience in the area.

Residential Tenancies Tribunals. These were set up under the Residential Tenancies Act 1986 to determine all disputes arising between landlords and tenants, to which the Act applies. The tribunals adjudicate on disputes relating to discrimination, notice to quit, bond, and rent arrears. They are set up on similar lines to disputes tribunals—the hearings take place at District Court premises under the authority of part-time referees. See also section 19.1, Housing.

Waitangi Tribunal. This tribunal was set up under the Treaty of Waitangi Act 1975 to consider claims by the Maori people under the Treaty of Waitangi. It was originally set up to consider only claims from 1975 onwards but its jurisdiction-was extended in 1985 to claims dating back to 1840. See also section 6.4. Maori population.

Planning Tribunal. Constituted by the Town and Country Planning Act 1977, the Planning Tribunal is a court of record and has all the powers of a District Court in the exercise of its civil jurisdiction in respect of adding and substituting parties, summoning witnesses, administering oaths, hearing evidence, conducting proceedings, and maintaining order. The tribunal consists of not more than five District Court judges, each of whom must be a planning judge, and not more than ten other members. Every member is appointed for a period of up to five years by the Governor-General on the recommendation of the Minister of Justice, after consultation with the Minister for the Environment. From time to time the Governor-General appoints one of the planning judges to be the Principal Planning Judge of the Planning Tribunal.

The tribunal has jurisdiction to make decisions relating to the preparation, implementation, and administration of regional, district and maritime planning, and jurisdiction to hear appeals for water rights to regional councils, and to conduct enquiries into the compulsory taking of land, and prospecting rights under the Mining Act 1971. The tribunal may state a case on a point of law for the opinion of the High Court. A party to proceedings before the tribunal who is dissatisfied with any determination law may appeal to the High Court by way of case stated for the opinion of the court on a point of law only. All appeals are heard by the Administrative Division of the High Court.

Sources of law

The law of New Zealand consists of the common law, statute law enacted by the New Zealand Parliament, a number of United Kingdom statutes which are still in force in New Zealand, regulations, by-laws, and other forms of subordinate legislation.

The common law is sometimes referred to as case law or judge-made law. It is based on general rules developed by the courts in England over centuries and became part of the law of New Zealand in 1840, Like any statute law, the common law continues to develop. When applying the common law. New Zealand courts take into account common law principles developed in New Zealand and other parts of the Commonwealth, notably the United Kingdom, Australia, and Canada. The common law can be reversed or amended by statute law.

New Zealand statutes. The Constitution Act 1986 contains the law-making power of Parliament. It replaces section 53 of the Constitution Act 1852 and states that the Parliament of New Zealand continues to have full power to make laws. Over the years that power has increased. Parliament now has full power to make laws having effect in, or in respect of, any part of New Zealand and laws having effect outside New Zealand. The extra-territorial lawmaking power is rarely exercised, except in relation to crimes committed aboard Commonwealth ships or aeroplanes or any ship or aircraft that arrives in New Zealand. There are no constitutional restrictions on the laws Parliament can enact.

United Kingdom statutes. A number of United Kingdom statutes are still in force in New Zealand. They are those passed before 1840 (when New Zealand first became a British colony) which were applicable to the circumstances of the colony at that date, and statutes passed between 1840 and 1947 which extended to New Zealand expressly or by necessary implication.

Many United Kingdom statutes have been repealed or replaced by enactments of the New Zealand Parliament. A few of particular constitutional significance remain: the Mapa Carta of 1297, the Petition of Right 1627, the Bill of Rights 1689, and the Act of Settlement 1700.

In 1947 New Zealand adopted the Statute of Westminster of 1931. As a result the power of the United Kingdom Parliament to make laws for New Zealand could be exercised only at the request, and with the consent, of the New Zealand Parliament. The Constitution Act 1986 removed this residual power of the United Kingdom Parliament to make laws having effect in New Zealand. It had not been applied since 1947.

The Imperial Laws Application Act 1988 lists the United Kingdom legislation which is still in force in New Zealand.

Subordinate legislation. A number of statutes empower the Governor-General to make regulations by Order-in-Council. Local authorities and a number of other bodies may make by-laws in accordance with the relevant statutes. The courts may examine regulations and by-laws and declare them in valid if they go beyond the limits prescribed by statute.

Civil jurisdiction

The High Court has original jurisdiction to hear and determine civil proceedings including:

  • Proceedings in contract and tort;

  • Equity;

  • Supervisory powers over inferior courts and tribunals;

  • Wills and administration of the estates of the deceased;

  • Dissolution of partnerships and the taking of partnership accounts;

  • The sale and distribution of the proceeds of any property subject to a lien or charge;

  • Proceedings relating to mortgages, leases, sale, or partition of land, including specific performance of contract;

  • Execution of trusts, charitable or private;

  • Rectification, or setting aside, or cancellation of deeds or contracts;

  • Proceedings relating to the insolvency of individuals and companies;

  • Family law (matrimonial property, and proceedings under the Family Protection Act 1955;

  • Electoral petitions;

  • Admiralty; and

  • Absconding debtors.

The High Court also issues declaratory judgments and hears appeals from the District Courts and from a number of administrative tribunals.

Decisions on many civil proceedings in the High Court may be appealed to the Court of Appeal, which in 1988 heard 148 civil appeals (of which 41 were allowed).

District Courts have jurisdiction to hear proceedings founded on contract or tort and other civil claims (including equitable claims) where the amount of the debt, demand, or damage, or the value of the chattels claimed is no more than $50 000. In proceedings for the recovery of land the courts have jurisdiction if the rent payable (if any) does not exceed $25 000 a year or where the value of the land does not exceed $200 000. The District Courts may hear proceedings involving a claim exceeding $50 000 if the parties agree in writing that the court has jurisdiction to hear and determine the proceedings.

Table 10.2. CIVIL COURT ACTIONS

 High CourtDistrict Courts
19851986198719881985198619871988
Plaints entered and actions commenced4,0514,1985,2566,625129,737150,781133,409148,439
Amount sued for $(000)183,468259,310696,830861,613121,651145,364149,194190,604
Number of judgments entered700738....67,15170,49664,08666,078
Amount of judgments $(000)13,93032,315....45,24754,59058,31574,927

Jury service

Every person between the ages of 20 and 65 years (inclusive) is eligible for jury service, subject to some exceptions. Those who because of their occupation are not appropriate to serve on a jury are ineligible, and a person may be excused if jury service would cause serious inconvenience or hardship, or if it is against a person's religious beliefs to serve on a jury.

The following people are not qualified to serve on a jury in any court on any occasion: (a) anyone who, at any time, has been sentenced to imprisonment for life or for a term of three years or more, or to preventive detention; and (b) anyone who, at any time within the preceding five years, has been sentenced to imprisonment for a term of three months or more.

Automatically ineligible are: members of the Executive Council; members of Parliament; judges, members and commissioners of courts; visiting justices and members of the Prisons Parole Board; those exercising the summary jurisdiction of District Courts; barristers and solicitors holding current practising certificates; police officers and traffic officers; officers of the High Court or a District Court or the Department of Justice, officers of any penal institution or work centre, or probation officers; mentally disordered persons; and those who are incapable of serving because of blindness, deafness, or any other permanent physical infirmity.

Legal aid

Civil proceedings. The Legal Aid Act 1969 gave effect to the principle that no one should be prevented by lack of means from having their grievances heard and determined fairly by the courts. The aid is available for almost all civil proceedings other than dissolution of marriage. In order to receive legal aid the applicant must have a sufficiently meritorious case. Except in special cases of hardship, anyone receiving aid is required to make a contribution of $50 towards the cost of proceedings, and is also liable to make an additional contribution proportionate to his or her income and capital.

The Department of Social Welfare is responsible for investigating the resources of applicants for legal aid; for assessing their ‘disposable income’ and ‘disposable capital’ within the statutory limits; and for reporting to district committees on the maximum contribution, if any, that applicants should be expected to pay towards the cost of the proceedings in respect of which legal aid is sought.

Criminal proceedings. The Offenders Legal Aid Act 1954 provides that anyone charged with or convicted of any offence may apply for legal aid. Whether or not the application is granted depends on the court's consideration of the means of the person charged or convicted and the gravity of the offence, together with any other circumstances the court sees as relevant. If legal aid is granted the court appoints and pays counsel according to a scale of fees fixed by regulation. There are duty solicitors available at each District Court to advise unrepresented defendants as to their rights as regards bail, legal representation and how to plea.

A Legal Services Bill was introduced to Parliament late in 1989, if passed it will make significant changes to the legal aid system.

Community law centres and neighbourhood law offices

These are offices set up to provide various legal services, particularly advice to people who cannot afford a lawyer. They also develop legal resource material. There are currently eight such offices nationally. They receive funding from a variety of sources, including city councils and central government, and the amount of funding varies from centre to centre. Staff are paid out of these funds.

10.2 Criminal justice

In New Zealand the more serious crimes are defined by the Crimes Act 1961 (which is under review). The Summary Offences Act 1981 provides for a wide variety of lesser offences not included in the Crimes Act. These include offences such as disorderly behaviour, offences against public order, offences against the person and property—such as common assault, wilful damage, and loitering and trespass.

Reported offences

For the year ended 31 March 1989, a total of 454 931 offences were reported to police, a decrease of 3.8 percent from the previous year. The clearance rate was 44.6 percent in 1988 compared with 44.4 percent in 1989. The number of violent offences increased from 25 485 for the year ended 31 March 1988 to 27 692 at the same time in 1989.

During the year 70 murders were investigated. The number of robberies reported was 1419, an increase of 5.9 percent over the previous year. Aggravated robbery rose by 19.1 percent from 689 offences for the year ended 31 March 1988 to 821 in 1989. Non-aggravated robbery decreased by 7.8 percent from 537 offences to 495 offences.

There were 695 reported sexual violations (an 18.6 percent increase in the number of offences reported in 1988). The clearance rate fell from 7.1.1 percent to 66.7 percent. The number of sexual offences decreased by 3.6 percent, although that of sexual attacks increased by 32 (1.6 percent).

During 1988–89 non-cannabis drug offences decreased by 3.6 percent to 1359 offences when compared with the previous year. Cannabis offences rose by 10.5 percent to 18 009 and of these, 12 983 cases were prosecuted.

In total, reported drug and anti-social offences rose by 6.6 percent from 50 247 to 53 797 and the clearance rate was 91.7 percent.

Dishonesty offences reported increased to account for the major proportion of all reported offences, 61.7 percent compared with 63.7 percent. Within this group, burglary offences increased by 1.3 percent from 77 989 to 78 995. Car conversions increased by 4.3 percent from 57 912 to 60 390, theft decreased by 1.6 percent from 114 263 to 112 432 and fraud rose 1.4 percent from 26 108 to 26 461.

Of the 28 police districts, only ten reported a decrease in the number of reported offences during the year ended 31 March.

Children and young persons (i.e., those under 17 years of age) were responsible for 19.9 percent of cleared offences and 50 percent of all offenders were under 21 years of age. Of all offenders, 82 percent were male and 18 percent were female. In the offence category of dishonesty, 34.3 percent of cleared offences involved children and 59.3 percent of offenders in this category were aged under 21 years.

Summary criminal proceedings

District Court judges deal summarily with the majority of indictable offences. They have jurisdiction over all crimes against property and all but the most grave of other crimes, such as treason, homicide, unlawful sexual connection, and perjury. A District Court judge may, however, decline to deal with an offence summarily, and the accused is committed for trial in the High Court in the ordinary way. The accused person also has the right to claim jury trial if he or she is charged with any offence, indictable or summary, punishable by imprisonment for more than three months.

A defendant may be prosecuted at a court hearing for several charges of one or more offences, and in the following tables all are included in ‘total charges’, which therefore exceed the number of people charged. The principal charge (i.e., that for which the heaviest sentence is imposed) for each person at each court appearance is selected to arrive at the ‘distinct case’ classification. As a person may appear before a court on more than one occasion during the year, the number of distinct cases will not necessarily correspond with the number of individuals involved.

Table 10.3. CONVICTIONS FOR OFFENCES TRIED SUMMARILY IN DISTRICT COURTS

Type of offence19831984198519861987

* Includes breaches of the Road User Charges Act 1977, careless driving and a number of minor traffic offences. Excludes parking offences.

† Counting only the principal offence in cases where a person was charged simultaneously with two or more offences.

Offences involving violence or threats of violence5,7036,2226,2936,4397,025
Sex offences402473499552529
Other offences against the person2,8763,2713,4994,1404,386
Unlawful taking of property (includes conversion of vehicles)27.55026,98027,57929,12229,524
Fraud and false pretences11,42712,45712,13814,10815,121
Wilful damage and trespass3,9804,3934,0074,7484,463
Forgery, uttering, and currency offences1,4521,3431,1041,0521,001
Drug offences7,4649,23310,35711,25111,570
Offences against the administration of justice4,6824,9884,9565,2855,766
Drunkenness and drunken driving offences22,97424,26123,19423,64825,263
Other imprisonable traffic offences10,11010,5769,83710,61311,306
Other offences against good order6,4676,7577,2887,9407,596
Offences against decency366372376395402
Offences against the Sale of Liquor Act6,5796,2437,1807,1255,659
Other offences21,25121,82820,62918,21714,116
               Subtotal133,283139,397138,936144,635143,727
Minor traffic offences*200,217184,003226,111150,703149,467
               Total333 500323 400365 047295 338293 194
Distinct cases250,567240,539277,842216,269213,499

Table 10.4. RESULTS OF DISTRICT COURT HEARINGS

Result of hearing198519861987

* Formerly probation.

† Mainly for traffic offences which do not involve imprisonment.

Imprisonment5,1005,4775,555
Corrective training606696630
Community care3181,017829
Periodic detention9,88011,60313,377
Adult supervision*2,6312,8523,289
Convicted and ordered to come up for sentence if required2,7092,7793,242
Fined171,797184,682178,995
Convicted and discharged (or pay costs)4,0764,9045,505
Community service2,0291,9302,031
Orders made36832946
Dismissed, withdrawn, or struck out27,36228,90328,619
Discharged under section 19 of Criminal Justice Act2,2682,6923,076
                    Total, distinct cases229 144247 864245 194

Traffic offences. These form a large proportion of court prosecutions. The most frequent traffic offences dealt with are breaches of parking regulations and excessive speed. Parking infringements which result merely from overstaying a time limit are dealt with outside the criminal law, and some local authorities and the Ministry of Transport impose speeding infringement penalties. A summary of reported road traffic offences can be found in section 20.4, Road transport.

Table 10.5. TRAFFIC CONVICTIONS IN DISTRICT COURTS

Offence198519861987
* Includes breaches of heavy vehicle licensing and breaches of the Road User Charges Act 1977. Excludes warrant of fitness offences.
Reckless, dangerous, or careless use or driving of motor vehicle causing death111140128
Reckless, dangerous, or careless use or driving of motor vehicle causing injury9459721,012
Driving, or in charge of, motor vehicle under the influence of drink or drugs causing death233245
Driving, or in charge of, motor vehicle under the influence of drink or drugs causing injury63104111
Failing to stop motor vehicle after accident involving bodily injury159155215
Driving, or in charge of, motor or other vehicle under the influence of drink or drugs23,19423,64825,263
Exceeding speed limits31,73435,62736,745
Reckless, dangerous, careless, or inconsiderate use or driving of motor vehicle36,28039,26037,563
Offences relating to the registration or licensing of motor vehicles*13,73415,15417,256
Offences relating to driver's licence17,38820,39321,593
Breaches of parking regulations93,04999,416107,104
Other traffic offences43,76350,88247,616
                    Total260 443285 783294 651

Criminal trials

Until 1981, criminal trials were held only in the High Court. Since then District Court trial courts, currently located in 19 centres, have heard cases for all except the most serious of indictable offences, thus relieving the High Court of a heavy workload.

Criminal cases in the High Court are of two classes: those actually committed for trial or sent up for sentence.

The Court of Appeal hears appeals against convictions and sentences imposed in the High Court and in District Court trial courts. If it allows an appeal, the Court of Appeal may quash the conviction, vary the sentence, or order the case to be retried.

Table 10.6. CRIMINAL TRIALS

YearTried in High CourtSentences in cases of committal for sentenceTotal sentences
Indictments and informationsConvictions
MFMFMFMFTotal
Total counts and charges
19841,3879081155665431,476981,574
19851,4868474351782601,5251111636
19861 269*7677659722581,4981171615
19871 651*1051,057671,069472,1261142,240
19881,7111341,103751,4551052,5581802,738
Distinct persons
198455045426332362466257719
198553554377402592963669705
198658942424363043972875803
198771962544443483289276968
1988742845496043638985981083
YearTried in District Court trial courts
Total countsConvictions
MFMFTotal

* Includes three sent up for sentence but withdrawn or discharged without penalty.

† Includes two sent up for sentence but charges withdrawn or discharged without penalty.

Total counts and charges
19842,4286011,5434041,947
19852,4654691,3682961,664
19861,8092101,1761381,314
19871,9713521,3182431,561
19882,3252951,4911921,683
Distinct persons
198493012662173694
198577710452567592
19867327950655561
198781410459475669
19889471216427872.0

Of the 1894 distinct persons indicted in all trial courts during 1988, 1329 were convicted and sentenced, 23 were still awaiting trial at the end of the year, 305 were acquitted, 16 were found insane, and the prosecution was not proceeded with in the remaining 221 cases.

Table 10.7. CRIMINAL TRIALS—SUMMARY OF OFFENCES

Offence19841985198619871988

* Includes those charged with murder but convicted of manslaughter.

† From 1986 includes sexual violation and unlawful sexual connection. Crimes Amendment Act effective 1 February 1986.

High Courttotal counts and charges, convictions
Offences against the person—
     Murder1215403930
     Attempted murder12512176
     Manslaughter*2224203026
     Rape and attempted rape137120154246266
     Other5165706618491,102
Property and forgery offences383465422517720
Drug offences361315208377436
Other offences13112298165152
                    Total, High Court1 5741 6361 6152 2402 738
 distinct persons convicted
Offences against the person—
     Murder1014363529
     Attempted murder9510106
     Manslaughter*2024202826
     Rape and attempted rape11095106173146
     Other294308376426506
Property and forgery offences93729083107
Drug offences124135128159206
Other offences5952375457
                    Total, High Court7197058039681 083
District Court trial courtstotal counts, convictions
Offences against the person246233217288324
Property and forgery offences1,3871,120838980968
Drug offences180147113181299
Other offences13416414611292
                    Total, District Court trial courts1 9471 6641 3141 5611 683
 distinct persons convicted
Offences against the person152162138179201
Property and forgery offences367301282308312
Drug offences1157782120161
Other offences6052596246
                    Total, District Court trial courts694592561669720

Table 10.8. SENTENCES IMPOSED IN TRIAL COURTS, DISTINCT PERSONS

Sentence19841985198619871988

* Also includes those committed into the care of the Department of Social Welfare.

† Community care is a new penalty from 1 October 1985.

Adult supervision or community service*125132118119123
Ordered to come up for sentence if required3441202126
Discharged699718
Fined137135118130115
Imprisoned8036997741,0071,115
Corrective training151216922
Periodic detention290262272300360
Community care203415
Preventive detention114109
Detained in psychiatric hospital2613
                    Total1 4131 2971 3641 6371 803

Table 10.9. APPEALS IN HIGH COURT AGAINST CONVICTIONS OR ORDERS AND/OR SENTENCES IMPOSED IN DISTRICT COURTS

YearAppeals heardAllowedAbandoned
or withdrawn
Dismissed
19841,892636278978
19851,734516284934
19861,739592289858
19871,653486329838
19881,598534272792

Table 10.1. APPEALS IN COURT OF APPEAL AGAINST CONVICTIONS AND/OR SENTENCES IMPOSED IN TRIAL COURTS

YearAppeals lodgedAppeals heard*
AllowedRefusedTotal
* Appeals allowed and refused will not always add to the total given because of reserved decisions or cases adjourned.
198432997198300
198531665227290
198633360282340
198736866232312
198840872276375

Comparison of female and male offending

The District Courts dealt with 344 058 charges (excluding parking breaches) in 1987. Of these charges 53 514 or 15.6 percent were against females. This total includes 14 243 charges for property offences, mainly shoplifting and other theft, fraud, and false pretences, compared with 45 196 for males.

Table 10.11. CHARGES AGAINST MALES AND FEMALES IN DISTRICT COURTS, 1987

OffenceMalesFemales
NumberPercentNumberPercent
Offences against the person14,9855.21,7663.3
Shoplifting2,9961.04,1587.8
Fraud and false pretences10,6563.75,65010.6
Other property offences31,54410.94,4358.3
Drug offences11,4173.92,1224.0
Offences against good order and decency9,4263.29111.7
Traffic offences182,15462.727,76551.9
Other offences27,3669.46,70712.5
                    Total290 544100.053 514100.0

Compensation for criminal injuries

The Criminal Injuries Compensation Act 1963 introduced the first statutory scheme in the world for compensation by the state to those injured by crimes of violence and to the dependants of persons killed by such acts. The accident compensation scheme administered by the Accident Compensation Corporation now caters for all personal injury by accident in New Zealand, and thus covers the whole range of listed criminal injuries, including pregnancy by rape, and criminal infection with disease. This scheme is designed as a fund of first resort. See section 8.5, Accidents.

10.3 Penal system

New Zealand's penal system has evolved to protect the community from offenders through both deterrence and reformation, with increasing emphasis on rehabilitation over recent decades.

The primary consideration is to ensure that those who are a serious danger to society by reason of the nature of their offences or character of their offending, are removed from the community. Apart from that, wherever possible, sanctions are imposed that do not involve imprisonment. Where prison or other forms of detention are necessary, the aim is to provide resources to assist offenders to live within the law. The interest of the community as well as of the offender is promoted by his/her successful resettlement on release.

Treatment of offenders

The main sanctions available to the courts for dealing with offenders other than by imprisonment, as set out in the Criminal Justice Act 1985 are fines, reparation, supervision, community service, periodic detention and community care. On conviction for murder a mandatory sentence of life imprisonment is imposed. The death penalty for murder was abolished in 1961. Capital punishment was removed as a penalty for all crimes, latterly treason and mutiny in the armed forces, in 1989.

Fines. Fines are by far the most common penalties imposed by the courts. For some minor offences a fine is the only sanction available. Part or all of a tine imposed may be awarded to a victim who suffered physical or emotional harm as a consequence of the offence.

Reparation. Where an offender is convicted of an offence which caused loss or damage to a person's property, or caused the victim emotional harm, the offender may be sentenced to make reparation. Reparation as a sentence was introduced in 1985.

Supervision. Supervision replaced the former category of ‘release on probation’ in 1985. An offender may be sentenced to supervision for between six months and two years, and during that period must accept supervision by a probation officer and observe conditions relating to residence, employment, and association. Additional conditions may be imposed by the judge imposing the sentence.

During 1988, 6697 supervision orders were imposed and the number of people subject to the sentence as at 31 December 1988 was 5883.

Community service. This sentence requires an offender to provide unpaid service to a community organisation, such as a hospital or school. The minimum number of hours which can be imposed is 20 and the maximum is 200, and the sentence must be completed within a twelve month period. The consent of the offender must be obtained prior to imposition. It is also a sentence which is reliant upon the community providing suitable opportunities for the sentence to be discharged.

During 1988, 3313 community service orders were imposed and the number of people subject to that sentence as at 31 December 1988 was 2442.

Periodic detention. Introduced initially as a sentence for males in 1963, periodic detention is now available to the courts in respect of both male and female offenders aged 15 years and over. The maximum length of the sentence is 12 months and during that period offenders are required to place themselves in the custody of the warden of a periodic detention centre for specified periods, the normal period of custody being nine hours each Saturday. While in custody the offender usually carries out tasks similar to those which meet the criteria for the sentence of community service.

During 1988, 18 967 periodic detention orders were imposed and the number of people subject to that sentence as at 31 December 1988 was 6452.

Community care. This sentence was introduced in 1985 and, like community service, requires the consent of the offender. The offender is required to undergo a programme which may involve attendance at medical, educational or rehabilitative facilities, or placement in the care of suitable community groups or individuals. The sentence may comprise a residential component for a maximum of six months and otherwise cannot exceed 12 months.

During 1988, 828 orders for community care were imposed, and the number of people subject to that sentence as at 31 December 1988 was 440.

Other powers of the courts. Although not sentences in the strict sense, various other means are available to the courts in dealing with offenders whose offences are not serious. They include conviction and discharge, where the effect is that the offender has a conviction recorded against him or her, but no sanction is imposed. Conviction coupled with an order that the offender come up for sentence if called upon within a specified period is another means. This is a suspension of punishment conditional upon good behaviour, but is not subject to the positive conditions of supervision. Finally, a court, although it may find an offender guilty, may discharge him or her without conviction if it considers the offence to be of a trivial or technical character.

Detention in penal institution. The sentences of detention which the courts may impose are:

Corrective training—the term fixed by statute being three months. The offender must be between 16 and 20 years of age, and he or she may be eligible for early release after serving two-thirds of the sentence. After release the offender is on probation for six months.

Imprisonment—for a stated period or for life. An offender sentenced to imprisonment for a fixed term may in most cases be eligible for release on parole after serving half of the sentence, or else the sentence may be remitted after two-thirds of the term.

Preventive detention—means detention in prison for an indefinite term to be decided by the Parole Board, but in any event not less than ten years. This sentence may be imposed on conviction for certain sexual or violent offences, if the offender has been convicted of such an offence on at least one previous occasion. The offender must be 21 years of age or over. After serving ten years of the sentence the offender may be released on parole for life. The scope of preventive detention was extended in 1987 to include those convicted of specified violent offences. Previously, it was only available for those convicted of sexual offences.

There is a policy of restricting the use of detention of offenders in an institution as far as practicable, consistent with the protection of the community from dangerous criminals.

There is also a prohibition against a sentence of detention (other than a sentence of periodic detention) being imposed on any person not legally represented at some time before conviction, unless he or she had the means to pay for legal representation but declined to employ a solicitor, or he or she was offered legal aid and refused it.

The Criminal Justice Act 1985 states that violent offenders are to be imprisoned except in special circumstances, while property offenders should not be imprisoned except in special circumstances.

Prisons and prisoners

New Zealand's penal institutions are listed in table 10.12. A sentence of corrective training applies to both males and females aged between 16 and 20 years. Any person serving a sentence of up to eight days may be detained at any police station, which is deemed to be a prison for that period.

Table 10.12. PENAL INSTITUTIONS*

CategoryInstitutionMuster level

* At 1 January 1990.

† Regional prison.

‡ Included in other categories.

§ Included in Arohata Women's Prison.

Source: Department of Justice.

Maximum securityAuckland Maximum Security Prison210
Medium securityAuckland Medium Security Prison252
Christchurch Prison433
Invercargill Prison160
Mangaroa Prison (stage 1)27
Mount Eden Prison392
Waikeria Prison480
Wanganui Prison (Kaitoke)217
Wellington Prison112
Minimum securityDunedin Prison55
Manawatu Prison180
Napier Prison56
New Plymouth Prison62
Ohura Prison75
Rangipo Prison Farm220
Rolleston Prison122
Tongariro Prison Farm120
Wanganui (City) Prison60
Wi Tako Prison140
Male remand centres
(Medium security)
Christchurch Prison (Addington)
Dunedin Prison
Invercargill Prison
Manawatu Prison
Mount Eden Prison
Napier Prison
New Plymouth Prison
Waikeria Prison
Wanganui Prison
Wellington Prison
Corrective training institutionsArohata Corrective Training Institution§
Tongariro Corrective Training Institution120
Female institutions and remand centresArohata Women's Prison80
Christchurch Women's Prison58
Mount Eden Prison (female division)35

Table 10.13. PRISON POPULATION, RECEPTIONS, AND DISCHARGES*

Category19871988
MalesFemalesTotalMalesFemalesTotal
* Excludes police gaols used in 1987 to relieve the shortage of prison accommodation. Total receptions for these police gaols are not known.
Persons in prison at 1 January2,5781122,6902,9781223,100
Receptions during the year (including multiple receptions of the same person, but excluding transfers of sentenced prisoners)12,02783412,86110,89473911,633
Discharges during the year (including multiple discharges of the same person, but excluding transfers)11,62782412,45110,69971611,415
Persons in prison at 31 December2,9781223,1003,1731453,318
Daily average number of prisoners2,8431222,9653,1431253,268

Of the 11 633 receptions at penal institutions in 1988, 5903 referred to persons remanded in custody and released after remand or still on remand at the end of the year, 137 persons were imprisoned for civil debt and six persons were committed for trial to psychiatric institutions after sentence. A 1989 amendment to the District Courts Act 1947 removed the penalty of imprisonment for non-payment of civil debt.

Table 10.14. AGE AND OFFENCES OF PRISONERS RECEIVED, 1988

Age, in yearsOffences against the personDriving under influence of drink or drugs
Sexual offencesViolent offencesOther
MFMFMFMF
Under 2144375172012
21–24311283920223
25–29532098232344
30–398915391351
40–496934224
50 and over441417
               Total33011 068437941514
Age, in yearsBurglary, theft and fraud*Conversion, wilful damage, etc.;Other offencesTotalTotal prisoners, both sexes
MFMFMFMF

* Includes forgery and currency offences.

† Includes all other property offences.

Under 21565371717392291,579901,669
21–2429432744501221,226701,296
25–2920519433440301,007661,073
30–3915433164002687668944
40–493831010052778285
50 and over14233641196125
               Total1 270126317141 8691165 0843085 392

The number of prisoners received to serve a sentence imposed during 1988 for criminal offences was 5732, but deducting multiple receptions of the same prisoner, the number of distinct persons was 5392, 5084 males and 308 females. The corresponding total for 1987 was 6367, involving 5865 distinct persons (5527 males and 338 females).

Table 10.15. AGE AND LENGTH OF SENTENCES OF PRISONERS RECEIVED, 1988

Age, in yearsLength of sentenceTotal
Under 1 month1–3 month3–12 months*1–3 years3–5 years5 years and over

* Includes corrective training.

† Includes 29 with life imprisonment.

1533
163127114145
1781224048125325
18132926775136403
19947247811813415
201956195841113378
21–246819164428663441,296
25–294615548830251311,073
30–39661233812795738944
40–49224390902812285
50–5968283012488
60 and over411295637
               Total2616682 7191 2982701765 392

Table 10.16. AGES OF CORRECTIVE TRAINING DETAINEES

Sentenced to corrective trainingAge, in years
16171819Total
1987
     Males154232154102642
     Females15133538
1988
     Males11318314588529
     Females511161143

Ethnic origins of prisoners. Of the 3318 persons in custody on 31 December 1988, 1670 were Maori, 1399 European, 220 Pacific Island Polynesian and 29 were of other or non-stated ethnic origin.

Classification and treatment of prisoners

To assist prison administration, classification committees operate in the main reception prisons (Mt Eden, Waikeria, Wanganui, Manawatu, Wellington, Christchurch, and Invercargill) and at Auckland Maximum and Auckland Medium Security Prisons. An important objective is to ensure that prisoners are held in humane conditions and in the minimum degree of security consistent with public safety. Wherever possible inmates 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 young offenders, an attempt is made to teach some particular skills. A variety of evening activities have been introduced into the prisons, and training benefit is derived from these activities, whether they be recreational, educational, cultural, individual, or collective.

At 1 January 1990 there were 31 full-time teachers serving in various penal institutions, with part-time teachers supplementing their work. Inmates undertake further education or technical courses, either by correspondence or in prison classes. Such courses may be at any level from illiteracy to study towards a university degree. The study gives inmates the chance to better their social and employment skills, and aids resettlement. All institutions receive at regular intervals a supply of books from the National Library, and inmates are permitted free use of the library's request service.

Psychological services. Psychologists from the Department of Justice Psychological Service provide advice and evaluation for the penal division on policy planning, institution programme development and implementation, individual programme development and implementation, psychological treatment for individuals and groups, and in-service training for prison officers. Advice is given on the best way to provide continuing psychological services. A public or private psychological agency, private practitioner, or the department's own psychological service may be suggested. Where psychological work is undertaken for the penal division by another agency or individual, the department's psychological service gives them advice and assistance, and monitors and evaluates the service provided.

Earnings. All inmates are credited with modest earnings based on a system of marks assessed according to diligence. A portion of the earnings may be spent in a prison canteen on tobacco, confectionery, and toilet necessities, as an incentive for good work and conduct. At the same time the loss of this privilege is used as a disciplinary measure. The balance of the earnings is paid to the inmate upon his or her release to help meet financial commitments during the first few days of freedom. Inmates can also get a grant of up to $160 from the Department of Social Welfare on release.

Punishments. An inmate charged with one of the less serious offences against discipline appears before the superintendent, who may impose a penalty at his or her discretion, or refer the case to a visiting justice or 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 it is thought they should be brought before the court. The justice's powers of punishment are wider than those of a superintendent.

Release to work. Inmates may be released during the day for private employment. The selection of inmates for this privilege is made by the superintendent. The inmates are required to contribute part of their wages towards the cost of their maintenance in the institution, and part may also be withheld in satisfaction of outstanding fines or debts. The balance is made available to their dependants or is held upon final release.

Post-release care. The step from custody to freedom is a difficult one for prisoners, many of whom require assistance, advice, and guidance. Offenders serving a sentence of corrective training or imprisonment for one year or more are put under the supervision of a probation officer for six months on release. Also falling within the maximum period they could have been detained in an institution, they are subject to recall if their behaviour is unsatisfactory. Inmates serving sentences of imprisonment for life, or preventive detention are released to the supervision of a probation officer for the life of the offender, subject to similar conditions. The period of supervision has a dual purpose. It is for the protection of the community against further offending, and is at the same time an aid to the prisoner to re-establish himself or herself.

Parole system. The introduction of long sentences designed to protect society against the hardened criminal has created the need for a procedure to enable persons serving one of these sentences to be released as soon as they show that they are fit to be returned to society. Although, as a result of amendments made to the Criminal Justice Act 1985 during 1989 certain classes of violent offenders are no longer eligible for release or parole. See ‘preventive detention’.

Two types of board consider parole cases. Persons sentenced to life terms or terms of seven years or more, or preventive detention, have their cases considered by the Parole Board. Those sentenced to less than seven years appear before one of 17 district prisons boards.

10.4 Police

The national administrative and operational control of the New Zealand Police is vested in a commissioner who is responsible to the Government through the Minister of Police.

For operational purposes. New Zealand was divided into six police regions from April 1988, and the process of decentralisation and devolution of police functions to these regional and district structures is continuing.

Region 1, containing Northland and Auckland, by virtue of its greater population is controlled by an assistant commissioner. Other regions, because of their varying size, are commanded by officers ranging in rank from chief superintendent to deputy assistant commissioner.

Regional commanders are responsible for the general preservation of peace and order, for the prevention of offences, and for the detection of offenders in their areas of command.

Policing is maintained by a system of mobile patrols and foot ‘beats’ co-ordinated by a communications network.

The police have the responsibility for the enforcement of the criminal law, principally the Crimes Act and the Summary Offences Act, but also various other statutes such as the Arms Act, Sale of Liquor Act, Gaming and Lotteries Act. Misuse of Drugs Act, and Transport Act. The summary prosecution of criminal offences investigated by the police is undertaken in the District Court by trained police prosecutors. Police in country districts in some cases hold additional appointments such as registrars and bailiffs at District Courts, probation officers, and honorary fishery officers.

Recent police policy has moved towards a more community-oriented approach, with officers of all types encouraged to see themselves as responsible for well-defined communities. Police systems and establishments are also reflecting this approach.

The effective strength of the police at 31 March 1989 was 5197 sworn personnel, including 330 policewomen. The department also employed 913 civilian staff.

Police operations

Armed offenders squads. These groups of specially trained and equipped officers are mobilised to deal with offenders with weapons. During the year ended 31 March 1989, armed offenders squads attended 182 incidents, compared with 210 in 1989.

A total of 182 members throughout the country now perform armed offenders squad duties on a part-time basis.

Anti-terrorist squad. The anti-terrorist squad, made up of selected members of armed offenders squads, is provided with specialised training to enable it to deal with acts of terrorism. The squad exercises with highly trained police negotiators and other specialist police support staff.

Refresher courses are held frequently and training has also been carried out with Ministry of Defence personnel. Close liaison has been maintained with ministry staff to ensure effective co-ordination if needed.

Search and rescue. There were 1599 police-controlled search and rescue operations during 1988–89, compared with 964 in 1987–88. These operations also involved many thousands of voluntary hours by members of the Federated Mountain Clubs and the New Zealand Coast Guard Federation.

Law-related education programme. There are 59 police staff appointed to positions in a law-related education programme. Their task is to encourage teachers and police to co-operatively plan law-related themes suitable for use in classrooms.

Police dogs. A comprehensive network of police dogs and handlers is maintained throughout New Zealand. During the year ended 31 March 1989 police dogs were deployed on 18 137 incidents. At 31 March 1989 there were 85 general purpose dogs, 7 narcotic detector dogs, and 3 explosive detector dogs.

Community constables. First introduced in 1973, community constables have a wide brief within the areas that they work. They assess law-related problems and work to resolve them by enlisting community support— acting as a catalyst for community solutions to law-related problems. They may work from police stations, their own offices in shopping centres or other locations, or from a kiosk, such as in the Cathedral Square in Christchurch. At 31 March 1989 there were 138 community constables spread over all six police regions.

Youth aid section. Youth aid staff throughout the country as at 31 March 1989 totalled 141.

Crime prevention. A police/community crime prevention programme, which began in 1984, has grown steadily to 19 905 recognised community support groups throughout New Zealand at 31 March 1989.

National Drug Intelligence Bureau. For the 1989 calendar year there were a total of 19 368 drug offences reported, of which 90.9 percent were cleared.

There were increases in seizures over 1988 in the following substances: heroin powder (from 224.5 grams to 3 242 grams); opium (from 2.3 grams to 10.4 grams); morphine powder (from 4.4 grams to 12.5 grams); cannabis plants (from 129 128 kilograms to 177 084 kilograms); cannabis leaf (from 662 kilograms to 704 kilograms); cannabis oil (from 61 grams to 453 grams); cannabis resin (from 826 grams to 103 736 grams); and cannabis seeds (from 2293 grams to 3749 grams).

Decreases were recorded in the seizure of: cocaine (from 20 006 grams to 107 grams); and LSD tabs (from 14 588 grams to 1985 grams).

Search without warrant powers were exercised in 1846 cases, resulting in 1543 seizures. There were 37 drug deaths recorded in 1989, four of which related to the abuse of heroin or morphine.

Reported offences. A summary of offences reported to the police for the year ended 31 March 1989 can be found at the beginning of section 10.2, Criminal justice.

Police Complaints Authority

This independent authority, which is funded by the Department of Justice, was established by statute on 1 April 1989. Previously complaints against the police were investigated by the office of the Ombudsmen.

The authority is a one-member body, an experienced barrister or solicitor being appointed for a period of between two and five years. (There is also provision for the appointment of a deputy if the need arises.) Its function is to receive complaints from the public against individual members of the police force or the procedures or policy of the police and, where reasonable grounds are established, to either investigate individual complaints itself, or oversee investigations by the police. It may also review internal police investigations.

Where the authority investigates and upholds a complaint itself, it may recommend disciplinary or other action to the Commissioner of Police. It also has recourse to the Attorney-General if its recommendations are not acted upon. The authority may also make recommendations regarding the outcome of internal police investigations.

In the year to 31 March 1990 the authority accepted 795 complaints, of which 554 were fully investigated. Of these, 217 cases related to the use of police force. Other major categories investigated included ‘neglect of duty’ and ‘police officers' attitudes’.

Contributors

  • 10.1 Department of Justice; Department of Labour; Department of Statistics.

  • 10.2 New Zealand Police; Department of Justice; Department of Statistics.

  • 10.3 Department of Justice; Department of Statistics.

  • 10.4 New Zealand Police.

Historical

Department of Justice; Department of Statistics; New Zealand Police.

Further information

Justice Statistics. Department of Statistics (annual).

Report of the Department of Justice (Parl. paper E. 5).

Report of the Legal Aid Board (Parl. paper E. 7).

Report of the Ministerial Committee of Inquiry into Violence. Department of Justice, 1987.

Report of the New Zealand Police (Parl. paper G. 6).

Report of the Parole Board (Parl. paper E. 5A).

Tables of New Zealand Acts and Ordinances and Statutory Regulations in Force. Government Printer (annual).

Chapter 11. Some New Zealand landscape art by Robert Leonard

Land has arguably been the central concern of New Zealand art. It has certainly been the dominant theme in the discussion of the nation's art. Reproduced here is a selection of works, ranging from the colonial period to the present, that are of the land, about the land, or in the land. Almost all the works are well-known.

Layered land

Charles Heaphy'sCoastal profiles from Mount Egmont to Queen Charlotte Sound (c. 1842) is a landscape in the topographical tradition. That is to say, Heaphy undertook the accurate recording of the physical features of an actual landscape. Topographical landscapes are distinct from sublime, ideal or picturesque landscapes which prefer particular aesthetic effects over such accuracy. Sublime, ideal and picturesque landscapes can be partly or entirely imaginary, while topographical landscapes always refer to a particular place. Many topographical landscapes were produced in New Zealand in the early days of colonisation. In fact, the topographical landscape is as much a type of map-making as of art. Today it is easy to enjoy such works for their artistic qualities without considering their practical side, their role in the appropriation of land and subjugation of the Maori. These Coastal profiles, for instance, were made while Heaphy was working for the New Zealand Company. As a draughtsman, surveyor, soldier and as a judge in the Maori Land Court, Heaphy was clearly very involved in the colonial process.

Heaphy's Coastal profiles record a continuous landscape. The landscape has been broken up into sections and layered. This has been done for convenience rather than for aesthetic effect. Compare Rita Angus's painting Central Otago (1954–56/1969), painted more than a century later. It too contains a number of separate views. Because of the careful way they have been integrated, they appear at first glance to be a single view. On closer inspection, however, we discover the inconsistent perspectives; notice, for instance, the way the sky of the lowest landscape merges into the ground of the scene above. Here the different views have been layered not for convenience but for aesthetic effect, to generate a landscape with hallucinogenic, visionary qualities.

Dead trees

In the 1930s and 1940s massive tracts of bush were still being cleared and burnt off to make way for development—the dead tree was a familiar sight in the New Zealand landscape. At this time the dead tree also became a familiar subject in New Zealand art.

Christopher Perkins’ Frozen flames (c. 1931) is a skeletal tree, rendered as a kind of tormented figure in a hostile land. It is both dead—‘frozen’, yet apparently alive—a ‘flame’. The landscape beyond reveals areas of verdant, cleared and denuded land. A brooding pall of smoke fills the sky.

In Eric Lee-Johnson'sSlain tree (1945), the human qualities of the dead tree have become even more explicit. Here the tree's sorry state becomes a symbol for the alienation and spiritual poverty of the human who has burnt or cut it. In denying nature and his nature, it is man himself who is slain.

Colin McCahon's early ‘religious’ works restage the Christian story in the New Zealand landscape. Through this device McCahon sought both to bring the Christian message home, and to illustrate a nationalist theme—that of the New Zealander suffering, alienated in his land. In his Crucifixion with lamp (1947), the place of the dead tree has been taken by the cross and the dying figure of Christ.

A body discovered in the land

In Colin McCahon's earlier landscapes, such as Takaka: night and day (1948), his ‘penetrating’ vision denudes the land. With all vegetation and signs of habitation stripped away, McCahon leaves only the land's basic geomorphic forms, which he called the ‘bare bones’ of the land. McCahon presents his wilderness as the biblical wilderness, a place where the self might be discovered or hatched.

The quality of a pregnant wilderness is also evoked in the South Island paintings of Margot Philips, such as South Island 3 (1973). Here the land is again stripped, but this time it is not the bones that are revealed. Rather than bony, these works are visceral: the land as tissue, nerves, capillaries. Some of these landscapes even look a little like the brain.

An identification of land and body is also present in Andrew Drummond's 1980 performance/installation at Lake Mahinerangi—Earth vein. Drummond inserted a ‘vein’, made from 500 metres of copper pipe in 50-metre lengths, 13 centimetres under a disused water race, ritually opening and sealing its ‘arteries’ with beeswaxed bandages. In this work the artist symbolically heals an historically abused landscape.

Pathetic projections

Petrus van der Velden's sublime Otira Gorge paintings, with their dramatic brooding contrast of light and dark, can be read as Christian allegories; the light being spiritual light, being God, and darkness being evil, the Devil. ‘Rembrandt and Jesus have the same meaning’, said van der Velden.

Sublime landscapes, like van der Velden's, are pantheistic, evoking the terrifying otherness of God in the land. Sublimity might be considered the opposite of pathos: the pathetic fallacy being the confusing of the self with the external world.

Colin McCahon plays off sublimity and pathos against one another in Untitled (1971)—an image of light penetrating a dark land clearly indebted to van der Velden. This painting contains the letter ‘I’—name of the self (McCahon's or the viewer's) and of God (‘I am’); or, alternately, a radically simplified landscape—the two dark blocks can be read as the cliff and stack at Muriwai. Perhaps McCahon is identifying the ‘I’ (himself, the viewer, God) with ‘the landscape’; the sign for the ‘I’ being the sign for ‘the landscape’. Or perhaps he is saying precisely the reverse, the ‘I’ being all that ‘the landscape’ is not; if we read the land as figure, we lose the ‘I’, and vice versa. McCahon addresses the very structure of the pathetic fallacy, suggesting that pathos is not in opposition to the sublime but rather implicated within it.

John Hurrell's 43° 32′7″ S. “Schwebender rot” 172° 38′ 15″ E. (1986) is one of a number of paintings offered by him as a critique of the excessive mythologising of national identity in New Zealand art. To make these paintings, Hurrell projected the outlines of forms taken from nationalistic European neo-expressionist paintings over a grid of New Zealand city street maps. Where those outlines touched or passed through streets on the maps, those streets were left untouched. The rest were blacked out. What is left is part map, part picture. The confusion between the maps, in all their supposed objectivity, and the degraded expressionist image, in its blatant subjectivity, is intended to show up those nationalist images as the pathetic projections they are. In creating this confusion Hurrell denies the stability of notions of national identity.

John Hurrell uses maps in the hope that they will be read as ‘objective’ as distinct from the ‘subjectivity’ of the images he lays into them. Ruth Watson, however, is interested in precisely the subjectivity of maps, the fact that they express mythologies. Watson is interested in the map as a fantasy, a psychological territory. In her World Map (1987), the self and the world are again confused in the hybrid brain/foetus/land/map form which occupies the work's centre. A dotted line extending from what would be the brain's cortex has collaged upon it the word ‘projection’. A feminist, Watson is constructing a personal mythology out of remnants of the male fantasy revealed in ancient maps. The notion of a heroic world exploration, of venturing into dark continents, becomes a metaphor for the artist's own heroic self-discovery. (One of the images in the work is, suitably, a speculum.)

Colonialism

Louis James Steele's Spoils to the victors (1908), is not a landscape as such, but it is, arguably, a work about land and its possession. The captive Maori ‘maiden’ symbolises the spoils of war—the land. With the Maori warrior out of the way, she will become a possession for the new ‘victors’. The painting may refer to intertribal conflicts. Precisely because it is not specific, one is encouraged to think of the Maori as an aggressor. Whether with another tribe or with the pakeha, the conflict is implied as being simply one in a long line of conflicts for this warrior people. The principle of ‘spoils to the victors’ thus vindicates pakeha land-grabbing. Women and the land are linked as passive, and there for the taking.

In Nigel Brown's The man is stronger than the land (1977), the land is again cast as female, with the hill being like a pregnant belly, and the viewer granted a gynaecological viewpoint. The white man's rippling muscular body, erect bicep, upstreched arm and clenched fist index his power, his penetrating power. He is triumphant, having taken the land and exploited its fertility. Meanwhile a woman, more frail than he, weeps. Brown asserts the man's power over his land and his wife. Brown spells it all out in the border ‘THE MAN IS STRONGER THAN THE LAND THE LAND FROM WHICH HE CAME FROM WHICH WE COME THE MAN’.

Denys Watkins' watercolour Fringe benefits (1978) presents a tamed and ordered urban landscape. The land has been flattened, and broken into equal rectangular sections for equally rectangular suburban dwellings, different only in detail or decor. This familiar suburban landscape is made surreal through unnatural perspective and the peculiar inclusion of unpeculiar animals. A cow, a sheep and some rabbits stand like plastic toys on little plinths. A line of fish appears to be floating down the road. Oddly, Watkins' landscape is both closer to the landscape as we now knew it, and yet artificial, contrived, dreamlike.

In Robin Kahukiwa's Papatuanuku (1982) the land is again rendered as a body, that of the Maori Earth Mother. For pakeha, landscape art has often been a means of taking possession of a land spiritually which they have already grabbed economically. More recently Maori artists, including Buck Nin, Selwyn Muru and here Robin Kahukiwa, have appropriated aspects of pakeha art traditions to tell Maori stories of the land, to assert their own spiritual possession of the land.

The great outdoors

Here are two works in the landscape.

Juliet Batten's ritual 100 women project (1985) brought 100 women to Auckland's Te Henga beach for a collaborative experience. The women silently created moat-surrounded mounds in the sand, first working individually, then in pairs. This was followed by group sharing sessions in which each described how she had emerged as a woman over the previous five years. Then all the women formed a huge circle and danced around the mounds chanting ‘We are emerging women/we are emerging through the earth/we are emerging, merging, merging/through the rides and through the air’. Finally the tide came in, engulfing the mounds, washing them away as the women watched and cheered. Batten's work again expresses the fantastic desire of being in an unmediated relationship with the landscape, with nature. In tact our experience of nature is never ‘natural’, but always and irresistibly mediated by ‘culture’.

Neil Dawson will address the tact of this mediation in his yet-to-be-realised Taranaki. To create this giant sculpture, drilling pipes will be welded together to form a ‘line drawing’ echoing the form of Taranaki (renamed Egmont). The work will be visible on the way to the mountain. Thus Taranaki must be confronted both as a physical object and as an icon of popular mythology. With its tech-drawing quality, Dawson's work references the order of mapping so that we end as we began, mapping Egmont.

Chapter 11. Arts, media and leisure

11.1 Fostering the arts

In New Zealand, as in most other countries, both the Government and local authorities recognise the importance of the arts and the nation's cultural heritage in the life of the community, and provide support accordingly. The statutory' bodies that provide assistance to the arts in New Zealand are: the Queen Elizabeth II Arts Council (incorporating the Council for Maori and South Pacific Arts, three regional councils, and the New Zealand Literary Fund); the New Zealand Film Commission; the National Art Gallery and Museum; and the New Zealand Historic Places Trust. The New Zealand Authors' Fund, monitored by a ministerial advisory committee, compensates authors for royalties lost through having their books lent by libraries. The Cultural Conservation Advisory Council, also a ministerial advisory committee, supports the conservation of movable cultural property.

Profits from state-run lotteries are used extensively to assist art galleries, museums, and cultural organisations and projects. New Zealand Lottery Grants Board funding is administered by the Department of Internal Affairs, which also administers the New Zealand Authors' Fund, the Cultural Conservation Advisory Council, and the New Zealand Symphony Orchestra.

Since 1974, the Ministry of External Relations and Trade (until 1988 called the Ministry of Foreign Affairs) has fostered the arts through a cultural exchange programme. The programme facilitates exchanges in all branches of the arts, and extends overseas knowledge of New Zealand's cultural achievements.

During 1989, public submissions were received by the Government on a proposal to establish a Ministry of Arts and Culture. Government is currently examining the options for such a ministry. Planning for a Museum of New Zealand is proceeding.

Table 11.1. GRANTS TO THE ARTS AND CULTURAL HERITAGE SECTOR, 1990*

GroupGovernment assistanceLottery grant

* Year ended 31 March. (See also table 11.8.)

Source: Department of Internal Affairs.

 $(000)
Queen Elizabeth II Arts Council7,52010,059
New Zealand Film Commission5,0125,034
New Zealand Film Archive100447
Special projects in the arts950
New Zealand Literary Fund282559
National Art Gallery and Museum6,9031,119
New Zealand Historic Places Trust1,7341,119
New Zealand Authors' Fund724
New Zealand Oral History Archive52
Cultural Conservation Advisory Council160506
Antiquities Act costs2121
Lottery community facilities9,000
Arts and Cultural Heritage Division (Internal Affairs)651
National Archives9,001
Museum of New Zealand project5,39711,187
Dictionary of New Zealand Biography (Internal Affairs)403503
New Zealand Symphony Orchestra8,297
Historical Branch (Internal Affairs)665

Queen Elizabeth II Arts Council of New Zealand

The Queen Elizabeth II Arts Council of New Zealand was formed in 1964 to promote the practice and appreciation of the arts. It provides financial assistance to individual artists and appropriate organisations. Activities which are professional in character and standard receive priority for financial support.

In 1974 the Queen Elizabeth II Arts Council Act was amended and the council was expanded to include three regional councils and a national network of community arts councils. A council for Maori and South Pacific arts was established in 1978. These statutory provisions led to the introduction of a range of programmes including schemes designed to assist the arts at community level (by 1990 there were 100 community arts councils throughout New Zealand), to foster arts sponsorship, to provide travel assistance for artists, and to encourage and promote Maori and Pacific Island arts and bicultural initiatives. For the year ended 31 March 1990 the council received funds totalling $17.58 million, of which approximately $10.06 million was provided from lottery grants.

The council is an umbrella organisation working at all levels of the community. Its mission is to develop and promote the arts as a resource for all New Zealanders. It also has six goals:

  • To stimulate and support creative expression within all communities;

  • To secure a base for the development of Maori art;

  • To promote the development of new work by New Zealand artists;

  • To secure a base for the development of arts industries;

  • To promote the professional development of people working in the arts; and

  • To ensure the provision of the information, skills, services and resources required to achieve these goals.

The council aims to achieve its goals through a range of support and advocacy programmes.

It provides annual financial assistance to major professional performing arts companies and New Zealand schools of dance and drama. It offers financial assistance to emerging and leading visual and craft artists, playwrights, dancers, choreographers, authors, composers, musicians and film-makers, for professional development and new work, as well as for new recordings and major touring art exhibitions. The council also assists a wide range of local and national arts and cultural groups with projects and developments of their programmes and management.

The council arranges or supports advanced training courses, provides assistance and advice, promotes development of business sponsorship of the arts and provides a specialist information and library service. It supports artists-in-residence projects, the Performers-in-Schools Scheme, and development of cultural policies within the Departments of Health, Justice and Social Welfare and their institutions and programmes.

The council undertakes an advocacy role to promote increased support for the arts, the presentation of submissions, and advisory work on matters affecting artists and the arts in general.

The council also publishes Arts Times, He Panui (MASPAC), as well as various regional newsletters and the resource centre's Up To Date: He Mea Hou, and provides a public information and library service from the national office. The resource centre holds a collection covering cultural policy, arts administration, the arts as they relate to other sectors of society, and development of community-based arts practice. Its services are available to any person or organisation involved in the arts, cultural or related activities. Books, periodicals, reports, slides and videotapes are available for loan on request. Computer databases have been operating since 1987, and include a bibliography, a venues guide, and company information notes (arts and business programme).

Individual artists and performers are also assisted through programmes in their respective areas:

Crafts. The craft programme offers ceramists, jewellers, woodworkers and other craft artists help with study, training, establishment, studio equipment, travel and time to devote to full-time work. It also offers assistance to the polytechnic-run craft design courses, training potential tutors and bringing international practitioners to New Zealand to run workshops. Funding is available for artists' residencies, refresher courses, and study time for craft artists. The council also works closely with the Crafts Council of New Zealand.

Dance. The dance programme offers training support through the New Zealand School of Dance, and provides assistance to dancers and choreographers wishing to develop dance projects, and for research and development.

Film and video. The council provides funding to experimental and emerging film and video makers through the Creative Film and Video Fund—a joint programme with the New Zealand Film Commission and Television New Zealand. Projects involving promotion, research and training are also assisted by the council and advice is available on budgeting, script development, access to facilities and services and marketing.

Literature. The literature programme of the council was established with the transfer of the New Zealand Literary Fund from the Department of Internal Affairs in 1988. It is focused on the provision of direct support to writers through scholarships, bursaries and project grants. Indirect support is provided through grants to publishers, assistance with promotion of small presses and to the PEN New Zealand Centre. In addition, the council supports the Stout Literary Archive and various promotional projects.

Major awards include the ICI Writers' Bursary, the Choysa Bursary for children's writers, the Queen Elizabeth II Arts Council/New Zealand Literary Fund Playwright's Award and fellowships at Victoria University, and the Universities of Auckland and Canterbury. Promotional programmes include the New Zealand Book Awards, the Government Publishing Awards for the New Zealand Children's Book of the Year (sponsored by the Government Printing Office), and the New Zealand Book Council's Writers in Schools Scheme. Privately sponsored awards for writing are the James Wattie Book of the Year Award and the Bruce Mason Playwriting Award.

Music. The music programme contributes to the training of young musicians and develops opportunities for professional musicians of all types through study grants, workshops, and masterclasses. Funding is provided to the New Zealand Composers Centre. Through support to the Music Federation of New Zealand, the council assists professional musicians to tour the country. The council also offers scholarships, encourages residencies, composers-in-schools, new composition, and assists with first-time recording.

Theatre. In addition to substantial support to the country's theatres, the council promotes and develops training through the New Zealand Drama School and the National Theatre Technicians Training Committee, and employment through support to smaller theatre, puppetry and mime companies. Grants for playwrights, commissioned plays, residencies, study, and bicultural programmes are also given.

Visual arts. The council does not support art galleries directly, but assistance is gives through the Art Galleries Directors' Council for the touring of exhibitions. Funding is available for visual artists to create and exhibit new work and to improve work environments. Assistance is also given to promote the work of New Zealand artists overseas, to encourage international exchanges, and to stimulate discussion on the theory and practice of the visual arts. The visual arts programme also supports bicultural projects, artists' residencies, visual arts publications and market development.

Maori and South Pacific Arts. The Council for Maori and South Pacific Arts assists Maori and South Pacific artists and performers in the development of their arts. Assistance to Maori artists and performers comes through the Maori Arts Committee. Sub-committees support weaving and carving artists, as well as music, dance and drama performers. Its programmes also promote the Maori language, marae decoration, tutoring such performing arts as haka and poi, and other community-based projects. The council also supports the artists and writers group Nga Puna Waihunga. South Pacific art committees assists visual and language artists, and performers. It supports language teaching projects, costume and instrument-making, and traditional carving and canoe-building projects. Research, recording of or publications about Maori and South Pacific arts, and conservation projects are also supported.

New Zealand Symphony Orchestra

The New Zealand Symphony Orchestra is widely known for the high standard of its public concerts, and its performances on radio and television. Distinguished guest conductors and celebrity artists from other countries, along with resident soloists and New Zealand choirs, appear regularly with the orchestra. As a national orchestra, it receives funding through the Broadcasting Commission from the Public Broadcasting Fee and from the Department of Internal Affairs. Its tour programme is one of the most extensive in the world, involving some 20 000 kilometres of internal travel annually. The only full-time professional orchestra in the country, its minimum playing strength of 89 enables the orchestra to undertake the complete symphonic repertoire. As well as presenting concerts nation-wide, the orchestra has toured overseas and made several commercial recordings. The NZSO also organises and administers the New Zealand Post National Youth Orchestra.

New Zealand Film Commission

The New Zealand Film Commission was established in November 1978. Its functions, powers, and duties are defined in the New Zealand Film Commission Act 1978. Administration expenditure is met by the Department of Internal Affairs. Each year, the Film Commission offers financial assistance to a considerable number of film projects, both for development and for production.

Copyright

Copyright comes into existence automatically upon the completion of any original literary, dramatic, musical, or artistic work, including photographs. No registration is necessary, nor is any other formality required for securing copyright protection. Copyright also exists in New Zealand for sound recordings, cinematograph films, broadcasts, and published editions (typography) of literary, dramatic, and musical works.

Copyright in literary, dramatic, musical, and artistic works (except photographs) continues until 50 years after the author's death, if the works are published in the author's lifetime, and until 50 years after publication or 75 years after death (whichever is shorter) if they are unpublished at the death of the author. Copyright of photographs, sound recordings, cinematograph films, and broadcasts continues until 50 years after the making, and in editions until 25 years after publication.

Copyright in New Zealand of literary, dramatic, musical, and artistic works and of cinematograph films extends to all countries which are parties to the International Convention for the Protection of Literary and Artistic Works (Berne Copyright Union) and to all countries which are parties to the Universal Copyright Convention. In some cases, sound recordings, broadcasts, and published editions are also protected overseas. New Zealand is a party to both conventions. Most countries have acceded to the one or both conventions. New Zealand has acceded to the Convention for the Protection of Producers of Phonograms Against Unauthorised Duplication of their Phonograms. The convention obliges each contracting state to protect the producers of phonograms (i.e., records, cassettes, and other exclusively aural fixations of a performance or other sounds) against the unauthorised reproduction of their phonograms, and against the importation and distribution to the public of such unauthorised reproductions. In New Zealand certain disputes relating to performing rights of copyright works, sound recordings, or films may be determined by the Copyright Tribunal.

Censorship

New Zealand has a variety of types of censorship designed to cover the different forms of communication. At various stages, Parliament has enacted legislation to encapsulate new technological developments in the media. Essentially, there are five major Acts which regulate censorship in New Zealand: The Films Act 1983; the Video Recordings Act 1987; the Indecent Publications Act 1963; the Broadcasting Act 1976; and the Customs Act 1966. These five Acts direct material to a number of authorities established specifically to reflect socially accepted standards of decency in different media.

There are also many other forms of legal censorship in New Zealand. Numerous Acts, including the Human Rights Commission Act 1977, the Race Relations Act 1971 and the Contraception, Sterilisation and Abortion Act 1977, set standards on a range of other issues. Also, in the case of broadcasting, local productions are the responsibility of their producers, although overseas television programmes are monitored by a standards committee.

At the end of 1987, the Minister of Justice set up a committee of inquiry to inquire into and report on the production and distribution of pornographic material and to make recommendations on its evaluation and censorship. The committee reported back to the minister in December 1988, but no changes to the law had resulted by April 1990.

Film and videos for public exhibition. All films and videos (except specially exempted categories) intended for public exhibition are classified, restricted or rejected by the Chief Censor of Films. (Videos intended for viewing in private residences are examined by the Video Recordings Authority, a separate statutory office).

Under the Films Act 1983, the Chief Censor of Films must determine whether the exhibition of a film is likely to be ‘injurious to the public good’ by considering the extent and degree to which, and the manner in which, it depicts or treats anti-social behaviour, sex, crime and violence.

Classifications used are:

GApproved for general exhibition;
GYApproved for general exhibition; recommended as more suitable for persons 13 years of age and over;
GAApproved for general exhibition; recommended as more suitable for adults;
R (age)Approved for exhibition only to persons of the age specified or over (usually R13, R16 or R18);
RP (age)Approved for exhibition only to persons of the age specified or over, and to any person under that age when accompanied by that person's parent or guardian (usually RP13 or RP16);
R*Approved for exhibition subject to any such restriction as the chief censor may specify.

Advertising material related to public exhibition also comes under the control of the chief censor and must be approved prior to use. Such advertising material must inform the public of the classification specified by the chief censor for the film or video.

Distributors dissatisfied with the Chief Censor of Films' decision may appeal to the Film Censorship Board of Review.

The Office of the Film Censor is concerned only with the classification of films and videos. The policy and administration of the Films Act is the responsibility of the Department of Internal Affairs.

Video recordings. The Video Recordings Act 1987 established a system of determining the indecency or otherwise, and labelling, of video recordings for sale or hire. Videos intended for sale or hire are required to be labelled. The labels must show either a rating or a classification. Decisions on what the label contains are made by two bodies. The labelling body—made up of industry representatives and a member nominated by the Ministers of Consumer Affairs and Women's Affairs—determines the labelling of videos considered suitable for viewing by those under 18 years of age (about 80 percent of titles). The labelling body determination is called a rating. Any other titles, which have usually been censored by New Zealand, Australian, or British film censors as being suitable for viewing only by those 18 years and over, are examined by the Video Recordings Authority to determine indecency. The Video Recordings Authority determination is called a classification. The authority's classifications are enforceable against the supplier and the individual being supplied with the video recording. Applicants unsatisfied with the authority's classification may apply to the Video Recordings Board of Review.

Indecent publications. The Indecent Publications Tribunal operates under the Indecent Publications Act 1963. It determines whether or not any book or sound recording submitted to it is indecent and decides on its classification. Publications can be referred to the tribunal by either the Comptroller of Customs or any person who has the leave of the Minister of Justice or the chairman of the tribunal. The tribunal consists of a chairman and four members, the chairman must have practised as a barrister or solicitor, and at least two of the members be qualified in the field of literature or education.

When classifying or determining the character of any book or sound recording the tribunal considers the effect of the publication as a whole, including its literary or artistic merit or the significance of its subject. Also considered is its likely audience, its price, and whether anyone is likely to be corrupted by it or others are likely to benefit from it. Another consideration is whether a work has an overall honest purpose or thread of thought. In 1989 the Indecent Publications Tribunal had 590 publications placed before it for review.

11.2 The national collection

Art galleries and museums

There are more than 200 public museums and art galleries in New Zealand. Many are relatively small collections oriented towards the history or fabric of a particular region or location. The larger museums, of which there are several, carry out research, print catalogues and research papers and maintain education programmes for visitors and others.

Most museums and art galleries are funded by local government, although the New Zealand Lottery Grants Board provides subsidies for capital works schemes and provides salaries for liaison officers attached to the four metropolitan museums. It also helps support the Art Galleries and Museums Association of New Zealand, which promotes the development of the country's collections and its professional staff.

Nationally, the collections on view vary from place to place. In Auckland the large museum has a fine, recently refurbished Maori Hall and the Ngati Maru house Hotonui. The Auckland City Art Gallery holds a collection of Lindauer paintings, Frances Hodgkins' paintings and collects contemporary New Zealand Art. The Museum of Transport and Technology collects and displays all aspects of technology in New Zealand, while a short distance away the North Otamatea Kauri and Pioneer Museum displays artefacts from the kauri-gum fields now gone.

The Waikato Museum of Art and History (Te Whare Taonga o Waikato) holds the treasures of the Tainui tribe and a collection of works by painter Margot Phillips. The Bathhouse in Rotorua has a good contemporary New Zealand art collection (including much contemporary Maori art), while celebrating the days when it was a spa; the Govett-Brewster Art Gallery holds the collection of kinetic artist Len Lye and shows it each summer, while the Hawkes Bay Museum and Arts Centre holds the treasures of the Ngati Kahungunu people. In Wanganui the Sargent Gallery has a collection of paintings by local artist Edith Collier. The Bishop Suter Art Gallery, in Nelson, has an extensive collection of contemporary art and works by well-known 1930s artists.

Canterbury Museum holds a quantity of material from Antarctica and the South Island Maori (Kai Tahu). At Akaroa the Langlois-Eteveneaux House and Museum celebrates the French history of that area, in Dunedin the Otago Early Settlers Museum, Edwardian in style, depicts the lives of the early settlers, and the Dunedin Public Art Gallery has a large collection of eighteenth and nineteenth century water-colours, as well as a collection of paintings by Frances Hodgkins. In the south the Southland Museum and Art Gallery reflects the area's local history, and has an important Tuatara House.

National Art Gallery. The National Art Gallery, first opened in 1936, is a museum of fine arts which holds collections and shows exhibitions covering national and international culture. It is administered by the Board of Trustees of the National Art Gallery, the National Museum and the National War Memorial. The gallery is an educational institution devoted to preserving significant art works and, through these items, interpreting to the public the artistic development of New Zealand and the achievement of New Zealand's artists. Through its international holdings and the staging of exhibitions of works from a wide international spectrum, it allows the public to view world cultural history and developments. Beyond this traditional role, the National Art Gallery also serves as a cultural facility for the community and is a venue for performances, meetings, recitals, concerts, receptions, lectures, films and other related activities.

National Museum. The National Museum was established in 1865, and its functions are to acquire, preserve and display collections of material related to New Zealand and the Pacific. The collections specialise in Maori and Pacific culture, colonial history, entomology, plants, birds, and marine animals. There is also a large specialist research library, and a photographic archive containing over 84 000 glass plate and other negatives. Research staff provide a servicing function for other government departments and the public in ethnological, biological and historical research (including antiquities). The museum publishes research results in National Museum Records, National Museum Bulletin, and the National Museum Miscellaneous Series, as well as through other government publications. General booklets and brochures are also produced in connection with educational and display functions.

Conservation of cultural property. The Cultural Conservation Advisory Council advises the Minister of Arts and Culture on all cultural property conservation matters, covering the specific areas of: paintings and works of art, ethnography, books and documents, films, photographs, machinery and textiles. The council maintains a programme to support the training of conservators and the expansion of conservation services to public institutions and the community in general.

Historic places

New Zealand Historic Places Trust. This body is the principal organisation responsible for the care and protection of historic places, buildings and monuments in New Zealand. The historic places include European and Maori buildings and monuments constructed before 1940, historic sites, Maori traditional sites, and archaeological sites.

The trust is governed by a board of trustees which is made up of representatives from a variety of interested organisations including the Maori Council, the Institute of Architects, the New Zealand Archaeological Association, the New Zealand Vice Chancellors' Committee, and several government departments. The staff of the trust, including curators and those employed at regional branches in Auckland, Wellington and Otago, are supported by more than 20 000 volunteer members.

Among the functions of the trust is the classification of buildings according historical significance or architectural quality. Buildings may be classified into one of four categories. They are:

  1. Those buildings having such historical significance or architectural quality that their permanent preservation is regarded as essential;

  2. Those buildings which merit permanent preservation because of their very great historical significance or architectural quality;

  3. Those buildings which merit preservation because of their historical significance or architectural quality; and

  4. Those buildings which merit recording because of their historical significance or architectural quality.

As at October 1989, almost 5000 New Zealand buildings had been classified by the trust—including 95 ‘A’ over 400 ‘B’ more than 3000 ‘C’ and over 700 ‘D’ classifications. The board of trustees has the power to issue protection notices to prevent demolition or damage to buildings classified as ‘A’ and ‘B’ and it may also change the classification of buildings. The board has adopted a positive approach of encouraging the owners of historical buildings to discuss any proposed changes to the structures and working towards a mutually acceptable solution.

Under the Historic Places Act 1980 (which was being reviewed at the time of going to press) the trust has responsibility for a number of historic buildings and sites. Those open to the public include:

  • Stone Store, Kemp House, Pompallier House, Waimate House, Clendon House, and the Mangunu Mission House in Northland;

  • Highwic, Alberton, Ewelme Cottage in Auckland;

  • Old St Paul's in Wellington;

  • Fyffe House in Kaikoura;

  • Time Ball Station in Lyttelton; and

  • Totara Estate, south of Oamaru.

These properties are staffed by curators. Non-staffed properties which are open at all times include Te Porere Redoubt in Tongariro National Park, Kawana Mill in Wanganui, Pencarrow Lighthouse near Wellington, and the Brunner Industrial Site on the West Coast.

The trust also administers properties owned by other organisations and a number of historic reserves. Advice is provided to private owners to assist in the preservation of historic buildings and sites, and some financial support is available through a fund administered by the trust. A register of archaeological sites is maintained by the trust which has the authority to investigate the sites and prohibit unauthorised tampering.

Public interest in the activities of the trust is generated and maintained by plaques and notice-boards at many historical sites and a series of publications including leaflets, a quarterly magazine and books on historic preservation in New Zealand.

Protection of antiquities and archaeological sites. There are a number of legal provisions to protect items and sites of historical significance. The Antiquities Act 1975 includes provisions controlling the sale of Maori artefacts in New Zealand. Artefacts found after 1976 are deemed to be Crown property. There are export controls on a range of items of historical significance; Maori artefacts; chattels relating to the European discovery, settlement or development of New Zealand; written and printed matter, works of art, reproductions, prints, films and sound recordings; specimens of animals, plants and minerals; meteorites; remains of extinct fauna; and items of shipwreck.

The Historic Places Act 1980 deals with the protection of archaeological sites. It is necessary to obtain the consent of the New Zealand Historic Places Trust before damaging, destroying, or modifying any archaeological site, or undertaking a scientific archaeological investigation of any site.

National Archives

The National Archives selects, preserves, and makes available records of permanent value, drawn from various areas of government. These include Parliament, ministers of the Crown, government departments, the armed forces, the courts, commissions of inquiry, and other agencies. Archives are preserved to provide evidence of the functions, policies, transactions and decisions of government which have affected New Zealanders. They provide information on events, great and small, which have influenced the course of New Zealand's development. To ensure their preservation, National Archives has statutory control over the disposal and destruction of public records. National Archives also advises and assists local authorities in preserving their archives, and provides records centres and records management consultancy on a cost recovery basis.

National Archives has its headquarters in Wellington and regional offices in Auckland and Christchurch. It holds an estimated 25 000 lineal metres of documents, and in addition some 500 000 maps and plans, as well as a large number of photographs and pictures. The holdings constitute the largest source of unpublished information on a whole range of public and private activity in New Zealand—political, social, economic, scientific, military, technological and administrative. Important and interesting records from the nineteenth century include those of the New Zealand Company, the provincial governments, the colonial secretaries and the Governor. Records from this century include material from the numerous wartime agencies, records from the war zones and key policy and operational records of departments of state. There are also records of royal commissions and commissions of inquiry. Papers of prime ministers such as Richard John Seddon, Sir Walter Nash and Norman Kirk are held, as well as those of a number of former cabinet ministers.

National Archives arranges and describes the archives and provides reading and reference services used by historians, geographers, economists, sociologists, scientists, students, lawyers, genealogists and public servants.

New Zealand Film Archive

The New Zealand Film Archive (Nga Kaitiaki o Nga Taonga Whitiahua) was established in March 1981 to acquire and receive all moving image materials of permanent national and cultural significance. The archive takes very seriously the concepts embodied in its Maori name—‘the guardians of treasured images of light’—and in 1988 adopted a constitution/kaupapa incorporating the principles of the Treaty of Waitangi into its policies and practices.

The Film Archive holds in its collections both New Zealand and foreign films from 1896 to the present day. These include fiction and feature films, short, animated films, documentaries, newsreels, videotapes, home movies and television programmes.

The earliest New Zealand film in the collection dates from 1901—a fragment from the film record made by the Limelight Department of the Salvation Army (Melbourne) showing the royal visit by the Duke and Duchess of Cornwall and York. Not all the film has survived: scenes in Rotorua showing the powhiri for the royal couple, and the Duke and Duchess with Premier Richard Seddon at Whakarewarewa, plus a scene from their visit to Dunedin, are all that still exist.

The recent discovery of the only surviving copy of an 1896 film by the French film-maker Georges Melies called Le Manoir du Diable makes this the oldest film in the archive's collection. Mr Edison at Work in his Chemical Laboratory from the following year is the oldest American film held. The archive continues to receive large amounts of contemporary and historical material. There are strenuous efforts to discover and preserve what remains of New Zealand's early film history before the chemical disintegration of the film stock they were made on removes the chance forever. As well as, saving what is left from the past, the archive is working actively with the film and television industries to guarantee the survival of moving images from the present and future.

As well as the moving images themselves, the archive collects a wide variety of promotional, critical and historical documentation and information for both New Zealand and overseas films. This includes reference books and periodicals, stills, posters, publicity, designs, scripts, production files, costumes, props and film equipment. Possibly the most popular icon in the collection remains the bonnet from the yellow Mini featured in the recent film Goodbye Pork Pie.

While the primary work of the archive is the preservation and restoration of the moving images in its collection, access is regarded as equally important. The archive's travelling film shows reach up to 20 000 people a year by returning preserved films to their local, regional and tribal contexts in special presentations. A wide range of materials are also available for study and research at the archive's premises in Wellington.

Dictionary of New Zealand Biography

In 1982 the Dictionary of New Zealand Biography was adopted by government as an official project to commemorate the 150th anniversary of the Treaty of Waitangi in 1990. The dictionary's general editor is Professor W. H. (Bill) Oliver, formerly head of Massey University's History Department, who commenced work in August 1983. His first staff commenced work in March 1984. The dictionary's associate editor is Dr Claudia Orange.

The dictionary's staff is based in Wellington and there are 22 regional and specialist working parties, which research, compile basic information and propose dictionary entries. A network of consultants assists with Maori nominations and special interest areas.

The dictionary will be a compilation of scholarly essays about significant people from the past; not only national figures but also those whose importance was regional, ethnic or social in character. The essays will give basic information and an assessment of an individual's place in New Zealand's history. Some 450–500 writers will contribute essays ranging in length from 500 to 4000 words.

The first two volumes of the dictionary will be published in 1990; publication is a joint venture between the Department of Internal Affairs and a private publisher. Some 300 writers have contributed to the first volume. The second volume (1769–1869 Maori) will contain versions in Maori of the more than 160 biographies in volume I that are about Maori subjects. Five more volumes are scheduled for release through the 1990s.

11.3 Books and libraries

New Zealanders' use of books compares favourably with other English-speaking nations. There is a vigorous book publishing industry that caters not only for the local market but, particularly in the case of educational books, for an increasing number of overseas purchasers.

From the time of European settlement in New Zealand, literature, libraries and the accompanying concept of free access to information by individuals have been strong traditions. The importance of books to earlier settlers is manifest in the number of fine collections of historical New Zealand material.

Today, libraries are distributed throughout the country—from very small school and community libraries to large library systems—and the small population maintains an active publishing industry.

Book publishing

The book market in New Zealand consists both of books produced by New Zealand publishers and books imported for sale in New Zealand. Most of the book publishing industry is made up of businesses which import as well as publish, although some are exclusively involved in one or other activity.

No thorough studies have been conducted of the book industry. However, industry sources estimate that the total value of books sold in New Zealand in the 1988 calendar year was about $380 million. This includes books sold through the book trade, those imported directly by institutions (libraries, etc.), and private imports. It was estimated that 35 percent of all books sold were published in New Zealand.

Each year books are published in New Zealand by more than 300 different publishers. An analysis of these publishers reveals that nearly two-thirds are informal publishers, i.e., local authorities, historic societies, private publications, government departments, etc. In fact there are only about 100 specialist importers or publishers of books. It is believed that they put out about three quarters of all new titles produced and account for over 90 percent of sales.

The number of New Zealand titles published by commercial publishers increased by 123 percent between 1980 and 1986 (the latest year for which complete data is available). Because of the inauguration of some major junior level educational programmes, the growth of educational titles was even greater, with a 150 percent increase. However, economic pressure on the industry meant that titles were kept in print for a shorter time (very low sellers were remaindered and doubtful titles were not reprinted), and so the number of titles in print declined by 28 percent between 1983 and 1986. Total sales in New Zealand increased by 106 percent in dollar terms between 1980 and 1986 but export sales increased by 358 percent over the same period.

Because of increasing local printing costs and a desire to hold book prices down, there has been a strong movement towards printing New Zealand books overseas. By 1986 local printing for publishers had declined by 41 percent in volume terms over 1980, and overseas printing had increased by 364 percent. The average print run for an educational book increased by 12 percent to 4497 over the six years to 1986 but the average print run for a general book declined by 23 percent to 4804 over the same period.

Figures for children's book sales were kept for the three years 1984–86, but these showed sales declined by 36 percent over that period. Only 18 publishers or distributors of children's books were regularly surveyed. Their average annual sales of children's books was $291 000 in 1986. In total this represented 5.9 percent of book sales by value, with New Zealand children's books making up 19.2 percent of these.

Educational books were published or distributed by 28 publishers and represented 16.8 percent of all book sales by value in 1986. The same year New Zealand books made up 33 percent of all educational book sales within the country. However, export sales of locally published educational books were 35 percent greater than domestic sales and represented 72 percent of all export sales. Books for export made up 22.7 percent of all New Zealand publishing.

The book industry is largely concentrated in northern New Zealand, specifically on the North Shore of Auckland. A 1987 survey of 61 major companies showed 48.9 percent of the total sales came from the 20 of those companies and 34.6 percent from 16 other companies in Auckland—meaning 83.5 percent of the total output came from Auckland. The 13 companies in the sample based in Wellington accounted for a further 12.1 percent. The remaining 10 companies scattered throughout the country made up the remaining 4.4 percent.

The survey for the year ended March 1986 gave the profile of an average New Zealand publisher/book distributor shown in table 11.2. No further survey has been carried out since 1986 although a new survey was being developed at the time of going to press.

Table 11.2. PROFILE OF AN AVERAGE NEW ZEALAND PUBLISHER/BOOK DISTRIBUTOR, 1986*

Item 

* Year ending 31 March.

Source: Book Publishers Association of New Zealand.

Number of titles produced during year33
     Including number of reprints14
Titles in print65
Export sales (based on exporters only)$221 000
Total sales$1 640 000
Average retail price of books, sold$9.60
Average sales of best-selling paperback18,600
Average sales of best-selling hardback11,900
Royalties paid to New Zealand authors$81 371
Staff15.6
Sales by type of outlet:percent
     Booksellers66.2
     Other retailers18.2
     Direct to consumers (incl. libraries)13.7
     All other1.9
               Total100.0

Libraries

The library needs of the majority of the population are met through public libraries provided by local authorities. In most centres the local authority maintains at least one public library. In the larger centres there is usually one central library and a number of suburban branches.

As at 31 March 1989, there were 260 public libraries in New Zealand, over 70 of which were suburban branches. There were also over 400 specialist libraries in government departments, businesses and other organisations. In the education sector there is provision for a library or library room in every school, as well as those in the universities and other tertiary institutions.

In the year ended 31 March 1989 local authority libraries held a book stock of over 7.8 million volumes and made 29.4 million issues.

A comprehensive system of co-operation between libraries is overseen by a joint committee on interloan which is made up of representatives from the New Zealand Library Association and the National Library.

Since 1980 librarianship has been taught at two schools; Victoria University of Wellington and Wellington College of Education.

National Library of New Zealand. The National Library of New Zealand was set up by an Act of Parliament in 1965 to collect, preserve and make available recorded knowledge, particularly that relating to New Zealand; to supplement and further the work of other libraries in New Zealand; to enrich the cultural and economic life of New Zealand and to enrich its cultural interchanges with other nations.

The National Library provides a service and a resource for the whole of New Zealand. It maintains vast collections of New Zealand printed material and sound recordings, as well as collections of material from throughout the world which are likely to be of interest to New Zealanders. These collections can be used directly by members of the public who visit the library, or they can be made available to other libraries for loan.

In addition, the library provides a range of advisory and support services with the aim of ensuring that every New Zealander has access to library materials.

While most of the library's approximately 520 staff work in Wellington, it also has three regional centres; Auckland, Palmerston North, and Christchurch, and 13 district centres.

For administrative purposes the library is divided into four divisions: Alexander Turnbull Library (developing research and special collections); collection management (acquisition, cataloguing and conservation); access group (made up of information services, education services, services to libraries, public programmes, services to business, market research and development, and regional services group); and, management support services.

In July 1987 the National Library occupied its first permanent home, after spending the first 21 years of its existence in scattered locations around Wellington. From its new building in Molesworth Street, Wellington, the library provides services directly to the public, and co-ordinates its services to libraries, schools, rural areas, and businesses throughout the country.

Members of the public are welcome to visit the National Library during its hours of opening. The National Library Gallery, together with a smaller gallery, the Turnbull Room, are of particular interest. Here items from the library's collections are exhibited, and exhibitions of materials from other institutions are hosted. There is also an auditorium, where concerts and lectures are held. Regular guided tours of the library are given.

The following services are available from the library in Wellington;

Information service—A free information service provides access to information in New Zealand and overseas books, serials, music, and a selection of overseas databases. Inquiries may be made in person, by telephone, mail, telex or telefacsimile. The service offers:

  • Assistance with inquiries in a wide range of subjects, particularly social sciences, arts and the humanities, from quick reference to in-depth research; D Subject specialists in: the literature of sociology and social services, commerce and statistics, children's literature, New Zealand studies, and music;

  • Access to any book, journal or sound recording in the general collections of the National Library. (Most items are stored in closed access areas and must be consulted in the library.); and

  • Streamlined access to a representative selection of New Zealand publications including up-to-date official publications.

The collections which can be accessed through the information service include 500 000 books, mainly in the social sciences and humanities; 8500 current journal titles and monographs-in-series in all subject areas including medicine, technology and pure science; 2 million microfiche and microfilm; 4500 music scores; a collection of sound recordings, including 6000 compact discs; 90 000 children's books; all daily New Zealand newspapers and a selection of overseas newspapers.

Alexander Turnbull Library—This ‘library within a library’ is a national research collection specialising in documentary materials relating to New Zealand and the Pacific, John Milton and his times, English literature, early printed books, voyages of discovery and exploration, and the arts and crafts of the book. It is based on the collections of Alexander Horsburgh Turnbull, a wealthy Wellington merchant who died in 1918 and bequeathed to the nation some 55 000 volumes as well as manuscripts, paintings and sketches, which he had collected during his lifetime. The policy since 1918 has been to build on the strengths of the original collection.

At the end of 1989 the collection included approximately 236 500 books; 2933 lineal metres of serials; 37 500 microfilms and 32 350 microfiche; 42 000 maps; 600 000 photographic prints, negatives, albums and slides; 41 500 paintings, drawings and prints; 12 100 posters; 8500 discs, tapes and cassettes; 600 bays of newspapers; and 5000 shelf metres of manuscripts and private archives.

These collections form an important part of the national heritage, and all possible measures are taken to ensure that they are preserved for the benefit of future generations. For this reason members of the public are encouraged whenever possible to use library materials held elsewhere before drawing on the Turnbull collections.

However, this caution aside, the collections are available for use by any member of the public who needs to consult a comprehensive collection that includes the whole range of printed and non-printed evidence on a subject, or to consult printed materials, documents or indexes not available elsewhere.

Dorothy Neal White Collection—This is a research collection of children's books published up to 1940. In it can be found examples of children's books with emphasis on material which would have been read by children living in New Zealand from the period of colonisation, and up to 1940. The collection is kept on open shelving in a special room and those with a special interest in children's books are welcome to browse through it.

The National Library also maintains the following outreach and consulting services, which are available to the public throughout New Zealand:

Services to rural areas—The National Library augments rural library' services by supplementing the resources of public libraries and developing library services where no other such provision is made. These activities are co-ordinated by the library's regional services division operating from Auckland, Hamilton, Palmerston North, Wellington and Christchurch. Public libraries outside the major metropolitan areas and operating a free service are eligible.

The National Library also helps local authorities to assess and plan their library services.

Early in 1987 a ministerial review of the National Library's service to rural areas was completed. The review found that the services offered by the old Country Library Service, which had been in operation since 1932, were no longer appropriate. Amongst the changes recommended was the phasing out of a ‘bookvan’ service and the development of other services more suited to the needs of rural people. These included: enhanced National Library assistance to borough libraries; the development of school and community libraries; a ‘books by mail’ programme for adults in remote areas and housebound adults who do not have access to outreach library services provided by local authorities; provision of books to rural kohanga reo; and a mobile library service to rural marae.

During 1987 pilot projects were conducted with kohanga reo in Northland, and a books by mail service in the lower half of the South Island. These projects being assessed resulted in the kohanga reo scheme being extended to the Gisborne/East Coast area and the whole South Island being served by books by mail in 1990. Pre-school children are now also being served by books by mail as well.

Services to schools—The School Library' Service provides support services to New Zealand's more than 2500 schools. These services include:

  • Reference services providing access to extensive collections of material to stimulate and develop reading;

  • Access to information to support the primary and secondary curricula;

  • Advisory' services to support library developments and management; and

  • Training courses for teacher-librarians, librarians, teachers and library assistants.

The service is operated from 14 district centres of the National Library. It is available to teachers, pupils and librarians whose educational needs cannot be satisfied by the school library collection, or who need assistance with the development of library services.

Following on from the Report of the Task Force to Review Education Administration, the National Film Library became part of the National Library's services to schools from 1 July 1989.

Services to businesses—The library manages a nationwide information service for business and industry (known as SATIS). SATIS offices are located in the Auckland Public Library, in the National Library offices in Christchurch, in the Business Development Centre of the University of Otago, Dunedin, and in the National Library building in Wellington. SATIS provides information tailored specifically to client needs.

The National Library also provides an Information Services Consultancy, which provides advice and assistance in the establishment, management, development and review of library and information services and systems. The consultancy also carries out general information audits for clients, and analyses specific information management problems.

Another National Library service to businesses is Rapid Article Access. This service draws on the resources of the library's national serials collection in Wellington and will supply any article required from its collection of newspapers, magazines and reports.

Interlibrary loan— The National Library's interloan unit is a clearing-house for requests received from New Zealand and overseas libraries. The interloan system enables librarians anywhere in the country to locate and request for a client, a book or copy of an article from a journal that is held in another library. The unit processes approximately 45 000 requests each year.

Databases—The library maintains two database services. These are the New Zealand Bibliographic Network, which was set up in 1982, and Kiwinet, an on-line database hosting service launched in February 1988.

The New Zealand Bibliographic Network (NZBN) is a comprehensive on-line library cataloguing and information retrieval system. The system locks in with all major New Zealand libraries, and with such institutions as the United States Library of Congress and the national libraries of Britain, Canada, Australia and Singapore. New records are added daily by New Zealand libraries, and are supplemented weekly by contributions from the western world's largest libraries. By the end of 1989 the equivalent of 4.5 million catalogue cards were held in the system, with new records being added at the rate of 500 000 a year. One hundred and sixty New Zealand libraries, including public, university, government department and private company libraries participate in the network.

Kiwinet is the collective name for a series of on-line databases, modelled on overseas services such as Australia's ‘Ausinet’ or the United States' ‘Dialog’. It contains information on all aspects of New Zealand, including business, commerce, the social sciences, arts, the humanities and the law. Currently 12 databases are available:

  • Find, an interlibrary loan tool that lists holdings of serials in New Zealand libraries;

  • Index New Zealand, an index of journal articles, newspapers, theses, reports, monographs, and conference papers published in or about New Zealand and the South Pacific (this database incorporates the Social Science Research Index);

  • Newzindex, the activities of New Zealand industries and companies reported in the business press;

  • Datex, a directory of publicly listed New Zealand company information obtained from company annual reports and the New Zealand Stock Exchange;

  • Scitech Index, an index to scientific and technical publications originating from the research of the New Zealand Department of Scientific and Industrial Research plus organisations involved in the science and technology field;

  • Briefcase, a comprehensive index to recent New Zealand judgments from 1986 onwards;

  • Legal Index, an index to texts, journals, London Times Law Reports, Court of Appeal decisions and High Court decisions received by the Auckland District Law Society Library; Court of Appeal Judgments, a full text database of the judgements of the Court of Appeal from 1982 onwards;

  • Legislation before the New Zealand Parliament, a database of New Zealand legislation in the making from September 1987 onwards;

  • Hansard, full text of the verbal proceedings of the House of Representatives, from September 1987 onwards;

  • Parliamentary Questions, a full text database of questions for oral and written answers submitted by MPs to Ministers and their replies, beginning from September 1987; and

  • Royal Commission on Social Policy, the full text of the five-volume 5000 page April report.

Parliamentary Library. Known until 1987 as the General Assembly Library, this library provides library, information, research and reference services for Parliament as required by the Parliamentary Service Commission. The library's collections, which number over 500 000 volumes, are strongest in subjects relevant to members of Parliament for their legislative duties. These include economics, politics, public administration, law, social sciences and biography. The library has one of the largest collections in the country of books, pamphlets, periodicals and newspapers relating to New Zealand and several New Zealand daily newspapers are indexed.

The National Documents Collection comprises parliamentary papers and publications of overseas governments, mainly English-speaking, and of international organisations such as the United Nations, the OECD, and the European Community. It is available for public use.

Hocken Library. Founded in 1907, the Hocken Library is a major collection of Pacific and New Zealand material. One of the collections in the University of Otago library system, the Hocken has a book stock of about 150 000, with a substantial collection of audiovisual material, especially paintings (including modern art). It places particular emphasis on collecting material from the South Island and contains many government, local government and business records.

11.4 Mass media

Broadcasting policy

Following policy announcements during 1988, the Government introduced the Broadcasting Act 1989 to give effect to the new policy. Its objectives include:

  • The increase of economic efficiency and consumer choice by permitting more competition and flexibility in the broadcasting industry;

  • The promotion of New Zealand identity and culture;

  • The provision of broadcasting services for varied interests in the community;

  • The maintenance broadcasting standards: and

  • The separation of social, policy advice and regulatory functions from commercial activities.

An earlier piece of legislation, the Broadcasting Corporation of New Zealand Restructuring Act 1988 restructured the Broadcasting Corporation. The corporation, previously responsible for the operation of television services, over which it held a monopoly, radio services, the publication of the weekly magazine New Zealand Listener, the administration of the New Zealand Symphony Orchestra and the provision of advice to government on broadcasting policy matters, has been restructured into two distinct state-owned enterprises. These are Television New Zealand Ltd and Radio New Zealand Ltd, each with its own management board. They have a primarily commercial orientation, but with social responsibilities as imposed by the State-Owned Enterprises Act 1986. The New Zealand Symphony Orchestra was established as a separate company.

The New Zealand Listener was established as a separate joint venture business in which both Television New Zealand and Radio New Zealand will take up equity. Aotearoa Maori Radio, previously managed by a sub-committee of the Broadcasting Corporation, was established as a charitable trust to be managed on a wholly independent basis. Full-time broadcasting in Auckland, as part of a planned network, commenced in 1989.

A Communications Division within the Ministry of Commerce is now responsible for advice on broadcasting policy matters. The ministry also administers the radio frequency service.

The Broadcasting Act 1989 came into force on 1 July 1989. It repealed the Broadcasting Act 1976, which placed restrictions on entry to broadcasting markets. No special restrictions now apply to the introduction of new services, such as cable television or direct satellite broadcasting. The Act abolished the Broadcasting Tribunal, the body previously responsible for granting of radio warrants and determining complaints in relation to broadcasting standards. It also removed all restrictions on advertising, except on Sunday morning television and on certain public holidays. Sponsorship and subscription are permitted for almost all services.

The Broadcasting Act 1989 is also the principal vehicle for meeting the Government's social policy objective in broadcasting, and the Broadcasting Commission and the Broadcasting Standards Authority were established as independent bodies to ensure these objectives are met. The establishment of these bodies also provides for the separation of regulatory, social and policy advice functions.

Promotion of New Zealand identity and culture. The Broadcasting Commission was established to fund activities which were seen as unlikely to be sufficiently provided on a commercial basis. More specifically, the commission has the following functions:

  • To reflect New Zealand culture and identity by promoting programmes about New Zealand or New Zealand interests, including the promotion of Maori language and culture;

  • To maintain—and where there are net social benefits extend—the coverage of television and radio to communities which would not otherwise receive a signal; to ensure a range of broadcasts is available to provide for the interests of women, children, persons with disabilities and minorities, including ethnic minorities; to encourage the establishment and operation of programme archives; and

  • To collect the Public Broadcasting Fee (PBF)—which is charged to television set users generally, at $110 per household from 1 July 1989. This revenue is then used to fund the commission's operations.

Commission funding is available to both private- and publicly-owned companies, whereas previously, almost all funding was provided to the Broadcasting Corporation of New Zealand. Competitive proposals are sought for providing the services wanted, with funding generally carried out through a variety of contracts.

There is also provision for non-commercial areas of broadcasting. Funding for the New Zealand Symphony Orchestra will change from being a charge on PBF and, over a three-year transition period, will be made a direct charge on government funding of the arts. Funding for parliamentary broadcasts, the international shortwave service, and educational broadcasts will become a charge upon existing departmental votes, rather than upon the Public Broadcasting Fee.

Broadcasting standards. The Broadcasting Act 1989 established a broadcasting standards regime and a four-person Broadcasting Standards Authority, to oversee and enforce that regime.

The regime relies, in the first instance, on the industry maintaining standards consistent with the observance of good taste and decency; the maintenance of law and order, the privacy of the individual; and impartiality and balance.

The authority's functions in relation to broadcasting standards are to:

  • Encourage broadcasters to develop and observe codes on the protection of children; the portrayal of violence; fair and accurate programming and procedures for correcting factual errors and redressing unfairness; restrictions on the promotion of liquor, safeguards in the area of human rights; the presentation of appropriate warnings; also,

  • To develop and issue codes itself, if codes developed by the industry are seen inadequate.

In relation to complaints, the authority:

  • Hears and determines complaints against broadcasters when the complainant is dissatisfied with the action taken by broadcasters, or when the complaint relates to issues of individual privacy; and,

  • Imposes penalties, the most significant of which is the imposition of a restriction on broadcasting for up to 24 hours.

There are appeal rights to the High Court against the authority's decisions. The new regime does not, however, provide for broadcasters to be permanently barred from broadcasting, as with the previous regime.

The authority assumes the work of the former Broadcasting Tribunal in the above areas. It has, however, also been made responsible for the allocation of free election broadcasting time. Its membership, in relation to this function, is increased by two, one nominated by the political leaders of each of the major political parties.

Developments in broadcasting. In November 1989, a third—privately-owned—national television network commenced in addition to Television New Zealand's two networks. This followed the issue of warrants by the Broadcasting Tribunal, which also approved warrants for new FM services in Auckland. Many further new private radio and television services are planned and expected to be established during 1990 under the provisions of the Radiocommunications Act 1989.

Independent broadcasting. The Independent Broadcasting Association, based in Auckland, represents the public and private companies which run the independent radio stations. While the independent radio stations are regionally-based, there is national coverage of news and sports items through networking.

Television

Television New Zealand. This government-owned company operates two channels in colour, using the PAL 625-line system. Television ONE is carried by seven high-powered and 442 medium- to low-powered transmitters and translators. Channel 2 is carried by seven high-powered and 287 medium- to low-powered transmitters and translators. Twenty-two of the transmitting stations are connected by a microwave distribution system, which with intermediate stations, comprises a total of 46. Both channels broadcast to virtually 100 percent of the country.

Programming—Each channel has its own identity and unique programme strategies which attract different sectors of the viewing audience. Television ONE contains a broadly based mix of quality drama, feature programmes, movies, sport, news, current affairs, entertainment, documentary and information feature programmes while Channel 2 is a blend of drama, comedy, music and entertainment.

Television New Zealand planned to screen 2700 hours of locally made programmes in 1990, 200 hours more than in 1989.

There has been growth in the drama area—now almost entirely produced by Television New Zealand's co-production subsidiary, South Pacific Pictures.

Television New Zealand also planned to screen 260 hours of feature and information programmes, including 49 hours of natural history documentaries, and over 200 hours of popular children's programmes during 1990.

The Maori department had a minimum of 66 hours scheduled for the year, not including Te Karero, a daily news programme.

Entertainment programmes, including ‘big event’ specials, accounted for over 400 hours of programme time, while sport accounted for 800 hours in total.

Teletext—Teletext is a free service provided by Television New Zealand. A range of general and special-interest news and information is transmitted encoded on a segment of the normal transmission not carrying a picture signal and is available to viewers with a set equipped with a built-in or add-on Teletext decoder. The service also provides programme sub-titles for viewers with impaired hearing. Teletext service began in February 1984 and, six years later, 179 000 or 18 percent of receivers operated in New Zealand now make use of it.

TV3 Network Limited. New Zealand's only privately-owned and listed television network—TV3—was launched on 25 November 1989. It broadcasts throughout New Zealand (achieving an 85 percent coverage) on the VHF spectrum, using PAL-B technology. There are 13 main transmission sites. The station's headquarters are in Auckland, with studios in Wellington and Christchurch.

The majority of TV3's capital was subscribed by New Zealand financial institutions, with major shareholdings by NBC of the United States and Metro Media Ltd (a privately-owned New Zealand radio company). TV3 stock is traded on the New Zealand Stock Exchange. Turnover is low, a result of the large proportion of shares held by institutions.

The network's programming is focused on the under-45 age group. A full range of programmes—news, current affairs, ‘sitcoms’, comedy, drama and documentaries—is offered. Apart from local productions, most programmes are drawn from Australia, the United States and Britain. News and current affairs programmes (excluding international news delivered by satellite) are produced by the station's own staff. Other local content is commissioned from private New Zealand production houses.

TV3 Network Limited went into receivership early in May 1990, but continued to broadcast.

Radio New Zealand

When Government restructuring dissolved the Broadcasting Corporation of New Zealand (BCNZ) at the end of November, 1988, the radio broadcasting which the corporation had previously operated through one of its services, Radio New Zealand, was taken over by a new organisation, Radio New Zealand Limited, a state-owned enterprise.

The company was constituted on 1 December 1988, in terms of the State-Owned Enterprises Act 1986, and specifically by the State-Owned Enterprises Amendment Act (No. 4) 1988. The radio broadcasting assets previously owned by the BCNZ were to pass through the Crown to the new company. However, Maori interests obtained an injunction preventing the planned transfer of BCNZ assets pending the resolution of a legal action. This action was based on a claim that the new structure failed to provide adequately for Maori interests. The BCNZ assets, their transfer frozen by that injunction, therefore remain the property of the Crown, under a temporary licence arrangement until the Maori legal action is settled. At the time of going to press the issue was still unresolved.

Radio New Zealand Limited was thus effectively obliged to take over the former BCNZ's radio broadcasting business as a licensee.

Radio New Zealand Limited must, as do other state-owned enterprises, operate a profitable business for its shareholders, the public through the Minister for State-owned Enter prises. It has the additional duty of meeting programme standards and providing a range of programme types which meet the Government's social and cultural broadcasting objectives. As the national radio broadcaster, it must also play a role in reflecting and developing the country, its identity and culture.

Radio New Zealand Limited is divided into six divisions. Three of these are concerned with corporate functions, engineering, and sales respectively. Another division provides news services to the range of Radio New Zealand stations, while the remaining two divisions are each responsible for separate networks—they are described below:

RNZ Ltd Commercial. This division includes 33 commercial stations (six of them contemporary music stations) each with its own local manager; a business unit group involved in the on-sale of radio products and services both locally and overseas; a human resources group; and Radio New Zealand sport. Conversion of local commercial station services from AM to FM where appropriate has been effected or is planned.

New Zealand Public Radio. This division is mainly funded by an allocation from Public Broadcasting Fee monies made by the Broadcasting Commission (see above). The principal services are National Radio and the Concert Programme, both networked. Conversion of the Concert Programme to FM stereo transmission, begun in the BCNZ period, is now almost completed, with nine main transmitters in operation, and many repeaters installed or planned. The AM transmitters previously used for Concert Programme coverage now form the nucleus of a new network, the AM Network, the role of which is to broadcast Parliament (previously carried by National Radio), major sports commentaries and educational and access programmes. Access Radio broadcasting continues under the New Zealand Public Radio division.

Radio New Zealand Sound Archives, with 31 000 historical tapes and discs and 100000 gramophone records (based in Timaru) is also a part of this division. Te Reo o Aotearoa, Radio New Zealand's Maori and Pacific Island language unit, produces a wide range of Maori, Pacific and English language programmes broadcast through National Radio.

Radio New Zealand International also comes under the New Zealand Public Radio division. For some years it has maintained a basic service daily to the South Pacific area using its 7.5 kW transmitter (1943 vintage), relaying the National Radio programme, supplemented by a cassette and transcription service, to Pacific countries. In co-operation with the Ministry of External Relations and Trade, which provided capital funding and will meet operating expenses, this service was upgraded in January 1990. A new 100 kW transmitter now broadcasts programmes specifically produced for the service, which is managed and operated by Radio New Zealand Limited for programming and engineering.

Radio New Zealand Limited's financial year is 1 July to 30 June. For the first period 1 December 1988 (the date of the company's incorporation) to June 1989, a total income of $53 576 000 was made up of sales ($33 285 000), Public Broadcasting Fees ($16 793 000) and miscellaneous ($3 498 000). Total expenditure was $49 193000, and taxation amounted to $1 313 000, leaving an operating profit after tax of $3 070 000. However, the assets employed by the company remained the property of the Crown, and are not shown in the balance sheet; a capital structure to account for the vesting of assets could not be taken on, a dividend policy could not be established, and the figures accordingly cannot be taken as representing a full commercial result.

Newspapers and magazines

Taking into account the size of its population, New Zealand has a high number of daily newspapers. Eighty years ago there were more than 60 daily newspapers published in New Zealand but by gradual attrition the total has been halved to the present figure of 32. Of these, nine are morning newspapers and 23 are published in the evening. The paper with the largest circulation is the New Zealand Herald, published in Auckland, which has an audited circulation of 250 118 copies daily. No other daily newspaper approaches this figure, with the circulation of other dailies ranging from 3000 to about 100000. Of the dailies still appearing, most began publication last century. The only exceptions are the Northland Times, 1904, The Dominion, 1907, the Dannevirke Evening News, 1909, and the National Business Review, 1987.

A feature of the newspaper publishing industry since the end of World War II has been a series of mergers and takeovers which has led to concentration of the ownership of the majority of the country's daily papers in three, and more recently two, major companies which have stock exchange listing. This contrasts with the pattern of ownership by members of a single family, or by a partnership, which was previously predominant, but which now survives only in some centres. With the retirement of New Zealand News Limited from the daily newspaper field in 1988–89, the two major publishing groups are now Independent Newspapers Limited, which publishes nine dailies, and Wilson and Horton Limited, which publishes eight. Between them, these two groups now publish daily papers which account for more than 80 percent of New Zealand's aggregate daily newspaper circulation of more than 1 million copies daily.

There are three Sunday newspapers, the Sunday Star, Sunday News, and Dominion Sunday Times, all published by Independent Newspapers Limited.

Another feature of newspaper publishing in recent decades, and especially in the past 15 years, has been the steady growth of suburban newspapers, most of them delivered free to all households in their recognised circulation areas. The majority are weeklies, a few are biweekly or tri-weekly. Some are owned by the two big groups or by publishers of other daily newspapers. Others are owned by individuals or small companies. The New Zealand Community Newspapers Association, to which most of these suburban ‘give-aways’ belong, has 100 members who, between them, publish 1.8 million copies per issue.

At the end of 1989 there were about 580 New Zealand magazines, journals, and newsletters that accept advertising. Of these, 80 specialised in agriculture, dairy products, farming, horticulture, fishing and forestry; 78 specialised in marketing, banking, finance, economics, commerce, data processing, local government, law, office equipment, and insurance; 81 specialised in architecture, building, construction, engineering, environment, real estate and transport; 34 specialised in medicine, dentistry, and health; 37 specialised in industry, manufacturing, refrigeration, printing, publishing, packaging, fuel and energy; 43 specialised in tourism and travel; 120 specialised in sports, social and ethnic issues, politics and religion; and 46 were consumer orientated or of general interest.

Advertising

The advertising industry in New Zealand, as in other western countries, is well developed. Advertising in the media is used by individuals, companies, government and many other organisations to sell goods and services and to inform the public.

Advertising industry. Approximately 1300 people are employed in advertising agencies, and 3000 in advertising-related services. Advertising revenue also contributes to the employment of another 12 000 people in the publishing, radio and television industries.

There have been advertising agencies operating in New Zealand for nearly 100 years. At the end of March 1989 there were approximately 67 agencies, most of which (44) were New Zealand-owned and the remainder (23) affiliated to multi-nationals by total or partial ownership (these tend to be the larger agencies). The number of agencies with overseas interests has grown from 12 in 1983.

Total advertising expenditure (media and non-media) in New Zealand for the year ended March 1989 was $1 366 million. Of this, $956 million was spent on media advertising—television, radio, newspapers, magazines, direct mail, cinema and outdoor. The remaining $410 million came from production and non-media advertising, such as promotions, and expenditure on advertising production. Nearly 50 percent of expenditure on media advertising ($478 million) was made through advertising agencies, with agencies placing 96 percent of advertising on television, 80 percent in magazines, 30 percent on radio, 15 percent in newspapers, and 50 percent of advertising through other media.

Spending on media advertising comprised 1.61 percent of GDP during the year ended March 1989 and was approximately $290 per capita.

Table 11.3. MEDIA ADVERTISING, 1989*

MediaExpenditureShare

* Year ended March.

Source: Associated Accredited Advertising Agencies.

 $(million)percentage
Newspapers38240.0
Television28830.1
Radio12312.9
Magazines909.4
Direct mail, outdoor, cinema737.6
                All media advertising956100.0

Table 11.4. ADVERTISING EXPENDITURE BY SELECTED INDUSTRIES; 1988*

Industry groupExpenditure

* Year ended March.

Source: Association of Accredited Advertising Agencies.

 $(million)
  1. Retail166
  2. Foodstuffs85
  3. Household74
  4. Leisure/travel/entertainment71
  5. Investment/finance/banking57
  6. Automotive50
  7. Miscellaneous49
  8. Beverages40
  9. Agricultural/industrial/office40
10. Toiletries/cosmetics30

Industry organisations and self-regulation. The Association of Accredited Advertising Agencies of New Zealand is an incorporated body representing the interests of its members on issues affecting the advertising industry and agencies. There are 50 member agencies which collectively represent about 90 percent of agency billings in New Zealand.

The industry has two self-regulatory bodies; the Committee of Advertising Practice, and the Advertising Standards Council. The first body's function is to promulgate codes of practice and develop policies on advertising standards. The Advertising Standards Council's function is to adjudicate in cases where codes have been breached and to advise the committee on codes and public issues. The council also provides a means for members of the public to complain about particular instances of advertising. There is also an Association of New Zealand Advertisers.

11.5 Recreation and sport

Sport and recreation have played an important part in creating and shaping New Zealand's national image, both at home and abroad, and contribute much to the lifestyle New Zealanders enjoy. In New Zealand there is the potential for everyone to participate in some form of recreation or sport and it is government policy to promote access to it for all New Zealanders.

Sport has been a predominant focus for cultural identity and New Zealand is perhaps best known for the calibre of its international sportspeople. But other forms of recreation are equally as important within the nation's life. The 125 000-strong membership of the New Zealand Amateur Arts Assembly, which represents 23 national bodies and 1546 clubs and groups, attests to the importance of the amateur arts as a form of participatory recreation. Outdoor recreation is favoured by a relatively pristine environment, rich in scenic beauty. An extensive and varied park system which includes national, forest and maritime parks, historic and scenic reserves, walkways and a large number of local parks and reserves showcases the environment and provides a full spectrum of recreational opportunity. The country's national parks and reserves are described in section 14.3.

The 1974–75 New Zealand Recreation Survey, a baseline study of recreational involvement, identified five main activity types: ‘cultural pursuits’, ‘sporting activities’, ‘interest groups’, ‘home-based’ and ‘other recreational activities’. The category ‘cultural pursuits’ involved a total of 85 percent of the population. Within this category ‘hobbies’, ‘education-related’, and ‘arts-related’ activities each involved over half of the population. The category ‘sporting activities’ involved 86 percent of the population. Within this category ‘team sports’ involved 46 percent of the population; ‘individual/small group sports’ 57 percent of the population; and ‘active outdoor recreation’ 70 percent of the population, The category ‘interest groups’—community service, professional, social and political—involved a total of 36 percent of the population. The category ‘home-based’ activities involved 70 percent of the population, and the broad category ‘other recreational activities’ 84 percent of the population. Overall, reading, gardening, and listening to records were respectively the most popular forms of recreation.

A 1987 survey found that among the more physically active forms of recreation, gardening proved to be the most commonly performed activity, followed by walking for recreation, and swimming.

During 1989 a national health-related lifestyle survey called ‘Life in New Zealand’ was undertaken on behalf of the Hillary Commission for Recreation and Sport. Results will be released in 1990.

Providing for recreation and sport

Hillary Commission for Recreation and Sport. Recreation and sport were first formally established as a Cabinet portfolio in 1973 with the establishment of the Ministry of Recreation and Sport and the Council for Recreation and Sport. In 1987 the two bodies were superseded by an independent statutory body, the Hillary Commission for Recreation and Sport. The commission initiates, supports and facilitates programmes and policies aimed at raising the quantity and quality of active participation in recreation and sport among all age groups of New Zealanders, both able-bodied and disabled, at all levels of competence.

The 11-member commission employs approximately 30 staff and contains two operational arms—SportsCorp and RecCorp. Sir Ronald Scott, the chairman of the 1974 Christchurch Commonwealth Games, is the commission's presiding member. It is funded by the New Zealand Lottery Grants Board and government.

In the year ended 31 March 1989 the commission distributed $12.2 million to recreation and sport. This included $3.3 million which was directed through local authorities to fund local recreation and sport; $2.27 million to assist national recreation and sports organisations; $2.21 million for the XIV Commonwealth Games; $0.8 million to the New Zealand Sports Foundation; $0.2 million towards the development and establishment of regional sport trusts; and $0.5 million to research and development in fitness and health. In addition, the Hillary Commission has developed initiatives and programmes in recreation and sport, such as the highly successful KiwiSport modified sports codes.

Other central government bodies. A wide array of other government departments, corporations and statutory bodies are concerned with recreation. The Department of Conservation is, for example, a principal land manager in the sphere of outdoor recreation, whilst the Department of Internal Affairs administers a number of programmes to help local authorities and community organisations provide for the needs of young people.

New Zealand is party with other Commonwealth nations in the Commonwealth Youth Programme. Established in 1973, the Commonwealth Youth Programme is a six-point plan of practical action: operating regional youth development centres, administering youth bursaries and study fellowships, investigating applied research, developing youth information services, assisting local youth projects, and supporting youth programmes. In New Zealand the Commonwealth Youth Programme is administered by a national liaison committee, serviced by the Department of Internal Affairs and composed of representatives from the Department of Internal Affairs, the Ministry of Foreign Affairs, the Department of Education, the Department of Maori Affairs, the Pacific Island Affairs unit, and the National Youth Council.

Local government. The provision of recreation and sport facilities such as libraries, community centres, parks and playing fields has long been an accepted part of the responsibilities of local and regional authorities. Many are now also becoming increasingly involved in programme management.

Voluntary sector. A pervasive volunteer spirit is one of the strengths of New Zealand recreation and sport. A 1981 survey showed 47 percent of the population as being members of a sporting or recreational club or society.

Leisure industry. The leisure industry is known to be large and expanding, but is difficult to measure other than indirectly and partially.

A 1983 report published by the Department of Internal Affairs estimated that up to 21.6 percent of the average household's expenditure was spent on recreation-related items including alcohol, holiday expenses, food eaten out and takeaways. The 1989 Business Directory compiled by the Department of Statistics showed 18 898 New Zealanders as being employed within the category ‘recreation services’, a 9 percent increase over the 17 327 recorded a year earlier.

Sport

For many New Zealanders the successful New Zealand sportsman or woman represents the archetype of the battler succeeding against the odds. International sporting events in which New Zealand features have the power to arouse intense nationalistic fervour. New Zealanders have fared exceptionally well in the international arena despite the country's distance from the world's major venues and, until the early 1970s, a comparative lack of state or corporate funding. At the 1984 Los Angeles Olympics, for example, New Zealand achieved a greater medal ratio per head of population than any other nation competing, although this may have been due in part to the absence of many Eastern European nations.

Various reasons have been advanced for New Zealand's success. A small population may have helped produce an affinity between the national hero and weekend athlete, and, while a generally temperate climate has made it possible for athletes to train year round, there is sufficient variety of terrain and climate to foster a wide range of summer and winter pursuits.

Traditionally New Zealanders have excelled in rugby union, which has been regarded as the national sport, and track and field athletics. However, Sir Edmund Hillary, who with Sherpa Tensing Norgay in 1953 was the first to climb Mount Everest, probably remains New Zealand's best internationally known sportsman. Over more recent years New Zealanders have had sustained international success in rowing, netball, squash, softball, cricket, yachting and other disciplines.

During 1989 New Zealand maintained its force in international sport. Many New Zealand sportsmen and women, whether individually or in teams, have continued to succeed at the highest level, such as the national netball team, the All Blacks, Susan Devoy in squash, Erin Baker and Rick Wells in triathlons, the men's softball team, and New Zealand's cricketers, rowers and canoeists.

Specific successes in other sports have included winning the World Relay Championships in Tokyo, and the NZ Women's Underwater Hockey Team winning the World Championships.

Sports participation. New Zealand's success at an elite level is founded on a broad base of mass participation and support. The New Zealand Assembly for Sport, which represents over 50 national associations, claims a collective membership of over 1.5 million.

A survey taken in March of 1987 found 19 percent of the population had taken part in competitive activity in the last four weeks and that 35 percent of the New Zealand adult population were members of what were for the purposes of the survey defined as activity-related clubs.

Though there has recently been concern that other interests may be depriving traditional team sports of their following, some sports and activities which are relative newcomers to the New Zealand scene—such as aerobics, indoor cricket, windsurfing and tenpin bowling—have experienced phenomenal growth, and other more traditional sports such as golf and cricket are thriving.

Table 11.5 describes participation rates for major sporting codes in New Zealand during 1987. Until the release of statistics from the ‘Life in New Zealand’ survey, described above, it remains the most recent data available.

Table 11.5. PARTICIPATION IN MAJOR SPORTS, YEAR ENDING MARCH 1987*

SportParticipantsIndividual participants at all levels
CompetitiveNon-competitiveMalesFemalesTotal

* Figure based on a survey of 1200 households.

† There is some overlap between competitive and non-competitive participants.

Source: Accident Compensation Corporation.

Badminton105,20077,20077,50082,800160,300
Basketball85,90053,40071,20055,800127,000
Bowls
     Indoor153,900121,40098,100127,400225,500
     Outdoor129,60064,00083,80071,000154,800
Cricket
     Indoor114,600232,900222,10080,200302,300
     Outdoor161,900105,600224,70042,200266,900
Golf227,400285,400248,800162,300411,100
Hockey103,80029,50059,30052,200111,500
Netball188,10034,40012,000194,300206,300
Rugby146,80047,000157,80013,900171,700
Rugby league7,5008,60014,4001,70016,100
Sailing34,60087,40066,60044,200110,800
Skiing6,80093,20049,80047,30097,100
Soccer
     Indoor24,60020,20035,7006,80042,500
     Outdoor212,30080,600214,60042,700257,300
Softball77,80039,30058,80050,600109,400
Squash74,600166,000139,00066,200205,200
Swimming207,400606,800333,000402,000735,000
Tennis167,600205,800161,900150,400312,300
Volleyball56,40043,60049,40044,20093,600
               Total2 286 8002 402 3002 370 5001 746 2004116 700

New Zealand Sports Foundation. The New Zealand Sports Foundation was formed in 1978 with the support and assistance of the private sector and government to meet the special needs of the country's top athletes. Sports Foundation funding has contributed to the recent success of many of New Zealand's athletes.

New Zealand Olympic and Commonwealth Games Association. The New Zealand Olympic and Commonwealth Games Association oversees the administration, selection, development and funding of New Zealand's Olympic and Commonwealth Games teams.

Outdoor leisure activities

Fishing. A wide variety of fish abound around the coasts, in bays and harbours. In both the North and South Islands many streams, rivers, and lakes provide excellent rainbow and brown trout fishing.

Average sizes of trout vary from district to district depending on environment, climate, food available, and the numbers of anglers. Average trout weights are as follows:

North Island—rainbow 1½ kg and brown 2¼ kg in the Rotorua lakes; rainbow 2½ kg and brown 2 kg in Lake Taupo; rainbow and brown 1 kg in river systems, 1–2 kg in acclimatisation society districts.

South Island—rainbow and brown 1–1½ kg in lake systems; sea-run brown 2¼ kg in West Coast rivers; sea-run quinnat salmon 6½ kg in the east coast rivers; land-locked salmon 1–1½ kg.

Big-game fishing. The warm waters off the east coast of the North Island provide some of the best surf, line, and spear fishing in the world. The main bases for line fishing from charter boats are at Whangaroa, Bay of Islands (Russell, Otehei Bay, and Waitangi), Tutukaka, Mercury Bay (Whitianga), and Tauranga (Mayor Island).

The most prized catches are broadbill, black marlin, striped marlin and blue marlin, while other types of big-game fish found in New Zealand waters are mainly tiger shark, hammerhead shark, mako shark, thresher shark, kingfish (yellow tail), and tuna. The best catches are usually made in February but fishing is good from December to April.

Shooting and hunting. The principal game birds are duck, swan, pheasant, quail, geese, and chukor, but the sport is limited, the main season usually extending for about six weeks from early May.

There are fewer restrictions on big game hunting—no limit on the number of game animals that can be taken, no licence required, and the season is open all year round. However, commercial hunting operations have severely limited the numbers of some game animals (deer of several species, elk, chamois, and that) that once abounded in the forest and alpine regions. Wild pigs, goats, and wallaby are still numerous in several areas. For tourists and inexperienced hunters, a guide is essential for hunting.

Skiing. The skiing season in New Zealand extends from mid-July to late October in the North Island, and from June to late October in the South Island.

In the North Island the main skiing centre is Mount Ruapehu in the Tongariro National Park. The main ski-fields are Whakapapa and Turoa, smaller club fields exist at Tukino and also on Mount Egmont.

In the South Island the principal ski areas are Coronet Peak, Remarkables, Cardrona (Queenstown), Treble Cone (Wanaka), Mount Dobson, Mount Hutt, Tekapo, Ohau and Porter Heights. There are also several smaller club ski-fields and with the operation of ski-planes in the Mount Cook region and helicopters in many areas of the South Island, access to other very good skiing is available to experienced skiers. Heli-skiing is available in the Ben Ohau Ranges, the Harris Mountains, the two Thumb Range, the Mount Cook area and at Mount Hutt, Twizel, the Remarkables and Fox Peak.

Mountaineering and tramping. The nearness of mountains and forests to the main centres of population in New Zealand encourages tramping. In the Waitakere and Hunua Ranges near Auckland, the central ranges of the North. Island; Taranaki, Tongariro, and Urewera National Parks; and throughout the extensive parks and protected natural areas of the South Island, there are tracks through beautiful scenery. There are many commercial guides in New Zealand, who can introduce people to the great outdoors.

Walking. Since the New Zealand Walkway Commission was established in 1976, considerable emphasis has been placed on the development of walking tracks in both rural and urban areas throughout the country. These walking tracks vary in length from about half an hour's walk up to four or five days' journey for the St James Walkway in North Canterbury. In addition to ‘walkways’, government agencies and local authorities throughout New Zealand develop and maintain both short and long tracks. Some of the more famous are the Milford and Routeburn Tracks in Fiordland, and the Heaphy Track in Nelson, which all take several days to travel.

Racing and gambling

Racing. Organised thoroughbred racing has been a feature of New Zealand life since the first European settlement. Race meetings were held to celebrate the first anniversaries of the Auckland, Wellington, Nelson, Otago and Canterbury settlements, and the racing clubs that were to follow became the first in the country. In the early 1890s formation began of a national body to control thoroughbred racing, known today as the New Zealand Racing Conference.

Harness, or standard bred, racing has also been organised since late last century. Today, many city and provincial clubs are co-ordinated by the New Zealand Harness Racing Conference.

There are thoroughbred and harness racing clubs in most cities and larger towns, as well as many smaller centres. The number of meetings held each year and the stakes offered vary widely—particularly between the larger city and the smaller provincial clubs, which may hold meetings as infrequently as once a year. There is also a strong horse breeding industry, with annual yearling sales attracting an increasing number of overseas buyers, although, with few notable exceptions, New Zealand-bred horses have had their greatest successes in Australian feature races.

Bookmaking has been illegal in New Zealand since 1910 and both on-course and off- course betting is conducted through the Totalisator Agency Board (TAB), which has branches throughout the country. Turnover is taxed by central government and certain deductions are made to assist with stakes, amenities and the upkeep of clubs and the balance being the pool from which dividends are declared. Full betting facilities are now available six-days-a-week, with the introduction of Thursday racing during 1989.

Greyhound racing has traditionally had a small following in New Zealand. Extension of TAB betting facilities to greyhound meetings in 1980 led to a steady increase in attendance and turnover.

The controlling body for racing policy is the New Zealand Racing Authority which was instituted by statute in 1971.

‘Pick 6’ (an off-course jackpot), a new form of betting, was introduced during 1989 and averaged a gross weekly turnover of $300 000 during its first few months.

Sunday racing is now also legal, although on-course only betting is available. The first Sunday meeting, of which there may be eight during a year, was held at Tauherenikau, in the Wairarapa, and was considered a success with a turnover of $250 000.

Table 11.6. RACE MEETINGS*

 GallopingTrottingGreyhounds
198719881987198819871988
* Full totalisator meetings only, for years ended July.
Racing days3233242042002929
Races3,119..2,040..290..
Stakes$(000)25,81831,27713,77015,017190238
On-course turnover$(000)125,916123,86378,12070,9771,4011,361
T.A.B. turnover$(000)523,920559,953223,043226,5929,33111,092
Total dividends$(000)512,301540,215237,306235,0808,3789,838

Lotteries and gaming. The Gaming and Lotteries Act 1977 is the main piece of legislation in this area. Its basic principle is that gambling may not be conducted for private gain, but for minor forms of gambling it is not necessary to obtain licences or permits provided conditions laid down in the Act are met. Additional forms of gambling may be authorised if public demand for them becomes sufficient although there are some prohibitions in the public interest. Where large numbers of participants and substantial amounts of money could be involved, licences continue to be required.

The Act identifies, and provides for the control of, four forms of gambling: games of chance (such as housie); bookmaking and betting (other than betting on horse racing and greyhound racing); prize competitions (such as football pools); and lotteries (previously called raffles). Horse and greyhound racing is controlled through the Racing Act 1971 (see above).

Calcuttas and gaming machines are recent introductions in this area. Calcuttas are a new innovation, based on the outcome of a race or sporting event. The public bid for the rights to ‘own’ a horse or person for the duration of the event. Should that horse or person win, the ‘owners’ collect a major share of the pool accumulated through the public bidding.

During 1989 a select committee considered submissions on a Casino Control Bill. The first reading was accepted by the House and passed in July 1989 it was then referred to another select committee. The bill was expected to become law during 1990.

Aside from gambling on horse races, lotteries account for the greatest amount of turnover. The New Zealand Lotteries Commission was established on 1 June 1987 to conduct all New Zealand lotteries defined by the Act. The New Zealand lotteries are Lotto and the Golden Kiwi (which went into retirement during 1989). The Instant Kiwi, a New Zealand prize competition was introduced during 1989.

The net profits from the lotteries and prize competitions are paid by the New Zealand Lotteries Commission to the New Zealand Lottery Grants Board for distribution to charities, the arts, sciences, recreation and sport. This funding is outlined in table 11.7.

Sales of Lotto and Golden Kiwi grossed $345 million, with $45.9 million profit for the community for the year ended 31 March 1989. Instant Kiwi was introduced on 14 September 1989 and sales greatly exceeded expectations, with 45.9 million $1 tickets being sold during the first four weeks. Sales have since settled at $5 million per week.

Table 11.7. ALLOCATION OF LOTTERY PROFITS

Recipient1985–861986–871987–881988–89
 $(000)
Welfare of Aged Persons Distribution Committee8258438251,450
Welfare Services Distribution Committee2,4152,4222,4003,300
Youth Services Distribution Committee8508528501,300
Medical Research Distribution Committee5005055001,100
Scientific Research Distribution Committee400357350700
General Purposes Distribution Committee9,8999 222x7,91716,150
Queen Elizabeth II Arts Council3,5003,7095,1509,750
Minister of Internal Affairs (s. 1161)1,1786506506,155
New Zealand Film Commission7508671,4003,750
Hillary Commission for Recreation and Sport5001,0006,800
1990 community projects1,000
                    Total20 31719 427x20 04251 455
Source: Department of Internal Affairs.

11.6 Tourism

New Zealand's natural assets have made it possible to build an international image as one of the world's most beautiful countries. The national parks system and undeveloped areas, relatively unpolluted air and water, open spaces, and distinctive plants and animal life are all desirable to international visitors. The recent world-wide expansion of tourism, and changing visitor demands have, however, resulted in changes to what New Zealand offers as a destination. More travel-experienced visitors, coming from a wider range of countries have interests that now encompass skiing, tramping, walking, white-water rafting, and a variety of other activities.

Visitors today are more interested in finding out more about the distinctive features of not only the New Zealand countryside, but also the way of life. The rural landscape and farm-life, the towns and the pace of life, art and craft activity, and the multi-cultural mix all contribute to New Zealand's distinctive appeal and are being used to promote New Zealand as a tourist destination.

Tourism industry

Impact of tourism. Tourism has both a direct and indirect impact on the economy. International visitors, in particular, make the industry a relatively high user of labour, a high earner of foreign exchange and a relatively low user of imports. Tourism is also capital intensive.

Domestic visitors account for about half the expenditure on tourism. The combined value of domestic and international tourism has been estimated to be $3 739 million for the year ended 31 March 1989.

The social consequences of tourism are largely beneficial, creating employment and stimulating a diversity of activities and facilities. The nature of New Zealand tourism encourages wide-ranging contact between residents and visitors, and this contact contributes to the current high acceptance of tourism by New Zealanders.

The largely unspoiled and unpolluted environment is a major attraction for visitors, and protection and wise management of resources ensures that tourism has a positive impact. Tourism also provides an alternative economic justification for protection of the environment. As a number of tourism ventures operate on protected land, the relationship for cooperation between tourism operators and the Department of Conservation has become increasingly important.

Table 11.8. EXPENDITURE BY TOURISTS FROM SELECTED COUNTRIES, 1989*

Country of residenceTotal travel
expenditure
Mean expenditure
per person
Mean expenditure
per day

* New Zealand International Visitors' Survey ‘988–89.

† Excludes international airfares. Includes pre-paid, cash and credit card spending during respondents’ visit to New Zealand.

Source: New Zealand Tourist and Publicity Department.

 $        $      $    
Australia335 514 1071,40987.89
United States309 021 1002,018134.79
Japan256 624 6262,863384.03
UK143 257 5472,11157.54
Canada72 576 9052,09594.05
West Germany51 877 6362,67484.53
Singapore21 001 7197,03296.19
Other314 876 7051,99063.93
            All countries1 524 780 3441 94195.15

Facilities for visitors. In recent years, there has been a marked trend toward more active, participatory holidays. Two elements contribute to this. Visitors want new experiences, and there is also a much greater diversity of things to do. The impetus for the development of new activities is provided by New Zealanders, both as domestic visitors and residents. As visitors now expect activities and amenities to complement New Zealand's scenic attractions, and are also looking for an insight into another culture and lifestyle, attractions and facilities developed primarily for the local or national community are increasingly used by visitors.

Some facilities have been developed specifically for tourism (whether international or domestic) including the following: souvenir shops; guided tours and sightseeing trips by all means of transport (including coach, taxi, jetboat, raft, plane); agricultural demonstrations (such as the Rotorua Agrodome); large-scale heritage and theme parks with entrance fees, such as the Museum of Transport and Technology (Auckland), Shantytown (Greymouth), Ferrymead Historic Park (Christchurch), and often a high degree of community involvement; duty-free shopping facilities; rides (such as Shotover River jet, helicopter flights, glacier excursions, steamer cruises, river rafting); guided hunting, fishing and tramping excursions; activities such as gold panning (Shantytown), 3-D maze (Wanaka); carving, glassblowing, greenstone jewellery demonstrations; hiring of gear for all types of outdoor recreation (including yacht charters, ski hire, fishing and hunting equipment, camping gear, horses, bikes, hang-gliding); information centres (especially in national parks or resorts areas); guided walks (such as the Milford. Heaphy, and Routeburn walks).

A second category is dual purpose facilities, either consciously developed for use by residents and visitors, or developed into tourism attractions, and includes the following: historic buildings and sites (including memorials, pa and battle sites, and notable buildings such as the Waitangi Treaty House); coffee shops, restaurants, bars, cabarets and nightclubs in non-resort areas; wildlife parks; reserves (such as the gannet sanctuary at Cape Kidnappers); recreation parks (such as Fantasyland in Hastings, Rainbow's End at Auckland), and small complexes with minigolf and bumper boats; local recreational facilities (such as canoeing on the River Avon, waterslides); horseriding, walkways and tracks (within urban green belts and in national parks, and forest parks and reserves); museums (regional, historical or theme); certain churches (in particular those of architectural or historical significance such as Old St Paul's, Wellington, First Church, Dunedin, St Paul's Memorial Church, Putiki); scenic drives in urban areas (marked for the benefit of residents and visitors); lookout towers or peaks (maintained by the local community); skifields and facilities; tramping huts and shelters; local industries which open to the public (but for which tourism is a sideline—often not charged for); airports, railway and bus stations, and marinas; local festivals and competitions (such as The Grand Traverse, the Golden Shears (Masterton), the Cherry Blossom Festival (Alexandra), and the Round the Bays Run (Auckland)); casual buskers, street dancers, actors and other performers.

Community facilities include the following: community centres (including meeting venues, hobby facilities and recreation areas); theatres, art galleries (including associated theatre companies, amateur dramatic groups); choirs, national, regional, and local orchestras, and dance companies; collectives (such as the arts centre in Christchurch); libraries, display centres for items/news of local interest; radio and television stations; movie theatres; churches and events organised by church groups; local parks and gardens; playgrounds, reserves, zoos; botanical gardens; racecourses (and associated refreshment and entertainment facilities); sports facilities including golf courses, public swimming pools, bowling alleys, sportsfields, and major sports stadiums such as Queen Elizabeth II Park and Mt Smart Stadium; shopping centres; university and other open educational institutions; youth, sports, cultural or hobby grounds and their facilities; organised sport; and marae.

Tourist accommodation. Commercial accommodation has undergone several distinct stages of development, resulting in today's wide variety of facilities. It includes private hotels, guest houses, tavern/hotels, tourist flats, motels, camping grounds, motor lodges, international standard hotels, cabins, chalets, skiing/hunting/fishing lodges, and farm/home-hosting. Accommodation patterns vary greatly between regions, depending on local population, terrain and climate.

Of all the person nights spent in New Zealand by international visitors in the year ended March 1989, 21.8 percent were spent in a hotel/motel with restaurant and 2.7 percent were spent in a motel without restaurant down 59.3 percent the year before. The trend is towards international visitors using several types of accommodation with an increase in the use of hotel/motel with a restaurant (12.9 percent).

The use of private homes by international visitors accounted for 48.3 percent of total person nights, and campervans and caravans absorbed 7.9 percent of all person nights for the year ended March 1989.

Most forms of commercial accommodation, especially in smaller centres, are subject to very seasonal occupancy rates. As an example. Queenstown commercial occupancy rates varied from 22.0 percent in June 1987 to 80.4 percent in November 1987. Fiordland showed similar fluctuations with 10.7 percent in June 1987 to 73.7 in February 1988 and also Bay of Islands with 24.8 percent in June 1987 to 70.2 percent in November 1987. Overall occupancy rates for hotels and motels in New Zealand have been low by international standards as other forms of accommodation such as home-hosting, campervans and hostels are attracting a larger proportion of visitors. There is an ample supply of medium- and lower-price range hotel and motel accommodation. Alternative forms are more actively promoted than in the past and the competition they provide has led to increased pressure on hotels and motels to form chains for marketing and forward reservations. Seasonal price variations are also becoming evident and the consumer is benefiting from the increased competition between and within the different forms of accommodation.

Transport used by visitors. New Zealand has a highly developed public transport system, with scheduled air services to most areas and an extensive network of coach operations. Limited rail transport, passenger, and vehicular ferry services are also available. However, there is a trend for visitors to choose forms of transport offering greater flexibility, such as campervans. Rental cars are used at some stage by 28.2 percent of all visitors to New Zealand and several major rental car firms operate in New Zealand. The use of private cars by international visitors has increased over recent years.

In order of use, rental car (20.5 percent); organised coach tour (18.7 percent); and private car (17.8 percent) are the three most favoured means of internal transport for international visitors. Holiday/vacation visitors favour organised coach tours (23.2 percent) or rental cars (22.5 percent). Those visiting friends and relatives make much greater use of private cars (51.2 percent) compared with holiday visitors (8.4 percent). Business travellers prefer rental cars (22.5 percent) and private cars (21.8 percent). An increasing number of holiday visitors use campervans (13.3 percent) as their main transport type. Most visitors use several modes of transport.

International visitors

More than 850 000 overseas visitors now arrive in New Zealand annually. Visitor arrival numbers grew by 1.4 percent in the year ended 31 March 1989, compared with 12.1 percent in the previous year. There has been a growing diversification of countries from which overseas visitors originate.

Table 11.9. NUMBERS OF INTERNATIONAL VISITORS

Year ended
31 March
HolidayStay with
friends and
relatives
BusinessOther*Total

* Includes work or working holiday, formal education, stopover, and unspecified.

† Excludes through passengers (defined as passengers who do not stay ashore in New Zealand).

Source: New Zealand Tourist and Publicity Department.

1983257,910114,75958,07456,915487,658
1984285,845116,79361,25054,553518,441
1985341,984127,58668,26959,156596,995
1986404,032140,48174,66169,899689,073
1987441,081157,61976,08788,422763,209
1988455,834194,93288,215116,511855,492
1989439,249207,333100,224120,716867,522

Table 11.1. COUNTRY OF ORIGIN OF INTERNATIONAL VISITORS

CountryYear ended March
19881989
Australia295,566296,496
United States131,448116,901
Japan79,92895,457
United Kingdom66,74972,216
Canada34,50136,492
Germany, West18,70521,199
Singapore14,98914,995
Taiwan6,61310,332
Hong Kong8,1609,700
Sweden8,8479,146
Malaysia7,5048,968
Switzerland8,4418,803
Netherlands6,0097,226
Fiji8,7127,213
Indonesia2,8324,570
France3,2954,166
Tahiti (French Polynesia)4,5383,490
Papua New Guinea3,0562,898
South Africa2,2282,025
Source: New Zealand Tourist and Publicity Department.

Domestic travel

New Zealanders regard holidays as part of their lifestyle. Relaxation, socialising, new experiences, nostalgia, visiting friends and relatives and participation in sports and other special events are all reasons for a holiday, and New Zealanders often travel for a combination of these reasons. During 1988–89, New Zealanders made 10.3 million trips away from home which included at least one night away, and spent 42.7 million person nights away, a 5.2 percent decrease on the 10.8 million trips made during the previous year and a 30 percent decrease on three years before.

Table 11.11. DOMESTIC TRAVEL DESTINATIONS

Local government regionYear ended March 1988Year ended March 1989
ProportionVisitorsProportionVisitors
 percentno. (000)percentno. (000)
Northland6.73,0606.82,909
Auckland13.15,96213.45,720
Thames Valley5.92,6776.12,612
Waikato8.02,2935.32,283
Bay of Plenty9.74,4179.54,051
East Cape2.71,2121.8771
Tongariro5.92,6834.21,819
Taranaki2.31,0302.91,247
Wanganui2.29862.81,214
Manawatu2.41,1063.321,421
Hawkes Bay4.72,1234.61,980
Wairarapa1.35701.2542
Horowhenua1.25301.5646
Wellington5.52,5156.62,805
Nelson Boys3.11,4272.51,110
Marlborough2.61,1603.21,370
Canterbury8.53,4819.44,020
Aorangi2.21,0312.41,039
West Coast2.81,2812.3983
Coast/North Otago3.11,3993.21,385
Clutha/Central Otago6.22,7954.51,949
Southland2.91,3291.9825
Source: New Zealand Tourist and Publicity Department.

Promotion of tourism

New Zealand Tourist and Publicity Department. The Tourist and Publicity Department is responsible for the co-ordinated promotion of New Zealand overseas as a tourism destination, and encourages and stimulates domestic tourism. Information and advisory services for the tourism industry are provided by regional offices situated at Auckland, Rotorua, Wellington, Christchurch, and Queenstown. International offices are located at Sydney, Melbourne, Singapore, Tokyo, Frankfurt, London, New York, Los Angeles, Vancouver and Hong Kong. The department also supplies general New Zealand publicity material, publications, films, photographs and displays for use within New Zealand and overseas to create a background knowledge of New Zealand, as well as facilitating this knowledge by bringing visiting journalists and publicists to New Zealand to experience New Zealand first hand.

New Zealand Tourism Council. Established in 1982, the council is a 14-member advisory body to government. It has an independent chairperson, with members drawn largely from the private tourism sector. The secretariat is provided by the New Zealand Tourist and Publicity Department.

New Zealand Tourist Industry Federation. Established in 1984, the Tourist Industry Federation represents a wide range of national associations, industry members, and regional groups connected with the tourism industry. It serves as the united voice of the New Zealand tourism industry.

Contributors

  • 11.1 Department of Internal Affairs; Queen Elizabeth II Arts Council; Department of Justice.

  • 11.2 Department of Internal Affairs; Department of Conservation.

  • 11.3 Book Publishers Association of New Zealand; New Zealand Library Association; National Library of New Zealand.

  • 11.4 Ministry of Commerce; Television New Zealand Ltd; TV3 Network Ltd; Radio New Zealand Ltd; New Zealand Press Council; Nielsen Marketing Research Ltd; Association of Accredited Advertising Agencies.

  • 11.5 Hillary Commission for Recreation and Sport; New Zealand Tourist and Publicity Department; Department of Internal Affairs; New Zealand Lotteries Commission.

  • 11.6 New Zealand Tourist and Publicity Department.

Historical

Department of Statistics; Film Censor's Office; R. D. McEldowney; H. L. Verry; Tourist Hotel Corporation.

Further information

Fostering the arts

Museums, Historic Buildings and Galleries of New Zealand. New Zealand Tourist and Publicity Department, 1988.

Report of the Department of Internal Affairs (Parl. paper. G. 7).

Report of the New Zealand Film Commission (Parl. paper G. 19).

Report of the New Zealand Lottery Grants Board (Parl. paper G. 7B).

Report of the Queen Elizabeth 11 Arts Council of New Zealand (Parl. paper G. 11).

Report of the New Zealand Historic Places Trust (Parl. paper G. 10).

The national collection

Report of the Board of Trustees, National Art Gallery, National Museum, and National War Memorial (Parl. paper G. 12).

Books and libraries

Report of the Trustees of the National Library of New Zealand (Parl. paper G. 13).

Mass media

Report of the Ministry of Commerce (Parl. Paper G. 46).

Report of the Royal Commission of Inquiry into Broadcasting and Related Telecommunications in New Zealand. Government Printing Office, 1986.

Recreation and sport

Freshwater Catch. Ministry of Agriculture and Fisheries (quarterly).

An Assessment of Initiatives in Fitness and Health. Hillary Commission for Recreation and Sport, 1987.

Report of the Department of Internal Affairs (Parl. paper G. 7).

Report of the Hillary Commission for Recreation and Sport (Parl. paper E. 32).

Report of the New Zealand Lottery Grants Board (Parl. paper G. 7B).

Report of the Queen Elizabeth the Second National Trust (Parl. paper C 2).

Tourism

New Zealand Domestic Travel Study: Accommodation Report. New Zealand Tourist and Publicity Department (annual).

New Zealand International Visitors Survey. New Zealand Tourist and Publicity Department (annual).

Report of the New Zealand Tourist and Publicity Department (Parl. paper G. 25).

Report of the Tourist Hotel Corporation (Parl. paper G. 24).

Chapter 12. Employment

12.1 Labour force

In general terms the labour force is the working population aged 15 years and over, including jobless people who are seeking work. The main source of labour-force data is the Department of Statistics, which collects information in three ways:

  • Through the Household Labour Force Survey (which since 1985 has produced labour-force information every three months, based on a sample of approximately 12000 households)

  • Through the five-yearly Census of Population and Dwellings (which collects information from everyone aged 15 years and over); and

  • Through the Quarterly Employment Survey (which counts the number of jobs in various industries).

Another source of labour force data is the Department of Labour, which produces statistics on the number of job vacancies reported to it, people in subsidised work, and people registering with the New Zealand Employment Service.

Since April 1990, the Household Labour Force Survey has been enhanced. The sample doubled to approximately 24 000 households every quarter. It provides detailed regional statistics on a quarterly basis and key national labour market information on a monthly basis.

Official definitions of the labour force have changed as new sources of statistics have been developed, as labour market conditions have changed, and as different sources have attempted to standardise their definitions. Until recently, the Department of Statistics excluded part-time workers from their estimates of the labour force. With the launching of the Household Labour Force Survey (HLFS) in 1985, however, the Department of Statistics, in accordance with International Labour Organisation (ILO) guidelines, began counting part-time workers in the labour force. The Department of Statistics has also changed its definition of part-time work, from ‘less than 20 hours per week’ to ‘less than 30’, bringing it into line with the Department of Labour's definition. These changes apply not only to the Household Labour Force Survey but also to statistics from the 1986 census.

The current census and Household Labour Force Survey definitions of the labour force count all those who work for one hour or more per week for pay or profit (including unpaid family members working in a family-owned enterprise) plus unemployed people who are ‘actively’ seeking work or are about to start a job.

Table 12.1. THE LABOUR FORCE*

Quarter endedLabour forceNot in labour forceWorking-age populationLabour force participation rateUnemployment rate
EmployedUnemployed

* Based on quarterly Household Labour Force Survey.

† Civilian, non-institutionalised, usually resident New Zealand population aged 15 and over.

 (000)percent
Male
1988-Sep846.855.2304.51 206.574.86.1
               Dec858.457.6292.41 208.475.86.3
1989-Mar843.268.5298.41 210.175.37.5
               Jun831.768.3310.31 210.374.47.6
               Sep829.264.7317.21 211.073.87.2
               Dec844.462.6308.01 214.974.76.9
Female
1988-Sep632.440.3587.51 260.253.46.0
               Dec638.137.1587.51 262.753.55.5
1989-Mar622.247.8595.11 265.153.07.1
               Jun618.545.8601.51 265.852.56.9
               Sep620.844.1602.11 267.052.56.6
               Dec633.746.9590.81 271.453.56.9
Total
1988-Sep1 479.295.5892.02 466.763.86.1
               Dec1 496.494.7879.92 471.164.46.0
1989-Mar1 465.51 16.3893.42 475.263.97.4
               Jun1 450.21 14.1911.82 476.063.27.3
               Sep1 450.0108.8919.32 478.162.97.0
               Dec1 478.0109.5898.82 486.263.96.9

Size and growth of the labour force

New Zealand's labour force (both full-time and part-time) has grown steadily, from 914 712 persons at the 1961 census to 1 608 612 persons at the 1986 census—an increase of 693 900 or 75.9 percent, during the 25-year period. By comparison, the New Zealand population of working age (15 years and over) increased more slowly, from 1 616 042 at the 1961 census to 2 468 301 at the 1986 census, a growth during the period of 852 529 or 52.7 percent.

The faster growth in the labour force relative to the population of working age is reflected in an increase in labour force participation from 56.6 percent to 65.2 percent during the 1961–86 intercensal period.

Labour force growth and changes in labour force participation levels have varied markedly between males and females between 1961 and 1986. The male labour force grew from 674578 at the 1961 census to 938 613 at the 1986 census, an increase of 264 035 or 39.1 percent. There was an extremely high level of growth in the female labour force, which grew from 240 134 to 670002, an increase of 429 868 or 179.0 percent.

In contrast to male labour force participation, which decreased slowly but steadily during the intercensal period 1961–86, female labour force participation has increased rapidly. This has resulted in a marked change in the sex distribution within the labour force. At the 1961 census 73.7 percent of the labour force were males, but by the 1986 census this figure had fallen to 58.3 percent.

The size of the labour force depends upon changes in the supply of and demand for labour. Some of the demographic, social and economic factors which affect labour supply and demand are discussed later in this chapter.

In the accompanying graph the historical trends in the male, female and total labour force and in the working-age population over the intercensal period 1961–86 can be seen. The corresponding projections to the year 2011 provide an indication of the likely future labour force Supply and working-age population.

According to these projections, New Zealand's supply of labour is expected to grow by a further 392000 to reach approximately 2 million by the year 2011. Both the male and female labour force are projected to increase steadily to reach 1 118 000 and 883 000 respectively, by that year. Most of the growth in the female labour force is projected to occur over the next ten years when the participation rates of females are expected to increase moderately. In contrast, the number of males in the labour force will increase steadily because of ah increasing male working-age population, although the participation of males will fall marginally.

By the year 2011, 73.9 percent of the male population and 56.5 percent of the female population aged 15 years and over will be in the labour force. This will represent a ratio of 126 males to 100 females in the labour force.

These projections were derived from the 1985-base population projections series described in section 5.5, by applying projected age-sex specific labour force participation rates to the projected population. Participation rates were generally assumed to decrease slightly for males and increase moderately for females during the period 1986–96 and thereafter to remain constant. It must be stressed that these are projections and not predictions. They measure the future labour force supply based on the specified assumptions, and should only be used as approximate guidelines.

Table 12.2. AGE AND SEX OF THE LABOUR FORCE, 1986 CENSUS*

Age group (years)MalesFemales
Full-time in labour forcePart-time in labour forcePercentage labour force full-timeFull-time in labour forcePart-time in labour forcePercentage labour force full-time
* Population resident in New Zealand aged 15 and over. Data on work status have been subject to a process of random rounding. All figures including totals, have been rounded using simple random rounding to base three. Individual figures therefore will not necessarily sum to give the stated totals.
15–1981,54317,81182.167,78521,48975.9
20–24122,4487,30594.490,06313,88486.6
25–29120,8765,11595.961,15523,17872.5
30–34112,1584,24296.446,26632,26258.9
35–39111,6033,78996.752,47934,95060.0
40–4489,4242,92296.847,28025,44365.0
45–4976,9922,80296.540,7019,96567.1
50–5465,7512,78195.929,2385,15365.9
55–5962,5383,65494.520,11811,47563.7
60 and over33,67811,16675.18,8208,30151.5
          Total877 01761 59693.4463 899206 10369.2
Percentage of population72.55.136.916.4

Table 12.2 shows the full-time and part-time labour force at the 1986 Census of Population and Dwellings, by age group and sex. For that census the traditional coverage of employment-related questions was reintroduced (this had been changed for the 1981 census). Overseas visitors aged 15 years and over in the country on census night were again required to complete all the questions on the personal questionnaire.

Because of changes in definitions. 1986 census statistics on the full- and part-time labour force cannot be directly compared with similar series from the 1981 census. For the 1986 census the full-time labour force comprised those persons aged 15 years and over working 30 hours or more per week or those unemployed and seeking full-time work. Those people aged 15 years and over working 1–29 hours per week or unemployed and seeking part-time work, formed the part-time labour force, whereas in the 1981 and earlier censuses the cut-off point between full-time and part-time was 20 hours per week. This, for example, resulted in 19 650 persons who were working between 20 and 29 hours at the 1981 census being transferred from the full-time to the part-time labour force.

There was a clear structural difference between the male and female participation rates in the labour force at the 1986 census. The overall participation rate for the male population (aged 15 years and over) was much higher, 77.5 percent compared with 53.5 percent for females. Some of the reasons for this disparity are discussed in the following section.

The impact of education can be seen in the total participation rates for the 15–19, and to a lesser extent the 20–29 years, age groups, where there are large numbers of students in the ‘not working’ category.

Participation rates for the labour force are highest in the age group 35–39 years and remain high until the age group 50–54 years. There the recent changes in retirement patterns—earlier retirement and redundancy—begin to take effect.

Women in the labour force

Increased participation in the labour force by women reflects their changing role in society. New Zealand women are now living in a more career-oriented society than previous generations and, like men, work because of economic necessity. This is especially evident in the increases in the female labour force numbers and is also consistent with later marriage, more childless marriages and changes in patterns of child rearing. These trends, which are common to most developed countries, tend to be less advanced in New Zealand than in similar societies.

The female labour force at the 1986 Census of Population and Dwellings numbered 669 999, of which 463 899 were full-time workers and 206 100 part-time workers. At the 1981 census the corresponding total figure was 550 863.

Analysis of the work status of working-age females shows that there were 223 689 ‘married’ women in the full-time labour force, compared with 182 496 ‘never married’ women. In the part-time labour force the figures contrasted sharply, 148 269 women being ‘married’ and only 36 168 women ‘never married’, partly a reflection of the way women often fit their jobs round their family responsibilities. (By definition ‘married’ includes the ‘first marriage’ and ‘remarried’ categories.)

Of the 206 100 females in the part-time labour force, 54 897 were aged 45 years and over, with a large number of these being in the ‘married’ group. These figures indicate the return of many women to the work-force after raising children.

National Advisor)' Council on the Employment of Women (NACEW). The National Advisory Council on the Employment of Women is composed of a chairperson and 12 other members. The chairperson and six council members are appointed by the Minister of Employment for their knowledge and experience in women's employment matters. The remaining six members represent the major employee and employer organisations in the private and public sectors, and the Department of Labour and the Ministry of Education.

The council's primary function is to advise the Minister of Employment on all matters relating to the employment of women: for example, equal opportunity for girls and women in employment and training, equal pay, parental leave, childcare and the social welfare system as it affects women.

A second function is to promote greater public knowledge and understanding of women's employment and its implications. Accordingly, the council has made submissions to bodies such as the Royal Commission on Social Policy, the select committee on the Employment Equity Bill and the review of the Disabled Persons Employment Promotion Act 1975. (The proposed legislation on employment equity is described in more detail in section 12.5, Labour relations.)

Thirdly, in co-operation with the Department of Labour, which provides secretarial assistance to NACEW, the council has published statistics and other material on women's employment issues; promoted research into the employment of women and related topics such as industrial childcare and equal pay; and promoted schemes to explore ways of assisting disadvantaged groups of women in the paid work-force. The council is currently engaged in research into women's participation in the labour market.

Part-time work

The population resident in New Zealand and employed in the full-time labour force, i.e., working 30 hours or more per week, increased from 1 189 434 at the 1981 census to 1 278 192 at the 1986 census, a rise of 88 758 or 7.5 percent. By contrast, those working 1–29 hours per week increased during the same period by 23 430 or 11.8 percent. Approximately comparable figures from the 1981 census have been derived by estimating the numbers actively engaged in both the full- and part-time labour force with hours of work ‘not specified’.

Between the 1981 and 1986 censuses the composition of the employed population changed quite dramatically in terms of both hours worked and the sex of those employed. The percentage of males employed in the part-time labour force increased for all ‘hours worked’ categories during the intercensal period. This situation was reversed for employed males in the full-time labour force, with the exception of the 30–34 hours group. Analysis of the intercensal changes in the size of the male and female full- and part-time labour forces by hours worked, indicates the different structure. Much higher percentage rates of growth were experienced by males actively engaged part-time, relative to females. In the case of the full-time labour force, the male-female differentials in intercensal growth were reversed for all ‘hours worked’ groups. These structural changes reflect the supply of, and demand for, labour according to hours worked. They are caused by complex social and economic factors.

Table 12.3. HOURS OF WORK*

Hours worked per weekMalesFemales
1981 census1986 censusPercentage intercensal change1981 census1986 censusPercentage intercensal change

* Population resident in New Zealand and gainfully employed in the labour force.

† Excludes persons unemployed and seeking work.

‡ Estimated.

Part-time labour force
  1–42,8622,9432.811,13910,677−4.1
  5–96,67211,03465.424,80427,51910.9
10–145,4008,34054.427,50429,6887.9
15–193,8047,30592.028,35331,51811.2
20–247,76711,11843.142,48344,2864.2
25–293,8915,61344.325,50926,1752.6
Not specified1 8092,64045.95 7902,352−59.4
     Total, part-time32 205;48 99652.1165 582;172 2214.0
Full-time labour force
30–3411,66117,99154.335,13639,40512.1
35–3966,21959,016−10.982,97487,6815.7
40–44416,241367,122−11.8192,981210,0458.8
45–49106,485124,85417.314,81130,021102.7
50–5486,83599,11414.19,82818,90392.3
55–5925,78836,07839.93,2827,065115.3
60–6449,73452,4705.56,0819,67859.2
65–699,32712,56734.79512,037114.2
70–7416,29018,41413.02,5174,00259.0
75 or more24,88528,59314.95,6649,97276.1
Not specified16 47625,11052.45 28618,054241.5
          Total, full-time829 929;841 3291.4359 505;436 86321.5
          Total862 134890 32533525 087609 08416.0

Employment status

Analysis of trends in employment status during the intercensal period 1981–86 is not possible because of changes in the definition of employment status for the 1986 census.

Table 12.4. EMPLOYMENT STATUS OF THE LABOUR FORCE, 1986 CENSUS*

Age group (years)Employer of others in own businessSelf-employed and not employingWage or salary earnerUnpaid worker in familyUnemployed and seeking workNot specifiedTotal
* Persons resident in New Zealand working one or more hours per week, plus persons unemployed and seeking work.
Males
15–1923179279,32354018,20426499,357
20–241,8426,108110,78735410,287378129,753
25–296,67213,30299,6753125,529504125,991
30–3411,88315,96384,2253483,417567116,403
35–3915,37517,12179,4493902,505555115,395
40–4413,74014,03761,9143571,81847792,346
45–4911,51712,10553,9703301,49437879,794
50–548,70910,03547,6073511,50033368,532
55–597,3659,66046,5843571,91731266,189
60–643,9305,55017,57456194818628,746
65 and over2,6705,0076,86467866321916,104
          Total83 928109 683687 9754 57548 2794 176938 610
Females
15–1915926769,43829418,93618089,274
20–248011,90889,65861210,743225103,944
25–292,3824,26067,8481,6387,91728284,327
30–343,9786,00659,1092,3166,77734278,528
35–395,1067,01166,7832,4545,62844787,429
40–444,4585,68856,6611,8483,71435772,726
45–493,5434,60247,9161,4672,85627960,663
50–542,3553,48035,2111,0562,08819844,388
55–591,5032,59525,0718281,43116531,593
60–646721,1978,3885405019311,394
65 and over4449873,4354323211115,724
          Total25 40438 001529 51213 491609122 676670 002

A number of observations can be made from table 12.4, however. Firstly, there is the dominance of the males in the ‘employer of others in own business’ and ‘self employed and not employing others’ categories. At the 1986 census 20.7 percent of males were employed in these two categories, compared with 9.5 percent of females. In contrast, ‘wage or salary earners’ constituted 73.6 percent of the male labour force, in comparison with females where the corresponding figure was 79.3 percent.

A higher proportion of women were ‘unpaid workers in family businesses’—2.0 percent compared with 0.5 percent of males. Also, females had a higher level of unemployment than males, a situation which is discussed in more detail in section 12.2, Unemployment.

Industrial structure of the labour force

During 1981–86 the industrial structure of the New Zealand labour force showed a continuation of the long-term shift in employment away from selected secondary' industries into some tertiary industries. This follows a trend that has become established throughout western countries.

The data in the following tables shows only the employed labour force. Table 12.5 shows the employed population (both full-time and part-time) by industry at the 1981 and 1986 censuses. The industries are grouped into ‘major divisions’ consistent with the New Zealand Standard Industrial Classification. Employment in manufacturing fell from 23.0 percent to 21.3 percent during the intercensal period. Other major secondary industries showed varying levels of growth or decline; ‘electricity, gas and water’ retained its share of employment while the building and construction industry increased its share of employment.

The tertiary sector increased its overall share of the employed population, from 58.4 percent at the 1981 census to 59.6 percent at the 1986 census. However, within this sector the ‘transport, storage and communication’ and ‘community, social’ major divisions declined as a percentage of total employment. The primary industries, ‘agriculture, hunting, forestry and fishing’, and ‘mining and quarrying’ marginally increased their proportion of the employed population, from 11.2 percent to 11.3 percent.

There were wide variations both in the proportions of males and females and in full-time and part-time employment within each industry major group at the 1986 census.

Table 12.5. INDUSTRIAL STRUCTURE OF THE LABOUR FORCE*

Industry major division1981 census1986 censusPercentage intercensal change
NumberPercentage distributionNumberPercentage distribution

* Persons resident in New Zealand gainfully employed for one or more hours per week. Excludes persons unemployed and seeking work.

† Calculated from persons whose industry major group is adequately defined.

Agriculture, hunting, forestry and fishing152,75410.9161,63410.95.8
Mining and quarrying4,7310.35,9970.426.8
Manufacturing321,08123.0316,20321.3−1.5
Electricity, gas and water15,3061.115,7291.12.8
Building and construction88,2606.3102,0366.815.6
Wholesale, retail, restaurant252,52818.1292,13119.715.7
Transport, storage communication110,7337.9110,9767.50.2
Finance, insurance, property97,2337.0122,9468.326.4
Community, social354,59725.4357,73524.10.9
Not adequately defined50,25314,025−72.1
          Total1447 479100.01 499 421100.03.6

Occupational structure of the labour force

The New Zealand Standard Classification of Occupations lists eight major occupational groups defined in terms of the work a person performs. As is the case in other developed countries, New Zealand has experienced a continuation of the long-term growth in the number and proportion of the employed population in the ‘white collar’ category and a corresponding decline in manual occupations.

Between the 1981 and 1986 censuses, the major groups within the ‘sedentary’ group—‘professional, technical’; ‘administrative, management’; ‘clerical’ and ‘service workers’—showed increases in their percentage shares of the employed population. Only the percentage of people employed as ‘sales workers’ showed a decline during the intercensal period. The fastest growing major group was that of ‘administrative, management’, which increased from 3.4 percent of the total at the 1981 census to 5.0 percent at the 1986 census (see table 12.6). In contrast, the major group of ‘production workers, transport, equipment operators and labourers’ experienced a fall in its share of the employed during 1981–86, from 33.6 percent to 30.9 percent. Also, agricultural and related occupations declined as a percentage of the employed.

Table 12.6. OCCUPATIONAL STRUCTURE OF THE LABOUR FORCE*

Occupation major group1981 census1986 censusPercentage intercensal change
Number xPercentage distributionNumberPercentage distribution

* Persons aged 15 years and over resident in New Zealand working one or more hours per week. Excludes those unemployed and seeking work.

† Calculated on adequately defined cases only.

Professional, technical200,32214.7224,93415.112.3
Administrative, management46,3713.474,0705.059.7
Clerical231,69317.0262,11317.613.1
Sales workers144,60610.6152,13010.25.2
Service workers133,6209.8149,80510.112.1
Agricultural, animal husbandry and forestry workers, fishermen and hunters150,76211.1162,51910.97.8
Production workers, transport, equipment operators and labourers452,02533.2460,13431.01.8
Not adequately defined27,83713,713−50.7
          Total1 387 236100.01 499 421100.08.1

There was wide variation in the occupational distribution of the male and female employed populations at the 1986 census. These differences become even greater when employees are further classified by full-time and part-time status as shown in table 12.7.

Table 12.7. LABOUR FORCE BY OCCUPATION, WORK STATUS AND SEX, 1986 CENSUS*

Occupation major groupFull-timePart-time;Full-time as percentage of total
NumberPercentage of total§NumberPercentage of total§

* Population usually resident in New Zealand aged 15 years and over.

† Persons working 30 or more hours per week. Excludes those unemployed and seeking full-time work.

‡ Persons working 1–29 hours per week. Excludes those unemployed and seeking part-time work.

§ Calculated on adequately defined cases only.

Professional, technical
     Male110,59213.35,32511.195.4
     Female79,88118.329,13617.073.3
Administrative, management
     Male59,8897.21,1852.598.1
     Female10,3772.42,6221.579.8
Clerical
     Male64,6357.82,5715.396.2
     Female151,00534.843,90525.677.5
Sales workers
     Male74,3138.96,47113.592.0
     Female47,41210.923,93414.066.5
Service workers
     Male49,6236.05,64011.789.8
     Female50,91611.743,62325.553.9
Agricultural, animal husbandry and forestry workers, fishers and hunters
     Male109,32913.17,72516.193.4
     Female30,7027.114,7608.667.5
Production, transport equipment operators and labourers
     Male364,57843.819,17639.995.0
     Female63,17714.613,2037.782.7
Not adequately defined
     Male8,37690090.3
     Female3,3991,04176.6
          Total, male841 335100.048 996100.094.5
          Total, female436 866100.0172 221100.071.7

12.2 Unemployment

There are three main sources of unemployment data in New Zealand:

  • The Department of Statistics' Household Labour Force Survey (which from April 1990 commenced quarterly unemployment estimates based on a sample of around 24 000 households, rather than 12 000, which was the case previously);

  • The Department of Statistics' five-yearly Census of Population and Dwellings (which asks everyone aged 15 years and over whether they are unemployed and seeking work); and

  • The Department of Labour's ‘job-seeker register’ (which is a monthly listing of people who have registered with the New Zealand Employment Service in search of full-time work).

Although they all use the term ‘unemployment’, these measures do not always count the same people, as they have different scope, definitions and collection methods. The measures can differ—though these differences are not constant, as the number of registered job-seekers fluctuates monthly, while the household survey estimate is averaged over three months. This can sometimes result in the monthly registered job-seeker rate exceeding the Household Labour Force Survey's quarterly average unemployment rate.

The five-yearly census has the broadest definition of unemployment, counting everyone who said they were both unemployed and ‘actively’ seeking full-time or part-time work in the past four weeks. The Department of Labour's job-seeker register, on the other hand, counts only those who want full-time work and have taken the step of registering with the department.

Between these two is the Household Labour Force Survey (HLFS), which provides an internationally-recognised measure of unemployment in New Zealand. Like its counterparts overseas, it follows International Labour Organisation (ILO) guidelines. It counts only those jobless who were available to start work in the previous week, and had ‘actively’ sought work in the past month, or were already waiting to start a job within the following four weeks.

None of these measures give the complete picture of the numbers out of work and wanting a job. The Department of Labour, for example, does not count those who only want part-time work. The census and the Household Labour Force Survey exclude jobless people who did not take ‘active’ steps to find work in the past month, that is, those who only looked at newspaper advertisements and those who had given up hope of finding work. In addition, the Household Labour Force Survey also excludes active job-seekers who said they could not have taken up work during the week prior to the survey.

Growth of unemployment

A major disadvantage of the population census as an indicator of the trends in unemployment is that it provides data at five-yearly intervals only. Also, unemployment figures from successive censuses are not strictly comparable because of changes in definitions and coverage of the full- and part-time labour forces, and the working-age population. Notwithstanding these pitfalls the historical table at the beginning of section 12.1, Labour Force contains an historical summary of unemployment.

Social and demographic characteristics of unemployment

At the 1986 Census of Population and Dwellings, and using the census definition of ‘unemployed’ (those stating they were unemployed and actively seeking full- or part-time work), a provisional total of 109 191 persons—comprising 48 279 males and 60 912 females—were unemployed. This number was 6.8 percent of the labour force, while that for males was 5.1 percent and that for females 9.1 percent of the male and female labour forces respectively.

A breakdown by ethnic origin reveals that there were 25 386 New Zealand Maori unemployed, representing 14.9 percent of the Maori labour force.

The corresponding figure for Pacific Island Polynesians was 5334 (11.7 percent of the Pacific Island Polynesian labour force). Unemployed ‘Europeans and others’ numbered 77 817 or only 5.6 percent of this ethnic category of the labour force. Table 12.8 shows the numbers and percentages of unemployed in the labour force by major ethnic group and age. Both New Zealand Maori and Pacific Island Polynesians have proportionately much higher levels of unemployment, especially in the 15–19 age group. This problem is closely related to educational levels and other questions of equality of access to employment.

Table 12.8. ETHNIC ORIGIN AND AGE OF THE UNEMPLOYED, 1986 CENSUS*

Age group (years)New Zealand MaoriPacific Island PolynesianEuropean and other§Not specifiedTotal
Number unemployedPercentageNumber unemployedPercentageNumber unemployedPercentageNumber unemployedPercentageNumber unemployedPercentage

* Population resident in New Zealand aged 15 years and over.

† Persons of single origin or descent.

‡ Persons of single ethnic origin.

§ Total population excluding New Zealand Maori, Pacific Island Polynesians and ethnic origin ‘not specified’.

15–176,14436.996338.518,25524.411423.925,47627.0
18–193,09020.961219.57,90210.46011.911,66412.4
20–246,02118.11,00212.713,8877.31209.821,0309.0
25–345,88612.51,46710.016,1314.71567.723,6405.8
35–442,3947.97357.010,4553.2815.313,6653.7
45–541,2966.54117.86,1802.7513.87,9383.1
55–593576.61059.12,8503.1365.53,3483.4
60–641146.8307.91,2933.4124.01,4493.6
65 and over8112.02125.98614.1217.69844.5
Total25 38614.93 33411.777 8175.66547.8109 1916.8

In table 12.9 males and females unemployed and seeking work and belonging to the population resident in New Zealand are classified by highest school qualification category (both in absolute terms and as percentages of the labour force). This table suggests that the level of unemployment as a percentage of the labour force is directly related to scholastic achievement. Also, irrespective of educational qualification, the percentages of females in the labour force unemployed are higher than for males.

Table 12.9. EDUCATIONAL QUALIFICATIONS AND SEX OF THE UNEMPLOYED, 1986 CENSUS*

Highest school qualificationMalesFemalesMales as percentage of total unemployed
NumberPercentageNumberPercentage

* Population resident in New Zealand aged 15 years and over.

† Persons unemployed and seeking work.

‡ Includes still at school and seeking work.

§ Includes New Zealand or overseas qualifications which could not be defined as belonging to one of the previous categories.

No school qualifications26,9496.129,52310.947.1
School Certificate, 1 or 2 passes4,4884.97,05310.238.9
School Certificate, 3 or more passes4,7613.97,6297.338.4
Sixth Form Certificate, Endorsed School Certificate2,0103.53,6996.835.2
University Entrance, Matriculation3,7713.76,0426.538.4
Higher School Certificate, Higher Leaving Certificate1,8393.52,2147.245.4
University Bursary, Scholarship3,2587.12,93711.152.6
Other§2433.57298.025.0
Not specified9605.91,0899.646.9
          Total48 2795.160 9129.144.2

12.3 Training and employment assistance

Vocational training in New Zealand is increasingly becoming part of the education sector and recent government initiatives have tended to strengthen the links in this area.

From July 1990 a new Education and Training Support Agency will take over responsibility for the ACCESS training scheme, the apprenticeship system and other aspects of vocational training from the Department of Labour. A Career Development and Transition Education Service has also been set up and will take over the activities of the former Department of Education and the Department of Labour in this field.

Government provides training and employment programmes aimed at the long-term unemployed, particularly those who are most disadvantaged in the labour market. This includes the ACCESS scheme (established in 1987 and mentioned below) and other initiatives, such as community work schemes, organised in co-operation with other agencies. The New Zealand Employment Service, a division of the Department of Labour, administers the majority of these schemes, in addition to providing an employment service.

Education and Training Support Agency

This agency has been set up to improve links between education and work. Its prime responsibility is training individuals for the labour market. The new agency will administer and service the ACCESS and apprenticeship systems and primary industry cadet training. The functions of these schemes have not changed.

The agency will also contribute to the development of policy for post-compulsory education and training. It will be independent, working under a charter to the Minister of Education. Specific outputs will be set out in a corporate plan negotiated with the Ministry of Education.

As well as working with ACCESS, apprenticeship, and primary industry cadet training, the agency will:

  • Respond to the needs of its clients and to government labour market policies;

  • Work with apprenticeship committees to promote apprenticeship training;

  • Support and service Regional Employment and ACCESS Councils (REACs) to help with ACCESS training in the regions;

  • Support sector training committees in assisting primary industry cadet training; and

  • Explain schemes to a wider audience than the client groups.

An interim board has been formed to establish the agency.

ACCESS training. The ACCESS training programme provides training opportunities for unemployed people. It provides technical institute, community-based and work-based vocational training courses. ACCESS is targeted at disadvantaged unemployed people in general, and at young school leavers and people with a history of unemployment in particular. Job-seekers do not need to be registered with the Department of Labour to be eligible.

ACCESS is established under the Access Training Scheme Act 1988 and is managed by a network of regional employment and ACCESS councils (REACs) which work to ensure that the training provided through the programme is matched to the needs of local labour markets. A separate but complementary Maori ACCESS scheme has been established which provides approximately 20 percent of ACCESS training administered through Iwi authorities.

Apprenticeship. Each year around 7000 apprentices begin contracts in the 36 industries with organised trade training. Typically contracts last for 7000 or 8000 working hours (three-and-a-half years), although the trend is towards shorter training periods and competency-based completion of training. Training is essentially carried out on the job, but is usually augmented by technical institute courses.

New Zealand apprenticeship committees, which are tripartite in constitution, are established for each industry. They ensure that training patterns and conditions of employment for apprentices are appropriate and allow apprentices to learn the trade skills needed in that industry. At the local level, a network of industry-based local committees exist to promote apprenticeship training and assist apprentices and employers with any difficulties arising.

Over recent years there have been a number of government initiatives to reform trade training. To assist industries with the reform process financial incentives are offered. A number of full-time trade training courses have also been piloted in technical institutes. See also section 9.3, Tertiary and continuing education.

Table 12.1. APPRENTICESHIP CONTRACTS IN SELECTED INDUSTRIES*

IndustryContracts begun during yearCompleted during yearTotal in force

* At 31 March 1989.

Source: Department of Labour.

Carpentry6241,1423,489
Electrical4926162,287
Engineering2918452,165
Hairdressing8275632,196
Motor7131,0803,117
Plumbing193255924
Printing145275709

Primary industry cadet schemes. These schemes provide entrants to primary industries with the skills and knowledge necessary to follow a career in one or more areas. The training includes both on-the-job instruction and stud) towards a recognised national qualification. The total number of cadets in the farm, horticulture, equine cadet schemes at the end of March 1990 was 2317. Government has provided, through Federated Farmers of New Zealand Inc., various grants to assist in the administration of the scheme.

Industry training boards. These were formally established by a 1972 amendment to the Vocational Training Council Act 1968. They were formally under the auspices of the Vocational Training Council, which was disestablished on 30 June 1990, but industry training boards will remain in existence.

Boards included representatives of employer, employee, educational and other groups. Industry training boards employ training officers whose main function is to examine existing training and assess the need for revised or new schemes within their particular industry. Some training officers may also sun industry-specific courses. At April 1990 there were 21 industry training boards covering the following industries, textile and apparel, aviation and travel, contracting, dairy, distribution, electrical and electronics, engineering, fishing, footwear, funeral services, furniture, hotel and catering, joinery, journalism, logging and forestry, motor, pharmacy, plumbing, gas and drainlaying, shipping, stock and station, and waterfront. The boards are funded by industry rather than by government. Other functions performed by the Vocational Training Council have been transferred to the Education and Training Support Agency and the Career Development and Transition Education Service (see below).

Career Development and Transition Education Service

This service will provide and facilitate a range of services to assist people in making career decisions.

The service will be set up on 1 July 1990 as an independent Crown agency chartered to the Minister of Education. Its aims and objectives will be set out in a corporate plan negotiated with the Ministry of Education. It will bring together the activities of the Transition Division of the former Department of Education and the Career Education and Careers Information Services from the Department of Labour and as such will provide a coordinated nationwide approach to career development for people of all ages.

The service will operate a Quest database—a national computerised database with details about New Zealand occupations, courses and training. This will be available for people of all ages, particularly unemployed and redundant workers, employment officers and educational institutions.

The service will provide:

  • Information on occupations, careers, education and training;

  • Career counselling for individuals and groups;

  • Training for people who offer transition education and career counselling and guidance; and

  • A consultancy service for people who work in career development and transition education.

It will also:

  • Develop transition/career programmes, systems and materials.

  • Establish and help to maintain networks of people working in the career development and transition education fields.

  • Work with others, such as formal and informal education groups, iwi, regional employment and ACCESS councils (REACs), training providers and district advisory committees on transition education.

Employment assistance measures

New Zealand Employment Service. Known until 1 October 1988 as the Employment and Vocational Guidance Service, this division of the Department of Labour provides free nationwide employment services to job-seekers and employers through over 70 employment centres. It provides a vacancy listing and job-seeker referral service to employers, maintains a register of the unemployed, and provides occupational information, job vacancy information, and referral and placement assistance to job-seekers. It also provides counselling and career information to people of all ages and backgrounds.

The following schemes are administered by the New Zealand Employment Service:

Job Opportunities Scheme. This scheme is the primary employment assistance programme. It has four main options. The most used option of the scheme provides a partial wage subsidy for six months to employers who employ a job-seeker who has been registered as unemployed for at least 15 weeks. A second option offers a higher level of financial assistance to employers who take on a more severely disadvantaged job-seeker. Two further options provide partial subsidies to unemployed people wishing to move towards self-sufficiency in employment by establishing their own business or group enterprise.

Restart. This is a pilot scheme for people who have been registered as unemployed for more than nine months. It exists to help the unemployed to maintain their work skills, work habits and links with the labour force, and so enhance their employment prospects. A subsidy of $346 per week is paid for each eligible person employed by local authorities, government departments and community organisations to carry out work of clear benefit to the community.

Community work. Community work is available, on a voluntary basis, to people who have been registered as unemployed for more than 18 months. This pilot scheme provides constructive activity which will retain a work ethic, develop job skills and experience and rebuild self-confidence and self-esteem. A negotiable supervision grant is paid to local authorities and community organisations which sponsor the activity. Volunteers continue to receive income maintenance from the Department of Social Welfare.

Group development assistance. This is for groups and individuals who are socially alienated and severely disadvantage in the labour market. It offers legitimate channels of success as a basis for attaining self-sufficiency. A negotiable grant is paid to organisations providing work. Participants continue to receive income maintenance from the Department of Social Welfare.

New Zealand Conservation Corps. The New Zealand Conservation Corps is available to young people aged between 16 and 23. It offers opportunities for personal development and skill acquisition through conservation activities which will be of lasting benefit to the community. The level of funding is negotiated with organisations offering projects. Corps members receive a training allowance equivalent to that paid to ACCESS trainees.

Local Employment and Enterprise Development Scheme. This scheme funds organisations providing business training, advice and support to people who are without the experience in business, but wish to participate in a commercial activity. The amount available to each approved organisation is $150 000 over three years, payable annually.

Mobility assistance. To encourage the mobility of job-seekers, and in recognition of increasing differences in regional unemployment rates, a distance job search grant of up to $1 000 is available to qualifying registered unemployed job-seekers to help them investigate job opportunities, housing, schooling and other matters in a new location. A mobility grant of up to $2 000 is also available to qualifying job-seekers who are moving to take up a confirmed job offer, where a change of accommodation is involved.

Group Employment Liaison Service. The Group Employment Liaison Service works with groups of disadvantaged unemployed people to help them liaise with government departments to make better use of employment and training programmes. A network of 25 fieldworkers provides this liaison and advisory service through the offices of the Department of Labour.

Small Co-operative Enterprises Scheme. The Department of Internal Affairs funds and operates this scheme, which provides advisory and financial assistance to disadvantaged people who are unemployed and wish to set up small-scale co-operative business ventures. Finance is available in the form of grants and loans for feasibility studies, working capital, equipment and the purchase of specialist skills.

Work Development Scheme. Also offered by the Department of Internal Affairs, this scheme provides advice, support and finance to community-based projects which are working to improve the skills and employment opportunities of disadvantaged young people.

Employment and training for Maori and Pacific Island Polynesians. Maori input to government employment and training policies is co-ordinated by the Iwi Transition Agency (see also section 6.4).

Assistance is provided to Maori and Pacific Island students participating in pre-apprenticeship and vocational courses. On the completion of courses, efforts are made to place students in full-time employment. Support is also provided to Maori students undertaking university studies. Maori and Pacific Island youth are also placed directly with employers for a period of training. Wages are subsidised for one year, after which the trainee is taken onto the employer's staff or is found similar work with another firm.

Funding allocated by the government to the ACCESS programme is delivered through a network of tribal and regional authorities.

MANA Enterprises—This programme is designed to create employment opportunities for Maori people through the creation of Maori enterprises and the expansion of existing Maori businesses. The mechanism for achieving this aim is an enterprise-funding scheme for which policies are established at a national level by the Iwi Transition Agency and administered at a local level by tribal regional authorities.

Community Employment Development Unit. This unit was established on 28 March 1990 within the Department of Labour. Ten regionally-based project officers work in conjunction with government agencies, local government, community organisations, business groups, education groups, trade unions, and the unemployed throughout the country to assess and develop employment strategies to meet local needs.

The unit has the following functions:

  • To encourage and develop community-based employment strategies;

  • To collect and distribute information about local initiatives and resources so that other communities may learn and benefit from them;

  • To provide training for people involved in planning and implementing community-based employment and enterprise initiatives; and

  • To advise what technical and financial resources or specialist advice is needed or available to put employment ideas into effect.

The unit publishes practical guides, information bulletins, such as Employment Matters, and case studies of employment, training, and enterprise studies and initiatives. It organises regular conferences and skills workshops, and arranges visits to community employment programmes for people involved in planning their own schemes. Among the ideas which the unit may explore and develop with community groups are ‘monitoring’; community-planning workshops; small-town self-help; venture workshops; a ‘jobmate’ scheme; redundancy action; ‘parents as partners’ and service club vocational schemes.

New Business Investigation Grants Scheme. This was previously known as the Structural Adjustment Supplement and before that as the Community Employment Investigation Scheme, which operated from 1987. Responsibility for funding it has since transferred from the Department of Labour to the Ministry of Commerce which also administers the grant. It provides individual grants to eligible applicants (primarily people who are unemployed or made redundant) to help them explore ideas for establishing a business. Voluntary termination of employment does not qualify.

The grant is provided to cover the costs applicants incur in investigating the commercial viability and technical feasibility of their proposals. The grant funds 80 percent of these costs with the balance being met by the applicant. The maximum grant is $20 000 per project. The grant may be used to cover costs such as professional fees, travel and accommodation, wages, some hire charges, and preparation of the final report. The cost of setting up the project does not qualify for assistance.

Claims against the approved grant must be supported by receipts. Claimants must be registered for goods and services tax.

Ten percent of each claim is withheld by the Ministry of Commerce until it receives a final report on the findings of the investigation. (All such reports will be made freely available on request six months following their receipt by the ministry.)

Grants must be uplifted within a specified period (normally 12 months) following the approval, otherwise they lapse unless an extension is granted.

12.4 Pay and incomes

Personal income

Data from the 1986 Census of Population and Dwellings allows income groups to be correlated with employment status. This is shown in table 12.11. Comparable figures from the 1981 census cannot be used for analysis because of the definitional changes relating to the labour force between the 1981 and 1986 censuses discussed above.

Table 12.11. INCOME BY EMPLOYMENT STATUS, 1986 CENSUS*

Income group and sexEmployer of others in own businessSelf-employed and not employing othersWage or salary earnerUnemployed and seeking workOtherTotal

* Population resident in New Zealand aged 15 years and over and working one or more hours per week or unemployed and seeking work.

† Includes unpaid workers in family businesses.

‡ Includes nil or less.

       $
2 500 or less
     Male2,5055,50814,64014,0162,20238,880
     Female1,1884,36838,88624,8796,15075,474
2 501–5 000
     Male1,1073,57910,6117,52441423,232
     Female1,2664,23044,9948,3371,70760,537
5 001–7 500
     Male2,4006,86723,3709,47182242,930
     Female2,3915,29861,9838,2441. 67179,587
     7 501–10 000      
     Male3,92710,16744,6104,86673264,299
     Female2,8895,29875,7866,1141,23691,320
10001–15 000
     Male11,64324,009144,9065,7661,383187,716
     Female5,7547,896140,2744,4041,371159,696
15 001–20000
     Male12,31820,451159,8311,386900194,886
     Female3,7053,81096,873648579105,609
20 001–25 000
     Male11,15413,530122,112528552147,870
     Female2,4332,06140,98017727945,936
25 001–30 000
     Male8,9708,24778,42025835796,252
     Female1,6561,09214,4726312017,403
30001–40000
     Male10,7526,90656,91918032175,078
     Female1,4949275,607271208,181
40001 and over
     Male16,3265,84422,6177831545,174
     Female1,3297561,137211593,405
Not specified
     Male2,8234,5759,9364,19776522,293
     Female1,2932,2628,5207,9952,77522,848
          Total, males83 925109 683687 97548 2768 748938 610
          Total, females25 40138 004529 51560 91516 167670 002

At the 1986 census the median income groups for males were higher than for females in all employment status groups and, consequently, for the total labour force. Although the differences between the male and female median income groups varied according to employment status, the median income group for males was $15000-$20000, one group higher than for females ($10 000-$15 000) in the total labour force.

These disparities in median income between males and females are also present in the statistics on income groups by work status, i.e., both full-time and part-time in the labour force. It is only in the ‘not working’ category that both sexes belong to the same median income group.

Table 12.12 shows the number of males and females at the 1986 census belonging to each income group in the three work status categories. Sex differentials by median income group in the labour force, both by employment and work status, are mainly caused by the different occupational and industry mixes of males and females. Equal pay legislation aimed at further reducing the differences between the median incomes of those working in the same occupation or industry groups is before Parliament.

Table 12.12. INCOME BY WORK STATUS. 1986 CENSUS*

Income group and sexFull-time in labour forcePart-time in labour force;Not workingTotal

* Population resident in New Zealand aged 15 years and over.

† Persons working 30 or more-hours a week, plus persons unemployed and seeking full-time work.

‡ Persons working 1–29 hours, plus persons unemployed and seeking part-time work.

§ Includes nil or less.

       $
2 500 or less§
     Male24,80714,07050,53889,418
     Female26,17249,308162,327237,801
2 501–5 000
     Male17,9345,30115,25838,490
     Female21,37539,16538,78499,324
5 001–7 500
     Male36,7776,15083,712126,642
     Female39,03640,551161,772241,359
7 501–10 000
     Male58,3985,90435,37999,678
     Female62,61328,71079,308170,631
10 001–15 000
     Male176,67311,04035,892223,608
     Female133,66526,03453,811213,510
15 001–20000
     Male187,5637,32914,247209,133
     Female98,1727,44012,972118,587
20 001–25 000
     Male143,6044,2696,750154,623
     Female42,6663,2705,47251,408
25 001–30 000
     Male93,8252,4273,18399,435
     Female15,9541,4492,38219,788
30 001–40 000
     Male73,5571,5212,41277,484
     Female7,2968851,92310,107
40 001 and over
     Male44,0161,1641,58146,752
     Female2,8325701,2424,650
Not specified
     Male19,8692,42422,83345,126
     Female14,1188,72767,90590,750
          Total, males877 01461 596271 7821 210 392
          Total, females463 899206 103587 9101 257 909

Earnings

In January 1989 the Department of Statistics assumed responsibility for the Quarterly Employment Survey, which was previously conducted by the Department of Labour. A full coverage of the survey is undertaken in February with sample surveys being carried out in May, August and November.

The survey covers businesses with more than two ‘full-time equivalent’ employees (excluding working proprietors). Information is collected for the previous payweek ended immediately on or before the 20th of the middle month of the quarter and is deemed to apply to the mid-point of the month concerned.

Industries excluded from the survey are; agriculture and agricultural contracting, fishing, seagoing work, domestic services in households, the armed forces, and the owning and leasing of real estate.

An adjusted series of survey statistics for the period from February 1987 has been produced on a compatible linked basis with the data from February 1989 onwards and is incorporated in table 12.13, which shows average weekly earnings. Table 12.14 shows average ordinary time hourly and weekly earnings by sector.

Table 12.13. AVERAGE WEEKLY EARNINGS

Date of surveyAverage weekly earnings*
Ordinary timeTotal
* Including allowances and special payments (bonuses, penal and shift allowances, paid leave, and commission).
 $     $     
1987—Feb399.99431.12
          May409.76440.98
          Aug420.47450.59
          Nov426.12458.62
1988—Feb440.69472.47
          May453.35486.92
          Aug461.27491.30
          Nov465.75498.96
1989—Feb478.32512.36
          May480.36512.79
          Aug485.18516.52
          Nov494.28529.98

Table 12.14. AVERAGE ORDINARY TIME HOURLY AND WEEKLY EARNINGS, AUGUST 1989

 PrivateCentral government tradingCentral government non-tradingLocal government tradingLocal government non-tradingAll sectors
Hourly earnings—$
          Males13.3416.3517.9414.3313.7114.39
          Females10.7411.9113.4511.6412.6511.66
          All persons12.3114.7515.3513.7813.4313.23
Weekly earnings—
          Males494.27632.58678.93543.04521.61537.84
          Females375.77457.39496.44397.23452.05417.06
          All persons445.74569.19572.41510.86502.31485.18

Real disposable income

Real disposable income indexes and related series measure the impact of changes in incomes, taxation and consumer prices on the purchasing power of selected groups of individuals and of households within the New Zealand population. They are therefore important economic indicators.

The real disposable income series are produced by the Department of Statistics. Information on individual incomes and other tax-related characteristics (e.g., number of dependent children) is obtained from a representative sample of New Zealand private households who have participated in the department's Household Expenditure and Income Survey.

To calculate the series for any particular quarter, incomes from all sources, government benefits and tax-related expenditures are projected to equivalent current levels and the appropriate tax scales applied to estimate and deduct income tax liability. The net incomes are then adjusted for inflation as measured by the Consumers Price Index (CPI), to produce a measure of changes in the purchasing power of the group concerned over time.

In addition to the overall real disposable income series, the following component series are published:

Average gross income indexes—measuring the changing level of gross income from all sources.

Average tax rates—expressing total personal income tax liability as a proportion of total gross income.

These series are calculated for individual full-time wage and salary earners (defined as persons working at least 30 hours per week for wages and/or salaries as the principal source of income). Series are also calculated for the households of full-time wage and salary earners and for national superannuation payments.

For individual full-time wage and salary earners only, separate series are produced for the highest 20 percent of earners, the second highest 20 percent and so on down to the lowest 20 percent. Only series for the highest, middle and lowest income groups are shown in the following tables and graph. The estimated annual gross income ranges for the June 1989 quarter are specified below:

Highest 20 percent$37 800 and over
Second highest 20 percent$28 900 and under $37 800
Middle 20 percent$23 100 and under $28 900
Second lowest 20 percent$17 500 and under $23 100
Lowest 20 percentunder $17 500

The income ranges relating to the five income groups vary from quarter to quarter. The individuals falling into each group may also change due to differing wage increases between industries and, occasionally, due to changes in government benefit schemes.

Trends in the Real Disposable Income Indexes for full-time wage and salary earners are illustrated in the accompanying graph and some significant economic events, which influenced the results, are marked.

It should be noted that as Family Support is divided equally between spouses, the series for individual full-time wage and salary earners do not reflect the full effect of the scheme on families. This has particular relevance for lower income groups. A significant proportion of spouses receiving Family Support are not full-time wage and salary earners.

Table 12.15. REAL DISPOSABLE INCOME INDEXES AND RELATED MEASURES FOR FULL-TIME WAGE AND SALARY EARNERS*

Calendar quarterLowest 20 percentMiddle 20 percentHighest 20 percentAll full-time wage and salary earners
Index numberPercentage change from same quarter previous yearIndex numberPercentage change from same quarter previous yearIndex numberPercentage change from same quarter previous yearIndex numberPercentage change from same quarter previous year

* Persons working 30 or more hours per week for wages and/or salaries as the principal source of income. Base: Year ended 31 March 1981 (= 1000).

† To calculate these indexes gross incomes are first adjusted for income tax liability and then for inflation as measured by the Consumers Price Index. The series therefore measure quarterly changes in the after-tax purchasing power of gross incomes.

‡ Measure the changing level of gross income from all sources.

§ For each group of taxpayers, total personal income tax liability is expressed as a proportion of total gross income from all sources.

Real disposable income indexes
1986—Mar940−0.69180.8972−1.2943−0.2
          Jun9653.89455.59892.99664.3
          Sep9413.99255.69663.09444.3
          Dec9514.59437.010157.79706.7
1987—Mar9602.19523.710194.89783./
          Jun952−1.3943−0.210081.99690.3
          Sep9470.69442.110084.39682.5
          Dec942−0.9938−0.51000−1.5962−0.8
1988—Mar940−2.1936−1.7987−3.1955−2.4
          Jun9540.29480.5997−1.1966−0.3
          Sep9490.29460.2995−1.3963−0.5
          Dec9571.69642.810709.010064.6
1989—Mar9703.29784.5110311.810206.8
          Jun9550.19672.010749.710094.5
Average gross income indexes;
1986—Mar178414.9178116.7180217.7179016.8
          Jun190518.1189519.1192520.2190919.4
          Sep191918.8191819.9195221.2193220.3
          Dec195117.0195518.1199619.6197018.5
1987—Mar2,03213.92,03014.02,07014.92,04614.3
          Jun2,0859.42,0839.92,13110.72,10310.2
          Sep2,11110.02,12210.62,17611.52,14010.8
          Dec2,15110.32,15910.42,21310.92,17910.6
1988—Mar2,2128.92,2269.72,2729.82,2419.5
          Jun227.39.02,2839.62,3309.32,3009.4
          Sep2,2848.22,2998.32,3508.02,3168.2
          Dec2,3248.02,3368.22,3857.82,3538.0
1989—Mar2,3908.02,4048.02,4467.72,4187.9
          Jun2,3794.72,4075.42,4555.42,4235.3
Average tax rates (percent)§
1986—Mar19.3 26.9 35.4 29.3 
          Jun20.3 27.4 36.8 30.2 
          Sep20.3 27.4 37.1 30.3 
          Dec13.7 20.9 29.6 23.6 
1987—Mar14.4 21.4 30.3 24.1 
Average tax rates above and below this line relate to different database samples and the series is therefore discontinuous at this point.
1987—Mar14.5 21.4 30.2 24.0 
          Jun14.6 21.6 30.7 24.3 
          Sep14.8 21.8 31.1 24.6 
          Dec15.1 22.0 31.4 24.9 
1988—Mar16.2 23.2 32.9 26.2 
          Jun16.6 23.6 33.4 26.7 
          Sep16.7 23.6 33.5 26.8 
          Dec16.4 22.5 27.4 23.8 
1989—Mar16.8 22.7 27.5 24.0 
Average tax rates above and below this line relate to different database samples and the series is therefore discontinuous at this point.
1989—Mar16.8 22.8 27.7 24.2 
          Jun16.7 22.8 27.7 24.2 

Wage indexes

Prevailing Weekly Wage Rates index. This index measures changes in ‘as paid’ wage and salary rates for full-time adult employees whose pay rates are at least nominally covered by an award or agreement registered with the Arbitration Commission.

The index is calculated using wage and salary data, obtained by a postal survey of a representative sample of employees, for the pay period in which the 15th of the middle month of the quarter. Pay rates surveyed may be at award or above-award levels, and any increases in these are measured at their payout dates and may anticipate, match, or follow final award/agreement settlement and registration.

Table 12.16. PREVAILING WEEKLY WAGE RATES INDEX* ALL (INDUSTRY OR OCCUPATION) GROUPS COMBINED

QuarterPrivate sectorLocal authority sectorGovernment sectorAll sectors combined
* Indexes measure changes in the level of prevailing (actual) rates of pay for full-time employees (those aged 20 years and over, working 30 or more hours per week). Base: December 1985 quarter (=1000).
Indexes
1987—Dec1228123912511237
1988—Mar1279127012721276
          Jun1296131713121303
          Sep1305134713431321
          Dec1303136313431324
1989—Mar1330137513461338
          Jun1346139613671356
          Sep1351141213811365
Percentage change from same quarter previous year
1987—Dec7.58.67.77.6
1988—Mar7.310.39.18.1
          Jun7.210.49.08.0
          Sep7.19.07.47.3
          Dec6.510.07.47.0
1989—Mar4.08.35.84.9
          Jun3.96.04.24.1
          Sep3.54.82.83.3

In addition to an index for all sectors, separate indexes are compiled for the private, local authority and central government sectors. Each of these sectors is further divided into specific industry and occupation groups. Industry groupings conform to the production groups of the New Zealand System of National Accounts, and the occupation groups to the New Zealand Standard Classification of Occupations.

Members of the armed forces, most managerial and professional employees in the private sector, and the more senior executive and professional staff in the local authority and central government sectors are excluded from the coverage of the index. Remuneration and conditions of employment for most of these groups are generally established on an individual employee basis and are not subject to the provisions of any award or agreement.

Over the last three years, significant changes have occurred in the labour market. These changes have particularly affected the central government sector, where the restructuring of departments, the introduction of state-owned enterprises and the privatisation of government businesses have occurred. To reflect the changes caused by these events, the representative sample of job descriptions and their index weights (or relative importance) for some government industries have been progressively revised.

A complete revision of the Prevailing Weekly Wage Rates Index was also carried out at the December 1988 quarter. This exercise included a review of the representative sample of job descriptions for which pay rates are surveyed. The index weights of each job description were also recalculated using the latest available statistical data from a variety of sources. As any other significant changes occur, these will be incorporated into the index.

This index is suitable for, and extensively used in, labour-cost escalation clauses.

Nominal Weekly Wage Rates Index. This companion series measures changes in legal minimum wage and salary rates, at their effective dates, for full-time adult employees whose minimum rates of pay are determined by awards and agreements registered with the Arbitration Commission (previously the Arbitration Court).

As a result of a review of this series there has been a change in format. Up to and including the September 1988 quarter, the Nominal Weekly Wage Rates index was published quarterly. The nature of this quarterly series meant that index numbers were revised to reflect award changes notified to the department that were effective in quarters prior to the current quarter.

All the information that applies to the September 1988 and prior quarters has been received by the department so the index numbers for these quarters are now final.

In future an annual series will be published which will replace the quarterly series. This new series will measure the movement in minimum rates of pay from one September quarter to the next. A revision will also be carried out. It will include a comprehensive review of the representative sample of job descriptions and their relative importance within the regimen of the indexes.

The index will be published for the five ‘all industries’ and ‘all occupation groups’ combined series currently available, and will have a new expression base of the September 1988 quarter (= 1000). The index numbers will not be revised after publication.

12.5 Labour relations

For nearly a century the rules underlying the fixing of wages and conditions of work in New Zealand have been embodied in legislation. The Industrial Conciliation and Arbitration Act of 1894 was the first such statutory machinery for labour relations. Its objectives were to minimise the incidence of strikes and develop a system for the negotiation of wages and working conditions for the majority of the work-force.

Subsequent legislation covering the private sector has tended to follow these objectives. However, until the State Sector Act 1988 separate legislation and pay-fixing procedures existed for the public sector.

Over the last three years the industrial relations systems of both the private and state sectors have been reformed. After a long period of consultation, the introduction of the Labour Relations Act 1987 reformed the provisions for the private sector when it repealed the Industrial Relations Act 1973 from August 1987. (The 1988–89 Yearbook provided a summary of changes to the law with the new Act).

The next major step in the process of reform was the enactment of the State Sector Act 1988, which brought the state sector into the same labour relations framework as the private sector (see section 3.3, State sector, and text below).

The Labour Relations Act 1987 has led to reforms in numerous industries, including automobile assembly, component manufacture, packaging, meat processing, pulp and paper, brewing, construction, white goods and the hospitality industries.

Following on from these reforms, the Minister of Finance announced in an economic statement of 20 March 1990, that the Government proposes to introduce legislation to:

  • Make structural reform (i.e., from occupation-based awards to industry or enterprise bargaining) a principal object of the Labour Relations Act;

  • Allow employers to initiate enterprise bargaining. (An employer would have the right to initiate a ballot of workers on the issue of enterprise bargaining. At present this right is limited to trade unions);

  • Require the Arbitration Commission to give priority to the registration of industry and enterprise documents;

  • Encourage a transition from general or occupational award-based bargaining to a more appropriate mix of industry and enterprise documents by providing protection for workers left behind in residual awards; and

  • Add ‘loading and unloading of ships’ to the Act's schedule of essential services.

The economic statement also changes expectations with regard to redundancy. It proposed that where the legal personality of an employer changes by virtue of the sale, transfer or lease of a business—but employee terms and conditions of employment remain the same—no liability for redundancy compensation will exist.

Institutional framework

The labour relations system operates within an institutional framework prescribed by the Labour Relations Act 1987. There are three major institutions which resolve issues if the parties to negotiations cannot agree. They are:

The Mediation Service. This service consists of 13 mediators located in the four main centres, and is headed by a chief mediator. The chief function of a mediator is to assist the parties in dispute to resolve differences. Mediators frequently chair conciliation councils and disputes and grievance committees. The service was established under the Labour Relations Act 1987 and began operating on 31 March 1988.

The Arbitration Commission. This body has a prime responsibility in wage fixing. The commission is empowered to register awards and agreements, to hear and determine unresolved disputes of interest referred to it for arbitration, and to help settle disputes of interest. The commission was set up under the Labour Relations Act 1987 and replaced the Arbitration Court.

The Labour Court. The Labour Court, has jurisdiction to hear and determine a wide variety of matters, including appeals, demarcation disputes, exemptions from awards and agreements, validity of awards and agreements, personal grievances, disputes over the Act. It can order compliance with the Act or awards or agreements. See also section 10.1, Legal System.

Unions and employer organisations

Union membership. All workers employed in a private-sector job must belong to the union covering that job if the award or agreement includes a union membership clause.

In the case of an award, a union membership clause may only be inserted by a ballot of the workers covered or to be covered by the award. For an agreement, unions and employers have the opportunity to decide on voluntary or compulsory union membership during negotiations. If they cannot agree the union may take a secret ballot of the workers covered by the agreement to determine the matter.

No worker has to belong to the union before applying for or starting a job, but all workers required to must join within 14 days of being asked. Employers may legally dismiss workers for not joining.

Union membership is voluntary for:

  • Apprentices, and is forbidden in some cases;

  • ‘Young workers’ (i.e., persons under 18 years of age) unless they are earning the adult rate; and

  • Those earning above a ‘salary bar’ (i.e., people who earn too much to be covered by the relevant award or agreement).

Provision exists for exemption from compulsory union membership on the ground of proven conscientious objection. Application for exemption to the Union Membership Exemption Tribunal costs $112.50 (incl. GST). If exemption is granted, it is valid for life unless revoked by the tribunal.

Profile of workers' unions. Of the more than 1.2 million wage and salary earners at the 1986 census, approximately 40 percent belonged to unions.

Since the Labour Relations Act came into force on 1 August 1987, the main priority has been to ensure the ongoing compliance by unions with the legislation, with an emphasis on enforcing rule where unions must have 1000 members to achieve registration. In addition, state unions are being integrated into the registration process. At 31 March 1989, 55 private sector unions and 15 state unions had less than 1000 members, and of these unions 52 were protected by reason of an amalgamation application.

Table 12.17. PROFILE OF WORKERS' UNIONS

 Unionsunion associations*State unionsTotals
 number
As at 1 April 19882081931258
Newly registered55
Less cancellations—
     voluntary10414
     by amalgamation6060
     other77
31 March 19891361531182
Union membership
Year ended 31 March Less than 100 100–500 500–1000 Over 1000Total

* Any body representing at least two unions.

Source: Department of Labour.

 no.percentno.percentno.percentno.percentno.
19885426.74019.82813.8 39.5202
19892615.62615.61810.89758.167

Unions in the private sector are primarily based on an occupational rather than an industry basis. Some unions cover occupations which extend across a large number of industries (e.g., clerical workers, drivers), whereas others are industry-specific (e.g., meat workers, seamen). The structure has evolved in an ad hoc way, in that groups which were first to ‘stake their claim’ at the registrar's office ‘took home the prize’. The occupational orientation of unions is reflected in the structure of negotiations, with the result that a particular employer can be covered by a multitude of awards and agreements.

On average, public sector organisations are larger than their private sector counterparts. Several of these (e.g., the Post Office Union and the Public Service Association) have virtually industry coverage, though others cover specific occupational classes within the state sector (e.g., police, nurses, teachers).

Registration of unions. The registration process was considerably simplified by the Labour Relations Act 1987. Essentially, any group of persons is free to associate for the purpose of seeking registration as a worker union. There is no longer a requirement that the group be engaged in the same industry or in related industries. Whether a community of interest exists is to be determined largely by the workers themselves.

The new minimum size requirement of 1000 members is applied in the following way. In the case of a union registered at the commencement date of the Act, where its membership fell below 1000 it had a year to take remedial action before its registration was cancelled. In the case of an application for registration where the workers concerned have not previously been organised by an existing union, it may not be possible to immediately satisfy the main precondition. For this reason, provisional registration is available for two years to allow the new union time to recruit up to 1000 members. Where this is granted, the new union is unable to lose (actual or potential) members to, nor be able to gain members from, another union. Otherwise, provisional registration carries the same rights and obligations as full registration. The requirements for union amalgamations have also been liberalised. This has allowed unions with fewer than the required minimum of 1000 members to amalgamate to meet the new requirement.

Although registration is voluntary, in practice the vast majority of unions register because the benefits associated with registration outweigh the limitations imposed by it. The main benefits of registration are summarised below.

  • Both exclusive coverage of the workers belonging to it and exclusive rights to negotiate on behalf of those workers are assured. A union's coverage is reinforced by access to procedures for securing a union membership clause in the awards and agreements it negotiates with employers.

  • There is access to conciliation procedures for the negotiation of an award—to which employers are required to be a party. This, together with the definition of its coverage, reinforces the union's right to negotiate. However, it is not inevitable that an award will be made, as this is a matter for negotiation in conciliation proceedings.

  • There is an ability to negotiate an award which fixes minimum wages and conditions of employment across an entire industry, i.e., it binds every worker and every employer in the industry to which it relates, including any employer or worker who enters the industry subsequent to the award being made. A single award can thus apply in thousands of workplaces.

  • There is access to procedures for peacefully resolving disputes over the negotiation of awards and agreements (interest disputes) and over the treatment of individual workers (personal grievances). The procedures are supported by the Mediation Service, the Arbitration Commission and the Labour Court.

  • The awards and collective agreements negotiated by the union are enforceable under the Act, and continue to have legal effect beyond their expiry.

Cancellation of registration. A union's registration may be cancelled for other reasons than failure to meet the minimum size requirement. Cancellation will occur if the members vote to voluntarily cancel their union's registration; if a union becomes defunct; if it fails to furnish an annual return of officers and its membership; or if it fails to furnish its annual accounts and audit certificate.

Change in union coverage. Under the Labour Relations Act, registration provides a union with the sole right to represent a particular category of workers, but this right is not granted in perpetuity. The Act enables union coverage to be changed by ballots of workers affected.

There are two balloting stages. First, the union extending its coverage must ballot its own members to seek their agreement. Second, following membership approval, a ballot is conducted by the Registrar of Unions of those workers affected by the transfer of coverage. A simple majority in favour of the change of coverage is required and if it is achieved the Registrar of Unions registers the altered coverage, and adjusts the coverage of the existing union(s) where there would otherwise be a clash of coverage.

Union fees. Government has set a maximum joining fee for union membership at 10 percent of the last annual subscription, but there is no limit to what unions may charge as annual fees. Annual subscriptions are normally set in terms of a union's rules in a variety of ways. Either the amount is:

  1. Actually included in the rules;

  2. Set in terms of a formula (usually based on a percentage of a representative award rate of wages);

  3. Set by the union's executive; or

  4. Set by majority decision of the membership.

Central organisations of workers. Both private sector unions and public sector service organisations are represented by one union organisation, called the New Zealand Council of Trade Unions (NZCTU). This council represents and co-ordinates the interests and activities of private and public sector workers. It is the organisation which nominates representatives for all tripartite forums.

Employer organisations.Private sector—Many employers belong to one or more of the 202 registered employer organisations (as at 31 March 1989), most of which are represented at the national level by the New Zealand Employers' Federation. This organisation represents and co-ordinates the interests of employers in the private sector. As it represents most employers, it is the organisation which nominates representatives for all tripartite forums.

Public sector— With the introduction of the State Sector Act 1988 the chief executive officers of departments and other organisations are the employing authorities. No recognised committee or organisation currently exists to represent their interests. The State Services Commission does play a role as the chief negotiating party in consultation with chief executive officers.

Registration of employer organisations. The Labour Relations Act 1987 provides for the registration of employer organisations. Compared to worker unions, the consequences of registration are vastly different. In particular, an employer organisation does not have the sole right to represent employers in the negotiation of wages and conditions of employment, nor does it have access to procedures for securing compulsory membership.

Work stoppages

Labour relations legislation in New Zealand restricts the freedom to strike or lock out in several ways. This is in an attempt to minimise industrial action and its effect on industry and on the availability of goods and services. Industrial action is only lawful when a strike or lockout arises during a dispute of interest (i.e., a dispute over the procuring of an award or agreement).

In those instances where legislation provides a resolution procedure for disputes, strikes and lockouts are unlawful.

Industrial action is unlawful when a dispute concerns:

  • A dispute of rights (i.e., a dispute over the operation, application or interpretation of an award or agreement);

  • A personal grievance;

  • Demarcation issues;

  • Union membership or change of union coverage; or

  • Cancellation of a union's registration.

A strike or lockout in an essential service is unlawful where the statutory period of notice is not given. (Essential services are defined and listed in a schedule to the Labour Relations Act 1987.)

Statutory penalties are not imposed in the event of unlawful industrial action. The primary remedy is through a civil action for an injunction, or damages, or both. The Labour Court has sole jurisdiction to hear civil actions in respect of unlawful strikes and lockouts. Also, where normal procedures fail, or are likely to fail, to avert a strike or lockout, the Minister of Labour has power to call a conference of the parties involved or to appoint a committee of inquiry. Special powers are also given to the minister for resolving disputes in industries providing essential services.

For statistical purposes, work stoppages are defined not only as those disputes which result in a strike or lockout but also as disputes in which an organised ‘go slow’, refusal to work overtime, or methods of possible resistance are clearly manifested. This includes unauthorised stopwork meetings as well as unauthorised delays in resuming work after stopwork meetings.

The indicators used to measure work stoppage activity are the number of stoppages (measuring frequency), the duration of stoppages (measuring persistence), the number of workers involved (measuring extent), the number of working days lost (measuring economic impact) and the estimated loss in wages. Instances where several stoppages occur over the same issue are recorded as one stoppage. From January 1988 coverage of the stoppage statistics has been extended to include the public sector, including state-owned enterprises, as well as the private sector.

Table 12.18. INDUSTRIAL DISTRIBUTION OF WORK STOPPAGES, 1988 P

IndustryTotal stoppagesWorkers involvedWorking days lostAverage days lost per person involvedEstimated loss in wages

* Total of industrial groupings with three or less work stoppages.

† Any stoppage which involved workers in more than one industrial grouping has been counted once in each respective industry but as a single stoppage in the total of all industries.

 $      
Meat export works1410,569132,87812.5711 538 445
Other slaughtering, preserving of meat52,1181,4090.67121,642
Dairy products, food canning oils and fats.51,8346610.3651,820
Textiles, wearing apparel83,44317,7495.161 398 549
Paper, paper products, printing and publishing135,66623,1574.092 326 802
Chemicals, petroleum and coal products91,0549,0068.54764,581
Non-metallic mineral products41009529.5269,824
Metal products96,64214,2732.151 385 586
Transport equipment684514,90017.63995,145
Electricity, gas and water44,2556,7321.58542,907
Building94,57933,3487.282 328 815
Construction other than buildings51,70635,70620.933 875 189
Wholesale trade49043,4603.83259,106
Retail trade54353,1057.14254,606
Restaurants, hotels41741,75510.09137,900
Land transport71,5302,5491.67199,244
Water transport318,89610,5351.18891,905
Air transport42003201.6036,967
Community, social and personal services2535,84628,7250.802 493 498
Other*2211,38636,1013.172 638 056
Total, all industries163102 182377 3193.6932 310 587

Pay fixing

Pay fixing in both the private and public sectors can be viewed in terms of the following elements:

  • The statutory minimum wage, as established under the Minimum Wage Act 1983.

  • Minimum wages established by awards and agreements made under the Labour Relations Act 1987 which either:

    1. establish minimum wages and conditions for various jobs on a national (or district) basis through awards; or

    2. establish minimum wages and conditions for various jobs at the level of the individual enterprise through agreements (including composite agreements).

  • Paid rates established for particular jobs at the level of the individual enterprise by way of informal house agreements.

  • Arrangements reached between individual workers and their employers (mainly in small- to medium-sized enterprises).

Every year workers, unions and employers have the opportunity to renegotiate the wages and conditions in their specific industry or occupation, although negotiations need not occur annually, if the terms of awards and agreements are not for a year. This process is known as the ‘wage round’.

Before each wage round, the Tripartite Wage Conference is held to allow representatives from government, private and public sector unions and employers to meet and exchange information on the economy and government policies that will affect the forthcoming wage round. All three parties must be present.

Discussion is based on past trends and likely developments in the distribution of incomes, inflation, the competitiveness of New Zealand industry, government's fiscal and monetary policy and the minimum wage and government transfers.

Wage rounds in recent years show a high degree of uniformity in wage increases between the various awards. The common pattern is for the wage round to effectively be set up by a handful of key awards which are negotiated early (e.g., drivers, metal trades, electrical workers), reducing the scope for different settlements in those which follow. In the negotiations for the awards that follow, the pressure is often centred on some payment which is unique to the particular award and over which there is some negotiating leeway. Two factors which determine the level of settlement in the early key awards are: the increase in consumer prices immediately prior to the round, and the ability of employers to absorb wage increases.

Early settlements are usually transferred to other awards through a series of tight linkages, based on historical relativity. These linkages became particularly entrenched during a period of wage restraint in the 1970s when all wage increases had to be justified on relativity grounds. However, the changes brought in by the Labour Relations Act 1987 are designed to make such settlements more relevant to the industry or workplace to which they will apply.

Negotiations for an award can be initiated by either party to it, although this is usually the union. The decision of a conciliation council is binding on all parties to the award or agreement. If a settlement is not obtained by negotiations, it can be referred to the Arbitration Commission if both parties agree. The results of negotiations reached through either conciliation or arbitration are registered by the Arbitration Commission as an award and are enforceable on both parties.

Agreements— The Labour Relations Act 1987 lays down a procedure for negotiating and registering agreements These agreements may cover an individual employing unit (or a group of units in a particular locality) and the workers engaged in a particular occupation. They are enforceable in the same way as awards, but are binding only on the signatories to the agreement.

The Labour Relations Act introduced quite different arrangements for the negotiation of agreements to those that existed under the Industrial Relations Act 1973.

Workers must now be covered by only one document, either an award or an agreement, but not by both. At the time of initiation of negotiations for an award, a union must, if it wishes to negotiate separate agreements as well, specify the names of employers with whom it wishes to negotiate separately. Such employers and their workers are then exempted from award coverage. If the parties reach an agreement it may be registered with the Arbitration Commission and become enforceable. If the parties fail to settle any issue, they may agree to that issue being determined by the commission.

Under the Labour Relations Act 1987, agreements in existence were registered under the earlier Industrial Relations Act. The ensuing wage round then determined which agreements would continue in force outside their respective parent award, and which agreements would be abandoned by the parties.

New matters— The Act provides procedures for the treatment of what are known as ‘new matters’. A new matter is any that significantly affects the terms and conditions of workers which:

  1. Has arisen as a result of action of an employer since the date on which the award or agreement was settled;

  2. Is not dealt with in the award or agreement, or is dealt with only in the most general terms;

  3. Is not a dispute over the operation or interpretation of the award or agreement (i.e., a dispute of rights); and

  4. Does not relate to redundancy.

A union or employer party may consider during the term of an award or agreement that the existing document does not deal adequately with a new matter and that the parties should negotiate during the currency of the existing document.

The union or employer party concerned may apply to the Labour Court to determine whether a new matter exists. If the court so determines, then the matter may be resolved either under the procedures for the negotiation of an award or an agreement.

Composite agreements—An agreement between one or more employers in any undertaking (or group of undertakings) and a number of unions or associations representing the workers engaged within the undertaking (or group of undertakings) is known as a composite agreement. Such documents are entirely voluntary and can rationalise bargaining, by reducing the number of separate agreements. Once registered, composite agreements are enforceable under the Act.

The Act also provides for the negotiation and registration of composite awards, which are registered by the Arbitration Commission. Composite awards are between two or more unions or associations and two or more employers or employers' organisations.

Working conditions

While working conditions are often set in awards and agreements, certain other conditions are determined by statute. In some cases statutes set minimum standards which must be incorporated in awards and agreements.

Equal pay and employment equity. The Equal Pay Act 1972 requires that all workers doing the same or similar work must be paid the same. All instruments fixing pay levels therefore must not discriminate on the basis of sex, and wage rates in private sector awards and collective agreements apply to both men and women.

Although equal pay has existed for more than 15 years (longer in the public sector), the average ordinary-time hourly earnings for women has stabilised at approximately 80 percent of that for men. The average weekly wage as at August 1989 was $494 for men, compared with $375 for women. This is partly due to women being predominantly employed in a narrow range of lower-paid occupations.

In December 1989 the Government introduced the Employment Equity Bill into Parliament. It was the culmination of two formal equal pay studies and numerous other papers and reports on aspects of discrimination within the labour market, and more recently, the findings of a working party on equal employment and equal pay, which reported to the Government in November 1989.

The proposed legislation aims to promote equal employment opportunities by requiring employers to set up equal employment opportunities programmes with a view to eliminate inequality of opportunity for designated groups. It also aims to redress the inequitable effects on women of any current or historical discrimination in their rates of pay.

The requirements for equal employment opportunity programmes will be based on those currently in existence in the State Sector Act 1988 and will be phased in over three years. The provisions will apply to all state employers and initially to those private sector employers employing more than 500 staff. It is intended that over time that size limit will reduce.

The legislation will also introduce pay equity to address the gender bias which leads to the undervaluing of female dominated occupations.

An Employment Equity Office will be established to set minimum standards for equal opportunity programmes to be met by employers covered by the legislation. It will work with employers to establish equal opportunities programmes which meet those standards, undertake educational programmes and research on equal employment opportunity programmes, and ensure compliance with the legislation. The office will also be responsible for pay equity assessments through research programmes developed in consultation with unions and employers.

The proposed pay equity system will mean that a union or employer (or group of 20 or more women where there is no union or the union will not act) will be able to apply to the employment equity office for an assessment of any occupation to determine the extent to which there is gender bias evident in rates of pay. The assessment will be determined with reference to at least two male occupations, at least one of which will be from within the same or similar enterprises and at least one of which must be of broadly similar skill and experience level. The office will be required to take into account different market forces in the comparisons.

The office will assess the range of rates necessary to redress the bias and note any regional differences in existence.

Union or employers' organisations will also be able to negotiate a pay equity claim in the normal round of negotiations. If the parties do not agree on the claim it will be referred to the Arbitration Commission, which will determine the level of adjustment necessary to achieve pay equity after considering the evidence presented to it, including the report of the Employment Equity Office. The commission will also decide on a timetable for implementing pay equity, taking into account ability to pay and the impact on the economy.

Pay equity payments will initially be in a separate supplementary payments schedule attached to the award. At the end of the implementation period the supplementary payments will be fully incorporated into the award.

At the time of going to press a select committee of Parliament was considering the proposed legislation and submissions on it.

Minimum wage. The Minimum Wage Act 1983 authorises the determination of the national adult minimum wage and establishes the floor below which wages for workers cannot generally fall. It applies to workers 20 years and older and mainly protects the non-unionised sector, which is relatively small and encompasses such groups as private domestic workers and gardeners. Earlier practice was to fix it at a level slightly below that determined by the unionised sector for an unskilled adult, having regard also to the level of the unemployment benefit.

From 15 May 1989 the minimum wage rate for all adult workers (male or female) has been set at $5.875 an hour if paid by hour or on piecework; $47 a day if paid by the day; and the minimum wage is $235 a week in other cases.

Hours of work. The general rule is that hours of work are negotiated in every award or agreement, and do not exceed 40 hours per week. Exemptions are:

  1. The parties to the award or agreement agree; or

  2. The Arbitration Commission determines it would be impracticable to carry on efficiently if limited to 40 hours per week.

Public and annual holidays. All workers must receive nine statutory holidays, spread throughout the year. Two additional statutory holidays may be given if a normal working day occurs when these holidays are celebrated. All workers must receive pay for these holidays.

The following fixed public holidays are observed: Christmas Day (25 December), Boxing Day (26 December), New Year's Day (1 January), 2 January (or a day in lieu), New Zealand Day (6 February) and Anzac Day (25 April). Movable national public holidays are shown below.

Table 12.19. MOVABLE NATIONAL PUBLIC HOLIDAYS

Holiday198919901991199219931994
* The Queen's actual due of birth is 21 April 1926.
Good Friday24 March13 April29 March17 April9 April1 April
Easter Monday27 March16 April1 April20 April12 April4 April
Queen's Birthday*5 June4 June3 June1 June7 June6 June
Labour Day23 October22 October28 October26 October25 October24 October

Provincial anniversaries, or a day in lieu, are observed locally. The anniversary days are: Northland (29 January), Auckland (29 January), Taranaki (31 March), Hawkes Bay (1 November), Wellington (22 January), Marlborough (1 November). Nelson (1 February), Canterbury (16 December), Westland (1 December), Otago and Southland (23 March), and the Chatham Islands (30 November). When the anniversary falls on Friday, Saturday or Sunday it is observed next Monday, if on the other days it is observed the Monday before. The holiday may be taken on another day, such as a local show day, as in Taranaki where it is taken on the second Monday in March to avoid Easter.

All workers must also receive at least three weeks (15 working days) paid annual leave each year. This leave is not usually available to a new employee until one year's continuous service with the same employer has been completed. Shift workers often qualify for an extra week's leave. One week's extra annual leave is often allowed each year to those workers with between five and ten years completed service.

If an employee finishes up before completing a full year's service, he or she is entitled to 6 percent of their total gross wages for the period worked. This is holiday pay in lieu of paid annual leave.

Parental leave. The Parental Leave and Employment Protection Act 1987 allows parents to take parental leave within 12 months of a birth or the adoption of a child under five years.

The Act replaced the Maternity Leave and Employment Protection Act 1980 and extended its provisions in several key areas:

For the parent(s) of a new child who have worked for their employer(s) for at least ten hours a week for the 12 months before confinement or adoption there are now three forms of unpaid parental leave available:

Maternity leave—A woman is entitled to up to 14 weeks maternity leave, of which up to six weeks may be taken before the birth or, if agreed by the employer, a period before the adoption of a child under five years.

Paternity leave—A man is entitled to two weeks paternity leave from the time of childbirth by his spouse or the adoption of the child.

Extended leave— One or both parents are entitled to a total of up to 12 months leave before the first birthday or anniversary of adoption of the new child. The entitlement may be shared between both parents, although any period taken as maternity leave is deducted from the total available. Paternity leave does not affect entitlement to other parental leave.

The 1987 Act duplicates most of the provisions of the Maternity Leave and Employment Protection Act 1980 with respect to re-employment rights, complaints procedures and termination of employment.

At the end of a period of extended parental leave, employees may return to their positions provided their employers have been able to keep them open. Alternatively, they are entitled during the six months following parental leave to preference over other applicants for any positions which are vacant in the employer's enterprise and which are substantially similar to the position they held at the beginning of the parental leave. The Act also provides that it is unlawful to terminate the employment of a woman because of her pregnancy or her state of health during the pregnancy. There are complaint procedures for parents to use where they believe that any of the provisions of the Act have been contravened or their rights to parental leave have been affected to their disadvantage by an employer.

Termination of employment. The minimum number of days' notice required to be given to a worker is usually contained in the award or agreement. This can vary from award to award, but is generally one pay period (typically one week). If a worker does not receive adequate notice, or considers their dismissal unjustified, then he or she may have a case for a ‘personal grievance’ (see below).

Redundancy. There is no statutory entitlement to redundancy compensation for workers who have been made redundant. It is up to workers themselves or a union to negotiate a settlement with the employer concerned as each situation arises. Where settlements are reached, the payment usually takes the form of a number of weeks' pay for each year of service with that employer. The Labour Relations Bill before Parliament (April 1990) will, if passed, change the procedure where redundancy occurs. The implications are described earlier in this section under ‘review of labour relations legislation’.

There is now no limit on the amount of redundancy compensation that may be paid or received, nor on who is entitled to compensation. Any redundancy agreement registered by the Arbitration Commission may be enforced under the Act.

Rights disputes and personal grievances. Disputes arising during the currency of awards and collective agreements over the individual or collective ‘rights’ of workers are termed ‘disputes of rights’. The Labour Relations Act requires awards and collective agreements to contain effective machinery for the resolution of rights and personal grievances without stoppage of work. The Act provides standard procedures which are inserted in all awards and agreements unless the parties to them can improve upon the standard procedures to the satisfaction of the Arbitration Commission.

The procedure for resolution of disputes of rights is based on the principle that the making of an award or the registering of an agreement establishes ‘rights’, the interpretation or application of which can be the subject of dispute between the parties.

The elements of the procedure are as follows:

  1. Once a dispute arises, either party may invoke the procedure and cause a disputes committee to be set up, chaired by a neutral third party ‘(almost invariably a mediator);

  2. A decision can be made by a majority of the committee or, failing that, the chairperson can either arbitrate or refer the dispute to the Labour Court for arbitration. Thus, compulsory arbitration is provided in the case of unsettled disputes. (A disputes committee decision can also be appealed to the Labour Court.);

  3. Work is to continue uninterrupted while the dispute is being dealt with by the procedure. Strikes or lockouts over matters within the jurisdiction of the disputes committee are unlawful.

A right of recourse is provided under the Labour Relations Act 1987 to individuals who may have a grievance against their employer based on a claim that a dismissal (or other action) is unjustifiable. This now includes other unjustifiable or detrimental actions, such as sexual harassment, duress and discrimination.

All awards and agreements must contain an effective procedure for the settlement of personal grievances. Access to a personal grievance procedure is now a benefit of union membership (except in certain limited circumstances) and it is not, however, dependent on coverage by an award or agreement. The application of the procedure for setting personal grievances is not able to be frustrated by deliberate lack of co-operation on the part of anyone (e.g., a work stoppage).

The procedure is based on the following:

  1. The decision to invoke the procedure, in the first instance, rests with the worker, (b) The grievance should be, wherever possible, rapidly resolved in the workplace without formality;

  2. The decision whether or not to refer the dispute to a grievance committee, if still unresolved, rests with the union; and

  3. Usually the grievance committee seeks a negotiated settlement, with arbitration as a last resort. The chairperson will attempt to steer the committee to an agreement. If there is no agreement the parties to the dispute can agree to let the chairperson make a decision, or the matter can be referred to the Labour Court for final resolution.

The primary remedy for a proven grievance is, where requested, reinstatement in a position no less advantageous to the worker. The remedy for a personal grievance is, however, determined by the circumstances of each case. It may also include payment of loss of wages and compensation. Also the remedy may include recommendations concerning future action (e.g., a system of warnings or a suitable disciplinary procedure prior to any future dismissal).

The personal grievance procedure is an alternative to. and not in addition to, any right to make a complaint under the Human Rights Commission Act 1977 or the Race Relations Act 1971 on the grounds of alleged discrimination.

Contributors

  • 12.1 Department of Statistics; Department of Labour.

  • 12.2 Department of Statistics.

  • 12.3 Ministry of Education; Department of Labour; Education and Training Support Agency; Department of Internal Affairs; Ministry of Commerce.

  • 12.4 Department of Statistics.

  • 12.5 Department of Labour; Department of Statistics.

Historical

Department of Statistics.

Further information

Employment and incomes

Census of Population and Dwellings 1986; Reports C4 and C5. Labour Force. Department of Statistics.

Census of Population and Dwellings 1986; Report C9, Incomes and Social Welfare Payments. Department of Statistics.

Job Vacancy Survey. Department of Labour (six-monthly).

New Zealand Management Information on System (Employment Operation Statistics); formerly Monthly Employment Operations. Department of Labour.

New Zealand Household expenditure and Income Survey. Department of Statistics (annual).

New Zealand Labour Force. Department of Statistics (quarterly).

New Zealand Standard Classification of Occupations. Department of Statistics, 1987.

New Zealand Standard Industrial Classification. Department of Statistics, 1987.

Profiles of New Zealanders: The Labour Force. Series E, Report 2. Census of Population and Dwellings 1986. Department of Statistics.

Report of the Department of Labour (Parl. paper G. 1).

Report of the inland Revenue Department (Parl, paper B. 23).

Report of the Vocational Training Council. (Parl, paper G. 36), until 1989.

Towards Employment Equity: Report of the Working Group on Equal Employment Opportunities and Equal Pay, 1988.

Equal Pay Study Phase 1 Report; Equal Pay Study Phase 2 Report, The Equal Pay Steering Committee, Department of Labour, 1987.

Labour relations

Industrial Relations—A Framework for Review (2 vols.) and Summary of Submissions. Department of Labour, 1986.

A Guide to the Labour Relations Act. Department of Labour, 1987.

Pay Fixing in the State Sector A Review of Principles and Procedures in the Fixing of Pay and Associated Conditions in the New Zealand State Sector—October 1986.

Hon. Stan Rodger, Minister of State Services.

Chapter 13. Science and technology

13.1 A history of science in New Zealand

The early Polynesian colonists of New Zealand quickly developed a working knowledge of their new environment, adapting tropical crops to the temperate climate, evolving a practical architecture and discovering new herbal remedies. However, systematic investigation and classification of the natural world—the basis of formal science—was left to adventurous professional scientists and to the talented amateurs who followed in their wake.

Voyages of discovery

At a time when descriptive science had reached a pinnacle of precision it was natural that New Zealand, the last of the world's temperate regions to be discovered by Europeans, should attract the keen interest of botanists, zoologists and geologists. In fact James Cook's 1769 Pacific voyage, which culminated in the first circumnavigation of New Zealand, itself had a scientific origin—the observation of the transit of Venus from Tahiti.

Accompanying Cook on the Endeavour were botanists Joseph Banks and Daniel Solander. Their field notes, together with the 360 plant species they collected in New-Zealand, were the beginnings of what was to become a comprehensive stocktake of the country. Cook made two further voyages, accompanied in 1773 by the German naturalists Johann and George Forster—who studied the botany of Dusky Sound, and in 1777 by natural historian William Anderson.

Other voyagers followed, adding reports on phenomena as diverse as the volcanically active White Island and the bones of giant flightless birds. Charles Darwin called briefly at the Bay of Islands aboard the Beagle in 1835, on the expedition that was to culminate 24 years later in his On the Origin of Species. Although finding little worth commenting on locally, his visit stimulated the scientific pursuits of missionary explorer William Colenso and, like many such meetings between enthusiastic resident and distinguished visitor, led to a fruitful correspondence.

In 1841 two ships, Erebus and Terror, part of an Antarctic expedition promoted by the British Association for the Advancement of Science, brought to southern waters the botanists David Lyall and Joseph Hooker. The vessels visited the Auckland and Campbell Islands as well as the Bay of Islands, and the expedition's findings were published in Flora Novae Zealandiae (1853 and 1855) and Handbook of (he New Zealand Flora (1864). From England Hooker continued a vigorous correspondence with Colenso, whom he had met, and with other resident naturalists, encouraging them to collect specimens and record their observations.

At about the same time a French corvette L'Aube, carrying the botanist Etienne Raoul as surgeon, arrived in Akaroa. Raoul spent three years at Banks Peninsula and the Bay of Islands classifying plants and adding to what became a remarkably comprehensive early record of the country's flora.

The province of professionals

As colonisation gathered momentum—and with it the demand for land and raw materials—pressure mounted for local administrators to more accurately determine the nature of the country's physical resources. Surveyors were directed into the remote interior and systematic geological studies were undertaken. Professional scientists began to be engaged on a long-term basis, with their research directed towards specific commercial goals,

The first of these was Ernst Dieffenbach, a German naturalist employed by the New Zealand Company on the 1838 Tory expedition. His task was to file reports relating to ‘navigation, geography, geology, botany, and zoology, and the traditions, customs and character of the natives’.

In many ways Dieffenbach embodied the best qualities of the many talented scientists contributing to the fledgling colony. Meticulous and versatile, and with a fine sensitivity towards Maori culture, he completed a study of the Maori race which was influential in making the emergent discipline of ethnology respectable in Europe.

In the service of the company he displayed extraordinary stamina and resourcefulness, and a prescience which still impresses: ‘What a chain of alterations, in the distribution and number of animated beings, takes place from the introduction by man of a single animal in a country where it was before unknown!’ he wrote, echoing the ecological instincts of Colenso and of the Maori.

Dieffenbach became the first European to make an alpine ascent, scaling Mt Egmont, Taranaki and, characteristically, determining its height by measuring the boiling point of water at its summit, heated using twigs carried in a handkerchief for the purpose. Following extensive journeys through the North Island he returned to England, publishing in 1843 his Travels in New Zealand, the first general scientific account of the country.

An early geologist, and one whose career was to have a far reaching impact on antipodean science, was Ferdinand von Hochstetter. Arriving on the Austrian expedition ship Novara in 1858, he was asked to undertake a survey of the Auckland province's coalfields. On the strength of his report, the New Zealand Government secured his services for detailed investigations into the geology, physical geography and natural history of the country. For nine months, often in the company of Julius von Haast and Charles Heaphy, Hochstetter explored much of the North Island and the upper South Island as far south as Lake Rotoiti. His detailed fieldwork established the foundations of New Zealand geography and helped break the pattern of collecting and systematising, which was beginning to straitjacket resident naturalists.

With the value of such work clearly demonstrated, steps were taken by the other provinces to build on Auckland's example and appoint provincial geologists. Haast, formerly Hochstetter's assistant, became provincial geologist in Canterbury (1861–68), then founder director of the Canterbury Museum (1870–87). He also lectured at Canterbury University College, later taking its first chair in geology.

James Hector, another outstanding scientist, was appointed provincial geologist in Otago in 1862, being joined later by the future colonial analyst, William Skey. Hector was succeeded in 1873 by the third of the country's most eminent contributors to nineteenth century geology and biology, Frederick Hutton. Later Hutton served as professor of geology at Otago (1877) and Canterbury (1880), becoming curator of the Canterbury Museum in 1893. He had wide-ranging interests, but his real achievement lay in the systematic descriptions of fossil and living shells and other animals summarised in his Index Faunae Novae Zealandiae.

If Hochstetter's example opened up opportunities for talented individuals, it also fostered an independent scientific outlook. But by the mid-1860s it was clear that the perennial obstacles of isolation and overwork, the absence of reference collections, and the limited opportunities for publication, could only be overcome through the establishment of a formal institutional base.

The era of consolidation

A small number of well-educated men and women with a Victorian inquisitiveness about the natural world provided the thin bedrock of support needed to sustain the colony's early scientific organisations. Their role was to remain crucial until late in the century when the demands of an agricultural economy changed the face of research.

Institutional growth. In 1865 the Geological Survey was established in Wellington, with James Hector as its first director. Hector, who had arrived in 1862, first examined Otago's goldfields and explored Fiordland. He then distinguished himself before his appointment gathering natural history material throughout the colony for the New Zealand Industrial Exhibition. He proved an able administrator, and his responsibilities from that year included the Colonial Museum and the Colonial Laboratory. Soon afterwards, in 1868, meteorological observations were also placed under his control. Hector held the post for 38 years, and together with his colleague Haast pushed geology into the limelight, perhaps at the expense of other disciplines. But then, in the popular imagination geology meant gold, and struggling colonists equated gold with progress.

In the provinces, scientific life largely revolved around the museums and their gifted curators. Auckland's museum, now the Auckland Institute and Museum, opened in 1852 and achieved a high profile as a result of the botanical achievements of its curator, Thomas Cheeseman. Canterbury's museum developed under the guiding hand of Haast, and in Otago Hector's Industrial Exhibition collection formed the nucleus of a museum which, from 1877, became closely associated with the University of Otago. Its first three curators, Hutton, Parker and Benham, were all elected Fellows of the Royal Society—reinforcing the country's standing in the world-wide scientific community.

Foundation of the societies. Internationally the growth of institutions has generally been accompanied by the emergence of scientific societies, which come to serve both as a forum for debate and as a vehicle for the spread of information. New Zealand is no exception.

Inspired by Australia's Tasmanian Society, local equivalents began tentatively to appear, not in the rough-and-ready Bay of Islands (a favoured haunt of visiting naturalists), but in the planned southern settlements. The first of these, the Literary and Scientific Institute of Nelson, was formed by enthusiastic immigrants in 1841 while their ship, Whitby, was still at sea, and before the name ‘Nelson’ had even appeared on maps. In 1842 the building of a library and reading room began, and across Cook Strait the Wellington Horticultural and Botanical Society held its inaugural meeting the same year.

Mechanics institutes—talismans of worker education in the physical sciences—were soon established in provincial centres, offering ready access to libraries stocked with works on natural history. Although not generally considered ‘learned societies’ as such, and sometimes struggling financially, their influence in helping communicate scientific knowledge to a wider audience was considerable.

The founding of the New Zealand Institute in 1868 was a landmark development, offering for the first time a national organisation within which the scattered societies could effectively function, and holding out the promise of regular scientific publication. The institute owed its existence in part to the interest of Sir George Grey who had, while Governor of Cape Colony, been instrumental in bringing Hochstetter to Auckland and later in founding, along with Walter Mantell, the short-lived New Zealand Society in 1861.

Hector, already Director of the Colonial Museum and Geological Survey, was appointed manager and editor of the institute at its inception, a position he held for 35 years. A major responsibility was the publishing of the institute's Transactions and Proceedings—undoubtedly the single greatest record of the country's scientific endeavour. Despite a full public life, which included a period as Chancellor of the University of New Zealand, Hector continued to be actively involved in biological research (which he termed his ‘sideshows’), producing papers on fish, whales, moas and other birds. His major geological contributions include Outline of New Zealand Geology (1896), and research on glaciation and fossil reptiles. In 1933 the Institute became the Royal Society of New Zealand and, with government support, continues to play an important part in the scientific life of the country. Its members represent the country in such international forums as the International Council of Scientific Unions and the Pacific Science Association, a nominating body for the Nobel Peace Prize.

The New Zealand Association of Scientists was established in 1941 to further the interests of scientists and to promote science and scientific method. It publishes the New Zealand Science Review, and the Directory of New Zealand Science, which lists the many smaller bodies serving professionals in bacteriology, dairy science, ecology, genetics, astronomy, soil science, and other disciplines.

In addition, there is a growing number of private or privately-funded research organisations and activities. The foremost of these is the Nelson-based Cawthron Institute, established in 1920 with a bequest from Thomas Cawthron. Initially focusing on fungal disease, insect pests and agricultural chemicals, the institute's work has greatly benefited New Zealand's primary sector and it has built up a considerable reputation in soil science and plant nutrition. Now partly funded by government, its major activity is in the field of microbiology.

Medical research is carried out in the two medical schools, and the associated clinical schools, as well as in facilities established by private trusts, or by the Medical Research Council. Research is carried out into a variety of medical problems. One success story is the development of ‘Amsacrine’ by the Cancer Society's laboratory in Auckland, which represents a significant breakthrough in chemotherapy for leukaemia.

The universities. Like the scientific societies, New Zealand's universities developed initially in the more populous and affluent southern settlements, firstly in Otago (1869) and then Canterbury (1873). Auckland followed in 1882 and Victoria (Wellington) in 1897, although until 1961 all four functioned as colleges of the University of New Zealand (see inset, section 9.3).

Before 1950 the universities were poorly staffed and ill equipped for research. However, dedicated staff, with research students taking masters degrees, made a small but valuable contribution, predominantly in basic research.

After this time, with the introduction of doctorates in New Zealand, the devolution of the separate universities, the growth in student numbers, which resulted in expanding academic staff, and the construction and equipping of new science buildings at all the universities, they became much more active in research.

In 1961 a research grants committee was established by the new University Grants Committee to fund requests for equipment, and over the 1960s and 1970s the universities became creditably equipped for research. However, there remained no means of funding specific research projects, and in particular, the funding of personnel remained difficult, with the few PhD study awards made to the individual students on the basis of their academic performance. There was, however, limited support for non-teaching research personnel, such as the post-doctoral fellowships widely available overseas. In spite of these handicaps, New Zealand universities participated creditably in the international scientific arena, mainly in basic science, but with valuable contributions in applied sciences, particularly from the more agriculturally oriented Massey University and Lincoln College (now a university).

Science at work

By the first decades of the twentieth century the time had come to build on the groundwork of the scientific pioneers. It was clear that agriculture and, to a lesser extent, forestry would be the mainstay of the future economy, and both desperately needed the fruits of applied research. Farmers running out of new land to break in looked to science to increase their yields and, along with orchardists and foresters, they sought relief from the ravages of introduced animals and insects.

Easily accessible resources had given the country an enviable standard of living, but it was apparent that maintaining that standard would come to rely on the development of less readily available resources. In a technological age that meant investment in scientific research.

As the century wore on new grasses were developed and insect pests and plant diseases overcome, hydro-electricity was augmented by geothermal power and indigenous heartwood timbers were replaced by plantation-grown exotic softwoods.

As society has increased in complexity and world markets have become more competitive, scientific research has grown in importance, helping the country adjust to massive economic and social shifts such as those caused by British entry into the European Economic Community, the energy crisis of the 1970s, and more recently economic deregulation and the spread of microchip technology.

Government initiatives. The founding of the Geological Survey marked the beginning of government's role in the evolution of science. From that time new institutions and varying forms of administration developed, though with little emphasis on systematic research. The first tentative move in that direction came in 1913 when the Board of Science and Art was established, primarily to print scientific papers.

Modern governmental science, however, dates from the Heath report of 1926, which led to the founding that year of the Department of Scientific and Industrial Research (DSIR). Destined to become the largest scientific organisation in the country, its function was to co-ordinate and apply scientific research beneficial to the primary and secondary industries. Its nucleus consisted of the Dominion Laboratory and Dominion Museum, the Observatory, Meteorological Service, Geological Survey, and the Stone Testing and Geological Advisory Service.

Over the years the DSIR has expanded to embrace new disciplines such as biotechnology, environmental science and information technology, its structure evolving into the present four groups: biological industries, industrial, resources, and corporate operations. Through out its history, the DSIR has provided scientific services to other government departments including those responsible for justice, forestry, health, transport and works.

The Department of Agriculture, created in 1892, devoted much of its initial energy to adapting overseas research to meet local needs, but from the 1930s its own research activities grew rapidly. Today (as the Ministry of Agriculture and Fisheries) it and the DSIR collectively account for 70 percent of government's spending on science. Headquarters of the ministry's research division is at the Ruakura Agricultural Research Centre, which took on its present role in 1963.

A National Research Advisory Council was established in 1964 to advise government on a national policy for scientific research relevant to the country's economic development.

Assessing priorities for research has become increasingly necessary given the limited funds available, and as technology infiltrates every aspect of society.

Fine-tuning the land. Perhaps not surprisingly, the most consistently applied scientific research, and the most spectacularly successful, has been that directed towards the primary industries. The growth of entomology before the turn of the century soon eclipsed specimen collecting in importance and led to the eventual control of such pests as white butterfly and codlin moth. Pesticides were used against the grass grub, ryegrass stem weevil and other destructive insects, although growing awareness of water pollution, insect resistance, and the demands of foreign markets soon saw the emergence of a more sophisticated approach. Ironically, this included biological control using parasites and insect hormones, avenues first investigated by Paeroa entomologist Alan Wright in the 1870s.

With the realisation that grassland farmers were, in fact, harvesting a crop, more attention was paid to improving its performance, both by growing new strains and by technological developments like aerial topdressing which, after World War II, was instrumental in maintaining the fertility of New Zealand's hill country.

New pasture plants developed by the Department of Scientific and Industrial Research's grasslands and crop research division and by the Ministry of Agriculture, in tandem with advances in pasture management, saw New Zealand leading the world in grassland farming. A soil survey of the entire country was completed in the 1960s and mineral deficiency diseases such as ‘dopiness’ and ‘bush sickness’, which denied profitable use of the central plateau's pumice lands, were diagnosed and remedied.

Plant diseases, including ball smut in cereals and dry rot of cabbages, turnips and other brassicas were brought under control, and more recently work has been done on nitrogen fixation using clovers to overcome the environmental effects of fertiliser nitrogen.

The need to protect exports by adding value to existing primary products and developing new ones has meant an increased emphasis on process crops like potatoes for canning and tomato and pea varieties suitable for mechanical harvesting. Research has also concentrated on safeguarding the quality of horticultural and marine products during transport to market, and in improving their attractiveness to consumers. DSIR scientists, for example, recently worked on smoked mussels and on ‘Ergo’, an orange/egg drink made overseas under licence. A mark of the importance of this field was the creation, in 1980, of a new DSIR division, horticulture and processing.

In 1947 the Forest Research Institute was established in Rotorua to undertake forest and forest-product research for the Forest Service (now Ministry of Forestry). Its early work, particularly on native timbers and timber preservation, has expanded with the industry. The institute incorporates four divisions involved in such diverse work as harvest planning, nursery technology, timber engineering, and soil protection.

Closely associated with the DSIR are several independent organisations undertaking agricultural research: The Wool Industries' Research Institute, concerned with wool manufacture; the Fertiliser Manufacturers' Research Association; the Wool Research Organisation, which concentrates on its physical, chemical and biological properties; the Meat Research Institute, and the Dairy Research Institute.

Industrial research. Industry itself has channelled increasing funds into research as different types of manufacturing have become established. This has been both for its own needs and, together with individuals, for philanthropic purposes. But from the beginning it was obvious that private and state enterprises would rely heavily on government-assisted research. To be effective, such research has concentrated on two areas; projects of national significance, like the evaluation of iron ore deposits, and projects likely to be useful to a number of end-users.

Though still not as extensive as in agricultural research, the DSIR's involvement in industry has, over the years, provided a framework within which the country has developed both industry and public amenities. Activities have steadily broadened to include mineral exploration and development, building research, the application of mathematical techniques to industrial problems, and robotics.

In the early 1980s the Oceanographic Institute completed mapping the country's ocean floor and analysing sediments on the continental shelf—an indispensable preliminary to the siting of undersea oil and gas pipelines and power cables. As part of its work, the institute also assessed the commercial value of marine minerals like manganese nodules.

The energy crisis of the early 1970s brought to prominence the importance in a modern industrial society of a broad research base. DSIR divisions worked towards minimising economic disruption by testing alternative fuels including methanol, synthetic petrol, and biomass conversion, and studying the feasibility of local CNG conversion kits and cylinders.

The distinction between science and technology has always been contentious, though the application of scientific techniques to engineering has undoubtedly been crucial to New Zealand.

Computer modelling of earthquake stresses on building structures by the Dominion Physical Laboratory in 1960, for example, broke new ground in engineering studies. And work by geologists, geophysicists, and chemists on geothermal power in Kawerau resulted in direct use of steam in the pulp and paper industry.

Another function of the DSIR is technology transfer—the communication of research findings through workshops, seminars and printed papers. In this it has been helped by the work of research associations, supported by both government and specific industry sectors. Begun soon after World War II, they were an initiative of the Manufacturers' Research Committee, itself formed in 1944. Several are associated with industry, ranging from the New Zealand Leather and Shoe Research Association, the Concrete Research Association, and the New Zealand Pottery and Ceramics Research Association to the Heavy Engineering Research Association, established in 1978.

The social dimension. Science and technology cannot be isolated from the social and political environment in which they have developed. As New Zealand culture is transformed by industrialisation and urbanisation, scientific effort is increasingly directed towards measuring and answering social needs.

Among the most recent of disciplines, the social sciences have swollen to include psychology, human geography, sociology, social anthropology, economics and political science. They now permeate society, contributing, for example, to education, social policy, social administration and criminology.

Social research is undertaken chiefly by universities, government departments, commercial research firms, voluntary agencies, and independent, grant-aided units such as the New Zealand Council for Educational Research, founded in 1945, and the New Zealand Institute for Economic Research, which has operated since 1958.

From its beginnings then, as an instrument for measuring boundaries and content, scientific research in New Zealand has evolved with nationhood, to the point where it is synonymous with the smooth operating of a complex modern society.

13.2 Organisation of science

Recent reforms

As the preceding brief history of science in New Zealand indicates, local researchers, scientists and technologists have much to celebrate as they reflect on their last 150 years of scientific effort. However, while 1990 has provided an opportunity for reflection on past achievements it is also a year of tumultuous change for New Zealand's scientific community. During 1990 the new agencies and funding mechanisms announced by the Government in April 1989 commenced their operations.

These new agencies are;

  • A Ministry of Research, Science and Technology, primarily concerned with advising the minister;

  • A Foundation for Research, Science and Technology primarily concerned with allocating state funds to science providers on a contestable basis; and

  • An ad hoc Cabinet committee of science ministers which will assess national priorities in scientific and technological investment and recommend budgets accordingly.

The new approach to the funding and delivery of state sector research, science and technology has three principal objectives. Firstly, it aims to separate science policy advice from both the delivery of operational science and funding. Previously, state departments which conducted scientific research and services were also responsible for policy on scientific matters, a situation which inherently involved tangled objectives and unclear lines of accountability. The new structures will enhance the accountability to Parliament of research agencies which receive public funds, while also building on their existing strengths.

Secondly, the new policy aims to focus New Zealand's research efforts in as cost-effective way as possible, thereby encouraging economic growth. Accordingly, the policy recognises the link between the amount and quality of research and development conducted, and economic vitality.

Thirdly, the policy aims to improve the quality of the Government's decision-making on scientific and technological matters by establishing contestable streams of advice from the new foundation and ministry; and by creating the ad hoc Cabinet committee, which includes all ministers whose departments engage in significant scientific activity.

The adoption of these three objectives—increased accountability, enhanced economic growth, and improved decision-making—reflects the advice tendered to the Government over the past five years. That advice emanated from the three main sources described below.

Science and Technology for Development Conference. In May 1985 the Government convened a high-level conference at Parliament to make recommendations on the role of science and technology in economic development.

Key conclusions of the conference included:

  • Science and technology are essential to national economic development, and must be better used by New Zealand industries to create both jobs and wealth.

  • To make best use of science and technology there must be co-operation between education and research organisations; management and unions; and the public and private sectors

  • National structures must be reorganised to ensure mechanisms exist to transfer and apply technology, and to provide for the formulation of a co-ordinated science and technology policy.

Ministerial Working Party on Science and Technology. In July 1986 the Government established a working party under the chairmanship of former Governor-General Sir David Beattie to investigate, among other things, the best mechanism for formulating a national science and technology policy; how to optimise the Government's investment in science and technology; and how to enhance the accountability to Parliament of organisations receiving public funds to undertake scientific and technological research.

In a wide-ranging report, the Beattie working party recommended the establishment of a portfolio of Minister for Science and Technology—separate from that of any minister with departmental responsibilities in science—and a Cabinet sub-committee chaired by the minister. It also proposed an independent science and technology advisory body, and a process by which up to 10 percent of research funds currently allocated to government departments and universities would be available for competitive bidding.

Science and Technology Advisory Committee. Shortly after its receipt of the Beattie Report, the Government established the Science and Technology Advisory Committee (STAC), to provide independent advice on how best to implement the report's recommendations. This committee consulted widely and, late in 1988, published a comprehensive report entitled Science and Technology Review: A New Deal.

Key recommendations of the report included the establishment of:

  • A small Ministry of Science and Technology to separate policy development from operational responsibility for research;

  • An independent advisory body on science and technology; and

  • A mechanism for allocating research funds on the basis of competitive bidding.

New structures

On the basis of the above series of recommendations, the Government has established the following two new agencies and an ad hoc Cabinet committee of science ministers:

Ministry of Research, Science and Technology. The new ministry is primarily responsible for tendering advice on national science and technology policy to the minister. It will do so free of the operational pressures that exist in departments responsible for undertaking scientific research. Other specific tasks the ministry will undertake include:

  • Developing a framework for government-funded science and technology which is geared to results and is consistent with the Government's budgeting and financial management procedures;

  • Identifying national priorities for research and appropriate levels of funding to achieve the broad objectives determined by the Cabinet ad hoc committee on research, science and technology;

  • Advising on the appropriate level of government investment in research, science and technology, and identifying where there are gaps or overlaps in national scientific investment;

  • Advising on the merits of proposals put forward by departmental science and research providers, on the basis of output priorities and sectoral funding guidelines established by the Government;

  • Arranging science audit and opportunity reviews, and publishing the results; and Recent figures for freehold open-market sales of farmland are shown in table 14.6. Family sales are excluded, as are leasehold sales and sales for uses other than primary production.

  • Facilitating and promoting public awareness of science, science education, retraining for new technological skills in the workplace, and industrial innovation, in the interests of social and economic growth.

Foundation for Research, Science and Technology. The new foundation will administer a contestable pool of research funds which will be subject to bids from Crown agencies which contribute to the fund, research associations, private companies and individuals. These researchers and research agencies will bid to the foundation to win contracts to undertake agreed research programmes. Accordingly, the fund will be used to support a range of researchers from different agencies to work on problems which transcend institutional boundaries. One desired result is improved co-operation between the public and private sectors.

The foundation will purchase the outputs of broad programmes rather than becoming involved in either the management of scientific projects or funding an individual institution's entire research effort.

In 1991, 20 percent of government spending on research—estimated at $50 million—will be administered by the foundation as a contestable research pool. Each year the proportion of government funding for research transferred to the foundation will increase by 10 percent until by 1993 half of the research vote (approximately $125 million in 1989 dollars) will be administered by the foundation.

To trial the new system, the Government voted $5 million in additional research funds to form the initial capital of a Contestable Fund for Priority Science. In 1990 this money was allocated according to priorities established by the Cabinet policy committee. The priorities chosen were:

  • Technologies which will promote the growth of industries;

  • Climate change; and

  • Antarctic science and logistics.

In addition to administering the contestable pool of research funds, the foundation will also be responsible for two smaller funds. The Co-operative Research Fund is designed to foster co-operation among scientific organisations by sponsoring research which involves joint effort between two or more separate institutions; while the Industrial Innovation Fund will encourage research on the basis of proposals received from research associations and the wider community.

The foundation will also provide advice to the minister and to the ad hoc Cabinet committee concerning the broad scientific priorities it considers worthy of government financial support.

Committee of science ministers. This new Cabinet committee will be chaired by the Minister of Research, Science and Technology, who will be responsible for the new ministry but not for any department which conducts operational science or research. It will consist of ministers whose departments maintain significant research programmes, namely those in charge of the Ministry of Commerce; the Department of Conservation; the DSIR; the Ministry of Education; the Ministry of Forestry; the Department of Health; the Ministry of Agriculture and Fisheries; and the Department of Statistics.

The committee will assess national strategic priorities in scientific and technological investment on the basis of policy advice tendered by both the ministry and the foundation, and will recommend appropriate budgets to the Cabinet Economic Development and Employment Committee.

Department of Scientific and Industrial Research

The Department of Scientific and Industrial Research (DSIR) exists to initiate and implement scientific and industrial research to benefit New Zealand.

The department is split into four major groups, the Biological Industries Group, the Resources Group, the Industrial Group, and the Corporate Operations Group. The latter group does not conduct research and has an administrative function.

The work of the three science groups encompasses 20 separate activities involving approximately 100 programmes, each of which generate many specialist projects.

Recent research activities of the Biological Industries Group include programmes in plant breeding and productivity; biological science; food science and technology; and biotechnology.

The Resources Group conducts programmes in the fields of ecological science; marine and freshwater science; soil resources and fertility; earth and atmospheric science; and energy resources and utilisation.

The Industrial Group conducts research programmes in the fields of applied and industrial chemistry; information and communication technology; forensic science; social science; electronics and electrical science; mechanical engineering and production technology; physical and mathematical science; and health and environmental science.

The 1988–89 Yearbook contained a more detailed description of the Department of Scientific and Industrial Research's activities in specific areas.

The DSIR is also responsible for funding a number of other research bodies, although recently the funding of science has been reorganised (see above). Table 13.1 outlines the extent of this funding.

Table 13.1. DSIR GRANTS TO RESEARCH INSTITUTIONS, 1988–89*

InstitutionAmount

* Excludes university contracts.

† All payments except those to overseas institutions include GST.

Source: DSIR.

$(000)
Research associations—
     Building Research Association1049
     Coal Research Association492
     Concrete Research Association267
     Dairy Research Institute1778
     Heavy Engineering Research Association337
     Leather and Shoe Research Association301
     Logging Industry Research Association313
     Meat Industry Research Institute1803
     Research Institute Textile Services95
     Wool Research Organisation1874
     New buildings for research associations592
Overseas institutions—
     Commonwealth agricultural bureaux246
     Others186
New Zealand institutions—
     Carter Observatory390
     Cawthron Institute569
     Royal Society of New Zealand409
     Testing Laboratory Registration Council108
     Central Laboratories1419
     Science and Technology Advisory Committee300
     US/NZ Agreement for Scientific and Technical Co-operation50
               Total11986

Ministry of Agriculture and Fisheries research

Almost all agricultural research within the Ministry of Agriculture and Fisheries is carried out by the research and consultancy business group, MAF Technology. Fisheries research is conducted by the MAF Fisheries business group.

Further information about the role of the ministry is contained in section 15.1.

Agricultural research. This is carried out by the MAF Technology business group at locations throughout the country. The goal of agricultural research is to help New Zealand's meat, fibre, dairy, arable and horticultural industries to identify and realise their export potential and increase the sustainable returns from farming. Increasing attention is being given to programmes related to harvesting, processing, and the marketing of products.

Major areas of agricultural research undertaken by MAF Technology include animal production and health; soil and plant nutrition; pasture and crop development; horticulture; and energy issues affecting the agricultural sector. Research programmes in these areas were described in more detail in the 1988–89 Yearbook.

Other current studies in agricultural research by the Ministry of Agriculture and Fisheries include: aquatic weed control; beekeeping; forest farming; greenhouse design and construction; fencing; the development of agricultural and horticultural equipment; and the relevant application of electronics and robotics. The ministry is also involved in developing new products, production systems, means of harvesting, transport and marketing methods, and agricultural equipment. There is an increased emphasis on research on sustainable ‘organic’ systems of agriculture and horticulture which minimise environmental damage.

Fisheries research. MAF Fisheries has two national research centres. One, based at Greta Point in Wellington concentrates on marine fisheries research, while the other based in Christchurch specialises in freshwater fisheries research. The work of these national research centres is supported by regional fisheries research teams.

The major objective of the marine research section is to provide adequate information for reliable fish stock assessments. Research information needs to be continually updated to detect and adjust for changes in fish populations and to set accurate allowable catches under the quota management system (see section 16.3, Fisheries).

Recent research effort has concentrated on improving information on the major deepwater species, especially orange roughy and hoki. Research methods used include trawl surveys, acoustic estimates of biomass, catch sampling programmes and age validation techniques.

MAF Fisheries also provides research and developing consultancy services to meet the growing interest in aquaculture of species such as salmon, mussels and paua.

Ministry of Forestry research

The Ministry of Forestry undertakes and co-ordinates its forestry and forest products research through the Forest Research Institute, which has three divisions in Rotorua and a fourth in Christchurch. The Christchurch division is primarily concerned with environmental and protection forestry and other wildland research. The institute is the dominant research organisation for the forest industries.

An advisory committee oversees the management of the institute and provides advice in the light of international trends in forestry and forest products markets. In 1989–90 approximately 65 percent of the institute's funding was provided by government and 35 percent earnt from the private sector, other government departments, local bodies and overseas organisations.

The institute's work programme focuses on improving forest growing, harvesting and processing technologies, and improving wildland management techniques. About 60 percent of the work is concerned with radiata pine.

In 1989–90 the institute carried out more than 20 overseas research or consultancy projects in more than 15 countries, including Nepal, China, Indonesia, Fiji, Western Samoa, Iran, United States, Malaysia, Canada, Somalia, United Kingdom and West Germany.

Other organisations contributing to research

There are five main areas in which social science research is carried out in New Zealand: universities; research units in government departments and in some local government authorities; independent social research units which receive government funds, e.g., the New Zealand Council for Educational Research and the New Zealand Institute for Economic Research (Inc.); commercial market research firms, private research consultancies and research or analysis units within private enterprises: and voluntary agencies.

There are ten industry research associations funded jointly by government and the industries they serve, and these were listed in table 13.1 (above).

The Works and Development Services Corporation now operates the Gracefield laboratory of the former Ministry of Works and Development.

New Zealand Institute of Economic Research. The New Zealand Institute of Economic Research was founded in 1958, following a recommendation from the 1956 Royal Commission on Money, Banking, and Credit Systems. It is an independent, non profit-making body with the primary objective of conducting research into economic problems affecting New Zealand. It is administered by a trust board consisting of ten trustees elected by the subscribing members to the institute and five ex officio trustees including the Governor of the Reserve Bank, two university representatives and the director. The institute is funded from membership subscriptions (mainly from the corporate sector), contracts and consultancy, and from grant income.

The institute is the largest group of economists in New Zealand outside the public service and the universities. Its research programme focuses on the economy in the short and medium term, economic growth, industry, energy and household economics. In addition it provides consulting and contract services.

The institute produces a variety of publications, including regular journals, research papers, discussion papers and working papers, and it contributes to the publications of other organisations.

Cawthron Institute. The only major endowed research organisation in New Zealand is the Cawthron Institute at Nelson, which was established in 1920 with a bequest of £250 000 under the will of Thomas Cawthron. As the value of the investment of the bequest has declined the institute has received increasing income from technical services earnings, and from a government grant.

The organisation of medical research is described in section 8.3, Public health.

13.3 Technology services

Patents, trade marks and designs

The Patents Act 1953, the Trade Marks Act 1953, and the Designs Act 1953 are administered by the New Zealand Patent Office, a division of the Ministry of Commerce. The main function of the Patent Office is to examine patent, trade mark, and design applications to ensure that only those which comply with the requirements of the relevant Act are granted (in the case of patents) or registered (in the case of trade marks and designs).

Patents are granted for a maximum period of 16 years, provided that the appropriate renewal fees are paid at three-yearly intervals. Trade marks may be kept on the register indefinitely as long as renewal fees are paid after an initial period of seven years, and every 14 years thereafter. Registration of designs is for an initial period of five years, with provision for two more five-year periods (giving a maximum of 15 years).

New Zealand is a party to the International Convention for the Protection of Industrial Property (the Paris Convention). Under this convention, each member state provides the same protection to the inventions, trade marks, and registered designs of the nationals of other member states as it accords to those of its own nationals.

Details of patent, trade mark, and design applications and registrations are published in the monthly New Zealand Patent Office Journal. The total number of applications for the granting of letters patent, and for the registration of designs and trade marks during the financial year 1988–89 was 17 647, an increase of 5387 over the previous year.

The Patent Office library contains a comprehensive collection of patent specifications from a number of countries, including New Zealand, the United States, Great Britain, Australia, and the European Patent Office. A detailed list is available on request, and the office maintains a mail order service.

Table 13.2. APPLICATIONS FOR PATENTS AND REGISTRATION OF TRADE MARKS AND DESIGNS

Year ended MarchPatentsTrade marksDesigns
19853,9325,731722
19864,0056,612648
19874,1836,529740
19884,2897,285686
19894,45512,562630
Source: Ministry of Commerce.

Patents. The 4455 applications received in 1988–89 originated in the following countries: New Zealand 810; United States 1539; United Kingdom 485; Australia 379; West Germany 255; Switzerland 180; France 163; Japan 157; Netherlands 112; Canada 67; Italy 60; Sweden 41; Denmark 34; South Africa 21; Belgium 19; Finland 19; Norway 17; and the balance of 97 from 18 other countries.

The technical content fell into the following categories: chemistry 2250; mechanical engineering 1026; home science 444; electrical engineering 327; building technology 241; and primary industries 167.

During the 1988–89 year 3082 applications proceeded to acceptance after search and examination, and letters patent were sealed on 3021 applications, increases of 32.3 percent and 45.7 percent respectively. Thirty-eight grants of patent were opposed and eight applications for extension of term were filed. Twenty-three opposition proceedings reached finality and five extension of term applications were resolved.

Trade marks. The 12 562 applications for registration in 1988–89 originated in the following countries: New Zealand 5362; United States 2475; Australia 1578; United Kingdom 895; Japan 349; Switzerland 274; West Germany 272; France 268: Italy 177; Netherlands 163; Canada 135; Sweden 87; Hong Kong 76; Singapore 51; Denmark 46; Spain 33; East Germany 32; Finland 29; China 26; Taiwan 25; Korea 24; Austria 17; Norway 17; and the remaining 151 from other countries.

During the year, 4153 applications were accepted, 2651 went to registration, and 3258 were renewed.

The large increase in trade mark applications is due to the allowance, from 1 May 1988, of marks for services as well as goods.

Designs. A total of 876 industrial designs were registered during 1988–89.

Telarc

Telarc is a user-funded statutory body responsible for ensuring technical standards are met in New Zealand's industrial, technical, commercial, regulatory, health care and administrative sectors.

A Testing Laboratory Registration Council was originally established by act of Parliament in 1972, to promote good practice in testing laboratories and provide for their registration.

From 1 January 1989 the role of the council was extended by the amendment of its enabling legislation. The council and the staff employed by it, which is now known as Telarc, also assumed responsibility for the promotion of good quality assurance practices and the maintenance of a scheme for the registration of suppliers. The council also assumed responsibility for promoting the appreciation, development, improvement and use of industrial design in New Zealand. The latter function had previously been carried out by the New Zealand Industrial Design Council, which was dissolved from 1 January 1989, with all assets and liabilities passing to Telarc.

Telarc works through consultancy, advisory and accreditation services in product design and development, quality management and the testing of products and materials with the major accrediting agencies of the United Kingdom, Australia, United States, Western Europe and the Far East.

Telarc carries five ‘marks of excellence’ which laboratories, companies and products accredited by Telarc are authorised to use. These are listed below:

Registered supplier. This mark indicates that the companies to which it is awarded have implemented quality management systems complying with national and international standards, and this has been confirmed through assessment by Telarc.

Q-Base. This programme is similar to the registered supplier programme, but it is aimed at small businesses.

Registered laboratory. This is intended to provide laboratory users with an assurance of accurate, reliable testing. It indicates that the laboratory has achieved international standards of laboratory practice.

Quality Mark. This is a mark of excellence awarded to products or services from Telarc registered suppliers. The supplier must have an accredited quality system and the product or service meet quality standards.

Designmark. This is a symbol of excellence in industrial design. It is awarded on the basis of assessment by industrial design specialists, on the basis of a product's aesthetic, functional and engineering design. Both Designmark and Quality Mark symbols are shown on products, packaging, advertising and point of sale material.

Standards Council

The Standards Act 1988 established a restructured Standards Council as the body responsible for administering the national standards system.

Operating under a charter from the council, the Standards Association of New Zealand works to improve efficiency and stimulate development in industry and commerce by providing standards documents. These also help to promote public and industrial welfare, health, and safety. The association administers the New Zealand Standard certification mark and quality assured supplier schemes, which encourage improved quality control in industry, and therefore in consumer goods.

It also provides a Technical Help to Exporters' service which supplies assistance to manufacturers whose products need to comply with the standards and regulations of overseas markets. On 1 April 1987 SANZ became the New Zealand enquiry point for the GATT code on Technical Barriers to Trade, thereby providing additional assistance to exporters.

The council regards international standardisation as an important factor in facilitating trade. The association is the New Zealand member of the International Organisation for Standardisation, the International Electrotechnical Commission, and the Pacific Area Standards Congress.

The Standards Association's library holds full sets of New Zealand standards, international standards, and the national standards of the United Kingdom, Australia, United States, Germany and many other countries. Copies of all standards, from whatever source, can be obtained from the association's sales service.

The Standards Association's information service provides comprehensive technical information on New Zealand, overseas and international standards. The association publishes new and revised New Zealand standards and amendments. Details of these and of other national and international standards activities are given in a monthly publication, Standards. A catalogue, published annually, lists all the standards in use in New Zealand.

The association depends on the subscriptions of members and on sales of standards for the greater portion of its income. Sales of publications exceeded $1.3 million in the 1988–89 year. Subscribing membership of the association totalled 1498 at 31 March 1989, while 53 companies and government agencies had voluntarily increased their subscriptions to levels qualifying for recognition as sustaining members.

Contributors

  • 13.1 Royal Society of New Zealand.

  • 13.2 Royal Society of New Zealand; Ministry of Research, Science and Technology; Department of Scientific and Industrial Research; Ministry of Agriculture and Fisheries; Ministry of Forestry; New Zealand Institute of Economic Research.

  • 13.3 Ministry of Commerce; Telarc New Zealand; Standards Association of New Zealand.

Historical

Department of Statistics; Standards Association of New Zealand.

Further information

Agrisearch. MAFTech, Ministry of Agriculture and Fisheries, (quarterly).

Forest Research Institute, Annual Report.

Patent Office Journal. New Zealand Patent Office (monthly).

Report of the Department of Scientific and Industrial Research (Parl. paper G. 21).

Report of the Ministry of Agriculture and Fisheries (Parl. paper C. 5).

Report of the Ministry of Forestry (Parl. paper C. 16).

Science and Technology Review: A New Deal. Science and Technology Advisory Committee, 1988.

Standards. Standards Association of New Zealand (monthly).

Chapter 14. Land and environment

14.1 Land resources and ownership

Surveying, mapping and land information

The Department of Survey and Land Information is the principal government civil and military survey mapping and land information agency. It has a statutory responsibility to provide the cadastral and geodetic framework, and associated systems to support secure land tenure and property rights in New Zealand. The major functions of the department include the maintenance and extension of the survey; control system; examination of all land title surveys; development of the digital cadastral database; co-ordination of government aerial photography requirements; the publication of topographical, cadastral and special maps; the production of cadastral data in digital and paper formats; and investigations into the status of Crown land and Maori land.

Surveying. The survey control system, in the form of trigonometrical and other geographically located stations, provides the basis for effective integration of surveys executed by all sectors for land title definition, land development and utilisation, engineering and construction, communications, mapping production, scientific studies, and the location of marine and air navigation aids. Examination and approval by the department of all land title surveys ensures the security of tenure essential to development, and the maintenance of all survey records on a microfilm system provides for ready access and utilisation of data. The control of survey standards, maintenance of discipline, and training of professional surveyors is effected through the Survey Board of New Zealand, which is chaired by the Surveyor General. The Department of Survey and Land Information also completes surveys for land title, land development, survey control navigational purposes, earth deformation studies, administration of justice, land and environmental planning, draughting services related to local government administration, census, electoral activities, and mining applications. Computerisation of cadastral land records, as the base of a national land information system, is well advanced in all land districts.

Practising surveyors in the private sector also play a major role in surveys of private lands under the Land Transfer Act 1952, the planning and development of housing projects, and the execution, under contract, of some government surveys.

Aerial photography. Extensive use is made of aerial photography for photogrammetric mapping and in the annual provision of basic physical resource and planning data. A computer system to capture, edit and manipulate data from aerial photography was installed in June 1988. Photography is undertaken by private aerial survey firms under contract to the Department of Survey and Land Information, which maintains a comprehensive library of air photos for all national purposes and general public usage. The department now receives and holds multispectral imagery collected by earth-resources satellites for use in studies associated with land use and management, regional planning, and scientific research.

Mapping. Both maps using imperial measures, and the basic metric topographical and cadastral maps now under production provide a reliable inventory of physical resources and an up-to-date identification of land parcels and legal situations. They are in constant demand for planning, construction, development of land, extension of public and social services, protection of the environment, the general use and guidance of the public, administration of central and local government, and defence. Regularly updated street maps cover all significant urban areas. The Department of Survey and Land Information produces and publishes a wide range of other maps for various purposes including recreation, national parks, and miscellaneous and general maps of New Zealand, the Pacific, and Antarctica. As the government mapping agency, the department produces maps needed to service the activities of other departments, particularly aeronautical charts for military and civil use, and meteorological maps and charts. Topographic and orthophoto mapping produced by photogrammetric methods for projects and special purposes is completed at larger scales to provide a base for investigation and design of energy, irrigation, forestry, and communications projects.

Maps are sold at the Department of Survey and Land Information, Heaphy House, Wellington, and at each district office. Bulk map supplies and a world reference library of maps are held at the Infomap Centre, Upper Hutt. In addition, a large number of retail agents have been appointed in New Zealand and overseas. All maps for sale are listed in the New Zealand Map Collection, a catalogue published by the department. Maps for the New Zealand land inventory are being produced, with first priority being given to areas where land-use change can be anticipated. These maps are produced from authoritative data and are published to uniform standards and presentation. They show the physical and cultural data about land, and overlays can be prepared to assess physical suitability for different land uses.

Registration of land ownership

All property rights in New Zealand are derived from the Crown and title to land in private ownership is a matter of public record. The creation of new rights and the preservation of existing rights in land is the function of the Land and Deeds Division of the Department of Justice, as is the keeping of title records.

Almost all privately-owned land in New Zealand is held under the land transfer system, presently embodied in the Land Transfer Act 1952. The principal features of the system are title by registration and guarantee of that title by the state.

Under the land transfer system, land and interests in land do not pass by the execution of an instrument of transfer but by the registration of that instrument. A person acquires a legal interest in land not by entering into an agreement to purchase the land, but by registering the instrument of transfer and by being recorded on the register as the owner. The certificate of title is the pivot on which the whole land transfer system turns. A certificate of title is issued under the hand and seal of the District Land Registrar (of which there are eight nationally, responsible for 12 district registries), which guarantees to the registered proprietor of the land described in that certificate his or her rights of use, occupation, and enjoyment, the extent and position of his or her boundaries, and the nature of any encumbrances or interests affecting his or her land, such as mortgages or rights of way. Two copies of the certificate of title are issued; one copy forms the land transfer register, and the duplicate is held by the owner. This duplicate must be presented to the land registry office for noting whenever documents affecting the estate for which it was issued are submitted for registration. Any change in the registered proprietorship which occurs through transfer, death, or other devolution, and the encumbrances to which the land is subject may be entered on the register by the registration of the appropriate documents.

Interests in, and charges against, land arising from many statutes other than the Land Transfer Act may be noted against the land transfer register. Successive governments have charged the Land and Deeds Division with duties of surveillance under the laws relating to the subdivision and aggregation of land, overseas ownership of land, disposition of public reserves, anti-slumming requirements of local authorities, and many other aspects of land use and occupation. Certain leases and licences of Crown land may be registered under the provisions of the Land Transfer Act, and Maori land when vested in any person for a freehold estate comes automatically under the land transfer system.

Table 14.1. LAND TRANSFER DOCUMENTS PROCESSED

Year ended 31 MarchCertificates of title issuedPlans depositedInstruments received
198542,29211,801783,029
198644,81814,749827,965
198744,66015,544898,046
198851,47916,251916,203
198946,83216,208995,658
Source: Department of Justice.

Control of land acquisition. Safeguards have been made for long-term planning in the use of land, whether publicly- or privately-owned, in order to ensure that it and its resources are used to the best advantage of the community as a whole. Legislation prevents, where there is an operative regional plan or district scheme, the acquisition by overseas interests of land of 4000 square metres or over designated or zoned as reserves for recreation or other purposes, and all islands or parts of islands within 150 kilometres of the mainland, and the Chatham Islands.

The legislation covers rural land and farmland of 2 hectares or over. Here a purchase may be approved if specified conditions, ensuring beneficial use of the land from a national viewpoint, or permanent future residence, are met. The Administrative Division of the High Court may approve a purchase where the purchaser or lessee is a person ordinarily resident in New Zealand. Where the purchaser or lessee is not a person ordinarily resident in New Zealand or is an overseas company, the court will not give consent unless it is satisfied that the land is not required for any reserve purpose and that the land is not an island or forms part of the Chatham Islands. In the case of farmland, the court must be assured that the purchaser or lessee intends to conduct experimental or research work on the land which will benefit agricultural industries in New Zealand or the community generally. If the land will be used for other than agriculture it must be demonstrated as being of greater advantage to the community. In the case of an individual wishing to farm, he or she must show that they intend to reside permanently in New Zealand and farm the land exclusively for their own use and benefit and have the ability and means to do this.

These conditions are set out in the Land Settlement Promotion and Land Acquisition Act 1952, which authorises the Minister of Lands to take, in certain circumstances, any farmland that is suitable for settlement, and is, or when subdivided and developed will be, capable of substantially increased production. A second part of the Act deals with the control of sales and also leases (for three years or more) of farmland to prevent undue aggregation. The consent of the court is required unless the purchaser or lessee owns no farmland, has no interest in any estate or trust owning farmland, has not since the passing of the Act transferred any farmland to any person as trustee or created any trust in respect of farmland, and has entered into the transaction solely on his or her own behalf.

The Act also prevents the purchase of farmland, without the consent of the court, by a trustee for any person under the age of 17 years, or the purchase by a company or trustee for a company to be formed where the shareholders are fewer than ten in number and any member of such company is under the age of 17 years (or where shares will be held in trust for any person under that age at the date of the transaction).

Table 14.2. LAND TRANSFERS REGISTERED

Year ended 31 MarchTotal transfersTotal consideration
NumberPercentage changeAmountPercentage change
  $(million)
198399,356−26.75 712.1−13.1
1984105,584+6.36 360.4+11.3
1985113,988+8.07 813.0+22.8
1986127,063+11.510 128.9+29.6
1987140,077+10.213 448.6+32.8

Table 14.3. CONSIDERATIONS FOR LAND TRANSFERS, 1987*

Consideration groupFreeholdLeaseholdAll transfers
No.Total considerationAverage considerationNo.Total considerationAverage considerationNo.Total considerationAverage consideration
* Year ended 31 March.
$     $(million)$(000) $(million)$(000) $(million)$(000)
Under 2 0001,0111.01.0251.01,0361.01.0
2 000–2 9995791.32.3362.46151.42.3
3 000–3 9995771.93.3650.23.56422.13.3
4 000–7 9993,03117.75.82351.45.83,26619.058
8 000–9 9991,67114.68.7790.78.51,75015.38.7
10 000–149994,36852.612.01191.412.14,48754.012.0
15 000–19 9994,03568.316.9771.316.64,11269.616.9
20 000–49 99926,701957.835.951418.135.127,215975.835.9
50 000–149 99980,0116 725.484.11,338112.484.081,3496 837.984.1
150 000–199 9996,4181 082.6168.716127.6171.76,5791 110.3168.8
200 000 and over8,8384 271.1483.318891.1484.49,0264 362.1483.3
               Total all groups137 24013194.396.12 837254.389.6140 07713 448.696.0

The division into freehold and leasehold demonstrates the relatively small percentage of land transfers involving leasehold property.

Table 14.4. LAND TRANSFERS BY AREA OF PROPERTY, 1987*

Size group (hectares)North IslandSouth IslandNew Zealand
NumberAreaTotal considerationNumberAreaTotal considerationNumberAreaTotal consideration
* Year ended 31 March.
  hectares
(000)
$(million) hectares
(000)
$(million) hectares
(000)
$(million)
Under 2100,36813.19 918.631,0543.62 112.4131,42216.712 031.0
2 and under 62,5749.5354.48193.084.83,39312.5439.2
6 and under 119437.5201.93993.346.31,34210.8248.2
11 and under 205919.091.92343.524.382512.4116.2
20 and under 5091429.8193.844814.047.81,36243.8241.5
50 and under 7535621.780.91338.219.148929.8100.0
75 and under 10019416.637.2978.413.029125.050.2
100 and under 20027639.664.223834.238.351473.9102.5
200 and over251123.470.4188109.049.3439232.4119.8
          Total106 467270.211 013.433 610187.22 435.2140 077457.413 448.6

Table 14.4 includes both urban and rural land transfers. The majority of the urban transfers are in the ‘under 2 hectares’ size-group, which is 94 percent of the total. Besides normal residential properties, this size-group includes many business, commercial, and industrial properties, and blocks of flats.

Figures of average consideration, and indeed all land transfer data, should be used with caution owing to the great diversity of property transactions covered by the figures. These transactions include, for example, sales of residential properties, farms and farmland, all classes of commercial, industrial, and business properties, sections, and parcels of land bought for such purposes as large-scale manufacturing, forestry, recreation, reserves, and later subdivision. The latest available, figures on land transfers are for the year ended 31 March 1987. Movements in prices of individual types of properties are given in section 19.2, House purchase and mortgage finance.

Table 14.5. LAND TRANSFERS BY LAND REGISTRATION DISTRICTS

Land registration district1985–861986–87
No.AreaTotal considerationNo.AreaTotal consideration
* The urban areas of Auckland are in the North Auckland Land Registration District.
 hectareshectares
  (000)$(million) (000)$(million)
North Auckland*45,562104.54 593.455,49485.16851.5
South Auckland20,07488.61 406.120,21850.41487.9
Gisborne1,12715.077.91,05432.174.5
Hawkes Bay4,58739.5302.04,47326.7312.9
Taranaki3,22440.2221.93,01222.3203.3
Wellington19,74860.71 446.922,21653.62083.3
Marlborough1,58521.197.41,61814.1113.9
Nelson3,08043.2204.03,15325.6243.7
Westland8115.631.18339.539.4
Canterbury16,49879.41 135.818,03266.21373.5
Otago6,51948.9425.16,74544.2486.3
Southland3,24853.0187.43,22927.6178.4
               Total127 063599.710 128.9140 077457.413 448.6

Table 14.6. MARKET SALES OF FREEHOLD FARMLAND

Half year endedNo. of salesTotal sale priceIndex Number*Percentage change from previous half year

* Base (= 1000) half year ended June 1980.

Source: Valuation New Zealand.

 $(million)
Dec 19851,370305.42,090−2.2
Jun 1986882166.82,036−2.6
Dec 19861,046185.52,016−1.0
Jun 19871,269285.61914−5.1
Dec 19871,479313.11991+4.0
Jun 19881,311273.21976−0.8
Dec 19881,532306.61903−3.6
Jun 19891,996455.22,015+5.8

Maori land

Before European settlement, all land was held by the various groups and tribes of the Maori people in accordance with their traditional customs and usage. The land remaining in this tenure is termed ‘Maori customary land’. By the Treaty of Waitangi, the right to purchase land from Maori was reserved to the Crown. Almost all of what had been Maori customary land was converted to other forms of title by one or other of the following processes: (a) purchase or other acquisition by the Crown (from whom the European colonists obtained land for farms, etc.); (b) the issue of a Crown grant to a Maori owner on the recommendation of the Maori Land Court; and (c) the issue of a freehold order by the Maori Land Court in favour of the Maori found entitled upon an investigation of title. (This process was used instead of process (b) after the introduction of the land transfer system into New Zealand.) Land in titles issued under the latter two processes became known as Maori freehold land. A Maori may buy or otherwise acquire land which is not Maori freehold land, i.e., general land, and for this reason there is an unknown but considerable amount of general land owned by Maori in addition to their holdings of Maori freehold land. The area of Maori freehold land is 1 305 698 hectares. Maori freehold land is subject to the jurisdiction of the Maori Land Court pursuant to the Maori Affairs Act 1953 and some general land owned by Maori is subject to certain provisions of that Act.

Maori Land Court, The Maori Land Court's general function is to deal with problems peculiar to multiple ownership of Maori lands, including: the partitioning and combining of titles for better utilisation; the effecting of exchanges; directing meetings of owners, and confirming or disallowing resolutions passed by such meetings; confirming sales; and making other miscellaneous orders (including in certain cases, determining entitlement to, and vesting in persons entitled, the beneficial interests of deceased owners, in Maori freehold land). With the disestablishment of the Department of Maori Affairs in June 1989, responsibility for the Maori Land Court transferred to the Department of Justice. The Maori Land Court and Maori Appellate Court are further described in section 10.1, Legal system.

Maori land development and rural lending. Until its disestablishment in June 1989, one of the principal functions of the Board of Maori Affairs was to encourage the development and use of Maori land for the benefit of Maori owners. This was achieved through either the Department of Maori Affairs administering the land or loans to landowners themselves.

The Maori Affairs Act 1953 allowed Maori landowners to vest the control of their land in the Department of Maori Affairs, which in turn carried out a development progamme The debt associated with the development was charged against the land, and was ultimately recovered from the farming operations before the land was returned to the owners' control and management.

With the disestablishment of the Department of Maori Affairs, the Board of Maori Affairs also ceased to exist and its powers and obligations were vested in the chief executive of the Iwi Transition Agency. In line with the kaupapa (policy) of the agency, the primary role of its land development division now is to facilitate the return of all Maori land development schemes currently under the agency's control to the control of the owners of the land themselves. As at 1 July 1989 there were 64 development schemes in operation, covering an area of 101 935 hectares. This compared with 86 schemes totalling 111 121 hectares at mid 1987.

Public lands

Before the reorganisation of environmental administration which took place in 1987, two government departments administered the areas of public land owned by the Crown, covering approximately half the area of New Zealand. The former Department of Lands and Survey administered Crown land under the Land Act 1948, reserves under the Reserves Act 1977, and national parks under the National Parks Act 1980. The former New Zealand Forest Service administered extensive state forests under the Forests Act 1949. This system of public land administration had developed since the nineteenth century. The objectives of the departments concerned, and the purposes for which various categories of land were held, were mixed. For example, the Forest Service had commercial and conservation functions. It managed some planted and natural forests for timber production, while it held other natural forests in a protective role related to erosion and water resources. Some state forests also had recreational and other uses. Similarly, the Department of Lands and Survey administered sequestered areas for preservation and conservation, for example, as national parks and reserves, and it also managed large areas of Crown land for production.

Re-allocation of Crown land. One of the main aims of recent public sector reform has been to rationalise the commercial and other functions of public sector organisations, including their environmental functions. New agencies have been established and given non-conflicting objectives. As part of the reform, the extensive public landholdings were re-allocated to the new government departments and state-owned enterprises established on 1 April 1987, although details are still being worked through, and the ownership of land is being transferred progressively.

The Department of Conservation was also established in 1987 (its role is described in section 14.3, National parks and reserves). A Department of Lands was created as a temporary unit to deal with Crown land not already allocated to the new organisations. It subsequently ceased to exist on 31 January 1990, its residual functions being taken over by the Department of Survey and Land Information.

Significant holdings of what is presently Crown land are in the process of being transferred to the Land Corporation, Forestry Corporation, and to a lesser extent the Electricity Corporation and Coal Corporation.

Commercial state forests are being acquired by the Forestry Corporation and the titles transferred. Non-commercial forests have been re-allocated to the Department of Conservation, as have reserves and national parks. Commercial Crown land has been purchased by the Land Corporation.

The actual position is more complicated than this general scheme. For example, the Forestry Corporation acquired some pieces of Crown land, and the Land Corporation some areas of state forest. Molesworth Station and pastoral leases, including extensive areas of South Island high country, remain under Crown title, but are to be managed by the Land Corporation on the Government's behalf.

Ownership of other Crown lands, mostly held subject to the Public Works Act 1961, is being transferred to the Airways Corporation, Government Property Services, New Zealand Post, Telecom Corporation, PostBank and also the Coal Corporation and the Electricity Corporation.

Concern that transfers of Crown land to state-owned enterprises would prevent the subsequent return of lands in the event of successful claims before the Waitangi Tribunal led to an injunction being sought by the New Zealand Maori Council. In hearing the case the Court of Appeal declared that the transfer of assets to the state-owned enterprises would be unlawful, without the prior establishment of a system to consider if the transfers were consistent with the principles of the Treaty of Waitangi. The eventual result was the passing of the Treaty of Waitangi (State Enterprises) Act 1988. The Act put in place a system of safeguards to apply after the transfer of assets to state-owned enterprises. These safeguards include power for the Waitangi Tribunal to make a binding recommendation for the return to Maori ownership of any land transferred to state enterprises under the State Owned Enterprises Act 1986. The Act also requires the Waitangi Tribunal to hear any claim relating to any such land as if it had not been so transferred and precludes state enterprises and their successors in title from being heard by the Waitangi Tribunal on claims relating to land transferred.

The settlement and safeguards for Maori claimants contained in the Act allow for the transfers authorised by the State Owned Enterprises Act 1986 to take place as soon as practicable. The major exercise of defining and transferring these lands is currently underway.

Table 14.7. LAND AREAS PROPOSED FOR TRANSFER TO STATE-OWNED ENTERPRISES, AS AT 31 MARCH 1988*

CategoryArea (ha)Percentage of total

* These figures are indicative only.

Source: Department of Survey and Land Information.

Total area of New Zealand26 900 000100.00
Department of Conservation7 000 00026.10
Land Corporation2 600 0009.70
Forest Corporation769,0002.90
Electricity Corporation59,0000.20
Coal Corporation10,0000.03
Unallocated Crown land400,0001.50

A more detailed estimate of the total land area of New Zealand is contained in section 1.1, Physical features.

Records of unregistered lands of the Crown. Information on the status of and administrative responsibilities for lands of the Crown is a matter of public record. Where such lands are registered under the provisions of the Land Transfer Act 1952, current records of registered interests in that land are held by the Land and Deeds Division of the Department of Justice. However, where such lands are unregistered the most comprehensive records available are held by the Department of Survey and Land Information.

Records relating to the new status and administration of unregistered lands of the Crown after the re-allocation described above are also held by the Department of Survey and Land Information. These records take the form of plans and schedules certified correct by Chief Surveyors pursuant to section 24 of the State Owned Enterprises Act 1986 and section 62 of the Conservation Act 1987. These plans and schedules will remain the prime records for these unregistered lands until they may be registered under the provisions of the Land Transfer Act 1952. Records for other unregistered lands of the Crown not allocated as a result of the environmental restructuring programme are also held by the Department of Survey and Land Information.

Land Corporation. The Land Corporation Limited (Landcorp) came into being on 1 April 1987, primarily to handle the Government's commercial farming and land management operations previously undertaken by the Department of Lands and Survey. The corporation has two main operating subsidiaries, Landcorp Farming and Landcorp Management Services, and an investment subsidiary, Landcorp Investments. These are supported by a corporate service division which incorporates finance and other activity.

The farming division is responsible for the corporation's farming operations involving some 2 million stock units on 170 properties spread throughout New Zealand. Among other projects, the corporation is involved in animal breeding schemes covering, a range of animal species.

Landcorp Investments is responsible for some 13 000 leases, licences, and other financial instruments taken over from the Crown.

Landcorp Management Services is responsible for the administration of the South Island high country pastoral leases under a management agreement with the Crown, the development or sale of corporation lands, and the provision of consultancy services in both the rural and urban fields. It also handles the purchase and sale of surplus government properties on behalf of government departments or others.

The corporation's head office is in Wellington. There are also' four property and six farming regional offices, together with a network of sub-offices.

Disposal of Crown land. Until 31 March 1987 Crown land was all administered under the Land Act 1948. The Minister of Lands is charged with the administration of the Act. The central authority under the Land Act was the Land Settlement Board, which disposed of Crown land through the Department of Lands and Survey according to its classification, i.e., farm, urban, commercial, industrial, and pastoral.

The administrative responsibility for the disposal of Crown land transferred to the Land Corporation from 1 April 1987 as a result of the restructuring described above. The 1986–87 Yearbook contain a fuller description of the previous system of Crown land disposal. Tabulations on the disposal of Crown land, which have been included in earlier Yearbooks, do not appear in this edition as the statistics are no longer available.

Valuation of land

Equitable land values are needed for:

  • Levying land tax;

  • Apportioning rating levies over contributing local authorities;

  • Levying rates by local authorities;

  • Lending money on mortgage by government departments and by trustees under the Trustee Act 1956;

  • Assessing stamp, estate and gift duties; and

  • Fixing prices for transfers of land to or from the Crown.

Since the Government Valuation of Land Act 1896 a separate government department has been in existence to assess values of real estate for taxation and other central government purposes, and for local rating. The Valuation of Land Act 1951 and the Land Valuation Proceedings Act 1948 set the current guidelines for the department's operation.

The work of Valuation New Zealand, as the department is now known, is directed by the Valuer-General. The actual work of valuing is done by valuers under the supervision of district valuers. Valuers examine each property and estimate:

  1. The capital value of the whole; property (land and buildings plus other improvements);

  2. The value of the land as if it were vacant; and

  3. The value of the improvements (if any) upon the land.

The estimated values should be neither above, nor below the fair selling values, in view of the many different purposes for which the values are used. Increased land values generally stem from public works, the successful working of other lands in the area, and the general prosperity and development of the country or locality. ‘Improvements’ on land are defined as items of work done or materials used on or for the benefit of the land which result in structural additions.

The valuation roll. A valuation roll is prepared for each district over which a territorial local authority sets rates. The roll shows the ownership, description and valuation of each property, including rates postponement and special rateable values where required. District valuation rolls are revised by the Valuer-General, usually at least every five years. Special valuations are made for particular purposes such as loans by government departments or trustees and the assessment of stamp, gift and estate duties. Valuation New Zealand operates an on-line enquiry system through which each of the 27 offices can provide information for any property in New Zealand.

When a district valuation roll is revised the Valuer-General, the local authority, or the owner or occupier of any property may object to any valuation on the roll. If a property's valuation is altered between general revaluations the owner, the occupier, or any affected local authority may object. Objections can be taken to a land valuation tribunal, and ultimately objectors may turn to the Administrative Division of the High Court, which also hears claims for compensation under the Public Works Act 1981, and sets values under the Land Settlement Promotion and Land Acquisition Act 1952.

Rating valuations. By law, every local authority rating on the basis of either the capital value or land value frames their valuation roll from the district valuation roll. A third major rating system is the annual (rental) value system, and the Valuer-General may be appointed to do these valuations. The annual value is defined as the rent at which a property would let from year to year, with certain reductions. Valuation rolls for annual value rating are prepared either annually or three-yearly.

Property owners are eligible for postponement of rates for farmland in areas where values are influenced by potential for urban development or other higher-valued land uses. Rates-postponement values are determined under the Valuation of Land Act 1951 or the Rating Powers Act 1988. Special rateable values for non-conforming land in various zones are also made so these properties will not have a rating advantage.

Table 14.8 shows the gross and net values on the valuation roll. Gross values include non-rateable property. Net values include all rateable property plus properties on which local authorities receive grants in lieu of rates.

Table 14.8. NATIONAL CAPITAL AND LAND VALUES, AS AT 31 MARCH 1989

Type of local authorityGross valuesNet values
Capital value (land and improvements)Land value*Capital value (land and improvements)Land value

* Included in previous column.

Source: Valuation New Zealand.

 $(million)
Counties and islands59,15126,36254,47225,717
Cities and boroughs121,41347,313113,51145,263
Town districts287267
               Total180 59273 682168 00970 987

Yearly revaluations of all properties in New Zealand are not made. However, using valuation equalisation, gross values for the whole country have been compiled in table 14.9. Comparing these figures with the gross values given in table 14.8 shows that valuation statistics tend to delay the appearance of current movements in the property market.

The Rating Powers Act 1988 makes provision for equalisation of values as a basis for the equitable adjustment of rates and levies between a number of local authorities or between parts of a territorial or regional authority if they have been revalued at different times.

Table 14.9. NATIONAL GROSS EQUALISED CAPITAL VALUE AS AT 31 MARCH 1989

Type of local authorityEqualised capital value
$(million)
Counties and islands66,003
Cities and boroughs144,778
Town districts36
               Total210 818
Source: Valuation New Zealand.

Valuers Registration Board. The Valuers Act 1948 provides for the registration of land valuers and some control of their work. There is a registration board under the chairmanship of the Valuer-General, which issues certificates for registration to all valuers, and annual practising certificates to public valuers. The main objects of the Act are to secure a high standard of valuation work throughout the country and encourage competent valuers. Of the 1757 valuers registered as at 31 March 1989, 954 had taken out annual practising certificates. The majority of the remaining 803 registered valuers are either employed in government departments, or do not make valuations for members of the public and so are not required to hold annual practising certificates.

14.2 Environmental and resource management

New Zealand occupies approximately 26.9 million hectares. It is predominantly mountainous and hilly country and can be categorised in terms of slope and altitude. Over two-thirds (18.5 million hectares) slopes at greater than 12 degrees and nearly half at greater than 28 degrees. Approximately three-fifths of the country (16 million hectares) is over 300 metres above sea level with one-fifth over 900 metres. It has been estimated that in pre-Polynesian times 78 percent of the total area (21 million hectares) was under forest cover, 14 percent was made up of the alpine zone, and the balance was drylands, lakes, and swamps. Polynesian and European settlement have seen a marked reduction of the original forest cover, by fire and conversion through the use of traditional and new development methods, to suit human needs.

Vegetation, wildlife and other aspects of the New Zealand environment are described in chapter 1, Geography.

Table 14.1. LAND USE TODAY*

Type of landAreaPercentage of total area

* These estimates are approximate only and at slight variance with those given in table 1.1, which gives a more accurate estimate of the total land area of New Zealand

Source: Ministry of Forestry.

 hectares (million) 
Total forested land7.226.8
Pasture and arable land14.453.5
Other land use4.918.2
Minor islands0.10.4
Lakes, rivers, etc.0.31.1
               Total area of New Zealand26.9100.0

Soils

Soil is a product of its environment: its composition depends on the parent ingredient, the climate, the length of time it has weathered, the topography, and the vegetation under which it has formed. The complex soil pattern of New Zealand is a result of the many different kinds of rock, and the various conditions under which the soils have formed. Climate varies from such extremes as the subtropical climate of North Auckland, the cold uplands of the alpine regions, and the semi-arid basins of Central Otago. The country's topography is equally varied, with 50 percent of the land classifiable as steep, 20 percent as moderately hilly, and only 30 percent as rolling or flat. The natural vegetation ranges from kauri forest to subalpine scrub, and from tussock grassland to broadleaf forest. Occasionally occurrences such as river floods on alluvial plains, sand drifts, or a volcanic ash eruption interrupt and alter the pattern of soil development.

Regional differences in New Zealand's soils result mainly from the effects of climate on topography. Soils weather more rapidly under high temperatures and become leached under heavy rainfall. Distinct soil gradations are found from west to east. These closely follow the isohyets (lines connecting places that receive the same amount of rain) on a climatic map.

Table 14.11. CLASSIFICATION OF NEW ZEALAND SOILS

RegionSoilsVegetation and land use
North Auckland Peninsula and Auckland regionLarge areas of infertile gumland soils formerly covered with kauri. Loams and clay from volcanic rocks.Patchy land use. Exotic forests on sand country and remnant kauri forest on uplands. Intensive dairying on rolling lands around Kaipara Harbour, Whangarei, Kaikohe and Dargaville. Sheep and beef on hill country.
Bay of Plenty-Waikato-Thames-Hauraki PlainsVolcanic ash covers much of the area, giving rise to deep, yellow-brown loams with good physical properties. Peaty and gley soils with high ground water on Hauraki Plains and parts of Waikato Basin.Intensively-farmed dairying region. Much of better dairying land in Bay of Plenty established in kiwifruit and subtropical horticulture. Maize cropping in Waikato Basin.
Volcanic PlateauPumice soils, lacking in some essential trace elements, but mostly deep, friable and highly suited to tree growth.Important watershed with large areas protected as native forest. Extensive exotic forests. Topdressing of former scrub areas with trace elements has allowed widespread farming.
East Coast-WairarapaYellow-brown earths. Significant areas of recent alluvial soils on Gisborne and Heretaunga Plains. Yellow-grey earths on rolling land south of Hawkes Bay.Semi-extensive sheep farming (wool and store sheep) on dry hill country Intensive lamb production on flat to rolling plains. Market gardens and orchards near Gisborne, Napier, and Hastings. Important pip-fruit production. Vineyards. Pockets of dairying close to main ranges from Norsewood south.
TaranakiVolcanic ring plain consists of yellow-brown loams, usually from deep volcanic ash, but stony in west. Soft-rock uplands in east Taranaki.Distinct contrast between intensive dairying on ring plain, and severely eroded inland hill country, with many steep ridges covered in second-growth forest or dense gorse.
Manawatu-HorowhenuaSand dunes and swampy hollows common along coast. Loess-covered terraces and river flats inland. Yellow-grey earths on drier terraces with sand soils near coast and organic and recent alluvial soils on lower plains.Intensive sheep production and cropping on the terrace country; semi-intensive sheep and beef in hill country of Rangitikei. Exotic forestry on coastal sand country.
Marlborough Sounds-NelsonPockets of fertile, recent alluvial soils on Waimea and Motueka Plains. Large areas of steepland soils and stony soils on Moutere Gravels.Intensive orcharding and market gardens. Exotic forests in Marlborough Sounds and Moutere Gravels.
Marlborough-Kaikoura CoastYellow-grey earths and yellow-brown earths with pockets of alluvial soils.Intensive sheep farming and cropping on river terraces, semi-intensive sheep and beef on hill country. Vineyards in lower Wairau Valley.
West CoastExtensive gley podzols and organic soils, with recent soils on alluvial flats.Indigenous forestry declining; national parks and reserves; exotic forestry on hill country of north Westland. Dairying on river flats.
CanterburyVery thick layer of gravel covered by variable thicknesses of fine material. Yellow-grey earths and associated stony soils.Intensive cropping for cereals and fodder crops. Intensive sheep production, with widespread irrigation of pasture.
OtagoHigh-county yellow-brown earths on ranges, and semi-arid soils (often stony), in basins.Extensive sheep and beef farming in uplands. Intensive orcharding in Central Otago basins, especially for stonefruit; irrigation necessary. Market gardening in lower Taieri.
SouthlandSouthland Plain mainly deposits of gravel and silt. Yellow-brown earths and recent alluvial soils. Yellow-grey earths inland in drier areas.Semi-intensive sheep and beef farming in rolling areas inland, and intensive fattening on plains. Dairying on plains near Invercargill.
Source: DSIR.

Planning framework

New Zealand's principal planning legislation, the Town and Country Planning Act 1977, provides a process by which needs, opportunities, and issues relating to land and water use can be identified and appropriate objectives and policies formulated. Measures can then be embodied in regional, district, and maritime planning schemes. The purpose of planning is defined in the Town and Country Planning Act 1977 as being ‘the wise use and management of the resources, and the direction and control of the development of a region, district, or area in such a way as will most effectively promote and safeguard the health, safety, and convenience, and the economic, cultural, social, and general welfare, of the people and the amenities of every part of the region, district, or area’. Opportunities for public participation in town and country planning are broad and include any body or person representing some relevant aspect of the public interest. All public bodies, including the Crown, are required to adhere to the provisions of any approved regional planning scheme.

In the administration of district planning schemes, consideration must be given to specific matters of national importance. All Crown proposals for public works which do not conform with the provisions of the relevant district scheme must be advertised and are subject to rights of objection and appeal. In considering appeals against any public work the Planning Tribunal is required to consider whether the site is suitable for the proposed work, and the economic, social, and environmental effects of the proposal. In the case of Crown works, the Minister for the Environment can (as an alternative to an appeal) request the tribunal to conduct a public inquiry which must take into account the economic, social, and environmental effects of the proposal and any other related matters.

National planning. In the preparation, implementation, and administration of regional, district, and maritime planning schemes the following matters—which are declared to be of national importance—must be recognised and provided for: the conservation, protection, and enhancement of the physical, cultural, and social environment; the wise use and management of New Zealand's resources; the preservation of the natural character of the coastal environment and the margins of lakes and rivers, and the protection of them from unnecessary subdivision and development; the avoidance of encroachment of urban development on, and the protection of, land having a high actual or potential value for the production of food; the prevention of scattered subdivision and urban development in rural areas; the avoidance of unnecessary expansion of urban areas into rural areas in or adjoining cities; and the relationship of the Maori people and their culture and traditions with their ancestral land.

Regional planning. Regional planning is concerned with establishing policies and programmes at all levels of government which reflect the needs and desires of the people of each region, and which are reconciled with the national interest and competing demands for national resources. Urban centres and rural areas cannot be planned in isolation from each other or from the nation as a whole.

Under the Town and Country Planning Act regional planning has four main features:

  • It is the responsibility of regional councils;

  • Regional planning schemes are to be approved by central government before they come into operation;

  • Approved regional planning schemes must be adhered to by the Crown and every local and public authority; and

  • District and maritime planning schemes must conform with approved regional planning schemes.

Matters to be dealt with in regional planning schemes embrace social, economic, and environmental policies. Reference is made, for example, to ‘natural resources and environment—the identification, preservation, and development of the regions’ natural resources including water, soil, air and other natural systems, farmlands, forests, fisheries, minerals… and areas of value for the enjoyment of nature and the landscape'.

The Local Government Act 1974 created 22 regional or united councils throughout New Zealand with regional planning responsibilities and powers under the Town and Country Planning Act 1977. These responsibilities passed to 14 new councils constituted on 1 November 1989 under wide ranging local government reforms (see section 3.4, Local government). The regional planning process offers a means by which local and central government, representing the regional communities and the national interest respectively, can reach agreement on development and welfare policies and priorities for the allocation of resources for each region. Agreement can be expressed in the regional planning scheme, and changes of policy can be worked out within the process of changing the scheme. In addition, under the Act, the Minister for the Environment may extend regional boundaries to include adjacent water areas and this provides for the planning of land and water to be brought together under the same administration.

District planning. Every district scheme under the Town and Country Planning Act 1977 is required to have as its general purpose the wise use and management of the resources of the district, and the direction and control of its development, in such a way as will most effectively promote and safeguard the economic, cultural, social, and general welfare of the people and the preservation of the amenities of the district. It must also recognise and provide for matters of national importance defined in the Act. Every city, borough, and county council or other authority responsible for the general administration of a district must provide and maintain a district scheme unless exempted by the Minister for the Environment. In particular, matters within district schemes include the preservation and conservation of the amenities of the district, and buildings, trees, bush, plants, landscapes, objects, or areas of architectural, historical, scientific, wildlife, visual, or other interest.

Councils have recognised the potential of the district planning scheme as an effective instrument for bringing about innovative change not only in land-use control but also in environmental management and local administration in general. The key to this is the emphasis placed on the scheme statement as a means of expressing policies which have been subjected to the formal approval procedures, including objection and appeal, that the Town and Country Planning Act 1977 provides.

A renewed concern for a more humane basis to planning has focused on the destruction of areas of natural beauty, the loss of historic areas of cities, and the destruction of neighbourhood communities as past errors which must not be repeated. With this in mind, a number of councils make provision for special character zones. These are zones which have a special character derived from the age, condition, or character of the buildings. general layout, or landscape features. In these zones the aim is to preserve the special character (using controls where necessary), for example, by encouraging new buildings designed in sympathy with the existing environment, and by more liberal approaches to the rehabilitation and use of existing properties.

In addition to these zones, a number of councils have adopted a variety of zones which cater for Maori-related uses on Maori land, the most prominent of these are the marae and papakainga zones. In the first instance, a zone is established which allows for the construction of the marae itself. The papakainga zone provides for residential development on Maori land which is generally in multiple ownership. These zones were created in order to balance the needs of Maori wishing to build on their ancestral land with other planning requirements.

Maritime planning The need to plan for areas below the mean high water mark, which are subject to increasing pressures from various demands, led to the introduction of maritime planning under the Town and Country' Planning Act. The Act provides a statutory procedure to establish maritime planning areas on the joint recommendation of the Minister for the Environment and the Ministers of Transport and Conservation; and to appoint maritime planning authorities. Four maritime planning areas cover the Waitemata, Manukau, and Wellington Harbours, and the Marlborough Sounds. In each case the respective harbour board was appointed the maritime planning authority. Under the local government reforms effected from 1 November 1989, the relevant regional councils assumed the responsibilities of the former maritime planning authorities. Each council is required to set up a maritime planning committee with representation from territorial local authorities and the central government. Maritime planning schemes do not cover the whole of the coast, but only those areas where there are problems of conservation and management, or conflict between the use of the water and adjacent land areas.

The Town and Country Planning Act 1977 and other resource management legislation was under review ai the time of going to press, see ‘resource management law reform’ at the end of this section.

Parliamentary Commissioner for the Environment

This parliamentary office was established by the Environment Act 1986. The parliamentary commissioner continuously reviews the systems and agencies established by the Government to manage the allocation, use, and preservation of natural and physical resources. The objective is to ascertain that the system and agencies operate to improve the quality of the environment.

The Parliamentary Commissioner for the Environment also investigates the effectiveness of environmental planning and management carried out by public authorities and advises on ways of improving it. When any damage to the environment has occurred or might occur, the parliamentary commissioner may investigate and advise Parliament or the appropriate public authority on remedial action.

Control of mineral exploitation

The Minister of Energy issues licences under the Coal Mines Act 1979 and the Mining Act 1971 for the exploration, prospecting, and mining of coal and minerals. Each licence issued generally contains conditions which restrict the working of the licence, cover rehabilitation requirements and protect the environment. Mineral exploitation on private land, as defined under the Mining Act 1971, may not in some cases require a licence under this Act. However, all gold and silver exploitation must be licensed. If a licence is not required, the operation may come under the Town and Country' Planning Act 1977, and under the Quarries and Tunnels Act 1982 for safety requirements. The Resource Management Bill, before Parliament at the time of going to press, contains amendments to mining legislation.

Water and soil conservation

Problems of Hood control have affected New Zealand communities at least since the beginning of European settlement. Wholesale clearing of forested land for pastoral and agricultural production has left a heritage of soil conservation problems, especially in geologically unstable areas. Administration of water and soil resources is achieved largely through the Water and Soil Conservation Act 1967, with protection against flooding and erosion control provided by the Soil Conservation and Rivers Control Act 1941. These Acts are administered by the Ministry for the Environment.

The management of water use, control of rivers, mitigation of erosion, assessment of coastal, landslip, and flooding hazards, and the protection of scenic and recreational waterways are achieved largely through these Acts by the work of regional councils. Government grants are provided to assist councils to complete a range of water and soil activities that includes resource investigation and planning along with the construction of flood protection and river control works, and soil conservation. In the 1989–90 year the Government allocated $47.36 million for these grants. The grants system was under review at the time of going to press.

Water resources. It has been estimated that New Zealand's consumption of water approaches 2000 million cubic metres per year. Households use 210 million cubic metres, industry 260 million cubic metres, livestock 350 million cubic metres, and irrigation 1100 million cubic metres per year. Approximately 87 percent of the population is supplied by public water-supply systems. The rest rely on an independent domestic supply (rainwater collecting, aquifer bores, etc.). Industry obtains about 33 percent of its requirements from public supply systems and 66 percent from its own sources. These figures do not include the use of water for hydro-electric generation, which exceeds 100 000 million cubic metres per year. Obviously, water flowing through hydro-station turbines can be used again, and on the Waikato River and its tributaries 10 state hydro stations, and a number owned by local authorities, use and reuse a flow which at Karapiro (the last station) is over 7000 million cubic metres per year. Thus the total irrigation, agricultural, industrial, and domestic water consumption could be supplied three times over by the Waikato River alone, at Karapiro.

In terms of total water resources, the country has an estimated 300 000 million cubic metres per year, although these are by no means evenly distributed. High mountains, especially in the South Island, create substantial rain-shadow areas. In a few areas, annual rainfalls of over 10000 mm have been measured, while in others as little as 340 mm may fall in a year.

In some parts of the country, including the Canterbury Plains, the Heretaunga Plains in Hawkes Bay, and the Waimea Plain near Nelson, underground water is an important resource. The cities of Christchurch, Lower Hutt, Napier, and Hastings draw at least some of their domestic and industrial supplies as well as irrigation water from such sources. Management of underground water, and its protection from contamination, is an increasing concern of regional authorities in these areas.

Water allocation. By the Water and Soil Conservation Act 1967 all rights for the use of natural water are vested in the Crown. In general the management and administration of these rights have been given to regional councils to carry out on behalf of the Crown. Those wishing to use water for anything except domestic and stock purposes, or wishing to discharge wastes into natural waters, require a water right from a regional council. These councils are thus able to ensure that available supplies are not overtaxed. Several councils have studied the total water resource in major catchments within their districts to assess the availability of the water resource and present and future demands on it.

In this process of water allocation planning, the public is given the opportunity to participate. The goal is the preparation of a water management plan for each region. This provides a framework within which a regional council will operate when considering applications for rights to water. It also provides a guide to existing and prospective users of water, regarding the manner in which their rights to water may be reduced in times of water shortage.

Maintenance of water quality is also the responsibility of regional councils. Some waters of New Zealand have been classified. A classification fixes the minimum standards of water quality and provides a permissible range of water quality within which regional water boards must operate when controlling discharges of waste. Water rights may be restricted or suspended in order to maintain minimum standards of quality and, if a minimum flow in a river has been fixed, water rights may also be restricted or suspended to maintain that flow.

A 1981 amendment to the Water and Soil Conservation Act 1967 provided for water conservation orders to be placed over rivers, streams or lakes to protect outstanding wild and scenic, recreational, fisheries, scientific or other in-stream values. An order can contain two types of provisions: it can preserve a water body in its natural state, or it can protect certain features by placing restrictions on the issue of future water rights. To date orders have been placed over the Motu, Rakaia and Manganui-o-te-ao Rivers, and over Lake Wairarapa. Applications for orders on several other water bodies are currently being heard.

Irrigation. Irrigation was initially practised in New Zealand as a drought protection measure. It was not until the 1940s that the benefits of irrigation as a farm management tool were realised. Most of the earlier irrigation was concentrated in areas of Central Otago and South Canterbury. In both areas a high soil moisture deficit is experienced during summer, because of hot drying winds. More recently irrigation schemes have been promoted in North Canterbury and in Nelson and in parts of the North Island suitable for horticulture, particularly Northland and the Bay of Plenty.

Pastoral irrigation is predominant in the South Island and was traditionally centred around major rivers, drawing from them on a run-of-the-river basis. More recent schemes include storage for better water management for the needs of crops. In total, about 234 000 hectares are now irrigated, by community- and government-supported schemes. Of this area, 218 000 hectares are irrigated for pastoral purposes, mostly in the South Island, and 16 000 hectares are irrigated for horticulture, almost entirely in the North Island. Since 1960 central government has supported 26 new irrigation schemes designed to irrigate approximately 73 000 hectares. Of these, 13 schemes were developed for pastoral and/or crop production, two for combined pastoral and horticultural development and nine are solely for horticultural development. Eight of the schemes are located in the North Island and all are for horticultural development. The 16 schemes which are located in the South Island are predominantly for pastoral and crop production, but there has been a changing emphasis to horticulture, and more recent schemes undertaken in the South Island have been for horticulture, or combined horticulture and pastoral use.

There are 20 older schemes in Canterbury and Central Otago, which have been operative for many years.

Private irrigation undertaken by individuals or groups of farmers has been practised over much of the country, often with the assistance of concessionaire interest rates. Water for these schemes is generally drawn from underground sources, or pumped from rivers and drains, and applied by spray or trickle methods. Private flood-irrigation is limited to small gravity-supply schemes, which are comparatively few in number.

River control. The Soil Conservation and Rivers Control Act 1941 provides for the prevention of damage by erosion and the protection of property from damage by floods. River control projects carried out by councils often serve both these objectives. River training works are designed to give the river channel a stable alignment that will prevent bank erosion. Stopbanks are constructed to provide flood relief to low-lying and, mostly, highly productive agricultural lands.

A catchment-wide approach to water and soil problems is encouraged. Comprehensive catchment control schemes embrace land retirement from grazing and protection planting of trees in the upper catchment; bank protection works in the middle reaches; and flood alleviation and drainage works in the lower reaches of a river.

Most major and many smaller rivers in New Zealand are now covered by control schemes for at least part of their length. As natural river systems change continually in response to variations in average rainfall and sediment supply, a sustained works programme is required on many rivers so that the standards of protection can be maintained. In urban areas policies focus on avoiding flood damage through planning measures such as flood-plain zoning and recommended minimum flow levels. This recognises that flood hazard partly is an artificial problem, which needs to be resolved not only by keeping water away from settlement but also by keeping settlement away from water.

Soil conservation. Changes in vegetation from land development have resulted in disturbed soil conditions in many parts of New Zealand. The protective, stabilising, and water controlling combination of vigorous native vegetation, litter, and spongy soil has given way to a shallow-rooted, less protective carpet of grass on a compacted, impervious, and often exhausted soil. Natural erosion, caused by climatic factors (such as high-intensity rainfall and frost heave) combined with the geological instability of much of the country, has been aggravated by man-made effects. Soil erosion now occurs on more than 8 million hectares of hill country and mountain land, about one-third of the total area of New Zealand.

In the 1940s the Soil Conservation and Rivers Control Council began a number of measures to control soil erosion and to rehabilitate eroded catchments with the help of catchment authorities. Successful techniques developed to control erosion include control of burning and animal pests, oversowing, topdressing, strict grazing control, soil conservation fencing, stock-water ponds, gully control, contour ploughing, terraces, grassed waterways, and open and close tree planting. Grants at varying rates are available to farmers carrying out these control practices.

In the 1970s the New Zealand Land Resource Inventory was completed for the main islands of New Zealand. This lists the physical factors of rock type, soil, slope, erosion and vegetation, and describes, in coded form, land parcels or units in terms of those combined factors. The inventory then identifies the land-use capability of each unit. Coverage at a scale of 1:63360 has been completed and 89000 land-management units have been mapped. The national coverage, coupled with its computer storage of both boundaries and codes, is a very effective and flexible physical base for soil conservation and general land use at regional through to local levels. Information on stock carrying capacity, fertiliser requirements, and potential for exotic forestry has been added to the inventory. A national map series on erosion and vegetation cover has been completed.

Information from the inventory is also compiled at a more detailed level by councils for small catchments and individual farm properties, allowing soil conservators to recommend the best conservation practices, and management of particular areas of land to ensure sustained permanent production. A plan is formulated by a soil conservator and then discussed with the landowner concerned. The plan may then be adjusted to suit the landowner's ability to carry it out over several years.

Pollution

Public concern for the environment has led to an increased awareness of pollution problems. Organisations have responded by involving the public in the decision-making processes and by amending legislation to provide the appropriate controls.

The problems of water pollution are being addressed by regional water councils through the Water and Soil Conservation Act 1967, and the Ministry of Agriculture and Fisheries (through the Fisheries Act), and the Department of Conservation, (through the Wildlife Act), also have statutory powers to control water pollution. Air pollution is the responsibility of the Department of Health and territorial authorities under the provisions of the Clean Air Act 1972. Local authorities control noise in their areas through the Noise Control Act 1982. These acts are under review.

Within the territorial sea and harbours, the Marine Pollution Act 1974 controls the discharge or dumping of oil or any other substance declared a pollutant. There is also a contingency plan for cleaning up oil pollution in coastal waters and on the shore.

Pollution of rivers and lakes can be caused by soil erosion, farm run-off, industrial waste, or domestic sewage. The Water and Soil Conservation Act 1967 provides for the control of waste discharges through water rights. These include conditions ensuring that the discharge has had adequate treatment sufficient to protect the receiving waters. Diffuse forms of pollution like soil erosion and fertiliser run-off, require different approaches, such as through changing land use practices. Sewage and farm run-off add nutrients to the water, which in some lakes (e.g., Lakes Rotorua and Horowhenua) have caused excessive growth of weeds and algal blooms, to the detriment of water quality. Waste disposal from cities and the forestry and meat industries are also major contributors to pollution. Urban solid-waste disposal is largely by the land-fill technique, and most major cities are establishing tip sites planned to last up to 50 or 100 years.

Organic chemical pesticides and herbicides are widely accepted as essential for efficient agriculture and horticulture. The use of such chemicals is controlled by the Pesticides Board under the auspices of the Ministry of Agriculture and Fisheries. The board controls the import of chemicals and has an approved list of proprietary herbicides and pesticides for use in different situations, such as in or near water. The board also gives guidance on the application of those chemicals.

Several divisions of the Department of Scientific and Industrial Research are concerned with monitoring pollution. A chemistry division conducts surveys of mercury contamination of fish and water arising from geothermal outflows. Nitrate concentration in ground waters and insecticides in water are also measured, and checks are kept on heavy metals in foods. The botany, land and soil sciences divisions carry out work on the effect of introduced substances and organisms on the environment. The division concept with water sciences investigates the effects of the disposal of wastes on the quality of natural waters. The Physics and Engineering Laboratory participates in the Earth's Resources Technology Satellite programme. The department also assists other industry-based organisations with projects to reduce pollution and increase the use of by products which have in the past been wasted.

New Zealand's geography is, in general, favourable to the dispersal of air pollutants, although some areas, such as Christchurch, suffer from poor air quality due to local climatic conditions. The Clean Air Act 1972 established the principle of air pollution control on industry by the best practicable means. Provision was also made for the establishment of clean air zones. Clean air zones have been established in Christchurch.

Global environmental issues

Some of the most pressing environmental problems extend beyond national borders. They include ozone depletion, the Greenhouse Effect (see section 1.3, Climate), the management of hazardous chemicals, the extinction of species, and the degradation of the world's productive soils. They are known as global environmental issues because no country on its own causes these problems, but all countries ultimately suffer the consequences.

Solutions require co-ordinated international action. In practice this means international agreements on what must be done, backed up by effective action from all nations.

In order to reach agreement on the best course of action, countries have found that they must sort out other issues related to the world economy and international development. Different countries can have very different interests to protect, and different priorities for action. These differences must be addressed before nations can commit themselves to any agreement.

Global environmental issues require a special approach by New Zealand. The most important contribution the Government can make is to lobby, mediate and facilitate international agreements. Strong domestic environmental policies are an important part of this strategy.

The Ministry for the Environment has established a Global Environmental Issues Directorate to formulate advice to the Government on New Zealand's policies on ozone depletion, climate change, sustainable development, and Antarctica. In consultation with the Environment Section of the Ministry of External Relations and Trade, the Ministry for the Environment also advises the Government on ways to promote international agreements to solve global environmental issues.

Two major environmental initiatives of international significance were undertaken by the Government during 1989. These were concerned with drift-net fishing and ozone depletion.

In July 1989 regulations came into force which prohibit the possession and use of drift nets in New Zealand waters, including the Exclusive Economic Zone. Also in July, Government announced an Ozone Protection Policy which details the timetables that different industries will adopt to phase out ozone-depleting chlorofluorocarbons and halogens.

Resource management law reform

In January 1988 the Government launched a review of all the major laws concerned with the management of New Zealand's natural and physical resources. Included were the Town and Country Planning Act, the water and soil legislation, the minerals legislation, and the environmental assessment procedures. It had been widely acknowledged that the resource management laws were inadequate. They were seen as too complex and legalistic, and often slow and costly.

The reform questioned the relevance of all existing statutes and basic assumptions and was linked with the reform of regional and local government, and the review of coastal legislation. Wide public discussion and involvement was an essential part of the process as was an open door policy on submissions.

The reform had three phases. The first looked at the purposes, objectives and priorities for reform, and considered the role of government in resource management. Phase two set out clear options for reform, and set priorities for preparing and reviewing legislation. Phase three has been concerned with drafting legislation.

A core group of officials and advisers, convened by the Ministry for the Environment, was responsible for managing the review, consulting interested parties, and keeping the public informed of progress. It reported directly to the Minister for the Environment and the Cabinet Committee on Reform of Local Government and Resource Management Statutes. This committee, which was chaired by the Minister for the Environment, was primarily responsible for making policy recommendations to Cabinet.

The review culminated in the introduction to Parliament of the Resource Management Bill, in December 1989.

The objective of the bill is to integrate the laws relating to resource management, and to set up a resource management system that promotes sustainable management of natural and physical resources.

The bill integrates existing laws by bringing together the management of land, including land subdivision, water and soil, minerals and energy resources, the coast, air, and pollution control, including noise control. It sets out the rights and responsibilities of individuals, and territorial, regional and central government. At the time of going to press the bill was still passing through Parliament, but it was expected to become law by the end of 1990.

14.3 National parks and reserves

The Department of Conservation administers all publicly-owned land in New Zealand that is protected for scenic, scientific, historic and cultural reasons, or set aside for recreational purposes. More than 5 million hectares—nearly 19 percent of the nation's total area—are under some form of protection.

There are 12 national parks, covering more than 2 million hectares, 21 forest parks, covering some 1.7 million hectares, and nearly 4000 reserves, including some 3000 hectares of protected private land that have been set aside for scenic, scientific or ecological reasons. The department also has responsibility for the preservation and management of wildlife (as described in section 1.5, Vegetation and wildlife), wild and scenic rivers, the sea-shore and seabed to a distance of 12 nautical miles, lake shores and all navigable rivers.

Before April 1987, government's conservation responsibilities were divided among several departments. The Department of Lands and Survey administered national parks and reserves, the New Zealand Forest Service was responsible for state forest parks, the New Zealand Wildlife Service was part of the Department of Internal Affairs, the Department of Agriculture and Fisheries was responsible for marine mammals, and the Transport Department administered certain aspects of the law relating to harbours, foreshores and lakes. The establishment of the Department of Conservation placed all these responsibilities under one administration.

National parks

For the Maori people the land of Aotearoa/New Zealand is part of their spiritual identity, an expression of their mana. According to legend, Rangi the sky father and Papa the earth mother were the first parents of the Maori people. The land and the people were one. Aotearoa is the land, the Maori are the people of the land, the tangata whenua.

It was the Maoris' strong sense of identity with their land that led to the creation of New Zealand's first national park. During the 1880s the Tuwharetoa people of the central North Island feared that their ancestral mountains, the imposing volcanic peaks of Tongariro, Ruapehu and Ngauruhoe, would be taken by European settlers.

Te Heuheu Tukino IV, paramount chief of Ngati Tuwharetoa, offered the mountain tops to the government as a gift to be held in trust for the people of New Zealand for all time.

The government accepted the mountains in 1887 and they became the nucleus of Tongariro National Park which was formally established by Act of Parliament seven years later. The centenary of the gift was celebrated during 1987–88 by commemorative events in all 12 national parks.

Representations by Taranaki settlers in the early 1890s resulted in another special Act establishing Egmont National Park. Farmers were anxious to see the forests on the mountain slopes preserved to safeguard the catchment and protect their land from excess run-off, but the park has since become an added benefit to the province as a year-round playground, offering such outdoor activities as tramping, climbing and skiing.

The Fiordland area, already famous for its spectacular lakes and fiords, was formally designated a public reserve in 1905 with a view to its later establishment as a third national park. Awakening public interest in New Zealand's natural scenery and a growing realisation of the scientific importance of the unique flora and fauna led to the passing of the Public Reserves, Domains and National Parks Act in 1928. This allowed the government to declare areas to be national parks without specific acts of Parliament.

The following year saw the creation of Arthur's Pass National Park around the country's most spectacular alpine highway, Abel Tasman National Park was opened in 1942 to celebrate the 300th anniversary of the arrival of the first recorded European visitors to New Zealand.

The National Parks Act 1952 consolidated the legislation covering the administration of the five existing national parks, defined the status and purpose of national parks, established the National Parks Authority for the formulation of policy and the allocation of finance, and set up separate park boards for the routine administration of each park. Five more national parks and three maritime parks were established under that Act.

The Fiordland National Park was formally established by the 1952 Act. Mount Cook National Park was established in 1953, Urewera National Park in 1954, Nelson Lakes National Park in 1956, Westland National Park in 1960 and Mount Aspiring National Park in 1964. Hauraki Gulf Maritime Park was established in 1967, Marlborough Sounds Maritime Park in 1972 and Bay of Islands Maritime and Historic Park in 1978. Each of the maritime parks incorporated a number of existing historic, scenic, recreation and nature reserves.

The 1952 Act was replaced by the National Parks Act 1980 which established the National Parks and Reserves Authority with similar policy-making and financial responsibilities to the earlier authority. Twelve regional national parks and reserves boards became responsible for policy making in national parks, maritime parks, and scenic, scientific and nature reserves throughout the country.

The Act provides for the establishment of national parks or reserves in areas where the scenery is of such distinctive quality, or the natural features or ecological systems so important scientifically that their preservation is in the national interest. The Act also provides for the public to have freedom of entry and access to the parks, though this is subject to such conditions and restrictions as are necessary for the preservation of native plants and animals or for the welfare of the parks in general. Access to specially protected areas constituted under the Act is by permit only.

The Act states that National Parks are to be maintained as far as possible in their natural state so that their value as soil, water and forest conservation areas is maintained. Native plants and animals are to be preserved and introduced plants and animals are to be removed if their presence is seen to conflict with the aims of the Act. Development in wilderness areas established under the Act is restricted to foot tracks and huts essential for wild animal control or scientific research. The Act allows the Department of Conservation to provide houses for park staff, accommodation houses and other buildings, hostels, huts, camping grounds, ski tows and similar facilities, parking areas, roading and tracks within the parks. Accommodation, transport and other services at entry points to the parks are provided by the department, other government agencies, voluntary organisations and private enterprise. Some services within the parks, such as guided walks and skiing instruction, are provided by private firms under concessions from the department.

The Whanganui National Park was opened in December 1986. It incorporates a number of scenic and nature reserves, some Crown land and former state forests around the middle reaches of the Wanganui River. The Paparoa National Park, on the West Coast of the South Island, was approved in principle in 1986 and opened as part of the national parks centennial celebrations in December 1987.

New Zealand's national parks are listed, from north to south, below.

Tongariro National Park. (78 651 hectares, established 1887), was New Zealand's first national park. It includes the three active volcanoes, Ruapehu, Ngauruhoe and Tongariro.

Urewera National Park. (212 675 hectares, established 1954), together with neighbouring Whirinaki Forest Park, is the largest remaining area of native forest in the North Island. Lake Waikaremoana is noted for its scenic shoreline.

Egmont National Park. (33 543 hectares, established 1900), comprises all the land in a 9-kilometre radius of the Taranaki/Mount Egmont summit and some outlying areas to the north. The symmetrical cone of the dormant volcano is a provincial landmark.

Whanganui National Park. (74 231 hectares, established 1986), borders the Wanganui River. It incorporates areas of Crown land, former State Forest and a number of former reserves. The river itself is not part of the park.

Abel Tasman National Park. (22 541 hectares, established 1942), has numerous tidal inlets and beaches of golden sand along the shores of Tasman Bay. It is New Zealand's smallest national park.

Nelson Lakes National Park. (101 753 hectares, established 1956), is a rugged, mountainous area in Nelson Province. It extends southwards from the forested shores of Lakes Rotoiti and Rotoroa to the Lewis Pass National Reserve.

Paparoa National Park. (27 818 hectares, established 1987), is on the West Coast of the South Island between Westport and Greymouth. It includes the celebrated Pancake Rocks at Punakaiki.

Arthur's Pass National Park, (99 270 hectares, established 1929), is a rugged and mountainous area straddling the main divide of the Southern Alps. It includes at least 30 peaks more than 1800 min height.

Mount Cook and Westland National Parks. (69 923 hectares, established 1953; 117 547 hectares, established 1960), share a boundary along the alpine divide. Aoraki/Mount Cook (3764 m) and Mount Tasman (3497 m) are New Zealand's tallest peaks. The parks have together been declared a World Heritage Area because of their outstanding natural beauty and scientific importance.

Mount Aspiring National Park. (316 657 hectares, established 1964), is a complex of impressively glaciated mountain scenery centred on Mount Aspiring (3036 m), which is New Zealand's highest peak outside Mount Cook National Park.

Fiordland National Park. (1 251 924 hectares, established 1952), is the largest national park in New Zealand and one of the largest in the world. The grandeur of its scenery, with its deep fiords, its lakes of glacial origin, its mountains and waterfalls, has earned it international recognition as a World Heritage Area.

Forest parks

The Department of Conservation administers 20 forest parks formerly administered by the New Zealand Forest Service. Their primary purpose, in most cases, is to protect the catchments of forested mountain ranges throughout the country, but they also provide a less restricted range of recreational activities than national parks and reserves, including tramping, camping, fishing, and shooting for a variety of game.

The forest parks contain a varied landscape including coastal areas, lakes, mountains, tablelands and tussock grasslands within an approximate area of 1.8 million hectares.

Some of the more significant of these forest parks are:

North West Nelson Forest Park—377 000 hectares; in includes the Tasman wilderness area and provides a variety of recreational uses. The Heaphy Track, one of the more popular walking tracks in New Zealand, leads through the park to the West Coast.

Victoria Forest Park— Approximately 200 hectares; attracts visitors to the historical remains of early goldmining settlements. It includes ecological reserves for vegetation type within the district.

Tararua Forest Park—117 000 hectares; a rugged mountain range near Wellington stretching 100 kilometres northward. This was the first forest park established in New Zealand and is important for soil and water conservation in the region. Recreational use is consistent throughout the year and its extensive track system makes it a popular venue for the region's trampers.

Raukumara Forest Park—115 000 hectares of almost entirely virgin native forest rising to low alpine vegetation on Mt Hikurangi. It offers wilderness area experience for trampers and hunters, and rafting on the Motu river which runs through spectacular gorges.

Ruahine Forest Park—93 000 hectares; a series of ranges in central north island with important forest protection values. It offers recreational facilities for trampers, hunters and picnickers. It forms a dramatic backdrop to the southern Hawkes Bay region.

Reserves

National reserves protect areas of outstanding natural beauty or scientific or ecological importance. They are second only to national parks in the degree of protection they offer.

Other protected areas include scenic, nature, scientific, historic and recreation reserves, wildlife reserves, protected private land and land protected under various conservation and open space covenants.

There are more than 1200 scenic reserves with a total area in excess of 300 000 hectares. They include areas of scenic interest such as native forests, limestone and glow-worm caves, thermal areas, coastal areas, lakes, rivers, waterfalls and scenic vantage points. The Waioeka and Tangarakau Gorges in the North Island, the Lewis Pass National Reserve, the Buller Gorge Reserves and Lake Kaniere in the South Island, and the South Cape Reserve in Stewart Island are among the better-known scenic reserves.

Nature reserves are established for the preservation of native plants and animals and generally consist of areas where rare plants are growing or which supply a suitable habitat for rare birds or other animals. Some of the 50-odd reserves in this category are on the mainland but most are on offshore or outlying islands. Nature reserves of particular public interest include Little Barrier Island in the Hauraki Gulf, the Cape Kidnappers gannet colony, Kapiti Island near Wellington, the white heron colony, at Okarito in South Westland, and the royal albatross colony at Taiaroa Head near Dunedin.

The Snares Islands, Auckland Islands, Campbell Island, Antipodes Island and the Bounty Islands together form the Subantarctic Islands National Reserve of approximately 74 885 hectares in area. They are the major breeding places for several species of birds and animals, including the yellow-eyed penguin, the royal albatross and the Hooker's sealion. The threat of rats or other predatory animals accidentally being introduced to the islands has led the Department of Conservation to allow access by permit only. Previous experience has shown that one pregnant rat arriving on a previously rat-free island could lead to the extinction of a vulnerable species.

Scientific reserves are generally smaller areas reserved to protect examples of rare or endangered plants or animals for scientific research or education. Entry may be prohibited if this is considered necessary to prevent disturbance.

Historic reserves include Maori rock drawings, the sites of prehistoric fortifications, the place of landfall of Abel Tasman, the landing places of Captain Cook, the sites of engagements during the New Zealand Wars, and buildings of historic importance. The Department of Conservation and the New Zealand Historic Places Trust co-operate closely in the investigation and administration of sites and buildings of historical or archaeological interest (see section 11.2, The national collection).

Recreation reserves include public domains, camping grounds and other public recreational areas administered by the Department of Conservation. Well-known examples include the Orewa Coastal Reserves, Auckland Domain, Ohope Beach, Queen Elizabeth Park (near Wellington), Momorangi Bay in the Marlborough Sounds, Kaiteriteri Reach in the Nelson district, and Hagley Park in Christchurch.

Wildlife reserves may be proclaimed over land of any tenure, prohibiting certain actions in respect of wildlife, but without affecting land ownership. There are three classes:

  • Wildlife sanctuaries preserve wildlife habitats from human or animal disturbance and protect wildlife species that are low in numbers or confined to sensitive habitats. The public may be partially or totally excluded.

  • Wildlife refuges provide havens for any class of wildlife, The public have freedom of access but firearms and domestic animals are prohibited.

  • Wildlife management reserves protect areas for the conservation and management of wildlife. The public has access for a variety of activities, including the hunting of game.

Marine reserves and parks

At present there are two marine reserves, the Cape Rodney-Okakari Point Marine Reserve, of 2959 hectares, and the Poor Knights Islands Marine Reserves of 2410 hectares. Marine resources may not be extracted from a marine reserve.

Marine parks are protected by a combination of the Fisheries Act 1983 and the Harbours Act 1950. There are three marine parks at present, Mimiwhangatangata Marine Park located on the north-east coast of Northland north of Whangarei; Tauharanui Marine Park located in the Hauraki Gulf north of Auckland; and the Sugar Loaf Islands Marine Park located off the New Plymouth coast.

Fire prevention

The Department of Conservation is responsible for fire protection in national parks and reserves, forest parks, unalienated Crown land and other state-owned areas, together with a 1500 metre fire safety margin adjoining all these lands.

Protected Natural Areas Programme

In addition to administering areas which are already under some form of protection, the Department of Conservation is responsible for augmenting the network of protected areas through the Protected Natural Areas Programme. The programme operates in two phases. First there are district surveys to identify the unprotected areas that best represent the range of natural ecological diversity characteristic of the district. This is followed by an implementation phase, working towards effective protection of these areas, under either public or private ownership.

Conservation authorities

On its establishment the Department of Conservation took over the administrative support of a number of conservation authorities from the former Department of Lands and Survey. These included the National Parks and Reserves Authority, the New Zealand Walkway Commission, the Nature Conservation Council, the regional national parks and reserves boards and the district walkway committees.

National Parks and Reserves Authority. This authority was established by the National Parks Act 1980. It comprises a representative from each of the Royal Society of New Zealand, the Royal Forest and Bird Protection Society, Federated Mountain Clubs, and three persons appointed by the Minister of Conservation after consultation with the Minister of Tourism and the Minister of Local Government, and four members of the public with special knowledge of, or interest in, national parks and reserves appointed by the minister. Its functions include the preparation of policy, the approval of management plans for individual parks, advising the minister on priorities for expenditure in the parks and making and considering proposals for new national parks and the addition of land to existing parks.

New Zealand Walkway Commission. The commission was established by Act of Parliament in 1975 for the provision of walking tracks over public and private land to give the public safe, unimpeded foot access to the countryside. Between the commission's inception in 1976 and 31 March, 1988, a total of 138 walkways had been established with a combined length of more than 1200 kilometres.

Nature Conservation Council. The council was established to provide independent advice on ways of minimising the impact of development work of the natural environment, and protecting New Zealand's natural resources. It is involved in such issues as roading, reclamation, power schemes, mining proposals, the impact of tourist-related development on the natural environment, and the conservation of flora and fauna. Conservation New Zealand, which co-ordinated annual Conservation Week activities, was a technical subcommittee of the council.

National parks and reserves boards. There are ten boards which administer the National Parks Act 1980. and the appropriate parts of the Reserve Act 1977, within the areas under their jurisdiction. Each board has 10 members appointed by the minister from people nominated by the general public. The board responsible for the area embracing Tongariro National Park includes the paramount chief of Ngati Tuwharetoa, a lineal descendent of Te Heuheu Tukino IV. The board responsible for the Egmont and National Park area includes a representative of the Taranaki Maori Trust Board.

These authorities were reviewed during 1988–89 and considerable changes in their composition, responsibilities and administration were likely at the time of going to press.

Conservation trusts

The Department of Conservation supplies administrative support for the following independent trusts:

New Zealand Historic Places Trust. This is a non-profit organisation which exists to identify, record and preserve New Zealand's historic buildings and archaeological sites and to encourage public interest in the nation's past. The trust is described in more detail in section 11.2, The national collection.

Queen Elizabeth the Second National Trust. This trust was established in 1977 to encourage and promote the provision, protection and enhancement of open space for the benefit and enjoyment of the people of New Zealand. An important aspect of the trust's work is the promotion and negotiation of open space covenants. These are legal agreements between the trust and a landowner or leaseholder to protect special landscape features for a specified time or in perpetuity. They are almost always initiated by the landholder. Covenants so far negotiated include wetlands, lakes, coastline, tussock lands, tracts of rural landscape and forest remnants. The trust may also purchase land and accept bequests, donations or gifts of land. It now owns several valuable properties such as Holland Gardens in Taranaki, the Robert Houston Memorial Reserve in Waitomo and Tupare in Taranaki. Other activities include landscape awareness projects, demonstration farms, and the protection of wild and scenic rivers. The trust acts independently of government as a statutory trustee.

Non-governmental conservation organisations

New Zealand has many private organisations actively involved in conservation and environmental issues. These vary from local clubs concerned to preserve some feature of the local landscape to national societies concerned to preserve the environment for its ecological, scientific, recreational or scenic value.

Contributors

  • 14.1 Department of Survey and Land Information; Department of justice; Department of Statistics; Valuation New Zealand; Iwi Transition Agency; Land Corporation Limited.

  • 14.2 Ministry of Forestry; Department of Scientific and Industrial Research; Ministry for the Environment; Ministry of Agriculture and Fisheries.

  • 14.3 Department of Conservation.

Historical

Department of Survey and Land Information; Department of Statistics; Department of Justice; Valuation New Zealand.

Further information

Land resources and ownership

The Conveyancing Bulletin. Butterworths (eight times a year).

Listings of residential, rural, commercial, and industrial sales. Valuation New Zealand (quarterly).

Report of the Department of Justice (Parl. paper E. 5).

Report of the Department of Survey and Land Information (Parl paper C. 14).

Report of Te Tira Ahu Iwi (Parl. paper E. 38).

Report of the Valuation Department (Parl. paper G. 26).

The Rural Real Estate Market in New Zealand. Valuation New Zealand (six-monthly).

The Urban Real Estate Market in New Zealand. Valuation New Zealand (six monthly).

Environmental and resource management

Catchment Control in New Zealand. National Water and Soil Conservation Authority,1983.

Report of the Ministry for the Environment (Parl. paper C. 11).

Statistics of the Forests and Forest Industries of New Zealand. Ministry of Forestry (annual).

National parks and reserves

Report of the Department of Conservation (Parl. paper C. 13).

Report of the National Parks and Reserves Authority (Parl. paper C 10).

Report of the Nature Conservation Council (Parl. paper C. 4).

Report of the Queen Elizabeth the Second National Trust (Parl. paper C 2).

Chapter 15. Agriculture

Farming and horticulture are major industries, providing a high proportion of New Zealand's export earnings.

Traditionally farming has centred on sheep and cattle to produce sheepmeat, beef, wool, dairy produce and hides, although since the 1970s new types of livestock have included deer, goats and fur-bearing animals such as fitch.

Cereal crops are grown on a limited scale mainly for the home market.

Horticulture has always provided well for the home market, but since the 1970s horticultural produce has become an important export earner.

Land used for meat and wool farming is mainly hill country and rolling downs. The lowlands, and coastal plains support dairy, arable, and horticultural production. Increasing use of coastal flat land for horticulture has been a major development over recent decades.

15.1 Current situation and trends

The agricultural sector experienced another difficult year in 1989 as it continued to adjust to the changed economic environment. It also had to contend with severe hardships brought about by adverse climatic conditions.

There were positive signs, however. Some encouraging improvements in world demand and prices for several commodities showed through; there were moves to reduce international protectionism; and signs of improved international competitiveness. Prices improved for dairy products, beef, lamb and kiwifruit, while wool and apple growers faced falling prices.

Progress was made in the GATT round towards reducing agricultural support and protection levels, and helping to foster a more market-orientated agricultural trading environment. There were moves by the EC, however, to further restrict access for butter and sheepmeat.

On the domestic front, the sheepmeat industry grappled with major restructuring issues as it sought ways to reduce high costs and inefficiencies caused by overcapacity, and to improve the effectiveness of export marketing.

Many pastoral farmers continued to struggle with high debt levels, high interest rates, and drought-induced feed shortages. Some, however, and especially dairy farmers, benefited from higher incomes than in previous years.

The ability of the agricultural sector to reverse downward trends in farm maintenance, inputs and productive capacity will depend to some extent on the effects of further restructuring in other areas of the economy.

Table 15.1. FARMLAND USE BY LOCAL GOVERNMENT REGION, AS AT 30 JUNE 1988

 Number of farmsGrassland and lucerneFruit vegetable and nurseryCropsPlantations of exotic timberTussock and danthoniaTotal area of farms*
* Including other land on farms not classified above.
 hectares (000)
Northland8,49766561121151,035
Auckland and Great Barrier Island8,038287111335393
Waikato8,7208566710251,096
Tongariro1,301341021438651
Thames Valley4,00623611271326
Bay of Plenty6,4442871652632704
East Cape2,158570648219815
Hawkes Bay3,5957561287420970
Taranaki4,7044351175557
Wanganui2,0425122103772706
Manawatu3,838514211814577
Wairarapa1,989436152431555
Horowhenua1,07357315379
Wellington55245005666
          North Island56 9575 99866569322078 530
Marlborough1,5082853633409885
Nelson Bays2,334139629427383
West Coast1,278159002732450
Canterbury5,547576662485441,357
Aorangi and Chatham Islands4,1516573119168451,742
Coastal North Otago2,22027812119589936
Clutha-Central Otago2,835642226591,2822,143
Southland5,233758138373441,319
          South Island25 1063 493232743334 0729 216
          New Zealand82 0639 491893311 2654 27917 746

Table 15.2. LAND USAGE BY FARM TYPE, AS AT 30 JUNE 1988

Farm typeNumber of farmsGrassland and lucerneFruit vegetable and nurseryCropsPlantations of exotic treesTussock and danthoniaTotal area of farms*

* Including other land not classified above.

† Gross income of 75 percent or more is derived from stated activity.

‡ From 51 to 74 percent of gross income is derived from first named activity and between 20 and 49 percent from second activity.

§ More than 50 percent of gross income is derived from stated activity.

∥ More than 50 percent of gross income is derived from livestock not elsewhere classified.

Includes flower growing, small-animal breeding, mushroom growing, tobacco and hop growing, beekeeping, research/educational farms, and farms not elsewhere classified.

 hectares (000)
Dairy fanning town supply1,205102-111110
Dairy farming factory supply13,003988-3491,082
Sheep farming15,5462,977180192,2715,760
Beef farming7,094440-12234821
Cropping78420-38-366
Dairy farming with other1,8121771426214
Sheep farming with beef6,1292,539120221,0904,113
Sheep farming with cropping1,020149-4518211
Sheep farming with other2,31348511819374966
Beef farming with sheep2,003416-1285623
Beef farming with other1,12769-13488
Cropping with sheep55152-46-1101
Cropping with other2019-11--21
Pig farming§77224-3-233
Horse breeding and training§1,69367-31376
Deer farming§1,54299-1125174
Goat farming§88523---129
Mixed livestock farming2,82750622322117775
Poultry including broilers§3545-1--7
Citrus orchards§32911---3
Pipfruit orchards§1,136612--121
Stonefruit orchards§42933--17
Kiwifruit orchards§3,015202011-49
Berryfruit growing§424521--8
Grape growing§30523---6
Other fruit n.e.c.§74485-1-16
Vegetable growing incl. tomatoes§2,2734526111189
Plant nurseries§26621-1-4
Plantations of exotic trees§1,55753--1,158151,711
Other farming1,199544144488
Idle land9,52514911-24474
               Total, all farm types82 0639 491893311 2654 27917 746

Table 15.3. FARM EMPLOYMENT, AS AT 30 JUNE 1988

Farm typeWorking owners, leaseholders, and sharemilkersUnpaid members of family assisting on farmPaid permanent employeesCasual workers
Full-timePart-time

* Gross income of 75 percent or more is derived from stated activity.

† From 51 to 74 percent of gross income is derived from first named activity and between 20 and 49 percent from second activity.

‡ More than 50 percent of gross income is derived from stated activity.

§ More than 50 percent of gross income is derived from livestock not elsewhere classified.

∥ Includes idle land, small-animal breeding, mushroom growing, tobacco and hop growing, beekeeping, research/educational farms, and farms not elsewhere classified.

   number 
Dairy farming town supply*1,76545249810059
Dairy farming factory supply*20,9934,7262,784606425
Sheep farming*15,8766,5832,442841830
Beef farming*5,7372,167308153104
Cropping*624207642321
Dairy farming with other2,703818404116125
Sheep farming with beef6,8442,3233,249620803
Sheep farming with cropping1,24249722110370
Sheep farming with other2,6531,299620164168
Beef farming with sheep1,95372748481126
Beef farming with other1,142489853862
Cropping with sheep6892701423128
Cropping with other2218236219
Pig farming8693453436838
Horse breeding and training1,63060670312465
Deer farming1,6407091625736
Goat farming813444231317
Mixed livestock farming§3,3301,488831241314
Poultry including broilers575138528366210
Citrus orchards3871123952160
Pipfruit orchards1,487386917281787
Stonefruit orchards52419515880135
Kiwifruit orchards3,5461,2121,4585642,562
Berryfruit growing51219992101326
Grape growing35511418357422
Other fruit n.e.c.89838920991310
Vegetable growing including tomatoes.3,1521,099998625963
Flower growing81421726599145
Plant nurseries37995634126280
Plantations of exotic trees5013061,36210841
Other farming1,191518624212283
               Total, all farm types85 04529 21220 8666 1629 924

Table 15.4. CAPITAL EXPENDITURE ON FARMS

ItemYear ended June
1985198619871988
* Includes construction of permanent yards, airstrips, bridges, roading, and stock or dairy water-supply systems.
 $(000)
Buildings256,144235,769136,437103,563
Construction*48,48744,31930,57624,352
Land development163,101108,31159,66958,932
Transport vehicles222,593114,244133,408123,780
Machinery221,732110,119103,08780,183
Working animals3,8853,1234,1571,723
               Total915 942615886467 334392 534

Topdressing

Topdressing with artificial fertilisers has been an important factor in the intensification of grassland farming. Most New Zealand soils need fertilisers, especially phosphates, to maintain and increase production. Superphosphate has been produced in New Zealand since the 1880s, using rock phosphates from Nauru and Ocean Island; although Christmas Island is now an increasingly important source of supply. Over the years there has been a marked changeover from straight superphosphate as the principal fertiliser for grassland and crops—usual variants are serpentine superphosphate or aerial superphosphate, or a mixture of superphosphate with potash, additional sulphur or a trace element.

Over recent years application of superphosphate fertilisers has fallen, in line with reduced farm incomes (and therefore expenditure), and during the year ended 30 June 1988 totalled 1 104 715 tonnes.

Lime is used to correct soil acidity and increase the availability of trace elements. In 1988, 583 789 tonnes of lime were applied.

Table 15.5. FERTILISER APPLICATION

Year ended 30 JunePhosphatic fertilisersOther fertilisersTotal
 tonnes (000)
19841 847.11 317.13 164.2
19851 865.41 243.03 108.4
19861 227.1710.11 937.2
19871 118.1606.31 724.4
19881 104.7618.81 723.5

Agricultural production indicators

The Department of Statistics' Agriculture Production Account is a statistical series that provides a summary of the activities of all market-oriented establishments classified under agricultural and livestock production or agricultural services (major groups 111 and 112 of the New Zealand Standard Industrial Classification). All types of farms are included, together with agricultural services operated by contractors, such as topdressing, weed-spraying, harvesting, threshing, shearing, and scrub-cutting. Other services included are herd testing and artificial insemination. Farms operated as trading enterprises by government departments and other organisations are included.

The ‘account’ includes all income derived from the activities of the establishments covered, including their characteristic farming activities, and also their ‘other’ productive activities. However, investment income (such as dividends and interest) accruing to the proprietors of farming establishments is excluded.

Table 15.6. AGRICULTURE PRODUCTION ACCOUNT: ANALYSIS OF INTERMEDIATE CONSUMPTION

ItemYear ended March
198419851986x19871988P
 $(million)
Purchase of livestock753876x659602564
Feed and grazing219254265250259
Animal health and breeding157187198181183
Weed and pest control99129x135132125
Fertiliser, lime, and seeds460619x443454425
Fuel and power295383x399359359
Repairs and maintenance555674x606546533
Freight141179x162169168
Other (not elsewhere classified)8991 078x1,0701,0761,039
 3,5774 380x3,9373,7683,655
Less, capitalised development9189x392319
               Total, intermediate consumption3 4864 291x3 8983 7453 636

Tables 15.6 and 15.7 show the consumption and production of major categories of products for the agricultural sector over the last five years.

Table 15.8 shows the index of the volume of agricultural production for the last five years. It should be noted that this index excludes inter-farm sales of animals, and the production of agricultural services, i.e., it relates only to ‘farm’ output of ‘land-based’ commodities. The index shows changes in the volume of production for 11 separate component product groups as well as for total farm production. The index has an expression base of the year ended June 1978 (= 1000). This index has been discontinued and 1987 is the last year for which it is available.

Table 15.7. GROSS AGRICULTURAL PRODUCTION

CommodityYear ended March
19841985198619871988
* Fringe benefits tax was introduced in April 1985.
 $(million)
Wool9351,2001 065x1,215373
Sheep518642400646690
Cattle7201,062779974935
Pigs89102104110110
Dairy products1,1981,4571,5291,1301,294
Poultry products143163176179186
Crops and seeds286326349311251
Fruit, nuts, and oilseeds238352386x531578
Vegetables274225266364324
Other horticultural products174176173207221
Agricultural services318357471x474538
Other products, n.e.c.94123168x220229
Value of change in livestock—
     Sheep6071x−89−43
     Cattle459209x−9223
     Pigs, Deer, Goats100x148x179x11551
Sales of live animals800x857x630x607590
Value of fringe benefits*--1
          Gross output5 986x7 264x6 882x6 9027 352

Table 15.8. INDEX OF VOLUME OF AGRICULTURAL PRODUCTION*

CommodityYear ended June
19831984198519861987
* Base: June 1978 (= 1000)
 volume index numbers
Wool11831176120011791131
Sheep1270120713131344x1189
Cattle1045872996914x1077
Pigs8889661070x1043x947
Dairy products11131230125913181145
Poultry products1229121112931267x1252
Crops and seeds10941266125413521288
Fruit, nuts, and oilseeds153218922,2983119x3,581
Vegetables10481060103010241140
Other horticultural products18522,2302,03317611813
Other farm products, n.e.c.2,5432,9963,2533697x5,422
               Total, all farm products11841218131313281134

Farming costs

A number of indexes showing the costs for goods and services incurred by agricultural producers are compiled by the Department of Statistics.

There are separate series available which measure production-related costs for: sheep and beef farming; dairy farming; mixed cropping; horticulture; pig, poultry and other farming; and agricultural contracting. Together they form a major component of the national Producers Price Index series.

Table 15.9. FARMING INPUTS PRICE INDEX*

QuarterSheep and beef farmingDairy farmingAll farming (excl. livestock)All farming (incl. livestock)
* Base: December quarter 1982 (= 1000)
1982—Dec1000100010001000
1983-Dec1012102310171033
1984—Dec1112111811161160
1985—Dec1256126312591299
1986-Dec1314131613121250
1987—Dec1385138713821331
1988—Mar1398139813951348
          Jun1408141514081351
          Sep1421144814251362
          Dec1428145314321370
1989—Mar1452147714561393
          Jun1484151514911444
          Sep1506157415261491

The six agricultural sub-indexes are weighted and combined to produce an All Farming Inputs Price Index, shown in tables 15.9 and 15.10.

A sub-index for expenditure on central and local government charges has been developed, with the series being available back to the December 1982 quarter, which ensures compatibility with the other expenditure sub-indexes of the Farming Inputs Price Index.

Table 15.1. FARMING INPUTS PRICE INDEX—ALL FARMING*

Expenditure groupPercentage of base expenditureDecember quarter 1986December quarter 1987December quarter 1988September quarter 1989
* Excludes wages, interest payments and government charges. Base: December quarter 1982 (= 1000)
Administration3.861521172618291932
Animal health and breeding3.881256137114261445
Dairy shed expenses0.561370144414691455
Electricity1.891360151316131616
Feed, grazing, cultivating and harvesting8.201245124013331541
Fertiliser, lime and seeds14.471338135913471558
Freight5.581251134513641359
Fuel and oil6.171042113810891070
Insurance0.881447151915451532
Packaging costs1.521229131513661394
Rent and hire1.751749184718671878
Repairs, maintenance and motor vehicle repairs17.761432149615781647
Sharemilking1.3087289911591607
Shearing5.651180127813861386
Weed and pest control3.491285139314091487
Livestock purchases23.041038115911621381
All groups excluding livestock76.961312138214321526
All groups including livestock100.001250133113701491

Agricultural organisations

For nearly a century government-funded advisory services have been available to New Zealand farmers. The country has been, and still is, a world leader in agricultural research and advisory services. This reflects the importance of agriculture to the New Zealand economy and exports.

Scientific research in agriculture is described briefly in section 13.2, Organisation of science.

There is also a broad range of administrative and special interest organisations in the sector; a network of local, regional and national farmers' associations to advance the interests of the industry; growers' and livestock breeders' associations; produce marketing authorities; and others. Some of these are discussed in the following sections.

Ministry of Agriculture and Fisheries. The ministry is the main government agency in the agricultural sector. It advises government on policy, conducts research, and provides advisory and other services to industry. Its function is outlined in section 3.3, State sector.

During 1987 the Ministry of Agriculture and Fisheries was restructured. It has since been made up of four business groups concerned with: science, technology development and technology transfer (MAF Technology); fisheries management research and conservation (MAF Fisheries); quality management systems (MAF Quality Management); and corporate services (MAF Corporate Services). The activities of MAF Technology are outlined in section 13.2, while those of MAF Fisheries are described in section 16.3.

MAF Quality Management is the business group most active in the agricultural sector. It provides a number of quality control systems and services seen by government as necessary to ensure a place for New Zealand produce in international markets. These include: border control; surveillance of plant and animal diseases and pests; negotiation of access to overseas markets; and certification of livestock and produce imports and exports. Below are the main MAF Quality Management services:

Agriculture quarantine service—New Zealand's isolation has provided a natural barrier against many of the world's more serious agricultural pests and diseases. Any breach of this barrier is potentially devastating, and strict quarantine laws are in place to prevent this. These laws are enforced by uniformed officers who carry out inspections at seaports and airports.

Animal health services—Animal health is encouraged through veterinary surveillance and the provision of animal health laboratories. Animal health laboratories provide diagnostic services to monitor diseases present in New Zealand livestock. The information gained is used, among other things, to ensure access of livestock and produce to overseas markets and to negotiate export testing requirements, and as evidence of the country's freedom from particular diseases.

Dairy services—Monitoring of quality control systems in farm dairies, milk stations, dairy factories and product testing laboratories protects the domestic consumer and gives backing to the ministry's certification of export dairy produce. Regular checks are made for potential sources of disease and for residues of veterinary drugs and agricultural chemicals.

Also provided are training systems for the dairy industry—covering food inspection and quality control.

Meat services—An inspection service is provided to the meat, game, farmed deer and export fish industries to ensure that quality standards and overseas market requirements are met. This involves ministry staff and virtually all meat and fish processing plants (which produced exports valued at more than $2 billion in 1988).

Plant services—The ministry has a long-established role in plant health and protection and also the certification of plant produce for export. A network of plant protection laboratories is established and the ministry's staff advise growers on horticultural systems, packhouse design, and treatment of crops after harvest.

15.2 Pastoral agriculture

Pastoral agriculture is practised throughout New Zealand, with beef cattle predominating in the Far North, dairying in Waikato and Taranaki, and sheep farming in the hills and in the south of the North Island. In the South Island, sheep farming is the main form of pastoral agriculture, with a sprinkling of beef cattle farmed in the high and hill country and wetter flat areas, and some dairying on the flat land of both coasts.

Livestock are rarely housed, but feeding of small quantities of supplements, such as hay and silage can occur, particularly in winter. Grass growth is seasonal, largely dependent on location and climatic fluctuations, but normally occurs for between eight and 12 months of the year. Stock are grazed in paddocks, often with movable electric fencing, which allows rotation of grazing around the farm. Lambing and calving are carefully managed to take full advantage of spring grass growth.

Phosphatic fertilisers are used extensively on New Zealand's predominantly grass/clover pasture. Nitrogen fertilisers are used to a small degree (see ‘Topdressing’ above).

Livestock numbers and types

Lines of development are influenced by overseas prices for farm products, including meat, wool, dairy products and, more recently, venison and goat fibre. While there is a time-lag associated with livestock breeding, livestock numbers indicate how farmers are responding to market trends. However, it must be remembered that climatic effects such as drought or floods can influence the general pattern.

Probably New Zealand's best known statistic is that it has more than 20 times as many sheep as people. Grasslands have been developed to the extent that the best sheep farms can carry up to 25 sheep per hectare throughout the year. The best dairy farms carry 3.5 cows per hectare throughout the year.

At 30 June 1982 the total sheep population was 70.3 million, beef cattle numbers were around 4.9 million, and dairy cattle 3 million. The sheep population declined sharply to around 60.6 million at June 1989, but the beef cattle population remained fairly static at around 4.5 million, and the number of dairy cattle has increased to 3.3 million.

Table 15.11. DISTRIBUTION OF LIVESTOCK, AS AT 30 JUNE 1988

Local government regionDairy cattleBeef cattleSheepPigsDeerGoats
 (000)
Northland3466001,709148100
Auckland (incl. Gt Barrier Island)212251860464482
Waikato7626424,0524873162
Tongariro182162,48612852
Thames Valley433127459251140
Bay Of Plenty2651531229226992
East Cape313882,77321746
Hawkes Bay104795,8811049149
Taranaki5241971548281438
Wanganui. 262713,93261942
Manawatu1482863,847222353
Wairarapa712033,299191063
Horowhenua4736181746
Wellington3112136220
          North Island2 897386132470256372947
Marlborough22941,612161431
Nelson Bays436275471844
West Coast63763791158
Canterbury571895,002673868
Aorangi (incl. Chatham Islands)491466,103374752
Coastal North Otago26882,609141235
Clutha-Central Otago131786,69162850
Southland301668,98096566
          South Island30399732 130157235354
          New Zealand3 2004 85864 6004146061 301

Sheep breeds. The most popular sheep in New Zealand is the Romney, an English breed which is well suited to the wet conditions on many farms. A number of breeds which produce both meat and wool have been developed by New Zealand breeders during this century. There is also considerable regional variation in the types of sheep grazed—to meet different climates and topography. Data on sheep breeds indicate that, of the 60.6 million sheep in New Zealand at the end of June 1989: 27.7 million (45.7 percent) were Romneys, 7.5 million (12.4 percent) were Coopworth, 4.8 million (7.9 percent) were Perendale, 2.7 million (4.4 percent) were Corriedale and 2.4 million (4.0 percent) were Merino. Ten million sheep were classified ‘unspecified’, and 3 million sheep as ‘other’ breeds.

Deer. Deer framing has developed since the early 1970s to become an important livestock industry. As venison finds a ready overseas market, most of the meat produced is exported. Venison was first exported in the late 1950s from wild deer herds. Feral deer have gradually been removed from the backcountry by helicopter-borne venison hunters and by live capture of deer to stock deer farms. In recent years elk from Canada and deer from Europe have been imported. Currently there are about 4000 deer farms registered with the Department of Conservation and they hold over 780 000 deer.

The Department of Conservation must be notified of farms on which deer are to be held. Deer farming is generally permitted in most regions but some species may be farmed only in specified areas. The first deer farm licence was issued in March 1970 although deer were legally held and bred in captivity from 1962 onwards. Red, Wapiti, and fallow deer are the predominant farmed species.

Farm venison exports totalled 40 000 tonnes in 1988 with an f.o.b. value of $32.3 million. Velvet (antler) exports totalled $11.7 million f.o.b. This compares with venison exports of 28 000 tonnes with an f.o.b. value of $24.7 million in 1987. Velvet exports for 1987 totalled $10.5 million f.o.b.

Goats. In the 1980s there was a marked increase in the number of goats being farmed commercially in New Zealand for their milk, mohair, and meat production as well as for weed control. At 30 June 1988 there were 1.3 million goats, of which 70 percent were being farmed for mohair, cashmere and cashgora production. About 30 000 does were being milked, and 350 000 goats were classed at ‘other’. At 30 June 1989 the total number of goats was 1.2 million. In the 1989 calendar year, 500 tonnes of mohair, 230 tonnes of cashgora, and 100 tonnes of cashmere were produced.

Table 15.12. SHEEP CATEGORIES

At 30 JuneRamsWethersBreeding ewesHoggetsTotal
Rams and wethersEwes
 (000)
19849071,34051,8752,47113,14669,739
19858711,28350,9802,30912,41067,854
19868311,37549,3673,55412,34267,470
19878001,52047,0003,04911,87664,244
19887671,59045,8973,84912,49864,600

Table 15.13. SIZE OF SHEEP FLOCKS

Size of flock at 30 June19841985198619871988
            1–999,3909,82810,62210,49411,164
      100–1992,4682,5302,7082,5362,679
      200–4993,9884,0893,9693,9003,938
      500–9993,6623,6313,6853,6533,619
1 000–1 4993,3603,3903,2953,2473,154
1 500–1 9993,3763,3593,3003,3913,255
2 000–2 4993,3303,2383,2143,1893,098
2 500–4 9997,3087,1796,9846,6106,691
5 000–9 9992,1612,0332,0561,8751,943
10 000 and over568535562520526
               Total flocks39 61139 81240 39539 41540 067
Average flock size1,7611,7041,6701,6301,612

Table 15.14. CATTLE CATEGORIES

CategoryYear ended 30 June
198619871988

* Heifers not yet in milk, and cows not in milk during season but intended to be used again for dairying.

Includes ‘bobby’ calves.

‡ The 1986 figure includes 33 454 cows culled from dairy herds. This statistic was not collected in 1987 or 1988.

Dairy stock—
     Cows and heifers, two years old and over—
               Cows in milk or calf2 270 0872 194 2212 167 141
               Others*82,13145,01241,541
     Heifers—
               One and under two years old532,306485,805451,100
               Under one year old458,954435,208506,722
     Bulls and bull calves intended for dairy breeding52,23432,08830,632
                    Total, dairy stock3 398 2913 194 7803 199 730
Beef stock—
     Breeding cows and heifers, two years old and over1 371 6051 395 9001 339 097
     Cows, two years old and over, not used for breeding172,360171,695165,563
     Heifers—
               One and under two years old503,361588,602497,349
               Under one year old556,188603,697604,023
     Steers, bulls of all ages, and other beef cattle2 243 8632 044 2842 270 136
                    Total, beef stock;4 880 8314 804 1784 858 168
                    Total, cattle8 279 1227 998 9588 057 898

15.3 Meat

The lamb, beef and mutton produced on New Zealand farms is overwhelmingly destined for export markets. Increasingly, lamb and mutton are being exported as cuts and in boneless form—although most sheepmeat continues to be exported as carcasses. Beef and veal are almost entirely exported in boned-out form or as bone-in cuts.

Table 15.15. MEAT PRODUCTION

ProductYear ended September
198519861987x19881989P
 tonnes (000)
Beef472.4451.6539.3554.0542.2
Veal14.316.015.116.116.6
Mutton227.4152.2213.1197.2221.6
Lamb500.9465.0406.6417.7393.5
Pigmeat47.747.644.545.545.0
               Total1 262.71 132.41 218.61 230.51 218.9
Source: Ministry of Agriculture and Fisheries.

A factor in 1988–89 was the drought in the eastern part of the country which resulted in slaughtering of adult sheep, being higher, and in carcass weights being lower than normal.

Table 15.16. LIVESTOCK SLAUGHTER AT MEAT EXPORT WORKS AND ABATTOIRS*

AnimalsYear ended September
19851986x198719881989P

* Excludes killing on farms.

Source: Ministry of Agriculture and Fisheries.

 head of stock (000)
Lambs39,96334,66931 599x30,38930,288
Sheep10,7566,7179,2967,9319,750
Adult cattle1,9821,8832 276x2,2182,287
Calves and vealers836952862891876
Pigs843843774782781

About two-thirds of all lambs tailed are killed each season and over 90 percent of lamb meat produced is exported. Domestic consumption of New Zealand produced meat is normally as follows: lamb (8 to 12 percent), mutton (43 to 50 percent), veal (12 to 19 percent), beef (20 to 26 percent) and pigmeat and poultry (both about 100 percent).

Table 15.17. MEAT EXPORT PRODUCTION

Type of meatYear ended September
19851986198719881989P
 tonnes (000) shipping weight
Lamb—carcasses350.8298.8231.9208.2186.4
               ‘—cuts102.5104.2x117.1x130.7135.9
Mutton—carcasses59.831.851.851.175.8
               ‘—cuts42.825.436.926.428.0
Beef—manufacturing174.3165.5201.9205.8215.7
               —other51.743.364.6x65.184.2
Veal7.26.78.6x6.07.3
Pigmeat
Other meats0.12.4
Variety meats56.944.757.2x41.839.6
Inedible meat and offal18.517.117.6x18.520.3
                  Total864.6737.5x787.6x754.6797.5
Source: Ministry of Agriculture and Fisheries.

New Zealand Meat Producers Board

The main responsibilities of the New Zealand Meat Producers Board are: meat export licensing; the grading, storage, and shipment of meat; market research and information; negotiating access to markets; the promotion of New Zealand meat; and encouraging improvement in the quality of New Zealand meat.

The board is funded by means of a levy on stock, imposed as a per head charge and collected at the time of slaughter. Funds from the levy totalled $16.2 million in the year ended September 1989.

Table 15.18. MEAT BOARD LEVIES, 1989

Class of meatCents per head*

* Excluding GST.

Source: New Zealand Meat Producers Board.

Lambs24
Other sheep and goats35
Bobby calves (under 27 kg)12
Vealers120
Other adult cattle240

The board has engaged in most activities in the export trade in the interests of the producer, influencing meat marketing policy through the regulation of shipments, control over quality, and the development of markets through promotion, and lobbying for access.

In its market support role the board promotes the sale of meat on an international scale. To this end it has established a network of offices overseas in Bahrain, Brussels, London, Tokyo and Washington.

Meat marketing

Most meat produced in the world is supplied to domestic markets, and only about 8 percent of world output enters into international trade. Among the few countries with significant levels of exports are Australia, New Zealand, the United States, Argentina, the Netherlands, Denmark, and the Irish Republic. The principal importers are the countries of Western Europe (in particular, the United Kingdom), the United States, the Soviet Union, and Japan. It is significant, however, that although the European Community countries are substantial meat importers, much of the current trade now takes place between member countries of the Community as governed by the Common Agricultural Policy regulations.

The major markets for New Zealand meats are Iran and the United Kingdom for lamb; Japan, the Soviet Union and the United Kingdom for mutton; and the United States, Canada and Japan for beef. These six markets accounted for 74 percent of New Zealand's total meat exports in 1988–89, up from 70 percent in 1987–88.

Other growing markets for New Zealand meat in the 1988–89 season were: for lamb—Japan 18 490 tonnes, West Germany 13 123 tonnes, Greece 12 074 tonnes, Jordan 9709 tonnes; for mutton—Taiwan 3386 tonnes, West Germany 2859 tonnes, Greece 2796 tonnes; for beef—Taiwan 5312 tonnes, Australia, 3293 tonnes, Hong Kong 2584 tonnes, South Korea 2250 tonnes.

Sheepmeat. During the 1988–89 season lamb exports increased by 1.7 percent to 328 026 tonnes. Exports to the United Kingdom rose slightly from 102 400 tonnes in 1987–88 to 102 800 tonnes in 1988–89. Lamb exports to Iran also increased from 54 300 tonnes in 1987–88 to 56 200 tonnes in 1988–89. The main growth area was in exports to Egypt which rose from 5000 tonnes to 8400 tonnes. Other markets which showed increases in volume were West Germany, Italy, Spain and Jordan. The greatest decline was in exports to Peru, with exports of 16.6 tonnes in 1987–88. However, no lamb was exported there in 1988–89.

Mutton exports in 1988–89 increased by 27 percent to 96 400 tonnes due to a rise in exports to the Soviet Union and the United Kingdom. Exports to the Soviet Union increased from 4400 tonnes in 1987–88 to 29 000 tonnes in 1988–89. Mutton exports to the United Kingdom increased by 58 percent to 13 200 tonnes.

Beef and veal. New Zealand's biggest market for beef and veal in 1988–89 was the United States, with shipments totalling 212 100 tonnes. The next largest market was Canada, with 26 000 tonnes.

Imports of beef into the United States are subject to ‘voluntary restraint’ agreements under a counter-cyclical meat import law. If ‘voluntary restraints’ are not agreed on by the supplying countries then quotas may be imposed. Under this system New Zealand, along with other suppliers, agrees to restrict the quantity of quota meat shipped for arrival in the United States during the calendar year to a negotiated tonnage if the global estimates of United States imports exceeds a ‘trigger’ level. Restraints were required in 1988. Canada also operates a counter-cyclical meat import law to control beef imports although greater discretionary powers are vested in the Canadian government as to whether, and at what level, quotas are to be imposed.

Meat grades and types

A standard system of classifying grades of meat is used in New Zealand. Export meat is graded according to the type of animal, weight, age and fat content. The grades are established by the New Zealand Meat Producers Board.

Sheepmeat

Lamb—is a sheep of less than 12 months of age or which does not have any permanent incisor teeth in wear. Animals born in the New Zealand spring will be termed lambs until 30 September in the following year. The grades used for classifying lambs are given in table 15.19. Grade A, Y, and P carcasses can be exported with no trimming of excessive fat. Grade T and F carcasses are trimmed of excessive fat prior to export as cuts. Cutter grade carcasses (grade C) are not eligible for export in carcass form due to trimming or mutilation Intact cuts from these carcasses may be exported. Grade M. the manufacturing grade, includes carcasses which are too thin for export, are damaged, or weigh less than 9 kilograms but are too fat for the A grade.

Table 15.19. LAMB GRADES

Hot weightFat content
AYPTFCM
 Almost devoid ALightMediumHeavyExcessiveMixedMixed
Less than 9.1 kg
9.1–13.3 kg YLPLTLFLCLM
13.3–17.1 kg YMPMTMFMCM
17.1–21.3 kg YXPXTHFHCH
21.3 kg and over  PH   
Source: New Zealand Meat Producers Board.

Hogget—is a young male sheep or maiden ewe not qualifying for the lamb grade and having no more than two permanent incisors in wear. Hogget carcasses graded HX have a light fat content and HL grade carcasses have a medium fat content. Manufacturing grade carcasses are classified as mutton.

Ram—is an adult uncastrated male sheep having more than two permanent incisors in wear. The grade R covers all weights of rams.

Mutton—includes both ewes and wethers with more than two permanent incisors in wear. A wether must not show any of the accessory male characteristics. Carcasses graded MM are almost devoid of external fat and include all weight ranges. Carcasses graded MX have a light fat content while ML grade carcasses have a medium fat content. The MX and ML grades are further classified by whether the weight is under or over 22 kilograms. For all weight ranges, MH grade carcasses have a heavy fat content, MF grade carcasses have an excessive fat content, and MP grade is used for sheepmeat destined for processing.

Beef

Steers, heifers, cows and bulls—As a basis for determining the fat-cover category into which beef carcasses fall, the depth of subcutaneous fat over the fourth quarter of the eye muscle and the 12th rib is measured. The measurements given in table 15.20 are used as a guide by graders when classifying beef. For P and L grades the class is further divided into L1 or P1 for carcasses which have a well-muscled hindquarter and L2 or G for carcasses which are weaker in the hindquarter.

Table 15.2. BEEF GRADING SYMBOLS

SymbolFat thickness mmUse

* Cow carcasses of L fat content are included in the cow M classification.

Source: New Zealand Meat Producers Board.

Mup to 1Processing
L*1–3Lean cuts or processing
P4–7Prime export cuts
K8–12Prime export cuts
G13–18Cuts after trimming
T19–24Cuts after substantial trimming
Eover 24

A steer is a male bovine castrated when young. A heifer is a female bovine which has no more than six permanent incisors, while cows have more than six permanent incisors. A bull is an entire bovine with masculine characteristics. Bull carcasses are classified only on weight. Beef weight ranges are measured in 25 kilogram units from 195.5 kilograms to 345 kilograms. The weight ranges for carcasses below 220 kilograms and above 270 kilograms varies with the type of carcass. Carcasses under 160 kilograms are graded M irrespective of the amount of fat.

Veal and bobby calves—Bobby veal carcasses are derived from milk-fed bovine calves generally under two weeks old. They are not subdivided into grades or weight ranges but only carcasses between 10 and 27 kilograms are eligible for export.

Vealer carcasses are derived from maiden female, castrated male, and entire males which are not showing masculine characteristics. The animals can be aged up to 14 months. The meat is finely textured and pinkish in colour, while the fat is white. Vealer carcasses weighing up to 60 kilograms are graded M, carcasses weighing between 60.5 kilograms and 115 kilograms are graded L, and those between 115.5 kilograms and 160 kilograms are graded P.

Meat prices

The International Meat Trade Association in the United Kingdom compiles weekly London wholesale meat prices, the basis of quotation being ‘ex-hooks to retailers at Smithfield Market’. In the absence of international standardised prices, the London wholesale prices in table 15.21 give the only indicative measure of world prices. Approximately 42 percent of the value of all New Zealand exports of frozen and chilled meat is generally accounted for by lamb.

Table 15.21. LONDON WHOLESALE LAMB PRICES

End of last week in MarchLamb (new season's product)
Prime gradeY Grade
8 to 12.5 kg13 to 16 kg16.5 to 19.5 kg8 to 12.5 kg13 to 16 kg

* 9.0 kg-12.5 kg.

† 16.5 kg to 20 kg.

Source: New Zealand Meat Producers Board.

 New pence per kilogram equivalent
1985152.1*152.1142.2*151.0*151.0
1986145.5*147.7143.3*141.5*144.4
1987126.8*132.3*131.2*121.3*131.2
1988130.1*124.6114.7130.1*122.4
1989127.9*131.2127.9*127.7*130.1

Schedule prices. Most meat processors publish their schedules of buying prices in the Ministry of Agricultural and Fisheries weekly ‘Agrifax’ schedule, daily newspapers and also in their company newsletters. Producers can sell their stock on schedule, on a pool account system, on the hoof, or through a producer co-operative.

The opening schedules for the last three seasons are given in table 15.22. The schedule prices quoted for 1987–88 through to the 1989–90 season are dressed weight ex-freezer offered by meat exporters. The prices for lamb and mutton are for bare meat only, with an additional payment being made for the wool and pelt.

Table 15.22. OPENING NORTH ISLAND SCHEDULE PRICES

Class of meat1984–851985–861986–871987–881988–891989–90
 cents per kg
Lamb—
     PL. 9.0–12.5 kg218.5130.0165.023.466.196.5
     PM, 13.0–16.0 kg202.5142.0165.072.998.9173.0
     YL, 9.0–12.5 kg226.5142.0161.030.377.896.0
Mutton—
     MX, 22 kg and under105.552.574.012.414.734.9
     MM, all weights93.055.080.0−5.0−5.023.4
Beef—
     PI—Steer, 245.5–270 kg240.0185.0197.5167.2212.3278.1
     LI—Steer, 245.5–270 kg240.0185.0197.5......
     M—Cow, 145.5kg-170 kg196.0161.0173.0131.7168.8236.7
     Bull, 220.5–245 kg244.0210.0208.071.2218.4288.3
Source: New Zealand Meat Producers Board.

15.4 Wool

New Zealand sheep are largely dual purpose meat/wool animals and their wool is predominantly strong; 70 percent of the clip is greater than 33 microns in diameter. This contrasts sharply with Australian wool, of which over 90 percent is less than 28 microns. New Zealand is by far the largest producer of strong wools, contributing 40 percent of the world total and over four times as much as the Soviet Union, the next significant producer. When the quantity of strong wool entering world trade is considered, New Zealand's share becomes even greater: over 70 percent of traded strong wools are estimated to originate in New Zealand.

Slipe wools represent around 11 percent of total New Zealand wool production and are a by-product of the meat industry. They are produced by removing wool from the pelts of lambs and sheep during the fellmongering process. New Zealand is one of the largest producers of slipe wools in the world, with the United Kingdom being the main customer. Slipe wools, due to their softness, are particularly suitable for end uses such as Shetland knitwear, blankets and carpets.

The strong nature of the New Zealand clip means much of it is used in products such as carpets, handknitting yarns, and blankets; although uses to which New Zealand wool is put vary markedly from country to country.

Wool production. Although New Zealand's sheep flock ranks fourth in the world, the country's raw wool production is second only to Australia on a clean mass basis. This is due to the high clip yields and lower quantities of grease and other contaminants in the wool.

Table 15.23. WOOL PRODUCTION*

Season ended 30 JuneFlock sizeYield/headTotal wool production (greasy)Average auction price (clean basis)

* Wool quantities are measured at point of sale rather than at source, and are therefore not strictly measures of production.

Source: New Zealand Wool Board.

 (million)(kg)tonnes (000)cents/kg
198569.7x5.4373508
198667.95.3358463
198767.55.2350556
198864.25.4346604
198964.65.3341688

New Zealand Wool Board

The New Zealand Wool Board was established to get the best possible long-term returns for New Zealand woolgrowers. To do this it promotes the use of New Zealand wool in existing or new markets; performs a marketing support role for New Zealand wool; and encourages efficiencies in the preparation, handling, distribution, shipping, and selling of wool. It also promotes and undertakes extensive research into wool and sheep—with the Wool Research Organisation of New Zealand the focal point of most of this effort.

The main sources of income for the board are: a levy on gross wool receipts ($98.2 million in the 1988–89 season) and interest on investments ($46.7 million for the 1988–89 season). The levy is set at 6 percent.

Sales and marketing. The New Zealand Wool Board operates a marketing support scheme. It values all wool offered at auction and supports the market according to its commercial judgement. In doing this it may buy wool. The board sells from the stockpile of bought-in wool, normally through the established wool trade in New Zealand. The wool is also valued for the purpose of ensuring a minimum return to growers (the minimum floor price). In the 1988–89 season the minimum average price was set at an average of 500 cents per kilogram, clean weight. When the sale price for a lot at auction falls below the appropriate minimum price and the board does not buy this wool, the difference is paid to the grower as a supplementary payment. A supplement is also paid on privately-sold wool, provided the buyers display it under specified conditions for appraisal by the board.

The board's market-support operations are funded by its general capital and reserves, which totalled $103.6 million at 30 June 1989. Supplementary payments under the minimum prices scheme are funded by a minimum-price funding levy introduced in 1976.

A wool auction sales committee, comprising representatives of the board, the New Zealand Woolbrokers Association, and the New Zealand Council of Wool Exporters draws up and supervises an annual roster of wool auctions.

The board keeps a list of registered private buyers, registered wool exchange operators, and scourers. It is involved in the development of market innovations, such as the sale of wool by sample. It is also a negotiator of freight rates, and operates a number of wool stores for its own use. Board economists conduct a market intelligence service covering production, disposal, and market prices.

Research and development. The board has a comprehensive research and development programme. Priorities are established annually, taking into account market signals and woolgrowers needs. Research proposals are invited from New Zealand and overseas groups interested in working with the board on the development of new and improved products and processes using New Zealand wool.

In the year ended 31 March 1989 the board invested $4.1 million in research and development with most of this going to the Wool Research Organisation of New Zealand for textile research. Established in 1960 at Lincoln, Christchurch, the Wool Research Organisation conducts fundamental research on the wool fibre and applied research on scouring, processing, and performance of New Zealand wools.

The International Wool Secretariat exists to improve the long-term income of wool-growers in its member counties by increasing world-wide demand for wool.

As the international marketing arm for the New Zealand Wool Board, the International Wool Secretariat is active at all stages of the processing and marketing chain. It provides services to manufacturers and retailers, and promotes wool to consumers in the overseas markets where New Zealand wool is used.

All International Wool Secretariat activities are controlled by a board on which the interests of New Zealand woolgrowers are permanently represented by three New Zealand members including the chairman of the Wool Board.

The International Wool Secretariat is a partnership of New Zealand, Australia, South Africa and Uruguay. It has its headquarters in London, a major process and product development centre at Ilkley, England, and a further 40 operating units world-wide. In the 1988–89 season New Zealand's share of the budget of the Secretariat was $57.3 million.

Markets for wool

The most common way of selling wool is by open auction in New Zealand; 64 percent was sold this way in 1988–89. The auction season runs from July to the following June. Sales are held at three centres around the country and they attract buyers representing all the main wool importing countries. Growers can also sell their wool to merchants privately in New Zealand (24 percent of sales in 1988–89).

The Wool Board's market support policies help to steady the market in times of uncertainty. In 1988–89 Wool Board stocks remained unchanged at 16 500 tonnes at the end of the season, and the average auction price was 14 percent above the previous season in actual dollars (9 percent in real terms), reflecting strong international demand for wool. Demand has since fallen.

Table 15.24. WOOL SOLD AT AUCTION

Season ended JuneGreasy and scoured new season wool (clean equivalent)Average clean price per kilogramTotal sale valueAverage clean auction price (1988–89 cents)Board average minimum price per kilogram (clean)
 tonnes (000)cents$(million)centscents
1985186507.0941.9777424
1986177463.3820.5624443
1987160555.0888.0643443
1988167603.61 008.6632476
1989164687.61 128.4688500
Source: New Zealand Wool Board.

Around 90 percent of the New Zealand clip is estimated to leave the country in a greasy, scoured, or slipe form. Over 60 percent of exports are now scoured, and exports of carded sliver and top are increasing annually. Of the 10 percent of the clip processed in New Zealand, roughly half is exported in product form.

It is important to distinguish between initial and final destinations of New Zealand wool exports. Initial destinations have changed substantially over the years, and there are sometimes very large changes from year to year. Export destinations for wool are shown in table 15.25. During 1988–89 the largest importers were China, the Soviet Union, the United Kingdom and Japan.

With the exception of China, final destinations of end-products made from New Zealand wool have, in contrast, been rather more stable. Much of the wool tends to be used in the same countries as it was years ago, even though the location of the early-stage processing may have changed. Countries such as the United States and West Germany use less raw wool, but import made-up carpets from other countries.

Table 15.25. EXPORT DESTINATIONS OF NEW ZEALAND RAW WOOL

Country1984–851985–861986–871987–881988–89
 tonnes clean equivalent (000)
Japan36,98025,11525,10820,98719,410
United Kingdom36,41632,01229,93423,15119,694
Soviet Union17,69424,84725,13222,02324,129
France18,4958,8506,8466,5867,314
China35,89727,30748,60550,06962,874
United States12,47011,70413,18811,91912,872
West Germany15,70614,37713,15012,81110,996
Italy12,51710,0118,2635,9375,845
Netherlands10,87913,67613,74810,2668,200
Belgium18,41913,80214,55215,21313,412
Australia and Pacific Is.11,40610,92910,12711,50210,719
Other51,25157,17360,75656,20148,801
               Total exports278 130249 803269 499246 665244 246
Source: New Zealand Wool Board.

Net domestic consumption of wool in New Zealand is among the highest in the world on a per head basis. In 1988 this was estimated at 3.11 kg per head compared with 2.12 kg in Australia, 2.2 kg in West Germany, 1.63 kg in the United Kingdom, and 0.62 kg in the United States.

Because New Zealand wools are predominantly strong they do not compete directly with the output of other major producers. Table 15.26 shows the relative positions of the main exporting countries.

Table 15.26. MAIN EXPORTERS OF WOOL, 1987–88

CountryClean weightPercent of total
 tonnes (000)
Australia49059
New Zealand24730
Argentina466
South Africa213
Uruguay233
Source: New Zealand Wool Board.

Wool product exports. The most important wool exports from New Zealand are floor coverings and yarns. After showing steady growth for several years, the value of floor coverings exported in 1988–89 decreased by 10 percent, to $70 million (f.o.b.). Yam exports were valued at $106 million (f.o.b.), a 20 percent increase on the previous year. Other wool-based export items include: raw and processed sheepskins, tops, wool waste, blankets, fabrics, knitwear and other clothing.

Earnings from total wool products increased slightly to $254 million in 1988–89. These exports are summarised in table 15.27.

Table 15.27. WOOL PRODUCT AND SHEEPSKIN EXPORT EARNINGS*

Product1985–861986–871987–881988–89

* Years ended 30 June.

Source: New Zealand Wool Board.

 ($ million f.o.b.)
Wool floor coverings102.879.478.470.2
Wool yarn84.296.188.1105.9
Sheepskins—raw7.013.216.520.7
Sheepskins—processed19.3x19.5x26.529.6
All other44.6x45.9x24.727.8
          Total257.9.V254.1x234.2254.2

15.5 Dairy produce

Dairy products are a major source of export earnings for New Zealand, and, with the exception of milk and some dairy products for local consumption, the industry is geared towards overseas markets—which account for about 80 percent of all milk produced.

There are four major product groupings manufactured from liquid whole milk by dairy factories in New Zealand: milk powders such as skim-milk powder (SMP), whole-milk powder (WMP), and buttermilk powder (BMP); cream products, such as butter, anhydrous milkfat (AMF), and ghee; cheese; and protein products such as casein and caseinates.

Liquid whole milk can be broken down into three chief components: milkfat, solids-nonfat (protein), and water. Skim-milk powder is made from skim milk after the cream (milkfat) has been separated from the liquid whole milk. Whole-milk powder is manufactured directly from the liquid whole milk, without separating off the cream. Buttermilk powder is made from buttermilk, a by-product of the butter manufacturing process. Most of the butter produced is of a ‘sweet cream’ type, and anhydrous milkfat and ghee are further refinements of butter. The predominant cheese variety manufactured in New Zealand is cheddar or cheddar types, although the manufacture of speciality cheese types has recently shown considerable growth. The final product grouping, milk proteins, are derived from the by-products of skim milk and also from the by-products of other dairy product manufacture such as cheese.

Table 15.28. MILK PRODUCTION AND UTILISATION

Product1984–851985–861986–871987–881988–89P

* Year ended 31 March.

† Includes milk fed to stock and waste.

‡ Some milk sent to dairy factories is sold for liquid milk consumption.

§ Year ended 31 August.

Source: New Zealand Dairy Board.

 million litres
Production*
     Total milk production7,6478,0097,0317,7057,275
Utilisation
Volume of town milk sales350339336342341
Milk sent to dairy factory§6,9657,3266,3856,9206,545

Table 15.29. DAIRY FACTORY UTILISATION OF MILKFAT AND PROTEIN*

Product1984–851985–861986–871987–881988–89

* Years ended 31 May.

Source: New Zealand Dairy Board

 tonnes (000)
Milkfat utilisation
Butter247.7256.0211.0240.0205.0
Cheese39.345.941.945.444.0
Other whole-milk products45.447.648.047.164.0
               Total332.4349.5300.9332.5313.0
Protein utilisation
Cheese........40.7
SMP........63.7
Other milk powders........58.8
Casein........68.5
Other products........2.3
               Total........234.0

Table 15.3. DAIRY FACTORY PRODUCTION*

Product1984–851985–861986–871987–881988–89P

* Years ended 31 May.

Source: New Zealand Dairy Board.

 tonnes (000)
Creamery butter243.1275.7223.6x241.9200.0
Whey butter1.81.81.71.91.8
Anhydrous milkfat (AMF)32.614.315.6x22.933.3
Frozen cream6.36.46.2x6.17.2
Cheese117.7127.3113.2x128.4124.2
Condensed and evaporated milk2.92.83.5x3.60.5
Whole-milk powder120.1152.8156.2x171.2189.0
Infant food11.813.613.9x12.813.0
Skim-milk powder217.0186.7148.9x171.1158.0
Buttermilk powder28.627.923.5x27.023.2
Casein products64.275.461.8x65.855.6
Lactose11.513.714.4x17.717.9
Whey powders11.412.59.514.313.0

Dairy organisations

There are presently 18 co-operative dairy companies, which operate around 50 dairy factories for the production of manufactured dairy products. Each company is governed by a board of directors who are elected by farmer suppliers. The co-operatives utilise funds supplied in the form of share capital by the farmers.

The companies produce all dairy products manufactured in New Zealand. On an annual basis the companies convert approximately 7 million tonnes of milk into approximately 800 000 tonnes of dairy products, of which around 700 000 tonnes is exported. The balance is consumed on the relatively small domestic market.

Milk sold on the domestic market is usually produced by different farmers from those who supply dairy factories. Until 1988 the town milk industry, as it is known, was regulated by the New Zealand Milk Board. The board was abolished with the deregulation of the town milk industry from 1 April, 1988.

A three-member New Zealand Milk Authority has since been established with the main function of licensing milk processors, who are responsible for providing a home milk delivery service within a defined district.

Where the earlier Milk Board prescribed quantities and prices to processors and their suppliers, deregulation means the two groups are now free to negotiate terms themselves.

New Zealand Dairy Board. The board is the single organisation responsible for marketing dairy produce manufactured for export. As the exporting and administrative arm of the industry, it links manufacturing and industry growth plans with export market requirements.

The board buys export dairy products from the co-operative manufacturing companies. It markets the goods overseas, and returns the proceeds to the companies, less marketing and administration costs. These monies are then passed to the dairy farmers.

The board exports to some 100 countries annually and has its own marketing outlets in 25 of these. About half the volume of New Zealand dairy exports is sold in Europe, North America, and Japan. The other half is exported to the developing countries, in particular to South-east Asia, and to South and Central America.

The board sells products through its numerous offshore companies, and through local agents, or, in some cases, directly on a contract basis.

Overseas marketing

The international market for dairy products is characterised by its small size relative to total world milk production, with only about 5 percent of production entering international trade. Because of this the market is especially vulnerable to shifts in climatic, commercial, and political forces. Marginal production changes in the major producers can trigger massive shifts in supplies of, and prices for, products on the international market.

The major dairy exporters are: the European Community; New Zealand; Australia; and to a lesser degree the United States and Canada. These five countries supply between 90 and 95 percent of dairy products traded on the international market. Relatively smaller quantities are exported by the Nordic countries and from Eastern Europe.

Access to markets. For social and political reasons governments in many countries often assist farmers through price-support mechanisms. High domestic prices which are fixed with little regard to commercial reality in turn stimulate production but discourage consumption, thus creating surpluses. The disposal of these surpluses, by means of government export subsidies, undermines the stability and the value of the international dairy market.

The disposal of dairy surpluses by other countries creates difficulties for New Zealand. For most countries dairy export earnings are not a major source of foreign exchange. New Zealand is one of the few countries for which the international dairy market is of particular significance. Moreover, New Zealand dairy production and export is unsubsidised.

Consequently New Zealand maintains a strong presence in international councils attempting to achieve a more stable balance between demand and supply in the international dairy trade. The Government and the Dairy Board also work to ensure that existing lines of limited access to international markets are not compromised by moves to further restrict imports, particularly through the General Agreement on Tariffs and Trade (GATT), and also through direct bilateral consultation.

The late 1970s ‘Tokyo Round’ of GATT Multilateral Trade Negotiations resulted in the negotiation of the International Dairy Arrangement to replace an OECD agreement on whole-milk powder and earlier GATT agreements on skim-milk powder and anhydrous milkfat. The new arrangement (signed by New Zealand in December 1979) extended the product coverage and provided for an annual review of minimum prices at which products can be traded internationally. It also established the International Dairy Products Council to monitor the international market situation and provide a forum for seeking solutions to problems in international dairy trade.

At present the 95 contracting parties to the GATT are engaged in a new round of trade negotiations. The latest round was launched in Uruguay in 1986 (see section 4.2, International organisations). It is the first round of negotiations to include on its agenda the freeing up of agricultural trade, which is characterised by import restrictions, and production and export subsidies. New Zealand is taking an active part in the debate regarding agricultural trade reform.

As well as reduced cheese access into Europe since the 1970s, New Zealand has had to contend with reduced access to the United Kingdom butter market. The European Council of Agricultural Ministers has determined that the volume of butter imports should fall progressively from 74 500 tonnes in 1988 to 55 000 tonnes in 1992.

Composition of exports. New Zealand's dairy product mix in any year is determined by a number of factors. These include the yield of various dairy products (or the particular volumes and groupings of products which can be made from a certain quantity of milk), the requirements and state of the international market, and the capacity of the industry to manufacture various product combinations. In general, New Zealand dairy product manufacture and export (and indeed milk production itself) has shown considerable stability over the past 20 years, with the only exception being whole-milk powder, where production and exports have grown in recent years, reflecting significant growth in the international market.

Export markets. The dairy industry has been working to diversify its markets for many years. Today, New Zealand's major markets vary for different products. Although Britain remains New Zealand's mow valuable market for butter, the Soviet Union is also important, and the Middle East and North Africa have risen into prominence as markets.

The primary markets for casein and cheese are the United States, Japan, and the European Community. New Zealand is the world's largest exporter of casein and caseinate products and is also moving forward in its range of other specialised milk protein products. These are highly specialised, high-cost products which are put to a myriad of uses, from automobile manufacture to meat processing and alcohol distillation. They are based on traditional casein manufacture and are also derived from the processing of whey.

The most important milk-powder markets are in Central and South America and Southeast Asia, but there has also been growth in skim-milk powder exports to the Middle East. In these countries the demand for powder products (and for anhydrous milkfat), is based on the need for re-combining powders to produce liquid milk for drinking.

Continued diversification of markets, however, is limited as the international dairy market—although free of trading restrictions—is finite and relatively small. The accompanying diagram shows sales of New Zealand dairy products by region in 1988 and 1989. Total New Zealand dairy produce sales revenue was $2 605 million in the year to 31 May 1989, compared with $2 235 million in 1988.

Dairy produce prices

Dairy farmer suppliers are paid for their milk by their co-operatively owned dairy factories on the basis of dairy product prices on the international market. The system of establishing the price paid to dairy companies for product purchased for export by the board, and hence the price paid to the milk supplier, is set out in the Dairy Board Act 1961. This system is based on the desired mix of products and (a) the milkfat and (b) the solids-non-fat (or protein) value of the milk which is established by the board at the start of each season and reviewed during the season.

The Dairy Board Act was amended during 1988 to reflect government's withdrawal from overseeing price setting. Other changes to the Act allowed for the freeing up of the board's accounting and credit-raising practices and the removal of a requirement to hold accounts with the Reserve Bank.

Payments to suppliers for the past five seasons are given in table 15.31, which shows that although milkfat prices have remained static over recent years, there has been a rapid increase in the value of the protein value of milk.

Table 15.31. PRICES FOR MILKFAT AND SOLID-NON-FAT

Season ended 31 MayMilkfat valueS.N.F. valueEnd of season distributionTotal whole-milk value
 cents per kilogram of milkfat
198526811315.48396.48
1986275125400.00
1987213107320.00
1988211148360.00
198924925130.00530.00
Source: New Zealand Dairy Board.

15.6 Pigs, poultry and bees

Pigs

Pig numbers fell in the late 1960s as farmers began increasingly to supply whole milk to dairy factories instead of separating off the skim milk, which was frequently used to feed pigs. There was increased emphasis on grain-feeding, and a significant increase in pig numbers in the grain-producing areas of the South Island in the following years. More recently the numbers of pigs have shown a steady decrease. Total pig numbers as at June 1989 were 411 000.

Today's pig producers number some 4500, 300 of whom produce approximately 80 percent of total production.

All production is for domestic consumption, and about 2000 tonnes is imported annually mainly for processing into ham. New Zealand is perhaps unique in that there appears to be an unsatisfiable demand for this product. The per capita consumption of pigmeat is currently 14.2 kg and steadily rising, particularly fresh pork, with bacon declining.

Table 15.32. PIGS

At 30 JuneBreeding sows one year old and overOther pigs of all ages (including boars)Total pigs
198448,471387,925436,396
198550,688403,774454,462
198647,612387,400435,012
198749,653375,889425,542
198847,183366,375413,558

New Zealand Pork Industry Board. This body comprises five pork producer members and four other appointed members. Originally part of the dairy industry, the then Pig Producers Council operated as a sub-committee of the New Zealand Dairy Board. In 1974 the council became established as an independent body under an Act of Parliament. Its function is to promote and organise the orderly development of an efficient pork producing industry.

Recently the board has channelled some of its resources into the promotion and marketing of pig meat. It continues to operate a technical and consultancy service for producers and a pig improvement programme. The board owns, by way of a nucleus breeding unit, some 175 sows of the Large White and Landrace breeds. Six multiplier farms provide Large White Landrace cross gilts to commercial producers with a Duroc herd supplying boars for use as sires. The board also sponsors research into pigs at Massey University.

The board's income comes from a levy on all pigs sold through licensed slaughter plants.

Poultry

Production of chicken meat during the year ended September 1988 totalled 25 076 tonnes of fresh meat and 26 571 tonnes of frozen meat.

New Zealand Poultry Board. In 1988 the Government abolished production controls in the egg industry and removed the statutory powers and functions of the New Zealand Poultry Board. The board ceased to exist as at 1 April 1989. Figures previously supplied by the board on poultry flocks are no longer collected.

Eggs. Poultry farms sell most of their eggs through egg wholesalers who are mainly responsible for supplying eggs to retail shops in the cities and larger towns.

Commercial poultry farms are distributed over both islands, but there are concentrations around Auckland, Tauranga, Christchurch, and Oamaru. The egg industry does not cater for overseas markets, though limited quantities of frozen egg pulp and dried powder surplus to local requirements are exported.

Table 15.33. EGGS HANDLED BY EGG WHOLESALERS

Year*Eggs

* Year ended 30 June.

Source: New Zealand Poultry Board.

 (million dozen)
198351.9
198451.9
198549.2
198648.8
198743.7
198839.7

Bees

The rich pasture lands of New Zealand and some of its forest and bush areas are favourable for apiculture and produce high-grade honey. Although clover is still the principal type, a number of other New Zealand native honey sources have wide national and international consumer appeal. An example is Honeydew honey, which is produced from beech forests in the north of the South Island.

In the year ended 31 May 1989 the total honey crop was assessed at 5752 tonnes, compared with the previous year's crop of 7748 tonnes, with an average production of 17.4 kilograms per hive. This was one of the worst seasons on record caused by conditions that were either too wet or too dry. An average crop for a typical season is 30 kilograms per hive. About 2000 tonnes are exported annually. Traditionally this has been in bulk form, but larger quantities of cut comb and of extracted retail-pack honey are now being exported as well. These exports were worth $6 million in 1988.

Beeswax from cappings amounted to 90 tonnes in 1989. The industry's other products include pollen, package bees and queen bees. Exports of queen bees and package bees were worth $935 000 in 1988 and this is expected to grow with continuing demand from North America.

There is also an increasing demand for bees for crop pollination. More than 90 000 colonies were transported in 1988 specifically for the purpose of orchard pollination (mainly for kiwifruit, berryfruit, apples, and stonefruit).

Fewer than 300 beekeepers completely depend on honey production and beekeeping for their livelihood. They are represented by the National Beekeepers' Association of New Zealand, based in Wellington.

A hive levy, payable by all beekeepers who own 50 or more honey-producing hives, is administered by the association for the benefit of the industry generally. The rate of the levy is reviewed annually—and was 48 cents per hive in 1989.

Table 15.34. APIARIES AND HONEY PRODUCTION*

DistrictBeekeepersApiariesHivesHoney production

* Year ended 31 May.

Source: Ministry of Agriculture and Fisheries.

 numbertonnes
1988
Whangarei6701,83718,335255
Auckland1,3012,30720,285225
Hamilton8203,11343,6781,228
Tauranga7243,80061,451976
Palmerston North1,5034,16241,719834
Nelson5872,26826,921807
Christchurch9655,18164,2331,503
Gore6214,50959,0801,850
          New Zealand7 19127 177335 7027 748
1989
Whangarei6141,77819,17059
Auckland1,2262,47920,859320
Hamilton6713,05546,506730
Tauranga6933,82659,889401
Palmerston North1,4374,16538,959530
Nelson5612,22325,457621
Christchurch9015,10061,0721,290
Gore5924,45658,4261,801
          New Zealand6 69527 082330 3385 752

15.7 Crops and horticulture

Although pastoral farming is the major land use in New Zealand, in recent years there have been significant increases in the area planted in horticulture and other crops.

In traditional arable production regions such as Canterbury, Southland, Hawkes Bay and Wanganui-Manawatu there have been increased arable plantings, particularly of malting barley for export. Meanwhile plantings have begun in other regions such as Wairarapa. Other crops include wheat (mainly for domestic use), herbage seeds and some herbs, and oilseed rape (for both domestic and export markets).

The most dramatic increases in horticulture have occurred in the Bay of Plenty with the development of kiwifruit production from the mid-1970s. However, in other areas which have traditionally grown horticultural crops such as Northland, Hawkes Bay, Poverty Bay, Horowhenua, Nelson, Marlborough, and Otago there have also been increased plantings and changes in crops planted.

Major crops for the export market include kiwifruit, pipfruit, summerfruit (stonefruit), and berryfruit. Grapes are grown mainly for the domestic market and for wine production.

Grain, vegetable and seed crops

Stock feed. Animals can be grazed in open pasture for the full 12 months of the year, but the winter growth of grass, except in certain favoured localities, needs 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. Hay and silage crops are grown almost exclusively on the farms where they are consumed, though some districts specialise 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 and extension of pastures require the annual supply of very considerable quantities of grass seed. There is an appreciable export trade in some species of grass seeds.

Table 15.35. GRAIN AND PEAS, 1988*

CropArea sownYields
North IslandSouth IslandTotalNorth IslandSouth IslandTotal
* Year ended June.
 hectarestonnes
Wheat7,95442,65550,60932,299173,685205,984
Oats1,46516,07717,5425,22458,82064,044
Barley13,90969,05282,96163,047293,008356,055
Peas2,14522,52724,6727,03866,77073,808
Maize15,83817816,016135,6561,288136,944

Wheat. New Zealand wheat is primarily grown for domestic human consumption or for use as stock feed. Control of the distribution of both imported and locally produced wheat was the responsibility of the New Zealand Wheat Board, which was also responsible for the distribution of flour and associated by-products.

During 1987 and 1988 the wheat industry was progressively deregulated and the wheat board abolished from April 1988. Growers and processors now negotiate quality standards and prices without any intermediate authority.

Most wheat is grown in the South Island in the Aorangi and Canterbury local government regions. In the year ended June 1988 these regions provided 66 percent of the total yield of 205 984 tonnes.

Barley. Most barley grown in New Zealand is used for the manufacture of stock feed and for malting. Production has increased steadily in recent years as growers have increasingly exported malting and feed-quality product. The main growing area is the middle and southern parts of the South Island. In 1988, 38 percent of the crop came from the Aorangi local government region. In the North Island the main growing regions are Wanganui and Manawatu, which between them provided 13 percent of the total crop in 1988.

Maize. Primarily grown in the eastern North Island, is used as poultry feed and increasingly as a supplementary feed for pigs and other livestock. In 1988 the Waikato local government region provided 32 percent of the crop, and the Bay of Plenty 23 percent.

Oats. Grown mainly for threshing and green feed, oats are also used to produce milled rolled-oats, oatmeal, and oaten foods. The main local government regions for oats are Aorangi and Southland, which provided 30 percent and 34 percent respectively of the 1988 crop of 64 044 tonnes.

Field peas. Eighty percent of peas are grown in the Canterbury and Aorangi local government regions in the South Island.

Potatoes. The production of potatoes is usually adequate to meet home market requirements. Yields have risen to such an extent that a population of 3.3 million is now supplied from the same area as were 1.75 million people 30 years earlier. Most of this increased production has been the result of research, the introduction of new varieties, and better farming practice.

Until 1988 the supply of a suitable quantity and quality of potatoes for the local market was the responsibility of the New Zealand Potato Board. In that year the board was abolished and its assets and some of its functions transferred to the Vegetable and Potato Growers Federation.

Seed certification. The Ministry of Agriculture and Fisheries operates a seed certification scheme covering all the main herbage and arable species (and participates in the OECD seed scheme). The scheme is widely accepted both within New Zealand and overseas, with considerable exports of certified seed to EC countries, the Pacific Basin, and North and South America, Both government-funded and private breeders are actively engaged in the production of new and improved cultivars, which are subsequently multiplied through the certification scheme to the ultimate benefit of end users.

Plant selectors' rights. Breeders of a new and distinct plant variety may obtain a grant of plant selectors' rights. Such a grant gives the breeders, for a specified number of years, exclusive selling rights for the variety, enabling them to recover costs, and perhaps make a profit. The scheme is administered by the Ministry of Agriculture and Fisheries. It encourages investment in plant breeding in New Zealand; encourages the introduction of improved overseas varieties and benefits farmers, horticultural growers, and home gardeners by giving them a wider choice of improved varieties. Rights may be obtained for varieties of all plants except fungi, algae, and bacteria. The New Zealand scheme complies with the Convention of the International Union for the Protection of New Varieties of Plants (UPOV).

Fruit

In the year to June 1988, 372 974 tonnes of fresh fruit at a value of $641.7 million was exported, and a further $40.5 million was earned from processed fruit. Table 15.36 outlines the main types of fruitgrowing in New Zealand.

Table 15.36. AREAS PLANTED IN FRUIT

FruitAt 30 JuneMain districts
198619871988
 hectares
Citrus—
     Grapefruit/Goldfruit235221222Bay of Plenty
     Lemons240267282Bay of Plenty
     Mandarins301339358Northland, Bay of Plenty
     Oranges80982792East Cape, Northland
     Tangelos540510502Bay of Plenty, Northland
Pip fruit—    
     Apples7,8188,5859,670Hawkes Bay, Nelson
     Pears634675798Hawkes Bay, Nelson
     Nashi (Asian Pears)375646757Auckland, Bay of Plenty
Stone fruit—
     Apricots778775832Otago
     Nectarines1,2611,1921,149Hawkes Bay, Otago
     Peaches1,2711,2181,150Hawkes Bay, Auckland
     Plums342355330Hawkes Bay, Auckland
     Cherries190228259Marlborough, Otago
Berry fruit—
     Blackcurrants697670655Canterbury, Southland
     Blueberries566553532Waikato
     Boysenberries457471421Nelson, South Auckland,
     Raspberries517487388Nelson, Waikato
     Strawberries327296246Auckland
     Other brambles807380South Auckland
Subtropicals—
     Avocados1,2251,2361,296Bay of Plenty, Northland
     Feijoas267367283Bay of Plenty
     Kiwifruit18,31618,70818,905Bay of Plenty
     Tamarillos434442477Northland
     Passionfruit887780Bay of Plenty
     Grapes (outdoor)4,7744,7164,871Hawkes Bay, Gisborne, Marlborough
     Persimmons305389441Auckland

Grape growing and wine production. The estimated net area of the vineyards throughout New Zealand as at June 1989 was 4871 hectares, compared with 4716 hectares a year before. The main grape-growing areas are Gisborne, Hawkes Bay, Marlborough, Auckland, and Poverty Bay.

Table 15.38 outlines wine production and sales, based on an annual census of New Zealand winemakers licensed under the Wine Makers Act 1981 and producing grape-wine during the current June year.

New wine put down during the 1987–88 season increased, from 41.8 million litres the previous year to 42.7 million litres, an increase of 1.4 percent. Sales of table wine increased by 2.7 percent.

Table 15.37. WINE STOCKS

Grape and fruit wineYear ended June
198619871988
* Differences between closing stocks one year and opening stocks the next are caused by changes in the number of licence-holders operating from year to year and differences notified by winemakers when preparing their figures.
 litres (000)
Winery stocks at start of season*85,12974,19466,414
Production during season43,03641,78642,688
Disposals during season52,43248,17969,465
Winery stocks at end of season*74,08566,17257,514
Losses during season, samples, spillages, own-consumption, etc.1,6501,6282,121

Table 15.38. WINE PRODUCTION AND SALES

Grape wineYear ended June
19871988

* Combined for reasons of confidentiality.

† Includes all cocktails, liqueurs and wine-based products, 15 percent alcohol by volume and over.

 litres (000)
Production
     Wine produced from:
               (a) Opening stocks of unfermented grape juice3 4381 409*
               (b) Unfermented grape juice purchased from licensed wine makers
     Additives used with:
               (a) Opening stocks of grape wine 
               (b) Grape wine bought in from licensed wine makers
     Winemakers' production from current vintage
Table wine—White still32,23630,753
                         Red and rose still3,3274,429
                         Sparkling2,2422 276*
                         Coolers (grape wine content only)--
               Total table wine35 80537 459
Fortified wine (including all cocktail liqueurs)1,9331,735
               Total production41 17640 603
Sales
Table wine—White still28,60829,678
                         Red and rose still3,5303,418
                         Sparkling76174,920
                         Coolers (grape wine content only)2,792
               Total table wine39 75540 807
Fortified wine7,8407,039
               Total sales47 59547 847
Stocks at 30 June
     Table55,02649,003
     Fortified10,5477,534
               Total65 57356 536

Pipfruit (apples, pears, nashi). As at June 1989 a total of 9670 hectares were planted in apples and 798 hectares in pears. The main production districts were Hawkes Bay and Nelson. The main apple varieties are Granny Smith, Red Delicious types, Gala, Royal Gala, Braeburn, Fuji and Cox's Orange. The main pear varieties are Packham's Triumph, Buerré Bosc, and Doyenne du Cornice.

Nashi, an introduced Asian pear type from Japan, is gaining in popularity. 757 hectares were planted in Nashi as at June 1988. The main Nashi districts are Auckland and Bay of Plenty. The main varieties are Hosui, Kosui, Nijisseiki, Shinseiki, and Shinsui.

For the season ending September 1989 the national pipfruit crop is estimated at 350 000 tonnes of which approximately 200 000 tonnes were exported fresh. The forecast for 1990 is around 390 000 tonnes.

Apple and European pear marketing is under the control of the New Zealand Apple and Pear Marketing Board. This organisation is the sole wholesaler and exporter of these fruits in New Zealand.

Individual orchardists, however, have the right to sell fruit produced on their own properties direct to consumers in quantities of up to two bushels at a time.

Nashi marketing is well organised, with this fruit being exported through licensed exporters who have been authorised to use the nashi industry's trademark by the New Zealand Nashi Council.

Table 15.39. APPLES AND PEARS RECEIVED BY THE NEW ZEALAND APPLE AND PEAR MARKETING BOARD, 1988–89 SEASON*

VarietyHawkes BayNelsonOther districtsTotal

* Ended 30 September.

† 18.5 kg carton.

Source: Hew Zealand Apple and Pear Marketing Board.

 (000 cartons)
Apples9 392.06 525.71 920.417 838.1
Pears286.9224.492.7586.0
               Total receipts9 660.96 750.12 013.118 424.1

Summer fruits. At 30 June 1988 the areas planted in summer fruits were: apricots. 832 hectares; cherries, 259 hectares; nectarines, 1149 hectares; peaches, 1150 hectares; plums, 330 hectares.

The main summer fruit production areas are Hawkes Bay, Marlborough, Central Otago, Canterbury, and Auckland.

Most summer fruits are produced for local consumption, although exports have declined from a peak of 3486 tonnes with a value of over $9.3 million in 1987, to 2492 tonnes with a value of $6.9 million in 1989. Nectarines account for 76 percent of the volume of exports, followed by peaches, apricots, and cherries. Australia is the main export market. Access for cherry exports has been gained in the Japanese market.

Marketing of summer fruits comes under the Horticultural Export Authority.

Kiwifruit. Kiwifruit has become New Zealand's leading horticultural export, with a value of around $450 million in 1988. The industry, regulated by the New Zealand Kiwifruit Authority, has developed rapidly in the last 10 years. This is shown in table 15.40.

Kiwifruit is produced in all regions of the North Island, as well as in the north of the South Island. The Bay of Plenty is the major production area. During 1988 it was announced that a central kiwifruit marketing authority would be established to market the fruit.

Table 15.4. GROWTH IN KIWIFRUIT PRODUCTION

YearArea hectaresProduction tonnesExport tonnes
19782,1739,6167,992
198818,900230,000185 000P

Citrus and subtropical. Although small compared to the kiwifruit and pip fruit industries, export markets are being developed for a large number of these crops—including avocados, citrus (lemons, Seminole tangelos, and navel oranges), tamarillos, feijoas, passionfruit, persimmons, and babacos.

Contributors

  • 15.1–15.2 Ministry of Agriculture and Fisheries, Department of Statistics.

  • 15.3 New Zealand Meat Producers Board.

  • 15.4 New Zealand Wool Board.

  • 15.5 New Zealand Dairy Board.

  • 15.6 Department of Statistics, Ministry of Agriculture and Fisheries, National Beekeepers' Association.

  • 15.7 Ministry of Agriculture and Fisheries, Department of Statistics, New Zealand Apple and Pear Marketing Board.

Historical

Department of Statistics, P. R. Stephens.

Further information

Agriculture. Department of Statistics (annual).

Census of Agricultural Contracting Services, 1984–85. Department of Statistics.

Contacts in Agriculture. Ministry of Agriculture and Fisheries (biennial).

Key Statistics. Department of Statistics (monthly).

National Monitoring Report. Ministry of Agriculture and Fisheries (six-monthly).

New Zealand Apple and Pear Marketing Board Annual Report.

New Zealand Beekeeper. National Beekeepers Association of New Zealand (quarterly).

New Zealand Dairy Board Annual Report.

New Zealand Meat Producer. New Zealand Meat Producers Board (quarterly).

New Zealand Meat Producers Board Annual Report.

New Zealand Pork Industry Board Annual Report.

New Zealand Wool Board Annual Report.

Report of the Ministry of Agriculture and Fisheries (Parl. paper C. 5).

Situation and Outlook for New Zealand Agriculture. Ministry of Agriculture and Fisheries (annual).

Surveillance. (Reports on animal health). Ministry of Agriculture and Fisheries (quarterly).

Chapter 16. Forestry and fishing

16.1 Forestry

Forests cover about 27 percent or 7.4 million hectares of New Zealand's land area. Of this, about 6.2 million hectares are in indigenous forest and 1.2 million hectares in plantations. Of the total plantation forest estate, about 89 percent is radiata pine (Pinus radiata), and 5 percent is Douglas fir (Pseudotsuga menziesii). Hardwoods comprise only about 1 percent of New Zealand's plantation forests. The most important hardwood plantation species are eucalypts originating from Australia.

New planting has declined in recent years, although nearly all areas which are already in forest are currently being replanted after felling. There has been a decline in new planting from 44 000 hectares in 1984 to about 18 000 hectares in 1988, and this is continuing.

Radiata pine, the principal plantation species, is native to the Monterey Peninsula of California, and was first planted in New Zealand as early as the 1850s. It has achieved its prominence in New Zealand (and other countries) because of its fast growth rate over a wide range of site conditions and its suitability for a wide range of uses.

Although radiata pine is the principal plantation species its properties are not suitable for all uses, especially where decorative features, dimensional stability and surface hardness are important. With the declining supply of timber from indigenous forests, special purpose species such as blackwood (Acacia melanoxylon) and black walnut (Juglans nigra) have been established to meet specialist markets.

The available wood resource from plantations is expected to rise rapidly over the next few decades. Because the domestic demand for timber is not expected to change significantly in the future, the volume of wood available for export is expected to increase dramatically, with about a three-fold increase over the next ten years. However, major increases in supply are not expected until the mid-1990s.

The Ministry of Forestry conducts research relevant to the forestry and wood-based industries, as well as monitoring them and advising government. Forestry research is described in section 13.2, Organisation of science, while the role of the Ministry of Forestry is summarised in section 3.3, State sector.

Resources

Plantation forests. State plantation forests date 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 began in 1898 and proceeded slowly until 1922, by which time 19 000 hectares had been established. From 1923 to 1936 there was a boom in afforestation, with no less than 150 000 hectares being planted by the state and 120 000 hectares by the private sector. After the boom period, planting continued on a more modest scale, but in 1961 state planting was increased and government provided financial incentives for planting by private landholders and local authorities—with the aim of doubling the plantation-forest estate by the end of the century. The annual rate of new planting by the state increased considerably after 1961, and from 1974 averaged some 20 000 hectares per annum, over five times the rate achieved in 1961.

Now that the stage of large-scale utilisation has been reached, there are opportunities to increase productivity by correcting the deficiencies in the distribution of age classes, replacing uneconomic plantations, and improving the quality of the trees to provide diversity of marketable products. The trend now is for forest owners to look closely at the economic viability of both existing and new plantations. New planting is being concentrated on those areas that meet commercial rates of return, meaning there has been a reduction in new planting programmes.

Special-purpose plantation species have also been evaluated and these are increasingly being planted on suitable sites. Uses for these timbers include furniture, cabinet work, turnery, joinery, veneers and boat-building.

Natural production forests. Seventy nine percent of the natural forests are state-owned, the remainder being freehold and leasehold land. A significant area is Maori land. The vast majority of the state's forests are managed by the Department of Conservation for soil and water, conservation and recreation values. The remaining 150 000 hectares are administered by the New Zealand Forestry Corporation for long-term sustained yield management or to meet contractual demands for sawlogs. These forests will not be included in the sale of state forest assets described below but will be sold by more conventional means (i.e., specific sales of wood from forests).

Management of natural forests which have been set aside for production of timber involves restriction of the annual cut, rigid insistence on full utilisation, and block sales of standing timber. The ecology of the natural forest associations and the silvicultural characteristics of the individual species are being studied by Ministry of Forestry researchers.

Selective harvesting of terrace rimu forest in south Westland is intended to provide a favourable environment for the regeneration of rimu, while in the central North Island harvesting of timber from natural forest is now restricted to removal of totara for Maori cultural purposes, and to recovering dead trees from selected forests.

The remnant kauri forests are mainly state-owned. The management objective is perpetuating kauri ecosystems in the interests of science and public enjoyment. Areas of mature and immature kauri have been set aside as sanctuaries, programmes of research and artificial establishment conducted, and the annual cut reduced to the lowest level consistent with economic, social, and legal constraints.

The Ministry of Forestry's policy on beech forests is to maintain them on a sustained yield basis. Both major species, red and silver beech, when given the right conditions will regenerate freely; both grow sufficiently rapidly to produce sawlogs in 100–130 years. In the South Island, large areas of beech forest are still intact and, in the case of red beech, there are extensive stands of young forest which have regenerated after fire, wind throw, or mining activities. Against these favourable circumstances must be set the presence, in many localities, of red deer and other feral animals, whose browsing may prevent effective regeneration, and also the difficulties associated with using that part of the crop not used as sawlogs.

Ownership of forests

Many of the earlier plantation forests were developed by the state, which, although allocating a good deal of the resource to private industry for harvesting and processing, has retained the largest stake in New Zealand's forest resources. The impetus for development and ownership has also moved increasingly to the private sector over recent decades, as the industry's capital and infrastructure has expanded.

Today, plantation forest ownership is shared almost evenly by the public and private sectors, with the state holding the majority of indigenous commercial forests.

New Zealand Forestry Corporation Limited. The corporation was established on 1 April 1987 as a state-owned enterprise to manage the Crown's interests in commercial forestry. As such the corporation is responsible for nearly half the country's production forests and half its wood supply, plus two large sawmills which have a combined output of 200 000 cubic metres of sawn timber per year.

The forest management (planting, tending, harvesting, marketing and distribution) and the wood processing (sawn-timber, wood chips and round produce) functions of the corporation are handled by two wholly-owned subsidiary companies: New Zealand Timberlands Limited and Prolog Industries Limited, respectively. The corporation also operates a domestic and export seed business—Proseed, based in Rotorua. The corporation's head office in Wellington acts as a holding company, as well as performing policy and planning functions. One other profit centre that is also based there is concerned with log exports.

Sale of state forest assets. The sale of management and cutting rights to Crown commercial forestry assets was officially launched by the Forestry Corporation on 25 October 1989. Rights to plantation forests of about 550 000 hectares will be sold in 90 units of varying sizes to both large and small forest users. The state-owned sawmilling operations at Waipa and Conical Hill are also up for sale. However, the sale does not include land or Maori leased forests. Prospective bidders are being provided with detailed information on the sale, and bids for the forests will be called prior to 30 June 1990. There is no distinction between domestic and overseas bidders. The Government retains the right to remain owner of the resource if the bids received are not accepted. The corporation expects the sale to be completed before the end of 1990.

An agreement between the Crown, the Maori Council and the Federation of Maori Authorities provides security of tenure for potential purchasers of state forests and protects the interests of Maori who have claims before the Waitangi Tribunal. Purchasers will have the right to use the land for a period sufficient to permit any existing tree crop to reach maturity and be harvested. The right to use the land will automatically be extended by one year each year unless notice of termination is given. If notice of termination is given, the purchaser will still have time to harvest tree crops planted prior to this notice. In the event of a successful Maori claim the Government will issue notice of termination to the purchaser and compensate the claimant for the rights the purchaser retains until the end of the termination period.

Private forestry. The total area of plantation forest in New Zealand is 1.2 million hectares of which half is owned by the state. Approximately 30 percent of plantation forests are owned by three major companies; Elders Resources NZFP Ltd, Fletcher Challenge Ltd, and Carter Holt Harvey Ltd. The remaining 20 percent of exotic forest is made up of small woodlots of 100 hectares or less. These are variously owned by Maori trusts, local authorities, and individuals.

Employment and training in forest industries

Employment. There is a concentration of employment in the forestry and wood products industries near the largest forest areas, particularly in the central North Island, where over half the country's plantation forests are located, and where one-quarter of the regional labour force is engaged in forest industries. Forest industries have had a marked effect on regional development. The growth of population in the Rotorua - Bay of Plenty area was largely due to the expansion of the forest industries. Apart from the expansion of the established towns such as Rotorua, the industrial development of New Zealand Forest Products Ltd, Tasman Pulp and Paper Co. Ltd, and Caxton Paper Mills Ltd, led to the establishment of the completely new town—Kawerau—and the rapid growth of another—Tokoroa. The development of these industrial complexes also stimulated other industries, especially transport, vehicle repair, and building and construction. Similarly, exports of forest products have increased the tonnage that has passed through the ports of Tauranga, Napier and Nelson.

Recently there has been a decline in the number of people employed in forest-related industries. The Department of Statistics' annual Business Directory update recorded a total of 26 950 people employed in 1989 in the following activities: forestry (4290), logging (3150), sawmilling (6060), timber merchanting (7600), and pulp and paper manufacturing and wholesaling (5850). This compares with 29 850 people employed in the same activities in 1988 and 33 770 in 1987.

Those employed in other forestry-related industries, including plywood and veneer factories, manufacture of furniture and fittings, wooden and cane containers, and wood and cork products totalled 12 400 in 1989, 12 910 in 1988 and 11 870 in 1987.

Training. A range of organisations and facilities provide training and education for the sector.

At the University level the School of Forestry at Canterbury University provides a Bachelor of Forestry Science degree as well as a Diploma in Forestry and other post graduate qualifications. A forestry option is being introduced to the Science (Technology) degree at Waikato University. The Pulp and Paper Research Organisation in partnership with the University of Auckland, plans to run a Diploma in Pulp and Paper Technology in order to equip future managers, early in their careers, with a thorough technical knowledge of the industry.

At Waiariki Polytechnic at Rotorua the School of Forestry and Timber Processing runs the Forestry Training Centre and the Timber Industry Training Centre. The Forestry Training Centre holds block courses for the New Zealand Certificate in forestry and also offers a wide range of short courses in forestry-related subjects. The Timber Industry Training Centre provides apprenticeship and short courses in saw doctoring, timber machining, sawmill practice, timber grading and preservation.

Courses at other polytechnics and the regional ACCESS schemes provide work-skill training in forestry. These courses are becoming more popular. However, it is recognised that pre-entry training in certain skills must be accompanied by work experience and an adequate level of productivity.

During the past decade the forest industry has developed work and safety standards which are administered for the industry by the Logging and Forest Industries Training Board through a logging and forest skills certification programme. The board also provides various training facilities.

Forestry statistics

Production figures from the forest and forest products industries are compiled annually by the Ministry of Forestry. A survey of these can be found in the following section, Timber and forest products.

The Department of Statistics' five-yearly Census of Forestry and Logging has provided broad economic data on the industry, and results of the most recent (1983–1984) census were published in the last edition of the Yearbook. More up-to-date statistics will become available from the survey of the industry undertaken as part of the 1987 Economy Wide Census, results of which will be published in 1990.

Statistics on forest industries employees and working proprietors were published in the last edition of the Yearbook. Comparable figures are no longer available.

16.2 Timber and forest products

Timber

Roundwood. When, by the 1930s, the easy abundance of native timber had gone, some of the plantation forests planted from the late 1890s had reached the stage where harvesting could begin. By 1939, of the 1 700 000 cubic metres per annum of roundwood (logs unbarked and untreated) cut for industrial use, some 280 000 cubic metres came from the plantation forests. By 1949 the total annual removals of roundwood had increased to 2 500 000 cubic metres, with 820 000 cubic metres from the plantation forests. The plantation forests are now by far the more important source of wood. In 1988–89 they supplied 9 655 000 cubic metres, or 96 percent of the total supply. Table 16.1 shows the quantities of roundwood removed from the forests of New Zealand to support approximately 250 sawmills, 5 plywood, and 8 veneer plants, 3 particleboard mills, 6 pulp and paper mills, and 5 fibreboard mills in 1989. This roundwood production does not include firewood.

Table 16.1. ROUNDWOOD PRODUCTION

Year ended 31 MarchNatural forestsPlantation forestsTotal
 cubic metres (000)
19856758,9519,626
19866439,55210,195
1987563x9 050x9 613x
19885709,1189,688
198935610,25510,611
Source: Ministry of Forestry.

Sawn timber. Radiata pine and other pines account for about 90 percent of the total cut of exotics and Douglas fir for most of the remainder. Less than 4 percent of the country's sawn timber production comes from the natural forests, and this proportion has reached the point where a small, sustained yield in native timber is maintained for special purposes.

Table 16.2. ROUGH-SAWN TIMBER PRODUCTION

Year ended 31 MarchSoftwoods fromHardwoods fromTotal
Natural forestsPlantation forestsTotalNatural forestsPlantation forestsTotal
 cubic metres (000)
19851162,1622,278253282,306
19861112,2632,374212232,397
1987941,9652,059181193 078x
1988681,7351,803172191,822
1989611,8011,862141151,877
Source: Ministry of Forestry.

Table 16.3. SAWN TIMBER PRODUCTION BY SPECIES

SpeciesYear ended 31 March
19851986198719881989
Natural forest—cubic metres (000)
Rimu and miro10296856258
Matai111
Totara1211
Kahikatea1011742
Tawa781085
Beech17138910
Other311
               Total, native1411321128575
Plantation forest—
Pines1,9362,0441,7641,5571,585
Douglas fir175183174163191
Eucalypts31111
Other5137271625
               Total, plantation2 1652 2651 9661 7371 802
               Total, all species2 3062 3972 0791 8221 877
Source: Ministry of Forestry.

Round and split produce. Considerable quantities of native timbers have been used in the past to meet the need for mining, fencing timbers and firewood, and for a proportion of sleeper, pole, and bridge timber requirements, but, as with forest products in general, most post and pole requirements are now met from exotic resources. A dramatic increase in the volume of posts and poles treated with preservatives (from 19 000 cubic metres in 1955 to 312 000 cubic metres in 1985–86) indicated the switch from native to introduced round- wood, together with the effective introduction and maintenance of timber preservation standards.

Export wood chips. An export wood chip industry originated in 1969 in the Nelson region, where there are now two mills producing both native and exotic wood chips for export. Trees unsuitable for sawn timber production are used. The process also uses forest and sawmill residues which would normally be wasted. Nelson remains the principal chip export port, handling about 50 percent of the country's total. Japan is the principal destination.

Wood chips have been exported through the port of Mount Maunganui since 1972, through Lyttelton since 1975, through Port Chalmers since 1977 and through Bluff since 1982. Chip exports during the year ended June 1989 totalled 215 000 bone-dry units. (A bone-dry unit for radiata pine wood chips is equivalent to 2.63 cubic metres; and for beech, 2.25 cubic metres.)

Timber preservation. Approximately 1.4 million cubic metres of timber, including round- wood, is preservative treated in New Zealand each year. This represents the highest per capita consumption of treated timber in the world. Factors which have encouraged growth in the timber preservation industry include: the versatility, availability and high permeability of non-durable exotic softwood species such as radiata pine; regulations requiring timber to be preservative treated; high levels of quality control; and a research programme carried out by the Forest Research Institute.

Timber preservation has expanded markets for timber products in the building, farming and export sectors.

The Timber Preservation Authority, which was responsible for maintaining standards in the industry, was dissolved on 31 March 1988, its responsibilities being taken over by the Timber Preservation Council. The collection of statistics on sawn timber treated with preservatives (tabulated in the last edition of the Yearbook) has been discontinued.

Quarantine. The quarantine service provides a degree of insurance to the forest industry by limiting the movements of insects and disease into and out of New Zealand. This function is carried out by Ministry of Forestry timber inspectors, who are responsible for the inspection and disinfection of imported wood and wood products, including logs, sawn timber and manufactured wood products.

Wood utilisation standards. There are a number of inter-related standards concerned with the processing and use of timber. These promote the correct processing and use of timber, safety, and provide consumer protection and a sound basis for trading. Two important standards are, the National Timber Grading Rules (NZS 3631:1988) and the Code of Practice for Specifying Timber and Wood-based Products for Use in Buildings (NZS 3602:1988).

Forest products

Pulp and paper. The pulp and paper industry is mainly concentrated near the big plantation forests on the volcanic plateau of the North Island. Of the eight plants in New Zealand, seven are in the North Island and four are integrated with sawmills to utilise fully the total input of wood. There are four main pulp and paper companies.

The Tasman Pulp and Paper Co. Ltd was formed in 1952 to utilise wood from Kaingaroa State Forest and is now part of the Fletcher Challenge Corporation, the largest New Zealand company in terms of shareholders' funds. The company's plant is at Kawerau, Bay of Plenty. The pulp and paper mill began operation late in 1955.

Elders Resources NZFP Ltd operates an integrated pulp mill, paper mill, plywood mill, and a reprocessing plant at Kinleith, near Tokoroa. A corrugating medium machine at Te Papapa produces corrugating medium paper from waste paper collected in the Auckland area.

Whakatane Board Mills Ltd, a subsidiary of Elders Resources NZFP Ltd, manufactures paperboard from groundwood and from semi-chemical and waste-paper pulp produced on site. Wood supplies are drawn from its radiata pine forest at Matahina and hauled 42 kilometres to the mill by road. A sawmill operates adjacent to the board mill.

Caxton Paper Mills Ltd, at Kawerau, manufactures a wide range of tissues and lightweight merchant and processing papers for domestic and export markets using three machines.

New Zealand Paper Mills Ltd, at Mataura, also a subsidiary of Elders Resources NZFP Ltd, has been in operation for more than 100 years. It has two machines producing a range of papers from kraft wrapping grades to special printing copy, and writing papers. The company uses New Zealand-made sulphate pulp and supplements this with wastepaper and small quantities of imported specialty pulp.

Carter Oji Kokusaku Pan Pacific Ltd, operates an integrated sawmill and thermo- mechanical pulp mill at Whirinaki, near Napier.

Winstone Pulp International's chemical thermo-mechanical pulpmill at Karioi produced its first pulp in 1978. The plant uses exotic wood from Karioi State Forest, as well as sawmill residues.

Table 16.4. PULP AND PAPER PRODUCTION

Year ended 31 MarchWood pulpPaper and paperboard
Chemical*MechanicalNewsprintOther printing and writing paperOther paper and paperboardTotal paper and paperboard

* Chemical includes semi-chemical pulp.

† Mechanical includes groundwood pulp, thermo-mechanical and chemithermo-mechanical pulp.

Source: Ministry of Forestry.

 tonnes
1985572,839572,072297,85447,849424,395770,098
1986532,250577,897212,14845,914412,905670,967
1987544,740562,872207,44543,891392,419643 755x
1988601,789610,150255,01947,707398,079700,805
1989663,936595,069296,29540,323398,589735,207

Wood-based panels. Five factories manufacture plywood, and the total output for the year ended 31 March 1989 was 63 655 cubic metres. Total production of veneer in the industry in 1988–89 was 82 855 cubic metres. Radiata pine has become increasingly important as a species for peeler-log supply because of the demand for industrial plywood, and constitutes about 96 percent of total peeler-log production.

Manufactured from wood pulp, the different forms of fibreboard (hardboard, softboard, and medium-density fibreboard) have different properties and end uses. Production started in 1943 and has increased steadily. A mill in Canterbury began producing medium-density fibreboard by a dry process in 1976. This product has now established itself on domestic and export markets. Two further mills have been established, one in Taupo by Fletcher Wood Panels and another at Richmond near Nelson by a joint-venture company. Particleboard is manufactured from roundwood and sawmill residues and is used by the domestic market for interior panelling, flooring and furniture manufacture.

In 1988 commercial production began from a triboard plant at Kaitaia.

Table 16.5. VENEER, PLYWOOD, PARTICLEBOARD AND FIBREBOARD PRODUCTION

Year ended 31 MarchVeneerPlywoodParticleboardFibreboard
 cubic metres
198577,49355,283188,302145,682
198691,81064,355181,907166,166
198784,12163,219177,727247,967
198889,71463,069170,968301,116
198982,85563,655178,209412,825
Source: Ministry of Forestry.

Overseas trade in forest products

Exports. Forest products are important earners of overseas funds. For the year ended June 1989 exports of forest products were valued at about $1 235 million. Australia was the largest customer, taking 41 percent (by value) of exports, mainly in sawn timber and pulp and paper. Japan was the next largest, taking 21 percent, mainly pulp and logs. The remaining 38 percent is taken by smaller customers, of which the largest was Korea, taking 6 percent.

Imports. The main categories of sawn timber imports are tropical hardwoods, Australian hardwoods, and North American softwoods. Imported sawn timbers generally have specialist applications such as weatherboards with a natural finish, decorative furniture, panelling, and boat-building. Durable Australian hardwoods are imported for use as large poles, crossarms, wharf, bridge and constructional timbers, and similar. Douglas fir, redwood, and western red cedar from North America are imported for structural uses, exterior joinery, and weatherboards. Short-fibred pulp and special papers not produced in New Zealand made up 80 percent of the value of total forest products imports in the year ended June 1989. Imports of forest products for the year ended June 1989 were valued at $389 million.

Table 16.6. OVERSEAS TRADE IN FOREST PRODUCTS

Year ended 30 JuneWood productsPulpPaper and paper productsAll forest products
Imports c.i.f.$(000)
198555,57011,021239,816306,407
198656,88116,662216,648290,191
198769,93518,109293,429381,473
198876,51510,406258,607345,528
1989P79,65811,861297,441388,960
Exports f.o.b.$(000)
1985x321,228202,746272,076796,050
1986321 816x219,791226,362767,969
1987319,388252,948213,999786,335
1988631,774353,599236,014985,373
1989P537,386397,351300,6661 235 403
Source: Ministry of Forestry.

Table 16.7. VOLUME OF TIMBER IMPORTS

Year ended 30 JuneHardwoodsSoftwoodsTotalLogs and poles
 cubic metres (000)
198520x17373
1986173754x4
19872728553
19881818368
19891214267
Source: Ministry of Forestry.

Table 16.8. VOLUME OF TIMBER EXPORTS

Year ended 30 JuneSawn timberTotalLogs and poles
Native timberRadiata pinefirDouglasOther plantationTotal plantation
 cubic metres (000)
19855421x659195x500x360
19864348513402406x396
19873296523351354426
198853366213411416830
1989547795336056101,454
Source: Ministry of Forestry.

Table 16.9. VOLUME OF OVERSEAS TRADE IN PULP AND PAPER

Year ended 30 JunePaper and paperboard
Wood pulpFibreboard*NewsprintOtherTotal 

* In cubic metres.

† Excludes manufactures from paper and paperboard and excludes minor items for which no quantities are given.

Source: Ministry of Forestry.

Importstonnes
198511,151121,11175,45896 596x
198623,557147,46455 601x103,065
198717,78112060,94473,456134 400x
198811,26646513,05079,09992,149
1989P11,2456619,93281,73191,663
Exportstonnes
1985427,26520,403186,55986,460273,019
1986504,05633,900143,482105,979249,462
1987483,31696,578121,10087,925209,025
1988582,586169,468159,62176,374235,995
1989P567,836211,513180,252103,269283,521

16.3 Fisheries

Fishery resources and management

New Zealand's 200-mile Exclusive Economic Zone (EEZ) is, with an area of about 1.2 million square nautical miles, one of the world's largest. There are about 1000 species of marine fish known in these waters, of which about 100 are commercially significant.

In spite of the large size of the zone, some two-thirds of its area is too deep for bottom fishing methods such as trawling and longlining and New Zealand's fishery resources, although substantial, are not rich by world standards.

The total allowable catch set for New Zealand territorial sea and Exclusive Economic Zone waters was 516 600 tonnes of finfish and 161 100 tonnes of squid for the 1990 season. The ‘total allowable catch’ is reviewed by Ministry of Agriculture and Fisheries scientists each year and is the starting point for the annual quota system that is used to manage New Zealand's fisheries.

The advent of the 200-mile Exclusive Economic Zone provided the incentive for a considerable increase in investment in larger fishing vessels to fish the deep water outside the 200-metre isobath, and in fish processing facilities.

In recent years there has been a marked decline in foreign licensed fishing in the Exclusive Economic Zone as the domestic industry has expanded its catching processing and marketing capacity. This trend was particularly noticeable for the 1989–90 fishing year when a substantially reduced fish quota was available to foreign licensed vessels,

The primary aims of current government fisheries policy are to maximise the benefit gained from the fisheries by:

  • Managing New Zealand's commercial fisheries resource;

  • Managing recreational and traditional fisheries;

  • Conserving the aquatic environment and ecosystems;

  • Providing research as a basis for the management and realisation of opportunities in the fishing industry;

  • Negotiating access for foreign nations to New Zealand's economic zone; and

  • Negotiating access for New Zealand fish exports into overseas markets.

Two important aspects of fisheries management were adopted by the Government in 1986 to counter the over-fishing of a number of prime inshore species and to permit their recovery: the introduction and implementation of total allowable catches for all major stressed finfish fisheries (see table 16.10); and the allocation of individual transferable quotas to fishing operators, based on historically reported catches.

Individual transferable quotas. A system of individual transferable quotas was introduced as a management measure in October 1986. The individual transferable quota is a transferable property right allocated to fishers in the form of a right to harvest fish stocks. Most individual transferable quotas have been allocated in perpetuity from the Crown on payment of an annual resource rental.

Individual transferable quotas may be traded within New Zealand. Small amounts of the quotas are leased to the domestic industry as an annual transferable quota. It is intended that all commercial species will be eventually incorporated in the system.

Until recently fish quotas have been allocated as fixed tonnages, but government has negotiated with industry to define quotas, in future, as a percentage of the total allowable catch for each species. This will allow quotas to be adjusted more easily when changes in the total allowable catch are required.

Demersal fisheries. The three most important demersal species (living near the sea floor) fished in shallower waters are red cod (Pseudophycis bachus), barracouta (Thyrsites atun) and snapper (Chrysophrys auratus). Other important species are tarakihi (Nemadactylus macropterus), caught round the South Island and the east coast of the North Island; gurnard (Chelidonichthys kumu), taken by trawlers off the North Island and east coast of the South Island; trevally (Caranx georgianus), which is taken by trawlers and purse-seiners round the North Island; and jack mackerel (Trachurus spp.) trawled for on the north-eastern and western North Island shelf. Sole are taken mainly by trawling and flounder by set net.

The principal species taken by longline are snapper, particularly in the north-east of the North Island; and hapuku (Polyprion oxygeneios) and ling (Genypterus blacodes) in most areas, though blue cod (Parapercis colias) is the main line-caught species around Stewart Island and the Chatham Islands.

Further offshore, deeper-water species such as hoki (Macruronus novaezelandiae) and silver warehou (Solella punctata) are caught on the Chatham Rise and off the east coast of the South Island. Off the west coast of the South Island hoki is the principal deep-water species; and on the Campbell Plateau to the south of New Zealand, catches are dominated by southern blue whiting (Micromesistius australis). In deeper water still, at around 1000 metres and particularly on the Challenger Plateau and the Chatham Rise, catches consist largely of oreo dories (Allocyttus, Neocyttus and Pseudocyttus) and orange roughy (Hoploslethus atlanticus). Hoki and orange roughy are important species for the domestic trawl fleet.

Pelagic fisheries. The main pelagic species (belonging to the upper layers of the open sea) taken by purse-seining are trevally, kahawai (Arripis trutta), blue mackerel (Scomber australasicus) and jack mackerel.

Five species of tuna are fished commercially in New Zealand waters. Skipjack (Katsuwonus pelamis) are caught by purse-seiners round the north of the North Island in summer, Albacore (Thunnus alalunga) are caught mainly by trolling off the east coast of the North Island, the west coasts of both islands, and are also caught longline off the north-east and north coast of New Zealand by Japanese, Korean and Taiwanese vessels. The southern bluefin tuna (Thunnus maccoyi) is caught mainly by Japanese longline vessels off the east coasts of both islands, but is also caught by New Zealand vessels off the west coast of the South Island. The bigeye tuna (Thunnus obesus) is caught in offshore waters between North Cape and East Cape, and the yellowfin tuna (Thunnus albacares) is caught by game-fishers between North Cape and East Cape in the warm summer months.

Crustacea. Rock lobsters (Jasus edwardsii and J. verreauxi) are caught by potting off many parts of the New Zealand coast. All rock lobster fisheries are controlled by restricted licences. Rock lobster is a valuable coastal resource in New Zealand, with a landed catch of between 5200 tonnes (1986) and 3700 tonnes (1989).

Although the giant spider crap (Jacquinotia edwardsii) jack-knife prawn (Hymenopenaeus sibogae) and scampi (Metanephrops challenged) are quite plentiful in some New Zealand waters, the only crustacean other than rock lobster which is becoming commercially significant is the paddle crab (Ovalipes catharus).

Molluscs. The largest fishery in New Zealand waters is the squid fishery. The predominant squid are arrow squid (Nototodarus sloanii) and N. gouldi which are caught in large quantities by trawl and jigging methods, although the resource is subject to considerable annual variation.

Other commercially significant mollusc resources are the dredge oysters (Tiostrea lutaria) in Foveaux Strait; scallops (Pecten noxaezealandiae) in the Marlborough Sounds, in Tasman Bay and along the North Island's north-east coastline; and paua or abalone (Haliotis iris), which occurs around the rocky coastline, and of which about 500 tonnes per year are taken by free divers. Octopus, cockles, surf clams and pipis have the potential for further commercial exploitation.

Table 16.1. TOTAL ALLOWABLE CATCH, 1990*

Fish or shellfishQuantity

* At end of February 1990. Excludes tuna species.

Source: Ministry of Agriculture and Fisheries

 tonnes (000)
Alfonsino2.9
Barracouta32.6
Blue cod2.6
Blue moki0.3
Blue warehou5.3
Bluenose1.7
Elephant fish0.6
Gemfish7.0
Grey mullet1.0
Gurnard4.7
Hake6.5
Hapuku/bass/groper2.0
Hoki251.1
Jack mackerel32.0
John dory1.1
Ling19.2
Mixed flats6.5
Orange roughy62.5
Oreo dory25.1
Paua1.2
Red cod15.9
Rig (dogfish)1.7
School shark2.9
Silver warehou8.2
Snapper7.9
Squid161.1
Stargazer4.4
Tarakihi5.8
Trevally3.9
               Total allowable catch677.7

Maori Fisheries Act 1989

The Maori Fisheries Act became law on 20 December 1989. The three major provisions of the Act were:

  • To establish a Maori Fisheries Commission and a commercial company—Aotearoa Fisheries Limited—to assist the entry' of Maori into commercial fishing activities;

  • To make rock lobster subject to the quota management system by 1 April 1990; and

  • To establish local, coastal and estuarine fishing areas, called taiapure.

Maori Fisheries Commission. This agency was established by the Act. The Crown is to provide the commission with an establishment grant of $10 million and then provide 2.5 percent of all fish quota (or agreed cash equivalent) for each of the four years until 1992.

The commission is required to give at least 50 percent of the quota it receives to Aotearoa Fisheries Limited and can lease the balance of its quota either to iwi-based fishers or to the general fishing industry. Aotearoa Fisheries Ltd has the options of catching and marketing the fish itself or on-leasing quota to iwi and/or the commercial industry.

Any profits earned by Aotearoa Fisheries Ltd are to be provided to the commission, which has authority to provide loans or grants to iwi groups for the development of fisheries and aquaculture.

Rock lobster management. The Act established quota management areas for rock lobster. For red rock lobster these areas are based on the current controlled fisheries areas except that the Westland and Taranaki areas have been amalgamated. For packhorse lobster there is only one management area for all New Zealand fisheries waters.

Taiapure—local fisheries. The Act provides for the establishment of taiapure—local, coastal or estuarine fisheries—that have customarily been of special significance to any iwi or hapu as a source of food or for special spiritual or cultural reasons.

The concept of taiapure has evolved from a ‘rahui’ programme that was started over five years ago. Their purpose is to allow Maori community management of local fisheries and to ensure sufficient supplies of seafood to meet Maori community needs.

Committees drawing from local Maori communities are to develop regulations to control the areas, but any regulations must allow equal access to all persons regardless of ethnic background.

Fish catch

Marine. The traditional domestic fisheries in New Zealand are coastal, consisting mostly of the prime demersal inshore finfish, pelagic finfish, rock lobster and dredge oysters. The past decade has seen the development of deep water fishing in the Exclusive Economic Zone by the fishing industry employing trawlers of 40 metres or more in length. Deep-water species now account for about 80 percent of the total catch. Trawling is the principal method of deep-water fishing. Pelagic fish are caught mainly by purse-seining. The remaining finfish are caught by various line methods and set nets. Squid is caught by trawl and by jigging.

Table 16.11. FISH AND SHELLFISH LANDED BY DOMESTIC FLEET*

Fish or shellfishYear ended 31 December
1986198719881989P

* Includes catches made by vessels chartered by NZ companies. Comparison with tables from previous years is not possible as catches here for domestic vessels only.

† No farmed mussels or oysters are included.

Source: Ministry of Agriculture and Fisheries.

 tonnes (000)
Barracouta17.427.122.918.2
Flounder and sole2.43.04.24.0
Gemfish4.94.14.73.9
Gurnard2.02.63.12.5
Hapuku, bass1.41.11.11.0
Hoki91.2147.3206.5161.5
Kahawai4.96.812.56.0
Ling5.16.97.08.7
Orange roughy44.349.055.449.7
Oreo dories14.416.219.917.1
Blue warehou3.11.81.91.3
Silver warehou4.54.78.35.4
Jack mackerel15.817.421.819.9
Blue mackerel1.52.36.25.7
Red cod8.03.55.19.8
Shark and rig3.07.29.27.6
Tuna5.45.04.610.7
Snapper6.36.07.17.5
Tarakihi4.54.44.73.9
Trevally3.32.62.83.0
Other wet fish33.253.643.358.8
               Total, wet fish276.6372.6452.3406.2
Squid31.336.050.889.0
Mussels0.10.70.6
Oysters (dredge)6.74.87.17.4
Paua0.71.31.21.0
Rock lobsters5.24.93.63.7
Scallops4.61.31.40.7
Other shellfish0.90.50.61.3
               Total, all fish326.1422.1517.6509.1

As a result of deep-water fishing an increasing proportion of the total catch—currently two-thirds—is landed at South Island ports.

The deeper waters around New Zealand are fished by domestic vessels, foreign chartered vessels and foreign licensed vessels. Since the quota management system was introduced in October 1986 no distinction has been made between deepwater and inshore domestic quotas.

New Zealand also has bilateral fishing agreements with a number of nations, and allows licensed vessels of their fleets to fish within the Exclusive Economic Zone.

Table 16.12. REGISTERED COMMERCIAL FISHING VESSELS

Type of vesselAt 30 September
1986198719881989P
Foreign licensed vessels177172174196
Foreign chartered vessels5110688195
Domestic vessels2,3992,4532,9843,221
Shore fishing permits219182166138
Source: Ministry of Agriculture and Fisheries.

Freshwater. The only significant commercial freshwater fishery is the eel fishery. The freshwater fisheries for trout, salmon, whitebait and koura are recreational, although each season there are (unmonitored) sales of whitebait by amateur fishers. Returning salmon are caught in some South Island rivers by salmon farmers and by recreational fishers.

Aquaculture. The oyster farming industry is based on the stick and tray cultivation of the Pacific oyster (Crassostrea gigas), mainly in waters north of Auckland. Mussel farms produce predominantly green-lipped mussels (Perna canaliculus), although some blue mussels (Mytilis edulis) have been harvested. Most mussel farms are in the Marlborough Sounds but mussels are now being reared in the Bay of Plenty, Coromandel and Northland. Commercial farming of quinnat salmon (Oncorhynchus tshawytscha) is carried out as open ocean ranching along the east coast of the South Island where natural stocks of salmon exist in the braided shingle rivers, such as the Waitaki. Cage rearing of salmon is being developed in Stewart Island and the Marlborough Sounds. Scallop reseeding is a newly developed aspect of aquaculture.

16.4 Fish trade

The New Zealand fishing industry is export-oriented, with nearly 80 percent of landings being consigned overseas in 1989. Significant exports of species in 1989 were: orange roughy (14 361 tonnes valued at $147.3 million), squid (78 661 tonnes valued at $124.9 million), and rock lobster ($82.3 million). Table 16.14 shows principal fish exports and table 16.15 principal fish-export markets.

Table 16.13. FISHERIES EXPORTS

Commodity exported198719881989
QuantityValueQuantityValueQuantityValue
* Includes small quantities of inedible oils and meal.
 tonnes$(000) f.o.b.tonnes$(000) f.o.b.tonnes$(000) f.o.b.
Finfish or wetfish109.3429.3156.7533.3166.4549.6
Rock lobster2.7100.82.771.42.782.3
Shellfish (other Crustacea and molluscs)*43.9146.250.6117.188.2186.8
               Total155.96763209.9721.9257.4818.7

Table 16.14. PRINCIPAL FISH EXPORTS

Species198719881989
QuantityValueQuantityValueQuantityValue

* Processed fish fibre mainly from hoki.

† Estimated.

Source: Ministry of Agriculture and Fisheries.

 tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.
Barracouta11.117.011.113.99.912.2
Hoki20.647.528.645.116.636.1
Jack mackerel10.211.512.212.510.011.3
Mussels4.117.96.124.36.928.8
Orange roughy13.6147.319.5169.414.4167.2
Oreo dory3.616.04.615.44.519.3
Paua0.412.50.51400.411.8
Rock lobster2.4100.82.771.42.782.3
Snapper5.043.65.443.46.752.6
Squid35.597.134.652.978.7124.9
Surimi*19.063.021.776.719.055.1
Warehous3.311.35.713.44.211.1

Table 16.15. VALUE OF FISHERIES EXPORTS TO PRINCIPAL MARKETS

Country198719881989
ValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total export's

* Includes exports to other markets.

Source: Ministry of Agriculture and Fisheries

 $ m f.o.b. $ m f.o.b. $ m f.o.b. 
Japan281.042336.046361.044
United States241.036213.030229.028
Australia63.91077.91180.210
Total fisheries exports6763 721.9 81.8.9 

Within New Zealand, the trend in recent years has been towards greater fish consumption per capita. For 1986 (the latest year available) it was estimated at 19.6 kilograms green weight. Imported fish products consist largely of canned sprats, sardines, anchovies, herrings, salmon, crab sticks and prawns.

New Zealand Fishing Industry Board

The New Zealand Fishing Industry Board was formed in 1964 to promote the interests of all sectors of the fishing industry. It is a statutory organisation with income from an industry levy. Outside its major responsibilities for orderly and profitable development of the industry, the board deals with issues at the request of individual fishers, processors, retailers, and fish farmers.

Practical involvement with the industry is maintained by the presence on the board of two fisher representatives, two fish processing representatives and a fish retailer. These are elected by their respective organisations. An independent chairperson, the Director-General of the Ministry of Agriculture and Fisheries or a nominee, and one other member appointed by the Minister of Fisheries, complete the board's membership.

Continual communication with fishing and governmental organisations in many other countries is fostered. This exchange of information enables the board to bring to the industry a great diversity of developments in technology and fisheries policy areas.

Board staff, stationed in Wellington, provide centralised support for the industry in the areas of economic research, information and publicity. There is also close liaison with the Fishing Industry Training Council, in the provision of industry training at all levels.

Foreign licensed fishing

Since the Territorial Sea and Exclusive Economic Zone Act came into effect in 1978, foreign trawling activity has been strictly controlled and catch limits enforced. Quotas have been issued, and licensed access agreements have been negotiated between New Zealand and the Republic of Korea, the Soviet Union and Japan.

Applications by foreign countries to fish must include plans showing areas to be fished, numbers and sizes of vessels, and target species. Apportionments are made to countries for specific quantities by area, and fees are set on the basis of the value of the quota of each species allocated. By-catch levels are set for selected species.

Table 16.16. ALLOCATIONS TAKEN DP BY OTHER NATIONS: FINFISH AND SQUID FISHERY, 1988–89

CountryYear ended 30 September
FinfishSquid
 tonnes
Korea, Republic of3,8033,303
U.S.S.R.
Japan28,71831,345
Source: Ministry of Agriculture and Fisheries.

In the 1988–89 season authorisations were given for the Japanese to operate tuna longliners without tonnage restriction in the southern bluefin tuna fishery, and for Japan and Korea to operate 22 and 15 vessels respectively in the albacore fishery in the northern regions of the Exclusive Economic Zone.

To enable local fishing interests to gain more knowledge of advanced fishing techniques, fish handling and fish processing, government encouraged the operation of co-operative fishing ventures with foreign partners during the five years to March 1983. This development phase then ended and the resource was allocated to New Zealand interests only, with the use of foreign vessels on charter available as an alternative to using domestic vessels.

Fishery statistics

Statistics on fish landed and fish exports are compiled annually by the Ministry of Agriculture and Fisheries. A selection of these can be found above, while more detailed information is available from the ministry.

The Department of Statistics' five-yearly Census of Fishing has produced broad economic data on the industry and the results of the most recent (1983–1984) census were published in the last edition of the Yearbook, More up-to-date statistics will become available from the survey of the industry undertaken as part of the 1987 Economy Wide Census, results of which will be published in 1990.

Contributors

  • 16.1 Ministry of Forestry; Department of Statistics; Forestry Corporation of New Zealand.

  • 16.2 Ministry of Forestry.

  • 16.3 Ministry of Agriculture and Fisheries.

  • 16.4 Ministry of Agriculture and Fisheries; New Zealand Fishing Industry Board.

Historical

Ministry of Forestry; Department of Statistics; Ministry of Agriculture and Fisheries.

Further information

Forestry

A National Exotic Forest Description. Ministry of Forestry, 1988.

Census of Forestry and Logging 1983–84. Department of Statistics.

Market Report. Ministry of Forestry (quarterly).

Report of the Ministry of Forestry (Parl. paper C 16).

Statistical Handbook. Ministry of Forestry (annual).

Statistical Releases. Ministry of Forestry (series).

The Forestry Sector in New Zealand. Ministry of Forestry, 1988.

Fishing

Catch. Ministry of Agriculture and Fisheries (monthly).

Contacts in Fishing. Ministry of Agriculture and Fisheries (biennial).

Fisheries Research Division Occasional Publications: Data Series. Ministry of Agriculture and Fisheries.

Freshwater Catch. Ministry of Agriculture and Fisheries (quarterly).

New Zealand Census of Fishing 1983–84. Department of Statistics.

New Zealand Journal of Marine and Freshwater Research. Department of Scientific and Industrial Research (quarterly).

Report of the Ministry of Agriculture and Fisheries (Parl. paper C. 5).

Report of the New Zealand Fishing Industry Board (Parl. paper C. 6).

Chapter 17. Energy and minerals

17.1 Energy sector

Recent policy changes

Until recently the New Zealand energy sector was subject to centralised government control, but the emphasis has now changed to a greater reliance on the market as an economic regulator. There has been a shift in focus from supply factors to the needs of the consumer.

The current thrust of energy policy is to provide greater efficiency of energy use, to increase competition within the energy sector, and to provide greater flexibility in meeting consumer requirements. The restructuring of the sector and reduction of government's role has resulted in the merger of the Ministry of Energy into an Energy and Resources Division within the Ministry of Commerce. This change took effect from 1 December 1989.

The ministry's residual functions in natural gas, synthetic petroleum and geothermal activity are now administered by the Ministry of Commerce.

In 1987 the former Electricity Division and State Coal Mines of the Ministry of Energy became state-owned enterprises: the Electricity Corporation of New Zealand Limited (Electricorp) and the Coal Corporation of New Zealand Limited (Coalcorp). They have limited liability under the Companies Act 1955 but remain subject to special accountability and control provisions, under the State Owned Enterprises Act 1986.

Deregulation. This has been the principle means used by the Government to free up the energy market. Initially the process began with the oil industry and resulted in the removal of price controls from diesel in mid-1987 and from petrol early in 1988. The licensing of petrol wholesaling and retailing has been abolished.

More recently, price controls have been removed from the electricity industry and the Government has decided that Trans Power, the Electricity Corporation subsidiary that operates the national grid, should be separated from the corporation.

Government has also decided that price controls will be removed from the gas industry except for the Natural Gas Corporation's wholesale activities.

The exclusive franchise areas for both gas and electricity supply authorities are to be removed, and the authorities are, in future, to operate as limited liability companies.

Maui gas. The Government is currently renegotiating its Maui gas supply contract with Electricorp. The contract is to be based solely on commercial considerations.

Reviews. The most significant recent development in the energy area has been the Resource Management Law Reform Review conducted over the last two years. (See section 14.2, Environmental and resource management.)

Proposed amendments to the mining, coal mines, petroleum, geothermal and atomic energy legislation, providing for a new allocation of mineral and geothermal energy rights and management of Crown-owned minerals, are contained in the Resource Management Bill, which was passing through Parliament at the time of going to press. A major review of the occupational safety and health area—affecting the mining, coal mines, petroleum and quarries and tunnels legislation—was also in progress.

Energy consumption

Table 17.1 provides data from which the trends in New Zealand's consumption of primary energy since 1924 can be seen. ‘Primary energy’ is energy first obtained from natural sources, which means coal is accounted for as it is mined, oil products as they are imported in various degrees of refinement, natural gas as it is taken from the wells at Kapuni and Maui, and so on. Oil imports decreased as a percentage of total consumption of primary energy during 1984–88 from 32 to 24 percent.

Table 17.1. TRENDS IN THE CONSUMPTION OF PRIMARY ENERGY

Calendar yearCoalWood*OilNatural gasPrimary electricityTotal;Imported oil as percentage of total
ImportedIndigenous

* Estimated.

† Excludes gas used as feedstock in methanol and ammonia urea plants.

‡ Because of rounding, totals may differ slightly from sums of individual figures.

Source: Ministry of Commerce.

 petajoules
192475..100.58611
193456..1937824
194472..30710928
195466..591413942
196466..1033420351
197462..1938145533258
19845215142411157744232
19855216134491407546630
19865017100531698347221
19875717135561709052526
1988P5820127701748553424

In the table ‘primary electricity’ shows electricity generated from hydro and geothermal sources. For these, generation efficiencies are ignored, and the measure of the primary energy is electricity generated. This is justifiable in the case of hydro-electricity, where the generation efficiency is high, but a large quantity of energy is wasted in producing electricity from geothermal heat. However, the wasted energy is low grade, and for the sake of simplicity is not shown in the table.

Table 17.2 provides a similar historical description of consumer energy use, while table 17.3 describes how primary energy supply was used to meet demand in the major sectors of the economy for 1988. Energy use in these sectors is expressed as percentages of the total in table 17.4.

In a number of tables in this chapter, energy is measured in petajoules. The joule is the metric unit of energy and makes comparisons between the different forms of energy possible. For convenience the petajoule, (PJ) or 1015 joules is often used, along with the terajoule, or 1012 joules.

Table 17.2. TRENDS IN CONSUMER ENERGY USE

Calendar yearSolid*OilGasElectricityTotal

* Includes wood

Source: Ministry of Commerce.

 petajoules
19245952166
193449192373
1944623028102
19545559216132
19644890230170
197441151758257
1984401404883311
1985351365484309
1986411415388323
19874214054105341
1988P551564394348

Table 17.3. ENERGY SUPPLY AND DEMAND, 1988

 Source of energyTotal
Solid fuelOilGasHydro/ geothermalElectricity

* Decreases in stock levels appear as negative stock changes. Such decreases in stocks have to be added to indigenous production (+ imports − exports) in order to obtain figures of energy consumed. Increases in stocks have to be deducted from production in order to obtain figures of energy consumed.

Includes fuel used in gas manufacture, and production of solid fuels such as cones from carbonisation plants, etc.

Source: Ministry of Commerce.

 petajoules
Indigenous production78.6270.50174.5084.78466.22
Plus, Imports0.00127.06127.06
Less, Exports(11.90)(23.40)(35.30)
Less, International transport(22.10)(22.10)
Stock changes*2.94−4.40−1.46
          Primary energy consumed63.78156.46174.5084.780.0053734
Less, used in electricity generation6.800.0754.8084.78198.27
Less, used in liquid fuel production178.5054.500.32233.32
Less, manufactured gas0.200.300.781.28
Plus, secondary production0.00186.400.11105.16291.67
          Total energy available56.78164.0064.53104.84396.14
Less
Consumption by energy sector and losses6.200.752.1710.5019.62
Non-energy use7.7317.6825.41
          Total consumer energy (calculated)50.58155.5244.6994.34345.12
          Total consumer energy (observed)50.53156.6043379435350.85
Energy demand—
     Industry40.3020.3029.305.8040.45136.15
     Transport0.08127.904.170.30132.45
     Domestic8.450.804.600.0735.0048.92
     Commercial and other uses1.707.605.300.1318.6033.33
     Error−0.051.08−1.320.000.015.74

The following points should be considered when examining table 17.3:

  • The Taranaki synthetic fuels plant production is included with refinery production in row ‘secondary production’.

  • The high use of oil by industry is attributed to the use of motor vehicles and trucks in that sector.

  • Lpg production is included in indigenous oil production.

Table 17.4. MARKET SHARES OF ENERGY RESOURCES, 1988

SourceIndustry and commerceTransport (incl. international transport)HouseholdsThermal electricity generation

* Estimated.

Source: Ministry of Commerce.

 percent
Oil15.695.21.70.2
Solid fuel*28.40.120.414.8
Gas (natural and manufactured)24.24.68.385.0
Electricity31.80.169.6
               Total100.0100.0100.0100.0

Fossil fuel resources

Energy sources in New Zealand are many and diverse. They range from renewables such as solar radiation to non-renewables such as coal and oil.

Oil. This is the primary fuel source in New Zealand, but the country does not produce enough for domestic consumption, hence the continued need for imported oil products. Oil/condensate and gas production, and estimates of reserves are set out in table 17.5.

Table 17.5. FIELD PRODUCTION OF OIL/CONDENSATE AND GAS, AND ESTIMATES OF RESERVES, 1988

FieldOil/condensateGas
Cumulative productionRecoverable reservesCumulative productionRecoverable reserves

* Millions stock tank barrels.

Billions cubic feet.

Source: Ministry of Commerce.

 MMstb*Bcf
Kapuni41.1714.23546.89482.01
Maui28.7489.46663.802 452.00
McKee13.7422.06P11.3293.27
Kaimiro0.191.20P3.2346.11
Stratford0.030.210.637.58
Waihapa1.0816.911.1818.61
Tariki0.011.500.2743.53
Ahuroa0.010.750.2728.28

Gas. Natural gas in New Zealand is a premium energy resource, although its use is largely confined to the North Island. The Maui field is the largest reserve.

Economically gas is not as valuable as oil, as it is difficult to transport and therefore does not have the same international market. Crude oil and gas production are detailed in table 17.6.

Coal. Coal represents New Zealand's largest indigenous fossil fuel resource. Coal has property variations which are primarily dependent on the environment of deposition, thus coal from one area cannot necessarily be substituted for coal from another. Most coal is found in the south of the South Island.

Recoverable coal classified by region is detailed below. See also section 17.4

Table 17.6. RECOVERABLE COAL BY REGION

RegionPetajoulesCoal type
Waikato18,000sub-bituminous
Taranaki3,600sub-bituminous
Westland9,000sub-bituminous and bituminous
Canterbury20sub-bituminous
Otago15,000sub-bituminous and lignite
Southland72,000sub-bituminous and lignite
               Total117 620all types
Source: Ministry of Commerce.

Renewable resources

Hydro. Compared to many other countries, New Zealand has a relatively high rainfall and steep terrain, factors which have enabled the country to harness an abundance of hydro power.

Approximately 76 percent of all New Zealand's electricity needs comes from hydro generation, and about 65 percent of the resource was produced in the South Island in 1988–89 (total 14 310 GWh) (51 PJ per annum). Surveys of potential capacity indicate another 50 000 GWh per annum (180 PJ per annum) could be available although most of the largest, and commercially viable rivers have already been harnessed. The hydro resource can generally only be used for electricity generation.

Geothermal. New Zealand has abundant resources of geothermal energy. There are nearly 200 separate geothermal fields or hot springs in the country. It is estimated that there is a potential resource of over 75 000 PJ in terms of heat stored above 80°C.

The efficiency of conversion into electricity is generally less than 15 percent, meaning the useful output is small compared to its stored energy. Steam from the Wairakei field is used for the generation of electricity, and a station was commissoned at Ohaaki early in 1989.

Other renewable resources. Research has been carried out on the conversion of biomass to energy. Limited use is made of wind for pumping water in remote areas. Solar energy and tidal ranges are as yet untapped sources of energy in New Zealand.

17.2 Electricity

New Zealand's topography, particularly in the South Island, is well suited to hydro-electricity generation and this factor dominates the country's electricity supply. In the year ended 31 March 1989, hydro stations generated 78 percent of the nation's electricity. Of the balance, 18 percent was produced by conventional thermal generation fueled by gas, coal and oil, and the remaining 4 percent came from the geothermal power stations at Wairakei and Ohaaki.

The structure of the electricity industry is essentially two-tiered. The first tier being the Electricity Corporation of New Zealand, which is responsible for the generation of most of the country's electricity and its transmission by way of a national grid. At the second level, supply authorities buy this bulk electricity, distribute, and sell it to the end consumer.

Electricity Corporation of New Zealand Limited

The Electricity Corporation's role is the economic and efficient generation and delivery of electricity to supply authorities.

On 1 April 1987 the former Electricity Division of the Ministry of Energy became the Electricity Corporation of New Zealand Limited. The new state-owned enterprise reorganised itself extensively, and this resulted in five autonomous business divisions being set up. These relate to the major elements of the company structure. They are the Production Division, Electricorp Marketing, a national grid division, the Power ‘Design-Build’ Group (which comprises two subsidiaries: ‘Design-Power’ and ‘Power-Build’), and the Corporate Group.

With the merger of the Ministry of Energy, the Ministry of Commerce sets rules and standards for the electricity industry, such as for the safety of electrical workers, and for electrical appliances. It also administers regulations for the supply of homes and businesses, and advises the Government on all aspects of the electricity sector.

Table 17.7. ELECTRICITY CORPORATION OF NEW ZEALAND PROFIT STATEMENT

ItemYear ended 31 March
19891988
 S(000)$(000)
Income1 455 2811 325 663
Expenses, excluding finance costs639,619654,757
Profit before finance and taxation815,662670,906
Finance costs323,261474,772
Profit before taxation492,401196,134
Taxation139,30554,918
Profit after taxation353,096141,216
Less: Extraordinary item21,393
Profit after taxation and extraordinary item331,703141,216
Less: Dividends246,797108,000
Transfer to reserve18,64024,371
Total appropriations265,437132,371
Retained earnings for the year66,2668,845
Opening retained earnings8,845
Closing retained earnings75,1118,845
Source: Electricity Corporation of New Zealand.

Electricity generation

The Electricity Corporation of NZ Ltd has 38 power stations (see table 17.11) which produce 96 percent of the country's electricity. The other 4 percent comes from supply authorities' own generation schemes.

The first government scheme was opened in 1915 at Lake Coleridge, beginning a policy of hydro development which resulted in the construction of 15 hydro schemes before the first thermal station was built at Meremere in 1958.

As at 31 March 1989 the Electricity Corporation had 29 hydro-electric stations, with a maximum capacity of 4719 megawatts (65 percent of total capacity) while the remaining nine thermal stations had a capacity of 2528 megawatts (35 percent of total capacity). The high fuel costs involved in operating thermal stations as compared to hydro generally mean that hydro stations produce a larger percentage of the nation's electricity.

Table 17.8. ELECTRICITY SOURCES

Year ended 31 MarchHydroGeothermalFossil fuelsTotal
 KWh(million)
198519,0781,2065,46825,752
198618,6591,1096,18925,957
198720,5821,1745,19226,948
198820,8911,1835,42427,498
198921,9001,2375,05228,189
Source: Electricity Corporation of New Zealand.

Table 17.9. ELECTRICITY GENERATION AND DISPOSAL

Year ended 31 MarchElectricity CorporationSupply authoritiesOther sources*TotalSold retailNon-productive

* Including local hydro.

Source: Ministry of Commerce.

 kWh(million)
198323,6196661624,30121,3712,930
198424,9978411725,85523,0272,828
198525,7549921926,76523,9942,771
198625,9851,0191327,01724,2752,742
198726,9901,163728,16025,3492,811
198827,4751,1981328,68625,8052,883

Table 17.1. ELECTRICITY MARKETS

Year ended 31 MarchDomestic*IndustrialCommercialFarmingPublic lightingRail and bus tractionTotalElectricity account holders

* Includes domestic water-heating units.

Source: Ministry of Commerce.

 kWh(million)number
19838,7338,2313,7345161282921,3711 396 783
19848,9819,4243,9624991303123,0271 417 606
19858,9989,9954,2246131353023,9941 436 730
19869,08010,0384,4175781323024,2751 462 735
19879,42410,4724,7225671333125,3491 488 253
19889,42310,7324,9165661383025,8051 509 209

Table 17.11. ELECTRICITY CORPORATION POWER STATIONS

StationInstalled capacity at 31 March 1989Static headEnergy generation year ended 31 March
Number of unitsMW*19881989

* In-situ maximum' rating.

Source: Electricity Corporation of New Zealand.

Hydro  metreskWh(million) 
Arapuni8160538221,038
Aratiatia38434331437
Atiamuri47925287366
Karapiro39630518632
Mangahao5192739899
Maraetai10360617991,059
Matahina27261168249
Ohakuri411235400507
Rangipo2120206454673
Tokaanu42002086861,017
Waikaremoana—
     Kaitawa234135561620
     Piripaua240113
     Tuai358206
Waipapa35116241307
Whakamaru410038487586
Arnold23132421
Aviemore4220371,013946
Benmore6540922,5622,453
Cobb632594196207
Coleridge935149259226
Highbank1251019163
Manapouri75851774,5134,415
Ohau ‘A’4248581,2861,177
Ohau ‘B’4212481,046952
Ohau ‘C’4212481,052951
Roxburgh8320461,4821,368
Tekapo ‘A’12530122149
Tekapo ‘B’2140146844844
Waitaki710521549538
          Subtotal, hydro1244 28720 89121 900
Thermal
Huntly49604,5803,877
Marsden2114−13−5
Meremere611228100
New Plymouth55757951,002
Ohaaki5108 47
Otahuhu690−31
Stratford42003676
Wairakei91531,1831,190
Whirinaki421611
          Subtotal thermal452 5286 6076 289
          Total1696 81527 49828 189

Although there is still potential for further hydro development, the only project currently under construction is the Clyde Dam which will have a maximum capacity of 432 MW and is expected to be commissioned during 1991. The Ohaaki geothermal station, which has a capacity of 100 MW, was commissioned in 1989.

While the Electricity Corporation will probably be the major generating organisation in New Zealand, it and the present supply authorities may not be the only participants in the market.

New regulations for the electricity transmission industry came into effect on 1 January 1988, and there are no longer restrictions on who can generate electricity. Electricity produced may be sold to either the corporation or other customers. All parties will have the right of access to the national transmission network on non-discriminatory terms.

Planning for electricity. Since 1987 the Electricity Corporation has been responsible for forecasting future electricity consumption and drawing up a parallel construction programme to ensure the expected need is met. This was previously the task of the Electricity Sector Forecasting Committee and the Ministry of Energy.

Transmission

The transmission system, the national grid, links all the power stations together, allowing them to operate as an integrated whole. Every generating station is connected to the network, as well as all the points at which supply authorities access the system. These points of supply as they are known, are where the electricity is sold to the supply authorities by the Electricity Corporation.

An important part of the national grid is the Cook Strait cable which connects the transmission systems of the North and South Islands. This allows the surplus generation of the South Island to supply the North Island, where there is the greatest demand.

Supply authorities

Electricity distribution to end consumers is the responsibility of 52 supply authorities (eight less than the number two years ago, as the result of amalgamation). The authorities are licensed to supply electricity to particular areas under the terms of the Electricity Act 1968. They buy electricity in bulk from the Electricity Corporation of NZ Ltd and then sell it to individual consumers.

The ownership of supply authorities, their area franchises and obligation to supply are currently under review by the Government (see ‘recent policy changes’ at the beginning of this chapter).

Table 17.12. SUMMARY OF ELECTRICITY INDUSTRY, 1988

ItemUnitYear ended 31 March

* In-situ maximum' rating.

Includes starting oil.

Excluding stocks of materials.

Source: Ministry of Commerce.

Generating stationsno.95
Capacity of generators*kW (000)7,398
Fuel used—
     Coaltonnes262,911
     Light oiltonnes4,873
     Heavy oiltonnes
     Natural gasterajoules49,753
Staff employedno.14,632
Capital expenditure (less provision for depreciation)
     During year (net outlay)$(m)588
     To date$(m)8,011
Generation and sales—
     Generation per head of mean populationkWh8,650
     Retail sales per head of mean populationkWh7,781
     Domestic consumption per domestic consumerkWh7,585
Income from total retail sales of electricity per kWh sold to consumerscents7,363

Local hydro. Twenty-six supply authorities run small generating schemes ranging in output from 0.2 MW to 53 MW. They accounted for 4.5 percent of the nation's electricity needs in 1988–89, with a total capacity of 316 MW.

Rural Electrical Reticulation Council. The council has the responsibility of providing annual subsidies towards the cost of supplying electricity to areas which could not by themselves meet the expense of reticulation. These subsidies are funded by an annual levy on electricity sales. The council subsidises not only distribution lines but also private generating sets when these are a more economical alternative.

Although most of the country is reticulated with electricity, there are still a few areas which are not, such as the off-shore islands and remote rural district's. The largest unreticulated community is Great Barrier Island.

In 1988–89 subsidy payments to 29 power boards and 41 private generating set owners totalled $1.99 million.

The future of the council is under review.

17.3 Oil and gas

Primary production of oil and gas in New Zealand originates from the following mining licences: Kaimiro and McKee (Petrocorp and Waihapa Consortium) and Kapuni and Maui (Shell/BP/Todd and Petrocorp's Offshore Mining Ltd). Liquid petroleum gas is produced from Maui and Kapuni by Shell/BP/Todd and the Natural Gas Corporation of Petrocorp (NGC); the latter also produces carbon dioxide from Kapuni gas. All of these licences are in the Taranaki region.

Oil industry

Processing. About one-quarter of New Zealand's net petrol needs are derived from the jointly-owned synthetic petrol plant at Motunui, 75 percent of which is owned by the Government, and 25 percent by Mobil Corporation. The balance is produced at the Marsden Point Refinery owned by BP/Europa, Mobil, Shell and Caltex, with a 30 percent non-oil-company shareholding. The main refinery feedstocks are indigenous condensate and crude oil, and various imported oils.

Distribution. Over 30 percent of total oil supply is distributed through the refinery-owned Auckland pipeline linking Marsden Point and Wiri in South Auckland. The balance is distributed by coastal tankers chartered by four large wholesalers. At the main ports, and at Wiri, products are stored in wholesaler tankage, and each wholesaler distributes by road tanker to retailers and bulk customers.

Petroleum imports and domestic production

Before 1976 virtually all of New Zealand's oil supplies were imported. The major development in petroleum supply during that period was the establishment of New Zealand's only refinery at Marsden Point, which commenced operations in 1964. This refinery initially used only imported feedstocks.

From the early 1970s a growing volume of locally-produced crude oils has been included in the feedstock slate of the Marsden Point refinery; and now make up about 30 to 40 percent of the refinery's intake. These local crude oils consist of the condensates associated with the gas off take from the Kapuni and Maui fields, and crude oils produced from Petrocorp's onshore Taranaki fields—especially the McKee field, although production from the Waihapa field is increasingly important.

The other major local production of petroleum fuel takes place at the Motunui synthetic gasoline plant in Taranaki. This plant uses Maui natural gas to make a gasoline which could be used immediately in some motor vehicles, but which needs some further processing to be suitable for vehicles with high compression motors.

The original expectation was that the expanded Marsden Point refinery, which came fully on stream early in 1987, together with the Motunui synthetic gasoline plant, would supply all of New Zealand's petroleum fuel needs apart from the small amount of aviation gasoline which has to be imported for piston-engined aircraft. With account taken of local feedstock used at the refinery, this would have led to around 50 percent of New Zealand's petroleum fuel consumption being locally sourced.

However, as synthetic fuel is, effectively, sold to the highest bidder, it has often been exported and refined gasoline has been imported from overseas to replace it. There has always been some export of refined petroleum products from New Zealand in the form of supply to international shipping and aircraft. Currently, use of the expanded refinery is being maximised, resulting in refined product exports of about 10 percent of the volume of local consumption.

Crude oil and gas production figures are set out in table 17.13. Statistics on field production and reserves are contained in table 17.5.

Table 17.13. CRUDE OIL AND GAS PRODUCTION

YearCrude oilGas
New Zealand productionImportsTotalExportsNet natural gas productionManufactured gas productionTotal
 petajoules
198438.1971.57109.76104.000.95104.94
198555.7940.1895.9729.02132.340.70133.04
198661.5148.65110.168.38165.050.49165.54
198758.69102.82161.514.66160.080.15160.23
198863.70112.81176.5113.71174.370.11174.48
Source: Ministry of Commerce.

Oil refinery. For most years since the Marsden Point refinery commenced operation in 1964 it has produced all local consumption of bitumen, and of the fuel (or furnace) oils needed for industry, power generation and shipping. It has also produced most of the local consumption of gasoline (petrol) and of diesel. Before the expansion came fully on stream the petrol produced at Marsden Point was about 75 percent of local consumption and the diesel was about 60 percent. Since early 1987 virtually all the consumption of diesel and kerosene (including jet aircraft fuel) has come from Marsden Point. However, the refinery cannot meet all New Zealand's demand for petrol. The expansion was given a bias towards diesel and jet fuel rather than towards petrol because of the petrol available from Motunui. The refinery also has the capacity to blend (raise the octane level of) Motunui's production, and also to supply all New Zealand's petrol consumption if required.

The Marsden Point refinery acts as a seller of the refining service. It does not purchase crude or sell refined product. Its clients are the oil marketing companies—BP, Caltex, Mobil and Shell, which in combination own approximately 70 percent of the shareholding in the New Zealand Refining Company. The other 30 percent shareholding was initially held by the New Zealand public, but one-third of this portion has now been acquired by Petrocorp.

Distribution and retailing. From the late 1930s until May 1988 petrol selling in New Zealand was licensed. Initially this was part of overall industry licensing introduced by the Labour government of 1935–49.

From the early 1950s there was a world-wide trend for oil companies to acquire ownership of petrol retailing sites and require their lessee retailers to market only their own brand of fuel. Prior to this, it was common for retailers to sell more than one brand of petrol. When, in the mid-1950s, the general industrial licensing scheme was being phased out, a special licensing system for petrol marketing was introduced. This was done mainly to protect Europa, the then New Zealand-owned oil company, from being outbid by the international oil companies in the purchase of petrol retailing sites.

A licence was required to wholesale or retail petrol, and the system aimed to keep wholesaling and retailing under separate ownership and to limit the financial involvement of wholesalers in the retailing sector. This was done through the conditions attached to licences. Licensing applied to petrol only and not to other petroleum fuels. Nevertheless, it had effects on the marketing of other fuels also. A major effect, due to the way in which licensing was administered rather than to the structure of the licensing system, was that there were no new entrants into the bulk supply and wholesaling area for petroleum products generally. The only large companies marketing petroleum fuels were BP, Caltex, Europa, Mobil and Shell. During the 1970s Europa passed into the ownership of BP, thus leaving only four major petroleum fuel companies.

Deregulation of the petroleum industry. In addition to the licensing control over the wholesaling and retailing of petrol, there were for many years controls over the wholesaling of petrol, automotive grade diesel, and the two major grades of fuel oil used in industry. In the case of petrol, wholesale prices were controlled on a minimum as well as on a maximum basis, so that discounting was illegal. There was also an understanding between government and the oil companies that the latter would maximise their use of the Marsden Point refinery in obtaining their fuel supplies, and would import in a refined state only those fuels which the refinery was unable to supply. This understanding had been strengthened and formalised prior to the expansion of the refinery. On its part, government gave undertakings which effectively guaranteed that refinery expansion loans, of over $2 000 million, would be repaid to international bankers.

Deregulation involved the removal of all price controls, all licensing controls imposed by government, and the exposure of the Marsden Point refinery to the possibility of competition from the import of refined products. This latter factor was of prime importance because, without it, the New Zealand Refining Company may have been able to take advantage of its monopoly.

Competition could come from refined-product imports made by existing oil companies, or from the establishment of new oil marketing companies not associated with the refining company. The latter possibility was related to the issue of licensing controls. While it was necessary to expose the refinery to competition in order to obtain the full benefits of deregulation, it was also necessary to ensure that repayment of the expansion loans was not jeopardised, and that the refinery then had a reasonable chance to remain viable.

Early in 1988 an agreement concerning the future of the refinery was reached between government and the four oil companies, which are the refining company's major shareholders and customers. Government took over responsibility for all of the refinery's outstanding expansion loans for which it had been making the payments on an interim basis since October 1986. Most of the loan takeover was in the form of a grant. However, $400 million was by way of a suspensory loan from the Government to the refining company, to be written off after five years, but to become repayable (on a reducing scale) should the sale of the refinery take place during that period. Furthermore, to assist the refining company to compete, the Government would pay it a grant of $85 million over a three-year period commencing in August 1988.

This agreement opened the way to full deregulation in May 1988. This meant the removal of the maximum price control on petrol and the requirement for a licence from the Government to wholesale or retail petrol. Minimum price control on petrol and maximum price control on diesel and fuel oils was removed, respectively, in February and July 1987.

Oil and gas exploration

Many of the sedimentary basins around New Zealand have long been recognised as having the potential to contain reserves of oil and gas. Commercial hydrocarbon discoveries have been made in the last 30 years and there are now major gas-condensate and oil producing fields (Kapuni, Maui, McKee, Kaimiro and Waihapa) in Taranaki. Petroleum exploration and development is regulated by the Ministry of Commerce, and prospecting and mining licences are necessary for exploration and exploitation respectively. At the end of 1989 there were ten petroleum mining licences for the Taranaki Basin region, one offshore and nine onshore.

Since 1985 large areas have been advertised for exploration under block offers, and many new petroleum licences have been taken up. Advertised blocks are located in various sedimentary basins including offshore and onshore Taranaki, offshore and onshore on the east coast of the North and South Islands, onshore Southland and onshore Westland. Many parts of New Zealand's potentially hydrocarbon-bearing basins have yet to be fully evaluated, and the prospects are by no means exhausted. Previous exploration data are available from the New Zealand Geological Survey, a division of the Department of Scientific and Industrial Research.

Gas fields and resources

Natural gas in New Zealand is largely confined to the North Island. There are currently four gas fields in production: Kapuni, Maui, McKee and Kaimiro. The largest of the four is the offshore Maui field which, in conjunction with Kapuni, supplies most of New Zealand's gas.

Distribution network. Gas production in New Zealand is centred in and around the region of Taranaki, both onshore and offshore. A pipeline network extends to Wellington, in the south, and to Whangarei in the north. It also extends to the east coast, at Napier/Hastings and Gisborne, and into the central North Island at Taupo.

Nearly all of the gas pipeline network is owned by the Natural Gas Corporation, which is a subsidiary of Petrocorp (part of the Fletcher Challenge Group),—the major exception being the Maui Development Limited pipeline from Oaonui to Huntly. There are other short pipelines owned by various companies, but these tend to be operated by the Natural Gas Corporation.

Downstream industries. About a third of the gas produced in New Zealand is used by the New Plymouth, Huntly and Stratford power stations to produce electricity. Another third goes into the production of gasoline at the synthetic fuel plant at Motonui, and about 12 percent is used to produce methanol at Waitara. Domestic users, although constituting a large number, only use about 2 percent of gas produced. Industrial and commercial users use about 25 percent, the building industry and secondary production, in the form of dairy factories, pulp and paper mills, and freezing works, making up a large proportion of this group. The ammonia-urea plant at Kapuni is another large user, but this uses solely Kapuni gas.

Consumption patterns and trends. Natural gas production has increased from 88 PJ in 1983 to 186 PJ in 1989. The trend over recent years is outlined in table 17.14.

Table 17.14. NATURAL GAS SUPPLY

Year ended 31 DecemberTo gas utilitiesOther usersTotal production
 terajoules
198527,307116,792144,099
198628,015146,858174,873
198727,088142,337169,425
198825,618156,298181,916
198923,870162,554186,424
Source: Ministry of Commerce.

17.4 Coal and minerals

New Zealand's mineral resources are diverse, but mining is generally on a small scale. Coal, ironsand, clays, and sand and gravel for construction are the main minerals mined. Total production of non-metallic minerals (excluding coal) in the 1988 calendar year was valued at about $220 million, while metallic minerals totalled about $75 million. Mineral production for 1987 and 1988 (the latest years for which figures are available) is summarised in table 17.15.

Coal industry

New Zealand's coal producers include those in the private sector and the state-owned Coal Corporation of New Zealand. Coalcorp is the major producer with 15 mines which produce approximately 66 percent of all coal mined—the remaining 34 percent is produced by some 53 smaller, privately-owned mines.

Coal occurs widely in New Zealand. The major areas of coal formation have been divided into seven coal regions (Northland, Waikato, Taranaki, Nelson-Westland, Canterbury, Otago and Southland) with the major coal producing regions being Waikato, Westland and Southland.

The more important producing coalfields, with the class of coal found in each are:

  • Bituminous—Greymouth, Buller, Garvey Creek.

  • Sub-bituminous—Maramarua, Huntly, Rotowaro, Ohai.

  • Lignite—eastern Southland.

Other coalfields with the potential to become major producers are Waikare, (sub-bituminous), Mokau (sub-bituminous), Central Otago (lignite) and Kaitangata (lignite).

New Zealand coals are young by world standards (15–75 million years) and the geological conditions allowed coal formation to continue to the present day (for example, peats in the Waikato). Coals of this age and bituminous rank, as occur in Westland, are not common and are only found in countries such as Japan and New Zealand which have an active geological environment.

The young age of New Zealand's coking grade coals has given rise to some valuable properties which, together with low to exceptionally low ash contents, makes them attractive to world markets. The active geological history during the time of coal formation and since has, however, resulted in difficult mining conditions.

New Zealand's recoverable coal resource consists mainly of lignite (82 percent). Sub-bituminous resources make up 14 percent, and bituminous resources less than 4 percent. This is in contrast to current production, of which lignite is 10 percent, sub-bituminous, 70 percent, and bituminous, 20 percent.

Mineral production and resources

Prospecting regulations. Legislative control of mineral production is contained in the Mining Act 1971 (with Amendment), the Coal Mines Act 1979, the Iron and Steel Industry Act 1959, the Quarries and Tunnels Act 1982, the Atomic Energy Act 1945, and the Continental Shelf Act 1964. The administrative agency is the Resource Allocation Group in the Ministry of Commerce. The Resource Management Bill, which was before Parliament at the time of going to press, contains proposed amendments to mining and other resource legislation (see section 17.1 Reviews, and also section 14.2 Environmental resource management).

Table 17.15. MINE AND QUARRY PRODUCTION

Mineral1987*1988*
QuantityValueQuantityValue

* Year ended 31 December.

Production by Coal Corporation included in ‘private coal’ from 1988.

Source: Ministry of Commerce.

 tonnes$(000)tonnes$(000)
Fuels—
     State coal266,142......
     Private coal2 135 814..2 400 556..
Metals—
     Gold1.14826,6012.40451,040
     Iron ore2,109102902
     Ironsand concentrate2 292 26128,9702 351 30323,374
     Silver....1.844 689534
Non-metals—
     Bentonite....1,25597
     Clay for bricks, tiles, etc.63,67121487,892322
     Clay for pottery, etc25,54838929,6491,237
     Dimension stone29,3761,98517,5431,309
     Dolomite for agriculture6,45972....
     Dolomite for industry6,4597224,061439
     Greenstone1.454......
     Limestone for agriculture822,9428,811708,4048,093
     Limestone for industry208,3191,857310,5773,422
     Limestone and marl for cement1 210 6975,1361 255 7204,241
     Limestone for roads323,3852,315396,8174,111
     Perlite....2,938..
     Pumice10,00434625,003263
     Rock for harbour work, reclamation and filling1 194 2084,8661 358 6155,920
     Sand for industry488,8573,193330,0427,386
     Sand, rock, gravel for building aggregate5 146 05254,0475 806 22659,306
     Sand, rock, gravel for roads and ballast13 671 53797,58712 455 202122,529
     Serpentine14,10125516,042389
     Silica sand165,0694,21255,201245
     Sulphur1,5331504,323290

Metals

Iron. New Zealand's largest resource of potential iron ore is the black sands of the west coast beaches, from Westport south in the South Island and from Wanganui to Muriwai in the North Island. Titanomagnetite sands make up most of the black sands in the North Island, but from Waikato Heads northwards, the beach deposits also contain ilmenite in varying proportions. In the South Island beach sands ilmenite is the chief iron-bearing material. These beach sands have been estimated to contain some 800 million tonnes of titanomagnetite, with a further 8.6 million tonnes of ilmenite in the North Island, and 43 million tonnes in the South Island.

New Zealand Steel Limited operates a smelter using ironsand deposits from the north head of the Waikato River. The steelworks employs a locally developed process whereby titanomagnetic sands can be economically smelted on a large scale to produce a good grade of steel. Slag from the steel contains vanadium and titanium. The vanadium is extracted. The company also mines and exports ironsands.

Gold. Gold occurs as alluvial gold in streams, rivers, and gravels, mainly in the South Island, as lode gold in quartz veins, and as disseminated gold, finely dispersed in some volcanic rocks.

The hard rock forms of gold can be mined by underground as well as opencast methods. Most present day New Zealand goldmining is of alluvial gold.

International gold prices make re-examination of bypassed areas and the tailings of former workings attractive. Past gold-producing areas of New Zealand are currently being reassessed using modern prospecting techniques and refined geological concepts.

The main areas of interest for gold in the North Island are Northland, the Coromandel Peninsula and the central volcanic zone. In the South Island, the main areas of interest for alluvial gold are Marlborough, north-west Nelson, Westland, Central Otago and west Southland.

Extraction methods range from small hand plants worked by up to three people to large floating dredges worked by hydraulic excavators. The trend in the industry is away from small plants to those of medium and large size which have a high throughput and can efficiently recover the fine gold that characterises the Grey River Valley and beach deposits.

Recent developments in gold mining include the reopening of the Martha Hill mine at Waihi in late 1988, the commissioning of a dredge on the Grey River (see inset), the granting of licences to redevelop a gold-scheelite deposit at Macrae's Flat, Otago, and the reopening of the Waiuta mine at Reefton.

Silver. In the North Island, silver almost always occurs with gold in various proportions. The Hauraki gold-field has produced most of the silver mined in New Zealand; in 1989 the Martha Hill mine also started production. Silver has been found at Puhipuhi in Northland, north-west Nelson, south Westland and Central Otago, and most of these areas are being prospected.

Tungsten. The principal ore of tungsten in New Zealand is scheelite, which occurs in difficult mining conditions. It is mined on a small scale in Otago and Marlborough, but is being evaluated for potential larger-scale mining, particularly at Macrae's Flat.

Ilmenite and other heavy mineral sands. Beaches south of Greymouth contain heavy mineral reserves and are currently subject to prospecting and development proposals. The main interest is in ilmenite as a source of titanium dioxide, used as a pigment in paint, paper, plastics, and rubber, but there has been an increased interest in zircon and other heavy minerals.

Other metallic minerals. There are small deposits of manganese in many localities. Uranium occurs in Westland put reserves have never been fully assessed. Some areas of Northland, Coromandel, Nelson, and Westland have potential for base metals (copper, lead, and zinc) but there is little prospecting. Iron ore, antimony, arsenic, chromium, monazite, nickel and rutile have been mined in the past and some are presently being investigated. Tin is known on Stewart Island, where less than one tonne has been mined. The aluminium ore, bauxite, is found in Northland where reserves of 20 million tonnes have been indicated by the DSIR. Molybdenite occurs in north-west Nelson but awaits full assessment. Cinnabar, the principal ore of mercury, is widely distributed in New Zealand and was produced in limited quantities from sinter deposits in Northland. Interest in platinum mining in New Zealand is increasing and several companies are prospecting in Nelson, south Westland and Southland.

Non-metallic minerals

Aggregates. The term ‘aggregates’ is used to describe a variety of rocks, gravels and sands. They are found throughout New Zealand and are usually mined by small operators to supply local needs. Hundreds of firms from Kaitaia to Invercargill extract more than 20 million tonnes of aggregates, worth around $200 million, annually. Major uses are for reading, reclamation and construction.

Clays. Clays are found throughout New Zealand and include bentonite, halloysite and kaolin. They are used in the manufacture of bricks, tiles, pipes and pottery, and as fillers in the manufacture of paper, paint, pharmaceutical and animal health products. Nearly 119 000 tonnes of clays, worth about $1.7 million was extracted in New Zealand in 1988.

Bentonite—Bentonite is used as a bonding agent and for ‘drilling mud’. It is found in Hawkes Bay and in substantial quantities in Canterbury. The latter is finely ground and processed into pellet form for bulk export and milled for local and overseas markets. Although bentonite is still being imported for drilling operations because long established and reliable overseas sources are often preferred, New Zealand bentonite is now being used as well.

Halloysite—Halloysite has been mined in Northland for more than 30 years. It is used in New Zealand and exported for use as industrial fillers and in the ceramic industry.

Dolomite. Dolomite rock is found near Collingwood. It is used in agriculture and home gardening and shipped to Whangarei for use in glassmaking. About 24 000 tonnes are extracted each year, and in 1988 this was worth around $439 000.

Greenstone. Nephrite, popularly known as ‘greenstone’, occurs in north Westland. At present the main source is a deposit of greenstone boulders in Olderog Creek, a tributary of the Arahura River. The boulders are reduced in size by a portable diamond trepan saw and airlifted by helicopter. In 1987 about 1.5 tonnes of greenstone was extracted.

The best known occurrences of bowenite, the serpentine variety of greenstone, are in Fiordland.

Limestone. Limestone is found throughout New Zealand and is used in cement manufacture, roading, pottery and agriculture. High-quality limestone from Te Kuiti and Nelson is processed for export. Limestone is also used in New Zealand as a filler in the paint, glass, rubber, plastic and paper industries. Marble, a pure form of limestone, is mined in Nelson. It is used as a filler and in building construction. About 2.6 million tonnes, worth around $19.9 million, was mined in 1988.

Salt. At Lake Grassmere in Marlborough, salt is produced by the solar evaporation of sea water. Low rainfall, long hours of sunlight and the right wind conditions make this locality the most suitable in New Zealand for salt production. About 60 000 tonnes is produced each year for New Zealand consumption.

Serpentine. Serpentine is a magnesium-rich rock used as a fertiliser additive. Deposits are mined at Piopio near Te Kuiti and Collins Valley, and at Mossburn in the South Island. About 16 000 tonnes, worth about $389 000, was mined in 1988.

Silica sand. Northland, North Auckland, Nelson and Canterbury have deposits of silica sand which are mined each year for use in glass manufacture, foundries and the building industry. About 16 000 tonnes worth $389 000 was extracted in 1988.

Other non-metallic minerals. The following non-metallic minerals, some of which have been mined in the past, are also found in New Zealand. They are diatomite (industrial filtration), barite (industrial uses include glassmaking and fillers), asbestos (building material), feldspar (glassmaking, ceramics, enamels), magnesite (used in agriculture), mica (used in electronics), phosphate (fertilizer), and wollastonite (insecticide, paper and plastics production). Pumice, perlite, and sulphur are also extracted at present.

Mining and quarrying industry statistics

The Department of Statistics' five-yearly Census of Mining and Quarrying has provided broad economic data on the industry, and results of the most recent (1983–84) census were published in the last edition of the Yearbook. More up-to-date statistics will become available from the survey of the industry undertaken as part of the 1987 Economy Wide Census, results of which will be published in 1990.

Contributors

  • 17.1–17.3 Ministry of Commerce.

  • 17.4 Ministry of Commerce; Electricity Corporation of New Zealand Ltd, Electrical Supply Authorities Association.

Historical

Department of Statistics.

Further information

Energy

Annual Statistics in Relation to Electric Power Development and Operation in New Zealand. Ministry of Commerce.

Energy ‘88. Ministry of Energy.

Gas Sector Forecast and Plan 1985. Ministry of Energy.

Key Statistics. Department of Statistics (monthly).

Report of the Ministry of Commerce (Parl. paper G 40).

Report of the New Zealand Gas Council (Parl. paper D. 7).

Minerals

Annual Returns of Production from Quarries and Mineral Production Statistics. Ministry of Commerce.

Census of Mining and Quarrying 1983–84. Department of Statistics.

The Geology of New Zealand. New Zealand Geological Survey, 1978.

Industrial Minerals and Rocks. Department of Scientific and Industrial Research, (annual).

Introduction to the Geology of the Coalfields of New Zealand. New Zealand Geological Survey, 1982.

Key Statistics. Department of Statistics (monthly).

New Zealand Coal Reserves. Mines Division, Ministry of Energy, 1983.

Report of the Department of Scientific and Industrial Research (Parl. paper G. 21).

Report of the Ministry of Commerce (Parl. paper G. 40).

Chapter 18. Manufacturing

Manufacturing environment

Encouraged by government policies of the late 1950s and the 1960s, manufacturing in New Zealand developed on a broad front, initially to supply products formerly imported and moving later into the export market.

From the early 1970s there was a progressive liberalisation of access for imports through the staged removal of import licensing and, more recently, the implementation of a programme of tariff reductions. For certain industries—notably motor vehicles, textiles, apparel, footwear and plastics—import licensing and tariff changes have taken place under industry development plans for particular manufacturing sectors. Recent developments in tariff reform are described in section 22.1, Administration and development of trade.

Since 1984, the main thrust of government policy has been to create a more open and efficient operating environment within which industry and business can develop in accordance with their degree of international competitiveness. The Government has emphasised that its principal role in a market-led economy is to set the policy environment and remove market impediments caused by unnecessary regulations and controls.

Below is a brief description of some of the major secondary industries in New Zealand. Others, particularly some of the country's major export earners, such as meat processing and timber and forest products, are described in the relevant chapters, as are the energy-based industries.

Aluminium. New Zealand Aluminium Smelters Limited's primary aluminium smelter at Tiwai Point, near Bluff, is a significant producer of ingots, with a capacity of 244 000 tonnes a year. The smelter is owned by Comalco Industries Pty Ltd of Australia (with an 80 percent shareholding) and the Sumitomo Aluminium Smelting Company Ltd of Japan (20 percent). The greater part of the metal production is exported to Japan and other Asian countries. Aluminium fabrication and foil manufacture, for products widely used in the building and packaging industries, is also carried out in New Zealand.

Electronics. The Electronics Industry Development Plan, which began in January 1984, has determined the level and type of assistance for the industry over recent years. The plan was reviewed in 1986. As a result, import licensing protection on all electronic products has been completely removed and tariff rates above 25 percent are being phased down annually to cease by 1 October 1990. Two other forms of assistance directed at this industry, the Prototype Development Fund and the Electronics Industry Research and Development Grants Scheme, have both been terminated.

As the consequence of the progressive lowering of import barriers and the removal of import licensing, the electronics industry has contracted. Manufacturers have focused on industrial, commercial and communications products as the manufacture of consumer products has declined.

Engineering. The engineering sector involves skills and activities ranging from light manufacturing and metal-casting to the civil and heavy engineering fields. In the early 1980s demand from the construction phase of several major energy-based projects saw a period of considerable expansion, with a valuable spin-off in the development of new skills and techniques. Subsequently, the completion of these projects has brought about rationalisation, with many firms actively pursuing export opportunities and the development of new products. Demand for skills and experience is still relatively high in the sector but there is regional variation.

Food and beverages. The food and beverage sector of the manufacturing industry is one of the longest established and largest, and collectively employs more than any other type of manufacturing, without consideration of meal processing or dairy factories. Along with the dairy and meat industries, other forms of food processing are also significant export earners.

Beverage manufacture is scattered throughout the country to supply local markets and, although this is also largely true of food processing, there is also considerable regional variation as primary industry has led to the development of different food processing industries such as canneries, packing houses and other manufacturing establishments.

A recent trend toward lowering duties and eliminating import licensing has not only meant an increasing range of goods available to consumers in New Zealand, but has also increased the level of competition faced by local food and beverage manufacturers. This pressure has in turn led to greater product specialisation amongst manufacturers and rationalisation (including mergers) has also occurred amongst some companies.

Motor vehicles. The first major unit of the motor vehicle assembly industry in New Zealand was established by the American company, General Motors in 1926. This plant assembled chassis and motor bodies, using some local materials. The establishment of three additional assembly plants in the mid-1930s provided a basis for component manufacturing to commence in 1939. This was fostered by certain parts, specifically upholstery materials and batteries, being excluded from importation for use in the assembly of vehicles. Following World War II several new plants commenced vehicle assembly and by 1950, tyres (including tubes) and radios had been added to the list of goods not allowed to be imported (mandatory deletions) for use in vehicle assembly. In 1958 radiators and undercarriage springs were added to the list.

During the 1950s and 1960s tight import restrictions limited the availability of both built-up and completely-knocked-down (ckd) vehicles. From the late 1950s local manufacture of a wider range of components was induced by the ability of franchise holders of vehicle marques not being assembled in New Zealand to obtain modest import licence entitlements for ckd packs. It was a requirement of these licences that assembly of the vehicles concerned incorporate specified locally-made components, in addition to those listed as mandatory deletions. In 1973, 16 of these components were added to the list of mandatory deletions thereby forcing long-established assemblers to increase domestic content by sourcing these products locally.

The 1970s saw the number of separate car assembly plants grow from ten to a high of 16, primarily as the result of the relaxation of restrictions on the importation of ckd packs. Increased competition and the need to improve quality, especially in respect of corrosion protection and paint shop facilities led in the 1980s to some rationalisation and up-grading of assembly facilities. This process was reinforced by the introduction in December 1984 of the Motor Vehicle Industry Development Plan which exposed both assemblers and component manufacturers to increasing levels of import competition over the four years to 1988. By mid-1988 there were nine franchise holders assembling passenger cars in only seven separate plants.

In December 1987, following a review of the industry plan, the Government announced the removal of import controls from all automotive products from 1 January 1989 and a programme for reducing tariffs on both vehicles and components. These measures, together with eventual duty-free and unrestricted trans-Tasman trade in all automotive products, are significantly reshaping the local motor industry.

Plastics. The Plastics Industry Development Plan, implemented in 1982, encouraged the industry to use its resources as efficiently as possible by lowering the level of protection under which the industry operates. Pressures towards greater international cost comparability were intended to move the local industry to developing a sustainable base for export-led growth and greater capacity to service the domestic market, 1988 was the final year of the plan before the majority of goods become exempt from import licensing and the industry is now operating in a marketplace that is virtually free of import licensing.

Production in certain areas has been adversely affected by the liberalisation of import licensing and the impact of other industry plans. For example, special arrangements to encourage the export of cosmetics containers will cease to be of help now the cosmetics themselves can be imported freely. This has far reaching consequences for rigid plastic packaging companies, as many products are now being imported pre-packed. In general, however, plastics manufacturers have adapted well to increased import competition and there has been significant investment in new, automated plant and equipment.

A review of tariffs undertaken in 1986 as part of the Plastics Industry Development Plan resulted in the decision to lower all tariffs over 20 percent down to that figure, to be replaced at the conclusion of the plan by long-term tariffs set in accordance with decisions announced by the Minister of Trade and Industry in December 1987.

Steel. The two major enterprises in this industry are New Zealand Steel Ltd, established in 1970 to manufacture billet slabs and ingots from indigenous ironsands and coal and limestone resources, and Pacific Steel Ltd, established in 1960 to prepare wire rod, bars, angles and channels from scrap, but also subsequently using billet from New Zealand Steel Ltd's complex at Glenbrook, south of Auckland.

In 1980 New Zealand Steel commenced a large two-stage project to expand its iron and steel making capacity to about 750 000 tonnes a year and to provide for hot and cold rolling mills to process some 550 000 tonnes of slab. This facility also enabled the company to supply raw product to its previously established galvanising, colour-coating and pipe-making lines.

In 1986 New Zealand Steel was financially restructured, with the Crown expanding its shareholding to 90 percent. In 1987 this shareholding was sold.

Textiles and footwear. Implemented on 1 July 1980, the Textile Industry Plan was intended to improve competitiveness and the exporting potential of the textile industry. It featured a liberalisation of access to materials, and increased imports of finished goods under the protection of a revised tariff structure. There were also specific financial incentives to encourage production efficiency in woollen mills. An apparel import licence tendering scheme established under the plan allowed a greater range of imported garments, with the aim of creating a more competitive environment for domestic manufacturers and greater consumer choice.

As part of its review of the Textile Industry Development Plan, the Industries Development Commission in 1983 reported on the carpet sector, proposing measures for the controlled introduction into the New Zealand market of both imported and locally-made synthetic carpets. In 1986 a long-standing policy of encouraging the manufacture of wool-rich carpet was abandoned, following the breakdown of a carpet industry agreement to voluntarily restrain production of certain types of synthetic carpet for the domestic market.

Government decisions on the commission's recommendations for other areas of the textile industry were announced in July 1985. These included: liberalisation of access for textile goods through the establishment of a textile licence tendering scheme; the exemption from import control of many textile products not made in New Zealand; and small annual increments in allocations under the apparel licence tendering scheme. During 1987 and 1988 agreement was reached on accelerating the move to trans-Tasman free trade in apparel, which became effective from 1 July 1989.

New Zealand has a long-established footwear manufacturing industry which in the past has enjoyed relatively high levels of tariff and licensing protection. These were reviewed under the Footwear Industry Development Plan in 1986. As a result, existing import access levels have been increased through licence tendering, with adults' footwear increasing by 3 percent a year, and children's by 5 percent a year. The basis for footwear licensing was also changed—from a volume to a value system. As a consequence of the review and the impact these decisions are having, many manufacturers have begun to look more closely at their commercial viability, with significant restructuring and rationalisation taking place within the industry and the footwear market as a whole. A further review of assistance levels is underway, with decisions likely to be made in early 1990. Trade in footwear between New Zealand and Australia is also gradually being liberalised, and became duty and licence free on 1 March 1990.

Manufacturing enterprises

Table 18.1 shows the different types of manufacturing enterprises recorded by a survey to update the Department of Statistics' Business Directory at February 1989. The data was among the most recent available at the time of going to press and shows major groupings under the New Zealand Standard Industrial Classification. Table 18.2 shows the number of manufacturing enterprises and people employed over the last four years, again using the annual Business Directory update as a source.

More recent detailed statistics showing economic activity in manufacturing will be available with the publication of reports from the 1987 Economy Wide Census throughout 1990.

Table 18.1. MANUFACTURING ENTERPRISES AND PERSONS ENGAGED, FEBRUARY 1989*

NZSICType of manufacturing Persons engaged size group
0–56–910–4950–99100+Total
* Annual Business Directory update.
3111Slaughtering and meat processingActivity units11528982852321
Persons engaged2832032,2441,85326,26430,847
3112Dairy productsActivity units438552124151
Persons engaged74611,3281,5244,9967,983
3113–3122Other foodsActivity units75124132749461,414
Persons engaged1,9571,7496,6343,36110,40524,106
313BeveragesActivity units80193988154
Persons engaged2041448005461,5273,221
314Tobacco productsActivity units22127
Persons engaged15463625743
321TextilesActivity units527871652827834
Persons engaged1,1526163,5181,8924,72911,907
322–324Apparel and footwearActivity units89215539163311,532
Persons engaged1,9101,1508,7954,3974,29520,547
33Wood processing and productsActivity units2,12938044844203,021
Persons engaged4,5552,7358,5132,9213,62422,348
341Paper and paper productsActivity units8020541519188
Persons engaged1821411,3951,0936,2779,088
342Printing and publishingActivity units75919530435331,326
Persons engaged1,8671,4345,7382,3567,00818,403
351Industrial chemicalsActivity units9431551314207
Persons engaged2102231,1838752,2244,715
352Other chemicalsActivity unit183351041911352
Persons engaged3982502,2781,3322,1376,395
353Petroleum refineriesActivity units66214
Persons engaged14161708883
354Petroleum and coal productsActivity units21582137
Persons engaged3833183155477886
355Rubber productsActivity units56223463121
Persons engaged1131667484026212,050
356Plastic productsActivity units220671312311452
Persons engaged4854882,8081,6341,9797,394
36Non-metallic mineral productsActivity units63792154913905
Persons engaged1,3456492,9765402,4007,910
37Basic metal industriesActivity units1003847310198
Persons engaged2442801,0622524,6756,513
381Fabricated metal productsActivity units1,66838654748202,669
Persons engaged3,6182,84010,3953,2713,08723,211
382MachineryActivity units2,22033036827102,955
Persons engaged4,7192,3987,0111,8711,83617,835
383Electrical machineryActivity units409991271723675
Persons engaged8737082,7191,2195,34510,864
384Transport equipmentActivity units78214015131291,133
Persons engaged1,6581,0053,2842,3849,37617,707
385Professional equipmentActivity units7272022103
Persons engaged140474021595151,263
39Other manufacturingActivity units68662828838
Persons engaged1,3704451,5555263,896
3Total manufacturingActivity units12 5322 4473 71750041119 607
Persons engaged27 41017 76575 78434 626105 130260 715

Table 18.2. MANUFACTURING ENTERPRISES AND PERSONS ENGAGED, 1986–89*

NZSICType of manufacturing Persons engaged
1986198719881989
* Annual Business Directory update.
3111Slaughtering and meat processingActivity units27304308321
Persons engaged39,32736,64030,24930,847
3112Dairy productsActivity units166168172151
Persons engaged8,6528,0358,1267,983
3113–3122Other foodsActivity units1,1861,3751,3581,414
Persons engaged23,17024,07524,02924,106
313BeveragesActivity units152156152154
Persons engaged3,5583,7943,3693,221
314Tobacco productsActivity units111177
Persons engaged826817693743
321TextilesActivity units664807829834
Persons engaged14,61013,98812,99911,907
322–324Apparel and footwearActivity units1,3001,6191,6201,532
Persons engaged26,15126,86223,97620,547
33Wood processing and productsActivity units2,2713,0113,0773,021
Persons engaged24,30626,56024,77322,348
341Paper and paper productsActivity units162189209188
Persons engaged13,10110,63710,6869,088
342Printing and publishingActivity units1,0521,2221,2501,326
Persons engaged18,87919,27818,71618,403
351Industrial chemicalsActivity units198230214207
Persons engaged5,0385,0794,8624,715
352Other chemicalsActivity unit366415384352
Persons engaged7,4767,4866,8556,395
353Petroleum refineriesActivity units17171614
Persons engaged1,1041,0821,001883
354Petroleum and coal productsActivity units35434037
Persons engaged496570993886
355Rubber productsActivity units130139124121
Persons engaged3,8473,7272,8922,050
356Plastic productsActivity units400454459452
Persons engaged8,1087,7697,5747,394
36Non-metallic mineral productsActivity units839981938905
Persons engaged9,5459,7089,3727,910
37Basic metal industriesActivity units157186201198
Persons engaged7,2216,5996,6346,513
381Fabricated metal productsActivity units2,1672,7712,7952,669
Persons engaged26,88227,44626,07523,211
382MachineryActivity units1,9842,7032,8662,955
Persons engaged19,30519,03218,98517,835
383Electrical machineryActivity units614729723675
Persons engaged15,28313,44512,23710,864
384Transport equipmentActivity units7381,0661,1371,133
Persons engaged22,40521,38221,29117,707
385Professional equipmentActivity units87106103103
Persons engaged1,2861,3131,4021,263
39Other manufacturingActivity units620861853838
Persons engaged4,1724,7394,2673,896
3Total manufacturingActivity units15 61319 56319 83519 607
Persons engaged304 748300 063281 996260 715

Assistance to industry

In 1984, when the current Government took office, a wide range of financial incentive schemes favouring various sectors of the economy existed.

Investment decisions were being influenced by the availability of a subsidy, rather than solely the merits of the project itself and this was creating distortions which disadvantaged other sectors. The Government therefore removed or phased out most assistance programmes to industry and introduced policies designed to reduce the cost of setting up and operating a business. This policy aims to create an environment in which individuals can pursue their ideas unhampered by unnecessary controls and regulations.

A recent study of industry assistance reform in New Zealand shows that levels of industry assistance have fallen since 1981–82. For manufacturing the average effective rate of assistance, that is the degree by which an industry's value-added (and hence its contribution to GDP) is artificially inflated by assistance, has fallen from approximately 40 percent to 25 percent. As a result of the 1988–92 tariff reduction programme, this average effective rate of assistance will be reduced further.

Regional development. The Government's regional development aims are to create a climate for optimal business growth in New Zealand through the identification of road blocks to development, the promotion of business and development opportunities, and the facilitation of the process of change and adjustment. Regions are to decide the direction and pace of their development and be less dependent on government support than in the past.

To encourage regional development there are two major programmes under the Ministry of Commerce's regional development umbrella. These are the Regional Development Investigation Grant Scheme and a network of business development boards.

The Regional Development Investigation Grant Scheme introduced in 1986, is designed to stimulate innovative, economically viable and self-sustaining developments new to regions, and based on their identified resources and development opportunities. The grant is available throughout New Zealand to assist individuals, businesses and organisations with costs incurred in investigating the technical feasibility or economic viability of proposed new developments.

The scheme is open to all legal economic activities which may qualify for a maximum grant per project of up to $50 000 assessed on the basis of 50 percent of eligible costs.

The related New Business Investigation Grant Scheme was introduced in November 1989 and is available to assist people who are registered unemployed, or who have been made redundant, to investigate possibilities for establishing viable, self-sustaining businesses. The scheme is available throughout New Zealand and offers grants of up to $20 000 per project based on 80 percent of eligible costs, provided the activity is new to the applicant. See also section 12.3, Training and employment assistance.

During the year to 31 March 1989, 520 applications were approved under the Regional Development Investigation Grant Scheme totalling $8.8 million. Under the New Business Investigation Grant applications were approved totalling $2.3 million.

Business development boards are an integral part of the regional development programme. Constitutionally, they are advisory committees directly responsible to the Minister of Regional Development. Their principal function is to stimulate new ideas and promote development opportunities in their respective regions. In addition, they have the important function of screening grant applications before they are forwarded to the Ministry of Commerce for final decision.

Another function of the boards is to organise seminars for the benefit of local business people. In this they work closely with the Ministry of Commerce and other agencies, including the Trade Development Board.

Overseas investment. The Government welcomes overseas investment in New Zealand. An Overseas Investment Commission monitors significant investment and its approval is required where an investment exceeds $10 million, or where the investment is in the sensitive areas of broadcasting, deep-sea fishing or rural land.

An investment unit within the Ministry of Commerce works to encourage overseas investment. It prepares and distributes relevant material, operates as a contact point for potential overseas investors, and advises on sources of detailed information for the establishment of businesses.

Innovation and productivity. The Ministry of Commerce works to encourage and improve innovation in New Zealand business.

To this end the ministry seeks to promote understanding of the key issues influencing innovation in New Zealand business, in particular taxation, employment, education and training, and influences on investment, growth and small businesses.

Recently the ministry has undertaken studies of new venture funding options and of the taxation of research and development activities.

A programme to stimulate business innovation has been developed in association with the Science and Technology Council, the Department of Scientific and Industrial Research, and the New Zealand Manufacturers' Federation. The programme is to be launched in 1990.

The ministry has also reached an agreement with the Australian Department of Industry, Technology and Commerce to jointly explore the opportunities for greater trans-Tasman inter-firm co-operation.

The Ministry of Commerce also works to encourage quality assurance programmes in New Zealand industry. In 1989 two publications on New Zealand's productivity performance and on the impact of deregulation on firms' quality and productivity were published by the Institute of Policy Studies and the New Zealand Institute of Economic Research. The Ministry of Commerce produced a booklet for popular readership drawing on these publications, entitled Productivity and Prosperity.

A study has been commissioned comparing New Zealand's productivity performance with other countries.

Manufacturing statistics

The Department of Statistics' Quarterly Economic Survey of Manufacturing is based on a sample of approximately 1500 manufacturing units originally selected from a 1979 census of manufacturing and revised in June 1982. All manufacturing divisions of the New Zealand Standard Industrial Classification are represented and allowance is made for the opening of new factories and the closure of established ones.

Table 18.3 summarises the results from the survey over the six years to 1989, while table 18.4 provides a breakdown by major types of manufacturing for the year ended March 1988.

The definitions of terms used in the tables can be found in the glossary at the back of this book. There is, however, some variation in the definition of ‘other income’, and salaries and wages paid to working proprietors and partners are excluded. ‘Purchases and other operating expenses’ excludes exchange losses and extraordinary items, e.g., assets, sales tax, excise and fringe benefit tax.

Table 18.3. QUARTERLY ECONOMIC SURVEY OF MANUFACTURING: ALL-INDUSTRY TOTALS

Year ended 31 MarchSales and other incomeStocks*Additions to fixed assetsSalaries and wagesPurchases and other operating expensesHours worked
MaterialsFinished goods
* At end of quarter.
 $(million)(000)
198421 827.31 923.11 630.62 430.04 179.215 933.8509,223
198525 995.52 548.11 901.81 956.14 614.119 625.1538,357
198628 419.12 584.52 133.22 393.95 172.721 384.8543,837
198731 285.12 465.52 296.82 001.25 799.422 670.0529,326
198832 255.72 538.12 239.92 004.75 945.123 933.4496,619
198932 819.62 373.82 182.71 670.15 976.723 754.3452,265

Table 18.4. QUARTERLY ECONOMIC SURVEY OF MANUFACTURING, 1988*

Industry divisionSales and other incomeStocksAdditions to fixed assetsSalaries and wagesPurchases and other operating expensesHours worked
MaterialsFinished goods

* Year ended 31 March.

At end of quarter.

Includes the processing of meat and dairy products, and other primary foods.

 $(million)(000)
Primary food5 073.8133.0160.4341.7905.83 935.566,067
Other food4 078.3292.4292.5259.8532.83 031.250,534
Textiles, clothing2 954.8234.6282.8101.5575.12 265.458,019
Wood and furniture2 039.9131.8172.580.8446.61 451.638,324
Paper and printing4 458.2297.6198.4318.9910.13 044.271,598
Chemical3 906.2377.5313.5144.6560.02 876.341,282
Non-metallic mineral1 058.749.061.863.0204.6716.416,863
Basic metal1 018.6132.599.2409.8209.8741.112,517
Fabricated metal7 332.5854.2616.1279.21 532.45 616.7134,295
Other manufacturing industries334.835.542.75.367.8255.07,125
               Total, all industries32 255.72 538.12 239.92 004.75 945.123 933.4496 619

The Department of Statistics' five-yearly Census of Manufacturing has provided broad economic data on manufacturing, and the results of the most recent (1983–84) census were published in the last edition of the Yearbook. More up-to-date statistics will become available from the survey of manufacturing undertaken as part of the 1987 Economy Wide Census, results of which will be published in 1990.

Contributors

Ministry of Commerce; Department of Statistics.

Further information

Census of Manufacturing 1983–84. Department of Statistics.

The Diffusion of Microelectronics through New Zealand Manufacturing. New Zealand Institute for Economic Research, 1987.

Key Statistics. Department of Statistics (monthly).

Report of the Ministry of Commerce (Parl. paper G. 46).

Research and Development in New Zealand: A Public Policy Framework. New Zealand Institute for Economic Research, 1987.

Productivity and Prosperity. Ministry of Commerce, 1989.

Productivity and Quality in New Zealand Firms: Effects of Deregulation. New Zealand Institute for Economic Research, 1989.

Productivity Trends and Cycles in New Zealand: A Sectoral and Cyclical Analysis 1961–1987. New Zealand Institute for Economic Research, 1989.

Chapter 19. Housing and construction

19.1 Housing

Two main features of the New Zealand housing scene are the dominance of single, detached houses in the housing stock and the preponderance of owner-occupier tenure (see section 6,1, Households). As elsewhere, the housing sector and new house construction form an important component of the economy. Housing (as ‘homes’ and as elements of every community) also plays a central social role. Moreover, in a market-based, property-owning society, housing is the main area of capital investment for many in the population, particularly the middle-to-lower income groups.

The estimated total number of permanent private dwellings in New Zealand as at 31 March 1989 was 1 238 400. (Excluding miscellaneous dwellings, e.g., farm cottages.) An average house built today is about 125 square metres in area, is single-storeyed, and normally built of timber. Approximately 90 percent of the dwellings completed annually are built for private home ownership, with most of the balance being erected by government agencies for rental. There is relatively little housing built for private rental. See chapter 6, Social framework, for Census of Population and Dwellings information on ownership and renting.

Recent concerns in housing include its affordability for some groups, the housing requirements of special groups, serious housing needs, and the delivery of housing assistance. New Zealand has so far escaped the type and scale of housing crisis suffered in many other industrialised societies. However, problems of homelessness do exist, but are concentrated in particular regions and income and social groups. For some the crisis is the inability to pay, and for others, particularly those subject to discrimination, there is a problem of access to housing. However, the majority of New Zealanders are physically well housed, and the legacy of a relatively adequate housing stock gives New Zealand a better basis than many other countries in meeting housing problems.

Housing market

A drive by financial institutions to increase their share of the mortgage market led to an increase in mortgage borrowing during 1989.

Mortgage interest rates declined from 15.6 percent for first mortgages in December 1988 to an average of 14.8 percent in December 1989. This was a continuation of the downward trend of the previous year. A new development in the mortgage market was the introduction of flexible mortgages.

The number of house sales totalled 33 400 in the six months to June 1989, compared with 22 416 in the corresponding period in 1988.

House sales in the six months to December 1989 totalled 34 512, compared with 25 198 in the six months to December 1988. Market reports for 1989 showed an active market for lower- to medium-priced properties, particularly in the smaller centres, and a gradual recovery in the turnover of high valued properties.

New dwellings. Building permits for new dwellings issued during the year ended 31 March 1989 totalled 19 590 with a value of $1 610 million. This compared with a total of 19 889 issued in 1988 (value $1 577 million), and 20 128 in 1987 (value $1 361 million). In the six months April to September 1989, 11 323 permits were issued, valued at $986 million.

House prices and rents. House price movements, as measured by Valuation New Zealand's House Price Index, increased at about the same rate in 1989 as in 1988 (7.52 percent in the year ended December 1989 and 7.19 in the year ended December 1988). This compares with a movement of 21.76 percent in 1987.

The rental market experienced a lessening in demand for accommodation in most regions during 1989. The dwelling rentals component of the Consumer Price Index rose by 5.6 percent in the year to September 1989, compared with 9.3 percent in the year to September 1988.

Statistics compiled by Valuation New Zealand in table 19.1 illustrate the overall trend in residential prices in 39 urban areas throughout New Zealand. The figures of average sale prices for sections, houses, and owner-occupier flats exclude family sales, sales of leasehold property, and other sales not subject to normal market forces.

Table 19.1. RESIDENTIAL PRICES

ItemDecember year
19841985198619871988P
Average sale price of—
Sections20,33924,56030,41136 564x38,838
Houses66,38375,63085,290101 137x106,318
Owner-occupier flats61,85468,00776,55190467x95,166
Source: Valuation New Zealand

Urban House Property Price Index. This index is designed to measure changes in the average level of prices paid for residential properties and urban sections sold during each half-year. Variations in the average age of properties transferred, as an indicator of the average quality of such properties, are eliminated in the index methodology in order to arrive at a valid index of price level changes. More recent data are available from Valuation New Zealand.

Table 19.2. URBAN HOUSE PROPERTY PRICE INDEX*

CentreResidential propertiesSections
January-June 1987July-December 1987January-June 1988July-December 1988January-June 1987July-December 1987January-June 1988July-December 1988
* December year 1973 = 1000
Whangarei5,0965,3445,6165,7877,2227,7018,1268,423
Auckland6,5857,6128,2008,0717,4748,1858,7188,766
Hamilton5,3365,6295,7406,0017,2157,8838,0978,276
Tauranga4,9565,3265,7575,8716,4487,3057,4968,024
Rotorua5,8725,9546,2726,3576,4317,2357,5087,840
Gisborne4,9634,8984,8934,9635,5335,2204,5663,759
Napier-Hastings4,5764,7374,6834,8495,9276,2587,3987,733
New Plymouth4,1184,1684,1534,4114,1354,4423,7694,187
Wanganui5,7875,9526,0736,2345,3145,5115,8405,688
Palmerston North5,2675,6215,7416,0018,1687,4397,8338,405
Masterton4,5084,5674,7584,8213,6714,5424,2474,214
Wellington-Hutt5,6406,2846,8436,7605,4826,0336,6506,420
Nelson6,6427,1087,4377,4347,5167,8898,2327,699
Christchurch5,2575,6095,9366,0945,7826,3496,5786,722
Timaru4,9584,8794,9664,9865,0594,7904,8143,997
Dunedin4,6004,9045,0815,1446,6306,6727,0687,174
Invercargill4,1854,2254,2974,3503,0892,8242,9512,861
17 Urban areas combined57466365677467756759733777667853

Rental housing

Rental housing currently accounts for approximately 23 percent of the housing stock in New Zealand. It caters for people at all income levels but especially for households below the median. The contribution that the rental market makes to the housing stock varies across the five main centres from 28.5 percent in Wellington to 22.1 percent in Christchurch. Outside the five main centres the contribution is lower, at 21.2 percent. Close to 36 percent of rental housing is provided by the public sector, chiefly by the Housing Corporation but also by local authorities and other government departments.

At the 1986 Census of Population and Dwellings the stock of rental housing was 1.2 percent lower than at the 1981 census. The additional stock of housing being provided rent free was also lower in 1986 than in 1981. By contrast, the total housing stock increased by 7.6 percent over the same period.

Tenancy bonds. The Tenancy Bond Division of the Housing Corporation administers the Residential Tenancies Act 1986, which came into force in 1987. This Act consolidated the law on landlord and tenant, and established a mediation service and Tenancy Tribunal to resolve tenancy disputes. The division runs the mediation service, while the Tenancy Tribunal is administered by the Department of Justice.

During the year ended 31 March 1989, the second year the Act was in force, there were 17 828 Tenancy Tribunal applications. This represented a 52 percent increase in applications from the previous year.

Tenancy Tribunal applications can be made by either landlords or tenants. They are first referred to the corporation's mediation service to see if the parties involved can settle their dispute. To March 1989 there were 10 728 disputes resolved by mediation, compared with 7412 in 1987; and there were 7100 tribunal hearings compared with 4894 in the previous year. About two-thirds of applications are made by landlords, most commonly for rent arrears.

The Residential Tenancies Fund, in which bonds for residential tenancies must be held, contained $26.1 million at 31 March 1989. This was an increase of $6.7 million over the year before. It is intended that tenancy bond administration will be self-funding by July 1990.

Housing Corporation rental housing. Under the Housing Act 1955 the Housing Corporation builds and lets rental houses and flats, as well as making loans to local authorities to build rental accommodation. Housing Corporation rental houses and flats (formerly known as state rental houses and flats) are allocated to tenants on the basis of need.

The Housing Corporation acquires both developed sections and undeveloped land (which it subsequently develops) to provide sites for its houses. The construction of these houses is carried out under contract, either to corporation design or on a ‘design and build’ basis by builders. Some ‘design and build’ contracts are also let for new houses on land owned by the builder, as a further method of obtaining suitable sections. Existing houses are also bought on the private market or from other government departments.

The corporation's stock of dwellings increased by 2427 during 1988, bringing the total dwelling stock to 64 251 at 31 March 1989.

Rents received from tenancies during 1988–89 amounted to $212 million, compared with $172 million for the year ended March 1988. The largest single item of expenditure charged against rentals was the provision for maintenance of rental houses. For the year ended 31 March 1989 this amounted to $76.6 million, compared with $68.6 million for the previous year.

The corporation's rental programme emphasises renewal and development, instead of building new areas at the edges of towns and cities. This encourages better utilisation of existing housing and offers a wider range of accommodation. Small housing schemes are considered where they will not disrupt existing urban patterns.

Table 19.3. HOUSING CORPORATION RENTAL UNIT CONSTRUCTION AND PURCHASE*

DistrictNew units constructedNew units purchasedNet acquisitions
198819891988198919881989

* Includes relocatable cottages.

Source: Housing Corporation

 units
Auckland150244149302286526
Manukau376509102250463753
Henderson9520417140125339
Hamilton122695783129128
Rotorua84664870123132
New Plymouth20911012−1
Napier4077314160103
Palmerston North343816314055
Lower Hutt5986351253
Porirua465529475983
Nelson519141153100
Christchurch109862561114128
Dunedin392312234025
Invercargill1651116−33
               Total12411562505109015132427

19.2 House purchase and mortgage finance

The main sources of mortgage finance for housing are savings institutions (such as building societies, trust banks and the Post Office Bank) and registered banks. In a typical quarter in 1989 (that ended March) these types of organisations advanced over 80 percent of all money lent for housing in New Zealand. The next most significant category of lender, and the largest individual organisation was the Housing Corporation of New Zealand with nearly 15 percent of the total. Insurance companies have traditionally been major lenders for housing, but their involvement has declined recently, and in the March 1989 quarter they lent only 2 percent of the total.

In that quarter 12.2 percent of lending was for new homes, a slightly lower than average figure. Over 95 percent of all housing lending was secured by a first mortgage—a historically high ratio that reflects recent deregulation of the finance industry and a fairly free supply of funds at high real interest rates.

Most lending is by table mortgage, with the length of mortgage varying widely from one organisation and individual to another—but most are for between 10 and 25 years initially. However, there is a tendency for mortgages to be redeemed in 7 to 12 years. Interest rates and methods of calculation vary from one institutions to another.

Table 19.4. SOURCE OF HOUSING LOANS

QuarterHousing CorporationLife insurance officesRegistered banksFinancial corporationsSavings institutionsTotal
 no.$(000)no.$(000)no.$(000)no.$(000)no.$(000)no.$(000)
1987
Jun7,900180.578639.85,171192.281941.98,494337.623,170792.0
Sep7,842185.293043.84,426171.851554.68,652337.222,365792.6
Dec6,993169.683040.75,539223.974179.69,281432.923,384946.7
1988
Mar6,195147.052127.05,237214.545832.59,414452.821,825873.8
Jun6,599146.565435.97,360331.527021.614,097715.928,9801 251.4
Sep8,531179.464840.112,720651.31706.617,315800.639,3841 678.0
Dec10,702258.867839.313,679725.21134.817,319793.042,4911 821.1
1989
Mar9,165217.255830.311,283589.6885.713,923617.435,0171 460.2
Jun8,494200.558633.611,809635.138718.518,764869.740,0401 757.4
Source: Reserve Bank

Maori housing

Until the disestablishment in 1989, the Department of Maori Affairs assisted Maori and Pacific Island families with housing under the Maori Housing Act 1935. From the start of the Maori housing programme to 31 March 1989, the department financed 24 019 new, and 5527 existing houses. In addition, a limited number of advances are made for additions and repairs to homes, refinancing of existing loans, and finance to second homeowners. The department's priority was to house individual Maori and Pacific Island Polynesian families, in a way that recognised cultural values and supported the whanau. Policies such as papakainga housing (on land in multiple ownership), kaumatua (elders') flats, whareawhina (hospitality-based housing) and wharetapiri (extended-family housing) promoted development of the whole community in line with the overall philosophy of tu tangata. The Maori housing programmes will continue to operate under the administration of the Iwi Transition Agency (Te Tira Ahu Iwi) for the present, although there is expectation that iwi will become more involved in the future.

Housing Corporation homeseekers lending

The Housing Corporation encourages home ownership through lending programmes for households unable to afford finance in the marketplace. For the year ended 31 March 1989 the corporation authorised 31 983 loans for $813.7 million. Mortgage lending activities comprise the bulk of this programme, including the following.

The Modest Income Scheme. This scheme provides mortgages to ‘modest income’ families buying or building their first home. Annual interest is charged on a scale of 7 percent to 14.6 percent depending on income. Loans may also be made under this scheme to housing cooperatives. During the year ended 31 March 1989 the Housing Corporation authorised 11 336 ‘modest income’ loans valued at $497.70 million.

Loans to corporation tenants. These loans assist corporation tenants into home ownership. Annual interest is charged on a scale of 7 percent to 14.6 percent depending on income. In the year to 31 March 1989, 1913 tenants were assisted into home ownership, compared with 555 for the previous year.

Refinance and second chance loans. The corporation also lends to those who own or have owned their own home but require special assistance. Interest is charged on a scale of 7 percent to 14.6 percent depending on how much the borrower can afford. In the year to 31 March 1989, 2323 loans for $73.4 million were authorised.

Homestart. This is a repayable suspensory loan to help meet house deposit costs. The interest rate is 3 percent and the term is five years. Interest is added to the loan balance during the term. In the year to 31 March 1989, 16 381 loans totalling $161.6 million were authorised.

Multiply-owned land lending contract. This contract allows the corporation to make loans to Maori people utilising their tribal lands, taking security over the house, not the land itself. In the year to 31 March 1989, 261 loans were made on multiply-owned land, compared with 55 for the previous year.

Sweat equity scheme. The labour of the modest-income home buyer is used as a deposit equivalent.

Second mortgages. These are joint ventures with private institutions. The corporation assists by providing an affordable second mortgage where a reasonably priced mortgage is being provided by a private sector partner.

Equity sharing loans. These are loans on which repayments must not exceed 30 percent of a borrower's net income. The shortfall between these payments and a market rate of interest is added to the loan debt. This is returned to the lender when the loan is discharged.

Home improvement loans. These loans are approved only for essential repairs or improvements necessary to extend the life of the dwelling or expand living space. Interest is charged on a scale of 7 percent to 14.6 percent depending on income. In the year to 31 March 1989, 1305 loans for $12.3 million were authorised.

A second sub-programme under the lending programme provides support services to homeowners, to reduce the costs of home ownership. Services offered include the following.

Build Guard. The corporation provides the prime indemnity for new home building projects. In the period to 31 March 1989, 4849 indemnities were issued covering dwellings valued at $316 million.

Mortgage Guarantee Scheme. The Housing Corporation has statutory' authority to guarantee mortgages and operates a scheme whereby an approved lender may be guaranteed repayment of a housing loan. In the year ended March 1988 there were 3196 guarantees issued, compared with 3200 in the previous year.

Other insurance services. These include mortgage repayment and insurance, and household insurance. The costs for these services are recovered through commissions.

Table 19.5. HOUSING CORPORATION LOANS AUTHORISED

Type of loan*Year ended 31 March 1988Year ended 31 March 1989Budget 1988–89
NumberValueNumberValueAuthorisedSpent

* Building suspensory loans, home ownership supplemented loans and urban special loans, previously reported on, have been discontinued.

Value of authorisations and total budget are not strictly comparable because of time lags between approval and expenditure.

The budget for modest income/tenants scheme does not distinguish between new and existing houses.

§ Excludes state servants on transfer, armed forces and rehabilitation and agency lending. Also excludes section loans.

Source: Housing Corporation

  $ million $ million percent
Modest income/tenants scheme—
     New houses2,549107.362,388107.6488.099
     Existing houses7,566290.098,948390.1  
Homestart/GST assistance13,194119.5516,381161.6172.096
Home improvement1,32612.241,30512.313.094
Refinance/second chance1,61441.862,32373.462.0107
Equity sharing/sweat equity39120.9429615.527.864
Tenancy savings scheme loans180.04420.100.06153
Tied accommodation431.43240.901,6854
Housing for the elderly57017.9010317.8814.88124
Special lending17334.3727.23103
Total§27 211611.4131 983813.77806.7398

Housing Corporation community housing programme

The Housing Corporation works to reach people with serious housing needs by working in partnership with community-based organisations such as local authorities, church groups and community trusts. Key components of the Community Housing Programme include the following.

Special tenancies. These are corporation rental units allocated to community organisations who cater for people in urgent need of housing assistance. In many cases, special tenancy clients also have health or welfare-related disabilities which need to be addressed in conjunction with their housing needs. In the year to March 1989 the corporation allocated 102 new special tenancies, compared with 27 for the previous financial year.

Special lending. This is a companion programme to special tenancies, to help community groups purchase accommodation that meets the needs of their clients. Flexible loan criteria are used. Interest rates vary from 7 percent to 14.6 percent depending on the organisation's capacity to repay loans. In the year to 31 March 1989, the Housing Corporation authorised 173 loans to community and welfare organisations.

Housing for the elderly and disabled. The Community Housing Programme also provides loans and grants to local authorities, religious and welfare organisations engaged in building rental housing for elderly and disabled people. In the 1989 financial year 103 loans totalling $17.9 million and 80 grants totalling $2.3 million were authorised.

Mortgages

Mortgage law. Borrowing money on mortgage is a principal means of financing the building or purchase of houses and commercial buildings, and the purchase of farms. Under the Land Transfer Act 1952, under which mortgages are registered, ‘mortgage’ means a charge on land created under the provisions of that Act, taking effect as a security, and not operating as a transfer of the estate or interest charged.

Table 19.6. SUMMARY OF MORTGAGES REGISTERED*

Year ended 31 MarchMortgage registrationsAmount secured
Under 2 hectares2 hectares and overTotalTotal areaUnder 2 hectares2 hectares and overTotal
* Excludes certain miscellaneous registrations, but may include minor duplications.
 no.no.no.ha(000)$(m)$(m)$(m)
1983136,31729,682165,9994,9272 182.01 381.63 563.6
1984151,13427,988179,1223,1662 660.11 354.54 014.6
1985158,26227,540185,8023,1172 930.21 378.44 308.6
1986160,79925,498186,2972,5894 128.91 405.95 534.8
1987176,63020,624197,2541,9555 255.81 074.46 330.2

Mortgage registration statistics include housing, agricultural, commercial and other land uses. The 197 254 mortgage registrations in 1986–87 were in the following categories: first table, 84 899; first flat, 48 875; subsequent table, 32 165; subsequent flat, 25 830; increases in amount, 5485.

Table 19.7 indicates the sources of finance for mortgages registered. Of the new mortgages registered in 1986–87, 19.8 percent of the aggregate advances were obtained from government agencies (mainly Housing Corporation) compared with 28.6 percent in 1985–86. The 1986–87 figures are the latest available.

Table 19.7. SOURCES OF MORTGAGE FINANCE

Year ended 31 MarchProducer enterprises*Central govtLocal govtTrading banksTrustee savings banksBuilding societiesInsurance and pension funds;Households§OtherTotal

* From 1986 excludes solicitors nominee companies.

Includes related savings banks.

Includes Government Life Insurance Corporation and State Insurance Office.

§ From 1986 includes solicitors nominee companies.

 $(million.)
 Under 2 hectares
1983600.0397.76.931.292.4200.1177.9327.0348.72,181.9
1984725.7523.18.536.974.0218.6172.2363.4537.72,660.1
1985802.4580.59.447.689.6273.5221.2418.3487.72.930.2
1986195.31 105.17.663.082.0290.5248.31 143.1994.04 128.9
1987249.1949.317.184.9159.2597.2224.11 290.11 684.85 255.8
 2 hectares and over
1983240.6425.80.16.640.327.7137.6366.1136.81 381.6
1984244.3454.50.86.716.525.0105.3313.1188.31 354.5
1985265.4448.21.99.512.235.2150.4305.8149.81 378.4
198689.0478.00.713.715.629.9112.3432.4234.21 405.9
198768.5302.91.88.922.643.557.5326.3242.41 074.4

19.3 Building and construction industry

Construction standards

The most common construction systems used are light timber framing for housing, reinforced concrete (precast and in situ) for multi-storey buildings and light steel framing for industrial buildings. Construction systems increasing in importance but still uncommon are large-span and 2–3 storey timber structures, and structural steel framing in multi-storey buildings.

All building construction (apart from Crown buildings) requires permission from the local authority. The required approvals are in two main parts; firstly planning permission, and secondly a building permit.

Planning permission involves the district scheme operated by the local authority which specifies what type of building or project is allowed in a particular area and sets constraints on building height, plot ratios, use, type of industry and similar factors. Local authorities sometimes grant dispensations from the district scheme at special hearings. As a final resort appeals can be made to the national Planning Tribunal (see section 10.1 Legal system). The district scheme is brought up to date every five years.

All new buildings and structural alterations and/or additions to existing buildings require a building permit. Masts and towers over 6.3 metres in height, retaining walls over 1.2 metres, and pools over 23 000 litres also require a permit. Local authorities use the model building bylaws produced by the Standards Association of New Zealand, which set out the standards of design, construction, health and safety considerations, etc., required for the work to be in compliance with the building permit. Checking is usually carried out by the authority during construction.

Particular provisions are called up under the bylaws to ensure earthquake resistant design, a field which is well researched locally for concrete and timber structures and their components. Local expertise is also well advanced in hydro and geothermal power station design and construction, and in the area of economic granular road pavements.

Administrative changes. The Building Industry Advisory Council, which previously maintained an advisory overview of the building and construction industries, was disestablished on 1 April 1988. Responsibility for the ‘Build Guard’ scheme was transferred to the Housing Corporation as at 1 January 1988 from the Building Performance Guarantee Corporation, which was abolished. The scheme, which is in effect a type of insurance, protects new home buyers from poor workmanship, inferior materials, bankruptcy of the builder, or other failures to complete a house in accordance with the contract.

Building activity

The main official building statistics are the Department of Statistics' monthly analyses of building permits and its quarterly analyses of the value of work put in place. The prime source of the following statistics is building permits issued by local authorities. To enable a complete picture of building activity to be shown, construction commenced by government departments, hospitals, and education and harbour boards are included, even though permits may not actually be taken out.

The permit value shown usually represents the contract price or estimated cost of the building prior to the commencement of construction. The finished cost may be higher because of wage increases, the rising cost of materials, etc., particularly in the case of larger buildings.

The values of building permits for five years to 1989 are described by types of building in table 19.8. Permits cover alterations and additions as well as new buildings, and government and other buildings not requiring building permits are included.

Table 19.8. VALUE OF BUILDING PERMITS ISSUED

Type of buildingYear ended 31 March
19851986198719881989

* Includes additions and alterations.

Includes ancillary buildings.

Residential—$(million)
New dwellings1 187.71 403.01 361.11 577.21 610.5
Alterations and additions to dwellings330.0354.5409.1428.8478.0
Non residential*
Hostels, boardinghouses13.120.220.028.937.3
Hotels, motels, etc.49.9101.9124.5180.782.7
Hospitals and nursing homes45.965.469.8190.281.8
Education buildings84.972.2111.6101.4105.9
Social, cultural, and recreational buildings69.883.497.6136.0111.1
Shops, restaurants, taverns109.5155.5157.2186.1146.3
Office and administrative347.7500.1774.51 021.81 130.1
Warehouses100.2161.6160.4164.878.0
Factories, powerhouses, etc.300.1337.3300.8421.8232.9
Farm buildings75.967.847.349.747.4
Miscellaneous buildings9.021.645.124.540.0
          All buildings2 723.63 344.53 678.94 512.04 182.0

Table 19.9. LOCATION AND VALUE OF BUILDING PERMITS, 1988–89

Main urban areaNew dwellingsNon-residential value*Total buildings value*
NumberResidential value
* Includes alterations and additions.
 $(million)
Whangarei23516.317.537.9
Auckland (Main) Urban Area6,371581.31 042.21 768.0
     Northern Auckland Zone1,259134.459.7234.3
     Western Auckland Zone1,393108.037.8167.1
     Central Auckland Zone1,600154.2825.31 035.8
     Southern Auckland Zone2,119184.8119.4330.7
Hamilton80060.137.6108.0
Tauranga84554.416.179.2
Rotorua42326.022 756.7
Gisborne312.25^610.1
Napier15011.518.034.0
Hastings14410.311.526
New Plymouth1149.931.946.9
Wanganui1027.320.531.9
Palmerston North30724.854.986.4
Wellington (Main) Urban Area1,399135.0326.2514.8
     Upper Hutt Valley Zone14011.09.024.9
     Lower Hutt Valley Zone47938.555.5107.0
     Porirua Basin Zone2482.5.723.356.7
     Wellington City Zone53259.9238.5326.2
Nelson33024.517.347.5
Christchurch1,453143.2176.6355.9
Timaru372.66.311.5
Dunedin23616.831.159.7
Invercargill1997.115.727.3
               Total, 17 main urban areas13 0961 133.31 851.73 301.8

Table 19.1. TYPES OF BUILDING PERMITS AND AUTHORISATIONS, 1988–89*

Type of buildingType of applicant
Producer enterprisesFinancial intermediariesGeneral governmentPrivate non-profit organisationsOverseas and householdsTotal

* Includes alterations and additions.

Includes ancillary building.

Overseas only.

 $(000)
Dwellings105,841449,76112,4221 960 4832 088 550
Hostels and boardinghouses20,36312,6874,29837,348
Hotels, motels, etc.60,19820222,00229882,700
Hospitals and nursing homes18,6025,53439,66118,04281,840
Education buildings72087,6598,7228 756105,857
Social, cultural, and recreational4,21231,64075,227111,079
Shops, restaurants, taverns144,85191423518146,306
Office and administrative808,010224,00982,05716,025371 130 139
Warehouses76,8662502785978,001
Factories, powerhouses, etc.206,58952524,812939232,866
Farm buildings47,0874924147,377
Miscellaneous37,5022,3849339,979
          All buildings1 530 841231 479312 764137 6831 969 2774 182 042

The high proportion of the total value of building permits represented by dwellings built by the private sector (households) highlights the importance of private investment in residential buildings as a key to stability in the building industry. The total for dwellings during 1988–89 includes 19 583 permits or authorisations to a total value of $1 601.5 million for new dwellings. This includes authorisations by central government for 1491 new dwellings (value $97.2 million).

Some categories of buildings used in those and other building permit tables require additional explanation. ‘Hostels and boardinghouses’, for example, includes barracks, orphanages, nurses’ homes, and boarding school accommodation; ‘hotels and motels’ includes private and licensed hotels, but exclude taverns; ‘education buildings’ includes primary and secondary schools, teachers colleges, technical institutes, university buildings, kindergartens, and play centres; and the broad category of ‘social, cultural, recreational buildings’ includes churches, halls, theatres, cinemas, clubrooms, community centres, and grandstands.

The average permit value for new for dwellings in 1988–89 was $82 241 compared with $79 312 in 1987–88, $67 620 in 1986–87, $60 908 in 1985–86 and $54 525 in 1984–85.

Table 19.11. PERMITS FOR NEW DWELLINGS

Year ended 31 MarchUnitsValueAreaTotal dwelling permits*Total permits all buildings*
* Includes additions and alterations.
 no.$(million)sq m (000)$(million)
198521,7821 187.72 686.41 517.72 723.6
198623,0351 403.02 847.81 757.53 344.5
198720,1281 361.12 542.7I 770.13 679.0
198819,8861 577.22 514.92 006.04512.0
198919,5831 610.52 447.92 088.64 182.0

Work put in place. The Department of Statistics conducts quarterly surveys of building work put in place. In contrast with the statistics based on building permits, these figures show the gross value of actual work done. It should be noted that there are varying time-lags between the issue of the building permit and the commencement of building and the actual work for which a permit is issued can be extended over varying periods. Also, the total value of this work may differ considerably from the value estimated at the time of application for the building permit, especially in times of inflation.

Table 19.12. WORK PUT IN PLACE

Year ended 31 MarchDwellings
New dwellingsAlterations/additionsSubtotal
GovernmentOther
 $(million)
198538.21 092.2342.51 472.9
198655.91 296.5363.61 716.0
198767.71 281.5428.21 777.3
198885.91 389.9448.71 924.4
198987.91 489.2503.02 080.1
Year ended 31 MarchNon-residential buildings*Total
Hotels, boarding-housesHospitalsFactoriesCommercial buildingsSchoolsMiscellaneous;Subtotal

* Includes alterations and additions.

Includes ancillary buildings.

Includes churches and sports entertainment buildings.

 $(million
198569.846.1329.0527.571.7169.91 213.92 686.8
1986105.457.2431.8786.499.2167.91 648.13 364.1
1987146.799.6342.61 133.489.6187.51 999.53 776.8
1988199.086.9400.81 629.5115.9220.32 652.44 576.9
1989196.9131.6336.01 432.5111.1204.22 412.34 492.4

Industry statistics. Other statistics are available from the Department of Statistics' five-yearly Census of Building and Construction which has provided broad economic data on the industry. The results of the most recent (1984–85) census were published in the last edition of the Yearbook. These statistics will be updated from the survey of the industry undertaken as part of the 1987 Economy Wide Census, results of which will become available during 1990.

Contributors

  • 19.1 Housing Corporation; Valuation New Zealand; Department of Statistics.

  • 19.2 Department of Statistics; Reserve Bank of New Zealand; Iwi Transition Agency.

  • 19.3 Department of Statistics.

Historical

J. Daish; Department of Statistics.

Further information

Housing

Annual Accounts and Statistics. Housing Corporation of New Zealand.

Annual Report of the Building Research Association of New Zealand.

Housing New Zealand. National Housing Commission, 1988.

Housing Provision for the Elderly. National Housing Commission, 1987.

Report of the Housing Corporation of New Zealand (Parl. paper B. 13).

Report of the Valuation Deportment (Parl. paper G. 26).

Supply Aspects of Housing 1985–86 to 1988–89. National Housing Commission, 1987.

Urban Real Estate Market in New Zealand. Valuation New Zealand (six-monthly).

Women's Views on Housing. Housing Corporation of New Zealand, 1987.

Building and construction industry

Building Statistics. Department of Statistics (annual).

Enterprise Survey. Department of Statistics (annual).

Chapter 20. Transport and communications

The evolution of New Zealand's transport system has been characterised not only by the country's remoteness from many of its trading partners, but also by its relatively small population being spread over two main islands with a combined length of nearly 2000 kilometres.

International air and telecommunication links have helped overcome the country's isolation, but there is still a heavy reliance on sea transport for overseas trade.

The establishment of road and rail links to ports served by refrigerated cargo ships was an important factor in New Zealand's development as one of the world's major exporters of meat and dairy products. Comprehensive railway and road networks have been established over difficult terrain, frequently through innovative engineering, and, taking into account the size of the population, the capital cost has been high.

In recent years the trend of deregulation has brought major changes in the transport and telecommunications sectors. Previously both these sectors were characterised by the various protections afforded to them by being wholly government-owned, and protected by legislation.

The costs associated with ownership of industries in these sectors have placed heavy demands on government finances. In addition, changes in the marketplace and developments in technology affecting transport and communications services required a new approach to enable them to function more efficiently and to respond to the new challenges.

With this in mind, the Government has progressively reduced, and in some cases relinquished, state-ownership in different areas, and each area of transport and communications has faced restructuring in some form. This has involved major reviews of and changes to legislation to put these industries on a more commercial footing.

Restructuring of the Railways Corporation over most of the past decade has centred on the need to improve the efficiency of the organisation. It currently provides transport by road, rail and ferry and in recent years has faced some of the most far-reaching reforms in its 128-year history.

The changing role of the state in the management of railways began in 1982, when the former Railways Department became a corporation. This was effectively the first step towards bringing railways into competition with other forms of transport. Legislative restrictions encouraging the use of railways by imposing distance limits on road transport operators were gradually phased out between 1983 and 1986. A further change occurred in 1986 when the corporation became a state-owned enterprise, responsible for managing its resources on commercial lines. Major cuts in staffing levels followed as the corporation faced competition and began to rationalise its operations.

The road transport industry has also undergone major changes and was largely deregulated by the end of 1989. Previously road transport operations were restricted by a form of transport licensing which effectively limited operators to providing closely defined transport services within prescribed areas, and took into account the number of operators providing services. In 1984, this quantitative system of road licensing was replaced by a qualitative system, except for taxis, which were included late in 1989.

International air services have expanded since December 1985 when the Government announced a liberalised external aviation policy. Domestic aviation was also opened up to further competition, and in mid-1987 the privately-owned airline, Ansett New Zealand, began flying on domestic routes in direct competition with Air New Zealand.

In 1989 the Government relinquished state ownership of the national airline, Air New Zealand. The sale was made to a consortium of New Zealand and overseas interests and a public share float was made on the New Zealand Stock Exchange.

There have also been changes in the way New Zealand's airports are managed. Airports, which were run jointly by local and central government, are being encouraged to form airport companies. On 1 April 1988 airport companies were formed to manage Auckland and Christchurch and during 1989, Dunedin, Hamilton and Queenstown airports were corporatised. In 1988 the Government announced its intention to sell its shareholdings in the three international airports, Auckland, Wellington and Christchurch.

New Zealand's ports industry has experienced similar changes. Companies have been established to manage the commercial operations of the ports. The Government's role in the shipping industry has also changed with the sale of the Shipping Corporation to overseas interests in 1989.

Reform in the communications industry began in 1987, when the former Post Office was split into three separate state-owned organisations, Post Bank, Telecom, and New Zealand Post. The changeover resulted in the closure of many post offices and a general reduction in staffing.

Deregulation of the telecommunications industry has made New Zealand one of the least regulated countries in the world in this area. At present the Telecom Corporation is the main provider of telecommunications services. However, the Government has announced its intention to sell its interests in Telecom and this is likely to lead to further competition.

The Department of Statistics collects detailed data at five-yearly intervals on the operations of businesses. The Census of Transport, Storage and Communication 1984–85 was the most recent census covering these industries and the 1988–89 Yearbook contained a summary of the census. The results of a 1987 census will be published during 1990.

20.1 Shipping

Over 90 percent of New Zealand exports and imports by value, and almost 99 percent by volume, are carried by sea. This clearly illustrates the importance to New Zealand of efficient and cost-competitive international shipping services. Another consideration is the country's distance from overseas markets. Coastal shipping also provides inter-island links and plays a key role in the distribution of petroleum products and cement.

New Zealand shipping policy has recognised that the country's interests may be best served by being a shipping, rather than a ship-operating nation. It seeks to ensure for New Zealand exporters and others unrestricted access to the carrier of their choice, and the benefits of healthy competition between carriers.

In keeping with this policy, the Government announced in 1988 that it would sell the government-owned Shipping Corporation of New Zealand, which had been established by act of Parliament in 1973. The sale of the corporation to the British-based shipping group, ACT (NZ) Limited, was eventually announced on 22 March 1989. Its new owner has retained the trading name of the former corporation—New Zealand Line—in its operations.

The Government is also considering ways of increasing competition in coastal and trans-Tasman shipping. At present coastal shipping is reserved for New Zealand-crewed ships and trans-Tasman shipping is reserved for New Zealand and Australian-crewed ships by way of an accord between maritime unions. Negotiations are being held between the New Zealand and Australian governments and the relevant unions. A review of coastal shipping has also been completed and the Government is considering submissions from interested parties. The recent entry of additional New Zealand and Australian ships on the Tasman trade has increased competition and reduced real freight rates. This is particularly important if New Zealand exporters are to take full advantage of the Closer Economic Relations Agreement between Australia and New Zealand (ANCERTA), to take effect from July 1990.

Overseas lines

Conference lines handle much of New Zealand's overseas shipping. These are associations between shipping companies to provide joint service on established trade routes.

The main conference lines and trade routes are set out below.

United Kingdom/Europe. The New Zealand European Shipping Association and the New Zealand and United Kingdom Shipowners' Committee play the main role in the carriage of New Zealand exports to Europe. The association serves Mediterranean and Northern European ports. British lines PO&OCL and ACT have large trade shares, with the balance held by a number of continental carriers. There is some competition from independent lines outside the conference.

Middle East/Indian subcontinent. Direct container services are provided by NYK Line (Japan) and a United Kingdom joint service (Blue Star and P&OCL). Some lines in the New Zealand-United Kingdom/Europe conference trade also offer direct services and a number of other carriers provide container trans-shipment services. Chartered conventional tonnage plays an important role in these trades.

East Asia/South-east Asia. New Zealand's outward liner trade is served by one conference, a joint service and a number of independent operators. The Australian and New Zealand Eastern Shipping Conference provides a direct container service between New Zealand, Japan and Korea. Independent services are provided by the China Ocean Shipping Company (People's Republic of China) and the Far Eastern Shipping Company (Soviet Union).

North America. The Australia/New Zealand Direct Line operates between Australia, New Zealand and the United States and provides for the transport of cargo by road and rail from the west coast of North America to destinations throughout the United States and Canada. Columbus Line (West Germany) services both coasts while Blue Star and ACT (both United Kingdom) trade to the west coast and east coast respectively.

Trans-Tasman. Australian and New Zealand carriers play a prominent role in the provision of trans-Tasman shipping services. The largest market share is held by Union Shipping New Zealand, which operates three ships in association with the two-ship ‘Transtas’ services. Union Shipping and the Australian National Line compete with a joint three-ship service provided by the New Zealand Line and the Tasman Express Line.

The Pacific Forum Line operates services to and from Brisbane, using the Forum New Zealand II.

South Pacific. The regionally-owned Pacific Forum Line operates four container vessels linking New Zealand, Fiji, Tonga, Western Samoa, the Solomon Islands, Papua New Guinea, New Caledonia, Australia, Tuvalu and Kiribati. Sofrana Unilines also operate extensive services to the South Pacific, including Niue, Norfolk Island, the Cook Islands and Tahiti.

The Cook Islands National Line vessel services Niue and the Cook Islands. Container and breakbulk services to the region are provided by vessels from New Zealand, Fiji and Tonga as well as French, Dutch, Norwegian, Polish and Israeli vessels.

Inter-island ferry services

A ferry service across Cook Strait between Wellington and Picton is provided by rail ferries operated by the Railways Corporation. The Arahura and Aratika carry passengers and vehicles. The Arahanga is confined to the carriage of freight and provides accommodation only for passengers with vehicles. Pacifica Shipping Limited operates the freight-only roll-on/roll-off vessels Spirit of Competition between Wellington and Lyttelton, and Spirit of Freedom between Lyttelton and Auckland.

A freight-only shipping service to the Chatham Islands is subsidised by government, while a private operator provides a passenger/freight service to Stewart Island.

Bulk shipping

Overseas trade. In tonnage terms, most of New Zealand's external trade is carried in bulk vessels. While a certain amount of bulk tonnage is dedicated to the trade—such as the two trans-Tasman forest product carriers owned by Tasman Pulp and Paper, and the bulk ore vessel used to carry alumina from Queensland to the Tiwai Point aluminium smelter—New Zealand's bulk-shipping needs are served in the main by a fluid mix of vessels.

Cargoes carried by these vessels (frequently registered in open-registry countries like Liberia and Panama) include crude oil, phosphate rock and petroleum coke inwards, and ironsands, coal and forest products outwards.

Coastal. Bulk cement distribution is handled by three small cement earners operated by Milburn New Zealand (2) and the Golden Bay Cement Company (1). Four product tankers operated by Union Shipping New Zealand distribute petroleum products from the Marsden Point oil refinery. The Liquigas LPG carrier Tarihiko operates under New Zealand Line management.

Destinations and cargo

Shipping statistics are compiled from returns lodged by port companies. These returns also detail the amount of coastal cargo loaded or unloaded at ports. Overseas cargo details are obtained from customs entry data.

Calendar years were used for shipping statistics until December 1988; since then the year has ended at 30 June.

In the year ended June 1989, 10 791 arrivals and 10 744 departures were recorded. The busiest port was Wellington with 2683 arrivals and 2687 departures, although a good proportion of these figures come from the Cook Strait rail ferries and foreign fishing vessels calling at the port for registration and provisioning. By tonnage, Auckland handled over 16.2 million gross registered tonnes of shipping in the 1989 year, of which over 10.7 million gross registered tonnes was ships arriving from overseas ports. From 1988 all port shipping tonnage is measured by gross registered tonnage of vessels.

Table 20.1. COASTAL CARGO—MAJOR ITEMS CARRIED, 1989*

CommodityUnloadedLoaded
* Year ended 30 June.
 gross tonnes
Cement581,431588,838
Coal and coke38,21535,211
Petroleum products5 208 8064 611 399
Sand and shingle38,78911,685
Grain17,17017,170
Motor vehicles288,430293,291
Container goods225,052231,116
Other goods1 164 4921 114 528
               Total7 562 3856 903 238

Coastal cargo. All cargo is measured in gross tonnes, instead of manifest tonnes, for international comparability. Commodities recorded under coastal cargo have been limited to those items either carried in bulk or readily identifiable from ships' manifests.

For the year ended 30 June 1989 a total of 14.5 million tonnes of cargo was shipped between New Zealand ports. Whangarei loaded out 2.2 million tonnes of refined petroleum products while Port Taranaki loaded 2.2 million tonnes of petroleum crude and liquified petroleum gas for other ports. Bulk cement totalling 589 000 tonnes was carried from works near Whangarei (268 000 tonnes), Tarakohe (158 000 tonnes), and Westport (262 000 tonnes) during the year. Rail ferry traffic between Wellington and Picton accounted for 707 000 tonnes of southbound cargo and 632 000 tonnes northbound.

Overseas cargo. Cargo loaded for overseas destinations during the year ended 30 June 1989 for overseas destinations totalled 10.7 million tonnes, of which 1.2 million tonnes were ironsands from Taharoa. Tauranga loaded 2.6 million tonnes and Auckland, 1.3 million tonnes, while total cargo loaded for overseas at South Island ports amounted to 2.9 million tonnes.

Imported cargo totalled 7.1 million tonnes for the year ended 30 June 1989. Of this, Auckland unloaded 1.6 million tonnes, Whangarei 2.7 million tonnes and Tauranga 0.6 million tonnes. South Island ports accounted for 1.3 million tonnes of inwards cargo from overseas.

Table 20.2. OVERSEAS CARGO—COMMODITIES CARRIED, 1989*

CommodityUnloadedLoaded
Gross tonnesc.i.f.Gross tonnesf.o.b.
* Year ended 30 June.
  $(m) $(m)
Food and live animals613,566769.02 818 4826 467.5
Beverages and tobacco60,703140.733,77752.9
Crude materials1 355 715505.24 600 6353 461.7
Mineral fuels3 111 126656.01 092 463184.8
Animal and vegetable oils45,73053.9154,805116.5
Chemicals and related products875,6331 616.7630,216716.6
Manufactured goods647,4782 249.41 243 2692 281.6
Machinery and transport equipment324,1794 719.880,0351 150.8
Miscellaneous manufactured articles104,6541 671.332,467449.2
Commodities and transactions not classified elsewhere13710.7443.0
               Total7 138 92112 392.810 686 15114 924.6

Port activity. Table 20.3 gives the gross tonnage and value of export cargo handled by all domestic ports. The country referred to in the table is the country of destination of the cargo as declared on the export documentation.

Shipping movements are categorised as either ‘overseas’ or ‘coastwise’. In table 20.4 overseas arrivals and departures are those which have come directly from or have been cleared to a foreign port. Foreign fishing vessels working the Exclusive Economic Zone are also included in the overseas category. Coastwise arrivals and departures include the coastwise movements of overseas ships subsequent to their arrival from overseas and prior to final clearance, and also the movements of domestic shipping.

Table 20.3. OVERSEAS CARGO LOADED BY COUNTRY, 1989*

Country of destinationValueQuantity

* Year ended 30 June.

Includes countries not listed separately loading cargo less than 1 million tonnes and of less than $1 million, f.o.b. in value.

 $(000) f.o.b.gross tonnes
Algeria10,4647,768
American Samoa20,11814,659
Australia2 731 1211 504 212
Bahrain9,2593,420
Bangladesh3,5543,258
Barbados13,1466,109
Belgium272,525118,346
Bennuda5,5991,590
Bulgaria2,2321,822
Canada268,81664,696
Chile11,2684,538
China (People's Republic of)539,604527,183
Cook Islands30,07813,095
Cyprus3,4021,104
Czechosovakia21,1553,794
Denmark30,9389,907
Destination unknown E.C.183,353142,351
Destination unknown non E.C.1,8152,200
Dominican Republic21,4539,250
Egypt29,56715,411
El Salvador4,5211,308
Fiji145,670141,906
Finland5,9732,812
France212,39136,171
French Polynesia49,83126,901
German Democratic Republic7,09830,109
Germany (Federal Republic of)314,77977,306
Greece58,25319,938
Guadeloupe3,3771,499
Guam5,4941,690
Guatemala3,7091,184
Hong Kong212,01298,368
India82,422109,259
Indonesia150,526162,256
Iran, (Islamic Republic of)130,56462,285
Iraq1,1101,123
Ireland22,9978,267
Italy321,97465,916
Jamaica25,98810,837
Japan2 658 5424 184 601
Jordan23,40013,642
Kenya2,1601,169
Korea (Republic of)469,833653,622
Kuwait14,4137,614
Lebanon3,0301,269
Libyan Arab Republic6,6727,861
Malawi1,8262,444
Malaysia247,482137,491
Malta3,4741,315
Martinique3,5131,471
Mauritius23,0208,587
Mexico139,68848,239
Morocco4,5901,351
Nepal17,7942,671
Netherlands171,63984,312
New Caledonia32,31727,710
Nigeria3,4981,444
Niue4,5191,619
Norfolk Island5,0563,153
Oman14,6246,094
Pakistan47,29716,012
Panama9,6172,981
Papua New Guinea81,11979,388
Peru22,94912,218
Philippines160,998123,360
Poland11,4662,772
Portugal15,8663,746
Qatar4,1413,099
Samoa29,51620,578
Saudi Arabia113,22367,423
Singapore201,42491,459
Solomon Islands12,42813,535
South Africa29,94938,813
Spain95,87925,363
Sri Lanka29,92014,617
Sweden34,36621,675
Switzerland45,00311,189
Taiwan, (Province of China)283,030232,821
Tonga22,76310,562
Trinidad and Tobago10,0263,428
Tunisia3,8081,745
Turkey26,9683,824
Soviet Union325,052138,936
United Arab Emirates33,51012,090
United Kingdom1 068 714349,210
United States2 038 600708,929
Vanuatu9,5766,115
Venezuela114,42542,304
Yemen21,6069,114
Yugoslavia10,3901,721
Zimbabwe2,5169,519
               Total, all countries14 924 61410 686 151

Table 20.4. OVERSEAS AND COASTWISE SHIPPING BY PORTS 1989*

All portsCoastwiseOverseas
No. of vesselsNet tonnageNo. of vesselsNet tonnage
* Year ended 30 June.
Arrivals(000)(000)
Whangarei2833,076802,170
Auckland/Onehunga8345,52690310,717
Tauranga3684,7063701,953
Taharoa13790
Gisborne1917320163
Port Taranaki4072,7831051,145
Napier2352,54963730
Wanganui211917
Wellington2,15515,1475282,837
Tarakohe3167
Nelson1301,5175331,007
Picton1,6359,408437
Westport102385
Greymouth1995
Lyttelton3812,4725154,651
Timaru1752,060319586
Otago1371,9671712,772
Invercargill/Bluff1271,095911,315
Chatham Islands1211
               Total, all ports7 05252 9543 73930 890
Departures
Whangarei2853,057762,120
Auckland/Onehunga1,0619,0816727,003
Tauranga1802,3815344,215
Taharoa13790
Gisborne32288642
Port Taranaki3872,5501251,378
Napier1742,1581241,105
Wanganui1 1917
Wellington2,21316,2624741,733
Tarakohe2866
Nelson851,1125871,417
PictonI 6339,3325107
Westport102385
Greymouth20115
Lyttelton4012,6384844,461
Timaru1571,966327637
Otago1121,5681963,144
Invercargill/Bluff1007701151,584
Chatham Islands1110
               Total, all ports6 98253 6353 76229 753

Services to shipping

Port reform as part of the Government's reform package for the ports industry, the New Zealand Ports Authority was abolished in May 1989. The Ports Authority had been responsible for co-ordinating national harbour development and promoting an efficient and integrated ports system. The authority's consent was required to port developments exceeding specific expenditure limits by harbour boards and all other concerns wishing to undertake harbour works. The Port Companies Act 1988, which took effect from 1 May 1989, repealed the New Zealand Ports Authority Act 1968 and had as its main aim the establishment of port companies to operate harbour boards' commercial port facilities. These companies operate under normal commercial constraints, and any development decisions will be based on the same commercial criteria applicable to other business enterprises.

By November 1989, 12 out of the 13 newly restructured port companies had began trading.

The Minister of Finance announced in the economic statement of 20 March 1990, that the Government will introduce legislation to remove the restriction in the Port Companies Act 1988 requiring local government to hold at least 51 percent of the shares in each port company. It will also strengthen the powers of the Commerce Commission in relation to takeovers involving port companies. The objective of this is to improve port management through a wider shareholding, and therefore lower port costs for exporters.

Registration of ships. As at 31 December 1988 there were 2301 ships on the New Zealand Shipping Register, with a total gross tonnage of 384 795 tonnes and net register tonnage of 202 904 tonnes. This compared with 2217 ships totalling 383 192 gross tonnes and with a net tonnage of 201 453 tonnes in December 1987.

New registrations during this period were the deep-sea fishing vessels, San Rangitoto, San Tortugas, San Waitaki; the coastal fishing vessel, Pacific Explorer; the tugs, Awanui and Reinga; and the dumb barge Sea Tow II.

Vessels removed from the New Zealand register during the year included the cargo vessel, Fetu Moana; tugs, Loch Lein and Canterbury; and the barges Sea Tow III and Sea Tow IV.

Table 20.5 describes registered vessels involved in trade. No data is available for years since 1987.

Table 20.5. REGISTERED VESSELS INVOLVED IN DOMESTIC AND OVERSEAS TRADE*

YearNumber of vesselsNet registered tonnageNumber of crew

* Ships in overseas trade mainly engaged in trans-Tasman and Pacific Islands trading movements.

The shipping register is not metricated and I net register ton equals 100 cubic feet (or 2.83 cubic metres) of cargo capacity

Source: Ministry of Transport.

Domestic
19841655,440516
19851756,463541
19861553,767506
19871452,369480
Overseas
19841273,777332
19851396,393369
198615102,716420
19871296,661344

Merchant navy qualifications. The Maritime Transport Division of the Ministry of Transport conducts regular examinations for merchant service personnel who wish to obtain certificates of competency as master, mate, or engineer. There are different standards of certificates for foreign-going, home-trade, and restricted-limits ships. The foreign-going certificates as master, first mate, second mate, watchkeeper and engineer (class 1, 2 and watchkeeping), are valid in most Commonwealth countries. Examinations are also conducted for skippers, mates and engineers of deep-sea, coastal, and inshore fishing boats. Voluntary examinations are held for amateur sailors.

Ship survey and safety. The Maritime Transport Division carries out surveys of ships as required by the Shipping and Seamen Act 1952.

This Act is primarily concerned with the safety of ships and those who sail in them. It contains the necessary authority for implementing the provisions of several international conventions to which New Zealand is a signatory. It also provides for the safety of all ships plying New Zealand coastal waters, and all New Zealand registered ships on international voyages.

In the 1988 calendar year, 1558 certificates of survey were issued, compared with 1435 in 1986 and 1432 in 1985.

One hundred and twelve foreign squid boats, three purse seiners and 10 foreign trawlers, which were exempted from survey and crewing requirements, were issued with certifying letters. Seven foreign trawlers were exempted from crewing requirements only, four of these each being granted two exemptions during the year.

During 1988, 47 certificates were issued under the International Convention for the Safety of Life at Sea 1960, to which New Zealand is a signatory, compared with 51 in 1987, and 45 in 1985. In addition 31 surveys were carried out on overseas-registered ships towards the issue of certificates under the International Convention for the Safety of Life at Sea 1974 and the 1978 Protocol to that Convention.

Special surveys are also made for seaworthiness after damage, for efficiency of equipment and for tonnage measurement.

Legislation was passed during 1989 which will enable the International Convention for the Safety of Life at Sea 1974 (SOLAS 1974), its 1978 Protocol and the amendments of 1981 and 1983 to be ratified by New Zealand. The convention contains provisions relating to the safe standards of design, construction, equipment and operation of foreign-going ships.

Navigational services. On headlands, capes, reefs, and shoals around the 7000 kilometres of coastline and in the waters in harbours and lakes controlled by the Ministry of Transport there are 192 navigational aids. At May 1990 these aids consisted of 112 automatic lights, 68 day beacons, 5 navigational buoys, and 7 radio beacons. They are a responsibility of the Maritime Transport Division and cost about $3.5 million annually to maintain. This is met by light dues collected from overseas and coastal ships and fishing boats. The remaining lighthouses are being phased out and this will be completed in 1990.

Wrecks The Ministry of Transport investigates the cause and circumstances of any wreck or shipping casualty in New Zealand waters. In cases of loss of life or serious damage, a Superintendent of Mercantile Marine, or appointee, carries out a preliminary inquiry. The report is sent to the Minister of Transport, who may order a formal investigation. Such an investigation is usually held by a judge, assisted by technical assessors, who can cancel or suspend the certificate of any officer found to be at fault.

Receivers of Wreck have extensive powers for preserving life and protecting property. Contrary to popular belief a wreck or any article belonging to it remains the property of the owner and it is illegal for others to take any items of wreckage.

Table 20.6. SHIPPING CASUALTIES, 1988*

Type of shipMachinery breakdown and miscellaneousCapsizing and collisionStranding and groundingFounderingFireTotal
* Year ended 31 December.
 incidents reported
Passenger72312
Cargo105419
Fishing1119107350
Dredges, tugs. etc.3111116
Pleasure34584602610525
               Total376121773414622

Fishing boat casualties during 1988 resulted in the loss of 13 vessels and 14 lives. Pleasure boat accidents resulted in 22 deaths including three as a result of non-commercial river-rafting mishaps. Eleven preliminary inquiries were carried out by marine inspectors. No formal inquiries were held.

Marine pollution. The Marine Pollution Act 1974 gives effect to a number of international conventions relating to oil pollution. The most important of these are the International Convention for the Prevention of Pollution of the Sea by Oil 1954, as amended in 1962 and 1969, and the International Convention on Civil Liability for Oil Pollution Damage 1969.

This Act has been revised to give effect to Marpol 73/78 (International Convention for the Prevention of Pollution from Ships 1973 as modified by its Protocol in 1978) and the amending legislation was before Parliament at the time of going to press.

The 1954 convention is concerned with the prevention of oil pollution resulting from normal shipping operations. Marpol 73/78 not only strengthens the 1954 convention but also introduces measures to mitigate the effects of pollution resulting from tanker accidents and deals with pollution of the sea by substances other than oil.

There is a contingency plan to deal with a major spillage of oil in New Zealand waters and oil pollution control equipment, including dispersants, is stockpiled in New Zealand to deal with such an eventuality. The Act also provides for control of the dumping of waste at sea from ships. It prohibits the dumping of substances known to be harmful to the marine environment, but also allows the Ministry of Transport to issue permits for the dumping of other wastes, such as dredging spoil, under appropriate conditions and in approved sites.

20.2 Civil aviation

Control of civil aviation

The principal legislation affecting civil aviation in New Zealand is the Civil Aviation Act 1964. This Act established a Department of Civil Aviation which later, under the Ministry of Transport Act 1968, became a division of the Ministry of Transport. More recently, an extensive review of civil aviation legislation and the Air Transport Division of the Ministry of Transport, which administers the legislation, has been carried out. As a result of this review extensive changes are proposed to the Civil Aviation Act.

The Air Transport Division is responsible for setting aviation safety standards for airworthiness, aerodromes, aviation security, airways services, flight safety, and flight supervision. It is also responsible for the licensing of flight crew, aircraft maintenance engineers and aerodromes as well as the registration of aircraft. The division carries out surveillance of aviation operators by using safety audit systems to ensure standards are maintained.

The Aviation Security Service of the Ministry of Transport screens passengers and baggage and, where necessary, searches passengers, baggage, cargo, aircraft, aerodromes, and navigational installations. It also carries out security patrols, and in general, reviews, investigates and inquires into security techniques, systems, devices, etc., co-operating where necessary with police, airport officials, government departments, and other responsible authorities.

The Airport Authorities Act 1966 empowers local authorities to provide airports, and a 1986 amendment authorises the Crown and local authorities to form, and hold shares in, airport companies. It also provides for flexibility in charging mechanisms. These are fees for landing, etc. Previously such fees were set by central government but are now set by airports. The Government has also announced its intention to sell its shareholding in the three international airports.

International air service agreements. The Aviation Crimes Act 1972 gives effect to the Tokyo Convention 1963 relating to offences committed on board aircraft, the Hague Convention 1970 relating to hijacking, and the Montreal Convention 1971 relating to aerial sabotage.

International air services are operated in accordance with bilateral air transport agreements negotiated between governments. New Zealand is a signatory to 18 bilateral agreements and has negotiated a further two, which have yet to be formally signed. All airlines operating scheduled international air services to and from New Zealand are required to hold an international air service licence issued by the Minister of Civil Aviation under the International Air Services Licensing Act 1947. The minister also has the power under the Civil Aviation Act 1964 to authorise international air fares and cargo rates which meet criteria disallowing predatory or excessive pricing. The same legislation provides for agreements on international airline pricing and capacity to be given certain exemptions from the competition aspects of the Commerce Act 1986 to enable airlines to offer a joint product by combining their individual services.

New Zealand is a party to the Warsaw Convention of 1929, which was amended by the Hague Protocl of 1955. This convention defines the financial liabilities of international air carriers towards their passengers. In addition New Zealand has decided to ratify the provisions of certain other protocols to this convention in relation to documentation and carrier liability of cargo and postal items and the carriage of passengers and baggage.

The protocols also adopt the principle of absolute liability of the carrier, in the event of death or injury to a passenger, subject only to contributory negligence on the part of the passenger. The maximum level of liability has been substantially increased (to approximately US$100 000). Until the additional protocols are ratified the present levels of compensation (maximum is US$75 000) and procedures whereby the claimant must prove fault on the part of the earner, will remain in force. Liabilities of domestic air carriers are governed by the Carriage by Air Act 1967 and the Carriage of Goods Act 1979.

The Air Services Licensing Authority. This is a three-person independent body which grants air service licences. An air service licence is essential for any air transport or aerial work conducted for hire or reward. There is a right of appeal to the High Court against the decisions of the authority. In 1986, an amendment to the Act repealed provisions which prohibited the control of air services by overseas persons. In 1988 the Government announced a review of the Air Services Licensing Act 1983. This is proceeding.

The Airways Corporation of New Zealand. Responsible for ensuring the safe and orderly flow of air traffic, the corporation provides extensive ground services including air traffic control and flight information, alerting services, and telecommunications. The provision of fire rescue services is the responsibility of aerodrome licensees and in Rotorua and Dunedin the services are provided on a contractual basis by the corporation. The corporation also assists search and rescue and aerodrome emergency organisations. Elements of these ground services are provided at most aerodromes served by regular air services.

In addition to control towers and flight-service stations at aerodromes, area and approach control is provided at Auckland, Wellington, Christchurch and Ohakea. Flight information and briefing services to on route aircraft throughout the country are provided from Auckland and Christchurch.

The Airways Corporation provides all air navigation facilities in New Zealand. These navigation facilities include electronic aids such as non-directional medium frequency beacons (NDB), very-high-frequency omni-directional radio ranges (VOR), instrument landing systems (ILS), surveillance radar equipment (SRE), distance measuring equipment (DME) and very-high-frequency direction-finding equipment (VDF). Visual aids include the visual approach slope indicator systems (VASIS) and precision approach path indicator (PAPI). An Aeronautical Information Service publishes the journal Notices to Airmen, and regular circulars. It collaborates with the Department of Survey and Land Information in the production of aeronautical maps and charts.

The corporation also maintains an aeronautical training college at Christchurch International Airport. Regular courses are conducted in air traffic services, telecommunications engineering, and fire and rescue procedures.

Domestic air services

Air New Zealand, and Ansett New Zealand. (which was established as a joint-venture company with New Zealand and Australian shareholding but is now wholly Australian-owned) are the largest domestic air service operators. Air New Zealand was wholly government-owned until recently. The company was restructured as a state-owned enterprise and subsequently sold in 1989.

Table 20.7. SUMMARY OF DOMESTIC SCHEDULED AIR SERVICES

December yearSeat kilometres availablePassengers carriedPassenger-kilometresFreight carried (tonnes)Freight (tonne kilometres)Mail (tonne kilometres)
 (000)(000)(000)(000) 
19842 027 4852,9501 397 11545.725,4831,411
19852 270 4733,2551 553 97142.123,5081,369
19862 413 612.x3,4431 652 433x65.133,5771,199
19872 540 1933,7851 728 45658.431,461877
19882 970 2154,1251 767 00939.326,3741,291

The Mount Cook Group Limited, which is substantially owned by Air New Zealand, provides mainly tourist-oriented passenger services, while Safe Air, an Air New Zealand subsidiary, provides a freight service.

Commuter operators also provide regular services throughout the country. In addition, at most aerodromes there are light aircraft operators licensed for charter services. Some of these are aero clubs and flying schools providing facilities for flight training and private flying.

International air services

Trans-Tasman air travel accounts for the largest volume of passengers travelling to and from New Zealand. Air traffic on this route is subject to agreement between Air New Zealand and Qantas, the Australian national airline. On the trans-Tasman route, Qantas operates services to Auckland, Wellington, and Christchurch. from Sydney, Melbourne, Brisbane, Adelaide, Townsville, Perth, Cairns, Hobart, Darwin.

Air New Zealand provides services to Sydney, Brisbane, Adelaide, Cairns, Melbourne, Hobart, Penh, Norfolk Island, New Caledonia, Tahiti, Cook Islands, Western Samoa. Fiji, Tonga, Singapore, Tokyo, Honolulu. Vancouver. Los Angeles, Hong Kong, Frankfurt and London. The airline began services to Kuala Lumpur this year. Its international fleet is: 7 Boeing 767s, and 5 Boeing 747–200s. Boeing 737–200s are used on short-haul Pacific operations.

Table 20.8. TRAFFIC ON INTERNATIONAL SCHEDULED SERVICES BY AIRPORT*

Airport and type of traffic1985x1986x19871988
InOutInOutInOutInOut

* Passengers and freight in transit are excluded Year ended 31 December.

Source: Ministry of Transport.

Auckland International Airport—
     Passengers813,514815,789935,660933,5401 140 5911 140 7711 266 8631273 715
     Freight (tonnes)..31,23648,88236,91142,84344,78448,89049,53852,487
     Mail (tonnes)2,3221,2802,4731,2822,4931,1682,6321,111
Wellington—
     Passengers68,91971,56394,86295,839114,663114,175126,530128,206
     Freight (tonnes)..2,0772,7823,5373,2125,4043,0844,9573,211
     Mail (tonnes)11565147572007418586
Christchurch International Airport—
     Passengers160,835168,337192,998196,151244,605240,668249,759259,354
     Freight (tonnes)3,3126,2564,7545,5807,4198,8807,7459,118
     Mail (tonnes)94601167736685341128

Table 20.9. INTERNATIONAL AIR SERVICES: VOLUMES

Sector and trafficYear ended 31 December
1985198619871988

* Service from Sydney, Melbourne, Brisbane, Hobart, Perth, Townsville and Adelaide to one or more of the three international airports, Auckland, Wellington, and Christchurch (and vice versa). Also includes service from Cairns to Auckland.

† Sectors are Nadi, Noumea, Norfolk Island, Tonga. Suva, Apia, Pago Pago, Rarotonga, Port Vila-Vanuatu, and Niue to either Auckland, Wellington or Christchurch airports (and vice versa).

‡ These sectors are Port Moresby, Papeete, Honolulu. Los Angeles, San Francisco, Buenos Aires, Tokyo, Nauru, Singapore, Bangkok and Denpasar-Indonesia.

Source: Ministry of Transport.

Trans-Tasman*
     Passengers (000)1,4441,6561,8942,078
     Freight and mail (tonnes)66,59767,65482,30786,178
     Kilometres flown (000)17,25024,75630,63736,572
Pacific short-haul
     Flights2,5502,9672,8032,864
     Passengers (000)282330321322
     Freight and mail (tonnes)8,9299,3648,6098,997
     Kilometres flown (000)5,1436,2365,9915,744
Long-haul
     Flights2,3562,8573,6324,238
     Passengers (000)446537764879
     Freight and mail (tonnes)28,07128,04430,14635,120
     Kilometres flown (000)16,72820,63226,50531,262

Airline companies operating through New Zealand include: Aerolineas Argentinas—from Buenos Aires to Auckland; Air Caledonie International—from Noumea to Auckland; Air Nauru—from Nauru via Honiara/Vila to Auckland and beyond to Niue; Air Pacific—from Nadi/Suva to Auckland; Air Vanuatu—from Vila to Auckland; British Airways—from London via the Middle East/South-east Asia/Australia to Christchurch/Auckland; Canadian Airlines International—from Toronto/Vancouver via Honolulu/Nadi to Auckland; Cathay Pacific—from Hong Kong to Auckland; Continental Airlines—from the United States through Honolulu, to Auckland and beyond to Sydney/Melbourne; Hawaiian Airlines—from Honolulu to Rarotonga and these jointly with Air Rarotonga to Auckland; Japan Air Lines—from Tokyo to Christchurch/Auckland; Malaysian Airline System—Kuala Lumpur to Auckland; Polynesian Airlines—from Apia via Tonga to Auckland; Singapore Airlines—from Singapore to Christchurch/Auckland; Thai Airways International—from Bangkok to Christchurch/Auckland; Union de Transport Aeriens—from Tahiti/Noumea to Auckland; and United Air Lines—from the United States through Honolulu, to Auckland and beyond to Sydney/Melbourne.

Table 20.1. SUMMARY OF SCHEDULED INTERNATIONAL AIR SERVICES

YearPassengers carriedFreight carriedMail carried
 (000)tonnestonnes
19841 903x90 56x3 502x
19852 109x94 608x3 936x
19862 457x96 870x4 153x
19873,000117,7694,385
19883,340127,9814,529
Source: Ministry of Transport.

Distances to overseas destinations. Distances to the Australian cities from the airports at Wellington and Christchurch differ slightly from the Auckland figures given in the following table. The distances are: Wellington-Sydney, 2235 km; Wellington-Melbourne, 2589 km; and Wellington-Brisbane, 2508 km; Christchurch-Sydney, 2124 km; Christchurch-Mel-bourne, 2413 km; Christchurch-Brisbane, 2495 km; and Christchurch-Hobart, 2024 km.

Table 20.11. DISTANCES FROM AUCKLAND AIRPORT TO SELECTED OVERSEAS DESTINATIONS*

DestinationDistance

* These are airport-to-airport great circle distances.

Source: Ministry of Transport.

 km
Adelaide3,247
Apia2,893
Brisbane2,293
Hong Kong9,145
Honolulu7,086
Los Angeles10,480
Melbourne2,635
Nadi2,156
Norfolk Island1,091
Noumea1,859
Pago Pago2,902
Papeete4,093
Perth5,400
Port Moresby4,126
Rarotonga3,013
San Francisco10,503
Singapore8,410
Suva2,141
Sydney2,158
Tokyo8,837
Tonga2,004
Townsville3,359

International air freight

Air freight involves mostly exports and imports to and from Australia, Japan and the United States. Exports are mainly made-up textiles, meat, fish and live animals, notably racehorses. Air-freighted imports consist mainly of machinery, scientific instruments, pharmaceutical products, and textiles.

Table 20.12. OVERSEAS AIR CARGO TRANSPORTED BY TYPE 1989*

CommodityLoadedUnloaded
Gross tonnesf.o.b $(000)Gross tonnesc.i.f $(000)

* Year ended 30 June.

† Not elsewhere specified.

Food and live animals40,846420,3339,64350,869
Beverages and tobacco2421,2742411,500
Crude materials1,51575,17754813,560
Mineral fuels116242360
Animal and vegetable oils, fats458429654
Chemicals and related products n.e.s.2,57361,7236,309319,465
Manufactured goods6,928172,24311,984292,034
Machinery and transport5,528578,68317,0201 510 872
Miscellaneous manufactured articles5,240231,45914,296761,146
Commodities n.e.s.342,504389,909
               Total62 9311 583 54360 1492 960 368

Table 20.13. OVERSEAS AIR CARGO BY COUNTRY, 1989*

Destination/sourceLoadedUnloaded
Gross tonnesf.o.b $(000)Gross tonnesc.i.f. $(000)

* Year ended 30 June.

Includes other countries.

Argentina379781933,236
Australia30,932826,44335,7761 143 833
Belgium4804,46816710,870
Brazil72561,5366,206
Canada1,70936,22630538,664
China (People's Republic of)39749651913
China (Province of Taiwan)1046,05089452,220
Cook Islands6307,0751,4339,066
Denmark344,17916016,114
Fiji64123,9571,42428,696
Finland216981226,462
France13814,94236926,898
French Polynesia2,70116,9709462
Germany (Federal Republic of)58222,7991,30192,913
Hong Kong1,10433,90695949,264
India1051326913,711
Indonesia422,1441091,308
Ireland242,35412624,955
Italy8117,04959845,586
Japan10,339126,9861,663157,516
Korea (Republic of)28020,41719610,703
Malaysia1423,9241193,336
Netherlands1446,56244832,960
New Caledonia4684,027171
Papua New Guinea584,7958643
Samoa812,9502088,865
Singapore1,22846,89277346,559
Sweden615,82929938,643
Switzerland84910,33558456,227
Thailand1961,7661456,417
United States7,748211,0435,861682,961
United Kingdom1,22481,1213,041303,184
               Total62 9311 58354360 1492 960 368

Aerial work

Aerial topdressing, as a means of improving hill pastures and checking and preventing soil erosion, began commercially in 1949. During recent years the extent of both aerial top-dressing and spraying has varied according to demand by demand by farms, largely as a result of varying farm incomes.

Table 20.14. SUMMARY OF AERIAL WORK

Aerial workYear ended 30 June
19841985198619871988

* Year ended 31 December.

Includes pellets or perils and dusts.

Source: Ministry of Transport.

Hours flown (other than training) (000)68.661.733.028.930.7
Number of operators119102106105*100*
Material distributed—
     Fertiliser and lime (tonnes)915.6848.3425.4400.8377.7
     Seed (tonnes)2.23.44.72.51.7
     Spray (litres)52 312.242 994.748 945.525 457.324 616.4
     Poison baits (tonnes)4.83.53.04.13.2
     Supplies (tonnes)3.37.411.06.53.4
     Fencing (tonnes)2.92.12.31.41.1
     Other1.00.80.52.20.8

20.3 Railways

A railway network extending over nearly 4300 kilometres links almost all the principal centres of population. There are also a number of short private railways mainly serving collieries and other industrial undertakings. Rail services are operated by the New Zealand Railways Corporation, which also provides road services over more than 10 000 route kilometres of highway, and a rail and road vehicle and passenger ferry service across Cook Strait (Wellington-Picton).

Railways Corporation of New Zealand

A significant event affecting the country's railways was the turning of the former Railways Department into the Railways Corporation. The Railways Corporation was established in 1982 as a statutory corporation under the New Zealand Railways Corporation Act 1981. This spearheaded a number of major changes in the industry. A significant change was that legislative restrictions encouraging the use of railways by imposing distance limits on road transport operations were gradually discontinued between 1983 and 1986. This opened up competition for railways from the road transport industry; the effects of which are still being felt in the transport sector.

Although it became a state-owned enterprise in 1986, the Railways Corporation is not a limited liability company in terms of the Companies Act 1955. Rather it is a single statutory entity engaged in a variety of different businesses, including the provision of bus services, ferries, the management of extensive property holdings, as well as its core business of running railways. The Government has recently expressed the view that not all these activities are necessarily best carried on by the one company.

Continuing losses by Railways have made heavy calls on government finances. In the economic statement of 20 March 1990 the Minister of Finance reported that the corporation has an accumulated debt of $1.1 billion and that the Government is considering future restructuring options for the corporation and has passed legislation to put its operations on a more competitive footing.

Table 20.15. NEW ZEALAND RAILWAYS—SUMMARY OF OPERATIONS

CategoryUnitAs at 31 March
1977198219871989

* Increase in length of the electrified route is due to the opening of the North Island main trunk line.

† Reduction in rolling stock due to modernisation and the abolition of provincial railcar service.

Source: New Zealand Railways Corporation.

Route—
     North Islandkm2,5932,5552,5552,555
     (electrified)*km8585139510
     South Islandkm2,1311,8631,7111,711
     (electrified)km14141414
Bridgesno.....2,3032,303
 km....68.7168.71
Tunnelsno.178172165165
 km94.1492.6391.5391.53
Locomotives—
     diesel/diesel-electricno.505508416270
     electricno.1411528
     steamno.2222
Rolling stock
     freightno.30,37926,89918,30512,396
     passenger (incl. motorised)no.520442171212
Passengers carried—
     long distanceno.1 288 593899,555845,202..
     suburbanno.17 189 54113 440 35214 203 287..
Total freight carriedtonnes13 601 37211 520 4019 003 516..

Railway construction and engineering

The most significant recent development has been the electrification of the central section of the North Island main trunk line, a project which began in 1984 and was completed in 1988. The section of line involved is the 411 kilometres between Palmerston North and Te Rapa, north of Hamilton. Electrification required the installation of new signalling and communications systems (laid underground), and a major overhaul and improvement of the line.

These works are expected to result in reduced fuel costs and faster travelling times for freight and diesel-electric passenger services. The project, the biggest single railway development since completion of the main trunk in 1908, was completed at a cost of approximately $250 million.

A more detailed description of the electrification project was given in the 1987–88 edition of the Yearbook.

Track. All track is laid to a gauge of 1067 mm (3ft. 6in.). The major routes are laid with rails of 42.2 or 45.1 kg/m but these are progressively being relaid with rails weighing 50 kg per metre. Secondary and branch lines have generally been laid with rails weighing 27.3, 34.7, and 35.7 kg/m and the practice is to re-lay these lines with heavier rails from the main lines. Treated Pinus radiata sleepers, laid about 1480 per kilometre, have gradually replaced Australian hardwood sleepers, and locally manufactured concrete sleepers are also being used on selected areas on the main routes. Track with fishplates and bolts at every joint is progressively being replaced with rails welded at the joints on all major routes and on some secondary lines.

Bridges. To carry the railways across the many gorges, rivers, and streams in New Zealand, about 2303 bridges and viaducts have been built with an aggregate length of 68.71 kilometres. The longest railway bridge is that over the Rakaia River, 55 kilometres south of Christchurch. Completed in 1939 to replace an original timber structure of the 1870s, it is 1743 metres in length.

The highest viaduct is the Mohaka, completed in 1937 to carry the Napier-Gisborne railway 97 metres above the Mohaka River. Twenty-one New Zealand railway viaducts carry the rails more than 33 metres above the rivers and streams they cross.

Tunnels. There are 165 railway tunnels in New Zealand. The three longest tunnels are Kaimai (8.9 km), between Tauranga and Morrinsville; Rimutaka (8.8 km), between Upper Hutt and Featherston; and Otira (8.5 km), between Otira and Arthur's Pass.

Passenger services

Rail services: In addition to suburban services. New Zealand Railways Corporation runs six passenger services.

The Silver Fern daylight express railcar runs six days a week, between Auckland and Wellington. The Northerner express runs six-nights-a-week between Auckland and Wellington, and stops at many of the smaller towns not served by the Silver Fern. The Southerner runs six days a week between Christchurch and Invercargill.

There are also daily services operated by the Bay express between Wellington and Napier, the Coastal Pacific between Christchurch and Picton and the Tranz Alpine Express between Christchurch and Greymouth.

Road services. Provincial services to other districts are operated by Railways Intercity coaches. This is one of the country's largest road operations. Its passenger services cover over 10 000 km of highways.

Cook Strait rail/ferry service

Two ferries carrying road and rail vehicles and passengers are operated by the Railways Corporation between Wellington and Picton: the Arahura, and the Aratika. A third vessel, the Arahanga, carries rail wagons and road freight vehicles, but not passengers.

The Arahura, the newest of the ferries, makes the Wellington-Picton crossing in 3 hours, compared with 3 hours 20 minutes taken by the others. See also, ‘Inter-island ferry services’ in section 20.1.

20.4 Road transport

Capital investment in New Zealand's roading and road transport system exceeds that in all other forms of transport. There are about 93 000 kilometres of formed roads and streets, and over 1.8 million motor vehicles. The most recent employment statistics available on the transport industry, the Department of Statistics' annual Business Directory update of February 1989, recorded 10 334 people employed in the provision of road passenger transport, and 17 575 people in providing road freight transport.

Transport licensing

The Transport Services Licensing Act 1989 replaced the sections in the Transport Act 1962 relating to transport licensing as the main legislation governing road transport licensing. The Act provides for a system of road transport licensing which operates on a qualitative basis for goods, passenger and rental services. A quantitative licensing system for road transport operators was replaced with a qualitative system for all but taxi services from 1984. (Qualitative licensing means that based on minimum standards of service rather than the number of vehicles to be licensed.)

The 1989 Act extended qualitative licensing provisions to taxi services and brought vehicle recovery services (tow trucks) into the licensing regime as well. A ‘hire or reward’ distinction was also removed to bring all heavy vehicles under transport licensing requirements. As of 1 November 1989 the concept of ‘a fit and proper person’ was adopted as the principal criteria for road transport operators.

Urban transport

On 1 October 1989, the Transit New Zealand Act 1989 repealed the Urban Transport Act 1980, abolished the Urban Transport Council, and established a new authority, Transit New Zealand, which is responsible for developing a national land transport programme (see description below).

Under the new Act every regional council is required to establish a regional land transport committee for its area. Each year every territorial authority must submit to that committee, and make available to the public, a district land transport programme for the next year. This programme comprises the territorial authority's recommendations concerning the land transport needs of its district and must include local roading, safety (construction and maintenance), passenger transport, state highways, and safety (administration).

Not later than 31 March each year, the Transit New Zealand Authority is required to submit to the Minister of Transport for approval, a national land transport programme for the next year, which must include the authority's recommendations; proposed funding for those recommendations; and a statement of intent.

The Urban Transport Council in its eighth and last full year of activities was allocated $59.5 million for the financial year ended 31 March 1989.

Transit New Zealand

The Transit New Zealand Act 1989, which became effective on 1 October 1989, repealed the National Roads Act 1953 and the Urban Transport Act 1980, abolished the National Roads Board and Urban Transport Council, and established Transit New Zealand.

Transit New Zealand took over the responsibilities of the National Roads Board and Urban Transport Council and became the new organisation to represent the interests of all New Zealanders in the planning and funding of the land transport system.

A new structure of local government in New Zealand, constituted on 1 November 1989, created 14 regions (excluding the Chatham Islands) and 74 territorial authorities, comprising 14 city councils, 59 district councils, and one county council (Chatham Islands). Transit New Zealand works in close partnership with these local authorities and the Ministry of Transport to develop a land transport system that meets the needs of local communities and New Zealand as a whole (see above text).

Transit New Zealand is directed by a central authority, made up of not less than seven, nor more than ten members, who are appointed by the Governor-General on the recommendation of the Minister of Transport and Minister of Finance.

Transit New Zealand is responsible to the Minister of Transport for meeting its financial and management reporting requirements under the Transit New Zealand Act 1989 or any other act, and must comply with any lawful direction in writing by the minister.

The principal objective of Transit New Zealand is to promote policies and allocate resources to achieve a safe and efficient land transport system that maximises national economic and social benefits.

The functions of the Transit New Zealand Authority are:

  • To prepare an annual national land transport programme and revise it where necessary;

  • To control all aspects of the state highway system and monitor and assist with local roading;

  • To advise and assist local authorities on all aspects of the Transit New Zealand Act 1989;

  • To make payments from the Land Transport Fund, and monitor the collection of revenue for the fund; and

  • To advise the Government on all aspects of the land transport system.

Roading

There are 74 national and provincial state highways in New Zealand, comprising 11 523 kilometres of roading. This network includes major routes that carry the greatest volume of traffic between residential communities, commercial and industrial areas. In addition, there are 14 251 kilometres of urban roads and 67 200 kilometres of rural roads, making a total of 92 974 kilometres of developed roading, which includes 14 943 bridges.

The operation and management of the strategic roading network is, in most cases, affected by the laws controlling land use. These laws are embodied in the Transit New Zealand Act 1989, although powers are also given to road controlling authorities by the Town and Country Planning Act 1977, the Local Government Act 1974, and the Public Works Act 1981. As far as possible, these laws enable freedom of use of land, while ensuring that the roading network is able to provide for the safe and effective movement of people and goods.

Table 20.16. FORMED ROADS AND STREETS AT 31 MARCH 1989

Nature of surfaceLocal authority roadingState highways and motorwaysTotal
Urban areasRural areas
 kilometres
Paved or sealed13 752.727 555.911 061.452 370.0
Metal or gravel498.439 644.1461.940 604.4
               Total, maintained roads14 251.167 200.011 523.392 974.4
Source: Transit New Zealand.

Roading taxation is described in section 25.2, Taxation.

Table 20.17. EXPENDITURE ON STATE HIGHWAYS*

Class of expenditure1986198719881989

* Years ended 31 March.

Excludes motorway structures.

‡ Maintenance figures include the cost of flood damage repairs when applicable.

Source: Transit New Zealand.

 $(000)
Construction and improvement42,75453,61451,90959,785
Bridges and other structures12,13011,934..11,151
Maintenance, repairs, etc.142,912157,133147,480197,856
               Total197 796222 681199 389268 792

Table 20.18. PUBLIC ROADING EXPENDITURE*

Item1986198719881989

* Years ended 31 March.

Source: Transit New Zealand.

 $(000)
State highways expenditure197,796222,681199,389268,792
Special purpose roads1,2261,3281,9173,056
Local authority reading expenditure—
     From local authority funds221,036216,716215,105272,734
     From National Roads Fund169,373187,263206,165242,190
     From Consolidated Account (developmental roading)2,588
               Total592 019627988622 576786 772

Registration and licensing of vehicles

All vehicles using public roads in New Zealand are required to be registered. An annual relicensing charge is payable, which includes a licence fee, accident compensation levy, goods and services tax, and, in some cases a certificate of fitness or transport licence fee. During 1986 the administration of motor vehicle registration changed from a system where the country's more than 2.2 million vehicles were registered for the year to 30 June to one where they are relicensed progressively throughout the year.

The annual relicensing charges are, from 8 January 1990: ordinary motorcars, $191.94, motorcars subject to transport licence fee, $191.94; motorcycles, $66.01 (60cc or less) or $160.56; rental cars $269.24; trucks, vans and utilities from $181.94 to $355.44; and tractors, $87.39. All figures include goods and services tax.

The various types of motor vehicles registered and licensed over recent years are itemised in the tables following.

Table 20.19. LICENSED MOTOR VEHICLES

Type of vehicleAt 31 March
198519861988*1989

* Figures for 1987 are unavailable due to the introduction of the new spread relicensing system.

Source: New Zealand Post.

Cars1 481 8221 511 4001 373 3381 430 805
Rental cars10,11711,7628,9887,899
Private taxicabs374368462502
Goods service vehicles299,811305,984289,161289,225
Omnibuses3,1693,3926,9427,154
Public taxicabs2,5822,6602,3612,260
Service coaches1,4831,6461,2351,219
Motor cycles137,442133,95497,31389,459
Power cycles (mopeds)1,4418951,0201,211
               Total, motor vehicles1 938 2411 972 0611 780 8201 829 734
Trailers, including trailer-type caravans384,810385,916347,954341,280
Dealers' cars5,1165,2354,6875,010
Dealers' motor cycles222260284282
Vehicles exempted from annual licence fees72,34462,8279,9737,904
Miscellaneous11,27011,03035,28733,049
               Total, all vehicles2 412 0032 437 3292 179 0052 217 259

Table 20.2. REGISTRATIONS OF NEW VEHICLES

December yearNew cars and station wagons—cc ratingCars previously registered overseas*New motorcycles
850 and under851 to 13001301 to 16001601 to 20002001 to 50005001 and overTotal

* Included in total.

Source: New Zealand Post.

198559623,28018,78932,3269,10833584,4342,91813,425
198684717,90718,23230,21812,39841980,0213,94613,372
198774618,56620,51029,16019,71792989,62812,12912,609
198869017,79627,31028,30614,08440388,58917,3728,968
198988021,49644,06650,00018,137309134,82850,9665,796

Table 20.21. REGISTRATIONS OF NEW COMMERCIAL VEHICLES

December yearNew commercial vehicles by gross weight in kilogramsTotal commercial vehicles
2500 or less2501 to 45004501 to 90009001 to 14 50014 501 and overOmnibus and service coaches
198515,0004,2201,4621,1771,16925623,284
198611,8183,3361,2271,05894020418,583
19879,8193,0051,19788493128316,119
198810,8872,92087170283244016,652
198916,1733,96891859286176323,275
Source: New Zealand Post.

Not included in the above tables are new tractors, of which there were 1793 in 1985, 887 in 1986, 741 in 1987, 711 in 1988, and 97 in 1989.

Motor vehicles exempted from the annual licence fee include a variety 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, cranes, and logging trucks (used on private roads), etc.

Table 20.22. LICENSED VEHICLES BY POPULATION

As at 31 MarchNumber of persons in population per carNumber of persons in population per motor vehicle*As at 31 MarchNumber of persons in population per carNumber of persons in population per motor vehicle*
* Excluding trailers and caravans.
19842.31.61987....
19852.21.619882.41.6
19862.21.619892.31.8

Motor Vehicle Securities Register

A motor vehicle securities register was set up by the Department of Justice under the Motor Vehicle Securities Act which came into force on 2 April 1990.

The register has been established to help buyers avoid the situation of their vehicles being repossessed because money is still owed on them. It is located in Manukau and opened for registration of security interests in October 1989. When the ‘Autocheck’ service opened to the public in April 1990, nearly 250 000 vehicles had been registered as having been used as a security for the loan of money. The service means that a consumer buying a vehicle can phone the register toll free to check if any security interest is registered against the vehicle. The number is 0800 658 934.

The register includes vehicles such as private and commercial motor vehicles, motorcycles, trucks, trailers, caravans and farm vehicles. It does not cover trains or aircraft.

If there is no security interest recorded at the time a caller rings Autocheck, and the caller buys the vehicle by 9.00 a.m. the following day, then the vehicle cannot legally be repossessed.

The caller may ask for a certificate as proof that they checked the register that day and no security was registered, or if they want details of the security interest. Certificates give details about the vehicle registration number, make, model, year of registration, and chassis number and can be obtained from the central register or a courthouse at a cost of $5.

The Autocheck service is not connected with the change of ownership or registration of vehicles. This is handled by New Zealand Post.

Transport to work

Table 20.23 shows the main means of transport to work used by those employed in the fulltime labour force at the 1986 census, whose census night and usual residential address were the same.

A large section (44.7 percent) drove a privately-owned car, truck or van to work, while a further 11.8 percent used a vehicle owned by the employing company. The public transport system serviced only 9.3 percent of those travelling to full-time work, with buses contributing 7.6 percent and trains only 1.7 percent.

Among the less common employment related means of transport are walking and ‘other’ (10.0 percent), travelling as passengers in cars, trucks or company buses (7.7 percent), by bicycle (5.2 percent) and as riders of motorcycles or powercycles (3.9 percent). The remaining 7.5 percent worked at home.

Significant patterns of travel to work at the 1986 census relate to male-female differentials in means of transport. Males showed a much greater tendency than females to drive company vehicles, or ride motorcycles or powercycles to work. Females, by contrast, tended to make greater use of the public transport system (public buses and trains), drive private vehicles, travel as passengers in cars, trucks and company vehicles, and walk more than their male counterparts. This male-female structure of transport use reflects a combination of demographic and economic variables including living arrangements, household composition and income, number of household income earners, access to household vehicles, distance travelled to work, occupation, industry and employment status.

Table 20.23. TRANSPORT TO WORK 1986 CENSUS

Means of transportEmployed in full-time labour force*
MalesFemalesMales as percentage of total
NumberPercentageNumberPercentage

* Population resident in New Zealand aged 15 years and over working 30 or more hours. Excludes those unemployed and seeking full time work.

† Includes jogging or running.

Public bus43,7885.252,89012.245.3
Train12,8791.58,2951.960.8
Drive private vehicle356,86242.7210,98448.662.8
Drive company vehicle136,99216.412,9573.091.4
Passenger in car, truck or company bus52,7976.344,81710.354.1
Bicycle47,9495.717,8564.172.9
Motorcycle, powercycle42,2345.16,8881.686.0
Walk71,1788.546,10110.660.7
Other7,9861.02,0460.579.6
Work at home63,3787.631,4107.266.9
Not specified5,2922,62566.8
               Total841 338100.0436 869100.065.8

Road safety

Road traffic is controlled by the Ministry of Transport.

Ministry of Transport traffic officers enforce traffic laws and driving standards and investigate serious and fatal accidents. They also enforce the laws relating to heavy traffic, the allowable weights of vehicles and loads and the licensing of road transport services (such as taxis, buses and tow-trucks).

Traffic officers are not police officers and do not make criminal investigations. They form, however, a uniformed and disciplined enforcement body, and a close liaison is maintained with the police.

Driver licensing. A driver's licence is valid without renewal until the end of the month in which the holder turns 71. Those special classes of licence which require annual medical tests, such as passenger service vehicles, require validation but otherwise no testing or renewal need be undertaken until the age of 70. A separate regime of medical and practical tests for renewal begins at this age.

‘Lifetime’ licences were issued to all licence holders progressively through 1988–89. At the time of licencing prospective drivers are asked whether they wish to donate vital organs in the event of death and if so, this is indicated on the new licences.

A graduated system for obtaining a driver's licence involves a number of restrictions on learner drivers to ensure they are protected from high-risk situations until they have obtained experience on the road in ‘normal’ conditions. Incentives for attending driver training courses are also built into the system, which applies to all first applicants for licences under the age of 25. The new system follows three stages:

Learner stage—This normally lasts for six months. On or after their 15th birthday, applicants may undergo a theory test and a vision test to obtain a learner licence which allows the holder to drive under the following conditions:

  • The licence is to be carried;

  • They must be accompanied by a full-licence holder, who is in charge; and

  • They must effectively have a zero blood-alcohol limit (below 30mg/100ml of blood or 150mcg/litre of breath).

Restricted stage— This normally lasts 18 months. After completion of the learner stage the applicant undergoes a practical driving test to obtain a restricted licence which allows the holder to drive under the following conditions:

  • The restricted licence is to be carried;

  • There is no driving between 10 p.m. and 5 a.m. without adult supervision;

  • No passengers are to be carried without adult supervision; and

  • There is a zero blood-alcohol limit (effectively below 30mg/100ml of blood or 150mcg/litre of breath).

Full licence—Issued at the completion of the restricted stage without further test. Breaches of the conditions in either stage will result in their extension by up to six months.

Inspection of motor vehicles. All vehicles using the roads must be inspected regularly to ensure their mechanical and structural fitness. They are inspected every six months but vehicles first registered since 1 December 1985 and less than three years old may be inspected every 12 months. Most lightweight vehicles are required to have a ‘Warrant of Fitness’ which can be issued at approved garages, or at testing stations operated by local authorities. All heavy vehicles, with minor exceptions, undergo a more exacting examination for a Certificate of Fitness, which, in respect of passenger service buses, has special regard for the safety and comfort of passengers. Taxicabs and rental vehicles also require a Certificate of Fitness.

The design and standard of construction of vehicles manufactured, assembled, or modified in New Zealand are also regulated to ensure safety.

Seat-belts. Wearing of seat-belts is compulsory for drivers and front-seat passengers in most classes of light vehicle registered after January 1955. All new cars registered since 1 November 1979 must have seat-belts fitted in the rear passenger seats and it is compulsory for rear-seat passengers to wear seat-belts where fitted.

For children under eight years the law also requires:

  • If an approved child restraint is available it must be used.

  • If there is no approved child restraint but a seat-belt is available it must be used (where appropriate).

  • If neither are available, the unrestrained child must travel in the rear seat. (Unrestrained children are allowed in the front seat only if the vehicle has no rear seat or if the rear seat is already fully occupied by children.)

For everyone eight years and older the law is:

  • If a seat-belt is available it must be used.

  • The driver is responsible for ensuring that children use available child restraints or seat-belts.

  • If there is no seat-belt available an unrestrained child must travel in the rear seat.

All motor cyclists and pillion riders must wear safety helmets at all speeds.

Alcohol impairment. Traffic officers have a wide range of tests available to them when they suspect a driver is affected by alcohol or drugs or a combination of the two. Any driver a traffic officer suspects is under the influence of alcohol or who commits a driving offense or who is involved in a crash may be required to give a breath screening test. If this proves to be positive the person may be required to give an evidential breath test. If this is positive, the person then has the option of either accepting the breath test reading or providing a blood sample for analysis. The exception to this rule is made if the person has been tested using more sophisticated equipment and achieves a result one-and-a-half times the legal limit.

A driver commits an offence and is liable for prosecution if either:

  • His/her breath-alcohol concentration as recorded on an evidential breath-testing device exceeds 400 micrograms of alcohol per litre of breath in the case of a licensed driver, or 150 micrograms of alcohol per litre of breath in the case of a person not holding the appropriate licence; or

  • His/her blood-alcohol concentration exceeds 80 milligrams of alcohol per 100 millilitres of blood in the case of a licensed driver, or 30 milligrams of alcohol per 100 millilitres of blood in the case of a person not holding the appropriate licence.

Drivers subject to the new graduated driver licensing system are subject to extensions of the learner or restricted stage if they are detected while driving with a breath-alcohol level exceeding 150 micrograms/litre or a blood-alcohol concentration exceeding 30 milligrams/100 millilitres.

Speed limits. The maximum speed limits for highways and motorways are: 100 km/h for cars, motorcycles, vans and light vehicles; 90 km/h for buses, heavy motor and articulated vehicles; and 80 km/h for school buses and any vehicles towing trailers.

A general speed limit of 50 km/h is fixed in all closely populated areas. Areas with a speed limit of 70 km/h may also be specified by the Minister of Transport; and limited speed zones may be established for which the maximum permitted speed may be either 100 km/h or 50 km/h depending on conditions and circumstances.

Insurance. See section 8.5, Accidents and section 21.3, Insurance and superannuation.

Road safety education. Details on road safety campaigns are given in section 8.5, Accidents.

Traffic offences

Penalties are awarded by courts for driving and other offences under the Transport Act 1962 and attendant regulations. There is also a system in operation whereby points are automatically registered according to a fixed scale against people convicted of driving offences.

The Secretary for Transport has authority to suspend drivers' licences for six months where 100 or more demerit points are received in less than a year, or for three months where this number of points is received within two years. The demerit scale for speeding offences has been increased from 15 to 35 points. Official notice of more than 60 points is given in writing.

Breaches of certain laws are dealt with under an infringement system whereby a motorist may pay an infringement fee within a certain time to avoid court proceedings.

The following table covers only offences reported by officers of the Ministry of Transport; in addition traffic prosecutions are taken by the police, particularly for serious offences, following accidents or other police investigations.

Table 20.24. TRAFFIC OFFENCES REPORTED*

Type of offence198619871988

* Years ended 31 December.

† Include infringements and notice to prosecute offences.

‡ Excludes breaches of rail restrictions, waybill and route permit offences, miscellaneous offences and those offences not elsewhere indicated For this reason, totals will differ from past years.

Source: Ministry of Transport.

Accident-promoting offences
     Driving or attempting to drive under the influence of drink or drugs300315235
     Breath/blood alcohol offences9,7268,9456,448
     Evidential/excess alcohol9,89910,5848,761
     Failure to fulfil duties after an accident1,6191,5151,391
     Reckless driving213189172
     Driving in a dangerous manner1,5041,4911,098
     Driving at a dangerous speed724711550
     Driving without reasonable consideration353311226
     Careless use of a motor vehicle17,44417,97814,097
     Overtaking offences1,0621,067632
     Failure to keep to the left4,1983,9743,299
     Failure to yield right of way2,8032,2271,972
     Failure to stop in half clear road3,6223,2262,770
     Exceeding 50 km/h101,22193,75080,505
     Exceeding 70 km/h4,1193,6644,327
     Exceeding 80 km/h166189178
     Exceeding 100 km/h19,31926,91235,043
     Exceeding temporary speed limits1,108937496
     Exceeding by-law speed limits5414123
     Failure to stop at traffic lights7,6456,7454,576
     Failure to stop at compulsory stop sign9,1008,3425,538
     Failure to give way at give way sign1,6771,3041,260
     Failure to yield right of way at pedestrian crossing595560474
     Failure to stop or give way for siren327298171
     Failure to comply with road signs3,2302,8293,107
     Failure to wear safety helmet3,8843,7172,160
     Provisional motor cyclist exceeding 50 km/h1004711
     Exceeding 70 km/h with trailer20143
     Exceeding 70 km/h with heavy motor vehicle413
     Exceeding 80 km/h with trailer9731,3762,047
     Exceeding 90 km/h with trailer113736
     Exceeding 90 km/h with heavy motor vehicle while towing232955
     Exceeding 90 km/h with heavy motor vehicle9086113
     Exceeding other limits7311347
     Defective brakes22719590
     Lighting offences5,4373,5783,384
     Failure to dip lights1087257
     Mechanically defective or unsafe vehicle6,4215,1613,516
     Trailer offences496436298
          Subtotal219,895212,837189,569
Non accident-promoting offences
     Failure to obey officer3,0503,7475,007
     Owner failing to supply information179146137
     Failure to pay overloading infringement fee863584132
     Failure to pay fees211
     Warrant of fitness offences46,54447,18935,709
     Certificate of fitness offences1,6261,5701,621
     Certificate of loading offences470341305
     Exceeding certificate of loading187204129
     Cng and lpg offences336740
     No distance licence carried2,2161,8361,399
     Hubodometer offences4,0603,8963,189
     Driving without a time licence16210172
     Exceeding maximum gross weight or distance or time4,1063,4782,477
     Road user licence altered, defaced or not displayed4461,7851,132
     Driver's licence offences15,21419,14724,243
     Driving whilst disqualified3,5403,9574,141
     Probationary drivers' offences901742146
     Vehicle licences and registration offences15,80222,84724,766
     Safety-belt offences21,82122,18412,225
     Noisy motor vehicles773561302
     Emitting excessive smoke14011564
     Loading offences3,0952,3531,651
     Other nuisances253279185
     Cycling offences2,0411,9832,080
     Pedestrian offences11381122
     Passenger offences233207156
     Bylaw offences (other than speed limit)31811873
     Unlicensed goods service3666780
     Breach of goods service licence3947
     Exceeding rail restriction limit11
     Rental vehicle offences795029
     Taxi offences2185692
     No vehicle authority or not carried217157113
     Other transport service licence offences363280219
          Subtotal129,500140,133122,052
Other notices issued—
          Parking infringements and offences97,71282,09527,432
               Total, all offences and infringements447 017;435 065339 053

20.5 Post and telecommunications

The first post office was set up at Kororareka (now Russell) in 1840. The same year overland mail routes were begun, and offices were established in the North and at Port Nicholson (Wellington). In 1858 a Post Office Act was passed which made the Post Office an independent department of state with 73 post offices.

A telegraph system began in the 1860s. and from 1865 a separate Telegraph Department was responsible for it. The North and South Islands were linked by telegraph cable in 1866 and by telephone cable in 1926.

In 1881 the telegraph and postal services were amalgamated. Later, under the Post Office Act 1959, the name of the department became the Post Office, and the minister's title became Postmaster-General.

By 1987 the Post Office had grown to be the country's largest employer with over 40 000 staff in three trading areas: postal, telecommunications, and the related Post Office Savings Bank.

From 1 April 1987 the Post Office was split into three separate state-owned corporations. Non-commercial policy and regulatory functions relating to communications, including international obligations, are now the responsibility of the Ministry of Commerce. This includes the Radio Frequency Service, which allocates and manages the radio frequency spectrum, and the administration of the Telecommunications Act 1987 and the Postal Services Act 1987.

On 1 April 1989, the telecommunications market was deregulated. The only restriction concerns the provision of international services. Otherwise, any company may provide telecommunication services subject to the requirements of New Zealand commercial law.

At present the Telecom Corporation of New Zealand remains the main provider of telecommunications (including telephone services). However, in the now deregulated environment, other organisations are free to set up business in these and other telecommunication services. The sale of the state-owned enterprise was proceeding at the time of going to press.

New Zealand Post

New Zealand Post Limited commenced operations as a state-owned enterprise and limited liability company on 1 April 1987. Its principal business is the provision of postal services within New Zealand and to and from other countries.

In September 1989, the Government and New Zealand Post concluded a ‘deed of understanding’ which clearly defined the service obligations of New Zealand Post in return for statutory protection on the basic letter post. The deed represents a commitment by New Zealand Post to continue to provide a universal service at uniform nation-wide prices. The deed also includes requirements on the frequency of delivery, price controls, and the extent of the nation-wide network of postal outlets. The Government also announced its intention to reduce the threshold limits of the statutory protection on the basic letter post, and legislation to this effect is presently before Parliament.

New Zealand Post is a member of the Universal Postal Union, the agency responsible for regulating international postage. The company is also a member of the Asian and Pacific Postal Union—a grouping of postal administrations in the Asian and Pacific region.

New Zealand Post took over a network of approximately 1200 offices formerly the postal and agency business of the New Zealand Post Office. The composition of the network of post offices has since changed so that now more than 60 percent are operated on agency basis or on commission. The network of ‘post shops’ by New Zealand Post remains one of the largest single-owner retail networks in New Zealand. From 5 February 1988 the New Zealand Post network has consisted of:

  • Official post shops (formerly post offices);

  • Mail delivery services door to door, by rural contractors, and through community mailboxes;

  • Post agencies which provide full postal services in some local stores;

  • Postal delivery centres providing sales of stamps, delivery of mail across the counter, and holding mail for pick-up by New Zealand Post;

  • Stamp retailers such as small shops.

Table 20.25. TOTAL NEW ZEALAND POST OUTLETS

As at 1 November 1989Number
Post shops336
Post agencies134
Post delivery centres424
Stamp retailers537
               Total1,431
Source: New Zealand Post.

The company's products and services include letter and parcel post conveyance and delivery, philatelic products and agency services. Associated with its limited protection for the carriage of letters, is the requirement that the company operate a price-equalised postal service throughout New Zealand. The continuation of this requirement and monopoly is subject to government review.

New Zealand Post handles over 800 million pieces of mail annually. The company employs over 8700 staff, in its 336 post shops and its mail processing, transportation and delivery network.

Inland postal services. Any postal item, from a letter to a parcel up to 20 kilograms, can be sent by ‘fast post’ or by post. Fast post offers assured overnight delivery between over 500 centres otherwise delivery is overnight across town, or two to three days elsewhere.

‘Easipost’ is an easy mailing, priority service in the form of a prepaid mailing envelope, holding up to about one kilogram of documents.

Within its two-stream postal system, New Zealand Post gives discounts for bulk mailing, and handles unaddressed mail (circulars) and direct mail.

Table 20.26. POSTAL DELIVERIES AND VOLUME OF ARTICLES POSTED

 Year ended 31 March
19881989
Deliveries to—number
     Households..1 158 000
     Businesses—
          by delivery..47,700
          by business box and bag..94,400
Volumeitems (million)
     Enveloped640736
     All other articles—
          (incl. parcels, circulars/registered and insured articles)182121
               Total volume822857
     Average daily volume2.32.3
Source: New Zealand Post.

Overseas mail services. Surface, surface air lifted, and airmail services are operated from New Zealand. Courier Post International provides an assured delivery time, backed up by a money-back guarantee.

Other special services include international reply coupons, printpost direct bags, insurance and registration, literature for the blind, and advice of delivery.

Table 20.27. OVERSEAS MAILS

 Year ended 31 March
19881989
 (000)kg
Airmail received:
     Letters and other articles1,5051,639
     Parcels784870
               Total2 2892 509
Airmail dispatched:
     Letters and other articles825780
     Parcels349356
               Total1 1741 136
Source: New Zealand Post.

Stamp issues. New Zealand Post produced 19 stamp issues during the 1989 calendar year. A variety of philatelic products are sold by mail order through a central Philatelic Bureau at Wanganui, at philatelic sales centres, and through post shops.

Table 20.28. NEW STAMPS RELEASED DURING 1989

DateIssueDenominations
18 JanuaryWild flowers40c, 60c, 70c, 80c
1 MarchAuthors40c, 60c, 70c. 80c
19 AprilLittle spotted kiwi$10.00
17 MayHeritage—the people40c. 60c, 70c, 80c, $1.05, $1.30
7 JuneScenic (native trees)80c, 85c, $1.05, $1.30
26 JulyHealth (Royal Family)40c X 2, 80c
13 SeptemberChristmas35c, 65c, 80c, $1.00
11 OctoberHeritage—the sea40c, 60c, 65c, 80c, $1.00, $1.50
8 NovemberCommonwealth Games40c X 3, 50c, 65c, 80c. $1.00, $1.80
Source: New Zealand Post.

Post shops. About 125 post shops have opened self-service displays in their customer service areas, selling a range of post related items, stationery, packaging products, and greetings cards, including New Zealand Post's own ‘handi’ range of packaging products.

Ancillary services. Through its nationwide network of post shops, New Zealand Post undertakes a variety of work on behalf of government and business organisations. This work includes the collection of the public broadcasting fees, banking transactions for PostBank, receipt of telephone account payments, registration of births, deaths and marriages, maintenance of the electoral rolls, motor registration, collection of road-user charges, sale of Kiwi Bonds and mail order photographic film processing.

Recent performance. The postal and agency operation of the former New Zealand Post Office incurred significant losses over three years culminating in a $48 million loss for 1986–87. New Zealand Post, however, made modest profits in its first two years of operation. This change has been affected through controlling costs, increasing revenue, improving service performance, marketing and the redirection of capital. Cost savings were achieved by a reduction in staff numbers by more than 10 percent, transport rationalisation and the rationalisation of the retail network.

Telecom Corporation of New Zealand Limited

In 1987 the telecommunications business of the New Zealand Post Office and the assets used in that business were transferred to the Telecom Corporation of New Zealand Ltd. A programme of deregulation which began in 1987 has seen the state-owned enterprise open to competition in all telecommunications services. The process of deregulation is complete, and the sale of the stateowned enterprise was being completed at the time of going to press.

The proceeds of the sale of Telecom are expected to achieve a substantial reduction in public debt. At 31 March 1989 the Crown's equity in Telecom was $2.4 billion. The Government has decided that the proceeds from the sale will go towards reducing the public debt and that part of the proceeds will be set aside for capital, investment in health and education.

In addition, the Government has negotiated with Telecom an agreement in principle to:

  • Hold the increase in residential telephone rentals to below the increase in Consumers Price Index;

  • Continue with a national pricing policy, thus extending pricing protection to rural subscribers;

  • Continue to make telephone services available to all those within its current network; and

  • Continue to make a free calling option available to all residential subscribers.

For its part the Government will hold a controlling ‘Kiwi share’ to keep Telecom to these pledges. In addition it will be specified in Telecom's articles of association that:

  • A ceiling of 49.49 percent will be placed on the share holding of any foreign ‘strategic’ buyers;

  • Any transfer of shares by the strategic stakeholders to a non-New Zealand company will require the approval of the holder of the Kiwi share; and

  • The strategic shareholder will be required to execute a legally binding declaration that it will observe New Zealand's telecommunication regulations, with any changes to this requirement requiring the approval of the holder of the Kiwi share.

Since deregulation began the wiring of houses and the provision of telex machines have been open to competition from other firms. This was followed by the deregulation of the supply and wiring of telephones for commercial premises. Deregulation was completed by 1 April 1989. This has created more competition for the Telecom Corporation in all network, product and service areas of telecommunications.

Through its subsidiaries the corporation operates an extensive telecommunications network, with over 99 percent of subscribers using automatic services and 99 percent having access to subscriber toll dialling. Over 80 percent of revenue is derived from basic telecommunications network services, with about 90 percent of this coming from telephone line rentals and from inland and international toll calls.

Other network products include leased circuits, telex services, cellular telephone services, mobile radio, telepaging, packet switched data services and a digital data network. Collectively these activities account for under 10 percent of revenue, but data services are an area of rapid growth.

Telephone services. New Zealand continues to have one of the highest telephone densities in the world, with 432 main lines per 1000 of population. The first telephone exchange was installed in 1881, and the telephone network has grown until it now has over 800 exchanges serving 1.5 million subscribers.

Since 1988 Telecom has been progressively introducing volume-based charging, to replace distance-based charging. The number of charging steps for Telecom national calls has been reduced from ten to eight, and special rates have been introduced on a number of major routes. This is part of an overall plan to move away from cross-subsidisation, towards cost based pricing.

Telecom is also aiming to introduce one standard national business rental and one standard national residential rental. Local call charging for business customers is also being phased in, in conjunction with rental reductions for these customers.

Telephone communication by cable satellite, and radio is available to almost all countries of the world. An international gateway telephone exchange in Auckland handles all outgoing and incoming international telephone calls. International subscriber dialling is available to 99 percent of subscribers who may dial 150 countries and territories. Optical fibre cables and digital radio systems are now standard technology for long distance links and all new telephone exchanges employ the latest digital stored-programme-control technologies.

An integrated services digital network is planned for the 1990s. The network will enable simultaneous transmission of voice and data services over the same circuit. The installation and commissioning of a new trans-Tasman optical fibre cable system (TASMAN 2) by 1991 is also planned.

Radio-based services. Telecom Mobile Radio Ltd provides a despatch radio service throughout New Zealand for fleet management—particularly taxis, fire brigades, ambulances and transport vehicles. Telecom Paging Ltd operates nationwide and local telepaging services.

In 1987, a cellular telephone service was introduced in Auckland and has since been extended to give 90 percent of the population access to it. The service is provided by Telecom Cellular Ltd. This service provides for the use of both portable and vehicle mounted cellular telephones.

Table 20.29. TELEPHONE SERVICES

ItemAs at 31 March
19851986198719881989
Telephones (000)
     Subscribers1,2541,2901,3231,3771,451
     Applicants awaiting service14161911
               Total demand1 2681 3061 3421 3781 452
     Main line telephones (per 1000 population)383394400411432
Exchanges (number)
     Automatic796798814816816
     Manual31281457
     Percentage of subscribers served by automatic exchanges98.098.299.299.799.9
Toll service
     Inland toll calls (million)135.9151.7170.9197.8..
     Percentage increase in toll traffic12.911.712.615.7..
     Percentages of subscribers with STD facilities80.789.796.298.699.4
     Outward international toll calls (000)5,3267,12210,215....
Source: Telecom Corporation of New Zealand.

Telegrams. In August 1988 the inland and international telegram service was transferred by Telecom to a private organisation. The Telegram Company, a division of Netway Communications Ltd. Access to the service is via a nation-wide freephone number 012 and the hours of operation are 7.00 a.m. to midnight, Monday to Friday and 8.00 a.m. to 8.00 p.m., Saturdays and Sundays and Public Holidays.

Telex service. The telex service is a subscriber-to-subscriber printer communication service, operated through a worldwide network of automatic telex exchanges. An international telex service began in 1960, and an automatic inland and international service was introduced in 1964. Demand for telex service is decreasing and, as at 31 March 1989, there were over 3450 subscribers in New Zealand. The service is also available to ships at sea.

Data communication services. These services include datel, datex, leased data circuits, and videotex.

Datel provides for data communication over the switched telephone network at speeds of up to 2400 bits per second (measure of information flow). Subscribers' privately-owned terminals are connected to telephone lines through Telecom modems which convert the data signals to a form suitable for transmission over telephone circuits. Datel calls are charged at the same rates as normal telephone calls.

Datex is a 300-bit-per-second switched text and data communication service whereby subscribers can use their word processors or computers to communicate with other datex subscribers, or to telex subscribers at the slower speed of 50 bits per second. Datex calls are charged at the same rate as telex calls.

A leased data-circuit service provides the direct connection of subscribers' data terminal equipment by means of leased data-circuits operating at speeds of 300 to 2 billion bits per second.

Videotex is a two-way, interactive, electronic information service which links subscribers' video screens to data bases through the telephone network. Subscribers may buy information and establish their own data bases for use by other subscribers. Development of the public data base also continues and includes a wide range of business, agriculture and other information.

A computer-based electronic messaging service called STARNET (store and retrieve network) allows businesses to communicate their products and services via personal computer linked to the STARNET system.

In addition to circuits leased for electronic data, circuits are leased for private voice, teleprinter and facsimile networks, music, and fire alarm systems.

Radio services to shipping. Radio stations for communication with ships at sea are located at Auckland, Wellington, Awarua and the Chatham Islands. They provide a safety of life at as service for the exchange of radio telegrams with ships at sea, and special rates operate for vessels registered in New Zealand and Australia. A free radio-medical service also operates for ships at sea on the New Zealand coast.

International links. Telecom has a share in the ownership of the INTELSAT and INMARSAT organisations. Telecom also has an agreement with AUSSAT Pty Ltd of Australia for the lease of circuit capacity on its AUSSAT 3 satellite.

An earth station was opened in 1971 at Warkworth, near Auckland, for communicating with other countries via space satellites.

With the introduction of satellite communications, services provided by HF (high frequency) radio have progressively been converted to satellite operation. However, HF radio links are still maintained with Niue, Ross Dependency (Scott Base), Chatham Islands, Raoul and Campbell Islands and Pitcairn Island.

As well as providing additional internal and international telecommunication facilities, the earth-stations are used for both ‘live’ and recorded television relays. Two smaller earth- stations operate at Wellington (Mt Crawford) and Christchurch (Rangiora).

Contributors

  • 20.1 Ministry of Transport; Department of Statistics.

  • 20.2 Ministry of Transport; Airways Corporation of New Zealand.

  • 20.3 New Zealand Railways Corporation.

  • 20.4 Transit New Zealand; Ministry of Transport.

  • 20.5 Ministry of Commerce; New Zealand Post Ltd; Telecom Corporation of New Zealand Ltd.

Historical

Department of Statistics; Ministry of Transport; New Zealand Railways Corporation; New Zealand Post; Telecom Corporation of New Zealand Ltd.

Further information

Transport—general

Census of Transport, Storage and Communication 1984–85. Department of Statistics.

Key Statistics. Department of Statistics (monthly).

Report of the Communications and Road Safety Committee (Parl. paper I. 2).

Report of the Ministry of Transport (Parl. paper F. 5).

Report of the Urban Transport Council (Parl. paper F.9) until 1989.

Shipping

Report of the Waterfront Industry Commission (Parl. paper G. 2) until 1989.

Shipping and Cargo Movements. Department of Statistics (annual).

Stevedoring Statistics. Waterfront Industry Commission (annual until 1989).

Turn-round of Overseas Shipping. Waterfront Industry Commission (four-monthly until 1989).

Civil aviation

New Zealand Civil Aircraft Accidents. Office of Aircraft Accident Investigation (annual).

New Zealand Civil Aircraft Register. Ministry of Transport (annual).

New Zealand Civil Aviation Statistics. Ministry of Transport (annual).

Annual Report of Air New Zealand Ltd.

Railways

Report of the Railways Corporation (Parl. paper F. 7).

Roads

Breath Tests in New Zealand. Ministry of Transport (annual).

Motor Accidents in New Zealand. Ministry of Transport (annual).

Report of the National Roads Board (Parl. paper F. 8) until 1989.

Report of the New Zealand Police (Parl. paper G. 6).

Reading Statistics. National Roads Board (annual until 1989).

Post and telecommunications

Annual Report of New Zealand Post Limited.

Annual Report of the Telecom Corporation of New Zealand Limited.

Report of the Residual Management Unit of the Department of Trade and Industry (Parl. paper G. 14).

Report of the Ministry of Commerce (Parl. paper G. 46).

Chapter 21. Commerce and services

For most of the last 60 years the New Zealand economy has been highly regulated. In addition to the registration and disclosure requirements companies are subject to in most countries, New Zealand governments have maintained a series of policies designed to, among other things, protect New Zealand manufacturers, encourage exports, and control overseas reserves.

Among the initiatives used to achieve these results have been varying degrees of import licensing, subsidies and tax incentives for export industries, and an array of controls on the financial services industry.

Over recent years a new emphasis in the New Zealand economy has been brought about by change in several of the country's major export markets towards more competition. New Zealand's export industries are having to compete more in international markets, rather than relying on traditional alliances and arrangements.

Government's response has been to encourage structural change within the economy through deregulation, and the process of change has been rapid since 1984. The Government has been involved in a programme of industry assistance reform, a continued move away from import licensing toward tariffs, the removal of restrictions on the operation of financial markets, and the reorganisation of state trading enterprises on a more competitive basis. Among specific sectors deregulated to introduce competition are the telecommunications, transport and petroleum industries.

The resulting withdrawal of subsidies and import controls has exposed large areas of the domestic economy to new levels of competition. The result has been reorganisation and, in some cases—notably in manufacturing—attrition.

As each industry attempts to improve its performance, the need for more comprehensive controls to protect both investors and consumers has emerged, and several pieces of legislation have resulted.

The sharemarket crash of 1987 highlighted the need for controls on company practices and, in addition to being required to register and to meet disclosure requirements to their shareholders, provision has been made to ensure that no company competing for goods and services gains a monopoly or unfair advantage over their competitors.

These controls are embodied in legislation administered by the Commerce Commission, which is responsible for monitoring company practices and safeguarding the rights of consumers. A Securities Commission was also formed to ensure that fair practices are followed with regard to investments in financial markets by the public. Measures to make the stock market similarly accountable are also proposed.

As the economy has become more market-oriented, traditional controls in the retail sector have also been reviewed. The laws controlling both shop trading hours and the sale of liquor have been reviewed and relaxed in some areas to encourage competition and provide the structures to compete with imported products and allow businesses to meet consumer demand.

Legislation to protect the interests of consumers in the increasingly competitive domestic market has been introduced in the form of the Fair Trading Act 1986, administered by the Commerce Commission. A Ministry of Consumer Affairs was also established in 1986.

This chapter describes some aspects of New Zealand's changing commercial environment; primarily, controls on trading and company practices, and legislative protection for consumers. It also gives a brief statistical summary of retail trade and consumer credit activity, the insurance industry and some basic statistics on companies and the sharemarket.

The last edition of the Yearbook contained summary tables from the Census of Distribution 1982–83 and the Census of Services 1980–81. At the time of going to press these still offered the most recent comprehensive data on these areas of the economy, and readers are referred to the 1988–89 edition. More recent data on these industries, from the 1987 Economy Wide Census, is being released progressively by the Department of Statistics throughout 1990.

21.1 Controls on trading

Consumer affairs

Fair Trading Act 1986. This Act, which came into effect on 1 March 1987, reformed the law relating to false trade descriptions and deceptive trade conduct. It also provided new consumer information and product safety measures. It complements the Commerce Act 1986, which promotes effective competition in markets, and the Sale of Goods Act 1908.

The Fair Trading Act 1986 replaced several acts relating to consumer information with a comprehensive set of measures as follows:

Misleading or deceptive conduct—There is a statutory prohibition on misleading or deceptive conduct in trade, although contravention of this provision gives rise to civil remedies only.

False trade descriptions—The prescriptive trade descriptions approach to false or misleading information, contained in the Merchandise Marks Act 1954 and the Consumer Information Act 1969, was extended by the Fair Trading Act 1986 to apply to representations relating to sales of land and promotion of employment opportunities. Contraventions of these provisions incur both criminal and civil liability.

Unfair practices—Certain selling practices, namely pyramid selling, third party trading stamp schemes, and misleading statements about certain business activities are prohibited by the Act. To these are added prohibitions on offers of gifts and prizes with no intention of fulfilling them, ‘bait advertising’ and referral selling. There is also a prohibition on demanding or accepting payment without intending, or being able, to supply as ordered. Contraventions of these provisions incur both criminal and civil liability. The use of physical force, harassment, or coercion in connection with the supply of goods, services, or land is also prohibited and incurs civil liability.

Consumer information—The Fair Trading Act 1986 consolidated and extended information requirement powers previously in the Consumer Information Act 1969 and the Merchandise Marks Act 1954 into a single power to require information, which is vested in the Minister of Consumer Affairs.

Services and product safety standards—The Act provides for the creation of safety standards. Where goods are found to be unsafe, the Minister of Consumer Affairs may prohibit their supply and order the recall of any goods already supplied.

Enforcement of the Act's general provisions is undertaken by the Commerce Commission. In addition, private actions may be taken in relation to contraventions of any provision. The functions of the commission are outlined in section 21.2, Commercial framework.

Ministry of Consumer Affairs. The purpose of the ministry is to promote a fair and informed marketplace. It works to achieve this by providing relevant and timely advice to the Government on consumer policy, and by maintaining consumer programmes which meet the needs of all groups in the community.

The ministry advises the Government on consumer law reform, in particular the operation of the Fair Trading Act 1986, consumer credit legislation, post-sale legislation (covering warranties and related measures) and weights and measures legislation; product safety standards, and regulation issues. Consultations are held with consumer/community groups, government agencies and traders in formulating policy. New Zealand's interests are promoted through similar contacts internationally.

Consumer awareness is promoted by a programme which provides consumer education resources to schools and teaching institutions; consumer education programmes in the community; and consultation with the community in developing education materials. Consumer representation on statutory and governmental boards is encouraged.

The ministry's complaints service, as well as handling general enquiries from consumers and traders about their legal rights, provides service to mediate between consumers and traders to resolve problems.

The Trade Measurement Unit (formerly the Weights and Measures Service) aims to ensure that goods and services are exchanged on the basis of fair and accurate weight or measure, in accordance with the relevant legislation or regulation, thus securing the rights of consumers.

The ministry was established in 1986. It operates as a division of the Ministry of Commerce but its head reports directly to the Minister of Consumer Affairs.

Consumers' Institute. The institute is a consumer protection and publishing organisation. Membership is through subscription to one or more of the institute magazines, and at the end of 1989 there were approximately 100 000 members.

The institute conducts comparative tests and surveys of consumer goods and services and researches financial, legislative, health and welfare issues. Its findings are published in its magazines: Consumer (monthly), Consumer Food and Health (bi-monthly), Consumer Home and Garden (quarterly) and Consumer Voice (monthly).

The institute is concerned with the interests of all consumers. It acts for them at, or on, public and special interest inquiries and committees. It liaises with government, business, trade and safety organisations, but remains independent and impartial.

The policy of the Consumers' Institute is determined by a board elected by the subscribing members. The organisation is affiliated with consumer organisations throughout the world. It became an incorporated society in 1989, although it was first formed as part of the Department of Industries and Commerce in 1959, and was a statutory body from 1967 until 1989.

Shop trading hours

Traditionally, retailers have been restricted in the hours they may be open according to the type of goods they sell. Under the Shop Trading Hours Act 1977, shops could open and sell goods between the hours of 7 a.m. and 9 p.m. each day except Sundays and statutory holidays. The Act restricted the sale of some goods outside these hours. ‘Approved’ goods could be sold at any time, whereas restricted goods could only be sold within normal shop trading hours specified in the Act. There was provision for exemptions to either individual traders or groups of traders, such as shopping centres or markets.

The Shop Trading Hours Commission, which was established in 1977, beard applications for exemptions to sell ‘restricted’ goods outside the normal hours. It also reviewed the list of ‘approved goods’, which is issued as a schedule to the Act.

If a retailer intended to open and sell goods outside the hours mentioned, then all restricted goods were to be out of sight of the public or kept in a part of the shop closed off.

In 1988, an advisory committee appointed by the Minister of Labour carried out a review of the Shop Trading Hours Act. The committee's terms of reference were to consider the appropriateness of the law for present day conditions and the special needs of the tourist industry.

The committee found that the restriction on the sale of goods to within certain hours meant that retailers were not well placed to respond to consumer demand. The Government announced its intention to repeal the Act by introducing the Shop Trading Hours Repeal Bill in 1989. At the time of going to press this bill was still before Parliament. In the meantime, following an unprecedented number of applications to the Shop Trading Hours Commission for exemption from the Act, the ‘approved’ goods list was extended in 1989 by Order-in-Council to include all items sold retail—except motor vehicles, motorcycles and boats, office furniture and equipment, and agricultural equipment.

Sale of liquor

On 1 April 1990, the Sale of Liquor Act 1989 came into force, replacing the Sale of Liquor Act 1962.

The object of the new Act is to establish a reasonable system of control over the sale and supply of liquor to the public—with the aim of contributing to the reduction of liquor abuse, so far as that can be achieved by legislative means.

The Sale of Liquor Act 1989 provides that the sale of liquor to the public, or any member of the public requires a licence.

There are four kinds of licences under the new Act:

  • On-licences;

  • Off-licences;

  • Club licences; and

  • Special licences.

These types of licences replaced the 28 or so different kinds of licences under the previous legislation.

An on-licence authorises the holder of the licence to sell and supply liquor on the premises or conveyance (such as a ship or aeroplane) for consumption on the premises only. Examples of this include licensed restaurants and nightclubs.

An off-licence authorises the holder of the licence to sell or deliver liquor on or from the premises to any person for consumption off the premises. Examples of this are wine resellers and others formerly known as wholesalers.

A club licence authorises the holder to sell and supply liquor on the premises for consumption on the premises by a club member or guest of a member. A ‘club’ in this instance means a chartered club; a club that participates in or promotes any sporting or other recreational activity, other than for gain or; any group of people combined for any purpose other than gain.

A special licence enables the holder of the licence to sell and supply liquor on the premises, for consumption on the premises to any person attending a particular occasion or event.

The Wine Makers Act 1981 and the Wine Makers Regulations 1982 remain unchanged. This legislation sets quality standards for export wine.

Drinking age. The legal drinking age has not changed, and the sale of liquor to persons 20 years of age or under remains prohibited except in certain circumstances. (This was the subject of a conscience vote in Parliament when the legislation was being passed and members voted to retain the status quo rather than reduce the legal drinking age to 18.)

Under the Sale of Liquor Act 1989, licensees may apply to the Liquor Licensing Authority or the district licensing agency in their area to designate any part of licensed premises as a restricted area. This means that people under the age of 20 years are not permitted on the premises.

An application can also be made to the Liquor Licensing Authority or district licensing agency to designate any part of licensed premises as a ‘supervised area’. Such designation will allow any person under the age of 20 years to be admitted to the defined area only if accompanied by their spouse or a member of their family who is over the age of 20.

Hours of sale. The 1962 Act provided for the commission to set licensing hours. Under the new legislation the hours liquor is permitted to be sold or consumed are not spelt out.

Each application is dealt with on its merits and application is made to the appropriate district licensing agency in the first instance and then referred to the Liquor Licensing Authority for determination,

Liquor licensing. The central licensing body is the Liquor Licensing Authority (replacing the former Licensing Control Commission).

The Liquor Licensing Authority consists of a District Court judge, as chairperson, together with three or four members, appointed by the Governor-General on the recommendation of the Minister of Justice. It considers and determines applications for on, off and club licences, and for managers' certificates—either in the first instance, or as referred to it by district licensing agencies. It also decides on appeals against decisions by district licensing agencies.

There are 74 district licensing agencies. They are essentially the local authorities for each district or city throughout New Zealand.

The district licensing agencies are able to grant special licences and renewals where there are no objections. The agencies also receive all applications and objections, gather reports, and forward complete files to the Liquor Licensing Authority for determination. They may also consider applications for temporary authority to carry on the sale and supply of liquor. There are rights of appeal from decisions of the authority to the High Court.

21.2 Commercial framework

Companies and partnerships

Individuals wishing to join together to form a business have the choice of two principal forms of operation. They can form an ordinary or special partnership under the Partnership Act 1908, or they may form a registered company under the Companies Act 1955. If, as usually happens, they wish to limit their individual liability for any losses that the business may suffer, then they will choose to register a limited liability company under the Companies Act 1955. This is by far the most usual form of business operation in New Zealand.

Registered companies. Any number of persons from two to 25 may form a private company, but in special circumstances the number may increase to 50. A public company must have a minimum of seven members. Under certain conditions a private company may be reregistered as a public company and vice versa.

A registered company becomes a corporation, which is a separate legal entity from the individual members of the company. Certain important consequences flow from this. The debts of a registered company are those of the company and not of its members, that is, the shareholders in most cases. A registered company contracts in its own name and is liable on its contracts. The members, therefore, are not usually liable on its contracts. A registered company has perpetual succession. This means the death, bankruptcy, retirement, etc., of its members does not affect its existence or its capacity to hold property. A registered company can enter into contracts with its members. Lastly, the members of a registered company are not its agents and therefore have no power to deal with its assets, or enter into binding contracts on its behalf.

Associated with the principle of separate legal entity is that of limited liability. Most companies are registered with the members having limited liability. A company is always fully liable for claims against it; it is the members' liability for a company's debts that is limited. In the case of a company limited by shares the liability is limited to the amount, if any, unpaid on that member's shares.

Table 21.1. COMPANY REGISTRATIONS

Year ended 51 MarchNew companies registeredCompanies dissolved or struck offCompanies on register
19859,9444,733128,638
198610,2442,344136,533
198712,5631,938147,158
198816,0615,187158,032
198912,3469,390160,988
Source: Department of Justice.

Responsibilities to company shareholders. Comprehensive legislation relating to companies is contained in the Companies Act 1955. Modelled on the English Companies Act 1948, this Act reflects more of a New Zealand approach to matters affecting corporations. The Act has recently been completely reviewed by the Law Commission and the Department of Justice, and a number of proposals for the reform of company law have been made to the Government. These proposals are still under consideration.

An important principle of the legislation is the protection of shareholders, creditors, and the general public by the requirement that there be the fullest practical disclosure of information concerning the activities of companies. Annual statements of account are required from public and non-exempt private companies (which have 25 percent or more of their capital held by persons domiciled overseas) and must exhibit a true and complete account of a company's affairs and transactions. There is a prescribed form of presentation, and comparative figures for the previous year have to be included.

Offers of shares to the public can only be made after the issue of a prospectus, which has to be registered with the Registrar of Companies. The Securities Act 1978 established a Securities Commission, whose responsibilities include recommending rules in this area, which are set out in the Securities Regulations 1983. The regulations cover restrictions on, and the content of, registered prospectuses and advertisements. See also ‘Securities Commission’ below.

The Companies Amendment Act 1963 regulates takeovers by ensuring that shareholders in other companies have enough time and information to make a proper decision about the takeover offer. The Companies Amendment Act 1964 deals with flat-owning companies, which issue occupation licences registered under the Land Transfer Act 1952.

Partnerships. A partnership is defined in the Partnership Act 1908 as the relationship between persons carrying on a business in common with a view of profit. Partnerships are started by mutual agreement, which can be informal, but the terms would normally be contained in a written agreement. Its characteristics are described below. Each partner is usually under a joint liability for all the partnership debts. A partnership will as a rule be dissolved by the death or retirement of a partner. Partnership interests are not usually capable of being assigned or transferred. Control and management of a partnership's affairs are (subject to the partnership agreement) vested in all the partners. Lastly, a partner is ostensibly an agent for the other partners, and can commit the partnership to agreements and arrangements that bind them.

Company practices

In the process of freeing up the economy and reducing government regulation of markets, legislation has been introduced to prevent large companies and industries from dominating markets by, for example, buying out their competitors, and creating a monopoly over goods and services.

Commerce Commission. The commission investigates companies for compliance with and enforces the provisions of the Commerce Act 1986. This Act exists to promote workable and effective competition in markets within New Zealand and controls restrictive trade practices, mergers and takeovers, and prices.

In the area of trade practices, such as contracts, covenants, arrangements and understandings, the Commerce Act prohibits any that have the purpose or effect of substantially lessening competition in a market, except where public benefits outweigh this outcome and the Commerce Commission authorises it.

The Commerce Commission is also the approving authority for merger and takeover proposals and may only give clearance to a notified merger or takeover if it is satisfied that implementation would not result in any person acquiring or strengthening a dominant position in a market to eliminate or deter competition.

In the prices area, the commission determines prices of controlled goods and services but competition is the primary objective in regulating markets. The Commerce Act 1986 does, however, provide a process under which other public policy objectives may be balanced against that objective.

The Commerce Commission is a body corporate with investigative and administrative powers. It was originally established under the Commerce Act 1975 and was restructured under the Commerce Act 1986.

The commission comprises three to five members, appointed for their experience in, or knowledge of, industry, commerce, economics, law, accounting, public administration, or consumer affairs. Provision is made for additional associate members, to be appointed in relation to a particular matter or class of matters.

The Commerce Commission also has responsibility for administering the Fair Trading Act 1986 (see above).

Securities Commission. This body, established under the Securities Act 1978, has a wide range of functions aimed to ensure fair practices are followed in the securities market. These are:

  • To keep under review the law relating to companies, securities and issuers of securities, and recommend changes.

  • Surveillance of practice—To review securities practices and comment on them with power to hold enquiries in particular cases, if necessary in public.

  • Education—To promote public understanding of the law and practice of securities.

  • Exemptions—To exempt persons and classes of persons either temporarily or on a long-term basis, from compliance with various provisions of the Securities Act and Regulations.

  • Substantive jurisdiction in particular cases—To suspend or cancel the registration of prospectuses, to prohibit the publication of advertisements, to exercise powers for the protection of investors in contributory mortgage schemes, to approve persons to act as trustees and statutory supervisors, to recommend that entities in difficulties should be placed under statutory management, and to hear appeals against decisions of the Registrar of Companies, to authorise life insurance companies for the purposes of the Securities Act 1978, to regulate matters relating to ‘insider trading’ and the disclosure of substantial shareholdings, and to co-operate with any securities commission in any other country.

The commission's current law reform programme includes a review of the law and practice relating to (i) company mergers and takeovers; (ii) financial reporting; and (iii) group investment funds.

The Report of the Sharemarket Inquiry Establishment Unit 1989, commissioned by the Minister of Justice, has recommended a new draft securities bill which provides for a reconstituted Securities Commission. This report was still under consideration by the Government at the time of going to press.

The commission consists of ten members appointed by the Governor-General on the recommendation of the Minister of Justice. The chairperson is a barrister and solicitor appointed on a full-time basis. Other members are engaged on a part-time basis, and are expected to have wide experience in commercial affairs.

Serious Fraud Office. This independent office was established on 1 April 1990. Its role is the investigation and prosecution of those involved in corporate fraud.

The establishment of the office was first agreed to by Cabinet in October 1988 and followed consideration of several overseas models—particularly those of the United Kingdom and Australia. It is headed by a single director.

As in the United Kingdom, the office will not supersede existing agencies such as the police, the Commercial Affairs Division of the Department of Justice, the Customs Department and the Inland Revenue Department. It will investigate cases decided by the director of the office (on the basis of complexity, magnitude, or public interest) as well as those referred to it by existing agencies. This referral of cases by the various agencies will ensure a more co-ordinated attack on fraud. These agencies will still retain responsibility for the mainstream enquiries in their sphere of interest, but the office will relieve them from the strain and demands which substantial and complex inquiries impose.

The Corporate Fraud Unit within the Department of Justice has been disbanded, however, as in the United Kingdom, there will be a Companies Investigation Branch within the department's Commercial Affairs Division. The Corporate Fraud Unit's previous caseload will be split between the Serious Fraud Office (the serious or complex cases) and the Companies Investigation Branch (the simpler cases, including investigations on behalf of the Registrar of Companies, of offences against the Companies Act), The Companies Investigation Branch, besides referring some cases to the Serious Fraud Office and investigating offences against the Companies Act, will also assist the Registrar of Companies and Official Assignee in their general functions of company liquidations, the disqualification of directors and the investigation of companies whose fraudulent or reckless trading merits statutory management.

The Serious Fraud Office is funded jointly by the Departments of Justice and Police.

Stock exchange

There are three broad categories of stock that are bought and sold on the New Zealand Stock Exchange—shares in companies, debentures and other loans to companies, and government and semi-government stock. As on other stock exchanges around the world, company shares account for the bulk of trading.

New Zealand Stock Exchange. This central exchange was established in 1983 by the Sharebrokers Amendment Act 1981, and is governed by a board of directors comprising members, independent directors and exchange executives. Its main office in Wellington is responsible for the granting of listing, the supervision of listed companies as regards their compliance with the listing manual, and the collection and promulgation of all market information.

The exchange is financed by the payment of annual fees by companies listed on it and by levies on its members.

It maintains trading floors in Wellington, Auckland, and Christchurch providing the facilities for buying and selling government securities and securities in semi-government corporations and companies operating in the private sector.

The New Zealand Stock Exchange is made up of members (sharebrokers) whose function is to act as agents on behalf of their clients. Members send their staff on to one or more of the trading floors to buy and sell shares on their clients' behalf. To become a member, a person must obtain a sharebrokers' licence; be approved by the committee—which is guided by membership, financial standing, and experience; and pay an entrance fee.

There were 248 New Zealand companies and 120 overseas companies listed with the exchange at the end of 1989.

Share market activity. The international market ‘crash’ in October 1987 affected the New Zealand market severely, and the effects of this are still being felt. Prices fell by more than half in the ensuing months and many of the new investors sold out of the market. The stock exchange has also subsequently changed its rules, as outlined below, and insider trading has been made illegal. The Securities Amendment Act 1988 introduced most of the commission's recommendations on insider trading along with other matters.

Looking further back, New Zealand's stock market has been through a period of great change in the past few years, with changes in the regulatory environment, the size and nature of the market, and the way it is conducted.

The stock market was one of the many aspects of life in New Zealand affected by the changes in economic policy which followed the 1984 election. It benefited from the investment boom which followed the new government's moves to remove regulations restricting economic activity—in particular, those on borrowing and lending. Investor optimism fuelled a boom which lifted share prices by 450 percent in the four years to the end of 1986. With the rise in prices came many new investors—a high proportion of whom were buying shares for the first time.

The exchange, which conducts the market, responded to the changes by overhauling its own regulations. As a result, sharebrokers gained the right to incorporate, open branch offices, take in non-member shareholders, trade on more than one of the three trading floors, and advertise more freely. In addition, fixed brokerage rates were abolished, so that brokerage could now be set by negotiation. In response to the stock market crash in October 1987, the exchange added new rules in sharebroker liquidity and tightened its listing requirements to improve standards of disclosure by listed companies—both moves being aimed at providing greater protection for investors.

A Market Surveillance Panel was established by the exchange to administer and enforce the new listing requirements that became effective on 1 August 1989. These new listing requirements are aimed at ensuring a more fully informed market; ensuring that companies act fairly in relation to their shareholders; and providing for an independent panel to oversee the administration and enforcement of the requirements.

The pattern of change is continuing—due in particular to the advance of computerisation. The exchange is implementing a fully-automated trading and settlement system so that the handling of securities is done more efficiently. Work is underway to improve the registration of documents through the present automated system. Most brokers are linked to this system so that they can keep up-to-date with changes in share price movements. The next phase of computerisation will be electronic (paperless) transfer. The aim is to halve the time taken from transaction to registration for the benefit of all market participants. In addition, the new system will enable the introduction, if the stock exchange so decides, of screen trading, This method, which is already in use in other markets, involves buying and selling shares on a computer screen rather than using the traditional ‘open outcry’ method. Another major change in the offing is the gradual introduction of ‘scripless’ share trading, by which shares will be bought and sold without the exchange of share certificates as at present. Instead, changes of ownership will be recorded electronically, abolishing serious delays in settlement and registration such as have occurred in recent years.

Insolvency

Bankruptcy. The term bankruptcy usually refers to the financial insolvency of individuals. The law relating to bankruptcy in New Zealand is contained in the main in the Insolvency Act 1967 (which came into force in 1971), the Insolvency Rules 1970, and the Insolvency Regulations 1970. Jurisdiction in bankruptcy matters is vested in the High Court.

All proceedings in bankruptcy are commenced by petition filed in the court by either the debtor or a creditor. 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 $200 in total must be owing by the debtor to any creditor, or creditors, filing a petition.

The Official Assignee is a statutory officer, and an officer of the court, in whom (apart from certain statutory exceptions) all the assets of a bankrupt vest on adjudication, and who acts as a trustee in respect of those assets. The assignee is empowered to sell the bankrupt's property by auction, tender, or private treaty, and enforce debts due to the bankrupt's estate. The assignee may carry on the business of the bankrupt so far as it is necessary or expedient for its disposal or conclusion. When all the assets are realised, the assignee divides the proceeds among the creditors. Secured creditors are paid from the proceeds of the security, and other creditors are paid on a pro rata basis.

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.

Upon application being made by the bankrupt, the court is empowered to grant an order of discharge, which can be absolute, conditional, or suspended. The application may be opposed by the assignee, or by any creditor whose claim has been proved. A public examination of the bankrupt may be demanded by the assignee, or by the creditors, on the passing of a resolution, In all other cases a person adjudged bankrupt is automatically discharged three years after adjudication, in the absence of any earlier application by the bankrupt.

Where a creditor is concerned that a bankrupt may realise the assets and depart, without regard for any financial obligations, application may be made under the Insolvency Act 1967 for the assignee to be appointed as a receiver/manager of the property prior to the hearing of the creditor's petition. This procedure has been used on a few occasions in recent years.

Table 21.2. BANKRUPTCIES

YearBankruptcies*Total
Petitions by debtorsAdjudications on petitions by creditors
* The bankruptcy figures include orders under Part XVI and XVII of the Insolvency Act 1967 and Part IV of the Administration Act 1969. These figures have not been adjusted for annulments granted during the year.
1984409405814
1985445424869
1986575390965
19876865431229
19881,1697051,874

Another form of financial failure is covered by private assignments, which are not included in official bankruptcy statistics.

In the case of a partnership, each partner is counted in the total of transactions and also the partnership. The general bankruptcy statistics do not cover assignments and compositions, but relate only to cases dealt with by official assignees.

Table 21.3. OCCUPATIONS OF BANKRUPTS

Occupational group19841985198619871988
Professional, technical, and related workers2430325584
Administrative and managerial workers54536173142
Clerical and related workers2121222625
Sales workers10096115159235
Service workers80905495161
Agricultural, animal husbandry, and forestry workers, fishermen, and hunters64104142129167
Production and related workers, transport equipment operators, and labourers297326317310447
Not gainfully employed/actively engaged172146217382613
               Occupational group total8128669601 2291 874
Partnerships23
Annulments5
               Total bankruptcy petitions8148699651 2291 874

Table 21.4. EMPLOYMENT STATUS OF BANKRUPTS

YearWorking for salary or wagesEmployer of labourWorking on own account but not employing labourNot gainfully employedAnnulment partnership and status not knownTotal
1984242911832962814
19852961342461903869
19862981312133185965
19873531942764061,229
19883953993986821,874

Company liquidation. Liquidation (sometimes called ‘winding up’) is the legal process by which a company's life is ended. The company's assets are realised, its creditors paid out, any surplus is distributed to the shareholders, and the company is then dissolved.

Liquidation is carried out in accordance with the relevant provisions of the Companies Act 1955 the Companies (Winding Up) Rules 1956, and the High Court rules. The procedure is generally as follows:

  1. The company passes a special resolution or the court makes an order for the company to be wound up and a liquidator is appointed to control the company's affairs. In a court order the Official Assignee is normally the liquidator. However, subsequent court orders may transfer the process of winding up a company to private liquidators.

  2. The liquidator realises all the company's assets, calls in (where relevant) as much of its uncalled capital as is necessary to meet its debts, and pays out the company's creditors. If the realised assets and uncalled capital are not sufficient then the creditors are paid out according to the priorities set out in the Companies Act.

  3. Any surplus remaining, after payment of the liquidator's expenses and all the creditors, is distributed to the company's members in accordance with its memorandum and articles of association.

  4. The company is then dissolved.

Companies with heavy debt loads and cash-flow problems often have a receiver appointed over their assets, either by the court, or more usually under an express clause in a mortgage or debenture. Modern debentures usually contain a lengthy recital of the events which will enable debenture-holders to recover their loans if borrowers get into financial difficulties. One of these provisions will be the power of the debenture-holder to appoint a receiver. The usual reason for appointment of a receiver is default in payment of principal and/or interest. It is also possible for a receiver to be appointed because of any other breach of the provisions of the debenture.

The function of a receiver once appointed is to get in or realise the assets charged by the debenture, collect rents and profits, and exercise the debenture-holder's powers of realisation, then pay the net proceeds to the debenture-holder in reduction of its charge. In short, the receiver goes in, sells what is necessary to recover the amount owed to the debenture- holder (plus costs), and then gets out. No property of the company is actually vested in the receiver, and, although the directors remain in office, the receiver supersedes them and exercises their powers. The receiver's status is one of agent, not officer of the company. Control of the company is transferred to the receiver, but the appointment of a receiver does not terminate the company's operations. Accordingly receivership is quite distinct from liquidation, as a receiver acts for the benefit only of the debenture-holder who appointed him or her.

Table 21.5. COMPANY INSOLVENCIES

Year ended 31 MarchCompanies placed under receivershipCompany liquidations
Court orderVoluntary
1985294337267
1986347383278
1987293420372
1988369468363
19891,1038311,063
Source: Department of Justice.

21.3 Insurance and superannuation

Operating environment

The insurance industry in New Zealand, both life and non-life, has a number of unique characteristics which make international comparison difficult. In taking an overview of the New Zealand industry it is necessary to identify and understand those characteristics.

Regulation. The New Zealand insurance market is one of the least regulated in the world, a circumstance that applies to both fire and general insurance and life insurance. The most important regulatory legislation is the Insurance Companies' Deposits Act 1953, which requires any person or company carrying on the business of insurance in New Zealand to lodge approved securities with a market value of not less than $500 000, with the Public Trustee.

Under earlier legislation, the amount of the deposit was set using different criteria and some companies have deposits less than $500 000.

There is a similar provision for deposits under the Life Insurance Act 1908 but the deposit requirement has been for securities with a market value of not less than $500 000 for many years. The deposits are held by the Public Trustee as security for policyholders or claimants in respect of policies or other contracts issued, granted or entered into by the person making the deposit. The value of deposits held by the Public Trustee under the Insurance Companies' Deposits Act 1953, was $28.2 million, and $28.7 million under the Life Insurance Act 1908, at 31 March 1989.

Statutory reporting is required in terms of the Life Insurance Act 1908. The Insurance Companies' Deposits Act 1953 was amended in 1983 to require detailed annual reports and statements of financial condition to be provided to the Department of Justice. New Zealand has no insurance commissioner or equivalent public official and there are no statutory solvency requirements or controls, nor is there any restriction or control on re-insurance.

There are currently no fiscal regulations designed to direct life or fire insurance investment funds to particular investment sectors. There are some limited reporting and disclosure requirements contained in the Marine Insurance Act 1908.

The Mutual Insurance Act 1955 provides for the establishment of mutual insurance associations which were intended to provide insurance primarily for farm owners and certain rural industries and their employees. Other insurance companies are subject in the ordinary way to the provisions of the Companies Act 1955 and comply with New Zealand company law in the same manner as other business enterprises.

The regulatory position can be summarised by saying that the size and closely knit nature of the New Zealand insurance market has meant that regulation of the industry has proceeded through a combination of rather loose government supervision coupled with a measure of self-regulation. However, the self-regulatory process has tended to be limited, due to the effect of the Commerce Act i 986, which controls what might be regarded as restrictive trade practices. Competition has also been an important factor in regulating all parts of the insurance market. During 1990 the Insurance Council of New Zealand will become more active in self-regulation in order to provide greater information to consumers. In 1989 the Life Offices' Association became a self-regulating organisation with an independent review authority and a defined relationship with the Securities Commission.

Insurance intermediaries. These are not regulated, and New Zealand has, particularly over recent years, developed a highly sophisticated system for marketing of insurance services. It has very large numbers of various insurance intermediaries. Traditionally, the insurance needs of the community were served through a network of agents established by each insurance company. The remnants of this agency network still remain, now reinforced however by other networks of international and local insurance brokers, the former servicing the major commercial accounts and providing access to international insurance services, and a growing network of independent insurance agents selling fire and general insurance.

The life insurance agency system has substantially been a tied agency system with individual agents contracted to a particular life insurance company. This system has been preserved in New Zealand to a quite unusual degree although there have been some minor trends to a more relaxed approach from several smaller offices.

Government's role in the insurance market. Some classes of insurance which make a substantial contribution to the premium pool outside New Zealand do not feature in New Zealand at all because of the different legal climate and background. For instance, the enactment of the Accident Compensation Act 1974 effectively removed from the New Zealand market many classes of liability insurance. This Act is comprehensive ‘no fault’ legislation which abolishes all common law actions in tort for negligence and provides a system of income- related compensation and the right to rehabilitation in respect of all classes of accidental injury. The insurance industry in New Zealand is not therefore, unlike most insurance industries overseas, concerned with motor vehicle third party injury claims, claims for injury arising out of defective goods and products, and claims arising from medical misadventure and similar forms of professional negligence. Nor is it concerned with workers' compensation or similar areas of insurance, the Accident Compensation Act having absorbed the areas of insurance against injury and death arising from industrial accidents. The current Accident Compensation Act 1982 is administered by the Accident Compensation Corporation which also has statutory responsibilities in the field of accident prevention. The system of accident compensation in place is described in section 8.4, Accidents.

New Zealand has a fairly high degree of susceptibility to losses arising from earthquake and other geophysical events, so insurance in respect of loss arising from earthquake and volcanic activity has presented a considerable problem. The result of this circumstance was the enactment of the Earthquake and War Damage Act 1944 and its various amendments, which established a fund guaranteed by government which is designed to meet losses arising from earthquake, war damage and certain other specified catastrophic events. In late 1989 the Government introduced legislation (still in passage at the time of going to press) which provided for compulsory insurance of dwellings and voluntary insurance for commercial buildings. The Earthquake and War Damage Commission would be replaced by a Disaster Insurance Commission which would monitor compliance with the Act. The provision of disaster insurance would be competitive. The system of earthquake and war damage insurance is described in section 8.5, Civil defence and fire safety.

Historically, government has also been involved in both fire and general and life insurance through the State Insurance Office and government-backed life insurance and mutual funds. In May 1990 the Government announced the sale of State Insurance Office to the Norwich Union Life Insurance Society.

The taxation regime in New Zealand in respect of both life insurance, non-life insurance and reinsurance is also different in a number of respects to the taxation regimes applying overseas. This includes the imposition of goods and services tax on non-life insurance services, and income tax in respect of both life and non-life insurers and insurance transactions. A major review of life office taxation is to be implemented in 1990.

Fire services in New Zealand are funded through a levy upon all fire insurance policyholders. The role of the New Zealand Fire Service Commission is outlined in section 8.6, Civil defence and fire safety.

Each of these interventions in the insurance market by government influence the size of the premium pool and the level of insurance required by businesses and private individuals, affect the level of employment in the insurance industry, and influence the expenses of the industry and the location of points of service within the industry.

Development of an insurance industry

The insurance industry arrived in New Zealand with the first European settlers. The first insurance was written by business people in Wellington and Auckland who operated agencies for major London companies, but the rapid growth of the colony soon persuaded business operators in Auckland to gather together to establish the first indigenous New Zealand underwriters. The New Zealand Insurance Co. Ltd was founded in 1859, followed soon after by the South British Insurance Co. Ltd in 1872. The British companies also established branches, particularly in Auckland Wellington and, later, in Dunedin as the Otago colony grew in response to the gold rushes, The Dunedin business community also decided that there was a place for their own indigenous insurance companies and The National Insurance Co. of New Zealand Ltd was founded in 1873, and the Standard Insurance Co. Ltd (later to be the subject of one of New Zealand's most notable financial disasters), in, 1874.

Life insurance arrived a little later, with some of the London companies writing life insurance quite early, but the main thrust of growth of the life insurance market being the establishment of branches of the major Australian mutual companies in the late 1800s. The New Zealand Government joined the market, first with the establishment of the Government Life Insurance Office in 1869 to augment the very inadequate life insurance facilities that then existed, with the State Insurance Office being established in 1905 to undertake fire and marine business, and later to take over the accident business originally operated by the Government Life Insurance Office.

The life insurance industry in New Zealand assumes major importance as an investor and savings vehicle. New Zealanders, per capita, are among the five largest purchasers of life insurance in the world. The life insurance market is dominated by three large mutual societies (AMP, National Mutual and Colonial Mutual), New Zealand Insurance Life, Tower Corporation and Prudential which between them write about 85 percent of the country's life insurance/superannuation business, measured by annual premium income in force. The Department of Statistics' annual Business Directory update recorded 41 life insurance enterprise groups at February 1989.

The non-life insurance market is divided amongst 123 companies and individuals who have made deposits under the Insurance Companies' Deposits Act 1953, but many of these depositors are not now active in the New Zealand market. Some deposits are made to support placements overseas by brokers, or by international reinsurers, and some are retained to support the runoff of workers' compensation business by insurers no longer active in New Zealand. Some New Zealand insurance business is directly placed offshore with Lloyds and the company market in London. Another source of information on the industry, the Department of Statistics' annual Business Directory update, recorded 66 medical and 103 general insurance enterprise groups trading in New Zealand at February 1989.

The New Zealand premium pool is divided approximately: 18 percent commercial fire business, 23 percent domestic fire, 34 percent motor, 17 percent general accident, 2 percent marine hull and 4 percent marine cargo.

The level of economic activity represented by the insurance industry can be broadly measured by levels of employment and by the premium pool of both industries. Industry sources indicate that approximately 11 000 persons were employed within the industry as at 31 December 1988, including independent life insurance agents. The premium pool at the same date was:

  • Life (including superannuation) $1 600 million; and

  • Non-life $1 260 million.

Considerable change is already taking place in the insurance industry in New Zealand and is likely to continue. The size of the New Zealand market indicates that a reduction in the number of direct underwriters operating is likely, and recent amalgamations and withdrawals indicate that this process is already beginning. The process is accompanied by an increase in the number of reinsurers establishing a place of business in New Zealand.

It is also probable that the number of major international brokers will be reduced but that there will be a growing number of brokers operating on a local or regional level to service small businesses and the domestic market.

In the life insurance and superannuation fields it is generally anticipated that market growth will be slower in the absence of taxation incentives to encourage the purchase of life insurance.

Loss prevention

The Accident Compensation Corporation has the statutory duty to promote occupational safety and accident prevention, and this activity has had some indirect benefit to the insurance industry.

The Insurance Council of New Zealand along with the Fire Service Commission, which administers the New Zealand Fire Service, is active in fire prevention and fire safety education. Most other activity in the field of loss prevention and accident prevention is undertaken by government or quasi-government bodies which are wholly or partly public funded.

The Building Research Association of New Zealand undertakes some work in respect of the assessment of building materials and methods of construction and the Automobile Association and similar organisations are active in the field of prevention of motor vehicle accidents. Much of New Zealand's effort in loss prevention has traditionally been organised and financed through the insurance industry, which has pioneered work in a number of areas, including electrical safety and the registration and education of electricians (an area subsequently taken over by government), research into fire prevention and fire safety equipment, and the approval of passive fire protection and alarm systems.

Industry organisations

Several industry organisations are maintained. The principal ones are:

  • The Insurance Council of New Zealand Inc.—fire and general insurers;

  • The Life Offices' Association of New Zealand Inc.—maintained by life insurers;

  • The Corporation of Insurance Brokers of New Zealand—made up of brokers;

  • The Independent Insurance Agents Association—representing independent agents;

  • The Chartered Institute of Loss Adjusters and The Institute of Loss Adjusters of New Zealand Inc.—comprising adjusters and assessors; and

  • The Insurance Institute of New Zealand Inc.—the educational body of the industry.

The Insurance Council operates a disaster emergency scheme. Both the Insurance Council and the Life Offices' Association operate consumer inquiry facilities.

Government superannuation

For many years central government, local authorities, and increasing numbers of private employers have operated superannuation schemes to enable employees to provide for their retirement in addition to the benefits provided under social security schemes. More than one-third of all New Zealand taxpayers contribute to superannuation schemes, making provision for retirement income. Many of these contributors belong to schemes into which the employer pays a subsidy, and the two largest organisations are state-run.

The Government Superannuation Fund in its present form was established in 1948, amalgamating funds which had been in existence since the early 1900s. Its revenues consist of members' contributions, subsidies from the Crown Bank Account and trading departments and other bodies, and interest earned on investments. The National Provident Fund was established as a superannuation scheme for the general public in 1911. It also provides superannuation for the employees of local authorities and other approved bodies as well as private companies, and maintains an investment pool in which local bodies may invest their surplus funds.

Government Superannuation Fund. The Government Superannuation Fund administers six superannuation schemes: the general scheme for employees in government service; and the five sub-schemes for specialised occupational groups—the armed forces, police, prison service, members of Parliament and judges.

As at 31 March 1989 there were 72 595 contributors to the Government Superannuation Fund and they paid $153 732 000 into it during the year. At the same time there were 42 638 beneficiaries who were entitled to $435 224 000 during the year.

Total assets at 31 March 1989, which amounted to $2 154 679 000 included investments in government stock of $1 683 507 000 and $58 292 000 in members' mortgages and $140 770 000 in bonds. The average effective interest earning rate of the fund was 14.48 percent for the year.

Membership of the fund is paid by deduction from the employees salary. The rate of contributions does not change as long as the person stays in the fund or makes arrangements for their contributions to continue if they have a break in service.

The rate of contributions varies between schemes. The rate is 6.5 percent of salary for members of the general scheme; armed forces, 7.6 percent of salary; prison service, 8.5 percent of salary; and the police force, 7.5 percent of salary; for members of Parliament, 11 percent of salary; and for members of the judiciary, 8 percent of salary.

Until 1985 membership of the Government Superannuation Fund was compulsory for employees between the ages of 17 and 24. Since then membership has been optional for the general scheme but not for employees in the sub-schemes mentioned above. Employees of the Cook Islands, Niue and Tokelau public services and locally-recruited staff of the New Zealand High Commission in London are also covered by the provisions of the general scheme.

Each of the five sub-schemes and the general scheme provides for a retirement benefit, a medically unfit benefit and a death benefit. The allowances payable on retirement or medical grounds varies depending on which scheme the member belongs to, their age and the length of contributory service. The allowances payable on death of the contributor are calculated on the same basis for all schemes. The method of calculation of these benefits is beyond the scope of this publication but more information can be obtained from the Government Superannuation Fund.

All of the schemes carry provision for mortgage finance for members, except those who are members of the parliamentary scheme or the judiciary, Cook Island and locally- recruited employees. Members of other schemes who have at least one year's membership may apply for mortgage finance to build, purchase or renovate their own home, or purchase a subsequent home. In addition, contributions may be used as security to obtain a loan.

Early in 1990 the Government announced that—in line with tax changes affecting private superannuation schemes—investment earnings of the Government Superannuation Fund and employer contributions would be taxed from 1 April 1990. Also, pensions will be tax- free from the same date, although pensions and lump-sum benefits will be reduced progressively over 20 years to allow for this.

It was also announced that the present voluntary general scheme will be closed to new members from 1 July 1991, although the existing compulsory schemes will continue.

Existing members in the scheme will be able to continue in it or transfer to new schemes which will be established by individual departments or state organisations.

Government Superannuation Board—The Government Superannuation Fund is administered by a board comprising the Minister of Finance as statutory chairperson, the Secretary to the Treasury as deputy chairperson, the Chairman of the State Services Commission, the General Manager of the Railways Corporation, the Director-General of Education, the Commissioner of Police, a representative of the boards of New Zealand Post Ltd, Post Office Bank Ltd, and Telecom Corporation of New Zealand Ltd, five members appointed on the nomination of various employee organisations, plus one on the nomination of the Minister of Defence.

Table 21.6. GOVERNMENT SUPERANNUATION FUND ALLOWANCES, AT 31 MARCH 1989

Qualification for allowanceNumberAnnual amount
 $(000)
Retired for age or length of service29,783359,601
Medically unfit1,55614,599
Spouses10,51660,681
Children783343
               Total allowances42 638435 224
Source: Treasury.

Table 21.7. CONTRIBUTORS TO GOVERNMENT SUPERANNUATION FUND

Branch of serviceAt 51 March 1989Percentage of total

* Formerly listed as Post Office before it became a state-owned enterprise.

† Includes state-owned enterprises which were formerly part of the Public Service.

Source: Treasury.

Armed services13,65318.81
Education service16,59622.86
Police5,3027.30
Prison officers1,6742.31
Post enterprises*8,64011.90
New Zealand Railways4,1185.67
Public Service18,16025.02
Other employers4,4526.13
               Total72 595100.00

Table 21.8. GOVERNMENT SUPERANNUATION FUND: SUMMARY

Year ended 31 MarchNumber of contributorsAnnual contributions*Interest received from investmentsSubsidy from government trading departments and othersAnnual value of allowancesAccumulated fund at 31 March

* Includes transfers from National Provident Fund but not contributions of members of Parliament.

Source: Treasury.

  
198784,301154,126218,884313,559305,8361,685,855
198878,733160,246252,578489,196400,9871 960 674
198972,595153,732267,582500,710435,2242 154 679

National Provident Fund. With over $3 billion in assets, National Provident is New Zealand's largest superannuation fund, and has been providing superannuation schemes for employer/employee groups and individuals for nearly 80 years.

The original concept behind the fund was to provide an opportunity for people of modest means to save and, by acting collectively, to gain benefits of cost, administration and investment value which would ensure them a pension at the end of their working lives.

Today the fund provides services in four separate areas:

  • Personal schemes—National Provident Fund pension schemes have catered for the general public contributing on an individual basis since 1911.

  • Defined benefit schemes—These schemes cover employees of all local bodies, quasi- government and other approved organisations, firefighters and nurses.

  • National schemes—These employer-subsidised schemes are available for employees of companies, firms, government departments, or local authorities willing to become contributing employers.

  • Local Authorities Investment Pool—This ancillary activity enables local authorities to invest surplus funds at interest.

Recently the Government has been decreasing its involvement in sectors of the economy providing goods and services of all types. As part of this process it has decided to establish National Provident as an independent financial mutual. At the end of 1987, as a first step, the National Provident was established as a separate government department outside Treasury. By mid-1990 legislation will have been introduced which will see National Provident registered as a company under the Companies Act 1955. It will be a non-listed company but will hold no share capital. Instead it will be limited by the guarantee bf its members to a maximum of one dollar per member.

The purpose of the fund will be to develop new investment and contractual savings schemes, to administer existing superannuation schemes, and to operate as an investment manager. The expectation is that a more market-oriented approach will improve the profitability of the fund and therefore increase benefits for members.

The changeover will bring no immediate change to existing rights and benefits. These will continue to be government-guaranteed. The National Provident Fund will operate the existing schemes on contract to the Government according to negotiated guidelines. These guidelines will relate to investment and asset allocation. The fund will be required to report to Parliament on the operation and management of the existing schemes.

Any new schemes for savings or superannuation, set up by the fund will not be government-guaranteed. In addition, the Government will no longer fund National Provident's administration expenses and proposes to cease paying the subsidies it currently pays in respect of about 6000 National Provident members.

The Government has stated that the subsidy is a provision from a past era when central government decreed what schemes were to be offered, then called on the taxpayer to assist local authorities and quangos to pay the cost. This subsidy ceases for all schemes except those for charities with the passing of the National Provident Fund Restructuring Bill.

Table 21.9. NATIONAL PROVIDENT FUND: FINANCIAL SUMMARY

Year ended 31 March19881989Percentage change

* The increase in taxation was due to the fact that the fund has had to pay more tax on its income with effect from 1 April 1988 as defined by the Income Tax Amendment Act 1989.

Source: National Provident Fund.

 $(000)$(000) 
Contribution income209,332234,43312
Investment income (after revaluations)190,419165,468−13
               Total net income399 751399 901
               Total expenses105781837174
Pensions and capitalisations paid117,687139,85319
Contributions refunded46,17467,17445
Taxation*1,75850,7692,788
Net surplus after tax223,554123,734−45
At 31 March:
Assets2 954 9573 101 7525
Liabilities609,360632,4214
Net assets2 345 5972 469 3315
Number of contributors120,437123,2682
Net increase in number of contributors1,8272,831
Number of pensioners18,95121,34213
Net increase in number of pensioners6402,391

Insurance industry statistics

The Census of Insurance 1982–83 formed part of the first series of integrated economic censuses of business activities in New Zealand carried out by the Department of Statistics until 1985. A second census formed part of the 1987 Economy Wide Census (reports from which are being released progressively throughout 1990). The census covered the activities of all businesses classified into division 82 of the New Zealand Standard Industrial Classification. A summary of results is given below according to the various industrial classifications.

Life insurance (industry 82110). This division covers businesses primarily providing life insurance, other life insurance, life reinsurance, and other life insurance including mortgage repayment insurance. Also included are superannuation and mutual fund operations not separately administered.

Table 21.1. LIFE INSURANCE: STATISTICAL SUMMARY

Statistical item1982–831986–87Percentage change 1983–87
 numbernumber 
Group enterprises364319.4
Enterprises within these group enterprises415124.4
Activity units (including ancillaries)2812841.1
Full-time equivalent persons engaged3,1533,69617.2
 $(000)$(000) 
Income—
     Interest and dividends received402,188842,085109.4
     Premiums and contributions received654,3421 647 559151.8
     All other income received95,297207,828118.1
               Total income1 151 8272 697 413134.2
Operating expenditure—
     Salaries and wages55,74895,41471.2
     Depreciation20,88121,9034.9
     Interest1,07317,8381 562.4
     Indirect taxes8,77810,80423.1
     Claims and benefits paid403,767870,986115.7
     All other operating expenditure194,809343,09476.1
               Total operating expenditure685 0571 360 03998.5
Balance of income over expenditure466,7711 337 434186.5
Plus net gains on extraordinary items and transfers4,7641 061 22822 176.0
Equals increase in policy-holders' funds471,5342 398 662408.7
Plus total funds at beginning of year4 012 7638 570 716113.6
               Total funds at end of year4 484 29710 969 378144.6
Fixed tangible assets—
     Purchases during the year27,181252,045827.3
     Sales during the year6,43954,341743.9
     Book value at end of the year134,4461 378 214925.1

Medical insurance (industry 82120). This division covers the provision of medical, hospital and dental insurance; funeral benefits and the operation of benefit funds. Included are employee benefit funds, welfare societies, friendly societies and funds not elsewhere classified.

Table 21.11. MEDICAL INSURANCE: STATISTICAL SUMMARY

Statistical item1982–831986–871983–87
 numbernumberchange
Group enterprises335154.5
Enterprises within these group enterprises415124.4
Activity units (including ancillaries)648025.0
Full-time equivalent persons engaged20737782.1
 $(000)$(000) 
Income—
     Interest and dividends received7,47717,198130.0
     Premiums and contributions received49,14189,80482.7
     All other income received4685,6481 106.8
               Total income57 086112 65097.3
Operating expenditure—
     Salaries and wages2,5337,131181.5
     Depreciation4231,145170.7
     Interest54574963.0
     Indirect taxes86429398.8
     Claims and benefits paid38,10280,945112.4
     All other operating expenditure4,84313,236173.3
               Total operating expenditure46 042103 459124.7
Balance of income over expenditure11,0449,190−16.8
Less net losses on extraordinary items and transfers2062,8881 301.9
Less working proprietors' salaries and wages185
Equals increase in policy holders' funds10,8386,117−43.6
Plus total funds at beginning of year49,39564,55130.7
               Total funds at end of year60 25370 66817.3
Fixed tangible assets—
     Purchases during the year39821,0505 188.9
     Sales during the year..3,718
     Book value at end of the year9,06660,765570.3

General insurance (industry 82130). This division covers the provision of fire insurance cover for commercial and domestic purposes; marine, aviation, and other accident insurance.

Table 21.12. GENERAL INSURANCE: STATISTICAL SUMMARY

Statistical item1982–831986–87Percentage change 1983–87
 numbernumber 
Group enterprises437267.4
Enterprises within these group enterprises558045.5
Activity units (including ancillaries)40746113.3
Full-time equivalent persons engaged5,1465,2762.5
 $(000)$(000) 
Income—
     Interest and dividends received66,776135,729103.3
     Premiums and contributions received565,5711 002 21177.2
     All other income received36,05754,02049 8
               Total income668 4051 191 96078.3
Operating expenditure—
     Salaries and wages81,617112,75638.2
     Depreciation6,29013,697117.8
     Interest2,12024,8161 070.6
     Indirect taxes1,4082,60184.7
     Claims and benefits paid374,020704,56388.4
     All other operating expenditure152,577245,02060.6
               Total operating expenditure618 0321 103 45278.5
Net profit before tax50,37288,50775.7
Economic values—
     Operating surplus50,49689,50277.2
     Value added178,301252,99341.9
Fixed tangible assets—
     Purchases during the year27,18162,855131.2
     Sales during the year6,43916,834161.4
     Book value at end of the year134,446278,372107.1
Ratios—
Value added per full-time equivalent persons engaged34,64847,95238.4
Value added per $1 000 of salaries-wages paid2,1852,2442.7
Total sales and other income per full-time equivalent persons engaged129,888225,92173.9
 percentpercent 
Net profit per total sales and other income7.57.4
Total salaries and wages per total sales and other income12.29.5
Value added per total sales and other income26.721.2

Superannuation and mutual fund operation (industry 82210). This division is concerned with the operation of separately administered superannuation and pension funds, but excludes the management of such funds on a fee or contract basis (which are included, in table 21.14).

Table 21.13. SUPERANNUATION AND MUTUAL FUND OPERATIONS: STATISTICAL SUMMARY

Statistical item1982–831986–87Percentage change 1983–87
 numbernumber 
Group enterprises1,9501,379−29.3
Enterprises within these group enterprises1,9501,381−29.2
Activity units (including ancillaries)1,9501,382−29.1
Full-time equivalent persons engaged52304484.6
 $(000)$(000) 
Income—
     Interest and dividends received386,7401 074 612177.9
     Premiums and contributions received662,4371 043 50457.5
     All other income received57,325482,867742.3
               Total income1 106 5012 600 983135.1
Operating expenditure—
     Salaries and wages7487,665924.7
     Depreciation1,6594,851192.4
     Interest39,7847,979−79.9
     Indirect taxes5582,454339.8
     Claims and benefits paid432,4541 082 828150.4
     All other operating expenditure9,57459,326519.7
               Total operating expenditure484 7771 165 1021403
Balance of income over expenditure621,7241 435 881131.0
Plus net gains on extraordinary items and transfers41,085619,8941 408.8
Equals increase in policyholders' funds662,8102 055,775210.2
Plus total funds at beginning of year3 474 5188 396 902140.7
               Total funds at end of year4 137 32810 452 677152.6
Fixed tangible assets—
     Purchases during the year12,02365,278442.9
     Sales during the year59590,99115 192.4
     Book value at end of the year215,798984,333356.1

Services to insurance and superannuation (industry 82301). This division includes insurance broking and agency services; adjustment, assessing and consultancy services; and the management of pension and superannuation funds on a commission or fee basis.

Table 21.14. SERVICES TO INSURANCE AND SUPERANNUATION: STATISTICAL SUMMARY

Statistical item1982–831986–87Percentage change
 numbernumber 
Group enterprises34063987.9
Enterprises within these group enterprises39369677.1
Activity units (including ancillaries)49779560.0
Full-time equivalent persons engaged1,6532,86873.5
 $(000)$(000) 
Stocks—
     Closing956
     Opening551
Income—
     Interest and dividends received7,46217,688137.0
     Other insurance services income53,209186,634250.8
     All other income received15,7118,163−48.0
               Total income76 382212 485178.2
Adjusted for change in stock values76,382212,890178.7
Operating expenditure—
     Salaries and wages21,73063,342191.5
     Depreciation1,4986,120308.5
     Interest6413,285412.5
     Indirect taxes183539194.5
     Purchases29,9124,480194.5
     All other operating expenditure83,620
               Total operating expenditure53 961161 385199.1
Working proprietors/partners salaries and wages6,14418,227196.7
Net profit before tax, after deducting working proprietors/partners salaries and wages16,27733,278104.4
Economic values—
     Operating surplus22,64637,78066.8
     Value added47,509113,201138.3
Fixed tangible assets—
     Purchases during the year5,85020,027242.3
     Sales during the year1,4955,875293.0
     Book value at end of the year15,51582,738433.3
Ratios—
     Value added per full-time equivalent persons engaged28,74139,47037.3
     Value added per $1 000 of salaries-wages paid2,1861,787−18.3
     Total sales and other income per full-time equivalent persons engaged46,20874,08860.3
 percentpercent 
     Net profit per total sales and other income21.315.7
     Total salaries and wages per total sales and other income28.429.8
     Value added per total sales and other income62.253.3

21.4 Domestic trade and services

‘Domestic trade’ embraces retail and wholesale businesses, hotels and restaurants, and businesses providing household and personal services. Retail trade is one of the most telling barometers of economic activity, as it constitutes a large proportion of personal expenditure on consumer goods and services.

The retail industry reported a mixed year generally in 1989. Interest rates on borrowing remained high and land tax, and new levels of competition affected the margins of many retailers in the cities, particularly Wellington and Auckland, while the relaxation of shop trading hours legislation led to longer opening hours and increased overall labour costs.

Prices of goods have, however, remained relatively stable when compared to inflation over the period. The effect of this has been pressure on profit margins and, more recently, a tendency for retailers to be more selective in their choice of trading hours and limit stocks in order to contain overheads. Stock levels recorded by the Department of Statistics' retail trade survey fell in the year to March 1989, but more recent statistics were not available at the time of going the press.

Table 21.15 shows relatively static retail sales since 1985.

Retail trade survey

The sample survey of retail trade was last revised in June 1982, based on 15 store-type groupings from the 1977–78 Census of Distribution. At that time coverage was extended to include three new store-type groups: automotive, fuel, and repairs; liquor including licensed accommodation; and accommodation; while restaurants and takeaways, previously part of the other food group, is now a separate store-type group. The survey now follows internationally accepted definitions as used in the New Zealand Standard Industrial Classification.

Table 21.15. RETAIL TRADE SURVEY: SALES*

Store typeQuarter ended
Sep 1985Sep 1986Sep 1987Sep 1988Jun 1989Sep 1989Dec 1989

* Values given exclude GST.

† Excludes licensed accommodation.

 $(million)
Butcher117.6103.4108.7108.398.4100.8118.3
Supermarket/grocer901.71 043.31 130.81 245.31 308.01 350.01 467.8
Other food55.160.061.961.261.464.271.6
Footwear58.763.557.151.361.245.254.9
Clothing and textiles197.8259.3245.1225.0284.8245.2273.5
Furniture208.6318.1229.0213.2237.8179.4227.2
Household appliances212.5286.2238.6231.9245.4216.9249.8
Hardware88.1117.8105.2109.5115.3105.3130.9
Chemist143.4174.1197.4222.3216.9215.8235.9
Department and general stores279.1330.3288.3281.7310.7265.8368.6
Restaurants and takeaways246.3277.3290.5284.7292.6298.7307.4
Liquor incl. licensed accommodation448.9501.5532.9516.6508.3517.4612.4
Accommodation57.462.570.278.677.791.390.3
Other stores365.5507.9484.1549.3573.5573.6680.9
Subtotal3 380.94 105.24 039.84 178.14 392.04 269.64 889.6
Automotive fuel and repairs2 313.82 597.62 475.12 131.22 348.02 069.32 149.0
          All stores5 694.76 702.96 514.96 309.36 739.96 339.07 038.5

Table 21.16. RETAIL TRADE SURVEY: STOCKS

 Stocks as at 31 March
19851986198719881989
 $(million)
Butcher8.77.87.87.26.8
Supermarket/grocer193.3195.7221.4229.6236.9
Other food7.17.08.48.08.3
Footwear90.591.189.281.672.0
Clothing and textiles204.8219.6253.8268.5246.6
Furniture128.3151.7157.6144.7146.1
Household appliances147.9161.0183.0165.8137.1
Hardware64.270.775.480.283.7
Chemist70.184.794.3101.3108.7
Department and general stores252.2261.5309.2263.4273.8
Restaurants and takeaways22.524.625.326.125.3
Liquor incl. licensed accommodation98.199.0109.8111.3105.6
Other stores281.7310.8319.2361.7387.9
Subtotal1 569.61 685.51 854.31 849.51 838.7
Automotive fuel and repairs744.6800.9903.0889.1306.5
          All stores2 314.22 486.42 757.32 738.62 645.2

Seasonal fluctuations and price and population changes. To allow direct comparisons between quarterly figures, seasonally adjusted values of retail trade sales have been prepared. To do this, seasonal adjustment factors were calculated representing, for each quarter, an average over several years of the ratio of sales in this quarter to the trend value for the quarter (the trend values being calculated as appropriately-centred moving averages).

A price index has been prepared for the purpose of deflating the retail sales figures to give a series in dollars of constant purchasing power—i.e., the adjusted series shows the changes in the real volume of retail sales. The principal source of the prices used for this index are the commodity prices used in the Consumers Price Index. The prices have been appropriately weighted and the whole index expressed on the base: December quarter, 1980 (=1000), so that application of the index to the original figures gives a series in constant December quarter, 1980 dollars.

Table 21.17. RETAIL TRADE SEASONALLY ADJUSTED*

Quarter endedTotal sales or turnoverSales per head of population
In current $1980 $In current $In constant Dec qtr 1980 $
As recordedSeasonally adjustedSeasonally adjustedAs recordedSeasonally adjustedSeasonally adjustedPercentage change

* Values giver exclude GST.

† Each quarter on previous quarter.

 $(million)$$$ 
1987—Dec6 949.46 531.03 465.92,0891,9641,042−0.6
1988—Mar6 187.86 492.63 424.21,8481,9391,023−1.8
          Jun6 059.26 164.53 258.21,8251,857981−4.1
          Sep6 309.36 223.23 288.11,9111,885996+ 1.5
          Dec6 870.76 481.43 393.52,0611,9441,018+2.2
1989—Mar6 288.46 631.43 426.71,8731,9751,021+0.3
          Jun6 739.96 855.63 516.02,0212,0551,054+ 3.2
          Sep6 339.06 325.63 197.21,9091,905963−8.6
          Dec7 038.56 626.13 330.62,0961,973992+ 3.0

Credit sales

Hire-purchase. Instalment credit trading in New Zealand has grown steadily since this type of credit was introduced in, New Zealand. Consumer credit is provided either by retailers or finance companies. A major activity of the finance companies is the financing of motor vehicles on hire-purchase.

The Hire Purchase Act 1971 is the governing legislation in New Zealand. Regulations to control hire-purchase trade, including limits on minimum deposit and the maximum period of credit, were removed in September 1983.

Table 21.18. TOTAL ADVANCES UNDER HIRE-PURCHASE AGREEMENTS*

Quarter ended'For the quarterCumulative for the year endedAmount owing under hire- purchase agreements as at end of the quarterPercentage of amount owing overdue as at end of the quarter
* This table contains an element of error as the extent of the survey has not been altered since 1977. The figures should be used with this in mind.
 $(m)$(m)$(m)percentage
1987—Jun399.41 503.02 207.72.4
          Sep402.11 491.02 235.52.5
          Dec373.01 507.52 228.42.4
1988—Mar315.51 490.02 219.22.4
          Jun275.21 365.82 100.92.5
          Sep264.41 228.11 956.72.5
          Dec255.21 110.31 839.12.8
1989—Mar233.51 028.31 711.03.1
          Jun279.91 033.01 680.73.4
          Sep259.61 028.21 593.22.5

The Credit Contracts Act 1981 reformed the law relating to the provision of credit under contracts of various kinds. It includes provisions to prevent oppressive contracts and conducts and ensures that all the terms of contracts are disclosed to debtors before they become irrevocably committed to them. It also includes provisions to ensure that the cost of credit is disclosed on a uniform basis in order to prevent deception and encourage competition, and to prevent misleading credit advertisement.

The official measure of the hire-purchase sales in New Zealand is the Department of Statistics' quarterly hire-purchase survey.

The survey covers large finance companies and retail stores whose annual sales on hire- purchase, and as such, does not give a complete description of hire-purchase. When last compared with a more complete survey, the 1982–83 Census of Distribution recorded 79 percent of all hire-purchase advances. However, the extent of the survey has not been comprehensively revised since 1977.

Credit card sales. A form of short-term credit trading which has grown rapidly during recent years is the use of credit cards as a substitute for cash. This has largely been the result of the introduction of bank credit cards by the four trading banks. The following table gives the value of sales by Bankcard, Visa. American Express and Diners Club. Credit cards were first introduced in New Zealand in 1981.

Table 21.19. VALUE OF CREDIT CARD SALES

Calendar yearTotal advances outstanding*Billings
N.Z. cardholders spending in New ZealandN.Z. cardholders spending overseasTotal

* As at 31 December.

Source: Reserve Bank Bulletin.

  $(million)
1985483.51 305.1237.01 542.1
1986613.31 537.6335.91 873.5
1987692.51 778.7433.12 211.8
1988790.12 030.4524.72 555.1
1989881.92 348.2571.52 919.7

Contributors

  • 21.1 Ministry of Commerce; Consumers' Institute; Department of Labour, Department of Justice.

  • 21.2 Department of Justice; Ministry of Commerce; Securities Commission; New Zealand Stock Exchange; Department of Statistics.

  • 21.3 Insurance Council of New Zealand; Treasury; National Provident Fund; Department of Statistics.

  • 21.4 Department of Statistics.

Historical

Department of Statistics; Consumers' Institute; Department of Labour, Ministry of Commerce; State Insurance Office; Tower Corporation.

Further information

Controls on trading

Licensing Polls (Parl. paper E. 9B).

Report of the Department of Labour (Parl. paper G. 1).

Report of the Ministry of Commerce (Parl. paper G. 46).

Report of the Licensing Control Commission (Parl. paper E. 8).

Sale of Liquor in New Zealand: Report of the Working Party on Liquor. Department of Justice, 1986.

Shop Trading Hours Act 1977. Report of the Advisory Committee, 1988.

Commercial framework

Current Issues in New Zealand Competition and Consumer Law. Commerce Commission, 1988.

Report of the Commerce Commission (Parl. paper G. 34).

Report of the Department of Justice (Parl. paper E. 5).

Report of the Securities Commission (Parl. paper E. 25).

Report of the Law Commission (Parl. paper E. 31F).

Report of the Sharemarket Inquiry Establishment Unit. Department of Justice, 1989.

Insurance and superannuation

Economy Wide Census: Finance, Insurance and Business Services 1987. Department of Statistics.

Report of the Earthquake and War Damage Commission (Parl. paper B. 11).

Report of the Government Life Insurance Corporation (Parl. paper B. 22).

Report of the State Insurance Office (Parl. paper B. 21).

Report of the Government Superannuation Fund (Parl. paper B. 20).

Report of the National Provident Fund (Parl. paper B. 19).

Report on the Actuarial Examinations of the National Provident Fund (Parl. paper B. 19A).

Domestic trade and services

Key Statistics. Department of Statistics (monthly).

Reserve Bank Bulletin. Reserve Bank of New Zealand (quarterly).

Chapter 22. Overseas trade

New Zealand is heavily dependent on overseas trade. The 12-member European Community is New Zealand's largest export market, while Japan, Australia and the United States are the most important national markets for exports. Trade with Canada, the countries of East Asia, the Soviet Union and the Middle East has also become important. Over recent decades New Zealand has been moving away from dependence on dairy, meat and wool exports, and exports from the forestry, horticulture, fishing and manufacturing industries have become significant.

22.1 Administration and development of trade

New Zealand Trade Development Board

Formally established by act of Parliament on 1 December 1988, the board's primary function is to foster the development and expansion of New Zealand's foreign exchange earnings.

The Trade Development Board merges in one organisation the main responsibilities and functions of two earlier bodies. These were the Market Development Board (a government- funded planning, development and marketing body established in 1986) and the former Department of Trade and Industry's Tradecom division, which maintained New Zealand's overseas trade commissioner network and provided overseas points of contact for exporters on a cost-sharing basis.

The new board's policies and activities are directed by a nine-member board appointed by the Minister of External Relations and Trade. It works to increase New Zealand's foreign exchange earnings, not only from the direct export of commodities and manufactured goods, but also from such diverse activities as the sale to overseas buyers of New Zealand services, expertise and technology.

Its interests extend to encouraging expenditure in New Zealand by tourists and other visitors; the use of New Zealand educational facilities and services by foreign students; and the international marketing of New Zealand talents and skills in the arts and entertainment fields.

More significant in the longer term are Trade Development Board initiatives to research and identify opportunities for exporters, including special niche markets, and to encourage individual companies and others to take advantage of them. One of the board's principal functions is to work with industry groups to gain their input into development strategies.

The board maintains a network of trade commissioner and representative offices in cities serving more than 40 regions. These offices provide a range of services for exporters in New Zealand, from market research to special product promotions, as well as advising on such local requirements as customs, labelling, and health regulations.

The board has its headquarters in Wellington, and regional offices in Auckland, Lower Hutt, Christchurch and Dunedin. Export consultants located in the regional offices work with manufacturers, producers, and suppliers to develop export programmes.

Other aspects of the board's activities include its involvement in education programmes for exporters, and promoting awareness among the general public of the need to increase overseas earnings. The board also presents outstanding foreign exchange earners with special export awards and commendations.

Although mainly government-funded, the board earns some revenue from exporters who contract services.

Export credit insurance

The Export Guarantee Office (EXGO) operates in accordance with the Export Guarantee Act 1964. The office's function is to promote export trade by providing insurance against commercial and political risks arising from-the export of goods or services. It also provides guarantees to lending institutions for amounts advanced to exporters which are covered by EXGO insurance.

Customs and excise

Tariff of New Zealand. On 1 January 1988 New Zealand introduced a new tariff based on the international Harmonised Commodity Description Coding System (harmonised system). The harmonised system replaced the previous tariff which had been in force since 1978, and like the previous tariff it has been developed from Customs Co-operation Council Nomenclature. Advantages of the harmonised system include its widespread use by other countries, among them New Zealand's major trading partners, its convenience for statistical purposes, and greater efficiency in administering customs duties.

The tariff has a major role in assistance to industry and is the administrative basis on which New Zealand operates its customs controls and collects duty. There is a requirement that all goods brought into the country should be ‘entered’ for customs and then dealt with according to the relevant provisions of the tariff. The Customs Tariff of New Zealand is actually an act of Parliament, but functions as a manual in two parts, the first dealing with the standard tariff, and the second with concessions. It contains a comprehensive, itemised list of every type of good that might possibly be imported. The structure of the list breaks commodities down into broad categories, which are then further refined into very specific, detailed classifications of goods. Against each item the tariff indicates the appropriate duty payable on that class of good depending on their country of origin. A range of goods obtain preferential rates of duty when they originate in certain countries, e.g., Australia, Canada or least developed countries. The various types of duty used in the tariff include ad valorem duties (a straight percentage of the value for duty of the goods), specific duties (set at a fixed sum of money for a given quantity irrespective of value), or combinations of the two, and concessionary duties (including duty free items, such as travellers' baggage concessions). Ad valorem duties range from duty free to 53 percent. Items whose manufacture is outside the scope of local industry are normally duty free. There is now limited use of specific duties in the tariff, and the trend of policy is in favour of ad valorem duties.

The following extract from the tariff gives an example of an ad valorem duty:

NumberStatistical KeyGoodsRates of Duty
CodeUnitNormal TariffPreferential Tariff
85.17Electrical apparatus for line telephony or line telegraphy, including such apparatus for carrier-current line systems:
8517.10.0000ENo.Telephone sets27.5AU Free CA 20 LLDC Free Pac Free
 10/90 25

The two left-hand columns give identification and statistical codes for the category and sub-category of goods in the example, the middle column gives the relevant description, and the two right-hand columns give the standard and concessionary rates of duty. For the specific item, telephone sets, the standard duty is 27.5 percent of value reducing to 25 percent by October 1990. These goods are duty-free if they originate in Australia, least developed countries, or Pacific Forum Countries and there is a preferential duty of 20 percent if they originate in Canada.

The objectives of the customs tariff have varied with time. Historically it began as a simple revenue collection measure, and later also came to be seen as a means of protection for local industry. It now has trade policy and development assistance objectives as well and is a way of meeting obligations under international trade agreements, and a way of encouraging trade with developing countries.

The Government reviewed the tariff in 1987, and in 1988 a five-step programme was commenced to reduce tariff levels between 1988 and 1992.

Excise. Alcoholic beverages (including beer, wine and spirits) tobacco products, motor vehicles and some petroleum products are subject to excise duty. Excise duty is a tax on the manufacture and removal of selected goods from licensed manufacturing areas (which are licensed under the Customs legislation). The rates of duty applicable to the various products are contained in the third schedule to the Customs Act 1966. An excise duty equivalent is also paid on imported goods of a like kind. See chapter 25, Public sector finance, for information on customs and excise revenue.

GST on imported goods. All goods imported into New Zealand are liable for goods and services tax (GST). The tax is normally payable to the Customs Department at the time of importation. The tax rate effective from 1 July 1989 is 12.5 percent.

Customs Department border operations

The department's border operations provide protection at the border by controlling the import and export of goods and managing the movement of international passengers, aircraft, and vessels in accord with customs immigration, quarantine, and other statutory requirements.

Three main activities are involved in border operations: surveillance at New Zealand's airports; the collection and processing of intelligence on potential breaches of the legislation the Customs Department has a responsibility to enforce; and the protection of air, sea and postal borders against the entry of prohibited persons and goods.

Import licensing

Import licensing is being phased out and now controls less than 5 percent of New Zealand's imports by value. Under the licensing system certain specific goods may not be imported except with a licence.

Extensive import licensing was originally introduced in 1938 as a foreign exchange control measure, and the system has continued to varying degrees since then (see inset).

Its sole purpose now is providing assistance to local manufacturing, and the tariff (import duties) is preferred as the principal means of industry assistance. Only goods covered by industry development plans are still subject to licensing. Each plan, except that for adults’ footwear, provides a programme to end licensing within the next few years. There will be no import licensing for goods of Australian origin after 1 July 1990.

Overseas trade statistics

Import and export statistics are compiled by the Department of Statistics from copies of entries submitted by importers/exporters and their agents to the Customs Department.

Exports. Exports statistics are compiled on an f.o.b. (free on board) valuation basis in New Zealand dollars. In some cases, however, goods are sent on consignment and the selling prices are not known until goods are disposed of at their destination. In these cases f.o.b. values are assessed on the basis of prices current at the time of export.

Re-exports are valued in the same way as goods of New Zealand origin, irrespective of whether the goods exported are exempt from import duty, exported ex-warehouse, or exported under drawback. 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 kiwi fruit, considerable quantities of which are shipped to Belgium, and subsequently re-exported to other European countries. However, 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.

A distinction is made in the trade statistics between exports of New Zealand produce and re-exports of imported goods.

Imports. Two values may be given for imports ‘v.f.d.’ (value for duty) or ‘c.i.f.’ (cost including insurance and freight) values are shown in New Zealand dollars. These values are converted from the foreign currency at the time an import entry is lodged with the Customs Department. The exchange rate used for the conversion is set on a two-weekly basis. It should be noted that where there have been wide fluctuations in the exchange rate for a specific country it is not feasible to convert the New Zealand totals back to a foreign currency total.

The v.f.d., on which customs duty is based, equates approximately with the f.o.b. cost of the goods in the exporting country though the former often excludes special export packaging and other costs incidental to delivering the goods on board ship. Further differences may arise from price fluctuations between the purchase date and the date of shipment, and from different export and domestic price levels. The other valuation, c.i.f., represents the cost to the importer of buying the goods and bringing them to the wharfside in New Zealand,

Import totals do not include gold and current coin.

In the following tables Australia includes the Cocos Islands. Norfolk Island, and Christmas Island. The United States includes American Samoa, Guam, Northern Mariana Islands, Puerto Rico, United States Virgin Islands and United States Minor Outlying Islands.

Balance of merchandise trade

New Zealand's balance of merchandise trade for the trade year ended 30 June 1989, showed a surplus of $2 413.9 million. Total exports were valued at $14 905.4 million (f.o.b.) and imports at $12 491.4 million (c.i.f.).

Table 22.1. VISIBLE BALANCE OF MERCHANDISE TRADE

Year ended 30 JuneTotal exports (f.o.b.)Total imports (c.i.f.)Excessexports(+) or imports(−)
 $(000)
198712 107 21711 800 187+ 307 030
198812 451 52211 606 512+ 845 009
198914 905 37912 491 430+ 2 413 949

Visible trade is not the only factor to be taken into account in considering the balance of payments between countries. Other factors are given in chapter 26, National economy.

22.2 Trading partners

New Zealand's pattern of overseas trade reflects the country's efforts over two decades to diversify both its markets and its range of products. Four markets account for a large proportion of New Zealand's trade: the European Community (EC) Australia, Japan and the United States. There are also important trade links with a wide variety of other countries in Asia, Latin America, the Middle East and Eastern Europe, including the Soviet Union.

While the European Community (increasingly a single trading entity under the single market programme) is New Zealand's largest export market, the most notable development in recent years has been the substantial growth in northern Asia's importance to New Zealand exporters. Together, five northern Asian economies (Republic of Korea, China, Hong Kong, Japan and Taiwan) accounted for 29 percent of total exports and 27 percent of total imports by value in 1988–89.

In the year ended June 1989 the European Community took 18.5 percent of New Zealand's total exports (worth $2.7 billion), and was the country's largest market for butter and wool. Japan and Australia were New Zealand's most important individual trade partners, and on present trends Japan will soon overhaul the European Community as New Zealand's top export market. Two-way trade with Australia was worth NZ$5.3 billion in 1988–89; Japan was not far behind, recording NZ$4.9 billion worth of trade in the same period.

The strong growth in trade with Australia is underpinned by the Australia-New Zealand Closer Economic Relations Trade Agreement, which provides for free trade in goods by 1 July 1990. Already many items are being traded without restriction. On 1 January 1989 the agreement was broadened to cover trade in most services. Work is continuing to further expand the agreement to cover customs and quarantine provisions, business law and standards.

The rising importance of Japan as a trading partner owes much to improved access to the Japanese market for New Zealand goods, particularly primary products. For its part, Japan has assumed an important role as supplier of motor vehicles, machinery, communications and electrical equipment to New Zealand.

Table 22.2. DESTINATION AND ORIGIN OF OVERSEAS TRADE

YearExports*YearImports
United KingdomAustraliaJapanUnited StatesOther countriesUnited KingdomAustraliaJapanUnited StatesOther countries
* Includes re-exports.
 percentage of trade f.o.b. percentage of trade v.f.d.
December yearDecember year
1920755..1551920491721814
1930813..511193047811826
1940901..361940471621223
19506621102119506112..720
1960534313271960441831025
June yearJune year
19703681016301970302181328
1980141313144619801419131440
19859171515441985919201735
19869171416441986917211736
198791515174419871018211635
198891717154219881021181635
19897181814431989822181735

Trans-Tasman trade

The ANZCERTA (CER) Agreement, signed in 1983 and reviewed in 1988, comprises the most extensive bilateral trade agreement entered into by either country. It provides for the removal of tariffs and quantitative restrictions on all goods between the two countries by 1 July 1990, and addresses a range of factors other than straight border controls such as industry assistance, government purchasing preferences, technical barriers to trade, harmonisation of business laws, quarantine procedures, and customs procedures. It also includes a trade in services agreement.

History of closer economic relations with Australia. Preference to British countries in respect of certain commodities was provided for in the earliest tariff in force in New Zealand, that introduced in 1841, and New Zealand made various attempts to introduce reciprocity with Australian colonies during the nineteenth century.

Imperial preference proper was introduced in New Zealand by the Preferential and Reciprocal Trade Act 1903. 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 thereby allowing Australia, amongst other Commonwealth countries, advantages in trade.

The first trade agreement between Australia and New Zealand was entered into in 1922, and was followed by another agreement in 1933. The New Zealand-Australia Free Trade Agreement (NAFTA) governed trans-Tasman trade between 1966 and 1982, the central element of which was a schedule which provided for the elimination of duties on certain goods.

The current Closer Economic Relations agreement had its beginnings in the 1978 ‘Nareen’ declaration between the Hon. Brian Talboys and the Hon. Malcolm Fraser which set out, among other things, the broad concepts for negotiation of the Australia-New Zealand Closer Economic Relations Trade Agreement. The agreement came into force on 1 January 1983, providing for free trade in goods by 1995. The first formal ministerial meeting, held in terms of the agreement, took place in Canberra in 1985, and in October 1986, official talks on Australian export bounties (incentives) in the CER context began in Canberra.

In preparation for the 1988 review of CER which was provided for in the agreement, the two Prime Ministers met at Waitangi on 20 November 1987. They agreed that the 1988 CER review should have three objectives: to bring the date for full free trade in goods forward; to extend the scope of the agreement to cover trade in services; and to seek closer co-operation in areas such as quarantine, customs, and standards. Following a round of negotiations between officials, trade and agriculture ministers from both countries met in Christchurch on 20–21 June 1988 to discuss the review and to agree on documents that would embody the results of the review.

As a result the following agreements were reached:

  • 21 June. Agreed Minute on Industry Assistance signed by trade ministers.

  • 1 July. Memorandum of Understanding on Harmonisation of Business Law signed by the Attorney-General for Australia and the New Zealand Minister of Justice.

  • 16 August. Exchange of letters between officials determining that quantitative export restrictions would cease on 1 July 1990.

  • 17 August. Exchange of letters between Ministers of Customs on harmonisation of customs policies and procedures.

  • Memorandum of Understanding on Technical Barriers to Trade, signed by the Australian Minister for Trade Negotiations and the New Zealand Minister for Overseas Trade and Marketing.

  • Exchange of letters between the Australian Minister of Primary Industries and Energy, and the New Zealand Minister of Agriculture, on the termination of the Memorandum of Understanding on Dairy Products from 1 July 1990 and the conduct of trade in dairy products from that date.

On 18 August 1988, the two Prime Ministers met once again to put the final seal on the reviewed CER agreement, and signed three protocols to the ANZCERTA. The Protocol on the Acceleration of Free Trade in Goods brings forward by five years the date for removal of all remaining tariffs and quantitative restrictions on goods, to 1 July 1990. A Protocol on the Harmonisation of Quarantine Administrative Policies and Procedures was also signed. The Protocol on Trade in Services extends the treaty to include trade in services, and came into operation on 1 January 1989. Disciplines set out in the Agreed Minute on Industry Assistance also came into force on that date.

Further progress was made on 23 February 1989, when Australian commonwealth and state ministers agreed to admit New Zealand to membership of the National Preference Agreement with effect from 1 June 1989, and to extend that agreement to trade in services from 1 July 1989. This gives New Zealand equal treatment to Australian companies in the area of government purchasing.

Table 22.3. TRADE WITH AUSTRALIA

Year ended JuneTotal exports* fob.Imports c.i.f.Excess exports (+) or imports (−)Ratio of trade in Australia's favour

* Includes re-exports.

† Ratio of imports c.i.f. to exports f.o.b. (including re-exports).

 $(000)
1979499,491817,451−317 9601.637:1
1980631,510911,663−280 1531.444:1
1981814,7251 066 158−251 4331.309:1
19821 025 1551 372 636−347 4811.339:1
1983949,0321 446 370−497 3381.524:1
19841 287 1411 809 564−522 4231.406:1
19851 835 6722 303 971−468 2991.255:1
19861 821 7541 897 975−76 2211.042:1
19871 794 9122 119 829−324 9171.181:1
19882 073 7602 468 348−394 5581.190:1
19892 603 8232 672 936−69 1131.027:1

In 1977 exports to Australia made up 12 percent of New Zealand's total exports. While exports to Australia increased by an average 19 percent per year in the following ten year period, exports to all countries also increased by an annual average of 14 percent, and exports to Australia now contribute 17 percent of total exports. Australia supplied 21 percent of New Zealand's imports in 1979 and also 21 percent in 1989.

Major imports and exports. Significant value import items for the 1988–89 year were:

  • Boilers machinery and mechanical appliances $217.3 million;

  • Road vehicles $215.8 million;

  • Non-ferrous metals and articles of, $208.6 million;

  • Aluminium oxide, $200.4 million;

  • Electrical machinery, apparatus and appliances $147.1 million;

  • Plastics and articles of plastic, $127.2 million;

  • Iron and steel and articles of, $124.6 million: and

  • Mineral fuels and oils, $103.6 million.

Significant value export commodities for the 1988–89 year were:

  • Wood and articles of wood. $222.1 million;

  • Boilers, machinery and mechanical appliances, $190.3 million;

  • Paper and paperboard, $186.9 million;

  • Wool and other animal hair $166.1 million;

  • Live horses $133.7 million;

  • Electrical machinery, apparatus and appliances, $126.1 million; and

  • Petroleum productions, $86.0 million.

South Pacific

The South Pacific has become a significant export market, now accounting for 2.8 percent of New Zealand exports. Fiji, Papua New Guinea and French Polynesia are the principal markets in the region. Fiji, in particular, is a significant market, accounting for approximately $120 million of New Zealand's exports in 1988–89. Imports from the region are encouraged by the South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA).

Exports of New Zealand produce (excluding re-exports) to the Pacific island countries amounted to $413.8 million (f.o.b.) and imports (c.i.f.) from these islands came to $113 million in 1988–89.

South Pacific Forum island nations. Under the South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA) New Zealand and Australia provide, on a non- reciprocal basis, duty-free and unrestricted access into their markets for most of the products exported by the Pacific Forum countries. Since 1 July 1988 all Pacific Forum island goods meeting the SPARTECA rules of origin requirements have been able to enter the New Zealand market free of duty and import licensing.

The agreement also includes provision for general economic, commercial and technical co-operation and safeguard provisions relating to dumped and subsidised goods it also provides for special treatment and assistance to be extended to the smaller island countries. It also recognises that the full potential of the access provisions can be achieved only through closer economic co-operation and development assistance aimed at enhancing the export capabilities of the island countries. New Zealand officials visit most of the islands to publicise the benefits of the agreement and discuss opportunities for export to New Zealand with businessmen.

The agreement took effect in 1981 and, except for items subject to revenue duties and a few items of particular sensitivity to New Zealand, the revised customs tariff introduced from that date reflected the duty-free access provisions of the agreement.

In New Zealand's case the preferential tariff applies only to goods of Pacific island origin. These are either wholly obtained in the preferential area or partly manufactured in the area, where the Pacific Island and/or New Zealand content exceeds a nominated level.

Exports of New Zealand produce (excluding re-exports) to the Pacific Forum island countries amounted to $289 million (f.o.b.) and imports (c.i.f.) from these nations came to $69.5 million in 1987–88. The two major countries New Zealand exported to during 1988–89 were Fiji ($141.6 million) and Papua New Guinea ($80.6 million). The top three import country suppliers were Fiji ($57.5 million), Nauru ($26.9 million) and Western Samoa ($1.1.3 million).

Asia

ASEAN countries. The member countries of the Association of South-east Asian Nations (Indonesia, Malaysia, the Philippines, Singapore, Thailand and Brunei) are an increasingly important market for New Zealand for agricultural, forestry, and manufactured exports, although dairy products still account for over half of total exports to the region. New Zealand's total dairy exports to ASEAN—$433 million in 1988–89—rivalled those to the United Kingdom and the United States combined. Malaysia is New Zealand's largest export market for milk powders, with New Zealand exports growing to a total of $247.5 million in the year ending June 1989. Exports to the ASEAN group have increased substantially over the last six years to reach $818.3 million f.o.b. (or 5.65 percent of total exports) in the trade year 1988–89. The major imports from ASEAN countries are petroleum products. New Zealand also continues to place a strong emphasis on bilateral relations with each individual country and has a trade agreement with each ASEAN member (except Singapore, with which New Zealand has a Scientific, Industrial and Technological Agreement, and Brunei).

Malaysia. Under the terms of the trade agreement between Malaysia and New Zealand, both countries agree to grant tariff bindings and/or margins of preference to each other for a limited range of goods of trade interest.

India. Since the New Zealand High Commission in New Delhi was re-opened in 1984, New Zealand's trade relations with India have improved significantly. A major step was taken when a trade agreement was signed in 1986, and the first meeting of the India-New Zealand Joint Trade Committee was held in June 1987.

Korea. For the year ended 30 June 1989, two way merchandise trade between New Zealand and the Republic of Korea reached $768.8 million, 55 percent more than for the previous year. Korea was New Zealand's sixth largest export market, accounting for exports worth $468.4 million. This represents an increase of 63 percent over the 1987–88 figures. Hides, skins, aluminium ingots and sawlogs were the main contributors to the increase, but other saw logs commodities also registered good growth. The principle export earners were hides and skins which showed the most significant growth and increased by 117 percent to reach its highest ever level of $131.5 million. Exports of aluminium ingots more than doubled to $40.2 million. Notable value increases were also recorded for sheepmeat, wool and caseins. New Zealand and Korea signed a trade agreement in April 1978, which superseded a 1967 agreement.

China. Trade between New Zealand and China has witnessed significant expansion since the normalisation of relations between the two countries in 1972, and the signing of a trade agreement in 1973. New Zealand exports to China increased from $1.7 million in 1971–72 to $538.9 million in 1988–89. In 1989 China ranked as New Zealand's fifth largest export market. In 1988–89 China was the single largest buyer of New Zealand wool ($421.6 million f.o.b). By value, other leading exports were animal fats, sawlogs, pulp and paper and dairy products. China's total exports to New Zealand have increased at a slower rate of 11.5 percent and reached $141.1 million in 1988–89.

The Government has identified agriculture/horticulture, forestry, and science and technology as high priority areas and has developed strategies to further enhance the Government's ability to support New Zealand exporters in these fields. New Zealand has participated in livestock and pasture development projects in China and is examining a range of forestry possibilities. Prospects for co-operative manufacturing ventures in light industry have already been realised in some cases with several joint ventures in place and others in the pipeline. Measures to reassert central control over the economy and slow the hyper growth and inflation of recent years were introduced in the latter half of 1988. These measures have been pursued through 1989 creating a slowdown in the Chinese economy.

Japan. In the 1988–89 trade year, Japan was New Zealand's second largest export market and second largest source of imports. Two way merchandise trade totalled $4 992 million, making Japan New Zealand's second largest national trading partner. The principal export earner was unwrought aluminium ($696 million), with fish, wool and kiwi fruit next. Other major exports were beef, dairy products, fresh fruit and vegetables, wool, meat and iron ore. Efforts continue to be made to improve access conditions for New Zealand exports. Japan has committed itself to an ongoing programme of import liberalisation. For New Zealand it has been felt most strongly in beef where exports have increased by over 65 percent in the last three years. New Zealand and Japan continue to pursue a closer trade and economic relationship. Regular consultations are held between the two governments at ministerial and official level Close contacts are also maintained between the business communities of both countries.

The Americas

United States. The United States was New Zealand's third largest country export market in the 1988–89 trade year, when total exports reached $2 008.1 million, an increase of 9.6 percent compared with $1 832.5 million in the previous year. The United States is New Zealand's largest market for beef, veal, and casein, and a major market for fish and cheese. Other important exports to the United States in 1988–89 were fruit and vegetables (mainly kiwifruit and apples), hides and skins, wool, lamb, and manufactured products—textiles, iron and steel, metal and industrial products, furniture and apparel.

There are a number of restraints imposed on New Zealand's agricultural-based exports to the United States. American legislation dating from 1979 sets an annual limit on imports of beef and veal using a counter-cyclical formula which increases the level of permissible imports when United States domestic production is low, and vice versa. After three years of unrestricted access, ‘voluntary’ restraints were imposed for the last few months of 1987, but lifted again in 1988. No restraints were imposed in 1989. Since the 1950s an array of restrictive import quota controls have been applied to dairy products, especially butter, cheese and milk powder. These controls have severely limited New Zealand's ability to expand its sales of dairy products to the United States.

Canada. Canada is New Zealand's twelfth largest export market, taking total exports of $256 million in 1988–89. Beef and veal were the main exports to Canada. Other major items were lamb, hides and skins, iron and steel, fruit and vegetables, wool, cheese, fish and prefabricated metal products.

The Canadian Meat Import Act of 1981 allows the Canadian Government to restrict beef imports. Quotas were imposed for the first time in 1985 to restrain subsidised European Community exports, with New Zealand exports also being subject to a quota. The market has remained open since 1986.

In 1981 a Trade and Economic Co-operation Agreement (TEC) was signed between the Governments of New Zealand and Canada. The agreement came into force in 1982 and replaced the 1932 trade agreement and the 1970 amending protocol, as well as the 1973 interim preferences agreement.

Latin America. Mexico and Venezuela have become useful markets for New Zealand, particularly for dairy products. Total New Zealand exports to these countries in 1988–89 were $139 million to Mexico and $114 million to Venezuela. A New Zealand/Mexico Scientific and Technical Agreement (STC) was signed with Mexico in 1983, and in 1986 Memoranda of Understanding on Trade were signed with Brazil and Ecuador.

Western Europe

European Community. New Zealand and the European Community have a strong trading relationship, involving not only direct bilateral trade but also shared interests in the international trading system. The community of 12 member states is New Zealand's largest a trading partner, accounting for 18.47 percent of New Zealand's exports and 18.38 percent of imports for the year ended June 1989.

In addition, the United Kingdom, Italy, the Federal Republic of Germany, and Belgium figure individually among New Zealand's top export markets (ranked fourth, eighth, ninth, and tenth respectively). Trade in visible goods between New Zealand and the European Community in 1988—89 showed a balance in New Zealand's favour of NZ$400 million. When ‘invisibles’ (sec: glossary) are included, the balance is overwhelmingly in the community's favour. New Zealand's principal exports to the community are wool, lamb, butter, apples, kiwifruit, leather, hides and skins. Sales of manufactured items are increasing. Special terms of access to the community market have been negotiated for New Zealand sheepmeat and butter.

Protocol 18 of the Treaty of Accession negotiated at the time of British entry to the community guaranteed New Zealand continued access to the British market for specified quantities of butter for an initial period of five years. Successive negotiations have secured access for decreasing amounts of butter since that time. In September 1989 the community's Council of Ministers granted access from 1989 until 1992, on a scale diminishing from 64 500 tonnes per year in 1989 to 55 000 tonnes in 1992. The Council of Ministers also reduced the import levy paid on New Zealand butter from 25 percent to 15 percent of the community's intervention price for salted butter, with effect since 1 January 1989.

New Zealand's sheepmeat trade with the community is limited by a voluntary restraint agreement, whereby New Zealand has undertaken to limit exports of sheepmeat to the community to 205 000 tonnes annually until the end of 1992, in return for a reduction in the European Community import tariff from 20 percent to zero from 1 January 1989.

Imports from the community cover a wide range of agricultural items (particularly cheese and processed foods), industrial goods and componentry, plant and transport equipment, pharmaceuticals and sophisticated consumer items.

Outside the direct trading relationship, New Zealand and the European Community, as the world's two largest exporters of dairy products, co-operate both bilaterally and in the context of the GATT's International Dairy Arrangement to maintain satisfactory world prices and secure the stability of markets.

United Kingdom. Although no longer New Zealand's predominant trading partner the United Kingdom remains an important market for exports. In 1950 the United Kingdom took 66 percent of New Zealand's exports but by the year ended June 1989 its share had fallen to 7 percent, reflecting New Zealand's efforts to diversify export markets and products following British entry to the European Community. The United Kingdom remains New Zealand's largest market for butter and lamb.

Eastern Europe

New Zealand's exports to the region largely reflect the Eastern European need to meet occasional shortfalls in domestic production of food (dairy products and mutton), and the requirement for raw materials for manufacturing (wool, tallow, and hides). This fluctuating demand is seen in the statistics for total exports to Eastern European countries (other than the Soviet Union) for the last three trade years: 1986–87, $68.9 million, 1987–88, $65 million, 1988–89, $53.7 million (f.o.b). Emphasis is being placed on diversification from the narrow range of traditional exports, and newer products exported to Eastern Europe include breeding sheep, seeds, milking equipment, animal identification ear tags, and pharmaceutical raw materials.

New Zealand imports from Eastern Europe in the same period have been more stable: 1986–87, $18.2 million, 1987–88, $21.2 million, 1988–89, $20.6 million (c.i.f.). Goods imported were chemicals, machinery, textiles, glassware, fertilisers, rail and motor vehicles.

Soviet Union. The Soviet Union was New Zealand's seventh largest export market in 1988–89. Total exports to the Soviet Union were $351.3 million (f.o.b.) in the 1988–89 trade year, an increase from $146.4 million (f.o.b.) in 1987–88. Meat, dairy products and wool account for almost all of this trade.

New Zealand imports from the Soviet Union in the trade year 1988–89 increased to $23.9 million (c.i.f.) from $17.2 million (c.i.f.) the previous year. Goods imported were mainly machine tools, fertiliser, chemicals and motor vehicles.

Middle East

In the early 1970s, before Britain's entry into the European Community and the ‘oil shock’ of 1973, the annual value of New Zealand's exports to the Middle East averaged $3 million. In 1985 exports to the region, mostly sheepmeat and dairy products, reached $840 million (f.o.b) (7.4 percent of total exports), but there has been a decline since then to $440 million in 1988 (3.4 percent of total exports). The fall-off was mainly due to the severe drop in the price of oil at the beginning of 1986, which reduced the buying power of the Gulf countries. Exports to Iran and Iraq were most affected. Over the latter years of ‘he Gulf War, which lasted from 1980 to 1988 these two countries were spending a large proportion of their hard currency earnings on arms while requiring deferred payment terms for other goods.

The volume of sheepmeat shipped to Iran, New Zealand's largest Middle East market, fell by almost two-thirds between 1985 and 1988, although in the 1989 trade year the reduction was mainly due to the unavailability of large quantities of sheepmeat for export, rather than payment difficulties. However, Iran continues to be New Zealand's biggest Middle East customer, taking over $140 million worth of exports (mainly lamb and wool), followed by Saudi Arabia with receipts of over $85 million for a wide variety of primary and manufactured products. Nearly three-quarters (73 percent) of New Zealand's imports of crude oil products were obtained from the Middle East in 1989, of which Saudi Arabia provided 90 percent of that amount.

Developing countries

New Zealand responded to the recommendation of the United Nations Committee on Trade and Development (UNCTAD) that developed countries introduce ‘Generalised Systems of Preference’ in favour of developing nations, and special developing country rates were incorporated in the customs tariff from 1972.

When New Zealand introduced a revised Generalised System of Preference (GSP) in 1976 the new scheme was based on the ‘negative list’ concept—where all goods are subject to preference, unless specifically exampted—and significantly increased the GSP coverage granted previously. Every effort was made to keep the list of exceptions to the minimum to give the greatest possible coverage to the scheme.

The revised GSP was based on an intention to maintain, in terms of GSP criteria, specified margins of preference for developing countries up to a level of 20 percent. Since 1976 special provisions have also been made for the duty-free importation of specified handicraft products.

The emergence of some developing countries as newly industrialised or oil rich has necessitated a review of their entitlement to preferential tariff treatment into New Zealand. In 1984 the GSP was reviewed. The result was a policy of country graduation whereby the GSP scheme would no longer apply to those countries whose per capita gross national product (GNP) was over 70 percent of New Zealand's per capita GNP. Since 1985 the policy of country graduation has resulted in 17 countries being graduated from New Zealand's GSP scheme, the most recent being Israel in 1989. It was also decided that any country affected by the graduation policy could apply for the reinstatement of LDC (developing country) duty rates for specific tariff items. Several items have since been reinstated including 105 items for Hong Kong in 1986 and some 34 items for Singapore and Brunei. A 1988 review of GSP decided to reinstate countries when their GNP per capita dropped below the 70 percent benchmark. Trinidad and Tobago was the first country to be reinstated the following year.

In 1989 a further refinement to the New Zealand scheme was introduced resulting in product graduation. LDCs are no longer accorded LDC tariff preferences when their exports to New Zealand exceed benchmark levels of 25 percent of total imports in a particular tariff item and a total value for duty in excess of NZ$100 000. There is provision for reinstating a product to GSP status if import figures fall below the threshold (NZ$100 000 and 25 percent) and remains so for two years after graduation has occurred. The dollar value threshold will be reviewed in 1991.

From 1 July 1989 goods from 12 LDCs imported under 150 tariff items have become subject to the normal tariff. LDCs affected are Brazil, Chile, China, India, Indonesia. Malaysia, The Philippines. Republic of Korea, Thailand, Turkey and Zimbabwe, as well as Taiwan.

Duty free treatment for least developed countries (LLDCs) was also introduced as a result of the 1984 tariff review. As of 1 January 1988 the list of beneficiaries of the New Zealand GSP scheme includes 142 countries and territories, of which 40 countries are listed as beneficiaries of special tariff treatment as least developed countries. The list also includes Pacific Forum island countries, which also enjoy duty free treatment under non-reciprocal free trade arrangements. From 1 July i 986 the developing country rate is being calculated at 80 percent of the normal tariff rate where new and developing country rates are being created or where normal rates are being reduced. The coverage of the GSP was extended across the board with the exception of certain items subject to industry plan (e.g., motor vehicles, apparel, textiles and footwear).

Other trade obligations

New Zealand is also a party to certain commercial treaties, conventions, and arrangements with countries outside the Commonwealth resulting from direct negotiations with the countries concerned. In practice, some of the earlier arrangements (which generally provided for reciprocal most-favoured-nation tariff treatment) became superseded by New Zealand's accession to the General Agreement on Tariffs and Trade. Trade agreements which are still operative include those with Switzerland (1938 and since extended to Liechtenstein in 1956); the Federal Republic of Germany (1959, amended 1977); Japan (1958, amended 1962); the Union of Soviet Socialist Republics (1963, protocol 1973); the Polish People's Republic (1965); Republic of Korea (1967, amended 1976); People's Republic of Bulgaria (1968); Republic of Philippines (1968, amended 1976); Hungarian People's Republic (1970, revised and superseded 1978); The People's Republic of China (1973); Iran (1974, revised 1985); Socialist Federal Republic of Yugoslavia (1975); Arab Republic of Egypt (1977); German Democratic Republic (1978); Indonesia (1978); the Socialist Republic of Romania (1979); Thailand (1981); the Republic of Iraq (1982); and India (1986). In addition, in 1988 New Zealand concluded with the People's Republic of China an Agreement on the Promotion and Protection of Investments.

Table 22.4. TRADE WITH COUNTRIES, YEAR ENDED JUNE 1989

CountryTotal exports f.o.b.*Imports c.i.f.

* Includes re-exports.

† ASEAN member countries.

‡ Includes minor trading partners not shown.

§ From 1 July 1986 Middle East includes Algeria, Morocco, Sudan and Tunisia.

 $(million)
OECD countries
     EC countries
               Belgium272.184.0
               Denmark30.760.9
               France204.8181.0
               Germany, West307.5540.4
               Greece58.318.1
               Ireland25.837.7
               Italy316.8216.2
               Luxembourg1.5
               Netherlands171.2138.1
               Portugal19.716.0
               Spain95.749.1
               United Kingdom1 036.2954.2
               Destination unknown—E.C.183.4
                              Total2 721.92 297.2
     Other OECD countries
               Australia2 608.92 672.9
               Austria4.034.2
               Canada261.2254.6
               Finland5.949.6
               Iceland0.30.3
               Japan2 660.32 337.7
               New Zealand (re-imports)63.0
               Norway3.938.6
               Sweden30.8178.9
               Switzerland44.4112.6
               Turkey27.013.4
               United States2 008.12 067.3
               Yugoslavia10.43.4
                              Total10386.910 123.6
China
               People's Republic of539.5141.1
               Taiwan281.4402.3
                              Total820.9543.4
Asia
               Bangladesh3.65.9
               Brunei Darussalam0.3
               Burma0.20.2
               Hong Kong247.8216.2
               India82.345.1
               Indonesia149.682.1
               Korea, Republic of468.8300.4
               Macau1.63.0
               Malaysia247.581.5
               Nepal17.80.1
               Pakistan47.324.9
               Philippines159.732.8
               Singapore174.9149.2
               Sri Lanka29.95.9
               Thailand107.157.8
               Vietnam0.20.2
                              Total1 738.71 005.8
Oceania
               Cook Islands28.25.8
               Fiji141.657.5
               French Polynesia50.30.2
               Kiribati1.5
               Nauru0.526.9
               New Caledonia32.4
               Niue4.2
               Papua New Guinea80.67.3
               Samoa29.411.3
               Solomon Islands12.20.6
               Tonga22.63.8
               Tuvalu0.7
               Vanuatu8.30.1
                              Total413.8113.7
South, Central America and Caribbean
               Argentina2.318.3
               Bahamas1.6
               Barbados13.1
               Belize1.0
               Bermuda5.60.1
               Brazil1.060.6
               Chile11.311.8
               Colombia0.60.7
               Cuba
               Dominican Republic21.3
               Ecuador1.026.1
               El Salvador4.50.2
               Grenada1.0
               Guadeloupe3.4
               Guatemala3.70.1
               Haiti0.7
               Honduras1.20.7
               Jamaica26.03.3
               Martinique3.5
               Mexico139.735.1
               Netherlands Antilles1.20.4
               Panama9.6
               Peru22.90.3
               Trinidad and Tobago10.00.1
               Uruguay1.10.2
               Venezuela114.42.4
                              Total404.9162.7
     Middle East§
               Algeria10.5
               Bahrain9.23.4
               Egypt29.60.1
               Iran130.51.5
               Iraq1.1
               Israel1.217.7
               Jordan23.4
               Kuwait14.4
               Lebanon3.0
               Libya6.7
               Morocco4.622.3
               Oman14.615.0
               Qatar4.12.1
               Saudi Arabia113.2383.0
               Syria1.5
               Tunisia3.8
               United Arab Emirates33.534.5
               Yemen21.6
               Yemen, Democratic0.5
                              Total427.1479.6
Eastern Europe
               Czechoslovakia21.17.2
               Germany, East6.10.6
               Hungary2.92.2
               Poland11.52.7
               Romania3.6
               Soviet Union351.923.9
                              Total395.741.0
Africa
               Cameroon, Republic of0.5
               Gabon0.4
               Ghana0.80.4
               Kenya2.22.2
               Malawi1.82.6
               Mauritius23.00.3
               Niger3.0
               Nigeria3.5
               South Africa29.89.8
               Swaziland0.4
               Tanzania1.1
               Zambia0.20.5
               Zimbabwe2.53.7
                              Total71.521.2
Other countries
               Cyprus3.40.2
               Malta3.5
               Destination unknown (Non-EC)1.8
                              Total11.40.5
                              Total, all countries14 671.112 491.4
               Bunkering ships or aircraft194.3
               Passengers' duty-free goods23.0
               Ships' stores17.0
                              Total, merchandise trade14 905.412 491.4

22.3 Commodity trade

Exports

New Zealand's export trade has become more diversified in recent years, as regards both products and markets. The traditional export commodities—dairy products, meat, and wool—remain the backbone of export trade. However, commodities produced by the fishing, forestry, horticultural, and manufacturing industries are of increasing importance.

Meat and meat preparations amounted to 16.3 percent ($2 435.8 million) of New Zealand produce exported. The main countries purchasing beef and veal were the United States ($849.4 million), Canada ($123.0 million) and Japan ($114.0 million). Lamb exports to the United Kingdom amounted to $272.3 million. The next largest customer was Iran ($84.2 million), followed by West Germany ($56.4 million) and Japan ($49.5 million). Lamb exports totalled $855.7 million for the 1988–89 trade year.

Table 22.5. PRINCIPAL COMMODITIES EXPORTED. 1988–89*

Commodity (New Zealand produce)Unit of quantityQuantityf.o.b. $(000)
* Year ended 30 June.
Racehorsesno.4,326146,173
Beeftonne313,1011 243 968
Lamb—
     Carcassestonne192,740363,715
     Boneless or cutstonne143,737492,030
Muttontonne94,292152,064
Other meat and edible offalstonne48,490130,968
Skim-milk powdertonne133,412368,651
Other dried milk and creamtonne199,777540,313
Buttertonne225,509609,214
Cheesetonne93,633319,819
Fish, fresh, chilled or frozentonne150,026537,097
Crayfish, fresh and simply preservedtonne2,42473,337
Apples, fresh, whole fruittonne174,275154,940
Kiwifruit, freshtonne193,355455,110
Lamb pelts(000)30,419288,114
Sheep pelts(000)11,375112,854
Sawn timber and sawlogscu. metre2 026 580294,167
Wood pulp, mechanicaltonne313,901153,237
Wood pulp, sulphate, not dissolving gradestonne254,328245,586
Wool, greasytonne105,342651,764
Wool, slipetonne12,69164,658
Wool, scouredtonne158,8131 07 9 467
Sausage casings, naturalhank (000)7,579122,467
Petroleum crudetonne269,53852,814
Tallow, inedibletonne128,23369,658
Caseintonne35,060260,344
Caseinatestonne9,31278,871
Newsprinttonne260,933149,517
Kraft paper and kraft cardboardtonne69,87661,523
Yam of wool or hairtonne8,095106,524
Aluminium, unwroughttonne243,992775,214

Exports of dairy products increased by 31.3 percent ($877.0 million) over the 1987–88 figure ($1 429.7 million). Major customers of cheese exports ($319.8 million), were Japan ($103.5 million), the United Kingdom ($50.2 million) and the United States ($44.3 million). Total butter exports amounted to $609.2 million during 1988–89, The United Kingdom purchased $242.5 million of butter. Other main countries were the Soviet Union ($132.7 million) and Japan ($63.2 million).

The value of wool exports increased by 10.7 percent from $1 621.9 million in 1987–88 to $1 795.9 million in 1988–89. The People's Republic of China purchased the largest amount ($421.9 million), with the Soviet Union ($162.7 million), Japan ($150.0 million), the United Kingdom ($133.3 million) and Belgium ($99.6 million) following.

The export of fish, including crustaceans and molluscs is increasing in importance, with the 1988–89 value being $789.9 million.

Kiwifruit exports amounted to $455.1 million, 55.2 percent of total fruit and vegetable exports ($824.2 million).

Other significant exports during the 1988–89 trade year were unwrought aluminium ($775.2 million), leather hides, skins and pelts ($725.3 million), wood pulp ($406.0 million), casein ($260.3 million), timber ($349.3 million) and newsprint ($149.5 million).

Imports

Australia was New Zealand's principal supplier with $2 672.9 million (c.i.f.) worth of goods imported during 1988–89. Japan was the next largest supplier with $2 337.7 million, followed by the United States ($2 067.3 million) and the United Kingdom ($954.2 million).

Machinery and transport equipment were the largest group of commodities imported in the 1988–89 trade year, with $4 960.7 million (c.i.f.). Machinery and mechanical appliances accounted for $1 867.0 million, and $1 456.8 million was spent on vehicle purchases and $1 316.4 million for electrical machinery and equipment.

Live animals, foods, fats, beverages and tobacco imports were $886.1 million. Textile yarn, fabrics and made-up articles, etc., amounted to $767.0 and iron and steel imports were valued at $406.8 million.

Imports of mineral fuels, lubricants and related materials totalled $660.7 million, or 5.3 percent of total imports.

Table 22.6. PRINCIPAL COMMODITIES IMPORTED. 1988–89*

CommodityUnit of quantityQuantityv.f.d. $(000)
* Year ended 50 June. Excludes hardboards, softboards, wallpaper, lincrusta, and window transparencies.
Sugar, not refinedtonne119,20843,671
Coffee, rawtonne5,68216,481
Crude rubber, including synthetic and reclaimedtonne18,80531,276
Crude petroleumtonne (000)2,573432,792
Motor spiritslitre (000)328,55568,311
Fertiliserstonne304,57152,716
Aluminium oxidetonne466,225191,539
Paper and paperboard†tonne81,786198,476
Textile yarn and threadtonne12,80698,163
Iron and steel, universals, plates and sheetstonne99,960161,686
Iron and steel, tubes, wire, angles, barstonne90,945122,007
Copper and copper alloys, excl. foil, powders and flakestonne18,951103,647
Unwrought zinctonne19,14848,846
Internal combustion engines (not aircraft)no.101,89851,397
Video recording or reproducing apparatusno.151,72667,238
Microwave ovensno.117,46630,501
Motorcars—assembledno.71,413409,237
                  —unassembledno.59,320484,288
Buses, trucks, vans—unassembled and assembledno.18,976192,637

Table 22.7. TRADE BY STANDARD INTERNATIONAL CLASSIFICATIONS, 1988–89*

Section and divisionExports of produce f.o.b.Imports v.f.d.
* Year ended 30 June.
 $(000)
0   Food and live animals chiefly for food
     00 Live animals chiefly for food212,12438,566
     01 Meat and meat preparations2 424 91914,884
     02 Dairy products and birds' eggs1 875 7365,961
     03 Fish, crustaceans, and molluscs, and preparations thereof818,99347,177
     04 Cereals and cereal preparations51,54996,331
     05 Vegetables and fruit886,185181,459
     06 Sugar, sugar preparations, and honey30,75477,697
     07 Coffee, tea, cocoa, spices, and manufactures thereof56,04194,446
     08 Feeding stuff for animals (not including unmilled cereals)73,70324,312
     09 Miscellaneous edible products and preparations31,75677,718
          Total, section 06 461 761658,551
1   Beverages and tobacco
     11 Beverages43,777103,357
     12 Tobacco and tobacco manufactures3,11222,234
          Total, section 146,888125,591
2   Crude materials, inedible, except fuels
     21 Hides, skins, and furskins, raw556,19013,406
     22 Oil seeds and oleaginous fruit2,52613,121
     23 Crude rubber (including synthetic and reclaimed)1,17731,276
     24 Cork and wood349,23024,843
     25 Pulp and waste paper406,00810,588
     26 Textile fibres (other than wool tops) and their wastes1 822 96234,693
     27 Crude fertilisers and crude minerals other than coal. etc.17,85976,152
     28 Metalliferous ores and metal scrap50,957195,381
     29 Crude animal and vegetable materials, n.e.s.253,41430,880
          Total, section 23 460 323430,340
3   Mineral fuels, lubricants, and related materials
     32 Coal, coke, and briquettes37,4021,510
     33 Petroleum, petroleum products, and related materials146,714594,647
     34 Gas, natural and manufactured481145
          Total, section 3184,598596,302
4   Animal and vegetable oils, fats, and waxes
     41 Animal oils and fats76,282621
     42 Fixed vegetable oils and fats99341,740
     43 Animal and vegetable oils and fats, processed, and waxes of animal or vegetable origin39,1835,475
          Total, section 4116,45747,836
5   Chemicals and related products n.e.s
     51 Organic chemicals117,876179,815
     52 Inorganic chemicals2,443122,418
     53 Dyeing, tanning, and colouring materials9,85979,967
     54 Medicinal and pharmaceutical products47,596308,072
     55 Essential oils and perfumes, etc.50,442104,247
     56 Fertilisers, manufactured19,93352,702
     57 Explosives and pyrotechnic products23,137315,601
     58 Artificial resins and plastic materials, and cellulose esters and ethers33,077133,062
     59 Chemical materials and products, n.c.s.397,045161,846
          Total, section 5701,4091 457 730
6   Manufactured goods classified chiefly by material
     61 Leather, leather manufactures, n.e.s., and dressed furskins192,87119,942
     62 Rubber manufactures, n.e.s.32,167115,296
     63 Cork and wood manufactures (excluding furniture)158,32225,108
     64 Paper, paperboard, and articles of paper pulp, of paper, or of paperboard298,063260,855
     65 Textile yarn, fabrics, made-up articles, n.e.s., and related products242,611580,715
     66 Non-metallic mineral manufactures, n.e.s.44,345189,991
     67 Iron and steel217,120293,822
     68 Non-ferrous metals897,388253,184
     69 Manufactures of metal, n.e.s.159,050301,727
          Total, section 62 241 9372 040 640
7   Machinery and transport equipment
     71 Power generating machinery' and equipment10,528204,450
     72 Machinery specialised for particular industries114,096454,127
     73 Metalworking machinery16,36846,953
     74 General industrial machinery and equipment, n.e.s., and machine parts, n.e.s.142,093494,396
     75 Office machines and automatic data processing equipment5,172681,898
     76 Telecommunications, sound recording and reproducing apparatus and equipment35,005626,423
     77 Electrical machinery, apparatus and appliances, n.e.s., and electrical parts thereof189,123526,581
     78 Road vehicles (including air-cushion vehicles)73,0381 236 559
     79 Other transport equipment73,218305,129
          Total, section 7658,6414 576 515
8   Miscellaneous manufactured articles
     81 Sanitary, plumbing, heating, etc., fixtures and fittings, n.e.s.8,04038,082
     82 Furniture and parts thereof46,82669,054
     83 Travel goods, handbags, and similar containers1,73928,225
     84 Articles of apparel and clothing accessories69,588120,377
     85 Footwear13,67060,228
     87 Professional, scientific, and controlling instruments and apparatus, n.e.s43,911249,135
     88 Photographic apparatus, optical goods, watches and clocks8,250184,078
     89 Miscellaneous manufactured articles, n.e.s.191,274714,406
          Total, section 8383,3281 463 585
9   Commodities and transactions not classified elsewhere in the S.I.T.C.
          Total, section 9229,0024,600
          Total New Zealand produce exports14 484 344
          Re-exports421,035
          Grand total, merchandise trade14 905 37911 401 688

Table 22.8. TRADE BY HARMONISED SYSTEM CLASSIFICATION, 1988–89*

HS ChapterYear ended June 1989
Exports of produce f.o.b.Imports v.f.d.
* Year ended 30 June.
 $(000)
01 Animals live212,12438,566
02 Meat and edible meat offal2 420 6529,976
03 Fish and crustaceans, molluscs, and other aquatic invertebrates789,9149,235
04 Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included1 877 0225,016
05 Animal originated products not elsewhere specified or included194,04113,435
06 Trees and other plants, live; bulbs, roots and the like; cut flowers and ornamental foliage30,6881,853
07 Vegetables and certain roots and tubers, edible166,86321,395
08 Fruit and nuts, edible; peel of citrus fruit or melons657,29892,440
09 Coffee, tea, mate and spices11532,254
10 Cereals20,30662,227
11 Products of the milling industry, malt; starches; inulin; wheat gluten6,96212,593
12 Oil seeds and oleaginous fruit; miscellaneous grains, seeds and fruit, industrial or medicinal plants; straw and fodder31,00922,747
13 Lac; gums, resins and other vegetable saps and extracts2,1244,207
14 Vegetable plaiting materials: vegetable products not elsewhere specified or included51,931
15 Animal or vegetable fats and oils and their cleavage products; prepared animal fats; animal or vegetable waxes119,48649,564
16 Meat, fish or crustaceans, molluscs of other aquatic invertebrates: preparations thereof44,21943,360
17 Sugars and sugar confectionery26,23877,040
18 Cocoa and cocoa preparations55,79258,970
19 Preparations of cereals, flour, starch or milk; pastrycooks' products25,60639,190
20 Preparations of vegetables, fruit, nuts or other parts of plants60,17267,984
21 Miscellaneous edible preparations20,06371,966
22 Beverages, spirits and vinegar45,192103,660
23 Food industries, residues and wastes thereof; prepared animal fodder73,67724,302
24 Tobacco and manufactured tobacco substitutes3,11222,233
25 Salt; sulphur; earths, stone; plastering materials, lime and cement14,87575,585
26 Ores, slag and ash18,2631,918
27 Mineral fuels, oils and products of their distillation; bituminous substances; mineral waxes184,682596,414
28 Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radio-active elements and of isotopes2,443313,958
29 Organic chemicals113,582195,378
30 Pharmaceutical products45,212286,345
31 Fertilisers24,17753,028
32 Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints, varnishes; putty, other mastics; inks8,63779,756
33 Essential oils and resinoids; perfumery, cosmetic or toilet preparations39,92265,081
34 Soap, organic surface-active agents; washing, lubricating, polishing, scouring preparations; artificial, prepared waxes; candles etc., modelling pastes, dental waxes, preparations with a basis of plaster12,81850,103
35 Albuminoidal substances; modified starches; glues; enzymes377,72314,422
36 Explosives; pyrotechnic products; matches, pyrophoric alloys; certain combustible preparations1,2148,973
37 Photographic or cinematographic goods1,33780,874
38 Chemical products n.e.s.22,291131,461
39 Plastics and articles thereof135,284547,764
40 Rubber and articles thereof35,882149,530
41 Raw hides and skins (other than furskins) and leather725,33627,972
42 Articles of leather, saddler)' and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut)13,11037,148
43 Furskins and artificial fur, manufactures thereof47,2532,758
44 Wood and articles of wood; wood charcoal501,96844,339
45 Cork and articles of cork5,5835,612
46 Manufactures of straw, esparto or other plaiting materials; basketware and wickerwork1674,350
47 Pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or paperboard: paper and paperboard and articles thereof406,00810,588
48 Paper and paperboard; articles of paper pulp, of paper or paperboard304,634263,759
49 Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans41,432215,106
50 Silk34,297
51 Wool, fine or coarse animal hair, horsehair yarn and woven fabric1 932 08521,482
52 Cotton2,021104,460
53 Vegetable textile fibres; paper yarn and woven fabrics of paper yarn10113,304
54 Man-made filaments1,73272,727
55 Man-made staple fibres3,706124,690
56 Wadding, felt and nonwovens, special yams; twine, cordage, ropes and cables and articles thereof10,75630,511
57 Carpets and other textile floor coverings75,21531,725
58 Fabrics; special woven fabrics, tufted textile fabrics, lace, tapestries, trimmings, embroidery6,48918,118
59 Textile fabrics; impregnated, coated, covered or laminated; textile articles of a kind suitable for industrial use4,26657,958
60 Fabrics; knitted or crocheted14,59748,686
61 Apparel and clothing accessories; knitted or crocheted17,16146,092
62 Apparel and clothing accessories; not knitted or crocheted12,84058,682
63 Textiles, made up articles; sets; worn clothing and worn textile articles; rags15,72978,370
64 Footwear, gaiters and the like; parts of such articles13,70060,228
65 Headgear and parts thereof2,9685,466
66 Umbrellas, sun umbrellas, walking-sticks, seat sticks, whips, riding crops; and parts thereof702,627
67 Feathers and down, prepared; and articles made of feather or of down; artificial flowers; articles of human hair485,323
68 Stone, plaster, cement, asbestos, mica or similar materials; articles thereof18,84842,660
69 Ceramic products5,34741,304
70 Glass and glassware19,04891,545
71 Natural or cultured pearls, precious, semi-precious stones, precious metals, metals clad with precious metal, articles thereof; imitation jewellery; coin67,46756,238
72 Iron and steel212,115243,875
73 Iron or steel articles104,747162,941
74 Copper and articles thereof58,755111,307
75 Nickel and articles thereof5983,341
76 Aluminium and articles thereof878,381126,254
78 Lead and articles thereof7824,323
79 Zinc and articles thereof1,50252,777
80 Tin; articles thereof2612,006
81 Metals; n.e.s., cermets and articles thereof14,044
82 Tools, implements, cutlery, spoons and forks, of base metal; parts thereof, of base metal25,59485,054
83 Metal; miscellaneous products of base metal21,43161,190
84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof329,6221 769 106
85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers parts and accessories of such articles183,2521 252 202
86 Railway, tramway locomotives, rolling stock, parts thereof; railway, tramway, track fixtures and fittings and parts; mechanical (and electromechanical) traffic signalling equipment of all kinds14,8884,936
87 Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof59,0821 265 278
88 Aircraft, spacecraft and parts thereof2,985224,476
89 Ships, boats and floating structures69,48977,332
90 Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus; parts and accessories51,783420,859
91 Clocks and watches and parts thereof15531,813
92 Musical instruments; parts and accessories of such articles11319,567
93 Arms and ammunition; parts and accessories thereof26348,400
94 Furniture; bedding, mattresses, mattress supports, cushions etc. stuffed furnishings; lamps and light fittings n.e.s.; illuminated signs, name- plates, and the like; prefabricated buildings54,653102,215
95 Toys, games and sports requisites; parts and accessories thereof14,727111,110
96 Miscellaneous manufactured articles8,69638,752
97 Works of art, collectors' pieces and antiques199,76813,671
               Total, New Zealand produce exports14 484 344
               Re-exports421,035
               Grand total, merchandise trade14 905 37911 401 688

22.4 Overseas trade indexes

The price and volume indexes represent movement in New Zealand's overseas trade in commodities. The index numbers reflect the percentage rise or fall of the indexes from their base, which is set at year ended June 1989 (= 1000).

Data used in calculating the export and import price and volume indexes are derived from the Department of Statistics' overseas trade data, which are in turn processed from import and export entry forms lodged with the Customs Department.

The indexes cover all commodities classified as merchandise trade, although the export indexes exclude re-exports, bunkering, ships' stores and passengers' effects. Import indexes use ‘cost including insurance and freight’ (c.i.f.) values, while export indexes are calculated using ‘free on board’ (f.o.b.) values (see glossary).

The range of index series has recently been revised. Some series have been discontinued. Others have been partially respecified to either more closely reflect the commodity groupings of the Harmonised System classification or to better reflect New Zealand's major export and import commodity groupings. For instance, the export non-ferrous metals index has been renamed aluminium, with other non-ferrous metals being excluded from the September 1989 quarter onwards. The export and import ‘food, live animals, beverages and tobacco’ indexes have been renamed food and beverages’, with live animals and tobacco excluded from the September 1989 quarter onwards. Among new index series introduced are ones for imports of crude oil and exports of iron and steel.

Only minor discontinuity has resulted from the partial respecification of index series, or from the move to calculating indexes directly from data in the Harmonised System format.

Import and export price indexes

Table 22.9 provides a summary' of the Import Price Index, and 22.10 of the Export Price Index. The index numbers in these tables for the years prior to 1962 differ from those shown in table 22.11. This is because prior to 1965, the terms of trade index was calculated on a calendar year basis, whereas the indexes in tables 22.9 and 22.10 are calculated on a June year basis.

Table 22.9. IMPORT PRICE INDEXES*

 Food beveragesPetroleum and petroleum productsNon-fuel crude materialsNon-food manufactured goalsTotal imports;
Plastics and plastic articlesTextile yarn, fabrics related productsIron and steelNon-electrical machineryElectrical machinery and apparatusTransport- equipmentTotal;

* Base: year ended June 1989 (= 1000).

† Excludes manufactured articles of iron and steel.

‡ Includes commodities not listed.

June year
1950....................86
1955..................….107
1960....................113
1965..70....1969411429585..113
1970..87....210123149337113..144
1975353310286..313240220433178256252
19806101010489..529437479758375507533
198511352,1481068845100779690912238179601046
19861033186996879297072093911718429411002
19879871223913787996736100812281026990999
19889053,0998788419607049681030994937941
198910001000100010001000100010001000100010001000
Quarterly
1988 Mar90010718358349506629731062996939938
          Jun91110269328979447349281029999936938
          Sep945956990988927869975972945947950
          Dec10078231004103510421007101410189861010999
1989 Mar1022991102710071010105510141019104810261021
          Jun1023121897697210231080996990102110201030
          Sep106112829818931054106910541024101310301044
          DecP10551245984818101910701061985105510221034

Table 22.1. EXPORT PRICE INDEXES*

 All pastoral and dairy productsFish and fish preparationsFood and beverages Forestry products §Non-fuel crude materialsNon-food manufactured goodsTotal imports;
Dairy productsMeat, wool and by-productsTotal;
ButterCheeseTotalMealWoolTotal;AluminiumTotal;

* Base: year ended June 1989 (= 1000).

† Excludes live animals and tobacco from the September 1989 quarter onwards.

‡ Includes commodities not listed.

§ Series was named industry group—forestry, prior to the September 1989 quarter.

June year
1925121516670716971............62
1930100465757344351............45
193558303450243436...... ....32
194097475556434752............47
1945126657463515665............59
19501758610085133111114............100
195522097121147171152150............132
1960220134132135158143148............130
1965227126135f 74151156157............138
1970203141129224117163160............142
1975272221238270198227242167245222196160201221
1980580428424661524582557369523413496405406495
198511448408501032742888901951929842780715792866
1986983813765900718813832912849774750616752809
19879197797579248078848851142892850856708802864
1988870756741874916936901962846888978812868888
198910001000100010001000100010001000100010001000100010001000
Quarterly
1988—
  Mar852762744885904950924896856886987792875899
  Jun84282577986889991898864861917958932935905
  Sep879837817909942933905976887975951963971927
  Dec9819509629921065101799799498610121035986985996
1989—
  Mar10501037104710409921008103698910591016992108310231030
  Jun12751158122410459761032105210431060997101599710211042
  Sep129811181198113998310891103106611181046104893910161073
  DecP12261058119512009861101111410911146104610398939841075

Overseas terms of trade index

The Overseas Terms of Trade Index measures the changing volume of imports that can be funded by a unit volume of New Zealand's exports. The index is calculated as the ratio of the export price index to the import price index.

An increase in the terms of trade index indicates that the real purchasing power of exports has increased, while a decrease indicates a drop in the purchasing power of exports.

Table 22.11 provides the annual Overseas Terms of Trade Index numbers from 1985 and an historical summary at five-yearly intervals from 1925.

The index was revised during 1988, and from September 1989 has been calculated using the Harmonised System for classifying overseas trade commodities, it has also been rebased on the average of the ten years ended June 1989 (= 1000). An index value above or below 1000 indicates the terms of trade are more or less favourable than the average for the 1980–89 base period.

Table 22.11. EXPORT AND IMPORT PRICES AND OVERSEAS TERMS OF TRADE INDEXES

 Export price index*Percentage change from preceding periodImport price index*Percentage change from preceding periodTerms of trade indexPercentage change from preceding period

* Base: year ended June 1989 (= 1000).

† Base: average often years ended June 1989 (= 1000).

December year
192460491150..
193040431071−20.6
193534381025−1.7
1940474611760.7
1945596610206.9
195012390156128.5
195513610914220.8
19601231141233−4.8
June year
19651381131386−2.4
19701421441121−1.3
1975221252999−31.0
19804955331056−4.3
1985866 1046942−2.0
1986809−4.21002−6.6919−2.5
1987864−0.39996.89857.2
1988888−5.89412.810749.1
198910006.2100012.611396.0
Quarterly
1988 Mar8992.49380.310912.1
          Jun9050.79380.110980.6
          Sep9272.49501.211111.2
          Dec9967.49995.211342.1
1989 Mar10303.410212.211481.2
          Jun10421.210300.911520.4
          Sep10733.010441.411701.5
          DecP10750.21034−1.011841.2

Import and export volume indexes

Table 22.12 provides a summary of the import volume indexes, and table 22.13 of the export volume indexes. These indexes are based at June 1989 (= 1000). In table 22.12 the quarterly index numbers are given as annual equivalents.

Table 22.12. IMPORT VOLUME INDEXES*

 Food and beveragesPetroleum and petroleum productsNon- fuel crude materialsNon-food manufactured goodsTotal imports
Plastics and plastic articlesTextile yarn, fabrics related productsIron and steelNon-electrical machineryElectrical machinery and apparatusTransport equipmentTotal

* Base: year ended June 1989 (= 1000).

† Includes commodities not listed.

June year
1955....................414
1960....................367
1965..1409....6681939422139722..523
1970..1339....7061995474115787..565
197554517101124..9353,0969792831047779888
198051115341038..10581977731230926677777
198569411681157105811942,4441068535968918954
198666410991042102810582,1501081629968904917
1987844936943113211791880941723942943945
19889329861067109310122,0891015824904986987
198910001000100010001000100010001000100010001000
Quarterly
1988 Mar862107592110558922,016942678814886898
          Jun88294710679849081603964768529851867
          Sep94687694197410281096933903115610281008
          Dec10798781048101397388310501035678970979
1989 Mar9241313103695494998810019271042945968
          Jun105293297410581050103510171135112510581046
          Sep10581274120213001135126710681126129211881183
          DecP128710421137147411161301118313852,07514121366

Table 22.13. EXPORT VOLUME INDEXES*

 All pastoral and dairy productsFish and fish preparationsFood and beverages;Forestry products§;Non-fuel crude materialsNon-food manufactured goodsTotal exports
Dairy productsMeat, wool and by-productsTotalAluminiumTotal
MeatWoolTotal

* Base: year ended June 1989 (= 1000).

Includes commodities not listed.

Excludes live animals and tobacco, from the September 1989 quarter onwards.

§ Series was named industry group—forestry, prior to the revision effective from the September 1989 quarter

June year
1955471366548................258
1960651449741................346
1965720518749................388
1970812681968................528
1975648677729696590155501443683258315492
1980901742981803731430672880874463684706
19859348881097960897660852741934881985888
19861003791991857867702860758863810956874
19871037100710761018992782979714949815923948
19881034948985928958789982879908898928945
1989100010001000100010001000100010001000100010001000
Quarterly
1988 Mar1110956124310509958519668441070814800951
          Jun845110710371033107969910858959618388861007
          Sep8851022767909933111299995585610691012958
          Dec12647061167882939106890799610349981015969
1989 Mar116610001143107710318339769211086697865983
          Jun685127392411301098986111711301025123611091091
          Sep5028226577627311031786891734743976831
          DecP1056565847653747857782105380712251085876

Contributors

  • 22.1 New Zealand Trade Development Board; Customs Department; Department of Statistics.

  • 22.2 Ministry of External Relations and Trade; Department of Statistics.

  • 22.3–22.4 Department of Statistics.

Historical

Department of Statistics.

Further information

Customs Tariff of New Zealand. Customs Department.

Export News. New Zealand Trade Development Board (monthly).

Key Statistics. Department of Statistics (monthly).

New Zealand Standard Classifications. Department of Statistics.

New Zealand Harmonised System Classification.

New Zealand Standard Classification by Broad Economic Categories.

New Zealand Standard Trade Classification.

New Zealand Standard Country? Codes (NZSCC).

Overseas Trade. Department of Statistics (annual).

Report of the Customs Department (Parl. paper B. 24).

Report of the Ministry of External Relations and Trade (Parl. paper A. l).

Chapter 23. Prices

Prices of a large number of goods and services are collected periodically by the Department of Statistics to compile price indexes for retail prices, farming inputs, capital expenditure, and producer prices (input and output prices). Overseas trade indexes are also calculated from trade data, and a summary is contained in section 22.4. External trade indexes. Farming indexes can be found in chapter 15. Agriculture.

Price indexes are constructed from prices weighted to reflect the importance of each ratio to the sector as a whole. Changes in the importance of individual items to a sector require periodic revisions of weights.

Table 23.1. PRICE INDEXES: SUMMARY

December yearProducers Price Index all industries inputsConsumers Price IndexExport Price IndexImport Price Index
FoodAll groups

* Annual averages. December quarter 1988 is the weighting base of the Consumers Price Index. For comparison other series have been converted to this base from their original bases.

1951..6761145105
1961..9287117114
1971..141136154159
1976..241235306359
1977..282269351394
1978322312301374410
1979379366342453463
1980466440401523598
1981544514462590683
1982626578537652759
1983660601577689824
1984707636612779938
19858167307078531036
19868638138008311010
1987931921926881964
1988980978985936958
19891049106310411059P1034P

23.1 Consumer prices

On average, consumer prices were 5.7 percent higher during 1989 than during 1988. Between 1987 and 1988 they rose by 6.4 percent. These measures of inflation are based on the ‘annual average’ of the Consumers Price Index for all groups of commodities, or as given in table 23.1 above.

During 1989 increases were recorded in all groups within the Consumer Price Index but those showing the greatest increase were: tobacco products and alcoholic drinks; food and personal and health care.

The Consumers Price Index (CPI) measures changes in the general level of the prices of the goods and services which households purchase. It is the best available measure of the effect of changes in retail prices on the average household budget. Index series of retail prices have a long history in New Zealand, starting with a food and rent index for the four main centres from 1891. Commodity and geographical coverage has improved in various stages since then.

The index is based on weightings (or the relative importance) of expenditures of the population on a range of items, as measured by the Department of Statistics' Household Expenditure and Income Survey. Over the period for which the Consumers Price Index has been calculated, expenditure patterns have changed considerably. Analysis of any long-term series must involve consideration of the effects of such changes.

Revision of the Consumers Price Index

The Consumers Price Index is revised regularly to ensure that the index remains timely and accurate. A three-yearly revision cycle applied from 1974 to 1983 but from 1988 it will be revised five-yearly. A major revision scheduled for 1986 was deferred to take account of the introduction of the goods and services tax (GST) on 1 April 1986 and actually took place in 1988. The expenditure base of the new index is the year ended 31 March 1988, a period beyond the instability in purchasing patterns brought about by the introduction of GST. The expression base of the revised ‘all-groups’ category is the December 1988 quarter (= 1000). The monthly food price index had been on a quarterly base, but is now on the base December 1988 month (= 1000).

The revision exercise was primarily concerned with practical matters, such as updating the index commodity regimen and weights and reviewing geographic, population and retail outlet coverage. A Consumers Price Index Revision Advisory Committee had recommended that the basic concepts and calculation methodology of the index remain unchanged.

As a result of the 1988 revision, the index has the following characteristics:

Index regimen. The new structure of the index splits the index regimen into more commodity groupings. Examples of the new regimen are:

  • In the food group, the former ‘other food’ sub-group has been split into two new subgroups: grocery food, soft drinks and confectionery: and meals away from home and takeaway food.

  • Three new groups have been created to replace the former ‘miscellaneous’ group, which was very diverse. They are: tobacco products and alcoholic drinks: personal and health care; and recreation, education and generalised credit.

The number of published regimen items (excluding fresh fruit and vegetables) is 347.

Commodity and expenditure weighting. The regimen of the Consumers Price Index has been updated to reflect the expanded range of consumer goods and services now available in New Zealand, as well as changes in emphasis in household expenditure patterns.

Commodities new to the New Zealand market (e.g., compact discs, ‘wine coolers’) have been added to the price surveys and coverage has been extended in growth areas (e.g., ethnic foods, confectionery, leisure and recreation supplies and pet food). Increased expenditure on certain commodities (e.g., home computers, video movie hire, credit card charges and prescription fees) have led to their inclusion in the index for the first time.

Expenditure on some commodities (e.g., salt, canned baby food and shoe repairs) has declined, so they are no longer surveyed.

The source of the commodity weights is the average expenditure of households from the Department of Statistics' Household Income and Expenditure Survey, in which a large, statistically representative sample of households provide comprehensive details of their expenditure. Additional data relating to expenditure on the purchase and construction of dwellings are obtained from two specially conducted housing surveys. Other data are obtained from official production and trade statistics, from government departments, producers' marketing bodies and individual enterprises.

The base weights represent allocated expenditure from like commodities as well as expenditure on any particular commodity.

With the revision expenditure weights have fallen in areas such as red meats, household appliances and purchase and running of motor vehicles, while rising on commodities such as soft drinks, takeaway foods, leisure goods and services, and mortgage interest.

Expenditure on the following items are, for various reasons, excluded from the index: direct taxation; purchases of shares, bonds or debentures; payments to superannuation funds and the like; savings; antiques, paintings and other collectors' items; gambling; court fines: legal expenses for traffic cases, criminal and civil cases, estates, family settlements, divorces, adoptions, etc.; charitable and church donations: wages of domestics, home aids, home nurses, jobbing gardeners, etc.; catering and other service charges for private receptions: training, racing and stabling fees for race or trotting horses: purchase, boarding and breeding charges for animals: grazing fees and fees for pony clubs; overseas holidays (other than airfares): baby-sitting fees: and life insurances other than those directly related to mortgage repayments.

Price surveys. Retail outlets and organisations are selected for Consumers Price Index price surveys so that they correspond to the buying patterns of private households as closely as possible. The revision exercise therefore involved updating the samples of outlets, which now reflect, for example, the growing importance of shopping malls and discount/wholesale stores for food, liquor, furniture and appliances, especially in the main centres.

The deregulation of the economy, leading to the abandoning of scale fees for professional services, the removal or relaxation of price controls and the extension of the user-pays system has necessitated the introduction of new price surveys or the expansion of existing ones.

The most important change in this area, to be incorporated in the revision of the index, is that price data for used cars and construction of dwellings is now produced on a more timely basis than ever before. Previously there was a time lag of 4–5 months and 3 months respectively before the effects of price movements in these areas showed up in the Consumers Price Index.

Prices are surveyed by specially trained staff in 20 urban areas throughout New Zealand. Postal surveys are conducted by the Department of Statistics for a number of items, including dwelling rents, used cars, and services such as solicitors' fees, electricians' charges and kindergarten fees. Additional pricing information is obtained from government departments and other agencies.

The prices surveyed after 1 October 1986 include payments for goods and services tax (GST). For those commodities which are not subject to GST (e.g., dwelling rentals, mortgage interest, previously occupied housing) the prices will incorporate elements of GST incurred in the cost of production. This treatment is consistent with the legislation which precludes household consumers from recovering GST from their non-business-related, final consumption expenditure.

Geographic coverage and published series. The urban areas in which prices are surveyed have been reduced in number from 25 to 20. The impact of this change on published national index results has been demonstrated to be statistically insignificant.

Index series are now published for:

  • Auckland. Wellington. Christchurch (separately and together).

  • All 16 main urban areas combined (Whangarei. Auckland, Hamilton. Tauranga. Rotorua. Gisborne, Napier-Hastings, New Plymouth. Wanganui, Palmerston North, Wellington, Nelson, Christchurch, Timaru. Dunedin, Invercargill):

  • 20 urban areas combined (as above plus the four secondary urban areas of Tokoroa, Masterton, Blenheim and Greymouth):

  • The North Island urban areas combined and the South Island urban areas combined. Index methodology is discussed in the glossary at the back of this book.

Analysis of price movements

Goods and services measured on a national basis. Table 23.2 shows all-groups index numbers of individual groups and sub-groups for 20 urban areas combined. Table 23.3 is table 23.2 broken down to its component sub-groups. The expenditure weights are supplied for the latest calculation base of the index. December quarter 1988 (= 1000).

Table 23.2. CONSUMERS PRICE INDEX—ALL GROUPS—20 URBAN AREAS COMBINED*

PeriodFoodHousingHousehold
operation
ApparelTransportationMiscellaneousTobacco
products
and alcoholic
drinks
Personal
and
health
care
Recreation,
education, and
generalised
credit
All
groups
* Base: Weighted average 20 urban areas. December quarter 1988 (= 1000)
December year annual average—
  1980440306479443460367344....401
  1981514358534494540424398....462
  1982578446607553622492465....537
  1983601507628599660532512....577
  1984636544644630719563540....612
  1985730638727702838654646....707
  1986813743834796901756740....800
  19879218779579251003906898....926
  19889789819839801013976972....985
  198910631034102410131016..1081107810431041
Quarter ended—
  1988–30 Sep9819879869821003..987....988
            31 Dec10001000100010001000..1000100010001000
  1989–31 Mar1007101210039991008..1029103610121011
            30 Jun10301024100310061010..1057105310281023
            30 Sep10981047103610181019..1109110510621059
            31 Dec11161054105210311027..1131111810691072

Table 23.3. CONSUMERS PRICE INDEX—SUB-GROUPS—20 URBAN AREAS COMBINED*

PeriodFoodHousingHousehold operation
Fruit and
vegetables
Meat, fish,
and poultry
Grocery food,
soft drinks
and
confectionery
Meals away
from home
and take
away food
RentalsHome
ownership
Energy/
electricity
FurnishingsSupplies
and
services
Expenditure weights2.563.538.713.554.2017.312.776.826.20
Quarter ended—
  1988–31 Mar935967962962895982894999946
            30 Jun9959619709759289839801000957
            30 Sep971976.985987965992998998961
            31 Dec100010001000100010001000100010001000
  1989–31 Mar9631027101010121007101399710011007
            30 Jun9661052104010261023102410061007996
            30 Sep109611591086106710431048102910301046
            31 Dec104912421097108810521055103010431072
PeriodApparelTransportationTobacco and
alcoholic drinks
Personal and
health care
Recreation, education and generalised credit
ClothingfootwearPublic
transport
Private
transport
Tobacco
products
Alcoholic
drinks
Personal
goods and
services
Health
care
Stationery
books
magazines
and
newspapers
Leisure
and
recreation
Educational
child care
Generalised
credit
* Base: Weighted average 20 urban areas. December quarter 1988 (= 1000)
Expenditure weights4.341.003.0312.362.637.092.742.161.754.410.500.36
Quarter ended—
1988–31 Mar9599569721045890969............
          30 Jun9799829761020907980............
          30 Sep9829829811006970994............
          31 Dec100010001000100010001000100010001000100010001000
1989–31 Mar99810001027100310761012100510751011101110331004
          30 Jun100410111030100511681016101910961020102011341010
          30 Sep101510311054101012291064106511551079104811441037
          31 Dec102810481068101612621082108111651096105011601043

Table 23.4. CONSUMERS PRICE INDEX—REGIONAL MOVEMENTS

GroupNorth IslandSouth Island20 urban areas
* Base: Weighted average of urban areas. December 1988 quarter (= 1000).
Percentage changes December 1988 to December 1989 quarters*
Food11.611.611.6
Housing5.64.95.4
Household operation5.25.45.2
Apparel3.13.33.1
Transportation2.62.92.7
Tobacco products and alcoholic drinks12.913.513.1
Personal and health care12.011.211.8
Recreation, education and generalised credit6.77.46.9
          All groups combined7.27.17.2

Geographical variation in prices. Table 23.4 shows movements in the general level of prices in 13 North Island urban areas combined, seven South Island urban areas combined, and an aggregation of all 20 urban areas combined. Comparison of each of the aggregates of urban areas below implicitly assumes identical patterns of expenditure, product and service availability within each contributing urban area. In reality, completely identical market conditions do not exist. A comparison of absolute price levels between any two combinations of urban areas may not therefore be obtained from this table.

International comparisons. Table 23.5 provides a comparison of Consumer Price Indexes of selected countries. Comparisons may be drawn between the movements in price levels experienced by domestic consumers in each country. The indexes do not convey any information about the relative price levels existing in each country. Indexes published by each country have been converted to a common base of December quarter 1980 (= 1000).

Table 23.5. INTERNATIONAL COMPARISON OF CONSUMER PRICE INDEXES*

YearZealandAustraliaCanadaFrance (Paris)JapanUnited KingdomUnited Slates
* Base: December quarter 1980 (= 1000).
19841447135113191412109812841200
19851671144313721505112013631242
19861892157414281539112614091261
19872,189170714911591112814671307
19882,329183115511634113615391359

Average retail prices

Table 23.6 shows food prices in each of the years between December 1985 and December 1989. Prices other than food are shown in table 23.7, and are averages prevailing in the calendar quarter. These weighted average prices of selected items are used in the calculation of the CPI and provide a reliable indicator of relative movements in price levels when compared with average prices for earlier periods. They are not designed to give a statistically accurate measure of absolute average transaction prices at the stated time. Item specifications can also differ between urban areas and over time, and this adds to the variability of the weighted average price data when used to measure changes at item price levels.

Table 23.6. RETAIL PRICES OF SELECTED FOOD ITEMS

CommodityUnitDec 1985Dec 1986Dec 1987Dec 1988Dec 1989
 $
Apples eatingkg2.552.70$2.823.383.51
Bananaskg1.672.262.332.352.56
Orangeskg1.631.841.972.542.70
Cabbagekg0.450.820.590.770.70
Carrotskg1.382.011.501.571.45
Onionskg0.871.611.372.001.44
Potatoeskg0.841.080.811.361.07
Peaches, canned425 g tin1.011.391.451.651.77
Peas, green frozen1 kg pkt1.972.382.542.462.53
Beef, blade steakkg6.567.137.017.3810.06
     corned silversidekg6.386.946.947.129.55
     prime rib rolledkg5.365.805.806.208.57
     porterhouse steakkg9.1710.2210.1310.8715.16
     rump steakkg8.188.838.739.2212.58
Mincekg4.494.884.764.827.31
Pork, cut leg, shank endkg6.248.018.358.179.63
     loin chopskg6.558.548.968.8810.51
Bacon, middle rasherskg10.8213.8514.6015.0416.32
Sausages, beefkg2.873.273.473.594.19
Fish, wet, filletedkg10.9113.7515.5415.2714.30
     salmon, canned210 g2.372.422.843.444.01
Chicken, deep frozen no. 8each6.317.387.797.987.73
Eggs, min. wght. 636 g/dozdozen1.892.232.452.382.82
Milk1 litre0.670.750.780.921.12
Butter, standard500 g1.481.621.651.771.83
Cheese, cheddarkg4.965.545.726.397.59
Biscuits, chocolate wheaten200 g1.201.471.551.611.75
Bread, white, sliced750 g1.001.221.291.401.63
Cake, block, light fruit450 g2.673.133.293.393.75
Breakfast flake biscuits1 kg pkt2.513.203.493.613.87
Flour, white1.5 kg pkt1.351.521.471.621.91
Rice, long grain white500 g0.650.710.700.800.90
Honey500 g1.522.031.961.902.41
Coffee, instant, refill100 g pkt3.604.684.543.993.28
Tea250 g pkt2.202.192.142.092.32
Margarine, table500 g1.771.861.861.911.97
Spaghetti in tomato sauce440 g tin0.951.251.261.271.35
Sugar, white1.5 kg pkt1.291.431.611.902.13
Ice cream, vanilla2 litre2.903.073.383.513.47
Chocolate, block250 g3.203.353.583.732.95
     meals, coffee and 2 sandwichestotal1.902.462.652.863.24
Takeaways, hamburgereach1.581.962.052.192.34
     meat pie, hoteach0.921.181251.311.50

Table 23.7. RETAIL PRICES OF SELECTED ITEMS

CommodityUnit*Dec 1985Dec 1986Dec 1987Dec 1988Dec 1989
* Where the unit price changed following the 1988 CPI revision, earlier prices have been scaled to the new units.
 $$$$$
Paint, house, while acrylic4 litres48.0557.5557.5061.7669.36
Concrete blocks. 390 mm × 190 mm × 140 mmper 100120.45149.98166.18195.53240.41
Timber, dressed. 150 mm × 25 mm, finishing tanalised, radiata pinelineal metres298.87377.78386.15429.21453.33
Electric range, 4 elements, automaticeach968.03995.461 043.72963.101 241.40
Television set, colour 53–65 cmeach1 512.541 616.861 532.711 395.231 479.34
Fork, table, stainless steel, med. qualityeach0.961.131.191.332.25
Detergent, dish washing990 mls2.202.482.302.722.82
Soap powder1 kg1.992.352.302.583.64
Electric light bulb100 watt0.820.951.001.031.03
Fly spray, aerosol300 ml can2.633.082.993.363.77
Battery, 1250 super heavy dutytwin pack1.802.182.42.562.77
Postage, letter, standard posteach0.250.300.400.400.40
Public broadcasting fee, colour television1 year45.0071.5071.5071.50110.00
Pantyhose. 15 denier, average size, medium qualitypair2.883.523.724.014.12
Shorts, casual sports, boys, medium qualitypair9.2311.7213.0713.8113.71
Wool, hand knitting, crepe, double knit50 g2.843.553.813.954.16
Petrol. 96 octane10 litres9.008.369.208.829.12
Cigarettes, filter tippedpkt of 201.752.732.853.214.05
Tobacco, cigarette50 g3.185.065.306.098.64
Beer in public bar, glass200 mls0.560.700.810.910.98
Toilet soap150 g0.560.620.710.710.74
Toilet paper, two ply4 rolls2.142.742.592.642.79
Hair cut, women's weteach18.6922.9325.1825.9027.58
     man's dryeach6.938.8310.0110.6912.36
Soluble aspirin,packet of 241.772.332.432.542.19
Envelopes, 146 mm × 89 mm, gummedpkt of 200.811.031.111.251.33
Newspaper, daily, localeach0.300.390.400.400.47
Paperback, noveleach5.508.7511.959.9512.48
Rugby club subscription, per annumper member38.7744.7453.4160.1463.90
Tennis club subscription, per annumper member74.3191.47115.88129.09141.14

23.2 Producers prices

Producers Price Index

The Producers Price Index is a series of quarterly economic indicators designed to measure changes in the prices of non-labour inputs paid for by producers in the economy, as well as the prices that they receive from their outputs.

The index, previously called the General Price Index, was first released in 1978 and replaced the Wholesale Price Index which had been published since 1920.

The format of the Producers Price Index is based on the economic activities assigned in the New Zealand Standard Industrial Classification, and is compiled by the Department of Statistics. Indexes of changes in input prices are provided for 24 industry groups, which correspond to the industry groupings of the New Zealand National Accounts. Output indexes are published only for the 21 market-oriented industry groups.

Data from economic censuses and surveys of business activity undertaken by the Department of Statistics forms the basis for determining the relative importance (or weights) of commodities within the index. This data is supplemented by information obtained from many other sources. The specifications of commodities to be price-surveyed are determined in consultation with the suppliers of the goods and services to ensure that they are representative. The index weights and price-surveyed commodities are revised periodically to reflect changes in purchasing and production patterns.

The weights assigned to the industries to obtain the all-groups index are based on data from the 1983–84 national accounts.

The prices used to calculate the output indexes are those prevailing at the factory door, the farm gate, or as close to this point as possible. Sales taxes, excise duties, subsidies and GST are excluded. Input prices included sales taxes prior to the December 1986 quarter, and excise duties, but generally exclude GST. (GST is however, included for exempt industries as it is not recoverable.) Imported commodities include freight, insurance and customs duty.

The Producers Price Index can be used in the analysis of inflationary trends, in economic forecasting and in estimating economic growth, i.e., as deflators used to derive constant price (or, effectively, volume) indicators. In addition the index is widely used to determine the increases allowable under escalation clauses in commercial contracts.

Table 23.8. PRODUCERS PRICE INDEX—INPUTS*

Industry groupQuarter aided
Dec 1988Mar 1989Jun 1989Sep 1989Dec 1989

* Base: December quarter 1982 (= 1000).

† Includes industry groups 5 to 13.

‡ Includes industry groups 1 to 21.

1 Agriculture13721395144514921513
               Sheep and beef farming13581374142114621487
               Dairy farming13831421149315641589
               Mixed cropping14291448148915251507
               Horticulture14531469149515401557
               Pig poultry and other farming13111350139014391446
               All farming13701393144414911513
               Agricultural contracting14281445147314831484
2 Fishing and hurtling13531407143813801339
3 Forestry and logging15261533156315701573
4 Mining and quarrying14421457147314871488
5 Food beverages and tobacco13911432148616711726
               Primary food processing13601414147017291796
               Other food processing13611374142514741501
6 Textiles, apparel and leather15961627161016051596
7 Wood and wood products16141640166816911710
8 Paper, printing and publishing15511568160716231623
9 Chemicals, petroleum and plastics11051163120312011208
10 Non-metallic mineral products15741586159916031613
11 Basic metals13991534151115411546
12 Machinery and metal products15431565157716041626
13 Other manufacturing14401441145914961530
14 Electricity, gas and water16861694173517421750
15 Construction15931620163616491658
3 6 Trade, restaurants and hotels16721696171817611792
               Wholesale and retail trade17181746177118081841
               Hotels, restaurants, takeaways15561569158416361666
17 Transport and storage14181438146614861508
               Road transport14241431145114401440
               Transport and storage other than road14181442147315061536
18 Communication14281463147514831489
19 Insurance and financing197219812,0082,0572,119
20 Ownership of dwellings18121831185819191938
21 Community and personal services16041626165516711699
22 Central government15721594160916361651
23 Local government15821600164716411641
24 Private non-profit services16831704171917551784
All manufacturing groups14381476150315631585
All market groups15411570159816411663
          All industry15141573160016421664

Table 23.9. PRODUCERS PRICE INDEX—OUTPUTS*

Industry groupQuarter ended
Dec 1988Mar 1989Jun 1989Sep 1989Dec 1989

* Base: December quarter 1982 (= 1000).

† Includes industry groups 5 to 13.

‡ Includes industry groups 1 to 21.

1 Agriculture14081456148116241670
2 Fishing and hunting16421699175617471618
3 Forestry and logging2,1542,2202,3012,3052,320
4 Mining and quarrying11221184120812011228
5 Food, beverages and tobacco14741505154116901722
               Primary food processing13951438147216811717
               Other food processing15671581161816591681
6 Textiles, apparel and leather15021527151514791518
7 Wood and wood products15931608162716591679
8 Paper, printing, and publishing16181635165217051695
9 Chemicals, petroleum and plastics11611163120212621275
10 Non-metallic mineral products15501557157815891593
11 Basic metals15211553155715491544
12 Machinery and metal products15611578159616051623
13 Other manufacturing14871502152715281528
14 Electricity, gas and water16891686172417311733
15 Construction15741587161116261639
16 Trade, restaurants and hotels15691619164216761684
               Wholesale and retail trade15271583160816431646
               Hotels, restaurants, takeaways17331754176717981826
17 Transport and storage14341449146814921496
               Road transport16011629163516451662
               Transport and storage other than road13411350137614061404
18 Communication14731449146014671466
19 Insurance and financing2,2452,2822,2792,2672,367
20 Ownership of dwellings2,4372,4442,4852,5742,594
21 Community and personal services17511783181818681909
All manufacturing groups14781497151915741594
All market groups16141641166417071731

23.3 Capital expenditure prices

The Capital Expenditure Price Index (CEPI) reflects the price movements of fixed capital assets purchased by New Zealand businesses and government. More than 60 separate indexes are produced for different types of assets, ranging from residential and commercial buildings to food processing, machinery and commercial buildings. It was first released in May 1981 and has an expression base of the December 1979 quarter (=1000).

The concepts and classifications used in this series closely follow those defined for gross fixed capital formation in the New Zealand National Accounts.

The relative importance (or weights) of the commodities within each of the asset-type indexes has been derived from statistics on external trade, manufacturing, and building and vehicle registrations. These data have been supplemented with information obtained in discussions with manufacturers, importers, wholesalers and retailers. Generally data for several years have been used, as expenditure on capital goods can be irregular.

It is necessary to periodically revise the weights and specifications of the price-surveyed commodities, to ensure that they adequately reflect expenditure patterns. Changes in the mix and types of assets purchased may have resulted from, for example, improved technology, retooling, or the availability of new products. With this in mind, a comprehensive revision of the index was completed in early 1989.

The prices used in the calculation of the quarterly indexes are those paid by the final user. Sales tax was included prior to the December 1986 quarter, but GST is excluded—for registered persons it is recoverable.

Table 23.1. CAPITAL EXPENDITURE PRICE INDEXES*

Capital assetQuarter ended
Dec 1988Mar 1989Jun 1989Sep 1989Dec 1989
* Base: December quarter 1979 (= 1(100).
Residential buildings—
     Houses, flats, garages2,5872,5952,6212,6512,670
     Hostels2,5332,5332,5732,5802,619
Non-residential buildings—
     Commercial buildings2,4582,4732,4997,4522,495
     Factories2,4702,4752,5202,5322,536
     Hospitals, rest homes2,4682,4822,5252,5392,563
     Educational buildings2,4742,4912,5412,5382,567
     Motels, hotels2,5032,5222,5512,5412,589
     Farm buildings2,4172,4682,5492,5722,584
Other construction—
     Transport ways2,7782,8152,8422,8812,886
     Pipelines2,5472,6522,6642,7302,802
     Electrical works2,4042,4262,4732,4912,513
     Earth moving and site work2,4612,4772,5132,5462,551
Land improvements—
     Land clearing2,4552,5142,5802,6052,607
     Fencing2,0252,0742,0742,0902,094
     Irrigation and land drainage2,6182,6742,7122,7392,757
     Reclamation and river control2,4502,4642,4932,5462,544
Transport vehicles—
     Cars, 1600 c.c. and under2,0942,1142,0062,0182,013
     Cars, over 1600 c.c.19271935184018401842
     Commercial vehicles. 3500 kg and under2,1822,1892,1082,1012,101
     Commercial vehicles, over 3500 kg19631973199319992,011
     Buses2,8252,8032,8962,9132,942
     Trailers2,0512,0602,0602,0862,105
     Motorcycles12831288129613001298
     Fishing boats
     Light fixed-wing aircraft3,006
     Helicopters2,9843,1493,1723,3443,351
Plant, machinery, and equipment—
     Agricultural tractors191719572,0252,0302,053
     Self-propelled harvesting machinery18301851186219361953
     Other harvesting and mowing machinery1884188819032,0522,074
     Soil preparation and cultivation machinery2,4452,4502,4592,4882,493
     Other agricultural machinery and equipment2,1652,1672,2002,2622,254
     Farm motorcycles15711578160316541589
     Self-propelled construction machinery19942,01619882,0682,084
     Non-self-propelled construction machinery, quarrying machinery2,4822,4652,4622,7452,769
     Food and drink processing machinery2,3702,4032,4082,4132,451
     Bottling and packaging machinery2,2112,2182,2442,3022,337
     Textile machinery2,3452,4052,3882,4582,566
     Woodworking machinery2,0992,1162,0932,1772,307
     Printing and publishing equipment2,0612,0382,0282,0642,074
     Metal working machinery19622,0232,0322,0522,069
     Forklifts and mobile material-handling equipment18771892191119161916
     Mechanical hoists, conveyors, etc.2,6042,6072,6172,5942,622
     Electrical distribution equipment2,5082,4982,5112,5682,618
     Electric motors, up to 7kW (1–9 hp)18041804180618341809
     Electric motors, 7 kW and over (over 9 hp)2,1062,1062,0972,1272,127
     Industrial engines, non-electric2,3022,3182,3222,3622,438
     Airconditioning and cooling equipment19972,0192,0372,0192,027
     Refrigerating equipment19062,0032,1112,1452,145
     Industrial boilers and heating equipment2,2912,3142,2912,3442,373
     Pumping and compressing equipment2,1832,1772,1942,2282,249
     Office and shop equipment, electronic11031110111711101105
     Office and shop furniture and fittings2,5152,5532,6312,5782,573
     Duplicating and photocopying machines680686691694673
     Scales and weighing machinery12191219124512491263
     Transportable containers2,2792,3362,4232,5162,541
     Tanks, vats, and storage units2,729........
     Photographic and optical equipment19302,0092,0602,0822,115
     Scientific, medical and technical equipment2,1052,1222,1382,1532,182
     Stereo equipment770744725715753
     Television receivers and video cassette recorders11351123108111231045
     Peripheral data processing units1085........
     Telecommunications equipment2,0562,1182,0972,0772,075
     Hospitality industry furniture and furnishings2,2192,2392,2432,2552,259
     Hospitality industry appliances16801695169817061753
     Hospitality industry equipment and utensils18981879185419261940
     Portable power tools17881804181217661760
     Sport and recreation equipment2,318........

Contributor

  • 23.1–233 Department of Statistics.

Historical

Department of Statistics; Ministry of Commerce.

Further information

Key Statistics. Department of Statistics (monthly).

Report of the Consumers Price Index Advisory Committee (Parl. paper G. 28A, 1985).

Chapter 24. Money and banking

24.1 Financial institutions

The financial sector has undergone a period of dramatic change since 1984, the culmination of a process of gradual evolution and reform which started over a decade earlier, but was substantially accelerated from mid-1984.

Until the early 1960s, the financial sector was dominated by a few major institutions, most notably the trading banks. Monetary policy was implemented primarily through direct and relatively detailed controls over the operations of those major financial institutions. Over the subsequent two decades, the process of financial innovation and increasing sophistication in the financial sector saw the growth of a range of new financial institutions, particularly in areas less subject to direct controls, and also a rapid expansion in the variety of financial services available to the public. Policy also changed over this period, with a gradual move away from direct controls towards the greater use of policy instruments applying to all institutions. Most significantly, in a relatively short period following the change of government in 1984, direct controls on the financial sector were largely removed.

The impact on the financial system of these changes in the way policy is implemented has been substantial. The result has been rapid growth in money market activity since 1984, particularly in the area of foreign exchange; the development of a sizeable secondary market in government securities, the introduction of a range of new financial instruments, including forward contracts, options, and exchange rate futures; and the growing use of such hedging devices to handle interest rate and exchange rate risk.

The removal of direct controls and subsequent legislative amendments to make financial markets more contestable have resulted in significant institutional changes within the finance industry. One important development was the Reserve Bank Amendment Act 1986. This Act contained provisions enabling suitably qualified financial institutions to become ‘registered banks’. At the end of 1989 there were 21 registered banks, four of which were the existing trading banks. The remaining 17 banks have been registered since the amending legislation came into force on 1 April 1987. A framework for registering and ‘prudentially supervising’ banks (see below) is also included in the Reserve Bank Act 1989, which replaced the Reserve Bank Act 1964 and amending legislation from 1 February 1990. The new Act also established a framework, under the auspices of the Reserve Bank, for disclosure by registered banks. The Trustee Banks Restructuring Act 1988, and the Building Societies Amendment Act 1987 were also aimed at removing distinctions between various types of financial institutions.

Reserve Bank of New Zealand

The Reserve Bank of New Zealand, the central bank, was established in 1934 as a privately-owned institution, but became fully state-owned in 1936.

Since 1 February 1990 the Reserve Bank has operated under the Reserve Bank of New Zealand Act 1989. It has a board of directors comprising the Governor, the Deputy Governor, and between four and seven non-executive directors. (The functions and powers of the Reserve Bank prior to the introduction of the 1989 Act were outlined in this section of the 1988–89 Yearbook.)

Under the Act the main functions of the Reserve Bank are:

  • To formulate and implement monetary policy to achieve and maintain stability in the general levels of prices;

  • To promote the maintenance of a sound and efficient financial system, including monitoring the prudential soundness of registered banks;

  • To manage the note and coin issue: and

  • To act as the central bank of New Zealand:

Other important functions undertaken by the Reserve Bank include:

  • Collecting information and data relating to the business of financial institutions:

  • Providing policy advice to the Minister of Finance:

  • Acting as a lender of last resort: and

  • Implementing exchange rate policy.

The Reserve Bank is required, under the 1989 Act. to prepare a monetary policy statement once every six months, The first of such statements, as at April 1990, is contained in the March quarter of the Reserve Bank Bulletin.

Prudential supervision. As noted earlier, the Reserve Bank Amendment Act 1986 established the framework for prudential supervision by the Reserve Bank, The Reserve Bank Act 1989 provides for a continuation of the bank's supervision. Supervision is now to be confined specifically to registered banks, as most major institutions have over recent years sought bank registration. Supervision is necessary to promote the maintenance of a sound and efficient financial system and to avoid significant damage to the financial, system that could result from the failure of a registered bank. Protecting individual institutions, or depositors of any particular institution, is not an objective of prudential supervision. Similarly, supervision by the Reserve Bank does not lessen the responsibility on the part of owners and managers for ensuring prudent management of their institutions.

The Reserve Bank is provided with the power to collect information from supervised institutions (registered banks) in order to monitor their condition. It is also provided with intervention powers, including the ability to require a bank to consult with it—this may happen where, for example, a bank is viewed to be operating imprudently. The Reserve Bank may give advice, or even direction to the bank in question, and ultimately can recommend the appointment of a statutory manager. The statutory manager has extensive powers to deal with the situation of a failing institution. These statutory management powers were invoked in the case of the DFC of New Zealand Limited.

The emphasis of supervision was initially on monitoring rather than regulation, monitoring being carried out through the collection of statistical returns in conjunction with regular consultations with the individual supervised institutions. While monitoring and consultations will continue to form an integral part of supervision, the Reserve Bank Act 1989 strengthens the Reserve Bank's ability to apply limitations or requirements on a supervised institution—a limit on exposure concentration being a case in point.

Disclosure. The Reserve Bank Act 1989 provides the Reserve Bank with the ability to require disclosure by registered banks of a range of financial information. Previously (and until new regulations are promulgated), registered banks' disclosure requirements have come under the auspices of the Securities Commission to the extent that those banks were seeking funds from the public. Disclosure is viewed as an adjunct to the Reserve Bank's prudential supervision arrangements, with the focus being on encouraging peer scrutiny and professional comment rather than on providing technical information to the ‘small’ investor.

The Reserve Bank also acts as banker to some registered banks (known as settlement banks). Settlement accounts are provided, through which transactions between the Reserve Bank and its customers, and the banks and their customers are settled. Since the publication of the last Yearbook, the number of settlement banks has increased to 12.

Details of the liabilities and assets of the Reserve Bank are shown in the following tables.

Table 24.1. LIABILITIES OF THE RESERVE BANK

At end of JuneBank notesStateDepositsOverseas liabilitiesOther liabilitiesTotal liabilities
Short-termLong-termAllocation of special drawing rights
MarketingOther
 S(million)
19871 003.0116.1102.410.24 060.4358.5315.8390.46 356.8
1988990.279.6135.068.3953.2148.1278.7456.73 109.8
19891 096.7339.1188.5150.53 707.1307.51 839.97 629.3
Source: Reserve Bank of New Zealand.

Table 24.2. ASSETS OF THE RESERVE BANK

At end of JuneOverseas assetsInvestments in New ZealandAdvances and discountsOther assets
GoldShort-termLong-termSpecial drawing rightsStateMarketing*Settlement institutionsOther

* Includes stabilisation accounts.

Source: Reserve Bank of New Zealand.

 $(million)
19870.74 750.514.32.5569.5838.552.63.00.5116.0
198815.71 374.416.510.11 057.7244.6163.60.8226.4
198913.94 020.030.40.61 874.1123.90.21 566.2

Registered banks

Until April 1987, a specific act of Parliament was required for a financial institution to include the word ‘bank’ (or any derivative of ‘bank’) in its name. Accordingly each of the trading banks was established under its own legislation, as were the trustee banks, the private savings banks, and the former Post Office Savings Bank (now Post Bank).

There was no standardisation between these pieces of legislation and they embodied certain benefits (the ability to use the name ‘bank’ being the main one) and restrictions (such as a limit on the types of operations able to be conducted). Given the rapid development in financial markets during the early 1980s, these legislative distinctions became increasingly outdated and restrictive. Consequently, as part of a general policy of creating a more competitively neutral environment between institutional groups, the Reserve Bank was empowered to register new banks from 1 April 1987. Under the ‘new banks’ policy, there is no limit placed on the number of banks that can be registered, nor is there a time limit on the receipt of applications. In addition, the policy places no particular limit on the entry' of banks from abroad, whether they be branch operations or subsidiaries of overseas banks.

In general, the criteria applied in considering an application for registration are qualitative in nature. Under the new Act the Reserve Bank is required to be satisfied that the applicant is substantially in the business of providing some form of financial service. The Reserve Bank is also required to consider the applicant's size, standing, and ability to carry on business in a prudent manner. With respect to the latter, the Reserve Bank is required to confine its consideration to the applicant's capital in relation to the size and nature of its business (i.e., capital adequacy), the applicant's loan concentration and risk exposures, separation from other business interests of any person owning or controlling the applicant, and the applicant's internal controls and accounting systems.

For the purposes of assessing capital adequacy the Reserve Bank has adopted the capital framework developed by the Basle Committee on Banking Regulations and Supervisory Practices and applies a minimum capital adequacy ratio based on that framework. This requirement does not apply to branches of overseas banks, but in their case assessment is made of the parent bank's global capital position. Capital is also used in evaluating the size criterion., with a minimum capital requirement of $15 million being applied.

In the case of overseas applicants, the Reserve Bank is also required to have regard to the laws and regulatory requirements relating to the licensing, registration, or authorisation of banks in the applicant's country of domicile and their application to New Zealand banks. There are, however, no requirements as to the type of business registered banks must engage in (apart from that it be some form of financial service). Consequently, the group of registered banks comprises retail/savings banks, commercial banks, and merchant banks, as well as specialised (e.g. corporate banking) banks. Nor are there limits on shareholding. It is also possible for a non-bank to own a bank provided there is adequate separation between the two operations, via constraints on connected lending and independence of the bank's board.

The above policies are able to be reinforced by way of conditions of registration and the new Act provides the Reserve Bank with greater flexibility in this regard.

The new framework provides little basis on which to distinguish between ‘bank’ and ‘non- bank’ financial institutions. The principal privilege registered banks enjoy, apart from any status that registration itself may carry, is the right to use the word ‘bank’ in their names. Otherwise “non-bank’ institutions are able to compete on a more or less equal footing with registered banks.

The four former trading banks—ANZ Banking Group (New Zealand) Limited, Bank of New Zealand. National Bank of New Zealand Limited and Westpac Banking Corporation, (which is incorporated in Australia)—automatically became registered banks, with the term ‘trading bank’ no longer having a legal meaning. These ‘deemed’ registered banks jointly own a computer company. Databank Systems Limited, which provides the daily clearing facilities for the financial system, including the other registered banks. Transactions cleared include cheques, direct debits and credits, and electronic funds transfers.

The other registered banks at the end of 1989 were: ASB Bank Limited; Bankers Trust New Zealand Limited; Banque Indosuez New Zealand Limited. Barclays Bank PLC; Citibank N.A.; Countrywide Banking Corporation Limited; Elderbank Limited; Hong Kong and Shanghai Banking Corporation; Macquarie Bank Limited; National Mutual Bank New Zealand Limited; NZI Bank Limited; National Australia Bank (NZ) Limited; Post Office Bank Limited; Primary Industry Bank of Australia Limited; State Bank of South Australia; TSB Bank Limited; (members of) Trust Bank Group.

Included among the above list are the trustee bank groupings: ASB Bank Limited (and its subsidiary Westland Bank Limited), TSB Bank Limited (formerly Taranaki Savings Bank Limited) and Trust Bank Group which comprises the parent bank, Trust Bank New Zealand Limited and its nine subsidiary trust banks. These banks (or rather their forerunners) were established as regional savings institutions, some as early as the middle of last century (see inset). They were converted by the Trustee Banks Restructuring Act 1988 into companies under the Companies Act 1955, with their ownership being clarified by being vested in regional community trusts. The 1988 Act also established a framework for the removal of a government guarantee where the banks are adequately capitalised, either singularly or as part of a group.

Post Office Bank Limited has also become a registered bank. It was formed in 1987 from the Post Office Savings Bank and was sold by the Government in February 1989 to the Australia and New Zealand Banking Group. As with the trustee banks, its focus remains on savings and retail banking.

Table 24.3. LIABILITIES AND ASSETS OF FINANCIAL INSTITUTIONS

ItemAs at June Quarter
Financial corporationsSavings institutionsRegistered banksAll groups
19881989198819891988198919881989

* Includes trade creditors/debtors, accounts payable/receivable, and items in transit, timing and statistical adjustments.

† Any two entities i.e., companies, organisations or individuals with the same shareholders and/or any company which holds 20 percent or more of the paid up capital of another company (the associated). A subsidiary is an associate.

Source: Reserve Bank of New Zealand.

 NZ$(m)
Liabilities
NZ dollar funding—
     NZ residents8,7987,49110,64312,1539,55323,54328,99443,187
     Non-residents94280721851,0162,6801,9793,572
     Unallocated18,9225,79818,9225,798
               Total, NZS funding9 7408 29810 66412 23829 49132 02149 89552 557
Foreign currency funding—
     NZ residents6316401342051,0481,1491,8131,994
     Non-residents2,7443,0923391,4271,1924,5104,284
     Unallocated1,2542,3311,2542,331
     Total3,3753,7324732053,7294,6727,5778,609
Capital and reserves3,1421,8047649503,1863,3637,0926,117
Miscellaneous*1,0075545838472,2612,0363,8513,437
               Total liabilities17 26414 38812 48414 24038 66642 09268 41470 720
Funding from associates1,401847171,1132,7812,3544,1994,314
Unused committed borrowing Lines and standby facilities available to surveyed institutions1,6161,736102898101,0552,5282,880
Assets
NZ Government securities (includes Treasury bills)8279221,8621,7315,4234,6778,1127,330
NZ currency110175139151240226
Balances with the Reserve Bank 5440424546
NZ dollar claims—
     NZ residents13,40111,9759,30711,3449,31123,06332,01946,382
     Non-residents1127663708674735
     Unallocated16,0866,06216,0866,062
               Total, NZS claims13 41212 0029 30711 34426 06029 83348 77953 179
Foreign currency claims
     NZ residents1,0921,02763698049531,9592,049
     Non-residents515548418631,3781,5982,3112,209
     Unallocated7711,1647711,164
Total1,6071,5754811322,9533,7155,0415,422
Foreign (currency) fixed assets and equity investment10959233199342258
Shares (in NZ companies)6391253161,6871,9662,3572,097
Fixed assets (in NZ)2461354556039159811,6161,719
Miscellaneous*435−4302423451,2125281,889443
               Total assets17 26414 38812 48414 24038 66642 09268 41470 720
Financial claims on associates6754043891,0901,4822,4242,5463,918

Other financial institutions

This includes building societies, private savings banks, merchant banks, stock and station agents and finance companies.

Private savings banks. From the mid-1950s, the trading banks sought government approval to operate savings accounts. This was designed, in part, to compensate for their decreasing share of both deposit-taking and lending business, which arose mainly due to limitations imposed on the trading banks by the monetary authorities. In its desire to encourage savings, government agreed in 1964 to the trading banks entering this field.

The private savings banks, which are wholly-owned subsidiaries of the respective trading banks, are registered as private companies under the Companies Act 1955. The Private Savings Bank Act 1964 requires that effective control of each private savings bank be vested in the parent company, which is required by the statute to guarantee the liabilities of its subsidiary. This legislation is under review.

Building societies. The first building societies in New Zealand were established in the 1860s. Over the years they developed into two distinct types of society—permanent and terminating societies. Both have specialised in home mortgage finance.

Building societies expanded rapidly in New Zealand during the 1950s and early 1960s. They provided a range of savings accounts and investment services and have become an increasingly important source of home finance. Traditionally they have been required to place the bulk of the funds they raise into housing loans, but amendments to the legislation covering building societies reduced the number of restrictions and made provision for societies to convert to companies. One major building society. Countrywide, has become a bank and in 1990 the United Building Society announced its intention to seek registration.

Merchant banks. Merchant banks are largely involved in corporate financing activities and trade finance. They operate in both the domestic and international money markets and deal in money market instruments such as commercial bills and government securities, as well as organising longer-term finance facilities and offering financial advisory services.

Merchant banking operations began to emerge in New Zealand in the 1950s when the short-term money market was developing. However, these operations were limited until 1971, when the then government allowed overseas banks to take up shareholding in New Zealand merchant banks. In addition, each of the trading banks operating in New Zealand established an equity interest in a merchant bank.

Further stimulus has been given to the development of merchant banks with the deregulation of the financial system since 1984. Merchant banks have since been able to develop a wide range of financial services designed to satisfy their clients' funding needs more effectively. Arranging lending to purchase assets, foreign exchange dealing, improvements in the marketability of debt, the tailoring of facilities to include such products as options and convertible debt facilities, and the establishment of links with stockbroking firms have all been areas of development by merchant banks. In addition. New Zealand merchant banks have expanded their involvement in international financial markets, and a number of merchant banks have, since April 1987, become registered banks.

Finance companies. Hire-purchase finance—to both businesses and individuals— provides the major basis for the activities of most finance companies, but many also provide a range of additional financial services such as corporate finance, commercial bills, foreign exchange transactions, import/export advice, investment advice, leasing mortgages, and extended credit facilities.

Finance companies recorded rapid growth in relative terms over the 1960s and 1970s, with their share of total M3 deposits (see following section) increasing from 1.1 percent in December 1960 to 18.6 percent in mid-1984.

Since deregulation of the financial sector in 19–84, however, finance companies have faced strong competition from other deposit-taking institutions, and, as regulatory distinctions have been removed, traditional finance companies have diminished in significance.

Stock and station agents. These originally began business as general merchants or retailers. Over time they expanded their operations to woolbroking, livestock transactions, land and properly, supplying merchandise, machinery, equipment, and miscellaneous farm requirements, as well as the provision of financial services to the farming community. These agents developed specialised financial services including the operation of current accounts for farmers, the acceptance of term deposits, and the making of secured and unsecured loans for seasonal and farming development needs.

Stock and station agents prefer to provide only short- and medium-term finance, leaving the provision of longer-term finance to other financial institutions. The fortunes of the agents have fluctuated with those of the farming industry, and over recent years they have also faced growing competition from other financial intermediaries.

Banking and finance industry statistics

The Reserve Bank publishes some information of a prudential nature on the finance industry, while the Department of Statistics publishes information on economic activity. Financial information is provided in the quarterly Reserve Bank Bulletin, and table 24.3 provides a summary. Economic statistics on the banking and finance industry are collected by the Department of Statistics as part of two broad economic surveys of New Zealand businesses and industries—the five-yearly Economy Wide Census and the annual Enterprise Survey (see section 26.1, Business statistics).

Final results of the Economy Wide Census were still being compiled at the time of going to press, but statistics for the banking and finance industries have been published in Finance, Insurance and Business Services, 1987. Tables 24.4 and 24.5 provide a summary of results from this volume, and these are compared with earlier surveys derived from the Economy Wide Census.

Table 24.4. BANKING: STATISTICAL SUMMARY*

Statistical Item1982–831985–861986–871983–861986–871983–87
* Includes Reserve Bank of New Zealand and all trading and savings banks, including Post Office Bank.
 numberpercentage change
Group enterprises202020,320
Enterprises within these group enterprises252423−4.0−4.2−8.0
Activity units (including ancillaries)1 1 321,3151,56916.219.338.6
Full-time equivalent persons engaged24,24726,69127,26110.12.112.4
 $(000)$(000)$(000)   
Income—
     Interest and dividend received1 902 4204 105 7485 046 968115.822.9165.3
     Other financial services income377,805499,829683,54960.236.8180.6
     All other income received105,365376,699257.5
               Total income2 280 2244 710 9426 107 216106.629.6169.0
Operating expenditure—
     Salaries and wages350,152539,350693,24354.028.598.0
     Depreciation22,18253,95763,586143.217.8186.7
     Interest1 315 5952 847 6823 737 852116.531.3184.0
     Indirect taxes5,1238,3127,06162.2−15.037.8
     All other operating expenditure314,137624,444842,09098.834.9168.1
               Total operating expenditure2 007 1884073 74615 343 832103.031.2166.2
Net profit before tax273,031637,196763,384133.419.8179.6
Economic values—
     Operating surplus287,849680,979834,031136.622.5189.1
     Value added104,1821 334 7671 676 17689.625.6138.0
Fixed tangible assets—
     Purchases during the year63,51295,308142,59850.149.6124.5
     Sales during the year6,87411,77818,57971.357.7170.3
     Book value at end of the year333,279578,665714,46673.623.5114.4
Ratios—
     Value added per full-time equivalent persons engaged29,04250,00861,48672.223.0111.7
     Value added per $1000 of salaries/wages paid2,0112,4752,41823.1−2.320.2
     Total sales and other income per full-time equivalent persons engaged94,041176,499224,02887.726.9138.2
 percent 
Net profit per total sales and other income12.013.512.5
Total salaries and wages per total sales and other income15.411.411.4
Value added per total sales and other income30.928.327.4

Table 24.5 covers non-bank enterprises which are either:

  • Mainly engaged in holding and dealing in assets and liabilities on their own account or on behalf of others; or

  • Have as their predominant activity, the holding of financial assets and liabilities, either on their own behalf or on behalf of others, and the redistribution of income from these holdings; or

  • Whose main activity is assisting others to hold and deal in financial assets and liabilities.

The coverge excludes banks and enterprises which do not employ staff and are not part of a group enterprise, classified to New Zealand Standard Industrial Classification industry classes 81290, other financing, n.e.c; and 81330, holder investing, n.e.c.

Table 24.5. FINANCE AND INVESTMENT: STATISTICAL SUMMARY

Statistical item1982–831985–861986–871983–861986–871983–87
 numberpercentage change
Group enterprises9711,61366.1
Enterprises within these group enterprises1,4362,4653,92271.7
Activity units (including ancillaries)1,9313,0654,51758.747.4133.9
Full-time equivalent persons engaged9,45911,39713,87120.521.746.6
 $(000)$(000)$(000) 
Stocks—
     Closing6241,344115.4
     Opening627821 161.3
Income—
     Interest and dividend received1 584 0873 360 3107 277 234112.1116.6359.4
     Other financial services income235,160147,821456,859369.5209.1673.4
     All other income received956,1741 361 78442.4
Total income1 817 2474 464 3059 095 878145.4103.7400.0
Adjusted for change in stock values1 819 2474 464 9289 096 439145.4103.7400.0
Operating expenditure—
     Salaries and wages141,723222,430402,48956.981.0184.0
     Depreciation17,21439,19875,461127.792.6338.4
     Interest1 034 4022 925 6575 106 512182.874.5393.7
     Indirect taxes2,6709,30110,804248.4 16.2
     All other operating251,708706,7012 166 250180.8306.5760.6
Total operating expenditure1 447 7193 903 2887 761 516169.698.9436.1
Working proprietors/partners salaries and wages4,2898,71636,757103.2321.7757.0
Net profit before tax after deducting working proprietors/ partners salaries and wages367,239552,8621 298 16550.5134.8253.5
Economic values—
     Operating surplus386,138609,1321 437 79757.7136.0272.4
     Value added551,994622,3281 957 93412.7214.6254.7
Fixed tangible assets—
     Purchases during the year41,288637,482292,5471444.0−54.1608.6
     Sales during the year18,463148,505161,685704.38.9775.7
     Book value at end of the year241,5401 199 0411 314 356396.49.6444.2
Ratios—
     Value added per full-time equivalent persons engaged58,53654,605141,153−6.7158.5141.1
     Value added per $1 000 of salaries/wages paid3,8952,7984,86528.273.924.9
     Total sales and other income per full-time equivalent persons engaged192,330391,708655,748103.767.4241.0
 percent 
     Net profit per total sales and other income20.212.414.3
     Total salaries and wages per total sales and other income7.85.04.4
     Value added per total sales and other income30.313.921.5

24.2 Money

Currency

The present decimal currency system was introduced in 1967, when the dollar as the monetary unit replaced the previous system of pounds, shillings and pence.

Since 1934 the Reserve Bank has had the sole right to issue banknotes in New Zealand. From 1 July 1989 responsibility for the issue of New Zealand coin was transferred from the Treasury to the Reserve Bank. Notes and coin are issued in response to the demands of the public, which fluctuate in line with both seasonal and general economic influences, most notably changes in the level of economic activity and in domestic prices. The demand for currency is also influenced by changes in methods of payment, such as the increasing use of credit cards and the automatic crediting and debiting of payments to cheque account balances.

Notes and coin form only a relatively small part of the public's total holdings of money balances, amounting to about one-eighth of the narrowly defined money supply (M1) and roughly 3 percent of the broad money supply (M3). By far the bulk of the public's ‘money’ or ‘near money’ asset holdings is made up of deposits With banks or other financial institutions.

Notes issued by the Reserve Bank are constituted legal tender under the Reserve Bank of New Zealand Act 1964 and consequently bear the words This note is legal tender for…'. Coin also constitutes legal tender in terms of the Decimal Currency Act 1964.

The total value of notes on issue from the Reserve Bank as at 31 October 1989 was $1 151 million.

On 30 April 1990 1c and 2c coins ceased to be legal tender because they cost more to make than their face value. A large number of 1c and 2c coins have already been withdrawn. The Reserve Bank also expects to introduce $1 and $2 coins about the middle of 1990. These will replace $1 and $2 banknotes. A 1990 commemorative $10 banknote will also be introduced.

Monetary policy

Monetary policy is implemented by the Reserve Bank on behalf of the Government. Under current government directive, the prime objective of monetary policy is price stability. In recent years the Reserve Bank has maintained a firm monetary policy stance to reduce New Zealand's level of inflation and, ultimately, to achieve and maintain relative price stability. Progress towards achieving this objective saw consumer price inflation falling to its lowest levels since the early 1970s (excluding the wage-price freeze of 1982–84) by the beginning of 1989 (see section 23.1, Consumer prices).

After the change of government in 1984 all direct controls on the financial sector were removed. (For a description of the conduct of monetary policy prior to 1984 see the 1987–88 Yearbook.)

Since 1985 monetary policy has operated primarily by controlling the level of the monetary base (liquid claims on the Reserve Bank). The definition of the ‘monetary base’ currently used by the Reserve Bank is ‘primary liquidity’. Since late. 1988, this aggregate has comprised the cash balances held by settlement banks at the Reserve Bank plus those Reserve Bank bills (of 28 or fewer days to maturity), which the Reserve Bank is prepared to repurchase at a discount at any time, and which therefore constitutes a potential source of settlement cash for the financial system.

Prior to late 1988 government securities with less than 30 days to maturity outstanding were used as the discountable security. Since then Reserve Bank bills have been used instead, to allow better distinction between securities issued for the Government's funding needs, such as Treasury bills, and those issues to allow the operation of monetary policy.

Financial institutions seek to hold primary liquidity as a buffer stock in order to enable them to settle daily transactions with the Reserve Bank financial institutions and other financial institutions. By controlling the supply of settlement cash and primary liquidity relative to demand, the Reserve Bank can influence short-term interest rates and those other variables which affect the level of nominal economic activity and inflation: most notably, the overall interest rate structure, money and credit growth and the exchange rate.

The Reserve Bank controls the supply of settlement cash, through its daily open market operations, (i.e., the purchase or sale of Treasury bills, government stock or ‘sell-back’ agreements i.e., short-term loans secured against Treasury bills or government stock). The supply of Reserve Bank bills is controlled through twice-weekly tenders. By selling stock the Reserve Bank takes money out of the system and this in turn keeps the money supply tight, affects interest rates and has, therefore, a major influence on price stability. The other instrument used to affect interest rates is the discount margin—the penalty incurred by institutions when forced to sell their holdings of government stock before maturity.

The level of settlement balances has been used as one of the major instruments of monetary policy since 1986. In contrast to 1987–88 (when the Reserve Bank changed the daily settlement target eight times), between March 1988 and December 1989 the cash target was altered temporarily on two occasions to offset pressures in the short-term money market. Meanwhile, the discount margin remained unchanged at 1.5 percentage points above market rates, as it had since late 1987. The settings of the various instruments are not considered to be of importance in their own right, but rather are altered as appropriate to achieve price stability objectives. When making its assessments of monetary conditions, the Reserve Bank monitors a wide range of indicators, including the exchange rate and the level and term structure of interest rates.

During 1989–90 the Reserve Bank continued to operate a firm monetary policy, but the pressures of an increase in the goods and services tax from 10 percent to 12.5 percent and strong export commodity prices reversed some earlier progress in reducing inflation and inflation expectations. Monetary policy continued to be focused on the objective of achieving price stability (0–2 percent annual increases in consumer prices) by the end of 1992. From time to time over the year the Government came under pressure to reverse the means adopted to achieve price stability. However, the long-term gains from achieving price stability were considered to outweigh any temporary short-term gains which may follow from an easing of monetary policy.

Table 24.6. MONEY SUPPLY AND CREDIT AGGREGATES

Selected aggregatesAs at 31 March
19851986198719881989

* Readily available money supply.

† Broad money supply, including term deposits.

Source: Reserve Bank of New Zealand.

 $(million)
Monetary
     Notes and coin held by the public718831868846949
     Transaction account balances—
               (a) Registered banks2,5163,0043,7374,9985,383
               (b) Savings institutions2723945311,6082,142
     Less, inter-institutional transaction balances726811574345
     Less, government deposits5662637641
               M1*3 3784 0994 9587 3028 188
     Other funds—
               (a) Registered banks9,37911,85715,36223,53425,425
               (b) Financial corporations7,55810,89714,01510,4838,965
               (c) Savings institutions7,0607,6518,3518,6069,817
               Total23 99730 40537 72842 62344 207
     Less, other inter-institutional funding2,0461,7633,7054,9155,710
     Less, government deposits299355438251454
               M325 03032 38638 54344 75946 231
Credit
     Gross claims—
               (a) Registered banks9,42811,67316,34325,90629,249
               (b) Financial corporations10,67515,36316,62613,72712,444
               (c) Savings institutions4,4595,7106,7878,93110,926
               (d) Other (Reserve Bank)1317202427
 24,57532,76339,77648,58852,646
     Less, inter-institutional claims1,4891,6023,0255 238x7,384
               Private sector credit23 08631 16136 75143 350x45 262
     Marketing and stabilisation1,1291,405−40−69−157
     Claims on government—
               (a) Registered banks2,1572,8763,3594,3403,601
               (b) Financial corporations1,2022,1691,463846570
               (c) Savings institutions3,1272,9132,3461,6141,817
               (d) Reserve Bank−490−3831,1889282,621
               (e) Coins in circulation66758397103
               Total60627 6508 4397 8258 712
Domestic credit30 27740 21645 15051 106.x53 817

Government securities market

The Government currently sells three types of debt instruments to meet its core financing requirements:

  • Government stock, which is a medium-term (generally 2–5-year) instrument paying a fixed coupon or interest rate, and aimed at the wholesale market (mainly large institutional investors). (Since September 1983, government stock has been sold through regular, competitive tenders, whereby the price, or the effective yield, is determined by market bids. Previously stock was sold by ‘tap’ issue, whereby the Government set the price of the issue, and the amount sold was determined by market demand.)

  • Treasury bills, which are short-term (usually less than one year) wholesale debt instruments. They are used to meet the Government's seasonal financing needs during the year and, more recently, since the introduction of the Reserve Bank bill in 1988 as part of the Government's baseload funding requirement. (Bills are ‘zero coupon’ instruments, i.e., they pay no interest but rather are initially sold at a discount to their par value, implying an effective yield for the holder of the bills. Bills have been sold through regular weekly tenders since January 1985; previously being sold by tap issue); and

  • Retail stock, which is aimed mainly at small savers. (Since November 1985, the sole retail instrument on issue has been ‘Kiwi Bonds’. This is a fixed-interest instrument which is transferable, i.e., may be sold by the holder to another party. Changes made in 1988 also mean that the bonds are now more readily redeemable prior to maturity. Kiwi Bonds are issued with six-month, one-, two- and four-year maturities. The interest rates on new issues are related to the current market yields on wholesale government stock of comparable maturities.)

The secondary market in government securities (where existing debt instruments are bought and sold) is largely confined to government stock. Turnover in the market has grown significantly since 1984, with transactions usually in multiples of $1 million with settlement on a seven-day basis.

A futures contract on five-year government stock has been traded on the New Zealand Futures Exchange since March 1986. This involves an agreement to buy or sell stock at an agreed price at some point in the future and is an important device for hedging interest-rate risk. Each contract is for $100 000 of stock.

The Reserve Bank maintains registers of stock for government, local authorities and other public bodies and several state-owned enterprises.

At 30 September 1989, the value of total government securities registered was $22 326 million, a decrease of 8 percent over the year. These securities comprised Treasury bills and other wholesale government stocks, of $21 220 million, and government retail stock of $1 106 million. These figures do, however, exclude securities issued by state-owned enterprises. In recent years several government departments have changed their status, and as a result no longer rely on funding from government stock.

Table 24.7. GOVERNMENT SECURITIES ON ISSUE

 Year ended
September 1988March 1989September 1989
 $(million)
Ordinary government stock, by maturity:
     Less than or equal to 1 month0.749.6
     More than 1 month, up to 3 months142.74.5902.0
     More than 3 months, up to 6 months1 827.31 152.91 516.8
     More than 6 months, up to 2 years4 225.45 024.94 236.1
     More than 2 years, up to 5 years7 251.97 664.86 823.2
     More than 5 years4 115.32 245.51 917.5
Treasury bills by maturity:
     Less than or equal to 3 months1 863.43 055.42 809.8
     More than 3 months, up to 6 months2 445.01 648.4
     More than 6 months, up to 1 year
Index linked stock1 455.21 421.51 316.9
Kiwi stock159.4149.6124.9
IASBs456.1381.0335.0
ONZ Bonds19.415.012.5
Premium stock
Savings stock
Kiwi Bonds267.2373.3633.6
               Total internal public debt24 229.021 488.422 326.3
Source: Reserve Bank of New Zealand.

Foreign exchange

Since March 1985 the New Zealand dollar has ‘floated’, with its value against other currencies determined by demand and supply in the foreign exchange market. This contrasts with the previous arrangements, where the authorities had set the exchange rate, by virtue of the Reserve Bank being prepared to clear the market, (buying or selling foreign exchange), at a predetermined rate. The Reserve Bank continues to monitor the market. It also purchases some of the Government's current account foreign exchange requirements in the market, but no longer quotes exchange rates or stands in the market to buy or sell foreign currency on demand. Accordingly, there is no impediment to authorised foreign exchange dealers dealing with their customers in currencies at negotiated rates.

Recent changes in exchange rates. The main feature of foreign exchange rates during 1989 was a low level of volatility. The trade-weight exchange rate index remained remarkably stable at an average of 60.7 (see table 24.8). This was in contrast with the previous year—when high domestic interest rates kept upward pressure on the exchange rate, and periods of uncertainty in financial markets resulted in some sharp movements.

A drop in the exchange rate around August 1988 was associated with by easing domestic, interest rates, with declining inflation and expectations of inflation.

The dollar remained very stable against the basket of currencies of New Zealand's major trading partners. From August 1988 there was a gradual appreciation of the New Zealand dollar against the yen, a slight depreciation against both the United States and Australian dollars, and reasonable stability against sterling and the Swiss franc. These movements reflected the trends displayed by these currencies against each other, rather than any particular change in the value of the New Zealand dollar.

In January 1989 the New Zealand dollar tended to trade on the back of movements in the United States and Australian currencies rather than on any locally generated momentum. Trading in the New Zealand dollar was dominated by movements in the Australian dollar. The New Zealand dollar fell against the United States dollar on the strength of the association with the weakening Australian currency. The New Zealand dollar bounced back up in February 1989 as the Australian dollar recovered. The New Zealand dollar was also supported by exporter buying, and benefited from confirmation of an improving trend in the New Zealand current account at this time.

In April-May 1989, exporter demand and a resurgence in European and United States institutional interest following the release of a favourable OECD report on the New Zealand economy, kept demand for the New Zealand dollar steady. In July the exchange rate index declined to 59.8, affected by market uncertainty concerning the consequences of the Government's decision to retire domestic rather than foreign debt. Confidence returned when rating agencies confirmed that New Zealand's credit rating would not be affected by the decision to the foreign debt payments.

Announcements regarding economic policy such as the lowest annual balance of payments deficit in 15 years, and a June current account surplus of NZ$235 million, contributed to the appreciation of the exchange rate in August 1989. In the latter part of 1989, the exchange rate index remained steady. Although the New Zealand dollar has not been sought after as an investment currency, exporter demand continued to underpin the exchange rate.

The ‘real exchange rate’ is defined as exchange rates as traded, adjusted for price levels at home and abroad. Movements in the real exchange rate indicate changes in the competitiveness of the traded goods sector. (A rise in the real exchange rate indicates reduced competitiveness.)

Compared to the approximately 18 percent appreciation in the real exchange rate over 1987–88, the real exchange rate depreciated at the end of 1988, resulting in a gain in international competitiveness. This depreciation in the real exchange rate was largely due to a decline in the nominal exchange rate brought about by the easing in domestic interest rates. This resulted in a firm overall level of exporter demand in the following year.

The role of inflation and expectations of inflation on the real exchange rate during the latter part of 1988 and throughout 1989 was limited.

As at December 1989 there were 16 authorised foreign exchange dealers (14 of which were registered banks). With the passing of the Reserve Bank of New Zealand Act 1989, foreign exchange dealers are no longer subject to separate authorisation procedures. Supervision of the foreign exchange dealing activities of registered banks will fall within and form part of the normal supervision of registered banks.

Recent foreign exchange trading. In contrast to the last few years, in which there has been a significant expansion of New Zealand's spot and forward foreign exchange markets, foreign exchange turnover in 1989 was reasonably stable ranging between an $11.6 billion and $14.0 billion daily average. This range represented an overall decline in foreign exchange turnover. During the 1987–88 financial year total turnover in the New Zealand foreign exchange market was at an average of NZ$14 billion a day over the last six months of the year. The average daily foreign exchange turnover during 1989 was NZ$12.7 billion. The decline in foreign exchange turnover occurred mainly in the New Zealand dollar foreign exchange market, while transactions in other currencies were at levels similar to the two years before.

The highest levels of foreign exchange transactions in 1987–88 were recorded during periods of market instability. A decline in turnover in 1989 in part reflected the general stability evident in the New Zealand dollar market.

At no time over the last year has central bank intervention been necessary to restore stability to the market. Under the Government's policy of non-intervention in the foreign exchange market (except to stem extreme disorder) no direct intervention has been undertaken by the Reserve Bank in the foreign exchange market to influence the exchange rate since the currency was ‘floated’ in 1985.

Table 24.8. FOREIGN EXCHANGE RATES*

End of periodUS mid-rate (US$ per NZ$1)UK mid-rate (Stg per NZ$1)Aust. ‘mid-rate (AS per NZ$1)Japan mid-rate (Yen per NZ$1)West Germany mid-rate (DM per NZ$1)Switzerland mid-rate (Franc per NZ$1)Exchange rate index, Base: June 1979(=100)

* The US rates are representative market mid-rates at 3pm on the last working day of each month. Exchange rates for currencies other than the US dollar are market determined indicative mid-rates at the last business of each month.

† The exchange rate index is as calculated at 3pm on the basis of representative market rates for the currencies in the basket. On 23 November 1987, the Reserve Bank switched to a ‘new nominal exchange rate index’. All previous index figures have been recalculated on this basis.

Source: Reserve Bank of New Zealand.

1988—Jan0.66350.37580.938385.161.11690.909266.5
            Feb0.66510.37520.925385.321.12320.923466.7
            Mar0.65120.35010.889181.721.08900.899664.1
            Apr0.67540.35870.886583.691.12190.930765.7
            May0.69350.37510.862086.691.19630.999366.8
            Jun0.67600.33890.844688.651.21381.006467.1
            Jul0.66600.38690.828488.291.24381.035066.1
            Aug0.60750.36180.755882.341.13980.962861.0
            Sep0.61240.36500.781882.461.15490.977961.7
            Oct0.62820.35430.762478.881.11250.937960.5
            Nov0.65620.35420.745879.631.13350.947661.1
            Dec0.62860.35080.734579.011.12320.951459.9
1989—Jan0.60600.34530.688278.611.13070.961757.8
            Feb0.62390.35700.781278.621.13040.964661.2
            Mar0.61650.36530.752781.541.16601.018260.9
            Apr0.61620.36390.774181.281.15421.020361.5
            May0.58780.37380.784783.801.17161.018661.7
            Jun0.57300.36970.755582.071.12040.962960.2
            Jul0.58150.35080.775080.691.08960.937359.8
            Aug0.58970.37310.768984.931.15040.991061.6
            Sep0.59160.36640.763882.901.11120.962660.6
            Oct0.58760.37150.750583.411.07800.943360.4
            Nov0.58990.37630.755284.241.05300.937560.9
            Dec0.59500.37190.750885.701.00790.920460.8
1990—Jan0.59570.35500.779786.101.00680.887261.2
            Feb0.58880.34810.775387.410.99240.873061.2
            Mar0.57980.35380.768990.550.98160.866061.7

Contributors

  • 24.1–24.2 Reserve Bank of New Zealand.

Historical Reserve Bank of New Zealand; Department of Statistics.

Further information

Bank of New Zealand Annual Report. Explaining Inflation (pamphlet). Reserve Bank of New Zealand, 1989.

Finance, Insurance and Business Services, 1987. Department of Statistics.

Financial Policy Reform. Reserve Bank of New Zealand, 1986.

Financial Services Industry: Effects of Regulatory Reform. New Zealand Institute for Economic Research, 1986.

Financial Statement (‘Budget’, Parl. paper B. 6).

Monetary Policy and the New Zealand Financial System. Reserve Bank of New Zealand (2nd ed., 1983).

Key Statistics. Department of Statistics (monthly).

Report of the Bank of New Zealand (Parl. paper B. 15) until 1988.

Report of the Registrar of Building Societies (Parl. paper B. 14) until 1987.

Report of the Registrar of Friendly Societies and Credit Unions (Parl. paper B. 18).

Report of the Reserve Bank of New Zealand (Parl. paper B. 16).

Reserve Bank Bulletin. Reserve Bank of New Zealand (quarterly).

Weekly Statistical Release. Reserve Bank of New Zealand.

Chapter 25. Public sector finance

25.1 Central government finance

Expenditure

New Zealand has a centralised form of government developed from the Westminster style. Unlike more populous Canada and Australia, New Zealand does not have a system of state or provincial government. The Cabinet, representing the Executive, sets up organisations to propose the funding for departmental activities, and this expenditure is subject to Parliament's approval and control.

In recent years, legislative reviews have brought about several changes in Parliament's traditional forms of control over the financial activities of central government.

Historically, parliamentary control has applied to the financial activities of the Crown, either through agencies of the Crown itself or through agencies possessing separate legal status.

Types of organisations. The following six types of central government organisations have evolved:

  • Government departments operating in the name of the Crown as described in the Public Finance Act 1989.

  • Government departments operating on a user-pays philosophy, in the name of the Crown (e.g.. Government Printing Office until 1 July 1990).

  • Self-funding organisations (e.g., the Public Trust Office), operating either in the name of the Crown or with legal status separate from the Crown.

  • ‘Quangos’ (e.g.. Law Commission), which operate with legal status separate from the Crown but which are dependent on Parliament to fund expenditure.

  • Other organisations (e.g., Broadcasting Commission). Crown agencies, which operate with legal status separate from the Crown.

  • State-owned enterprises (e.g.. Telecom Corporation until 1990, and New Zealand Post), which operate with legal status separate from the Crown and in which the only legal authority is that conferred through ownership of shares by the Crown.

The funding process. All the above types of organisations, except state-owned enterprises, the Public Trust Office and some Crown agencies, require Parliament's authority before funding their activities. This authority can take the form of annual appropriations or standing statutory authority (permanent legislative authority). Permanent appropriations are used where some independence from Parliamentary control is constitutionally desirable (such as judges' salaries) and for debt servicing.

Annual expenditure is appropriated by an act of Parliament and is included in the annual Estimates of Annual Appropriations and Departmental Budgets. These estimates are presented to Parliament and show the requirements of individual government departments and other activities. They are tabled in Parliament as part of the Budget papers at the beginning of the financial year.

However, the Budget covers much more than the expenditure proposals contained in the Estimates. It is also concerned with the whole range of the Government's financial and economic policy. It details—through tables—taxation and other revenue sources, expenditure patterns and debt transactions. Within Parliament, the Estimates are reviewed by select committees and debated in the House each year.

Actual authority to spend money is approved by Cabinet, although much of Cabinet's authority has been delegated to ministers (either departmental ministers alone or jointly with the Minister of Finance) or to chief executives for the bulk of routine transactions.

As well as reporting to Parliament on their requests for annual appropriations, departments also submit annual reports to Parliament. Departments are required to produce annual and half-yearly financial statements under the Public Finance Act 1989. The chief executives of departments are also being held increasingly accountable by reforms such as those in the State Sector Act 1988 (see section 3.3, State sector).

Chief executives of state-owned enterprises are accountable to their respective boards in the same way as other public companies. Each state-owned enterprise is required to manage and report on the investment of shareholders' funds, as is the case for public companies. This involves tabling in Parliament financial statements which outline corporate objectives, performance targets and dividend policy. Parliament and its committees exercise influence over the achievements of these enterprises by scrutiny of their reports, and the Crown, through its ministers, has the authority to direct the enterprises on any recommendations arising from examination of such reports in Parliament.

Recent reform. The Public Finance Act 1989 is the most recent development affecting the way the Crown, government departments and Crown agencies manage and report on expenditure. It is part of the Government's strategy to improve the overall eminency of the economy and is the culmination of substantial reform in the public sector.

Just as the State Owned Enterprise Act 1986 and the State Sector Act 1988 sought to make organisations more accountable, while providing the necessary powers for decision-making, the Public Finance Act 1989 addresses the financial management and reporting elements of the restructuring.

It will take some departments more time than others to implement these changes. Furthermore, some departments will be able to take the reforms further than others. The Public Finance Act therefore allows for three modes for Parliament to appropriate resources for their use. Each mode constitutes a different form of parliamentary control over the activities of government. Within each mode, appropriations will be made in three ways:

  • For ‘classes of outputs’, e.g., costs incurred by departments in producing goods and services;

  • For capital investment: and

  • For supply of funds for benefits and grants distributed by departments on behalf of government.

The only change from the previous method of appropriation is that departments will be required to report on operating costs (programmes) and capital expenditure separately, thus giving Parliament more information about the Government's role as owner and purchaser.

As owner, the Government is concerned about the efficiency with which departments use the resources it has invested in them, and whether those funds could be better invested elsewhere. As purchaser, the Government is interested in the quality and quantity of outputs, and whether better or cheaper outputs could be purchased from other suppliers. Chief executives are responsible for both types of performance.

By distinguishing these two interests, the Government can compare the financial performance of its investment in different departments, and compare the cost of outputs from different sources. This will open the way for increased competition within the public sector. Also, where government departments operate in competition with private sector suppliers, the management reforms will help ensure that departments have neither advantages nor disadvantages compared with that competition. Also, public sector managers will be able to demonstrate the quality of their performance in comparison with other suppliers of goods and services.

Once a department moves to the new system it adopts new cash management procedures which give it much more control over its own finances. These departments will have their own departmental bank accounts which are funded centrally. In addition, where they make payments on behalf of the Crown, or collect receipts on behalf of the Crown they may have a delegation to operate a bank account which will be an account within the Crown Bank Account.

The Public Finance Act 1989 replaces the 1977 Act (except those provisions relating to the Audit Office), and provides a new basis for the appropriation and management of public financial resources. It is intended to give Parliament better information on which to base its decisions on how public money should be spent, and to assess afterwards whether the money has been well spent.

The former system of cash budgeting, appropriations and reporting was designed to monitor the compliance of departments with legal and administrative requirements. However, it did not necessarily provide information on whether the purposes of government activity were being achieved, whether departments produced their goods and services efficiently or what they were supposed to produce.

The key aspects of the reformed financial management system are as follows:

Accrual accounting. By 30 June 1991 departments will progressively be required to produce financial statements prepared on an accrual accounting basis.

When all departments are operating under the new system in 1991, the Crown will be able to produce consolidated financial statements for departments and Crown agencies. Until that time the financial statements of the Crown will continue to be on a cash basis. (The tables below therefore show the financial statements of the six accounts which make up the Public Account through which public money has been appropriated under the cash-based method of accounting.)

Accrual accounting measures the full cost of activities by allocating costs to the period in which they are incurred (or revenue when it is earned), rather than to the period in which cash is paid (or received). Another important feature of the new accrual accounting system is that records of assets and liabilities will be kept, so that the true financial position or net worth of the organisation can be determined.

The new system will allow departmental managers more flexibility in choosing the inputs they use to produce goods and services for the Government. Controls such as those which required departments to acquire office supplies, office space, computing services and other inputs from designated government agencies have already been removed.

This higher level of discretion for managers is balanced by much tighter accountability. The Public Finance Act 1989 specifies the minimum information to be presented in the Estimates of Annual Appropriations and Departmental Budgets and requires both the Crown and departments to present to Parliament half-yearly and annual audited financial statements.

New balance date. Under the new system of financial management, the annual Budget cycle is changed in two significant ways. Firstly, the Government's balance date has been moved from 31 March to 30 June, beginning in the 1990 financial year. Secondly, departments' corporate plans are integrated with the Budget and with the performance agreements between ministers and chief executives.

Because the new Budget cycle links into corporate planning, departments will be able to co-ordinate all their planning processes. In the past the corporate planning cycle often operated independently of the Budget cycle. (The first full cycle incorporating all these changes will take place in the 1990–91 financial year.)

While the Government's balance date is changing, the timing of the various phases of the Budget cycle and the tax year remain unaltered.

Because departments have not yet completed a full year under the new balance date the tables in this section show the financial position for the year ended 31 March 1989, the latest year for annual figures as reflected in the public accounts.

Changes in Crown banking. The former system of public accounts has been replaced by two main types of bank accounts for public money—departmental accounts and a Crown Bank Account—and a third account, a Trust Bank Account for trust money.

Departmental bank accounts may contain the following types of revenue; money disbursed to the department by the Treasury; receipts from departmental revenue; and receipts from the disposal or sale of the department's assets. A suite of Crown Bank Accounts is used to collect all receipts other than departmental revenue. Examples of Crown revenue are: taxes, fines, duties, levies etc. Payments from the Crown Bank Account include benefit payments, disbursements to departmental bank accounts and debt servicing.

A Trust Bank Account may include either unclaimed money or money used to pay a third party or settle a transaction or dispute. Treasury is responsible for managing trust money but can delegate responsibility for this to departments. If this occurs the department(s) concerned is required to establish and maintain a Trust Bank Account to hold money separate from public funds. Prior to 1 July 1989, trust money could be held within or outside the main operating account, and only those moneys held within that account were reported in the Public Account. Under the new Act, all trust money must be reported in the financial statements of the Crown.

The Crown's central treasury function (the New Zealand Debt Management Office in the Treasury) is responsible for managing the Government's overall cash balance, including an overnight offset of the Crown's departmental balances to make most effective use of any net surplus or to minimise the cost of any shortfall.

By moving government's operating accounts to the private sector, the new system also distinguishes the management of the Crown's own finances from monetary policy, which is implemented by the Reserve Bank (see section 24.2, Money).

Former structure of the public accounts

The general structure of the public accounts prior to the introduction of the Public Finance Act 1989, is set out below for the purposes of the statistics in the tables which follow:

Consolidated Account and National Roads Fund. All taxation was credited to either the Consolidated Account or the National Roads Fund. The Consolidated Account also received most miscellaneous revenues, and ordinary expenditure was debited to it.

Highways taxation was credited to the National Roads Fund, which met both capital and maintenance expenditure on roading, but a proportion of the motor spirits duty and road user charges were credited to the Consolidated Account.

Loans Account and Loans Redemption Account. The Loans Account received loan money raised for works and development. A proportion of this was transferred to the Consolidated Account, and most of the balance advanced by way of capital to the Housing Corporation, the Ministry of Energy, and other state enterprises outside the public accounts.

Money received into the Loans Redemption Account included an annual contribution from the Consolidated Account towards the repayment of the public debt, the proceeds of issues of Treasury bills, and money borrowed for the purpose of repaying or converting loans to the Crown. The main purpose of the account was the repayment or conversion of loans, but money not required for these purposes could be transferred to the Loans Account.

Reserve Account and Trust Account. Any money in the Consolidated Account regarded as surplus to immediate requirements could be transferred to the Reserve Account and invested in New Zealand or overseas. The Minister of Finance had authority to realise these investments and transfer the proceeds to the Consolidated Account at his or her discretion.

Money held in trust or awaiting disposal was paid into the Trust Account, from where it could be invested in government or other approved securities.

In addition to these six accounts there was a Suspense Account, for receipts banked to the credit of the public accounts but not allocated to one of the six accounts.

Table 25.1. GOVERNMENT EXPENDITURE: PUBLIC ACCOUNT

ItemYear ended 31 March
198819891990
GrossNet*GrossNet*GrossNet*

* Net expenditure is generally arrived at by deducting trading and departmental receipts from gross expenditure.

† Include the Government Computing Service, previously under general administration.

‡ This total does not include the net $380.7 million spent on major project and producer board debt refinancing ($370.7 million in fuel and power and $10.0 million in transport).

§ This total does not include provision for Supplementary Estimates, or the provision of $32.1.1 million spent on major project debt financing in fuel and power in 1988 and $316.9 in 1989.

Source: Treasury.

 $(million)
     Administration—
     General administration1 578.81 384.71 928.31 758.01 912.01 626.7
     Law and order831.6681.41 039.4847.21 045.5863.7
     Government services1 844.6141.7140.02.0109.10.1
     Miscellaneous services20.115.824.419.719.215.3
 4 275.02 223.53 132.12 626.93 085.72 505.6
Foreign relations—
     Defence1 278.51 257.61 413.01 390.21 390.81 366.9
     Foreign affairs277.5256.0290.5263.7303.0244.0
 1 555.91 513.61 703.51 653.91 693.81 610.9
Development of industry—
     Land use626.5343.0633.0391.5610.2355.7
     Fuel and power1 184.2119.61 424.3136.51 371.097.9
     Other industrial services980.4887.0987.7845.7885.3744.2
 2791.11 349.63 045.01 373.73 866.51 227.5
Education—
     Education3 179.33 118.23 568.83 481.33 637.93 569.2
Social services—
     Social welfare7 190.87 142.48271.68 204.68 234.48 177.2
     Other social services991.6649.51 160.8856.81 209.0946.1
 8 182.47 791.99 432.49 061.49 443.49 123.3
Health—
     Health3 397.13 387.53 633.13 622.73 652.63 639.3
Transport and communications—
     Transport774.1654.81 013.1718.9905.6672.0
     Communications
 774.1654.81013.1718.9905.6672.0
Debt services and miscellaneous investment and financing transactions—
     Debt services4 970.94 970.94 575.04 575.04 492.54 492.5
     Miscellaneous investment transactions3 460.0−1 241.215 539.4−3 228.47 467.1−2 282.8
     Miscellaneous financing transactions−652.3−816.8−816.8
 8 430.93 077.320 114.4529.711 959.61 392.9
               Total32 585.823 116.645 642.423 068.5§37 245.023 740.8

Table 25.2 combines net expenditure with the Government's revenue to determine the amount to be financed by borrowing (the deficit).

Table 25.2. FINANCING OF GOVERNMENT EXPENDITURE

 Year ended 31 March
198719881989

* In 1987–88, $1 057.6 million was spent of which $307.7 million was in fuel and power. $10.0 million in transport and $676.9 million from the Trust Account. In 1988–89, $1719.9 million was spent of which $316.9 million was from fuel and power and the balance from the Trust Account. In 1989–90. it is estimated that $1413.0 million will he spent of which $83.0 million will be from fuel and power and the balance from Vote: Treasury.

Source: Treasury.

 $(million)
Expenditure*
     Administration1 471.22 223.52 501.6
     Foreign relations1 327.11 513.61 610.9
     Development of industry1 483.91 349.61 227.5
     Education2 595.23 118.23 569.2
     Social services6 479.27 791.99 128.3
     Health2 957.33 387.53 639.3
     Transport and communications1 039.5654.8672.0
     Debt services4 091.94 970.94 492 9
     Misc. investment transactions−11.9−1 241.2−2 282.8
     Misc. financing transactions−488.2−652.3−8518
          Subtotal20 945.123 116.623 740.8
Supplementary estimates
          Total expenditure(1)20 945.123 116.623 740.8
Expenditure on major projects and producer boards refinancing*3 358.01 057.61 719.9
          Total expenditure(2)24 303.124 174.225 460.8
Financed from
     Direct taxation:
       Income tax:
         Individuals10 906.211 396.212 862.9
         Companies1 221.22 026.41 903.2
         Other304.4377.3211.8
       Other direct taxation98.7120.6217.6
     Indirect taxation:
       Goods and services tax1 228.73 818.54 338.8
       Sales tax1 016.71 924.61 869.3
       Other indirect taxation2 213.21 354.8899.0
     Highways taxation419.0509.6561.3
          Total taxation17 408.121 528.122 863.9
     Interest, profits and miscellaneous receipts1 584.42 055.62 609.4
          Total revenue18 992.523 583.825 473.3
     Amount financed from borrowing net of refinancing of major projects and producer boards (surplus)1 952.6−467.3−1 732.5
     Amount financed from borrowing including refinancing of major projects and producer boards (surplus)5 310.5590.4−12.6
     Borrowing in New Zealand5 505.54 475.36 054.7
     Less, repayments in New Zealand2 456.83 601.35 307.3
 3 048.7874.0747.4
     Plus, sales (less purchase) of investments706.1480.6−99.7
     Net borrowing/(repayment) in New Zealand3 754.81 354.6647.7
     Internal surplus/deficit(1 555.7)764.2660.2
     Borrowing overseas12 523.07 771.77 127.5
     Less, repayment overseas5 941.110 506.28439.5
 6 581.9−2 734.5−1 312.0
     Plus, sales (less purchase) of overseas investments(5 021.2)1 967.5655.8
     Net borrowing/repayment overseas1 560.7−767.0656.2
     Cash surplus/deficit5.0−2.84.1

Table 25.3. GOVERNMENT EXPENDITURE: CONSOLIDATED ACCOUNT

Item198719881989x

* New votes established since 1 April 1986.

Source: Treasury.

 $(000)
Permanent appropriations—
     Under special Acts, legislature—
               Civil List8,1029,45410,279
Debt services—
     Interest4 069 4384 947 7624 487 273
     Transfer to Loans Redemption Account320,0221 974 789391,114
     Administration and management22,43723,1405,230
                    Debt services4 411 8976 945 6914 883 617
     Superannuation219,369417,905443,307
     Miscellaneous116,292108,975213,713
Subtotal, permanent appropriations and debt servicing4 755 6607482 0345 550 916
Annual appropriations—
     General administration—
               Vote—
                    Accident compensation201261110,784
                    Audit15,44821,26424,366
                    Broadcasting280444301
                    Building Performance Guarantee Corporation2117
                    Conservation*1,028114,548117,650
               Customs59,23769,39075,505
               Domestic and External Security Secretariat*219343
               Environment, Commission for the2,076
               Environment. Ministry for the*1,2485,01966,578
               Environment. Parliamentary Commissioner for the*1321,023834
               Government Life Insurance Corporation396165
               Inland Revenue (Programmes I-VI)186,850244,165302,526
               Internal Affairs (excl. rates rebate and Pacific island affairs)170,217191,601213,641
               Office of the Clerk of House of Representatives*8,676
               Ombudsmen2,1981,6902,215
               Parliamentary Counsel*1,245
               Parliamentary Service26,09641,70232,482
               Privacy Commissioner155176198
               Prime Minister's Office2,8572,1372,472
               Railways232242250
               State Services Commission167,472128,156103,624
               Statistics36,83440,78439,833
               Survey and Land Information*63355,59258,414
               Treasury32,810206,431113,016
               Valuation23,55425,9384,664
               Women's Affairs1,3632,0233,202
                    General administration730,9811 152 8831 282 884
     Law and order—
               Vote—
                    Crown law5,3908,29211,425
                    Justice280,724412,353540,813
                    Police328,312386,144462,823
                    Security Intelligence Service7,5929,4339,775
                    Law and order622,022816,2221 024 836
     Government services—
               Vote—
                    Government Printing Office451,43068
                    Works and Development194,1251 616 734
                    Government services194,1701 618 16468
                    Subtotal, administration1 546 2733 587 2692 307 788
     Foreign relations—
               Vote—
                    Defence1 095 9611 278 4881 390 750
                    Foreign affairs269,839276,103152,112
          Subtotal, foreign relations1 365 8001 554 5911 542 862
Development of industry—
               Land use—
                    Agriculture and Fisheries1 824 752345,101458,870
                    Forest Service381,16264,248
                    Forestry*1,000111,94512,392
                    Lands*19,239 
                    Lands and Survey136,276 
                    Maori Affairs (part Progs. II and IV)51,74352,68061,114
                    Rural Banking and Finance
                    Corporation63,16778,988231
                    Land use2 458 100607,953596,885
               Fuel and power—
                    Energy5 673 763553,720366,786
               Other industrial services—
                    Labour531,155542,108452,325
                    Scientific and Industrial Research149,878167,653186,259
                    Tourist and Publicity53,77176,76783,460
                    Trade and Industry2 272 611147,59992,111
                    Other industrial services3 007 415934,127814,155
                    Subtotal, development of industry11 139 2782 095 8001 777 826
     Education—
                    Education2 617 8993 179 3403637 863
     Social services—
                    Housing Corporation291,392400,440282,177
                    Inland Revenue*5 86 906403,406415,513
                    Internal Affairs (rates rebate and Pacific island affairs)5,0544,9213,431
                    Maori Affairs (Progs. I, III and V, and part Progs. II and IV)97,386182,759189,221
                    Social welfare6 175 1237 190 7638 234 371
                         Social services6 568 9558 182 2899 124 713
     Health
                    Health2 961 1323 397 0773 652 643
     Transport and communications—
               Transport—
                    Works and Development (Prog. III)1,2781,690
                    Transport466,326307,378303,036
                    Transport and communications467,604309,068303,036
                    Annual appropriations26 666 94122 305 43422 346 731
     Unauthorised expenditure71,81972,24430,790
     Transfer to Loans Account3 500 000
     Transfer to Reserve Account40,000
     Exchange differences on overseas transactions168,645131,056176,078
               Total payments31 663 06522 548 73426 053 599

The Transit New Zealand Act 1989 repealed the National Roads Act 1953, abolished the National Roads Board, and established the Transit New Zealand Authority to administer an account known as the Land Transport Account. Table 25.4 will accordingly be replaced eventually by the receipts and payments of the Land Transport Account based on a new balance date, 30 June, for all government accounting.

Table 25.4. NATIONAL ROADS FUND: RECEIPTS AND PAYMENTS

Item1986–871987–881988–89
 $(000)
Receipts—
     Excise duty 268,841296,783
     Motor spirits duty (less refunds)193,814..
     Road user charges (less refunds)210,562240,756264,506
     Other taxation, etc.14,640..
     Receipts from land and property14,29516,225606
     Miscellaneous1,6876,61411,794
     Interest62228,98228,323
     Excess of payments over receipts20,961595
               Total receipts456 581561 418602 607
Payments—
     Expenditure456,574465,026602,604
     Unauthorised expenditure763
     Excess of receipts over payments96,386..
               Total payments456 581561 418602 607
               Balance at end of year38,091113,516112,921
Source: Treasury.

The re-organisation of the public sector has affected net expenditure. The creation of state- owned enterprises removed a number of trading entities from the Public Account, with the residual and non-commercial functions having been assumed by other agencies. In some cases the assets have been sold. In exchange for the net value (or sale price) of the assets and liabilities taken over, the Crown has received or will receive shares and/or loan securities from the state-owned enterprise. Table 25.5 shows the Crown's capital investment in state- owned enterprises managed through the Loans Account.

Table 25.5. LOANS ACCOUNTS: RECEIPTS AND PAYMENTS

Item1986–871987–881988–89

* Includes capital equipment credit arrangements.

Source: Treasury.

Receipts$(000)
Loans raised—
     In New Zealand5 479 3242 840 3843 266 877
     Overseas*33,38021,337..
International Finance Agreements Act 1961—
     Non-negotiable, non-interest-bearing stock and notes issued to international financial institutions6,236104,32717,747
Premiums on issues—27,8226,53720,559
     Excess of payments over receipts903,5154 864 345
               Total receipts5 546 7623 876 1008 169 528
Payments
Permanent appropriations—
     Subscriptions—Asian Development Bank (ADB)1,2931,038..
                    International Bank For Reconstruction and Development (IBRD)463256372
                    International Finance Corporation1,095..
                    International Monetary Fund (IMF)27..
Encashment of securities—Asian Development Bank2,0009001,900
                    International Bank for Reconstruction and Development50..
Charges and expenses of raising loans
     New Zealand363,877155,670262,887
     Overseas 
               Total, permanent appropriations367 635159 016265 159
Annual appropriations—
Development of industry—
       Energy317,00052,300113,731
     Social services—
       Housing Corporation88,21588,620316,835
Payments
Miscellaneous investment and financing transactions—
     Capital participation—
       Airways Corporation of New Zealand Ltd100
       Coal Corporation of New Zealand Ltd100
       Government Property Services100
       Land Corporation Ltd100
       New Zealand Forestry Corporation Ltd100
       Post Office Bank Ltd250,000
     Loans capital—
       Auckland International Airport Ltd67,860
       Christchurch International Airport Ltd30,720
       Coal Corporation of New Zealand Ltd13,000
       Electricity Corporation of New Zealand Ltd3 000 000
       Government Computing Services Ltd27,500
       Land Corporation Ltd69,517
       New Zealand Post Ltd53,000
     Shares capital—
       Airways Corporation of New Zealand Ltd41,000
       Auckland International Airport Ltd105,000
       Christchurch International Airport Ltd14,400
       Coal Corporation of New Zealand Ltd60,800
       Electricity Corporation of New Zealand Ltd3 300 000
       Government Computing Services Ltd27,500
       Government Property Services Ltd311,069
       Land Corporation Ltd201,900
       New Zealand Post Ltd120,000
       Shipping Corporation of New Zealand Ltd12,790
               Total, capital participation7 456 056
     Telecom corporation of New Zealand Ltd3 200 500 
     Post Office (Parl. Vote)385,000
               Total, annual appropriations790 2153 591 4207 886 622
Capital equipment purchased under credit arrangements33,38021,337
Transfer to Consolidated Account11 410 000750,000
Transfer to Trust Account 1 700 000
Security in favour of—
     Asian Development Bank (ADB)1,9391,557
     International Bank for Reconstruction and Development (IBRD)4,297
     International Monetary Fund (IMF)102,77017,747
               Total payments12 607 6814 626 1009 869 528
        Excess of receipts over paymentsCr 7 060 919Cr 750 000Cr 1 700 000
 5 546 7623 876 1008 169 528

Table 25.6. PUBLIC ACCOUNTS: SUMMARY OF BALANCES

AccountBalance at 31 March
198719881989

* Cash received but not yet allocated.

Source: Treasury.

 $(000)
Consolidated Account126,225134,655129,732
Loans Redemption Account385,362162,431168,800
Loans Account8,42154,90670,561
National Roads Fund17,130113,516112,921
Reserve Account396,543415,861449,749
Suspense Account*17,4731,048
Trust Account5 924 0263 545 9432 949 724
               Total6 857 7084 434 7853 882 535

Table 25.7. PUBLIC ACCOUNTS: COMPOSITION OF TOTAL BALANCES

NatureAt 31 March
198719881989
 $(000)
Cash126,235123,440127,499
Imprests105,247133,275133,053
Investments in New Zealand485,7705,158104,844
Investments overseas6 140 4554 1729123517 139
               Total6 857 7084 434 7853882 535
Source: Treasury.

25.2 Taxation

The following summary of the New Zealand tax system takes into account all relevant amending legislation effective at 31 March 1990. The tax year is from 1 April to 31 March.

The principal legislation is the Income Tax Act 1976.

Personal income tax

Income tax is levied under the Income Tax Act 1976 and is chargeable on most forms of income received by individuals, companies, and estates. Income, because of its many forms, is not exhaustively defined, but includes earnings from the following: property; labour or effort; pensions, estates, and trusts; value of benefit allowances received in cash or kind; unemployment benefits and other income-tested benefits paid by the Department of Social Welfare; and wages or income (earnings-related compensation) paid by the Accident Compensation Corporation where a taxpayer is unable to work because of personal injury or incapacity. Total income tax collected from individual taxpayers (including PAYE from employers) for the year ended 31 March 1989 was approximately $12 330 million.

For information on what constitutes income from property see ‘taxes relating to property and transactions’ later in this section.

The rates of tax for the 1990–91 year are:

Income not exceeding $30 87524.0c for every dollar
Income exceeding $30 87533.0c for every dollar

‘Pay as you earn’ system. A ‘pay as you earn’ (PAYE) system of collecting income tax is used for individuals. Income for PAYE purposes falls into two general classes—

Salaries, wages and other remuneration—With these. PAYE tax is deducted at time of payment.

At the beginning of each year employees complete a tax code declaration and in return receive a tax deduction certificate (form IR 12). The certificate is returned to the employee on termination of employment or at the end of the financial year and shows the total amount of income earned; tax deducted; family support received; extra pays; superannuation deducted; the period of employment; and tax-free allowances.

This information is used when the employee completes a tax return at the end of the tax year (31 March).

Most salary and wage earners file tax returns each year and refunds can arise as a result of exemptions and rebates being claimed which are not allowed for in the tax code declaration, or being employed for part of the year only. Most salary and wage earners use the return form IR 5, which is required to be completed and sent to the Inland Revenue Department by 7 June each year.

Salary and wage earners are assessed on their total taxable income, less any special exemptions. Rebates and the taxes previously paid are deducted from the tax assessed to give either a refund or further tax to pay. About 70 percent of returns result in a refund. Further information about exemptions and rebates is given below.

Business, fanning, investment, and professional incomes—With these incomes, tax is not deducted at time of receipt but the taxpayer pays ‘provisional tax’. It may be based on an estimate of the following year's income, but is usually based on either the previous year's or current year's residual income tax. ‘Residual income tax’, is basically the amount of the tax assessed (including any Guaranteed Retirement Income surcharge), reduced by the amount of tax deductions made from source deduction payments, tax paid overseas, tax paid by trustees, etc.

Provisional tax is payable in three instalments. For the majority of taxpayers whose balance date is 31 March, payments are made in July. November and March each year.

Provisional taxpayers use the return form IR 3 which is to be furnished by 7 July for the majority of taxpayers. Expenses are deducted from the gross business or investment income and tax is calculated on the net income less any special exemptions. Credit is given for the provisional tax already paid and for any rebates. If there is an overpayment the taxpayer will receive a refund or credit against future tax. If insufficient tax was paid there will be further tax to pay. Similarly, in some situations interest is charged/paid on the under/overpayment of provisional tax.

Exemptions from tax

Deductions for expenses. For people in business, expenses which are incurred in producing income and are relevant and incidental to deriving that income, may be claimed as a deduction from income. Expenses of a private, domestic, or capital nature are not deductible.

Exempt income. Income is exempt from tax in New Zealand only if provision is made in the Income Tax Act 1976.

Some of the more common items exempt from tax are the following: maintenance or alimony payments; some war pensions and service disability pensions; interest on National Development Bonds (not exceeding $500 in any one year); income derived by charitable and certain non-profit organisations and lottery and raffle prizes.

Rebates. Rebates are deducted from the total tax payable.

Table 25.8. REBATES: YEAR ENDED 31 MARCH 1990

RebateAmount
Income under $9 880A rebate can be claimed if net income was under $9 880. The claim is based on the number of weeks the taxpayer worked for more than 20 hours.
Housekeeper (under certain circumstances)Limited to the smaller of 33 cents for each complete dollar of payment made or $310.
Child rebateIf the taxpayer was a child for whom the Family Benefit was payable, an additional rebate of $156 is available. It is limited to the smaller of 15 percent of income other than interest and dividends received after 1 October 1989 or $156.
Special home, farm, or fishing-vessel ownership account45 cents for each $1 of annual savings increase in Special Home, or Farm Ownership or Fishing Vessel Ownership Account.
Maximum rebateable savings are: Home ownership—$3 000 per year (rebate $1 350); Farm ownership—$5 000 per year (rebate $2 250); Fishing vessel ownership—$5 000 per year (rebate $2 250).
First home mortgage rebateA rebate of 31 cents for each dollar of qualifying interest is allowable to first home owners who also occupy the property. The maximum rebate is $1 000 in any one year and the rebate is allowable in respect of the first five years of ownership. The property must have been acquired prior to 9 November 1984. The year ended 31 March 1990 was the last year in which this rebate can be claimed.
Donations33 percent of all qualifying charitable donations, the maximum rebate being $200. The minimum qualifying charitable donation is $5.
Low income rebateThis compensates low income earners where their rate of tax would be 24 cents in the dollar. The rebate will ensure that low income taxpayers with income below $9 500 will continue to pay tax at the rate of 15 cents in the dollar. The maximum rebate is $855 at the income level of $9 500 and reduces by 4 cents for each dollar of income above this amount.
Source: Inland Revenue Department.

Residential qualifications to pay income tax

New Zealand residents. New Zealand residents are liable to New Zealand tax on all income including income from overseas. Credit is allowed for any tax paid overseas, but this is limited to the New Zealand tax payable on that income.

Non-residents. Non-residents are taxed in New Zealand only on income with a New Zealand source. If the income is interest, dividends or royalties, the person is liable for non-resident withholding tax. This is deducted by the bank or other paying institution.

Changes to the residence laws came into effect on 1 April 1989. The old rules were based on whether a person was present in New Zealand for more than 365 days continuously (resident) or absent from New Zealand for more than 365 days continuously (non-resident) and whether they had a permanent place of abode in New Zealand. The new rules are outlined below.

A person is resident in New Zealand if they:

  • Have a permanent place of abode in New Zealand;

  • Have been present in New Zealand for an aggregate of more than 183 days (about six months) in any 12-month period (residence begins on the first day of the 183 days);

  • Are absent from New Zealand in the service of the New Zealand Government.

A person ceases to be resident in New Zealand if they:

  • Are absent from New Zealand for an aggregate of more than 325 days (about 11 months) in any 12-month period and during that time they do not have a permanent place of abode in New Zealand. Non-resident status begins on the first day of the 12-month period.

A person is taxed as non-resident until they fulfil one or more of the residence criteria.

Permanent place of abode. This is determined by considering where a person usually lives and the strength of the person's links with New Zealand. The following factors may be considered when determining the person's link with New Zealand:

  • Whether their presence in New Zealand is continuous or interrupted;

  • Whether they own property in New Zealand—either accommodation or personal property;

  • Social lies—family, club membership and the like;

  • Economic ties—bank accounts, credit cards, investments etc.;

  • Employment or business in New Zealand;

  • Intention—where the person actually intends to live.

This list is not exhaustive and each case is considered on its own merits.

Transitional provisions. There are transitional rules for the 1990 income year, which is the first year of effect for new rules. The transitional provisions are quite detailed and Inland Revenue offices will supply any needed information.

Pensions. Pensions paid to New Zealand residents by countries with which New Zealand has a double tax agreement are generally exempt from tax in the country of origin and subject to tax in New Zealand. If a pension is taxed in the country of origin, credit is allowed in a New Zealand income tax assessment for the overseas lax paid to the extent that it does not exceed New Zealand tax payable on that income.

Double taxation agreements. Agreements to avoid double taxation have been entered into between New Zealand and Australia, Belgium, Canada, China, Denmark, Fiji, Finland, France, Federal Republic of Germany, India, Indonesia, Ireland, Italy, Japan, Korea, Malaysia, Netherlands, Norway, Philippines, Singapore, Sweden, Switzerland, the United Kingdom, and the United States. A visitor from one of these countries who receives income for personal services in New Zealand from an overseas employer should refer to the relevant agreement.

Capital brought into New Zealand. Capital brought into New Zealand is free from tax, and there is no limit on the amount which may be brought into the country. However, income earned from investing that capital is taxable.

Family assistance

Family support. The family support tax credit and guaranteed minimum family income schemes are designed to assist low-income families by providing regular financial assistance throughout the year—rather than a lump sum payment at the end of each financial year, as had been the case with the previous income tax rebate, the family rebate.

From 1 April 1990, family support payments have been made to the spouse receiving family benefit. (See section 7.1, Income support). Previously payments were split between both partners for couples with children. Family support tax credits paid out during the year ended 31 March 1989 totalled $415.5 million.

The maximum support entitlement is $1872 for the first child and any children aged 16 or over and a further $832 for every additional child under the age of 16.

The maximum entitlement to family support abates as follows:

1991 income year (year ended 31 March 1991) Family income—
0–$17 500nil
$17 501–$27 00018¢ in $
Over $27 00130¢ in $
1990 income year (year ended 31 March 1990) Family income—
0–$16 750nil
$16 751–$27 00018¢ in $
Over $27 00130¢ in $

The system of guaranteed minimum family income payments will remain the same. They will continue to be split between the parents in two parent families, and given to the carer in sole parent families through one of the following methods:

  • By reducing the PAYE tax deducted from a person's wages and thereby increasing the ‘take-home pay’; or

  • As a social welfare benefit or an increase to an existing benefit; or

  • As an income tax credit at the end of the financial year.

Families with children for whom family benefit is payable are eligible for the additional benefit from the family support tax credit and guaranteed minimum family income schemes.

Guaranteed minimum family income. This is a tax credit which is paid in addition to family support. It ensures that families with dependent children receive a set minimum weekly income. Families with a gross ‘family income’ of less than $18 500 per year may qualify for it. The guaranteed minimum family income level for a one-child family is $310 a week after tax.

Retirement tax and Guaranteed Retirement Income surcharge

Retirement tax. From 1 April 1990 a proportion of the existing tax payable on income—to be known as a retirement tax—will be used to meet the cost of the Guaranteed Retirement Income Scheme. Existing income tax rates remain unaffected. Taxpayers calculate the amount of the tax payable on their income by multiplying their taxable income by the rate of the retirement tax at the time of completing their annual tax return. The rate of retirement tax will be announced in the Budget each year. The estimated flat rate (applicable to all income levels) for 1990–91 is 7.5 cents in the dollar of taxable income. Further information about the Guaranteed Retirement Income is contained in section 7.1, Income support.

Guaranteed retirement income surcharge. Prior to 1 April 1988, income from most superannuation schemes was exempt from tax. The removal of this exemption, and the related exemption from tax of some amounts invested in superannuation schemes, has aligned the tax treatment of superannuation with that of other forms of savings.

The new regime taxes both contributions to, and the income of, superannuation schemes, but allows withdrawals to be tax free. Taxpayers effectively now pay the same tax on their savings if they save with a bank rather than with a superannuation fund.

From 1 April 1990, 50 percent of any income paid out from a registered superannuation scheme or annuity paid by a life office is included in income for the purpose of calculating the Guaranteed Retirement Income surcharge (formerly the national superannuation surcharge).

For the year ended 31 March 1990 there was is a percentage surcharge on income received by people who also received Guaranteed Retirement Income. An exemption of $7 202 applied to that other income before the surcharge took effect. For married couples their combined exemption was $12 012.

Accident compensation levy

Employers are required to pay a levy to meet the cost of the Accident Compensation Scheme. From 1 April 1991, the scheme was extended to cover adults under 60 who are incapacitated by illness. It is also being restructured to provide assistance to those suffering long-term disability. The average rate of employers' levy is to be reduced from $2.45 to $1.65 per $100 of leviable earnings. See section 8.5, Accidents.

Tax on interest and dividend income

New systems are now in place to collect tax on interest and dividends. Interest and dividend income will have tax deducted at source, as is the case with wages and salaries.

Resident withholding tax. From 1 October 1989, interest and dividends became subject to ‘pay as you earn’ (PAYE) tax, which is deducted before the net amount is credited to the recipient. The tax is at a rate of 33 percent for dividends and 24 percent for interest.

Certain recipients of interest or dividends (such as charitable/non-profit organisations, sports clubs and others) may claim exemption from the PAYE tax. In addition, not all persons or organisations who pay interest are required to collect interest PAYE. The booklet Interest PAYE General Guide provides more detailed information for both payers and recipients of interest. It is available from Inland Revenue offices.

All the credits attached to interest and dividends are deducted from the tax payable on the total income when the appropriate return is filed each year, in the same way as PAYE on income from employment. In previous years the first $200 of interest received was tax free but with the advent of the PAYE system this is being phased out. In the year ended 31 March 1990 an exemption of $100 may be claimed, but in future years no deduction will be allowed.

Imputation. From 1 April 1988, dividends received from a New Zealand company may have imputation credits and/or withholding payment credits attached. An imputation credit is a portion of the tax paid by the company on its taxable profit for the year, and it thus avoids the double payment of tax (i.e., by the company and the individual shareholder) on the same income. Withholding payment credits arise when a New Zealand company receives overseas dividends.

The imputation system integrates personal and business tax with respect to company income distributed as dividends, and allows a credit for tax paid by the company on that income.

Fringe benefit tax

This is a tax at 49 percent of the value of taxable fringe benefits provided by an employer to an employee. It is payable by the employer quarterly during the year. There are three main groups of taxable fringe benefits. These are:

  • The private use or enjoyment of a motor vehicle, or the availability of a motor vehicle for private use or enjoyment, by an employee;

  • Low-interest loans: and

  • Other employment-related benefits, i.e., free, subsidised or discounted transport, goods and services (other than transport), employers' contribution to superannuation funds, and employees' accident, sickness or death benefit funds.

Fringe benefit tax collected during the year ended 31 March 1989 totalled $520 975 000.

Company taxation

Company taxation is also levied under the Income Tax Act 1976, although companies in New Zealand are taxed in a different way from individual taxpayers. The main differences are that:

  • A company does not get any of the special exemptions or rebates which the individual taxpayer may claim;

  • A company docs not get the interest exemptions;

  • Dividends received by a company incorporated in New Zealand are exempt from income tax. This exemption does not apply to life insurance companies;

  • The rate of income tax is different.

New Zealand companies.

Income tax—Resident companies pay tax on their income at the flat rate of 33 cents in the dollar. Company income tax paid during the year ended 31 March 1989 totalled $1 911.6 million.

Excess retention tax—Privately-controlled New Zealand investment companies are liable for an ‘excess retention tax’ if the investment company does not pay a dividend equal to at least 40 percent of its tax-paid profits and 100 percent of its dividends from other companies. The rate of excess retention tax is 35 cents in the dollar on any ‘insufficient distribution’. A refund, of excess retention tax paid will be made if, in a later year, the investment company declares a dividend greater than the amount needed for that year. During the year ended 31 March 1989, $47 000 was paid to Inland Revenue as excess retention tax.

Special types of companies. Differing methods of assessment apply to overseas shipping companies, life insurance companies and certain types of mining companies.

Non-resident companies. Non-resident companies are taxed in the same way as resident companies except that they pay an additional tax of 5 percent of their income on top of the 33 percent rate payable by a resident company. Dividends paid to non-residents are subject to a non-resident withholding tax of 30 percent of the gross income. A withholding tax of 15 percent is payable on interest and royalties. Both of these rates may be limited by the various double tax agreements. This is the final liability except for interest paid between associated persons and royalties (other than ‘cultural’ royalties), when there may be an end- of-year assessment.

These provisions may be varied by a double taxation agreement and the relevant agreement should be referred to. Special concessions apply to non-resident investment companies receiving dividends or interest from approved ‘development investments’, and processors of minerals to the primary metal stage under a ‘special development project’.

Goods and services tax (GST)

This is a broad-based consumer tax levied at a flat rate of 12.5 percent on all goods and services supplied in New Zealand by a registered person. It was introduced on 1 October 1986.

GST does not cover private recreation pursuits or hobbies, employment under a contract of service, or exempt activities. It does apply to some business sales of land and property, local authority rates, fire and general insurance and supplies made by government departments.

Suppliers of goods and services who are registered for GST pay GST on purchases of goods and services, but a credit may be claimed for this tax. Therefore no GST is borne by the supplier, who includes GST in the price of the goods and services sold. This amount, less the input tax paid, is remitted with a GST return to the Inland Revenue Department. GST is therefore only borne by the final consumer.

Registration for GST is compulsory where the value of gross turnover exceeds $24 000 in any 12-month period. Registration is optional for persons with an annual turnover under $24 000 but there are advantages in registering, as unregistered persons cannot claim a credit for GST included in their costs.

The point at which GST is levied is generally the earlier date of invoice or payment.

The standard return period is two months.

From 1 April 1988 to 31 March 1989. $3 100 million was collected in GST

Taxes relating to property and transactions

Sale of property. There is no capital gains tax in New Zealand but certain ‘gains’ are deemed to be income. These are profits on the sale of patent rights, and profits on the sale of property (land and buildings). Generally, profits from ordinary sales of a person's private residence, business, or farm property, are exempt from tax. Apart from ordinary sales of a person's residence, business, or farm property, profits on sale of property may be subject to income tax (in terms of section 67 or section 129 of the Income Tax Act 1976) where the owner:

  • Acquires the property for the purpose or intention of resale;

  • Deals in property.

  • Is a builder.

  • Makes a profit which is primarily due to rezoning or likely rezoning;

  • Subdivides the property within ten years of purchase; or

  • Subdivides the property more than ten years after purchase and carries out extensive subdivisional work before selling. (Only the ‘development profit’ is taxable in this case.)

Any profits will be taxable under section 67. Section 129 applies to property sold within ten years of acquisition. Interest previously allowed as a deduction in respect of land used in the production of income is recovered as assessable income when the property is sold. However, the taxable amount is limited to the extent of any capital profit (i.e., if a loss is incurred, there is no recovery even if interest deductions had been allowed).

There are exemptions to this ‘clawback’ provision, being:

  • Land used primarily for agricultural purposes;

  • Land sold as a result of the death of the owner (or joint owner);

  • Land compulsorily acquired by the Crown; and

  • Land sold in compliance with certain court orders.

Land tax. Land tax is assessed on the total value of land owned at 31 March each year. The land tax system was substantially altered by the 1989 Budget.

Up to and including the 1988 income year, land tax was generally 2 percent of the value of the land less a special exemption of $175 000. It was therefore not payable by any taxpayer whose total interest in property had a value of less than $175 000. The exemption reduced by $1 for every $1 by which the land value exceeded $175 000. Thus no exemption was allowable when the land value exceeded $350 000. Land tax was payable on 7 October each year.

For the year ended 31 March 1989 the rate of land tax was reduced from 2 percent to 1.5 percent of the land value but other provisions remained the same.

From 31 March 1990 the rate of land tax is 1 percent of the land value. The land tax base has been broadened by abolishing most exemptions bused on land ownership and thus applying the tax to virtually all commercial and industrial land uses. These changes, which include the removal of the present exemption of land owned by public and local authorities applies to property held at 31 March 1990.

The special exemption of $175 000 has been repealed. Taxpayers owning land with a total value of less than $10 000 are not required to pay land tax. Owners of fend with a total value exceeding $10 000 are required to pay land tax on the total land value.

Land tax assessed on land held at 31 March 1990 is payable in two equal instalments, on 7 May 1990 and 7 October 1990. In subsequent years it will be payable on 7 May only.

Most of the exemptions for certain types of land, such as residential; historic places sports; racing; rest homes; educational institutions and land used by a charitable organisation, are unchanged. Several exemption provisions have been amended, and some new exemptions have been introduced—national parks; reserves for recreation, science, nature or wildlife; Parliament and the vice-regal residence; Crown land used for museums, cemeteries, libraries and sports; and the national roads network. The latter new exemptions have been introduced because the blanket exemption for Crown land has been repealed.

Estate duty. Generally, estate duty is a lax on the total net worth of a deceased person. The first $450 000 of the final balance of a deceased estate is exempt from death duties, but a 40 percent duty is payable on any amount above $450 000.

The following reliefs have been abolished: widows; widowers; infant children, orphan infant children; and lineal ancestors or lineal descendants in the estates of deceased servicemen. However, there are the following exemptions from estate duty:

Joint family homes—A home registered under the Joint Family Homes Act 1964 is excluded from the dutiable estate of the first spouse to die.

Matrimonial home allowance—Where the deceased had an interest in a matrimonial home (other than a joint family home) that interest is excluded if the home or other property of equivalent value passes to the surviving spouse.

Pensions from superannuation funds—These are excluded from the estate up to $2 000 per annum if payable to the deceased's spouse for the rest of his or her life or until remarriage.

Personal chattels—The value of any furniture and personal effects passing to the surviving spouse is excluded from the dutiable estate. In addition, the first $6 000 of personal chattels passing to any other person is also excluded from the estate.

Charitable bequests—Bequests to charities of up to $25 000 are exempt from duty.

This duty raised $58.8 million in the year ended 31 March 1989.

The pamphlet Estate and Gift Duties, available from the Inland Revenue Department, supplies more information.

Stamp and cheque duty. These duties are levied under the Stamp and Cheque Duties Act 1971. Stamp duties are not payable on instruments executed on or after 17 March 1988, except for duty payable in respect of commercial land and buildings. Duty has been abolished in respect of property such as shares, mortgages, counterparts and goodwill and residential property.

The rates of stamp duty in respect of the transfer of commercial land and buildings is 1 percent for the first $50 000 of the value of the property; 1.5 percent for the excess over $50 000 up to $100 000; and 2 percent for the excess over $100 000.

Cheque duty is computed at the rate of 5 cents for each bill of exchange. A bill of exchange is any promisory note (such as a cheque) other than a banknote.

The pamphlet Stamp Duty, available from the Inland Revenue Department, supplies more information.

Gift duty. Individual or aggregated gifts with a value of over $27 000 in any 12-month period are subject to gift duty.

A gift statement is required to be filed with the Inland Revenue Department for any gift or gifts valued at $12 000 or more.

There is an exemption for small gifts of up to $2 000 in value made by a donor in good faith as part of their normal expenditure.

Table 25.9. RATES OF GIFT DUTY*

Value of itemRate

* Applies to all dutiable gifts made on or after 1 April 1984.

Source: Inland Revenue Department.

$ 
Not exceeding 27 000Nil
27 001–36 0005 percent on excess over $27 000
36001–54 000$450 plus 10 percent of excess over $36 000
54001–72000$2 250 plus 20 percent of excess over $54 000
Exceeding 72 000$5 850 plus 25 percent of excess over $72 000

Credit card transaction duty. A duty of 5 cents is charged for each transaction entered into by the holders of multi-purpose credit cards.

Excise duty

With the repeal of the Sales Tax Act on 30 September 1986 and the introduction of the Goods and Services Tax Act 1985 on 1 October 1986, some goods that previously attracted sales tax were identified as being liable to excise duty, namely alcoholic beverages, tobacco products, motor vehicles, petroleum and gaseous fuels.

Legislation requires that all areas where goods subject to excise are manufactured be licensed under the Customs Act 1966.

Excise duty becomes due upon removal of the goods from the licensed manufacturing area and is payable within 21 days after the last day of the calendar month in which removal from the manufacturing area occurred.

Recent changes in the rates of the duty are set out below.

Petroleum fuels. The Government's economic statement of 21 March announced reductions in excise duties on petroleum fuels with effect from 1 July 1989. The rate on automotive diesel was further reduced by 5 cents to 11.2 cents a litre from 1 November 1989.

Alcoholic beverages and tobacco products. The March 1990 economic statement also announced the introduction of a uniform level of duty for all alcoholic beverages with an alcohol content of less than 23 percent. Beer, wine and other such alcoholic beverages are subject to essentially the same rate of $15 per litre of alcohol. The rate on spirits is higher, at $30 per litre of alcohol. Except in the latter case, the excise is levied at equivalent rates on liquid litres of product.

Tobacco products taxed on their tobacco content. The rate set at $100 per kilogram of tobacco. For cigarettes weighing less than 1.1 kilograms per 1000, the excise is levied at an equivalent rate per 1000 cigarettes.

Motor vehicles. Reductions in the excise duty on motor vehicles have been made over the last three years. The former 30 percent sales tax rate was converted to an excise duty at a rate of 25 percent on 1 October 1986 (with the introduction of GST). The 1986 Budget announced reductions in this rate to 20 percent on 1 July 1987 and to 15 percent on 1 July 1988. The most recent reduction, to 7.5 percent, was implemented on 21 March 1989.

Cuts in excise duty over this period represent around 10 percent of the price of new cars.

Roads taxation

The Road User Charges Act 1977 is administered by the Land Transport Division of the Ministry of Transport.

The Act is designed to collect approximately 50 percent of the revenue required for the maintenance and construction of New Zealand's roading network from all vehicles over 3.5 tonnes and smaller vehicles powered by a fuel not taxed at source. The remaining 50 percent of required revenue is obtained from motor spirit excise duty which is paid on all petrol, LPG and CNG used on the roading network.

The revenue collected is paid into the Land Transport Fund and the expenditure from that fund is managed by Transit New Zealand, a Crown agency established on 1 October 1989 (see section 20.4).

The road user charges vary depending on the number of axles, number of wheels, and weight of the vehicle. The motor spirit duty rates are: petrol. 10.9 cents per litre; LPG, 8.4 cents per litre; and CNG. $3.17 per gigajoule.

The Land Transport Fund also includes fees paid by motorists under the Transport (Vehicle and Driver Registration and Licensing) Act 1986.

Racing taxation

Government taxation on totalisator turnover is at the rate of 5.5 percent of gross on-course and off-course investments for each day of a race meeting conducted by a totalisator club. For race meetings conducted by a restricted totalisator club the rate for each day of a race meeting is 5 percent of the amount (if any) by which the gross investments on that day's races exceeds $300 000. A totalisator club is entitled to a rebate of duty equal to 2.5 percent of the first $100 000 of the gross investments received by the club in any one year.

Totalisator duty totalled $56.8 million during the year ended 31 March 1989.

Taxation review authorities

The Inland Revenue Department Act 1974 provides for the establishment of one or more taxation review authorities. There are three authorities. Each consists of one person who is a barrister or solicitor of the High Court of not less than seven years practice, and is appointed by the Governor-General. The functions of the authority are to sit as a judicial authority for hearing and determining such objections to assessments of tax or duty, or the decisions or determinations of the Commissioner of Inland Revenue, as are authorised by the relevant legislation. A determination of an authority is subject to an appeal to the High Court as to any question of fact (where the tax or duty exceeds $2 000) and to any question of law.

Tax revenue

A summary of income tax revenue and total public account taxation revenue is given for a series of years in table 25.10.

Table 25.1. SUMMARY OF TAX REVENUE

Year ended 31 MarchIncome laxPercentage of total taxation (all sources)Total public account taxation
TotalPer head of mean populationTotal*Per head of mean population

* Includes taxation revenue paid into both the Consolidated Account and the National Roads Fund, so-named until 31 March 1989.

Source: Treasury.

 $(million)$        %  $(million)$        
19752 136.0701.0174.52 865.3940.37
19804 465.61 429.1074.26 020.01 926.52
19858 343.52 556.7370.111913.63 648.61
198610 567.23 210.9474.214 235.94 325.70
198712431.83 785.8071.417408.15 301.20
198813 799.94 122.7064.121 528.16 431.48
198914 977.84 459.0065.522 900.06 817.50

Table 25.11. RECEIPTS OF TAXATION

Item198719881989

* Additional to portions paid into National Roads Fund so-named until 1989.

Source: Treasury.

 $(million)
Consolidated Account—
     Direct taxation-—
          Income tax12 431.513 799.914 977.8
          Estate and gift duty35.149.464.2
          Land tax63.671.2153.3
                    Total, direct taxation12 530.513 920.515 195.3
Indirect taxation—
          Goods and services tax1 228.73 818.54 338.7
          Customs and excise duty1 461.32 771.82 376.7
          Beer duty115.7
          Motor spirits duty*127.9
          Motor vehicle fees and charges129.0120.0117.8
          Sales tax1 016.7
          Racing duty*67.152.956.7
          International departure tax10.6
          Domestic air travel tax11.7
          Energy resources levy82.777.583.7
          Stamp duties—
              On instruments180.9226.095.4
              On cheques, etc.18.319.819.0
              Lottery duty7.910.819.3
                    Total, indirect taxation4 458.67 098.07 107.3
                    Total, taxation receipts to Consolidated Account16 989.121 018.522 302.6
Highways taxation419.0509.6561.3
                    Total public account taxation17 408.121 528.122 863.9

Table 25.12. COMPARISON OF PUBLIC ACCOUNT TAXATION AND NATIONAL DISPOSABLE INCOME

Year ended 31 MarchNational disposable incomePublic account taxation
TotalPercentage of national disposable income
 $(million)percent
198533 964x11 913.635.1x
198638 576x14 235.936.9x
198747 345x17 408.136.8x
198851,98621 528.141.4
198956 322P22 863.940.6
Source: Treasury.

Table 25.13. INCOME OF COMPANIES

Year ended 31 MarchNumber of returnsAssessable income before losses*Assessable incomeOrdinary dividends receivedIncome tax assessedExport tax credits

* Assessable income before deduction of losses carried forward from previous years.

† Includes non-resident withholding tax.

  $(million)
198282,1902 728.52 419.1535.1962.3259.6
198382,7202 749.92 492.6618.4991.9301.3
198483,9203 742.43 281.9863.41 261.8434.8
198586,8204 977.04 345.91 458.31 622.8586.1
198685,5104 244.53 865.52 160.31 565 4492.2

A strict comparison of the figures for any 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.

25.3 Public debt

The money comprising public debt is borrowed on the security of the public revenues of New Zealand. The principal legislative measure relating to the management of Crown assets and liabilities is the Public Finance Act 1989. Most of the present public debt was borrowed for national development.

Gross public debt, as referred to in the tables in this section, consists of total financial liabilities of the Public Account. Net public debt consists of gross public debt less total financial assets of the Public Account.

The amount of net debt is affected, for the most part, by refinancing of major project and producer board debt. Write-offs of loan capital (notably loans to the Rural Bank and loans for energy and steel making development, among others) has added to net debt. Against that, recent sales of government assets amounting to approximately $2.5 billion over recent years has brought capital into the Loans Account and this has been used by the Government to limit the increase in gross and net debt levels. Other factors influencing the level of public debt include, exchange rate movements on external debt, the cost of borrowing and changes in the value of government businesses. The costs of the New Zealand dollar debt is expected to reduce as interest rates fall.

The Government's approach to reducing debt, as a proportion of gross domestic product, includes on-going tax reform, measures to get better value from government spending, and a programme of relinquishing state ownership of assets. Income from the asset sales programme which had been finalised at the time of going to press is outlined below.

Table 25.14. SALES OF STATE-OWNED ENTERPRISES

BusinessSale priceSettlement date
 $(000) 
New Zealand Steel Ltd.327,22422 March 1988
Petrocorp801,05931 March 1988
Health Computing Service4,2507 November 1988
Development Finance Corporation111,28018 November 1988
Post Office Bank Ltd665,40028 February 1989
     — completion13,10031 October 1989
Shipping Corporation of New Zealand18,5003 April 1989
     — completion15,05919 March 1990
Air New Zealand660,00017 April 1989
Landcorp financial instruments15,7407 March 1989
Landcorp financial instruments34,2605 October 1989
Rural Bank550,00031 October 1989
Government Printing Office43,300to be completed in 1990
National Film Unit2,500to be completed in 1990
State Insurance Office735,000to be completed in 1990
Tourist Hotel Corporation73,85015 June 1990
Telecom Corporation4 250 000to be completed in 1990
Source: Treasury.

The Government's medium-term fiscal policy with regard to debt management is that it should maintain its net worth. That is, the Crown should avoid increasing its debt unless it is also increasing its stock of assets at least as rapidly. The Government currently uses fiscal indicators and net debt to assess its net worth. The Public Finance Act 1989, has introduced new accounting practices to be followed by central government in order to provide a more consistent valuation basis for assets and liabilities which will be required to measure net worth (see section 25.1).

The Treasury manages the Crown's debt, the cost of borrowing cash flows, and related interest-bearing assets. The Reserve Bank works with the Treasury on the annual government debt programme. It also arranges funding through sales of government stock, Reserve Bank bills, Treasury bills and Kiwi Stock (see section 24.2, Money).

Table 25.15. TOTAL PUBLIC DEBT OUTSTANDING

Type and currencyOutstanding at 31 MarchIncrease or decrease
19881989

* Treasury bills.

Source: Treasury.

External debt—$(000)
     Pounds sterling1 693 6431 820 110126,467
     Deutschmarks669,523901,210231,687
     Dutch guilders111,31476,074−35 240
     Japanese yen5 152 5304 383 682−768 848
     United States dollars7 204 1807 322 658118,478
     Swiss francs1 559 628771,681−787 947
     New Zealand dollars120,000120,000
     Australian dollars..132,926132,926
     Canadian dollars5,272169,883164,611
     European currency unit737,463893,017155,554
     Miscellaneous3,2971,429−1 868
Internal debt—17 256 85016 592 670−664 180
     Long-term18 902 80418 696 099−206 705
     Floating debt*2 951 7654 311 7821 360 017
 21 854 56923 007 8811 153 312
               Total39 111 41939 600 551489 132

Table 25.16. EXTERNAL AND INTERNAL PUBLIC DEBT

Outstanding at 31 MarchExternal debtInternal debtTotal debt
AmountPercentage of total debtAmountPercentage of total debtAmountPercentage increase on previous year
 $(million) S(million) $(million) 
19814 236.136.57 381.063.511 617.112.3
19825 549.438.68 832.061.414 381.423.8
19837 764.741.410 968.058.518 732.830.3
19848 226.337.613 652.462.421 878.716.8
198512 409.543.915 836.856.128 246.329.1
198614 726.246.017 276.054.032 002.213.3
198721 734.951.220 743.948.842 478.832.7
198817 256.944.121 854.655.939 111.4−7.9
198916 952.642.823 007.858.139 600.51.2
Source: Treasury.

Table 25.17. GROSS INDEBTEDNESS OF CENTRAL GOVERNMENT

As at 31 MarchAmountPer head of population
 $(m)$
198421,8796 700.05
198528,2468 582.02
198632,0029 729.12
198742,47912 796.04
198839,11111 684.34
198939,60011 830.43
Source: Treasury.

Table 25.18. INTEREST PAYMENTS

Year ended 31 MarchInterestInterest on overseas debt as percentage of exports of goods and servicesRecovery of interest from government enterprises and investments*Net interest costNet cost as a percentage of total taxation
OverseasNew ZealandTotal

* Revised to include interest credited to the Reserve Account, so named until 1989.

Source: Treasury.

 $(000)
1985896,8081 633 2252 530 0336.71 018 2361 511 79712.7
19861 026 4272 275 9533 302 3807.41 485 8371 816 54312.8
19871 292 1312 777 3074 069 4388.71 664 6442 404 79213.8
19881 477 7763 469 9964 947 7729.01 940 4033 007 36914.0
19891 371 9623 115 3114 487 273..1 366 8823 120 39113.6

Table 25.19. MATURITY DATES OF PUBLIC DEBT OUTSTANDING. AS AT 31 MARCH 1989

Loans maturing in financial year ending 31 March*DueTotal debt (nominal amount)
OverseasNew Zealand
PublicDepartmental and other

* In respect of many of the loans the Government has the option to redeem the securities at an earlier date.

Source: Treasury

 $(000)
19901 585 7002 669 3981 043 4025 298 500
1991736,5811 774 3701 064 1183 574 069
19921 698 9242,610,2831 237 7565 546 963
19931 584 2701 150 280927,0823 661 632
19942 773 1581 624 4971 221 7435 619 398
1995882,159763,780502,5642 148 503
19961 569 190212,850243,2502 025 290
1997580,321323,882199,2181 103 421
1998881,302....881,302
1999331,548....331,548
2,00053,85317,77567,225138,853
2,001297,083....297,083
2,00253,85342,81782,183178,853
2,003372,221....372,221
2,00453,853....53,853
2,00553,853....53,853
2,006378,160....378,160
2,007540,313....540,313
2,00853,706....53,706
2,009295,117....295,117
2,01027,918....27,918
2,011243,230....243,230
2,015273,673....273,673
2,017567,537....567,537
Inflation Adjusted Savings Bonds..381,048..381,048
Kiwi Bonds..363,9438,000371,943
Kiwi Savings Stock..149,608..149,608
Our N.Z. Bonds..15,027..15,027
Reserve Bank notes 1 256 378..1 256 378
Treasury bills..2 286 999768,4053 055 404
Sovereign notes705,147....705,147
               Total16 592 67015 642 9357 364 94639 600 551

Table 25.2. PUBLIC DEBT TRANSACTIONS, 1988–89

 New ZealandOverseas
 $(000)
Loans raised (gross value)—
     For general purposes3 266 877..
     For repayment of loans (incl. Treasury bills, Reserve Bank notes and Sovereign notes)16 973 7317 367 293
               Total, loans raised20 240 6087 367 293
Loans repaid—
     For general repayments (incl. Treasury bills. Reserve Bank notes and Sovereign notes)19 087 2968,614,729
Capital equipment credit arrangements..15,143
International Bank for Reconstruction and Development..858
               Total, loans repaid19 087 2968 630 726
Increase/decrease in debt due to—
     30 June 1988 realignment..−715 511
     30 September 1988 realignment..1 369 000
     31 December 1988 realignment..136,719
     31 March 1989 realignment..−190 953
               Total, realignments..599 255
Net increase/decrease during the year1 153312−664 180
Public debt at 1 April 198821 854 56917 256 850
Public debt at 31 March 198923 007 88116 592 670
 39 600 551
Source: Treasury.

Table 25.21. PUBLIC DEBT HELD BY GOVERNMENT DEPARTMENTS

 As at 31 March
198719881989

* The Post Office was split into three separate state-owned enterprises: Telecom, Post Office Bank Ltd and NZ Post in 1987. Postbank was sold to ANZ Bank Ltd in 1989.

Source: Treasury.

 $(000)
Investments held by accounts within the Public Account5,77115,158
Earthquake and War Damage Commission1 407 8381 599 4741 928 775
Government Life Insurance395,439343,487318,383
Government Superannuation Board1 553 5701 662 2001 759 082
Maori Trustee1,3001,8001,500
National Provident Fund587,570784,237700,285
Post Office*1 266 068....
Post Office Bank Ltd..504,000504,000
Public Trustee8,41230,00096,902
Reserve Bank831,0091 501 4071 757 130
Housing Corporation of New Zealand123,364125,459119,256
Rural Banking and Finance Corporation312,209259,836124,329
State Insurance Office37,24636,74550,146
               Total6 529 7966 848 6467 364 946

25.4 Local government finance

Section 3.4 describes the general aspects of local government.

Local government is concerned with the provision of local facilities with funds raised from the area. Territorial authorities (districts, cities and the Chatham Islands County) derive income mainly from rates on property, sales of goods and services, and grants from central government. The same-applies to regional councils, except that they will not commence rating until 1 July 1990 (with the exception of Wellington and Northland, which were already rating prior to the recent reorganisation). Electric power boards collect revenue from consumers in payment for the services provided. Area health boards are funded through the Department of Health. Summarised data relating to area health boards can be found in section 8.1, Organisation of health services.

The local authority financial year is from 1 July to 30 June, with effect from 1 July 1990. Formerly, it was from 1 April to 31 March, with a one-off ‘transitional quarter’ from 1 April to 30 June 1990.

The Government has completed a review of local government and is in the process of reviewing its funding to that sector (see section 3.4).

Legislative changes affecting the funding of local government are to be introduced into Parliament later in 1990. The description below represents the situation as it was in early 1990.

Income

The taxation base of regional and territorial authorities is rates—a tax on landed property, but sale of goods and services, grants from central government and other revenue also contribute to local government income.

Rating. Rating provides a financial base which is independent of central government, is relatively cheap to administer and can be adapted to suit local circumstances. There are two main systems of rating, land value and capital value (i.e., the market value of a property). Some authorities have used annual value, which is based on rental value.

As at 1 November 1989, four regional councils rated on land value and nine on capital value. Of the territorial authorities, 56 rated on land value, 17 on capital value and one (Auckland City) used annual value. In the recent reorganisation, provision was made for the existing systems to continue for specified periods in some districts where the new authorities into which they were incorporated operate on a different system.

For rating on either the capital value or the land value, the rating roll is based on the district valuation roll prepared by Valuation New Zealand (see section 14.1).

The Rating Powers Act 1988 provides for the levying of rates. The Act consolidated and rationalised the rating powers of the different types of local authority, and revised the machinery provisions governing rating in the former Rating Act 1967.

There are three broad classes of territorial authority rates:

  1. General rates;

  2. Separate rates—may be levied for any specific purposes such as works and services, fire protection, sewerage and storm water drainage and lighting; and

  3. Special rates—may be imposed to secure the repayment of loans.

A territorial authority may levy a fixed charge in addition to or in place of a general rate, and may levy separate uniform annual charges in addition to or in place of separate rates. The Rating Powers Act also provides for certain ‘miscellaneous charges deemed to be rates’; these may be applied for water, water races, sewerage, and refuse collection.

Sales of commodities and services. Income from the sale of commodities and services includes: the sale of electricity and gas, public transport fares, and other user charges for council facilities such as libraries, swimming pools and car-parking spaces. Some services are provided by more or less commercial businesses owned by councils, and from which the councils may receive dividends. These range from various small businesses such as motor camps to fully corporatised and major undertakings of which the recently created port companies are the most obvious example.

Grants and subsidies from central government. Subsidies and grants play an important role in providing revenue for all local authorities, but are particularly significant for area health boards, which are financed almost entirely by this means. For territorial and regional authorities, grants and subsidies have historically been lied to expenditure on particular functions, and often made only where specified conditions are fulfilled. Examples of these have been as diverse as agricultural pest control grants to territorial authorities and pest destruction boards, and home improvement advisory services grants and roading subsidies to territorial authorities. Many of these are now being phased out, although roading and transport subsidies from Transit New Zealand (see also section 20.4), remain a substantial source of income (forming a high percentage of the income of the more rural authorities).

Other revenue. Regional and territorial authorities receive income related to their regulatory activities, such as fees for dog licences, public health inspection, and building permits. Other revenue peculiar to territorial and regional authorities includes the local authorities petroleum tax (a wholesale tax, for the general purposes of the recipient authorities), and development levies (which may be imposed on property developments valued at over $50 million). The revenue sharing scheme, whereby the government shaved some of its tax revenue with territorial and regional authorities, was terminated from 1 April 1989.

Table 25.22. SOURCES OF REVENUE OF ALL LOCAL AUTHORITIES*

Year ended 31 MarchRates levies. fines, etc.Grants from central and local governmentSales of commodities and services incl. water ratesOther receiptsTotal receipts
* Includes electric power boards.
 $(000)
1984763,612392,6071 884 822187,2883 228 329
1985812,900429,6712 070 393216,6073 529 571
1986919,474461,6302 430 889306,5304 118 522
19871 058 760464,4032 793 952349,9774 667 092
19881 245 643470,3033 071 491409,3335 196 769

Table 25.23. RECEIPTS OF LOCAL AUTHORITIES, 1987–88

Local authorityRates, levies, fines, etc.Grants from central and local governmentSales of commodities and servicesOther receiptsTotal receipts
 $(000)
City and borough councils805,530128,982854,495197,0361 986 043
County councils218,603123,61857,03529,938429,194
District councils100,87641,47643,86913,916200,136
Electric power boards371781 401 63349,8041 451 652
Harbour boards1,3634275,62953,824330,820
Regional authorities31,049113,946133,43842,237320,671
Urban drainage boards28,6858,2922,6722,42742,076
Catchment boards39,03716,42111,0417,52574,024
Pest destruction boards7,0944,11446985312,529
Urban transport board9,6155,5099,2912,35626,772
Other local authorities3,75527,762281,9209,417322,853
               Total1 245 643470 3033 071 491409 3335 196 769

Expenditure

The purchase of goods and services makes up over half the expenditure of local authorities. Other substantial areas are: labour costs, which make up about one-third of the total, and interest payments. Traditional areas of local authority expenditure are roading, water supply, sewerage, drainage and refuse collection, while in recent years local authority responsibilities have tended to increase in areas such as land use planning and the provision of recreation and welfare services.

Table 25.24. PAYMENTS BY ALL LOCAL AUTHORITIES

Year ended 31 MarchLabour and related costsPurchases of commodities and servicesAll interestOther paymentsTotal payments
 $(000)
1984908,6711 652 928192,528221,8632 975 990
1985959,3041 822 994211,326263,9983 257 622
19861 090 5492 175 874249,434305,6263 821 483
19871 231 8272 447 749278,477350,1604 308 213
19881 319 9562 721 082310,313467,2564 818 607

Table 25.25. PAYMENTS BY TYPES OF LOCAL AUTHORITIES, 1987–88

Local authority typeLabour and related costsInterestPurchases of commodities and servicesOther paymentsTotal payments
 $(000)
City and borough councils860,207126,370921,513172,1091 780 199
County councils124,13322,208212,74223,604382,686
District councils62,28112,35193,75911,175180,566
Electric power boards223,36167,1501 084 667116,7861 491 965
Harbour boards133,58036,97379,45134,136284,190
Regional authorities83,80628,75364,03568,538245,132
Urban drainage boards15,2075,93310,1611,42032,721
Catchment boards33,5822,35823,5735,31164,825
Pest destruction boards6,4131715,10570012,389
Urban transport board14,799554,9073,90023,661
Other local authorities61,5887,990221,17229,524320,276
               Total1 319 956310 3132 721 082467 2564 818 607

Table 25.26. RECEIPTS AND PAYMENTS OF TERRITORIAL LOCAL AUTHORITIES

Item1985–861986–871987–88
Receipts—$(million)
     Rates and grants in lieu785.3905.21 058.8
     Other taxes and fines63.775.397.6
     Grants and contributions from central government350.5340.7331.3
     Grants and contributions from local authorities69.178.192.7
     Sales of main product527.9600.9645.7
     Other commodities and services325.7390.9443.4
     Interest124.0139.7158.6
     Miscellaneous current receipts82.8102.5126.7
               Total2 328.92 633.42 954.8
Payments—
     Labour and related costs709.9786.2834.4
     Interest paid148.0166.3189.9
     Levies and grants to central government and local authorities114.7136.7171.1
     Bulk purchase for resale278.2321.0342.2
     Other commodities and services767.3846.8952.6
     Other current payments68.582.1117.8
               Subtotal2 086.62 332.62 582.9
               Less, capitalised payments67.764.875.8
               Total2 018.92 267.92 507.1

Table 25.27. RECEIPTS AND PAYMENTS OF TERRITORIAL LOCAL GOVERNMENT BY ACTIVITY*

Activity1985–861986–871987–88
ReceiptsPaymentsReceiptsPaymentsReceiptsPayments
* Excludes sales and purchases of fixed assets and repayments of loans.
 $(million)
Electricity supply333.6304.0383.3348.8417.6378.4
Passenger transport134.6123.4153.1140.4179.3157.7
Water supply186.4161.4216.4187.7239.2207.1
Road construction and maintenance405.1405.5437.6444.3488.6481.0
Refuse, sewerage, and drainage210.4197.4241.7226.6286.6267.3
Abattoirs21.620.324.023.629.332.0
Libraries52.851.159.258.568.166.7
Parks and domains141.2130.6140.2135.3162.3153.5

A wide variety of public utilities and amenities are provided by territorial and regional government, the main activities being electricity supply, water supply, roading, sewerage, drainage, refuse collection, public transport, airports and ports (the latter are now operated by port companies in which local authorities are the major shareholders).

Borrowing

Borrowing powers of regional and territorial authorities are now under review, and are likely to be liberalised through an amendment to the Local Government Act 1974.

Currently the Local Authorities Loans Act 1956 requires all local authorities wishing to raise a loan to obtain the authorisation of the Local Authorities Loans Board, except for those loans covered by the Local Authorities Exemption Order 1986.

The Local Authorities Exemption Order 1986 exempts nearly all borrowing by regional and territorial authorities, and all borrowing by area health boards. The exemption does not apply, however, to borrowing for short-term cash-flow purposes (overdrafts); the amount of any such borrowing is restricted to three-quarters of the previous financial year's revenue and must be repaid within the year.

The present legislation requires proposals for the raising of loans (other than overdrafts) to follow a well-defined procedure. This procedure involves public notification of the proposal before a decision is taken at a later date. There is provision for a poll of electors on the loan; this can be forced by a petition of 15 percent of the electors.

Under the Local Authorities Loans Act 1956, bodies other than regional and territorial authorities generally must obtain the approval of the relevant minister before borrowing.

Since November 1984 interest rates for loans have been determined only by the rates which prevail on the New Zealand securities market.

Table 25.28. OPERATIONS OF THE LOCAL AUTHORITIES LOANS BOARD*

Year ended 31 MarchValue of total applicationsSanctioned
New worksRedemption loansExemption order notifications
* Includes hospital maids and Fire Service Commission.
 $(million)
1985308.9x303.480.0
1986179.0x176.1117.6
198764.564.5209.3
198852.452.4524.3
1989106.9106.9521.0

Table 25.29. LOANS RAISED BY TYPE OF LOCAL AUTHORITY

Local authorityYear ended 31 March
198719881989
 $(million)
Municipalities123.0140.2304.4
Counties10.48.822.6
District councils7.313.621.2
Regional and united councils11.037.685.6
Electric power and gas boards16.470.8197.3
Harbour boards23.779.717.8
Area hospital boards21.874.5122.9
Others18.110.330.9
               Total amount raised231.7435.5802.7

Table 25.3. SOURCE OF MONEY RAISED

SourceYear ended 31 March
198719881989
 $(million)
Housing Corporation3.14.87.7
Local Authority Funds22.77.18.2
National Provident Fund16.823.486.5
Registered banks, insurance and pension funds84.4196.3366.4
Other financial intermediaries63.3156.1236.0
Brokers, solicitors nominee companies, and other agents20.110.028.3
All other sources21.337.869.6
               Total amount loaned231.7435.5802.7

Table 25.31. GROSS PUBLIC DEBT OF LOCAL AUTHORITIES AND ANNUAL CHARGES*

Year ended 31 MarchGross public debtAnnual loan charge
AmountRate per head of mean populationAmountRate per head of mean population
* Excludes hospital board and area health hoard debt and Fire Service Commission debt.
 $(000)$$(000)$
19842 062 593632.5335,407102.9
19852 207 427676.0360,258110.3
19862 248 924680.8486,926147.4
19872 316 500705.4530,811161.6
19882 425 918731.5741,066223.5

In table 25.32 it should be noted that the debt of electric power districts shown does not represent the complete local authority debt on account of electric power activities, since a considerable portion of the city and borough debt, and a small part of the county and town district debt also, was incurred for that purpose.

Table 25.32. GROSS PUBLIC DEBT BY TYPE OF LOCAL AUTHORITY

Year ended 31 MarchCities, boroughs and town districtsCountiesRegional authoritiesElectric power districtsHarbour districtsUrban drainage districtsOther districtsTotal
 $(000)
1984800,935169,314235,956438,609288,52753,95275,3002 062 593
1985856,112180,565247,951477,235320,65851,01373,8932 207 427
1986892,100183,436247,242489,901308,32149,02278,9022 248 924
1987949,099170,414244,111488,843312,70846,765104,5602 316 500
19881 056 595165,153265,041526,256240,52148,414123,9382 425 918

Contributors

  • 25.1 Treasury.

  • 25.2 Inland Revenue Department; Customs Department; Ministry of Transport; Treasury.

  • 253 Treasury.

  • 25.4 Department of Internal Affairs; Treasury.

Historical

Treasury; Department of Statistics; Department of Internal Affairs.

Further information

Budget (Parl. paper B. 6).

Economic Statement, 21 March 1990. Minister of Finance.

Estate and Gift Duties (pamphlet). Inland Revenue Department, 1989.

Key Statistics. Department of Statistics (monthly).

Local Authority Statistics. Department of Statistics (annual).

The Public Accounts (Parl. paper B. 1 [Pt. I and II]).

Reform of local and Regional Government: Discussion Document. The Officials Coordinating Committee on Local Government, 1988.

Report of the Department of Internal Affairs (Parl. paper G. 7).

Report of the Finance and Expenditure Committee On The Public Finance Bill 1989. (Parl. paper I. 4C).

Report of the Government Administration Committee on the Inquiry into Departmental Reporting to Parliament (Parl. paper I. 6A).

Report of the Inland Revenue Department (Parl. paper B. 23).

Report of the Local Authorities Loans Board (Parl. paper B. 17).

Report of the Local Government Commission (Parl. paper G. 9).

Report of the Reserve Bank of New Zealand (Parl. paper B. 16).

Report of the Treasury (Parl. paper B. 27).

Report of the Valuation Department (Parl. paper G. 26).

Report of the Working Party on Revenue Sharing. Department of Internal Affairs, 1987.

Reports of Select Committees on the 1988/89 Estimates of Expenditure and Supplementary Estimates (Parl. paper I. 19A).

Road User Charges (booklet). Ministry of Transport, 1989.

Securing Economic Recovery: Summary of Social Policy Announcements, July 27 1989. Minister of Finance.

Stamp Duty (pamphlet). Inland Revenue Department, 1990.

1989 Transitional Quarter Tables (Parl. paper B. 6AA).

Chapter 26. National economy

26.1 Business statistics

The Department of Statistics made major changes in the collection of business statistics during 1986 and 1987. In 1986 it introduced an annual update of its Business Directory, and an annual Enterprise Survey. The department also introduced a five-yearly Economy Wide Census, first taken in 1987. These changes replaced the previous five-year rolling cycle of business censuses.

The first Economy Wide Census gathered data on most non-farming businesses for the 1986–87 financial year, covering over 130 000 separate businesses and more than 500 different industrial activities. The census answers the need for a ‘snapshot’ of the whole economy and allows inter-relationships to be examined simultaneously using data that relate to the same period. The information gained is used in the national accounts, price indexes, inter-industry tables, and several major econometric models, as well as by businesses themselves. Results from the 1987 census began to become available late in 1988 and the complete census report is expected in late 1990. The census will be repeated every five years.

The annual Enterprise Survey supplements the census. It samples approximately 20 000 businesses to provide an overview of the economy in the interval between five-yearly censuses, and data will become available in 1990. In addition to the financial data from this survey, the department also brings its Business Directory up-to-date annually. As well as being the basic register for surveys and censuses, it provides a source of non-financial data about businesses, such as their location, size, type of activity and degree of overseas ownership.

Definitions of terms used in the presentation of business census data are included in the glossary at the back of this book, although these may vary according to the year in question.

Further details, including results of all censuses at sub-group (industry) level of the New Zealand Standard Industrial Classification, are available in the Department of Statistics' series of business census publications.

The statistics on activity units in table 26.1 are derived from the Department of Statistics' annual Business Directory survey. An ‘activity unit’, formerly referred to in the department's publications as an ‘establishment’, is a separate operating unit engaged in one (or predominantly one) kind of economic activity from a single physical location.

Table 26.1. BUSINESSES AND NUMBERS EMPLOYED BY INDUSTRIAL CLASSIFICATION

NZSIC descriptionFebruary
1986198719881989
112–113Agricultural services and hunting/trappingActivity units2,5823,5043,6083,449
Persons engaged10,92612,37312,58913,204
12Forestry and loggingActivity units1,1071,4401,4861,430
Persons engaged10,31110,1947,3566,876
13FishingActivity units1,9562,0452,0211,986
Persons engaged4,4544,4725,0854,605
21Coal miningActivity units65657169
Persons engaged2,0132,0401,1371,032
22Crude petroleum natural gasActivity units62576571
Persons engaged771689765741
23–29Other mining and quarryingActivity units465543575557
Persons engaged2,7453,1632,8592,934
3111Slaughtering and meat processingActivity units297304308321
Persons engaged39,32736,64030,24930,847
3112Manufacture of dairy productsActivity units166168172151
Persons engaged8,6528,0358,1267,983
3113–3122Manufacture of other foodsActivity units1,1861,3751,3581,414
Persons engaged23,17024,07524,02924,106
313Beverage industriesActivity units152156152154
Persons engaged3,5583,7943,3693,221
314Tobacco manufacturingActivity units111177
Persons engaged826817693743
321Manufacture of textilesActivity units664807829834
Persons engaged14,61013,98812,99911,907
322–324Manufacture of clothing and leather goods incl. footwearActivity units1,3001,6191,6201,532
Persons engaged26,15126,86223,97620,547
33Manufacture of wood and wood productsActivity units2,2713,0113,0773,021
Persons engaged24,30626,56024,77322,348
341Manufacture of paper and paper productsActivity units162189209188
Persons engaged13,10110,63710,6869,088
342Printing and publishingActivity units1,0521,2221,2501,326
Persons engaged18,87919,27818,71618,403
351Manufacture of industrial chemicalsActivity units198230214207
Persons engaged5,0385,0794,8624,715
352Manufacture of other chemical productsActivity units366415384352
Persons engaged7,4767,4866,8556,395
353Petroleum refineriesActivity units17171614
Persons engaged1,1041,0821,001883
354Manufacture of petroleum and coal productsActivity units35434037
Persons engaged496570933886
355Manufacture of rubber productsActivity units130139124121
Persons engaged3,8473,7272,8922,050
356Manufacture of plastic productsActivity units400454459452
Persons engaged8,1087,7697,5747,394
36Manufacture of non-metallic mineral productsActivity units839981938905
Persons engaged9,5459,7089,3727,910
37Basic metal industriesActivity units157186201198
Persons engaged7,2216,5996,6346,513
381Manufacture of fabricated metal productsActivity units2,1672,7712,7952,669
Persons engaged26,88227,44626,07523,211
382Manufacture of machineryActivity units1,9842,7032,8662,955
Persons engaged19,30519,03218,98517,835
383Manufacture of electrical machineryActivity units614729723675
Persons engaged15,28313,44512,23710,864
384Manufacture of transport equipmentActivity units7381,0661,1371,133
Persons engaged22,40521,38221,29117,707
385Manufacture of professional equipmentActivity units87106103103
Persons engaged1,2861,3131,4021,263
39Other manufacturing industriesActivity units620861853838
Persons engaged4,1724,7394,2673,896
4Electricity gas and waterActivity units693673707650
Persons engaged13,71714,55917,16816,071
51 & 53 Excl. 52Buildings and ancillary building servicesActivity units13,52322,32323,57423,102
Persons engaged57,66974,82475,92571,948
52Other constructionActivity units1,6092,6692,7172,785
Persons engaged20,96921,50421,61220,051
61Wholesale tradeActivity units9,87111,93712,21312,357
Persons engaged80,92084,92382,82381,293
62Retail tradeActivity units26,86331,82230,27131,028
Persons engaged130,508149,905142,288141,253
63Restaurants and hotelsActivity units8,5969,2148,5209,512
Persons engaged53,30857,37654,15755,627
7111Rail transportActivity units206207275233
Persons engaged5,6785,6825,7432,961
7112–7113Road passenger transportActivity units2,4062,5712,4782,556
Persons engaged9,98710,0509,97410,334
7114Road freight transportActivity units3,8975,0585,1405,242
Persons engaged18,77419,15718,34617,575
7115–7117, 719Services to transportActivity units1,7451,9321,9752,006
Persons engaged11,06411,43811,59911,169
712Water transportActivity units254260281282
Persons engaged11,74711,37610,4248,343
713Air transportActivity units304400445455
Persons engaged7,2058,5418,8499,777
72CommunicationActivity units1,0271,9342,0662,233
Persons engaged38,60240,28634,29732,949
811BankingActivity units1,3151,5691,6151,663
Persons engaged21,53827,26127,93327,734
812–814 Excl. 81492Financial servicesActivity units3,8894,5174,8595,027
Persons engaged11,43313,87314,12612,105
82 Excl. 82302InsuranceActivity units2,2503,0023,0953,122
Persons engaged11,02012,52114,61213,991
83 Excl. 83113 83121/3Real estate and business servicesActivity units8,35813,78715,82517,555
Persons engaged54,52573,75781,53189,770
91Government administrationActivity units2,6273,2943,4403,242
Persons engaged62,68182,24584,38880,491
92Sanitary servicesActivity units1,5882,1352,1792,157
Persons engaged11,18611,95512,45812,401
931 Excl. 93105Education servicesActivity units5,1205,5825,5425,595
Persons engaged66,10867,40469,61172,918
932Research servicesActivity units164144164199
Persons engaged4,8525,0534,4584,429
933–93401Medical and health servicesActivity units5,4996,6356,7447,008
Persons engaged79,62083,78683,72086,516
94 Excl. 94402Recreation servicesActivity units3,6653,8384,1584,267
Persons engaged16,73017,65517,32518,898
95Personal servicesActivity units8,5057,5657,4007,862
Persons engaged29,72726,59926,01927,153
 TotalActivity units135 824170 285173 344177307
Persons engaged1 165 536 1264 724 1241,1751 215 864
* New Zealand Standard Industrial Classification

Table 26.2 is also based on the annual Business Directory survey and shows persons engaged by region (working proprietors and paid employees, full time equivalents) as at February 1989. The table is not a measure of total employment. Farms are held on a separate directory and are not included here. Also, the survey does not include some other businesses, namely: self-employed insurance, real estate, and finance agents; property owners', non-profit organisations; and non-trading and dormant companies.

Table 26.2. REGIONAL BUSINESS PATTERNS, 1989

Region*Agricultural services hunting forestry fishingMining and quarryingManufacturingElectricity gas and waterConstructionWholesale and retail trade restaurants and hotelsTransport storage and communicationBusiness and financial servicesCommunity social and personal servicesTotal
* At end of February. Local government regions before 1 November 1989.
 persons engaged
Northland1,3972065,5714693,3067,9862,1812,5589,34433,018
Auckland2,04169195,7753,28730,44090,51433,76057,75579,604393,867
Thames Valley5681653,6332791,5193,7208179363,29114,928
Bay of Plenty2,8907312,2175695,31016,4304,2395,31113,96361,002
Waikato7,59286615,4371,6725,75915,6624,1677,01521,25473,424
Tongariro1,3481221,9068241,2083,2607388052,73112,942
East Cape950292,9911631,0453,3908261,1223,83014,346
Hawkes Bay1,6059111,0046222,7929,6652,7633,67512,24544,462
Taranaki4548357,4428672,4096,8301,9842,3887,50930,718
Wanganui584103,8751191,5154,2581,1121,4577,06719,997
Manawatu964438,2277943,1639,2182,3173,34313,47041,539
Horowhenua185462,9951451,4223,4726881,0663,44413,463
Wellington34413221,5121,94110,76033,73213,94130,32546,817159,504
Wairarapa587182,4051787522,4085917692,72110,429
North Island total15 5093327194 99011 92971 400210 54570 124118 525227 290923 639
Nelson Bays1,298644,5442931,5155,0821,5601,6725,37921,407
Marlborough779892,4411289422,7218757533,16311,891
West Coast6006931,7372178632,3938045182,94510,770
Canterbury1,37013329,2451,4648,27428,96210,94712,75433,605126,754
Aorangi1,002205,2055101,6065,5721,6021,5725,39522,484
Clutha/Central Otago1,280772,5402752,2554,0921,0069352,80515,265
Coastal/North Otago673998,8847683,21310,6393,7434,34414,51446,877
Southland184020511,01148419118,0742,3362,5087,60935,978
South Island total8 84213806560741392057967 53522 8732505675415291 426
Extra county islands and shipping334 118320931111910.1799
New Zealand total24 6854 707260 71516 07191 999278 17393 108143 600302 8061 215864

26.2 National accounts

The New Zealand System of National Accounts (NZSNA) provides a systematic analysis of the performance of the New Zealand economy. Information on production and associated flows of income and expenditure meet a variety of needs, including economic analysis, forecasting, and policy formulation. The system is based on an internationally accepted standard detailed in A System of National Accounts (United Nations, 1968). In addition to providing key economic information, the national accounts also provide the basic framework of standard concepts, definitions, and classifications for economic agents and transactions. The economic censuses and surveys of the Department of Statistics are all integrated into the system, as are the inter-industry studies. Balance of payments statistics follow similar concepts and provide the basis of the External Transactions Account of the national accounts.

Annual national accounts for years ended 31 March are published each year. Provisional estimates are prepared for the latest March year only for the Consolidated Accounts of the Nation (see below). Revised estimates for previous years are also prepared and detailed, breakdowns of some of the main aggregates are also published for these years. The information used to compile the accounts becomes available progressively over a long period, and for some areas of the economy may not be available for up to three years after the March year to which it relates. Consequently, national accounts estimates are subject to revision during this period. All revisions to earlier years are published with the estimates prepared in March.

Tables in this section contain data for the latest available five years. For the Consolidated Accounts of the Nation, data is provided for the years ended March 1985 to 1989, while some detailed breakdowns of the main aggregates are included for the years ended March 1984 to 1988. Full national accounts series back to 1971–72 are available from the Department of Statistics on request.

Explanation of the terms gross domestic product, gross national product and gross national income are given below. Definitions of other national accounting terms can be found in the glossary at the back of this book.

Table 26.3. PRINCIPAL AGGREGATES OF THE NATIONAL ACCOUNTS

AggregatesYear ended Match
1985x1986x1987x1988P1989P
 $(million)
Gross domestic product38,79644,71953,46159,17263,805
     Plus, net factor receipts from rest of world−1 914−2 689−2 215−2 751−2 730
Gross national product36,88242,03051,24656,42161,075
     Less, consumption of fixed capital3,1533,6384,1364,7385,115
National income at market prices33,72938,39247,11051,68355,960
     Plus, net current transfers from rest of world234184235303362
National disposable income33 96338 57647 34551 98655 322

Consolidated Accounts of the Nation

The Consolidated Accounts of the Nation comprise four accounts as follows:

Gross domestic product and expenditure. Gross domestic product is a measure of the value added from all economic activity in New Zealand. The account shows the various forms of income generated by the economy, and the categories of the final expenditure on the domestic product.

National disposable income and its appropriation. National disposable income is the value of income available to New Zealanders, consisting mainly of the incomes generated in New Zealand. Adjustments are made for the income paid to, and received from, the rest of the world. The account also shows that part of disposable income which was spent by New Zealanders on current consumption, and the portion of income which was saved.

Capital finance. Capital expenditure is recorded in this account. The difference between the accumulation of capital assets and the sources of funds (mainly savings and the income set aside for the replacement of capital equipment) gives a residual to be borrowed from (or lent to) the rest of the world.

External transactions. This account brings together all transactions with the rest of the world. The residual ‘surplus of nation on current transactions’ records New Zealand's net borrowing from the rest of the world.

Table 26.4. GROSS DOMESTIC PRODUCT AND EXPENDITURE

ItemYear ended March
19851986198719881989
 $(million)
Compensation of employees18,93222,09926,07628,85730,124
Operating surplus12,79814,50116,89916,98519,475
Consumption of fixed capital3,1533,6384,1364,7385,115
Indirect taxes4,5094,8526,6558,9039,283
Less, subsidies596371304310193
Gross domestic product38 79644 7195346159 17263 805
Final consumption expenditure—
     General government6,2717,3078,89810,15510,888
     Private23,17627,42731,83036,11539,719
Value of physical increase in stocks1,33649498515358
Gross fixed capital formation9,57111,29611,65512,83412,597
Statistical discrepancy244−15044092−4
Gross national expenditure40,59746,37453,80759,21162,841
Exports of goods and services13,32014,24715,37316,64618,138
Less, imports of goods and services15,12115,90215,71916,68517,174
Expenditure on gross domestic product38 79644 71953 46159 17263 805

Table 26.5. NATIONAL INCOME AND OUTLAY

ItemYear ended March
1985x1986x1987x1988P1989P
* Capital transfers are included in current transfers and are not separately identifiable.
 $(million)
Final consumption expenditure—
     Government—Central5,4166,3257,8249,0089,593
     Government—Local8549821,0741,1471,295
     Private—Households2. 85727,05431,36735,58739,143
     Private—Non-profit organisations serving households318373462528576
Savings4,5173,8426,6185,7165,715
Appropriation of national disposable income33 96438 57647 34551 98656 322
Compensation of employees18,93222,09926,07628,85730,124
Compensation of employees from the rest of the world, net
Operating surplus12,79814,50116,89916,98519,475
Property and entrepreneurial income from the rest of the world, net−1 914−2 689−2215−2 751−2 730
Indirect taxes4,5094,8526,6558,9039,283
Less, subsidies596371304310193
National income33 72938 39247 11151 68355 960
Current transfers from the rest of the world, net*234184235303362
National disposable income33 96438 57647 34551 98656 322

Table 26.6. CAPITAL FINANCE

ItemYear ended March
1985x1986x1987x1988P1989P

* Includes all government-owned producer enterprises.

† Capital transfers are included in current transfers and are not separately identifiable.

 $(million)
Value of physical increase in stocks1,33649498515−358
Gross fixed capital formation—
     Private6,8887,5368,1539,4789,260
     Central government*2,0793,0592,7572,6542,639
     Local government*604703745702698
Purchase of intangible assets from the rest of the world, net
Net lending to the rest of the world−3 480−4 160−2 326−2 487−1 404
Gross accumulation7 4277 63010 31410 36210 835
Savings4,5173,8426,6185,7165,715
Consumption of fixed capital3,1533,6384,1364,7385,115
Capital transfers from the rest of the world, net
Statistical discrepancy−244150−440−924
Finance of gross accumulation7 4277 63010 31410 36210 835

Table 26.7. EXTERNAL TRANSACTIONS

ItemYear ended March
19851986198719881989

* Capital transfers are included in current transfers and are not separately identifiable.

 $(million)
Current
Exports of goods and services13,32014,24715,37316,64518,138
Compensation of employees from the rest of the world
Property and entrepreneurial income from the rest of the world240273448517474
Other current transfers from the rest of the world665709842862896
Current receipts14 22515 2291666218 02519 508
Imports of goods and services15,12115,90215,71916,68517,174
Compensation of employees to the rest of the world
Property and entrepreneurial income to the rest of the world2,1542,9622,6633,2683,204
Other current transfers to the rest of the world*430525607560533
Surplus of nation on current transactions−3 480−4 160−2 326−2 487−1 404
Current disbursements14 22515 22916 66218 02519 508
Capital     
Surplus of nation on current transactions−3 480−4 160−2 326−2 487−1 404
Capital transfers from the rest of the world, net*
Net incurrence of foreign liabilities
Capital receipts
Purchase of intangible assets from the rest of the world, net
Net acquisition of foreign financial assets
Statistical discrepancy
Capita] disbursements

Inter-industry studies

Input-output analysis is a powerful tool for studying national economies. It defines and measures in money terms the relationships between the industry groups in the economy, or between the commodity groups produced. For example, the input-output tables can be used to analyse the effect of an increase in production for export of the meat freezing and preserving industry, in terms of the increased supporting production required of all the other industries in the economy, and whether that production goes directly to the meat export works, or indirectly to them through other industries. In commodity terms, the effect of an increase in production of meat carcasses and cuts can be analysed in terms of the direct and indirect supporting production required of all other commodities in the economy.

The main objective of an inter-industry study is to provide an economic statement of the industrial structure of the economy for a given year, measuring the direct and indirect interrelationships between industries and commodities. Aims are as follows:

  1. To provide an overall view of the economy;

  2. To trace the probable effects of major rises or falls in one industry's demand throughout the economy;

  3. To enable the effect of actual or hypothesised changes in the economy to be estimated more accurately than is otherwise possible. Examples of such changes are government policies affecting consumer prices, wages, exchange rates, etc.; and

  4. To provide a measure of the relative demands of industries for imports and the contribution to exports. This demonstrates which industries are the best net earners of overseas exchange.

    The concepts used in the study are reconcilable with those in the national accounts.

The Department of Statistics undertakes full-scale five-yearly inter-industry studies covering over 100 industry groups. These are supplemented with updates, containing less industry detail, made between the full studies. The most recent full study is for 1981–82. A full study for 1986–87 is due for release in early 1991. A 25-industry update of the 1981–82 study to 1986–87 is currently available.

Gross domestic product by production group

The contribution of each producer to gross domestic product (GDP) is measured by the value which it adds in producing goods and services. For each producer, value added may be calculated in two ways: as the gross output of goods and services, less the value of goods and services used up in production; or, as the sum of the individual components of value added, i.e., compensation of employees, plus operating surplus, plus consumption of fixed capital, plus indirect taxes, less subsidies.

Individual producers are grouped into production groups on the basis of common economic activity. The classification used to define these production groups distinguishes between those producers that are market-oriented, and those that produce goods and services not normally markèted. Market producers are classified by industry, based on the New Zealand Standard Industrial Classification, while those not normally producing for the market are subdivided into those owned by central government, by local government, and by private non-profit organisations which provide services for households.

The system explicitly recognises government as a producer when it carries out its conventional role of the provision of administrative, health, education, defence, and other services. Similarly, the large number of organisations which provide services on a non-profit basis—such as religious orders, schools, hospitals, and sporting clubs—are included as a separate group in the national accounts. Also included among the non-market production groups is an account recording the wages paid by households employing domestic labour.

Table 26.8, showing contributions to GDP by production group, is a summary of data contained in full production accounts which are prepared for each of 25 production groups, and which are also analysed by private, central government, and local government sectors. These accounts are published annually by the Department of Statistics in the New Zealand System of National Accounts volume.

Table 26.8. CONTRIBUTION TO GROSS DOMESTIC PRODUCT (GDP) BY PRODUCTION GROUP

Production groupYear ended March
1984198519861987P1988P
 $(million)
Market production groups
Agriculture2,433x2,973x2,984x3,1573,715
Fishing and hunting105124171x173184
Forestry and logging431612875x1,0121,078
Mining and quarrying280x415x548x554537
Food, beverages, and tobacco2,3582 467x2 374x3,1603,441
Textiles, apparel, and leather708824x956x1,007819
Manufacture of wood products516x61 1x701x708675
Manufacture of paper products, and printing8441 133x1 196x1,3101,550
Manufacture of chemicals, petroleum, rubber, plastic677x836x1 065x1,4661,429
Manufacture of non-metallic metal products399434x501583566
Basic metal industries335442453x423407
Manufacture of fabricated metal products1,9342 279x2 534x2,6102,635
Other manufacturing81112x14611189
Electricity, gas, and water1 077x1 1 17x1 443x1,7071,766
Construction1 764x1 987x2 291x2,5122,657
Trade, restaurants, and hotels7 089x7 487x8 737x10,0639,788
Transport and storage1 914x2,1212 315x2,6112,846
Communication1,0251 095x1 182x1,5501,855
Financing, insurance, real estate, and business services3 915x4 546x5 591x7,1128,558
Ownership of owner-occupied dwellings1 377x1 609x2 375x2,8533,192
Community, social, and personal services1 257x1 463x1 711x1,9412,092
Nominal industry (bank service charge)−1 121x−1 276x−1 566x−2 147−2 590
               Total, market production groups29 397x33 413x38 582x44 47347 291
Non-market production groups
Central government services3,7673 916x4 616x5,7336,545
Local government services435474534x591620
Private non-profit services256281320384440
Domestic services of households26x2729x3548
               Total, non-market production groups4 484x4 698x5 499x6 7437 652
               Total, all production groups33 881x38 111x44 081x51 21654 943
Plus, goods and services tax1,4373,172
Plus, import duties432604535641847
Plus, other indirect taxes6281103168210
Gross domestic product34 37538 796x44 71953 46159 172

In table 26.8, the entry ‘nominal industry (bank service charge)’ requires further explanation. Banks and similar financial institutions largely finance their activities by the excess of interest and other property income received over property income paid out. In the national accounts, property income receipts and payments are regarded as transfers, and not as receipts and payments for a financial service. Therefore, if financial institutions were treated like producers in other industries, their value added would be very small, due to their property income being excluded from the production account.

To overcome this problem, financial institutions are recorded as receiving an imputed bank service charge which is paid by the users of banking services. Rather than spread the payment of this imputed charge across all users, in the national accounts the convention is adopted that it is all paid by a nominal industry, which accordingly has a negative operating surplus equal to the value of the charge. The result is that financial institutions show a realistic operating surplus, while the total operating surplus of all producers, and GDP is unaffected.

Gross fixed capital formation

Tables 26.9 and 26.10 outline gross fixed capital formation. They record purchases of capital assets, reduced by the value of sales of such assets, plus the value of construction work done by an establishment's own employees; no deduction is made for assets used up during the period of account. Land purchases and sales, but not land improvements, are excluded by definition.

The tables, which analyse gross capital formation by production group and asset type, are summaries of detailed tables, including separate series for private, central and local government sectors, which are available from the Department of Statistics on request.

Table 26.9. GROSS FIXED CAPITAL FORMATION BY PRODUCTION GROUP

Production groupYear ended March
19841985198619861988
 $(million)
Market production groups
Agriculture783x864x560x468425
Fishing and hunting23x28x40x3551
Forestry and logging3134x32x3137
Mining and quarrying115x134x190x314147
Manufacture of food, beverages, and tobacco393440429378560
Textiles, apparel, and leather6589x107x108125
Manufacture of wood products41121x164x15086
Manufacture of paper products, and printing141250x240x309309
Manufacture of chemicals, petroleum, rubber, plastic1 009x779649x321111
Manufacture of non-metallic mineral products3948x45x2647
Basic metal industries343270x529x294231
Manufacture of fabricated metal products160222x270x255296
Other manufacturing89x10x94
Electricity, gas, and water595x548x542583606
Construction163x194x256244262
Trade, restaurants, and hotels830x1 081x1 135x1,1971,372
Transport and storage443x600x1 045x792998
Communication277298444624480
Financing, insurance, real estate and business services627x883x1 457x1,8892,651
Ownership of owner-occupied dwellings1 419x1 633x1 849x2,2082,568
Community, social, and personal services106x156x191x213297
               Total, market production groups7 613x8 682x10 184x10 45111 665
Non-market production groups
Central government services468x522x695x771718
Local government services266x273314x315313
Private non-profit services90x95x102x118139
Domestic services of households
               Total, non-market production groups823x890x1 1121 2041 169
               Total, all production groups8 436x9 571x11 296x11 65512 834

Table 26.1. GROSS FIXED CAPITAL FORMATION BY TYPE OF CAPITAL GOOD

Year ended MarchResidential buildingsNonresidential buildingsOther constructionLand improvementsTransport equipmentPlant. machinery, and other equipmentTotal
 $(million)
1984x1,5621,2461,1202431,1723,0958,436
1985x1,7831,4571,1062441,6573,3239,571
1986x2,0571,9611,2721902,0013,81511,296
1987P2,4162,4081,3071301,7033,69011,655
1988P2,7583,0279451401,8834,08212,834

Increase in stocks. Table 26.11 shows the value of the physical increase in stocks of raw materials, work-in-progress, and finished goods by production group. This is a new measure which removes capital gains and losses caused by holding stocks purchased at prices higher or lower than those ruling during the year. Statistics showing increases in book value of stocks are available from the Department of Statistics on request.

Table 26.11. INCREASE IN STOCKS

Production groupYear ended March
19841985198619871988
 S(million)
Market production groups
Agriculture24424148744101
Fishing and hunting
Forestry and logging365522733832840
Mining and quarrying7331−12
Manufacture of food, beverages, and tobacco−3642−13373−47
Textiles, apparel, and leather−12528−36−48
Manufacture of wood products−25−181410−9
Manufacture of paper products, and printing−13714−411
Manufacture of chemicals, petroleum, rubber, and plastic−2926105−60−66
Manufacture of non-metallic mineral products−3−8−9−169
Basic metal industries1715−13−1317
Manufacture of fabricated metal products−110147−16018
Other manufacturing1310−111
Electricity, gas, and water4519529−23
Construction162420−1725
Trade, restaurants, and hotels14130−875426−722
Transport and storage8−5−6−1−5
Communication3785151−121−58
Financing, insurance, real estate, and business services
Ownership of owner-occupied dwellings
Community, social, personal services1010−243−14
               Total, market production groups5481 33149397816
Non-market production groups
Central government services23−17−2
Local government services1221
Private non-profit services
Domestic services of households 
               Total, all production groups5511 33649498515

Final consumption expenditure of households

Final consumption expenditure of resident households is available by purpose and type. The series are calculated for the years ended 31 March 1984 to 1988. Points to note are:

  • In the tables total expenditure by households in the domestic market (including expenditure by non-resident individuals) is analysed by purpose and type. This total is then adjusted to obtain final consumption expenditure of resident households, by deducting expenditure of overseas visitor; in New Zealand, and adding that of New Zealand visitors overseas.

  • Table A, expenditure by purpose, classifies expenditure on goods and services by their use, that is, the analysis distinguishes between the purposes for which households purchase goods and services. Accordingly, a mixture of goods and services may be combined in a single category, for example, the hotels and restaurants item includes expenditure on food, alcohol and accommodation.

  • Table B, expenditure by type, classifies expenditure on goods and services by durability. Non-durable goods are defined as those with an average useful life of less than one year. Durable goods are expected to last one year or longer.

Table 26.12. FINAL CONSUMPTION EXPENDITURE OF RESIDENT HOUSEHOLDS

(A) BY PURPOSE
 Year ended 31 March
198419851986198719881989

* Included in ‘hotels and restaurants’ is the expenditure on alcohol consumed in chartered clubs, hotels, taverns and licensed restaurants. Purchases from bottle stores and wine shops are included in ‘beverages’.

† Includes fringe benefits received by households.

 $(million)
Food and beverages
     Food2,5252,6842,9393,3213,8204,435
     Beverages*6186767448481,0741,019
Clothing and footwear1,3631,4181,5831,7872,1432,283
Housing
     Imputed rent of owner-occupied dwellings1,8812,0902,4263,2953,8274,323
     Rental payments and associated costs6246597439601,1151,289
Household goods and services
     Fuel and power440463483575720842
     Furniture, floor coverings and appliances9471,0031,1271,2411,4651,519
     Textiles and tableware397413469523631672
     Other goods and services359397440502610707
Health and medical goods and services8579191,0241,2461,5631,909
Transport
     Cars, motorcycles and other vehicles1,2021,2681,6341,7881,8782,075
     Vehicle operation1,5751,7411,9842,4692,5222,824
     Public transport7057768681,0181,1011,339
Recreation and education1,6791,8362,0422,3122,7743,127
Hotels and restaurants1,4921,6761,9672,3442,7143,067
Other goods and services
     Tobacco406464512563687869
     Personal goods and services6036517278631,0271,174
     Postal and telephone312342368401518656
     Services not elsewhere classified4955556938961,0591,187
     Total expenditure by households in New Zealand18 48020 03222 76926 95231 24835 317
Less, Non-resident households' expenditure in New Zealand. Plus, resident households expenditure overseas−236−166−88−102−119−270
     Final consumption expenditure of resident households18 71620 19822 85727 05431 36735 587
(B) BY TYPE
 Year ended 31 March
198419851986198719881989
 $(million)
Total non-durable goods5,5875,9956,5957,6008,7569,953
Total durable goods5,7436,1327,1238,0019,1899,926
Total services7,1507,9059,05111,35113,30315,438
               Total expenditure by households in New Zealand18 48020 03222 76926 95231 24835 317
Less, Non-resident households' expenditure in New Zealand. Plus, resident households' expenditure overseas−236−166−88−102−119−270
               Final consumption expenditure of resident households18 71620 19822 85727 05431 36735 587

Gross domestic product and expenditure at constant prices

Gross domestic product and expenditure on gross domestic product at constant prices is calculated by removing the effects of price changes from the current price production accounts and expenditure aggregates respectively. Such statistics enable annual and quarterly comparisons to be made of the relative volumes of goods and services produced, consumed, stockpiled, and accumulated in the New Zealand economy. Details on industries and aggregates provide information on structural changes in the economy which are not readily observed in the current price accounts. Gross domestic product estimates at constant prices have been developed from 1977–78 onwards and are now based on the 1982–83 year.

With the constant price series it has not been possible to produce separate statistics for all 25 production groups used in the current price accounts. The production groups which have been amalgamated are as follows:

  • Manufacturing of fabricated metal products; machinery and equipment; and other manufacturing industries;

  • Community, social, and personal services; private non-profit services to households; and domestic services of households; and

  • Central government services; and local government services.

Table 26.13. CONTRIBUTION TO GDP AT CONSTANT 1982–83 PRICES BY PRODUCTION GROUP

Industrial groupsYear ended March
19841985198619871988
* For imputed bank service charge.
 $(million)
Agriculture1 998x1 972x2 454x2,5433,019
Fishing and hunting9796x102x102109
Forestry and logging365378379x379396
Mining and quarrying288x385x555x577497
Food, beverages, tobacco1,9982,0851 925x2,1762,013
Textiles, apparel, and leather736819797841781
Wood and wood products468521505469460
Paper, printing, and publishing8719869901,0441,096
Chemicals, petroleum, and plastics716817x790x803754
Non-metallic mineral products377412427424385
Basic metal industries334371315307324
Machinery and metal products, miscellaneous1,9352,2122,1151,9801,894
Electricity, gas, water1 068x1,0761 107x1,1391,144
Construction1 751x1 813x1 865x1,8051,779
Trade, restaurants, and hotels6 399x6 490x6 237x6,4516,329
Transport and storage1 771x1 989x1 946x1,9941,985
Communications965x1 048x1 136x1,2321,304
Financing, insurance, real estate and business services3 690x3 930x4 230x4,5884,969
Owner-occupied dwellings1 238x1 263xl 292x1,3211,346
Community and personal services1 531x1 598x1,6741,7001,675
General government services4 161x4 153x4 133x4,0974,040
Plus, unallocated indirect taxes406x489x498x522570
Less, nominal industry*−1 137x−1 261x−1 431x−1 643−1 839
Gross domestic product31 999x33 595x33 993x34 82935 020

The series of gross domestic product at constant prices commenced in 1977–78, replacing the previously published Index of Real GDP. A historical series of GDP expressed at 1977—78 base year prices has been calculated from 1954–55 to 1977–78 and is available on request from the Department of Statistics.

Quarterly indexes of gross domestic product at constant prices. In addition to the annual constant price series shown above, quarterly indexes of gross domestic product at constant prices are also calculated. The quarterly indexes are fully reconciled with the annual series, but are not available at the same level of production group detail used in the annual constant price series.

The following production groups from the annual constant price series have been combined:

  • Fishing and hunting; forestry and logging; mining and quarrying;

  • Food, beverages, tobacco; textiles, apparel and leather; wood and wood products; paper, printing and publishing; chemicals, petroleum and plastics; non-metallic mineral products; basic metal industries; machinery and metal products, miscellaneous; and

  • Transport and storage; communications; financing, insurance, real estate and business services; community and personal services.

    Quarterly indexes for unallocated indirect taxes and the nominal industry are not available.

Both actual and seasonally adjusted indexes of GDP at constant prices are shown in table 26.13 for the four quarters to September 1989.

Table 26.14. INDEXES OF GROSS DOMESTIC PRODUCT AT CONSTANT PRICES*

Industrial groupsQuarter ended
December 1988March 1989June 1989September 1989
* Quarterly indexes are shown as annual equivalents. Base: 1982–83 (= 100.0)
Actual
     Agriculture18315285117
     Fishing hunting, forestry, mining196153117142
     Manufacturing106102107102
     Electricity, gas, water125115121124
     Construction93839291
     Trade, restaurants, hotels1049810397
     Owner-occupied dwellings113114114115
     Transport, communications, business and personal services139138140140
     General government services98899596
          Gross domestic product118.0110.4109.6110.8
Seasonally adjusted
     Agriculture136129127135
     Fishing, hunting, forestry, mining Manufacturing151140156166
 103104106104
     Electricity, gas, water129123121113
     Construction90909187
     Trade, restaurants, hotels10010010496
     Owner-occupied dwellings113114114115
     Transport, communications, business and personal services137138141140
     General government services96979796
          Gross domestic product111.4111.2113.7112.4

Expenditure on gross domestic product. Estimate of expenditure on gross domestic product at constant prices have been developed from 1982–83 onwards and include separate statistics for six expenditure aggregates.

Table 26.15. EXPENDITURE ON GROSS DOMESTIC PRODUCT AT CONSTANT 1982–83 PRICES

Expenditure aggregateYear ended March
1986198719881989
Final consumption expenditure
     A. General government5,8716,0146,1646,243
     B. Private20,40721,07421,61022,015
Increase in stocks15405−284−461
Gross fixed capital formation8,9448,4749,0008,764
Gross national expenditure35,23535,96636,49136,560
Exports of goods and services10,59111,26011,80011,982
Less Imports of goods and services11,90812,13013,67513,504
          Expenditure on GDP33 91735 09534 61535 039

26.3 Balance of payments

New Zealand's balance of payments statement is a record of the country's international economic transactions. It shows, for a defined period, the value of goods, services and income New Zealand received from and provided to the rest of the world, and the changes in New Zealand financial claims on and liabilities to the rest of the world. Such a record has a variety of uses, beside the basic appraisal of the effect of the transactions on the domestic economy.

Like agencies in most countries, the New Zealand Department of Statistics compiles balance of payments statements along principles recommended in the fourth edition of the International Monetary Fund's Balance of Payments Manual. The department publishes both annual and quarterly balance of payments statements, but with greater details in the former. The annual statements are compiled on a 31 March year basis.

Basic principles

The basic principles of the New Zealand balance of payments statement are:

  • A transaction between a New Zealand resident and a” non-resident is deemed to be a balance of payments transaction. New Zealand residents include the general government, all individuals who currently reside or intend to reside in New Zealand for a continuous period of one year or more and all organisations (profit and non-profit) that operate within New Zealand. Non-residents are all individuals and organisations that are not New Zealand residents.

  • A transaction is recorded at the time it occurs. In the case of goods sold, the transaction is recorded when ownership changes.

  • Transactions are recorded at market Value. Exports and imports of merchandise are valued f.o.b. in the exporting country. Foreign currency transactions are converted to the New Zealand dollar at the market exchange rate at the time of each transaction.

Balance of payments statement

The New Zealand balance of payments statement for the three years ended 31 March 1987. 1988 and 1989 are shown in table 26.16.

New Zealand's economy is small and is dependent on foreign trade. In the three years to March 1989, New Zealand achieved annual balance on merchandise trade surpluses. However, these were more than offset by the deficits in the balance on invisibles trade—resulting in balance on current account deficits for all the three years.

New Zealand's balance of payments is dominated by the fluctuations in its earnings from merchandise exports and its payments for merchandise imports. Over the last three years, the value of merchandise exports accounted for 69 percent of total current account receipts and averaged 21 percent of gross domestic product (GDP). The value of merchandise imports accounted for 53 percent of total current account payments and averaged 19 percent of GDP. Thus, factors such as the terms of trade and trade volume—which affect the value of merchandise exports and imports—will have strong influences on the New Zealand balance of payments.

In the three years to March 1989, the New Zealand annual current account deficit has reduced significantly—from $2 516 million in the year ended March 1987 to $1 007 million in the year ended March 1989. This resulted mainly from increased merchandise exports.

New Zealand's total foreign reserves at 31 March 1989 were valued at $4 033 million, a decrease of $3 511 from the $7 544 valued at 31 March 1987. Transactions in reserves accounted for $2 953 million of the decrease.

Table 26.18 shows the regional summaries of New Zealand balance of payments for the years ended 31 March 1984 and 1985.

Table 26.16. SUMMARY OF NEW ZEALAND'S BALANCE OF PAYMENTS*

Item1985–86*1987–88*1988–89*
CreditDebitCreditDebitCreditDebit

* Figures are derived from quarterly balance of payments data. Annual data, which hove more detail, were not available at the time of publication.

† Balancing item accounting for errors and omissions. Includes all direct investment and other capital flows of the private sector and government-owned corporations.

Current accountNZ$(million)
Exports/imports (as published in external trade statistics)11,59811,36912,44112,06114,06311,673
Adjustments to balance of payments concepts−107−855205−908−213−939
Exports/imports (f.o.b. exporting country)11,49110,51412,64611,15313,85010,734
          Balance on merchandise trade9771 4933 116
Transportation1,5811,6841,4701,7081,5691,626
Travel1,3121,2601,6121,6011,5462,148
Insurance−1855−42410115
Other miscellaneous services6251,1626171,2187001,427
Government transactions5129553224261187
          Balance on services−905−1 027−1 417
International investment income8173,6401,2494,1921,0454,113
Transfers843608863559895533
          Balance on invisibles−3 493−3 666−4 123
          Balance on current account−2 516−2 173−1 007
Capital account
Government borrowing (net)6,721−1 830−1 261
Reserve Bank borrowing (net)−166−1 08−648
IMF drawings (net)
Total official borrowing (net)6,555−1 938−1 909
          Residual (includes short-term private capital movements and errors and omissions)1 3152 8451 232
          Net apparent capital inflow7 870907−677
Reserves—
Change due to transactions5,357−1 267−1 685
Valuation change−479−722165
Total change in holdings4,878−1 989−1 520

Table 26.17. NEW ZEALAND'S FOREIGN RESERVES

ItemYear ended 31 March
198719881989
 NZS(million)
Changes in reserve assets—NZS(million)
Monetary gold—
     Total change in holdings13
     Counterpart to monetisation/demonetisation
     Counterpart to valuation changes13
Special drawing rights (SDRs)—
     Total change in holdings8−1−15
     Counterpart to allocation/cancellation
     Counterpart to valuation changes−1
     Change due to transactions9−1−15
Reserve Bank position at the IMF—
     Total change in holdings17
     Counterpart to valuation changes
     Change due to transactions17
Reserve Bank foreign reserves—
     Total change in holdings4,324−4 573687
     Counterpart to valuation changes—413−44281
     Change due to transactions4,738−4 130606
Treasury foreign reserves—
     Total change in holdings5442,584−2 223
     Counterpart to valuation changes−66−28071
     Change due to transactions6102,864−2 294
Summary of reserve transactions—
     Total change in holdings4,876−1 990−1 521
     Counterpart to allocation/cancellation
     Counterpart to monetisation/demonetisation
     Counterpart to valuation changes−479−722164
     Changes in reserves due to transactions5,357−1 267−1 686
               Total reserves at 31 March7544.5 5544 033

Table 26.18. REGIONAL SUMMARIES OF BALANCE OF PAYMENTS TRANSACTIONS

 Merchandise trade balanceInvisibles balanceCurrent account balanceNet capital movements*Net compensatory financingNet transactions in reserves
* Includes all transactions in financial assets and liabilities other than transactions in reserves and reserve-related liabilities. Excludes errors and omissions.
1983–84NZ$(million)
United Kingdom133−629−497260180−68
Other EC−157−131−288136−34−299
Australia−471−96−56739
United States1−565−564−136526−64
Japan−365−198−56342910532
Canada−10392929
Other OECD−138−169−30790−4−1
Asia-Oceania215−17441322
Central and South America—Caribbean1332015325
Other countries740−7067020−125−93
International organisations−98−98−647
               Total 1983–8481−2 071−1 9911 208648−446
United Kingdom−19−1 157−1 176346363−51
Other E.C.−132−198−3298285398
Australia−465−99−565116
United States−225−773−99871−13188
Japan−647−262−9094461,568−440
Canada−967−89−233
Other OECD−28−208−235132−39610
Asia-Oceania158−7286203−64
Central and South America—Caribbean12210132−13
Other countries598−61537−36−38130
International organisations−92−93−2−88
               Total 1984–85−734−2 905−3 6391 3221 38750

Recording system

The New Zealand balance of payments statement employs a double entry bookkeeping system. The system requires the value of each transaction to be recorded both on the credit and the debit side of the statement. Thus, the total value of the credit entries in the statement should equate the total value of the debt entries, for each transaction and for the statement as a whole. In practice, however, this is seldom the case due to unavoidable errors and omissions in measurements. To compensate, a balancing item is created to account for these.

Most balance of payments transactions involve exchange of an economic or financial resource for another economic or financial resource of equal value between residents of two countries. This exchange, or two-way flow of resources of equal value automatically facilitates the necessary credit and debit entries in the balance of payments statement. However, some balance of payments transactions are one sided and do not involve ‘equal’ exchange. Examples include both gifts in cash and in kind, migrants' transfers, foreign aid and legacies. To maintain the double entry system, special entries, named ‘unrequited transfers’, are created in the balance of payments statement as counter entries to the single directional flow of resources arising from such one-sided transactions.

Current and capital accounts, and reserves

A balance of payments statement is normally viewed in three parts—the ‘current account’, the ‘capital account’, and ‘reserves’.

Current account. This shows the flows of goods, services and income received (as credits) and provided (as debits). Thus, the credit entries in the current account of the New Zealand balance of payments statement show the value of goods, services and income New Zealand has received from the rest of the world. Likewise, the debit entries show the value of goods, services and income provided by New Zealand to the rest of the world. To allow analysis, the flow of goods, services and income are categorised into principal kinds of transactions. Examples include exports and imports, tourism and transport. In addition, certain ‘balances’ are also calculated. These ‘balances’ show the difference between the amount of goods, services and income New Zealand has received from and has provided to the rest of the world as a result of some specific principal transactions. The most important of these ‘balances’ is the balance on current account, commonly referred to as the ‘balance of payments deficit/surplus’.

An explanation of the categories of principal transactions and the various balances used in the New Zealand balance of payments statement can be found in the glossary at the back of this book.

Capital account. This shows the changes in New Zealand's financial claims on, and financial liabilities to, the rest of the world. Each credit entry reflects either an increase in New Zealand's liabilities or a decrease in New Zealand's claims (assets). Correspondingly, each debit entry reflects either an increase in New Zealand's claims or a decrease in New Zealand liabilities. The claims and liabilities are classified by types and by institutional sectors for analytical studies. For an explanation of the classification used in New Zealand's statement, refer to the glossary

The classifications used in the capital account have changed slightly since 1986. The term ‘compensatory financing’ is used to indicate government borrowing for balance of payments purposes, and its identification was important in a regulated economy with a fixed exchange rate regime. However, since the New Zealand economy was deregulated in late 1984 and the New Zealand dollar floated in March 1985, there has been no need for government to borrow specifically to finance the balance of payments deficit. Thus, the item ‘compensatory financing’ does not exist and is irrelevant after March 1985. The emphasis in the New Zealand balance of payments statement thus switched from ‘balance before compensatory financing’ to ‘net apparent capital inflow’.

Reserves. The reserves section of the New Zealand balance of payments statement show the changes in the amount and value of foreign reserves assets of New Zealand.

Geographic division

The regional breakdown of the New Zealand balance of payments is on a geographical (as distinct from a currency) basis. Where possible, the regional allocation of a transaction is determined by the residency of the transactors, and not the currency of settlement. A' total of eleven geographic regions are used. These are:

United Kingdom (including Channel Islands).

Australia (includes Norfolk Island, Christmas Island, and Cocos Islands).

USA United States of America, Puerto Rico, Virgin Islands, American Samoa, Guam, and other United States' islands in the Pacific.

Canada.

Japan.

Other EC countries. All member countries of the European Economic Community (EEC) except the United Kingdom which is a separate region.

Other OECD. Austria, Finland, Iceland, Norway, Sweden, Switzerland, Turkey, Yugoslavia.

Asia-Oceania. Asian countries east of Iran and all Pacific countries except Australia, Japan, the Americas and New Zealand.

Central and South America-Caribbean. All the Americas except Canada and the United States.

Other countries. All countries not included in any other region.

International organisations. All international non-profit organisations, comprising mostly of political, administrative, economic, social or financial institutions, in which the members are governments. Examples included the United Nations and its agencies, the International Monetary Fund. World Bank and the Asian Development Bank.

Overseas debt

New Zealand has been a debtor nation to the rest of the world since European settlement. Foreign capital has been used to develop the natural resources of the country. Governments have borrowed to speed the creation of the infrastructure of roads, railways and harbours, and at times to maintain the level of consumption within New Zealand. The private sector (and in the past two decades the government), has used foreign money for the development of industry.

Much of the latter investment has been through equity capital i.e., by overseas residents taking shares in companies operating in New Zealand.

Other investment has been in the form of direct lending by overseas investors, resulting in New Zealand resident individuals, businesses and government having a financial liability to an overseas resident. This liability constitutes the New Zealand overseas debt and has been of increasing interest in the past decade.

The level of central government debt has always been available from the government accounts. That of the private sector has not previously been readily available. In 1983 the Reserve Bank conducted a survey of the major private overseas borrowing, and the Department of Statistics collected information from major firms on long-term borrowing and trade credits for the years ended March 1983, 1984 and 1985.

The deregulation of the New Zealand foreign exchange market and abolition of exchange controls led to the need for more regular measures of overseas debt. In June 1986 the Department of Statistics introduced the quarterly survey of long term overseas debt.

Subsequently short-term borrowing overseas has become a significant source of funds for the private sector and, to a lesser degree, for central government. After some exploratory surveys in 1988 the department met the need for an overall measure of debt in September 1989 with the introduction of the quarterly Total Overseas Debt Survey. The results of this and earlier surveys are set out in table 26.19.

Table 26.19. OVERSEAS DEBT

PeriodPrivateOfficial governmentOther central governmentTotal
Long termShort termTotalLong termShort termTotalLong termShort termTotalLong termShort termTotal
* Short-term series commenced
 $(million)
1983—Mar3,079....9,178....2,469....14,725....
1984—Mar3,885....9,336....3,138....16,360....
1985—Mar5,449....13,916....5,249....24,614....
1986—Mar5,228....15,595....5,601....26,424....
         —Jun5,076....16,076....6,092....27,244....
         —Sep6,559....20,747....6,780....34,086....
         —Dec6,668....21,320....5,882....33,871....
1987—Mar7,204....21,822....7,211....36,237....
         —Jun7,152....19,905....6,942....33,999....
         —Sep7,289....17,367....6,449....31,105....
         —Dec7,806....18,653....6,780....33,239....
1988—Mar7,920....19,269....6,088....33,276....
         —Jun6,035....17,952....6,120....30,106....
         —Sep6,287....17,497....6,471....30,255....
         —Dec*6,64713,64720,29417,79775918,5565,9468736,81930,39015,27945,669
1989—Mar6,373  16,777  6,011  29,062  
         —Jun5,970  17,604  5,623  29,198  

Care should be taken in interpreting trends in long-term overseas debt series due to the different data collected and survey methods used since the series was first compiled.

While the trends may be indicative, changes in the data from one period to another may also be due to different definitions and degrees of coverage in the various surveys/data sources and sectorial reclassifications of enterprises over time.

The recent surveys of overseas debt closely follow the recommendations of the International Working Group on External Debt Statistics. The group is seeking to introduce common, internationally accepted definitions and concepts for the various agencies that produce debt statistics. Quarterly estimates of New Zealand's overseas debt, together with an explanation of current survey methodology are available from Department of Statistics on request.

Overseas debt statistics are prepared for three specific sectors of the New Zealand economy. These are:

  • The official New Zealand government sector—comprising the Reserve Bank, Treasury and all other government departments;

  • The other central government sector—comprising all organisations substantially owned or controlled by the New Zealand Government; and

  • The private sector—which is primarily made up of companies, financial institutions and producer boards. Households and individuals are excluded.

Contributor

  • 26.1–26.3 Department of Statistics.

Historical

Department of Statistics

Further information

Business statistics

New Zealand Business Patterns. Department of Statistics (annual).

New Zealand Enterprise Survey 1,985–86. Department of Statistics.

New Zealand Standard Industrial Classification. Department of Statistics, 1988.

National accounts

Consolidated National Accounts for New Zealand on an SNA Basis. Research Paper No. 32, D. Grindell (cd). Reserve Bank of New Zealand. 1981.

National Accounting Analysis of the Public Accounts. 1975–76 to 1984–85. Monthly Abstract of Statistics. November/December 1986, Appendix V. Department of Statistics.

National Accounts in Constant Prices. Monthly Abstract of Statistics. September 1984, Appendix I. Department of Statistics

Key Statistics. Department of Statistics (monthly).

New Zealand System of National Accounts. Department of Statistics (annual).

New Zealand's Real National Disposable Income. Monthly Abstract of Statistics, June 1985, Appendix 1. Department of Statistics.

Quarterly National Accounts at Constant Prices. Monthly Abstract of Statistics. August 1985, Appendix VI. Department of Statistics.

Quarterly Predictions. New Zealand Institute of Economic Research.

A System of National Accounts. Studies in Methods, Series F, No. 2, Rev. 3. United Nations, 1968.

Inter-industry studies

Inter-industry Study of the New Zealand Economy, 1971–72, 1976-/7, 1976–77, 1981–82. Department of Statistics.

New Zealand Input-Output Tables 1983–84. Department of Statistics.

Provisional Input-Output Tables 1986–87. Department of Statistics.

Balance of payments

Annual Balance of Payments. Department of Statistics.

Appendix A. Weights and measures

New Zealand had converted from the Imperial to the International System of units for measurement by 1976. All the statistics in this volume are in metric (SI) units, except for ship tonnages (not cargo).

Metric to ImperialMetric multiples
Length
     1 millimetre (mm)= 0.04 inches (in.)1 centimetre (cm)= 10 millimetres (mm)
     1 centimetre (cm)= 0.39 inches (in.)1 metre (m)= 100 centimetres (cm)
     1 metre (m)= 39.3 7 inches (in.)1 kilometre (km)= 1 000 metres (m)
      = 1.09 yards(yds) 
     1 kilometre (km)= 0.62 miles 
Area
     1 square metre (m2)= 10.76 square feet (sq. ft)1 hectare (ha)= 10 000 square metres (m2)
      = 1.20 square yards (sq. yd)1 square kilometre (km2)= 100 hectares (ha)
     1 hectare (ha)= 2.47 acres
     1 square kilometre (km2)= 247 acres
      = 0.39 square miles 
Volume and capacity
     1 cubic centimetre (cm3)= 0.06 cubic inches (cu. in.)1 cubic metre (m3)= 10 000 000 cubic centimetres (cc)
     1 cubic metre (m3)= 35.31 cubic feet (cu. ft)1 litre (1)= 1 000 millilitres (ml)
      = 1.31 cubic yards (cu. yd)1 millilitre (ml)= 1 cubic centimetre (cc)
     1 litre (1)= 1.76 pints1 cubic metre (cm3)= 1 000 litres (1)
      = 0.22 gallons
Mass (weight)
     1 gram (g)= 0.04 ounces (oz)
     1 kilogram (kg)= 2.20 pounds (lb)1 kilogram (kg)= 1 000 grams (g)
     1 tonne (t)= 2 204.62 pounds (lb)1 tonne (t)= 1 000 kilograms (kg)
      = 0.98 tons
Velocity
     1 kilometre per hour (km/b)= 0.62 miles per hour (mph)
Pressure
     1 kilopascal (kPa)= 0.15 pounds per square inch (psi)1 megapascal (MPa)= 1 000 kilopascals (kPa)
     1 megapascal (MPa)= 0.06 tons per square inch (tons psi)
Temperature
     Degrees Fahrenheit (°F)= 9×°C/5 +32
     Degrees Celsius (°C)=5(°−32)/9
Energy
     1 kilojoule (kJ)= 0.95 British thermal units (Btu)1 megajoule (MJ)= 1 000 kilojoules (kJ)
      = 0.24 calories (cal)1 kilowatt hour (kWh)= 3.6 megajoules (MJ)
       1 gigajoule (GJ)= 1 000 megajoules (MJ)
       1 terajoule (TJ)= 1 000 gigajoules (W)
       1 petajoule (PJ)= 1 million gigajoules (GJ)
Power
     1 kilowatt (kW)= 1.34 UK horsepower1 kilowatt (kW)= 1 000 watts
       1 megawatt (MW)= 1 000 kilowatts (kW)
       1 gigawatt (GW)= 1 000 megawatts (MW)

Glossary of statistical terms

Statistical terms defined here are those frequently used in censuses of population and businesses, and other data and index series referred to in this book.

Activity unit.

Formerly known as an establishment this is a separate operating unit engaged in New Zealand in one (or predominantly one) kind of economic activity from a single physical location or base from which work is carried out—includes an ancillary activity unit.

Additions to fixed assets.

Purchases of new and secondhand fixed assets and the cost of work done by a firm's own employees in producing, constructing and installing fixed assets for its own use.

Adjustments to balance of payments concepts.

Adjustments to the external trade statistics to bring the value of exports and imports in line with the balance of payments concepts. Imports are adjusted from c.i.f. to f.o.b. value. Exports are adjusted for goods shipped and sold on consignment.

Ancillary activity unit.

An administrative or general servicing unit such as a head office, storage unit, laboratory, etc., the prime function of which is to provide services for other locations of the enterprise.

Balance on current account (balance of payments).

The balance on merchandise trade plus the balance on invisibles. Normally referred to as the balance of payments deficit/surplus, this item shows the extent to which New Zealand is paying its way in the world. A deficit, shown as a negative figure, represents the amount that New Zealand has to either borrow from abroad or run down on its foreign assets.

Balance on invisibles (balance of payments).

The balance on services, plus the credits, less the debits for international investment income and transfer items.

Balance on merchandise trade (balance of payments).

The surplus of exports f.o.b. over imports f.o.b. (see adjustments above).

Balance on services (balance of payments).

The excess of the total credit entries over the total debit entries for the transportation, travel, insurance, miscellaneous and government transactions items.

Balancing item—errors and omissions (balance of payments).

A balancing item accounting for errors and omissions in measurements. Includes transactions that are not measured, for example, private short-term capital movements.

Birth rate (crude).

The number of births per 1000 of total mean population.

Bone-in weight.

Dressed carcass weight, including bone.

Capital expenditure less disposals.

The amount spent on the purchase of new and secondhand fixed assets, less the proceeds received from the sale of any such assets.

Capital movement of owned corporations (balance of payments).

Changes in foreign claims and liabilities of state-owned enterprises. Includes the changes in such enterprises' direct investment overseas. Excludes government departments.

Capital transfers from the rest of the world, net (national accounts).

The excess of the value of capital transfers by non-residents to New Zealand residents over the value of similar transfers by residents to non-residents. Capital transfers are unrequited transfers in cash or in kind which are not considered by the recipient as adding to current income, nor by the donor as reducing current income. Examples are unilateral transfers of capital goods, legacies, investment grants, and transfers of migrants' funds. In the NZSNA it has not been possible to identify all of these flows separately, and they have been included in current transfers to/from the rest of the world.

Census.

A type of survey in which all members of a given population provide information. These units may be people, companies, buildings, local authorities, etc. The Department of Statistics carries out a range of censuses at regular intervals, such as the Census of Population and Dwellings, at five-yearly intervals, and other regular censuses. (See also sample survey.)

C.i.f. (cost including insurance and freight).

A basis for valuation of merchandise imports, representing the cost to the importer of buying the goods and bringing them to the wharfside in New Zealand.

Compensation of employees (national accounts).

Payments of salaries and wages, whether in cash or in kind, to employees. Includes contributions paid on employees' behalf to superannuation funds, private pension schemes, the Accident Compensation Corporation, casualty and life insurance schemes, etc.

Compensation of employees to/from the rest of the world (national accounts).

In theory, these items cover the compensation residents of one country earn from employment in another where they are classed as non-resident, because their stay is for a period of less than 12 months. In practice, available data does not permit estimates of these items.

Consumption of fixed capital (national accounts).

The value of depreciation at ordinary rates allowed for taxation purposes, plus an estimate for the normal rate of accidental damage based on the insurance claims by each industry group.

Death rate (crude).

The number of deaths per 1000 of population.

Density (of population).

Usually expressed as the average number of persons per square kilometre (or hectare) in a particular locality.

Depreciation.

As charged in books of account on fixed tangible assets owned by the establishments and ancillary units.

Employer contributions.

Payments to superannuation, pension and welfare schemes, and accident compensation levies.

Employment status.

A respondent's employment status within the labour force. This applies to persons in the full- and part-time labour force. Employment status categories are: working for wages or salary; self- employed and not employing others; employer of others in own business; and unpaid worker in a family business.

Enterprise.

A business or service entity operating in New Zealand as a company, partnership, trust, local or central government trading organisation, incorporated society, produce board, voluntary organisation or self-employed individual.

Ethnic origin.

The ethnic origin, or origins that a person specifies on a self-determination basis.

Ex-nuptial birth.

Birth of a child out of wedlock, including from a de facto relationship.

Exports of goods and services (national accounts).

All goods and services produced by New Zealand residents and purchased by the rest of the world. Exports of merchandise are valued f.o.b.

Fertility.

The reproductive performance of a population in relation to the number of live births that occur is normally measured in terms of women between the ages of 15–44 years.

Final consumption expenditure (national accounts).
  1. Resident households— All outlays on consumer goods and services, including expenditure on consumer durables such as motor vehicles and furniture; included are payments made by government on behalf of households, and the imputed rent of owner-occupied dwellings.

  2. Producers of general (central and local) government services and private nonprofit services to households—Total current expenditure by these producers less the value of any sales or own account capital formation (i.e., the total net current costs incurred in providing the services).

Foreign private direct investment in New Zealand (balance of payments).

Changes in foreign direct investors' claims on, and liabilities to, their New Zealand subsidiaries and branches.

F.o.b. (free-on-board).

The current market value of goods in the country of origin, including all costs necessary to get them on board the ship or aircraft, but excluding freight, insurance, and other costs involved in transporting goods between countries.

Gainfully employed in the labour force.

Persons employed in the labour force either full or part-time, excluding persons who are unemployed and seeking work.

Government transactions (balance of payments).

Export and import of goods, services and income by general government organisations (excluding state-owned enterprises).

Gross domestic product (GDP national accounts).

The total market value of goods and services produced in New Zealand after deducting the cost of goods and services utilised in the process of production, but before deducting allowances for the consumption of fixed capital.

Gross fixed capital formation (national accounts).

The outlays of producers on durable real assets, such as buildings, motor vehicles, plant and machinery, roading, and improvements to land. In measuring the outlays, sales of similar goods are deducted. Land is excluded from gross fixed capital formation. Included is the value of construction work done by a firm's own employees. The term ‘gross’ indicates that consumption of fixed capital has not been deducted from the value of the outlays.

Gross national expenditure (national accounts).

The total expenditure within a given period on final goods and services by New Zealand residents (i.e., excluding goods and services used up during the process of production).

Gross national product (national accounts).

The income accruing within a given period to New Zealand residents from their services in supplying factors of production in New Zealand and overseas, plus net indirect taxes, and before the deduction of allowances for the consumption of fixed capital.

Gross output at producers' values (national accounts):
  1. Market production groups—The total market value including commodity taxes on all goods and services produced during the year, including stocks of work-in- progress. Included is output produced for sale in the market, and capital formation on own account.

  2. Non-market production groups—These producers may sell a proportion of their output in the market, and such receipts are included in total output. However, most of the services produced represent unmarketed output and are valued at cost price. This assumption is necessary because there is no other basis for valuation.

Gross tonne.

The unit of actual weight of cargo, including packaging but not including the weight of a reusable container.

Harmonised system.

The classification adopted by New Zealand on 1 January' 1988 for processing customs entries and publishing statistics on external trade. It replaces the Customs Co-operation Council Nomenclature (C.C.C.N.) based tariff and the S.I.T.C. statistical classification.

Imports (balance of payments).

All goods and services purchased by New Zealand residents from non-residents. (See also merchandise trade and invisible (trade)).

Imports of goods and services (national accounts).

All goods and services produced by the rest of the world and purchased by New Zealand residents. Imports of merchandise are valued c.i.f. (cost, including insurance and freight).

Income (total).

Income before tax which a person aged 15 years and over receives for a financial year from all sources, e.g., wages, salary, social welfare payments, interest, dividends, commission, pre-tax business or farming income (less expenses).

Increase in stocks (national accounts).

The change in value of stocks of raw materials, work-in-progress, and finished goods, between the beginning and the end of the year.

  1. Value of the physical increase in stocks—The change in stocks valued at the average prices for the year. This valuation removes capital gains and losses caused by holding stocks purchased at prices higher or lower than those ruling during the year.

  2. Increase in book value of stocks—The change in stocks as valued in accounting records.

Indexes.

Indexes are used to measure the total impact of changes in the attributes of commodities which cannot be compared directly. In New Zealand the most common use of index numbers is to measure changes in prices or money values over time. When calculating a price index the type, quantity and quality of each commodity are all held constant so that the price movement can be measured. There are a number of methods for calculating index numbers and a type called the Laspeyres index is that most often encountered. The most frequently quoted index is the Consumers Price Index which reports quarterly the change in price level of those goods and services purchased by private New Zealand households during the index-base period. By expressing the changes as an index, price changes in commodities as diverse as beef, hairdressing and club subscriptions can all be aggregated to produce a measure of overall price change.

Using the Consumers Price Index as an example, a fixed-base Laspeyres index is compiled as follows:

  • The base for measurement is established by choosing a representative selection of goods and services from commodities purchased by New Zealand households in the previous year. The commodities in the base are often referred to as a basket of goods or an index regimen and the time period as a base year. By convention the index number of 1000 is used to express the value of the basket of goods in the base year.

  • As part of the process of establishing the base, a weight is assigned to each commodity. This weight shows the relative importance of the commodity in household expenditure. The weighting procedure ensures that major expenditure items are given their due importance. For example, a small increase in the price of commodities like bread or petrol will be more significant than a large increase in the price of pianos.

  • Once the base for measurement is established, the quantity, type and quality of the commodities chosen are kept constant so that the price movement alone is measured. This continues to be the case until the index base is revised. Such revisions are needed because new products come onto the market, old products disappear and the pattern of household expenditure changes.

  • Data on the current prices of the commodities in the base are then obtained at three-monthly intervals.

  • Once collected, the current prices are compared with the prices in the base year and the percentage increase or decrease for each commodity is computed. Finally the index is obtained by multiplying the percentage changes for each commodity by their assigned weights and aggregating these changes for all commodities.

Indirect taxes.

Taxes not based on income, includes land tax; road user charges, licence fees, rates and GST.

Insurance (balance of payments).

Premiums less claims for insurance other than insurance of merchandise exports.

Interest etc.

Interest, bad debts, donations, royalties, insurance claims paid or received and patent fees.

Intermediate consumption (national accounts).

The value of non-durable goods and services used in production. Valuation is at purchasers' values.

International investment income (balance of payments).

Income derived from foreign financial investment, includes dividends and interest. The portion of undistributed profits attributable to direct investors is also included.

Invisible (trade).

Export and import of services such as transport, travel, and insurance.

Labour force.

Consists of persons aged 15 years and over who regularly work for one or more hours per week for financial gain, are unpaid working in a family business, or who are unemployed and seeking either full- or part-time work. The full-time labour force comprises persons working 30 hours or more per week, including unemployed persons seeking full-time work. The part-time labour force comprises persons working 1 to 29 hours per week, including unemployed persons seeking part-time work.

Main activity.

The main activity in which persons aged 15 years and over are involved, includes: home duties, looking after children, full-time student, retired, unemployed, paid job—business farm or profession, unpaid work in a family business, other e.g., hospital patient.

Main urban areas.

The criteria for defining a main urban area is a population of 30 000 or more.

Mean population.

The average number of people in an area during a given period, usually a year. This measure may be estimated in terms of simple or weighted averages of population, monthly or quarterly during the reference period.

Median.

The value which divides a distribution or array so that an equal number of items is on either side of it.

Merchandise exports.

Goods of domestic origin, and re-exports, sent from New Zealand to other countries.

Merchandise imports.

Goods landed in New Zealand, having been consigned from other countries, for immediate consumption or for storage in bonded warehouses.

Merchandise trade.

All goods which add to or subtract from the stock of material resources in a country, as a result of their movement in or out of it.

Minor urban areas.

Towns with a population of 1000 or more, not already classified as a main or secondary urban area.

Miscellaneous (balance of payments).

Exports and imports of goods, services, and income not classified elsewhere.

National disposable income (national accounts).

The total income of New Zealand residents from all sources available for final consumption or savings.

National income at market prices (national accounts).

This item is equivalent to gross national product after the deduction of allowances for consumption of fixed capital. It is a measure of income accruing from the supply of factors of production in New Zealand and overseas, plus net indirect taxes.

Net acquisition of foreign financial assets (national accounts).

The change in actual claims by New Zealanders, or non-residents. It relates to the purchase, less the sale, of financial claims, such as those described for the net incurrence of foreign liabilities. It also includes changes in New Zealand's holdings of special drawing rights in its reserve position at the International Monetary Fund, and in the assets of the New Zealand banking system.

Net apparent capital inflow. (balance of payments).

Total credit entries, less the total debit entries for items in the capital accounts. Indicates the amount of capital flows into New Zealand for a specified period. A negative figure indicates a net outflow of capital. Sometimes referred to as the balance on capital account.

Net incurrence of foreign liabilities (national accounts).

The change in actual indebtedness of New Zealanders to non- residents. It relates to the issue, less the redemption, of financial claims, such as currency and transferable deposits, bonds, corporate equities, loans, and long term trade credits. Changes in the holdings of paid-up capital of companies, and changes in inter-company indebtedness are also included.

Net profit.

The difference between total income and total expenditure, lass working proprietors/partners salaries and wages and before extraordinary items, gains/losses from sales of capital assets, exchange losses and revaluation of assets and tax.

New Zealand private direct investment overseas (balance of payments).

Changes in New Zealand's private direct investors' claims on and liabilities to their foreign subsidiaries and branches.

Official borrowing (balance of payments).

Government and Reserve Bank borrowing and repayments of foreign liabilities.

Operating surplus (national accounts).

This is a residual item, being gross output at producers' values, less the sum of intermediate consumption, compensation of employees, consumption of fixed capital, and indirect taxes net of subsidies. It is approximately equal to accounting profit before the deduction of direct taxes, dividends and bad debts, and before the deduction of interest paid, or the addition of interest received.

Other current transfers to/from the rest of the world (national accounts).

In theory, these items cover all current transfers other than property and entrepreneurial income. However, in practice, it has not been possible to identify all these transfers separately, and the figures are deficient in two respects. Firstly, not all current transfers can be identified. In particular, those associated with insurance transactions are omitted, since all insurance flows are recorded as either exports or imports of services. Secondly, it has proved difficult to distinguish between current and capital transfers to the rest of the world, and in the NZSNA all have been treated as current.

Other income.

Gross income from renting and leasing of land and buildings, direct government cash grants and subsidies, plus all other income (excluding proceeds from the sales of capital assets, exchange gains, revaluation of assets, and other extraordinary items).

Other long-term private capital movement (balance of payments).

Other foreign long term claims and liabilities of the private sector. Excludes claims and liabilities associated with direct investments.

Other operating expenditure.

All other operating expenses excluding salaries and drawings by working proprietors/partners and expenses of a capital nature.

Paid employees.

See persons engaged.

Persons engaged.

The total number of persons engaged, full time and part-time in activity and ancillary activity units at or on the nearest payday to 28 February' during the census year.

Population projection.

A conditional forecast of the future size and/or composition of a specified population. It calculates the effect on the current (base) population during successive periods if certain stated assumptions apply.

Property and entrepreneurial income to/from the rest of the world (national accounts).

The property income component of these items refers to the transfers of income accruing to the owners of financial assets, intangible assets such as patents, copyrights and concessions, and mineral rights. This income is mainly in the form of interest, dividends, rent, and royalties. The entrepreneurial income refers to the actual withdrawals of income from enterprises operating overseas, such as the branches of foreign companies.

Provisional (statistics).

Statistics which are derived using preliminary or incomplete data and released before final data become available.

Purchase of intangible assets from the rest of the world, net (national accounts).

The value of purchases by residents from non-residents of intangible assets, less sales of such assets by residents to non-residents. Examples of these types of assets are mineral rights, fishing quotas, patents, copyrights, and trademarks. In the NZSNA flows associated with this item are not distinguishable in the source data and consequently are included in exports/imports of goods and services.

Purchases and other operating expenses.

Total purchases and operating expenses, less interest, bad debts, donations, royalties and patent fees. Also excludes salaries and wages paid, and depreciation. In the Quarterly Economic Survey of Manufacturing this term excludes exchange losses and extraordinary terms, e.g., losses on sales of fixed assets, sales tax, beer and excise duty and fringe benefit tax.

Re-exports.

Goods, materials or articles exported in the same condition as they were imported, and imported goods which have undergone operations such as repair, repacking, or bottling which leave them essentially unchanged before exporting.

Re-imports.

Goods, materials or articles, imported in the same condition as they were exported from New Zealand, one third of re-imports are made up of live animals, principally racehorses and dogs.

Rent and leasing.

Total expenditure on or income from the rent and leasing of land and buildings and of plant, equipment and vehicles.

Reserves (balance of payments).

Foreign reserves assets of government. The changes in reserves due to transactions equates to the balance on current account plus the net apparent capital inflows. The ‘counterpart’ to valuation change shows the change in the value of total foreign reserve assets arising from exchange rate changes.

Revised (statistics).

In this volume, any data which is different from that printed in the last edition.

Rural areas.

Those areas not specifically designated as ‘urban’. They include towns of less than 1000 population plus administrative district territory where this is not included in an urban area. Rural areas include offshore islands.

Salaries and wages.

Gross earnings during the accounting year of all paid employees (full- time, part-time and casual) in any enterprise included in a census. Included are such items as overtime, sick and holiday pay, bonuses, payments under penal-rate schemes, severance pay, value of free supplies and sales commission paid to own employees, and excluded are drawings of working proprietors or partners.

Sales of goods and services.

Goods and materials manufactured from purchased materials; includes repairs and other services provided and sales of goods purchased for resale.

Sample survey.

A type of survey in which only a representative proportion of the given population provides detailed information. The sample statistics are summarised and are used to estimate statistics for the full population.

Savings (national accounts).

The residual item in the National Income and Outlay Account after all current receipts and disbursements have been accounted for.

Seasonal adjustments.

Adjustments made to statistical time series (usually monthly or quarterly) to provide a refined series in which the fluctuations due to seasonal variations have been removed.

Secondary urban areas.

Areas with populations which range between 10 000 and 29 999.

Sector of employment.

Refers to the industrial sector in which an employing organisation is engaged. This was introduced at the 1981 census and now includes: producer enterprises; financial intermediaries; general government; private non-profit organisations serving households; households and rest of world.

Statistical areas.

Broad geographic regions not conforming to any legal or administrative boundaries with no pre-determined population size. There are 13 statistical areas.

Statistical discrepancy (national accounts).

In these accounts the items making up gross domestic product and expenditure on gross domestic product are estimated independently. Including the statistical discrepancy on the expenditure side of the first Consolidated Account, Gross Domestic Product and Expenditure, is simply a convention. It does not imply that one side of this account is more accurate than the other. The case is the same with the Capital Finance Account and the External Transactions Account.

Statistical divisions.

Statistically defined areas introduced at the 1971 census to cover the seven main population centres of the country. The basic requirement is a minimum population of 75 000 within a relatively compact area, including rural residents.

Stocks.

This includes materials, such as components, stores, fuels containers, and other packaging materials as well as finished goods and work in progress, such as goods purchased for resale without further processing.

Subsidies.

Direct government cash grants and subsidies, other than for capital purposes.

Surplus of the nation on current transactions (national accounts).

The excess in the External Transactions Account of current receipts over current disbursements.

Total expenditure.

Purchases and operating expenses, excluding losses in extraordinary items, less working proprietors/partners salaries and wages.

Total income.

Sales and other income, excluding gains in extraordinary items, adjusted for difference between opening and closing stocks.

Transfers (balance of payments).

Special counter entries for one-sided transactions such as gifts of goods, services, and financial assets.

Transportation (balance of payments).

Exports and imports of services associated with the international carriage of goods and passengers. Includes freight, air fares, merchandise insurance, port services, and stevedoring.

Travel.

Goods and services sold to foreign travellers in New Zealand and vice versa.

Turnover.

Total sales and other income, less: interest; dividends; donations; grants; royalties; insurance claims received. Capital work done by employees is included.

Urban areas.

Comprises a three-part classification consisting of main, secondary and minor urban areas which constitute the ‘urban’ population of New Zealand. Main and secondary urban areas are centred on a major city or borough and include neighbouring boroughs, town districts and parts of counties which are regarded as suburban and belonging to that centre of population.

V.f.d. (value for duty).

This is the assessed value of merchandise imports on which duty is based. It is roughly equivalent to the current domestic value of goods in the exporting country.

Value added.

The amount added to goods and services by the contributions of capital and labour (i.e., the costs of bought-in materials and services has been deducted from the total value of output).

Vital statistics.

Statistics of events such as births, deaths, and marriages which influence the numbers of a population.

Work status.

Refers to the full-time labour force (persons working 30 hours or more per week plus unemployed and seeking full-time work); the part-time labour force (persons working 1 to 29 hours per week plus unemployed and seeking part-time work) and persons not working.

Appendix B. Department of Statistics publications

The following publications are available from offices of the Department of Statistics, which are located in Auckland, Wellington. Christ- church and Dunedin. Addresses are given at the front of this book.

General

Information releases—Hot Off the Press

Key Statistics (monthly)

New Zealand brochure 1990 (annual)

New Zealand Pocket Digest of Statistics (annual)

Statistics catalogue 1990 (annual)

Handbook on Survey Procedures 1986

Half-yearly report of the Government Statistician (Parl. paper G. 28 HY).

Annual report of the Government Statistician (Parl. paper G. 28).

New Zealand Business Patterns 1989 (annual)

New Zealand Enterprise Survey 1985–86 (annual)

Demography, vitals and migration

Demographic Trends (annual)

New Zealand Sub-national Population Projections 1986–2006

Profiles of New Zealanders. Number 1, Population Change and Growth: 1986 New Zealand Census of Population and Dwellings

Elderly Population of New Zealand. 1990

Social and justice statistics

Justice Statistics:

Part A, 1988 (annual)

Part B-Volume 1 Trial Courts and Appeals, 1988

Part B-Volume 2 Prisoners, Police, Transport and Justice Department, 1988

Part B-Volume 3 District Courts Summary Proceedings. 1987

Part B-Volume 4 Children and Young Persons, 1987

Miscellaneous series Bulletin: A Discussion on New Zealand's Changing Population Structure 1936–2006

Profiles of New Zealanders. Number 3, Families and Households: 1986 New Zealand Census of Population and Dwellings

New Zealand Social Trends: Education, 1990

The Human Face of New Zealand: A Context for Population Policy into the Twenty-first Century, 1990

Employment and income

New Zealand Household Expenditure and Income Survey, 1988–89 (annual)

The New Zealand Labour Force (quarterly)

Profiles of New Zealanders. Number 2. The Labour Force: 1986 New Zealand Census of Population and Dwellings

The economy

Local Authority Statistics, 1987–88 (annual)

New Zealand System of National Accounts 1982–83 to 1988–89

New Zealand System of National Accounts Constant Price Accounts Sources and Methods. 1988

Inter-industry Study of the New Zealand Economy 1981–82

New Zealand Provisional Input-Output Tables 1986–87

Household Income and Outlay Accounts for New Zealand 1982–83 to 1987–88

Economy Wide Census:

Finance, Insurance and Business Services, 1987

Agricultural Services, Forestry and Fishing (due 1990–91)

Mining and Quarrying (due 1990–91)

Manufacturing (due 1990–91)

Building, Construction and Transport (due 1990–91)

Distribution (due 1990–91)

Educational, Social and Recreational Services (due 1990–91)

Agriculture, forestry and fishing

Agricultural Statistics. 1988 (annual)

Economy Wide Census: Agricultural Services, Forestry and Fishing (due 1990–91)

Building and construction

Building Statistics, 1987–88 (annual)

Economy Wide Census: Building, Construction and Transport (due 1990–91)

Overseas trade

Overseas Trade, 1989 (annual)

Five-yearly census reports

Census of Population and Dwellings, 1986:

Series A Report 2 Local Authority Population and Dwelling Statistics

Series B Report 3 Rural Population Statistics

Series B Reports 1–23 Provisional Regional Summary Statistics

Series B Report 24 Regional Summary

Series B Report 25 Usually Resident Population

Series B Report 26 Hospital Board Districts and Health Districts

Series B Report 27 1987 Electorate Profiles

Series C Report 1 Provisional National Summary Statistics

Series C Report 2 National Summary

Series C Report 3 Ages and Marital Status

Series C Report 4 Labour Force—Pan 1

Series C Report 5 Labour Force—Part 2

Series C Report 6 Birthplaces and Ethnic-Origin

Series C Report 7 Internal Migration

Series C Report 8 Incomes and Social Welfare Payments

Series C Report 9 New Zealand Maori Population and Dwellings

Series C Report 10 Pacific Island Polynesian Population and Dwellings

Series C Report 11 Dwellings

Series C Report 12 Households

Series C Report 13 Families

Series C Report 14 Religious Professions

Series C Report 15 Education and Training

Series C Report 16 Total Population Statistics

Series C Report 17 Overseas Visitor Statistics

Series D Report 1 Questionnaire Content and Submissions

Series D Report 2 Range and Availability of Statistics

Series D Report 3 General Information

Series E Report 1 Profiles of New Zealanders. Population Change and Growth

Series E Report 2 Profiles of New Zealanders. The Labour Force

Series E Report 3 Profiles of New Zealanders. Families and Households

Series E Report 4 Profiles of New Zealanders. Ethnic Groups (due 1990–91)

Series E Report 5 Profiles of New Zealanders. Social Structure (due 1990–91)

Reviews of statistics

Report of the Review Committee on Beverages Containing Alcohol, 1988

Report of the Review Committee on Ethnic Statistics, 1988

Report of the Cancer Registration Working Group, 1988

Report of the Review Committee on Labour and Employment Statistics, 1989

Report of the Working Group: Primary Health Care Statistics, 1989

Report of the Health Status Working Group:

National Health Status Measures, 1989

Statistic classifications and standards

New Zealand Standard Trade Classification

New Zealand Standard Classification of Occupations (NZSCO)

New Zealand Standard Country Codes (NZSCC)

New Zealand Standard Institutional Sector Classification Manual (NZISC)

New Zealand Standard Industrial Classification

New Zealand Standard Classification by Broad Economic Categories

New Zealand Harmonised System Classification (NZHSC)

New Zealand Standard Enterprise Industry Classification (NZEIC)

New Zealand Definition of Statistical Units for Industries and Financial Statistics

The Department of Statistics keeps many of its published series on microfiche. You can get a list of the information stored in this way from any office of the department.

Index

Names of people, places and geographic features are generally not indexed separately, but can be found on pages listed under the relevant headings, e.g., Cities; Mountains; Population. Exceptions are names of countries, and inhabited islands. Individuals, are indexed only where there are articles solely about them or they come in for particular attention in the text, otherwise refer to issues or subjects only—e.g., ‘Science, history of, will soon find you Sir James Hector.

Acts of Parliament are not indexed separately, and statutory bodies are indexed separately only where there is a major reference.

A large number of organisations and bodies indexed by name have the prefixes ‘National’ or ‘New Zealand’. If there is no reference under a more generally known name, they may be found under these prefixes (e.g., National Film Library; New Zealand Dairy Board).

Individual commodities or products are indexed separately only when they are unusually significant, e.g., Wool. Where there is no individual entry, look on pages listed under the appropriate general index entry:

  1. General commodity or product headings, e.g., Crops, Dairy products, Minerals. Meat; or

  2. General economic and business activity headings, e.g., Retail trade, Manufacturing, Prices.

Similarly, specific services and industries should be looked for in listings under general headings such as Business censuses or National accounts.

A

Abortion, 242–43
ACCESS training scheme, 372
Accident Compensation Corporation, 249–51
Accidents, 249–54
cases of, treated in public hospitals, 245–46
fatal, 253–54
at home, 246
motor vehicle, 246, 251–52
prevention of, see Safety
water, 252–53
Accommodation benefit, 205, 207
Accommodation, tourist, 355
Acts of Parliament, 59–60
Adoption, 218
Adult education, see Continuing education
Advertising, 344–45
Aerial topdressing, 438, 541
Africa, relations with, 105–06
Age benefits, 206, 210–11
Age distribution,
by ethnic group, 155, 182
by sex, 143
of population, 141, 148, 154–55
of prisoners, 306–07
of new mothers, 138
at death, 142
Agricultural land, 436–37
Agricultural costs, price index, 439–40
Agricultural Production Account, 438–39
Agricultural production (see also Dairy products, Meat and meat products, Wool), crops, 459–64
historical, 439, 441
indicators of, 438–39
marketing, of products, 446–47, 450–51, 463, 464, 543
Agriculture and Fisheries, Ministry of, 76, 402–03, 440–41, 454
Agriculture, aspects of, 435
capital expenditure, 438
cattle, 435, 439, 444
costs of, 435, 439–40
crops, 459–64
current situation and trends, 435–41
dairy farming, 444, 453, 455–57
deer farming, 435, 443–44
exports, 439
farm employees, 437
goat farming, 435, 436, 439, 442, 444
government assistance, 441–12
historical development of, 23–24, 33–34, 37
historical statistics, 435, 441
irrigation, 425–26
machinery, 435, 438
numbers and types of farms, 435, 436–37
pig farming, 435, 457–58
Production Price Index, 438–40
quarantine, 440–41
research on, 440–41
sheep, and sheep (arming, 435, 436, 439, 441–43, 444, 451
Aid, overseas, 106–07
Air force, 124
Air freight, 540–41
Air mail, 539, 541, 555
Air pollution, 10, 228–29
Air Services Licensing Authority, 537
Air transport, see Aviation
Airways Corporation of New Zealand Ltd, 537–38
Alcohol (see also Beer, Wine and winemaking), consumption, 232–33
excise on, 661–62
and health, 232–33
legal aspects of consumption, 566–69
Alcoholic Liquor Advisory Council, 232–33
Alexander Turnbull Library, 335–36
Aluminium industry, 503
Amenities, of dwellings, 169, 483
Animals and plants, see Vegetation and wildlife
Animals, farm, see Livestock
Anniversary day holidays, provincial, 391
Antarctica, 1, 114, 118
Antiquities, protection of, 330
ANZUS (Australia, New Zealand and United States) Treaty, 104, 115
Apiaries, 458–59
Appeals against conviction, 302
Apples and pears, 463
Appliances, in dwellings, 169, 483
Apprentices, 372–73
Aquaculture, 479
Arbitration Commission, 383, 384
Arbitration Court, see Labour Court
Archaeological sites, protection of, 330
Area health boards, 222, 223
Area, total land, 1, 426
Armed forces, 114–25
assistance to community, 118–19
decorations of, 122–23
exercises overseas, 116, 118
historical, 112–13, 114, 117–18
New Zealand Army, 121
Royal New Zealand Air Force, 124
Royal New Zealand Navy, 119–20
strength of, 119–21, 124
Arrivals, in country (see also Immigration), 153
Art galleries and museums, 327–28
Arts and cultural activities, 321–28
awards in, 322–23
famous New Zealanders in, 322, 324
support of, 321–23
Arts Council (Queen Elizabeth II), 321–23
ASEAN (Association of South-east Asian Nations), 102–04, 596–97
Asian countries, relations with, 102, 104, 596–97
Asian Development Bank, 110–11
Assistance to developing countries, 106–07
Assisted immigration, 189
Audit Office, 82
Australia New Zealand and United States Treaty (ANZUS), 104, 115
Australia New Zealand Closer Economic Relations Trade Agreement (CER), 102, 594–95
Australia, relations with, 39, 102, 103, 594–96
Autocheck, 549
Average Gross Income Index, 378–80
Average retail prices, 619–20
Average Tax Rates Index, 378–80
Aviation, civil, 536–41
aerial work, 541
air mail, 539, 541, 555
airlines, 538, 539–40
airports, 537–38
distances to overseas destinations, 540
domestic, 538–39
early, 537, 538, 539, 541
freight and passenger volumes, 538, 539, 540, 541
historical statistics, 528
international, 537, 539–41
licensing and control of, 536–37
services to, 537–38

B

Balance of payments, 688–92
definition and principles of, 688–89
summaries, 688–89
Bank of New Zealand, 629
Banknotes, 634–37
Bankruptcies, 573–74, 575
Banks and banking, 626–35
finance companies, 632
hire-purchase, 586–87
historical, 627, 629, 630
merchant banks, 632
registered banks, 628–31
Reserve Bank of New Zealand, 626–28
savings institutions, 630, 631–32
statistics, 632–34
Beef, 445–50
Beer, consumption per capita, 232–33
Bees and beekeeping, 458–59
Benefits and pensions (see also Superannuation, Family assistance), 204–11
accident compensation, 249–51
accommodation, 205, 207
age, 206, 210–11
current rates, 204–05
death, 208
dental, 227
disability allowance, 207
domestic purposes, 205, 208
emergency, 205
expenditure on, 203–04, 207, 210, 211, 213, 227–28
family, 205
Guaranteed Retirement Income, 206, 210–11
handicapped child allowance, 207
health, 226–28
historical summary, 204–05, 210
hospital, 226–27
invalids, 205
maternity, 227
miners, 205
orphans, 206
pharmaceutical, 226
physiotherapy, 227
population receiving, 209, 210
reciprocity agreements, 210–11
sickness, 205
training, 205
unemployment, 205
war pensions and allowances, 208–09
widows, 205, 207
Best, Elsdon, 23, 197
Betting, 350–51
Bilateral assistance, 106–07
Bills, passing of, 59–60
Biography, Dictionary of New Zealand, 333
Birthplaces, of population, 147, 182–83
Births and birth rates (see also Childbirth), 137–41, 159
ex-nuptial, 140–41
Maori, 192
stillbirths, 239
Bookmaking, 350
Books and libraries, 333–37
Broadcasting, 338–42
Commission, 338
independent, 340
policy, 338–40
public broadcasting fee, 338
radio, 339, 340, 341–42
Standards Authority, 338–40
television, 340–41
Buck, Peter, 41, 265
Building and construction (see also Housing), 523
activity, 523–26
historical statistics, 519
permits issued, 523–25
of rental houses, 518
Building societies, 632–33
Buildings,
construction standards, 514–15, 523
historic, 328–30
Bursaries,
school boarding 75
for tertiary study, 270, 282, 283–84
Buses, 545, 547–48, 550
school, 275
Business Directory, 675–78
Business statistics, 675–78
Butter, 439, 453, 455

C

Cabinet, 56, 64, 65–66
Cadet forces, 119
Campbell Island, 1
Canada, relations with, 104, 598
Cancer, deaths from, 237–39
Capital Expenditure Price Index, 624–25
Capital Finance Accounts, 681
Capital gains, tax on, 659
Capital punishment, 297
Career Development and Transition Education Service, 264, 373
Cargo,
air, 540–41
handled at ports, 531–34
Carpets, see Textile industry
Cars, 166, 547–49
Casein, 453, 455
Cattle, 435, 439, 444
Caucuses, political party, 56, 57
Cawthron Institute, 396, 403
Censorship, 326
films and video recordings, 327
indecent publications, 327
wartime, 325
Census of Population and Dwellings, country of birth, 147
ethnic origins, 145, 146, 158, 181–82
history of, 128, 130–31
households and dwellings, 163–66
employment, 358–68
incomes, 149, 376–77
labour force, 358–68
Maori population, 145, 156–58
Pacific Island Polynesian population, 146, 158–59
questions asked, 130–31
religious professions, 180–81
social welfare payments, 209, 210
total population, 127
travel to work, 392
unemployment, 150, 371–72
Centennial, of New Zealand, 42, 43
Central government finance, 642–53
expenditure, 642–45, 646, 648–50, 653
funding process, 642–43
historical summary, 645
public accounts, 645, 646, 648–50, 652–53
public debt, 639, 651, 664–68, 673
recent reform, 643–45
revenue, see Taxation
securities on issue, 639, 665–67
CER (Australia New Zealand Closer Economic Relations Trade Agreement), 102, 594–95
Cereals, 460–61
Chatham Islands, 1, 21, 88
Cheese, 439
Chemicals, poisonous, 258
Cheviot Hills Estate, 416–17
Chew Chong, 597–98
Childbirth, 136–41
births and birth rate, 137–41
infant mortality, 239–41
maternal deaths, 241
maternity benefits, 227
parental leave, 391
Childcare and pre-school education (see also Kohanga reo), 218, 266, 269
Children, adoption of, 218
in care of Department of Social Welfare, 214, 216, 218
Commissioner for, 214
custody and guardianship of, 216, 218
day care for, 218, 266, 269
deaths of, 239–41, 254
health of, 231, 241
and justice system, 214–18, 293–94
Children and Young Persons Courts, see Youth Courts
Children's health camps, 231
Children's homes, 217
China, relations and trade with, 104, 597
Chiropractors, 225
Chronology of events, 49–50
Churches and religious organisations, number of adherents of, 180–81
Cinema, 325, 327, 330, 331, 332
Cities and city councils (see also Urban areas), 87–88
population of, 133–35
Citizenship, 183–84, 185
Civic Theatre, 331
Civil aviation, see Aviation, civil
Civil defence, 254–55
Civil jurisdiction of courts, 295–96
Clerk of the House of Representatives, 56
Climate, 7–16
Coal, 483, 484, 486, 496–97
Coastal shipping, 531, 532
Coat of arms, (v) 95
Coates, J. Gordon, 42
Coins and coinage, 635, 636–37
Colleges,
secondary, 270–71, 272, 273–74
of education, 266, 275–77
Colonisation, 25–27, 28–31, 35
Commerce Commission, 562, 563, 570–71
Commerce, Ministry of, 76, 259, 404–05, 482, 510–11
Commissioner for the Environment, Parliamentary, 424
Commissions of inquiry, 70, 72
Commonwealth, relations with, 111
Community care ordered by courts, 303
Community colleges, 288
Community government, 88–89
Community Employment Development Unit, 375–76
Community law centres, 297
Community Learning Aotearoa New Zealand, 287
Community service, imposed by courts, 303
Community welfare services,
assistance to individuals, 212–13
funding of, 211
Maori, 196–99
programmes, 213–14, 218–19
Companies, 569–73, 574–75
historical statistics, 575
incomes of, 663
insolvencies, 574–75
mergers of, 570–71
practices of, 569–71
registration, 569, 570, 575
taxation of, 658
Compensation, accident, 249–51
Conservation, Department of, 76, 428
Conservation of cultural property, 328, 330
Conservation of natural resources (see also Environment),
forests, 433
legislative reform, 428
of water and soil, 424–25, 427
Consolidated Account, 645, 648–50, 663
Consolidated Accounts of the Nation, 680–81
Constitution, 51–56
history of, 28–29, 30–31, 45, 51
recent reform, 53, 56
Construction, see Building and construction
Consumer protection, 563–64, 566
Consumers' Institute, 563, 566
Consumers Price Index, 613–19
all groups, 20 urban areas combined, 618
geographical variation, 618
historical data, 614
international comparison, 619
methodology, 615
percentage movements, 616, 617
revision of, 615, 617
Continuing education, 276, 278, 287–88
Controller and Auditor-General, 82
Convictions,
appeals against, 302
numbers of, 297, 298–302
sentencing on, 299, 300, 302, 303–04
Cook Islands, 101 108
Cook, James, 25, 26, 27, 35, 394
Cook Strait rail/ferry service, 531, 545
Copyright, 325
Corporations, government, see State-owned enterprises
Corrective training, 304–07
Correspondence School, 273, 28
Cost of living, (see also Consumers Price Index, Real disposable income indexes, Retail prices), 613, 615, 616, 618
Council for Maori and South Pacific Arts, 322, 323
Country of birth, 147, 182–83
Country quota, 66
Court of Appeal, 291, 293, 294, 302
Courts (see also Tribunals), 290–94
of Appeal, 291, 293, 294, 302
District, 293, 296, 297–98, 299, 300, 302
Family, 293–94
High, 291–93, 295–96, 300, 302
Labour, 293, 303, 384
Maori Land and Appellate, 294, 414–15
trial, 299–300, 302
wardens, 290
Youth, 214–16, 294, 297
CPO (Consumers Price Index), 613–19
Credit, 586–87
Credit cards, 587
Crime, 297–302
compensation for, 302
criminal jurisdiction, 298–300, 302
levels of, 301
reported offences, 297–98, 301
Crops, 459–64
fruit, 462–64
grains, 459–61
horticulture, 459, 462–64
seeds, 462
Crown Bank Account, 645
Crown land, 415–17
disposal of, 416, 417
Crown Law Office, 76
Cultural activities, 321–28
Currency, 634–37
Customs Department, 76, 590–91
Customs tariff and revenue, 590–91
Cyclones, 8

D

Dairy farming and products, 444, 453, 455–57
butter, 439, 453, 455
casein, 453, 455
cheese, 439
exports, 439, 456–57
marketing of, 455–57
milk and milk products, 453, 455
prices, 457
production index, 438
Data communications, 559–60
Day-care, 218, 266, 269
Daylight saving, 21
Death benefits, 208
Deaths and death rates, 141–43, 159
accidental, 253–54
from cancer, 237–39
of children, 254
infant, 239–41
maternal, 241
major causes, 236–40
Maori, 156–57
stillbirths, 239
Debt,
private, see Credit, Mortgages
public, 639, 651, 664–68, 673
Deer farming, 435, 443–44
Defence, 112–13, 114
agreements, 115–16
expenditure, 118, 119
military service, 117–18
Ministry of, 76, 114–15
reorganisation of, 114–15
Democratic Party, 73, 74
Demography, see Population
Dental benefits, 227
Dental health, 227, 233–34
Dentists, 224
Department of Conservation, 76, 428
Department of Health, 77, 220–22
Department of Internal Affairs, 78, 375
Department of Justice, 78, 409
Department of Labour, 78, 258–59, 369, 372, 374–75
Department of Prime Minister and Cabinet, 79
Department of Scientific and Industrial Research, 79, 397–99, 401–02
Department of Social Welfare, 79, 203–04
Department of Statistics, 80
publications, 693
Department of Survey and Land Information, 80, 407, 409, 416
Departments, government, (see also State sector),
chief executives of, 75–76
expenditure by, 646, 648–50
functions of, 76–81
Departures, from country, 153
Deportation, 190–91
Depression, economic, 35–36, 40
Design, industrial, 405
Developing countries, relations with, 106–07, 600
Dictionary of New Zealand Biography, 333
Dietitians, 225
Diplomatic representatives overseas, 99, 103
Disability allowances, 211
Disabled persons, 308
aids for, 227
assistance and services for, 212–13, 235
benefits for, see Benefits and pensions
Disarmament, 107
Disaster relief, 119, 254–55
Diseases,
epidemics, 227–28, 235, 238
treated, 245, 247, 249
Displaced persons, see Refugees
Dissolution of marriage, 175–78
Distribution of population, 128–29, 132–36
District Courts, 293
civil cases, 296
criminal cases, 300
male/female appearances, 302
summary convictions, 298–99
traffic offences, 299
District planning, 422–23
Districts and district councils, 88, 90–91
population of, 135–36
Divorce, 175–78
Doctors, 223–24
Domestic purposes benefits, 205, 208
Domestic trade and services, 583–87
Domestic travel, 356
Dominion status, 39, 107
Drinking, legal aspects of, 552
Drivers' licences, 551–52
Driving offences, 299, 553–54
Droughts, 8, 12, 14
Drownings, 252–53
Drugs,
legal, control of, 226, 229
offences involving, 300, 310–11
DSIR (Department of Scientific and Industrial Research), 397–99, 401–02
Dwellings (see also Households, Housing), 163–66
historical statistics of, 519
tenure of, 164–66
types of 163–64, 165

E

Earnings, 377–78
Earthquake and War Damage Commission, 255–56
Earthquakes, 5–6
EC (European Community), 404–05, 598–99
Economic history,
pre-1840, 26–27
1840–1919, 33–36, 37–39
1919 to present day, 40–41, 42–47
Economic planning, 678
Economy Wide Census, 675
Education (see also Examinations, Schools, Students),
administration of, 261–64
continuing, 276, 278, 287–88
curriculum, 270
historical statistics, 268
international links, 267–68
of Maori, 264, 265
Ministry of, 76–77, 262, 266–68
polytechnic, 266, 284–86
pie-school, 261–62, 266, 269
public expenditure on, 266–67
reform of, 261–62
Review Office, 77, 263–64
rural, 271
special, 262, 266, 275
student allowances, 282–83
teacher numbers, 274
teaching resources, 277–78
teacher training, 275–77
technical, 284–87
transition, 286–87
university, 266, 278–84
women and, 179
Educational research, New Zealand Council for, 264, 399
Education and Training Support Agency, 264, 372–73
EEZ (Exclusive Economic Zone), 118, 427, 475–76
Eggs, 458
Elections, 67–70
licensing poll, 70
local body, 93–94
parliamentary, 59, 62, 66, 67–70
referenda, 67
Electorates, parliamentary,
listed, 62–63
maps of, 68–69
review of, 69–70
Electricity, 483, 486–91
consumption of,
generation of, 488–89
reticulation, 490, 491
supply authorities, 491
Electricity Corporation of New Zealand Ltd, 488–89
Electronics industry, 503
Embassies, 99, 103
Emergency benefits, 205
Emigration, 143–45, 153
Employer organisations, 386
Employment (see also Labour force, Occupations, Unemployment), 358
assistance, 372, 374–76
equity, 389–90
farm, 437
and human rights see Human Rights Commission
in manufacturing, 503, 506–09
recorded by Business Directory, 675–78
rights disputes, 392–93
seasonal, 368
status, 366–67, 376
surveys of, 358
termination of, 392
and training programmes, 372–73
of women, 179, 363–64
Energy, 482
consumption, 482–85
demand and supply, 484–85
in the home, 483
policy, 482
resources, 485–86, 494–95
Energy, forms of,
coal, 483, 484, 486, 496–97
electricity, 483, 486–91
gas, 486, 493, 494–95, 496
geothermal, 484, 486, 488, 489
oil, 484, 485–86, 491–94
renewable, 486
Engineering industry, 503
Enterprise survey, annual, 675
Environment (see also Conservation of natural resources, Planning), 420
global issues, 427
and mineral exploitation, 424
Ministry for the, 77, 427, 428
Parliamentary Commissioner for, 424
Resource management law reform, 428, 482
Environmental health, 228–29
Equal employment opportunities, 75
Equal Opportunities Tribunal, 294
Equal pay, 377, 389
Erosion, control of, 426
Estate duty, 660
Ethnicity, 145, 146, 156–59, 181–82
Maori, see Maori population
Pacific Island Polynesians, see Pacific Island Polynesians
Race relations and racial discrimination, (see also Treaty of Waitangi), 178
European Community (EC), 104–05, 598–99
European countries, relations with, 104–05, 598–99
Europeans, exploration by, 23, 25, 35, 36–37, 394–95
settlement by, 25–27, 28–31, 35, 126, 129
Events, chronology of, 49–50
Examinations, 270–71, 286, 287
Exchange rates, 639–41
Excise duties, 591, 660–62
Exclusive Economic Zone (EEZ), 118, 427, 475–76
Executive Council, Cabinet and, 63–66
Exhibitions, 44
Ex-nuptial births, 140–41
Exotic forests, 19, 465–69, 472
Exploration, 23, 25, 35, 36–37, 394–95
Export Guarantee Office, 590
Export Prices Index, 609–10
Export Volume Index, 612
Exports, 603
agricultural, see Marketing, of agricultural products
destinations, by country, 601–02
historical summary, 594, 599, 604, 608
indexes of, by commodity, 609–10, 612
main, value and volume of, by commodity, 603
value of, by Harmonised System, 606–08
value of, by SITC, 605–06
External migration, 143–45, 153
emigration, 144
immigration, see Immigration
External Relations and Trade, Ministry of, 77, 99, 103, 106–07
External trade (see also Exports, Imports, Shipping), 589
agreements, 600
balance of merchandise trade, 593
commodities, trade in, 603–08
listed by country and region, 601–02
price and volume indexes, 609–12
statistics of, types and sources, 593
terms of, index, 610–11
trading partners, described, 593–600
External transactions account, 681

F

Factories (see also Manufacturing industry, Occupational safety and health), 258–59
Fair trading legislation, 563
Families (see also Households), 137–41
Family assistance, 205–06, 656–57
Family Courts, 177–78, 214
Family health, 230
Family law, 175–78, 214, 216, 218
Family planning, 230
Family support, 206, 656–57
Farm employment, 433
Farming, see Agriculture, Livestock
Farming, advisory services, 454
Farming Inputs Price Index, 439–40
Farms, numbers and types, 435, 436–37
Fauna, see Vegetation and wildlife
Ferries, 531, 545
Fertiliser (see also Topdressing), 438
Fertility rates, 137–39, 141
Fiji, relations with, 101
Films and video recordings, 323, 331, 332
censorship of, 326–27
National Film Library, 278
New Zealand Film Archive, 333
New Zealand Film Commission, 325
Finance Ministers, notable, 654–55
Financial institutions, 626–35
Fines, 303
Fire and general insurance, 575–78, 582
Fire fighting and prevention, 256–57, 433
Fish,
catch 477–79
exports, 479–80
species, 475–77
Fisheries resources, 475–77
protection of, 118
Fishing,
by foreign vessels, 478, 479, 481
historical statistics, 479
Industry Board, 480–81
recreational, 349, 479
research, 403
Fishing vessels, 478, 479
Five Power Defence Arrangements, 115–16
Flag, New Zealand, 94–95
Flax industry, 460
Floods, 11–14
Flora, see Vegetation and wildlife
Fluoridation, 234
Flying boats, 537
Food,
expenditure on, 167–68
consumption, 230
prices, 618, 619–20
standards, 229
subsidies, 619
Food and Agriculture Organisation, United Nations (FAO), 109
Footwear industry, 505–06
Foreign aid, 106–07
Foreign exchange market, 639–41
Foreign policy (see also Official Development Assistance (ODA)), 99
Foreign trade, see External trade
Forest parks, 431
Forest products, see Timber and forest products
Forest Research Institute, 403
Forestry and logging, 465–74
employment in, 468
private, 465–66, 468
products, see Timber and forest products
research into, 403
state, 465, 468, 472
training in, 469
Forestry Corporation Ltd, New Zealand, 467–68
Forestry, Ministry of, 77, 403, 465
Forests, 18–19, 465–68
conservation and protection, 428–33, 465, 467
exotic, 19, 465–69, 472
native, 18–19, 428–33, 467
ownership of, 468
planting of, 465–69
Fraser, Peter, 45
Freight, see Cargo
Friendly societies, 203
Fringe benefit tax, 658
Fruit, 462–64
Fuels
coal, 483, 484, 486, 496–97
gas, 486, 493, 494–95, 496
oil, 484, 485–86, 491–94

G

Galleries, art, 327–28
Gambling, 350–51
Gas, 486, 493, 494–95, 496
GELS (Group Employment Liaison Service), 375
General Agreement on Tariffs and Trade (GATT), 109–10
General Assembly see Parliament
General elections, 59, 62, 66, 67–70
Generalised System of Preference, 600
Geographical features, 1–2
glaciers, 1
lakes, 2
mountains, 1
rivers, 2
Geology (sec also Minerals and mineral products), 2–6
Geothermal power, 484, 486, 488, 489
Geriatric hospitals, 244
Gift duty, 660
Glaciers, 1
Glossary of statistical terms, 694
Goal farming, 435, 436, 439, 442, 444
Gold, 33–34, 126, 129, 498, 499, 500
Goods and services tax (GST), 591, 658–59
Government the, 65–66
Government departments (see also State Sector),
chief executives of, 75–76
expenditure by, 646, 648–50
functions of, 76–81
Government finance, see Central government finance
Government Life Insurance, 581, 582
Government stock and securities, 639, 665–67
Government Superannuation Fund, 77, 578–79
Governor(s)-General, 51–52, 53
historical list of, 52
Graduates, university, 282
Grains, 459–61
Grape growing and wine production, 462–63
Gravel, 498–500
Greenhouse Effect, 9, 15, 16
Greenstone, 501
Grey, George, 30, 31–32, 33, 194
Greyhound racing, 350
Gross domestic product, 679, 682–83, 685–87
in constant prices 685–87
historical, 679–80
index of, 686–87
by production group, 682–83
Gross fixed capital formation, 683–84
Group Employment Liaison Service (GELS), 375
GST, 591
Guaranteed Retirement Income, 206, 210–11
Guardianship, 175–76, 216

H

Hail, 10
Handicapped child allowance, 207
Handicapped persons, see Disabled persons
Harbours, see Ports
Harmonised System, 509, 606–08
Health, 220
and causes of death, 236–39
Department of, 77, 220–22, 258
environmental, 228–29
expenditure, 222–23
family, 230–31
and hospitals, see Hospitals
insurance, 220
mental, 230
occupational, 258–59
practitioners, 223–26
research, 235–36
restructuring, 220–21
services structure, 220–21
statistics, 236
voluntary sector, 220, 230
women's, 179–80
Health benefits, 226–28
Health boards, area, 222, 223
Health camps, 231
Health education, 231–32
Health inspection, 228–29
Hector, James, 395, 396
High Court, 291–93, 295–96, 300, 302
Higher School Certificate, 270
Highways, 547
Hillary Commission for Recreation and Sport, 346
Hire-purchase, 586–87
Historical writing in New Zealand, 43
Historic places, 328–30
Historic reserves, 431–32
History of New Zealand (see also Maori history), 23
chronology of events, 49–50
constitutional, 28–29, 30–31, 45, 51
economic, see Economic history
Hocken Library, 337
Holidays, 390–91
Home appliances, 169, 483
Home ownership, 151, 164–66, 519–22
Homestart, 520
Homicide, 297, 300
Honey, 459
Honours, 57
Horse racing, 349–51
Horses, 435, 438
Horticulture (see also Crops), 459, 462–64
Hospital benefits, 226–27
Hospitals, (see also Psychiatric hospitals), 243
administration, 220, 222–23, 243
beds available, 243–44
geriatric, 244
patients treated, 244–45
private, 244
public, 244–46
staff, 223
Hotels and restaurants, 567, 568, 584
Hours of work, 365–66, 380, 390, 391
House of Representatives, see Parliament
Household Expenditure and Income Survey, 166–69
Household Labour Force Survey, 358–59, 369, 370
Households, 163–69
amenities of, 169, 483
composition of, 164, 165–00
expenditure by, 166 69
incomes of, 168
transport, 166
Housing (see also Buildings, Dwellings),
community programmes, 521–22
construction, 514–15, 519, 523–26
costs of, 513, 517
of elderly, 522
historical statistics, 519
home ownership, 151, 164–66, 519–22
Homestart, 520
loans for, 519–22
Maori, 165–66, 519–20
market, 513, 517
Pacific Island Polynesians, 165–66
rental (see also Rental housing), 517–18
state, 517–18, 519
Housing Corporation, 77–78, 518–22
Human rights, 178
Bill of Rights, 53, 56
elimination of discrimination, 75
Equal Opportunities Tribunal, 294
official information, 82–83
promotion of equal opportunity, 75, 178–80
Human Rights Commission, 178
Hunting, 349
Hydro-electric power, 484, 486–89, 491

I

IBRD (World Bank), 110
IMF (International Monetary Fund), 109
Immigration, 184–91
current provisions, 187, 190–91
and demography, 126–28, 143–45, 153
historical, 29–30, 34, 40–41, 186, 187
recent policy, 184–85, 186
Immunisation, 231
Import licensing, 591–93
Import Prices Index, 609
Imports, 604
by country, 601–02
indexes of, by commodity, 609, 612
value and volume of principal items, 604
value of, by Harmonised System, 606–08
value by SITC, 605–06
Imprisonment, see Prisons and prisoners
Income support, 204–11
Income tax,
companies, 658
index of, 378–80
personal, 653–56
revenue from, 663–64
Incomes (see also Real Disposable Income Indexes, Wages), 376–77, 378–81
of companies, 663
of households, 168
of individuals, 149
Indecent Publications Tribunal, 327
Independent Broadcasting Association, 340
Index of Gross Domestic Product, 686–87
Indexes, explained, 694
Indexes, listed,
Average Gross Income Index, 378–80
Average Tax Rates Index, 378–80
Capital Expenditure Price Index, 624–25
Consumers Price Index, 613–19
Export Prices Index, 609–10
Export Volume index, 612
Farming Inputs Price Index, 439–40
Import Prices Index, 609
Import Volume Index, 612
Index of Gross Domestic Product, 686–87
Prevailing Weekly Wage Rates Index, 381–82
Producers Price Index, 621–22
Real disposable income indexes, 378–81
Terms of Trade Index, 610–11
Urban House Property Price Index, 517
Volume of agricultural production, 438–39
Industrial accidents, 254
Industrial design, 405
Industrial relations see Labour relations
Industrial safety, see Occupational safety and health
Industrial structure of labour force, 364–65, 367
Industry, see Manufacturing industry
Industry training boards, 373
Industrialisation, 511
Infant mortality, 239–41
Inflation, see Consumers Price Index
Influenza epidemic, 228, 235
Inland Revenue Department, (see also Taxes and taxation), 78
Insolvency, 573–75
Insurance, (see also Superannuation), 575–78, 580–83
accident, 249–51
earthquake and war damage, 255–56
fire and general, 582
Government Life, 581–82
life, 581
medical, 220, 581
services to, 583
State, 583
Interest rates, see Monetary policy, Mortgages
Inter-industry studies, 682
Internal Affairs, Department of, 78, 375
Internal migration, 132, 134, 152
International Bank for Reconstruction and Development (IBRD), 110
International comparisons, 170
abortion rates, 243
consumer prices, 619
infant mortality, 239
life expectancy, 143
motor vehicle accidents, 252
standards of living, 170–71
International Development Association (IDA), 109
International Finance Corporation (IFC), 109
International Monetary Fund (IMF), 109
International organisations, participation in, 107–11
International relations, 99
International Whaling Commission (IWC), 111
International Wool Secretariat, 451
Invalids benefit, 205
Iron and ironsands (see also Steel making), 497, 498
Irrigation, 425–26
Iwi Transition Agency, 78, 195–99, 415, 519–20

J

Japan, relations with, 597, 598, 599
Job Opporunities Scheme, 374
Judges and judiciary, 290, 293, 294
Jury service, 296
Justice, Department of, 78, 409
Justice, system of, see Courts

K

Kauri resin, 501
Kermadec Islands, 1
Kindergartens, 269
King, Truby, 240
Kiwifruit, 464
Kohanga reo, 198, 266, 269
Korea, trade with, 597

L

Laboratory technicians, medical, 226
Labour Court, 293, 383, 384
Labour, Department of, 78, 258–59
Labour force (see also Employment, Unemployment), 358
age and sex of, 362–63
employment status, 366–67, 376
historical summary, 369–61
Household Labour Force Survey, 358–59, 369, 370
industrial structure, 364–65, 367
occupational structure, 360–61, 368
part-time, 364–66
participation rates, 359
projections, 362
Quarterly Employment Survey, 358, 377–78
survey of, 358
women in, 179, 363–64
Labour Party, 42–45, 59, 70
Labour relations, (see also Trade unions, Work stoppages), 382
history of, 38, 383, 386, 391
pay fixing, 382–83, 388–89
rights, disputes, 293
Lamb, 441, 445–46, 447–48
Land,
agricultural, 413, 436–37
area, total, 1, 420
controls on acquisition, 410
Crown, 415–17
development and settlement of, 411–12, 413, 414
leasehold, 417
ownership, historical, 417
Maori, 28–29, 31–33, 36, 42, 414–15
recreational, 428–34
registration of ownership, 409–10, 412–14
surveys of, 407
transfers of, 410, 412–14
use of, 420
valuation of, 417–20
Land Corporation Ltd, 417
Land tax, 659
Land transfers, 410, 412–14
Land wars, 30, 32, 33
Landscape art, some New Zealand, 312–20
La America and Caribbean, relations with, 104, 598
Latitude and longitude, 1
Law, sources of, 295
Laws, see Legislation
Leasehold land, 417
Legal aid, 296–97
Legal systems, 290–97
civil jurisdiction, 292, 295–96
criminal jurisdiction, 298–300, 302
historical summary, 294, 297
Legal tender, 635
Legislation, 59–60
Legislative Council, 60
Leisure activities, outdoor, 349
Liable Parent Contribution Scheme, 208
Liberal government, 36–58
Liberty loans, 651
Libraries, 333–34, 335–37
Life expectancy, 141–43, 193
Life insurance, 575–78, 581
government, 581, 582
Lighthouses, 536
Liquidation, of companies 574–75
Liquor, see Alcohol
Liquor licensing, 567, 569
polls, 70
Listener, the, 338
Literacy, rates of, 269
Livestock, 435, 441–42
cattle, 435, 439, 444
deer farming, 435, 437, 439, 442, 443–44
distribution of 441–42
goat farming, 435, 436, 439, 442, 444
health services for,
horses, 435, 438
pigs, 457–58
poultry, 458
quarantine of, 440–41
sheep, and sheep farming, 435, 436, 439, 441–43, 444, 451
Loans Accounts, 646, 652
Local authorities (see also Local government), 87–93
election and membership of, 93–94
population of, 135–36
powers of, 92–93
rating and valuation, 419, 668–71
reading, 547
Local Authorities Loans Board, 672–73
Local government, 84–94
boundaries, 90–91
community, 88–89
history of, 85, 90, 92
planning and, 422–24, 428
reform of, 85–87
regional, 89–92
special purpose, 92
territorial, 87–88, 90–91
Local Government Commission, 85–87, 94
Local government finance, 668–73
borrowing, 672–73
expenditure, 671–72
income, 668–71
income from rates, 668–71
Local government regions, population of, 134, 136
Lockouts, 386–87
Logging, see Census of Forestry and Logging
Lotteries and lotto, 351
funding from, 321, 351

M

Maatua whangai, 198
Magazines, 344
Magistrates Courts, see District Courts
Mail services, 555–57
Mana Enterprises Scheme, 375
Mana Motuhake Party, 70
Manchester Special Settlement, 413
Manila Treaty, 116
Manufacturing industry, 503–12
assistance to, 510–11
enterprises, 506–07
geographical distribution of, 508–09
historical, 505, 507, 510, 511
quarterly survey of, 511–12
Maori (see also Maori history, Maori population), 191–200
community services, 196–99
education of, 264, 265
employment and training of, 375
fisheries, 477
housing, 165–66, 519–20
justice, 293–94
language, 199–200
tribal developments and locations, 191, 196
women, 180, 198
Maori Affairs, Ministry of, 79, 195–96
Maori and Pacific Islands Arts Council, 322, 323
Maori Council, New Zealand, 197
Maori Education Foundation, 264
Maori electorates, 68–69
Maori Fisheries Commission, 477
Maori history, 23
policies and attitudes of governments, 54–55, 193, 194–95
pre-European, 23–25
1770–1890, 27–28, 31–33, 36
1890 to present day, 41–42, 48
Maori land, 28–29, 31–33, 36, 42, 414–15
Maori Land Court and Maori Appellate Court, 196, 414–15
Maori population (see also Maori),
age and sex of, 155, 157–58, 192–93
birth and death rates of, 156–57
early estimates, 31
geographical distribution of, 145, 156, 192–93
historical, 156–58
households, 165–66
infant mortality in, 239–40
life expectancy, 143, 193
Maori wardens, 198
Maori Women's Welfare League, 198
Mapping, 407–09
Marine pollution, 426–27, 536
Marital status, 171, 172–74
Maritime parks and reserves, 432–33
Maritime planning, 424
Marketing authorities for agricultural products, apples and pears, 463
dairy products, 543
kiwifruit, 464
meat, 446–47
wool, 450–51
Marriage and marriages (see also Marital status), 171–77
age at, 174–75
dissolution of, 175–78
guidance, 175
rates of, 138, 140, 171
Maternal deaths, 241
Maternity benefits, 227
Maternity leave, 392
Meat and meat products (see also New Zealand Meat Producers Board), 445–50
beef, 445–50
chicken, 458
exports, 439, 446–47, 449
grading of, 447–48
pigmeats, 457–58
prices, 448–50
processing, 445–46
sheepmeats, 445–50
veal, 446, 448
Media, 338–45
advertising, 344–45
magazines, 344
newspapers, 342–44
radio, 339, 340, 341–42
television, 340–41
Mediation Service, 384
Medical benefits, 226
Medical Council, 223–24
Medical insurance, 220, 575–78, 581
Medical technologists, 225–26
Medical practitioners, 223–24
Medical radiation technologists, 225–26
Medical Research Council, 236, 396
Medicines, control of, 229
Members of Parliament, 61–65
listed, 62–63
salaries and allowances, 60–61, 62
Mental health, 230
Merchant banks, 632
Merchant navy qualifications, 535
Mergers, 570–71
Metals, 498–500
gold, 498, 499, 500
iron and ironsands, 497–98
Meteorology, see Climate
Metric system, 570–71
Middle East, relations with, 105, 599
Migration,
external, see External migration, Immigration internal, 132, 134, 152
Military service, 117
Military decorations, 122–23
Military pensions, 208–09
Milk and milk products (see also Dairy products), 453, 455
Minerals and mineral products (see also Mining), 496–502
coal, 483, 484, 486, 496–97
metallic, 498–500
non-metallic, 500–02
production, 496, 497–98
Miners benefit, 205
Minimum wage, 390
Mining (see also Minerals and mineral products), 496
laws on, 424, 428
safety and working conditions, 337
Ministers of the Crown,
list of, 65–66
salaries and allowances of, 60–61, 62
Ministry for the Environment, 77, 427, 428
Ministry of Agriculture and Fisheries, 76, 440–41, 454
research by, 402–03
Ministry of Civil Defence, 254–55
Ministry of Commerce, 76, 259, 404–05, 482, 510–11
Ministry of Consumer Affairs, 563
Ministry of Defence, 76
Ministry of Education, 76–77, 262, 266–68
Ministry of Forestry, 77, 403, 465
Ministry of Maori Affairs, 79
Ministry of Pacific Island Affairs, 202
Ministry of Research, Science and Technology, 79, 400–01
Ministry of Transport, 81, 259, 535–36, 537, 551
Ministry of Women's Affairs, 81
Monetary policy, 635, 638
Money, 635–41
Monopolies, 570–71
Mortality, see Deaths and death rates
Mortgages, 519–22
Housing Corporation, 520–22
interest rates of, 513, 519, 520
Motor spirits, duty on, 660, 792
Motor vehicle industry, 504
Motor Vehicles Securities Register 549
Motor vehicles, 547–49
registration and licensing, 546–48
inspection, 552
Mountains, 1
formation of, 3–5
Multilateral assistance, 106–09
Murder, 297, 300
Museums and art galleries, 327–28

N

Narcotics, see Drugs
Nash, Walter, 43
National Accounts, New Zealand System of (NZSNA), 679–87
development of, 679–82
historical summary, 679–80
National Advisory Council on the Employment of Women, 364
National anthems, 95
National Archives, 330
National Art Gallery, 328
National disposable income, 679–80, 681
National Drug Intelligence Bureau, 310–11
National Education Qualifications Authority, 264
National emblems and anthems, 94, 95
National Film Library, 278
National gross equalised capital value, 419
National Health Statistics Centre, 236
National income and outlay, 681
National Library of New Zealand, 79, 335–37
National licensing poll, 70
National Museum, 328
National parks (see also Forest parks, Reserves), 428–31, 433
National Party, 45–46, 59, 70
National Provident Fund, 79, 580
National Roads Fund, 645, 650
Nationhood, 39, 47–48, 101–02, 103, 107
Natural gas, 486, 493, 494–95, 496
Natural increase, of population, 126–28, 136–37, 159–61
Nature Conservation Council, 433
Nature reserves, 431
Navigational aids, 536
Navy, Royal New Zealand, 119–20
New Business Investigation Grants Scheme, 376
New Zealand Apple and Pear Marketing Board, 463
New Zealand Army, 121
New Zealand Association of Scientists, 396
New Zealand Australia Closer Economic Relations Trade Agreement (CER), 102
New Zealand Bibliographic Network, 337
New Zealand Certificate, 286
New Zealand Communicable Disease Centre, 235
New Zealand Company, 28–30, 35
New Zealand Council for Educational Research, 264, 399
New Zealand Council of Trade Unions, 386
New Zealand Dairy Board, 455
New Zealand Democratic Party, 70
New Zealand Employers' Federation, 386
New Zealand Employment Service, 374
New Zealand Film Archive, 333
New Zealand Film Commission, 325
New Zealand Fire Service, 256–57
New Zealand Fishing Industry Board, 480–81
New Zealand Forestry' Corporation Ltd, 467–68
New Zealand Government, the, 65–66
New Zealand Government stock and securities, 639, 665–67
New Zealand Harness Racing Conference, 350
New Zealand Historic Places Trust, 328–30
New Zealand, HMS, 100
New Zealand Household Expenditure and Income Survey, 166–69
New Zealand Institute of Economic Research, 403
New Zealand Kiwifruit Authority, 464
New Zealand Listener, 338
New Zealand Lotteries Commission, 351
New Zealand Lottery Grants Board, 321, 351
New Zealand Maori Council, 197
New Zealand Meat Producers Board, 446–47
New Zealand Milk Authority, 455
New Zealand Olympic and Commonwealth Games Association, 349
New Zealand Party, 70
New Zealand Patent Office, 404–05
New Zealand Planning Council, 81–82
New Zealand Police, 79, 308–11
New Zealand Pork Industry Board, 458
New Zealand Ports Authority, 533
New Zealand Post Ltd, 555–57
New Zealand Poultry Board, 458
New Zealand Racing Authority, 351
New Zealand Railways Corporation, 542
New Zealand Sports Foundation, 348
New Zealand Stock Exchange, 571–73
New Zealand Symphony Orchestra, 323, 325, 338
New Zealand System of National Accounts (NZSNA), 679–87
Consolidated Accounts of the Nation, 680–81
New Zealand Time Service, 21
New Zealand Tourist and Publicity Department, 80, 357
New Zealand Tourism Council, 357
New Zealand Trade Development Board, 589
New Zealand Walkway Commission, 349, 433
New Zealand Wars, 30, 32, 33
New Zealand Wool Board, 450–51
New Zealand Workers Educational Association (WEA), 288
New Zealand's overseas posts, 99, 103
Newspapers and magazines, 342–44
Ngata, Apirana, 48, 265
Niue, relations with, 99, 101, 108
Nominal Weekly Wage Rates Index, 382
North Island, population of, 129
Nuclear Free Zone (New Zealand), 107
Nurses, and nursing services, 224
NZSNA (New Zealand System of National Accounts), 679–87

O

Occupations, 360–61, 368
Occupational safety and health, 258–59
Occupational therapists, 225
OECD (Organisation for Economic Co-operation and Development), 111
Office of the State Services Commission, 74–75
Official development assistance (ODA), 106–07
Official information, 82–83
Ohu Whakatupu, Te (Maori Women's Secretariat), 180
Oil, 484, 485–86, 491–94
Ombudsmen, 83–84
Open Polytechnic of New Zealand, 284–85
Optometrists and, opticians, 225
Order of New Zealand, 57
Organisation for Economic Co-operation and Development (OECD), 111
Orphanages, 217
Orphans benefit, 206
Ostrich farming, 445
Outdoor leisure activities, 349
Overseas aid, 106–07
Overseas balance of payments, 688–92
Overseas debt, 665, 667, 691–92
Overseas exchange transactions, 639–41
Overseas investment, in New Zealand, 510
Overseas students, 283
Overseas trade, see External trade
Ozone hole, 9

P

Pacific countries, relations with, 99, 101–02, 108, 596
Pacific Forum Line, 101–02
Pacific Island Affairs Advisory Council, 202
Pacific Island Affairs Unit, 202
Pacific Island Polynesian population, 159, 200–01
age distribution of, 155, 200–01
employment and training, 375
geographical distribution, 146, 201
households and dwellings, 165–66
Pacific Islands Industrial Development Scheme (PUDS), 101
Paper, 471–72, 473, 474
Parent Advocacy Council, 263
Parental leave, 391
Parks (see also Reserves),
forest, 431
marine, 433
national, 428–31
Parliament, (see also Elections, parliamentary), 52–53, 56–70
establishment of, 30–31
housing of, 58
members of, 62–63
opposition, 56, 59
proceedings of, 56, 59–60
salaries and allowances of members, 60–61, 62
sessions of, 60
Parliamentary Service, 60
Parliamentary Commissioner for the Environment, 424
Parliamentary Library, 335–37
Parole system, 308
Partnerships, 570
Part-time work, 364–66
Passports, 183–84, 187
Pastoralism, history of 23–24, 27–23, 33–34
Patents and trade marks, 404
Paternity leave, 392
Patients, hospital, 243–46
Pay, fixing rates of, 382–83, 388–89
PAYE tax, 653–54
Penal system, 302–08
corrective training, 304–07
fines, 303
imprisonment, 307–08
parole system, 308
prisons and prisoners, 305–07
probation, 299, 303
reparation, 303
Pensions, see Benefits and pensions, Superannuation
Performing arts, 323
Perinatal mortality, 239–40
Periodic detention, 303
Permits, building and construction, 523–25
Pests, 17
Petroleum,
consumption, 483–85
processing and distribution, 491–94
prospecting and drilling, 494–95
sales, 492
Pharmaceutical benefits, 226
Pharmacists, 225
Physiotherapists, 224
Physiotherapy benefits, 227
Pigmeats, 445, 457–58
Pigs, 457–58
Pinus radiata, 465, 468–69
Place names, types of, 407
Planning, 421–24, 428
district, 422–24
economic, 678
maritime, 424
New Zealand Planning Council, 81–82
permission for building, 523
regional, 422
Planning Tribunal, 295
Plants breeders' rights, 462
Plants, see Vegetation and wildlife
Plastics industry, 504
Plunket Society, 240
Podiatrists, 225
Police Complaints Authority, 311
Police, New Zealand, 79, 308–11
dogs, 308
training, 310
transport, 309
women in, 311
Political parties, 59, 70
Pollution,
air, 10, 228–29, 427
water, 426–27, 536
Polynesians, see Pacific Island Polynesians
Population (see also Census of Population and Dwellings), 126
age distribution, 141, 143, 148, 153–55
birthplaces, 147
change in, 136–53
ethnic groups in, 145, 146, 155, 156, 158–59
fertility of, 137–41
geographical distribution of, 128–29, 132–36
growth of, 126–28, 153
of local government areas, 132, 134–36
Maori, see Maori population
marital status of, 171, 172–74
of North and South Islands, 129, 132
Polynesian, see Pacific Island Polynesians
projections of, 159–62
religious professions of, 180–81
rural, 132–33
sex ratio in, 153–54
urban, 132–34, 136
Ports, 533–35
Postal services, 555–57
Poultry and eggs, 458
Premiers, 64–65
Pre-school education and childcare, 261–62, 266, 269
Kohanga reo, 198, 266, 269
Preventive detention, 304
Prevailing Weekly Wage Rates Index, 381–82
Price indexes,
Capital Expenditure Price Index, 624–25
Consumers Price Index, 613–21
Export Prices Index, 609–10
Farming Inputs Price Index, 438–40
Import Prices Index, 609
Producers Price Index, 621–22
Terms of Trade Index, 610–11
Urban House Property Price Index, 517
Prices, 613
exports and imports, 609–10
housing, 513, 517
historical, 611, 621
international comparison, 619
retail trade, 619–21
Primary schools, 269, 271–75
Prime Minister(s), 64
Department of Prime Minister and Cabinet, 79
historical list of, 64–65
salary and allowances, 60–61, 62
Prisons and prisoners, 302–08
classification and treatment, 307–08
historical, 303–04, 305
institutions, 305–06
numbers of prisoners, 306–07
Private hospitals, 244
Private savings banks, 631–32
Private schools, 272, 273–74
Privy Council, Judicial Committee of, 291
Probation, 299, 303
Producers Price Index, 621–22
Production accounts, 682–83
Productivity, 389
Prohibition, 70, 566, 567, 568
Protected Natural Areas Programme, 433
Provincial government, 30–31, 86, 87–88
Psychiatric hospitals, 246–49
deaths, 249
patients and diagnoses, 247–49
Psychological services and psychologists, 224
Public accounts, 642–53
Public broadcasting fee, 338
Public debt, 639, 651, 664–68, 673
interest on, 665
maturity of, 665, 667
owed by departments, 667–68
per capita, 665, 666
securities on issue, 639, 665–67
transactions, 667
Public health, 228
Public holidays, 390–91
Public lands (see also Forest parks, Reserves),
Crown land, 415–17
national parks, 428–31, 433
Queen Elizabeth the Second National Trust, 433–34
walkways, 349
Public service see Government departments, State sector
Public Trust Office, 79
Publishing,
books, 334–35
newspapers and magazines, 342–44
Pulp and paper, 471–72, 473, 474

Q

Quackery prevention, 226
Quality management, 511
Quangos, 81
Quarantine, 440–41, 471
Quarries and quarrying, see Mining
Quarterly Economic Survey of Manufacturing, 511–12
Quarterly Employment Survey, 358, 377–78
Quarterly Survey of Retail Trade, 583–86
Queen Elizabeth II Arts Council, 321–23
Queen Elizabeth the Second National Trust, 433–34
Queen's Service Order, 57

R

Race relations and racial discrimination (see also Ethnicity), 178
Racing, 349–51
horse and greyhound, 439–51
taxation, 662
Radio, 339, 340, 341–42
Radiologists, 225–26
Railways, 542–45
construction and engineering, 542–43
historical statistics, 528
history of, 36–37, 542, 543, 544–45
New Zealand Railways Corporation, 542
passenger services, 544–45
Rainfall, 8, 11, 12, 14
Raoul Island, 1
Rapu Mahi/Hanga Mahi programme, 198
Rates, local authority, 668–71
Rationing, 492, 563
Real Disposable Income Indexes, 378–81
Receivership, 574–75
Recreation and sport, 345–51
Hillary Commission for, 346
participation in, 347–48
provision for, 346–47
Recreation reserves, 432
Redundancy, 392
Reform government, 38–40
Refrigeration, 449
Refugees, 159, 190–91, 213
Regional Development Investigation Grant Scheme, 510
Regional employment and ACCESS councils, 372, 374
Regional government, 89–92
Regional planning, 422
Registered banks, 628–31
Rehabilitation, 235
after accidents, 212–13, 249
of war, veterans, 208–09
Religious professions of population, 180–81
Rental housing, 517–18
Reparation ordered by courts, 303
Representation Commission, 73
Reproduction rates, 137–41, 159
Research, scientific, 395–99, 400–03, 451
Department of Scientific and Industrial Research, 79, 397–99, 401–02
expenditure, 402
Foundation for Research, Science and Technology, 401
Ministry of Research, Science and Technology, 79, 400–01
Reserve Bank of New Zealand, 626–28
Reserves, land, 431, 433
Residential Tenancy Tribunal, 294–95, 518
Resource conservation, see Conservation of natural resources
Restart, 374
Restaurants and hotels, 567, 568, 584
Retail prices, 619–21
Retail trade, 583–86
credit sales, 586–87
shop training hours, 565, 566
Rivers, 2, 425, 426
Roads,
expenditure on, 547
safety, 251–52, 551–52
speed limits, 552
taxes for, 662
toll, 546
Transit New Zealand, and, 546–47
Rock aggregate, 498–500
Rocks, types of, see Geology
Ross Dependency, 2, 114
Rotorua, 354
Royal commissions, 70–72
Royal honours system, 57
Royal New Zealand Air Force, 124–25
Royal New Zealand Navy, 119–20
Royal New Zealand Society for the Health of Women and Children, 240
Royal Society of New Zealand, 396
Royal visits, 96–97
Rural education activities programmes (REAPs), 277–78
Rural Electrical Reticulation Council, 491
Rural population, 132–33

S

Safety, 254
fire, 256–57
occupational, 258–59
road, 251–52
of ships, aircraft, cranes, 259
Salaries, see Wages
Salt, 501
Satellite links, 560
Savage, Michael Joseph, 42, 43
Savings institutions, 630–32
private savings banks, 631–32
trustee banks, 630
Scenic reserves, 431
School Certificate, 270, 271
School Dental Service, 233
School Journal, the, 278
Schools (see also Education, Students, Teachers and teaching),
boards of trustees, 263
correspondence, 273, 288
curriculum, 270
primary, 269, 271–75
private, 272, 273–74
pupils of, numbers, 273–74
secondary, 270–71, 272, 273–74
terms of, 269
transport to, 275
Science and scientific services (see also Research, scientific), 394
expenditure, 402
history of, 394–99
recent administrative changes, 399–401
Scientific and Industrial Research, Department of, 79, 397–99, 401–02
Scientific reserves, 431
SCOPE (Small Co-operative Enterprises Scheme), 375
Search and rescue operations, 118, 310
Seat of government, 58, 61
Secondary schools, 270–71, 272, 273–74
Securities Commission, 571
Securities, government, 639
Security Intelligence Service (SIS), 125
Seddon, Richard John, 37, 38, 46
Seismic activity, 5–6
Sentencing, on conviction, 295, 297, 299, 302, 303–04
Serious Fraud Office, 79, 571
Service cars, 549
Settlement, of New Zealand
European, 25–27, 28–31, 35, 126, 129
Maori, 23–24
Share market, 571–73
Sheep, and sheep farming, 435, 436, 439, 441–43, 444, 451
Sheepmeats, 445–50
Shipping, (see also Cargo, Ports) 449, 529–36
bulk, 531
coastal, 531, 532
Cook Strait ferries, 531, 545
historical summary, 528
register of, 335
overseas, 529–31, 532–34
services to, 259, 534–36, 560
Ships, 529, 335–36
fishing vessels, 478, 479
Shipwrecks, 536
Shop trading hours, 565, 566
Sickness benefits, 205
SITC (Standard International Trade Classification), 605–06
Sixth Form Certificate 270, 271
Skiing, 344
Slums, 516
Small Co-operative Enterprises Scheme (SCOPE), 375
Smoking, 232
Snow, 10, 13
Social Credit Party, see New Zealand Democratic Party
Social sciences, 399, 403
Social Security Fund, 210
Social services, 211–14
Social welfare, 203
benefits, see Benefits and pensions
Department of, 79, 203–4
funding, 203–04, 207, 210, 211, 213
history of, 203, 204–05, 206, 207, 208–09, 210, 211, 212
Soil conservation, 424–25, 427
Soil types, 420–21
South and Central America, relations with, 104, 598
Southern oscillation, 13
South Island, population of, 129
South Pacific Bureau for Economic Co-operation (SPEC), 101
South Pacific Commission, 100
South Pacific countries, relations with, 99, 101–02, 108, 188
South Pacific Forum, 101
South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA), 101, 596
Sovereigns of New Zealand, 51
Sovereignty, 28–29, 35, 51, 53, 54–55
Soviet Union, relations with, 104–05, 599
Speaker of the House of Representatives, 56
Special education, 262, 266, 275
Special articles in earlier Yearbooks, (xvi)
Special-purpose authorities, 92
Sports, 347–49
Olympic and Commonwealth Games, 349
participation in, 347–48
provision for, 346–47
Stamp duty, 660
Stamp, postage, 556, 561, 582
Standard International Trade Classification (SITC), 605–06
Standard of living, international indicators, 170–71
Standards Council, 405–06
Standing Orders of the House of Representatives, 56
Starnet, 560
State forests, 465, 468, 472
State Insurance Office, 79, 583
State-owned enterprises, 72–73
Airways Corporation, 537–38
Electricity Corporation, 488–89
Land Corporation, 417
New Zealand Forestry, Corporation, 467–68
New Zealand Post, 555–57
Railway: Corporation, 542
Sales of, 664
Telecom Corporation, 557–60
Tourist Hotel Corporation, 353
transfer of land to, 416
State sector (see also Government departments, State-owned enterprises, central government finance), 72–84
history of, 38
recent reform of, 72–74
State Services Commission Office of the, 74–75
Statistics, Department of, 80
Statute of Westminster, 53
Statutes, 59–60
Statutory bodies, boards, and committees, 81
Steelmaking, 504–05
Stillbirths, 239
Stock and station agents, 632
Stock change, by production group, 684
Stock exchange, 571–73
Storms, 8, 10, 11, 13, 14
Strikes, 386–88
Students,
allowances, 282–83
Maori, 271
numbers, 273–74
overseas, 283
part-time, 283–84
primary school, 271
projected numbers of, 274
teachers college, 276
technical, 285–87
university, 278–84
Sulphur mining, 502
Sunshine, 10, 12, 14
Superannuation, 578–80, 582–83
Government Superannuation Fund, 578–79
National Provident Fund, 580
Supervision ordered by courts, 299, 303
Supreme Court, see High Court
Survey and Land Information, Department of, 80, 407, 409, 416
Survey Board, 407
Surveys, land, 407
Sydney Pageant, 39
Symphony Orchestra, New Zealand, 323, 325, 338

T

TAB (Totalisator Agency Board), 350
Taiapure, 477
Tariff (customs), 590–91
Tasman, Abel, 25, 35
Taxation review authorities, 662
Taxes and taxation, see also Customs tariff and revenue, 653–64
Average Tax Rates Index, 378–80
company income tax, 658
estate duty, 660
excise duties, 591, 660–662
fringe benefit tax, 658
gift duty, 660
goods and services, 658–59
historical, 661
on interest and dividends, 657–58
land tax, 659
personal income tax, 653–56
racing taxation, 662
retirement tax and GRI surcharge, 657
revenue from, 662, 663–64
roads taxation, 662
stamp duty, 660
Teachers and teaching, 266, 274, 275–78 registration of, 263
Teachers colleges, see Colleges of education TEAL, 539–40
Technical education, 284–87
Tectonic plates, 5–6
Telarc New Zealand, 405
Telecom Corporation of New Zealand Ltd, 557–60
Telecommunications, 557–60
Telegrams, 558, 559
Telephone services, 557–58, 560
Television, 340–41
Telex services, 558–59
Temperatures, air, 9, 12–13, 14, 15
Tenancy, 518
Terman Fest, 272
Terms of Trade Index, 610–11
Territorial authorities, 87–88, 90–91
finances, 668–73
Territories, New Zealand,
Ross Dependency, 1, 114
Tokelau, 1, 111, 114
Te Wherowhero, King Potatau I, 32
Textiles (see also Wool), 505
Timber and forest products, 469–74
exports of, 470–71, 473–74
imports of, 473–74
pulp and paper, 471–72, 473, 474
Timber preservation, 470–71
Time, 21
Tokelau, 1, 111, 114
Toll roads, 546
Topdressing, 438, 541
Torrens system, 409–10
Totalisator Agency Board (TAB), 350
Tourism, 352–57
accommodation, 355
domestic, 356
facilities, 352–55
international, 352, 355–56
promotion, 357
Tourist and Publicity Department, New Zealand, 80, 357
Town milk supply, 455
Town planning, 421–24, 428
Toxic substances, 258
Trade,
domestic, see Domestic trade
external, see External trade
Trade marks, 404
Trade organisations and agreements, 589, 600
Trade practices, 562–69
Trade representatives overseas, 589
Trade routes, maritime, 529–31
Trade training, 284–87
apprentices, 372–73
technical education, 284–87
Trade unions, 386
Trading banks, see Registered banks
Trading legislation, 562–69, 570–71
Traffic,
accidents, and safety, 251–52, 551–52
offences, 299, 553–54
volumes, 546
Training benefit, 205
Training, vocational, (see also Trade Training), 284–87, 372–73
Trams, 550
Transit New Zealand, 546–47
Transport, 527
air, 536–41
historical statistics, 528
household, 166, 169
licensing, 545–46
Ministry of, 80, 259, 535–36, 537, 551
rail, 542–45
reform of industry, 527–28
road, 545–54
sea, 529–36
to work, 392, 549–51
urban, 546
use by tourists, 355
Travel, domestic, 356, 527
Treasury, 80
Treaties,
defence agreements, 115–16
trade agreements, 101–05, 594–60
Treaty of Waitangi, 29, 43, 51, 54–55, 195
Trial courts, 299–300, 302
Tribunals, 294–95
disputes, 294
equal opportunities, 294
planning, 295
residential tenancies, 294–95, 518
Waitangi, 195, 295
Triparite wage conference, 388
Trustee banks, 630
Tuberculosis, 238

U

Unemployment (see also Labour force),
benefit, 205
distribution of, 150
ethnicity and age of, 371
growth of, 369, 370, 372
history of, 42, 369, 370, 372
policies and programmes, 372–73, 373–76
school qualifications and, 372
Unions, of employers, 386
Unions, of workers, 384–86
United Kingdom, trade with, 599
United Nations Education, Scientific and Cultural Organisation (UNESCO), 109
United Nations, New Zealand membership of, 107–10, 116, 600
United States of America, relations with, 104, 115–16, 597
Universities, 266, 278–84
extension programme, 287–88
graduates from, 279–82
scholarships and bursaries to, 282–84
science in, 396
staff in, 283
students in, 278–84
Urban areas (see also Cities and city councils), 132
population of, 132–34, 136, 145–53
transport in, 546
Urban House Property Price Index, 517
Urban transport, 546

V

Valuation New Zealand, 80, 417
Valuation of land, 417–20
Valuers, registration of, 420
Vegetation and wildlife, 16–20
origins of, 16–17, 18, 19, 20
Venereal disease, 236
Victory loans, 651
Video Recording Authority, 327
Videotex, 560
Vital statistics (see also Births and birth rates, Deaths and death rates, Marriage), 141
Viticulture, 462–63
Vogel, Julius, 34, 647
Volcanoes, 4–5, 6
Volume indexes of external trade, 611–12
Voluntary welfare organisations, 213–14, 219, 230
Voting, see Elections

W

Wages (see also Pay fixing), 377–78, 379, 381–82
historical, 377, 378, 380
minimum rates, 340
Nominal Weekly Wage Rates Index, 382
Prevailing Weekly Wage Rates Index, 381
Waitangi, Treaty of, 29, 43, 51, 54–55, 195
Waitangi Tribunal, 195, 295
Wakefield settlements, 28–30, 35
Walkways, 349
War, New Zealand's participation in, 39, 43–45, 46, 112–15, 115, 117, 651, 666
Warrant of Fitness, 552
Wars, New Zealand, 30, 32, 33
War pensions and allowances, 208–09
Water and soil conservation, 424–26, 427
Water pollution, 426–27, 536
Water supply, 424–26
fluoridation of, 234
irrigation, 425–26
WEA (New Zealand Workers Educational Association), 288
Weights and measures, 570–71
Western Samoa, 101, 108
Whaling, 26
Whitebait, 480
Widows benefit, 205, 207
Wildlife, see Vegetation and wildlife
Wildlife reserves, 431–32
Winds, 7–8, 10, 14
Wine and winemaking, 462–63
Women, 178–80
health of, 179, 230
in the labour force, 179, 363–64
Maori, 180
in politics, 61, 63
Ministry of Women's Affairs, 81, 178–80
ratio in population, 153–54
refuges for, 219
rights of, 175–76
Wood, see Timber and forest products
Wool, 450–53
exports, 439, 452–53
International Wool Secretariat, 451
New Zealand Wool Board, 450–51
prices, 451
production, 435
Work Development Scheme, 375
Workers' compensation, 250
Work stoppages, 386–88
Working conditions (see also Occupational safety and health), 389–93
Working hours, 390, 391
World Bank, 110
World Health Organisation, 109, 236
Wrecks, (x), 536

X

Xenophobia, 188

Y

Young Maori Party, 41
Youth Affairs, Office of, 81
Youth Court, 214–16, 294, 297
Youth, programmes, see Community welfare services