New Zealand Official 1992 Year Book

Te Pukapuka Houanga Whaimana o Aotearoa

Cover

Pamela Wolfe Oyster Catcher at Cathedral Cove, 1990.
Enamel on hardboard, 165 × 109 cm.
Private collection, Auckland.

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

Recommended retail price: $59.95 (incl. GST)

Published by the Department of Statistics.

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Table of Contents

List of Tables

Preface

Table of Contents

This 95th edition of the Yearbook heralds a change in the role and concept of the Department of Statistics' Official New Zealand Yearbook.

Building on the success of the 1990 sesquicentennial edition, similar historically-based yearbooks will be produced every five years, while editions published in the interim will emphasise contemporary issues. These modern editions will provide readers with up-to-date reviews and analyses of recent changes in New Zealand society. The 1992 Yearbook is the first of these yearly reviews.

The format of the Yearbook remains unchanged; the traditional, relevant and summary statistics that have always featured are continued, and in some cases enhanced. Text, tables and graphs all appear in the same form, but the older data has been replaced by the latest available information. For example most tables and graphs now date back only to the 1960s, or in the case of population data to the late 1930s.

As a record of developments in New Zealand society, the yearbooks are unparalleled. They provide a consistent point of reference, based on an authoritative overview of the social, economic and cultural life and institutions of New Zealand. The Yearbook is often used as an excellent introductory source to a diverse range of New Zealand issues, providing detailed information in an understandable, yet technically accurate manner. The Yearbook plays a special role in chronicling events, and issues and making even complex statistics relevant to our understanding of society. It is a statistical chart of the progress of New Zealand society and economy. The Yearbook monitors our place in the world, and recording objectively the comparative position of New Zealand.

Accompanying the text are over 50 special articles detailing the impact of resource management in New Zealand. These articles highlight the wise, efficient and practical use of New Zealand's resources—our people, land, revenues and potential—and map out the resulting impact and inter-relationships.

The Department of Statistics publishes the Yearbook with the help of contributions from many government departments and agencies, private organisations and corporations, and societies. On behalf of the department I would like to thank all the contributors for their time and their efforts, and acknowledge the work of GP Print and the department's editorial and graphic design staff in the production of the 1992 Yearbook.

L. W. COOK,
Government Statistician

April 1992.

Acknowledgements

The 1992 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.

Government Statistician: Len Cook.
Manager: Kevin Eddy.

Editor: Jane Evans.
Assistant editor: Patrick Hudson.
Maps and diagrams: Peter McGrath.
Photograph editor: Athol McCredie.
Proofreading: Jane Hunt; Myra Page; Carla Linnell.

Photographs

Individual photographs are credited separately, usually at the bottom right-hand corner.

The editors record their thanks to the many individuals and institutions who made photographs available.

How to use the 1992 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.

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 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.

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 the latest available at 1 January 1992.

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.

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 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.

Chapter 1. Geography

Female Shore Plover, Chatham Islands.

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 270,500 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 3.

Table 1.1. LAND AREA OF NEW ZEALAND*

Land areaSize

* These figures were current at 1 December 1989. These areas may be adjusted as more precise boundary definitions are made.

† Includes islands in territorial local authorities.

‡ Excluding islands in territorial local authorities.

Source: Department of Survey and Land Information.

sq. km.
North Island†115777
South Island†151215
Offshore Island‡833
Stewart Island1746
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 3000 metres.

Source: Department of Survey and Land Information.

metres
North Island—
     Ruapehu2797
     Taranaki or Egmont*2518
     Ngauruhoe2290
     Tongariro1968
South Island†—
Southern Alps—
     Cook3753P
     Tasman3497
     Dampier3440
     Silberhorn3279
     Lendenfeldt3201
     Hicks (St David's Dome)3183
     Torres3163
     Teichelmann3160
     Sefton3157
     Malte Brun3155
     Haast3138
     Elie de Beaumont3117
     Douglas3085
     La Perouse3079
     Heidinger3066
     Minarets3055
     Aspiring3030
     Glacier Peak3007

Campbell Island, one of the Sub Antarctic Islands, 590 kilometres south of Stewart Island.

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 hydro-electric 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.

The boundary between the Indo-Australian plate and the Pacific plate runs through New Zealand, and the processes from their collisions have had a profound effect on New Zealand's size, shape and geology.

Rock types

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.

Almost three-quarters of New Zealand is covered by sedimentary rocks, created by the interplay of the earth movement and erosion. The most common forms of sedimentary rocks in New Zealand are sandstone, mudstone, greywacke, conglomerate and limestone. 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). Volcanic rocks (basalt, andesite, rhyolite and ignimbrite), are the products of the many volcanic eruptions that have characterised New Zealand's geological history.

Landscape

Apparent in the New Zealand landscape today is the evidence of episodes of intense mountain building of between six million and one million years ago. During this period the mountain chains were pushed up and there was movement and displacement of the earth's crust along faults. Due to this activity well-preserved tilted fault blocks bounded by fault scarps (steep faces hundreds or even thousands of metres high) are visible in the landscape of some regions. Fault movements continue to the present day and have accompanied several major earthquakes of the past century.

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. Glaciers carved the fiords of Fiordland and the valleys occupied by most of the South Island lakes. Sea-level changes accompanied the formation, and later melting, of global glacial ice. These changes affected the erosion and deposition of the rivers and 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. The largest volcanic outpourings of late geological times were in the region between Tongariro National Park and the Bay of Plenty coast. The most recognisable volancoes in New Zealand now occur in the North Island, where a number are still active. They include Ruapehu, Tongariro, Ngaurahoe, 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.

Earthquakes

Compared with some other countries lying in 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. A shock of Richter magnitude 6 or above occurs on average about once a year, a shock of magnitude 7 or above once in 10 years, and a shock of about magnitude 8 perhaps once a century.

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 Northland peninsula, and the part of the South Island north of a line roughly passing 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.

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.

In geophysically disturbed regions (those with both volcanic and earthquake activity), large earthquakes are rare, although small earthquakes usually accompany volcanic eruptions. Regions of active volcanism are also subject to periodic outbreaks of small earthquakes, very numerous and all of similar magnitude. These are known as ‘earthquake swarms’ and although the number of shocks may cause alarm, it is unusual for even minor damage to result.

Earthquakes 1990. There were two earthquakes of Richter magnitude 6.0 or greater in the New Zealand area during 1990 and six exceeding 5.5. The largest earthquake of the year, with a magnitude of 6.3, occurred on May 13 near Weber in Southern Hawke's Bay. It had been preceded, on February 19, by a shock of magnitude 5.9 and was followed by a long sequence of aftershocks, including one of magnitude 5.7 on August 16. Surprisingly, Dannevirke, only 20 kms away, suffered only slight damage.

An earthquake of magnitude 5.8 was felt near Lake Tennyson, north of Lake Hanmer in north Canterbury on February 10. Another earthquake of 5.5 followed within 30 minutes, and after that a long sequence of smaller aftershocks.

Two earthquakes at about 150 kms beneath Rotorua were recorded in 1990: one on March 28 of 6.0 magnitude and another of 5.6 on October 19. On August 14 there was an earthquake 130 km beneath Lake Taupo registering 5.7. Due to the great depth of these earthquakes, they were felt only modestly and caused no damage.

A swarm of earthquakes occurred near Cape Palliser, from October 5 to 15. The largest of these registered at 5.0, and all were sufficiently close to Wellington to cause concern. Many other small earthquakes were recorded, the largest was recorded near Lake Te Anau on 10 July with a magnitude of 5.1.

Earthquakes 1991. There were two earthquakes exceeding Richter magnitude 6 in New Zealand, in 1991, one near Taupo on 12 July (6.4) and one north of Wanganui on 9 September (6.3). Both were of intermediate depth (71 and 87 km respectively) and this reduced their damaging effects significantly. The September shock, felt from Coromandel to Christchurch, resulted in about 2500 claims to the Earthquake and War Damage Commission, mostly from Wanganui. The July shock was also felt as far south as Christchurch, but only at moderate intensities.

There were two more earthquakes exceeding magnitude 6 offshore: 140 km north-east of East Cape on 20 November, and 40 km north of Tauranga but 285 km deep, on 16 November. Neither was felt very strongly onshore.

On 29 January there were two shallow earthquakes within five hours, both about 15 km south of Westport in the area of the lower Buller Gorge. They have been named the Hawk's Crag earthquakes, and were the subject of a field survey and subsequent analysis. Their magnitudes were 5.6 and 5.8. They caused some minor structural damage in Westport, Waimangaroa and Inangahua. On February 15 an earthquake of magnitude 5.5 occurred off the coast from Greymouth. It was felt throughout much of the northern and western South Island, although no damage was reported.

A deep earthquake (106 km) occurred to the south of Patea on 9 June. The magnitude was 5.8, and it was felt from New Plymouth to Greymouth. Earthquakes at that depth are common in the South Taranaki Bight.

Southern Fiordland experienced an earthquake of magnitude 5.0 on 5 September. It was centred near the head of Dusky Sound, and was reported felt as far east as Dunedin. Focal depth was 74 km. On 31 October an earthquake of magnitude 5.0 occurred near East Cape, shaking goods from shelves in Ruatoria.

LOCATION OF EARTHQUAKES

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.

Weather 1991

Most years in New Zealand are accompanied by at least some significant and memorable climate events. In 1991 these events included flooding, a period of extended dry weather, an exceptionally cold period during winter (in the South Island), and a number of tornadoes and high wind events. For the year, rainfall was 25 percent below average in Northland and Bay of Plenty (Kawerau had its driest year since records began in 1954). Wetter than usual weather prevailed in Wanganui, Manawatu, the North Island central plateau, Fiordland, Southland and central Otago.

The national average temperature for New Zealand of 12.4C was 0.1C below average, the lowest since 1983. Temperatures were 0.5C below average in Fiordland, central Otago and the North Island central plateau.

Skies were cloudier than usual overall, especially along the West Coast of the South Island were sunshine hours were the lowest since records began in 1913. It was also much cloudier than usual in Manawatu.

The most significant weather events were:

Flooding

There were three major floods during the year, the worst affected regions were Westland, Otago and Wairarapa.

Westland. Torrential rainfall (almost 700 mm) on 28 and 29 January, caused the worst flooding at Kaniere (inland from Hokitika) in 30 years. About 100 people evacuated Kaniere, while further south 140 people evacuated Franz Josef. This rainfall event, together with rain on most days throughout the month, caused Hokitika's January rainfall (555 mm) to be the highest in 125 years.

Otago. Easterlies on 17 and 18 February brought high rainfall (over 100 mm) and severe flooding to coastal areas of Otago, from Dunedin southward. The damage amounted to $1.5 million and was the worst flood in the area since 1980.

The Water of Leith in flood, February 1991, Dunedin.

Wairarapa. Heavy rain in south-easterly conditions caused severe flooding throughout the Wairarapa, from 8 to 11 March. Rainfall was exceptionally high (257 mm) at Castlepoint. Both the Tauherinikau and Waiohine Rivers burst their banks, and flood waters and slips isolated Castlepoint, Riversdale, Tinui and Mauriceville, where stock losses were severe.

This event contributed to the highest March rainfall for more than 50 years in many parts of Wairarapa, and central and southern regions of the North Island.

Dry weather

The El Niņo is a very negative phase of the southern oscillation Index (which is a measure of pressure difference over the Indonesian and South Pacific ocean area). Negative phases of the southern oscillation during autumn and winter usually give more southerly winds than usual, with drier weather to inland and western regions of the South Island. An El Niņo weather pattern contributed to an extended period of low rainfall along the west coast of the South Island and in the southern lakes area from March through July.

WEATHER

Sunshine hours (annual average to 1990)

There was no significant rainfall on the West Coast during the first three weeks of March. Hokitika's rainfall (39 mm) for the month was the lowest for March since 1866, and Franz Josef's (37 mm) the lowest March rainfall since 1926. The very unusual pattern of dry weather continued through to the end of July, accompanied by high power demand during several weeks of extremely cold weather. The level of the South Island hydro-lakes fell to the lowest levels since the 1950s.

Westerlies and rainfall

There was a break in the El Niņo pattern and a change to more normal westerly weather patterns at the beginning of August. The West Coast suffered much rain, while conditions during August were the wettest at Queenstown since 1890 and in other South Island areas since the 1920s. Rainfall and melting snow caused the level of the lakes to rise.

This was in contrast to the conditions occurring in the east of the North Island, where it was the driest August for Napier since 1931 and for Gisborne in over half a century. The lack of rain in Gisborne and Hawkes Bay continued until October, when over the period 28 October through to 5 November there were two periods of substantial rainfall (up to 200 mm).

Cold winter weather

Frequent southerly winds affected the South Island during winter with temperatures for June the lowest in many places since 1976. Exceptionally cold weather, accompanied by showers of hail and snow, prevailed in southern and eastern regions on 20 June. A clearance in the weather was followed by severe frosts in inland Canterbury and Central Otago.

Considerable snow cover in South Island high country areas, together with calm nights, kept both day and night temperatures exceptionally low. This was apparent during the first half of July, when frosts were more severe than in June.

July began with an unofficial minimum air temperature of −21.6°C at Moa Creek (Central Otago), which was lower than the official record low of − 19.7°C at Ophir (also in Central Otago) in July 1943. Temperatures as low as − 13°C and − 15°C were measured at Twizel (inland south Canterbury) and Lauder (Central Otago) on 15 July. The Shotover River near Queenstown froze over on 18 July for the first time this century. Temperatures for July were the lowest in over 60 years in much of Central Otago and the MacKenzie country.

Cold south-west winds brought heavy snow to South Island ski fields and high country areas of Canterbury and Otago from 23 to 25 July.

Heavy snow contributed to frequent avalanches on major ski fields during winter, and caused the loss of life on Mt Ruapehu. The Milford road was closed for two weeks (6–20 August) due to an avalanche and avalanche risk. This resulted in the loss of thousands of dollars to the tourist industry.

Tornadoes and high winds

A number of tornadoes caused damage to property in Northland and Auckland on 24 April when a band of thunderstorms passed over the region; one man was critically hurt. Tornadoes were also seen in Bay of Plenty on 30 April.

High winds during August, attributed to tornadoes, occurred at Motueka during the morning of 16 August, and at New Plymouth on 18 August where winds left a 2 km long trail of destruction. Damage was estimated at $1 million.

On 1 October, the Cook Strait ferry Aratika was buffeted by high waves and southerly winds (gusting up to 130 km/h) during its voyage from Picton to Wellington. The rough conditions through the Strait caused the ferry to turn back and shelter for some hours in Cloudy Bay (near Blenheim).

The southern oscillation and El Niņo

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 (La Niņa) or negative (El Niņo), and a characteristic weather regime developing. The period of the southern oscillation is very irregular, varying between about two and 10 years with an average period of three to four years. However, once established, significant El Niņo and La Niņa episodes can persist for six to 12 months.

In general, very negative values of the oscillation index (El Niņo's) are associated with an increase in the frequency of southerly winds over New Zealand in winter, and south-westerly winds during spring and summer.

The latest El Niņo event, which began in March 1991, resulted in very low rainfall along the West Coast and in South Island hydro-lakes (from May through July). The El Niņo also brought very dry conditions to Gisborne and Hawkes Bay from July through late October.

New Doppler radar used to detect water droplets in the atmosphere. Shown is a southerly flow over the Wellington region on 28 February 1992, with the remains of a severe hailstorm which damaged crops near Nelson.

The most significant El Niņo this century occurred over the spring and summer of 1982–1983, when the oscillation index reached its largest negative value this century and rainfall was well below average in Gisborne and Hawkes Bay.

1.4 Vegetation and wildlife

Uniqueness is a feature of the natural life of New Zealand. Most notable is the absence—apart from two species of bat— of native land mammals. 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 in pre-European 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. As a result most forest plants bear small berries, including the giant conifers (podo-carps), 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.

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 native insects, spiders and snails, and all native earthworms are restricted to New Zealand, as are most native birds and plants, most local freshwater fish (27 species), and all native reptiles (38 species).

The Cromwell Chafer, one of the world's rarest beetles. The beetle has its own conservation reserve — the first in New Zealand to be dedicated to a single invertebrate species.

Table 1.5. 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)3900†43
Bryophytes—
     Mosses1548528
     Liverworts..500..
Ferns and allies2016341
Conifers3020100
Flowering plants1,7001,81384
Earthworms40178100
Landsnails/slugs12520†99
Spiders/harvestmen602500†90
Insects1,1009,46090
Freshwater fish23†2785
Amphibia23100
Reptiles138100
Birds—
     Land/freshwater336557
Mammals—
     Marine1346
     Land332100

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 through 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.

Southland Museum tuataras.

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 1990–1991 from 2 a.m. (N.Z.S.T.) on the first 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.

One of the DSIR's three atomic clocks, which contribute to “standard world time”.

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.

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 1:2,000 000. 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. Government

Interior of temporary Parliamentary Debating Chamber, Bowen House, Wellington.

2.1 Constitution

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. New Zealand is an independent state; a monarchy with a parliamentary government. Queen Elizabeth II has the title Queen of New Zealand.

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. New Zealand's Constitution Act 1986 brings together in one Act the most important statutory constitutional provisions and clarifies the rules relating to the governmental handover of power. The Act deals with the principal components of New Zealand's statutory constitutional provisions: the Sovereign, the Executive, the legislature and the judiciary. The Act and it's provisions are safeguarded by the requirement of a special procedure to make amendments. The Electoral Act 1956 is the only other New Zealand constitutional statute to have such a provision.

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. Some are historic constitutional Acts, such as the Magna Carta and the Habeus Corpus Act 1679.

These Acts are listed and defined in the Imperial Laws' Application Act 1988.

The Crown and the 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 powers of the Governor-General are set out in the Letters Patent 1983, and it is for the courts to decide on the limits of these powers. The Governor-General's main constitutional function is to arrange for the leader of the majority party in Parliament to form a government. Almost all the powers of the Governor-General are now statutory.

The Crown is part of Parliament and the Governor-General's assent is required before bills can become law. The Governor-General is required however, by constitutional convention and the Letters Patent, to follow the advice of ministers. In extraordinary circumstances the Governor-General can reject advice if he or she believes that a government is intending to act unconstitutionally. This is known as the reserve power.

The Sovereign appoints the Governor-General on the Prime Minister's recommendation, normally for a term of five years.

Table 2.1. VICE-REGAL REPRESENTATIVES 1957-1991

Vice-regal representative*Assumed officeRetired
* Honours are specified only if held on retirement from office.
Viscount Cobham, G.C.M.G., T.D.5 Sep 195713 Sep 1962
Brigadier Sir Bernard Fergusson, G.C.M.G, G.C.V.O., D.S.O., O.B.E.9 Nov 196220 Oct 1967
Sir Arthur Espie Porritt, Bt. G.C.M.G., G.C.V.O., C.B.E.1 Dec 19677 Sep 1972
Sir (Edward) Denis Blundell, G.C.M.G., G.C.V.D., K.B.E., Q.S.O.27 Sep 19725 Oct 1977
Rt. Hon. Sir Keith Jacka Holyoake, K.G., G.C.M.G., C.H., Q.S.O.26 Oct 197727 Oct 1980
Hon. Sir David Stuart Beattie, G.C.M.G., G.C.V.O., Q.S.O., Q.C.6 Nov 198010 Nov 1985
His Excellency The Most Reverend Sir Paul Alfred Reeves, G.C.M.G., G.C.V.O.20 Nov 198529 Nov 1990
Her Excellency Dame Catherine Tizard, G.C.M.G., D.B.E.13 Dec 1990 

Her Excellency Dame Catherine Tizard, Governor-General of New Zealand.

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. 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 two-party system however, the Government effectively controls proceedings in Parliament and cases of Government members voting with the Opposition are uncommon.

Recent constitutional reform

The New Zealand Bill of Rights Act 1990. This Act protects certain fundamental rights and freedoms in New Zealand. These rights include freedom of religion, speech and assembly and the right to protection against discrimination as well as fundamental principles of criminal procedure such as the right of access to lawyers and the right to a fair trial.

The rights and freedoms in the Act are not absolute and may be subject to justified limitations. But the Act provides that any limitations must be reasonable, prescribed by law, and demonstrably justified in a free and democratic society.

Unlike some similar documents in other countries the Act is not supreme law. Rather, it is an ordinary statute which can be amended or repealed by simple majority in Parliament. Nor do the Courts have the power to strike down legislation on the basis that is inconsistent with the rights set out in the Act.

However, this does not mean that the Act is a mere statement of rights. The Attorney-General is charged under the Act with the responsibility of alerting Parliament when any provision in a bill before Parliament is inconsistent with those rights. And where the interpretation of a statutory provision is ambiguous, the Courts are required to interpret the provision in a manner consistent with the rights and freedoms in the Act. The Act came into force on 25 September 1990.

Electoral reform. The Electoral Poll Bill was introduced to the House of Representatives on 9 May 1991 and referred to the Electoral Law Select Committee. The bill provides for a poll on electoral reform to be held no later than 30 September 1992. The poll would be divided into two parts. The first part would require voters to choose one of two proposals. The proposals are to either retain the present electoral system or to change it. The second part of the poll would ask voters to select one of three reform options as their most preferred electoral reform option. The reform options are the preferential voting system, the mixed member proportional representation system and the supplementary member system.

If a majority of voters vote for the retention of the present system no further poll on the matter will be held. If a majority of voters vote for a change to the present system then a further poll will be conducted in conjunction with the 1993 General Election. This poll would ask voters to choose between the present first-past-the-post system and the reform option most preferred by voters at the 1992 referendum.

The Electoral Amendment Act 1991 made some significant changes to the composition and procedures of the Representation Commission. The Representation Commission is the body responsible for determining New Zealand's electoral boundaries.

The Act makes provision for the appointment of additional Maori members to the Commission for the purpose of defining the boundaries of Maori seats.

The Act also enables all parties represented in Parliament and any party that achieves five percent of the votes cast at the previous general election to make submissions to the Commission. Previously only parties represented in Parliament and independent Members of Parliament could make submissions.

Privacy of information. In August 1991, the Government introduced the Privacy of Information bill. The bill is currently being studied by a select committee of Parliament. Its purpose is to promote and protect individual privacy in general accordance with the 1980 OECD Guidelines on the protection of Privacy and Transborder flows of Personal Data.

The bill provides that requests by natural persons for information about themselves are to be dealt with in accordance with the new Act rather than the Official Information Act when the relevant sections of the new Act come into force. These sections which are modelled on Parts II and IV of the Official Information Act extend entitlements to access to personal information to information held by private sector agencies. The right of review by the Ombudsmen in respect of refusal of personal information requests is to be replaced by a complaints procedure involving the proposed new office of the Privacy Commissioner. If settlement of the complaint cannot be secured by the Commissioner proceedings may be taken to the Equal Opportunities Tribunal, renamed the Human Rights Tribunal. The Official Information Act is amended accordingly in the bill.

2.2 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.

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.

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.

The House of Representatives is 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.

Table 2.2. PARLIAMENTARY SEATS HELD BY POLITICAL PARTIES AFTER GENERAL ELECTIONS 1960-1990

ElectionTotalNationalLabourOthers

* Social Credit/Democrats.

† New Labour.

Source: Department of Justice.

1960804634 
1963804535 
19668044351*
1969844539 
1972873255 
1975875532 
19789251401*
19819247432*
19849537562*
1987974057 
19909767291†

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, allowing a maximum debating time of two hours. 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). This procedure enables 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 principles of the bill. Following this the bill is considered by the whole House ‘in committee’, 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 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. 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 43rd New Zealand Parliament was called following the General Election of 27 October 1990 and sat from 28 November 1990 to 19 December 1990. The first session concluded when Parliament was prorogued on 18 January 1991, and a new session was called to discuss the outbreak of hostilities on the Gulf. New Zealand's first female Governor-General, Her Excellency Dame Catherine Tizard, delivered the speech from the Throne at the opening of the second session of the 43rd Parliament on 22 January 1991. The House had, on 19 December 1990, adjourned until 19 February 1991. As no power was then vested in the Speaker (or in anyone else) to appoint an earlier meeting time while the House stood and adjourned, the only way in which an accelerated meeting could be effected was by the Crown proroguing Parliament and summoning it to meet in a new session.

One hundred and twenty nine public Acts were passed during the second session of the 42nd Parliament and nine during the first session of the 43rd Parliament.

Table 2.3. PARLIAMENTARY SESSIONS

ParliamentPeriod of session
Source: Clerk of the House of Representatives.
Fortieth{7 April 1982-17 December 1982
April 1983-16 December 1983
31 May 1984-14 June 1984
Forty-first{15 August 1984-12 December 1985
26 February 1986-21 July 1987
Forty-second{16 September 1987—12 December 1989
14 February 1990-6 September 1990
Forty-third{29 November 1990-18 January 1991
22 January 1991-

Table 2.4. SUMMARY OF PARLIAMENTARY PROCEEDINGS

 1987-89*1990†1991‡

* First session, Forty-second Parliament.

† Second session, Forty-second Parliament.

‡ First session, Forty-third Parliament.

Source: Clerk of the House of Representatives.

Sitting days1845610
Public bills introduced by Government1804312
Public bills referred to select committees150339

Bowen House, Wellington. Temporary location of Parliament, while restrengthening and restoration work is carried out on Parliament Buildings.

Parliamentary Service.(Te Ratonga Whare Paremata.) The Parliamentary Service provides administrative and support services to the members of Parliament and the House of Representatives. The service is not a department of the executive government nor is it responsible to a minister. It is controlled by the Parliamentary Services 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 from the Opposition.

Among the services provided by the Parliamentary Service are:

  • — personal staff to assist members of Parliament in Parliament House and in the electorate;

  • — the 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;

  • — catering services (Bellamys) for members, staff and guests;

  • — security, 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 of the House of Representatives and the Parliamentary Counsel Office.

Salaries and allowances of parliamentarians. These are set out in Table 2.5 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 $52 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 $118 for each night a member requires overnight accommodation away from home by reason of such attendance. Instead of receiving night allowances for each night spent in Wellington on parliamentary business, a member may elect to receive a Wellington Accommodation Allowance to cover costs incurred in retaining or maintaining accommodation. The maximum amount that can be claimed in a period of six months is $6,200.

Table 2.5. PARLIAMENTARY AND MINISTERIAL SALARIES AND ALLOWANCES

Annual salary or allowance payable from 1 July 1990
Source: Clerk of the House of Representatives.
Salaries—$        
Members of the Executive
Prime Minister162,000
Deputy Prime Minister127,000
Minister of the Crown113,000
Minister of the Crown without portfolio91,500
Parliamentary under-secretary88,000
Officers of the House of Representatives
Speaker113,000
Chairman of Committees90,500
Deputy Chairman of Committees68,500
Leader and Deputy of the Opposition
Leader of the Opposition113,000
Deputy Leader of the Opposition88,000
Whips
Senior Government Whip78,000
Senior Opposition Whip78,000
Junior Government Whip73,500
Junior Opposition Whip73,500
Members of Parliament
Member of Parliament63,500
Allowances—
Prime Minister29,500
Deputy Prime Minister13,000
Minister of the Crown12,000
Minister of the Crown without portfolio9,500
Parliamentary under-secretary89,500
Minister of External Relations and Trade (additional)6,000
Speaker—basic expenses allowance12,000
     (additional allowance (plus day, travelling and house and garden maintenance allowances)8,500
Chairman of Committees—basic expenses allowance9,500
     (additional allowance (plus day and night allowances)7,500
Deputy Chairman of Committee—basic expense allowances6,200
     (additional allowance (plus electorate, day and night allowances)675
Leader of the Opposition—basic expenses allowances (plus house, house and grounds maintenance, day, night and travelling allowances)12,000
Deputy Leader of the Opposition—basic expenses allowances6,200
     (additional allowance (plus day and night allowances)4,800
Members—basic expenses allowances (plus electorate, day and night expenses)6,200

PARLIAMENTARY REPRESENTATION
Average number of votes cast per seat at general elections

Members of Parliament.Table 2.6 shows the percentage of women members of Parliament, and members of both sexes of various ages elected in the 1990 general election compared to the voting population.

Table 2.6. PARLIAMENTARY REPRESENTATION

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

*As at 1 November 1991.

† 1986 Census figures.

Source: Clerk of the House of Representatives.

Women16.551.2
Age groups, both sexes—
     18-29 years3.128.4
     30-3920.621.3
     40-4950.516.9
     50-5922.712.3
     60 years and over3.121.1

Table 2.7 lists members of the House of Representatives at the end of August 1991. The final results of the 1990 general election were printed in the report The General Election (printed as Parl. paper E.9).

Table 2.7. HOUSE OF REPRESENTATIVES, FORTY-THIRD PARLIAMENT

Prime Minister—Rt. Hon. J. B. Bolger.
Leader of the Opposition—Rt. Hon. Mike Moore.
Speaker—Hon. Robyn Gray.
Chairman of Committees—R. J. Gerard.
Clerk of the House—D. G. McGee.
Member of Parliament*Year of birthPrevious occupationElectoral district

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

† Government member.

‡Resigned November 1991.

§Won Tamaki by-election 14 February 1992.

Source: Clerk of the House of Representatives.

Anderson, Robert†1936FarmerKaimai
Anderton, Jim1938Company directorSydenham
Armstrong, John†1935Company directorNew Plymouth
Austin, Hon. Margaret1933TeacherYaldhurst
Banks, Hon. John†1946RestaurateurWhangarei
Birch, Hon. W. F.†1934Consultant surveyor-engineerMaramarua
Blincoe, John1952Research officerNelson
Bolger, Rt. Hon. J. B.†1935FarmerKing Country
Bradford, Mr Max†1942Secretary-General and consultantTarawera
Braybrooke, Geoff1935Sales managerNapier
Burdon, Hon. Philip†1939Company directorFendalton
Campion, Cameron†1943FarmerWanganui
Carter, John†1950Local government officerBay of Islands
Caygill, Hon. David1948Barrister and solicitorSt Albans
Clark, Rt. Hon. Helen1950LecturerMt Albert
Cliffe, Bruce†1946Managing directorNorth Shore
Cooper, Hon. Warren†1933MotelierOtago
Creech, Hon Wyatt†1946AccountantWairarapa
Cullen, Hon. Dr Michael1945LecturerSt Kilda
Dalziel, Lianne1960Trade unionistChristchurch Central
Davies, Sonja1923Vice-president of Federation of LabourPencarrow
Dunne, Hon. Peter1954Deputy chief executive officerOhariu
East, Hon. Paul†1946Barrister and solicitorRotorua
Elder, Jack1949TeacherWest Auckland
English, Bill†1961FarmerWallace
Falloon, Hon. John†1942Farm management consultantPahiatua
Fletcher, Chris†1955Dairy farm managerEden
Gerard, Mr†1937FarmerRangiora
Graham, Hon. D. A. M.†1942Barrister and solicitorRemuera
Grant, Jeff†1958FarmerAwarua
Gray, Hon. Robin†1931FarmerClutha
Gregory, Dr Bruce1937Doctor of medicineNorthern Maori
Gresham, Peter†1933AccountantWaitotara
Hancock, Hamish†1947LawyerHorowhenua
Hasler, Marie†1945Retail managerTitirangi
Hawkins, George1946TeacherManurewa
Hilt, Peter†1942Company directorGlenfield
Hodgson, Peter1950VeterinarianDunedin North
Hunt, Rt. Hon. Jonathan1938TeacherNew Lynn
Kelly, Graham1941Trade unionistPorirua
Kidd, Hon. Doug†1941Barrister and solicitorMarlborough
Kimber, Wayne†1949Surveyor/plannerGisborne
Kyd, Warren†1939Barrister and solicitorClevedon
Lange, Rt. Hon. David†1942Barrister and solicitorMangere
Laws, Michael†1957Public relations consultantHawke's Bay
Lee, Hon. Graeme†1935Company directorCoromandel
Luxton, Hon. John†1946FarmerMatamata
McCardle, Peter†1951Public servantHeretaunga
McClay, Hon. Roger†1945TeacherWaikaremoana
McCully, Hon. Murray†1953Public relations consultantEast Coast Bays
McIntosh, Ms Gail†1955AccountantLyttelton
MacIntyre, Hamish1951DoctorManawatu
McKinnon, Hon. Don†1939Real estate agentAlbany
McLauchlan, Joy†1948Executive officerWestern Hutt
McTigue, Hon. Maurice†1940FarmerTimaru
Maharey, Steve1953University lecturerPalmerston North
Marshall, Hon. Denis†1943Farmer and company directorRangitikei
Matthewson, Hon. Clive1944Civil engineerDunedin West
Maxwell, Hon. R. F. H.†1941FarmerTaranaki
Meurant, Ross†1947Police inspectorHobson
Moir, Margaret†1941Company directorWest Coast
Moore, Rt. Hon. Mike1949Freezing workerChristchurch North
Muldoon, Rt. Hon. Sir Robert, G.C.M.G., C.H.†1921AccountantTamaki‡
Munro, R. J. S.†1946Barrister and solicitorInvercargill
Myles, Gilbert1945Company directorRoskill
Neeson, Brian†1945Real estate agentTe Atatu
Neill, Alec†1950Barrister and solicitorWaitaki
O'Regan, Hon. Katherine†1946FarmerWaipa
Peters, Ian†1941Real estate agentTongariro
Peters, Hon. Winston†1945Barrister and solicitorTauranga
Prebble, Hon. Richard1948Barrister and solicitorAuckland Central
Reeves, Graeme†1947Barrister and solicitorMiramar
Revell, Ian†1948Police officerBirkenhead
Richardson, Hon. Ruth†1950Legal adviser/farmerSelwyn
Robertson, H. V. Ross1949Industrial engineerPapatoetoe
Robertson, John†1951AccountantPapakura
Rogers, Mr Trevor†1943ImporterOtara
Ryall, Tony†1964AccountantEast Cape
Shipley, Hon. Jenny†1952FarmerAshburton
Simich, Clem1939General ManagerTamaki§
Smith, Dr Lockwood†1948Managing directorKaipara
Smith, Nick†1964EngineerTasman
Sowry, Roger†1958Retail managerKapiti
Steel, Tony†1941TeacherHamilton East
Storey, Hon. Rob†1936President of Federated FarmersWaikato
Sutherland, Larry1951Trade unionistAvon
Swain, Paul1951Trade unionistEastern Hutt
Tapsell, Hon. Dr Peter M.B.E.1930Doctor of medicineEastern Maori
Tennet, Elizabeth1953Trade unionistIsland Bay
Thomas, Grant†1941Company directorHamilton West
Thorne, Grahame†1946Television producerOnehunga
Tirikatene-Sullivan, Hon. Mrs T. W. M.1932Political scientistSouthern Maori
Tizard, Judith1956Electorate secretaryPanmure
Upton, Hon. Simon†1958Student/teacherRaglan
Wetere, Hon. K. T.1935FarmerWestern Maori
Whittaker, Jeff†1940PharmacistHastings
Wilde, Hon. Fran1948JournalistWellington Central
Williamson, Hon. Maurice†1951Planning analystPakuranga

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. It is the main vehicle by which the executive decides on major policy issues and legislative proposals, and it coordinates the work of ministers. The Cabinet has a system of communities which can examine subjects in detail and recommend specific policy measures to Cabinet.

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.

Table 2.8. PRIME MINISTERS 1960-1991

Prime Minister*Term(s) of office
* Honours are specified only if held on retirement from office.
Rt. Hon. Sir Keith Jacka Holyoake, G.C.M.G., C.H.National12 Dec 1960-7 Feb 1972
Rt. Hon. John Ross Marshall (later Sir)National7 Feb 1972-8 Dec 1972
Rt. Hon. Norman Eric KirkLabour8 Dec 1972-d31 Aug 1974
Rt. Hon. Wallace Edward Rowling (later Sir)Labour6 Sep 1974-12 Dec 1975
Rt. Hon. Sir Robert David Muldoon, G.C.M.G., C.H.National12 Dec 1975-26 Jul 1984
Rt. Hon. David Russell Lange (later Sir)Labour26 Jul 1984-8 Aug 1989
Rt. Hon. Geoffrey Winston Russell Palmer (later Sir)Labour8 Aug 1989-4 Sep 1990
Rt. Hon. Michael Kenneth MooreLabour4 Sep 1990-2 Nov 1990
Rt. Hon. James Brendan BolgerNational2 Nov 1990

Table 2.9. NEW ZEALAND GOVERNMENT, AT 1 NOVEMBER 1991

Source: Cabinet Office.
Governor-General
 
Her Excellency Dame Catherine Tizard, G.C.M.G., D.B.E.
Official Secretary: Ken Richardson, Q.S.O.
 
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. J. B. Bolger, Prime Minister.
Hon. D. C. McKinnon, Deputy Prime Minister, Minister of External Relations and Trade, Minister of Foreign Affairs, Minister of Pacific Island Affairs.
Hon. W. F. Birch, Minister of Labour, Minister of State Services, Minister of Employment, Minister of Immigration.
Hon. Ruth Richardson, Minister of Finance.
Hon. P. East, Attorney-General.
Hon. J. Falloon, Minister of Agriculture, Minister of Forestry.
Hon. D. L. Kidd, Minister of Maori Affairs, Minister of Fisheries.
Hon. P. Burdon, Minister of Commerce.
Hon. S. Upton, Minister of Health, Minister of Research, Science and Technology, Minister of Crown Research Institutes.
Hon. J. Banks, Minister of Police, Minister of Tourism, Minister of Recreation and Sport.
Hon. Jenny Shipley, Minister of Social Welfare, Minister of Women's Affairs.
Hon. W. Cooper, Minister of Defence, Minister of Local Government.
Hon. D. A. M. Graham, Minister of Justice, Minister for Disarmament and Arms Control, Minister of Cultural Affairs.
Hon. Dr. Lockwood Smith, Minister of Education.
Hon. M. McTigue, Minister of State Owned Enterprises, Minister of Railways, Minister of Works and Development.
Hon. R. Storey, Minister of Transport, Minister of Lands, Minister for the Environment.
Hon. D. Marshall, Minister of Conservation, Minister of Science (DSIR).
Hon. J. Luxton, Minister of Housing, Minister of Energy.
Hon W. Creech, Minister of Revenue, Minister for Senior Citizens.
Hon. M. Williamson, Minister of Communications, Minister of Broadcasting, Minister of Statistics.
Ministers not in Cabinet
Hon. Katherine O'Regan, Minister of Consumer Affairs.
Hon. R. McClay, Minister of Youth Affairs.
Hon. G. Lee, Minister of Internal Affairs, Minister of Civil Defence.
Hon. R. F. H. Maxwell, Minister of Business Development.
Hon. M. McCully, Minister of Customs.
 
Other responsibilities
Ministers with other vote or statutory responsibilities are indicated below. Statutory titles are shown in italics.
Rt. Hon. J. B. Bolger,Minister in Charge of the New Zealand Security Service.
Hon. W. F. Birch, Accident Compensation Corporation.
Hon. Ruth Richardson, Earthquake and War Damage Corporation, National Provident Fund.
Hon. P. East, Serious Fraud Office, Leader of the House, Audit Department, Minister of Crown Health Enterprises.
Hon. J. Falloon, Minister for Racing.
Hon. D. Kidd, Minister in Charge of Iwi Transition Agency (disestablished 31 December 1991).
Hon. P. Burdon, Minister for Industry, Associate Minister of External Relations and Trade, Minister for Trade Negotiations.
Hon. W. Cooper,Minister in Charge of War Pensions, Television New Zealand Ltd, Radio New Zealand Ltd.
Hon. Dr. Lockwood Smith,Education Review Office, National Library.
Hon. M. McTigue, Associate Minister of Finance, Airways Corporation of New Zealand Limited, Coal Corporation of New Zealand Limited, Electricity Corporation of New Zealand Ltd, Forestry Corporation of New Zealand Limited, GCS Limited, Government Property Services Limited, Land Corporation Limited, New Zealand Post Limited, New Zealand Rail Limited, New Zealand Timberlands Limited, Timberlands Westcoast Limited, Works and Development Services Corporation (NZ) Limited.
Hon. R. Storey,Minister of Survey and Land Information, Minister in Charge of Valuation Department.
Hon. D. Marshall, Associate Minister of Agriculture, Associate Minister of Employment.
Hon. J. Luxton, Associate Minister of Maori Affairs, Associate Minister of Education.
Hon. W. Creech, Associate Minister of Finance, Associate Minister of Social Welfare, Government Superannuation Fund, Minister in Charge of the Public Trust Office.
Hon. M. Williamson, Associate Minister of Health, Associate Minister of Research, Science and Technology.
Hon. Katherine O'Regan, Associate Minister of Women's Affairs, Associate Minister of Health.
Hon. R. McClay, Associate Minister of Education, Associate Minister of Social Welfare, Associate Minister of Pacific Affairs.
Hon. R. F. H. Maxwell, Associate Minister of Employment, Associate Minister of Immigration.
Hon. M. McCully, Associate Minister of Tourism.

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. 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. 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.

VOTER TURNOUT
Percentage of enrolled electors voting at general elections

Table 2.1. VOTING PATTERNS: 1981-1990

YearElectors on Master RollValid votesInformal votesSpecial votes disallowedVotes cast to electors on Master Roll
Source: Department of Justice.
19812,034747180130389985026391.44
19842,111651192920175654203293.71
19872,1146561831777111844043389.06
19902,2021571824092101804284385.24

Electoral boundaries. The boundaries of electorates are revised every 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 seven members. Four are officials, the Surveyor-General, the Government Statistician, the Chief Electoral Officer 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.

In determining the boundaries of the Maori electoral districts, the commission's membership is supplemented by the Chief Executive of the Ministry of Maori Development and two nominations from the House of Representatives (one each from the Government and the Opposition) and appointed by the Governor-General. These additional members to the commission must be Maori.

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.

Provisional boundaries are then settled, maps drawn up and the availability of boundary details announced in the New Zealand Gazette. Any objections and counter-objections to the provisional electoral boundaries are then considered by the Representation Commission, which makes a final decision on the boundaries that define the new electoral districts.

1990 ELECTORAL DISTRICTS - NORTH ISLAND

General election results. A triennial general election of members of Parliament was last held on 27 October 1990. The previous election was held on 15 August 1987. The total number of electors on the master roll for the 1990 election was 2,202,157. A total of 1,877,115 votes were cast; representing 85.24 percent of electors on the master roll.

Table 2.11. GENERAL ELECTION RESULTS

Political partyNumber of MPs
198119841987*1990

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

Source: Department of Justice.

Democrats22--
Labour43565729
National47374067
New Labour---1
                    Total92959797

1990 ELECTORAL DISTRICTS - SOUTH ISLAND

Table 2.12. GENERAL ELECTIONS—VOTES FOR POLITICAL PARTIES

Political partyValid votesPercentage of total valid votes
198119841987*19901981198419871990

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

†Excludes special votes disallowed.

Source: Department of Justice.

Democrats372,056147,162105,09130,45520.657.635.741.67
Green---124,915---6.85
Labour702,630829,154878,448640,91539.0142.9847.9635.14
Mana Motuhake8,3325,9899,78910,8690.460.310.530.6
National698,508692,494806,305872,35838.7835.8944.0247.82
New Labour---94,171---5.16
Others19,77718,01726,83850,4091.100.941.462.76
      Total valid votes1,801,3031,929,2011,831,7771,824,092100.00100.00100.00100.00
Informal votes†8,9987,56511,18410,180
      Total1,810,3011,936,7661,842,9611,834,272

Table 2.13. SEATS CONTESTED BY POLITICAL PARTIES, 1990 GENERAL ELECTION

Political partySeats contested

* All those contesting one seat only.

Source: Department of Justice.

Labour97
National97
New Labour93
Democrats92
Green71
Social Credit68
McGillicudy Serious60
Independent39
Christian Heritage18
Communist League10
New Zealand5
Mana Motuhake4
People's Party4
Blokes Liberation Front3
Legalise Marijuana2
N.Z. Representative2
Other*12
          Total candidates677

General Licensing Poll. In 1990 the national triennial liquor licensing poll was abolished.

Term Poll. A term poll was held in conjunction with the 1990 General Election. The voting issue was the length of the parliamentary term. The two options offered were either a continuation of the three year term or an extension of the term to four years. The voting was approximately 70 percent in support of retaining a three year term.

Table 2.14. RESULTS OF TERM POLL 1990

Voting issue1990% of vote
Source: Department of Justice.
For a 3 year parliamentary term1,258,01869.33
For a 4 year parliamentary term556,55930.67

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 or by the Governor-General in Council or the Administrator of the Government, 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 1980 conferred new rights to appear and be heard at an inquiry 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. In addition, any person who satisfies the commission that any evidence may adversely affect his or her interests has a right to be given an opportunity to be heard in respect of the matter. Usually such terms of reference for a commission are quite specific. 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 part 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.

THE PUBLIC SERVICE
Ratio of male to female staff

2.3 State sector

The state sector is responsible for putting the policies of the Government into effect. It comprises government departments, crown agencies, and state-owned enterprises. The state sector is commonly distinguished from the public sector which is made up of public service departments covered by, and listed in, the First Schedule of the State Sector Act 1988.

At 30 June 1991 the number of staff employed in public service departments was 49,290—this compares with 58,038 at 30 June 1989. Much of the decrease in staff levels is due to agencies being converted from departments (as defined in the State Sector Act 1988) to other forms of state sector agency.

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.

State sector reform

Over the last six years Government has reformed the machinery of government, across both the state sector and, in particular, departments and agencies. The management reforms contained in the State Sector Act 1988 and the Public Finance Act 1989 are now consolidating. The new emphasis on outputs, rather than on inputs, has focused decision making on reaching the goals of the Government. The new financial reporting requirements provide much better information for those making decisions. The effectiveness of the reforms in improving performance in the public sector has been the subject of a recent review undertaken by the State Services Commission.

The process of state sector reform is continuing. In the area of science and technology the government's policy is to restructure the principal science departments, or parts of departments, into a series of research institutes that will be known as Crown Research Institutes (CRIs). The CRIs are intended to focus on future possibilities for New Zealand industries. These institutes will have a strong commercial orientation toward the long term technological needs of industry. Departments which will be affected by these changes are the Ministry of Agriculture and Fisheries, the Department of Health and the Ministry of Transport. The Ministry of Agriculture and Fisheries' farm advisory and management service is to be turned into a state-owned enterprise on 1 July 1992 to open the way for further commercialisation of business (see also chapter 13, Science and technology).

Policy changes

Government policy concerning state assets is to sell those it lacks reason to retain. The view of the Government is that public ownership of business enterprises does not provide the right incentives to manage such enterprises successfully. The sales of state assets is also a part of a fiscal strategy to reduce the level of public debt. Several state owned enterprises and trading units of government departments have been sold. Recent sales (in addition to those listed in the 1990 Yearbook) include Telecom Corporation of New Zealand and several state-owned forests.

Widespread changes to the role of the Government in social policy have been initiated. Significant changes in housing, welfare, health, accident compensation and superannuation are under way. The changes include:

  • focusing social assistance in those in genuine need;

  • making providers of social services more responsive to the needs of individual and their families; and

  • providing services that the country can afford.

State Services Commissioner

The State Sector Act 1988 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 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 negotiate their conditions of employment and maintain, in association with chief executives, a senior executive service for the public service, and to concur with health and education sector councils over the appointment of conditions of employment of health and education sector chief executives;

  • To negotiate conditions of employment of employees in the state services and to concur with health and education sector organisations over the conditions of employment of their employees;

  • 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, Science and Defence.

Equal employment opportunities. The State Services Commission has the responsibility to promote, develop and monitor equal employment opportunity policies and programmes within the public service departments (under section 6 of the State Sector Act 1988).

An Equal Employment Opportunity programme, as defined in the State Sector Act, is a programme which “is aimed at the identification and elimination of all aspects of policies, procedures and other institutional barriers that cause or perpetuate, or tend to cause or perpetuate, inequality in respect to the employment of any persons or group of persons.”

Each department is required to develop and publish an annual Equal Employment Opportunity programme and to report to the commission on the extent to which the department has implemented the programme.

The commission provides advice and resources to departments on Equal Employment Opportunity, evaluates the presented programmes and monitors the progress reports. The information derived from these processes is then fed back to the departments to assist them in their planning.

Table 2.15 lists the departments of the public service as set out in the first schedule of the State Sector Amendment (No. 2) Act 1989.

Table 2.15. CHIEF EXECUTIVES OF GOVERNMENT DEPARTMENTS*

DepartmentTitleName

*As at 1 February 1992.

† The Iwi Transition Authority and Ministry of Maori Affairs were disestablished at 31 December 1991. In their place the Ministry of Maori Development was established at 1 January 1992.

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
Cultural Affairs, Ministry ofChief ExecutiveC. H. Blake
CustomsActing ComptrollerG. W. Ludlow
Defence, Ministry ofSecretaryG. C. Hensley
Education, Ministry ofChief ExecutiveM. L. O'Rourke
Education Review OfficeChief ExecutiveJ. E. Aitken
Environment, Ministry for theSecretaryR. W. G. Blakeley
External Relations and Trade, Ministry ofSecretaryR. F. Nottage
Forestry, Ministry ofSecretaryJ. M. Valentine
Government Superannuation FundActing Chief ExecutiveR. J. Wilderspin
Health, Department ofDirector-GeneralJ. C. Lovelace
Housing CorporationActing Director-GeneralD. J. Swallow
Inland RevenueCommissionerD. R. Henry
Internal Affairs, Department ofChief ExecutiveR. P. Cameron
Justice, Department ofSecretaryD. Oughton
Labour, Department ofSecretaryC. J. McKenzie
Maori Development, Ministry of†Chief ExecutiveH. T. Gardiner
National LibraryNational LibrarianP. G. Scott
National Provident FundChief ExecutiveW. J. Perham
Pacific Island AffairsChief ExecutiveA. Rongo-Raea
Prime Minister and Cabinet, Department ofChief ExecutiveS. Murdoch
Public Trust OfficePublic TrusteeW. B. R. Hawkins
Research, Science and Technology, Ministry ofChief ExecutiveB. V. Walker
Scientific and Industrial Research, Department ofDirector-GeneralM. A. Collins
Serious Fraud OfficeChief ExecutiveC. Sturt
Social Welfare, Department ofDirector-GeneralA. Kirkland
State Services CommissionState Services CommissionerD. K. Hunn
Statistics, Department ofGovernment StatisticianL. W. Cook
Survey and Land Information, Department ofDirector-GeneralW. A. Robertson
Transport, Ministry ofSecretaryM. C. Bazley
The TreasurySecretaryG. C. Scott
ValuationValuer-GeneralH. F. McDonald
Women's Affairs, Ministry ofActing SecretaryM. Evans
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 as at December 1991.

Agriculture and Fisheries, Ministry of.(Te Manatu Ahuwhenua, Ahumoana.) The ministry provides policy advice to government designed to create a domestic and international environment favourable to the sustainable and productive use of New Zealand's agricultural and fisheries and resources. It also implements the Government's policies and programmes to drive maximum benefit to the nation from farming, horticulture and fishing.

MAF's programmes aim to protect our competitive advantage as an export nation by monitoring animals, fish and plants, and preventing the introduction of exotic pests and diseases. Also, through quality assurance, it ensures that our export primary produce meets agreed standards. See chapter 15, Agriculture and section 16.3 Fisheries.

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

Ministry of Commerce.(Te Manatu Tauhokohoko.) The ministry has advisory, programme and administrative functions in business development, competition policy, business and intellectual law, tariff policy, trade remedies, communications, regional development, energy and resources, consumer affairs and tourism.

The ministry services the portfolios of Commerce, Communications, Consumer Affairs, Energy, Tourism, Industry and Business Development.

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.

Cultural Affairs, Ministry of.(Te Manatu Tikanga-a-Iwi.) The aim of the ministry is to maximise understanding, appreciation, access and participation in New Zealand arts and culture both in New Zealand and overseas, and to promote the enhancement of New Zealand's cultural identity.

The ministry provides advice to Government and the Minister of Cultural Affairs on cultural matters and discharges services relating to the Cultural Affairs portfolio.

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 section 22.1, Administration and development of 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 the procurement, replacement expenditure or repairs which entail major changes to capability or involve major re-equipment. See section 3.4, Defence.

Education, Ministry of.(Te Tahuhu o te Matauranga.) The ministry is responsible for providing policy advice to the Minister of Education on all aspects of education from early childhood to tertiary; overseeing the implementation of approved policies and ensuring the optimum use of resources devoted to education. See chapter 8, Education.

Education Review Office.(Te Tari Arotake Matauraga.) The purpose of the Education Review Office is to improve the educational performance of schools and early childhood centres through independent evaluation of the standards of achievement of all learners. The performance of schools and centres is checked against the goals and objectives set out in their charters. The office also comments, conducts special reviews and reports on Special Education Service, Early Childhood Development Unit, Ministry of Education, the teacher advisory services of the Colleges of Education, home-based schooling and registration of private educational institutions. See section 8.1, Education.

Environment, Ministry for the. (Te Manatü 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 Ozone Layer Protection Act 1990 and the Resource Management Act 1991, plus it also has responsibility for regulations made pursuant to the Resource Management Act. See section 14.2, Environmental and resource management.

External Relations and Trade, Ministry of.(Te Manatü Ähuatauga Täwähi, Tauhoko.) The Ministry of External Relations and Trade conducts the Government's business with the government's of foreign countries, and with international organisations. It reviews New Zealand's relations with other countries as a whole and advises the Government on where advantages to New Zealand lie. The ministry draws together the various aspects of New Zealand's national interests, including relevant domestic interests, to achieve most benefits for New Zealand in relation to the Government's security, political, trade and economic objectives.

The ministry administers a network of posts overseas to promote positive political relationships, transact official business and support the international operations and initiatives of the government. See section 3.1, Relations with other countries.

Forestry, Ministry of. (Te Manatü Ngäherehere.) 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 and information services, and the collection of forestry related statistics. Other responsibilities of a regulatory nature include quarantine and forest disease control. The research functions of the ministry will be transferred to a new Crown Research Institute in 1992.

Government Superannuation Fund.(Te Putea Penihana.) The function of the fund is to administer the Government Superannuation Fund Act 1956.

Health, Department of.(Te Tari Ora.) The Department of Health is the Government's principal agent and adviser on health. The principal functions of the Department are: (a) to provide the Minister of Health with analysis of health issues and expert advice on health problems; (b) to develop and promulgate health policy; (c) to administer health legislation, regulations and the public funding of health programmes; (d) to ensure the provision of essential health services; (e) to encourage positive interaction between the funders, providers and users of health services; (f) to fund programmes which promote health and prevent disease; (g) to collect and disseminate health information; (h) to monitor and review the outcome of health policies and programmes; and (i) to oversee the effective and efficient provision of health services to ensure that public funds are used appropriately and to best advantage to achieve the outcomes which the Government is seeking. See chapter 7, 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, 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.(Te Tari Taiwhenua.) The mission of the department is to provide services to the Government and the community that relate to the nation's identity, heritage and administration. It provides services that: (a) protect and develop essential aspects of the nation's character, identity and heritage, including the public record and citizenship rights; (b) support the Crown and Government agencies, taking into account the provisions of the Treaty of Waitangi, and including the establishment and nurture of new agencies; (c) provide the link between central and local government; (d) help people to develop their communities; (e) safeguard the public interest in certain leisure activities; and (f) protect people against disaster, and promote fire and building safety.

Iwi Transition Agency.(Te Tira Ahu Iwi.) This agency was disestablished on 31 December 1991. Its functions were taken over by the Ministry of Maori Development. See section 5.4, Maori society.

Justice, Department of. The department has a wide variety of functions including: 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 Employment Contracts Act 1991, the Factories and Commercial Premises Act 1981, the Construction Act 1959 and the Immigration Act 1987.

Maori Affairs, Ministry of.(Te Manatü Mäori). This ministry was disestablished on 31 December 1991. Its functions were taken over by the Ministry of Maori Development. See section 5.4, Maori society.

Maori Development, Ministry of (Te Puni Kokiri). The ministry began operation on 1 January 1992, taking over the residual functions of the Ministry of Maori Affairs and the Iwi Transition Agency (both of which were disestablished on 31 December 1991). This new specialist agency has a narrower focus than previous similar departments, with the main initiatives being the improvement of Maori education, health, employment and economic opportunities.

The broader functions of the ministry include: policy advice to Government on matters affecting Maori; brokerage services to Maori people and agencies, to maximise access to resources in social services and economic resource development; monitoring the performance of other government agencies in meeting Maori needs; and maintaining existing programmes pending their successful placement in mainstream departments or agencies by 30 June 1993.

There are four units within the ministry: the Education Commission, the Health Promotion Unit, the Training Unit and the Economic Resource Development Unit. See section 5.4, Maori society.

National Library of New Zealand.(Te Puna Mätauranga o Aotearoa.) The Library's functions are to: co-ordinate 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 10.3, Books and libraries.

National Provident Fund. The fund 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.

Pacific Island Affairs, Ministry of. This small group advises the Minister of Pacific Island Affairs, while providing administrative back-up and co-ordination of the above council and other programmes. The ministry establishes and maintains liaison with and between Pacific Island communities in New Zealand and government agencies; monitors, reports and promotes issues related to the communities; and is developing a resource base on Pacific Island matters. See section 5.5, Pacific Island Polynesian population.

Police, New Zealand.(Ngä 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. The New Zealand Police is a state agency. See section 9.4, Police.

Prime Minister and Cabinet, Department of the. The department provides policy advice to the Prime Minister; constitutional advice and secretarial services to the Prime Minister and the Cabinet; support services to the Governor-General; communications services; and management for the Vice-Regal residences. The department consists of: the Policy Advisory Group, the Cabinet Office, the domestic and External Security Secretariat, Government House and, from 1 July 1991, the External Assessments Bureau which provides intelligence assessments on developments overseas to the Government.

An important 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. 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; the maintenance of international science agreements; and the facilitation of programmes for the dissemination of information on research, science and technology. See section 13.2, Organisation of science.

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. DSIR and other government departments, which provide scientific research services, will be reshaped into 10 Crown Research Institutes. See section 13.2, Organisation of science.

Serious Fraud Office. The Serious Fraud Office, which became operational on 26 March 1990, is primarily an operational department whose role is to detect and investigate cases of serious or complex fraud and expeditiously prosecute offenders. Based in Auckland, the office is the only government department to have its Head Office outside Wellington. See section 21.2, Commercial framework.

Social Welfare, Department of.(Te Tari Toko i te Ora.) The principal functions of the Department of Social Welfare are (a) to administer Parts I and III of the Social Security Act 1964, the Social Welfare (Transitional Provisions) Act 1990, the Disabled Persons Community Welfare Act 1975, the Children and Young Persons and their Families Act 1989, the Social Security (Reciprocity with Australia) Act 1987, the Social Security (Reciprocity with the United Kingdom) Act 1983 and the War Pensions Act 1954; (b) to advice the Minister on the Development of Social Welfare Policies for New Zealand; (c) to provide such welfare services as the Government may from time to time require; (d) to maintain close liaison with and encourage co-operation and co-ordination among any organisations and individuals (including departments of State and other agencies of the Crown) engaged in social welfare activities; (e) to undertake and promote research into aspects of social welfare; (f) to provide such administrative services as the Minister may from time to time direct to such boards, councils, committees, and agencies as he or she may direct; (g) to receive and disburse maintenance payments and enforce maintenance orders and registered agreements under the Family Proceedings Act 1980, and (h) under the Civil Defence Welfare Plan, in time of disaster–to make relief payments authorised by government to the homeless, and–to make payments authorised by government for hosts for billeting evacuees from a disaster area.

State Services Commission,(Te Kömihana o ngä Tari Käwanatanga.) See ‘State Services Commissioner’ above.

Statistics, Department of.(Te Tari 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 Körero Whenua.) The department is the principal government (civil and military) survey and mapping, and land information agency. Through the Office of Crown Lands the department is also the government's principal Crown land administering agency. 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, Public Works Act 1981, Land Settlement Promotion and Land Acquisition Act 1952, Land Act 1948, the New Zealand Geographic Board Act 1946 and Crown Grants Act 1908. In addition in excess of 50 other statutes empower the department with specific responsibilities for land transactions. Proposals for the Reserves and Other Lands Disposal Bill are also collated by the department. See section 14.1, Land resources and ownership.

Tourism, Ministry of. This ministry operates from within the Ministry of Commerce, providing policy advice to, and representing, the Minister of Tourism and the Government on policy issues relevant to the tourism sector. It advises the Government on the outputs it purchases from the New Zealand Tourism Board, manages government grant schemes relating to the tourism sector, manages land at Rotorua and the Wairakei Tourist Park, and is responsible for the Maori Arts and Crafts Institute Act 1991.

Tourism Board, New Zealand. The main functions of the New Zealand Tourism Board (formerly known as the New Zealand Tourist and Publicity Department) are to: market and promote New Zealand as a desirable destination overseas; promote and progress New Zealand's tourism development and initiate programmes to foster this development; administer jointly funded public and private sector marketing programmes; and undertake research of visitor arrivals, overseas tourism markets and regional tourism. The New Zealand Tourism Board is headed by a nine member private sector executive board via the Ministry of Tourism. The board has eight overseas marketing offices. See section 11.6, Leisure.

Trade and Development Board, New Zealand. The New Zealand Trade Development Board's function is the development and expansion of New Zealand's foreign exchange earnings. It has an independent board drawn from predominantly private sector backgrounds. The board operates on a project basis with task-based teams of export consultants. There is a network of trade commissioners in our most significant overseas markets. See section 22.1, Administration and development of trade.

Transport, Ministry of.(Te Manatä Waka.) The Ministry of Transport promotes safe, efficient transport that is environmentally and socially responsible and enhances the economy. The Ministry is responsible for administering about 20 principal Acts including the Civil Aviation Act, the Shipping and Seamen Act and the Transport Act.

The Ministry has four operating divisions and a small corporate office. The divisions comprise units dealing with air, land and maritime transport and the Meteorological Service. The latter will be devolved with research activities going into a Crown research institute and forecasting activities being established as a State owned enterprise. There are proposals to establish a separate Civil Aviation Authority and to merge the Traffic Safety Service, currently part of the Land Transport Division, with the New Zealand Police.

Treasury, The. 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. 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 house and rural 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 mö ngä Wähine.) 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 information programmes designed to increase women's knowledge of and familiarity with the scope and processes of public policy-making. See section 5.3, Human rights, immigration and citizenship.

Youth Affairs, Ministry of.(Te Tari Taiohi.) This ministry was established to represent the youth of New Zealand; to ensure that the concerns of the young people (defined as people from the ages of 12 to 25) of New Zealand are heard by the makers of policies, services and legislation, and to allow young people to make a contribution to the cultural, social and economic development of this country.

One of the four main areas of the ministry is the Conservation Corps. This programme provides young people with opportunities for employment, training and personal development through skill acquisition and involvement in conservation activities of benefit to local communities.

Non-departmental public bodies

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.

Crown agencies. These organisation are defined in the Public Finance Act 1989. ‘Crown agency’ means any entity over which the Crown is able to exercise control as a result of—

  • its ownership of a majority of the shares of the entity; or

  • its power to appoint a majority of the members of the governing body of the entity; or

  • significant financial interdependence–but does not include a department, Office of Parliament, or a state enterprise listed in the First Schedule of the State-Owned Enterprises Act 1986.

State-Owned Enterprises. State-owned enterprises are companies established by the Government to mange its trading activities. The principle objective of every state enterprise is to operate as a successful business and, to this end, to be:

  • as profitable and efficient as comparable businesses that are not owned by the Crown;

  • a good employer; and

  • an organisation that exhibits a sense of social responsibility by having regard to the interests of the community in which it operates and by endeavouring to accommodate or encourage these when able to do so.

An annual statement of intent is signed between the shareholding government ministers and the board of directors of the respective state-owned enterprise. Performance of the enterprise is monitored against this statement.

New Zealand Planning Council

In the July 1991 Budget the Government announced that the New Zealand Planning Council (Te Kaunihera Whakakaupapa Mo Aotearoa) would be abolished; the Planning Council was disestablished on 25 September 1991.

For 14 years, the Planning Council had provided a focus for better information and consultation on the key medium-term issues in New Zealand's development. The council's main task was to monitor and report on trends, prospects, issues, and options in relation to social, economic, cultural and environmental development. The council's work was built around expert monitoring and support groups. The groups included Economic, Population, and Social Monitoring Groups, Income Distribution Group, Maori Round Table, and the National Sectorial, Employment and Environmental Programmes.

The council reported directly to the Government, but retained independence from Government in its choice of work and in publishing its reports. The council's publications foster discussion and understanding of issues among private organisations and the public generally.

In 1990/1991 the council published many reports and papers including: The Australian Maori Population; The Fully Employed High Income Society; Where To Now? New Zealandin the 1990s; Expanding Our Horizons: New Zealand in the Global Economy; Small Business is Big Business and Making a Market for Energy Efficiency.

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. The position is independent of the executive government and only the Governor-General, upon an address from the House of Representatives, can end the tenure. The Controller and Auditor-General and the persons acting under his or her delegation are collectively called ‘the Audit Office’.

The constitutionally important role of the Audit Office, as set out in the Public Finance Act, is to act as a monitor on behalf of Parliament and to control issues of money out of the Crown Bank Account. The Audit Office has to be satisfied that all issues from the Crown Bank Account for the government's expenditure requirements are within the appropriations and other authorities granted by Parliament. This role is crucial to the ability to 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. The office plays a key part in the accountability by these organisations. It also conducts periodic reviews of financial control systems, 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.

Considerable emphasis is placed on reporting the results of this work. The most visible results are their financial audit reports tabled in Parliament each year.

If shortcomings are discovered during an audit, the principal recourse of the Audit Office is to report to the management of the organisation, to a minister, or to Parliament and its select committees. If there is a deficiency in money or stores, the Auditor-General has the power to surcharge the persons involved to recover the amount. 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. The purposes of the Act are: to provide proper access to official information to the people of New Zealand, to encourage their participation in the making and administration of laws and policies; to promote the accountability of ministers and officials; and to protect official information consistent with the public interest and the preservation of personal privacy.

With the exception of the Parliamentary Service, the Official Information Act covers all government departments, state-owned enterprises, and a range of statutory bodies. It does not include courts, tribunals (in relation to their judicial function), or some judicial bodies. All local authorities and statutory boards are covered under either the Official Information Act 1982 or the Local Government Official Information and Meetings 1987.

The Acts provide special rights of access to personal information. The definition of a ‘person’ can include a sole corporation and a body of persons. 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’.

Among the criteria to be considered, when judging whether information should be withheld, are that if the information is released will it prejudice the security, defence, or economic international relations of New Zealand; the maintenance of law and order; the security or defence of the Cook Islands, Tokelau, Niue, or the Ross Dependency; and the safety of any person. The protection of the privacy of natural persons is an important issue, however this consideration may be overturned if it is in the public interest to make the information available.

Ombudsmen can review a decision to refuse information; the investigation is private and free of charge. The formal recommendation of an Ombudsman is binding unless overridden by a minister in accordance with a formal procedure. This procedure necessitates the publishing of the surrounding facts in the New Zealand Gazette.

An information guide concerning access to personal and official information is available from the Official Information Unit of the Department of Justice. In order to provide sufficient data to ease the identification of material and assist in the lodging of requests, reference can be made to the Directory of Official Information. Published every two years, the Directory is a comprehensive guide to all the organisations covered by the Act including their structure, functions, policies, documents held, contact officers and other listings which facilitate the access of information.

Parliamentary Commissioner for the Environment, Helen R. Hughes.

Ombudsmen

The principal function of the Parliamentary Commissioner for Investigations (Ombudsman) is to enquire into complaints relating to administrative decisions of government departments and related organisations, education boards and all local authorities. Under the Ombudsmen Act 1975 there is provision for the appointment of a Chief Ombudsman and one or more other ombudsmen, in either temporary or permanent positions.

All investigations undertaken by ombudsmen are conducted in private. When an ombudsmen believes a complaint can be sustained, they report their opinion to the government department or organisation concerned along with any recommendation for action. A copy of this report is also made available to the responsible minister. At the local government level, the ombudsman reports the finding to the organisation, and provides a copy of his report to the mayor or chairperson.

Ombudsmen also investigate recommendations made to a minister by any government department, organisation or employee. Similarly, they look into any recommendations made to a full council or board of a local organisation by any committee, sub-committee, officer, employee, or member. It is also the responsibility of the Ombudsmen to investigate any complaints on decisions for request of official information.

Ombudsmen have no authority to investigate complaints against private companies and individuals, decisions of judges, complaints directed at ministerial decisions, or at the full council or local government. They can also decide that certain complaints, although within their sphere, are better suited to other available avenues of administrative redress.

Table 2.16. COMPLAINTS TO THE OMBUDSMEN, 1990-91*

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

*Year ended 30 June.

Source: Office of the Ombudsmen.

Declined, no jurisdiction257141
Declined or discontinued section 174641376
Resolved in course of investigation19526451
Resolved informally958422
Sustained, recommendation made352012
Sustained, no recommendation made327-
Not sustained3941607
Formal investigation not undertaken, explanation,
advice, or assistance given75613512
Still under investigation as at 31 March61431133
                    Total28421129144

2.4 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 as the powers of local authorities are conferred by Parliament.

Local authorities fall into these categories: regional authorities, territorial authorities and special purpose authorities. Many territorial authority areas contain one or more communities and these are administered by community boards. Community boards are not separate local authorities, they are advocates for their community and any power they have is determined by their parent territorial authority.

All local authorities are established by Act of Parliament, and their powers are defined in the Act. Each local authority operates within a specific district, and all are controlled by their own councils and boards. Funding is derived from rates, levies on other local authorities and/or charges derived from trading utilities under their control. Area health boards are expected from this as they are totally funded from central government.

Central government is precluded from involvement in local government decision-making and is unable to overturn decisions made by local authorities. Although not subject to review by central government, local authorities are accountable to the Ombudsmen and the Controller and Auditor-General in the areas of administration and financing. There are also avenues for review of local government decisions by appeal to the courts and specialised tribunals. Beyond this local authorities are subject to the general power of judicial review by the High Court.

Much emphasis in local government is placed on accountability to the electors. The Local Government Official Information and Meetings Act 1987 promotes open conduct of local authority meetings and sets our rights of access to official information.

Local government reorganisation

The local Government Commission was required by an amendment to the Local Government Act 1974 to prepare reorganisation schemes by 1 July 1989 for a new system of local government with the following features:

  • regional councils with primary responsibilities for resource management planning and consents. The boundaries of regions were to conform as far as practical with river catchment boundaries;

  • territorial authority (city councils and district councils) with primary responsibilities for the delivery of day-to-day services to local communities;

  • special purpose local authorities were to be eliminated as far as possible.

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

  • 14 regions, with directly elected regional councils undertaking statutory functions such as regional planning and civil defence, maritime planning and those functions previously exercised by catchment boards, pest destruction boards, noxious plant authorities and, in many cases, harbour boards. (The Gisborne region is unique in that it is administered by a district council, which also has regional powers);

  • 73 territorial authorities (excluding Chatham Islands County);

  • seven special purpose authorities under the commission's jurisdiction (and now reduced to five); and

  • 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. The relevant section provides:

  • recognition of the existence of different communities in New Zealand;

  • recognition of the identities of different communities in New Zealand;

  • definition and enforcement of appropriate rights within those communities;

  • scope for communities to make choices between different kinds of local public facilities and services;

  • for the operation of trading undertakings of local authorities on a competitively neutral basis;

  • for the delivery of appropriate facilities and services on behalf of central government;

  • recognition of communities of interest;

  • for the efficient and effective exercise of the functions, duties, and powers of the components of local government; and

  • for the effective participation of local persons in local government.

The legislation also includes a significant new accountability regime. Local authorities are required to conduct their affairs in an open and proper manner, separate their regulatory and non-regulatory activities, and adequately inform local communities of their activities. Emphasis is placed on setting objectives and measuring performance. Each local authority is required to prepare a report outlining what it proposes to do over the next year, and how this will be financed, and at the end of the year, report on what it has achieved in terms of its objectives. Each local authority must operate a person policy complying with the principle of a ‘good employer’, as set out in the Labour Relations Act 1987.

The legislation also introduced 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 or establishment as a business unit 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.

Regional councils

The 1989 reform of the structure of local government saw the number of regions reduced from 22 to 14, and now only the Chatham Islands County, because of its isolation, remains outside any region. All regional councils are directly elected, and have the following functions:

  • the functions under the Resource Management Act 1991;

  • the functions under the Soil Conservation and Rivers Control Act 1941;

  • control of pests and noxious plants;

  • harbour regulations and marine pollution control;

  • regional civil defence; and

  • transport planning, licensing and funding of passenger transport operators.

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.

Since the election of the National Government in October 1990, the role of regional councils has been under review, and at the time of going to press (January 1992), the Government is considering their future.

NEW LOCAL GOVERNMENT BOUNDARIES - NORTH ISLAND

NEW LOCAL GOVERNMENT BOUNDARIES - SOUTH ISLAND

Table 2.17. 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

Territorial authorities

Territorial authorities in New Zealand (city councils and district councils) are directly elected, general authorities with responsibility for a wide range of functions. These include: roading, water supply, sewage disposal, rubbish disposal, parks and reserves, libraries, land subdivision, pensioner housing, health and building inspection, urban passenger transport, parking controls, and civil defence.

Cities and districts. 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 50000;

  • is predominantly urban; and

  • is a distinct entity and a major centre of activity within the region.

Table 2.18. CITIES AND DISTRICTS CONSTITUTED ON 1 NOVEMBER 1989

Cities/districtsCouncil members
Source: Department of Internal Affairs.
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
Banks 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

Community boards

Community boards are partly elected by the community and partly appointed by the territorial authority. Community boards can 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 established 159 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 four and 12 members, with at least four elected. Up to a third of board membership may be 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, sewage, 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.

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

  • The carrying out of functions delegated by the parent territorial authority.

However, such functions as borrowing money, levying rates, making bylaws, the owning of property and the appointing of staff cannot be delegated.

Special purpose local authorities

Many types of special purpose local 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 five remain. These are: the Aotea Centre Board of Management, the Auckland Electric Power Board, the Canterbury Museum Trust Board, the Council Office of the Auckland Institute and Museum and the Marlborough Forestry Corporation. Whole classes of special purpose authorities (most notably catchment boards, harbour boards, pest destruction boards and land drainage boards) disappeared. The functions of those abolished authorities have been reallocated to either regional or territorial authorities.

Functions and powers of local authorities

Local authorities derive their functions and powers from governing statutes. The Local Government Act 1974 is the main statute for territorial authorities, regional councils, and community boards. Special purpose local authorities come under other statutes. Several statutes apply to all local authorities, e.g., the Local Authorities Loans Act 1956.

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 local authorities bylaws must be approved by the Minister of Local Government.

Local authorities can promote legislation about matters affecting areas within their jurisdiction which they are not empowered to deal with already. Where permanent or major additional powers are sought, a local bill must be prepared for the consideration of Parliament. If this is enacted its 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 local authority and community board elections will be conducted at the same time.

In the year before an election regional and territorial authorities are normally required to review the number of members and the number and size of their electorates. In 1991 local authorities had the option of not conducting a review but keeping the membership and the wards or constituencies as in 1989.

Electorates are known as wards in the case of territorial authorities and constituencies in the case of regions. Territorial authorities had the option of deciding whether members would be elected by the electors of the district as a whole. Regions must be divided into constituencies.

The purpose of the review was to give effective representation to communities of interest and fair representation to electors. The review process provided for objections and appeals by the public and where necessary the final decisions were made by the Local Government Commission.

Voting procedures. Any territorial authority may decide whether an election is to be conducted by attendance at a polling booth or by post. The method of casting a vote is similar to parliamentary elections; the surnames of candidates are printed on the ballot paper and electors place a tick after the name of the candidate they wish to vote for.

Local authority franchise. Every parliamentary elector is automatically qualified as a residential elector of a local authority if the address at which the person is registered on the electoral roll is within the district of the local authority.

Ratepayer voting was re-introduced by the Local Government Amendments Act 1991. This entitles ratepayers who are not residents to enrol and vote in any region, district or community in which they pay rates. Rolls are compiled by territorial authorities, who usually compile the rolls and conduct the elections for other authorities as well. The information for the residential electoral roll is obtained from the parliamentary electoral database and the ratepayer roll is compiled from nomination forms sent to ratepayers.

Membership of local authorities. Any person who is a parliamentary elector may be elected to any number or combination of regional councils, territorial authorities and community boards. Vacancies may be filled either by election or appointment, dependent on the act under which the local authority was constituted.

Remuneration of members. 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 payable to members are determined by the Minister of Local Government. Maximum and minimum salary and allowance levels are set, allowing the council or board the discretion to decide the actual rate within the prescribed limits.

Local Government Commission

The present (eighth) Local Government Commission comprises three members appointed by the Minister for Local Government. Since the enactment of major amendments to the Local Government Act in 1989, the general function of the Commission is to act as a quasi-judicial appeal authority to hear and determine:

  • Appeals against decisions on objections to draft reorganisation schemes.

  • Appeals and counter-objectives relating to ward and membership proposals of a local authority, following its triennial review of representation and membership.

  • Proposals for the reorganisation, or abolition, of communities where there is disagreement between a community board and its parent authority.

In addition to the above roles, the commission is the determining authority for matters still requiring resolution following the implementation of the major local government reorganisation in 1989. In particular the commission may investigate property dealings of former authorities, and also approve changes in use of the special funds of former authorities.

2.5 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 white borders.

New Zealand coat of arms

The New Zealand coat of arms is pictured on the title page 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 and adopted formally as the New Zealand national hymn in 1940. God Defend New Zealand, and the traditional God Save The Queen are the national anthems of New Zealand, both being of equal status as national anthems appropriate to the occasion.

Dame Whina Cooper, well-respected Maori leader and member of the Order of New Zealand.

Table 2.19. 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, Ata 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 place, 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 whakaahu 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 mau 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

  • 2.1 Department of Justice.

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

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

  • 2.4 Department of Internal Affairs; Local Government Commission.

  • 2.5 Department of Internal Affairs.

Further information

Constitution

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

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 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.

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

State sector

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

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

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.

Chapter 3. International relations and defence

RNZAF's new trainer, the Aermacchi MB-339C.

3.1 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. New Zealand had 50 diplomatic and consular posts. Multiple accreditation allows some New Zealand representatives to cover other countries from their bases. In 1991, a new post in Madrid was opened.

The Ministry of External Relations and Trade has the primary responsibility for advising and assisting the Government on its relations with the outside world. 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. The posts also perform services overseas on behalf of all government departments and offer 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 Overseas Posts, and the Diplomatic List: Diplomatic and Consular Representatives in New Zealand.

South Pacific

New Zealand has diplomatic missions in most of the independent countries of the South Pacific and maintains regular contact on a range of bilateral and regional issues. Eighty percent of bilateral development assistance is directed to the South Pacific.

A special relationship exists between New Zealand and the Cook Islands, and Niue. The Cook Islands became a self-governing state in free association with New Zealand in 1965, and Niue in 1974. Both governments have full legislative and executive competence, and can conduct their own external relations and enter into international agreements. But a 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’. Tokelau is described in section 3.3, New Zealand territories.

The region (not including Australia) is of growing importance to New Zealand, with exports of $589 million in 1990-91. Fiji, Papua New Guinea and the French Territories are the most important markets. Imports, amounting to about $128 million, came principally from Fiji and Nauru. New Zealand has taken special measures to foster trade with these countries and New Zealand investment in the region. A regional trade agreement, South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA), provides unrestricted duty-free access to New Zealand (and Australia) on a non-reciprocal basis for almost all of the products exported by island countries. The Pacific Islands Industrial Development Scheme (PIIDS) provides financial assistance and incentives for joint ventures between New Zealand companies and Pacific Island 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's armed forces undertake mutual assistance programmes, joint exercises and maritime surveillance which provides immediate help after natural disasters such as cyclones, and undertakes civil development projects in isolated areas

In 1971 the South Pacific Forum was created to build up regional co-operation in the South Pacific. Meetings are held annually, recently at Vila in 1990 and Pohupei in 1991. 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 established the Forum Secretariat, which is tasked with the implementation of forum decisions. It works on a broad range of economic and political questions. This agency is located in Suva. The forum 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. Recently the forum encouraged the establishment of an autonomous regional environment agency–the South Pacific Regional Environment Programme (SPREP). This is located in Apia, Western Samoa.

The Pacific Forum Line (PFL) is another endeavour in South Pacific co-operative relations. Ten of the region's nations operate the shipping line; it charters three vessels and is based at Apia. Together with other governments in the region New Zealand has made additional contributions since the PFL began operations in 1978.

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). Complete free trade in goods was achieved on 1 July 1990 providing for the progressive removal of obstacles to the flow of services and investment between the two countries. The agreement will be reviewed again in 1992. 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. 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. There is free movement of people under the Trans-Tasman Travel Arrangement.

Asia

New Zealand has developed a pattern of regular economic consultations with the main Asian trading partners 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 ASEAN countries include some of the world's fastest growing economies. New Zealand has also followed closely developments in Indochina, especially efforts to get a peace settlement in Cambodia.

Cultural interchange with the countries of Asia has increased steadily. The opening of access, the development of air links and the growth of tourism have also widened the range of contact.

The relationship with Japan, New Zealand's second largest export market and source of imports in 1990, 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 ties. 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. New Zealand continues to seek improved access for other commodities–dairy and horticultural products in particular.

New Zealand has developed a good political relationship with the People's Republic of China, a vast potential market. Although trade has fallen since 1988 there are good longer term prospects.

EMBASSIES AND HIGH COMMISSIONS

Americas

United States. New Zealand's relationship with the United States is one of the most significant, varied and co-operative that New Zealand maintains. Shared values underpin close governmental and private sector contacts across a broad range of bilateral and multilateral activities. The United States is one of New Zealand's three most important export markets and a major source of New Zealand imports. In the multilateral trade field, the two countries espouse similar open market philosophies. Co-operation is also close on international environmental matters and in Antarctic scientific research. Programmes for scientific, cultural and academic exchange maintain an awareness of New Zealand in the United States and promote the interchange of ideas and experience.

Canada.New Zealand and Canada have long enjoyed a positive and close relationship, based on shared bilateral Commonwealth, United Nations and Pacific Basin interests. Canada is an important market for our agricultural goods, particularly beef. The two countries work closely on a range of issues, including defence and security, environmental concerns, the Pacific and international economic matters, for example in the APEC forum and as members of the Cairns Group in the Uruguay Round of GATT multilateral trade negotiations.

The bilateral economic relationship is governed by the 1982 Trade and Economic Cooperation Agreement, which provides for regular consultations on trade and economic matters, as well as a framework for closer investment, joint venture and technology transfer activities.

Latin America and the Caribbean.New Zealand is represented in Latin America by embassies in Mexico and Chile. The Ambassador in Mexico is cross-accredited to Colombia and Peru, and the Ambassador in Chile to Argentina, Brazil and Uruguay. The embassies' efforts are supported by honorary consular representatives in Bogota, Lima, Buenos Aires, Sao Paolo and Montevideo. The High Commissioner in Ottawa is accredited to the following Caribbean countries: Barbados, Guyana, Jamaica and Trinidad and Tobago.

Trade is the focus of New Zealand's relationship with Latin America and the Caribbean, mainly exports of dairy products and meat. There are opportunities for New Zealand involvement in agricultural, forestry and energy technology. New Zealand provides a modest amount of economic and social development assistance to the region. New Zealand's interests in international issues coincide with those of a number of Latin American and Caribbean countries in areas such as international trade, environment, Antarctica and disarmament.

Western Europe

The European Community, which is New Zealand's largest market and the source of about a quarter of its imports, is moving towards the establishment of a Single Market. The process is scheduled to be completed by the end of 1992. It will provide an opportunity for New Zealand to boost trade with the community in new ranges of products.

New Zealand's relationship with the twelve-member European Community is very important. An agreement that New Zealand should have regular Ministerial-level consultations with the Presidency of the EC was reached in 1990, and the first meeting was held during the Luxembourg Presidency in 1991. Close contact is maintained with the European Commission in Brussels, and with member states, on a range of political and trade issues.

Negotiations on agricultural access are an important part of New Zealand's dealings with the EC. Restrictions exist on access to the EC for dairy products, and difficulties also arise with the sheepmeat trade. Other New Zealand primary products, such as apples, kiwifruit, fish and timber have largely unrestricted access.

These European countries are also partners in investment, in new technology and expertise. They are a source for tourists and entrepreneurial migrants. In May 1991 a Science and Technology Arrangement with the European Commission was signed. It is hoped that this step will bring about further areas of useful co-operation.

During 1991 a new diplomatic post was opened in Madrid. The small posts in Athens and Vienna were closed, and their responsibilities transferred to Rome and Bonn respectively. Several European posts had their staffing resources strengthened in order to correspond better with the major political changes which have occurred in Europe since 1989.

Central Europe

Developments over the last two year have changed the face of Central Europe. The former German Democratic Republic has been reunited with the Federal Republic of Germany. The overthrow of Communist regimes and the holding of free elections in many of the countries in the region has brought to power governments committed to political pluralism and economic reform. All are moving from centrally planned to market economies, and are looking to strengthen their links with Western Europe and particularly with the European Community.

New Zealand is offering aid to the political and economic reform of Central Europe. Funds have been contributed for technical assistance, vocational and agricultural training, and the promotion of the business ventures between New Zealand and Central European companies. A number of joint ventures, mainly in the field of agricultural technology, have been established in Poland, Hungary and Czechoslovakia.

As part of a process of restructuring New Zealand's representation in Europe, the embassy in Vienna, which was accredited to a number of Central European countries, was closed. Responsibility for New Zealand's relations with Poland, Hungary and Czechoslovakia has been transferred to the embassy in Bonn.

Soviet Union

Rapid political change continued in the Soviet Union. Following the dissolution of the Union new arrangements have been devised to replace existing state machinery, in particular the implementation of a federal style commonwealth named the Commonwealth of Independent States (C.I.S.). Fifteen independent states constitute the commonwealth, these are: Armenia; Azerbaijan; Belarus; Estonia; Georgia; Kazakhstan; Kyrgyzstan; Latvia; Lithuania; Moldova; Russia; Tajikistan; Turkmenistan; Ukraine; and Uzbekistan. Treaties on economic and military relations are yet to be finalised.

Trade remains the central component of New Zealand's economic relations with the Soviet Union. The Soviet market is our eighth largest: exports last year amounted to $293 million (mainly dairy products and wool). Trade was for a time disrupted by delays in payment. These have now been resolved in the case of dairy products and new contracts were concluded. Although $20 million is still outstanding for wool, exporters continued to explore possible new arrangements to permit trade to resume.

The Dairy Board subsidiary, SOVENZ, has continued to expand its joint venture projects in Siberia and in the Soviet Far East. Some 100 New Zealanders are currently employed on short-term contracts in these regions.

Middle East

New Zealand has significant economic interests in the Middle East. Its oil-rich economies are important importers of New Zealand agricultural exports. New Zealand has embassies in Tehran and Riyadh and accreditations to many other Middle Eastern countries. New Zealand has also been involved in international peacekeeping efforts in the Middle East for a number of years.

In 1990-1991, the Gulf War was the predominant factor in the region. New Zealand supported United Nations Security Council resolutions from the outset of Iraq's invasion of Kuwait in August 1990. New Zealand was an active participant in the multinational force which, in accordance with those resolutions, liberated Kuwait from Iraq. New Zealand's participation was based on the international principles at stake: support for UN-authorised action to resist an attempt by one state to extinguish the independent existence of another, a fellow member of the United Nations.

After Kuwait's liberation, New Zealand was closely involved in the international post-war humanitarian and reconstruction efforts. New Zealanders served on a personal basis in the UN's demarcation of the Kuwait/Iraq border. The Government made available military medical personnel to serve with UNSCOM–the international operation designed to find and destroy Iraq's weapons of mass destruction and of chemical warfare. New Zealand's Embassy in Iraq was evacuated during the crisis; it has not resumed activities.

The Gulf War opened up a possibility of all-party negotiations leading to long term settlement of the Arab/Israel dispute. New Zealand has maintained an evenhanded policy on the Arab/Israel issue for more than 40 years, consistently upholding the right of the Palestinian people to self-determination and, equally consistently, Israel's right to exist within secure borders. Since 1982 New Zealand has contributed a contingent to the Sinai Multinational Force and Observers (MFO) based on the Egypt/Israel border in the Sinai. The Prime Minister, Rt Hon. J Bolger, visited Egypt in October 1991. In the course of the visit, he spent a day with the MFO.

Africa

In recent years there has been increased contact between New Zealand and Africa. New Zealand has received visits by the Foreign Ministers of Nigeria, Zambia, Zimbabwe and Mozambique. The Prime Minister, Rt Hon. Jim Bolger, visited Zimbabwe and Kenya in October 1991–the former in the context of the Commonwealth Heads of Government Meeting held in Harare.

New Zealand's diplomatic coverage in Africa has expanded with the Harare High Commission, in Zimbabwe, now accredited to Kenya, Tanzania, Zambia, Mozambique, Botswana, and Namibia. New Zealand posts in London, Paris and Riyadh are accredited to Nigeria, Algeria and Egypt respectively.

New Zealand has had a long standing involvement in development co-operation in Africa. It also contributes to Commonwealth and other multilateral programmes. New Zealand has also contributed to international relief appeals.

In the international arena New Zealand is active on the issue of apartheid. New Zealand has implemented all economic and other measures against South Africa recommended by the United Nations and the Commonwealth and supports the Commonwealth's programmed management approach to sanctions and the policy of selective sporting contacts. New Zealand does not have diplomatic relations with South Africa.

Total trade with African countries accounts for only a small percentage of New Zealand's global trade. The major exports to the region are dairy products, fish, wool, textiles and electrical equipment. Imports from Africa include cocoa, coffee, sisal and tobacco. Algeria is New Zealand's most important market in the continent.

The Africa Information Centre, in Wellington, serves as a source of information on Africa and African issues for New Zealanders. African countries supply the centre with information material.

Assistance to developing countries

New Zealand's Official Development Assistance (ODA) is a co-operative process, a partnership between peoples and countries. It is pursued bilaterally through governments, through multilateral organisations, through non-government organisations active in developing countries and through the private sector.

The development process encourages individuals, groups and governments to participate actively in all decisions influencing their lives, and through this participation, to attain greater self-reliance and self-sufficiency.

For the 1989–1990 financial year, New Zealand's expenditure on the Official Development Assistance programme was $146.93 million. A new budgetary system was introduced in 1990-1991, under which $148.66 million was allocated by the Government as Payments on Behalf of the Crown (POBOC) for direct transfers of New Zealand goods, services and funding to developing countries through the ODA programme. The overall bilateral allocation was $ 129.60 million, over half of which ($74.43 million) was designated for ODA in the South Pacific. Allocations to the multilateral schedule totalled $17.73 million. Table 3.1 shows the 1990–1991 ODA allocation broken down into some major subtotals.

Table 3.1. OFFICIAL DEVELOPMENT ASSISTANCE PROGRAMME ALLOCATIONS, 1990–1991

Source: Ministry of External Relations and Trade.
Bilateral schedule—$(million)
      Cook Islands14,420 
      Niue10,030 
      Western Samoa6,200 
      Tokelau6,130 
      Papua New Guinea5,110 
      Fiji4,700 
      Tonga4,330 
      Other Pacific Island Countries11,810 
      South Pacific Regional Programmes11,697 
                    Subtotal 74,427
ASEAN countries9,580
Other country programmes 3,710
Relief operations, voluntary agencies, etc.4,710 
Education and training37,173 
                    Subtotal41,883
                    Total bilateral schedule129,600
Multilateral schedule—
Commonwealth agencies1,385
United Nations agencies6,225
International financial institutions9,663
Other organisations453
                    Total multilateral schedule17,726
Supplementary estimates and transfers1 336
                    Total official development assistance148,662

Human resources development is a vital feature of the development programme. At current levels, one quarter of ODA expenditure is directed to education and training. This includes the tuition, travel, and living costs of some 700 students from developing countries (692 as at August 1991) nominated by their home governments for ODA Study Awards, and more than 3000 private students from developing countries whose tuition costs are paid for by the ODA Programme under the Fees Scholarships Programme. Under a further short term specialist training and work attachment scheme, 102 men and 12 women from a dozen developing countries received training in 1990. Other aspects of human resource development include advisers and instructors for on-the-job training in the home country. often associated with projects forming part of bilateral New Zealand ODA programmes.

As well as making financial contributions to Commonwealth and UN agencies which run education and training programmes, the ODA programme meets 4 percent of the recurrent budget of the University of the South Pacific. In 1990, 178 third country scholarships were offered to enable students in South Pacific countries to study at educational institutions in the region such as the University of the South Pacific in Fiji and the Solomon Islands College of Higher Education.

This emphasis on human resource development reflects the New Zealand Government's conviction that increasing literacy and learning are fundamental to closing the gap between the developed and developing worlds. It also reflects the Government's conviction that effective study and training makes friends abroad for New Zealand.

Multilateral assistance extends New Zealand's capacity to deliver support to areas of need in regions where New Zealand does not have diplomatic representation. New Zealand participates in international financial institutions, such as the International Development Association (World Bank) and the Asian Development Fund; United Nations agencies, e.g. the United Nations Development Programme; Commonwealth agencies, e.g. the Commonwealth Fund for Technical Cooperation; and other multilateral aid, development and humanitarian organisations, e.g. the International Committee for the Red Cross. 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 South Pacific regional organisations, such as the Pacific Forum Secretariat, the South Pacific Commission, the Forum Fisheries Agency, the South Pacific Regional Environment Programme and the Pacific Islands Industrial Development Scheme.

Voluntary Agency support is also an important party of New Zealand's development cooperation. This currently takes the form of annual grants to Volunteer Service Abroad (VSA), the Voluntary Agency Support Scheme (VASS) and the non-Governmental organisation (NGO) co-ordinating body, the Council for International Development (CID). The VASS operates as a subsidy scheme for programmes supported by New Zealand NGOs in all regions of the less developed world. Recommendations for VASS funding of projects are made by a Project Selection Committee. From 1991–1992 the VASS will also incorporate the Women in Development fund for appropriate activities in the South Pacific, which began in 1988–1989.

3.2 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.

During 1990 New Zealand maintained its firm commitment to UN peacekeeping with its personnel contribution to peacekeeping operations in Iran (UNIIMOG), Lebanon (UNTSO), Pakistan (UNMCTT), Angola (UNAVEMII), Namibia (UNTAG), the latter also comprising a contingent of 32 police. In addition to the provision of personnel New Zealand also contributes financially to peacekeeping operations (see section 3.4, Defence).

New Zealand contributed over $4.6 million to humanitarian relief work in 1990–1991 with nearly $1.75 million going to relieve the destruction and hardship caused by Cyclone Ofa which struck island states of the South Pacific in February 1990. To date (January 1992) $1.5 million in aid (out of a predicted $6 million) has been donated to Western Samoa in the wake of Cyclone Val. ‘Val’ struck the island on 10 December 1991 and caused more extensive damage than 1990's Cyclone Ofa.

Grants worth $1.6 million were made to relief schemes established by various international agencies in the Middle East to assist victims of the Gulf crisis. Support worth $200,000 was provided to the United Nations Border Relief Operation to assist Cambodian refugees located in camps on the Thai border and another $400,000 was given to various UN relief agencies for work inside Cambodia. The Government also contributed $500,000 to the work of the United Nations High Commissioner for Refugees (UNHCR) in 1990–1991, half for core budget activities and half for general relief work. Other contributions were made to specific UNHCR programmes in the Middle East and Indo-China. A voluntary contribution of $200,000 was passed to the Relief and Works Agency for Palestinian Refugees in the Near East and $850,000 was given to the World Food Programme. An annual grant of $850,000 was made to the UN Children's Fund (UNICEF). A special contribution of $200,000 was made to Save the Children Fund for work in Sudan. A voluntary contribution of $20,000 was made to the UN Disaster Relief Organisation. A contribution of $300,000 was also made to the UN Secretary-General's special cyclone relief appeal for Bangladesh.

In addition to its contributions to the humanitarian work of the UN and its agencies New Zealand provided a voluntary contribution to the International Committee of the Red Cross (ICRC) of $200,000. Further grants of $50,000 each were given to Red Cross emergency programmes in Ethiopia, Bangladesh, the Papua New Guinean island of Bougainville and for victims of the Iranian earthquake. Another $100,000 was given to the New Zealand Red Cross Society to enable them to deploy New Zealand personnel in refugee relief activities in a number of countries from Afghanistan to Kampuchea.

Other contributions were also made to assist various relief efforts following natural disasters in Peru ($25,000) and the Philippines ($100,000).

Human rights issues, including United Nations measures to eliminate torture, discrimination against women, and racism and racial discrimination, remain an important concern. During 1990 New Zealand became the first country to ratify the Second Optional Protocol to the International Covenant on Civil and Political Rights abolishing the death penalty. It also presented its eighth and ninth consolidated report to the Committee on the Elimination of Racial Discrimination. New Zealand has maintained its financial support of the UN's voluntary funds in support of human rights, contributing during 1990 to the separate funds to assist victims of torture, for advisory services, and for indigenous populations.

With the assistance of UNESCO and the Commonwealth Secretariat, New Zealand organised the first training seminar for South Pacific officials on the International Covenant on Civil and Political Rights, and the International Covenant on Economic, Social and Cultural Rights, in Rarotonga in 1990. In 1991 New Zealand, Australia and the United Nations Division for the Advancement of Women ran a seminar for South Pacific governmental and non-governmental representatives on the Convention on the Elimination of All Forms of Discrimination Against Women, also in Rarotonga.

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 also contributes to the UN Development Programme (UNDP).

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 1990 New Zealand's assessed contribution rate was set at 0.24 percent of the regular budget, resulting in dues of $4 million. Contributions to the budgets of specialised agencies are fixed according to a scale of assessment agreed by the membership as a whole.

General Agreement on Tariffs and Trade (GATT).Begun in 1947, as a framework for negotiations to achieve substantial reductions in tariffs and other barriers to trade, GATT's world membership has expanded from 23 original member countries (which included New Zealand) to 96 parties. The GATT membership represents 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 have been held with the aim of reducing obstacles to trade and refine the rules and disciplines.

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.

The Uruguay Round was scheduled to be complete by the end of 1990. A Ministerial meeting was convened in Brussels in December 1990 to bring the negotiations to a conclusion but it failed to do so. The principal reason for the breakdown was failure to agree on a new regime for agriculture. This aspect of the negotiation is of critical importance to New Zealand.

The main negotiating groups were reconstituted in the first quarter of 1991 and the negotiations engaged afresh. Agriculture remains one of the principal areas to be resolved and the success or failure of the Uruguay Round hangs on resolution in this area. Achieving this remains New Zealand's top foreign policy objective.

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 3.1 (above), includes New Zealand's contributions for 1990–1991.

World Bank

The World Bank is a multilateral lending agency consisting of four closely associated institutions—the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). The common objective of these institutions is to help raise living standards in developing countries by channelling financial resources from developed countries to them.

The IBRD lends, at market rates, to developing countries with relatively high per capita income. The IDA provides interest-free loans to the poorest of developing countries. The IFC promotes growth in the private sector of developing countries by lending or investing in business enterprises without government guarantees. The MIGA has been recently created to insure investments in developing countries against political risks such as expropriation, war, civil disturbance and breach of contract.

New Zealand has subscribed to a total of 4696 shares in the IBRD, which represents 0.54 percent of the total voting share. 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 subscription of other member countries, acts as a guarantee for the Bank's borrowing in the financial markets.

Since becoming a member of the IDA in 1975, New Zealand has committed $91.35 million to IDA through periodic replenishments of its fund. New Zealand owns 1583 fully paid shares in the IFC which have a total par value of US$1.6 million.

The Asian Development Bank

The Asian Development Bank's (ADB's) principal function is to promote and finance the economic and social advancement of its 29 developing member countries in the Asia-Pacific region. It has 36 member countries in the Asia-Pacific region and 15 member countries in Europe and North America.

New Zealand currently holds 35,085 shares, which make up about two percent of the bank's total share capital. The country also makes contributions to the periodic replenishment of the ADB's Asian Development Fund (ADF), the bank's facility for lending to its poorest developing member countries. New Zealand's contribution to the last replenishment, which was concluded in 1986, came to $27.4 million. New Zealand is currently participating in negotiations for the next replenishment of the fund. Our contribution will be paid in over a six-year period beginning in 1996.

Commonwealth

The 50 members and two 'special members' of the Commonwealth include countries in the six continents and the five oceans of the world. 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.

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 Harare in October 1991. 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 1990–1991. New Zealand also takes part in the Commonwealth Scholarship and Fellowship Plan, contributing about $725,000 in 1990–1991. Contributions are made to a range of other intergovernmental Commonwealth co-operative programmes, including, in 1990, $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.

Within the OECD, New Zealand's priorities have been economic, agricultural, and trade issues and, more recently environmental issues have been added. Other areas where New Zealand participates in OECD work include education, science, health, labour, financial and investment affairs, social policy and the organisation's increasingly important work with non-member countries particularly those from the dynamic Asian economies, and central and eastern European countries emerging from Communist rule. 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 on 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 includes energy-related environmental issues in its overall programme of energy co-ordination, the aim of which is to promote co-operation between energy producing and consuming countries.

International Whaling Commission

New Zealand plays a leading role among the conservationist members of the International Whaling Commission. In recent years we have sought to persuade the IWC to maintain the moratorium on commercial whaling which was imposed in 1985–1986. For the moment the moratorium remains in force, but whaling countries are seeking to have it lifted. The most recent Annual Meeting of the IWC was held in Reykjavik, Iceland, in May 1991.

3.3 New Zealand territories

Tokelau

A territory under New Zealand's administration since 1948, 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.

Administrative responsibility for Tokelau lies with the Administrator, Mr Graham Ansell. 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.

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. Delegations from Tokelau visited New York in April 1990, and their message to the United Nations reflected the views expressed on earlier missions that they did not, for the time being, wish to review the existing ties between New Zealand and themselves. 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 30 June 1990.

New Zealand provided $4.3 million of budgetary aid in the year ended 30 June 1990. 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's economy 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.

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. An Antarctic scientific research programme is maintained at the Ross Dependency, with New Zealand operating Scott Base on Ross Island as a permanent base, and two seasonal bases. 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.

3.4 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's power of control of the New Zealand Defence Force 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 passing of the Defence Act 1990.

1991 Defence white paper

The Government's white paper, The Defence of New Zealand 1991, provides the foundation for the longer term shaping of New Zealand's defence structure to support the country's security interests.

In updating New Zealand's defence policy the white paper adopts a new approach. It does not try and estimate the likelihood of future threats in the Asia/Pacific region. Instead it looks at the permanent features of New Zealand's geography and situation, the constants that change only slowly if at all, and which shape New Zealand's forces and the tasks they have to carry out

The white paper acknowledges that the defence of New Zealand's territory is a low priority—there is no foreseeable direct threat—and stresses the importance of contributing to the defence of New Zealand's wider interests.

Based upon its assessment of New Zealand's strategic situation and interests, the white paper defines New Zealand's defence policy goals in the following terms:

  • To maintain the sovereignty of New Zealand.

  • To preserve the security and of New Zealand, and its essential interests.

  • To maintain the sovereignty and security of the Cook Islands, Niue and Tokelau.

  • To contribute to the security of the South Pacific states with which New Zealand shares historical or other particular interests and to contribute generally to the security and stability of the South Pacific region.

  • To develop further the existing defence co-operation with Australia, including combined planning, operations, logistics and the industrial base.

  • To maintain and develop defence co-operation with ASEAN countries, and to preserve the partnership obligations of the Five Power Defence Arrangements.

  • To work to re-establish an effective defence relationship with New Zealand's other traditional partners, especially the United States and the United Kingdom.

  • To support the United Nations by contributing forces for peacekeeping or peacemaking duties.

  • To contribute forces to other collective endeavours where New Zealand's national interests are involved.

  • To ensure that the general purpose forces implied by these goals are capable of supporting non-military interests.

The strategy which the white paper concludes best meets New Zealand's defence goals is described as ‘Self Reliance in Partnership’. This strategy links the need for a self reliant capability to handle immediate national tasks—the protection of New Zealand territory and sovereignty—with broader interests shared in partnership with Australia, the South Pacific and the countries beyond.

The white paper also defines the capabilities and funding methods needed to support New Zealand's national goals as economically as possible. It measures the existing Defence Force against the yardstick of the credible minimum force. Minimum because the force must be fiscally sustainable given New Zealand's current economic circumstances. Credible because, even at a minimum level, it must meet the essential aims defined by successive governments, and reassure New Zealand's neighbours and allies that the Government has the resolve and the capability to do so.

The white paper signals the start of the process of reviewing defence. It provides the broad framework and guidance under which detailed planning will be carried out over the next few years.

Lowering of the flag for the last time at Fort Dorset, Wellington, November 1991.

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. President Bush's September 1991 announcement of a decision to remove tactical nuclear weapons from United States Navy ships and submarines has removed a major obstacle to the restoration of New Zealand's role in ANZUS and has prompted the New Zealand Government to review the question of nuclear propulsion with the aim of determining whether a regime that fully met safety considerations could be instituted to allow visits by nuclear propelled ships. That examination was underway at the time this material was prepared.

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 focus of the arrangements is the action and support available to Malaysia and Singapore if either of these countries was under external threat. Only a small Defence Support Unit in Singapore now supports New Zealand's contribution to the arrangements. Their involvement takes the form of exercise participation, visits, and training assistance and co-operation.

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 repealed.

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 attachés accredited to, but not resident in, New Zealand.

Armed forces overseas

Five Power Defence Arrangements (FPDA). A small administrative element, known as the Defence Support Unit, remains in Singapore to support bilateral exercises under the FPDA and the Mutual Assistance Programme, continued single service deployments and training attachments. An RNZAF officer remains attached to the staff of the FPDA Integrated Air Defence System Headquarters at Butterworth, Malaysia.

United Nations observers. New Zealand has five 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. The operational headquarters of MFO 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 was 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 comprised 10 army officers and an 18-strong RNZAF flight and ground crew contingent which is operating an RNZAF Andover aircraft. Both groups worked in Iran. Although 26 countries were represented in UNIIMOG, New Zealand was the largest national contributor in terms of both manpower and equipment. The RNZAF detachment was withdrawn in December 1990, and the Army representation concluded with the termination of the mission in February 1991.

United Nations Mine Clearance Training Team. (UNMCTT). 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 has provided teams of five army personnel since February 1989 for periods of six months. The New Zealand contingent is based in Peshawar, in north-west Pakistan.

United Nations Transitional Assistance Group. This group was responsible for ensuring the early independence of Namibia through free and fair elections under the supervision and control of the United Nations. New Zealand contributed 14 army engineers in late September 1989 for a period of six months. The main tasks of the unit were 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; they departed from Namibia in February 1990 on the termination of their mission.

United Nations Angola Verification Mission (UNAVEM). New Zealand has contributed 12 officers to UNAVEM, which was established on 1 May 1991 to verify the cease-fire between the Angolan Government and the National Union for the Total Independence of Angola (UNITA). The UNAVEM mandate will last until the day following the presidential and legislative elections which are to be held between 1 September and 30 November 1992. The New Zealand officers are based in the capital, Luanda, and deployed from there to monitoring sites throughout Angola for specific periods.

Gulf War. In December 1990, an air transport detachment, consisting of two C130 aircraft and 61 personnel was deployed to the Multi-National Force in the Persian Gulf. This was followed on 16 January 1991 by a medical contingent of 32 personnel, forming the 1st New Zealand Army Medical Team. The C130 detachment was integrated into the RAF theatre logistic resupply arrangement operating within Saudi Arabia, while the medical team was attached to the US Navy Fleet Hospital in Bahrain. Following a request for further assistance in providing medical capability, the Government approved the attachment to the United Kingdom armed forces of a 20-member tri-service medical contingent, the New Zealand Defence Force Medical Team, for service with the Multi-National Force. This contingent was based at the RAF hospital in Bahrain. With the exception of five medical personnel who remained attached to the RAF hospital, the medical contingents were withdrawn on 18 March 1991. The air transport contingent and remaining medical personnel were withdrawn early in April 1991.

New Zealand patrolman at Riyadh, Saudi Arabia, during Gulf War.

United Nations Special Commission on Iraqi Weapons of Mass Destruction (UNSCOM). Following the 1991 Gulf War, the United Nations established a Special Commission to destroy, remove or render harmless weapons of mass destruction and ballistic missile capabilities. UNSCOM is based in Bahrain, from where inspection teams (e.g. nuclear, biological, chemical or ballistic missile) visit Iraq to inspect specific installations. New Zealand has contributed 10 military medical personnel who provide pre-deployment training in nuclear, biological and chemical warfare protection and on-site medical coverage to the various inspection teams.

United Nations Advance Mission in Cambodia (UNAMIC). On 21 October, 1991, the Government agreed to a proposal that New Zealand participate in the United Nations operation in Cambodia. The contribution is a mine awareness team of 22 New Zealand Army personnel. They will have sole responsibility within the UNAMIC for advising the civilian population in North West Cambodia on land mine awareness and disposal procedures. The size of the team makes New Zealand the third largest contributor of the 23 countries invited to join the mission. The tour is expected to last six months.

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 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 1990 RNZAF C130 Hercules made 12 return trips to McMurdo Sound, transporting 159,285 kilograms of freight and 372 passengers and 994 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.

In addition to the C130 flights the RNZAF has also stationed an Iroquois helicopter at McMurdo in the summer months from November to February to provide additional air support to the antarctic programme in 1985, 1989 and 1990. In 1990 it flew 150 hours, carrying 240 passengers and over 40,000 kilograms of freight to sustain remote field science parties.

Exercises. STARFISH 90 and 91, attended by the Navy and the Air Force and IADS, an integrated air defence exercise, were conducted under the auspices of the Five Power Defence Arrangements. The Navy also took part in TASMANEX 91, a combined martime exercise involving Australia, New Zealand and Canada; SELINDO 91 a combined exercise with the Indonesian Navy; and IVANHOE 91, a joint exercise with the New Zealand Army.

The RNZAF regularly participates in VANGUARD, operating in support of the Five Power Defence Arrangement out of Singapore; FINCASTLE, an anti-submarine warfare competition between Australia, New Zealand, Canada and the United Kingdom; BULLS-EYE a tactical transport competition between Australia, New Zealand and Canada; and HELIMEET a series of helicopter competitions flown by most European nations and Australia, New Zealand and Canada.

Battle of Crete 50th Anniversary Celebrations. In May 1991 a 50-man honour guard and the New Zealand Army Band attended the 50th Anniversary celebrations in Crete, to commemorate those New Zealanders who lost their lives.

Community assistance

Hydrographic survey. The Navy is the sole authority for the production of nautical charts in New Zealand and operates a hydrographic 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 1990 Monowai completed a survey of the Auckland Islands and of Rarotonga and the Cook Islands. In addition to completing the overall survey of Taranaki, a special survey of Port Taranaki was carried out. The ship also commenced an updated survey of the Bay of Islands.

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. The RNZAF flew 900 hours in 1990 in the maritime surveillance role.

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 rescues, including some that have ranged as far north as the Tokelau Islands and Vanuatu, and the Army has supported the Air Force in land searches. In 1990 the RNZAF flew 279 hours in 59 search and rescues. As well as search and rescue the RNZAF also flies emergency medical evacuation throughout New Zealand and the South Pacific comprising 16 flights in 1990.

New Zealand Cadet Forces. Cadet Forces comprise the Sea Cadets, Air Training Corps and New Zealand Cadet Corps. They are community-based youth training groups, who are supported by the Navy League, Air Cadet League, Returned Servicemens' Association, Army Association and schools.

As at 30 September 1991, there were a total 94 cadet units (18 Sea Cadet, 50 Air Training Corps and 26 Cadet Corps units). Cadet Forces strength at the same date was 440 officers and 5060 cadets.

Other assistance provided to the community included co-operation with the police (field catering and helicopter support) Fire departments (providing an aerial fire fighting platform) and the Departments of Internal Affairs, Conservation, Labour (including explosive ordnance disposal), Customs and Justice, and the Ministries of Civil Defence and Agriculture and Fisheries. In April 1991 Operation Pluto was reactivated for the eighth time in New Zealand history ferrying 116 vehicles and 253 passengers across the Cook Strait.

“Parachutists landing on Galatos” (Crete) by Peter McIntyre.

Disaster relief

The RNZAF undertook relief flights to Western Samoa, Niue, Tokelau and the Cook Islands in March 1990 after Cyclones Ofa and Peni. 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.

In May 1991 relief flights were flown by the RNZAF to Cyclone ravaged Bangladesh. In the wake of Cyclone Val in December 1991 the New Zealand Defence Forces supplied a variety of disaster relief including the deployment of RNZAF Orions and Hercules, the HMNZS frigate Canterbury, medical assistance, helicopter transport assistance and expertise in construction and general engineering. January 1992 again saw the RNZAF deploy an Orion to Vanuatu in the aftermath of Cyclone Betsi.

Cyclone's weren't the only cause of relief aid distribution. On fleeing from the prospect of the Gulf War in September 1990 more than 1500 starving refugees were airlifted from Jordan to Pakistan, India, Sri-Lanka, Bangladesh and Philippines by the RNZAF.

Then some weeks later in April 1991, the RNZAF once again flew relief aid this time to the Kurds in Turkey and Iran taking refuge from the Gulf War.

RNZAF Iroquois helicopter on Savai'i Island, Western Samoa. The Iroquois was part of the New Zealand relief effort sent to Samoa in the wake of Cyclone Val.

Defence expenditure

About 90 percent of Vote: Defence is spent on personnel and operating and capital costs. There is a policy to encourage greater logistic sufficiency, both within New Zealand and in conjunction with Australia.

Table 3.2. DEFENCE EXPENDITURE

ItemYear ended 31 March
19861987198819891990
Source: Ministry of Defence.
 $(million)
Personnel390.44464.28532.51611.47620.24
Travel, transport, and communications31.1337.7641.0443.5650.07
Maintenance, operation, upkeep, and rental66.6589.26102.62111.96111.04
Materials and supplies185.91184.19190.46177.51161.49
Services19.5825.4539.9254.2547.41
Other operating expenditure5.917.8713.7014.5226.37
Grants, contributions, subsidies, advances, GST.0.3849.86114.67133.56140.97
Capital works22.1537.1342.0186.4857.06
Capital equipment148.30200.16201.56157.44195.69
                    Total870.451,095.961,278.491390.751,410.32

From 1 July 1990 Defence funding was disaggregated to two government departments: the NZ Defence Force (NZDF) under the Chief of Defence Force (CDF), and the Ministry of Defence (MOD) under the Secretary of Defence (Secretary). The Secretary is responsible for policy formulation, major capital procurement and performance audit. CDF is responsible for all operational activities. At the same time, financial management reform within the New Zealand Public Service was changing the department's accounting procedures from simple cash processing to accrual accounting.

Table 3.3. NUMBER OF DEFENCE PERSONNEL

As at 31 MarchNavyArmyAir ForceTotalCivilians
Source: New Zealand Defence Force.
1987262658994195127202673
1988257258724083125273272
1989254757184183124483326
1990253151934155118793165
1991260552493823116773020

Table 3.4. INTERNATIONAL COMPARISON OF DEFENCE EXPENDITURE

 Percentage of GDP
19861987198819891990
Source: International Institute of Strategic Studies; New Zealand Defence Force.
Australia2.72.42.42.22.3
Canada2.01.91.81.7 
India3.53.83.43.3 
New Zealand2.02.22.22.01.9
Sweden2.73.02.72.4 
United Kingdom4.94.64.13.7 
United States of America6.76.35.75.7 

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.

HMNZS Wellington.

Table 3.5. STATE OF THE NAVY

Source: Ministry of Defence.
Frigates (Leander class){Wellington
Southland
Waikato
Canterbury
}11th Frigate Squadron.
Fleet tanker Endeavour  
Survey ship Monowai  
Research ship Tui  
Patrol craft{Hawea
Taupo
Rotoiti
Pukaki
}First New Zealand Patrol Craft Squadron.
Inshore survey craft{Takapu
Tarapunga
  
RNZNVR inshore patrol craft{Moa
Kiwi
Wakakura
Hinau
}Second New Zealand Patrol Craft Squadron.
Diving support vessel Manawanui  
Training tender Kahu  
Dockyard service craft Arataki  

HMNZS Canterbury.

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 Hydro-graphic 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.

HMNZS Southland.

Table 3.6. STRENGTH OF THE NAVY

CategoryAt 31 March
1988198919901991
Source: Ministry of Defence.
Regular forces
     Officers (male and female)370377384393
     Ratings (male and female)2,2272,1982,0832,173
                    Total2,5972,5752,4672,565
Non-regular forces
     Royal New Zealand Naval Reserve (officers)4111
     Royal New Zealand Naval Volunteer Reserve (all ranks)464508497498
     Royal New Zealand Navy Emergency List (officers)7584....
     Royal New Zealand Naval Fleet Reserve (ratings)701703....
                    Total12441296498499

HMNZS Endeavour.

HMNZS Tui.

HMNZS Monowai.

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.

DEFENCE FORCE LOCATIONS

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. A deployable 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 deployable Brigade group.

  4. A Force Support Group.

Command and administration. The Chief of General Staff commands the Army, supported by the Army General Staff. The Army has the following structure:

  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 Brigade.

  2. Headquarters Support Command is responsible for the provision of individual training, static support and facilities, and base support.

Table 3.7. STATE OF THE ARMY

Army unitsRegular Force unitsMajor integrated units
Regular and territorial unitsMajor weapons and armoured fighting vehicles
Source: Ministry of Defence.
Infantry battalions26 
Armoured squadron12 
Field artillery battery15 
Engineer squadrons12 
Signals squadrons13 
SAS group 1 
Transport squadrons 2 
Field workshops11 
Base workshop12 
Supply companies1  
Base supply battalion1  
Field hospital 1 
Combat reconnaissance vehicles (tracked)  26
M113 armoured personnel-carrier family of vehicles  78
105 mm guns/howitzers  44

Table 3.8. STRENGTH OF THE ARMY

CategoryAt 31 March
1988198919901991

* Class A and class B reserves.

Source: Ministry of Defence.

Regular forces
     Officers (male and female)814814752662
     Other ranks (male and female)5,0584,9044,4284,226
                    Total5,8725,7185,1804,888
Non-regular forces
     Territorial Force (all ranks)6,0066,0505,6275,138
     Officers Reserve131120119122
     Other ranks*1,2141,2221,3291,530
                    Total7,3517,3927,0756,790

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, basic flying training and ground trades training as well as 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 Detachment of Iroquois helicopters at RNZAF Base Wigram. RNZAF Base Te Rapa is the RNZAF's stores depot but is scheduled for closure by 1993. The stores held there will be redistributed amongst remaining RNZAF Bases. The RNZAF Museum is located at RNZAF Base 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 3.9. STATE OF THE RNZAF

Operational units roleAircraftLocation
Source: Ministry of Defence.
Maritime{6 Orions
2 Boeing 727s
9 Andovers
5 Hercules
}RNZAF Base
Auckland
Helicopters{10 Iroquois
7 Wasps (operated by RNZAF)
  
Attack/close Air support{21 skyhawks (including 6 based at NAS Nowra, NSW)}RNZAF Base Ohakea
Advanced flying training and attack transition training 14 Strikemasters
6 Aermacchi
  
Flying training{4 Air tourers
14 Air trainers
5 Sioux helicopters
3 Friendships
}RNZAF Base Wigram
Helicopter support 4 Iroquois  

Table 3.1. STRENGTH OF THE AIR FORCE

CategoryAt 31 March
1988198919901991
Source: Ministry of Defence.
Regular forces
     Officers (male and female)698542643654
     Airmen and airwomen3,5773,5303,4223,425
                    Total4,2754,0724,0654,079
Non-regular forces
     Territorial Air Force215224227237
     Active Reserve9619026969
     General Reserve172203156134
                    Total13481329452440

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.

During the year ended 31 March 1991, 2 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 nine days. The method of interception used was listening devices.

Table 3.11. EXPENDITURE ON SECURITY INTELLIGENCE SERVICE

Year ended 31 MarchGrass expenditureIncrease over previous year
Source: Security Intelligence Service.
 $(000)percent
19877,59639
19889,43324
19899,7754
199010,1974
199110,2661

Contributors

  • 3.1-3.3 Ministry of External Relations and Trade.

  • 3.4 Ministry of Defence; New Zealand Security Intelligence Service.

Further information

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 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 4. Population

Golden wedding anniversary celebrations, Dunedin.

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.

The following discussions on population issues cover only the years since World War II, and more particularly the past 30 years. The aim is to highlight modern trends in New Zealand's demography and present those population changes from over the last half century which have affected, and continue to affect, the general development of the country.

4.1 Population growth

The dramatic changes in the first 150 years of European settlement in New Zealand were frequently consistent with, and indicative of, international social and economic trends. In a nation of New Zealand's size and youth however, the results of these trends often had a profound effect and impact. The almost cyclic nature of depression and recovery, along with the arrival of gold rushes, world wars and assisted immigration schemes saw New Zealand's population growth rates fluctuate regularly.

The population of New Zealand reached 500,000 in 1880 boosted by the introduction of government-assisted immigration. The first million was surpassed in 1908 following the economic recovery from the Depression of the 1880s and 1890s. In the aftermath of World War II the growth rate climbed dramatically (in comparison to a stagnation in the early 1930s) as the baby-boom and increased immigration made their impact. The second million of population was reached in 1952,44 years after the first million with the third added, only 21 years later, in 1973. Almost one-fifth of this population growth came from net immigration. Since 1973 New Zealand's population has increased by just under one-half of a million to reach 3.45 million at December 1991.

Over the past 20 years there have been significant fluctuations in the population growth rate caused by wide swings in the level and direction of the external migration balance. In absolute terms, New Zealand's population grew by a record 266,752 during 1971-76, only 46,354 over 1976-81, 131,347 during 1981-86 and 127,866 over the latest intercensal period, 1986-91.

The decline in population growth during the 1970s and 1980s was again a noticeable international trend. A number of other developed countries, including Denmark, France, Sweden, Switzerland, the United Kingdom and the United States, have all experienced reduced growth rates during this period_

Table 4.1. TOTAL NEW ZEALAND POPULATION, 1858-1991 CENSUSES

Census*Total populationIntercensal 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 April534,0307602316.605.10
1886, 28 March620,45186,42116.183.07
1891, 5 April668,65148,2007.771.49
1896, 12 April74321474,56311.152.13
1901, 31 March815,86272,6489.771.89
1906, 29 April936,309120,44714.762.75
1911, 2 April1058,312122,00313.032.52
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 March1573,812165,67311.771.13
1945, 25 September1,702,330128,5188.170.83
1951, 17 April1,93947223714213.932.37
1956, 17 April2,174,062234,59012.102.31
1961, 18 April2,414,984240,92211.082.12
1966, 22 March2,676,91926193510.852.11
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 March3,307,0841313474.140.82
1991, 5 March3,434,950127,8663.870.77

Table 4.2. ESTIMATED POPULATION, 1939-1991

YearTotal population at 31 DecemberMean population for year ended 31 December
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
19903,429,1003,379,200
19913,449,700P3,408,600P

POPULATION GROWTH
Percentage annual increase

Census enumerator aboard train bound for Wellington.

4.2 Distribution of population

Three major trends stand out prominently in the geographic distribution and redistribution of New Zealand's population over the last 150 years. The first is an increasing proportion of the people living in the north of the country. The second is a tendency for the people to move from the south to the north. The third is for an increasing degree of urbanisation and in particular, a concentration of people in the main urban centres.

North and South Islands

Following the end of the gold boom in the South Island in the 1870s the proportion of the total population living in the South Island began to steadily decrease. From the 1896 census onward the population of the North Island has exceeded that of the South.

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. In 1951, 68 percent of the population resided in the North Island, by 1971 this figure has risen to almost 72 percent and in 1991 was at 74 percent.

Table 4.3. POPULATION OF NORTH AND SOUTH ISLANDS, 1936-1991 CENSUSES

CensusNorth IslandSouth IslandTotal population
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
19912,553,413881,5373,434,950

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 1981-86, regions in the north of each island gained more people from internal migration than did other regions with the highest growth areas over this period being Northland, Auckland and Bay of Plenty in the North Island and Nelson Bays in the South Island. Also there were two regions—Horowhenua and Clutha-Central Otago—situated in the lower half of each island, which experienced high growth at the expense of their southern neighbours.

URBAN DRIFT
Ratio of urban to rural population

Table 4.4. MIGRATION BETWEEN LOCAL GOVERNMENT REGIONS, 1981-1986

Local government regionUsually resident population aged 5 years and over at 1986 censusIn-migration (2)Out-migration (3)Gross migration (2)+(3)=(4)Net migration (2)-(3)=(5)Migration effectiveness ratio (5)/(4)x100
Northland111882195691418433753538515.95
Auckland81398462799512581140571154110.12
Thames Valley516811103410317213517173.36
Bay of Plenty167907287912306751858572411.04
Waikato207642298473189961746−2052−3.32
Tongariro347228196936017556−1164−6.63
East Cape485496714823214946−1518−10.16
Hawke's Bay127689144481614030588−1692−5.53
Taranaki99144109801139122371−411−1.84
Wanganui62781106891212622815−1437−6.30
Manawatu106386187651895737722−192−0.51
Horowhenua4950911466822619692324016.45
Wellington300087337084245976167−8751−11.49
Wairarapa359435316648011796−1164−9.87
Nelson Bays62439917480251719911496.68
Marlborough3392766066099127055073.99
West Coast303784938558610524−648−6.16
Canterbury32017231179295596073816202.67
Aorangi7470990731253720610−4464−21.66
Clutha-Central Otago41025889578211671610746.42
Coastal-North Otago126903156331756833201−1935−5.83
Southland9485179021342521327−5523−25.90

Auckland is a key region in internal migration patterns, accruing population at the expense of most other regions. The second major region for receiving migrants was Wellington. It functioned as a redistribution 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.

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.

The balance of urban and rural components of population is another major feature of New Zealand's changing demography.

Table 4.5. URBAN-RURAL POPULATION, 1936-1991 CENSUSES*

Total population†UrbanRural
numberpercentnumberpercent

* Excludes shipping.

† Urban areas and towns with over 1000 population vs. remaining population.

‡ Based on boundaries at 1 November 1989.

Census
1936106522867.950388532.1
1945122706974.242707625.8
1951140651672.752707827.3
1956160080873.856880626.2
1961184020276.456921723.6
1966211908579.355302320.7
1971232887681.552860918.5
1976261411983.651100416.4
1981‡269324284.847902315.1
1986‡280676084.949773015.1
1991‡291638285.051522715.0

Improved communications and transportation have allowed the centralisation of previously dispersed services, and secondary and tertiary industries continued to expand. Over four-fifths of the population lived in urban areas by 1971, and by 1991 the urban proportion of the population had risen to over 85 percent of the total.

The cities

At the time of the 1991 census, while 85 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 1991, 26 percent of New Zealand's population lived there, compared with only 15 percent 70 years earlier.

Today, while a large majority of the population live in urban areas, there has been a decline in the growth of many urban areas. Between 1986 and 1991, urban areas that continued to grow were generally situated in the north of each island—between Auckland and Rotorua in the North Island and between Nelson and Christchurch in the South Island. Urban areas in the south of each island experienced virtually no growth nor lost population.

Table 4.6. POPULATION OF 20 LARGEST URBAN AREAS AT SELECTED CENSUSES

 1991*198619611936
* Estimated as at 5 March 1991.
Auckland855571821647448365226366
Wellington325682325711249532159357
Christchurch307179300052220510133515
Hamilton1486251401065050520096
Dunedin10950310763910500385607
Palmerston North70951674054318524372
Tauranga7080363254246595808
Hastings57748575093249017920
Rotorua5370251991250688899
Napier52468532763271619170
Invercargill51984525584108825912
New Plymouth48519473843238718597
Nelson47391445932532113493
Whangarei4418344318217909868
Wanganui41213407583569425750
Gisborne31484322382506515878
Timaru27637286762642418771
Kapiti2738023203123055367
Blenheim2363722681119565036
Masterton2000719930151289096

GROWTH OF CITIES
Average annual intercensal growth rates for main urban areas

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 4.7. POPULATION OF TERRITORIAL LOCAL AUTHORITIES

Territorial authority*Census of Population 1986Census of Population 1991Change 1986-91
* Boundaries as at 5 March 1991.
Citiesnumberpercent
       North Shore14414915213479855.5
       Waitakere1225811367161413511.5
       Auckland301428315668142404.7
       Manukau206741226147194069.4
       Hamilton9538810144860606.4
       Napier5251251645−867−1.7
       Palmerston North668217031834975.2
       Porirua45663466019382.1
       Upper Hutt3729037092−198−0.5
       Lower Hutt9534294540−802−0.8
       Wellington1498681503014330.3
       Nelson359193794320245.6
       Christchurch28660129285862572.2
       Dunedin11434911657722281.9
              Subtotal, cities17546521829988753364.3
Districts
       Far North479125156836567.6
       Whangarei62542626441020.2
       Kaipara17200173251250.7
       Rodney4588355784990121.6
       Papakura3276536553378811.6
       Franklin3732842193486513.0
       Thames-Coromandel2171525037332215.3
       Hauraki159041692110176.4
       Waikato364753755610813.0
       Matamata-Piako2940929408−1
       Waipa355533703114784.2
       Otorohanga92829231−51−0.5
       South Waikato2826626186−2080−7.4
       Waitomo1052210074−448−4.3
       Taupo290273072116945.8
       Western Bay of Plenty2691230137322512.0
       Tauranga6019467333713911.9
Citiesnumberpercent
       Rotorua629126509621843.5
       Whakatane31185321129273.0
       Kawerau83118135−176−2.1
       Opotiki813486765426.7
       Gisborne4575844361−1397−3.1
       Wairoa1068010371−309−2.9
       Hastings64371646933220.5
       Central Hawke's Bay1305412590−464−3.6
       New Plymouth668786795110731.6
       Stratford100869846−240−2.4
       South Taranaki3077029519−1251−4.1
       Ruapehu1946118104−1357−7.0
       Wanganui440194508210632.4
       Rangitikei1769916676−1023−5.8
       Manawatu258262718213565.3
       Tararua1988419482−402−2.0
       Horowhenua28858294766182.1
       Kapiti Coast2975435309555518.7
       Masterton22508229474392.0
       Carterton633669135779.1
       South Wairarapa874790372903.3
       Tasman337293641626878.0
       Marlborough348543676519115.5
       Kaikoura352937111825.2
       Buller1115110941−210−1.9
       Grey1430013742−558−3.9
       Westland95199250−269−2.8
       Hurunui928095692893.1
       Waimakariri254002786224629.7
       Banks Peninsula723276394075.6
       Selwyn20520213598394.1
       Ashburton2485524435−420−1.7
       Timaru4339443208−186−0.4
       Mackenzie486650571913.9
       Waimate82347793−441−5.4
       Waitaki2326822991−277−1.2
       Central Otago1680515696−1109−6.6
       Queenstown-Lakes1202415123309925.8
       Clutha1920118303−898−4.7
       Southland3457033681−889−2.6
       Gore1387713596−281−2.0
       Invercargill5704256148−894−1.6
              Subtotal, districts15497701602545527753.4
       Chatham Islands County775760−15−1.9
       Population outside territorial authority areas18871657
              Total, New Zealand330708434349501278663.9

Lunch-time crowd, Wellington.

Table 4.8. POPULATION OF REGIONAL COUNCILS*

RegionCensus of Population 1986Census of Population 1991Change1986-91

* Boundaries as at 5 March 1991.

† Includes Kermadec Islands and oil rigs.

‡ Includes Chatham Islands County and Campbell Island.

North Islandnumberpercent
Northland127656R13162039643.1
Auckland881011R953980729698.3
Waikato325220338959137394.2
Bay of Plenty194622208163135417.0
Gisborne4595344387−1566−3.4
Hawke's Bay140844139479−1365−1.0
Taranaki107498107222−276−0.3
Manawatu-Wanganui22302122661635951.6
Wellington39561040289272821.8
Remainder North Island†17995
                    Subtotal, North Island244161525534131117984.6
South Island
Nelson-Marlborough10677511348767126.3
West Coast3637535380−995−2.7
Canterbury43301744239293752.2
Otago18300518606730621.7
Southland105512103442−2070−2.0
Remainder South Island‡785769
                    Subtotal, South Island865469881537160681.9
                    Total, New Zealand330708434349501278663.9

4.3 Components of population change

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.

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 1986-90) 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. The rise in natural increase has been prodigious. In 1861-65, births exceeded deaths by only 16,610. By 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 148,423, a drop of 28 percent on a quarter of a century earlier. The rate of natural increase of population has risen from 0.8 percent to 0.9 percent.

The following text briefly looks at the population processes—fertility, mortality and migration.

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 1935 the fertility rate in New Zealand fell to a low of 2.2 births per woman. This lower rate is attributed to fewer and later marriages, and family limitation within marriage exerting their influence.

With the demobilisation of forces after World War II and the resulting increase in marriages and births, the fertility rate recovered to 3.6 births per woman in 1947.

Table 4.9. FERTILITY TRENDS AND PATTERNS

YearTotal live birthsCrude birth rate*Total fertility rate†Gross reproduction rate‡§Net reproduction rate?§||Ex-nuptial birth rate||ļ

* 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.

ļ Per 1000 mean number of not-married women aged 15-49 years.

19362839518.032.301.040.976.71
19413917024.022.931.371.27..
19464752427.013.451.591.4711.67
19514980625.573.601.641.5814.85
19565653125.903.981.841.7717.79
19616539026.954.312.031.9624.14
19666000322.373.381.581.5337.72
19716446022.503.131.551.5145.10
19765510517.602.241.091.0736.86
19815079416.091.960.980.9638.81
19865282416.111.960.960.9439.83
19875525416.702.020.980.9542.55
19885754617.302.091.021.00R46.04
198958091R17.382.101.031.01R49.05
19906015317.802.151.051.0351.12

Other features of the post war years were New Zealanders marrying younger, and marriage becoming almost 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’.

SIZE OF THE FAMILY
Average number of live births per woman born in any year*

As was the case elsewhere, this burgeoning in the number of births was to reshape the population age-pyramid 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 1990 rate implies a life-time average of 2.15 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.

Newborn baby clutches gift of Kowhai tree, presented to mark World Population Day.

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 1990 was 24.9 years compared with 21.2 years in 1971-72. A growing proportion are remaining single through their twenties. At the 1991 census, over 19 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 1991 census, 12.3 percent and 8.1 percent of New Zealand women aged 25-29 years and 30-34 years, respectively, were living in de facto relationships. The national all age average is 6.2 percent.

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 over 21 000 in 1991. Ex-nuptial births comprised 8 percent of all births registered in New Zealand in 1962 and 36 percent in 1991. Changing social norms and the availability of social welfare benefits to single parents have contributed to this increase.

There is also a high incidence of ex-nuptial births among Maori. In 1990, 73 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.

AVERAGE AGE OF NEW MOTHERS
At birth of first child

CHANGING AGES
Median age of the total population

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 2.3 births per woman in 1990, 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 4.1. VITAL STATISTICS: 1935-1990

Five-year period ending 31 DecemberTotal births*Total deaths*Natural increase*Life expectancy at birth†‡Average age at death
MalesFemales

* For five-year period.

† Excludes Maori population.

‡ At year after each interval, i.e. 1936, 1981.

§ For total population for period 1988-90.

1935137976662737170365.4668.4557.36
1940158953785558039865.4369.0558.88
19451912438702110422267.1770.6160.89
19502444568810915634768.2972.4363.17
19552631919418716900468.8873.8864.38
196030008910287919721069.1774.5165.68
196531728011211620516468.6774.8465.19
197030754712025018729769.0975.1665.71
197530437712479717958069.3775.8866.13
198026313412810313503170.76R76.86R68.17
198525464012953112510971.38R77.39R69.43
199028386813544514842371.94§77.96§69.72
Annual
1986528242704525779   
1987552542741927835   
1988575462740830138   
1989574272704230385   
1990601532653133622R   
1991P599982650433494   

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.

Table 4.11. DEATH RATES

YearUnder 1*1-45-1415-2425-3435-4445-5455-6465-7475 and over
* Per 1000 live births.
 rates per 1000 of mean population in each age group
Males
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
19909.640.740.291.751.471.924.6913.9336.47104.67
Females
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
19906.930.380.170.580.651.253.688.8921.4475.75
Both sexes
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
198710.330.550.311.191.111.594.7512.3831.2793.82
198811.130.570.281.141.111.684.2812.0629.8193.97
198910.570.530.271.201.031.644.3511.4728.9690.98
19908.310.560.231.171.051.594.1911.4328.3386.27

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 in association with a major reduction in infectious diseases (and respiratory diseases), which were previously the main causes of death in New Zealand.

In the area of longevity, the significant development over recent years was the slowing down of mortality decline between 1955-57 and 1970-72, although there was a slight deterioration in male mortality during the mid-1960s.

Since 1970-72, there has been a gain of three-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 10 other countries can expect to live longer than New Zealanders.

There is still 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 8.3 per 1000 in 1991, 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 4 per 1000 and is significantly higher than the rate recently achieved in Scandinavian countries (see section 7.2, Public health).

Recent data indicates 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 1988-90, it was about six 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.

LONGER LIVES
Average age at death

Table 4.12. HISTORICAL LIFE EXPECTANCIES: INTERNATIONAL COMPARISON

CountryYear/PeriodMalesFemales
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 Kingdom198170.876.8
New Zealand1988-9071.978.0
Australia198973.379.6
Denmark1987-8871.877.7
Japan198775.681.4
Norway198973.379.9
United Kingdom198671.977.6

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 end of World War II saw economic stability and 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 1.79 million during 1991. 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 111 people per annum during 1968-91. 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, and a net influx of 17,367 during 1990-91.

The early 1980s pointed to radical changes in permanent and long-term migration (persons whose stated intention is 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. This turnaround was short-lived, and by 1989 the figure had climbed to 61,535, giving a net emigration of 12,275. However, during 1990, an increase in the number of permanent and long-term arrivals, and a decrease in the number of permanent and long-term departures was recorded. This gave a net gain of 8968. The net gain during 1991 was slightly lower, 6390.

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.

COMPONENTS OF POPULATION GROWTH
Annual net migration and natural increase

Table 4.13. EXTERNAL MIGRATION: 1935-1991

Five-year period ended 31 MarchTotalPermanent and long-termShort-term
ArrivalsDeparturesNetArrivalsDeparturesNetArrivalsDeparturesNet
1935111933118076−61431346614830−136498467103246−4779
194017142415951411910228711926736041485531402478306
19453500332414258965979241−264428406231735233
1950158637135439231985148730020214671071501054191731
1955306837239148676891165103741979091190327201729−11402
1960395218347021481971153085116964139279910295852−15942
1965737703676137615661564627505581407581241601082−19841
19701278867127340954581550081278142719411238591145595−21736
197525067142400234106480274842196993778492231872220324128631
198037934833874575−81092204867319964−1150973588616355461134005
1985477225747669935264213059247712−346534559198451928139917
199073593407394389−3504922642030665380233713290708773645184
Annual
198611119261130444−185183598257595−21613107594410728493095
19871321729131737243574436058629−142691277369125874318626
198815549921555949−9574784463469−156251507148149248014668
198916696371687935−182984623370941−24708162340416169946410
199017010561702689−16335200156019−4018164905516466702385
19911772524175794814576570884547211616171543617124762960

4.4 Composition of the population

Age and sex of the population

The age and sex profile of a population represents the cumulative effect 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.

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. Provisional counts indicate that there were 1,693,200 males and 1,741 750 females in New Zealand at the 1991 census, representing a sex ratio of 97 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 1991. At ages below 60 years, men still outnumber women by a small margin.

Table 4.14. SEX OF THE POPULATION, 1936-1991 CENSUSES

CensusMalesFemalesTotal populationSex ratio*
*Males per 100 females.
19367990917747211573812103.1
1945832877869421170229895.8
19519739689655041939472100.9
1956109321110808512174062101.1
1961121337612016082414984101.0
1966134374313331762676919100.8
197114308561431775286263199.9
197615620421567341312938399.7
198115789271596810317573798.9
198616383561668728330708498.2
199116932001741750343495097.2

AGE-SEX DISTRIBUTION
Total population at selected years

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 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 more than five years since 1971, from 25.6 years to 30.9 years in 1990. 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 1990, children under 15 numbered 782,000 (down from 814,000 in 1961) and comprised just under 23 percent of the total population, the lowest percentage on record. Over the same period the working-age population has risen by 775,000 (or 57 percent) to 2.12 million, and in 1990 accounted for 62 percent of the country's 3.43 million population. The aged population has once again showed the largest rise, up 75 percent to well over 522,000, which represents a 23-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 77 300, a 55-fold increase.

Finally, it is important to note that within New Zealand there are population subgroups 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.

As well as those from the British Isles, nationalities from other European countries have influenced the make-up 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.

Contact with Europeans had proved disastrous for the Maori population. By the time of the systematic colonisation in the 1840s, the Maori population, estimated at between 120,000 to 150,000 in the 1770s, had dropped to around 100,000. 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. 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. Numbers continued to decline further, at a rate of over 1 percent per annum, until the 1870s.

ETHNIC ORIGIN
Proportion of ethnic groups in total population “Other” defined

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.

By the mid-1940s the Maori population had risen to a level comparable to that at the time European colonisation began.

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.

Between 1976 and 1986 the rate of increase dropped significantly, averaging 1.2 percent per annum. By 1991, persons with Maori ancestry made up 15 percent of the population and numbered 511,947.

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 10 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. In 1990 the fertility rate was 2.3 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 1990 the difference had narrowed to 0.2 children.

Rural to urban migration—The change from being a largely rural to a predominantly urban population also happened extremely rapidly for Maori. By 1945 around three-quarters lived in rural areas. 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 5.4, Maori society.

Table 4.15. ETHNIC COMPOSITION OF THE POPULATION, 1936-1991 CENSUSES

CensusTotal populationMaori†Pacific Island PolynesianChineseIndianFijianOther

* Comprises Samoans, Tongans, Cook Islanders, and Niueans.

† Those specifying themselves as half or more New Zealand Maori plus those not specified, the degree of origin. 1986 census figures relate to those persons who stated ‘New Zealand Maori’ as their only ethnic origin.

‡ Usually resident population.

193615738128232698829431200 1486355
1945170229898744215949401554 1594901
19511939472115676362457232425 1812024
195621740621371518103666730874792018575
1961241498416708614340833340277462220452
19662676919201159262719982665513232431529
197128626312274144091812470714011472573542
197631293832700356135414860924715482772339
1981317573727925289697192481158019082774052
1986330708429565999135202591248321272877421
1986†326328629531497140195091212318722837058
1991P‡3375906321396121935*---2932575

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 remains a very important determinant of growth in this component of New Zealand's population.

See also section 5.5, Pacific Island Polynesian population.

Refugees. Refugees from Europe arrived in the 1930s and again during World War II. 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 eventually 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.

Teacher and pupils, Newton Central School.

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.

AGE AND SEX OF THE POPULATION, 1991
Total population and ethnic groups

For further information on ethnicity and country of birth of the population refer to section 5.3, Human rights, immigration and citizenship.

4.5 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.

The 1991-base population projections indicate that New Zealand's population will grow slowly and age steadily over the next four decades to 2031.

Residents of Aroha Home and Hospital, Hutt Valley.

On the basis of natural increase (assuming that New Zealand women continue to have two children on average) and excluding population change through migration, it is projected that the country's population will reach 4.31 million by 2031. This estimate would be an increase of 0.89 million, or 26 percent, over the 31 March 1991 figure of 3.42 million. The pace of growth, however, will slow from a rate of 1.0 percent per year during the 1991-2001 decade to 0.3 percent per year over 2021-2031, reflecting a narrowing of the gap between births and deaths.

In estimating the population including external migration gain, a net gain of 5000 persons a year (the average number over the last 90 years), will mean an extra 270,000 persons, making a total population of 4.58 million by 2031. The Government, however, has expressed a goal of 20,000 net immigrants per annum; if this figure is attained there will be 5.39 million New Zealanders by the year 2031, an increase of 1.97 million or 58 percent during the 40 year period.

There will be profound changes in New Zealand's age structure in the future. With the ‘two child family/no immigration gain’ scenario, the median age of the population (where half the population is above this age) would rise steadily from 31.3 years in 1991 to 39.7 years in 2031. Given the ‘5000’ net immigration scenario the median age of the population in 2031 would be 39.1 years; and using the ‘20,000’ net immigration figure, the median age would be 37.9 years.

Among the various age segments of the population, it is the elderly (aged 65 years and over), which will show the fastest growth over the 1991-2031 period. They will comprise approximately 19 percent of the total population by 2031, compared with only 11 percent in 1991. Under the ‘5000’ net immigration scenario, New Zealand's elderly population will increase by 132 percent, from 385,000 in 1991 to 892,000 in 2031. This increase is indicative of the ‘baby boomers’ aging and reaching retirement age in the next century. By 2031, one in every five New Zealanders will be over 64 years of age, compared with one in nine in 1991. Within the elderly age group, the number of those aged 80 years and over will more than treble from the 1991 figure of 78,000 to 246,000 in 2031. Women in this age group will, by then, outnumber men by three to one.

BIRTH AND DEATH RATES
For total population

Projections of New Zealand's working age population (16-64 years) indicate steady growth, from 2.190 million in 1991 to 2.767 in 2021, an increase of over half a million or 26 percent. This increase is due to the projected annual accession to this age group exceeding retirements by an average of 19,000 persons per year. During 2021-2031 the working age population will remain stable, but will have an older age profile. The proportion of the total population who are in the working age group will drop, from 64 percent in 1991 to approximately 60 percent in 2031.

The number of children under 16 years of age is projected to increase initially from 843,000 in 1991 to peak at 986,000 in 2005, but the number will then drop to 885,000 in 2020 before rising to 928,000 in 2031. These rises and falls reflect swings in the number of births caused by changes in the number of women of childbearing age. Children aged under 16 years will comprise a smaller percentage of the population in the future, decreasing from about 25 percent in 1991 to 20 in 2031.

Table 4.16. POPULATION PROJECTIONS 1991-2031*

Age-group1991 (Base)2001201120212031
* Assuming ‘medium’ fertility and ‘medium’ mortality with long-term annual immigration of 5000 per annum.
0-15843000965000947000886000928000
16-6421900002399000263100027670002765000
65+385000455000543000711000892000
        Total population34180003820000412000043640004584000

Contributor

  • 4.1-4.5 Department of Statistics.

Further information

Census of Population and Dwellings 1986

Ages and Marital Status. Series C, Report 3. Department of Statistics.

1957 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 1991 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. Health Statistical Services (annual).

Hospital and Selected Morbidity Data. Health Statistical Services (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 5. Social framework

Toddlers, Auckland.

5.1 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 5.1 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.

HOUSEHOLD SIZE
Persons per dwelling

Table 5.1. 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 only73426268.7
One family plus other persons561725.3
Two families (with or without other persons)151291.4
Three or more families (with or without other persons)11400.1
Non-family households635795.9
One-person households19916418.6
                    Total1,069446100.0

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 5.2

Table 5.2. TYPES OF DWELLINGS

TypeNumber of dwellings1986 census number of occupants
1981 census1986 censusAggregate*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 dwelling—
     Permanent private dwelling—
        Separate house79359986234126827293.1
        Two houses or flats joined together197889†1033382154182.1
        Three or more flats (houses) joined together909841651831.8
        Flat/house attached to business or shop78308190224462.7
        Bach, crib, hut (not in a work camp)37895949122852.1
        Not specified-7209180512.5
                    Total, permanent private dwellings1003107107800531161122.9
Temporary private dwellings237910596‡228932.2
Non-private dwellings6396714916808123.5
                    Total, occupied dwellings1011882109574733070833.0
Unoccupied dwellings—
        Occupants temporarily away3022531128
        Empty habitable dwellings (to let, for sale, etc.)2869835454
        Holiday residences3819340950......
                    Total, unoccupied dwellings97113107535......
Dwellings being built683410440

Table 5.3 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 5.3. NUMBER OF OCCUPANTS OF PERMANENT PRIVATE DWELLINGS

Number of occupants1981 census1986 censusIntercensal percentage change
DwellingsPercentageDwellingsPercentage
118499218.420946019.413.2
229300429.232926230.512.4
316464016.418436517.112.0
418170718.119083317.75.0
510594510.61008489.4−4.8
6440194.4383613.6−12.9
7 or more288032.9248672.3-13.7
                    Total, occupied1003113100.01078005100.07.5

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 5.4.

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 5.4. TENURE OF DWELLINGS AND CATEGORY OF LANDLORD

Tenure and category of landlord1981 census1986 censusIntercensal percentage change
Permanent private dwellingsPercentage of total specifiedPermanent private dwellingsPercentage of total specified
Owned—
     With mortgage42345942.444625341.95.4
     Without mortgage28734328.833942031.818.1
Rented or leased from—
     Private person/company14313614.414880613.94.0
     Housing Corporation570725.7560885.3−1.7
     Other government departments218012.2177391.7−18.6
     Local authority190951.9165241.5−13.5
     Landlord not specified122851.2107311.0−12.6
Total, rented or leased25338925.424989423.4−1.4
Provided free335283.4305852.9−8.8
Not specified538811853120.0
                    Total, permanent private dwellings1003113100.01078005100.07.5

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.

HOME OWNERSHIP
By ethnic composition

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 5.5 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 5.5. USUAL COMPOSITION OF MAORI AND POLYNESIAN HOUSEHOLDS, 1986 CENSUS*

Household typeNew Zealand MaoriPacific Island Polynesian
Number†Percentage of totalNumber†Percentage of total

* Private households occupying permanent dwellings where the ‘occupier’ is a person of ‘solely New 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 only4395063.31146957.5
One family plus other persons958513.8440722.1
Two families (with or without other persons)45876.619029.5
Three or more families (with or without other persons)6090.92851.4
Non-family households39755.78374.2
One-person households67719.710625.3
                    Total69477100.019962100.0

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 5.6. 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 5.6. 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 house5462478.81386068.9
     Two houses or flats joined together65349.4252612.5
     Three or more flats (houses) joined together68649.9352817.5
     Fla/house attached to business or shop5460.81860.9
     Bach, crib, hut (not in work camp)7081.0240.1
     Not specified678114
                    Total69957100.020224100.0

Number of occupants. The distribution of New Zealand Maori and Pacific Island Polynesian dwellings by number of occupants at the 1986 census (see Table 5.7) 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.

ETHNIC COMPOSITION OF HOUSEHOLDS

Table 5.7. NUMBER OF OCCUPANTS OF MAORI AND POLYNESIAN DWELLINGS, 1986 CENSUS*

Number of occupants†New Zealand MaoriPacific Island Polynesian
DwellingsPercentage of totalDwellingsPercentage 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.

One726610.411105.5
Two1290918.5221110.9
Three1289718.4276013.6
Four1351219.3336916.6
Five998714.3337516.7
Six61298.8282313.9
Seven or more725710.4459922.7
                    Total69957100.020244100.0

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 5.8 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 5.4).

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 5.8. TENURE OF MAORI AND POLYNESIAN DWELLINGS AND CATEGORY OF LANDLORD, 1986 CENSUS*

Tenure and category of landlordNew Zealand MaoriPacific Island Polynesian
Permanent private dwellingsPercentage of total†Average number of occupants‡Permanent private dwellingsPercentage of total†Average number of occupants‡

* Permanent dwellings where the ‘occupier’ is a person of ‘solely New 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 mortgage2236232.54.4723636.25.7
     Without mortgage993914.43.612426.24.7
Rented or leased from—
     Private person/company1443921.0..428421.4..
     Housing Corporation1270818.5..539727.0..
     Other government departments30004.4..3211.6..
     Local authority12691.8..3932.0..
     Landlord not specified23463.4..8314.2..
Total, rented or leased3376849.03.61122656.24.5
Provided free27844.03.72701.44.6
Not specified11013.32704.4
                    Total69957100.03.920224100.04.9

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 5.9. HOUSEHOLD TRANSPORT

Number of motor vehicles*1981 census1986 censusIntercensal percentage change
HouseholdsPercentage of total†HouseholdsxPercentage 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.

011835612.414029513.318.5
147658350.151979549.39.1
226656228.030077428.512.8
3644316.8691836.67.4
4175561.8172381.6−1.8
5 or more77250.861260.6−20.7
Not specified51897...24597...−52.6
                    Total1003113100.01078005100.07.5

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 fifth year, to provide data for the revision of the Consumers Price Index (see section 23.1, Consumer prices), and a smaller sample of approximately 3000 private households is selected in other years. In the 1990-91 year, 2934 private households (comprising 7941 people) participated in the survey, each household containing an average of 2.71 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 5.1. INCOME DISTRIBUTION OF HOUSEHOLDS, 1990-91*

Annual incomeApproximate equivalent weekly incomeNumber of householdsAverage weekly income per household

* As estimated from Household Expenditure and Income Survey.

† Including nil and loss.

        $$                    (000)$
Under 11,000†Under 211110.4100.07
11,000-16,999211 and under 326106.6271.15
17,000-19,999326 and under 38498.9351.17
20,000-25,999384 and under 499126.6439.66
26,000-31,999499 and under 61495.2556.27
32,000-39,999614 and under 767117.4685.74
40,000-47,999767 and under 92193.3842.43
48,000-58,999921 and under 1,132116.51,012.76
59,000-74,9991,132 and under 1,438106.81,257.70
75,000 or over1,438 or over            108.92,162.74

Table 5.11. AVERAGE WEEKLY EXPENDITURE FOR SELECTED FAMILY TYPES, 1990-91

Expenditure groupYoung couple*Older coupleCouple with 1 childCouple with 2 childrenCouple with 3 or more childrenSolo parentNon-family householdsExtended family householdsAll households
* Under 35.
 $
Food118.8091.30127.40153.10159.1084.1058.90156.30105.50
Housing257.4660.90142.00174.30175.20134.90101.30163.60127.40
Household operations102.5085.4095.7097.9096.6071.1056.2099.6081.80
Apparel32.2024.6037.2043.2043.5020.3014.6037.2028.30
Transportation177.00116.90143.00145.30120.4083.8067.30140.60111.80
Other goods78.6055.8090.3097.4086.2050.4044.30103.8068.20
Other services97.6085.80118.00123.00117.3055.2050.80113.9087.30
Total expenditure864.10520.60753.70834.10798.30499.90393.40815.40610.40
Total households (000)47.2224.6119.3143.697.6101.5282.764.11,080.6

Table 5.12. AVERAGE WEEKLY HOUSEHOLD EXPENDITURE, 1990-91

Expenditure group and subgroupAverage weekly household expenditure*Percentage of total expenditure
* Averages have been rounded to the nearest 5 cents.
 $percent
Food—
      Fruit8.001.3
      Vegetables8.601.4
      Meat14.602.4
      Poultry3.100.5
      Fish2.500.4
      Farm products, fats, oils13.102.2
      Cereals, cereal products14.302.3
      Sweet products, spreads, beverages11.801.9
      Other foodstuffs8.701.4
      Food consumed in eating places, takeaway foods20.903.4
                    Total, food105.5017.3
Housing—
      Rent24.804.1
      Net capital outlay and related expenses−9.30−1.5
      Mortgage payments50.708.3
      Payments to local authorities12.802.1
      Property maintenance goods17.102.8
      Property maintenance services31.305.1
      Housing expenses not elsewhere classified0.10
                    Total, housing127.4020.9
Household operation—
      Domestic fuel and power17.202.8
      Home appliances18.803.1
      Household equipment and utensils3.200.5
      Furniture8.501.4
      Furnishings2.500.4
      Floor coverings3.100.5
      Household textiles4.100.7
      Household supplies6.801.1
      Household services17.502.9
                    Total, household operation81.8013.4
Apparel—
      Men's clothing4.600.8
      Women's clothing9.501.6
      Children's clothing2.600.4
      Clothing not otherwise classifiable3.600.6
      Clothing supplies and services2.800.5
      Men's footwear1.100.2
      Women's footwear1.600.3
      Children's footwear0.800.1
      Footwear not otherwise classifiable1.500.2
      Footwear supplies and services0.30
                    Total, apparel28.304.6
Transportation—
      Public transport in N.Z.6.001.0
      Overseas travel24.003.9
      Purchase of road vehicles37.806.2
      Vehicle ownership expenses41.306.8
      Private transport costs n.e.c.2.700.4
                    Total, transportation111.8018.3
Other goods—
      Tobacco products8.201.4
      Alcohol15.402.5
      Medical goods3.200.5
      Toiletries and cosmetics4.300.7
      Personal goods5.901.0
      Pets, racehorses and livestock5.400.9
      Publications, stationery and office-type equipment10.901.8
      Leisure and recreational goods10.101.7
      Recreational vehicles2.600.4
      Goods n.e.c.2.200.4
                    Total, other goods68.2011.2
Other services—
      Health services10.301.7
      Personal services4.100.7
      Educational and tuitional services5.500.9
      Accommodation services3.600.6
      Financial, insurance and legal services14.802.4
      Vocational services2.000.3
      Leisure services11.601.9
      Services n.e.c.3.300.6
      Expenditure n.e.c.12.302.0
      Contributions to savings19.703.2
                    Total, other services87.3014.3
                    Total, net expenditure610.30100.00
                    Number of households surveyed2,934 

Table 5.13. HOUSEHOLD AMENITIES

Amenity in dwellingPercentage of all surveyed households*
1989-901990-91
* Household Expenditure and Income Survey.
Electric range or wall oven94.294.3
Gas, coal or oil-fired range9.79.8
Microwave oven51.558.0
Telephone94.993.9
Clothes-washing machine96.196.2
Clothes dryer57.560.2
Separate refrigerator33.532.6
Refrigerator/freezer combination75.374.4
Separate deep-freeze unit57.356.3
Dish-washing machine20.822.2
Colour television (owned)88.090.0
Monochrome television (owned)13.411.9
Colour television (rented)9.47.3
No television2.93.3
Video recorder (owned)55.262.0
Video recorder (rented)1.91.5
Home computer (mains operated, with keyboard)11.613.3
Portable electric heater85.083.1
Electric heater fixed in place32.632.0
Portable gas heater9.511.4
Gas heater fixed in place8.99.2
Open fire32.430.2
Slow-combustion fire30.431.3
Portable kerosene heater4.83.9
Wet-back fire of any kind21.320.1
Central heating of any kind4.76.0
Waterbed17.017.9
Pet dog26.227.3
Pet cat49.547.0

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 5.14.

Table 5.14. INDICATORS OF STANDARDS OF LIVING

ItemNew ZealandUnited StatesCanadaAustraliaUnited KingdomSwedenJapan

* 1991

† 1988

|| 1986

‡ 1985.

Sources: OECD Economic Survey of New Zealand, May 1989; OECD in Figures 1991; World Statistics in Brief (UN Statistical Pocketbook) 1990; UNESCO Statistical Yearbook 1989.

Population density (per km2) 198912.7*26.52.62.2233.819326
GDP per capita ($ US)—198912503206291601916800146422230322896
Private consumption per capita ($ US)—1987623612232100597389773172737623
Passenger cars per 1000 inhabitants—1987583*731.5579.5552367.3431.7402.3||
Telephones per 1000 inhabitants—1987697..780550‡....555‡
Television sets per 1000 inhabitants—1987358813||546472||534||393||585||
Doctors per 1000 inhabitants—19891.92.3†2.2†..1.4†3.11.6†
Infant mortality (per 1000 live births)—19898.3*9.7†7.2†7.98.45.84.6
Total public education expenditure as percentage of GNP—19895.44.8†6.54.7†5.07.25.0†
Employment by sector—1989 (percentage):
     Agriculture10.32.94.35.52.13.67.6
     Industry25.426.725.726.529.429.434.3
     Services64.370.570.168.068.467.058.2
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

5.2 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.

Triple wedding 1991, Auckland.

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 5.15. MARRIAGE RATES

December yearNumber of marriagesMarriage rate
Crude*General†

* Per 1000 mean population.

† Per 1000 mean not-married population aged 16 years and over.

1986240377.3325.28
1987244437.3924.93
1988234857.0623.34
1989227336.8022.08
1990233416.9122.05

MARRIAGE
Annual rates per 1000 mean population

Marital status of the population

Table 5.16 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.

MARITAL STATUS: Males
Population over 20 years of age

The outcome of these changes during the 1981-86 intercensal period is shown in Table 5.17, 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 5.16. MARITAL STATUS BY AGE GROUP, 1986 CENSUS*

Age group (years)Never marriedMarried†SeparatedWidowedDivorcedNot specifiedTotal

* Usually resident New Zealand population.

† Includes persons remarried.

Males
15-19146370x65415042515658152928
20-24118740201361716813002079143052
25-34820831490911237539675843261254787
35-442018416639212651948130472625215856
45-54106591243297611216697802232156771
55-64101491145194455577872661629143799
65-74578773083185194863069108394365
75 and over29073036061812903948109848831
     Total396879678564414273180042054196711210389
Females
15-19140151222926718364467147168
20-24906874217443381477831716139845
25-3452887171996168631239124022898258285
35-4412720165426141453444175262352215601
45-54655211896869218202113761893153915
55-64699610124736392319374851617144183
65-7472095918115244260337681347115638
75 and over743118603432536701425171683277
     Total3246336798244813213251354798180061257909

Table 5.17. 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 married34647031.339687933.35040914.5
Married‡66868860.467856157.098731.5
Separated357453.2414243.5567915.9
Widowed297962.7318002.720046.7
Divorced260552.4420543.51599961.4
Not specified23586...19671...−3915−16.6
                    Total1130340100.01210389100.0800497.1
Females
Never married27187523.832463326.25275819.4
Married‡67022158.667982754.896061.4
Separated424053.7481323.9572713.5
Widowed12546011.013251310.770535.6
Divorced337082.9547984.42109062.6
Not specified22695...18006...−4689−20.7
Total1166364100.01257912100.0915487.8

MARITAL STATUS: Females
Population over 20 years of age

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 5.18 shows the male and female populations living in de facto relationships by age group, irrespective of their legal marital status.

Table 5.18. DE FACTO RELATIONSHIPS*

Age group (years)1981 census†1986 census†Intercensal increase or decrease (-)
NumberPercentage distributionNumberPercentage distributionNumberPercentage

* Usually resident New Zealand population.

† Includes people in the ‘married’ and ‘not specified’ marital status categories.

Males
15-1925175.718993.3−618−24.6
20-241151126.21312522.8161414.0
25-341640437.32230538.8590136.0
35-44780317.71157120.1376848.3
45-5438738.853889.4151539.1
55-6414553.324454.299068.0
65-743720.86421.127072.6
75 and over810.21710.390111.1
     Total44019100.057549100.01353030.7
Females
15-19676215.4579610.1−966−14.3
20-241337730.41677329.2339625.4
25-341408232.01982134.5573940.8
35-44627614.3955216.6327652.2
45-5424005.538016.6140158.4
55-647891.812302.144155.9
65-742010.54020.7201100.0
75 and over510.11080.257111.8
     Total43941100.057480100.01353930.8

Age at marriage

In 1990, one bride in every 19 was under 20 years of age. Bridegrooms were usually older than their brides; only one in every 90 was under 20 years of age. Of the people married in 1990, 1516 or 3.2 percent were under 20 years of age; 14,278 or 30.6 percent were aged 20-24 years; 14,099 or 30.2 percent were 25-29 years; 10,531 or 22.6 percent were 30-39 years; and 6258 or 13.4 percent were 40 years of age and over.

Table 5.19. AGES OF PERSONS MARRIED, 1990

Age of bridegroom, in yearsAge of bride, in yearsTotal bridegrooms
Under 2020-2425-2930-3435-3940-4445 and over
Under 20142102184312272
20-247553895761151401145617
25-292663492304065014034137635
30-3463852173699932674274077
35-3910201577626383142411980
40-444802093093282481451323
45 and over43912319831744913072437
      Total brides12448661646429371537959153923341

AGE AT MARRIAGE
Average age at first marriage for males and females

Table 5.20 gives the average ages at marriage for the seven years to 1988, and these point to a steady trend toward later marriages. New Zealand men and women marrying for the first time in 1990 were on average 1.1 years older than their counterparts in 1984. Also, with an average age of 24.9 years at first marriage brides in 1990 were 2.3 years younger than their grooms (average age 27.2 years).

Table 5.2. 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
198926.9140.7259.5524.6937.2952.27
199027.2241.1358.5524.9037.2152.80

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.

Te Korowai Aroha—Aotearoa Inc. Te Korowai Aroha—Aotearoa Inc. is a voluntary Maori counselling service established two years ago. The service is in partnership with Marriage Guidance New Zealand (MGNZ) and focuses on relationship counselling.

Whanau Whanui is the executive committee for Te Korowai Aroha—Aotearoa. Its role is to set policy and direction for Te Korowai Aroha. Komiti Mahi, a sub-committee of Whanau Whanui, develops financial policy for Whanau Whanui. Komiti Whakapumau Take is the Professional Standards and Practice Committee which monitors the training and mahi of Te Korowai Aroha to ensure that the delivery of service to Tauira/Whanau is tika. Funding to Te Korowai Aroha—Aotearoa is by way of an annual grant from MGNZ.

There are nine Iwi Whanau established in Kaikohe, Waikato, Hauraki, Tauranga Moana, Rotorua, Whakatane, Tairawhiti, Napier and Wanganui. Each Iwi Whanau is affiliated to Te Korowai Aroha—Aotearoa.

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 applications to be heard in a Family Court and makes provision for 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 6.2, Income support.

The Child Support Bill 1991 introduces a new regime for assessing non-custodial parental support of children. When enacted it will replace the Liable Parent Contribution Scheme which is presently contained in the Social Security Act 1964 and administered by the Department of Social Welfare. It will also replace court-based maintenance orders in respect of children, presently contained in the Family Proceedings Act 1980.

Under the bill, the Inland Revenue Department (Child Support Agency) is designated the role of administering the new regime. It will assess the amount of child support to be paid by parents according to a specific formula and will collect and pay child support to the Crown when the custodial parents are social welfare beneficiaries, and to custodial parents not receiving social welfare benefits.

In addition, the agency will collect and pay court-ordered spousal maintenance to qualifying spouses and maintenance in respect of spouses and/or children which has been agreed on voluntarily, if and when an application is made to the agency.

Table 5.21. DISSOLUTION ORDERS GRANTED

Ground or evidence presented198819891990
Applications filed for dissolution of marriage881285559036
Evidence of irreconcilable breakdown—
      Separation order588538494
      Written separation agreement388235083596
      Verbal separation agreement302630913499
      Lived apart, no agreement or order116414111442
                    Total, irreconcilable breakdown866085489031
      Other dissolution orders1175
                    Total, dissolution orders867185559036

Table 5.22. DURATION OF MARRIAGES ENDING IN DISSOLUTION BY AGES OF HUSBANDS AND WIVES AT MARRIAGE, 1990

Duration of marriage (in years)*Age (in years) at marriage
Under 2020-2425-2930-3435-3940-4445 and over (including not stated)Total
* Duration of marriage calculated from both month and year of dissolution.
Husbands (all petitions and applications)
Under 5434813311408165971238
 5–9911150630290157991282545
10-141308233321617137731627
15-19177828278794623201451
20 and over19013044701224821202175
                    Total631458620417924032453389036
Wives (all petitions and applications)
Under 5182569227797849541238
 5–952612113931949957652545
10-14544688197944425351627
15-19558658145501711121451
20 and over7831098191482612172175
                    Total2593422411534652641541839036

DIVORCE
Ratio of divorces to new marriages

Table 5.23. APPLICATIONS AND ORDERS UNDER FAMILY PROCEEDINGS, GUARDIANSHIP AND DOMESTIC PROTECTION ACTS

 198819891990
ApplicationsOrdersApplicationsOrdersApplicationsOrders
* Includes definition of access for which the original undefined access provisions may not have been the subject of court orders.
Married parties
     Separation1070213851169666154
     Maintenance127227010453041457341
     Custody28749952782114228231008
     Access*723528486688333611
     Non-violence128442812684971231476
     Non-molestation191346718325471764546
     Occupancy of home121633911163411057329
Non-married parties
     Paternity1247563973544739455
     Maintenance665207499149393158
     Custody21909902565118326261160
     Access*407394345588451665
     Non-violence101840311105461178534
     Non-molestation133944314545571629613
     Occupancy of home312112383156349147

Table 5.24. CUSTODY ORDERS, 1990

Type of partyNumber of children involvedTotal
1234567 or more
* Joint, divided, other party.
Married—
     Custody to mother261289131461071745
     Custody to father614914311-129
     Custody, other*296035631-134
          Total orders3513981805514911008
          Total children351796540220705472038
Non-married—
     Custody to mother6141654113---833
     Custody to father782852---113
     Custody, other*1614283---214
          Total orders8532355418---1,160
          Total children85347016272---1,557

Table 5.25. APPEALS TO HIGH COURT AGAINST DECISIONS IN FAMILY COURTS

YearHeardAllowedYearHeardAllowed
* 1989 is the last year for which statistical information is available.
19841033719875822
1985832919885915
198680361989*3712

5.3 Human rights, immigration and citizenship

Human Rights Commission

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 the Human Rights Commission Act 1977. 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.

In addition to the statutory requirements to investigate complaints, the commission has a strong educational component. All main regional areas are visited at least once a year in order to meet schools, ACCESS groups, women's organisations, government departments, employer organisations and any other groups or individuals who are interested in learning about the commission's work. A newsletter Tirohia-Focus is published quarterly.

The commission also prepares submissions on legislation and reports with human rights implications. Specific current issues of concern are immigration and refugee matters, privacy, children's rights and matters to do with equal opportunities.

An Equal Opportunities Tribunal was also constituted under the Act. Its function is to adjudicate in civil proceedings brought by the commission alleging discriminatory practice under the Human Rights Act.

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 a criminal offence to incite racial disharmony with intent. 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

The Ministry of Women's Affairs, an autonomous department of state, was established 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 the Women's Appointment File and the Suffrage Centennial Trust.

The Suffrage Unit liaises with individuals and organisations to develop 1993 projects and events in the community, to recognise the achievements of women and further develop women's knowledge, skills, opportunities and choices.

The 1993 Suffrage Centennial Trust, Whakatu Wahine, chaired by Dame Miriam Dell, was established by the government to manage the trust fund over a three year period. A total of $5 million has been allocated by the government for grants, promotion and administration. This includes a $1 million grant from the Lottery Grants Board, and a generous donation from the Roy McKenzie Foundation.

The Suffrage Unit also liaises with government agencies to co-ordinate and monitor their planned 1993 activities. The unit's role contributes to meeting the government's objective of recognising this significant historical landmark and to acknowledge the contribution women have made, and will continue to make to New Zealand's social, political and economic life.

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.

Major issues affecting women recently include:

Education. There is now an expectation of educators to create an environment in the education system which recognises and broadens the aspirations and achievements of women.

The funding structure of the tertiary education system is monitored by the Ministry of Education to ensure female students are not disadvantaged in gaining access to learning. Additional funding is made available for programmes which encourage access and participation by women. The policy division of the Ministry of Education includes a Girls and Women Section, which develops policy relating to female learning. Also of significance to women is the improvement in quality and accessibility of early childhood care and education.

Te Ohu Whakatupu, of the Ministry of Women's Affairs, takes an interest in all aspects of education that effect Maori girls and women.

Policy advice provided to the Minister included specific areas of Maori education such as kohanga reo and kura kaupapa Maori. In the climate of education reform, Te Ohu Whakatupu has focused on the particular position of Maori females in the mainstream system. Curriculum content, access to early childhood education, assessment, school leaving age, post-school training, qualifications, and community participation are some of the areas for which there are serious implications for Maori girls and women.

Housing. The Housing Corporation has established a women's policy unit 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.

The Maori Women's Housing Research Project which was established to document the existing housing situation of Maori women was completed in 1991. The project was managed jointly by government officials and Maori women community representatives. The Ministry of Women's Affairs, Manatu Maori, the Iwi Transition Agency, and the Department of Social Welfare were all contributors to the project. The project report makes a number of recommendations to the Government concerning the housing circumstances and experiences of Maori women and their families and the obstacles that prevent their access adequate to housing.

Paid work-force. 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. Topics covered include occupational segregation, wages and conditions, and assessing how economic and social changes and policies have affected various groups of women.

In line with the Government's preference for a voluntary co-operative approach to equal employment opportunities (EEO) the Employment Equity Act 1990 was repealed. In cooperation with the private sector an EEO Trust has been established to promote equal employment opportunities in the private sector. Additional funding has been made available in a contestable EEO fund.

The work begun in 1990 on the Gender Neutral Job Evaluation Kit was completed. The kit was promoted to all large employers and employee groups with high numbers of women members.

The women's training and employment policy package developed in 1989/90 has proved successful in improving job-seeking and related services for unemployed women.

Measuring unpaid work. The Department of Statistics, with the sponsorship of nine other government agencies, conducted a pilot time use survey in August 1990 to test the feasibility of undertaking a much larger survey of the way New Zealanders use their time. Time use surveys provide a means of measuring the range and extent of unpaid work done by women and men. Unpaid work includes all the cooking, cleaning, laundry, shopping, gardening, home maintenance and childcare done for the household, as well as voluntary work and help given to others in the community. The pilot survey showed that women spend an average of about five hours in a 24-hour day on unpaid work, compared to about three hours a day spent by men.

Violence and pornography. In the 1990-91 financial year, 54 women's refuges received $2.87 million and 62 rape/sexual abuse support services received $1.45 million from the Department of Social Welfare's programmes for services for victims of violence against women.

In October 1990 the Department of Justice published a draft proposal for new censorship and pornography legislation. The Ministry of Women's Affairs made both written and oral submissions on this proposal. The ministry hosted a consultation day for women's organisations on the proposed bill. The purpose of the consultation was to provide information and to seek the views held by these organisations.

Childcare. During 1990 two research projects into the provision and demand for out-of-school care and the funding of it were undertaken. The government has yet to decide on policy proposals.

As the funding announced in the 1989 Budget was introduced the number of childcare places, particularly for under two year olds, increased.

Health. In response to the recommendations in the Report of the Cervical Cancer Inquiry (1988), a national cervical screening programme was further developed, draft legislation to establish a Health Commissioner and patient advocates was introduced to the House, and guidelines for informed consent were published.

Preliminary work on establishing a breast cancer screening policy and programme began with the establishment of two pilot mammography programmes in Waikato and Otago/Southland and the publication of policy discussion booklets by the Ministry of Women's Affairs and the Department of Health.

The passage of the Nurses Association Act 1990 freed women giving birth to choose to be attended by independent midwives practising autonomously or general practitioners.

A Ministerial Advisory Committee on Women's Health continued to provide policy advice to the Minister of Health. The Department of Health contains a Women's Health Unit.

Te Ohu Whakatupu is analysing possible impacts of the recently announced health reforms on Maori women and their whanau, hapu and iwi. Of particular interest to Maori is the feasibility of Maori-health care plans. Advice was also provided on endometriosis, heart diseases, the under reporting of Maori health statistics and cultural safety-acceptable practices in nursing Maori patients.

A significant initiative of the New Zealand Council of Maori Nurses is the inclusion of a Maori component to nursing training and assessment which will comprise 20 percent of the State Nursing Examination from 1992.

A programme has been designed to encourage Maori women to give up smoking and take on sport. The Maori Women's Welfare League's—Healthy Lifestyles programme aims to reduce the disproportionate incidence of heart disease among Maori women. This year regional and national netball competitions were organised, ranging from golden oldies to junior teams. Approximately 280 teams took part.

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.

Both a Women's Health Unit within the Department of Health, and a Ministerial Advisory Committee on Women's Health provide policy advice to the Minister of Health.

Maori women. Examples of issues of concern to Maori women during 1991 included:

Putea pounamu—Maori women elders attended a national gathering of kuia at the invitation of Te Ohu Whakatupu. The purpose of the hui was to allow the kuia to review the work programme of Te Ohu Whakatupu and to identify and discuss social, economic, cultural and political issues that affect Maori women and their iwi.

The Putea Pounamu project initiated by Te Ohu Whakatupu to encourage Maori women to participate in local, regional and national decision making led to Maori women taking further initiatives to continue networking. One outcome of the project has been the establishment of two scholarships. The Putea Pounamu Telecom Scholarship is awarded for a university course of study in business management. The Putea Pounamu Scholarship for a leadership training course in outdoor activities has been sponsored by the Hillary Commission.

Business development—The Review of Enterprise Assistance in 1990 aimed to improve the co-ordination and cost-effectiveness of the delivery of enterprise assistance and business development services. In a similar vein, Te Ohu Whakatupu sought to apply available resources to the target group of Maori women most effectively.

The programme, ‘Wahine Pakari’ uses ‘cascade’ methods of training where Maori women trained as seed trainers or ‘trainovators’ train other Maori women in entrepreneurship and business management skills. In 1990-91, ‘Wahine Pakari’ achieved the design of a culturally and gender appropriate training course, the production of a manual embodying the programme and the training of 27 Maori women from throughout the country.

Maori women and lenders came together through a research project and a seminar to address issues in obtaining business development finance. Consequently, a booklet for Maori business women as borrowers was published. A video and accompanying booklet portraying successful Maori business women as role models were also produced. A range of reports were also produced covering the statistics of Maori women in business, Maori businesswoman and banking, and the role of small business in the New Zealand economy.

On the policy front, Te Ohu Whakatupu has been working to create a greater awareness amongst policy-makers of:

  • the need to consider Maori women as a growing entity in the world of business who have specific problems and needs in business development; and

  • the benefits to the growth of New Zealand and in particular to the Maori community of enhancing and increasing Maori women's contribution to and participation in business and enterprise development.

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 5.26, 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.

MAJOR RELIGIONS
Stated religious beliefs

Table 5.26. 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 carrying a statutory right to object to providing the information sought.

Anglican (Church of England)90841580713579184729.626.624.7
Presbyterian56473552104058751718.417.118.3
Roman Catholic (incl. catholic undefined)47545245287149615815.514.915.5
Methodist1718161471921532435.64.84.8
Baptist4905949536679351.61.62.1
Christian n.e.s.51963100815423511.73.31.3
Ratana3507935763397291.11.21.2
Mormon (Latter Day Saints)3595837431371461.21.21.2
Brethren2435124213197100.80.80.6
Salvation Army2195120406168210.70.70.5
Jehovah's Witness1333813689163770.40.50.5
Pentecostal n.e.s.†48306369157170.20.20.5
Assemblies of God554712465143520.20.40.4
Seventh Day Adventist1187711427120150.40.40.4
Other specified‡1581361640581151825.25.43.6
No religion1003981660145337663.35.516.7
Object§43489846857324473114.215.47.6
Not specified3546010431058686.........
                    Total310326331433073263283100.0100.0100.0

Hindu worshippers purify temple, Auckland.

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 5.27 compares the population of major ethnic groups at the 1981 and 1986 censuses in terms of the new classification adopted.

Table 5.27. ETHNIC ORIGINS OF POPULATION

Ethnic origin1981 census1986 censusIntercensal percentage change
NumberPercentage of totalNumberPercentage 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 Polynesian11,8980.414,7960.524.4
     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 Polynesian†2,4300.12,6340.18.4
     Pacific Island Polynesian-other ethnic origins8011,20950.9
     Other combinations of two ethnic origins‡765723−5.5
Total, two ethnic origins133,3594.3130,0474.0-2.5
Three ethnic origins1,6980.19,2100.3442.4
Not specified36,612...36,561...−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 5.28 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 4.4. Composition of the population.

Table 5.28. COMPARISON OF AGE STRUCTURE OF MAJOR ETHNIC GROUPS, 1986 CENSUS*

Age group (years)Percentage of population in age group
European†New Zealand Maori‡Pacific Island Polynesian†Chinese†Indian†Other§

* 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 5.29.

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 5.29. COUNTRY OF BIRTH OF POPULATION*

Country of birth1981 census1986 censusPercentage intercensal change
NumberPercentage of specified casesNumberPercentage 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
Canada5,5080.264110.216.4
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 specified†13,31421,55561.9
                    Total3,143,307100.03,263,283100.03.8

Immigrant family from Taiwan.

Table 5.30 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 5.3. PERSONS BORN OVERSEAS BY YEARS OF RESIDENCE IN NEW ZEALAND

Years of residence1981 census1986 censusPercentage intercensal change
Number born overseas*Percentage of specified casesNumber 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 persons 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 specified†32,766...29,871...−8.8
                    Total‡464,253100.0482,553100.03.9

BIRTHPLACES
Country of birth of population

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; and have acted in a manner which is contrary to the interests of New Zealand; or

  • 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 such as Germany, 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.

A total of 13,098 people were granted citizenship for the year ended 31 March 1991, compared with 13,176 in the previous year.

CITIZENSHIP
Number of applications granted

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. Figures for the year ended 31 March 1991 showed a net gain of 11 616. (See also section 4.3, 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.

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.

In July 1990, the Minister of Immigration introduced the Immigration Amendment Bill into Parliament. The bill amends the Immigration Act 1987 to strengthen and more clearly define the legal framework for the implementation of Government Immigration Policy. The bill provides for the setting up of a streamlined appeal avenue and the strengthening of compliance provisions in the Act.

At the same time the Minister announced proposed changes to immigration policy. The main changes will affect the Occupational and Business categories of entry. Applicants will now be able to be assessed under a points system which awards points to migrants for age, employability and settlement factors and then ranks them. Applicants with the highest number of points will be given residence. The existing Business Immigration Policy will be tightened to ensure that the NZ$500,000 investment capital brought into the country under the scheme remains in New Zealand for at least two years.

Notwithstanding the above changes, below is a summary of New Zealand's existing 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.

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 stay 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.

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.

Real estate agent offices' adapt to influx of Asian immigrants.

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.

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.

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.

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.

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 or from New Zealand diplomatic and consular representatives overseas.

5.4 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 5.31 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 5.31. 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
 0-45346913.95376013.30.4
 5-95517614.35106012.6−7.4
10-145437814.15293213.1−2.7
15-17302347.9308587.62.0
18-19198125.1185614.6−6.4
20-243963310.34440011.012.0
25-29293167.6361178.923.1
30-34235536.1272586.715.6
35-39176734.6217625.423.1
40-44162214.2163894.01.0
45-49130473.4149073.714.2
50-54106172.8117872.911.0
55-5977222.092252.319.5
60-6454691.463451.616.0
65-6939811.040201.01.1
70-7424840.627030.78.9
75-7912600.315210.421.0
80 and over8910.211640.330.6
                    Total384933100.0404775100.05.1

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 5.32. 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.

MAORI TRIBAL LOCATIONS

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 5.32. 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—
     Northland286717.4306757.67.0
     Auckland9352224.39876324.45.6
     Thames Valley62341.662221.5−0.2
     Bay of Plenty4337711.344,57411.02.8
     Waikato3868210.04028110.04.1
     Tongariro118683.1113882.8−4.0
     East Cape201155.2206645.12.7
     Hawkes Bay262476.8273186.74.1
     Taranaki116763.0122103.04.6
     Wanganui121773.2125463.13.0
     Manawatu108632.8117062.97.8
     Horowhenua55111.459131.57.3
     Wellington314828.2335708.36.6
     Wairarapa46231.247131.21.9
          Total, North Island345,04889.6360,54389.14.5
South Island—
     Nelson Bays27360.729130.76.5
     Marlborough25080.726340.65.0
     West Coast15810.418270.415.6
     Canterbury152644.0168844.210.6
     Aorangi29010.825950.6−10.5
     Clutha-Central Otago17190.420970.522.0
     Coastal-North Otago41911.147491.213.3
     Southland81242.185832.15.6
          Total, South Island3902410.14228210.48.3
     Extra-county islands and shipping†5010.15910.118.0
     Not specified/no fixed abode3570.113740.3285.0
          Total, New Zealand384933100.0404775100.05.2

Male-female ratio. At the 1986 census, for the first time, females outnumbered males in the Maori population. There were 201129 males and 202056 females in the total Maori population, representing a sex ratio of 100.5 females to every 100 males.

Dynamics of population change. The 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 5.33 shows demographic indexes based on those of half or more New Zealand Maori descent.

The Maori fertility rate has undergone a decline in the last three decades, falling from an estimated 6.18 births per woman in 1962 to 2.16 births per woman in 1986 and stood at 2.28 in 1990. 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 1990 this had narrowed to 0.2 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 1990, the median age at childbearing was 24.6 years for Maori women and 28.0 years for non-Maori women.

Table 5.33. 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.

1982621621.972.27x13184.6517.311.091.06
1983627121.902.23x13264.6217.271.071.04
1984674523.27x2.34x12634.3418.911.141.10
1985646922.072.20x12724.3217.731.081.05
1986651322.01P2.16P12254.14P17.87P1.04P1.02P
1987698223.33P2.29P12054.03P19.30P1.11P1.09P
1988676722.41P2.22P12584.17P18.24P1.09P1.07P
1989696722.89P2.29P13514.44P18.45P1.11P1.08P
1990694722.62P2.2813954.54P18.08P1.12P1.09

Life expectancy. In 1985-87, the average life expectancy of Maori males was 67.4 years, compared with 72.3 years for Maori females, while for non-Maori, life expectancies were 71.4 years for males and 77.4 years for females. Therefore, Maori females were expected to outlive Maori males by nearly five years, and non-Maori females were expected to outlive non-Maori males by six years. Over the past 35 years, the difference in life expectancies for Maori and non-Maori has been converging, due to significant gains made by the Maori population, as shown in Table 5.34. In spite of these gains, however, the life expectancy for Maori males is still four years lower and that for Maori females is about five years lower than for non-Maori males and females respectively.

Table 5.34. 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
1980-8265.169.570.876.9
1985-8767.472.371.477.4

1991 marked the 25th anniversary of the coronation of Te Arikinui Dame Te Atairangikaahu as the Maori Queen and leader of the Kingitanga movement. She is the first woman to head the movement. Te Atairangikaahu belongs to the Waikato confederation of tribes and is a direct descendant of the famous Waikato leader Te Puea Herangi.

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 2.1, 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 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 sixteen 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.

In 1990-91 several major claims were considered by the tribunal including issues arising from the allocation of radio broadcast frequencies and the Ngai Tahu and Ngai Rangiteao land claims.

There are a number of reports on claims expected by June of 1992. Some of the areas under examination are the Wellington Tenths; Ngai Tahu Fisheries, Ngai Tahu Undergrowth (i.e. smaller) claims; Muriwhenua land (Northland); Waikareao Estuary (Tauranga); Te Roroa (Dargaville area); and Poukani (Central North Island).

Restructuring of Maori affairs administration

On 21 April 1988 the Minister of Maori Affairs released a discussion paper He Tirohanga Rangapü (Partnership Perspectives). That paper proposed a number of changes to improve the services that Maori people receive from government agencies. After wide consultation in May and June 1988 and further submissions, a policy statement Te Urupare Rangapü (Partnership Response) was published in November 1988.

The policy statement proposed a number of measures, among which was the establishment of a Ministry of Maori Affairs to provide a Maori perspective in policy making.

The Ministry of Maori Affairs (Manatu Maori) commenced operation on 1 July 1989. The Department of Maori Affairs ceased operation on 30 September 1989 and was replaced by the Iwi Transition Agency (Te Tira Ahu Iwi) on 1 October 1989.

A Ministerial Planning Group was appointed on 7 January 1991, to develop recommendations on Government policy for Maori Affairs by the Minister of Maori Affairs. The report of the Ministerial Planning Group was entitled Ka Awatea (It is day) and was released on 5 March 1991. The report analyses the position of Maori in society and recommended fundamental institutional, policy and operational changes and was approved by Cabinet on 13 May 1991.

The Ministry of Maori Affairs and the Iwi Transition Agency ceased operation on 31 December 1991. They were replaced by the new agency, the Ministry of Maori Development (Te Puna Kokiri). The establishment unit for the new ministry commenced operation on 1 July 1991 with the Ministry of Maori Development fully operational on 1 January 1992.

The responsibilities of the ministry as stated in the Ministry of Maori Development Act 1991, include:

  • Promoting increases in the levels of achievement attained by Maori with respect to education; training and employment; health; and economic resource development.

  • Monitoring, and liaising with, each department and agency that provides or has a responsibility to provide services to or for Maori for the purpose of ensuring the adequacy of those services.

The areas of activity (or outputs) of the Ministry of Maori Development are:

  • — Maori education;

  • — Maori health;

  • — Maori assets management;

  • — Maori labour resources;

  • — the relationship between Maori and the Crown;

  • — Maori potential;

  • — local facilitation;

  • — administration of residual services (Iwi Transition Agency/Ministry of Maori Affairs);

  • — administration of receipts and payments on behalf of the Crown;

  • — ministerial servicing; and

  • — services to the Maori Trustee.

Maori tribal developments

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.

Statutory Maori organisations working alongside and partially resourced by the Ministry of Maori Development 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.

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 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 Ministry of Maori Development 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. Emphasis in 1990-91 has been on immunisation promotion, extension of the healthy lifestyle programme, a new mental health initiative, positive parenting, projects for the elderly, and the Maori Womens' Development fund.

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.

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 Development, 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 nö Aotearoa te reo Mäori, ä, he ähua 50,000 ngä tängata ko te reo Mäori tö rätou ake reo. Ko te reo Mäori o Aotearoa tëtahi o ngä reo o Te Moana-nui-a-Kiwa, ä, he reo e whanaunga ana ki ngä reo o Rarotonga, o Tahiti me Hawai'i.

Nä te kaha o te reo Päkehä i ruarua haere ai te hunga körero Mäori mai i te tīmatanga o tënei rautau; otirä, mai i te tīmatanga o tënei ngahurutanga, kua oho ake te aroha o te iwi Mäori ki töna reo. Tokohia kë nei ngä tamariki kei ngä Köhanga Reo, kei ngä Kura Kaupapa Mäori ränei e whakaakona ki te reo Mäori. He maha ngä reo irirangi Mäori kua whakaütia, ä, e whiriwhirihia ana inäianei ko te whakapähotanga Mäori.

Ko te ture i kīia ai ko te reo Mäori he reo mana nö Aotearoa, i whakatüria ai hoki Te Taura Whiri I Te Reo Mäori i te tau 1987, i whakatakotoria hei urupare ki te pürongo e tata tonu ana te puta i Te Röpü Whakamana I Te Tiriti O Waitangi—e pä ana taua pürongo ki te reo Mäori me töna türanga i ngä whare whakawä, i ngä kura, i ngä mahi päho me ngä tari käwanatanga.

Ahakoa käore i rite i Te Ture Reo Mäori 1987 te katoa o ngä whakahau a Te Röpü Whakamana I Te Tiriti O Waitangi, i kīia te reo Mäori he reo mana, ä, ka ähei hold te tangata ki te körero Mäori i ngä whare whakawä o te motu.

Ko ngä uaratanga o Te Taura Whiri i te Reo Mäori he whakatairanga, he whakaü i te reo Mäori hei reo e körerotia whänuitia ana, kia ora tonu ai, ä, he whakaörite i te reo Mäori me te reo Päkehä ki tä te ture titiro. Hei hanga i tëtahi Aotearoa e ähei ana ngä tängata katoa ki te körero i tö rätou ake reo, ahakoa ko te reo Mäori, ko te reo Päkehä ränei, e aro nui atu ana Te Taura Whiri I Te Reo Mäori ki ngä röpü e toru e whai ake nei: ki te iwi Mäori, ki te hunga o ngä tari käwanatanga me te iwi whänui.

Kei te iwi Mäori tonu te uara whakaora ake i töna reo, inä hoki kei reira te tino mätauranga ki te reo. Ko te hunga matatau ki te reo e whakahauria ana e Te Taura Whiri I Te Reo Mäori kia tukua iho e rätou tënei taonga ki te mätätahi e tupu haere nei, ki te mätäpuputu hoki käore i te möhio ki te reo o öna mätua tīpuna. I tua atu i te wero atu ki te iwi Mäori kia matapakitia, kia whakatutukia he kaupapa mö te reo, ko tëtahi o ngä mahi a Te Taura Whiri I Te Reo Mäori he tito, he kohi kupu hou mai hei whakamahi mä te hunga körero Mäori (hei tauira, ‘waea whakaahua’ facsimile device, fax).

E akiakitia ana ngä tari käwanatanga kia aro mai ki ngä awhero o te iwi Mäori e pä ana ki te reo. Ko tëtahi atu o ngä mahi a Te Taura Whiri I Te Reo Mäori he äwhina i aua tari ki te whakarite ratonga reo Mäori. Kei te nui ngä pänui türanga watea kua puta kë i ngä nüpepa o te motu, i ëtahi atu wähi hoki, ki ngä reo e rua, ä, kei te nui ngä pukapuka körero whänui kua tängia këtia ki te reo Päkehä me te reo Mäori, ä, i ëtahi wä hoki, ki ngä reo o Te Moana-nui-a-Kiwa.

E whakaohongia ana te iwi whänui ki ngä wawata o te iwi Mäori e pä ana ki te reo, tae atu hoki ki ngä kura kaupapa Mäori me te päho reo Mäori. Ahakoa ka riro mä te iwi Mäori anö ënei kaupapa e whakahaere, e tika ana kia tautokona e te iwi whänui kia pümau ai te mana o te reo mö ake 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 Kohanga Reo (Maori-language preschool movement) and, more recently, the Kura Kaupapa Maori (Maori-language immersion primary schools). Many Maori radio stations have now been established and there are moves at present to establish Maori television.

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 Mäori (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 mission of the Maori Language Commission is to contribute to the growth and maintenance of the Maori language as a living, widely used means of communication with a legal status equal to that of English. 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 Mäori 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 Mäori 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 Taura Whiri i te Reo Mäori 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.

5.5 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 21441 (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 5.35. PACIFIC ISLAND POLYNESIAN POPULATION BY AGE GROUP*

Age group (years)1981 census†1986 census†Intercensal 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.

 0-41068614.11111811.44.0
 5–9993013.11118411.512.6
10-14865811.41059010.922.3
15-1744375.861656.338.9
18-1928443.740774.243.4
20-2472999.6999610.337.0
25-29823510.8999210.118.9
30-3472639.692529.527.4
35-3950166.676837.953.2
40-4439755.252625.432.4
45-4925773.441224.260.0
50-5418542.427542.848.5
55-5912091.621062.274.2
60-648521.114161.566.2
65-695490.78790.960.1
70-743150.45070.561.0
75-791560.22670.371.2
80 and over930.12040.2119.4
                    Total75966100.097407100.028.2

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 5.36. 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 21441 during the intercensal period.

Mother and daughter perform Niuean dance, Mangere.

Table 5.36. PACIFIC ISLAND POLYNESIAN POPULATION BY LOCAL GOVERNMENT REGION*

Local government region1981 census1986 censusIntersensal 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
     Auckland5061366.66643268.231.2
     Thames Valley810.11020.125.9
     Bay of Plenty1231.312541.322.6
     Waikato29013.833783.516.4
     Tongariro2910.43360.315.5
     East Cape1620.21950.220.4
     Hawkes Bay12091.614971.523.8
     Taranaki1680.21890.212.5
     Wanganui3150.43960.425.7
     Manawatu5250.77620.845.1
     Horowhenua1800.23330.385.0
     Wellington1369218.01632616.819.2
     Wairarapa2340.32550.39.0
                    Total, North Island7170394.49186694.328.1
South Island—
     Nelson Bays1020.11380.135.3
     Marlborough570.142−26.3
     West Coast36398.3
     Canterbury21932.930273.138.0
     Aorangi990.1960.1−3.0
     Clutha-Central Otago570.1930.163.2
     Coastal-North Otago8821.211281.227.9
     Southland8161.19421.015.4
                    Total, South Island42425.655055.729.8
Extra-county islands and shipping†15-36-140.0
                    Total, New Zealand75966100.097407100.028.2

Ministry of Pacific Island Affairs

The Ministry of Pacific Island Affairs 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.

Ministry of Pacific Island Affairs. 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 ministry 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.

The ministry 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 14-member council is made up of two representatives of each of the six main Pacific Island Polynesian communities—Tonga, Fiji, Cook Islands, Niue, Tokelau, Samoa and one each from the Solomon and Tuvalau groups 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.

A separate autonomous Ministry of State was established for the Pacific Island Affairs portfolio in July 1990.

Pacific Island Employment Development Trust. In 1985 the Government set up the Pacific Island Employment Development Trust as a way of developing a strong economic base for the Pacific Island communities in New Zealand. In 1986 a Board of Trustees was appointed to administer the scheme; seven appointments were made. The aim is to promote viable unsubsidised employment opportunities among Pacific Island communities in this country.

Contributors

  • 5.1 Department of Statistics;

  • 5.2 Department of Statistics; Marriage Guidance New Zealand; Department of Justice.

  • 5.3 Human Rights Commission; Office of the Race Relations Conciliator; Ministry of Women's Affairs; Department of Statistics; Department of Internal Affairs; Department of Labour.

  • 5.4 Department of Statistics; Ministry of Maori Affairs; Iwi Transition Agency; Maori Language Commission.

  • 5.5 Department of Statistics; Ministry of Pacific Island 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).

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

Report of the Department of Labour (Parl. paper G.1).

Report of the Human Rights Commission and the Race Relations Conciliator (Parl. paper E.6).

Maori population

Demographic Trends. Department of Statistics (annual).

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 6. Social welfare

Lower Hutt foodbank workers pack food parcels.

In recent years, government support for programmes run by voluntary welfare organisations has substantially increased and the community has become more involved in providing social welfare. Government has promoted a mixed economy of social service providers. The Department of Social Welfare now delegates more of its responsibilities to the local, district and regional levels. Issues of access to and the cultural appropriateness of services have also led to a wider range of providers.

Department of Social Welfare

The Department of Social Welfare exists to:

  • Meet the needs of the people of New Zealand for income support and security;

  • Care for, protect and control children and young people when necessary and give support to their families;

  • Allocate resources to community groups for approved programmes and services; and

  • Provide advice to the Government on the development and impact of social policy.

Table 6.1. SOCIAL WELFARE EXPENDITURE

ProgrammeYear ended 31 March
1987198819891990

* Guaranteed Retirement Income from 1 April 1990.

Source: Department of Social Welfare.

 $(m)
Administration170.8264.6311.7409.7
Benefits2,092.02,618.23,265.93,954.6
Social work services169.0206.9233.8257.8
War pensions92.3114.5108.7107.7
National superannuation*3,650.13,986.64,314.34,779.1
                Total gross expenditure6,174.27,190.88,234.49,509.9
Receipts53.648.457.1149.0
                Total net expenditure6,120.67,142.48,177.39,360.9

6.1 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 with cash benefits paid as of right to those who meet income, residence and other eligibility criteria for each category; and other assistance 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 6.2 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 6.2. CASH BENEFITS: WEEKLY RATES*

BenefitWeekly rate from April 1991

* 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 with some beneficiaries subject to ‘stand down’ periods. These benefits are adjusted annually in line with movement in the Consumer 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 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 16 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 30 June 1991 was 30,746.

Sickness benefit. A sickness benefit is payable to persons over the age of 16 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 30 June 1991 was 20,147.

Widows benefit. This benefit is payable to a woman whose husband (including de facto) has died. The number of widows benefits in force at 30 June 1991 was 10,989.

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 30 June 1991 was 97,000.

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. There were 153,259 unemployment benefits being paid at 30 June 1991.

Training benefit. The training benefit 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 three miners benefits being paid at 30 June 1991.

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. From 1 April 1991 the family benefit, which paid $6, was stopped. Family support, however, was increased by $6 per child. Family support is targeted to those most in need, unlike the family benefit which was universal.

Family support. The maximum amount payable is $42 a week for the first child and $22 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.

Community Services Card. As at 1 February 1992, with the introduction of user part charges for health services, low income earners can present a Community Services Card and obtain subsidies for certain health services. The card will become available to superannuitants from September 1992.

Guaranteed Retirement Income

The current GRI scheme provides $172 a week for a single person and $288 a week for a married couple, these levels have been frozen until 1 April 1993 when increases will be tied to the Consumer Price Index.

A surcharge tax is imposed on all income earned over a certain level, $80 a week for a single person, and $120 for a married couple, at 25 cents in the dollar net. This gives an effective marginal tax rate of 53 percent for the majority and 58 percent to some.

The qualifying age is to be gradually raised from 60 to 65 starting 1 April 1992.

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 6.3. CASH BENEFITS IN FORCE

Type of benefitAt 31 MarchAt 30 June
19871988198919901991

* 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.

National superannuation*473,401479,985485,962495,500506,047
Widows13,01912,86213,02612,67610,989
Domestic purposes69,14674,86285,61594,82397,000
Orphans†4961,5372,9935,2392,931
Family450,072436,066437,287446,373-
Family Care115,971----
Invalids23,08724,37926,26027,82430,746
Miners109763
Unemployment63,92286,782123,565139,625153,259
Sickness11,11613,13216,02119,51120,147
Training---9,4537,483
                    Total1,220,2401,129,6141,190,7361,251,030828,605

Table 6.4. PAYMENTS UNDER THE SOCIAL SECURITY ACT 1964*

Item1986-871987-881988-891989-901990-91

* Excludes payments for health benefits.

† These figures were obtained by multiplying by 52 the amount paid in the week to 31 March for 1986-1989, or 30 June 1989-1991.

Source: Department of Social Welfare.

Cash benefits—
      National superannuation3,650,1653,986,5444,314,2594,774,6765,172,602
      Widows94,732104,170106,062114,888105,978
      Domestic purposes709,568808,787962,8711,136,7181,205,187
      Orphans1,7006,17414,07424,74220,637
      Family273,248290,556258,445284,444222,690
      Family Care68,969----
      Invalids159,823196,051226,304260,751288,969
      Miners7469726839
      Unemployment459,685672,694987,2751,235,0561,399,788
      Sickness124,292159,850192,745229,568248,647
      Training---56,46081,692
      Payment after death4,9885,0445,2555,5745,453
Advances for repairs to homes1,6011,8092,3613,0642,630
Disability allowance†22,75130,39143,89352,52766,538
Handicapped child's allowance7,8199,3159,12711,26712,687
Accommodation benefit†100,79896,618100,800120,566150,725
Special benefit†6,40312,69429,19049,42644,475
Telephone concession6,2537,2055,393--
                    Total cash benefits5,692,8696,387,9717,258,1268,359,7959,028,737

Community Services Card issued by Department of Social Welfare.

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 are $41 per week for a single person, and $68 per week for a married couple or sole parent. 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 $37.50 a week and is payable to people with special costs arising from disability.

Handicapped child allowance. A non-taxable allowance of $28 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.

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. Certain benefits may be paid for a period of four weeks following the death of beneficiaries.

Funeral Grants. A Funeral Grant up to a maximum of $1,000 may be paid towards reasonable funeral expenses. The grant is subject to an income and assets test which includes the assets of the deceased's estate and those of a surviving spouse or parents where the deceased is a child.

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 21,070 in June 1991. The amount due for enforceable orders and agreements during the year ended 30 June 1991 was $19.5 million and receipts for the year totalled $8.1 million, a collection rate of 41.5 percent.

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 amount due during the year ended 30 June 1991 was $157 million and receipts for the year totalled $71 million a collection rate of 45 percent.

The pattern of reimbursement for the cost of domestic purposes benefits through maintenance orders and liable parent contributions is set out in Table 6.5.

Table 6.5. REIMBURSEMENT FOR DOMESTIC PURPOSES BENEFIT

Year ended 31 MarchDPB expenditureMaintenance and liable parent receiptsRate of recoveryNet expenditure
Source: Department of Social Welfare.
 $(million)$(million)percent$(million)
1987709.637.35.3672.3
1988808.841.95.2766.9
1989962.949.75.2913.2
19901,136.755.54.91,081.2
19911,207.979.26.61,128.7

Wellington pre-schoolers.

War pensions and rehabilitation

The war pensions programme provides pension and concession 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. A War Pensions Advisory Board advises the minister on war pensions policy and related matters while local war pensions claims panels 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.

Since nearly 90 percent of war disablement and dependants' pensions are paid in respect of service in either World War I or World War II, war pensions are increasingly related to the elderly section of the population.

Table 6.6. WAR PENSIONS AT 30 JUNE 1991

Type of pensionNumber in forceAnnual value†

* Disablement and Dependants Pensions for Police are recorded under police pensions.

† The annual values have been calculated from the amount being paid in the week ended 30 June, multiplied by 52. Benefit numbers are relatively constant throughout the year.

‡ From 1 April 1990 Veterans Pension replaces Economic Pension, War Service Pension, and War Veteran's Allowance.

$(000)
War disablement*21,35252,327
Dependants of disabled*214
Widows416920,541
Other dependants of deceased12
Veterans‡3,13029,000
Police36102
                    Total28,701101,984

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. Revision of the reciprocal agreement with Australia has seen the New Zealand Government move 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 30 June 1990 comprised 885 national superannuation payments, 13 widows benefits, and 61 invalids benefits, making a total of 959, compared with 710 in 1989.

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.

Reciprocal benefits in force for United Kingdom citizens in New Zealand at 30 June 1990 were 10,357 national superannuation payments, 18 widows benefits, and 86 invalids benefits, making a total of 10,462, compared with 10 939 in 1989.

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.

6.2 Social services

The Department of Social Welfare directly provides a range of services to children, young people and families. It also provides financial and other support to non-government organisations and groups providing social services in the community.

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 in need of care or protection, or where children or young people have committed offences. The department also provides residential care and custody services. The department's branches have teams of social workers and other staff who provide a social work service. In 1991 the department employed 1033 social work staff.

Some of the wide range of social services available are outlined below.

Services for the elderly and disabled

In addition to administering income support provisions described in section 6.1 (Guaranteed Retirement Income, invalids 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 aged 10 to 65 who have serious physical disabilities can be provided with an attendant, to assist with personal care for limited hours a week, to enable them to remain in their own homes.

Home help. A home help scheme provides assistance to people who are unable to meet the cost of necessary help in the home.

Support for Residential Services for People with Intellectual or Psychiatric Disabilities. The support subsidy provides financial assistance for people with an intellectual disability to purchase staff support in residential services. Under the Health/Welfare Interface arrangements funding is available through benefit related payments to assist people with psychiatric disabilities to meet the cost of residential accommodation and care.

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.

Workbridge. This organisation, funded by the Department of Social Welfare, is responsible for assessment, work experience and work placement.

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, 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.

Victoria Home residents, Dunedin.

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

Avarua 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 fond. 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.

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.

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.

Union-organised food parcels for laid-off South Auckland workers.

Care and protection services

The department carries out investigations of allegations of child abuse and neglect, makes assessments and plans, and assists in the provision of services to enable plans to be carried out. The department also manages many of the processes by which decisions are made, notably family group conferences, and provides reports to the Family Court on care and protection matters which are taken to court. Departmental social workers have the power to take emergency action to protect children and young people from abuse and neglect.

The department also provides care services for children and young people in circumstances where appropriate care is not available within extended families. Care is provided through foster homes, family homes owned by the department, and occasionally, departmental residences. The number of children and young people in care has fallen since 1988, with the number in care in residential and institutional settings having fallen even more steeply.

The provisions of the Children, Young Persons, and their Families Act 1989 have resulted 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 resolves 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.

Under the Children, Young Persons, and their Families Act 1989, children and young persons can be placed in the care, custody of guardianship of the Director-General of Social Welfare by way of a greater range of agreements and Court orders than under the former 1974 Children and Young Persons Act. Due to delays in introducing a new computer-based information system for collecting information relating to the Children, Young Persons, and their Families Act 1989, recent data will not become available until mid-1992.

It is estimated there were some 2200 children and young persons in the care, custody or guardianship of the Director-General of Social Welfare as at 31 December 1990.

Table 6.7. CHILDREN AND YOUNG PERSONS UNDER THE CONTROL OF THE DEPARTMENT OF SOCIAL WELFARE

 19881989
NumberPercentageNumberPercentage
Source: Department of Social Welfare.
Reasons for being placed in care
     Children placed under guardianship of the Director-General by court order329964.5231970.6
     Children under control by virtue of an agreement with parents73814.441212.5
     Children on court remand, postponements, warrants, etc.107821.155616.9
                    Total5115100.03287100.0
Placement of children
     In foster homes248548.6180354.9
     Placed with parents for trial period72914.240112.2
     Living with and supported by relatives1012.0521.6
     In employment (excluding those with relatives, etc.)3496.81474.5
     In residential colleges2003.91775.4
     Receiving tertiary education130.330.0
     In Social Welfare short-stay homes2144.2732.2
     In Social Welfare family homes65612.845213.8
     In private institutions1512.9762.3
     In Department of Education special schools130.3220.7
     In hospitals140.360.2
     In psychiatric hospitals and psychopaedic hospitals170.3100.3
     On probation40.130.0
     In Social Welfare national institutions1392.7481.5
     In youth prison or corrective training centre100.220.0
     In police custody10.0-0.0
     Absent without leave190.4120.4
                    Total5115100.03287100.0

Youth justice services

Under the 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.

Barnardos New Zealand children celebrate 125th anniversary of the organisation, Christchurch.

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.

Since the Act came into force the numbers of arrests and the number of matters dealt with in Court have fallen by over two-thirds.

The department operates three residences which provide custodial services to young people on remand, or given a custodial sentence. The residences are at Weymouth (Auckland) Epuni (Lower Hutt) and Kingslea (Christchurch).

The following tables provide information about court proceedings in the Children and Young Persons Court to 31 October 1989. From 1 November 1989 the statistics relate to court proceedings in the Youth Court under the Children, Young Persons, and their Families Act 1989.

Table 6.8. CHILDREN AND YOUNG PERSONS COURT OFFENCE CASES

Type of offence198819891990
Total charges
Assaults870854364
Sexual offences7611847
Other offences against the person475494339
Burglary438141941908
Theft458940001096
Fraud and forgery841900339
Vehicle interference/conversion315028831313
Other property offences1262930362
Drug offences728611140
Drink/drive offences460415284
Offences against good order14231084345
Other offences26822206841
                    Total20937186897378
Distinct cases
Assaults713636260
Sexual offences556637
Other offences against the person345345236
Burglary20892012694
Theft23922042353
Fraud and forgery16813127
Vehicle interference/conversion12741116275
Other property offences52840191
Drug offences47236747
Drink/drive offences392337226
Offences against good order791555108
Other offences1122848233
                    Total1034188562587

JUVENILE OFFENDING
Charge rate per 1000 children aged 10-16 years

Table 6.9. CHILDREN AND YOUNG PERSONS COURT APPEARANCES FOR OFFENDING: DECISIONS MADE

DecisionTotal chargesDistinct cases
198819891990198819891990
* Includes imprisonment and corrective training.
Dismissed, withdrawn, etc.224227372166128215721030
Discharged, S35 C&YP Act602669693455414348
Admonished and/or discharged4244362592622061844404
Custodial detention*11361047785262259112
Periodic detention1157117816745441052
Community Service851852142628
Adult supervision112489415138333132
Community Care23225976576114
Ordered to come up for sentence199017625021176948156
Fined24931585801956120164
Order Made6-31-1
Committed to Care of Department of Social Welfare43221617110564
Placed under supervision of Social Worker52124541180819671701377
                    Total cases, offending209551869873951035188592602
Males17578156236500852773582224
Females3377307589518241501378

Other services

Social workers from this department carry out a range of other services notably adoption related work, reports to Family Court on custody and access matters, and general information and referral services. Of these personal services, adoption is the most significant.

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 the adopted 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 10 years and are renewable.

Community services

The department administers a range of funding programmes giving financial support to social service providers. Amongst the programmes are:

Funding for personal social services to children, young people and families, in the form of a Children, Young Persons and their Families Grant Programme.

Funding for services to victims of family violence with: Women's Refuge Funding Programme; Sexual Abuse/Rape Crisis Programme; Men's Violence Rehabilitation Programme; and Family Violence Prevention Project.

Information technology developments

The department has developed two computer systems to enhance its delivery of benefits and to meet its obligations under the Children, Young Persons and their Families Act 1989 and the Public Finance Act 1989.

SWIFTT Computing System. Social Welfare Information For Tomorrow Today (SWIFTT) is an ‘online’ real time updating system, which provides the base for the department's technological expansion into the 1990s. The most current benefit information available for each client, along with a history of their benefit entitlement is recorded.

National implementation of SWIFTT for all major benefit types (excluding GRI/National Superannuation), occurred in November 1991. Improvements to client service, the environment for staff and management information are among SWIFTT's objectives. SWIFTT is also designed to improve cost effectiveness in the department and to respond quickly to new legislative and policy requirements.

CYPFis Computing System. The Children, Young Persons and their Families information system (CYPFis) is a nationwide computer-based information system. It has been developed to enable the department to best meet its statutory responsibilities under section 7 (‘Duties of the Director-General’), of the Children, Young Persons and their Families Information Act, and the Public Finance Act.

Contributors

  • 6.1 Department of Social Welfare; Department of Statistics.

  • 6.2 Department of Social Welfare; Department of Statistics.

Further information

Justice Statistics. Department of Statistics (annual).

Report of the Department of Social Welfare (Parl, paper E. 12).

Chapter 7. Health and safety

Hi-tech open heart surgery, Green Lane Hospital, Auckland.

7.1 Organisation of health services

The New Zealand health system is made up of public, private and voluntary sectors which interact to provide and fund health care.

The Department of Health's budget is the source of funding for 14 area health boards, which are contracted to the Minister of Health to provide a full range of hospital, community and preventive services. In addition to providing treatment, they are responsible for health protection, health promotion and health education. They are required to assess health needs in their areas, and plan how best to meet them.

Boards formerly had a mix of appointed and elected members. Their role is now undertaken by commissioners appointed by the Government to manage boards' transition to Regional Health Authorities as part of on-going reforms in the health sector.

Health care provided by general practitioners is also partially funded from the public purse, as are referrals to specialists and laboratory diagnostic services. Dental care is provided free to dependent children under 18 years of age. Eighty percent of the cost of pharmaceuticals is met through public funding. A number of private hospital services are subsidised, and a range of private and voluntary organisations receive funding for services they are contracted to provide.

Accident compensation levies cover 4.2 percent of health care costs for services provided in the public and private sectors.

The private sector provides a wide range of health care options. Forty-five percent of the population has private health insurance, meeting 3.5 percent of the total cost of health care.

An active voluntary sector incorporates a wide range of organisations which provide care, support, health education and research. Health care is also provided informally by families and relatives, and this is recognised through the growing provision of home support services in the public and voluntary sectors.

Current restructuring

The 1980s saw a series of reports which brought the performance of the public health sector under increasing public scrutiny. Dissatisfaction has focused on management structures, accountability mechanisms, and the failure to co-ordinate the use of resources to meet the changing needs and priorities of the community. Changes to health administration followed the creation of area health boards through the Area Health Boards Act in 1983; and a system of contracts for health service provision was developed. A new round of changes is now under way.

These changes will take place over three years. In February 1992, new user charges for hospital services were introduced, and the subsidy levels for pharmaceuticals, laboratory services and general practitioner consultations were adjusted, depending on which of three income groups a patient or family is in. Lower income groups and the chronically ill now receive higher levels of government assistance. This regime has been established on an interim basis. Longer term options for patient charges targeted according to income are being considered by the Government.

At the same time, major restructuring of the system for funding and providing health care is under way. The goals of the new structure are to:

  • Improve access for all New Zealanders to a health care system that is effective, fair and affordable.

  • Encourage efficiency, flexibility and innovation in the delivery of health care to the community.

  • Reduce waiting times for hospital operations.

  • Widen the choice of hospitals and health care services for consumers.

  • Enhance the working environment for health care professionals.

  • Recognise the importance of the public health effort in preventing illness and injury and in promoting health.

  • Increase the sensitivity of the health care system to the changing needs of people in our society.

The 14 area health boards are to give way to four regional health authorities. The regional health authorities will contract with organisations such as hospitals, and individuals such as doctors, to purchase health care for all those who need it. They will seek the best possible standard of health care, at the best possible price, and will have the option of purchasing health services from the public, private and voluntary sectors. The new system will, for the first time, integrate the management of hospital funding with the management of public funding for all other types of health services. This will give incentives for effective use of resources, and require further development of health care information systems.

Administration of health services

Department of Health. The department is the principal advisor to the Minister of Health on health issues. It administers relevant legislation, funds programmes and ensures the provision of essential services. The department also promotes health, and encourages co-operation between those involved in funding and providing health services. It collects and disseminates information, monitors and reviews health programmes and is responsible for ensuring that its work is underpinned by a focus on the Government's desired health outcomes.

The role of the Department of Health will change significantly as a result of the health reforms now under way. It will, however, remain a key advisor to government on health policy, and will have a vital role in monitoring the overall efficiency and effectiveness of the health system. In addition, it will ensure that the current health system continues to function while the reforms are being implemented.

The present functions of the Department of Health are described in more detail in the following sections. In addition to its input into health policy, and its management of the Minister's contractual relationship with area health boards and other health service providers, the department plays an advisory and monitoring role in the public health responsibilities of local bodies and voluntary agencies. This is described in section 7.3, Public health.

Area health boards. The current health system based on area health boards is now a transitional system as the health sector starts to implement the new health reforms. At present, general health policy is directed by the Department of Health, with area health boards managing the provision of health services at the community level.

The 14 area health boards are continuing, in the 1991-92 financial year, to 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 will continue in this financial year to provide a fund health care services within their region, and also have day-to-day responsibility for implementing health policy.

Area health board members have been replaced by appointed commissioners. Commissioners are responsible for ensuring a high quality service is maintained in the areas for which they are responsible during the transition period until new health structures are in place.

A National Interim Provider Board and a Policy, Regulation and Implementation Directorate have also been established. One of the functions of the National Interim Provider Board is to separate the current service provider, purchaser and other roles of the existing area health boards, and to establish their health service provider functions as either Crown Health Enterprises or as community trusts. The Policy, Regulation and Implementation Directorate is responsible for further policy development, and for the design and drafting of legislation and regulations to give effect to the announced reforms.

Health expenditure

General taxation funds an estimated 77 percent of the total costs of health care. This funding is primarily disbursed through the Department of Health, which distributes funds to area health boards, and a wide range of health professionals and organisations providing services to the public. It also includes funding for health-related expenditure through other government departments, such as Social Welfare, Defence and Police. Accident compensation levies cover 4.2 percent of health care costs.

Over recent years governments have introduced a number of measures to curb health spending, while maintaining services. Area health board funding, which makes up nearly 70 percent of the Department of Health's budget allocation, has come in for particular attention.

A population-based method is used to determine funding for boards. It takes into account the age and gender of the population in each region, by adjusting for the expected resource use of each age/gender group. (This is derived from national levels.) Special health needs are also considered, through calculations based on socio-economic factors.

In 1991, the Government expanded the ability of boards to charge each other for cross-boundary service provision. Boards will also, from February 1992, receive revenue from inpatient and outpatient user charges.

Demonstration to protest plans to reduce hospital services, Lower Hutt.

Financial restraint is applied to those boards which the funding formula shows to be advantaged. The funds recovered from these boards are available for redistribution to boards shown to be disadvantaged.

Service statements have been developed by the Department of Health, in consultation with health service providers. These are designed to provide guidance to area health boards on the content and structure of services provided by the board. The statements provide a national perspective on the key elements comprising a service, as well as the policy and legislative parameters for each service. Each board will design and provide the services in accordance with its own strategic and financial planning processes. These may reflect their assessment of local needs and resource priorities.

Table 7.1. NET EXPENDITURE OF THE DEPARTMENT OF HEALTH

Item1989-901990-911991-92*

* Vote allocated.

Source: Department of Health.

 $(000)
Hospital and area health boards2,589,7242,725,2922,697,869
Benefits and provider subsidies1,004,6241,115,7751,043,165
Other75,42592,424106,627
                    Total3,669,7733,933,4913,847,661

Table 7.2. STAFF EMPLOYED BY AREA HEALTH BOARDS

Staff category19891990

* Estimated.

Source: Department of Health.

Medical3100*2918.7
Dietitians..150.8
Laboratory technologists (qualified)680*719.1
Laboratory technologists (unqualified)880*748.3
Occupational therapists450*441.4
Occupational therapy assistants200*173.0
Physiotherapists530*520.7
Physiotherapy assistants130*117.2
Radiographers610*565.7
Scientific officers..133.5
Social workers580*621.8
Other professional and technical staff..3400*
Nursing staff (qualified)17779.817448.5
Nursing staff (unqualified)2924.52533.4
Nursing students735.0251.8
Students, (other)..222.0
Clerical5500*4700*
Other..8100*

Table 7.3. GRANTS TO HOSPITAL/AREA HEALTH BOARDS

Grants to hospital boards1987-881988-891989-901990-91
Source: Department of Health.
Grants allocated directly$(000)
Operating grants—
     Salaries and wages1,685,4901,816,1191,827,6171,749,859
     Other463,819458,713447,853580,751
                    Subtotal2,149,3092,274,8322,275,4702,330,610
Supplementary grants
Reserve for salary and wage increases25,1721,211113-
Loans—Repayments and payments into sinking fund44,53065,020105,213242,125
        —Net interest60,13671,32391,29078,129
Service development and special items*19,54436,81739,74881,036
     Equipment for national and regional specialty services6,6485,8956,299-
Geriatric hospital patient assistance57,49969,04189,344107,095
                    Subtotal213,529249,307332,007508,385
                    Total2,362,8382,524,1392,607,4772,838,995

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 enrolled entry to the profession, and others have no formal training requirements.

The Health Workforce Unit of the Department of Health is concerned with the number and kinds of workers required to meet New Zealand's health service requirements; maintaining workforce data profiles for the different groups; workforce planning; dealing with issues such as intakes into basic training education programmes and retention of health professionals.

The role of registration boards/councils is to monitor entry standards for entry to the profession, register and discipline practitioners. There is a separate disciplinary tribunal for dentists.

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 1991 was 10,179, with 7013 holding annual practising certificates. The Medical Council also has disciplinary powers, with a right of appeal to the High Court.

Dentists. The Dental Council is governed by the Dental Act 1988. It examines and approves the qualifications of applicants for registration as dentists, promotes high standards of professional education and conduct among dentists and provides administration services for the Dentists Disciplinary Tribunal. The number of dentists on the register at 31 July 1991 was 1875.

The Dental Act 1988 provides for a disciplinary structure with independent Complaints Assessment Committees and a Dentists Disciplinary Tribunal comprising both lay and dental members.

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 1991, 44,780 nurses held annual practising certificates.

Most nurses are now prepared through three-year polytechnic courses which lead to registration as a comprehensive nurse. Some polytechnics also conduct midwifery courses. Area health board schools offer one-year programmes leading to enrolment. All hospital-based three-year programmes have been phased out.

Post-basic education for nurses ranges from regular in-service and short clinical courses to diploma courses at polytechnics and at Massey University, and degree-level courses at Massey and Victoria Universities.

The Department of Health is responsible for administering the Nurses Act and provides policy analysis and advice to the Minister of Health and other health agencies. The department is currently involved in reviewing the Nurses Act.

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 October 1991 there were 1092 registered psychologists, with 829 holding annual practising certificates. At present a review of the Psychologists Act is under way, which it is hoped will be completed in 1992.

Physiotherapists. The New Zealand Physiotherapy Board is constituted under the Physiotherapy Act 1949. The board examines and registers candidates for physiotherapy practise, regulates the conduct of those registered under the Act and issues ultrasonic therapy licenses.

Since 1991 full time four-year degree courses have been conducted at the Auckland Institute of Technology and the Otago Polytechnic and a conjoint arrangement with the University of Otago. The state examination in physiotherapy is being phased out. From 1992 successful completion of a qualification from one of the approved training schools will be required 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.

Since 1991, the three-year full time training courses have been conducted at the Auckland Institute of Technology and the Otago Polytechnic. Successful completion of a qualification from one of the approved training schools is required for registration. The training school at the Central Institute of Technology, Heretaunga closed at the end of 1991.

As at 30 October 1991 there were 1648 registered occupational therapists, with 911 holding annual practising certificates.

Dietitians. The Dietitians Board is constituted under the Dietitians Act 1950.

The intern training period for a dietitian is 12 months in a training school (located in Auckland, Wellington and Christchurch hospitals). Students are usually already qualified in either ‘home’, ‘consumer’ or ‘applied’ science. As at 6 November 1991 there were 849 registered dietitians. Annual practising certificates were issued to 289 dietitians in the 1990-91 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 March 1991, there were 229 registered optometrists and 67 registered dispensing opticians. There were 16 new optometrist registrations during 1990. Optometrists are trained at the University of Auckland in a four-year full time degree course. Dispensing opticians are trained via a correspondence course with a three-year time period.

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 Central Institute of Technology conducts a three-year full time diploma course. Students who gain this Diploma in Podiatry are eligible for registration.

In 1991 there were 429 registered podiatrists, with 170 practising. Many of those work only part time.

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 282 registered chiropractors at 30 October 1991, 152 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 September 1991 there were 3423 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. All pharmacies must be registered with the society.

Since 1992 all pharmacy education has been 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.

At the time of going to press legislation was before Parliament which may alter the ownership provisions of community pharmacies.

At the end of September 1991 there were 1089 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. In 1991 there were 1974 registered practitioners, with 993 annual licences issued. The training of diagnostic radiographers transferred from a hospital-based programme to a three-year full time polytechnic course in 1992.

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.

Nineteen ninety-one saw major changes to the training and education of medical laboratory technologists. The traditional ‘apprenticeship’ style training system was replaced by courses based in the education sector. The board has approved Auckland Technical Institute's ‘National Diploma in Medical Laboratory Science’ for registration—the first students will complete the course and be eligible for registration at the end of 1992. Otago Polytechnic is offering a ‘Bachelor of Medical Laboratory Science’ for the first time in 1992.

At 23 October 1991 there were 2090 full registrations, with 1005 licensed to practise for the 1991-92 year.

Osteopaths. Constituted by the 1978 New Zealand Register of Osteopaths Incorporated Act, the register is concerned with the regulation and conduct of registered osteopaths. The NZRO is a non-government body providing lists of registered osteopaths to government agencies and the public.

There is no training available for registered osteopaths in New Zealand. Osteopathic education acceptable to the NZRO requires four to six years full time training. As of July 1991 there are 70 members of the NZRO in practice.

7.2 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. From 1 February 1992, medical, pharmaceutical, laboratory and hospital benefits are targeted in three income bands.

Medical benefits

The Department of Health pays a medical benefit to doctors that covers at least part of the cost of their services to Group 1 and 2 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 benefit for Group 1 and 2 children as well as those children who are heavy users of health care is $25 if under the age of 5 years and $20 for children 5 years and over.

Beneficiaries, the elderly and adults in Group 1 receive a $15 benefit while adults in Group 2 receive a $12 benefit. The benefit for adults who are heavy users of health care is $17.

All patients receive a benefit of $22.00 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.

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 for children under 16.

Pharmaceutical benefits

New Zealand residents are entitled, at a small cost to themselves, to medicines, approved appliances and materials which are included in the drug tariff, and prescribed by medical practitioners, midwives or dentists. A charge is made for each prescription item which is included on the drug tariff. This charge is $5 for all people in Group 1, children in Group 2, and both adults and children who are heavy users of health care. Adults in Group 2 pay $7.50 while all people in Group 3 pay up to the maximum amount of $20 per item. Certain medicines are subject to a part charge to the patient. Doctors and chemists have a list of these items.

Families pay for a maximum of 15 pharmaceutical items each year.

Hospital benefits

Treatment in public hospitals is free for all people in Group 1 and those people who are considered to be high users of health care.

People in Group 2 pay $35 per night for a maximum of 10 nights each year per family. Those in Group 3 pay $50 per night for a maximum of 10 nights each year per family. Exemptions are made for some types of treatment. In the case of private hospitals, the rates are $27.75 for geriatric, hospice, and disabled patients. There is provision for free supply of a range of medical aids and appliances. A geriatric hospital special assistance scheme is available 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 where possible. Outpatient services at public hospitals are free for all Group 1 patients as well as those people who are classified as high users of health care.

People in Group 2 face a $6 charge for children under the age of 5 years and $11 for children 5 years and over. Adults in this group pay $19. All people in Group 3 pay $31.

Families pay for a maximum of five outpatient visits each year.

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 midwives, 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.

Home nursing and home help

Home nursing is free when provided by a registered nurse or midwife employed by 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

Routine 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 7.4. EXPENDITURE ON HEALTH BENEFITS

Item1987-881988-891989-901990-91
Source: Department of Health.
 $(000)
Approved institutions3,5384,4824,5924,506
Artificial aids1,0861,2501,5841,772
Pharmaceutical benefits506,640549,382517,247545,331
Primary services133,765154,523235,390292,154
Private hospital services49,64648,59850,54251,890
Provider subsidies3,1083,4263,8623,157
Referral services78,03289,702102,820109,873
Geriatric hospital patient assistance57,49969,04188,587107,092
 833,314920,4041,004,6241,115,775

7.3 Public health

Environmental health

A major function of local government is the promotion and conservation of public health. Each 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, either directly or through area health boards, 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. In some smaller local authorities the necessary inspections are made by area health board officers on behalf of the authority.

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), ‘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 to fines.

To curb drug abuse, the departments of Health, and Customs and Police have maintained the National Drug Intelligence Bureau since 1972.

Food safety and quality

The Food Act 1981 requires food for sale to be safe, and not labelled or advertised in a misleading manner. It 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 and includes stringent measures to control the adulteration of food. Regulations lay down minimum standards for many classes of food, control additives of all kinds and deal with the labelling of food packages. There are also regulations covering 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.

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 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.

Services for older people

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 currently before parliament.

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.

The Government also made $23.7 million available to area health boards in 1990-91 for community-based mental health initiatives.

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 pregnancy and childbirth 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 births take place in hospital but domiciliary midwives and general practitioners may 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 clinics operated by the New Zealand Family Planning Association in various centres throughout the country. The New Zealand Family Planning Association is contracted to the Department of Health to provide a range of services, including clinics and education. These services are aimed at assisting people to make informed and responsible choices about their reproductive and sexual health.

The New Zealand Association of Natural Family Planning is also contracted to the Department of Health. The association provides clinic and education services, covering natural family planning and fertility awareness for those for whom other family planning services are inappropriate or ineffective.

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 provides policy advice to the Minister of Health on current issues concerning women's health. Those issues include breast cancer detection, contraception, pregnancy and childbirth services, and terminations. Two breast screening pilot programmes have been established to assess the effectiveness and acceptability of mammography screening in New Zealand conditions.

The Cervical Screening Programme is being nationally co-ordinated, and implemented by area health boards. The programme includes a cervical cytology register which acts as a recall and back-up system for women. The national programme aims:

  • To reduce by 1995 the death rate from cervical cancer by 20 percent in Maori women, and by 10 percent or more in Pacific Island and pakeha women;

  • By the year 2000 to reduce the incidence of invasive cancer to fewer than 180 cases annually.

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 area health boards.

A comprehensive review of preventive child health care is currently under way, in conjunction with the development of an information base for child surveillance.

Infant mortality has dropped to 8.31 deaths per 1000 live births. This is the lowest New Zealand has ever achieved, and is believed to be due to a dramatic reduction in cot death following the release of the preliminary findings of the New Zealand cot death study.

The Children's Health Camps Board is contracted by the government to provide short-term residential care for children with minor health problems, both physical and behavioural. Referrals to the camps are primarily made by public health nurses. The Ministry 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 7.5. 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
                    Total450.3110.561.649.7

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 7.6. RECOMMENDED IMMUNISATION SCHEDULE

AgeVaccine

* Diphtheria, tetanus, whooping cough.

† Diphtheria, tetanus.

‡ Hepatitis B; immunoglobulin and vaccine are given to children of carrier mothers at birth.

§ Measles, mumps, rubella.

Source: Department of Health.

6 weeksTriple (DPT)* Hepatitis B‡
3 monthsTriple (DPT)* Poliomyelitis Hepatitis B
5 monthsTriple (DPT)* Poliomyelitis
15 monthsMMR§ Hepatitis B
18 monthsDouble (DT)† Poliomyelitis
5 yearsPoliomyelitis
Form 1 girlsRubella
15 yearsTetanus

Measles vaccination, Christchurch.

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.

Health education services of the Department of Health develop health education projects and provide 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 7.1, Organisation of health services), World Health Day, World AIDS Day and World Smokefree Day.

This is done through developing and distributing promotional and educational material and programmes, and through mass media campaigns.

Smoking. The New Zealand Medical Journal in 1988 estimated that over 4000 premature deaths per year were due to the use of tobacco products. The Smoke-free Environments Act 1990 aimed to protect non-smokers from cigarette smoke, reduce the social approval of tobacco use, and found the Health Sponsorship Council, to sponsor health messages and replace tobacco sponsorships. The council sponsored its first team in October 1990. The Act made public transport largely smoke-free and provided for smoke-free sections in restaurants from November 1990, banned new tobacco products and sponsorship advertising in all media from mid-December 1990, required smoking policies in all workplaces and made shopping smoke-free from March 1991. The Act incorporated existing arrangements for strong varied health warnings on tobacco packets, and previous law totally banning sale of tobacco for oral use; and the sale of any tobacco products to those under age 16 years. Existing advertising of tobacco products at retail outlets remains legal till the end of 1994.

Doorstep surveys of 10,000 persons during 1990 showed that 27.5 percent of adults age 15 years and over, 28 percent of men and 27 percent of woman, 32 percent of the 15-24 year age group, and 54 percent of Maori adults smoked cigarettes (including hand-rolled cigarettes). Ex-smokers outnumbered current smokers. From 1989 the tobacco product prices were adjusted upwards for inflation twice yearly.

TOBACCO CONSUMPTION
Annual per capita consumption of tobacco products

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 1991, in 750 ml bottles, was the equivalent of 188 bottles of beer, 29 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 17 percent less than its peak in 1978.

ALCOHOL CONSUMPTION
Average annual consumption of absolute alcohol by population over 15 years

The Alcoholic Liquor Advisory Council (ALAC) continues to fund a multi-disciplinary alcohol research unit in association with the Health Research Council and the University of Auckland School of Medicine, and also supports other independent research projects.

The majority of alcohol dependence cases are dealt with on an outpatient basis. At alcohol and/or drug outpatient treatment agencies, almost 9000 new-to-agency outpatients were treated in 1989 and during this time at least 1850 people received help in dealing with someone else's alcohol and/or drug problem. In 1988, 2254 people were admitted or readmitted for inpatient alcohol treatment.

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 can only 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 2.2 per child in 1990, and 32 percent had no fillings at all in their permanent teeth.

Dental services for teenagers. Children who remain in full time study after age 16 continue to receive dental benefits up to age 18.

Dental research. The dental unit of the Health 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. 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 has decreased.

Health/welfare continuing care services

Responsibility for the funding and co-ordination of continuing care services for older people and people with physical, psychiatric and intellectual disabilities has long been a cause of confusion and concern. Area health boards, the Departments of Health and Social Welfare, and the private and voluntary sectors all have responsibilities in the provision, co-ordination and funding of some aspects of continuing care services. This has resulted in problems of duplication, overlap and role clarity. The area is under review and two principles have been identified to underlie the provision of future continuing care services, namely:

  • All of a client's funding for a particular purpose should be located in one agency;

  • There should be a separation of funders or purchasers of services from providers.

Policy will be finalised in time to begin implementation in July 1992.

Health research and development

New Zealand Communicable Disease Centre. The centre provides epidemiological as well as laboratory services in the field of infectious diseases, plus a surveillance unit. 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 undertakes operational research for the Department of Health. It also undertakes research for the wider health sector. The unit carries out, advises on and supports research designed to inform; and to improve the level of knowledge and understanding about health issues and the social and economic factors influencing health.

Research undertaken by the unit is used:

  • To support policy development;

  • To evaluate area health board, government and community health services and initiatives; and

  • To inform decision-makers of recent trends and issues in health.

The results of work carried out by the unit are published in a variety of forms to suit client needs. Recent publications include: Drink Driving Countermeasures; Exploring Women's Health Status; Readings in AIDS Research; and A Health Profile of New Zealand Adolescents.

Health Research Council. On 1 October 1990 the Health Research Council was established, replacing the Medical Research Council. Currently, health research accounts for an estimated 1 percent of total health expenditure in New Zealand and the Government is the principal funder. Much of this funding is allocated by the Health Research Council, which is required to purchase quality research along a spectrum stretching from basic biomedical research to applied public health research. It is required to pay particular attention to health problems affecting Maori people.

The functions of the Health Research Council are set out in the Health Research Council Act 1990 and include:

  • Advising the Minister of Health on national health research policy;

  • Administering funds granted to the Council for the purpose of implementing national health research policy;

  • Fostering the recruitment, education, training and retention of those engaged in health research in New Zealand;

  • Initiating and supporting health research; and

  • Promoting and disseminating the results of health research in ways that will be most effective in encouraging their contribution to health science, health policy and health care delivery.

The direct funding from the Government in 1991-92 for the council's work is $17.731 million. In determining priorities for health research, the council is required to consult widely, including with other persons who fund or produce research in the public and private sectors.

Health Statistical Services collects, analyses and disseminates national health information. This information is based on statistical collections of mortality, morbidity and hospital patients.

The collections cover the following areas; hospital discharges, mental health, cancer, deaths and patient throughput statistics. This information is analysed and presented in a number of annual and quarterly reports including:

Hospital and Selected Morbidity Data, Mental Health Data, Cancer Data: New Registrations and Deaths, Fetal and Infant Deaths.

Health Statistical Services also produces special reports on a variety of health issues. These publications provide a detailed analysis and interpretation of data relating to a wide range of topical health issues. Recent reports include Hauora: Maori Standards of Health, Child Health Profile and Contemporary Health Issues.

Information is stored on an extensive database and a customised data extraction service is available to clients. Advisory and consultancy services are also provided on a cost-recovery basis.

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, hospital case summaries, Ministry of Transport and Water Safety reports.

Medical practitioners certified 81 percent of deaths registered in 1988, and 19 percent were certified by coroners. Of the deaths certified by doctors, 7 percent were subject to autopsy, compared with 99 percent of deaths certified by coroners. Overall, 24 percent of all deaths had autopsies performed.

New Zealand adopted the ninth revision of the International Classification of Diseases in 1979 and the ninth revision clinical modification in 1988. As a result, care must be taken when comparing figures since 1988 with those for previous years.

Table 7.8. MAJOR CAUSES OF DEATH*

Cause of deathNumber of deathsRate per million of mean population
198619871988198619871988

* Further details of causes of death are available from the Health Statistical Service.

Source: Health Statistical Services.

Malignant neoplasm622164106481189819371949
Diabetes mellitus409373397125113119
Chronic rheumatic heart disease127129155393947
Hypertensive disease254283259778678
Ischaemic heart disease745576147252227423012181
Other forms of heart disease106410651097325321330
Cerebrovascular disease285527512693871831810
Disease of arteries, arterioles, and capillaries633615642193186193
Pneumonia120312961362367392410
Bronchitis, emphysema, and asthma637602611194181184
Other diseases of respiratory system10019841163304297350
Peptic ulcer210200223646067
Cirrhosis of liver113119113343634
Nephritis, nephrotic syndrome and nephrosis236226208726863
Congenital anomalies234219268716681
Birth injury, difficult labour, other anoxic and hypoxic conditions, and other causes of perinatal mortality160140160494248
All other diseases220123692404692716722
Motor vehicle accidents782835743239252223
All other accidents681622596208188179
Suicide and self-inflicted injury414463484126140146
All other external causes16211576493529
                    Total, all causes of death270522743027407825282908241

Ischaemic heart disease, malignant neoplasms (cancer), and cerebrovascular disease were again the leading causes of death in 1988 (the latest year for which data is available) and collectively accounted for approximately 60 percent of all deaths: ischaemic heart disease accounted for 26 percent of deaths, malignant neoplasms for 24 percent, and cerebrovascular disease for approximately 10 percent.

Further statistics on causes of death can be found in section 7.5, Accidents. For general health statistics see section 7.4, Hospitals.

SELECTED CAUSES OF DEATH
Crude death rates per 100000 population

Cancer. In New Zealand in 1988 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 184.1 per 100000 population in 1984 to 193.7 in 1987 and 194.9 in 1988.

Table 7.9. DEATHS FROM CANCER, 1988

Age groups, in yearsMalesFemales
NumberRate per 100000 of population at ages givenPercentage of total deaths at ages givenNumberRate per 100000 of population at ages givenPercentage of total deaths at ages given
Source: Health Statistical Services.
Under 586.01.064.70.8
 5-14134.99.0145.59.7
15-24144.72.1206.93.0
25-4412625.39.221042.015.4
45-641033336.021.4812267.516.8
65 and over22501525.511.41975951.610.0
        All ages3444209.112.63037180.911.0

A detailed report on cancer mortality and morbidity in New Zealand is published annually by the Health Statistical Services. It covers cancer registrations and deaths and surveys all cases reported to the National Cancer Registry.

Ninety-four percent of deaths from cancer during 1988 were at 45 years of age or above, and 65 percent were at 65 years of age or above. The lungs continue to be the major site in male deaths from cancer and 6 percent of all male deaths in 1988 were caused by lung cancer. The breasts are the major cancer site in females and accounted for 5 percent of all female deaths.

Table 7.1. DEATHS FROM CANCER AT SELECTED SITES

SiteSexNumberRates per million mean population
198619871988198619871988
Source: Health Statistical Services.
Buccal cavity and pharynxM757281464449
F413334252020
OesophagusM85107104526563
F505371303242
StomachM214215185132131112
F131118124797174
Large intestineM297263281183160171
F404406374244243223
RectumM1581591849797112
F114110123696673
Bronchus, trachea, and lungM949950892584580542
F329395395199237235
BreastM336224
F529607593320363353
Cervix uteriF8911799547059
Corpus uteriF525250313130
Ovary, fallopian tube, and broad ligamentF139143143848685
ProstateM360365402222223244
Bladder and other urinary organsM172170176106104107
F7783106475063
Skin, all formsM118113134736981
F877885534751
BrainM8483101525161
F646563393938
Lymphosarcoma and reticulum-cell sarcomaM293022181813
F271820161112
LeukaemiaM116111142716886
F10411281636748
All other and unspecified sitesM704734734434448446
F620644650375386387
                    Total cancer deathsM336433753444207220602091
F285730353037172718191809

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 7.11. MAORI AND NON-MAORI PERINATAL MORTALITY RATES, 1987*

Category of deathMaoriNon-MaoriTotal population
NumberRateNumberRateNumberRate

* Per 1000 total births (stillbirths plus live births).

Source: Health Statistical Services.

Late foetal324.62445.02765.0
Early neonatal172.41633.41803.3
Perinatal497.04078.44568.2
Neonatal273.92094.32364.3
Post-neonatal7711.02475.13245.9
Infant10414.94569.456010.9

Table 7.12. INFANT MORTALITY RATES FOR SELECTED OECD COUNTRIES, 1988*

CountryAge of child
Neonatal (under 27 days)Post-neonatal (28–364 days)Infant mortality total

* Per 1000 live births. Later years not available.

Source: Health Statistical Services.

Austria4.73.38.1
Germany4.03.57.5
Iceland4.02.16.2
Japan2.72.04.7
Luxembourg4.33.27.6
New Zealand4.35.910.1
Portugal8.64.413.0
United Kingdom4.94.08.9

INFANT MORTALITY
Deaths of infants under 1 year

The principal causes of infant mortality are shown in Table 7.13. 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 7.13. PRINCIPAL CAUSES OF INFANT MORTALITY FOR MAORI AND NON-MAORI, 1988

Cause of deathMaoriNon-MaoriTotal population
Number of deathsRate per 1000 live birthsNumber of deathsRate per 1000 live birthsNumber of deathsRate per 1000 live births
Source: Health Statistical Services.
Infectious and parasitic diseases10.190.2100.2
Malignant neoplasm--20.0420.03
Diseases of the nervous system--60.160.1
Diseases of the circulatory system--60.160.1
Diseases of the respiratory system182.6310.6490.8
Diseases of the digestive system--30.0630.05
Congenital anomalies202.91522.81722.8
Perinatal causes—
     Birth injury--60.160.1
     Respiratory distress syndrome20.3360.7380.6
     Other anoxic and hypoxic conditions10.1140.3150.2
     Immaturity50.7340.6390.6
Other perinatal causes50.7490.9540.9
Sudden infant death syndrome436.21603.02033.4
Accidents, poisonings, and violence (external causes)30.4140.3170.3
Remainder (all other causes)10.170.180.1
     Total, all infant deaths under one year9914.652910.462810.4

Maternal deaths. Maternal deaths from complications of pregnancy, childbirth and the puerperium numbered five in 1988, with a rate of 0.9 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 1988 with a rate of 2.1 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 7.14. ABORTIONS ACCORDING TO AGE GROUP

Age group198819891990P
PercentageNumberPercentageNumberPercentageNumber
Source: Abortion Supervisory Committee.
11------
12-----3
130.0550.0660.19
140.47470.43440.449
151.541551.261291.3149
163.443463.053112.5285
174.634654.664754.3484
185.785815.475585.6627
196.266295.665776.1681
20-2429.292,94229.503,00929.53,290
25-2923.702,38024.062,45423.22,583
30-3414.431,44914.881,51815.81,766
35-397.978008.048208.6954
40-442.352362.812872.4278
45 and over0.0990.12120.115
          Total100.0010,046100.0010,200100.0011,173

Table 7.15. GROUNDS ON WHICH ABORTIONS WERE AUTHORISED

Grounds1987198819891990P
Source: Abortion Supervisory Committee.
Serious danger to physical health34162226
Serious danger to mental health8,5729,8059,91110,887
Combination of serious danger to physical and mental health86102107126
Substantial risk of abnormal child39423544
Incest----
Offence under s. 131 Crimes Act-1--
Woman severely subnormal-1-1-1
Serious danger to mental health and risk of abnormal child556712183
Serious danger to physical and mental health and substantial risk of abnormal child-423
Serious danger to mental health and offence under s. 131 Crimes Act22--
Serious danger to mental health and woman severely subnormal--11
Danger to mental, physical health and woman severely subnormal----
Other multiple grounds14-2
                    Total8,78910,04410,20011,173
Factors of alleged rape taken into account85838366

Table 7.16. 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 has been obtained from the Alan Guttmacher Institute.

† Provisional.

Source: Abortion Supervisory Committee.

New Zealand19893.112.8172147
 19903.313.9186157
Australia19883.816.6262202
Canada19872.510.2173†147†
Denmark19884.118.6380265
England and Wales19893.415.5261207
France19872.913.3209†173†
German Federal Republic19871.46.7135†119†
Japan19874.118.6378275
Netherlands (residents only)19861.35.39889
Sweden19884.421.4335251
United States19856.728.0422297

7.4 Hospitals

Hospital and community health administration

During 1991–92, New Zealand's public hospitals and hospital-based services continue to be administered by area health boards. Area health board members have now been replaced with appointed commissioners, who are responsible for ensuring that a high quality service is maintained in their areas.

The current role of the Department of Health is to advise the minister on the extent and standard of hospital and allied services, and on community and public health. The building requirements to provide these services, and 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. Licensing and inspection of private hospitals are delegated by the Minister of Health, together with the compilation of financial and statistical data on private hospital care.

User part charges for some secondary care services commenced in February 1992. These are payable by middle and upper income earners for outpatient visits to specialists, some accident and emergency services, and also include a contribution towards the cost of staying in a public hospital Services provided by hospitals are free of charge for beneficiaries and lower income earners. 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 for 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.

Advisory boards, committees and councils also help prepare health policies and programmes and, in certain cases, administer government policies. Such agencies enable the minister and the Department of Health to draw on expert advice and wide experience.

Hospital accommodation

Public hospitals. At 31 March 1991 public hospitals provided 19,619 beds throughout New Zealand.

A total of 471,471 inpatient and long-stay admissions to public hospitals was recorded for the year ended 31 March 1991. This figure, which included people in surgical, medical, maternity, and psychiatric beds and non-hospital beds in old people's homes, was equivalent to 14.2 percent of the population. The 1988–89 figure was 467,968.

Outpatient and dyapatient attendances (excluding X-ray, laboratory and pharmacy diagnostic services) at public hospitals totalled 3,429 358 and 289,158 respectively for the year ended 31 March 1991, compared with 3 713,055 and 306,126 in 1990.

As at 31 March 1991 there were 57,262 names on surgical waiting lists for admission to public hospitals. This compares with 59,030 on waiting lists at 31 March 1990.

Table 7.17. BEDS IN PUBLIC INSTITUTIONS, 1991*

Type of bedBeds availableAverage number of occupied beds per day
NumberProportion per 1000 of populationNumberProportion per 1000 of population

* Year ended 31 March.

Source: Health Statistical Services.

General11,5933.47,923.32.3
Maternity1,8310.51,118.80.3
Psychiatric and intellectually handicapped5,8731.74,727.81.4
          Total hospital beds19,2975.613,769.94.03
Non-hospital beds3220.09233.10.07
                    Total19,6195.714,0034.1

HOSPITAL BEDS
Public and private hospitals

Private hospitals. At 31 March 1991 the 191 licensed private hospitals provided a total of 6963 beds.

Table 7.18. PRIVATE HOSPITAL BEDS*

Type of hospitalNumber of hospitalsLicensed beds
198919901991198919901991

* As at 31 March.

Source: Health Statistical Services.

Maternity112193136
Short stay medical, hospices and surgical3740421,4161,3281,396
Geriatric and long stay medical1401421476,4205,2385,531
                    Total1781831917,8556,5976,963

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 7.20 shows the principal diseases and injuries treated in public hospitals in 1989, 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 1989 was 9.4 days. Among sufferers from specified diseases, the longest average stays were made by those with psychoses (66.0 days) and cerebrovascular disease (59.0 days) followed by patients with other diseases of the nervous system (40.3 days).

Table 7.19. AGE AND SEX OF PATIENTS ADMITTED TO PUBLIC HOSPITALS, 1989*

Age groupMalesFemalesTotal

* Year ended 31 December.

Source: Health Statistical Services.

0-4278461966147737
5-98807615214959
10-147104550212606
15-1998461789127737
20-2499623331943281
25-2989794395082929
30-3477413131339054
35-3968161582922645
40-4468371000016837
45-496775811514890
50-547196745914655
55-599451757417025
60-6411950941421364
65-69133171094124256
70-74124031132823731
75-79117051186523570
80-847225947516700
85 and over4468860213070
                    Total178458268590447048

Table 7.2. DISEASES AND CONDITIONS TREATED IN PUBLIC HOSPITALS (INCLUDING READMISSIONS) DURING 1988

Diagnostic groupTotal discharges or deaths in public hospitalsPercentage of all casesAverage stay (days)

* 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: Health Statistical Services.

Infectious and parasitic diseases (except tuberculosis)6,7131.57.0
Tuberculosis3460.115.7
Malignant neoplasms*25,8365.810.2
Benign neoplasms†4,5731.05.5
Disorders of thyroid gland5080.113.5
Diabetes mellitus3,1190.618.1
Other endocrine, nutritional, metabolic and immunity disorders2,0800.410.1
Diseases of blood and blood-forming organs2,8040.67.4
Psychoses5,6151.266.0
Other mental disorders4,5141.019.4
Disorders of the eye and adnexa6,6281.43.7
Diseases of ear and mastoid process4,6721.02.0
Other diseases of the nervous system7,0211.540.3
Acute rheumatic fever and chronic rheumatic heart disease7590.117.0
Ischaemic heart disease15,7293.59.4
Hypertensive disease and other forms of heart disease11,1912.512.3
Cerebrovascular disease7,5371.659.0
Diseases of arteries, arterioles and capillaries3,9990.813.6
Other diseases of circulatory system‡4,8121.06.6
Acute respiratory infections and influenza7,4221.62.9
Pneumonia5,5811.218.9
Chronic obstructive pulmonary disease and allied conditions17,2703.86.4
Chronic disease of tonsils and adenoids3,4870.72.2
Other diseases of respiratory system5,4861.26.5
Diseases of oral cavity, salivary glands and jaws2,4240.51.9
Diseases of oesophagus, stomach and duodenum4,2790.96.3
Appendicitis3,9860.84.6
Hernia of abdominal cavity4,6711.03.8
Non-infective enteritis and colitis and other diseases of intestines and peritoneum9,4062.17.1
Other diseases of digestive system6,1911.39.9
Diseases of urinary system7,2731.67.1
Diseases of male genital organs4,1050.95.1
Diseases of breast and inflammatory disease of female pelvic organs3,5510.72.7
Other disorders of female genital tract10,5792.33.5
Complications of pregnancy, childbirth and the puerperium (except abortion)72,79016.24.7
Pregnancy with abortive outcome8,4971.91.7
Diseases of skin and subcutaneous tissue6,9021.57.9
Arthropathies and related disorders, dorsopathies and rheumatism except rheumatic fever15,2683.410.5
Osteopathies, chondropathies and acquired musculoskeletal deformities2,4890.512.9
Congenital anomalies5,9171.38.2
Certain conditions originating in the perinatal period9,3202.010.3
Symptoms, signs and ill-defined conditions24,8245.56.0
Fractures19,1504.212.9
Dislocations, sprains and strains of joints and adjacent muscles2,2330.45.0
Intracranial injury (except skull fracture)6,6151.33.7
Laceration and open wound6,6141.44.4
Burns1,2652.811.0
Poisoning by drugs, medicaments and non-medicinal substances3,5400.73.3
Other injuries and adverse effects, and late effects of injuries14,9923.39.1
Special admissions without current complaint or reported diagnosis and for elective procedures32,9157.36.4
                    All conditions447,048100.09.4

Accident cases. During 1989 the four 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); ‘motor vehicle traffic accidents’ and ‘surgical and medical complications and misadventures’. 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, the third largest group, had the second longest aggregate stay.

Table 7.21. ACCIDENT CASES TREATED AS INPATIENTS IN PUBLIC HOSPITALS (INCLUDING READMISSIONS), 1989*

Type of accidentTotal casesPercentage of all accident casesAverage stay (days)Aggregate stay (days)Aggregate stay as percentage of total

* Year ended 31 December.

Source: Health Statistical Services.

Transport—
     Railway220.17.21590.1
     Motor-vehicle traffic8,68517.310.284,32017.2
     Motor-vehicle non-traffic6701.16.34,2130.9
     Other road vehicles1,8743.44.27,8141.5
     Water1890.35.51,0410.2
     Air890.215.21,3500.2
     Vehicle accidents not elsewhere classifiable1613.0205-
                    Subtotal, transport11,54522.38.9103,10520.1
Non-transport—
     Accidental poisoning1,0512.02.12,2500.4
     Accidental falls15,56524.815.5240,64537.8
Surgical and medical complications and misadventures8,09911.612.5100,83715.6
Late effects of accidental injury3,7806.214.053,0628.7
Adverse effects of drugs, medicaments, and biological substances1,5502.319.013,9621.8
Suicide and self inflicted injury2,5614.95.213,2443.1
Homicide and injury purposely inflicted by other persons2,3944.13.17,4151.5
Legal intervention by police103.232
Injury undetermined whether accidentally or purposely inflicted1860.33.15730.1
Injury resulting from operations of war67.344
Other accidents12,34221.55.163,23611.0
Subtotal, non-transport47,55177.710.4495,30079.9
                    Total59,096100.010.1598,405100.0

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 7.22 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 7.22. INPATIENTS IN PUBLIC HOSPITALS AFTER ACCIDENTS AT HOME, 1989*

Cause of accidentTotal patients

* Year ended 31 December.

Source: Health Statistical Services.

Accidental poisoning by—
     Drugs and medicaments540
     Petroleum products and other solvents78
     Agricultural and horticultural preparations other than plant foods or fertilisers75
     Noxious foodstuffs and poisonous plants27
     Other solid and liquid substances143
     Gases and vapours19
Accidental falls6,884
Struck by falling objects123
Accidents caused by cutting and piercing instruments1,610
Accidental burns835
Accidents caused by foreign bodies598
All other and unspecified accidents1,709
                    Total12,461

For further accident statistics, see section 7.5, Accidents.

Psychiatric hospitals and hospitals for the intellectually handicapped

In 1988, 11 psychiatric hospitals and five hospitals for the intellectually handicapped were controlled by area health boards. In addition there were 17 psychiatric units attached to public hospitals. Lake Alice Hospital, near Marton, has provision for the care of maximum security patients from throughout the country. Funding of these hospitals has been fully integrated with that of public hospitals since 1978.

The Mental Health (Compulsory Assessment and Treatment) Bill 1989, expected to come into effect during 1992 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 Health Statistical Services. It contains administrative and clinical data about first 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 7.23. 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 leave†RateAverage number totalRateAverage number residentRate

* Per 100,000 mean population. Year ended 31 December.

† Refers only to committed and special patients.

Source: Health Statistical Services.

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
19885,382161.81,68750.77,474224.72788.3

Table 7.24. 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: Health Statistical Services.

1984—
     Maori1616843332019090115199
     Non-Maori2390205147136119146124
1985—
     Maori12192493318224109102222
     Non-Maori17110206149118102150125
1986—
     Maori921653324412862122220
     Non-Maori1510922816311798146129
1987—
     Maori1517039325311710351180
     Non-Maori1311121814912798149127
1988—
     Maori521048827517013190218
     Non-Maori10108222159127103151129

Admissions. The total number of admissions to psychiatric care during 1988 was 14,988. This total was made up of 4564 first admissions, and 10,424 readmissions. Included in the readmission figure were 1431 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 1991 was about 1.2 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 1988, 85 percent of first admissions and 81 percent of readmissions were on an informal (voluntary) basis. Table 7.26 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 1988 there were 14,203 discharges from psychiatric hospitals and hospitals for the intellectually handicapped, psychiatric units of public hospitals and institutions treating alcoholism and drug addiction. Of these, 7622 were discharged from psychiatric hospitals, 291 from hospitals for the intellectually handicapped, 5049 from public hospital psychiatric units, and 1241 from institutions licensed under the Alcoholism and Drug Addiction Act 1966.

Approximately six out of every 10 patients leaving hospital in 1988 had a stay of less than 30 days.

Table 7.25. DISCHARGES FROM PSYCHIATRIC HOSPITALS, 1988*

DiagnosisOutrightLeaveNot committed
NumberMean stay (days)NumberMean stay (days)NumberMean stay (days)

* Year ended 31 December.

Source: Health Statistical Services.

Senile and pre-senile organic psychotic conditions23718514436--
Alcoholic psychoses7027212548--
Drug psychoses107452876--
Other organic psychotic conditions11411748268112
Schizophrenic psychoses182521010202022129
Affective psychoses2302465181141024
Paranoid states14130437110113
Other psychoses299559660447
Neurotic depression and other depressive disorders122548711761218
Other neurotic disorders249309149128
Alcohol dependence or abuse212957148229816
Drug dependence or abuse7513632276212
Other personality disorders786471071152116
Stress and adjustment reactions782382754335
Non-psychotic disorders of childhood and adolescence1920----
Non-psychotic mental disorders following brain damage284111158122
Psychological malfunction due to mental factors142717--
Mental retardation4581,9931251,583717
No psychiatric diagnosis1985321985222
                    Total11,7341582,32525814422

Table 7.26. PSYCHIATRIC HOSPITAL DIAGNOSES, 1988*

DiagnosisTotalsFirst admissionsReadmissionsReplacement from leave

* Year ended 31 December.

Source: Health Statistical Services.

Senile and pre-senile organic psychotic conditions3952641283
Alcoholic psychoses6218386
Drug psychoses12050628
Other organic psychotic conditions166589711
Schizophrenic psychoses2,9532982,175480
Affective psychoses2,9645842175205
Paranoid states1785111017
Other psychoses45317026221
Neurotic depression and other depressive disorders1,38562972828
Other neurotic disorders2701201491
Alcohol dependence or abuse2,2067821,37747
Drug dependence or abuse95845349510
Other personality disorders88924858853
Stress and adjustment reactions8365063219
Non-psychotic disorders of childhood and adolescence23194-
Non-psychotic mental disorders following brain damage54173126
Conditions associated with physical disorders14752
Mental retardation5025138170
No psychiatric diagnoses56023930714
                    Total all cases1498845649433991

Deaths. In 1988 there were 300 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 332 in 1987.

7.5 Accidents

Accident compensation

Virtually all individuals resident in or visiting New Zealand are covered by a comprehensive system of injury 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 district and branch 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 injury prevention.

The corporation offers advice and guidance in accident reduction, and supports injury prevention research. It also conducts campaigns on specific hazards, supported by a range of injury prevention publications and resource materials. Corporation injury prevention consultants are available at a community level to assist with injury prevention activities.

ACC demonstration on eliminating back pain and injury.

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 co-ordinators, 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 7.27. ACCIDENT COMPENSATION CLAIMS RECEIVED

Claims*Year ended 31 March
19871988198919901991

* 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' Account123x105x112x118x128x
Motor Vehicle Account20x21x19x20x21x
Supplementary Account37x35x40x417x55x
                    Total claims180x161x171x185204
Percentage annual change0.6x−10.6x6.2x8.210.3

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 New Zealand Post Ltd 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.

The Scheme has been subject to review over several years and the Government has announced its intention of introducing amending legislation effective from 1 July 1992.

Table 7.28 shows income from levies, compensation payments and administrative costs for the years ended 31 March 1989 and 1990.

Table 7.28. ACCIDENT COMPENSATION COSTS AND ADMINISTRATION COSTS*

ItemEarners' accountMotor vehicle account
1989199019891990
Income—$(000)
Gross levy revenue889,865,603864,765,400186,821,648203,187,826
Investment income100,745,880134,759,35510,978,28113,656,015
Government Contribution----
                    Total income990,611,483999,524,755197,799,929216,843,841
Expenditure—
Earnings-related compensation or loss of potential earnings payable to injured persons315,775,569378,716,43668,303,58977,878,319
Earnings-related compensation or remarriage grants payable to dependants21,043,29222,080,56619,786,61121,320,022
Funeral expenses and dependants allowance1,204,0411,195,2172,414,7333,083,355
Non-economic loss98,089,381103,703,55735,111,10335,788,087
Medical treatment50,748,55179,795,19313,728,98315,120,077
Hospital treatment18,165,51723,081,8043,306,3513,903,043
Dental treatment3,470,2005,589,4271,061,8251,614,768
Conveyance for medical attention3,613,7595,769,0692,326,5132,608,869
Rehabilitation—aids, training and grants4,170,6016,595,5282,658,4993,319,266
Loss not related to earnings9,132,96525,519,4966,047,0056,886,157
                    Total compensation525,413,876652,046,293154,745,212171,521,963
Financial grants—Department of Labour16,931,63619,146,155--
Financial grants—other1,530,0251,282,77457,43870,554
Levy revenue collection fee7,770,0678,256,8601,608,5451,554,506
General fund transfer31,591,74935,951,2499,403,0309,727,565
                    Total expenditure583,237,353716,683,331165,814,225182,874,588
ItemSupplementary accountTotal
1989199019891990
Source: Accident Compensation Corporation.
Income—$(000)
Gross levy revenue--1,076,687,2511,067,953,226
Investment income1,805,1151,650,727113,529,276150,066,097
Government Contribution102,000,085122,832,202102,000,085122,832,202
                    Total income103,805,200124,482,9291,292,216,6121,340,851,525
Expenditure—
Earnings–related compensation or loss of potential earnings payable to injured persons174,632380,569384,253,790456,975,324
Earnings–related compensation or remarriage grants payable to dependants--40,829,90343,400,588
Funeral expenses and dependants allowance673,132832,8644,291,9065,111,436
Non-economic loss25,667,74729,390,967158,868,231168,882,611
Medical treatment55,736,99164,360,150120,214,525159,275,420
Hospital treatment5,302,2237,026,17726,774,09134,011,024
Dental treatment2,801,9974,425,8937,334,02211,630,088
Conveyance for medical attention1,839,0474,324,9767,779,31912,702,914
Rehabilitation—aids, training and grants882,583950,1987,711,68310,864,992
Loss not related to earnings4,151,0285,563,87019,330,99837,969,523
                    Total compensation97,229,380117,255,664777,388,468940,823,920
Financial grants—Department of Labour--16,931,63619,146,155
Financial grants—other719,424601,0152,306,8871,954,343
Levy revenue collection fee--9,378,6129,811,366
General fund transfer5,856,3966,626,25046,851,17552,305,064
                    Total expenditure103,805,200124,482,929852,856,7781,024,040,848

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 7.4, 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 1990, there were 12,800 reported accidents resulting in 729 fatalities and injuries to 17,698 other people.

Table 7.29. ROAD ACCIDENT CASUALTIES BY TYPE, 1990

Classification of accidentsFatalInjuryTotal
Source: Ministry of Transport.
Overtaking or lane change43741784
Head on (not overtaking)18019412121
Lost control or ran off road on straight7618101886
Lost control or ran off road while cornering18834253613
Collision with obstruction18891909
Rear end1410381052
At intersections or driveways—
      Vehicles moving in same direction, one turning1711411158
      Vehicles crossing paths, not turning2316431666
      Vehicles crossing paths, one turning2211901212
      Vehicles merging6273279
      Vehicles moving in opposite directions, one turning right2015011521
Vehicles manoeuvring7763770
Pedestrian crossing road7510491124
Pedestrian—other25131156
Miscellaneous15161176
                    Total7291769818427

Table 7.3. AGE OF PERSONS KILLED AND INJURED IN MOTOR ACCIDENTS

Age groups (years)Killed*Injured
198819891990198819891990

* Killed immediately or died within 30 days of accident.

Source: Ministry of Transport.

Under 5171815320292331
 5–9141720472486521
10–14121617756686755
15–19143153135407037203855
20–24153143169331530733254
25–29948495195518952103
30–34415450128112901337
35–39414239876849986
40–44333525748724821
45–49282727533540583
50–54202219439451481
55–59212215385390381
60–64192519374378374
65–69221916284280301
70 and over466250655590760
Unknown age242218852882855
                    Total728761729173241652617698

Table 7.31. ROAD USERS KILLED AND INJURED IN ROAD MOTOR ACCIDENTS

Type of casualtyKilledSerious injuryMinor injuryTotal
Source: Ministry of Transport.
Driver of—
      Car235144158177493
      Taxi-64248
      Van32153516701
      Truck649167222
      Bus-11314
      Motorcycle9574111952031
      Other511521
      Unknown----
Passenger of—
      Car174107333374584
      Taxi-12021
      Van24105328457
      Truck1154965
      Bus5128198
      Motorcycle19106161286
      Other191727
      Unknown----
Cyclist272677871081
Pedestrian1044137481265
Other and unknown-5713
                    Total72944081329018427

Table 7.32. ROAD ACCIDENT CASUALTIES AND RATES

December yearPersons killedPersons killed per 100000 populationPersons injuredPersons injured per 100000 populationTotal casualties per 100000 population
Source: Ministry of Transport.
198676723.118785565.6588.7
198779723.818642556.6580.4
198872821.717324516.2537.9
198976122.516526488.3510.8
199072921.317698516.1537.4

Table 7.33. INTERNATIONAL COMPARISONS: MOTOR ACCIDENT DEATH RATES, 1988

CountryPersons killedPersons killed per 10000 vehicles*Person killed per 100000 population

* This statistic is no longer kept in New Zealand.

Source: Ministry of Transport.

New Zealand728-21.7
United Kingdom50522.48.9
Australia28883.017.4

Cycle helmet promotion organised by Ministry of Transport.

Road safety. Road traffic is controlled by the Ministry of Transport. For further information, see section 20.4, 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 7.34. DROWNINGS

LocationYear ended 31 December
1987198819891990

* Includes drownings in pools, rivers, seas and others.

Source: New Zealand Water Safety Council.

Boating26173430
Surf activities2111
Whitewater activities343-
Angling33134
Scuba diving and snorkelling11859
Swimming*11171428
River crossing4743
Other water-related73-3
Non-water related3-11
                    Total recreational70607579
     Immersion incidents—
          Adult19272119
          Children 5–151332
          Preschool—pools610810
          Preschool—other5494
Rescuing others1234
Vehicle accidents2723207
Tourism and commercial-1-3
Commercial fishing91734
Employment related-3-1
Floods and civil emergencies-3--
Suicides and homicides21151210
                    Total non-recreational891087964
                    Total drownings159168154143

General accident statistics

Accidents, poisonings and violence caused approximately 8 percent of total deaths in each of the years 1976 to 1980, 8 percent in 1986, 7.5 percent in 1987 and 7 percent in 1988.

Table 7.35. DEATHS FROM EXTERNAL CAUSES*

Causes of deathNumber of deathsRate per million of mean population
198619871988198619871988

* Registered during calendar year.

† Includes falls aboard ship and from horseback.

‡Includes drowning from water transport.

Source: Health Statistical Services.

Motor vehicle accidents782835743238252223
Other transport accidents†455352141616
Accidental poisoning192315675
Accidental falls316273213968364
Accidents caused by machinery2521358611
Accidents caused by fire and explosion of combustible material38243812711
Accidents caused by firearms16718525
Accidental drowning and submersion‡121102105373132
Suicide and self-inflicted injury414463484126140146
Homicide736558222017
All other external causes190169158585148
     Total deaths from accidents, poisoning, or violence203920351919622615577

Table 7.36. DEATHS FROM LEADING EXTERNAL CAUSES BY SEX AND AGE, 1988*

Age group (in years)Motorvehicle accidentsAccidental drowningsAccidental poisoningsAccidental falls
MFMFMFMF
Under 1526191492231
15–242317017-1-111
25–341203515--151
35–4464232343-6-
45–543597---51
55–643013512184
65–7414203-11710
75 and over1717341-41109
                    All ages537206871810586127
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: Health Statistical Services.

Under 152-558252
15–241062593412108
25–34722916627183
35–445271118242
45–545072411228
55–6446164-11945
65–74339117549
75 and over2010--98161
                    All ages38110338201351568

Accidental falls. There were 213 deaths due to accidental falls in 1988. 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 7.37. SITES OF FATAL NON-TRANSPORT ACCIDENTS*

Place of occurrenceNumber of accidentsRate per million of mean population
198619871988198619871988

* Excludes surgical and medical misadventure, late effects of accidental injury.

Source: Health Statistical Services.

Home (including home premises and vicinity and any non-institutional place of residence)204162160624948
Farm (including buildings and land under cultivation, but excluding farm and home premises)251831859
Mine and quarry6-12-0.3
Industrial places and premises261631859
Places for recreation and sport15106532
Street and highway9813324
Public building (building used by the general public or a particular group of the public)9157352
Residential institution (homes, hospitals, etc.)11710490363127
Other specified places949195292828
Place not specified887747272314
                    Total593501481181151145

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 7.38. DEATHS OF PRE-SCHOOL CHILDREN FROM ACCIDENTS AND VIOLENCE, 1988

Causes of deathSexAge (in years)
1234Total
Source: Health Statistical Services.
DrowningM-1--1
F--1-1
Motor vehicle accidentsM523212
F43119
HomicideM---11
F-----
All other external causesM438520
F154-10
                    Subtotal, male 9611834
                    Subtotal, female 586120
                    Total 141417954

7.6 Civil defence and fire safety

Civil defence

The phrase ‘civil defence’ describes the planning and organisation of measures necessary for public safety during disasters. 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 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.

At 30 June 1991, all districts and regions had formed civil defence organisations or combined with other authorities to do so. All had current civil defence plans.

The ministry provides support through four civil defence zones in Auckland, Palmerston North, Wellington and Christchurch. The ministry also provides subsidies for local and regional civil defence work, and through the national civil defence school encourages training and planning.

The National Civil Defence Committee advises and assists the minister and the Director of Civil Defence in the planning and implementation of civil defence measures.

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.

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 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 indemnity value 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 Consolidated Account if at any time the amount in the Earthquake and War Damage Fund is not sufficient to meet the lawful claims on the commission.

The commission's board consists of between five and 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.

The commission was reconstituted as a statutory corporation in 1988. The Government is currently considering further changes and proposals, such as the deregulation of commercial property, and the introduction of an upper limit for cover on residential property. Reforms are expected to come into effect in 1992.

Alpine rescue, Mt Ruapehu.

For the year ended 31 March 1991 a total of 6008 claims were received. This compared with 3191 for the previous year. As a result of seismic activity, 5602 claims amounting to approximately $12,315,000 were registered. Disaster claims, including landslip, totalled 406, with payments amounting to approximately $1,716,000.

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 part time commissioners appointed by the Government and the Secretary for Internal Affairs.

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. The fire areas are further divided into fire districts, of which there are 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 1990 contributions from insurance companies totalled $146,230,00, while government contributed $13,883,000 compared with $14,776,000 in 1989.

Ambulance and fire officers rescue fall victim, Wellington.

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 7.39. INCIDENTS ATTENDED BY FIRE BRIGADES

Incidents19891990
* An exposure fire is where a fire originating in one properly spreads to another property. They are subtracted from total fire incidents to reflect a clear total number of incidents attended.
Fires—
     Structure fires43634570
     Vehicle fires29063061
     Other property fires16501750
     Oven fires702718
     Chimney fires13941355
     Rubbish fires44694283
     Tree, grass, and scrub fires32283230
     Other fires292387
1900419354
Less, exposure fires*206214
                    Total, fire incidents1879819140
Non-fire incidents—
     Flammable liquid spills (under 30 litres)12641483
     Flammable liquid spills (over 30 litres)916952
     Overpressure or rupture (no fire)4052
     Emergency medical calls (assistance to other agencies)397436
     Rescues (vehicle extrication, etc.)6941846
     Chemical, hazardous substances760772
     Service calls23272597
     Other352456
                    Total, non-fires77508594
False alarms—
     Malicious17431703
     Defective apparatus or installation74107234
     Accidental34243678
     Good intent48164768
                    Total, false alarms1739317383
                    Total, incidents attended4394145117

Fire statistics. Thirty people died as a result of property fires during 1990, compared with 41 in 1989 and 42 in 1988. In 1990 the most common suspected causes of fires resulting in fatalities were collision, overturn, knockdowns and falling asleep.

Fire insurance is described in section 21.3, Insurance and superannuation.

7.7 Occupational safety and health

Administering organisations

Until recently responsibility for administration of occupational safety and health legislation was shared by the Department of Labour, the Ministry of Transport, the Ministry of Commerce and the Department of Health. Most of the occupational safety and health functions of the Department of Health were delegated to the Area Health Boards.

Recent reform. During 1990 responsibility for the provision of occupational safety and health policy and services was transferred from the Department of Health to the Occupational Safety and Health Service (OSH) of the Department of Labour (see below).

With the completion of the legislative reform, the Department of Health will still maintain an input into health policy for the workplace. Area health boards, who had been delegated responsibility for providing occupational health nursing and medical services at a local level, will continue to provide these services under contract to OSH. The process of notifying occupational diseases has been reviewed; where the Health Act 1965 previously required these to be reported to the Department of Health, a new system of notification is now being developed by OSH. Continuation of the Department of Health's ongoing involvement with the Toxic Substances Act 1979 and the Pesticides Act 1979 will be influenced by the establishment of the Hazards Control Commission provided for under the Resource Management Act 1991.

Responsibility for the controlling legislation and inspection of boilers, lifts and cranes has also been transferred from the Ministry of Transport to the Department of Labour. The Ministry of Transport retains responsibility for the legislation ensuring public safety in the different transport industries.

Responsibility has been transferred from the Ministry of Commerce to OSH for the Acts setting the safety and health of workers in different areas of the energy sector. The five Acts, which were previously administered by the Mining Inspection Group, are the: Quarries and Tunnels Act 1982, Mining Act 1971, Coal Mines Act 1979, Petroleum Act 1973, and Geothermal Energy Act 1953.

Legislative reform. Legislative reform has continued towards the introduction of a single Act prescribing minimum standards across all industries.

An occupational safety and health bill was introduced to Parliament at the end of 1991. This new Health and Safety in Employment Act will set out the responsibilities of employers, employees and others to manage the risks they face in their work on a day-to-day basis. Employers will have the primary responsibility to ensure the health and safety of their workers by:

  • Providing a safe and healthy working environment for their employees;

  • Implementing effective hazard identification and control methods;

  • Providing training and supervision of their employees; and

  • Involving their employees in the development of procedures for dealing with hazards and emergencies.

Employees will have the responsibility to ensure that they do not endanger their own health and safety or that of other people by their work.

Mining accident victim rescued, Waikato.

Occupational Safety and Health Service. The 1987 Advisory Council for Occupational Safety and Health recommended the establishment of a single authority with one piece of legislation for setting occupational safety and health standards for all industries.

Upon that recommendation the Occupational Safety and Health Service (OSH) of the Department of Labour was set up as the central authority. Its role is to minimise the economic and social cost of workplace illness and injury. The service administers and enforces legislation, develops occupational safety and health policy and, at a more practical level, contracts health authorities to provide services to industry. The service maintains a close involvement with industry.

The service has extensive involvement with industry. In 1990-91 over 92000 visits were made to workplaces, of these nearly 60000 were to inspect for compliance with legislation. Other major types of visits were: investigating accidents and complaints (4500) and education and training activities (approximately 5000). Funding for these activities comes from a proportion of the levy charged on employers by the Accident Compensation Corporation. Service expenditure is estimated at $21.15 million in 1991-92

Priority projects. The 1991-92 year saw a change in approach for OSH, as it began to concentrate on two main types of high priority workplaces. Although industry-wide surveillance continues, the following two categories of workplace receive the bulk of resources.

Under-performing workplaces—During 1991-92 OSH is working to reduce risks in 1600 workplaces identified as having a poor level of achievement in occupational safety and health. Under this programme OSH professionals use a range of approaches and resources as they work with the management of individual companies to, firstly, build an awareness of the need to manage risk, and then help to build risk management systems into workplaces.

High hazard workplaces—Under this programme 15500 workplaces with high hazard processes or activities are to be visited and their safety and health performance monitored.

Responses to hazardous situations and other incidents will continue to be a priority for OSH personnel. The service will continue to investigate all workplace fatalities and to work closely with the police and defence forces–particularly in the area of explosives and dangerous goods and other emergencies where public safety is threatened.

National projects. As well as focusing efforts a high priority workplaces, the service is beginning a broader approach through three three-year national projects, each of which will concentrate on a particular area of risk that is found in virtually all New Zealand workplaces. The subject areas are manual handling, noise and chemicals.

For each project the approach is to build awareness of the risks in workplaces and then offer the resources and assistance people need to control risk in their own workplace. This is achieved by:

  • Training OSH professionals and others in the field;

  • Developing and publishing guidelines, regulations and other resources; and

  • Public education through the media and contact with occupational safety and health professionals.

Research and policy development. The service is working to implement new administrative mechanisms for the management of particular risks in the workplace. This includes several major recommendations of the April 1991 Report of the Asbestos Advisory Committee of the Ministry of Labour. A register of those exposed to asbestos dust and for victims of asbestos-related disease will be established. The latter will become part of a wider occupational disease register which begins operation in early 1992.

OSH technical staff are also responsible for the monitoring of international developments of relevance to New Zealand.

Contributors

  • 7.1 Department of Health; Nursing Council of New Zealand; Pharmaceutical Society of New Zealand.

  • 7.2 Department of Health

  • 7.3 Department of Health; Alcoholic Liquor Advisory Council; Medical Research Council; Health Statistical Services; Abortion Supervisory Committee.

  • 7.4 Department of Health; Health Statistical Services.

  • 7.5 Accident Compensation Corporation; Ministry of Transport; Water Safety Council; Health Statistical Services.

  • 7.6 Department of Internal Affairs; Earthquake and War Damage Commission; New Zealand Fire Service Commission.

  • 7.7 Department of Health; Department of Labour; Ministry of Transport; Ministry of Commerce.

Further information

Health

Alcohol Consumption Statistics. Alcoholic Liquor Advisory Council (annual).

Alcohol/Drug Outpatient Statistics. Alcoholic Liquor Advisory Council (annual).

Annual Report and Statement of Accounts. Pharmaceutical Society of New Zealand.

Cancer Data. Health Statistical Services, Department of Health (annual).

Hospital and Selected Morbidity Data. Health Statistical Services, Department of Health (annual).

Hospital Management Data. Health Statistical Services, Department of Health (annual).

Mental Health Data. Health Statistical Services, Department of Health (annual).

Mortality and Demographic Data. Health Statistical Services, 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).

Safety

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 8. Education

Kindergarten pupils painting, Wellington.

8.1 Administration of education

As a result of reforms in education administration in 1988 and 1989, eight agencies were established to administer education. These agencies replaced the Department of Education and 10 education boards which had administered education in New Zealand for over 100 years.

Education agencies

Early Childhood Development Unit. The Early Childhood Development Unit promotes and encourages the development and provision of quality, accessible, and culturally appropriate early childhood services. The unit provides liaison and co-ordination for all early childhood education services. It offers 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.

The Early Childhood Development Unit is an independent organisation which is contracted to the Ministry of Education.

Special Education Service. The Special Education Service provides services to assist those learners from early childhood to tertiary levels who have special physical and learning needs. Staff in the Special Education Service include: advisers on the deaf, psychologists, speech and language therapists, itinerant teachers, and visiting teachers.

The service is an independent organisation contracted to the Ministry of Education to provide special education services.

Quest Rapuara. Quest Rapuara is a careers advice and information service which helps people choose the work, education and training that suits them.

The main functions of Quest Rapuara are to:

  • Give information and support materials on occupations, education, and training, and assistance in how to use them effectively.

  • Assist educators and trainers to run effective transition and career education programmes wherever education takes place.

  • Develop plans and programmes which help people make choices about their work lives.

  • Develop training programmes for staff who work in human resources, transition, and career education.

  • Offer guidance and support for people facing changes in their work situation.

  • Establish and maintain networks of people working in the career development and transition education fields.

Quest Rapuara operates a computer database on vocational and careers information available from many outlets, such as schools, polytechnics, public libraries, marae and other public places. Quest Rapuara is a government-funded agency chartered to the Minister of Education.

Education and Training Support Agency. The Education and Training Support Agency develops and administers training which supports individuals preparing to enter or re-enter the workforce, or who are participating in work-based training.

The agency is currently responsible for the successful implementation of three major training schemes: the Access Training Scheme, Apprenticeship, and the Primary Cadet Schemes. In addition to this operational focus, the agency works with the Ministry of Education to develop labour market training policy. The agency is an independent organisation working under a charter to the Minister of Education.

Ministry of Education. The Ministry of Education is responsible for providing policy advice to the Minister of Education on all aspects of education from early childhood to tertiary, overseeing the implementation of approved policies and ensuring the optimum use of resources devoted to education.

The ministry provides funding to early childhood centres, schools, universities, polytechnics, and colleges of education, and ensures this money is distributed according to government policy. It approves charters in all of these institutions and also negotiates funding bids for tertiary institutions.

The ministry administers legislation and manages school property. It is responsible for developing national guidelines on all aspects of education, including national curriculum objectives. It is also responsible for the collection, analysis and dissemination of education statistics. The ministry will ensure the delivery of education advisory services, special education services, curriculum and early childhood development through contractual arrangements with other agencies.

New Zealand Qualifications Authority. The aim of the New Zealand Qualifications Authority is to co-ordinate an accessible and flexible qualifications system which meets New Zealand's needs and internationally recognised standards.

Its main functions are to:

  • Administer national examinations, both secondary and tertiary.

  • Co-ordinate all qualifications in post-compulsory education and training (from upper secondary to degree level).

  • Set and regularly review standards as they relate to qualifications.

  • Ensure New Zealand qualifications are recognised overseas, and overseas qualifications are recognised in New Zealand.

The Qualifications Authority is a Crown agency–an independent body which reports directly to the Minister of Education.

Education Review Office. The role of the Education Review Office is to review and report on the extent to which early childhood centres and primary and secondary schools are achieving the educational objectives set out in their charters.

Reviewers visit primary and secondary schools every three years, early childhood centres annually and students being taught at home every two years. As well as reporting on what is being achieved, reviews help learning centres improve their own systems for monitoring and improving learning. 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.

The Review 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 colleges of education's supply of general advisory services to institutions; and the Ministry of Education's provision of policy advice and the quality of policy implementation as this affects the performance of educational institutions. They may also undertake special reviews on the initiative of the Minister of Education, or of the office itself.

Teacher Registration Board. The Teacher Registration Board is a Crown agency, established under the 1989 Education Act. It approves the registration of teachers and maintains a register of teachers.

Other administrative bodies

Boards of Trustees. All state primary and secondary schools in New Zealand are governed by Boards 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. One student enrolled full time in a class above form three 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 its control of the management of its school. It has responsibility for payment of ancillary staff salaries and for the allocation of funds for the operational activities 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 Education Guidelines and local goals and objectives which reflect the particular aspirations of individual schools and their communities.

Polytechnic councils. Polytechnics are controlled by councils. Members represent business, industry, local authorities, universities, women's and ethnic groups, as well as education and community interests.

Colleges of Education councils. Councils of colleges of education include representatives from universities and teacher organisations.

University councils. Each university is established under its own Act of Parliament and is also subject to the provisions of the Education Amendment Act 1990. All matters relating to management are the responsibility of the council of the institution, which represents the interests of staff, students and the community.

Education Service Centres. Fourteen independent Education Service Centres were formed out of the 10 Education Boards and three regional offices of the Department of Education to offer services such as transport, payroll, property, supply and direct administration services to schools.

Other educational bodies

New Zealand Council for Educational Research. As a result of an independent review of NZCER in 1989, the research function of the council was reorganised during 1990-91 under two main themes:

  • Educational achievement: assessment, monitoring, and reporting.

  • Educational institutions in change: policies and practices.

Within these two themes, projects are undertaken at each of the three levels of the education system–early childhood, the formal school system, and tertiary education. As examples, current projects in the area of educational achievement include revisions of the PAT tests and the development of tests for selecting prison staff, police trainees, and engineering students at polytechnics. In the area of educational institutions in change, current projects include studies of how classroom resources are used by junior school children, the training of teachers of preschool children, the training of primary and secondary school teachers, the care of infants and toddlers in childcare centres, and the impact on primary and intermediate schools of the reforms in educational administration.

During 1990-91 invitational seminars were held on a number of topics including a comparison of educational policies in the United Kingdom and New Zealand, self-managing schools, the role of parents in early childhood education, national monitoring in education, the development of competency-based education and training curricula in vocational education, and media studies. Reports on the proceedings of most of these seminars were published.

Reduced government funding has meant the council must seek increased contract research in order to maintain the momentum of its research programmes. Contract research has been undertaken for the Ministry of Education, other government departments and statutory bodies, and professional organisations.

The council's Maori unit, Te Wahanga Kaupapa Maori, in addition to its own programme which has a linguistic emphasis, helps to provide a Maori dimension to other areas of the council's work. Two electronic information networks, established by Te Wahanga Kaupapa Maori in 1991 with assistance from IBM, have attracted increasing interest and membership.

A considerable range of titles was published over the period 1990-91 and further titles are in preparation. Major publications in the period include the Continuing Education Bibliography 1970-1990, which contains over 1400 articles of continuing education documentary material; Learning on the Farm, which examines how farmers have learnt and how they prefer to learn, survey reports on the impact on schools of the reforms of the administration of education and the report on the second phase of a study of teacher education. The council is also involved in the publication of two periodicals: the New Zealand Journal of Educational Studies and Set, a special research package for teachers.

The council employs around 12 permanent research staff plus contract staff and temporary research fellows or project assistants, and assists a few honorary research workers in other institutions such as universities, colleges of education, and schools. 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 Northland (Tai Tokerau), Auckland, Wellington, Christchurch, Dunedin, Hamilton, and Suva (Fiji).

Maori Education Foundation. The foundation was established to promote and encourage improved education for Maori people by providing financial assistance. The foundation had net assets of $6,317,454, at 31 December 1990. The Board of Trustees allocates grants to sponsor annual speech contests; boarding grants to secondary education and scholarships for tertiary education.

In 1990 the foundation distributed $1,053,000 in grants for Maori education.

In 1991 special scholarships in three categories, professions, Maori language and technical, were established. Ten professions scholarships, worth $5,000 each, were granted along with 40 language and 12 technical scholarships each worth $3,000.

Funding

Early childhood education. From February 1992 early childhood services for children over two years of age are funded at a rate of $2.85 per hour per child for up to six hours a day, and $2.25 per hour per child for up to six hours a day or 30 hours per week for all other services. For children under two years of age the rate is $4.50. Access to funding is through an early childhood education service holding an approved charter which has been negotiated with the Ministry of Education.

Kindergartens are funded at 23 or 37 cents per child per hour for operational purposes. Kindergarten teacher salaries are paid directly through the Ministry of Education central payroll service.

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 and, long-term maintenance are paid directly by the Ministry of Education. From 1992 schools have been given the opportunity to take part in the trial of bulk funding of teacher salaries. 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 is 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 schools, classes, units and pupils are funded at the appropriate institutions.

School pupils write to protest possible closure of school, Wellington.

Recent developments in tertiary education fundingEFTS Funding System—as a result of the tertiary reforms, a new system for funding tertiary institutions was introduced at the beginning of 1991. The Equivalent Full Time Student (EFTS) system funds tertiary institutions in bulk according to the number of students and the courses that those students are taking. Polytechnics, colleges of education and universities receive state subsidies for the number of equivalent full-time students in each of the course cost categories at their institution. These funded places are provided by the government in advance of the funding year. The funding is inclusive of capital works.

The EFTS funding system has abolished detailed central decision-making about levels of staffing, operating grants, and capital works projects. These responsibilities now lie with the management of tertiary institutions themselves.

Improved accountability is required from all tertiary institutions under the EFTS funding system. Each institution must meet the requirements of the Public Finance Act 1989 and the 1990 amendment of the Education Act 1989.

Study Right—the Study Right policy, introduced in 1992, ties in closely with the EFTS funding system. Under Study Right the government pays a subsidy towards the estimated tuition costs according to a student's Study Right status. Students who satisfy the criteria of Study Right are eligible for a higher rate.

The Study Right policy is part of the government's strategy to increase the participation rates of 16 to 19 year olds in formal education and training. Consequently, students eligible for Study Right are largely those aged under 22 at first enrolment. Some beneficiaries will attract the Study Right level of tuition subsidy, subject to the three year limit of Study Right.

Student Financing Facility–in recognition of the fact that a number of students face financial barriers to tertiary education, the government introduced a student financing facility for 1992. The facility is a Crown-funded scheme, with an income-related pay back provision through the taxation system.

Capital Charging Scheme—in the 1991-92 Budget, the government decided that a new scheme for the capital charging of state tertiary education institutions is to be introduced from January 1993. This will provide a return on Crown assets held by institutions in such a way that is fiscally neutral.

Private Training Establishments—the EFTS funding system was expanded to provide state funding to subsidise certain programmes in private training establishments in 1992. The same levels of accountability as state tertiary institutions are expected.

All tertiary sectors are now funded according to the EFTS funding system. In addition to EFTS funding, a number of institutions receive grants for activities that are not funded through the EFTS system.

As a result of a transfer from Vote: Internal Affairs to Vote: Education, the New Zealand School of Dance and the New Zealand Drama School are now funded through the Ministry of Education. Both schools receive their funding through special grants. It is envisaged, however, that both schools will eventually be included in the EFTS system.

In 1991, the university sector received a total of $572.408 million through the EFTS funding system. The polytechnics received $369.067 million, and the colleges of education received $53.768 million through the EFTS funding system.

Table 8.1. EXPENDITURE ON EDUCATION

 Net education expenditureProportion of GDPNet government expenditureProportion of net government expenditure

* Between 1989 and 1990 the accounting period changed from 31 March to 30 June.

Source: Ministry of Education.

 $(million)percent$(million)percent
19811,292.05.39,245.614.1
19821,493.25.111,196.513.3
19831,638.85.112,672.512.9
19841,674.34.914,250.011.8
19851,728.64.515,317.611.3
19862,010.34.517,672.611.4
19872,595.24.920,944.012.4
19883,118.25.223,116.013.5
1989*3,569.25.623,740.815.0
1990*4,044.85.825,686.215.7

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 and compiles information on courses available to foreign students.

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. There are also opportunities for study visits by New Zealand teachers to Japan or in-service support for teachers of Japanese in New Zealand by visiting Japanese lecturers. Other exchange activities include overseas in-service training for teachers of French and German, the Language Assistants Scheme to support the teaching 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.

8.2 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.

School classroom, Wellington.

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 sessional programmes for early childhood care and education are the New Zealand Free Kindergarten Union and the New Zealand Playcentre Federation. Sessional programmes are also provided through mobile early childhood units, pre-school classes in primary schools and hospital early childhood groups.

A wide range of childcare centres provide both sessional and full-day programmes. Child-care centres are administered by a variety of groups including community and church groups, voluntary agencies and commercial operators. Support is also provided by The Society for Intellectually Handicapped and the Crippled Children Society. Nanny services in private homes provide other types of childcare services. Family day care networks are provided by Barnardos, Hamilton Day Care Centres Trust and Dunedin Community Childcare Association.

All early childhood centres wishing to receive government funding must be licensed and chartered.

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. Te Kohanga Reo are under the control of Te Kohanga Reo Trust (Inc.) licensed by the Ministry of Education and chartered under the trust.

Funded early childhood groups and Pacific Island Polynesian playgroups exempt from licensing receive funding through the Early Childhood Development Unit. 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 17 official bilingual state primary schools. In 1990 there were 154 primary schools with bilingual classes. 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 hours of instruction in these subjects. At the fifth to seventh form levels, students may choose from a wide range of subjects. In 1990 there were 38 secondary schools running bilingual classes with a total of 1909 students attending.

National curriculum. A discussion document on the New Zealand National Curriculum was distributed to schools in May 1991. The document suggests fundamental principles for essential learning areas, essential skills, assessment methods and provides a framework for developing clear learning goals for school programmes. Following consideration of the response to the document a final statement will be prepared and distributed to schools in 1992.

Secondary school attainments

School Certificate. The School Certificate examination is 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: Al (highest), A2, B1, B2 (middle), C1, C2, and D (lowest). School Certificate regulations allow single subject gradings.

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 including at least three subjects beyond form 6 level studied for a full year. It is also awarded to pupils who have obtained an A or B bursary qualification from the University Bursaries Examination.

University Bursaries Entrance Scholarship. The University Bursaries Entrance Scholarships Examination, usually taken by secondary school pupils in form 7 is conducted by the New Zealand Qualifications Authority. Results in this examination are used in making supplementary awards for study at a university. Outstanding achievement in individual subjects is recognised by the award of subject scholarships. All round excellence leads to the award of New Zealand Qualifications Authority medals.

Table 8.2. 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 revised.

Source: New Zealand Qualifications Authority.

19855730380.337425.21030214.471347
19865883479.931734.31160515.873612
19875945182.228553.91004813.972354
19886084391.831084.723123.566263
19896099392.927984.318812.965452
19906131990.124433.643206.368082

Table 8.3. NUMBER OF SUBJECTS TAKEN BY SIXTH FORM CERTIFICATE STUDENTS

YearNumber of subjects taken
654321
Source: New Zealand Qualifications Authority.
 percentage of total
198619.554.28.93.83.89.8
198719.552.29.34.64.69.9
198819.048.410.75.85.610.5
198918.745.211.66.96.511.1
199017.744.411.67.57.311.5

SIXTH FORM SUBJECTS
Percent of females and males enrolled

Table 8.4. ATTENDANCE AND ATTAINMENTS OF SECONDARY SCHOOL LEAVERS 1990

Years in attendancePupilsAttainmentsPupils

* One or more subjects irrespective of grade awarded.

Source: Ministry of Education.

no.percentno.percent
One5200.9University Bursary10,37018.7
Two2,4904.5Higher School Certificate8,16414.8
Three8,47215.3Sixth Form Certificate*16,43229.6
Four16,92230.7School Certificate*11,33120.4
Five26,88647.4No formal national academic qualification9,14016.5
Six and over7471.4   
          Total57,164100.0          Total55,437100.0

Table 8.5. ATTENDANCE AND ATTAINMENTS OF MAORI SCHOOL LEAVERS 1990*

Highest attainmentYears of attendanceTotalGrand
OneTwoThreeFourFiveSix
MFMFMFMFMFMFMF

* 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 Bursary11159191167176199375
Higher School Certificate13043644318347383730
Sixth Form Certificate†3935635045314514942,11082,050
School Certificate†398445649574114104741,1681,1272,295
No qualification128796154508157052312203350231,82415073,331
                    Total128796154501,2131,1501,2741,3591,1141,240113464,4574,3248,781

Assessment for better learning. Following the release of Tomorrow's Standards, the final report of the ministerial working party looking into the effectiveness of education system and its students learning achievements, an Education Assessment Secretariat was established. The secretariat advises the Minister of Education on assessment policy and development and implements the report's recommendations.

Establishments

Educational institutions.Table 8.6 sets out the number of educational institutions providing education in the pre-school, primary, primary and secondary, secondary and tertiary areas 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 8.6. NUMBERS OF EDUCATIONAL INSTITUTIONS

Type of school19861987198819891990

Note: Private school numbers include those schools that are provisionally registered.

* Includes one YWCA mobile kindergarten and eight Free Kindergarten Association mobiles.

† Auckland primary and secondary teachers colleges amalgamated to form the Auckland College of Education.

‡ Includes 18 F3-7 schools with attached intermediates.

§ Includes two state integrated composite schools.

|| Includes seven health camps and two hospital schools.

Source: Ministry of Education.

Childcare centres......663702
Kindergartens*552563568575575
Playcentres657653644639621
ECDU funded playgroups........192
Non-profit making pre-school groups148159174202 
State full-primary schools1,1271,1181,1111,1041,099
State contributing primary schools1,0161,0131,0111,0061,008
Intermediate schools148148148148148
Private primary schools6976788985
Manual training centres7167656663
Special state schools8279747257||
Private schools2727282829
Correspondence school11111
Area schools (formerly D.H.S.)3635353537§
State F3-7 schools263261262259‡259‡
State F1-7 schools5253535555
Private secondary schools F1-7 and F3-72120181819
Polytechnics (including Tech. Correspondence Institute)2222242425
Colleges of Education6†6666
University institutions77777

SCHOOL QUALIFICATIONS
Highest attainment of secondary school leavers

Table 8.7. STUDENT NUMBERS 1980 and 1990

Type of institutionAt 1 July
19801990

* Note that due to changes in data collection procedures, the 1980 and 1990 figures are not directly comparable.

† Includes primary and composite special schools.

‡ Includes attached intermediates.

§ Courses taken by certified teachers in education of the hearing impaired education of students with disabilities, and bilingual education.

Source: Ministry of Education.

Early childhood care and education*
     Pre-school classes at primary schools1,3361,236
     Correspondence School..861
     Playcentres16,44822,668
     Kindergartens39,07443,792
     Nga Kohanga Reo..10,108
     Pacific Islands Language Nests..2,729
     Childcare..31,397
 56,858112,791
Primary (juniors to form 2)
     Primary schools†373,688332,960
     Intermediate schools‡73,13660,774
     Integrated composite/area schools6,3415,823
     Forms 1 and 2 at F1-7 schools5,8626,801
     Correspondence School1,3351,128
     Other Vote: Education45650
     Private primary schools45,61912,890
 506,437420,426
Secondary (forms 3 to 7)
     Secondary schools190,851213,575
     Area schools2,7533,119
     Correspondence School9201,367
     Secondary and composite special schools235222
     Other Vote: Education33189
     Private Secondary schools31,25611,784
 226,346230,156
Tertiary—formal education programmes
     Polytechnics
          Full-year
          Full-time6,54214,846
          Part-time..25,288
          Part-year
          Full-time..3,752
          Part-time..12,885
 ..56,771
     Colleges of Education
          Teacher training5,9195,691
          Post-graduate specialist course§..75
 5,9195,766
     Universities
          Full-time internal students30,98949,546
          Part-time internal students12,94415,748
          External students7,36613,625
 51,29978,919

Maori pupils. An estimated 34,586 Maori pupils were receiving secondary education at 1 July 1990. This number comprised 17,203 male pupils and 17,383 female pupils. These figures, and further breakdowns (see Table 8.5), are used in the analysis of the differences in school retention rates and levels of education attained between Maori and non-Maori, and the ratio of Maori males to Maori females staying on at school.

Consolidation of Primary and Secondary Schools. In order to provide children in rural districts with an improved opportunity for secondary education with special facilities and more specialised teaching in larger schools, the consolidation of smaller rural schools has been a feature of the last 30 years. Composite schools in rural areas have been developed in recent years to bring together larger concentrations of primary and secondary age students. A key objective has been to provide in rural areas for the particular needs of form 1 and 2 students, as well as secondary students, in line with the opportunities available to students in cities. These rural schools provide education at primary and secondary level and are known as ‘form 1 to 7 schools’ and ‘area schools’.

In 1990 there were 56 form 1 to 7 schools (and eight registered private schools). These schools receive enhanced staffing and facilities in order to provide improved educational opportunity for country children.

Area schools provide education for children in their immediate vicinity from infants to form 7 students, and for students from form 1 who previously attended contributing schools over a wider area. In 1990 there were 35 area schools in rural districts (and three integrated area schools in cities).

Private schools. These schools comply with standards of accommodation, staffing, equipment and curriculum, as a prerequisite for registration. Some financial assistance is provided by the state towards the running costs. 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 are subject to the provisions for registration and inspection contained within the Education Act 1989. Integrated schools operate under the same system of control and management as state primary and secondary schools. Non-integrated private schools are controlled by boards of governors or committees of trustees.

Secondary school hostels. At 1 July 1990 there were 66 hostels for state secondary schools and 16 private schools providing 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 1991 was made up of 983 early childhood; 886 primary; 103 special-needs section (pupils with significant educational handicaps); 1399 secondary full time students at secondary schools; and 12,182 part time adult students.

The full time secondary students were enrolled for a variety of reasons such as isolation, medical reasons, New Zealand children living overseas, pregnancy, living in institutions, school suspensions, school phobia and other psychological problems, and adult full time, itinerancy and students who are also enrolled at other secondary schools. For full time correspondence school 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 part in group activities.

The total full-time teacher equivalent positions of the Correspondence School for 1991 were 396.6-275 secondary teacher positions, 105.6 primary teacher positions and 16 early childhood teacher positions.

Correspondence School teacher and students, Great Barrier Island.

Table 8.8. TEACHING POSITIONS

Type of institution198819891990

* Does not include Maori language assistants (75 in 1990) or Special Education Assistants or Special Care teacher assistants (68 in 1990) as they are not teacher trained.

† Includes advisers, psychologists, speech and reading teachers, and teachers not employed under staffing schedules, such as visiting teachers, itinerant teachers, museum and zoo teachers. REAP teachers, pool relief teachers, physiotherapists, occupational therapists, refugee centre teachers and community centre teachers. In 1990, 367 of people in these positions were employed under the Special Education Service and 206 were employed through Colleges of Education.

‡ Includes all staff at F3-7 and Fl-7 schools and secondary staff at the Correspondence School.

§ Includes staff at Social Welfare, Glenburn School and Homai College.

Source: Ministry of Education.

Early childhood–
     Playcentres242240233
     Kindergartens1,3351,4351,442
Primary—
     State schools*18,21418,18018,575
     Private schools356425439
     Supporting services†1,1091,1131,070
     Area schools543540662
     Composite private schools663639684
     Manual training690690692
Secondary–
     State schools‡14,50614,91815,058
     Private schools451436477
Other Vote: Education–
     Special schools§16916463
Tertiary—
     Polytechnics4,0914,120 
     Colleges of Education513563543
     Universities3,8093,8003,761

Teacher-pupil ratios. The ratios shown in Table 8.9 have been calculated using the grading roll of a school divided by the staffing entitlement (measured in full-time teacher equivalents).

Table 8.9. TEACHER-PUPIL RATIOS IN STATE SCHOOLS

YearPrimary*Secondary†

* Includes pupils and staff in full-primary, contributing, intermediate, attached intermediate, special schools, and primary departments of area schools and the Correspondence School.

† Includes pupils and staff in form 1-7 and form 3-7 schools, secondary departments of area schools and the Correspondence School.

Source: Ministry of Education.

198620.016.75
198720.016.72
198819.816.35
198919.616.50
199019.315.74

School boarding and course bursaries. The value of school boarding and course bursaries is $1,485 a year.

School transport. During the year ended 30 June 1991, 105,000 pupils received school transport assistance daily.

Approximately 2400 school bus services carried 95,000 students to and from school each day. In addition, some 5000 special needs pupils received assistance in the form of taxi or bus services. Transport allowances were paid to the remaining 5000 students.

Special education

Whenever possible, children with physical or other disabilities are enrolled with other children at regular early childhood services and in regular 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.

There are residential special schools which meet the needs of a small number of children with impairments, educational and social difficulties. In addition to this, there are state day schools for students with intellectual disabilities and physical disabilities. There are also hospital classes which meet the needs of children who are long term patients. In addition there are a large number of attached units to regular schools which meet a range of special education needs. Boards of trustees govern classes, units and resource centres in regular or special schools and in hospitals. Increasingly, special education services are being taken to the children in regular classes and programmes, rather than withdrawing them to separate settings.

Members of the Special Education Service and other specialist advisers help teachers develop suitable teaching programmes. A comprehensive range of special education services has been developed for children whose needs cannot as yet be met in ordinary settings. The Special Education Service employs teachers to work with children in early childhood centres.

Teacher training

There are five colleges of education offering courses in teacher training. They are situated in Auckland, Palmerston North, Wellington, Christchurch and Dunedin. The School of Education at the University of Waikato also offers teacher training.

Teacher training in early childhood education and Maori language is also offered by other tertiary providers.

Early childhood workers and teachers. Three-year training programmes for early childhood workers and teachers 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 degree study. Conjoint programmes are offered at all institutions.

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 the School of Education at the University of Waikato.

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 8.1. COLLEGE OF EDUCATION STUDENTS AT 31 JULY 1990

College of EducationEarly childhoodPrimarySecondarySpecialist postgraduate*Total all studentsStudents also attending university included in total
KindergartenChildcare and kindergarten
MFMFMFMFMFMFTotalMF

* Includes teachers undertaking Hearing impaired, Physically handicapped, Visually impaired, Bi-lingual, Advisor of the deaf, Home economics and Workshop craft programmes.

Source: Ministry of Education.

Auckland-3011101628347914612202541,1401,394811
Hamilton--395125570436137174733907146633
Palmerston
     North--61431544412031612186627813--
Wellington1362731504721330--166611777--
Christchurch--101311075141231861142418451,0861674
Dunedin-41171224623252---158631789102449
Total166266698203,29331050622531,1794,5875,7662721,167
Maoris
     included-74761404573553310182603785--
Pacific
     Islanders
     included-211561157717--69191260--

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.

Resources for teaching

Rural education activities programmes (REAPs). The Rural Education Activities Programme is a community managed and co-ordinated package of education resources based in the rural communities of the Far North, Eastern Bay of Plenty, East Coast, Central Plateau, Central King Country, Ruapehu, Southern Hawkes Bay, Wairarapa, Marlborough, Buller, Westland, Central Otago and Southland. Each REAP has received a professional staffing allocation, including components from a range of education services: early childhood, visiting teacher, liaison time for teachers in schools, advisory time, rural staffing, outdoor education organiser and community education organiser.

The purpose of the REAP is to provide support and assistance of a supplementary and complementary educational nature for all sectors of the defined rural community, across early childhood, primary, secondary and continuing education, which will enhance, promote and provide lifelong learning opportunities, community development and personal development in a manner that is equitable, appropriate, effective and efficient.

From 1 January 1991 the REAPs will be bulk funded on the basis of base funding and a per capita amount. Each REAP will be an incorporated society. Management committees will be locally elected and appointed and will both govern and manage the REAP.

Reading Recovery. The Reading Recovery Programme is an early intervention programme which provides intensive individual help to any child who is falling behind in reading and writing after one year at school. During 1989, 11,945 children took part in the programme. Fifty five percent of schools provide reading recovery, representing 83 percent of six year olds.

Resource teachers of reading. These 67 specialist teachers attached to schools throughout New Zealand provide long-term assistance for children with serious reading difficulties.

Information studies and teacher librarianship. A three year part-time information studies and teacher librarianship programme is being offered through the six colleges of education. Trained teacher librarians work with other teachers in all subject areas to develop students who are confident, independent learners, capable of using a wide range of information skills and resources. They are also responsible for the management of the school's library resource centre.

Other advisory services. A total of 234 primary and secondary advisers were employed by colleges of education at 1 July 1990. 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.

Both the Early Childhood Development Unit and the Special Education service provide specialist assistance and advice.

Learning media. The Learning Media Group of the Ministry of Education 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 national 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, the video magazine Education Update and the School Journal, which is 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 and a range of reading materials at different levels is available. A course for teachers to learn Maori, using audio cassettes and booklets is widely available, as well as handbooks to assist teachers in planning class programmes in Maori and a variety of supporting resources. Pacific Island language materials are also produced. There have been some co-operative projects involving writers and artists in the Islands, with a number of titles produced.

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 several countries including the United States, Canada, Singapore and Australia.

Materials are issued free to schools, or at a small charge. People may purchase personal copies of most items at a normal retail price.

Schools receive funding within their operating grants for purchase of additional materials of their own choosing from publishers and bookshops. These include textbooks and library items. The work of Learning Media is complementary to that of commercial providers.

National Film Library. The National Film Library is a collection of educational video and film specially selected to support New Zealand educational programmes and is the responsibility of the National Library of New Zealand.

Access is free to schools, and material can be borrowed through the library interloan system by other educational institutions. The material is distributed from branches in Auckland, Wellington and Christchurch. The library has approximately 11,000 copies of 1200 video titles, and 18,100 prints of 4070 film titles. It also has a special collection of historical New Zealand films.

The Claude Laurie Music Collection, previously held by the New Zealand Film Library, has been transferred to the National Library.

8.3 Tertiary and continuing education

Universities

There are seven universities in New Zealand. They are the University of Auckland, the University of Waikato, Massey University, Victoria University of Wellington, the University of Canterbury, Lincoln University and the University of Otago.

All universities offer courses in the usual faculties of arts, science, and commerce, while 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, physical education, pharmacy and surveying; 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.

Sixth form students take part in “Women In Science” seminar, Victoria University, Wellington.

Massey University has courses in agriculture, horticulture, food technology, and veterinary science, as well as extra-mural tuition in a wide range of subjects throughout New Zealand. Conjoint programmes leading to the Bachelor of Education degree and Diploma of Teaching are available at several universities in association with local colleges of education. The Hamilton Teachers College recently amalgamated with the University of Waikato to form the School of Education. A number of other colleges are considering similar amalgamations.

Each university sets it own programmes, and each university council sets the dates for terms or semesters. All matters relating to management are the responsibility of the council of the institution, which represents the interests of staff, students and community. The council is also responsible for approving course regulations and for maintaining the equivalences of courses for degrees and other qualifications.

Table 8.11. SUMMARY OF UNIVERSITY ENROLMENTS BY PROGRAMME AT 1 JULY 1990

CourseTotal enrolled
Source: Ministry of Education.
Postgraduate degrees, diplomas, certificates and other programmes–
Doctorate—Medicine1
Doctorate—Music2
Doctorate—Philosophy1,505
Doctorate—Science2
Masters4,130
Bachelors honours degrees1,656
Bachelors degrees28
Postgraduate diplomas3,718
Other postgraduate programmes622
     Subtotal11,664
Undergraduate degrees, diplomas, intermediates, certificates and other programmes—
Bachelors degrees60,972
Intermediate programmes2,756
Undergraduate diplomas3,325
Undergraduate certificates1,442
     Subtotal68,495
Certificate of Proficiency papers4,787
Level not stated343
     Subtotal5,130
     Total enrolments85,289
Adjustment for students enrolled in more than one programme6,370
     Total all students78,919

Table 8.12. DEGREES AWARDED, 1990

DegreeUnder-Graduate and Post-Graduate BachelorsBachelor HonoursMasters‡‡Doctorate

* Includes degrees in Agricultural Commerce, Agricultural Economics and Agricultural Science, Commerce (Horticulture).

† Includes Degree in Building Science, Surveying.

‡ Includes Bachelors Degrees in Property Administration, Valuation and Property Management, Business Studies Commerce (VPM) Administration, Commerce and Administration, Commerce and Management and Management Studies.

§ Includes Community Dentistry.

|| Includes Masters Degree in Jurisprudence.

ļ Includes degrees in Human Biology, Nursing and Language and Speech Therapy.

** Includes town planning.

†† Includes degrees in Mineral Technology.

‡‡ Includes students graduating with a Masters Degree with Honours.

Source: Ministry of Education.

Agriculture, horticulture and forestry*2762234-
Architecture and town planning†150-2-
Arts and Literature2,365293263-
Consumer and Applied Science26-7-
Commerce, Business Administration and Management‡2,19432246-
Dental Surgery§44-4-
Education423-71-
Engineering486-48-
Fine Arts50-1-
Law||392749-
Medicine, Medical Science and Surgeryļ372-45
Music69164-
Optometry14---
Pharmacy3624-
Philosophy--20216
Physical Education80-2-
Regional and Resource Planning**30315-
Science, Technology and Applied Science††1,3152812227
Social Science195640-
Social Work3014--
Theology/Divinity39-2-
Veterinary Science59-2-
Total8,6457431,000228

UNIVERSITY DEGREES
By subject areas

Table 8.13. ASSISTED OVERSEAS STUDENTS AT NEW ZEALAND UNIVERSITIES, 1990

Form of assistanceTotal students
MFTotal

* MERT—Ministry of External Relations and Trade

† Grand parented—Overseas students enrolled prior to 1989 are treated the same as NZ students until their term of study is completed.

Source: Ministry of Education.

MERT* Full scholarship246152398
MERT* Fees scholarship164100264
Private202131333
Exchange scheme5753110
Transition—Grand parented†8946341,528
Not stated8855601,445
     Total2,4481,6304,078
Adjustment for students recorded in more than one place7664701,236
     Total receiving assistance1,6821,1602,842

Table 8.14. UNIVERSITY STAFF, 1990*

PositionFull timePart time
MalesFemalesTotalMalesFemalesTotal

* As at 30 July.

Source: Ministry of Education.

Academic staff—
Professors3421735948-48
Associate professors3982942742446
Senior lecturers1,1991621,361525107632
Lecturers5893269156162123
Assistant lecturers76721487145141,228
Demonstrators/seasonal assistants/teaching fellows2017377975301,327
     Total of academic staff2,6246233,2472,1871,2173,404
Non-academic staff—
Senior administrative/clerical/typing2591,0651,32467447514
Technical8563281,18440144184
Computer1846024491423
Central administration28437163137
Library8831240016136152
Student welfare31386936113149
Printing and binding474895-77
Caretaking and cleaning maintenance of buildings and grounds5096657553275328
     Total of non-academic staff2,0021,9603,9622271,1671,394
     Total4,6262,5837,2092,4142,3844,798

Table 8.15. UNIVERSITY STUDENTS

YearInternal studentsExternal studentsTotal
MalesFemalesMalesFemales

* Provisional figures at April 1991.

Source: Ministry of Education.

198727,04824,9915,6348,76266,435
198829,18827,7425,9299,45472,313
198932,04430,8316,3889,96079,223
199032,86132,4335,5458,08078,919
1991*35,24535,2516,4579,54786,500

Part time and full time students. At April 1991 there were 54,086 full time university students and 16,410 part time students as compared with the July 1990 figure of 49,546 full time students and 15,748 part time students. Of this number 16,004 students studied extramurally in 1991.

Table 8.16. UNIVERSITY ENROLMENTS*

YearInternal studentsExternal studentsTotal
Full timePart time
FemalesMalesFemalesMalesFemalesMales

* As at I July.

Source: Ministry of Education.

198615,03420,1438,3935,7957,8624,75261,979
198716,11220,9628,8796,0868,7625,63466,435
198817,86222,6429,8806,5469,4545,92972,313
198920,64225,46910,1896,5759,9606,38879,223
199022,74426,8029,6896,0598,0805,54578,919

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 $39,052 up to $255.08 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 8.17. STUDENT ALLOWANCE CLIENTS AT 31 JULY 1990

Allowance typeSecondary schoolsPolytechnicsColleges of educationUniversitiesPrivate institutionsGrand total
Source: Ministry of Education.
 number
16-17 year old 1,122316551,223
18-19 year old away262,3501,0028,3492711,754
18-19 year old at home7653,5156518,298513,234
18-19 targeted3342,1725894,979128,086
20+ year old away1004,1231,95917,4442923,655
20+ year old at home1101,1933624,79326,460
Independent circumstances261241491 255
Students with dependents16453237514 1,220
Earning spouse—home2276045974011,982
Earning spouse—away 523441 127
Couple allowance 10458267 429
Accommodation benefit1507,6783,32226,9977138,218
Accommodation supplement 451262377721
Transport allowance 1,7463304,24066,322
Transport supplement 1,3226219911,584
Total allowances1,54927,1659,13677,254166115,270
Adjustment for more than one allowance48412,2164,27236,4548353,509
Total students1,06514,9494,86440,8008361,761

Auckland University students researching in library.

Polytechnic education

Over recent decades vocational education and training has moved away from the secondary to continuing education sector, with training formerly provided by technical high schools now provided for 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 25 polytechnics in New Zealand. They are Northland Polytechnic, Carrington Polytechnic, Auckland Institute of Technology, Manukau Polytechnic, Waikato Polytechnic, Bay of Plenty Polytechnic, Waiariki Polytechnic, Tairawhiti Polytechnic, Hawke's Bay Polytechnic, Wairarapa Community Polytechnic, Taranaki Polytechnic, Wanganui Regional Polytechnic, Manawatu Polytechnic, Whitireia Polytechnic, Central Institute of Technology, Open Polytechnic of New Zealand, Hutt Valley Polytechnic, Wellington Polytechnic, Nelson Polytechnic, Tai Poutini Polytechnic, Christchurch Polytechnic, Aoraki Polytechnic, Otago Polytechnic, Telford Polytechnic and Southland Polytechnic.

Polytechnics are controlled by their own councils. Members of polytechnic councils 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 roll of the Open Polytechnic 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. The New Zealand Qualifications Authority has responsibility for Trades Certification and Advanced Vocational Awards, including the curriculum and examination of all three-stage technician certificates, five-stage New Zealand Certificate Courses and the examination of candidates sitting trade certificate or advanced trade certificate qualifications.

Technician courses—Both the five-year New Zealand Certificate and the three-year Technicians' certificate are offered in a variety of vocational areas. 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—Training for trade qualifications accounts for a significant percentage of the work of polytechnics. The New Zealand Qualifications Authority has approved a wide range of trade courses and prescriptions under which assessment, examination and certification are conducted. Education and training requirements for the various trades are listed in the respective prescriptions. They specify a mix of theory and practical training, to be obtained through education providers and through on-job experience. The completion of prescribed requirements leads to issue of Trade Certificate and Advanced Trade Certificate qualifications.

Table 8.18. TECHNICIAN, TRADE AND TYPING/SHORTHAND CERTIFICATES ISSUED

Year ended MarchTechnicians certificates three-stageN.Z. certificates five-stage course finalTrade certificatesAdvanced trade certificatesIndustrial practiceTypingShorthand
Source: Ministry of Education.
19852737664,0229961,141....
19862315022,2457241,455....
19871794943,3211,0571,3182,230103
19883724552,8909801,6772,18960
19893489053,1859434,5365,202
1990755612,7831,0425,7314,528217

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 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, the 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. A large number of full time polytechnic students take a three-year full time nursing course.

Transition education

Schools, polytechnics and community providers play important roles in providing transition education and training.

Schools' funding is currently supplemented by tagged funding additional to entitlement to encourage schools to both maintain alternative programmes leading back to the mainstream, and to encourage the integration of transition skills development across the curriculum. Polytechnics provide substantial and numerous transition programmes—in some cases more than one third of the total courses offered are of this type; and in the 10 Youth Learning Centres in smaller population centres the proportion is nearer 100 percent. Many of these programmes are offered on contract to the Education and Training Support Agency (ACCESS courses). Others such as Foundation and Bridging courses are self-funded. Numbers of community and private providers are involved in the provision of ACCESS courses.

Schools, polytechnics and community providers are all involved in the Link Programme, which allows secondary students to undergo specialised vocational education and training or to experience the tertiary education sector, while continuing their secondary study. Quest Rapuara has responsibility for the co-ordination and administration of Link, as part of its role in the promotion and facilitation of career development and transition education programmes.

Table 8.19. ENROLMENTS AT POLYTECHNICS 1990

Level of programmeFull timePart timeTotal
MFMFMFTotal

* Students enrolled at level 4 studied in ‘General Commercial’ Programmes.

† Totals include some students enrolled in more than one programme.

Source: Ministry of Education.

Level 3—General and vocational2,3343,35613,3175,86715,6519,22324,874
Level 4—Inservice*---17-1717
Level 5—N.Z. Certificate/Diploma National/Advanced National Certificate2,7855,90910,9746,26313,75912,17225,931
Level 6—National Diploma/Polytechnic Degree4315395913761,0229151,937
Level 8—Access/Foundation/Pre-employment2,3731,2611,4875683,8601,8295,689
Total†7,92311,06526,36913,09134,29224,15658,448

Continuing education

National Council Of Adult Education. Since 1987 this council has been in recess. The council's main function was to provide the Minister of Education with advice on the development of adult education in New Zealand. 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.

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 function is 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. 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 classes and community education activities at secondary schools. There has been an increase in adult classes leading to 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. In 1989 there were 1018 full time and 2683 part time adult students. This is in addition to the community education programmes in schools which cater for 162,248 enrolments annually.

Polytechnics also provide a range of community education courses and programmes for adults both on-campus and through out-posts established to give students in smaller centres the opportunity of participating in some form of tertiary education. Enrolments in non-formal and community education courses in polytechnics reached 6991 in 1989.

Correspondence education. The main agencies in the field of distance education are the Correspondence School (with over 12,000 adult students enrolled in 1988), the extramural studies of Massey University (over 13 000), and the Open Polytechnics of New Zealand (over 36,000).

Community centres. Community centres are school-based community learning centres. To date community centres have been established in association with a primary school, an intermediate school and 11 secondary schools, with eight secondary schools having Ministerial approval to appoint community education co-ordinators as permanent staff.

Generally, community learning centres receive additional professional and ancillary staffing entitlements and an annual grant in addition to the tutor hour and co-ordination resources allocated to the secondary schools which organise community education activities for adults. Other schools offer successful programmes within their own resources. All have developed community education programmes with the aim of increasing community involvement in community development 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.

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 1986, 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.

The Trade Union Education Authority Distance Education Unit operates as a distance education unit and provides non-formal, low-cost correspondence programmes for union members and their families.

There is a national office in Wellington and seven regional offices.

The Trade Union Education Authority is funded through Vote: Labour.

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

  • 8.1 Ministry of Education; New Zealand Council for Educational Research.

  • 8.2-8.3 Ministry of Education.

Further information

Annual Report of the New Zealand Council for Educational Research.

Education Statistics of New Zealand. Ministry of Education (annual).

Educational Research Series. New Zealand Council for Educational Research.

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).

School Certificate Examination Statistics. Ministry of Education (annual).

Secondary Staffing Survey. Research and Statistics Division, Ministry of Education (annual).

Chapter 9. Justice and law

Police graduates, Royal New Zealand Police College, Porirua.

9.1 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. Judges (including those who sit in the Court of Appeal) are appointed by the Governor-General. Neither Court of Appeal nor High Court Judges may 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. District Court judges may be removed from office by the Governor-General, but only on the grounds of inability or misbehaviour.

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 reappointed as acting judges for two years, or one year if the judge is 72 years of age when reappointed.

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.

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, instead it submits its opinion on a case it has heard to the Sovereign, who is then 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 and is constituted by the Judicature Amendment Act 1957.

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 the lower 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 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 five 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 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.

The decisions of the Court of Appeal are final except where an appeal is sent to the Judicial Committee of the Privy Council.

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 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 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, by the Governor-General when it is deemed necessary due to the illness, absence or anticipated absence of any judge.

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.

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 six 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. There are at present four masters: Master Anne Gambrill, Master J. W. Hansen, Master R. P. Towle and Master J. H. Williams Q.C.

Table 9.1. JUDGES OF THE COURT OF APPEAL AND HIGH COURT*

* As at 1 October 1991.

† 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 Ivor Richardson; Rt. Hon. M. E. Casey; Rt Hon. G. E. Bisson; Hon. T. M. Gault; Hon. I. L. McKay.
High Court†:Rt. Hon. Sir Thomas Eichelbaum, G.B.E.; HON. R. I. BARKER; HON. J. F. JEFFRIES; 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. 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. J. B. ROBERTSON; HON. R. L. FISHER; HON. D. P. NEAZOR; HON E. W. THOMAS; HON. P. G. S. PENNLINGTON; HON. P. B. TEMM.

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 present limits the number of District Court judges to 98. Judges are appointed by the Governor-General, who also appoints a Chief District Court Judge. The Chief Judge 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 judge 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.

Employment Court. This court is constituted under the Employment Contracts Act 1991. It consists of the Chief Judge of the Employment Court and five other judges appointed from time to time by the Governor-General. Qualifications for appointment, tenure and retirement age are the same as those applying to High Court judges. The Employment Court is located only in Auckland, Wellington and Christchurch.

Broadly speaking, the Labour Court has jurisdiction to deal with matters in the labour relations field. These include hearing and determining appeals or reviews of adjudicated decisions of the Employment Tribunal (see below) in respect of personal grievances, disputes about employment contracts etc.; hearing and determining any questions of law referred to it by the tribunal; hearing and determining penalties in relation to freedom of association and strikes and lockouts; and issuing compliance orders on specified matters.

New Wellington District Court building, incorporating facade of former 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. 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.

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. 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. See section 14.1, Maori land for more information.

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 and company registration. 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.

Employment Tribunal. The Employment Tribunal is constituted under the Employment Contracts Act 1991. It consists of the Chief of the Tribunal and 13 other mediator and/or adjudicator members, appointed from time to time by the Governor-General. The tribunal is located in Auckland, Wellington, Christchurch and Dunedin.

The tribunal's jurisdiction includes:

  • Providing mediation assistance in all matters properly brought before it (here the parties are assisted to resolve their differences for themselves). Emphasis is placed on mediation as a first step towards resolution of differences between employers and employees.

  • Adjudicating on unresolved personal grievances, disputes about employment contracts, recovery of unpaid or underpaid wages, and recovery of penalties for breach of an employment contract or certain parts of the Employment Contracts Act (adjudication involves both parties stating their case to an adjudicator and the adjudicator making a decision for them).

  • Issuing compliance orders on specified matters.

Appeals or reviews of tribunal decisions involving adjudication can be taken in the Employment Court.

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 5.4, Maori population.

Planning Tribunal. This tribunal was constituted by the Town and Country Planning Act 1977 and is continued under the Resource Management Act 1991. The tribunal consists of not more than five Planning Judges and not more than 10 Planning Commissioners appointed by the Governor-General on the recommendation of the Minister of Justice, after consultation with the Minister for the Environment and the Minister of Maori Affairs. Any number of alternate Planning Judges and Deputy Planning Commissioners may hold office.

The Planning Tribunal has jurisdiction to determine appeals, applications, submissions and references under the Resource Management Act 1991, proceedings commenced under the former Town and Country Planning Act 1977, and other relevant legislation. These are predominantly concerned with land and water use.

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.

SIZE OF THE JUDICIAL SYSTEM

New Zealand statutes. Parliament 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 extraterritorial law-making 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.

United Kingdom statutes. A number of United Kingdom statutes are still in force in New Zealand. They are those statutes passed before 1840 (when New Zealand first became a British colony) which were applicable to the circumstances of the colony at that date, and others 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 Magna Carta of 1297, the Habeus Corpus Act 1679, and the Act of Settlement 1700.

Subordinate legislation. Many 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 invalid 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 1990 heard 189 civil appeals (of which 69 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 9.2. CIVIL COURT ACTIONS

 High CourtDistrict Courts
198819891990198819891990
Plaints entered and actions commenced66256120..14843912140885424
Amount sued for $(000)861,613..190,604172,604172,408212,180
Number of judgments entered......660786041342769
Amount of judgments $(000)......74,92773,45176,506

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. Also precluded are people with recent prison records and those who have been imprisoned beyond three years.

TRIAL COURTS
Major dispositions of sentences

Legal aid

Legal Services Act 1991. This Act brings together in one statute the civil and criminal legal aid schemes and aligns them as far as possible. It also gives statutory recognition to the duty solicitor scheme and to community law centres. The Act establishes a new administrative structure—the Legal Services Board and District Committees. The board is responsible for the legal aid budget. Its role is, however, wider. It can for instance investigate other ways of providing legal services to the public and set up pilot schemes.

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.

9.2 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.

The Crimes Bill was introduced in 1989 and referred to Parliament's Justice and Law Reform Select Committee. The bill represents the first major review of New Zealand's criminal law since the enactment of the Crimes Act 1961. It proposes significant changes to the law relating to murder and manslaughter. The bill also sets out the basic principles of criminal responsibility, updates the rules relating to parties, conspiracies and attempts, and rewrites and streamlines the law governing property offences. New offences are proposed, to deal with the theft of trade secrets and interference with computers. The Crimes Consultative Committee, which was set up in 1989 by the then Minister of Justice to examine the bill, presented its report to the Hon. Douglas Graham in April 1991. The report recommends that an amended version of the bill should proceed.

Reported offences

For the year ended 30 June 1990, a total of 474727 offences were reported to police, an increase of 2.8 percent from the previous year. The clearance rate was 41.9 percent in 1990 compared with 44.6 percent in 1989. The number of violent offences decreased from 28,191 for the year ended 30 June 1989 to 25772 at the same time in 1990.

During the year 57 murders were investigated. The number of robberies reported was 1265, a decrease of 12 percent over the previous year. Aggravated robbery increased by 17.4 percent from 685 offences for the year ended 30 June 1989 to 853 in 1990. Non-aggravated robbery increased by 16.7 percent from 580 offences to 677 offences.

There were 755 reported sexual violations (a 4.4 percent increase in the number of offences reported in 1989). The clearance rate rose from 65.8 percent to 69.1 percent. The number of sexual offences increased by 1.6 percent, while that of sexual attacks increased by 12 (0.6 percent).

During 1989-90 non-cannabis drug offences decreased by 8.9 percent to 1309 when compared with the previous year. Cannabis offences decreased by 4.8 percent to 17205 and of these, 11045 cases were prosecuted.

In total, reported drug and anti-social offences decreased by 12.7 percent from 59368 to 47435 and the clearance rate was 90.9 percent.

Dishonesty offences reported increased and accounted for the major proportion of all reported offences, 63.7 percent compared with 61.6 percent in 1989. Within this group, burglary offences increased by 11.5 percent from 79445 to 88605, theft increased by 6.9 percent from 115507 to 123546, car conversions increased by 4.9 percent from 60771 to 63781 and fraud decreased by 9.3 percent from 26253 to 23811.

Of the 28 police districts, only eight reported a decrease in the number of reported offences during the year ended 30 June 1990.

Children and young persons (i.e., those under 17 years of age) were responsible for 19.5 percent of cleared offences and 48.5 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, 33.8 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 charges are included in ‘the total’, which therefore exceeds 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.

MAJOR OFFENCES TRIED
Persons convicted and sentenced

Table 9.3. CONVICTIONS FOR OFFENCES TRIED SUMMARILY IN DISTRICT COURTS

Type of offence1987198819891990

* 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 violence7025774675396838
Sex offences529456475497
Other offences against the person4386416140473691
Unlawful taking of property (includes conversion of vehicles)29524289582770226272
Fraud and false pretences15121132601330611835
Wilful damage and trespass4463487848164455
Forgery, uttering, and currency offences1001945904684
Drug offences11570121181075510453
Offences against the administration of justice5766725787549290
Drunkenness and drunken driving offences25263246422745726933
Other imprisonable traffic offences11306123891387415548
Other offences against good order7596720161755187
Offences against decency402358342335
Offences against the Sale of Liquor Act5659505040871398
Other offences14116174681595114074
          Subtotal143727146887146184226747
Minor traffic offences*149467212706179871141167
          Total293194359593326055278657
Distinct cases†213499266827243521203495

Table 9.4. RESULTS OF DISTRICT COURT HEARINGS

Result of hearing198819891990

* Formerly probation.

† Mainly for traffic offences which do not involve imprisonment.

Imprisonment553358016393
Corrective training521677623
Community care721801794
Periodic detention152711858419730
Adult supervision*342233722883
Convicted and ordered to come up for sentence if required353935682898
Fined†228229199242159615
Convicted and discharged (or pay costs)698670774856
Community service256543325644
Orders made406759
Dismissed, withdrawn, or struck out315133328232830
Discharged under section 19 of Criminal Justice Act326529391903
                    Total, distinct cases301605279742238228

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 9.5. TRAFFIC CONVICTIONS IN DISTRICT COURTS

Offence198819891990
* 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 death109122138
Reckless, dangerous, or careless use or driving of motor vehicle causing injury99211261129
Driving, or in charge of, motor vehicle under the influence of drink or drugs causing death537578
Driving, or in charge of, motor vehicle under the influence of drink or drugs causing injury130142157
Failing to stop motor vehicle after accident involving bodily injury195155147
Driving, or in charge of, motor or other vehicle under the influence of drink or drugs246422745726933
Exceeding speed limits518714308128047
Reckless, dangerous, careless, or inconsiderate use or driving of motor vehicle397173658525555
Offences relating to the registration or licensing of motor vehicles*363092781823314
Offences relating to driver's licence344463667436486
Breaches of parking regulations1080449132689272
Other traffic offences627524958743313
                    Total359260314148274569

Criminal trials

District Court trial courts, currently located in 19 centres, hear cases for all criminal trials except the most serious of indictable offences, which are dealt with in the High Court.

Criminal cases in the High Court are of two classes: those actually committed for trial or sent up for sentence.

SERIOUS CRIME
High Court convictions

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 9.6. CRIMINAL TRIALS

YearTried in High CourtSentences in cases of committal for sentenceTotal sentences
Indictments and informationsConvictions
MFMFMFMFTotal
* Includes three sent up for sentence but withdrawn or discharged without penalty.
Total counts and charges
19861269*76776597225814981171615
19871651*10510576710694721261142240
19881711134110375145510525581802738
1989217313313458320766834211513572
19901965156132280128214426042242828
Distinct persons
198658942424363043972875803
198771962544443483289276968
1988742845496043638985981083
19898758463153406371037901127
19909298768856481291169851254
YearTried in District Court trial courts
Total countsConvictions
MFMFTotal
Total counts and charges
1986180921011761381314
1987197135213182431561
1988232529514911921683
1989231554714153271742
1990269229817841951979
Distinct persons
19867327950655561
198781410459475669
198894712164278720
198992613065588743
1990103711970188789

Of the 2172 distinct persons indicted in all trial courts during 1990, 1533 were convicted and sentenced, 14 were still awaiting trial at the end of the year, 391 were acquitted, 12 were found insane, and the prosecution was not proceeded with in the remaining 222 cases.

Table 9.7. CRIMINAL TRIALS—SUMMARY OF OFFENCES

Offence19S7198819891990
* Includes those charged with murder but convicted of manslaughter.
High Courttotal counts and charges, convictions
Offences against the person—
     Murder39302133
     Attempted murder176512
     Manslaughter*30262542
     Sexual violation and attempted sexual violation246266337332
     Other8491102987955
Property and forgery offences Drug offences5177201545650
 377436474621
Other offences165152177183
                    Total. High Court2240273835722828
 distinct persons convicted
Offences against the person—
     Murder35292130
     Attempted murder106410
     Manslaughter*28262539
     Sexual violation and attempted sexual violation173146205209
     Other426506483468
Property and forgery offences83107117120
Drug offences159206199307
Other offences54577371
                    Total, High Court968108311271254
District Court trial courtstotal counts, convictions
Offences against the person288324364365
Property and forgery offences9809689941317
Drug offences181299225169
Other offences11292159128
                    Total, District Court trial courts1561168317421979
 distinct persons convicted
Offences against the person179201250233
Property and forgery offences308312281351
Drug offences120161146127
Other offences62466678
                    Total, District Court trial courts669720743789

Table 9.8. SENTENCES IMPOSED IN TRIAL COURTS, DISTINCT PERSONS

Sentence19861987198819891990
* Also includes those committed into the care of the Department of Social Welfare.
Adult supervision or community service*118119123138153
Ordered to come up for sentence if required2021262025
Discharged97182013
Fined1181301159679
Imprisoned7741007111511411248
Corrective training169223329
Periodic detention272300360369386
Community care2034152415
Other1710956
                    Total13641637180318461954

Table 9.9. APPEALS IN HIGH COURT AGAINST CONVICTIONS OR ORDERS AND/OR SENTENCES IMPOSED IN DISTRICT COURTS

YearHeardAllowedAbandoned or withdrawnDismissed
19861739592289858
19871653486329838
19881598534272792
19891954670329955
19901866669286911

MINOR OFFENDING
Rates of conviction in Magistrate/District Courts

Table 9.1. 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.
198633360282340
198736866232312
198840872276375
198941181331436
199045168327411

Comparison of female and male offending

The District Courts dealt with 344131 charges (excluding parking breaches) in 1990. Of these charges 57722 or 16.8 percent were against females. This total includes 14274 charges for property offences, mainly theft, fraud and forgery, compared with 42835 for males.

Table 9.11. CHARGES AGAINST MALES AND FEMALES IN DISTRICT COURTS, 1990

OffenceMalesFemales
NumberPercentNumberPercent
Offences against the person154785.617823.1
Shoplifting34321.246028.0
Fraud and forgery8,9033.254869.5
Other property offences3050011.041867.3
Drug offences107053.920353.5
Offences against good order79292.97211.2
Traffic offences17280862.53274956.7
Other offences266549.6616110.7
                    Total276409100.057722100.0

Wellington constables carry cardboard colleagues.

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 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 7.5, Accidents.

9.3 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.

Supervision. 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 directing the sentence.

During the year ended 30 June 1991, 5724 supervision orders were imposed and the number of people sentenced to supervision, as at 30 June 1991, was 4804.

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.

During 1990,10,014 community service orders were imposed and the number of people subject to that sentence as at 30 June 1991 was 6215.

Periodic detention. The maximum length of the sentence is 12 months and during that period offenders (aged 15 years and over) 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 of community service.

During the year ended 30 June 1991, 26172 periodic detention orders were imposed and the number of people subject to that sentence as at 30 June 1991 was 8598.

Community care. This sentence, 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 cannot exceed 12 months, but may comprise a residential component for a maximum of six months.

During the year ended 30 June 1991, 1036 orders for community care were imposed, and the number of people subject to that sentence as at 30 June 1991 was 595.

Other powers of the courts. Other means are available to the courts in dealing with offenders whose offences are not serious: conviction and discharge, where the effect is that the offender has a conviction recorded against him or her, but no sanction is imposed; suspension of punishment, where a conviction is coupled with an order that the offender come up for sentence if called upon within a specified period, conditional upon good behaviour, and discharge without conviction, where the offender has been found guilty but the offence is considered to be trivial or of a 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 remission after serving two-thirds of the sentence. After release the offender is subject to supervision by the Probation Department for six months.

Imprisonment—for a stated period or for life. An offender sentenced to imprisonment for a fixed term of one year or more 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. Those sentenced to less than one year are eligible for remission of sentence after half of their term has expired.

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 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 9.12. 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 9.12. PENAL INSTITUTIONS*

CategoryInstitutionMuster level

1 Includes Napier Prison (minimum security).

2 Includes Wanganui (City) Prison (minimum security).

3 Includes six males.

4 Included in other category.

* At 1 January 1991.

† Regional prison.

‡ Included in other categories.

§ Included in Arohata Women's Prison.

Maximum securityAuckland Prison (Maximum Security Division) 193
Medium securityAuckland Prison (Medium Security Division) 307
Christchurch Prison 409
Invercargill Prison 137
Mangaroa Prison1 199
Mount Eden Prison 449
Waikeria Prison 512
Wanganui Prison2 290
Wellington Prison 118
Minimum securityDunedin Prison† 54
Manawatu Prison 190
New Plymouth Prison† 96
Ohura Prison 75
Rangipo Prison Farm 207
Rolleston Prison 178
Tongariro Prison Farm 174
Wi Tako Prison† 210
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 Institution 58
Female institutions and remand centresArohata Women's Prison 75
Christchurch Women's Prison 573
Mount Eden Prison (female division) 314

Table 9.13. PRISON POPULATION, RECEPTIONS, AND DISCHARGES

Category19891990
MalesFemalesTotalMalesFemalesTotal
Persons in prison at 1 January3173145331832561563412
Receptions during the year (including multiple receptions of the same person, but excluding transfers of sentenced prisoners)10700788114881152680612332
Discharges during the year (including multiple discharges of the same person, but excluding transfers)10617777113941087680411680
Persons in prison at 31 December3256156341238331573990
Daily average number of prisoners3351154350537171733890

Of the 12332 receptions at penal institutions in 1990, 5798 referred to persons remanded in custody and released after remand or still on remand at the end of the year.

Table 9.14. AGE AND OFFENCES OF PRISONERS RECEIVED, 1990

Age, in yearsOffences against the personDriving under influence of drink or drugs
Sexual offencesViolent offencesOther
MFMFMFMF
Under 2145-3341021-29-
21-2443-27613302454
25-2949-2286211551
30-39103-1911020-832
40-499113827-301
50 and over63-1411118-
                    Total394110814210042608
Age, in yearsBurglary, theft and fraud*Conversion, wilful damage, etc.†Other offencesTotalTotal prisoners, both sexes
MMFMFMF 

* Includes forgery and currency offences.

† Includes all other property offences.

Under 21560321453434381568831651
21-24333426636093914021031505
25-2924539381546451182931275
30-3918728343498441116871203
40-49617611211335425379
50 and over Total1422-46715811169
                    Total140015029111225418657804026182

The number of prisoners received to serve a sentence imposed during 1990 for criminal offences was 6533, but deducting multiple receptions of the same prisoner, the number of distinct persons was 6182, 5780 males and 402 females. The corresponding total for 1989 was 6137, involving 5788 distinct persons (5394 males and 394 females).

PRISONERS
Numbers in prison per 10,000 mean population

Table 9.15. AGE AND LENGTH OF SENTENCES OF PRISONERS RECEIVED, 1990

Age, in yearsLength of sentenceTotal
Under 1 month1-3 months3-12 months*1-3 years3-5 years5 years and over†

* Includes corrective training.

† Includes 30 with life imprisonment.

15--11-13
16--4341-48
17692223565283
1810212827669404
19835289911010443
2012692301222314470
21-246519976637164401505
25-295016562533764341275
30-394614255833570521203
40-491435167974422379
50-59713482959111
60 and over27201610358
                    Total220695325115143031996182

Table 9.16. AGES OF CORRECTIVE TRAINING DETAINEES

Sentenced to corrective trainingAge, in years
16171819Total
* Includes one 20-year-old
1989
     Males97218159106581*
     Females721131152
1990
     Males39167158128492
     Females2616731

Ethnic origins of prisoners. Of the 6182 distinct prisoners received during 1990, 2980 were Maori, 2857 European, 315 Pacific Island Polynesian and 30 were of other or non-stated ethnic origin.

Treatment of prisoners

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 and offer recreational, educational, cultural, individual, or collective activities.

At 1 September 1991 there were 45 fulltime teachers serving in various penal institutions, with part-time teachers supplementing their work. Educational institutions are contracted to provide courses for inmates, though some inmates do undertake distance education. 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.

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.

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 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. Inmates can also get a grant of up to $350 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.

Release to work. Upon selection by the superintendent, inmates may be released during the day for private employment. 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.

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 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.

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 a national Parole Board. Those sentenced to at least one year less than seven years appear before one of 17 district prisons boards.

9.4 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 is divided into six police regions. 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.

POLICE STRENGTH
Population per police officer

Commissioner of Police, John A. Jamieson.

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 30 June 1990 was 4966 sworn personnel, including 343 policewomen. The department also employed 974 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 30 June 1990, armed offenders squads attended 282 incidents, compared with 262 in 1989.

A total of 183 members throughout the country now perform armed offenders squad duties on a parttime 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 881 police-controlled search and rescue operations during 1989-90. 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 50 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 30 June 1990 police dogs were deployed on 21224 incidents. There were 89 general purpose dogs, 8 narcotic detector dogs, and 3 explosive detector dogs.

Community constables. 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 30 June 1990 there were 173 community constables spread over all six police regions.

Youth aid section. Youth aid staff throughout the country as at 30 June 1990 totalled 143.

Crime prevention. The police/community crime prevention programme recognised 22321 community support groups throughout New Zealand as at 30 June 1990.

National Drug Intelligence Bureau. For the year ending 30 June 1990 there were a total of 18514 drug offences reported, of which 89.6 percent were cleared.

Demonstration of police's new identification system, Compusketch.

Table 9.17. DRUG SEIZURES BY SUBSTANCE

Substance19901991
Source: New Zealand Police.
Heroin (grams)418.601118.30
Heroin (millilitres)4.0022.00
Cocaine (grams)336.002636.80
Opium (grams)21.30304.20
Morphine (grams)13.2031.90
LSD (tabs)131720.0044067.50
Cannabis plant231242.00175726.00
Cannabis leaf (kilograms)882.98580.45
Cannabis oil (grams)1053.301398.55
Cannabis resin (grams)2234.961218.34
Cannabis seed (grams)663.41610.43

In 1990 search without warrant powers were exercised in 2538 cases, resulting in 2076 seizures. There were 25 drug deaths recorded in 1990, 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 30 June 1990 can be found at the beginning of section 9.2, Criminal justice.

Recovered stolen property, Wellington.

Police Complaints Authority

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.) It is an independent authority, funded by the Department of Justice. 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 30 June 1990 the authority accepted 800 complaints, of which 652 were fully investigated; 75 were upheld, 60 were partly upheld and 1 was conciliated.

Contributors

  • 9.1 Department of Justice; Department of Labour, Department of Statistics.

  • 9.2 New Zealand Police; Department of Justice; Department of Statistics.

  • 9.3 Department of Justice; Department of Statistics.

  • 9.4 New Zealand Police.

Further information

Justice Statistics. Department of Statistics.

Report of the Department of Justice (Parl. paper E. 5).

Report of the Legal Aid Board (Parl. paper E. 7).

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 10. Arts and media

Scene from New Zealand film “An Angel at My Table”.

10.1 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 the early 1970s the Ministry of External Relations and Trade has worked with various bodies in the arts and cultural heritage sector to foster New Zealand's cultural image abroad. The ministry's contacts overseas have been helpful in setting up various exhibitions and cultural exchanges, but increasingly the bulk of the financial support will have to come from other sources.

The Ministry of Cultural Affairs was established on 1 January 1991 and the Chief Executive took up duties in August 1991. The ministry has taken over the policy functions previously performed by the Arts and Cultural Heritage Division of the Department of Internal Affairs.

The ministry's objective is the most efficient use of public resources to maximise understanding, appreciation, access and participation in New Zealand arts and culture both in New Zealand and overseas, and to promote the enhancement of New Zealand's cultural identity.

The ministry's core business is the provision of:

  • Policy advice on cultural issues to Government, including legislation, major policy proposals and developments and initiatives which have significance to the cultural sector.

  • Services to the Minister of Cultural Affairs, principally the preparation of replies to ministerial correspondence, advice on policy matters and general services which assist the Minister in discharging his portfolio obligations to Parliament.

The ministry's business also includes the administration and disbursement of payments to the New Zealand Symphony Orchestra, the New Zealand Film Archive, the New Zealand Film Commission and the Queen Elizabeth II Arts Council of New Zealand and the monitoring of the use of the Crown's investment in these organisations.

Table 10.1. GRANTS TO THE ARTS AND CULTURAL HERITAGE SECTOR, 1991-92

GroupGovernment assistanceLottery grant

* Subject to review of the CCAC.

Source: Department of Internal Affairs.

 $(000)
Queen Elizabeth II Arts Council3,00020,993
New Zealand Film Commission1,0008,775
New Zealand Film Archive91675
National Art Gallery and Museum8,7012,314
New Zealand Historic Places Trust1,8431,856
New Zealand Authors' Fund717-
Cultural Conservation Advisory Council393*-
Antiquities Act costs21-
Lottery community facilities-13,400
National Archives11,345-
Museum of New Zealand project16,348-
Dictionary of New Zealand Biography1,045225
New Zealand Symphony Orchestra7,100-
Historical Branch (Internal Affairs)888-
Ministry of Cultural Affairs1,713-

Queen Elizabeth II Arts Council of New Zealand

The Arts Council is an investor and advocate for the arts in New Zealand. It is an independent statutory authority including three regional councils, a national network of community arts councils and the council for Maori and South Pacific Arts, Te Waka Toi.

For the year ended 30 June 1992, the council received funds totalling $20.7 million, of which $18 million was provided by the New Zealand Lottery Grants Board with the remainder coming from taxation revenue.

The Arts Council is committed to the Treaty of Waitangi, and operates independently of Government. The mission of the Arts Council is to secure the arts as a resource for all New Zealanders. It has six goals:

  • To stimulate and support creative expression within all communities.

  • To invest in the development of Maori art.

  • To invest in the development of new work by New Zealand artists.

  • To invest in the development of art industries.

  • To invest in the professional development of people working in the arts.

  • To ensure the provision of the information, skills, services and resources required to achieve these goals.

Within the arts sector, the Arts Council works in four main ways: as an investor, either in partnership or exclusively, in cultural programmes designed to achieve its objectives; as a service organisation, providing information, advisory, management and other services to the cultural sector, as a change agent, assuming a leadership role in promoting events or programmes which result in productive change which benefits the arts; as a policy research and advocacy unit providing a national voice on cultural issues.

The Arts Council manages over 200 programmes aimed at: encouraging enterprise, creativity and outstanding talent in the fields of literature, music, theatre, creative film and video, dance, visual arts and craft; developing the creative abilities of New Zealanders within their communities; enabling people in institutions to have access to the arts; and supporting Maori art and artists. The role of the council varies depending on the art form.

Investment for artists' projects is available in the following areas:

Craft. The craft programme is bicultural. It offers funding support to professional craft artists working in 20 media. Funding is available for new, experimental and traditional work, exhibitions, research, workshops and study in New Zealand and overseas.

Assistance is also offered to craft design courses in polytechnics, for training part time tutors and bringing international practitioners to New Zealand to run courses. Artists in residence, from New Zealand and overseas, are funded for polytechnics.

Dance. The dance programme seeks to enhance the excellence of the art form through investment in leading New Zealand choreographers and dance companies, including the Royal New Zealand Ballet Company. Dance professionals in all fields can apply for postgraduate study grants and participation in advanced dance workshops/masterclasses.

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, services and marketing.

Literature. The Literature Programme of the Arts Council invests a significant portion of its funding in direct support to writers through grants designed to provide an income for periods of three, six or 12 months. Major awards to writers include scholarships in letters, bursaries for established writers, new writers and children's writers, and ‘writer in residence’ fellowships at the universities of Victoria, Auckland, Canterbury and Waikato.

Other areas of funding include a scheme to encourage the writing and publishing of books in the Maori language (in partnership with Te Waka Toi), grants to New Zealand publishers and literary organisations, support for the Book Council's ‘Writers in Schools’ programme, and promotional activities such as the New Zealand Book Awards, the production of book catalogues and sponsorship of various writing festivals within New Zealand.

Music. The Music Programme provides major funding support to regional orchestras and opera companies, The New Zealand String Quartet, and the chamber music touring network of the Music Federation of New Zealand. The council invests in the work of New Zealand composers through direct grants, commissioning, residencies and a promotional agency, the New Zealand Music Centre. Recording artists and bands can receive support for debut releases, and professional development opportunities are offered to musicians through grants for workshops and overseas study. The council invests in other aspects of the music industry through programmes for performance, recording and publication projects.

Theatre. Support is given to the country's seven professional theatres through the Arts Investment Programme. The Theatre Initiatives Programme makes grants available to develop and mount substantial and innovative projects, with priority given to New Zealand work. Grants for commissioning playwrights and for advanced theatre studies at postgraduate level are also made through the theatre programme.

Members of Wellington Maori Theatre Group, He Ara Hou.

Visual Arts. The main areas of investment in the visual arts include residencies, new work in publicly accessible sites, publications, conferences, research, professional development through attendance at international events, research and support for international ventures.

In addition to investment activities in the arts, the Arts Council has developed a range of advocacy, information and service functions intended to strengthen the position of the arts. These services are aimed at both the arts sector itself and the wider community. Advocacy work is targeted to specialist communities such as the health, justice and education sectors and local authorities, and consists of promotion of the arts as a force to be valued in the New Zealand community.

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 New Zealand on Air from the Public Broadcasting Fee and from the Department of Cultural 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 90 enables the orchestra to undertake the complete symphonic repertoire. As well as presenting concerts nationwide, the orchestra has toured overseas and made several commercial recordings, one of which was nominated for two international awards. The NZSO also commissions and performs work by New Zealand composers and has recorded the theme for Barcelona Expo 1992.

New Zealand Film Commission

The mission of the Film Commission (Te Tumu Whakaata Taonga) is to ensure the availability of New Zealand films which tell New Zealand stories, to a diversity of audiences in New Zealand and overseas.

The functions, powers, and duties of the commission are defined in the New Zealand Film Commission Act 1978. The Film Commission receives funding through Government Vote: Cultural Affairs and as a distribution agency for the Lottery Grants Board. Each year, the Film Commission offers financial assistance to a considerable number of film projects, both for development and for production. In the 14 years since the commission was established 48 features and more than 100 shorts have been made.

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. New Zealand is a party to both these conventions. New Zealand has also acceded to the Convention for the Protection of Producers of Phonograms Against Unauthorised Duplication of their Phonograms. 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.

During the 1980s issues surrounding video pornography in particular became the subject of heated debate. Some groups also took exception to the screening of films taking unusual perspectives on religious themes such as Jean-Luc Godard's ‘Hail Mary’ and Martin Scorsese's ‘The Last Temptation of Christ’.

Issues surrounding sex, violence and language remain as controversial as when films first began to be accessible to the public.

In 1990 one of the first moves to implement the findings of the 1988 Committee of Enquiry into Pornography resulted in amended legislation limiting the term of film and video censors to six years. Also in 1990, the first woman Chief Censor of Films, Jane Wrightson, was appointed. She is supported by two Assistant Film Censors and a small specialist staff.

Major new legislation is planned to be introduced into the House in early 1992 which will combine the Film Censor's Office, the Video Recordings Authority and the Indecent Publications Tribunal into a single Office of Film and Literature Classification. New classifications are also likely.

Film and videos for public exhibition. All films and videos (except specially exempted categories) intended for public exhibition are classified 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 several criteria set out in the Act.

Classifications used for film 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.

People dissatisfied with the Chief Censor of Films' decision may appeal to the Film Censorship Board of Review.

The Office of the Film Censor is serviced by the Department of Internal Affairs.

Video recordings. 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 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.

The labels which are issued by the Labelling Body are as follows:

Green label

G—Suitable for general audiences.

Yellow labels

PG—Parental guidance recommended for persons under 13 years.

13—suitable for persons 13 years and over.

16—suitable for persons 16 years and over.

Red labels

Restricted 16—Not to be supplied or viewed by persons under 16 years.

Restricted 18—Not to be supplied to or viewed by persons under 18 years.

Restricted R—This label imposes a restriction on the availability of the video. It may be utilized by specified persons or classes of persons or for restricted viewing for a specified purpose.

Each of these labels may bear a censor's note or description which provides additional information to potential consumers. For example—‘contains violence’ or ‘contains explicit sexual material’.

The Authority must classify each video recording submitted to it as either—

  1. Not indecent; or

  2. Indecent in the hands of persons under a specified age, or

  3. Indecent unless its circulation is restricted to specified persons, or

  4. Indecent unless viewed for a particular purpose, or

  5. Indecent

Neither options c or d have been used to date.

Indecent publications. The Indecent Publications Tribunal determines whether or not any book or sound recording submitted to it is indecent and decides on its classification. 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 fields 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 1990 the Indecent Publications Tribunal had 1158 publications placed before it for review.

10.2 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.

National Art Gallery. The National Art Gallery is a museum of fine arts which holds collections and shows exhibitions covering national and international culture. 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. Beyond the traditional role as art exhibitor, 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.

“Portrait of Betty Curnow” (1954), oil on canvas (880 × 690 mm), by Louise Henderson.

1991 redevelopment of Southland Museum and Art Gallery.

National Museum. The functions of the National Museum 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).

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 staff of the trust, including curators and those employed at regional branches in Auckland, Wellington and Otago, are supported by more than 30,000 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 June 1991, almost 5000 New Zealand buildings had been classified by the trust—including 125 ‘A’, over 600 ‘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.

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. A register of archaeological sites is maintained by the trust which has the authority to investigate the sites and prohibit unauthorised tampering.

Protection of antiquities and archaeological and traditional 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 artifacts 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.

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. During 1990-91 the Trust processed and approved applications for 13 traditional sites, defined by the Historic Places Act 1980 as a place important because of its historical significance or spiritual or emotional association for a group of Maori people.

National Archives

National Archives, Te Whare Tohu Tuhi-Tuhinga O Aotearoa, is the keeper of the nation's records; its role is defined by the Archives Act 1957. National Archives selects, preserves and makes available records of permanent value drawn from the various areas of government. These include Parliament, Maori Land Courts, Ministers of the Crown, government departments, the armed forces, the courts, and Commissions of Inquiry. Archives are preserved for the evidence they provide on the functions, policies, transactions and decisions of government that have affected the lives of New Zealanders. They contain information on events, great and small, which have influenced the course of New Zealand's development: archives are the raw material for the story of New Zealand. To ensure their preservation the Chief Archivist has the statutory control over the disposal and destruction of all inactive government 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.

In December 1991 the National Archives headquarters in Wellington moved from a number of rented premises into its first permanent home. The premises have been renovated to meet the special requirements for housing and servicing archives. The building contains the Constitution Room where the original Treaty of Waitangi and other founding documents are on permanent display to the public for the first time. National Archives also has regional offices in Auckland and Christchurch.

The National Archives holds 40,000 linear metres of documents, plus 500,000 maps and plans, and large collections of photographs, posters, films and videos, and microfilms. The National War Art Collection is housed in Wellington and comprises watercolours, oils and sketches by New Zealand's official war artists of both world wars. Some of these valuable art works are in a touring exhibition reaching galleries throughout New Zealand and a special exhibition was sent to Crete in May as part of the commemorations there.

The National Archives has the country's largest collections of unpublished information concerning political, social, economic, scientific, military, technical and administrative matters. Records from the 19th century include those of the New Zealand Company, the provincial governments, the Colonial Secretary and the Governor. Records from the 20th century are more diverse, ranging from records of the numerous wartime agencies and the war zones to key policy and operational records of departments of state. Papers of many Prime Ministers are also held, as well as those of a number of former Cabinet Ministers.

New Zealand Film Archive

The New Zealand Film Archive, Nga Kaitiaki O Nga Taonga Whitiahua, is an independent, non-profit organisation dedicated to the preservation of New Zealand's heritage of moving pictures. The Film Archive is dedicated to making this cultural heritage widely accessible to as many New Zealanders as possible.

It is a charitable trust, whose Board of Trustees represent broad community, Maori, film and archival interests. Funding is received through the Lottery Grants Board, New Zealand Film Commission and the Ministry of Arts and Culture. The Film Archive also works closely with NZ on Air.

The Film Archive was established in 1981. In its first 10 years it has made enormous strides, preserving and making available the images from thousands of feet of fast-deteriorating, irreplaceable film stock. The collections include New Zealand and foreign films from 1896 to the present day comprising documentaries, feature films, shorts, animation, news-reels, television programmes, advertisements and home movies.

Film material is either deposited with, or donated to the Film Archive. As well as safeguarding moving image materials (film and television) the Film Archive also cares for a large repository of film industry paraphernalia, including photographic stills, vintage equipment, programmes, reviews, posters, advertisements, personal papers, books, magazines, props and constumes. Research and viewing facilities are available at central Wellington offices. Appointments are necessary.

Travelling film shows regularly return preserved films to their local, regional and tribal origins in specially arranged screenings. The Film Archive also brings rarely-seen films to New Zealand, drawing on the collections of its overseas colleagues in FIAF (Federation Internationale des Archives du Film).

10.3 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.

Libraries are distributed throughout the country, from very small school and community libraries to large library systems.

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 companies which import as well as publish, although some are exclusively involved in one or other activity.

No recent studies have been conducted of the book industry. However, industry sources estimate that the total value of books sold in New Zealand is at present around $400 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 there are only about 100 specialist importers or publishers of books. This group produces about three-quarters of all new titles produced and accounts for over 90 percent of sales. The other 200 are mainly informal publishers, i.e. local authorities, historic societies, private publications, government departments, etc.

The number of New Zealand titles published by commercial publishers increased by 150 percent since 1980. The greatest growth has been in the area of junior level educational programmes, where a healthy export market has been developed. Educational book publishing accounts for approximately 17 percent of all sales by value. However, economic pressure on the industry meant that titles are now kept in print for a shorter time (very low sellers are remaindered and doubtful titles are not reprinted), and so the number of titles in print has tended to decline.

Because of a desire to hold book prices down, the trend towards printing New Zealand books overseas, where printing prices are lower, has continued. By the mid-1980s local printing for publishers had declined by over 40 percent and overseas printing had increased by over 350 percent.

In general the number of copies printed of new books has also been declining. The average print run for general books in 1986 was 5000 copies, but may now be closer to 3000 copies.

The book industry is largely concentrated on the North Shore of Auckland City, where all the major general book publishers are located. Wellington has a small number of general book publishers, but is the centre for legal book publishing.

The New Zealand book publishing industry has its own professional body, the Book Publishers Association of New Zealand. The association represents the wide-ranging interests of its members, such as marketing, copyright concerns and development of book exporting.

Otago Theatre Trust's 11th annual 24 hour book sale.

Libraries

The library needs of the majority of New Zealanders are met through public libraries provided by local authorities. Since local authority amalgamation, most of the 74 cities and districts provide a co-ordinated library service to the whole district population. There is usually one central district or city library and a number of other service points. The total number of permanent service points in 1991 was 246.

In the year ended 30 June 1991, local authority libraries held a book stock of over 8.5 million volumes, and made approximately 38 million issues.

There are also 48 libraries in tertiary education institutions, including the seven university libraries, each of which have major collections, and there is provision for a library or library room in every school. The seven New Zealand universities finance their libraries from government grants. Research collections have been developed, all have online integrated library systems, and are linked nationally through the New Zealand Bibliographic Network. The holdings of all university libraries together were some 6 million volumes in 1991. About 250 specialist libraries and information centres serve government departments, businesses and other organisations.

A co-operative inter-library lending system allows resource-sharing among its 246 member libraries. The Interloan scheme is administered jointly by the National Library and the New Zealand Library Association.

Since 1980, librarianship has been taught at two schools; a postgraduate diploma course at Victoria University of Wellington, and a certificate course at Wellington College of Education.

National Library of New Zealand. The mission statement of the National Library of New Zealand is to maximise access to information resources for all New Zealanders by leading the national development of library-based services.

The National Library is the principal adviser to Government on library policy and information issues. It collects, preserves and makes accessible the documentary heritage of New Zealand. It makes available an authoritative record of New Zealand publishing. It coordinates the availability of national information resources, and delivers information for reasons of efficiency and fairness.

The following services are available from the library in Wellington.

Information Service—The National Library provides a reference service to answer enquiries for information that cannot be satisfied from resources in other New Zealand libraries.

The Information Service provides access to information in the National Library's extensive collections of New Zealand and overseas books, serials, music and local and overseas databases.

The collections which can be accessed through the Information Service include over 500000 books, mainly in the social sciences and the humanities; approximately 8670 current journal titles and monographs-in-series in all subject areas including medicine, technology and pure science, over 2 million microfiche and microfilm, approximately 4400 music scores; a collection of sound recordings including 7000 compact discs; over 90000 children's books; all daily New Zealand newspapers, and a selection of overseas newspapers.

The National Library in Wellington provides a cultural as well as an information resource for New Zealanders. The National Library Gallery, together with a smaller display area, the Turnbull Room, are of particular interest. Here items from the library's heritage collections are exhibited, and exhibitions of materials from other institutions are hosted. The library also has an extensive programme of exhibitions touring in other parts of the country. Concerts, programmes of films and lectures are also held in the library's Wellington auditorium. Guided tours of the building are conducted each week. Small displays and works of contemporary New Zealand art are also to be seen throughout the building.

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 55000 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 June 1991, the collection included approximately 230000 books; 16,000 rare books; 45,870 maps; 573,400 photographic prints, negatives and albums; 45,870 paintings, drawings and prints; 12,250 posters; 9000 discs, tapes and cassettes; 680 bays of newspapers; 5480 shelf metres of manuscripts; 3020 metres of serials; 38,625 microfilms and 33,320 microfiche.

The Children's Historical Collection—This is a research collection of over 6000 children's books and magazines read in New Zealand up to 1940. Part of the collection is kept on open shelves in the Dorothy Neal White Room, which also has facilities for researchers and readers. Displays are a feature of this room.

Services to schools—The National Library provides support services to New Zealand's more than 2500 schools through the School Library Service and the National Film Library. These services include: 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 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.

Services to libraries—In addition to the Information Service, a range of services are provided to other New Zealand libraries to facilitate, enhance and back up their work and collections.

These include: loan and copy services; resource sharing tools and directories (online or printed); bibliographic tracing and referral services; database services; a range of publications, e.g. bibliographies and buying guides; and training workshops, or materials and consultancy services.

Services to local authorities—The National Library's support to local authorities is being refocused, following important new policy initiatives announced in July 1991 by the Minister responsible for the National Library. The new policy clarifies the respective and complementary roles of the National Library and the libraries run by the territorial local authorities.

The National Library will supplement local government's core services with specialist services to varying degrees, depending upon the size of the local authority. These include the provision of specific books, articles, tapes or compact discs; the supply of information on request; the development of online bibliographies, indexes, annotation and full-text databases such as Kiwinet.

Infoserve—This is a group of complementary information services which has been set up by the library to promote the value of information, and to provide access to information resources to New Zealand businesses.

Each Infoserve service has different strengths. SATIS is a nationwide information brokering service which tracks down information from a comprehensive range of national and international resources to meet clients' deadlines and budgets.

Kiwinet is a database host which allows clients to search for information through their own computers.

The consultancy evaluates, designs, implements, and manages systems and services to meet a client's needs.

Rapid Article Access is a fast document supply service to the National Library's collection of magazines and periodicals.

All of Infoserve's services operate on a chargeable basis.

Databases—The National Library maintains two database services. These are the New Zealand Bibliographic Network and Kiwinet.

The New Zealand Bibliographic Network (NZBN) is an online computer system which links most public, university, government and special libraries in New Zealand to a central bibliographic database. NZBN's prime functions are to support libraries throughout New Zealand in their reference, interloan, cataloguing and acquisitions activities. There are almost 200 member libraries.

The NZBN database contains over 5.5 million bibliographic records, and includes information on over 3.7 million books, periodicals and audio-visual programmes held in New Zealand libraries.

Kiwinet is a database host which currently contains 20 databases on all aspects of New Zealand, including business, commerce, the social sciences, arts, humanities and law. Over 600 clients access the service, often on a daily basis, from all over the country and internationally.

Recording New Zealand publishing—The National Library is responsible for making available the authoritative record of New Zealand publishing. The New Zealand National Bibliography includes most of the country's publications, and is published on fiche as well as being a subset of the NZBN database. Index New Zealand (INNZ) is a subject index to the contents of New Zealand general and scholarly serials, newspapers, theses and conference papers.

Parliamentary Library. This library provides library, information, research and reference services for Parliament as required by the Parliamentary Service Commission. The library's collection, which numbers over 500,000 volumes, is strongest in areas such as economics, politics, public administration, law, social sciences and biography, all being subjects relevant to members of Parliament for their legislative duties. The library has one of the largest collections in the country of books, pamphlets, periodicals and newspapers relating to New Zealand.

The International 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. The collection is available for public use.

Hocken Library. Founded in 1910 through the gift of Dr T. M. Hocken, physician, bibliographer and collector of Dunedin, the Hocken Library contains major research collections of New Zealand, Pacific and early Australian material. Administered in trust by the University of Otago, the library includes substantial holdings of books (160,000), newspapers and periodicals; sound recordings (8000); microfilms (5000); maps (12,000); photographs (100,000); posters (12,000); paintings (7000), including modern works of art; and manuscripts, particularly of early missionaries and literary figures. The library's archives and manuscripts total 6000 linear metres, and are rich in Otago sources—business, local government, education, health, sport, the goldfields, the churches and the University of Otago. In 1990 the library attracted 9220 readers and 932 written enquiries were answered.

10.4 Mass media

Broadcasting policy

The Broadcasting Act 1989 came into force on 1 July 1989. 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 of broadcasting standards; and

  • The separation of social, policy advice and regulatory functions from commercial activities.

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. In 1991 the Act was amended to remove all restrictions on foreign ownership of broadcasting services.

The Broadcasting Act 1989 is also the principal vehicle for meeting the Government's social policy objectives 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.

The Broadcasting Corporation has been restructured into two distinct state-owned enterprises: Television New Zealand Limited and Radio New Zealand Limited, each with its own management board. The New Zealand Symphony Orchestra has become a separate company. The New Zealand Listener is a separate joint venture business in which both Television New Zealand and Radio New Zealand have 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. Aotearoa Maori Radio has been broadcasting on a full-time basis to Auckland, Wellington, Christchurch and the Bay of Plenty since early 1991.

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.

NZ On Air. NZ On Air's role is to promote cultural and social objectives in broadcasting and such other activities seen as unlikely to receive sufficient commercial provision. Revenue for funding is based on the collection of the broadcasting fee, set at $110 annum per household with a television set.

The four main functions of NZ On Air are to:

  • reflect and develop New Zealand identity and culture by promoting programmes about New Zealand and New Zealand interests and promoting Maori language and culture;

  • maintain and, where it is considered appropriate, extend the coverage of television and radio broadcasting to New Zealand communities that would otherwise not receive a commercially viable signal;

  • ensure that a range of broadcasts is available to provide for the interests of women, children, persons with disabilities and minorities in the community, including ethnic minorities; and

  • encourage the establishment and operation of archives of programmes that are likely to be of historical interest in New Zealand.

In television, NZ On Air funds New Zealand drama, documentaries and special interest programmes for broadcast and also funds non-commercial television coverage.

In radio, NZ On Air funds the two national and non-commercial public networks—National Radio and Concert FM—as well as Maori radio and Access radio. Funding is also given for New Zealand music programmes on commercial and student radio and for non-commercial radio coverage.

The New Zealand Symphony Orchestra receives part-funding from NZ On Air, but this responsibility passes to the Ministry of Cultural Affairs in 1991–92. Parliamentary broadcasts, the international shortwave service and educational broadcasts are all encompassed by the NZ On Air service.

The allocation of the available $76.3 million in funds, collected in 1990, was: television programmes ($34.3 million); radio ($27.9 million); Maori radio ($5.1 million); television and radio coverage ($4.3 million); New Zealand Symphony Orchestra ($2.5 million); and archives ($1.4 million).

The six members of NZ On Air are appointed by the Minister of Broadcasting.

Broadcasting standards. The Broadcasting Standards Authority is an independent four person body established to enforce and oversee the standards and objectives laid down in the Broadcasting Act 1989. 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; and the presentation of appropriate warnings.

  • To develop and issue codes itself, if codes developed by the industry are seen as inadequate.

  • To commission research and publish findings; and

  • To advertise complaint procedures.

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 severe being a 24 hour restriction on broadcasting).

There are appeal rights to the High Court against the authority's decisions.

During 1990, the authority issued 45 decisions on formal complaints. Over half the complaints received by the authority alleged a breach of standards requiring truth, accuracy, fairness and a balance of views. The second largest area of complaint was that of good taste and decency. The more controversial decisions by the authority involved issues of denigration on the basis of race and the use of sex appeal to sell a product. The most time consuming decisions involved complaints over a New Zealand documentary, which implied corruption in the former Labour government's policies and campaign management.

Of the 45 decisions, 39 of the complaints received were regarding television programmes, and six were about radio. Eight of the 45 complaints involved advertising.

The authority is also responsible for the allocation of free election broadcasting time and for this particular function, its membership is increased by two, with a representative from each of the major political parties.

The authority is in the process of reviewing the codes on the portrayal of violence on television and the protection of children. Both codes involve complex and contentious issues, arousing public interest and necessitating lengthy consultative and comparative research.

Since 1 February 1992 the broadcast rules on liquor advertising have allowed brand advertising on radio and television. The advertising will be subject to strict programme and advertising controls and will be tested for a two year period.

Developments in broadcasting. In November 1989, a third privately-owned national television network started broadcasting, joining the two networks operated by the state-owned company, Television New Zealand. This third network now broadcasts to 85 percent of the population. A pay TV channel, Sky Television, is broadcasting on three channels in Auckland, Waikato and the Bay of Plenty and on one channel in Wellington. A regional UHF service is broadcasting in Christchurch, and UHF television services providing information for tourists have been established in Rotorua, Queenstown and Dunedin.

The hours of local content on television have more than doubled since deregulation of the broadcasting industry in 1988. In 1990, 4249 hours of local content were screened compared with 2804 in 1989 and 2112 in 1988.

The number of radio stations has also increased. In 1990 there were 46 AM and 42 FM radio stations. New services include Maori radio stations, TAB/Radio Pacific (talkback) Stations throughout New Zealand, Radio for the Print Disabled and other stations targeting niche markets.

In 1990, frequencies were reserved throughout the country for the promotion of Maori language and culture and for non-commercial broadcasting. There are now 16 Maori radio stations broadcasting continuously compared to one in 1989.

Independent broadcasting. The Independent Broadcasting Association, based in Auckland, represents the public and private companies which operate independent radio stations. There are 28 members with stations in all metropolitan and provincial markets. Stations include both locally operated and network operations. News and sports news are provided through Independent Radio News (IRN), based in Wellington.

Television

Television New Zealand. This state-owned company operates two channels in colour, with both Television ONE and Channel 2 broadcasting 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, the information channel, contains a broadly based mix of quality drama, feature programmes, movies, sport, news, current affairs, entertainment, and documentaries, while Channel 2 is a blend of drama, comedy, music and entertainment.

Television New Zealand screened 2500 hours of locally made programmes in 1990, 18 percent more than in 1989.

The organisation has a international reputation as a leading supplier of natural history and wildlife programmes and family entertainment.

Based at the Auckland Television Centre, which specialises in news, current affairs, Maori and Pacific Island programmes, TVNZ has also established Avalon, the Wellington based subsidiary which offers quality production facilities for local and international use, and South Pacific Pictures, the Auckland subsidiary which produces quality drama for screening both in New Zealand and overseas. Broadcast Communications Ltd, First Scene (the design arm of Television New Zealand) and Moving Pictures are also subsidiaries which offer their services commercially.

Teletext is a Television New Zealand service which provides a range of general and special interest news and information, including a subtitled daily news service for the hearing impaired. It is available to viewers with sets equipped with built-in or add-on Teletext decoders.

Television New Zealand has embarked on a strategy to invest in the future which has seen it take a 16 percent share of Sky Network Television Limited and a 25 percent share of Clear Communications Limited.

TV3 Network Limited. New Zealand's private national television network which was launched on 25 November 1989. It currently reaches 87 percent of the population, with transmission expansion plans expected to increase this to around 93 percent in 1992. The station's headquarters are in Auckland with studio facilities in Wellington and Christchurch.

In December 1991, after 19 months in receivership, shareholding in TV3 was bought by CanWest Global Communications Corporation, a Canadian television company, which took a 20 percent stake in the network. Westpac Banking Corporation also raised its shareholding to 48 percent. The remaining 32 percent is held by TV3 Network Holdings.

The network's programming targets the 18–54 age group with a complete range of programming—news, current affairs, sport, sitcoms, movies and drama series, along with children's programming. Approximately 30 percent of the 100 hours of broadcasting each week is locally sourced, with other programmes coming primarily from Australia, the United States and Britain.

Sky Entertainment. New Zealand's first entry into pay television began broadcasting on 8 May 1990. Sky provides movies, sport and news on three scrambled UHF channels. To receive the broadcast the subscriber must have a decoder unit and, where necessary, a dedicated UHF aerial.

Subscribers are Sky's main source of revenue, keeping commercial time down to two or three minutes per hour compared to eight to 12 minutes on the commercial stations. Sky currently has approximately 40,000 subscribers and expects to have over 60,000 by March 1992.

Sky offers news and sports broadcasts for 24 hours a day and movies for 14 hours a day. The news is provided by the BBC and CNN networks and, generally, broadcast live. The sports network endeavours to broadcast major events live or as close to live as possible and provides coverage of a diverse range of sports. Sky Movies shows a mixture of classics and new releases which it rotates over different times and days.

Radio New Zealand Limited

With the constitution of Radio New Zealand Limited in 1988 the radio broadcasting assets previously owned by the Broadcasting Corporation of New Zealand (dissolved November 1988) 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, until the Maori legal action is settled. At the time of going to press the issue is unresolved. Radio New Zealand Limited is thus obliged to continue the radio broadcasting business as a licensee without asset ownership.

Radio New Zealand Limited must meet statutory programme standards and providing a range of programme types as set by 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's activities include corporate functions, engineering, sales and news services. The company's broadcasting falls into two broad categories, Commercial or Community Radio and New Zealand Public Radio (non-commercial).

RNZ Ltd Commercial. Thirty five commercial or community stations each with its own local manager broadcast on a local station basis, networking for national and international news services and some New Zealand-wide programming (e.g. national ‘talkback’ or all night programming). Some of these stations aim at the contemporary music audience. Conversion of local commercial station services from AM to FM where appropriate is being implemented.

New Zealand Public Radio. This is mainly funded by an allocation from Public Broadcasting Fee monies by the Broadcasting Commission (see above). The principal services are National Radio and Concert FM both networked. Conversion to FM stereo transmission is complete. The AM transmitters previously used for Concert Programme coverage now form the nucleus of a third network, the AM Network, the present role of which is to broadcast Parliament (previously carried by National Radio) and major sports coverage. Access Radio broadcasting continues under the New Zealand Public Radio division.

Radio New Zealand Sound Archives, with more than 31,000 historical tapes and discs and 100,000 gramophone records 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. The Radio New Zealand International shortwave service also comes under New Zealand Public Radio.

New Zealand Radio Sales with separate offices in the main centres is a Radio New Zealand operation which is concerned with the selling and placement of commercial station advertising on a national basis for RNZ and also other radio operators.

Radio New Zealand's engineering and operations section looks after the company's technical and property requirements, development and maintenance, and also provides specialised external contract services to the industry.

For the year ended 30 June 1990, a total consolidated income of $106,826,000 was made up of sales (net) $70,432,000; Public Broadcasting Fee $28,052,000; and miscellaneous $8,342,000. Total consolidated expenditure was $101,678,000 and taxation was $1,107,000, with extraordinary items totalling a further $294,000, leaving a net profit of $3,747,000. Out of total retained earnings, 1989–90 dividends of $1,161,000 were provided for. Assets (see notes on licence agreement) totalled $74,449,000, and the ratio of operating funds generated to turnover was 10 percent.

Samoan Capital Radio announcers.

Newspapers and magazines

Taking into account the size of its population, New Zealand has a high number of daily newspapers, although two more were lost during 1991. There are 29 daily newspapers published in New Zealand, of these eight are morning newspapers and 21 are published in the evening.

In August 1991 The Auckland Star, published continuously since January 1870, closed after heavy losses in circulation and advertising revenue. A few weeks later The National Business Review, a daily since June 1987, reverted to its earlier weekly format and merged with The Examiner, a weekly issued by the same publisher. In November 1991 the evening newspaper The Christchurch Star ceased daily publication after 123 years. The newspaper continues as a free broadsheet delivered twice weekly under the names The Christchurch Starand The Christchurch Star Weekender.

Of the eight morning dailies, the one with the largest circulation is The New Zealand Herald, published in Auckland, which has an audited net circulation of 246458 copies daily. The other dailies have circulations ranging from 3000 to about 95000.

There is a concentration of ownership of the majority of the country's daily papers in two major companies. The previously dominant pattern of single family, or partnership, style of newspaper ownership now survives only in some centres. The two major publishing groups are 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 over the past 15 years, has been the steady growth of suburban newspapers, most of them delivered free to all households in their recognised circulation area, although 14 have paid circulations. The New Zealand Community Newspapers Association has 104 members which between them publish over 1.8 million copies per issue. The great majority are tabloid, but eight are broadsheet. Most are weekly, but about 20 are bi-weekly or tri-weekly. Six are fortnightly. Many of these community newspapers are owned by the two big newspaper publishing groups or by publishers of other newspapers outside the groups. Some are owned by individuals or by small companies.

There are over 2300 magazines available in New Zealand on a regular basis. Of this number, 58 are listed with the New Zealand Audit Bureau of Circulations as being either published in New Zealand or New Zealand editions. Most of these local magazines (34) are published monthly, 11 are published on an alternate month basis and six are weeklies.

In 1991 only eight New Zealand magazines had circulations of over 100,000 copies. Of these TV Guide sold the most, with a circulation of 244,033. Grapevine had the next highest circulation with 224,803 copies distributed; Readers Digest (NZ Edition) had the third largest distribution of 170,138. The other magazines with 1991 circulations over 100,000 were Woman's Day NZ (166,104); New Zealand Woman's Weekly (165,719); Listener/T.V. & Radio Times (159,095); Australian Women's Weekly (138,552); and Computer World Computer Listings (106,130). Most New Zealand magazines, approximately 43 percent, have circulation levels below 10000, with 12 publications circulating below 5000 and 13 with circulations between 5000 and 10,000.

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 1000 people are employed in advertising agencies, and 2000 in advertising-related services. Advertising revenue also contributes to the employment of another 9000 people in the publishing, radio and television industries.

At the end of March 1991 there were approximately 90 agencies, most of which (63) were New Zealand-owned and the remainder (27) 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 to 28 in 1991.

Total advertising expenditure (media and non-media) in New Zealand for the year ended March 1991 was $1,494 million. Of this, $1,046 million was spent on media advertising—television, radio, newspapers, magazines, direct mail, cinema and outdoor. The remaining $448 million came from production and non-media advertising, such as promotions, and expenditure on advertising production. Fifty one percent of expenditure on media advertising ($533 million) was made through advertising agencies, with agencies placing 96 percent of advertising on television, 80 percent in magazines, 20 percent on radio, 15 percent in newspapers, and 50 percent of advertising through other media.

Spending on media advertising comprised 1.5 percent of GDP during the year ended March 1991 and was approximately $317 per capita.

Preparing work for Nga Parirua, the South Island's only Maori newspaper.

Table 10.3. MEDIA ADVERTISING, 1990*

MediaExpenditureShare

* Year ended March.

Source: Advertising Agencies Association.

 $(million)percentage
Newspapers37936.0
Television35234.0
Radio14013.0
Magazines929.0
Direct mail, outdoor, cinema838.0
                    All media advertising1,046100.0

Table 10.4. ADVERTISING EXPENDITURE BY SELECTED INDUSTRIES; 1990*

Industry groupExpenditure

* Year ended March.

Source: Advertising Agencies Association.

 $(million)
1. Retail238
2. Foodstuffs114
3. Leisure/travel/entertainment106
4. Household82
5. Miscellaneous76
6. Automotive69
7. Agricultural/industrial/office62
8. Investment/finance/banking61
9. Toiletries/cosmetics40
10. Beverages39

Industry organisations and self-regulation. The Advertising Agencies Association of New Zealand is an incorporated body representing the interests of its members on issues affecting the advertising industry and agencies. There are 49 member agencies which collectively represent about 90 percent of agency billings in New Zealand.

The industry has two self-regulatory bodies; the Advertising Standards Authority, and the Advertising Standards Complaints Board. The first body's function is to promulgate codes of practice and develop policies on advertising standards. The Advertising Standards Complaints Board'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. In addition there is the Broadcasting Standards Authority which operates under the Broadcasting Act and whose function is to develop codes and adjudicate on complaints about programme and advertising standards on radio and television. There is also an Association of New Zealand Advertisers who represent the interests of advertisers.

Contributors

  • 10.1 Ministry of Cultural Affairs; Ministry of External Relations and Trade; Queen Elizabeth II Arts Council; New Zealand Symphony Orchestra; New Zealand Film Commission; Department of Internal Affairs; Department of Justice.

  • 10.2 Department of Internal Affairs; Department of Conservation; New Zealand Film Archive.

  • 10.3 Book Publishers Association of New Zealand; National Library of New Zealand; Parliamentary Service; University of Otago.

  • 10.4 Ministry of Commerce; NZ On Air; Broadcasting Standards Authority; Independent Broadcasting Association; Television New Zealand; TV3 Network Limited; Sky Entertainment; Radio New Zealand Limited; New Zealand Press Council; New Zealand Audit Bureau of Circulations; Advertising Agencies Association.

Chapter 11. Leisure

Whitebaiters, Rakaia River.

11.1 Sport, fitness and leisure

Sport fitness and leisure 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 1990 Life in New Zealand Survey, a baseline study of sport and leisure involvement identified five main reasons for participation in physical activity. These were: to feel good, to have fun, to keep healthy, to do things with friends and to do things with family. Top sports for the population over 15 years were swimming/diving, cycling, snooker/pool, tennis and aerobics. In the recreational physical activity section walking came out tops followed by running/jogging, cycling and fitness classes. In terms of favourite leisure activities reading was most popular followed by watching television and videos, visiting friends, listening to music and gardening.

Providing for recreation and sport

Hillary Commission for Sport, Fitness and Leisure. The commission was 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. Since 1 January 1992 the Hillary Commission has been known as the Hillary Commission for Sport, Fitness and Leisure. This change of name indicates a move towards physical activity with the result that recreational arts will become the responsibility of the Queen Elizabeth II Arts Council.

The commission initiates, supports and facilitates programmes and policies aimed at raising the quantity and quality of active participation in sport, fitness and leisure among all age groups of New Zealanders, at all levels of competence.

The nine-member commission employs approximately 33 staff. Sir Ronald Scott is the commission's presiding member. It is funded by the New Zealand Lottery Grants Board and government.

In the year ended 31 March 1990 the commission distributed $10.3 million to sport, fitness and leisure groups. This included $3.3 million which was directed through local authorities to fund local sport, fitness and leisure, $2.75 million to assist national sports, fitness and leisure organisations, $0.35 million to the New Zealand Olympic and Commonwealth Games Association, $1.7 million to the New Zealand Sports Foundation, $0.78 million towards the development and establishment of regional sports trusts and $0.5 million to research and development in fitness and health. In addition, the Hillary Commission has developed initiatives and programmes in sport, fitness and leisure such as the highly successful KiwiSport modified sports codes and programmes for Maori, women, older adults, people with disabilities, drugs in sport and fair play.

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 the Ministry of Youth Affairs.

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. Volunteers are the backbone of sport, fitness and leisure in New Zealand. ‘Life in New Zealand’ showed that 30 percent of all New Zealanders regularly spend their leisure time in voluntary support roles for sport, fitness and leisure activities. In 1990 the Hillary Commission launched the Volunteer Involvement Programme to give formal recognition and support to the work of sport, fitness and leisure volunteers. A funding programme was also developed to enable local organisations to recruit, train and retain volunteers.

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 1990 Business Directory compiled by the Department of Statistics showed 19,454 New Zealanders as being employed within the category ‘recreation services’, an increase over the 18,898 recorded a year earlier.

Dragon boat racing, Wellington harbour.

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.

Following on from the Commonwealth Games successes in athletics, swimming, cycling, shooting and gymnastics New Zealand maintained its force in international sport during the rest of 1990 and in 1991. Many New Zealand sportspeople, whether individually or in teams, have continued to succeed at the highest level, such as the national netball team (the Silver Ferns), the All Blacks, Susan Devoy in squash, Phillipa Baker in rowing, the men's and women's golf teams, Wynton Rufer in soccer and world-ranked ice racer Chris Nicholson.

Specific successes in other sports have included winning the world equestrian team's title and Blyth Tait winning the world equestrian individual title, Anna Simcic winning the gold medal for the 200m backstroke at both the Commonwealth and Pan Pacific Games and the women's soccer team qualifying to participate in the inaugural world cup competition.

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.

The 1990 Life in New Zealand Survey found that 85 percent of the population had participated in a leisure or physical activity in the last four weeks with 47 percent of all New Zealanders belonging to at least one sport, fitness or leisure club.

‘Life in New Zealand’ also found that the most popular sports activity participated in by New Zealanders was aquatic sports (swimming/diving/water polo) with 28 percent of the population involved. The three most popular activities for women were swimming (29 percent), cycling (17 percent) and aerobics (16 percent). The three most popular activities for men were swimming (26 percent), snooker/pool, etc. (23 percent) and cycling (16 percent).

Participation in sport changed dramatically with age while participation rates in general fell with increasing age. In contrast, golf participation in both men and women peaked in the 45-64 age group, and lawn bowls slowly built to 18 percent in the 65-plus age group.

The table below describes participation rates for the most common sports activities in New Zealand.

Brett Fairweather, two-times world aerobics champion, instructing class, Dunedin.

Table 11.1. PARTICIPATION IN MAJOR SPORTS BY PEOPLE OVER 15 IN 1990

SportParticipation (percent of population)
Source: Hillary Commission.
Aerobics/jazzercise12
Archery, pistol/rifle shooting3
Athletics/harriers5
Baseball/softball5
Basketball5
Boxing/wrestling1
Canoeing2
Cricket7
Cycling17
Fencing0
Golf8
Gymnastics1
Hockey/lacrosse5
Horseriding3
Lawn bowls/croquet5
Martial arts2
Motor boating7
Motorcycling/trailbiking5
Netball4
Orienteering1
Rink sports1
Rowing2
Rugby League3
Rugby Union5
Sailing4
Skateboarding2

New Zealand Sports Foundation. The New Zealand Sports Foundation was incorporated in October 1978 as an organisation independent of all sports bodies or groups, and the Government.

The object of the foundation is to provide assistance to outstanding New Zealand sportsmen and women so that they are given the opportunity to develop their full potential at the highest level in international sport. It was conceived as a joint venture between the public and private sector, and the original proposition, which is valid today in every respect, including demonstrated performance, was that the foundation should be equally funded by the two sectors.

At 30 June 1991 more than $15.7 million assistance had been made available to more than 2000 athletes, coaches and scientists from 46 organisations. In the current financial year a total approaching $4 million had been approved in grants.

Over the past 13 years the foundation has proved remarkably successful in identifying and supporting outstanding sports talent thus facilitating international success. New Zealand's record at international events in a multitude of sports bears that out.

In July 1991 the foundation again broke new ground in New Zealand sport, launching the lucrative $6 million Challenge to Sport. Under this incentive-based scheme, any individual or team, in selected sports, which wins a world championship or Olympic gold medal will stand to win between $25,000 and $150,000.

The foundation is committed to its objectives and will work with the Hillary Commission, the Olympic and Commonwealth Games Association, and National Federations and Associations representing non-Olympic sports for the betterment of New Zealand sport.

New Zealand running greats at opening of New Zealand Sports Hall of Fame, Wellington.

New Zealand Olympic and Commonwealth Games Association. The association is responsible for a number of programmes and initiatives that promote sport and elite competition for New Zealanders. It oversees the administration, selection, development and funding of teams from the 34 sports federations that compete at Olympic or Commonwealth level. In accordance with the international regulations for competition the association undertakes to test all its athletes for performance enhancing drugs.

Educational and promotional activities are a major part of the association's functions. A number of events are organised every year to celebrate the principles of mass participation and fair play, including the Olympic Day Run. Educational material is prepared for primary and secondary schools and the association provides an extensive library including a video section and archive with records and correspondence dating back to the first meetings of the International Olympic Committee.

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.

With the exception of the Lake Taupo Fishery, which is managed by the Department of Conservation, trout and salmon fisheries are managed by regional fish and game councils. These were established in 1990 and have taken over from acclimatisation societies.

Rainbow and brown trout are found in the lakes and rivers of the North Island, and the lakes of the South Island. The South Island also has sea-run brown trout in West Coast rivers, sea-run quinnat salmon in East Coast rivers and land-locked salmon.

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 to eight weeks depending on the fish and game region. By tradition the season starts on the first weekend of May.

There are few 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. The only exception to this is Sambar deer where hunting is regulated. However, commercial hunting operations have severely limited the numbers of some game animals (deer of several species, elk, chamois, and thar) 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 June to late October at ski areas in the North and South Islands. Many fields also have snow making equipment to ensure reliable snow depth and quality. New Zealand has 12 commercial ski areas, 12 club ski fields and one commercial cross-country ski area.

In the North Island the main skiing centre is Mount Ruapehu in the Tongariro National Park. There are two commercial ski fields, Whakapapa and Turoa, and one club field (Tukino) at Ruapehu, with the Maunganui ski club area on Mount Egmont in Taranaki.

In the South Island the commercial ski areas are Coronet Peak, the Remarkables (Queenstown), Cardrona, Treble Cone (Wanaka), Ohau, Mount Dobson (Aorangi), Porter Heights, Mount Hutt, Mount Lyford (Canterbury), and Rainbow Valley (Marlborough). There are 10 smaller ski club fields in the South Island.

The Waioru Nordic Ski Area on the Pisa Range near Wanaka offers 24 kilometres of cross-country skiing. Glacier skiing on the Tasman and Fox Glaciers, with access via ski-planes, is also available, while guided heliskiing and ski touring open up the Ben Ohau Ranges, the Harris Mountains, the Two Thumbs Range, the Mount Cook/Tasman Glacier area, Mount Hutt and Queenstown in the South Island and the Ruahine Ranges in the North.

The International Ski Federation (FIS) has sanctioned the holding of international ski competitions at Mount Hutt, Whakapapa, the Remarkables, Coronet Peak and Turoa, with Mount Hutt hosting the World Cup in 1990 and Continental Cups and FIS races being held annually.

Mountaineering and tramping. The nearness of mountains and forests to the main centres of population in New Zealand gives the opportunity for adventures away from civilisation. In the Waitakere and Hunua Ranges, near Auckland, the many national and forest parks and reserves of the North Island, and through the extensive parks and protected natural areas of the South Island, there are tracks through beautiful scenery. Tramping tracks range from half-day family oriented walks to challenging tramps in back-country and alpine isolation. Climbing (both rock and ice) is becoming more popular with many opportunities for this activity found throughout New Zealand. Information on mountaineering and tramping in New Zealand is available through commercial guiding companies or the Department of Conservation.

Steve Gurney, winner of Xerox Challenge race (North Cape to Bluff), at Bluff.

Walking. Since 1976, emphasis has been placed on establishing walking tracks in rural and urban areas throughout the country. The ‘walkways’ system offers walking opportunities over primarily private land and is a complementary system to the network of back-country tramping tracks. Walkways vary in length from half-hour walks to four or five days journeying for the St James Walkway in North Canterbury. In addition to ‘walkways’, government agencies and local authorities throughout New Zealand develop and maintain public walking tracks. Some of the more popular and adventurous tracks are the Milford and Routeburn Tracks in Fiordland, the Heaphy Track near Nelson and the Waikaremoana Track in the Te Urewera National Park, all of which take several days to travel.

The Abel Tasman Coastal Track is the most popular of the tracks with around 24,000 overnight visitors per year, while the Milford Track has around 10,000 overnight visitors annually. Next in the popularity stakes come the Routeburn, Kepler (located in Fiordland), Lake Waikaremoana and Heaphy Tracks.

Racing and gambling

Racing. There are thoroughbred and harness racing clubs in most cities and larger towns, as well as many smaller centres throughout New Zealand. 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.

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 available six days week. Sunday racing is legal, but only eight races a year may be held. ‘Pick 6’ (an off-course jackpot) is another recent innovation in racing gambling, with a $11,662 turnover in 1991.

Greyhound racing's traditionally small attendances and turnover have steadily increased since the 1980 extension of TAB betting facilities to greyhound meetings.

A minister for racing was appointed in 1990 and a ministerial committee set up to recommend how the performance of the industry could be improved. The report was released in July 1991 with many of the recommendations viewed as easy to implement. It is hoped that the proposed changes will reverse the current downturn in turnovers.

New legislation will be introduced to amend the Racing Act 1971. The necessary changes will be in force for the start of the racing season in August 1992.

Table 11.2. RACE MEETINGS*

  GallopingTrottingGreyhounds
199019911990199119901991

* Full totalisator meetings only, for years ended July.

Source: Totaliser Agency Board.

Race meetings 34835223523899100
Stakes$(000)35,65831,10619,05318,917699925
On-course turnover$(000)103,30096,70265,60164,5793,2023,118
T.A.B. turnover$(000)550,107525,518248,462244,66439,56240,762
Total dividends$(000)513,996489,457247,106243,31333,62834,505

Instant Kiwi scratch prize tickets.

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.

The Act distinguishes between four forms of gambling: games of chance (housie and gaming machines); bookmaking and betting (other than betting on horse racing and greyhound racing); prize competitions (pick score competitions); and lotteries (raffles). Horse and greyhound racing is controlled through the Racing Act 1971 (see above).

During 1990 a ministerial review of gambling in New Zealand was undertaken. The recommendations of this review will form the basis of future legislation for gambling in New Zealand.

The review recommended an indepth study concentrating solely on Gaming Machines. This study, completed in June 1991 though not yet published, is expected to form the basis of the future of Gaming Machines in New Zealand. Statistical information gathered for the initial review shows there are an estimated 6000 machines sited at 2100 venues (hotels and clubrooms) throughout the country. Turnover is estimated to be over $650 million though subsequent evidence suggests this is a conservative estimate.

The estimated turnover of gaming machines exceeds the turnover of the New Zealand Lotteries Commission from the sale of Lotto and Instant Kiwi. For the year ended 30 June 1991 the turnover of the New Zealand Lotteries Commission was $533.7 million.

The Casino Control Act 1990 established the Casino Control Authority whose task it is to consider and to grant casino licences. Initially two casino premises licences will be granted; one in the North Island and another in the South Island. Thirteen expressions of interest have been accepted by the Casino Control Authority. Formal applications will be called for sometime in the future.

Table 11.3. ALLOCATION OF LOTTERY PROFITS

Recipient1988-891989-90*1990-91

* These allocations are for the fifteen month period from April 1989 to 30 June 1990.

† DC is an abbreviation for ‘Distribution Committee’.

Source: Department of Internal Affairs.

 ($ million)
Hillary Commission6.810.6513.75
Arts Council9.7513.37516.4
Film Commission3.758.57.4
Lottery General DC†16.1549.727.0
Community Facilities DC†-11.013.5
Lottery Welfare DC†3.38.510.0
Lottery Aged DC†1.452.43.0
Lottery Youth DC†1.32.9125.0
Health Research DC†1.12.453.5
Science Research DC†0.71.753.5
Science Centres Sub-committee--7.5
1990 Community Projects1.04.52.0
Ministry of Internal Affairs Discretionary Fund6.15516.6153.45
                    Total51.455132.3116.0

11.2 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.

The 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 $4,251 million for the year ended 31 March 1990.

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 11.4. EXPENDITURE BY TOURISTS FROM SELECTED COUNTRIES, 1990*

Country of residenceTotal travel expenditure†Mean expenditure per personMean expenditure per day

* New Zealand International Visitors' Survey 1989-90.

† Excludes international airfares. Includes pre-paid, cash and credit card spending during respondents' visit to New Zealand.

Source: New Zealand Tourism Board.

 $$$
Australia446,381,9241,47596.78
United States253,557,6601,917125.96
Japan251,924,1772,572201.89
United Kingdom168,280,3062,25563.10
Canada60,204,8131,94179.63
West Germany66,806,9972,86887.61
Singapore33,363,3412,663133.93
Other countries389,729,4462,25870.37
                    All countries1,672,248,6651,97393.63

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.

MORE TRAVELLERS
Visitors per 1000 population

Some facilities have been developed specifically for tourism, both international and domestic; others are dual purpose facilities, either consciously developed for use by residents and visitors, or developed into tourism attractions; while there are also community facilities.

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 1990, 21.9 percent were spent in a hotel/motel with restaurant and 2.9 percent were spent in a motel without restaurant.

The use of private homes by international visitors accounted for 47.8 percent of total person nights, and campervans and caravans absorbed 6.5 percent of all person nights for the year ended March 1990.

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. 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.

In order of use, rental car (23.4 percent); organised coach tour (18.1 percent); and private car (18.5 percent) are the three most favoured means of internal transport for international visitors. Holiday/vacation visitors favour organised coach tours (22.8 percent) or rental cars (26.2 percent). Those visiting friends and relatives make much greater use of private cars (51.3 percent) compared with holiday visitors (10.0 percent). Business travellers prefer rental cars (22.3 percent) and private cars (20.8 percent). An increasing number of holiday visitors use campervans (10.5 percent) as their main transport type. Most visitors use several modes of transport.

International visitors

Just under 1 million overseas visitors now arrive in New Zealand annually. Visitor arrival numbers grew by 3.6 percent in the year ended 31 March 1991, compared with 7.6 percent in the previous year. There has been a growing diversification of countries from which overseas visitors originate.

Table 11.5. NUMBERS OF INTERNATIONAL VISITORS

Year ended 31 MarchHolidayStay with friends and relativesBusinessOther*Total
* Includes work or working holiday, formal education, stopover, and unspecified.
19832579101147595807456915487658
19842858451167936125054553518441
19853419841275866826959156596995
19864040361404817466169895689073
19874410811576197608788422763209
198845583419493288215116511855492
1989439249207333100224120716867522
1990464545224875109110134901933431
1991491591238034103899133538967062

Table 11.6. COUNTRY OF LAST PERMANENT RESIDENCE OF INTERNATIONAL VISITORS

CountryYear ended March
19901991
Australia327459343299
United States136946139030
Japan100348105716
United Kingdom7852887963
Canada3226833545
Germany2486532171
Singapore1476715251
Taiwan1493911049
Hong Kong1609216114
Sweden83338288
Malaysia79539783
Switzerland991611298
Netherlands72927624
Fiji74667512
Indonesia42904898
France39063829
Tahiti (French Polynesia)37733997
Papua New Guinea26412853
South Africa17671967

OVERSEAS VISITORS
Total numbers

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 1989–90, New Zealanders made 10.3 million trips away from home which included at least one night away, and spent 41.4 million person nights away.

Table 11.7. DOMESTIC TRAVEL DESTINATIONS

RegionYear ended March 1989Year ended March 1990
ProportionVisitorsProportionVisitors
Source: New Zealand Tourism Board.
 percentno. (000)percentno. (000)
Northland6.829098.23423
Auckland13.4572015.86574
Thames Valley6.126124.71982
Waikato5.322835.42274
Bay of Plenty9.540517.43094
East Cape1.87712.41008
Tongariro4.218193.31393
Taranaki2.912472.41018
Wanganui2.812142.1884
Manawatu3.3214213.01247
Hawkes Bay4.619804.21774
Wairarapa1.25421.0429
Horowhenua1.56462.0859
Wellington6.628056.22,596
Nelson Boys2.511103.51487
Marlborough3.213701.8754
Canterbury9.440209.33885
Aorangi2.410392.81199
West Coast2.39832.3979
Coast/North Otago3.213853.81604
Clutha/Central Otago4.519494.51886
Southland198252.51072

Promotion of tourism

New Zealand Tourism Board. The national tourism board is responsible for the co-ordinated marketing and promotion of New Zealand overseas as a tourism destination. It also encourages and stimulates domestic tourism operation, provides research services and media and market support liaison. The tourism board maintains eight overseas marketing and promotion offices. These are located at Sydney, Singapore, Hong Kong, Tokyo, Frankfurt, London, Los Angeles and Vancouver. Five regional offices within New Zealand are located at Auckland, Rotorua, Wellington, Christchurch and Queenstown for the purposes of maintaining close links with tourism operators.

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.

Bungy-jumping.

Contributors

  • 11.1 Hillary Commission for Sport, Fitness and Leisure; New Zealand Amateur Arts Assembly; Ministry of Youth Affairs; New Zealand Assembly for Sport; New Zealand Sports Foundation; Department of Conservation; Office of the Minister for Racing; Totaliser Agency Board; Department of Internal Affairs; Lotteries Grants Board.

  • 11.2 New Zealand Tourism Board; New Zealand Tourist Industry Federation.

Further information

Recreation and sport

Freshwater Catch. Ministry of Agriculture and Fisheries (quarterly).

Life in New Zealand. Hillary Commission for Recreation and Sport, 1990.

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

Welding, Wellington.

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 produces labour-force information every three months, based on a current sample of approximately 16,000 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.

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. The Household Labour Force Survey (HLFS), in accordance with International Labour Organisation (ILO) guidelines, includes part time workers in the labour force. The definition of part time work, is ‘less than 30’, in line with the Department of Labour's definition. These definitions also apply to statistics from the 1986 census.

The 1986 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 population†Labour 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
1990-Mar836.666.9315.91219.474.17.4
          Jun829.673.2320.01222.773.88.1
          Sep825.672.6327.51225.873.38.1
          Dec833.983.4313.31230.674.59.1
1991-Mar825.592.1320.91238.474.110.0
          Jun814.495.5330.51240.473.410.5
Female
1990-Mar634.748.8592.91276.553.57.1
          Jun646.245.6587.71279.454.16.6
          Sep638.449.3594.51282.353.67.2
          Dec643.156.5587.91287.554.38.1
1991-Mar638.068.3588.51294.854.59.7
          Jun637.766.7592.31296.754.39.5
Total
1990-Mar1471.3115.7908.92495.963.67.3
          Jun1475.7118.8907.62502.163.77.4
          Sep1464.1121.9922.12508.163.27.7
          Dec1477.0139.9901.22518.164.28.7
1991-Mar1463.5160.4909.42533.364.19.9
          Jun1452.0162.3922.72537.063.610.1

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 1616,042 at the 1961 census to 2,468 301 at the 1986 census, a growth during the period of 852,529 or 52.7 percent.

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 674,578 at the 1961 census to 938,613 at the 1986 census, an increase of 264035 or 39.1 percent. There was an extremely high level of growth in the female labour force, which grew from 240,134 to 670,002, 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.

Table 12.2. AGE AND SEX OF THE LABOUR FORCE, 1986 CENSUS*

Age group (years)MalesFemales
Fulltime 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.
15-19815431781182.1677852148975.9
20-24122448730594.4900631388486.6
25-29120876511595.9611552317872.5
30-34112158424296.4462663226258.9
35-39111603378996.7524793495060.0
4CM489424292296.8472802544365.0
45-4976992280296.5407011996567.1
50-5465751278195.9292381515365.9
55-5962538365494.5201181147563.7
60 and over336781116675.18820830151.5
                    Total877017615%93.446389920610369.2
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 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.

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.

Christchurch small business operators in their biscuit and confectionery manufacturing plant.

LABOUR FORCE
PARTICIPATION RATES

Population aged 15 years and over

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 Advisory Council on the Employment of Women (NACEW). The National Advisory Council on the Employment of Women is composed of a chairperson and 14 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, the Department of Labour, Ministry of Education, Ministry of Women's Affairs and the Ministry of Youth Affairs.

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. In connection with this goal, NACEW has co-ordinated a nationwide series of forums regarding the employment and training needs of women with disabilities.

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 Working Group on the Implementation of Equity in Employment, i.e.: the Select Committee on the Employment Contracts Bill and the New Zealand Qualification Authority.

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 has recently completed a major research project on women's participation in the labour market.

Upper Hutt apprentices advertise for work.

LABOUR FORCE PARTICIPATION RATES
Percentage, by age and sex*

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.

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†
1-4286229432.81113910677−4.1
5-966721103465.4248042751910.9
10-145400834054.427504296887.9
15-193804730592.0283533151811.2
20-2477671111843.142483442864.2
25-293891561344.325509261752.6
Not specified1809‡264045.95790‡2352−59.4
                    Total, part-time32205‡4899652.1165582‡1722214.0
Full time labour force†
30-34116611799154.3351363940512.1
35-396621959016−10.982974876815.7
40-44416241367122−11.81929812100458.8
45-4910648512485417.31481130021102.7
50-54868359911414.198281890392.3
55-59257883607839.932827065115.3
60-6449734524705.56081967859.2
65-6993271256734.79512037114.2
70-74162901841413.02517400259.0
75 or more248852859314.95664997276.1
Not specified16476‡2511052.45286‡18054241.5
                    Total, full-time829929‡8413291.4359505‡43686321.5
                    Total8621348903253352508760908416.0

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.

MALE EMPLOYMENT BY INDUSTRY
Full-time work-force only

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 in family businessUnemployed and seeking workNot specifiedTotal
* Persons resident in New Zealand working one or more hours per week, plus persons unemployed and seeking work.
Males
15-19231792793235401820426499357
20-241842610811078735410287378129753
25-29667213302996753125529504125991
30-341188315963842253483417567116403
35-391537517121794493902505555115395
40-44137401403761914357181847792346
45-49115171210553970330149437879794
50-5487091003547607351150033368532
55-597365966046584357191731266189
60-64393055501757456194818628746
65 and over26705007686467866321916104
                    Total839281096836879754575482794176938610
Females
15-19159267694382941893618089274
20-2480119088965861210743225103944
25-2923824260678481638791728284327
30-3439786006591092316677734278528
35-3951067011667832454562844787429
40-4444585688566611848371435772726
45-4935434602479161467285627960663
50-5423553480352111056208819844388
55-591503259525071828143116531593
60-64672119783885405019311394
65 and over44498734354323211115724
                    Total254043800152951213491609122676670002

A notable observation which can be made from studying Table 12.4 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. 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. 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.

FEMALE EMPLOYMENT BY INDUSTRY
Full-time work-force only

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.

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 distribution†NumberPercentage 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 fishing15275410.916163410.95.8
Mining and quarrying47310.359970.426.8
Manufacturing32108123.031620321.3−1.5
Electricity, gas and water153061.1157291.12.8
Building and construction882606.31020366.815.6
Wholesale, retail, restaurant25252818.129213119.715.7
Transport, storage communication1107337.91109767.50.2
Finance, insurance, property972337.01229468.326.4
Community, social35459725.435773524.10.9
Not adequately defined5025314025−72.1
                    Total1447479100.01499421100.03.6

Home-worker, Auckland.

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
NumberPercentage distribution†NumberPercentage 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, technical20032214.722493415.112.3
Administrative, management463713.4740705.059.7
Clerical23169317.026211317.613.1
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 time†Part 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
     Male11059213.3532511.195.4
     Female7988118.32913617.073.3
Administrative, management
     Male598897.211852.598.1
     Female103772.426221.579.8
Clerical
     Male646357.825715.396.2
     Female15100534.84390525.677.5
Sales workers
     Male743138.9647113.592.0
     Female4741210.92393414.066.5
Service workers
     Male496236.0564011.789.8
     Female5091611.74362325.553.9
Agricultural, animal husbandry and forestry workers, fishers and hunters
     Male10932913.1772516.193.4
     Female307027.1147608.667.5
Production, transport equipment operators and labourers
     Male36457843.81917639.995.0
     Female6317714.6132037.782.7
Not adequately defined
     Male837690090.3
     Female3399104176.6
                    Total, male841335100.048996100.094.5
                    Total, female436866100.0172221100.071.7

12.2 Unemployment

There are three main sources of unemployment data in New Zealand:

  • The Department of Statistics' Household Labour Force Survey;

  • 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. 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.

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.

UNEMPLOYMENT
Registered unemployed including vacation workers

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 Maori†Pacific Island Polynesian†European 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’.

15-17614436.996338.51825524.411423.92547627.0
18-19309020.961219.5790210.46011.91166412.4
20-24602118.1100212.7138877.31209.8210309.0
25-34588612.5146710.0161314.71567.7236405.8
35-4423947.97357.0104553.2815.3136653.7
45-5412966.54117.861802.7513.879383.1
55-593576.61059.128503.1365.533483.4
60-641146.8307.912933.4124.014493.6
65 and over8112.02125.98614.1217.69844.5
Total2538614.9533411.7778175.66547.81091916.8

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
Number†PercentageNumber†Percentage

* 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 qualifications‡269496.12952310.947.7
School Certificate, 1 or 2 passes44884.9705310.238.9
School Certificate, 3 or more passes47613.976297.338.4
Sixth Form Certificate, Endorsed School Certificate20103.536996.835.2
University Entrance, Matriculation37713.760426.538.4
Higher School Certificate, Higher Leaving Certificate18393.522147.245.4
University Bursary, Scholarship32587.1293711.152.6
Other§2433.57298.025.0
Not specified9605.910899.646.9
                    Total482795.1609129.144.2

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.

The Education and Training Support Agency has taken over responsibility for the ACCESS training scheme, the apprenticeship system and other aspects of vocational training from the Department of Labour. The Career Development and Transition Education Service has assumed 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 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

The Education and Training Support Agency was established under the Education Amendment Act 1990. The purpose of the agency is to develop and administer programmes relating to non-institutional labour market education and training. In particular, the agency focuses on upskilling those groups and individuals whose needs are currently not well served by traditional labour market institutions and who respond to training with a clear labour market focus.

The establishment of the agency signalled the transfer of responsibility for such training from the Department of Labour to the post-compulsory education sector. Accordingly, the agency spans the bridge between the worlds of education and work. The agency reports directly to the Minister of Education through its board of directors.

The agency is currently responsible for the implementation of three major training schemes; the ACCESS Training Scheme, the Apprenticeship Scheme and the Primary Industry Cadet Scheme. It is also seeking to diversify its training options in order to meet the needs of existing and emerging industries.

The agency is headed by a board comprised of industry and community representatives, appointed by the Minister of Education. The board operates under charter to the Minister and is funded through Vote: Education. Annually, the board negotiates for funds and agrees to achieve particular results for the funding provided.

ACCESS Training. The agency administers and monitors the implementation of the ACCESS Training Scheme, a targeted programme designed to provide training opportunities to people who are disadvantaged in the labour market.

In December 1990, the 21 Regional Employment and ACCESS Councils (REACs) which formerly managed the scheme at local level were disestablished. Their decision making responsibility has been taken over by the agency's regional offices who make decisions on the basis of regional strategic plans.

An average of 13,816 training places were made available throughout the training year to 30 June 1991. Twenty two percent of all trainees achieved employment and 33 percent undertook further progressive training. The relative disadvantage of ACCESS trainees is demonstrated by the fact that 80 percent of trainees had fewer than three School Certificate passes or equivalent.

Apprenticeship. The agency is charged with administering and servicing the arrangements for apprenticeship training, in accordance with the Apprenticeship Act 1983. The agency advises and services 36 National Apprenticeship Committees and works closely at both national and local level with industry groups and those providing off-job training. The system covers 38 main trades, incorporating 150 trade branches.

Typically, contracts are for 8000 hours (4 years), although recent emphasis on apprentices meeting prescribed standards of competency mean shorter training periods are now possible. Most contracts required apprentices to undertake off-job training, usually in polytechnics.

Under the new structural arrangements for education and training generally, trade qualifications will be validated by the New Zealand Qualifications Authority.

The total number of new contracts for the year to 30 June 1991 was 4856. This compares with 6129 for the previous year. The total number of apprenticeship contracts in force was 18,159, a 10 percent drop compared with the previous year.

Sheet metal apprentice, Dunedin.

Table 12.1. APPRENTICESHIP CONTRACTS IN SELECTED INDUSTRIES*

IndustryContracts begun during yearCompleted during yearTotal in force

* Year ending 30 June 1991.

Source: Education & Training Support Agency.

Carpentry5698762531
Electrical3966381654
Engineering4735881583
Hairdressing7814152113
Motor6776932716
Plumbing163269557
Printing131188475

Primary industry cadet schemes. Primary Industry Cadet Schemes are the rural equivalent of apprenticeships and offer the only opportunity for supervised on-job training in the primary industry. The schemes are industry controlled and rely heavily on voluntary input. The schemes are designed to provide entrants to the industry with the skills necessary to pursue a career in the primary industry. Training also includes study towards a national qualification.

Over the year ending 30 June 1991 a total of 2061 cadet training places were available. They were distributed among the four schemes as follows: Horticulture, 320; Pork, 29; Farming, 1288; Equine, 424. A fifth scheme, the Forestry Cadet Scheme was established in late June 1991.

Quest Rapuara—The Career Development and Transition Education Service

The purpose of Quest Rapuara is to ensure the provision of high quality services that will help people to make appropriate educational and work-related plans and choices.

This Crown Agency was established in July 1990. It is chartered to the Minister of Education who appoints a board to oversee its work. Quest Rapuara has a contract with the Ministry of Education to deliver a range of services to agreed consumers. The charter also allows the agency to negotiate contracts with other organisations, both public and private.

The Career Development & Transition Education Service

Quest Rapuara is the major career information broker in New Zealand. Its principal services are:

Career information—it researches, produces and distributes occupational, training and labour market information packaged in a variety of ways: leaflets, books, posters, kits, software and videos.

Training—it helps trainers and educators run effective career development and transition education programmes.

Career counselling and advice—it provides counselling and other services which help people to make choices about education, training and work.

Consultancy—it works alongside other career development professionals and helps them to deliver more effective programmes and services to their own people.

In February 1991, the Quest Rapuara Database of Job, Course and Training Information—a software package—was released to the public. It contains descriptions of approximately 500 jobs and 2000 courses. Over 250 packages were sold in the first six months to educational institutions and other organisations.

Quest Rapuara has an infrastructure of nine districts covering the whole country with 23 offices.

Employment assistance measures

New Zealand Employment Service. This division of the Department of Labour provides free nationwide employment services to job-seekers and employers through 64 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 Plus—this scheme was introduced in July 1990 and replaced the wage subsidy options of the Job Opportunities Scheme. It helps long-term unemployed or otherwise disadvantaged job seekers into permanent full-time employment through partial subsidies to employers for a fixed duration of up to one year. Eligible job seekers need to be registered as unemployed with NZES for at least 26 weeks. The actual subsidy level is negotiated by the NZES centre with the employer for each individual job seeker.

Enterprise Allowance—this programme helps unemployed job seekers into self employment by supplementing their business income during the initial stage of establishing their enterprise. Eligible job seekers need to be registered as unemployed with NZES for at least 15 weeks. Most Enterprise Allowance clients are registered for 26 weeks or longer. The actual allowance rate is negotiated by the local NZES centre with each individual job seeker. Job seekers may also be eligible for a Business Training and Advice Grant of up to $500.

Work Focus Interviews—these are intensive interviews for job seekers reaching six and 12 months registration with NZES. They aim to place the job seeker into work, re-focus the job seeker on NZES' services, improve and update information about the job seeker, and refer clients to appropriate agencies or programmes which will improve their chances of finding work.

Community Taskforce—this is a pilot programme which provides work experience for job seekers who have been registered continuously as unemployed for at least 26 weeks. Community Taskforce aims to provide job seekers with skills and work habits to improve their chances of finding unsubsidised work. It also enables projects of community benefit to be undertaken. Sponsoring organisations provide work experience for job seekers for three days a week, lasting up to six months. Participants will continue to receive income support benefits (if eligible) while on a project and are paid an allowance of up to a maximum of $15 per week, subject to attendance, to go towards the cost of participating on the project.

Job Link—this is a pilot programme which provides work experience opportunities of up to four weeks in mainstream workplaces for job seekers who have been registered as unemployed continuously for at least 26 weeks or who face physical, psychological or social barriers to returning to work. The objective of Job Link is to improve job seekers' chances of finding employment by showing that they can work in a normal workplace. Participants are not paid by the sponsor but continue to receive the unemployment benefit (if eligible) while on Job Link.

Job Clubs and Job Search Seminars—Job Clubs are for clients registered with NZES. They are run over a two-week period for four days a week. Job Clubs teach telephone skills, interview techniques, curriculum vitae preparation and many other job seeking skills. Job Search Seminars are very intensive one-day seminars on job search techniques.

Taskforce Green workers, Oamaru

Group Development Assistance—this is a small fund assisting individual projects targeted at people with, or at risk of, gang association, criminal records and drug and alcohol abuse problems. The projects aim to help participants find work or undertake training at the end of the projects. Grants are paid to sponsoring organisations, not to participants.

Modification Grant—this assists job seekers with disabilities into employment and helps an employer to recruit a person with disability who is right for the job. The grant funds modifications to the workplace, equipment or access to enable the person to work to his or her full ability.

Group Employment Liaison Service—this service assists NZES centres to deal with especially disadvantaged job seeker clients and encourages such job seekers to take advantage of the services of the Employment Service and other government employment and training programmes.

Women's Employment Project Fund—this fund assists NZES centres to develop projects to improve the placement rate of women job seekers or help them become ready for work. The particular groups of women job seekers targeted are Maori women, Pacific Island women, women with disabilities, women returning to paid work and women wanting to get into non-traditional work areas.

Student Job Search—New Zealand Employment Service funds Student Job Search to provide specialist placement services for tertiary and intending tertiary students over the summer vacation period. This organisation, managed by students associations, operates in 11 major cities.

Employment and training for Maori and Pacific Island Polynesians. Maori input to government employment and training policies is co-ordinated by the Ministry of Maori Development (see also section 5.4).

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 Ministry of Maori Development and administered at a local level by tribal regional authorities.

Community Employment Group. This group was announced in the 1991 Budget and is formed from an amalgamation of the Community Employment Development Unit, the Group Employment Liaison Service of the Department of Labour and the Alternative Employment Programmes of the Department of Internal Affairs. Fifty nine Community Employment Advisers organised in five regional teams are supported by 24 centrally based staff. The Community Employment Advisers work in conjunction with government agencies, local government, community organisations, business groups, education groups, trade unions and unemployed people to assess and develop employment strategies to meet local needs.

The function of the group is to encourage and assist communities and organisations in the development and establishment of new employment initiatives through information dissemination, brokerage, facilitation and networking, and to transfer the benefits of previous successful initiatives to other communities and organisations.

The unit publishes the monthly journal Employment Matters and practical guides, information bulletins and case studies of successful projects. It assists communities to hold planning forums and identifies and facilitates specialist advice on project proposals.

Through the “Be Your Own Boss” programme a network of community organisations under contract to the Department of Labour provide an integrated package of advice, training and support to unemployed people wishing to explore self employment as an alternative to employment. The community Employment Group has the responsibility for administering this programme.

The Community Employment Assistance Project Fund enables the group to provide small grants to community organisations to help further their employment projects.

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 workOther†Total

* 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‡
     Male250555081464014016220238880
     Female118843683888624879615075474
2,501-5,000
     Male1107357910611752441423232
     Female12664230449948337170760537
5,001-7,500
     Male2400686723370947182242930
     Female23915298619838244167179587
7,501-10,000
     Male39271016744610486673264299
     Female28895298757866114123691320
10,001-15,000
     Male116432400914490657661383187716
     Female5754789614027444041371159696
15,001-20,00
     Male12318204511598311386900194886
     Female3705381096873648579105609
20,001-25,000
     Male1115413530122112528552147870
     Female243320614098017727945936
25,001-30,000
     Male897082477842025835796252
     Female16561092144726312017403
30,001-40,000
     Male1075269065691918032175078
     Female14949275607271208181
40,001 and over
     Male163265844226177831545174
     Female13297561137211593405
Not specified
     Male282345759936419776522293
     Female1293226285207995277522848
                    Total, males83925109683687975482768748938610
                    Total, females25401380045295156091516167670002

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 $15,000-$20,000, 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.

Table 12.12. INCOME BY WORK STATUS, 1986 CENSUS*

Income group and sexFull time in labour force†Part 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
     Male17,9345,30115,25838,49
     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
     Male176,67311,04035,892223,60
     Female133,66526,03453,811213,510
15,001-20,000
     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

The Quarterly Employment 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.

A full coverage of the survey is undertaken in February with sample surveys being carried out in May, August and November.

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).
 $  $  
1989—Aug485.18516.52
          Nov494.28529.98
1990—Feb505.99543.76
          May509.96547.71
          Aug515.16548.57
          Nov521.25557.48
1991—Feb529.40563.47
          May531.78563.22

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—$
     Males14.8217.5619.2716.1214.8015.65
     Females11.7713.3514.7512.4413.6512.76
     All persons13.6115.9616.5615.4014.4814.40
Weekly earnings—
     Males553.12671.43734.37607.54552.05586.71
     Females413.63495.88552.10427.74467.76457.38
     All persons495.95603.29624.27569.60526.90529.40

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 percentage 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 Guaranteed Retirement Income 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 1991 quarter are specified below:

Highest 20 percent$42,000 and over
Second highest 20 percent$31,600 and under $42,000
Middle 20 percent$24,800 and under $31,600
Second lowest 20 percent$18,300 and under $24,800
Lowest 20 percentunder $18,300

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.

REAL DISPOSABLE INCOME INDEXES
Full-time wage and salary earners

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 from the June 1990 quarter Family Support for two parent families is paid to the primary care-giver, whereas previously it was divided between both parents. As a significant proportion of spouses receiving Family Support are not full time wage and salary earners, the series for these groups do not reflect the full impact of the scheme on families.

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 percentage of total gross income from all sources.

Real disposable income indexes†
1989—Sep930−2.0942−0.410657.09822.0
          Dec938−2.0952−1.21077−1.2992−1.4
1990—Mar950−2.1964−1.41090−1.21005−1.5
          Jun937−1.9952−1.61081−1.2995−1.4
          Sep926−0.49450.310740.89860.4
          Dec929−1.0949−0.310770.0990−0.2
1991—Mar932−1.9952−1.21079−1.0992−1.3
          JunP922−1.6945−0.71075−0.6986−0.9
Average gross income indexes‡
1989—Sep24005.124265.524765.424425.4
          Dec24605.924896.525426.625066.5
1990—Mar25245.625526.226016.325696.2
          Jun25497.125736.926236.825916.9
          Sep25466.125776.226326.325946.2
          Dec25885.226195.226735.226365.2
1991—Mar26173.726463.726943.626613.6
          JunP25901.626322.326872.426482.2
Average tax rates (percent)§
1989—Sep16.8 22.8 27.8 24.3 
          Dec17.0 23.0 28.0 24.5 
1990—Mar17.4 23.2 28.1 24.7 
          Jun17.9 23.5 28.0 24.8 
          Sep17.9 23.5 28.1 24.8 
          Dec18.1 23.6 28.1 24.9 
1991—Mar18.3 23.6 28.2 25.0 
Average tax rates above and below this line relate to different database samples and the series is therefore discontinuous at this point.
1991—Mar17.8 23.6 28.4 25.1 
          Jun17.8  23.7 28.4 25.1

Wage indexes

Prevailing Weekly Wage Rates Index. This index measures changes in ‘as paid’ wage and salary rates for full time adult employees whose minimum pay rates were at least nominally covered by an award or agreement registered with the Arbitration Commission in the base period of the index.

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 falls.

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
1989—Sep1351141213811365
            Dec1356141913971374
1990—Mar1382144014081394
            Jun1403147214211413
            Sep1411149114451427
            Dec1414149514611435
1991—Mar1426150614701446
            Jun1437151714751455
Percentage change from same quarter previous year
1989—Sep3.54.82.83.3
            Dec3.74.14.03.8
1990—Mar3.94.74.64.2
            Jun4.25.44.04.2
            Sep4.45.64.64.5
            Dec4.35.44.64.4
1991—Mar3.24.64.43.7
            Jun2.43.13.83.0

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 have generally been established on an individual employee basis and have not been subject to the provisions of any award or registered agreement.

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.

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 and the privatisation of government organisations 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 industries have been progressively revised.

The Employment Contracts Act came into force on 15 May 1991. The Prevailing Weekly Wage Rates Index is continuing to be calculated and published for the same group of employees that was previously covered by the index. That group is employees whose minimum rates of pay were ratified by the Arbitration Commission at the base period of the index. This will be reviewed when the effects of the new legislation becomes apparent and a more appropriate coverage can be defined.

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) in the base period of the Index.

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.

An annual series has replaced the quarterly series. This series measures the movement in minimum rates of pay from one September quarter to the next. A revision which included a comprehensive review of the representative sample of job descriptions and their relative importance within the regimen of the indexes has also been carried out.

The index is published for the five ‘all industries’ and ‘all occupation groups’ combined series currently available, and has an new expression base of the September 1988 quarter (= 1000). The index numbers are not revised after publication.

The introduction of the Employment Contracts Act has major implications for the Nominal Weekly Wage Rates Index. This series is under review and a decision regarding its future will be forthcoming.

12.5 Labour relations

The New Zealand system of industrial relations had developed from the British tradition of occupationally-based unions and relativity-linked wages and conditions. Criticisms of this system were that it promoted:

  • A conflict-based, rather than a co-operative approach to industrial relations.

  • No real choice to employees about whether they wanted to be represented in bargaining and what sort of representation they wanted, but a requirement to accept a particular union as their representative.

  • Monopoly rights of representation of particular groups of workers for unions through a statutory registration procedure.

  • Widespread compulsory union membership.

  • Negotiations which bound all employers and employees in an industry or occupation, whether or not they were represented in or knew about the negotiations.

By 1990 it was considered that the system had become outmoded, inflexible and over-regulated. Deregulation during the 1980s had removed many long-held privileges in other sectors of the economy and encouraged competitiveness. In the labour market by comparison, the pattern of collective bargaining was based on historical practice. In the face of changing economic conditions characterised by rising record unemployment and declining real wages, awards were seen by many as inflexible in relation to specific enterprise and industry needs. Employers and employees did not have the freedom to determine their own employment arrangements and bargaining outcomes could not reflect the commercial reality of the work place.

On 15 May 1991 the new Government repealed the Labour Relations Act 1987 and enacted the Employment Contracts Act.

Employment Contracts Act 1991. This Act provided a fundamentally different framework for the conduct of industrial relations. Rather than being based on a conflict model of industrial relations, it is based on two quite different assumptions:

  • Employers and their employees have a mutual interest in maintaining the wealth and profitability of their enterprises.

  • Employers and their employees are in the best position to make decisions on what arrangements should govern their employment relationship.

To achieve these ends, the Act removes union monopolies over coverage and bargaining and gives employees the right to decide whether or not they wish to belong to an employees organisation, such as a union, and the right to choose who, if anybody, they want to represent them. It aims to encourage bargaining outcomes that are relevant to the work place and enables employers and employees to negotiate either individual or collective employment contracts directly.

In particular the Act provides for:

Freedom of association and voluntary union membership—employees can determine for themselves whether or not they wish to join any form of employees organisation, such as a union, and they are protected from undue influence in making that decision. No one, including employers, is able to compel any employee to join a union or to stop those who want to join from doing so. Unions are free to play a full role as employees organisations, but they no longer have automatic and exclusive rights to cover work places, nor compulsory membership. The process of registration of unions is not now a feature of industrial legislation. Unions are now treated as societies incorporated under the Incorporated Societies Act 1908.

New bargaining arrangements—there is no longer an annual ‘wage round’ where workers, unions and employers used to renegotiate the wages and conditions in their specific industry or occupation each year. Neither does the Tripartite Wage Conference take place as it had done in previous years before the annual wage round. Wage fixing is now by comparison completely decentralised. The emphasis is instead on employers and employees having a direct say in bargaining, using bargaining arrangements appropriate to their organisation and taking responsibility for their own agreements. In particular:

  • Every employer has an employment contract with every employee, either an individual contract or a collective contract (legally speaking, this has always been the case).

  • Employees and employers have the right to authorise another person, group or organisation to represent them in negotiations for an employment contract.

  • Bargaining agents must establish their authority to represent their employee or employer client and that authority must be recognised by the other party.

  • Anybody may act as a bargaining agent, provided they have not been convicted of an offence punishable by 5 years or more in prison, within the last 10 years.

  • Employees are required to formulate, together with their bargaining agent, an agreed procedure for the ratification of any settlement negotiated by the agent.

  • Prospective and authorised agents have limited rights of access to employees in the work place in order to assist the process of negotiation where the employer agrees and where normal operation of the work place is not disrupted.

  • Authorised agents may become party to an employment contract when the employer, employees and agent concerned all agree.

The bargaining arrangements give employers and employees maximum latitude to negotiate about any matter they choose, including their bargaining arrangements. Within this framework employees have the ability to negotiate individual contracts, and employers have the ability to negotiate single employer arrangements. Collective contracts may be negotiated between any number of employers and employees, and will only bind those who agree to be included. The parties may agree to include a clause in a collective contract that new employees are permitted to join the contract, with the agreement of the new employee at the time the employment commences.

Those covered by awards and agreements made under the Labour Relations Act became covered by collective contracts under the new Act. When those awards and agreements expire, employees covered by them are covered by an individual contract based on the expired award or agreement. New collective or individual contracts are able to be negotiated to replace the old award or agreement.

Wellington Trades Hall building.

Procedures for dealing with personal grievances—an employee may claim a personal grievance against an employer for unjustifiable dismissal, other unjustifiable action by the employer, discrimination, sexual harassment, and duress in relation to membership or non-membership of an employees organisation. All employment contracts must contain an effective procedure for the settlement of personal grievances. This can be the standard procedure as set out in the First Schedule to the Act, or another procedure not inconsistent with the standard one. These procedures are now available to all employees, not just union members as was the case previously. The application of the procedures is not able to be frustrated by the deliberate lack of co-operation on the part of any person. Depending on the circumstances of each case, the remedy in the case of a proven grievance can include reimbursement for lost wages, reinstatement, and compensation for humiliation, loss of dignity and injury of feelings.

Enforceable rights and obligations—all employment contracts must contain a procedure for the settlement of disputes about their application, interpretation or operation. It is the responsibility of the individuals bound by any employment contract to enforce their rights under the contract, as well as their rights under the Act. The Act requires employers to keep a wages and time record for each employee and provides for the recovery of unpaid or underpaid wages.

Penalties may be awarded for any breach of any provision of the Act or for breach of any employment contract. Individuals are liable to a penalty up to $2,000, companies and other corporate bodies can be fined up to $5,000. However, the primary remedy for a breach of any employment contract or of any provision of the Act is an order for compliance. This is an order made by, depending on the circumstances, either the Employment Tribunal or the Employment Court to require someone to comply with their legal obligations.

The Act deals with harsh and oppressive contracts. It enables employers and employees to ask the Employment Court for help if they believe their employment contract or any part of it was obtained as a result of harsh or oppressive behaviour, undue influence, or duress, or is itself harsh or oppressive.

In enforcing their rights under an employment contract or any other relevant Act, employers and employees may choose an authorised representative to act on their behalf.

Lawful and unlawful strikes and lockouts—in general terms, strikes relating to the negotiation of single-employer collective contracts are lawful so long as the contract is not in force. Strikes and lockouts that take place during the currency of a contract are therefore unlawful. In addition, strikes and lockouts in support of obtaining multi-employer contracts (where not agreed), or which relate to personal grievances or disputes over the interpretation, application or operation of an employment contract are also unlawful. Strikes and lockouts in essential industries remain subject to notice provisions if the industrial action is to be lawful. Participation in a strike or lockout is not unlawful if there are reasonable grounds for believing that the strike or lockout is justified on the grounds of safety or health.

The legislation contains powers for employers to suspend striking and non-striking employees. The Employment Court has jurisdiction in relation to torts and injunction actions in relation to industrial action.

The establishment of specialist labour relations institutions—there is a lower order Employment Tribunal and a higher order Employment Court. The tribunal has two main functions: mediation assistance and adjudication. Its jurisdiction includes:

  • — providing mediation assistance in all matters properly brought before it. Here the parties are assisted to resolve their differences for themselves;

  • — adjudicating on personal grievances, disputes, recovery of unpaid or underpaid wages and recovery of penalties for a breach of an employment contract or of certain parts of the Act dealing with bargaining, personal grievances or disputes; and

  • — issuing compliance orders on specified matters.

The tribunal places emphasis on mediation as a first step toward resolution of differences. The jurisdiction of the Employment Court includes:

  • — hearing and determining appeals from adjudications of the tribunal, and questions of law referred to it by the tribunal;

  • — hearing and determining penalties under the Parts of the Act dealing with freedom of association and strikes and lockouts;

  • — issuing compliance orders on specified matters;

  • — hearing and determining any action founded on an employment contract;

  • — hearing and determining proceedings founded on economic torts and hearing and determining injunctions in the event of industrial action; and

  • — dealing with harsh and oppressive contracts.

Minimum Entitlements. Following enactment of the Employment Contracts Act 1991, certain other statutory provisions have been designated by the Government as the Minimum Code of Employment. These underpin employment contracts as statutory minimum entitlements and include:

  • A statutory minimum wage for those aged 20 years or over.

  • Protection from unlawful deductions from wages.

  • A 40-hour five-day week for those bound by collective contracts.

  • Eleven paid public holidays for all.

  • Three weeks paid annual leave after 12 months employment.

  • Five days special leave after six months employment.

  • Parental leave and employment protection.

  • Equal pay for men and women.

  • Access to procedures for resolving personal grievances and disputes.

Minimum Wage. The Minimum Wage Act 1983 authorises the determination of the national adult minimum wage and establishes the floor below which wages cannot generally fall. Those 20 years of age and over are entitled to receive the minimum rate prescribed by the most recent Minimum Wage Order. The Minimum Wage Order 1990, the current Minimum Wage Order, sets the rate at $6.125 per hour, $49 for an eight hour day, and $245 for a forty hour week. The rate of pay in any employment contract cannot be less than the minimum rate.

There are several groups who are not entitled to the minimum wage. They are:

  • Those under the age of 20 years.

  • Apprentices.

  • Teacher trainees.

  • Full time university students employed during holidays to obtain practical experience related to their studies.

  • Persons undergoing training in some professions.

  • Holders of under-rate workers permits (those with recognised disabilities who are incapable of earning the minimum wage). Such permits are issued by the Labour Inspectorate.

Hours of Work. Hours of work are not directly governed by statute, but are negotiated into employment contracts. Traditionally these have been no more than 40 without the payment of overtime. The former provision of the Labour Relations Act entitled ‘forty-hour five-day week’ has now been replaced by a new provision in the Minimum Wage Act 1983.

Public and Annual Holidays. Formerly the Holidays Act 1981 provided for statutory holidays for workers in factories only. Workers in other types of undertaking were entitled to the same public holidays as those in factories provided that the relevant award or agreement contained a provision to that effect. The Holidays Amendment Act 1991 now ensures that all workers receive 11 paid public holidays as of right. The statutory and public holidays are: Christmas Day (25 December); Boxing Day (26 December); New Year's Day (1 January); 2 January (or another day in its place); Waitangi Day (6 February); Anzac Day; Good Friday; Easter Monday; Queen's Birthday; Labour Day; and the anniversary of the province where an employee is employed.

In the case of the Christmas/New Year period, provision has been made for the transferral of these holidays if they fall on either a Saturday or Sunday. There is no such transfer in the case of Waitangi Day and Anzac Day. Employment contracts can provide for alternative statutory holidays, but still not less than 11 paid holidays have to be granted.

After one year's continuous service with the same employer, an employee is entitled to three weeks paid annual leave. At least two uninterrupted weeks holiday must be allowed within six months of the holiday entitlement becoming due. Public holidays are additional to annual holidays.

On 15 May 1991 a new provision was included in the Holidays Act for special leave. On completion of six months employment with an employer, an employee now becomes entitled to five days special leave on pay during the next 12 months of employment. Special leave that is unused cannot be carried over. Special leave can be taken if: an employee is sick; the employee's spouse is sick; a dependent child, or dependent parent of the employee or the employee's spouse, is sick; or on the death of an employee's spouse, parent, child, brother, sister, grandparent, father-in-law or mother-in-law, or any occasion on which the employer accepts that by reason of the death of any person an employee has suffered a bereavement.

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 10 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.

Equal Pay and Employment Equity. 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 80 percent of that for men. The average weekly wage as at May 1991 was $591.15 for men, compared with $457.86 for women. This is partly due to women being predominantly employed in lower-paid occupations.

Legislation which attempted to redress this imbalance was enacted in 1990. The Employment Equity Act 1990 aimed to promote equal employment opportunities. It required employers to set up equal employment opportunities programmes with a view to eliminating inequality of opportunity for a number of designated groups, including not only female workers, but also disabled workers and workers from cultural and racial minorities. It also aimed to redress the inequitable effects on women of any current or historical discrimination in their rates of pay.

In early 1991, this Act was repealed by the new Government. It held the view that employment equity would be better achieved by promotion of the concept as a good management practice, based on the belief that discrimination cannot be eliminated by legislation.

The new Government set up a Working Party on Equity in Employment which reported to it in January 1991. As a result Government decided to establish an Equal Opportunities Trust jointly with private sector employers. The main aim of the trust is to promote equal employment opportunities (EEO) as a good management practice. Funding is provided jointly and equally by Government and the private sector.

The Government has also committed additional funding on a competitive bidding basis to widely promote EEO programmes amongst employers and enable research into eliminating discrimination in the labour market to be undertaken. It has also invited the Law Commission to investigate and identify legislative impediments to women and other groups and has accepted the Working Party's recommendation to ensure that such groups are not disadvantaged in the education system.

Personal Grievances and Disputes. All employment contracts, both individual and collective, must contain procedures for the resolution of:

  • Disputes where an employer and employee do not agree about what an employment contract means, or how it is intended to work (its interpretation, application or operation).

  • Personal grievances where an employee believes he or she has been:

    • — unjustifiably dismissed

    • — disadvantaged as a result of unjustifiable action by the employer

    • — discriminated against at work on the basis of colour, race, ethnic or racial origin, sex, marital status, or religious or ethical belief

    • — sexual harassed by a person in a position of authority, or by a co-worker, or by a client or customer of the employer

    • — subject to duress because of membership or intended membership of an employees organisation.

Employment contracts can contain the standard procedures (as contained in the First and Second Schedules to the Employment Contracts Act) or an alternative agreed procedure, not in conflict with the requirements of the Act. Access to these procedures was formerly a benefit of union membership. This is no longer the case—all employees, whether union members or not, now have access to the procedures. Strikes or lockouts where the procedures have been invoked are illegal.

Redundancy. There is no statutory entitlement to redundancy compensation for redundant workers. It is up to those affected or an employees organisation, such as a union, to negotiate a settlement with the employer concerned as each new 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. There is no limit to the amount of redundancy compensation that may be paid or received, nor to who is entitled to compensation.

Unions and employer organisations. The new Employment Contracts Act gives workers' unions (and employers organisations) no special attention: their registration under industrial relations legislation has now been discontinued. They are now societies incorporated under the Incorporated Societies Act 1908. No separate information relating to size and membership of unions and employers organisations will therefore be available after 15 May 1991. Information on worker's unions (now formally referred to as employees organisations) and employers organisations will thereafter become part of statistical data on incorporated societies administered by the Department of Justice. It is unlikely that specific information on employees and employers organisations will be made available separately. Information up to 15 May 1991 is reproduced here.

Table 12.17. PROFILE OF WORKERS' UNIONS

 1989-901990-91
As at 1 April170104
Newly registered87
Less cancellations—
     voluntary5-
     by amalgamation6130
     other81
As at 31 March*10480
* 15 May for 1991.
Union membership
 less than 1000*1000-20002000-50005000-10000over 10000Total
* Includes provisionally registered unions, unions in the process of amalgamating or under notice of cancellation for failure to maintain minimum membership of 1000.
19897438251419170
19901136241617104
19914282091980

Table 12.18. REGISTERED ORGANISATIONS

 198919901991
* Groups of two or more registered unions or employers organisations.
Unions17010480
Associations of Unions*1267
Employers Organisations195123104
Associations of Employers Organisations*1174
Total388240195

Work stoppages

The Employment Contracts Act 1991 places restrictions on the ability of employers to lock out or employees to strike at will by making lockouts and strikes lawful only in limited circumstances. The right to strike and lock out is recognised, but the legislation attempts to minimise the extent and wider economic effects of industrial action.

Participation in industrial action is unlawful in cases where the legislation provides a resolution procedure; that is, where the dispute concerns:

  • A dispute over the operation, application or interpretation of an employment contract;

  • A personal grievance; or

  • Issues relating to membership of an employees organisation.

Participation in industrial action is also unlawful if it:

  • Occurs while a collective employment contract relating to employees involved is still in force;

  • Is concerned with the issue of whether a collective employment contract will bind more than one employer; or

  • Occurs in an essential industry (as defined in the schedules to the Act) and the statutory notice requirements have not been complied with.

WORK STOPPAGES
Total number of stoppages

Participation in industrial action is lawful only if it relates to the negotiation of a collective employment contract for the employees concerned and if it does not fall into any of the above categories of unlawful action.

Statutory penalties are not imposed in the event of unlawful industrial action. The primary remedy is through a civil action in the Employment Court for an injunction, damages, or both.

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 12.19. INDUSTRIAL DISTRIBUTION OF WORK STOPPAGES, 1990

IndustryTotal stoppagesWorkers involvedWorking days lost†Average 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 works161331821592816.2136,269,665
Other slaughtering, preserving of meat536819445.28244,831
Dairy products, food canning oils and fats217711656.5880,526
Textiles, wearing apparel6177944352.49437,255
Paper, paper products, printing and
publishing10239738561.61330,980
Chemicals, petroleum and coal products969562829.04790,999
Non-metallic mineral products31629976.15114,370
Metal products228752.689,064
Transport equipment51882171429.111,415,203
Electricity, gas and water283490.584,290
Building42587923.0767,229
Construction other than buildings31559576.17109,650
Wholesale trade31714142.4223,740
Retail trade21803241.8014,946
Restaurants, hotels34546610.3661,250
Land transport46886050.8847,167
Water transport117371445656.055,711,680
Air transport5139411790.85123,027
Community, social and personal services3517991259931.442,247,058
Other*1686537604.34330,036
                    Total, all industries†137500073309236.6248,432,966

WORK STOPPAGES
Average working days lost per worker involved

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.

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; Reports 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.

Labour relations

A Guide to the Employment Contracts Act 1991. Department of Labour, 1991.

The Employment Contracts Act—A Brief Guide. Department of Labour, 1991.

Chapter 13. Science and technology

Student taking part in science education programme.

13.1 Organisation of science

The new approach to the funding and delivery of state sector research, science and technology has three principal objectives: accountability, enhanced economic growth, and improved decision-making.

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.

Structures

Ministry of Research, Science and Technology. The ministry is primarily responsible for tendering advice on national science and technology policy to the Minister. Other specific tasks include:

  • Identifying research policies, overall levels of funding and funding levels for outputs which best achieve the broad objectives set by the Government.

  • Developing and maintaining, in conjunction with the Foundation of Research, Science and Technology, a framework for government-funded science and technology consistent with the Government requirements.

  • Advising on the merits of research proposals put forward by departmental science providers, enabling the proposals to be assessed for their relevance, quality and cost effectiveness as a future government-funded science project.

  • Carrying out science reviews, including the publication of results and the presentation of conclusions to both the Minister and the Foundation for Research, Science and Technology.

  • Arranging for the collection of data on national inputs into, and outputs from, research and development, including fulfilling international obligations to provide data on national science and technology.

  • Maintaining government-to-government research, science and technology agreements, including national membership of international agencies and administering the disbursement of grants-in-aid funds for international co-operation.

  • Facilitating programmes for the dissemination of information on research, science and technology.

Foundation for Research, Science and Technology. The foundation provides: a process for the investment of public funds in research and development, and independent policy advice on science and technology to the Government.

The foundation administers a contestable pool of research funds. This Public Good Research Fund is subject to bids from government departments, Crown-funded agencies (both of which contribute to the fund), research associations, private companies and individuals, non-profit private trusts, incorporated societies and state owned enterprises that conduct public good science research. The research agencies and researchers compete to win contracts to undertake agreed research programmes, such as ‘public good’ research or projects which reflect the national science priorities.

Areas on high priority research selected by the Government for 1991 were reviews of atmospheric and climatic research, and plantation forestry and the control of opossums and the threat of bovine TB. Amongst the other priority research themes were horticulture–product diversification and the use of genetic methods for product differentiation, and pre-harvest pest and disease prediction; research into forage plants; and environmental protection and marine and fresh water.

The foundation purchases the outputs of broad programmes or short term projects on a contestable basis rather than becoming involved in either the management of scientific projects or the funding of an individual institution's entire research effort.

In the 1991-92 financial year 45 percent of government spending on research was transferred to the foundation. One hundred percent of the Public Good Fund vote for 1992-93 will be administered by the foundation, subject to some adjustments for non-specific output funding. The foundation will also be a major provider of Crown funds for the 10 Crown Research Institutes, beginning in 1992.

The foundation works alongside the private sector to increase their involvement in research and development. The Technology for Business Growth Programme (TBG) invests in research and technological development business projects conducted jointly between business and research institutions.

There is also a Research Associate programme, funded by the foundation, to encourage young scientists to further their work in specific areas of priority research either in a research institution or in industry.

In addition, the foundation sponsors the Hodge fellowship and other grants for research in the social sciences.

Crown Research Institutes. Crown Research Institutes (CRIs) will be taking over state funded scientific research from July 1992. They will replace the DSIR, MAF Technology, the Meteorological Service, the Forest Research Institute and the Communicable Disease Centre.

One of the chief objectives of the institutes will be to turn new knowledge into economic activity. The founding legislation is based on the State Owned Enterprises Act 1986, making the institutes independent corporate bodies. This will allow them to form joint ventures and subsidiary companies to fully exploit the commercial potential of new developments.

Funding will come primarily from government through the Foundation for Research, Science and Technology. Institutes will have a bid for funds for specific research projects which will be judged by scientific and business peers. The possibility will also exist for funding from private enterprise. Part of each institute's budget will be earmarked for important research with no immediate economic objectives.

The 10 CRIs will coven field crop products; pastoral and agricultural research; horticulture; wood and forestry; land environments; atmosphere and water environments; industrial development; the geosphere; environmental health and forensic science; and social and economic development.

Review of the Royal Society Act 1965. The Royal Society of New Zealand was established in 1867 as the New Zealand Institute, and is incorporated under the Royal Society of New Zealand Act 1965. It is comprised of elected Fellows and affiliated societies (and their members). It has objectives and functions consistent with its role as New Zealand's national academy of sciences and is charged with the statutory responsibility to promote scientific endeavour and achievement.

The present statute has been in force for over 25 years and in that time the scientific needs of the country have altered. Changes have been made to New Zealand's science policy with the establishment of a Ministry of Research, Science and Technology, a Foundation for Research, Science and Technology, and the decision to establish Crown Research Institutes. The Minister of Research, Science and Technology has announced a review of the Royal Society Act 1965 to assess its relevance to the new technology, science regime and country's needs. A panel of independent persons with a strong background in science and technology has been formed to review the Act. Issues being considered are:

  • Whether or not there ought to be established, by statute, a non-governmental body with responsibilities relating towards science and technology;

  • Specific topics regarding the present, and any proposed, legislation–the organisations' classes of membership, governance, functions, accountability mechanisms and personnel provisions;

  • Whether to retain an academy of sciences and the Federation of Scientific and Technological Societies within the one structure; and

  • Whether the needs of academic disciplines are fully considered.

Federation of Scientific and Technological Societies. The federation (FOSTS), launched on 14 May 1991, represents New Zealand's 17,000 scientists and technologists. The national organisation was formed by the Royal Society of New Zealand to provide an independent voice on all issues affecting science and technology in New Zealand. The new body will be financed by a portion of the annual fees of the 51 scientific organisations affiliated with the Royal Society.

DSIR nuclear scientist with device developed for measuring fat in meat carcasses.

FOSTS, as the public face of the scientific societies affiliated to the Royal Society, will be taking an active and independent role in advancing science in New Zealand, and promoting the benefits of science and technology to decision-makers in commerce, industry and government. The federation will also play a key role in promoting all aspects of science and technology to the general public.

Department of Scientific and Industrial Research

The department of Scientific and Industrial Research (DSIR) has existed to advance, maintain and apply scientific and technical knowledge for the benefit of New Zealand's economic and social development.

The department currently consists of a Headquarters establishment, 10 scientific divisions and 3 operational units. Much of its research is funded by government on a contestable basis (about $140 million). In 1991-92 approximately 50 percent of this research is being carried out under contract to the Foundation for Research, Science and Technology. Commercial research and services amount to a further $60 million, approximately.

Research is carried out in very wide range of science fields. This range is exemplified by the division's names.

  • DISR Chemistry

  • DSIR Crop Research

  • DSIR Fruit and Trees

  • DSIR Geology and Geophysics

  • DSIR Grasslands

  • DSIR Industrial Development (including engineering sciences and industrial processing)

  • DSIR Land Resources

  • DSIR Marine and Freshwater

  • DSIR Physical Sciences (including the national standards of physical measurement and atmospheric research)

  • DSIR Plant Protection.

The operational units deal with Antarctic operations, social science research and the central library.

Research programmes are aimed at contributing to one or more of a range of government outcomes for science. DSIR has 203 active research programmes, involving 800 specific research objectives divided between 39 of the 40 science output classes. These output classes define the specific research areas to which Government wishes to direct its research investment. Further details of these outputs and programmes can be found in the DSIR Corporate Plan 1991, and in the booklet ‘Glossary of Terms for Scientific and Technological Activities in New Zealand,’ published by the Ministry of Research, Science and Technology.

On 30 June 1992, the DSIR (along with other Crown funded scientific research agencies) will be disestablished and Crown Research Institutes formed out of the research activities and science assets. See Crown Research Institutes (above).

Ministry of Agriculture and Fisheries Research and Development

Until 30 June 1992, almost all pastoral, horticultural and arable research conducted by the Ministry of Agriculture and Fisheries will continue to be carried out by MAF's research and technology transfer business group, MAF Technology, Fisheries Research and Development and operational research is carried out by the MAF Fisheries business group.

Agricultural research. MAF Technology conducts agricultural research on campuses and research stations throughout the country. The goal is to help New Zealand's meat fibre, dairy, arable and horticultural industries to both identify and realise their export potential. In turn, this will increase the sustainable returns from farming. Increasing attention is being paid to research into harvesting, processing and the marketing of primary products.

Major agricultural research programmes, most of them under contract to the Foundation of Research, Science and Technology, focus on animal production and health; soils and plant nutrition; pasture and crop development; horticulture and post-harvest physiology; the sustainability of agriculture; and the management of agricultural environmental impacts. Others, sometimes funded by industry grants, focus on near-market research or development. In addition, in 1991, MAF Technology established the Dairying Research Corporation in co-operation with the New Zealand Dairy Board and the dairying industry.

On 30 June 1992 (during MAFs centennial year) MAF Technology will be disestablished. The business group's staff and research programmes will be transferred to one of six successor organisations. Research and Development resources will be transferred to five of the planned Crown Research Institutes, and the agricultural consultancy will become a state-owned enterprise. See Crown Research (above).

Fisheries research. MAF Fisheries has two national research centres: the one at Greta Point in Wellington concentrating on marine fisheries, while at the Christchurch campus focus is on freshwater fisheries research. This work is also supported by regional fisheries research teams and such assets as the new fisheries research vessel, the purpose-built ‘Tangaroa’.

The main objective of marine research operations is to provide information for reliable fish stock assessments. Such information needs continual updating to monitor changes in fish populations, so that policy makers can set allowable catches under New Zealand's Quota Management System (the system's goal being the maximum sustainable use of the fisheries resource).

Portable dynametre tuning system, a world-first designed by the DSIR.

Research efforts continue to concentrate on increasing knowledge about the major deep-water species, particularly orange roughy and hoki. Programmes of trawl surveying, biomass estimation through acoustic measurement, catch sampling and age validation work all contribute to this goal. MAF Fisheries also provides research and development consultancy services on the aquaculture of such species as salmon, mussels, crayfish 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. Approximately 65 percent of the institute's funding is 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.

The establishment of new Crown Research Institutes in 1992 will result in the majority of the functions of the Forest Research Institute at Rotorua forming the basis of the Forestry and Wood Products Crown Research Institute. Most of the functions of the Forest Research Institute at Christchurch will transfer to the Land Environments Crown Research Institute.

Kapiti Coast secondary school student with science fair exhibit.

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.

New Zealand Institute of Economic Research. The institute 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 and 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.

Cawthron Institute. The only major endowed research organisation in New Zealand is the Cawthron Institute at Nelson. 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 7.3, Public health.

13.2 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 which 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.

The total number of applications for the granting of letters patent, and for the registration of designs and trade marks during the financial year 1990-91 was 13,565 a decrease of 4082 over the previous year.

The Patent Office library contains a comprehensive collection of patent specifications from a number of countries. A detailed list is available on request, and the office maintains a mail order service for patents, trade marks and designs.

Table 13.1. APPLICATIONS FOR PATENTS AND REGISTRATION OF TRADE MARKS AND DESIGNS

Year ended MarchPatentsTrade marksDesigns
Source: Ministry of Commerce.
198741836529740
198842897285686
1989445512562630
199045828327656
199144888168637

Patents. The 4488 applications originated in the following countries: New Zealand 806; United States 1630; United Kingdom 463; Australia 350; West Germany 213; France 190; Switzerland 179; Japan 128; Netherlands 99; Sweden 76; Italy 74; Canada 71; Denmark 54; Belgium 26; Finland 22; Taiwan 17; Hungary 14; Ireland 11; Norway 10 and the balance of 55 from 19 other countries.

The technical content fell into the following categories: chemistry 2315; mechanical engineering 887; electrical engineering 515; home science 4109; building technology 185; and primary industries 167.

The range of subjects for which patent applications were filed is similar to last year. Applications for microbiological and genetic engineering inventions continue to increase as do applications for cellular telephone technology and optical integrated circuits.

Applications for human and veterinary antiviral medicines have increased as have applications for vaccines, immunoassay methods and kits.

Applications for composite structural building panels have increased as have applications for water and waste-water treatment and for cleaning and prevention of fouling in general.

During the year, 3598 applications proceeded to acceptance after search and examination, and letters patent were sealed on 3846 applications, an increase of 2.5 percent and 32.1 percent respectively.

Fourteen grants of patent were opposed and twelve applications for extension of term were filed. Three opposition proceedings were finalised and two extension of term applications were resolved.

Trade marks. The applications for registration originated in the following countries: New Zealand 2992; United States 2188; Australia 698; United Kingdom 484; Germany 351; Japan 267; France 240; Italy 120; Netherlands 66; China 24; Canada 108; Switzerland 234; Denmark 49; Sweden 4; Others 343.

During the year, 6817 applications were accepted, 4031 applications were accepted, 4596 went to registration, and 3670 registrations were renewed.

The office no longer performs searches for the Companies Office in relation to new companies seeking registration.

Designs. Applications for design registration decreased 3 percent for the year.

Solar Kiwi, a solar powered car, during the world solar challenge in Australia.

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.

Amendments to the Testing Laboratory Registration Act 1972 in 1983 and 1988 gave Telarc the functions of the National Quality Assurance Certification Authority and the New Zealand Industrial Design Council. These amendments give Telarc the responsibility to assess and certify organisations' quality assurance systems and added the New Zealand Designmark programme to its list of accreditations.

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 six ‘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.

Environmental Choice NZ. Authorised by the Minister of Commerce in 1990, this label is awarded to products that take account of environmental factors.

Standards Council

The Standards Association of New Zealand (SANZ) operates under a charter from the Standards Council, the body responsible for the administration of the national standards system.

The aim of SANZ is 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.

The association provides the ‘Technical Help to Exporters’ service, supplying assistance to manufacturers whose products need to comply with the standards and regulations of overseas markets. SANZ is also the enquiry point for the GATT code on Technical Barriers to Trade. The council recognises the importance of international standardisation in facilitating trade and is the New Zealand member on several of the international commissions.

The Standards Association's library holds full sets of New Zealand and international standards, and national standards of the United Kingdom, United States, Australia, Germany and many other countries. The association's information service provides comprehensive technical information on New Zealand, overseas and international standards. Details of these and other standards activities are given in a monthly publication, Standards, plus there is a catalogue, published annually, which 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 $1.8 million in the 1990-91 year. Subscribing membership of the association totalled 1610 at 31 March 1991, while 45 companies and government agencies had voluntarily increased their subscription to levels qualifying for recognition as sustained members.

Fisher & Paykel high-tech healthcare product.

Contributors

  • 13.1 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.

  • 13.2 Ministry of Commerce; Telarc New Zealand; 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).

Standards. Standards Association of New Zealand (monthly).

Chapter 14. Science and technology

Canoeing on the Fox River, Westland National Park.

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 and mapping and land information agency. 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; investigations into the status of Crown land and Maori land; and maintenance of records related to the unregistered lands of the Crown.

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. In managing the survey control system the department uses high tech global positioning satellites and associated automated equipment. The resultant data links New Zealand to other national and international survey and mapping systems, providing certainty of the positions of New Zealand's national and economic zone boundaries. 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 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.

Aerial photography. Extensive use is made of aerial photography in support of New Zealand's national mapping programme. This programme consists of two components, i.e., the mapping of regions not previously covered and the revision of existing mapping. The department holds and maintains the national air photo library which provides a comprehensive national source of land information data. The department also receives and holds multispectral imagery collected by earth resource satellites. This data is available to the public.

Mapping. Maps using imperial measures are being replaced by metric topographical and cadastral maps now under production to 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. The department produces maps needed to service the activities of other government 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.

New lightweight GPS surveying system.

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 termination 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.

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.

Land and Deeds Division. In recent years new technology has been progressively introduced into Land and Deeds offices throughout the country in order to improve customer services, streamline processes, and contribute to an overall Land Information System.

The first stage in the automation of the land titles register has been the development of the Automated Land Transfer Journal (unregistered documents file). This application holds details of all documents lodged for registration and is essentially a work-in-progress file. Development is also underway to incorporate new plan details (including a tracking facility) and early allocation of new title references permitting new subdivisions of land.

Another new application is the Automated Index, which allows enquiries to be made on owners names or legal descriptions and displays the relevant title references. The Auckland District office of Land and Deeds is utilising the Automated Index as a first step in the establishment of a core Crown Land Information system, which matches the title index data (text) with the survey data (graphic) from the Department of Survey and Land Information. Data from the Maori Land Court and Valuation New Zealand will be added to form a central (common) index.

The creation of moveable marginal strips, the sale of Crown Forests, irrigation schemes and the issue of title to state owned enterprises have been significant areas of work undertaken by the division. The Resource Management Act 1991 will have a widespread effect on the processing of documents, plans and new titles in all offices.

Table 14.1. LAND TRANSFER DOCUMENTS PROCESSED

Year ending 30 JuneInstruments receivedCertificates of titlePlans lodgedGuaranteed searchesTitle searches*Document searches

* A title search fee was introduced from May 1988.

Source: Department of Justice.

19879208504476315343628662184026357396
19889216425083816415665901051535283141
198910296884725816889821921176421306599
199010076205398718000906031109663283376
1991869864535621821487552919900255932

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 the land 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 ‘reserve’ for recreation or other purposes, any islands or parts of islands within 150 kilometres of the mainland or any land on the Chatham Islands.

The legislation also 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 residence, are met. The Land Valuation Tribunal is the judicial authority which controls the sale and lease of land. Before purchase is approved, the tribunal must be assured of the intention of the purchaser to reside in New Zealand and conduct experimental or research work on the land beneficial to New Zealand, and that the purchaser has the ability and means to sustain their work. The tribunal must also be satisfied that the land is not required for any reserve purpose. All the conditions are set out in the Land Settlement Promotion and Land Acquisition Act 1952.

There are a relatively small percentage of land transfers involving leasehold property as opposed to freehold property. 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.

Any land transfer data should be used with caution owing to the great diversity of property transactions covered. These transactions may 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. Movements in prices of individual types of properties are given in section 19.2, House purchase and mortgage finance.

Recent figures for freehold open-market sales of farmland are shown in Table 14.2. Family sales are excluded, as are leasehold sales and sales for uses other than primary production.

Table 14.2. MARKET SALES OF FREEHOLD FARMLAND

Half year endedNo. of salesTotal sale priceIndex number*Percentage change from previous half year

* Base (= 1000) half year ended December 1989.

Source: Valuation New Zealand.

Dec 19871479313.1921+4.0
Jun 19881311273.2914−0.8
Dec 19881532306.6882−3.6
Jun 19891996455.2932+5.8
Dec 19892249531.81000+7.2
Jun 19902347652.51163+16.3
Dec 19901939483.91188+2.1
Jun 19911735422.51169−1.6

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. 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 function of the Maori Land Court Division of the Department of Justice is to contribute to the administration of Maori land and preservation of taonga Maori by maintaining the record of title and ownership information of Maori land; servicing the Maori Land Courts and related tribunals; providing land information from the Maori Land Court record and Crown agencies; promoting the management of Maori Land by its owners; and improving land titles

A significant achievement in 1991 was the copying of all Judges Minute Books up to 1965. This project was co-ordinated between National Archives and the Maori Land Court offices. All books have been individually photocopied and bound. The original books are now in the custody of the National Archives.

A major focus of the coming year is the need to further develop the security and preservation of the record of the Court.

Interest in Maori Land and associated issues continue at a high level. The following graph depicts the level of inquiries on the divisions record over the past 12 months.

MAORI LAND COURTS

Maori land development. In 1989 the principal functions of the Board of Maori Affairs–the development and use of Maori land for the benefit of Maori owners–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 became the facilitation of the return of all Maori land development schemes under the agency's control to the control of the owners of the land themselves.

Archivist with photocopies of more than 120 years of Maori Land Court Minutes.

On 31 December 1991 the Iwi Transition Agency was disestablished and its residual functions transferred to the Ministry of Maori Development.

Table 14.3. LAND ADMINISTERED BY MAORI LAND COURT

Maori Land Court districtsTotal blocks administeredSurveyed blocksUnsurveyed blocks
Source: Department of Justice.
Whangarei4858  
Hamilton3417  
Rotorua4625  
Gisborne5007  
Hastings1264  
Wanganui3752  
Christchurch1636  
     Total24555970314875

Crown owned lands

Prior to 1987, Crown owned lands were administered by various Crown agencies pursuant to the Public Works Act 1981, Land Act 1948, Reserves Act 1977, National Parks Act 1980 and the Forests Act 1949. Significant reconstruction of the public sector commenced in 1987. This reconstruction included the reorganisation of the government's environmental and public work administrations. Much of the Crown's commercial or productive land was subsequently transferred to State Owned Enterprises. Land currently remaining in Crown ownership now comprises land administered by the Department of Survey and Land Information operating through the Office of Crown Lands, service delivery departments and the Department of Conservation.

Lands administered by the Office of Crown Lands. The Office of Crown Lands is responsible for the administration of residual Crown owned lands pursuant to the Land Act 1948, Public Works Act 1981 and Crown Forest Assets Act 1989. The operational practice of the Office of Crown Lands is to address statutory and Crown contractural requirements in respect of the residual lands and to then proceed to administer or dispose of the lands in accordance with operative government policies.

Land administered pursuant to the Land Act 1948 comprises unalienated Crown land, pastoral leasehold land, other Crown leasehold lands and endowment leases. At 1 July 1991 there were an estimated 4000 parcels of unalienated Crown land, 367 pastoral leases/licences, 175 other Crown leases and 64 endowment leases.

Land administered by the Office of Crown Lands pursuant to the Public Works Act 1981 comprises land no longer required to be held by the Crown for the public work purpose for which it was taken. It includes surplus government properties formerly held by the Crown for hydro electric power development, post offices, public work depots and government office accommodation. At 1 July 1991 there were an estimated 1000 surplus government properties in the process of being disposed of by the Office of Crown Lands.

Land administered by the Office of Crown Lands pursuant to the Crown Forests Act 1989 comprises Crown Forest land over which Crown Forestry licences have been issued. At 1 July 1991 there were some 66 Crown Forestry licences.

All Crown Forest lands and a significant number of the other lands administered by the Office of Crown Lands are required to be held in Crown ownership pending the Crown's resolution of Maori land claims lodged pursuant to the Treaty of Waitangi Act 1975 or the completion of direct negotiations between the Crown and claimants.

Lands administered by service delivery Crown agencies. A significant quantity of Crown owned lands are held by service delivery Crown agencies. These lands are held for government works pursuant to the Public Works Act 1981 and other functional legislation including education, defence and law and order.

Lands administered by the Department of Conservation. The department administers national maritime and forest parks, wilderness areas, marginal strips around lakes and rivers and more than a thousand other reserves of different kinds. It also protects privately owned land under special arrangement with the landowner. The department is responsible for conservation in New Zealand's sub-antarctic islands and the Ross Dependency in Antarctica. For more information see section 14.3 National parks and reserves.

Records of 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 are also held by the Department of Survey and Land Information. These records are in the form of plans and schedules prepared to record allocation decisions taken by Government. A set has also been prepared and certified correct by Chief Surveyors pursuant to section 62 of the Conservation Act 1987. These plans and schedules will remain the prime records for these unregistered lands until such time as they are registered under the provisions of the Land Transfer Act 1952. Records of the allocated lands which were subject to the Public Works Act 1981 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 the parent company which incorporates finance and other activity.

The farming subsidiary 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 6800 leases, licences, and other financial instruments taken over from the Crown.

Landcorp Management Services is a free based property portfolio management company. It 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. Its real estate branch handles the purchase and sale of properties for government agencies and private organisations.

The corporation's head office is in Wellington. There are also 14 property district offices and four farming regional offices.

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.

Valuation New Zealand assesses values of real estate for taxation and other central government purposes, and for local rating. The work of Valuation New Zealand 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.

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. Objections can be lodged against revaluations, and taken to the Land Valuation Tribunal. Special valuations are made for particular purposes such as loans by government departments or trustees and the assessment of stamp, gift and estate duties.

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.

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 14.4.

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 14.4. NATIONAL EQUALISED VALUES, AS AT 31 MARCH 1990

 GrossNet
Source: Valuation New Zealand.
 $(million)
Equalised capital value227,636215,226
Equalised land value90,35887,329

Valuers Registration Board. The Valuers Act 1948 provides for the protection of the public through the registration of valuers of land. There is a registration board under the chairmanship of the Valuer-General, which sets standards of education and practical experience for registration. The board maintains a register of those valuers who meet the required standard and issues annual practising certificates to public valuers. In addition the board exercises disciplinary power, where a valuer is charged with incompetent, improper or unethical behaviour. Of the 1830 valuers registered as at 31 December 1990, 1082 held annual practising certificates. The remaining 748 registered valuers are either retired, overseas, or do not make valuations for members of the public.

14.2 Environmental and resource management

New Zealand occupies approximately 27.1 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 14.5. 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 land7.427.6
Pasture and arable land14.252.4
Other land use5.118.6
Minor islands0.10.3
Lakes, rivers, etc.0.31.1
                    Total area of New Zealand27.1100.0

LAND USE

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.

Table 14.6. CLASSIFICATION OF NEW ZEALAND SOILS

RegionSoilsVegetation and land use
Source: DSIR.
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.

Resource Management Law Reform 1991

This year sees the application of new legislation for resource management in New Zealand. In 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 was widely acknowledged that the resource management laws were inadequate, complex, legalistic, and often slow and costly.

The reform questioned the relevance of the existing statutes 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.

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.

The review culminated in the introduction to Parliament of the Resource Management Bill in December 1989. After the new Government was elected in October 1990, some aspects of the bill were reviewed for the work ability, and a second Select Committee process was completed by July 1991. The resulting Act came into effect on 1 October 1991 along with the companion Crown Owned Minerals Act 1991.

Environmental planning framework

New Zealand's principal environmental planning legislation, the Resource Management Act 1991, provides a process by which needs, opportunities, and issues relating to natural and physical resources (including land and water use), can be identified and appropriate objectives and policies formulated. Measures can then be embodied in regional policy statements, regional plans, and district plans. The Resource Management Act has a single, clear and overarching purpose: to promote the sustainable management of natural and physical resources. The Act also provides a common set of principles to be applied to management of all resources.

Sustainable management is defined as: “the use, development and protection of natural and physical resources in a way, or at a rate, which enables people and communities to provide for their social, economic and cultural well-being and for their health and safety while:

  • Sustaining the potential for natural and physical resources (excluding minerals) to meet the reasonably foreseeable needs for future generations;

  • Safeguarding the life-supporting capacity of air, water, soil and ecosystems; and

  • Avoiding, remedying, or mitigating any adverse effects of activities on the environment.”

Opportunities for public participation in resource management are broad and include any body or person interested in the issue. All public bodies, including the Crown, are required to adhere to the provisions of any regional policy statement or plan.

In the administration of regional policy statements, regional plans and district plans, consideration must be given to specific matters of national importance. All proposals for public works which do not conform with the provisions of the relevant district plan require resource consents, 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, environmental effects of the proposal.

There is also an express duty with respect to the Treaty of Waitangi. The Act requires that, in achieving the purpose of this Act, all persons exercising functions and powers shall take into account the principles of the Treaty of Waitangi.

Role of the Minister for the Environment. The minister for the Environment's role is an overview and monitoring one, with some areas of direct resource management responsibility.

The minister will be able to set environmental standards by regulation. The minister may also recommend the making of regulations generally. The minister will monitor the effect and implementation of the Act, including specific monitoring of water conservation orders and national policy statements. The minister for the Environment also has a role in approving network utilities and heritage protection authorities and making recommendations on water conservation orders.

The Act formalises the minister's role in considering and investigating the use of economic instruments.

Any agency of central government will still be able to take part directly in statutory planning or consent procedures. However, there will be three new methods for central government to influence the operation of resource management:

  • Statements of national policy to guide local government decisions;

  • Opportunity for the Minister for the Environment to ‘call in’ a proposal which raises matters of national significance in order to make a decision about it at a national level;

  • The setting of national environmental standards by regulation for noise, contaminants, water, soil and air quality.

National policies. In the preparation, implementation, and administration of regional policy statements, regional plans and district plans the following matters—which are declared to be of national importance—must be recognised and provided for:

  • The preservation of the natural character of the coastal environment (including the coastal marine area), wetlands and lakes and rivers and their margins, and the protection of them from inappropriate subdivision, use and development;

  • The protection of outstanding natural features and landscapes from inappropriate subdivision, use and development;

  • The protection of areas of significant indigenous vegetation and significant habitats of indigenous fauna;

  • The maintenance and enhancement of public access to and along the coastal marine area, lakes, and river; and

  • The relationship of Maori and their culture and traditions with their ancestral lands, water, sites, waahi tapu, and other taonga.

There is no priority suggested in the order of this list.

Those exercising functions and powers are required to have particular regard to other matters in achieving the purpose of the Act. These matters are as follows:

  1. Kaitiakitanga (the exercise of guardianship);

  2. The efficient use and development of natural and physical resources;

  3. The maintenance and enhancement of amenity values;

  4. Intrinsic values of ecosystems;

  5. Recognition and protection of the heritage values of sites, buildings, places or areas;

  6. Maintenance and enhancement of the quality of the environment;

  7. Any finite characteristics of natural and physical resources; and

  8. The protection of the habitat of trout and salmon.

Again, there is no priority suggested in the order of this list.

The minister is also able to appoint people to exercise the functions in place of local authorities where they are not performing their functions adequately. The minister is also able to make grants and loans to achieve the purpose of the Act.

The Minister of Conservation will provide a management framework for the coast through New Zealand coastal policy statements. The minister's functions and powers also include approval of regional coastal plans and, in certain situations, a consent-granting function.

Regional policies and plans. Regional councils have a pivotal role in the new resource management administration. Each region will have to prepare a regional policy statement, which will set out the objectives for managing all resources of the region in an integrated manner. Regional plans may be prepared where necessary to assist a regional council to carry out its function.

Regional councils have been given primary responsibility for the management of water, soil, geothermal resources and pollution control. In addition, regional councils will have responsibility for regional aspects of natural hazards mitigation, soil conservation and hazardous substances. The latter does not affect existing functions of other bodies under legislation not affected by the Resource Management Act.

They also have joint control (with the Minister of Conservation) of various resource management issues in the coastal marine area.

District planning. Territorial authorities (district and city councils) have primary responsibility for land use management (including those on the surface of water, subdivision and noise control). They complement the role of regional councils on some issues such as natural hazard mitigation and hazardous substances.

District plans are mandatory under the Resource Management Act 1991 and are designed to assist territorial authorities in carrying out their functions under the Act.

Matters to be considered by the territorial authority in preparing district plans 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. District plans should not be inconsistent with national policy statements, coastal policy statements, water conservation orders and regional policy statements or plans (where a matter has regional significance).

District plans (and regional plans for reclamations) may contain rules which reduce, increase, or waive the standard 20 metre wide esplanade reserve required on subdivisions under Part VIII of the Act. Before rules can reduce the width or waive the reserve certain tests must be met.

The district plan is an effective instrument for bringing about innovative change in land-use control and environmental management.

Coastal management. The Resource Management Act recognises the need to plan for coastal areas, which are subject to increasing pressures from various demands. The Act provides a statutory procedure to prepare national coastal policy and regional coastal plans. The national policy is under the control of the Minister of Conservation and this provides the basis for regional coastal plans. Regional coastal plans are prepared by regional councils and must be approved by the Minister of Conservation.

Under the local government reforms effected from 1 November 1989, the relevant regional councils assumed the responsibilities of former maritime planning authorities.

Proposed sewage treatment plant for Wellington.

Use of land. The Resource Management Act addresses the past errors in the destruction of areas of natural beauty, the loss of historic areas of cities and the destruction of neighbourhood communities and provides for a more humane basis to environmental planning. A key to this is the inclusion of ‘amenity values’ in the definition of ‘environment’. By providing for amenity values it is possible for policies and plans to consider ‘those natural or physical qualities and characteristics of an area that contribute to people's appreciation of its pleasantness, aesthetic coherence, and cultural and recreational attributes’. It is over to councils to identify the appropriate ways to maintain those qualities and characteristics, of which controls on the built environment may be one.

Similarly, by identifying as a ‘matter of national importance’ the relationship of Maori to their ancestral lands, water, sites, waahi tapu, and other taonga (treasures), it is possible for policies and plans to cater for Maori-related uses on Maori land. The most prominent of these are the marae and papakainga housing. In the first instance, rules in a plan could allow for the construction of the marae itself. Other rules for papakainga housing would provide for residential development on Maori land which is generally in multiple ownership.

‘Reasonable use’ of land is covered in section 85 of the Act. The phrase carries its commonly understood meaning plus an extension under this section. This extension ensures that uses which do not impact on people, other than the landowner, or the environment are classed as reasonable uses. Those whose land has been classified incapable of reasonable use can challenge the provision during plan review or on an application for a plan change.

Mineral exploitation

The impact of mining, prospecting and exploration of minerals is controlled through the Resource Management Act 1991 by local authorities. Controls are imposed through plans and resource consents established by that Act. They control the environmental impact of mining activities, including the rehabilitation of land.

The Minister of Energy issues permits allocating Crown owned minerals, or the rights to search for such minerals, under the Crown Minerals Act 1991. These permits will include provisions relating to rentals and work programmes. The basis for these rules may be set out in a Minerals Programme prepared by the minister.

The Crown Minerals Act provides for land access arrangements to be made with the owner of the surface estate in order to access the minerals.

Legislative control of Crown owned mineral production is contained in the Crown Minerals Act. The administrative agency is the Resource Allocation Agency in the Ministry of Commerce. Other environmental consents from the local authority may also be required under the Resource Management Act.

Water and soil conservation

Since 1 October 1991, the administration of water and soil resources is being achieved through the Resource Management Act, with protection against flooding and erosion control provided by the Soil Conservation and Rivers Control Act 1941. Both 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 1990-1991 year the Government allocated $42.6 million for these grants. The grants system is being phased out and replaced by a programme of subsidies supporting activities under the Resource Management Act. It is targeted in terms of regional ability to pay.

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 100000 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 300000 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 Resource Management Act 1991 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 require a water permit 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.

The goal is the preparation of water allocation and management policies for each region. These will provide a framework within which a regional council can operate when considering applications for water permits. The public is given the opportunity to participate in the planning, thus providing existing and prospective water users with a guide to how their water rights may be reduced during a shortage. A regional council may choose to prepare a regional plan to enable it to exercise its water resource management functions under the Resource Management Act.

Water quality. Maintenance of water quality is also the responsibility of regional councils within national standards. The Resource Management Act controls contamination of water (as well as discharges onto or into land and into air) through a discharge permit. A schedule to the Act also establishes a classification system based on water use (e.g. recreational activities). Regional policy statements and (optional) regional plans are the statutory vehicle for water quality policies, objectives and rules. Water permits may be restricted or suspended in order to maintain minimum standards of quality and water flow.

The Resource Management Act continues earlier legislation which 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 permits. Orders have been placed over the Motu, Rakaia and Manganui-o-te-ao Rivers, and Lake Wairarapa. Applications for orders on several other water bodies are currently being heard, or are subject to appeal to the Planning Tribunal.

Irrigation. Irrigation was initially practised in New Zealand as a drought protection measure and was concentrated in such areas as Central Otago and South Canterbury where high soil moisture deficit is experienced during summer, due to hot drying winds. More recently, irrigation has been used as a beneficial farm management tool with schemes in North Canterbury and 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 234000 hectares are now irrigated, by community- and government-supported schemes. Of this area, 218000 hectares are irrigated for pastoral purposes, mostly in the South Island, and 16000 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 73000 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 provided for the prevention of damage by erosion and the protection of property from damage by floods. This Act has now been made subservient to the Resource Management Act 1991 and some sections have been repealed. The land management regulations have been included in the Resource Management Act, but river control and catchment works are still subject to the Soil Conservation and Rivers Control Act.

River control projects carried out by councils often serve both the objectives of preventing damage by erosion and protecting property from flood damage. 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.

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.

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.

Protester by waste outlet, Oamaru.

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 councils through the Resource Management Act 1991. 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 has been the responsibility of the Department of Health and territorial authorities under the provisions of the Clean Air Act 1972, but this function is now included in the Resource Management Act. Local authorities also control noise in their areas through the Resource Management Act 1991. 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 Resource Management Act 1991 provides for the control of waste discharges through discharge permits. 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 have been conducting surveys on mercury contamination of fish and water arising from geothermal outflows; nitrate concentration in ground waters; insecticides in water, heavy metals in foods; the effect of introduced substances and organisms on the environment and 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 and these regulatory provisions have been maintained through the Resource Management Act 1991.

Global environmental issues

Some of the most pressing environmental problems extend beyond national borders. They include ozone depletion and the enhanced Greenhouse Effect. They are known as global environmental issues because no country on its own causes these problems, but all countries ultimately suffer the consequences.

Heightening awareness of the importance of global action on environmental matters has led to increased international activity in recent years. The international debate is taking place in the context of the twin imperatives of environmental protection and economic development, and the critical importance of the relationships between them for the future well-being of humanity.

New Zealand plays an active part in international environment work, particularly in areas such as climate change, ozone depletion, Antarctica, forestry, waste issues, driftnet fishing, the protection of marine mammals and South Pacific environment matters. Policy development involves a wide range of government agencies.

The Ministry for the Environment has established a Global Environmental Issues Project to formulate advice to the Government on New Zealand's policies on ozone depletion, climate change, sustainable development, and Antarctica. The Environment Division of the Ministry of External Relations and Trade, set up in 1990, in consultation with the Ministry for the Environment and the Department of Conservation advises the Government on ways to promote international agreements to solve global environmental issues.

Wellington City Council recycling bins.

Two major environmental initiatives of international significance were completed by the Government during 1990. The Ozone Layer Protection Act 1990 to phase out controlled ozone depleting substances was enacted. In July 1990, the Government set out its climate change policy response—a comprehensive approach across all greenhouse gases, their sources and sinks. In particular, it announced its aim to reduce 1990 levels of CO2 emissions by 20 percent by the year 2005 by reductions across all sectors through energy management. Later in the year the new Government brought the target date forward to 2000.

New Zealand is also involved in negotiations for a framework convention on climate change which began in February 1991. New Zealand has also continued to be prominent in efforts to protect the ozone layer.

The Convention for the Prohibition of Fishing with Long Driftnets opened for signature in Wellington in 1989 and entered into force on 17 May 1991 with the deposit of the fourth instrument of ratification. In addition to the four ratifications, Canada and the United States have now each signed a Protocol to the Convention. In 1991, as in the two preceding years, New Zealand was active in promoting a resolution at the UNGA to stop large scale driftnet fishing worldwide.

As an Antarctic Treaty partner New Zealand also maintains a high profile on Antarctic matters. In 1991 the Antarctic Treaty Partners successfully negotiated an environmental protection protocol to the Antarctic Treaty, which accords comprehensive protection to the Antarctic environment and incorporates a long term prohibition on mining in Antarctica.

Since 1990, the world community has been focussing on preparations for the United Nations Conference on Environment and Development (UNCED) which will be held in Brazil in June 1992 at Head of Government level. The Conference will review international co-operation on a very wide range of environment and development issues. Participants are negotiating a set of principles for individuals, governments and the world community (an Earth Charter) and an action plan for dealing with environmental problems into the next century (Agenda 21). The UNCED will also have before it a set of guidelines on the protection and management of the world's forestry resources.

New Zealand is playing its part in the UNCED preparations. The development of the New Zealand approach to the Conference involves consultation with a wide range of local interests, including environmentalists, industry, the Maori perspective and youth groups.

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, 20 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, wild and scenic rivers, the sea-shore and seabed to a distance of 12 nautical miles, lake shores and all navigable rivers.

National parks

The National Parks Act 1980 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.

New Zealand's national parks are listed, from north to south, below.

Tongariro National Park. (78651 hectares, established 1887), was New Zealand's first national park. It includes the three active volcanoes, Ruapehu, Ngauruhoe and Tongariro.

Urewera National Park. (212675 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. (33543 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. (74231 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. (22541 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. (101753 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. (27818 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. (99270 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 m in height.

Westland National Park. (117547 hectares, established 1960), extends from the highest peaks of the Southern Alps to a wild remote coastline. Included in the park are glaciers, scenic lakes and dense rainforest, plus remains of old gold mining towns along the coast.

PARKS OF NEW ZEALAND

Mount Cook Parks. (70013 hectares, established 1953), is an alpine park, containing New Zealand's highest mountain, Aoraki/Mount Cook (3764m), and longest glacier, Tasman Glacier (29 km). A focus for mountaineering, ski touring and scenic flights, the park is an area of outstanding natural beauty. The Mount Cook and Westland National Parks have together been declared a World Heritage Area.

Mount Aspiring National Park. (316657 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. (1251924 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.

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 300000 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.

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.

The Snares Islands, Auckland Islands, Campbell Island, Antipodes Island and the Bounty Islands together form the Subantarctic Islands National Reserve of approximately 74885 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 10.2, The national collection).

Recreation reserves include public domains, camping grounds and other public recreational areas administered by the Department of Conservation.

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.

Diver with long-finned boarfish, Poor Knights Islands.

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.

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.

Royal Forest and Bird Protection Society of New Zealand Inc. Headquarters, Wellington.

Statutory and associated committees

New Zealand Conservation Authority. The New Zealand Conservation Authority and Conservation Boards were established in April 1990 by the Conservation Law Reform Act 1990. The authorities function's extend over the entire conservation estate and include the functions of the former National Parks and Reserves Authority, as they relate to national parks. It also takes over some of the responsibilities of the former Nature Conservation Council and New Zealand Walkways Commission. As well as its role under the National Parks legislation, the Authority has powers to advise the Minister on policy under the reserves, wildlife, marine reserves, wild animal control, marine mammal protection, walkways and conservation Acts.

The areas the authority is currently involved with include investigations into the creation of a National Park in north-west Nelson; wild animal control; submissions on the review of the State Highway system; introduced species; Conservation Week; and energy conservation.

Seventeen conservation boards carry out the above functions at a regional level in respect of a wide variety of parks, reserves and conservation areas. Te Ao Marama is the quarterly newsletter of the New Zealand Conservation Authority and the Conservation Boards.

National Fish and Game Council. This council represents nationally the interests of anglers and hunters and provides co-ordination of the management, enhancement and maintenance of sports fish and game. The council may give advice to the minister and develop, together with regional fish and game councils, national policies for carrying out its functions. It oversees the effective implementation of any general policies established by the minister. Other functions include an advocacy role in statutory planning processes and the fair distribution of revenues between the Regional Fish and Game Councils.

Regional Fish and Game Councils. There are 12 Regional Fish and Game Councils, whose functions include assessment and monitoring, promotion and education, planning, representing the interests of anglers and hunters in planning processes, and the issuing of licences to fish or hunt.

Taupo Fishery Advisory Committee. This committee provides advice to the Department of Conservation and the minister on the day-to-day management by the department of the Taupo Fishing District, and on the allocation and expenditure of money.

Queen Elizabeth II National Trust. The trust encourages and promotes the provision, protection and enhancement of open space for the benefit and enjoyment of the people of New Zealand. The trust most often deals with land in private or non-government ownership, as an independent and permanent trustee. A principal function of the trust is protecting privately owned land through purchase, open space covenants and acceptance of bequests, donations and gifts of land. Open space covenants are legal agreements between the trust and a landowner or leaseholder to protect a special landscape feature for a specified time or, more usually, in perpetuity. Covenants so far negotiated include wetlands, lakes, coastline, tussock lands, tracts of rural landscape and forest remenants.

Other activities of the trust include landscape awareness projects, demonstration farms, and the protection of wild and scenic rivers. The trust also has educational and advisory responsibilities.

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 10.2, The national collection.

Waitangi National Trust Board. This board administers the Treaty House and Trust Board property. The Minister of Conservation is administrator of the Trust, and is an ex officio member of the board. Other members of the board are the Governor-General (Chairman), the Prime Minister, the Minister of Maori Affairs, and nine others representing those with a close association with the Treaty of Waitangi.

Wild Animal Recovery Service Appeal Authority. This tribunal considers appeals lodged by unsuccessful applicants for wild animal recovery service licences.

A number of other boards have been set up to aid the Government and the department in administering specific responsibilities. These include: Guardians of Lakes Manapouri, Monowai and Te Anau, and Lake Wanaka, Te Roaroa Waipoua Archaeological Advisory Committee, Forest Heritage Fund, South Westland Environmental and Community Advice Group and Nga Whenua Rahui.

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.

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

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

Sheep dog trialling entrants.

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 in recent years 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 value of farm production in 1990 was less than in 1989. The main cause of this decline were the low prices obtained for New Zealand agricultural exports. These low prices were caused by competition on world markets from low priced surplus agricultural products from countries that subsidise farm production.

Negotiations about international trade are taking place under the General Agreement on Tariffs and Trade (GATT). These are aimed at reducing unfair competition for exports of agricultural products. The present round of negotiations started in 1986 and has not yet reached resolution. As a consequence New Zealand continues to receive lower prices than it should for exports of farm products.

Overall 1990 was more favourable than average for most farming systems. In January and February 1990 temperatures were warm and there was adequate rainfall in most of the North Island. Conditions were dry in the South Island especially in the northern regions and in Otago-Southland. Heavy rain in the west of the North Island in March brought floods to Taranaki. Dry conditions affected Northland, the East Coast and South Island until April when most of the country experienced average rainfall. Winter rainfall in Southland was the lowest on record. Spring and early summer weather brought sufficient rain to most of the country.

AREA UNDER CULTIVATION
Cropland, pasture and plantations

Dairy production was above average in 1990 in most districts. Over 1990 the international prices of dairy products declined substantially. Farmgate prices for milk for the season ended May 1991 were 33 percent lower than those in the previous season. Farm incomes declined to the extent that dairy farmers were not able to afford fertiliser applications and other ongoing expenditure necessary to maintain long term productivity.

Sheep farm production declined largely as a consequence of the drought in the previous year. Wool production was down and the lambing rate declined. Sheep numbers continued to fall. Farmgate prices for wool, skins and mutton declined during the year. Lamb prices were relatively high at the beginning of the year but fell as the year progressed. Farm incomes in the season ended June 1991 were 31 percent lower than in the previous season.

The national beef herd increased slightly in 1990. Farmgate prices for beef cattle improved compared to the previous year. Beef production declined as farmers retained stock in order to increase their herds.

Kiwifruit and apple production increased in 1990, prices received for kiwifruit fell while returns to apple growers improved.

Table 15.1. FARMLAND USE BY LOCAL GOVERNMENT REGION, AS AT 30 JUNE 1990

 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)  
Northland84196536-135131027
Auckland and Great Barrier Island779527711-333383
Waikato86168496710761096
Tongariro1255356-2973627
Thames Valley377623411262321
Bay of Plenty63332871542801713
East Cape2076559648621810
Hawke's Bay34607601187619970
Taranaki45944341184553
Wanganui20355111103847682
Manawatu3749516210913574
Wairarapa1999433152428550
Horowhenua108955315378
Wellington56242--4367
              North Island55758596663549281678451
Marlborough15383124739282882
Nelson Bays22761336110828376
West Coast1290164--3030447
Canterbury5816562760535411352
Aorangi and Chatham Islands41026433117188291709
Coastal North Otago210428412233565932
Clutha-Central Otago27836682265412402121
Southland5237736137423381219
              South Island2514635032427037638539039
              New Zealand809049469883241304402117489

Table 15.2. LAND USAGE BY FARM TYPE, AS AT 30 JUNE 1990

Farm typeNumber of farmsGrassland and lucerneFruit vegetable and nurseryCropsPlantations of exotic timberTussock and danthoniaTotal area of farms*

*Including other land not classified above.

Grass 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.

ļIncludes flower growing, small-animal breeding, mushroom growing, tobacco and hop growing, beekeeping, research/educational farms, and farms not elsewhere classified.

    hectares (000)   
Dairy farming town supply†84283-1-190
Dairy farming factory supply†143681152146161271
Sheep farming†1310824541681519134740
Beef farming†7882538-2229806
Cropping†82027-46-279
Dairy farming with other‡16481761335211
Sheep farming with beef‡57042360-241912144023
Sheep farming with cropping‡923152-3618203
Sheep farming with other‡205042211414317831
Beef farming with sheep‡2321664-341831025
Beef farming with other‡149185-1453190
Cropping with sheep‡63267-44-2117
Cropping with other‡27612114--27
Pig farming§68021-3-129
Horse breeding and training§242843-1-150
Deer farming§2178159-3220244
Goat farming§55514----17
Other farmingļ1261525153485
Mixed livestock farming||3333711227322181118
Poultry including broilers§3286-1--8
Citrus orchards§33211---3
Pipfruit orchards§14528151-128
Stonefruit orchards§27422---4
Kiwifruit orchards§28011318-1-39
Berryfruit growing§32042---7
Grape growing§32324---7
Other fruit n.e.c.§70484-1117
Vegetable growing incl. tomatoes§2128482611-193
Plant nurseries§25822-1-5
Plantations of exotic trees§174558-1119451693
Idle land7739126-1-26427
                    Total, all farm types809049469883241304402117489

Table 15.3. FARM EMPLOYMENT, AS AT 30 JUNE 1990

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*13373114969276
Dairy farming factory supply*2348551043770675500
Sheep farming*1395351221905587718
Beef farming*70982513376166155
Cropping*7452621025920
Dairy farming with other†2389699430131138
Sheep farming with beef†675921862870479734
Sheep farming with cropping†11984311605973
Sheep farming with other†24321009414111129
Beef farming with sheep†2483859767147190
Beef farming with other†14766111234135
Cropping with sheep†8213191583226
Cropping with other†301109602833
Pig farming‡7982613015869
Horse breeding and training‡15637555769856
Deer farming‡23319942668968
Goat farming‡47921613611
Other farming||1209440533239227
Mixed livestock farming§385217041256244369
Poultry including broilers‡530108479384142
Citrus orchards‡3951222423124
Pipfruit orchards‡17935111197254713
Stonefruit orchards‡304103573098
Kiwifruit orchards‡306487110303412637
Berryfruit growing‡4081255665247
Grape growing‡3528717250588
Other fruit n.e.c.‡83229121774291
Vegetable growing including tomatoes‡29337981180508917
Flower growing‡885208351148154
Plant nurseries‡39462597246203
Plantations of exotic trees‡604387146892187
          Total, all farm types87203275782140455569928

FARMLAND
Total farmland by farm type

Table 15.4. CAPITAL EXPENDITURE ON FARMS

ItemYear ended June
1987198819891990

*Includes construction of permanent yards, airstrips, bridges, roading, and stock or dairy water-supply systems.

  $(000)  
Buildings136,437103,563112,885200,909
Construction*30,57624,35218,67623,948
Land development59,66958,93255,34583,114
Transport vehicles133,408123,780167,425198,811
Machinery103,08780,18389,078130,784
Working animals4,1571,7232,2233,050
                    Total467,334392,534445,632640,616

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.

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. Fertiliser usage has increased over the past two to three years, with total fertiliser application increasing by 200200 tonnes from 1989 to 1990. Around 11690 million litres of liquid fertiliser were spread by farmers during 1990.

Lime is used to correct soil acidity and increase the availability of trace elements. In 1990, 817127 tonnes of lime were applied.

Table 15.5. FERTILISER APPLICATION

Year ended 30 JunePhosphatic fertilisersOther fertilisersTotal
  tonnes (000) 
19861227.1710.11937.2
19871118.1606.31724.4
19881104.7618.81723.5
19891216.7711.01927.8
19901235.9892.12128.0

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
1986-871987-881988-89
  $(million) 
Purchase of livestock602575546
Feed and grazing244239258
Animal health and breeding176187203
Weed and pest control124117128
Fertiliser, lime, and seeds430420502
Fuel and power333329380
Repairs and maintenance495494641
Freight154145165
Other (not elsewhere classified)1,1531,2181,363
 3,7123,7234,185
Less, capitalised development231921
          Total, intermediate consumption3,6893,7044,164

Tables 15.6 and 15.7 show the consumption and production of major categories of products for the agricultural sector over the last three years.

Table 15.7. GROSS AGRICULTURAL PRODUCTION

CommodityYear ended March
1987-881988-891989-90
  $(million) 
Wool1,3851,5081,184
Sheep690610862
Cattle9511,2031,240
Pigs110101125
Dairy products1,2921,7902,042
Poultry products186192215
Crops and seeds260262325
Fruit, nuts, and oilseeds578549622
Vegetables297373412
Other horticultural products221227246
Agricultural services508568633
Other products, n.e.c.212243261
Value of change in livestock—   
    Sheep-40-32-27
    Cattle34-9396
    Pigs, Deer, Goats515863
Sales of live animals601585729
        Gross output7,3368,1439,027

Farm price indexes

A number of indexes showing change in the price level for goods and services purchased by agricultural producers are compiled by the Department of Statistics.

There are separate series available for: sheep and beef farming; dairy farming; mixed cropping; horticulture; pig, poultry and other farming. Together with agricultural contracting they form a major component of the Producers Price Index series.

Table 15.8. FARMING INPUTS PRICE INDEX*

Farm type: all input typesGroup FPIH SeriesInput Price Index for half-year ended:
  1988 JunDec1989 JunDec1990 JunDec1991 Jun

* Centred on the mid-point of the period Base: Half year ended 31 December 1987 (= 1000).

Sheep and Beef FarmsS3Z1012101310401092116411971188
Dairy FarmsS4Z1023106011171193124112401213
Cropping FarmsS5Z1010101610411075109611211119
Horticultural FarmsS6Z1021103310461081110311171117
Pig, Poultry and Other FarmsS7Z1015103510821134115811781176
All FarmsS9Z1014102410571112116911911180

The six agricultural sub-indexes are weighted and combined to produce an All Farming Inputs Price Index, shown in tables 15.8 and 15.9.

Table 15.9. FARMING INPUTS PRICE INDEX—ALL FARMING*

Input typeGroup FPIH SeriesInput Price Index for half-year ended:
  1988 JunDec1989 JunDec1990 JunDec1991 Jun

* Indexes in this series are centred on the mid-point of the period shown. Base: Half-year ended 31 December 1987 (= 1000).

AdministrationS9A1051107711041134117412011227
Animal health and breedingS9B1004104110471059107511121121
Dairy shed expensesS9C999100710291010103710481090
ElectricityS9F1025106610631068107010751086
Feed, grazing, cultivation and harvestingS9G1024106111421223121312201208
Fertiliser, lime and seedsS9H99799310571153113911371140
FreightS9I1030102610231025102710601067
FuelS9J9939669709279271021962
Insurance premiumsS9K1019101910351013102710491080
Rent and hireS9L1005101010151021102410241025
Repairs, maintenance and motor vehicle repairsS9M1032105910921113113711551179
Packaging costsS9N1031104810621092111911311128
ShearingS9O1041109811171129115711751189
SharemilkingS9P1000128912891788178812271227
Weed and pest controlS9Q1013101710321070110011131147
Livestock purchasesS9R100899210571220142915081461
Local & central govt. rates and feesS9U1013107710751095117912031206
InterestS9V9769479621005112411341058
Wages and salariesS9W1032106110751088110311181126
All InputsS9Z1014102410571112116911911180

Poisoned rabbits, Otaihanga.

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 13.1, 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.

In October 1990, all of MAF's policy standards setting and audit groups were consolidated into a new organisational group, MAF Policy. This move was designed to improve the co-ordination and quality of policy advice, remove potential conflicts of interest between commercial and policy activities and allow managers to focus on a narrow and better defined range of activities.

MAF has 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).

MAF aims to generate revenue from goods by policy and to provide results in productivity, protection, quality assurance and policy advice.

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. Strict quarantine laws are in place to prevent this and 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 that provide diagnostic services to monitor diseases present in New Zealand livestock.

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.

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.

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 ON FARMS
Total numbers

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’, section 15.1).

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.

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.

Over the last five years the sheep population has declined sharply from 67.8 million at June 1985 to stand at around 57.9 million at June 1990. The beef cattle population has remained fairly static at around 4.6 million, and the number of dairy cattle has increased to 3.5 million.

Table 15.1. DISTRIBUTION OF LIVESTOCK, AS AT 30 JUNE 1990

Local government regionDairy cattleBeef cattleSheepPigsDeerGoats
   (000)  
Northland3695911289101479
Auckland and Great Barrier Island216237715365061
Waikato827598342547114149
Tongariro25228230514532
Thames Valley447116356201534
Bay of Plenty3001469602610765
East Cape36347236332232
Hawke's Bay12427498387598
Taranaki5621721341252032
Wanganui39275352193243
Manawatu1612803364204132
Wairarapa751812873171940
Horowhenua5034144593
Wellington3102076215
          North Island3124364427844233564714
Marlborough26831432222130
Nelson Bays456064142543
West Coast65733141268
Canterbury571674585706852
Aorangi and Chatham Islands551495727418960
Coastal North Otago31782356111929
Clutha-Central Otago15167632554558
Southland471788630912069
          South Island34095730008162413349
          New Zealand34644601578523959761063

Milking time at Flock House's Sheep Milking Unit.

Sheep.

Data on sheep breeds indicate that there were 57.9 million sheep in New Zealand at the end of June 1990. 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.

Deer.

Deer farming 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. In recent years elk from Canada and deer from Europe have been imported.

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. Red, Wapiti, and fallow deer are the predominant farmed species. Currently there are about 5200 deer farms registered with the Department of Conservation and they hold over 976,000 deer.

Venison exports totalled 58,600 tonnes in 1991 with an f.o.b. value of $53.2 million. Velvet (antler) exports totalled $49.2 million f.o.b. This compares with venison exports of 3600 tonnes with an f.o.b. value of $39.5 million in 1990. Velvet exports for 1990 totalled $42.9 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 1990 there were 1.1 million goats, of which 72 percent were being farmed for mohair, cashmere and cashgora production. About 20,000 goats were being used for milking and 280000 goats were classed as ‘other’. In the 1990 calendar year, 250 tonnes of mohair, 178 tonnes of cashgora, and 84 tonnes of cashmere were produced.

Table 15.11. SHEEP CATEGORIES

At 30 JuneRamsWethersBreeding ewesHoggets
Rams and wethersEwesTotal
   (000)  
198683113754936735541234267470
198780015204700030491187664244
198876715904589738491249864600
198973518354351632341125060569
199068517614170031261058157852

Table 15.12. SIZE OF SHEEP FLOCKS

Size of flock at 30 June19861987198819891990
1-991062210494111641102111823
100-19927082536267926922400
200-49939693900393841613946
500-99936853653361935933477
1000-149932953247315432763191
1500-199933003391325531523057
2000-249932143189309829982907
2500-499969846610669161145829
5000-999920561875194317681675
10000 and over562520526475431
          Total flocks4039539415400673925038736
Average flock size16701630161215431493

Table 15.13. CATTLE CATEGORIES

CategoryYear ended 30 June
198819891990

*Heifers not yet in milk, and cows not in milk during season but intended to be used again for dairying.

Includes ‘bobby’ calves.

Dairy stock—   
    Cows and heifers, two years old and over—   
        Cows in milk or calf216714122278372305973
        Others*415414373352200
    Heifers—   
        One and under two years old451100445505474254
        Under one year old506722553037597929
    Bulls and bull calves intended for dairy breeding306322994131174
                  Total, dairy stock†319973033023773463802
Beef stock—   
    Breeding cows and heifers, two years old and over133909712379111265981
    Cows, two years old and over, not used for breeding165563136169139859
    Heifers—   
        One and under two years old479349449598479628
        Under one year old604023578314537429
Steers, bulls of all ages, and other beef cattle227013621240642177806
                  Total, beef stock485816845260564600703
                  Total, cattle805789878284338064505

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 15.14. MEAT PRODUCTION

ProductYear ended September
198719881989x19901991

Source: Ministry of Agriculture and Fisheries.

   tonnes (000)  
Beef539.3554.0544466524
Veal15.116.1161313
Mutton213.1197.2229186145
Lamb406.6417.7396348383
Pigmeat44.545.5454343
                    Total1218.61230.5123010561108

Table 15.15. LIVESTOCK SLAUGHTER AT MEAT EXPORT WORKS AND ABATTOIRS*

AnimalsYear ended September
198719881989x19901991

*Excludes killing on farms.

Source: Ministry of Agriculture and Fisheries.

  head of stock (000) 
Lambs31599x30389303362514927249
Sheep92967931975276757227
Adult cattle2276x2218229219352180
Calves and vealers862891911735741
Pigs774782779749748

MEAT PRODUCTION
Total

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 15.16. MEAT EXPORT PRODUCTION

Type of meatYear ended September
19861987198819891990†

* Figures may not add due to rounding.

Provisional.

Source: New Zealand Meat Producers Board.

  tonnes (000) shipping weight 
Lamb—carcasses298.8231.9208.2186.5125.2
        —other104.2x117.1x130.7137.1135.5
Mutton—carcasses31.851.851.175.952.0
        —other25.436.926.428.524.9
Beef—manufacturing165.5201.9205.8215.7185.2
        —other43.364.6x65.184.252.9
Veal6.78.6x6.07.38.4
Pigmeat-----
Goat meat---2.41.7
Variety meats44.757.2x41.839.536.9
Inedible meat and offal17.117.6x18.520.317.0
                    Total*737.5x787.6x754.6797.5639.6

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 $15.4 million in the year ended September 1990.

Table 15.17. MEAT BOARD LEVIES, 1 OCTOBER 1990

Class of meatCents per head*

*Excluding GST.

Source: New Zealand Meat Producers Board.

Lambs47
Other sheep and goats47
Bobby calves (under 27 kg)24
Vealers and other adult cattle420

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.

MEAT PRODUCTION
Export

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 the United Kingdom, Japan, Germany, Greece and Papua New Guinea for lamb; Japan, the Soviet Union and the United Kingdom for mutton; and the United States, Canada and Japan for beef. These eight markets accounted for 71 percent of New Zealand's total meat exports in 1989-90.

The 1989-90 New Zealand season saw production down in all areas due to the 1989 drought that affected the East Coast of both the North and South islands. This downturn was further affected by economic factors, resulting in an export kill that was down 17 percent for lambs, 23 percent for mutton and 16 percent for beef.

Sheepmeat.

During the 1989-90 season lamb exports decreased by 17 percent to 272,074 tonnes. Exports to the United Kingdom declined from 102 936 tonnes in 1988-89 to 93,477 tonnes in 1989-90. Lamb Exports to Iran were down at 8967 tonnes as no contract for supply was in place for the 1989-90 season.

Mutton exports decreased by 32.6 percent to 64,943 tonnes. The level of production resulted in a major reduction in sales to the USSR but a 12.27 percent increase in tonnage to 15,009 tonnes over the 1988-89 seasons volume of 13,167 was achieved to the United Kingdom.

Beef and veal.

New Zealand's biggest market for beef and veal in 1988-89 was the United States, with shipments totalling 184,041 tonnes. The next largest market was Canada, with 22,046 tonnes.

Imports of beef, veal, mutton and goatmeat into the United States can be subject to ‘voluntary restraint’ agreements or quotas under the US Meat Import Law. Restraints were not required in 1990. Canada can impose quotas on beef and veal imports although greater discretionary powers are vested in the Canadian government as to whether, and at what level, quotas are to be imposed.

MEAT EXPORTS
Volume exported by major type

Meat types

Sheepmeat

Lamb—is a sheep of less than 12 months of age or one which does not have any permanent incisor teeth in wear.

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.

Ram—is an adult uncastrated male sheep having more than two permanent incisors in wear.

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.

Beef

Steers, heifers, cows and bulls—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.

Veal and bobby calves—veal calves 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. Bobby veal carcasses are derived from milk-fed bovine calves generally under two weeks old.

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 and available from the New Zealand Meat Producers Board.

Beef sides stamped by inspectors are sorted.

Meat prices

The International Meat Trade Association in the United Kingdom compiles a weekly London wholesale meat price list, the basis of quotation being ‘ex-hooks to retailers at Smithfield Market’. In the absence of international standardised prices, the London whole-sale prices in Table 15.18 give the only indicative measure of world prices. Approximately 41 percent of the value of all New Zealand exports of frozen and chilled meat is generally accounted for by lamb.

Table 15.18. LONDON WHOLESALE LAMB PRICES

End of last week in MarchLamb (new season's product)
P GradeY Grade
9-12.5 kg13-16 kg16.5-20 kg9-12.5 kg13-16 kg

Source: New Zealand Meat Producers Board.

New pence per kilogram equivalent
1986145.5147.7143.3141.5144.4
1987126.8132.3131.2121.3131.2
1988130.1124.6114.7130.1122.4
1989127.9131.2127.9127.7130.1
1990153.2149.9145.5153.2147.7

Schedule prices.

Most meat processors publish their schedules of stock purchase prices in the weekly ‘Agrifax’ publication, daily newspapers and in company newsletters. Producers can sell their stock on schedule, on a pool account system, on the hoof, or through a producer co-operative.

The average net schedules for the last six seasons are given in Table 15.19. The schedule prices quoted are inclusive of pelt, slipe wool and hide payments.

Table 15.19. AVERAGE NET SCHEDULE PRICES

Class and grade of meat1985-861986-871987-881988-891989-901990-91

* Includes skin and one kilogram wool pull.

Prior to 1988-89 steer prices are for PI class.

Source: New Zealand Meat Producers Board.

Lamb ($/head)*—      
    PL, 9.0-12.5 kg10.2616.6914.1317.1826.2021.99
    PM, 13.0-16.0 kg14.7023.7218.2024.8335.9328.19
    YL, 9.0-12.5 kg10.9415.7614.0116.5024.5321.34
Mutton ($/head)*—      
    MX, 22 kg and under5.969.8213.1810.4718.8611.72
    ML, 22 kg and under6.5110.3913.1411.7420.4013.34
Beef (cents/kg)—      
    P2-Steer, 245.5-270 kg†166.2181.8167.9245.1287.2272.9
    K2-Steer, 245.5-270 kg†   237.7280.9268.6
    M-Cow, 145-170 kg136.4162.2145.8196.8238.1226.6
    Bull, 245.5-270 kg182.3201.4180.9241.2297.1284.7

Water buffalo, Flock House, Palmerston North. Buffaloes are sought after on international markets for both their low-fat meat and their thick hides.

15.4 Wool

New Zealand sheep are largely dual purpose meat/wool animals and their wool is predominantly strong; 75 percent of the clip is greater than 33 microns in diameter. This contrasts sharply with Australian wool, of which over 99 percent is less than 33 microns. New Zealand is by far the largest producer of strong wools, contributing 25 percent of the world total and two and a half times as much as either the Soviet Union or China, the next most significant producers. 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 13 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. 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 15.2. WOOL PRODUCTION*

Season ended 30 JuneFlock sizeYield/headTotal wool production (clean)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
198767.55.2260556
198864.25.4260604
198964.65.2254688
199060.65.1233615
199157.95.3227422

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; encourages efficiencies in the preparation, handling, distribution, shipping, and selling of wool; and promotes and undertakes extensive research and development work into wool and wool products.

The board is entirely funded by wool growers and has no government financial backing. The main sources of income for the board are: a levy on gross wool receipts ($58 million in the 1990-91 season) and interest on investments ($17.8 million for the 1990-91 season). The levy is set at 6 percent.

Sales and marketing.

Until February 1991, the New Zealand Wool Board operated two grower income support schemes. One of these, the Minimum Price scheme, was essentially a woolgrower-funded insurance scheme. Woolgrowers received supplementary payments if the market price fell below a set minimum price level. In the 1990-91 season the average minimum price was set at 485 cents per kilogram clean.

The other scheme, Market Support, operated at auction sales to support prices and smooth price fluctuations. The board would buy under this scheme when auction prices fell below pre-set levels and stockpile the wool for later sale.

The board's market support and minimum price schemes were suspended indefinitely in February 1991 and remained suspended for the 1991-92 season when low wool prices necessitated strong market support by the board, draining its financial reserves.

The board is still involved in valuing wool and offers a wool appraisal service for growers selling wool at auction and an answerphone price service which details prices at the most recent auction.

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.

The Wool Research Organisation of New Zealand (WRONZ) receives the majority of the board's research funding. In the year ended 30 June 1991 the board invested $5.1 million in research for WRONZ at Lincoln, Christchurch. Fundamental research is conducted on 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 provides services to manufacturers and retailers, and promotes wool to consumers in the overseas markets where New Zealand wool is used.

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 operating units world-wide. In the 1990-91 season New Zealand's share of the budget of the Secretariat was $92.4 million. For the 1991-92 season it will be $30 million.

Markets for wool

The most common way of selling wool in New Zealand is by open auction; 67 percent was sold this way in 1990-91. 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 (19 percent of sales in 1990-91).

Wool Board stocks rose to 72,000 tonnes by the end of the season. The average auction price fell almost one third during the season.

Table 15.21. WOOL SOLD AT AUCTION

Season ended JuneGreasy and scoured new season wool (clean equivalent)Average clean price per kilogramTotal sale valueAverage clean auction price (1990-91 cents)Board average minimum price per kilogram (clean)

Note: The minimum price scheme was suspended in February 1991.

Source: New Zealand Wool Board.

 tonnes (000)cents$(million)centscents
1987160556.21,025.1708443
1988167603.61,099.3697476
1989164687.61,146.8758500
1990163614.51,009.7632525
1991162422.0660.6422485

Around 90 percent of the New Zealand clip leaves the country in a greasy, scoured, or slipe form. 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 raw wool are shown in Table 15.22. During 1990-91 the largest importers were Japan, China, the United Kingdom and India.

With the exception of China and the Soviet Union, 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. India and Nepal have emerged as large customers for New Zealand wool, mostly for processing into handknitted carpets for export to Europe and North America.

Table 15.22. EXPORT DESTINATIONS OF NEW ZEALAND RAW WOOL

Country1986-871987-881988-891989-901990-91

Source: New Zealand Wool Board.

  tonnes clean equivalent (000) 
Japan2510820987194102143924646
United Kingdom2993423151196941725220298
Soviet Union251322202324129266647862
France68466586731443512924
China4860550069628741514719111
United States13188119191287299337491
West Germany1315012811109961179011220
Italy82635937584547477103
Netherlands1374810266820074275308
Belgium1455215213134121424612143
Australia and Pacific ls.10127115021071990758422
Other6075656201488014882662520
                    Total exports269499246665244246190697189108

Net domestic consumption of wool in New Zealand is among the highest in the world on a per head basis. In 1989 this was estimated at 3.56 kg per head compared with 1.99 kg in Australia, 2.21 kg in West Germany, 1.61 kg in the United Kingdom, and 0.53 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 15.23 shows the relative positions of the main exporting countries.

Table 15.23. MAIN EXPORTERS OF RAW WOOL, 1990-91

CountryActual weight*Percent of total

*Actual weight, not clean weight.

Source: New Zealand Wool Board.

 tonnes (000)
Australia51350
New Zealand20120
Argentina565
South Africa505
Uruguay374

Wool product exports.

The most important wool product exports from New Zealand are floor coverings and yarns. The value of floor coverings exported has fluctuated over the last three years. In 1990-91 it decreased by 20 percent, to $65 million (f.o.b.). Yarn exports also fell in value to $75 million (f.o.b.), a 19 percent decrease on the previous year. Other wool-based export items include: raw and processed sheepskins, tops, wool waste, blankets, fabrics, knitwear and other clothing.

Total export earnings from wool products decreased by 17 percent to $200 million in 1990-91. These exports are summarised in Table 15.24.

Table 15.24. WOOL PRODUCT AND SHEEPSKIN EXPORT EARNINGS*

Product1987-881988-891989-901990-91

*Year ended 30 June.

Source: New Zealand Wool Board.

  ($ million f.o.b.) 
Wool floor coverings78.470.281.165.1
Wool yarn88.1105.992.775.4
Sheepskins—raw16.520.76.94.1
Sheepskins—processed26.529.635.033.5
All other24.727.825.722.1
                    Total234.2254.2241.4200.2

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 of 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 15.25. MILK PRODUCTION AND UTILISATION

Product1984-851985-861986-871987-881988-891989-90P

*Year ended 31 March. milk consumption.

Includes milk fed to stock and waste.

Year ended 31 August.

§Some milk sent to dairy factories is sold for liquid

Source: New Zealand Dairy Board.

million litres
Production*      
Total milk production†764780097031770568377214
Utilisation      
Volume of town milk sales350339336342341337
Milk sent to dairy factory696573266385692064966877

Table 15.26. DAIRY FACTORY UTILISATION OF MILKFAT AND PROTEIN*

Product1986-871987-881988-891989-90

*Year ended 31 May.

Source: New Zealand Dairy Board.

  tonnes (000) 
Milkfat utilisation    
Butter211.0240.0205.0221.5
Cheese41.945.444.043.0
Other whole-milk products48.042.364.065.5
          Total300.9311.3313.0330.0
Protein utilisation    
Cheese  40.739.6
SMP  63.776.9
Other milk powders  58.854.2
Casein  68.554.0
Other products  2.323.0
          Total  234.0247.7

Table 15.27. DAIRY FACTORY PRODUCTION

Product1987-881988-891989-901990-91P

Source: New Zealand Dairy Board.

  tonnes 
Creamery butter241912188896231659215681
Anhydrous milkfat22942354652841634098
Frozen cream6053782458356081
Cheese138414127944121993126990
Whole-milk powder171164186745159803233295
Infant food12848133271488916214
Skim-milk powder171109154237183867147528
Buttermilk powder27024241422720424104
Casein products65759545406290765657
Lactose17655186191858722520
Whey powders14281129561233710580

Dairy organisations

There are presently 17 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 New Zealand market, known as town milk, has traditionally been produced by different farmers from those who supply dairy factories. However, during recent years some companies which have interests in both town milk and manufacturing dairy products have ceased drawing milk from separate sources but they have offered a winter premium for town milk supplies.

Until 31 March 1988, the town milk industry was regulated mainly by the New Zealand Milk Board. The board was abolished on that date.

The Milk Act 1988 provided for the establishment from 1 April 1988 of the New Zealand Milk Authority. The principal purpose of the Act is to maintain the home delivery of milk. Town milk processors have licences to provide milk within their own home delivery districts.

The town milk industry is now considerably less regulated than it was before 1 April 1988. The current Act expires on 31 March 1993 when the Authority will be abolished and thereafter the industry will be fully deregulated.

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 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.

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.

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. There has been reduced access to both the United Kingdom and the European Community butter market; Britain, however, remains New Zealand's most valuable market for butter. The European Council of Agriculture Ministers have determined that the volume of butter imported will decrease, down to 55,000 tonnes in 1992. The Soviet Union, now the Commonwealth of Independent States, is an important purchaser of our butter, as is the Middle East and North Africa, both of which have recently risen to prominence as markets for New Zealand produce.

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.

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.

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 1989 and 1990. Total New Zealand dairy produce sales revenue was $2.6 billion in the year to 31 May 1990, compared with $2 billion in 1989.

Export markets 1991.

The Dairy Board's sales throughout the 1990/1991 season were achieved against the tide of a difficult market. Unlike the other suppliers to the international market, the New Zealand dairy industry has no support in the form of government-funded surplus acquisition systems. As a consequence it had no alternative but to continue selling in a falling market. Thus while returns for the season were barely sufficient to maintain farm viability, sales continued to be made, with several involving major and very complex deals. One such deal was the 100,000 tonnes sale of butter to the Soviet Union, the board's largest and most complicated transaction ever.

A somewhat firmer price trend over the latter months of the season, coupled with the fact that all production was sold by year's end, indicated that the 1991/1992 season would see more growth in the New Zealand dairy industry's fortunes. Significant events during the year were:

  • Continuing expansion of business with Algeria, with sales worth $200 million during the year.

  • Return of Venezuela to the market as a major whole milk powder buyer, taking 30,000 tonnes from New Zealand during the year.

  • Loss of substantial traditional business with both Iraq and Kuwait through the Gulf War.

  • Acquisition of a 51 percent interest in Recombined Dairy Systems A/S, a small technology company specialising in milk recombining for white cheese.

  • Acquisition of the remaining 50 percent of Key Ingredients Inc., a cheese technology company based in the United States.

DAIRY PRODUCTS*
Total sales by region

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.

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 three seasons are given in Table 15.28, 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 15.28. PRICES FOR MILKFAT AND PROTEIN

Season ended 31 MayMilkfatProteinEnd of season distributionTotal whole-milk (milkfat equivalent)

Source: New Zealand Dairy Board.

 cents per kilogram of milkfat 
1988209.00202.0-360
1989264.00356.030.00530
1990269.28413.820.00580

15.6 Pigs, poultry and bees

Pigs

In recent years the numbers of pigs have shown a steady decrease but because pigs are being marketed at heavier weights the tonnage of meat produced has decreased at a much slower rate. Total pig numbers as at June 1990 were 394,000. 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 15.29. PIGS

At 30 JuneBreeding sows one year old and overOther pigs of all ages (including boars)Total Pigs
198647612387400435012
198749653375889425542
198847183366375413558
198944471356120411334
199044665340013394701

New Zealand Pork Industry Board. This body comprises five pork producer members and four other appointed members. 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.

The National Pig Breeding Corporation of NZ Limited, a subsidiary company of 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. This provides funding for the:

Promotion and marketing of pork and pork products, and in particular, the board's Trim Pork brand; Pig production research and basic nutritional research at Massey University; The Pork Industry Training Scheme; A Technical/Consultancy Service; The Environmental Task Force which funds environmental research as it affects the pig industry and the Code of Practice—Pig Farming, which set out standards for piggery establishment and management.

The board also funds a scheme to eradicate Aujeszky's disease from pig herds in some parts of the North Island.

Poultry

In the last 10 years, New Zealand has seen the refinement and development of its poultry meat industry. Improvements in production and processing have been achieved through improved management, nutrition and genetics, greater processing efficiency, and strict quarantine regulations.

In New Zealand, since 1965, annual chicken meat consumption has increased from 1 kilogram per capita to approximately 18 kilograms of chicken per capita and another 2 kilograms of turkey and other poultry. From 1986 to 1989 chicken consumption increased by 27 percent. A factor towards this increase is that chicken is now half the price per kilogram of what it was in 1972.

Chicken's share of the total marketplace has increased from 5.6 percent in 1975 to around 18 percent in 1990. There has also been a trend from frozen to fresh chicken. In 1985 frozen chicken accounted for 55 percent of consumption and 45 percent was fresh. It is expected that the fresh product will be 75 percent of the total consumption within five years.

Table 15.3. CHICKEN PRODUCTION

YearBirdsDressed weightFreshFrozen

Source: Poultry Industry of NZ Inc.

 numbertonnespercent
1986377090004602746.153.9
1987389250004777747.852.2
1988421460005283549.250.8
1989455830005873251.148.9
1990434690005537955.244.8

A major factor in the growth of the industry has been the advent of new product lines. Over the next five years, rapid development is also predicted in the areas of turkey and duck consumption. Turkey especially, both production and products, is expected to follow the pattern of development in consumption set by chicken.

Ninety percent of the chicken meat industry is owned and controlled by four main companies: Goodman Fielder Wattie, Ingham Enterprises Limited, P H van den Brink Limited and Poultrymens Co-operative Limited.

Eggs.

The late 1980s saw the abolishment of both price and production controls in the egg industry, and the disestablishment of the New Zealand Poultry Board. The state of the egg industry and the position of wholesalers has changed considerably due to deregulation.

Many producers now sell direct to the wholesale and retail trade. Consequently there has been a dramatic fall in the wholesale price of eggs and returns to the producer, however, a similarly significant fall in the price of retail eggs for the consumer has been slow and has varied widely throughout the country.

Falling returns have resulted in many producers leaving the industry with the total number of egg producers reduced to 270 in 1991, compared with 2500, 10 years ago. A further decline in the number of producers is expected, leaving a smaller number of larger operators.

Deregulation has made available to the consumer a wider choice of types of eggs from standard white and brown, to wholemeal, vegetarian and free range eggs, jumbo size and other premium packs and an increase in tray eggs and self-packing in retail outlets.

During 1991 egg producers, through the Egg Producers Federation of NZ Inc., made efforts to form a national body to represent the egg industry's interests. As at October 1990, their application for funding was before the Minister of Agriculture.

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.

Honey gathered from Ling Heather (Caluna Vulgaris) is four times as valuable as clover honey. It is gathered over a six-week period, from mid February to late March, around the lower slopes of Mt Ruapehu. There is no demand for this honey in New Zealand, it is all exported. A much larger crop of this honey could be produced but the Tongariro National Park will not allow bees to be placed on the park.

In the year ended 30 June 1991 the total honey crop was assessed at 7290 tonnes, compared with the previous year's crop of 8752 tonnes, with an average production of 23.3 kilograms per hive. 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.

The industry's other products include beeswax, pollen, package bees and queen bees. Exports of queen bees and package bees are expected to grow, with continuing demand from North America.

There is also an increasing demand for bees for crop pollination. Colonies are transported specifically for the purpose of orchard pollination (mainly for kiwifruit, berryfruit, apples, and stonefruit).

Approximately 300 beekeepers completely depend on beekeeping for their livelihood. A further 250 earn at least part of their income from beekeeping. Commercial and semi-commercial beekeepers 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 1990.

Table 15.31. APIARIES AND HONEY PRODUCTION*

DistrictBeekeepersApiariesHivesHoney production

*Year ended 31 May.

Source: Ministry of Agriculture and Fisheries.

  number tonnes
1990    
Whangarei1580357633982660
Hamilton6593107475961154
Tauranga6563664547641296
Palmerston North1391406439728894
Blenheim548205223713471
Lincoln7834848566772774
Alexandra5934475587431503
                    New Zealand6210257863182038752
1991    
Whangarei1307304632475668
Hamilton6493105456611057
Tauranga6193541537171470
Palmerston North1340391740528811
Blenheim505197223284265
Lincoln7684937582391965
Alexandra5864482583381054
                    New Zealand5774250003122427290

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, Hawke's Bay and Wanganui-Manawatu there have been increased arable plantings, particularly of malting barley. Meanwhile plantings have begun in other regions such as Wairarapa. Other crops comprise wheat (mainly for domestic use), oats, maize, peas, herbage seeds and some herbs, and oilseed rape (for both domestic and export markets).

Major crops for the export market include kiwifruit, pipfruit, 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.

Novel vegetable crops produced by MAF Tech research.

Table 15.32. GRAIN AND PEAS, 1990*

CropArea sownYields
North IslandSouth IslandTotalNorth IslandSouth IslandTotal

*Year ended June.

Wheat5871347794065026994161053188047
Oats1960186962065675887128978877
Barley14679820569673567899366957434856
Peas2566151861775288884849157379
Maize17248308175561588612790161651

Wheat

New Zealand wheat is primarily grown for domestic human consumption or for use as stock feed. Wheat constitutes 21 percent of the area planted in grain crops.

Most wheat is grown in the South Island in the Aorangi and Canterbury local government regions. In the year ended June 1990 these regions provided 70 percent of the total production of 188,047 tonnes.

Barley.

Most barley grown in New Zealand is used for the manufacture of stock feed and for malting. Exports of malting and feed barley fluctuate in response to price changes, which reflect international supply and demand.

Of all the grain crops, the area sown in barley showed the largest increase from 86,512 hectares in 1989 to 96,735 hectares in 1990. Barley makes up 49 percent of the area planted in grain crops. The main growing area is the middle and southern parts of the South Island. In 1990, 42 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 11 percent of the total crop in 1990.

Maize.

Primarily grown in the eastern North Island, maize is used as poultry feed and increasingly as a supplementary feed for pigs and other livestock. Of the area planted in grain crops, maize makes up 9 percent. In 1990 the Waikato local government region provided 32 percent of the crop, and the Bay of Plenty 21 percent. The total yield was 161,651 tonnes in 1990.

Oats.

Grown mainly for threshing and green feed, oats are also used to produce milled rolled-oats, oatmeal, and oaten foods. The total yield for oats was 78,877 tonnes in 1990, covering 11 percent of the area planted in grain crops. The main local government regions for oats are Aorangi and Southland, which provided 30 percent and 34 percent respectively of the 1990 crop of 64,044 tonnes.

Field peas.

In 1990, 72 percent of the total yield of 57,379 tonnes of peas were grown in the Canterbury and Aorangi local government regions in the South Island. Of the total area planted in grain crops, field peas make up 9 percent.

Potatoes.

The production of potatoes is usually adequate to meet home market requirements. In 1990, the total area planted in potatoes was 101,706 hectares. The main growing areas are the Waikato and the Horowhenua and Wellington local government regions. Potatoes make up 25 percent of the total area planted in vegetables.

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). There are considerable exports of certified seed to EC countries, the Pacific Basin, and North and South America.

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. 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 1991, 469,774 tonnes of fresh fruit at a value of $863.3 million was exported. Table 15.33 outlines the main types of fruitgrowing in New Zealand.

Table 15.33. AREAS PLANTED IN FRUIT

FruitAt 30 JuneMain districts
198819891990
hectares
Citrus—    
    Grapefruit/Goldfruit222200204Bay of Plenty
    Lemons282277279Bay of Plenty
    Mandarins358426490Northland, Bay of Plenty
    Oranges792770833East Cape, Northland
    Tangelos502493475Bay of Plenty, Northland
Pip fruit—    
    Apples96701025211333Hawke's Bay, Nelson
    Pears798759903Hawke's Bay, Nelson
    Nashi (Asian Pears)757762739Auckland, Bay of Plenty
Stone fruit—    
    Apricots832857854Otago
    Nectarines11491058946Hawke's Bay, Otago
    Peaches115011321101Hawke's Bay, Auckland
    Plums330303324Hawke's Bay, Auckland
    Cherries259269283Marlborough, Otago
Berry fruit—    
    Blackcurrants655616703Canterbury, Southland
    Blueberries532495346Waikato
    Boysenberries421365311Nelson, South Auckland
    Raspberries388340285Nelson, Waikato
    Strawberries246245313Auckland
    Other brambles806860Waikato, Nelson
Subtropicals—    
    Avocados129613141354Bay of Plenty, Northland
    Feijoas283255272Bay of Plenty
    Kiwifruit189051769417508Bay of Plenty
    Tamarillos477436420Northland
    Passionfruit807575Bay of Plenty
    Grapes (outdoor)487148325408Hawke's Bay, Gisborne, Marlborough
    Persimmons441460488Auckland

Grape growing and wine production.

The estimated net area of the vineyards throughout New Zealand as at June 1990 was 5408 hectares, compared with 4832 hectares a year before. The main grape-growing areas are Gisborne, Hawke's Bay, Marlborough, Auckland, and Poverty Bay.

Table 15.34 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 1988-89 season increased, from 42.7 million litres the previous year to 45.6 million litres, an increase of 1.1 percent. Sales of table wine increased by 2.7 percent.

Table 15.34. WINE STOCKS

Grape and fruit wineYear ended June
1986198719881989

*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*85,12974,19466,41457,206
Production during season43,03641,78642,68853,068
Disposals during season52,43248,17949,46643,953
Winery stocks at end of season*74,08566,17257,51464,876
Losses during season, samples, spillages, own-consumption, etc.1,6501,6282,1211,445

Table 15.35. WINE PRODUCTION AND SALES

Grape wineYear ended June
19881989

*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 juice
        (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}
1,409*1,198*
    Winemakers' production from current vintage  
Table wine—White still30,75338,627
            Red and rose still4,4295,160
            Sparkling2,276*339
            Coolers (grape wine content only)--
            Total table wine37,45944,127
Fortified wine† (including all cocktail liqueurs)1,7351,519
            Total production40,60345,646
Sales  
Table wine—White still29,67824,826
            Red and rose still3,4183,340
            Sparkling4,9204,771
            Coolers (grape wine content only)2,7921,882
            Total table wine40,80734,827
Fortified wine†7,0395,842
            Total sales47,84740,669
Stocks at 30 June  
    Table49,00355,057
    Fortified7,5348,258
            Total56,53663,315

Pipfruit (apples, pears, Asian pears/nashi).

As at June 1990 a total of 11,333 hectares were planted in apples and 903 hectares in pears. The main production districts were Hawke's Bay and Nelson. The main apple varieties are Granny Smith, Red Delicious types, Gala, Royal Gala, Braeburn, Fuji and Cox's Orange. The main European pear varieties are Packham's Triumph, Buerrré Bosc, and Doyenne du Cornice.

Asian pears from Japan are gaining in popularity. Seven hundred and thirty nine hectares were planted in Asian pears as at June 1990. The main Asian pear districts are Auckland and Bay of Plenty. The main varieties are Hosui, Kosui, Nijisseiki, Shinseiki, and Shinsui.

During the 1990-91 season a record crop of 20 million cartons was handled by the New Zealand Apple and Pear Marketing Board, with a record turn-over of, $541 million. Export sales of fresh fruit equalled $402,593,000.

Apple and European pear marketing is under the control of the New Zealand Apple and Pear Marketing Board. This organisation is the sole marketer 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.

Asian pear marketing is well organised, with this fruit being exported through licensed exporters.

Sorting Red Delicious apples for export, Earnscleugh.

Table 15.36. APPLES AND PEARS RECEIVED BY THE NEW ZEALAND APPLE AND PEAR MARKETING BOARD*

VarietyHawke's BayNelsonOther districtsTotal

*Season ends 30 September.

18.5 kg carton.

Source: NZ Apple and Pear Marketing Board.

  (000 cartons†) 
1990    
Apples9,1275,0022,71516,844
Pears177171108456
                    Total receipts9,3045,1732,82317,300
1991    
Apples10,1136,1283,27919,520
Pears173182108463
                    Total receipts10,2876,3103,38619,983

Summer fruits.

At 30 June 1990 the areas planted in summer fruits were: apricots, 854 hectares; cherries, 283 hectares; nectarines, 945 hectares; peaches, 1101 hectares; plums, 324 hectares.

The main summer fruit production areas are Hawke's Bay, Marlborough, Central Otago, Canterbury, and Auckland.

Most summer fruits are produced for local consumption, although exports have increased from 3498 tonnes with a value of over $9.5 million in 1990, to 3937 tonnes with a value of $12.3 million in 1991. Nectarines account for 52 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 New Zealand Horticulture Export Authority.

Kiwifruit.

Kiwifruit has become New Zealand's leading horticultural export, with sales revenue in 1990 of $659 million. Export volumes have increased dramatically over the past decade and in 1990—the second season of the New Zealand Kiwifruit Marketing Board, which is sole exporter except to the Australian market—sales reached 62.8 million trays, 42 percent up on the previous year. The rate of growth is shown in Table 15.37.

Kiwifruit is produced in all regions of the North Island, as well as the north of the South Island. The Bay of Plenty, with more than 60 percent of production, is the major production area.

The Kiwifruit Marketing Board's sales in its three major markets in 1990 were Europe, 35.5 million trays (56.5 percent of total), Japan, 15.7 million trays (25 percent) and North America, 8.6 million trays (13.7 percent).

Table 15.37. GROWTH IN KIWIFRUIT PRODUCTION

YearArea hectaresProduction traysExport* trays

*Trays packed for export—not sales.

Source: Kiwifruit Marketing Board Authority.

  (millions)
19818,05710.076.214
199015,89581.072.1
199115,40074.359.8

Citrus and subtropicals.

Although small compared to the kiwifruit and pipfruit industries, export markets are being developed for a large number of these crops. In 1991, 1476 tonnes of avocados were exported at a value of $5.1 million. Persimmons have increased their exports from 407 tonnes in 1989 to 1045 tonnes in 1991, with a value of $5.1 million. Exports of citrus fruits have increased from 405 tonnes in 1989 to 689 tonnes in 1991, with a value of $1.301 million. The citrus product group and many of the subtropical product groups have become recognised product groups under the New Zealand Horticulture Export Authority. Many of these groups have formulated an export marketing strategy which usually includes a quality management programme, export licensing, grower registrations and market monitoring.

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. New Zealand Kiwifruit Marketing Board, New Zealand Horticulture Export Authority.

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 28 percent or 7.4 million hectares of New Zealand's land area. Of this, about 6.2 million hectares are in natural 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 about 2 percent of New Zealand's plantation forests. The most important hardwood plantation species are eucalypts originating from Australia.

New planting has declined from a peak of 56,000 in 1985 to 20,000 in 1988, although nearly all areas which were already in forest were replanted after harvesting. A small increase in new planting from the 1988 level was recorded for 1989 with 21,000 hectares planted.

Although radiata pine is the principal plantation species its properties mean it is not suitable for all uses, especially where decorative features, dimensional stability and surface hardness are important. With the declining supply of timber from natural 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 two 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 twofold increase over the next ten years. However, major increases in supply are not expected until after the year 2000.

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 13.1, Organisation of science, while the role of the Ministry of Forestry is summarised in section 2.3, State sector.

Resources

Plantation forests.

Trees planted in the eras of boom afforestation (between 1923 to 1936 and 1961 through to the 1980s) are reaching large-scale utilisation. There are now 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.

Special-purpose plantation species have also been evaluated and these are increasingly being planted by small scale forest growers on suitable sites. Uses for these timbers include furniture, cabinet work, turnery, joinery, veneers and boat-building.

Table 16.1. FORESTRY PLANTING AND PRODUCTION: SUMMARY 1921-1991

Year ended 31 MarchTree plantingsRough-sawn timberWood pulp†Newsprint, other paper and paperboard
StatePrivate

*Series commenced.

Chemical and mechanical wood pulp.

 hectareshectarescubic metres  
 (000)(000)(000)tonnestonnes
1921*1 726  
192542812  
19302316668  
193558575  
1940 379322113,079
1945 180315,68120,949
1950 21,13121,78122,136
19552 1,45353,01640,917
1960321,638221,408164,255
1965951,739370,499316,104
19701581,803521,654445,976
197521232,086843,244546,834
198018262,0001,122,456673,834
198520362,3061,144,911770,098
19893171,8761,259,005735,207
1990  2,1211,233,809757,371
1991P  2,2691,348,760822,340

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 164,000 hectares are largely administered by Timberlands West Coast Limited for long-term sustained yield or to meet contractual demands for sawlogs.

Management of the state's 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.

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 the state's 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, with areas of mature and immature kauri set aside as sanctuaries and programmes of research and artificial establishment also conducted.

The Ministry of Forestry's policy is that any harvesting of beech forest should be 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.

FOREST PLANTATIONS
Annual plantings by state and private sectors

Ownership of forests

Many of the earlier plantation forests were developed by the state, but the impetus for development and ownership has moved increasingly to the private sector over recent decades as the industry's capital and infrastructure has expanded. This led to the sale in 1990 of 247,000 hectares of the state's plantation forest resource.

Prior to this sale ownership of plantation forests was shared almost evenly between the public and private sectors. Today approximately three-quarters of the resource is in private ownership. The state holds the majority of the natural resource available for wood production.

Sale of state forest assets.

The sale of management and cutting rights to Crown commercial forestry assets was officially launched by the New Zealand Forestry Corporation Limited on 25 October 1989. Rights to about 550,000 hectares of plantation forests were offered for sale in 90 units of varying sizes. The state-owned sawmilling operations at Waipa and Conical Hill were also offered for sale. However, the sale did not include the land or Maori leased forests. Prospective bidders were provided with detailed information on the sale, and bids for the forests were called prior to 30 June 1990. There was no distinction between domestic and overseas bidders. The Government retained the right to remain the owner of the resource if bids received were unacceptable.

Following consideration of the bids, management and cutting rights to 247,000 hectares were allocated to new owners, while the rights to 304,000 hectares remained unsold. Major purchasers of the state plantation forest resource were the established New Zealand forestry companies Carter Holt Harvey Limited, who purchased 100,000 hectares, and Tasman Forestry Limited, who purchased 49,000 hectares.

Several foreign owned companies made significant investments in New Zealand plantation forests. Juken Nissho Limited acquired the rights to 44,000 hectares, Earnslaw One Limited acquired 24,000 hectares, and Wenita Forestry Limited acquired 21,000 hectares.

The Conical Hill sawmill was purchased by Earnslaw One Limited, but the Waipa sawmill remains in Crown ownership.

Where management and cutting rights were not sold plantations were transferred to three new state-owned enterprises: Forestry Corporation New Zealand Limited, Timberlands West Coast Limited and New Zealand Timberlands Limited. The Minister of Finance subsequently announced in the 1991 Budget Government's intention to sell New Zealand Timberlands Limited which manages about 117,000 hectares of plantation forest.

An agreement between the Crown, the Maori Council and the Federation of Maori Authorities provides security of tenure for purchasers of state plantations and protects the interests of Maori who have claims before the Waitangi Tribunal. Purchasers 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 is automatically 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 forests in New Zealand is 1.24 million hectares. Approximately 43 percent of the resource is owned by two companies, Carter Hold Harvey Limited and Tasman Forestry Limited. Juken Nissho Limited, Earnslaw One Limited and Wenita Forestry Limited own about 7.5 percent of the resource among them.

Controlled pollination of Radiata trees.

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. Over half the country's plantation forests are located there, with one-quarter of the regional labour force engaged in forest industries. Forest industries have had a marked effect on regional development. Established towns, such as Rotorua, have expanded, while industrial development has led to the establishment of a completely new town—Kawerau—and the rapid growth of another—Tokoroa. The development of such industrial complexes has also stimulated other industries, especially transport, vehicle repair, building and construction and the tonnage passing through the ports of Tauranga, Napier and Nelson.

The Department of Statistics' annual Business Directory update recorded a total of 25,604 people engaged in timber-related industries in 1991. There were 3131 people engaged in forestry, 3388 in logging, 5625 in sawmilling, 7649 in timber merchanting, and 5811 in pulp and paper manufacturing and wholesaling. This compares with 24,735 people employed in the same activities in 1990.

Education and training.

Canterbury University offers a Bachelor of Forestry Science, a Bachelor of Engineering (Forestry) degree, a Diploma in Forestry and other post graduate qualifications. At Waikato University a forestry option has been introduced to the Bachelor of Science (Technology) degree. The University of Auckland, in partnership with the Pulp and Paper Research Organisation, provides 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.

Waiariki Polytechnic operates 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 block courses and other types of training in saw doctoring, timber machining, sawmill practice, timber grading and preservation.

Other polytechnics, as well as ACCESS/TOPs courses, provide pre-entry training in forestry, including logging.

Work and safety standards in forestry and logging are set and administered by the Logging & Forest Industry Training Board. The board has developed an accreditation system for forestry and logging skills.

The pulp and paper industry runs a Trade Certificate in Pulp & Paper Technology, as well as a Certificate in Pulp & Paper Technology aimed at the managerial level of employees.

The Forest Industry Training and Education Council (FITEC) was formed in March 1991. FITEC is concerned with co-ordination, policy and funding for various education and training programmes in forestry and solid wood processing. It maintains a regional network of FITEC Boards to co-ordinate and implement programmes at a local level.

FITEC, in partnership with the Ministry of Forestry, has embarked on a major project to introduce forestry related materials into schools. This programme is funded through sponsorships.

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. The most recent census formed part of the 1987 Economy Wide Census. The results from the census are updated annually by the Annual Enterprise Survey. Both the censuses and the Enterprise Survey cover the activities of all businesses classified in Division 12 of the New Zealand Standard Classification. A summary of results is given below.

Table 16.2. FORESTRY AND LOGGING: STATISTICAL SUMMARY

Statistical item1986-871987-881988-89

*Includes values of standing timber, where so valued.

Excludes value of standing timber.

  number 
Group enterprises564749
Enterprises within these group enterprises1069894
Enterprises not within these group enterprises107711491097
Activity units (including ancilliaries)144014861430
Full time equivalent persons engaged101947356 $(000)6870
Stocks—
    Closing*23,35725,31217,767
    Opening*21,47424,75034,004
Income—
    Sales of goods and services625,005846,712975,467
    Interest and dividends received10,3638,45430,944
    All other income received134,30951,37451,007
        Total income769,698906,5391,057,418
        Adjusted for change in stock values772,081907,1011,051,182
Operating expenditure—
    Salaries and wages171,819100,56195,332
    Depreciation27,25816,77716,535
    Interest, bad debts, etc.64,11123,97524,613
    Indirect taxes8,7507,00510,250
    Purchases104,308144,651153,923
    All other operating expenditure375,411500,699549,525
        Total expenditure751,658793,699850,178
    Working proprietors/partners salaries and wages8,41211,77913,039
    Net profit before tax after deducting working proprietors/partners salaries and wages12,011101,654187,964
Economic values—
    Operating surplus74,171128,953194,673
    Value added*167,380264,210326,441
Fixed tangible assets—
    Purchases during the year53,171104,04041,913
    Sales during the year24,90616,36919,638
Balance sheet—
    Shareholders funds, etc.1,061,5901,478,7011,333,348
    All other liabilities552,494959,3341,128,027
    Total capital and liabilities1,614,0842,438,0362,461,376
    Fixed tangible assets439,487539,615431,783
    All other assets†1,174,5971,898,4211,029,593
        Total assets1,614,0842,438,0372,461,376
Ratios—
    Value added per full-time equivalent persons engaged16,41935,91847,475
    Value added per $1,000 of salaries paid9742,6273,242
    Total sales and other income per full-time equivalent person engaged15,501123,238 percent153,784
    Net profit per total sales and other income1.611.211.8
    Total salaries and wages per total sales and other income22.311.19.0
    Value added per total sales and other income21.829.130.9
    Shareholders funds per total capital and liabilities65.860.654.2
    Fixed assets per total assets27.222.117.5

16.2 Timber and forest products

Timber

Roundwood.

In 1990-91 roundwood (logs unbarked and untreated) supplied 12,927,000 cubic metres, or 97 percent of the total supply. Table 16.3 shows the quantities of round-wood removed from the forests of New Zealand to support approximately 260 sawmills, 4 plywood, and 7 veneer plants, 3 particleboard mills, 6 pulp and paper mills, and 5 fibreboard mills in 1990–91. This roundwood production does not include firewood.

Table 16.3. ROUNDWOOD PRODUCTION

Year ended 31 MarchNatural forestsPlantation forestsTotal

Source: Ministry of Forestry.

  cubic metres (000) 
1987563x9050x9613
198857091189688
1989377x10242x10619
19903601151111871
19913791292713306

Sawn timber.

Radiata pine and other pines account for about 88 percent of the total cut of exotics and Douglas fir for most of the remainder. About 4 percent of the country's sawn timber production comes from the natural forests, and this proportion has reached the point where only a small, sustained yield in native timber is possible for special purposes.

Table 16.4. ROUGH-SAWN TIMBER PRODUCTION

Year ended 31 MarchSoftwoods fromHardwoods fromTotal
Natural forestsPlantation forestsTotalNatural forestsPlantation forestsTotal

Source: Ministry of Forestry.

   cubic metres (000)    
198793x1963x2056x181192073x
19886817331801x171x18x1819x
198960x1801186115x-16x1877x
19907120332104161172121
19917321832256121132269

Table 16.5. SAWN TIMBER PRODUCTION BY SPECIES

SpeciesYear ended 31 March
19871988198919901991P

Source: Ministry of Forestry.

Natural forest—  cubic metres (000)  
Rimu and miro8562586870
Matai-1---
Totara11---
Kahikatea74232
Tawa108565
Beech8910107
Other----1
          Total, natural111x85758785
Plantation forest—
Pines17641556x1579x17991935
Douglas fir174163191212222
Eucalypts111-1
Other28x1630x2326
          Total, plantation1967x1736x1801x20342184
          Total, all species20791821x1876x21212269

Round and split produce.

As with forest products in general, most post and pole requirements formerly met by native round and split produce are now met from exotic resources. A dramatic increase in the volume of posts and poles treated with preservatives in the years 1955 to 1985 indicated the switch from native to introduced roundwood, together with the effective introduction and maintenance of timber preservation standards.

Export wood chips.

The export wood chip industry originated in the Nelson region. Both native and exotic 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 45 percent of the country's total. Japan is the principal destination.

Other wood chip export ports include Mount Maunganui, Port Chalmers and Southport. Chip exports during the year ended June 1991 totalled 270,000 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. 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 Council is responsible for maintaining standards in the industry.

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. Ministry of Forestry timber inspectors inspect and disinfect 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.

TIMBER PRODUCTION
Indigenous and plantation

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 Company Limited, part of the Fletcher Challenge Corporation has its plant at Kawerau, Bay of Plenty, where wood from Kaingaroa State Forest is utilised. The plant has operated a pulp and paper mill for over 35 years.

In 1990 Carter Hold Harvey Limited acquired the assets of Elders Resources NZFP Limited. NZFP Limited 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.

Whakatane Board Mills Limited, a subsidiary of NZFP Limited, manufactures paper-board from groundwood and from semi-chemical and waste-paper pulp produced on site. A sawmill operates adjacent to the board mill.

Caxton Paper Mills Limited, at Kawerau, also owned by Carter Holt Harvey Limited, manufactures a wide range of tissues and lightweight merchant and processing papers for domestic and export markets.

New Zealand Paper Mills Limited, at Mataura, is also a subsidiary of NZFP. 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 Limited, operates an integrated sawmill and thermo-mechanical pulp mill at Whirinaki, near Napier.

Winstone Pulp International has a chemical thermo-mechanical pulpmill at Karioi. The plant uses wood from Karioi State Forest, as well as sawmill residues.

Table 16.6. PULP AND PAPER PRODUCTION

Year ended 31 MarchWood pulpPaper and paperboard
Chemical*Mechanical†NewsprintOther 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  
198754474056287220744543891392419643755x
198860178961015025501947707398079700805
198966393659506929629540323398589735207
199065823057557929488137802424688757371
199173324061552032128635179465876822340

Wood-based panels.

Four factories manufacture plywood, and the total output for the year ended 31 March 1991 was 60,726 cubic metres. Total production of veneer in the industry in 1990-91 was 74,179 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 fibre, the different forms of fibreboard (hardboard, softboard, and medium-density fibreboard) have different properties and end uses. Mills in Canterbury, Taupo and Richmond (near Nelson) produce medium-density fibreboard by a dry process for both domestic and export markets. Particleboard is manufactured from round-wood and sawmill residues and is used by the domestic market for interior panelling, flooring and furniture manufacture. Particleboard is also exported to various markets. A commercial triboard plant operates at Kaitaia.

Table 16.7. VENEER, PLYWOOD, PARTICLEBOARD AND FIBREBOARD PRODUCTION

Year ended 31 MarchVeneerPlywoodParticleboardFibreboard

Source: Ministry of Forestry.

  cubic metres 
19878412163219177727247967
19888971463069170968301116
19898285563655178209412825
19908937368479171621442603
19917417960726159893463232

FOREST PRODUCTS
Total annual production of major types

Overseas trade in forest products

Exports.

Forest products are important earners of overseas funds. For the year ended June 1991 exports of forest products were valued at about $1,567 million. Australia was the largest customer, taking 31 percent (by value) of exports, mainly in sawn timber, paper and paperboard, panel products and wood pulp. Japan was the next largest, taking 29 percent, mainly pulp and logs. The remaining 40 percent is taken by smaller customers, of which the largest was Korea, taking 10 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. Oregon pine, 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 77 percent of the value of total forest products imports in the year ended June 1990. Imports of forest products for the year ended June 1990 were valued at $481 million.

Table 16.8. OVERSEAS TRADE IN FOREST PRODUCTS

Year ended 30 JuneWood and wood productsWood pulpPaper and paper productsAll forest products

Source: Ministry of Forestry.

Imports c.i.f. $(000) 
198769,93518,109293,429381,473
198876,514x10,406258,607345,528
198979,68811,861297,367x388,916x
1990109,16414,682357,089480,935
1991P93,66410,068373,482477,214
Exports f.o.b. $(000) 
1987319,349x252,948213,999786,296x
1988395,760x353,599236,014985,373
1989537,680x398,711x300,753x1,237,144
1990658,759386,817340,2951,385,871
1991P832,988389,817343,8021,566,607

Tissue culture.

Table 16.9. VOLUME OF TIMBER IMPORTS

Year ended 30 JuneHardwoodsSoftwoodsTotalLogs and poles

Source: Ministry of Forestry.

  cubic metres (000) 
19872728553
1988181837x8
198918x1432x7
19902025456
19911425404

Table 16.1. VOLUME OF TIMBER EXPORTS

Year ended 30 JuneSawn timberTotalLogs and poles
Natural forestRadiata pineDouglas firOther plantationTotal plantation

Source: Ministry of Forestry.

   cubic metres (000)   
19873296523351354426
198853366213411416830
19895408x6733508x514x1545x
1990444273295445482170
1991260283307157183295

Table 16.11. VOLUME OF OVERSEAS TRADE IN PULP AND PAPER

Year ended 30 JuneWood pulpFibreboard*Paper and paperboard
NewsprintOther†Total

*In cubic metres.

Excludes manufactures from paper and paperboard and excludes minor items for which no quantities are given.

Source: Ministry of Forestry.

Imports  tonnes  
1987177811206094473456134400
198811266465130507909992149
19891124566199328172991661
199011635138487399110699845
1991P1013419641609494074110168
Exports  tonnes  
19874833169657812110087925209025
198858258616946815962176375235996
1989567836211472x175752x103263x279015x
1990560728240310201213112482313695
1991P624954285585209173107650316823

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, so New Zealand's fishery resources, although substantial, are not rich by world standards. The advent of the 200-mile Exclusive Economic Zone in 1978 provided the incentive for a considerable increase in investment in larger deep water fishing vessels and in fish processing facilities.

The total allowable commercial 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 commercial catch’ of each fish stock 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.

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. In the 1990-91 fishing year a minimal fish quota was available to foreign licensed vessels.

The bridge of MAF Fisheries new research vessel, Tangaroa. Named after the Maori god of the sea, the 70 metre, 2282 tonne ship is capable of carrying out a wide range of scientific activities, including trawl surveys to depths of 2000 metres, longlining, plankton sampling, acoustic surveys, tagging, underwater filming and water sampling. The Tangaroa is designed to provide reliable information on New Zealand's deep sea fisheries for the next 30 years.

Individual transferable quotas.

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.

The government has negotiated with industry to define quotas, in the 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.

Fisheries law reform.

In August 1991 the Minister of Fisheries announced the appointment of an independent Task Force to completely review fisheries legislation. The Task Force will consider the scope for amalgamating all fisheries laws currently administered by MAF and bringing conservation values together with commercial, recreational and traditional fishing requirements.

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); gurnard (Chelidonichthys kumu); trevally (Caranx georgianus); and jack mackerel (Trachurus spp.) Sole are taken mainly by trawling and flounder by set net.

The principal species taken by longline are snapper; hapuku (Polyprion oxygeneios) and ling (Genypterus blacodes). Blue cod (Parapercis colias) is the main line-caught species around Stewart Island and the Chatham Islands.

Further offshore, deeper-water species are hoki (Macruronus novaezelandiae); silver warehou (Seriolella punctata); and southern blue whiting (Micromesistius australis). In deeper water still, at around 1000 metres, the catches consist largely of oreo dories (Allocyttus, Neocyttus and Pseudocyttus) and orange roughy (Hoplostethus 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 ocean) are taken by purse-seine, longline and troll fishing methods. Except for the tuna longline fisheries, which has both domestic and foreign licensed components, these fisheries are domestic fisheries.

Both coastal and oceanic species support increasingly important fisheries. Skipjack tuna (Katsuwonus pelamis), kahawai (Arripis trutta), jack mackerels (Trachurus declivis, T. novaezelandiae, and T. murphyi), and blue or english mackerel (Scomber australasicus) are caught by purse-seine. Southern bluefin tuna (Thunnus maccoyi) caught by handline, trolling and longline in winter months chiefly around the South Island. Bigeye tuna (Thunnus obesus), yellowfin tuna (Thunnus albacares), and adult albacore (Thunnus alalunga) are primarily caught by longline. Incidental catches of oceanic sharks, marlins and swordfish are also a feature of the longline fisheries for tunas.

Crustacea.

Rock lobsters (Jasus edwardsii and J. verreauxi) are caught by potting off many parts of the New Zealand coast. There are 11 rock lobster fisheries each with an individual Total Allowable Commercial Catch. Rock lobster is a valuable coastal resource in New Zealand, with a landed catch of between 5450 tonnes (1984) and 3100 tonnes (1990). Research focuses on stock assessment and recruitment.

Although the giant spider crab (Jacquinotia edwardsii) and jack-knife prawn (Hymenopenaeus sibogae) are quite plentiful in some New Zealand waters, the only crusteaceans other than rock lobster which are becoming commercially significant are scampi (Metanephrops challenger) and 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.

The commercially important dredge oyster (Tiostrea chilensis) beds in Foveaux Strait have been severely depleted by the parasite Bonamia in very recent years. Since the parasite was first detected in 1986 MAF Fisheries scientists have studied it and its impact on the beds and advised on how best to manage the fishery. Other commercially significant mollusc resources include scallops (Pecten novaezealandiae) in Golden and Tasman Bays—which are being successfully enhanced by reseeding—and in the Marlborough Sounds and along the North Island's north-east coastline; and paua or abalone (Haliotis iris) which is found around the rocky coastline. Octopus, cockles, surf clams and pipis have the potential for further commercial exploitation.

Orange roughy has developed from a virtual unknown into one of New Zealand's most valuable fisheries in little more than 10 years. In 1990, 16 700 tonnes of orange roughy was caught, with a value of $145.2 million. The distinctive orange-skinned, white-fleshed fish live at depths of at least 1500 metres and are very slow growing and long-lived. Orange roughy are believed to mature in their 20s and have a maximum age of between 80 and 150 years. Because the fishery is of such importance, research into orange roughy is a high priority. Above a MAF Fisheries researcher extracts the otolith (earbone) from an orange roughy for ageing and growth studies.

Table 16.13. TOTAL ALLOWABLE CATCH, 1990*

Fish or shellfishQuantity

*At end of February 1990. Excludes tuna species.

Source: Ministry of Agriculture and Fisheries

 tonnes (000)
Alfonsino2.6
Barracouta33.1
Blue cod2.7
Blue moki0.3
Blue warehou4.4
Bluenose1.8
Elephant fish0.6
Gemfish7.3
Grey mullet1.0
Gurnard4.9
Hake13.7
Hapuku/bass/groper2.1
Hoki201.9
Jack mackerel32.0
John dory1.1
Ling19.7
Mixed flats6.6
Orange roughy37.9
Oreo dory25.1
Paua1.2
Red cod15.8
Rig (dogfish)2.0
School shark3.0
Silver warehou9.5
Snapper7.9
Squid118.5
Stargazer5.2
Tarakihi5.9
Trevally3.9
Total allowable catch571.7

Maori Fisheries Act 1989

The three major provisions of the Maori Fisheries Act are:

  • 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.

  • To establish local, coastal and estuarine fishing areas, called taiapure.

Maori Fisheries Commission.

In accordance with the Act, the Crown has made a payment to the commission of $ 10 million. The Crown must also transfer to the commission 10 percent of the total allowable commercial catch (or agreed cash equivalent), in four packages of 2.5 percent, with the last transfer to be made on or before 31 October 1992. The Act prevents the commission from disposing of this quota until after the transition period (which ends on 31 October 1992). In the meantime, the commission leases the quota annually, either to iwi-based fishers or to the general fishing industry, through a tender process. The commission is considering details of various forms of assistance that it can make to Iwi with an interest in sea fisheries, to assist them with fisheries development and training. The commission intends to divest its assets to Iwi, in accordance with their wishes after the transition period.

Aotearoa Fisheries Limited.

The commission is required by the Act to give at least 50 percent of the quota (or agreed cash equivalent) it receives from the Crown to Aotearoa Fisheries Limited. Aotearoa Fisheries leases its quota in a manner similar to that of the commission. Aotearoa Fisheries is the major shareholder in Moana Pacific Fisheries Limited. Any profits earned by Aotearoa Fisheries may be made available to the commission, as sole shareholder, by way of dividend.

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.

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. 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 16.14. DOMESTIC FLEET CATCH, 1990P*

 Domestic catch

Source: Ministry of Agriculture and Fisheries.

 tonnes
Quota Species 
Finfish 
Alfonsino1499.7
Barracouta11752.5
Blue cod1590.6
Blue moki343.8
Blue warehou958.3
Bluenose1250.1
Elephant fish461.1
Gemfish2875.0
Grey mullet950.0
Gurnard2585.2
Hake73.5
Hapuku/Bass/Groper977.5
Hoki18557.3
John dory632.2
Ling3863.3
Mixed flats3445.3
Orange roughy41463.4
Oreo dory11633.9
Red cod5186.8
Rig1689.2
School shark2074.4
Silver warehou244.7
Snapper7525.2
Stargazer2225.7
Tarakihi3871.3
Trevally2614.6
          Total, finfish130344.6
Shellfish 
Paua1106.3
Squid1159.3
          Total, shellfish2265.6
Crustacea 
Spiny rock lobster3021.1
Non-quota species 
Finfish 
Albacore tuna1996.6
Blue mackerel7127.0
Eels (freshwater)526.8
Frostfish26.8
Ghost shark506.8
Kahawai8345.5
Long-finned eel (freshwater)288.2
Other finfish18453.2
Rough skate222.8
Short-finned eel349.1
Skate987.5
Skipjack tuna5633.9
Smooth skate244.4
Southern blue whitin.8
Spiny dogfish3131.5
          Total finfish47840.9
Shellfish 
Dredge oyster3848.8
Mussels.6
Other shellfish1082.4
Queen scallop279.9
Scallop1732.9
Total, shellfish6944.6
Crustacea 
Other crustacea719.6
Echinoderm 
Other echinoderms538.4

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. The quota management system makes no distinction 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 16.15. REGISTERED COMMERCIAL FISHING VESSELS

Type of vesselAt 30 September
1988198919901991

Source: Ministry of Agriculture and Fisheries.

Foreign licensed vessels174198114133
Foreign chartered vessels88185188160
Domestic vessels2984262321432210
Shore fishing permits166138  

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.

Aquaculture is based on three key species: green mussels, Pacific oysters and quinnat salmon. Several other species such as abolone, dredge oysters, seaweeds, grey mullet, rock lobster and freshwater prawns are at various stages of development.

Mussels are farmed in the Marlborough Sounds, the Bay of Plenty, Coromandel, Northland and Stewart Island. The mussels are ongrown from wild caught spat.

Pacific oysters are farmed in Northland and Coromandel, again based on wild caught spat. This species has replaced the native rock oyster for farming. Recently Pacific oysters have spread to Tasman Bay where farming is likely to develop.

Quinnat salmon are reared for ocean ranching from rivers on the east coast of the South Island, while sea cage rearing is practised in the Marlborough Sounds and Stewart Island.

Enhancement of scallops has been successful in Tasman Bay and will be tested in the North Island.

16.4 Fish trade

The New Zealand fishing industry is export-oriented, with nearly 80 percent of landings being consigned overseas in 1990. Significant exports of species in 1990 were: orange roughy (16,700 tonnes valued at $145.2 million), squid (34,300 tonnes valued at $62.5 million), and rock lobster ($83.7 million). Table 16.16 shows principal fish exports and Table 16.17 principal fish-export markets.

Table 16.16. FISHERIES EXPORTS

Commodity exported1987198819891990
QuantityValueQuantityValueQuantityValueQuantityValue

*Includes small quantities of inedible oils and meal.

Source: New Zealand Fishing Industry Board.

 tonnes$(m)tonnes$(m)tonnes$(m)tonnes$(m)
 (000)f.o.b.(000)f.o.b.(000)f.o.b.(000)f.o.b.
Finfish or wetfish111.1431.5164.2539.0160.4529.2162.2520.8
Rock lobster2.7100.82.771.02.782.22.783.6
Shellfish*42.2144.043.0111.287.4185.645.8140.3
Total156.0676.3209.9721.2250.5797.0210.7744.7

Table 16.17. PRINCIPAL FISH EXPORTS

Species1987198819891990
QuantityValueQuantityValueQuantityValueQuantityValue

*Processed fish fibre mainly from hoki.

Estimated.

Source: New Zealand Fishing Industry Board.

 tonnes$(m)tonnes$(m)tonnes$(m)tonnes$(m)
 (000)f.o.b.(000)f.o.b.(000)f.o.b.(000)f.o.b.
Barracouta11.117.011.113.99.912.211.816.6
Hoki20.647.528.645.116.636.133.968.8
Jack mackerel10.211.512.212.510.011.310.710.8
Mussels4.117.96.124.36.928.88.834.2
Orange roughy13.6147.319.5169.414.4167.216.7145.2
Oreo dory3.616.04.615.44.519.35.318.1
Paua0.412.50.514.00.411.80.825.1
Rock lobster2.4100.82.771.42.782.32.883.7
Snapper5.043.65.443.46.752.66.749.4
Squid35.597.134.652.978.7124.934.362.5
Surimi*19.0†63.0†21.776.719.055.18.219.6
Warehous3.311.35.713.44.211.16.318.8

Table 16.18. VALUE OF FISHERIES EXPORTS TO PRINCIPAL MARKETS

Country19891990
ValuePercentage of total exportsValuePercentage of total exports

*Includes exports to other markets.

Source: New Zealand Fishing Industry Board.

 $(m) f.o.b. $(m) f.o.b. 
Japan361.044279.437
United States229.028208.428
Australia80.21086.412
    Total fisheries exports*818.9 748.8 

Mussels growing on rope.

Within New Zealand, the trend in recent years has been towards greater fish consumption per capita. For 1991 it was estimated at 11 kilograms per head 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 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 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 16.19. ALLOCATIONS TAKEN UP BY OTHER NATIONS: FINFISH AND SQUID FISHERY, 1989-90

CountryYear ended 30 September
FinfishSquid

Source: Ministry of Agriculture and Fisheries.

 tonnes
Korea, Republic of148230
U.S.S.R.--
Japan9434600

In the 1989-90 season authorisations were given for the Japanese to operate 23 tuna longliners without tonnage restriction in the southern bluefin tuna fishery, and for Japan to operate 27 vessels in the albacore fishery in the northern regions of the Exclusive Economic Zone.

Statistics on fish exports collected by the Department of Statistics are available from the Fishing Industry Board. A number of regular reports showing exports by country, species and product form are available along with historical trend data for one-off requests. 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. The results of the most recent census formed part of the 1987 Economy Wide Census. The results from the census are updated annually by the Annual Enterprise Survey. Both the censuses and the enterprise survey cover the activities of all businesses classified in Division 13 of the New Zealand Standard Industrial Classification. A summary of results is given below.

Table 16.2. FISHING INDUSTRY STATISTICAL SUMMARY

Statistical item1985-871987-881988-89
  number 
Group enterprises394140
Enterprises within these group enterprises646461
Enterprises not within these group enterprises194719311903
Activity units (including ancilliaries)1204520211986
Full time equivalent persons engaged44725085 $(000)4605
Stocks—
    Closing19,13025,51635,454
    Opening14,76719,90228,656
Income—
    Sales of goods and services479,461568,721614,741
    Interest and dividends received6,4846,0095,322
    All other income received8,37228,71835,482
        Total income494,317603,447655,545
        Adjusted for change in stock values498,680609,062662,342
Operating expenditure—
    Salaries and wages62,27675,76880,835
    Depreciation19,97829,27929,111
    Interest, bad debts, etc.16,53621,81127,059
    Indirect taxes536674804
    Purchases46,53393,57694,872
    All other operating expenditure279,836332,160355,709
        Total expenditure425,695553,261588,389
    Working proprietors/partners salaries and wages9,09912,47913,637
    Net profit before tax after deducting working proprietors/partners salaries and wages63,88643,32260,316
Economic values—
    Operating surplus83,03771,60395,690
    Value added187,895203,334229,670
Fixed tangible assets—
    Purchases during the year45,90077,67464,964
    Sales during the year14,17213,27710,791
Balance sheet—
    Shareholders funds, etc.298,079302,459279,839
    All other liabilities225,508252,211280,155
        Total capital and liabilities523,587554,670559,994
    Fixed tangible assets242,135265,240247,699
    All other assets281,452289,431312,295
        Total assets523,587554,670559,994
Ratios—
    Value added per full-time equivalent persons engaged42,01639,98749,874
    Value added per $1,000 of salaries paid3,0172,6842,841
    Total sales and other income per full-time equivalent person engaged110,536118,672142,355
  percent 
    Net profit per total sales and other income12.97.29.2
    Total salaries and wages per total sales and other income12.612.612.3
    Value added per total sales and other income38.033.735.0
    Shareholders funds per total capital and liabilities59.954.550.0
    Fixed assets per total assets46.247.844.2

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.

Further information

Forestry

A National Exotic Forest Description. Ministry of Forestry, 1988.

Economy Wide Censes 1986-89. Department of Statistics.

Annual Enterprise Survey 1986-89. Department of Statistics.

Market Report. Ministry of Forestry (quarterly).

Report of the Ministry of Forestry. (Parl. paper C. 16).

New Zealand Forestry Statistics 1991. Ministry of Forestry, 1991.

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.

Fisheries Research Division Occasional Publications: Data Series. Ministry of Agriculture and Fisheries.

Freshwater Catch. Ministry of Agriculture and Fisheries (quarterly).

Economy Wide Census 1987. 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

Night lights.

17.1 Energy sector

Energy sector reform

Major policy initiatives in recent years have been designed to facilitate the emergence of competition in the energy sector. Price controls were removed from diesel in mid-1987 and from petrol in mid-1988. The licensing of petrol wholesaling and retailing was abolished.

Current initiatives are directed towards the electricity and gas industries. The previous Government made a number of decisions for reforming these industries. Following the General Election in October 1990, the new Government, while making a number of changes in approach, has endorsed the general thrust of reform. This is aimed at:

  • Facilitating competition in electricity and gas retailing by removing area franchises.

  • Facilitating competition in electricity generation by separating the operator of the electricity transmission grid, Trans Power, from the Electricity Corporation (a state-owned enterprise that accounts for some 96 percent of all electricity generated).

  • Introducing more commercially-oriented management into the electricity distribution industry by corporatising the existing publicly owned electricity supply authorities.

  • Removing existing price controls from the gas industry (the electricity industry has no such control).

  • Strengthening the regulatory environment where natural monopolies occur by introducing comprehensive information disclosure requirements for electricity and gas transmission and distribution line businesses.

While decisions on all the above matters have been announced by the Government, they have yet to be implemented. It is proposed that this will be done by the enactment of an Energy Sector Reform Bill.

Oil market/energy security.

During the Gulf crisis measures were taken to boost local oil production. This was done in conjunction with International Energy Agency emergency procedures. Overall, while New Zealand did not escape higher petroleum product prices, the price rises experienced were more modest than in many other countries and no shortfalls in supply eventuated.

New Zealand's longer term self-sufficiency in energy is expected to decline rapidly around 2005 with the depletion of the Maui gas field. However, international energy markets are now more flexible than at the time of the first oil shock in the early 1970s, and procedures established by the International Energy Agency enable the impacts of international oil supply disruptions to be moderated. As a consequence, while energy security is still an issue, it requires less emphasis now than in the 1970s.

Crown's interest in the gas sector.

In 1990 the Crown sold its interest in the gas available from the Maui field. Approximately 43 percent of the gas was sold to the Electricity Corporation, with the remainder sold to Fletcher Challenge Limited. Also the Crown transferred its 75 percent stake (the remainder being held by Mobil Oil NZ Limited) in the Motunui synthetic petrol plant to Fletcher Challenge. As a result of these transactions the Crown is no longer exposed to commercial risk in the gas industry.

Climate change.

The energy sector contributes over 80 percent of man-made carbon dioxide emissions in New Zealand. The Government has announced a target of reducing total carbon dioxide emissions to 80 percent of their 1990 level in the year 2000. Clearly, major moves toward the target will require significant changes within the energy sector. Of key concern is that New Zealand should play its part in contributing to international initiatives to contain emissions, while not unduly penalising its competitiveness in world markets.

Resource management.

The Resource Management Act which came into effect from 1 October 1991 provides a management regime that promotes sustainable management of New Zealand's natural and physical resources. The focus of the Act is on the effects of the use, development and protection of these resources. The Crown Minerals Act 1991, which came into effect at the same time, establishes a new statutory basis for the management of the Crown's mineral resources. Together these two Acts will constitute a new resource management regime for the management of New Zealand's natural and physical resources.

Government energy and resource organisation.

The Energy and Resources Division of the Ministry of Commerce has responsibility for energy and mineral resource policy advice to Government, as well as for the allocation of resource rights, management of resource databases, energy and mining inspection with respect to safety, and the operation of a diversified energy management programme. This programme which is designed to promote energy conservation in the government, industrial, commercial and residential sectors of the economy relies significantly on cost-recovery.

Wellington's Capital Power's new control room.

Energy consumption

Table 17.1 provides data from which the trends in New Zealand's consumption of primary energy since 1954 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 primary energy during the mid-1980s (16 percent in 1986) but gradually rose in the latter years of the decade (22 percent in 1990).

Table 17.1. TRENDS IN OIL IMPORTS AND PRIMARY ENERGY

YearCoalWoodOilGasElectricityTotalImported oil as percentage of total
Imported*Indigenous

*Includes oil and products.

Source: Ministry of Commerce.

    petajoules    
197559-1948166434257
1980512615416377335743
1981512613121457434838
1982512411932806937632
1983562412332867439531
19845325121411107742728
19855226116311407444026
1986582475591698346716
1987512398591638247721
1988492476621788547416
1989512696571838349619
19904927107471828549722

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 1990. 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, (TJ) or 1012 joules.

Table 17.2. TRENDS IN CONSUMER ENERGY USE

Calendar yearSolid*OilGasElectricityTotal

*Includes wood.

Source: Ministry of Commerce.

   petajoules  
19545559216132
19644890230170
197441151758257
1984401404883311
1985351365484309
1986411415388323
19874214054105341
1988551475294348
1989571544497352
1990611634098362

CONSUMPTION OF PRIMARY ENERGY
Energy resources used to produce energy for later consumption

Table 17.3. ENERGY SUPPLY AND DEMAND, 1990

 Source of energy
 Solid fuelLiquid fuelGasHydro/ geothermalElectricityTotal

Source: Ministry of Commerce.

   petajoules  
Supply      
Indigenous production86.7114.3181.9168.8-551.7
Plus, Imports0.2163.5---163.6
Less, Exports10.862.7---73.5
Stock changes-2.00.3--2.3
Less, International transport-34.5---34.5
                    Total, primary energy supply76.0178.6181.6168.8-605.0
Transformation      
Less, used in electricity generation-5.3--56.6-153.0109.8-105.1
less, used in liquid fuels production-0.3-59.1---58.8
Less, losses and own use-2.0-7.6-2.2-6.0-10.2-28.0
                    Total, transformation-7.3-7.3-117.9-159.099.6-191.9
Plus, Non-energy use-10.0-7.8-24.5---42.2
                    Total, consumer energy (calculated)58.8163.639.29.899.6370.9
Demand      
Agriculture0.513.7--2.416.6
Industrial45.413.329.37.240.3135.5
Commercial3.57.14.92.620.138.2
Domestic11.10.83.4-35.450.6
Transport0.1127.62.7-0.2130.6
                    Total, consumer energy (observed)60.6162.540.39.898.4371.6
Discrepancies-1.81.1-1.1-1.2-0.7

The following points should be considered when examining Table 17.3:

  • Consumer energy (calculated) = Total primary energy supply + Total transformation + Non-energy use.

  • Consumer energy (observed) = Agriculture + Industrial + Commercial + Domestic + Transport.

  • Total primary energy supply is that amount of energy available for use in New Zealand for energy conversion and end-use. Primary energy = Indigenous production + Imports - Exports ą Stock changes - International transport.

  • Transformation is the input of fuels to processes which transform them into other fuels.

CONSUMER ENERGY USE
Types of energy used by homes and industries

Table 17.4. ENERGY RESOURCE USE BY SECTOR, 1990

 IndustryCommerce and AgricultureTransport (incl. international transport)House-holdsThermal electricity generation

*Coal and wood.

Source: Ministry of Commerce.

   percent  
Oil10.638.997.71.60.5
Solid fuel*35.47.40.121.67.6
Gas (natural and manufactured)23.210.62.07.99138
Electricity30.843.10.268.9-
                    Total100.0100.0100.0100.0100.0

Fossil fuel resources

Energy sources in New Zealand are many and diverse. They range from renewables such as solar radiation and hydro-electricity 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.

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 17.5.

Table 17.5. FIELD PRODUCTION OF OIL/CONDENSATE AND GAS, AND ESTIMATES OF INITIAL AND REMAINING RECOVERABLE RESERVES, 1990

FieldOil/condensateGas
Initial estimated recoverable reservesEstimated remaining recoverable reservesApprox average daily productionInitial estimated recoverable reservesEstimated remaining recoverable reservesApprox. average daily production

Source: Ministry of Commerce.

   barrels   
  million barrelsper dayBillion ft3 Million ft3
Kapuni295.9550057540972.7
Maui12789.71500048702491348.6
McKee3623.210500125858.1
Kaimiro0.61.2392938.71.1
Stratford0.60.6022.722.7-
Waihapa16.012.0750019147.7
Tariki1.71.7-59.959.9-
Ahuroa0.60.6-2828-
Kupe3535-215215-
Toru7.57.5-7171-

Coal.

Coal represents New Zealand's largest indigenous fossil fuel resource. Coal has property variations which are primarily dependent on the depth and time of burial, 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

RegionMillion tonnesCoal type

Source: Ministry of Commerce.

Waikato842sub-bituminous
Taranaki173sub-bituminous
Westland337sub-bituminous and bituminous
Canterbury0.7sub-bituminous
Otago1134sub-bituminous and lignite
Southland6113sub-bituminous and lignite
                    Total8599.7all types

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 73 percent of all New Zealand's electricity needs comes from hydro generation, and about 67 percent of the resource was produced in the South Island in 1990-1991 (total 15,252 GWh) (55 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. There is also a station at Ohaaki.

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 sources of energy which are essentially untapped for commercial use in New Zealand. This is mainly because of their higher cost compared to conventional energy forms.

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 1991, hydro stations generated 75 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 7 percent came from the geothermal power stations at Wairakei and Ohaaki.

The structure of the electricity industry is essentially two-tiered. The first tier is 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, Trans Power, Power Design Build Group (which comprises two subsidiaries: ‘Design-Power’ and ‘Power Mark’), and the Corporate Group.

Following the disestablishment of the Ministry of Energy, the Energy and Resources Division of the Ministry of Commerce now 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
19901991

Source: Electricity Corporation of New Zealand.

 $(000)$(000)
Income15843271532364
Expenses, excluding finance costs740646702727
Profit before finance and taxation843681829637
Finance costs161807312700
Profit before taxation681874516937
Taxation173164177780
Profit after taxation508706339157
Less: Extraordinary item105100-
Profit after taxation and extraordinary item403606339151
Less: Dividends314247253615
Transfer to reserve761217004
Total appropriations321859270619
Retained earnings for the year8174768538
Opening retained earnings14364975111
Closing retained earnings225396143649

Electricity generation

The Electricity Corporation of New Zealand Limited 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 and private generation plants.

As at 31 March 1991 the Electricity Corporation had 29 hydro-electric stations, with a maximum capacity of 4761 megawatts (65 percent of total capacity) while the remaining nine thermal stations had a capacity of 2544 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

Source: Electricity Corporation of New Zealand.

  KWh(million)  
1986186591109618925957
1987205821174519226948
1988208911183542427498
1989219001237505228189
1990208231805637429002

ELECTRICITY GENERATION
For major use categories

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)   
19862598510191327017242752742
1987269901163728160253492811
19882747511981328686258052883
19892817812811329472266982774
19902897511493330157273652792
19912958311868930858278193039

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
1986908010038441757813230242751462735
1987942410472472256713331253491488253
1988942310732491656613830258051509209
1989951011065525068613750266981528550
1990982411187546165511666273091547573
19911026411200549668711061278181581879

Table 17.11. ELECTRICITY CORPORATION POWER STATIONS

StationInstalled capacity at 31 March 1991Energy generation year ended 31 March
Number of unitsMW*Static head19901991

*‘In-situ maximum’ rating.

Source: Electricity Corporation of New Zealand.

Hydro  metreskWh(million)
Arapuni816053551844
Aratiatia38434373393
Atiamuri47925334340
Karapiro39630583620
Mangahao51927388102
Maraetai1036061952980
Matahina27261306315
Ohakuri411235454468
Rangipo2120206575543
Tokaanu4210208804820
Waikaremoana—     
    Kaitawa234135 525
    Piripaua237113585-
    Tuai358206--
Waipapa35116278284
Whakamaru410038551576
Arnold23132725
Aviemore422037956958
Benmore65409223712498
Cobb632594198174
Coleridge935149214221
Highbank1251017380
Manapouri760017740614440
Ohau ‘A’42485812881328
Ohau ‘B’42124810521079
Ohau ‘C’42124810591081
Roxburgh83204614861494
Tekapo ‘A’12530162154
Tekapo ‘B’2160146928948
Waitaki710521514555
                    Subtotal, hydro1244761 2082321845
Thermal     
Huntly4980 45625152
Marsden2114 -4-8
Meremere6112 16121
New Plymouth5575 712304
Ohaaki5106 624851
Otahuhu690 -12-15
Stratford4198 54188
Wairakei9153 11811217
Whirinaki4216 11
                    Subtotal, thermal452544 81787711
                    Total1697305 2900229556

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.

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 Government has ceased to take a direct role in forecasting electricity demand and planning construction to meet it. This role has been taken over by the Electricity Corporation for its own purposes. A new Energy Resources Monitoring and Conservation Authority is to be set up to provide independent advice to government in the future on energy trends and planning.

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 link 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. An expansion of the capacity link will be completed in June 1992 taking northward capacity from 600 to 1240 MW and southward capacity from 200 to 880 MW. The expansion involves an increase in voltage and installation of three new cables to augment the three cables laid in 1965.

Supply authorities

Electricity distribution to end consumers is the responsibility of 48 supply authorities (12 fewer than the number two years ago, as the result of amalgamation). The authorities buy electricity in bulk from the Electricity Corporation of New Zealand Limited and then sell it to individual consumers. There are proposals for incorporating the supply authorities and removing their area franchises (see section 17.1 Energy sector reform).

Table 17.12. SUMMARY OF ELECTRICITY INDUSTRY, 1990

ItemUnitYear ended 31 March

*‘In-situ maximum’ rating.

Includes starting oil.

Excluding stocks of materials.

Source: Ministry of Commerce.

Generating stationsno.96
Capacity of generators*MW7184
Fuel used—  
    Coaltonnes231569
    Light oil†tonnes2806
    Heavy oiltonnes 
    Natural gasterajoules100798
Staff employedno.17646
Capital expenditure (less provision for depreciation)‡—  
    During year (net outlay)$(m)564
    To date$(m)7687
Generation and sales—  
    Generation per head of mean populationkWh9001
    Retail sales per head of mean populationkWh8151
    Domestic consumption per domestic consumerkWh7702
Income from total retail sales of electricity per kWh sold to consumerscents7960

Laying of new Cook Strait power cable, Oteranga Bay.

Local supply.

Twenty-four supply authorities run small generating schemes ranging in output from 0.2 MW to 78 MW. They accounted for 3.8 percent of the nation's electricity needs in 1989-1990, with a total capacity of 314 MW.

Rural Electrical Reticulation Council.

The council has the responsibility of providing 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 districts. The largest unreticulated community is Great Barrier Island.

In the year to March 1990 subsidy payments to power boards and private generating set owners totalled $1.70 million.

The future of the council will be reviewed at the end of 1993.

17.3 Oil and gas

Primary production of oil and gas in New Zealand originates from the following mining licences: McKee and Kaimiro (Fletcher Challenge Petroleum and Waihapa Consortium, respectively) and Kapuni (Shell Petroleum Mining Company Limited and Todd Petroleum Mining Company Limited) and Maui (Fletcher Challenge Petroleum, Shell Petroleum Mining Company Limited and Todd Petroleum Mining Company Limited). Natural gas, gas condensate and liquified petroleum gas are produced from Maui and Kapuni; the latter also produces carbon dioxide from Kapuni gas. All of these licence areas are in the Taranaki region.

A second production platform for the Maui field (‘Maui B’) is currently under construction in Japan. When operational it will be an unmanned ‘satellite’ rig, connected by a pipeline to the main Maui A platform.

BP sold its 18.75 percent interest in the offshore Maui gas and condensate field to Petrocorp (a subsidiary of Fletcher Challenge Limited) on 1 October 1990. This increased the interest of Petrocorp in the Maui field to 68.75 percent, and reduced the share of Shell to 18.75 percent and Todd to 12.5 percent. BP also sold its 37.5 percent interest in the Kapuni gas field to Petrocorp on 1 October 1990. Petrocorp then onsold this part share in Kapuni and related assets to Shell and Todd which each now hold a 50 percent share in the Kapuni licence. From July 1991, Petrocorp Exploration has been renamed Fletcher Challenge Petroleum (FCP).

In March 1991, the Natural Gas Corporation (NGC), the operator of the North Island natural gas transmission system and owner of a number of retail gas utilities, issued 300 million capital notes to the general public. These notes carried voting rights. This move legally made NGC no longer a subsidiary of Fletcher Challenge Limited.

Oil industry

Processing.

About a third 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 Fletcher Challenge Petroleum, and 25 percent by Mobil Corporation. Most of the balance of New Zealand's net petrol needs is produced at the Marsden Point refinery, which is 84 percent owned by BP, Mobil, Shell, Caltex and FCP. (There is a 15.9 percent public shareholding.) The main refinery feedstocks are imported petroleum, indigenous gas condensate and indigenous petroleum. New Zealand's crude oil imports come chiefly from Saudi Arabia, the United Arab Emirates and Indonesia. In July 1990 the Crown sold its rights to the gas available to it under the take-or-pay contract between itself and the Maui partners to Petrocorp, NEC and the Electricity Corporation. The Government also sold its 75 percent stake in the Motunui synthetic petrol plant to Petrocorp.

Distribution.

Over 30 percent of New Zealand's total supply of refined petroleum products is distributed via a pipeline linking the Marsden Point oil refinery with Wiri in South Auckland. This pipeline is owned by the refinery company. The balance is distributed by coastal tankers chartered by four large wholesalers (BP, Mobil, Shell and Caltex). 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

Marsden Point is New Zealand's only petroleum refinery. Locally produced crude oils make up 30 to 40 percent of the refinery's intake. These local crude oils consist of the condensates derived from the gas offtake 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 petrol which could be used immediately in some motor vehicles, but which needs some further processing to be suitable for vehicles with high compression motors. This synthetic fuel is sold to the highest bidder and so is often exported. Refined petrol is imported from overseas make up any short fall.

There has been some export of refined petroleum from New Zealand in the form of supply to international shipping and aircraft. Use of the refinery is maximised, resulting in the refined product exports (20.7 PJs) equivalent to about 12 percent of the volume of local consumption.

Crude oil and gas production figures are set out in tables 17.13 and 17.14. Statistics on field production and reserves are contained in Table 17.16.

Table 17.13. CRUDE OIL AND CONDENSATES PRODUCTION AND TRADE

YearCrude oil and condensates
New Zealand productionImportsTotalExports

Source: Ministry of Commerce.

  petajoules 
198661.5048.65110.158.38
198758.69102.82161.514.66
198870.66112.81183.4714.46
198979.21137.90217.1127.56
199081.63143.53225.1640.29

Oil refinery.

For most years since the Marsden Point refinery commenced operation in 1964 it has satisfied all local demand for bitumen, and of the fuel (or furnace) oils needed for industry, power generation and shipping. It has also satisfied most of New Zealand's petrol and diesel requirements. Since early 1987 virtually all of New Zealand's diesel and kerosene (including jet aircraft fuel) requirements have been supplied by Marsden Point. However, the refinery cannot fully meet New Zealand's demand for petrol. At the time of its expansion, the refinery was given a bias towards diesel and jet fuel rather than towards petrol because of the petrol available from the synthetic petrol plant at Motunui. Some synthetic petrol from Motunui is now sold directly to wholesalers, but most goes first to Marsden Point to be blended with petrol refined there. The balance of New Zealand's petrol requirements is met by direct imports, mostly from Singapore and Australia.

Distribution and retailing.

Following deregulation of the petroleum wholesaling and retailing industry in 1988, licensing and barriers to entry into the industry were abolished. The only large companies marketing petroleum fuels in New Zealand are BP, Caltex, Mobil and Shell.

Oil and gas exploration

New Zealand's sedimentary basins have long been recognised as having the potential to contain significant reserves of oil and gas. Over the past three decades an increasing number of commercial discoveries have been made in New Zealand and there are now major gas, gas condensate and oil producing fields (Kapuni, Maui, McKee, Kaimiro, Waihapa, Tariki, Ahuroa and Stratford) in Taranaki. In recent years exploration has diversified away from the Taranaki region into New Zealand's other less well explored sedimentary basins. Petroleum exploration and development is regulated by the Ministry of Commerce, with petroleum prospecting and petroleum mining permits being required for the exploration and development of oil and gas in New Zealand. As at 1 October 1991 there were 12 petroleum mining permits currently in force, in the country, three offshore and nine onshore.

Large areas of the country, both onshore and offshore, are currently under licence for petroleum exploration purposes with still more areas being advertised for exploration under block offers. Regions presently under licence include parts of both onshore and offshore Taranaki basin, onshore and offshore East Coast basin, onshore and offshore Wanganui basin, offshore Canterbury basin and onshore West Coast basin. Many of New Zealand's potentially hydrocarbon bearing basins have yet to be fully evaluated and prospects are by no means exhausted. The Ministry of Commerce maintains a government archive of all previous petroleum data that has been acquired in New Zealand. This is available for inspection upon request.

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, 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.

Around 31 percent of the gas produced in New Zealand is used by the New Plymouth, Huntly and Stratford power stations to produce electricity. Another 32 percent goes into the production of petrol at the synthetic fuel plant at Motunui, and 13 percent is used to produce methanol at the Waitara facility. Domestic users, although constituting a large number, only use about 2 percent of gas produced. Industrial and commercial users consume about 20 percent. The building industry and secondary production, in the form of dairy factories, pulp and paper mills and freezing works, make up a large proportion of this figure. The ammonia-urea plant at Kapuni is another large consumer, using solely Kapuni gas. The transport sector consumes around 1.5 percent of gas produced, mainly as compressed natural gas (cng) for use in motor vehicles.

Consumption patterns and trends.

Natural gas production has increased from 80 PJ in 1983 to 180 PJ in 1990. The trend in recent years is outlined in Table 17.14.

Table 17.14. GAS PRODUCTION

YearGas
Net natural gas production*Manufactured gas productionTotal

*Excludes gas reinjected, lpg extracted, gas flared and production losses.

Source: Ministry of Commerce.

  petajoules 
1986165.110.39165.50
1987160.090.15160.24
1988174.660.11174.48
1989180.580.10180.68
1990179.670.07179.73

Table 17.15. NATURAL GAS SUPPLY

Year ended 31 DecemberTo gas utilitiesOther users*Total production

*Excludes gas reinjected and gas undertaking.

Source: Ministry of Commerce.

  terajoules 
198628015146815174830
198727088141882168970
198825669157954183623
198923797164838188635
199022001166351188352

17.4 Coal and minerals

New Zealand's coal and mineral resources are diverse, but mining is generally on a small scale. Coal, gold, ironsand, clays, and sand and gravel for construction are the main resources mined. Total production of non-metallic minerals (excluding coal) in the 1990 calendar year was valued at about $205 million, while metallic minerals totalled about $137 million. Mineral production for 1989 and 1990 (the latest years for which figures are available) is summarised in Table 17.16.

Coal industry

New Zealand's coal producers include the Coal Corporation of New Zealand and many private operators. CoalCorp is a major producer operating eight of the 10 largest coal mines. Two-thirds of the national total output came from CoalCorp's operations in 1990 with nearly a third from underground mines. CoalCorp remains the only large scale underground mine operator in New Zealand.

Coal occurs widely in New Zealand. The major coal 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 most important producing coalfields, with the class of coal found in each are:

Bituminous—Greymouth, Buller, Garvey Creek.

Sub-bituminous—Maramarua, Huntly, Rotowaro, Ohai.

Lignite—Waimumu, Mataura.

Other coalfields with the potential to become major producers are Waikare, (sub-bituminous), Mokau (sub-bituminous), St Bathans, Roxburgh and Ashers-Waituna (lignite) and Kaitangata (lignite).

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 6 percent, sub-bituminous, 70 percent, and bituminous, 24 percent.

Mineral production and resources

Prospecting regulations.

The legislative control of mineral production underwent a major change in 1991 when the Resource Management Act 1991 and the Crown Minerals Act 1991 replaced the Mining Act 1971, the Coal Mines Act 1979, the Iron and Steel Industry Act 1959 and the Petroleum Act 1937 on October 1. See section 14.2 Environmental and resource management.

Whareatea mine, West Coast.

Table 17.16. MINE AND QUARRY PRODUCTION

Mineral1989*1990*
QuantityValueQuantityValue

*Year ended 31 December.

Source: Ministry of Commerce.

 tonnes$tonnes$
Coal—    
    Total coal2712998151,303,8982581783143,993,455
    Peat (m3)82160  5686
Metals—    
    Gold4.963102,795,8774.629107,403,175
    Silver4.8361,210,0944.9131,229,295
    Iron ore    
    Ironsand concentrate236663529,604,957229615328,377,757
    Scheelite0.5  -
Non-metals—    
    Bentonite1342154,6561393159,429
    Clay for bricks, tiles, etc.60438208,38865644514,631
    Clay for pottery, etc.263241,337,6992543513,555,394
    Dimension stone202771,054,407297191,431,049
    Dolomite for industry14581251,71413756246,370
    Limestone for agriculture98328512,823,571104882912,751,626
    Limestone for industry3138953,269,5533577213,651,177
    Limestone and marl for cement14084035,872,99013604015,214,826
    Limestone for roads3768242,197,5904102074,385,018
    Perlite2500   
    Pumice40974202,375252140,591
    Rock for harbour work, filling, etc.154278111,400,89921627428,937,441
    Sand for industry3169302,905,2094449864,078,595
    Sand, rock, gravel for building517246249,267,412412121843,855,185
    Sand, rock, gravel for roads and ballast1257673097,665,59412060869102,254,309
    Serpentine21495524,82920157469,648
    Silica sand102131432,9921002803,612,958
    Sulphur1206258,448268946,135

COALFIELDS

Metals

Iron.

New Zealand has a large resource of potential iron ore in the black sands of the West Coast beaches, from Westport south in the South Island and from Wanganui to Muriwai in the North Island. New Zealand Steel Limited has two operations in the North Island, Waikato North Heads and Taharoa. The Waikato North Heads deposit is mined using bucket wheel excavators. The titanomagnetite concentrate slurry is then pumped through a pipeline to the steel works in Glenbrook whereby a locally developed process smelters the titanomagnetite sands on a large scale to produce a good grade of steel. Their other operation at Taharoa feeds ironsand concentrate to ships moored offshore for export to Japan.

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 hardrock forms of gold can be mined by underground as well as opencast methods. Most current gold mining operations in New Zealand are for alluvial gold, however, approximately 60 percent of total production in 1990 came from two hardrock mines. Martha Hill at Waihi on the Coromandel Peninsula and Round Hill at Macraes Flat in Otago. Alluvial gold mining is dominant on the West Coast of the South Island, Otago and Southland. Extraction methods range from small hand held plants worked by up to three people to large floating dredges fed 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 alluvial deposits of the South Island.

Significant recent developments include the opening of the Round Hill mine at Macraes Flat, (Otago), a well known old gold mining area with the first gold poured in November 1990, and the granting of a mining licence at Golden Cross near Waihi in May 1990. Golden Cross is scheduled to begin production in late 1991 and will be New Zealand's only operating underground goldmine.

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 Macraes Flat.

Ilmenite and other heavy mineral sands.

The beaches south of Westport contain heavy minerals including significant quantities of ilmenite which is a source of titanium dioxide, used as a pigment in paint, paper, plastics and rubber. Investigations into the mineral sands at Barrytown and Westport have led to mining licence applications being lodged over the Barrytown Flats where an annual production of 250,000 tonnes of ilmenite concentrate is proposed.

Opencast coal mining, Waikato.

Other metallic minerals.

There are small deposits of manganese in many localities. Uranium occurs in Westland but 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 the million tonnes of aggregates, worth around $160 million, annually. Major uses are for roading, 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 92,000 tonnes of clays, worth about $14.1 million was extracted in New Zealand in 1990.

Bentonite—Bentonite is used as a bonding agent and for ‘drilling mud’. It is found in Hawkes Bay and in substantial quantities in Canterbury. 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. New Zealand China Clay's mine at Matauri Bay is recognised as a world leader, producing 24,000 tonnes of the purest and whitest china clay in the world each year for use in porcelain.

Dolomite.

Dolomite rock is found near Collingwood. It is used in agriculture and home gardening and shipped to Whangarei for use in glassmaking. About 14,000 tonnes are extracted each year, and in 1990 this was worth around $246,000.

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. No production was reported to the Ministry of Commerce in 1990, due to an unresolved Treaty of Waitangi claim.

The best known occurrences of bowenite, the serpentine variety of greenstone, are in Fiordland.

METAL MINING AND PROSPECTING

NON-METALLIC MINERALS

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 3.2 million tonnes of limestone, worth around $26 million, was mined in 1990.

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 Wairere, and at Greenhills in the South Island. About 20,000 tonnes, worth about $470,000, was mined in 1990.

Silica sand.

Northland, North Auckland and Canterbury have deposits of silica sand which are mined each year for use in glass manufacture, foundries and the building industry. About 100,000 tonnes worth $3.6 million was extracted in 1990.

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, and sulphur are also extracted at present.

Coal mining, West Coast.

Mining and quarrying industry statistics

The Department of Statistics' five-yearly Census of Mining and Quarrying has provided broad economic data on the industry. The most recent census formed part of the 1987 economy wide census. The results from the census are updated annually by the Annual Enterprise Survey. Both the censuses and the enterprise survey cover the activities of all businesses classified in Major Division 2 of the New Zealand Standard Industrial Classification. A summary of the results is given below.

Coverage: The mining and quarrying of coal and lignite whether from underground or opencast mines. Also included are coal crushing, pulverising, cleaning, screening and sizing plants whether or not operated in connection with the mines served.

Table 17.17. COAL MINING: NZSIC DIVISION 21

Statistical item1985-19861986-871987-881988-89

*Excludes fixed tangible assets that are the responsibility of the Residential Management of the Ministry of Energy relative to the remaining State Coal Mine's assets, land and housing issues.

  number  
Group enterprises 11129
Enterprises within these group enterprises42121516
Enterprises not within these group enterprises 313936
Activity units (including ancillaries)65657169
Full-time equivalent persons engaged2013204011371032
  $(000)  
Stocks—    
    Closing33,00132,5616,07410,237
    Opening25,92729,2543335,889
Income—    
    Sales of goods and services122,938145,587151,582156,458
    Interest, etc., received3,5312,7611,9812,923
    All other income 4,4837,9959,448
Total sales and other income126,469152,831161,558168,830
Adjusted for change in stock values133,543156,138167,299173,177
Operating expenditure—    
    Salaries and wages41,35952,64637,65640,763
    Depreciation5,59618,9369,4579,442
    Interest, bad debts, etc.34,48069,2384,5723,316
    Indirect taxes4,8343,9807,4527,203
    Purchases22,15919,57513,87118,883
    All other operating expenditure45,478(R)67,05082,04279,690
Total operating expenditure153,906(R)231,426155,051159,296
Working proprietors/partners salaries and wages4193957571,362
Net profit before tax after deducting working proprietors/partners salaries and wages-20,782(R)–75,68311,49112,519
Economic values—    
    Operating surplus13,048(R)-8,81014,83914,273
    Value added67,57069,50673,03475,490
Fixed tangible assets—    
    Purchases during the year82,14798,27255,1066,026
    Sales during the year2,31423,6791,004620
Balance sheet—    
Shareholders' funds, etc. 14,27699,813100,239
    All other liabilities 17,02381,72468,860
Total capital and liabilities 31,300181,537169,600
Fixed tangible assets286,94512,752*69,95365,276
All other assets 18,548111,584104,324
Total assets 31,300181,537169,600
Ratios—    
    Value added per full-time equivalent persons engaged33,56734,07264,23473,149
    Value added per $1,000 of salaries/wages paid1,6341,3201,9401,852
    Total sales and other income per full-time equivalent persons engaged62,82674,917142,092163,595
  percent  
    Net profit per total sales and other income-16.4-49.57.17.4
    Total salaries and wages per total sales and other income32.734.423.324.1
    Value added per total sales and other income53.445.545.244.7
    Shareholders' funds per total capital and liabilities 45.655.059.4
    Fixed assets per total assets 40.738.538.5

Coverage: Oil well and natural gas well operations, exploration and drilling; completing and equipping wells when not performed on a fee or contract basis. Included are all activities involved in making oil and gas marketable up to the point of shipment from the producing area.

Table 17.18. CRUDE OIL PETROLEUM AND NATURAL GAS: NZSIC DIVISION 22

Statistical item1985-861986-871987-881988-89
  number  
Group enterprises 182121
Enterprises within these group enterprises57444953
Enterprises not within these group enterprises 71012
Activity units (including ancillaries)63576571
Full-time equivalent persons engaged1014689765741
  $(000)  
Stocks—    
    Closing27,07641,65743,83743,684
    Opening32,65941,43244,65545,366
Income—    
    Sales of goods and services1,094,401841,450929,621963,871
    Interest, etc., received44,16958,99439,76539,666
    All other income 9,80225,1548,076
Total sales and other income1,138,570910,246994,5401,011,613
Adjusted for change in stock values1,129,987910,470993,7231,009,931
Operating expenditure—    
    Salaries and wages35,71137,17937,89944,439
    Depreciation133,89554,010126,271102,995
    Interest, bad debts, etc.168,39162,28788,196117,324
    Indirect taxes72,40548,17659,54271,231
    Purchases99,08693,600104,425132,328
    All other operating expenditure361,225(R)333,598317,631343,084
Total operating expenditure870,712(R)628,851733,964811,401
Working proprietors/partners salaries and wages----
Net profit before tax after deducting working proprietors/partners salaries and wages259,275(R)281,572259,759198,530
Economic values—    
    Operating surplus402,746(R)284,912308,191276,188
    Value added650,449428,017536,314497,236
  number  
Fixed tangible assets—    
    Purchases during the year107,239225,598203,169103,721
    Sales during the year18,130531,1544,22718,765
Balance sheet—    
Shareholders' funds, etc. 1,651,4922,093,9052,149,066
All other liabilities 1,120,1941,072,4081,230,405
Total capital and liabilities 2,771,6863,166,3143,379,471
Fixed tangible assets1,267,2181,604,1501,632,5681,702,948
All other assets 1,167,5361,533,7461,676,523
Total assets 2,771,6863,166,3143,379,471
Ratios—    
    Value added per full-time equivalent persons engaged641,468621,215701,064671,034
    Value added per $1,000 of salaries/wages paid18,21411,51214,15111,189
    Total sales and other income per full-time equivalent persons engaged1,122,8501,321,1121,300,0531,365,200
  percent  
    Net profit per total sales and other income22.8(R)30.926.119.6
    Total salaries and wages per total sales and other income3.14.13.84.3
    Value added per total sales and other income57.147.053.949.1
    Shareholders' funds per total capital and liabilities 59.666.163.6
    Fixed assets per total assets 57.951.650.4

Coverage: The mining of ironsands and non-ferrous metal ores. The extraction of marble, building stone, gravel and sand. Evaporating salt in salt pans and the mining and quarrying of other materials such as gypsum, asbestos, natural gem stones. Peat and other non-metallic minerals.

Table 17.19. OTHER MINING AND QUARRYING: NZSIC DIVISIONS 23 AND 29

Statistical item1985-861986-871987-881988-89
  number  
Group enterprises 878385
Enterprises within these group enterprises366135140135
Enterprises not within these group enterprises 328354345
Activity units (including ancillaries)465543575557
Full-time equivalent persons engaged2745316328592934
  $(000)  
Stocks—    
    Closing17,59822,25219,05728,372
    Opening16,92218,71217,38618,700
Income—    
    Sales of goods and services331,670343,858272,207295,048
    Interest, etc., received60,97113,66826,02710,977
    All other income 11,27611,1079,502
Total sales and other income392,641368,803309,341315,527
Adjusted for change in stock values393,317372,343311,013325,198
Operating expenditure—    
    Salaries and wages53,19661,92557,34962,311
    Depreciation22,11520,72823,48122,950
    Interest, bad debts, etc.16,71817,21115,18118,343
    Indirect taxes3,3793,4014,1694,732
    Purchases62,61763,30150,93451,799
    All other operating expenditure186,136(R)161,437126,993168,768
Total operating expenditure344,160(R)328,003278,107328,903
Working, proprietors/partners salaries and wages4,3044,7114,7704,535
Net profit before tax after deducting, working proprietors/partners salaries and wages44,853(R)39,62928,136-8,240
Economic values—    
    Operating surplus60,989(R)47,88322,0593,661
    Value added141,714136,454110,63998,212
Fixed tangible assets—    
    Purchases during the year35,13540,31872,94666,466
    Sales during the year8,18413,34837,85822,997
Balance sheet—    
    Shareholders' funds, etc. 330,027523,920501,834
    All other liabilities 348,175342,598400,194
Total capital and liabilities 678,202866,518902,028
Fixed tangible assets156,700260,125291,948341,885
All other assets 418,077574,571560,143
Total assets 678,202866,518902,028
Ratios—    
    Value added per full-time equivalent persons engaged51,62643,14138,69833,474
    Value added per $1,000 of salaries/wages paid2,6632,2041,9291,576
Total sales and other income per full-time equivalent persons engaged143,039116,599108,199107,541
  percent  
Net profit per total sales and other income11.510.89.1-2.6
Total salaries and wages per total sales and other income13.616.818.519.8
Value added per total sales and other income36.137.035.831.1
Shareholders' funds per total capital and liabilities 48.760.555.6
Fixed assets per total assets 38.433.737.9

Contributors

  • 17.1-17.3 Ministry of Commerce.

  • 17.4 Ministry of Commerce; Electricity Corporation of New Zealand Limited, Electrical Supply Authorities Association.

Further information

Energy

Annual Statistics in Relation to the Electric Industry in New Zealand. Ministry of Commerce.

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).

Energy Data File. Ministry of Commerce.

Minerals

Annual Returns of Production from Quarries and Mineral Production Statistics. Ministry of Commerce.

Economy Wide Census, Mining and Quarrying 1987. 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 Annual Mining Review 1990. Ministry of Commerce.

Report of the Department of Scientific and Industrial Research (Parl. paper G. 21).

Report of the Ministry of Commerce (Parl. paper G. 40).

The Coal Resources of New Zealand. Ministry of Energy, 1988.

Chapter 18. Manufacturing

Watties plant, Hastings.

MANUFACTURING TODAY
Employment by industry type

Manufacturing environment

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 Labour Government 1984–90 emphasised that its principal role in a market-led economy was to set the policy environment and remove market impediments caused by unnecessary regulations and controls. The present National Government has continued the same broad policies, providing opportunity for local businesses to adjust.

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.

In 1986, following a review of the 1984 Electronics Industry Development Plan, the phase-down of frontier assistance measures was accelerated. Quantitative controls on imports were removed in 1987 and tariffs reduced. Direct forms of assistance such as the Prototype Development Fund and the Research and Developments Grants Scheme were terminated.

By 1992 most tariffs varied between 16 and 20 percent. The 1991 General Tariff Review scheduled further one-third reductions by 1996. The overall impact of the assistance reform programme has seen the industry move from the production of consumer-oriented products to the manufacture of industrial, commercial and communications equipment.

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 is one of the oldest and largest, employing more people than any other manufacturing sector. Processing units are distributed throughout New Zealand, the majority being concentrated in or around major city markets while others are located close to supply sources. In size, factories range from large canneries, frozen food plants and breweries down to ‘cottage’ producers of jams and pickles.

Relaxation of controls on overseas ownership and investment has permitted an increase in the amount of foreign involvement in the New Zealand food industry at all levels from primary processing through to retailing. While some companies have chosen to close their local plants and supply New Zealand from factories in Australia or elsewhere, others have selected New Zealand as the preferred base from which to develop markets around the Pacific rim.

In the period 1988–90, the elimination of import licensing controls, the removal of tariffs on Australian products and the phasing down of tariffs on goods from other countries led to a rapid increase in the range of imported foodstuffs commonly available in New Zealand shops. Demand stimulated by imports has encouraged some manufacturers to commence domestic production of similar lines, particularly Asian foods.

Like the primary dairy and meat industries, the food processing sector is a major export earner. Bakery products and fruit juices were leading export lines in 1990, each earning around $25 million f.o.b. Other substantial lines included prepared meats, processed tomatoes and other vegetables. Strong growth was achieved in exports of sausages, meat extracts, prepared shellfish, cereal products, pickled vegetables, processed fruits, soups, ice cream and wine.

The international reputation of New Zealand's ‘clean, green’ environment greatly enhances the attractiveness of our food products in overseas markets. Product quality is seen to be further assured by the high standards of primary product research, food technology, process control and factory hygiene in New Zealand.

Food manufacturers have become increasingly responsive to consumer concerns about health and environmental issues. Labelling has become more informative, and many everyday foods are now offered in forms described as ‘reduced fat’, ‘low salt’, ‘no added sugar’ or ‘high fibre’. Packaging shows trends towards recyclable or biodegradable plastics and paper.

Motor vehicles.

The Motor Vehicle Industry Development Plan was reviewed in 1987 leading to the removal of quantitative controls from 1 January 1989 and an accelerated programme of tariff reductions.

Those tariffs apply to imported passenger vehicles would reduce from 55 percent to 35 percent by 1 January 1990. These measures, together with full free trade in automotive products with Australia, significantly reshaped the New Zealand industry.

In 1991 the industry was again reviewed leading to tariffs on imported passenger motor vehicles being reduced from 35 percent in 1992 to 25 percent by 1 July 1996. In order to deal with problems associated with the valuation of older model used vehicles an alternative specific duty of $1,300 on imported used cars up to 1000cc and $1,500 for those over 1000cc was also introduced.

A cumulative result of the above measures has been a dramatic improvement in efficiency and productivity in the assembly and manufacture of vehicles and components. As would be expected, however, the number of assemblers and assembly plants and total people employed in the sector have also reduced. In 1981 for example, the industry consisted of nine firms assembling vehicles in fifteen plants. By mid-1991, the industry consisted of five firms assembling vehicles in six plants.

Tyres.

The environment in which this industry operates largely follows that for manufacturing in general with particular conditions in terms of market access and tariffs being set by the 1983 industry plan and subsequent reviews in 1986 and 1988. Under the Tyre Industry Plan and Reviews imported passenger and light commercial vehicle tyre tariffs have reduced from 40 percent in 1986 to 22.5 percent in 1990. Quantitative controls were removed on 1 April 1989.

A further review in 1991 associated the industry with the motor vehicle sector and also set further tariff reductions from 22.5 percent in 1992 to 15 percent by 1 July 1996. It was also announced that for safety reasons all tyres imported into the country would have to be manufactured to an internationally recognised standard, as locally made tyres were, and not have brand names or other markings removed.

Table 18.1. TARIFFS ON MOTOR VEHICLES, COMPONENTS AND TYRES

YearCarsCommercial vehicles and componentsTyres

Source: Ministry of Commerce.

 %%%
199235.020.022.5
199332.517.520.0
199430.015.020.0
199527.513.517.5
199625.012.515.0

Plastics.

The Plastics Industry Development Plan, implemented in 1982, was designed to encourage the industry to use its resources as efficiently as possible by lowering the level of frontier assistance (import licensing and tariffs) available.

Since 1990 tariffs on imported plastic products have been reducing in accordance with the general tariff reduction programme and by 1992 will generally be in the 10–15 percent range. As a result of the general review on tariff rates to apply in the post-1992 period, carried out in 1991, tariffs will further reduce by one-third over the period 1 July 1993 to 1 July 1996.

The industry has been proactive in seeking to meet environmental concerns involved with packaging and plastics and in 1990 announced the formation of a Plastics Environmental Advisory Council to deal with environmental issues in a positive manner. The move complemented the earlier creation of a recycling code to assist the recycling of plastic products.

Steel.

The two major enterprises in this industry are New Zealand Steel Limited, established in 1970 to manufacture billet slabs and ingots from indigenous ironsands and coal and limestone resources, and Pacific Steel Limited, established in 1960 to prepare wire rod, bars, angles and channels from scrap, but also subsequently using billet from New Zealand Steel Limited'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.

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. 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.

Textiles and apparel—In 1988, textiles and apparel were reviewed separately. The reviews resulted in end dates being set for import licensing: 30 June 1991 for textiles and 30 June 1992 for apparel. Tariff reduction programmes were set for these industries which were more gradual than those for most other industries.

As a result of these changes, both industries have had to adjust to increasing competition from a greater variety and price range of imported products. The textile and apparel industries remain significant employers with the range of clothing produced covering all main categories of garments.

Carpet—During the period from 1985 to 1990, import licensing for carpet was gradually phased out, with licensing on all types of carpet finally being removed in March 1990. The final industry plan review of carpet took place in 1990 and set tariffs for the industry through to July 1996. These were later revised by the National Government in September 1991 and carpet has now been afforded higher protection and tariffs have been aligned with the Australian tariff regime for carpet.

There are now two main players in the New Zealand carpet industry who produce predominantly wool-rich carpet.

Footwear—New Zealand has a long established footwear manufacturing industry, which in the past has enjoyed relatively high levels of tariff and licensing protection. These levels of assistance have reduced as a result of reviews under the Footwear Industry Development Plan in 1986 and 1990. Considerable restructuring has taken place within the industry since 1986, resulting in a reduction in the number of manufacturing units.

On 1 July 1991, adults' footwear (the only category still requiring an import licence) was removed from import licence control.

Table 18.2. APPAREL, FABRIC, CARPET AND FOOTWEAR TARIFF PHASINGS

 As at 1 July
 199119921993199419951996

*The need for alternative specific tariff rates beyond 1992 is currently under review in relation to apparel and footwear.

A review is currently underway to determine rates for other textile products.

Source: Ministry of Commerce

  percent   
Apparel*40 (or 46.5)4037.53532.530
Textiles†26.42524232220
Fabricto 14to 14to 14to 14to 14to 14
Carpet32.53229272523
Footwear*—Adults'554542393530
Childrens' (sizes 10 to adults'4)353331292725

Tariff rates for the apparel, textile, carpet and footwear industries will be reviewed again in 1994 to set rates for the post-1996 period.

Manufacturing enterprises

Table 18.3 shows the different types of manufacturing businesses recorded by a survey to update the Department of Statistics' Business Directory at February 1991. 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 18.4 shows the number of manufacturing activity units (business locations) and persons engaged over the last four years, again using the annual Business Directory update as a source.

More detailed statistics showing economic activity in manufacturing are available from the 1987 Economy Wide Census Reports.

Table 18.3. MANUFACTURING ACTIVITY UNITS AND PERSONS ENGAGED, FEBRUARY 1991

NZSICType of manufacturing Persons engaged size group
 0-56-910-4950-99100+Total
3111Slaughtering and meat processingActivity units129291002852338
  Persons engaged305211245218262175626550
3112Dairy productsActivity units479481825147
  Persons engaged89671191129848297474
3113-3122Other foodsActivity units78923133452401446
  Persons engaged2052165065983721909123112
313BeveragesActivity units83223758155
  Persons engaged21515972436616703134
314Tobacco productsActivity units130026
  Persons engaged01800593611
321TextilesActivity units515951492818805
  Persons engaged111068232621934321710205
322–324Apparel and footwearActivity units93212934762211491
  Persons engaged201693976714282330118209
33Wood processing and productsActivity units225133544841183093
  Persons engaged4801243485452797314421721
341Paper and paper productsActivity units6016522223173
  Persons engaged1441151185151267739729
342Printing and publishingActivity units83119331627301397
  Persons engaged2036139160131964598017384
351Industrial chemicalsActivity units9630461414200
  Persons engaged226207102089719054255
352Other chemicalsActivity unit1893187229338
  Persons engaged3672131916139418675757
353Petroleum refineriesActivity units7130213
  Persons engaged208640719811
354Petroleum and coal productsActivity units24390036
  Persons engaged392126400324
355Rubber productsActivity units60203813122
  Persons engaged149145868748012037
356Plastic productsActivity units229651311813456
  Persons engaged5094712789113123807280
36Non-metallic mineral productsActivity units6297813167851
  Persons engaged1345566254439614556306
37Basic metal industriesActivity units103333858187
  Persons engaged24123490441148756665
381Fabricated metal productsActivity units167238346346162580
  Persons engaged3674277289162984254920895
382MachineryActivity units22233503253042932
  Persons engaged472724736222220184916472
383Electrical machineryActivity units426891251623679
  Persons engaged93963925661195499810337
384Transport equipmentActivity units77111813520301074
  Persons engaged162383827481283815214644
385Professional equipmentActivity units7182012102
  Persons engaged14359333704031008
39Other manufacturingActivity units764567961906
  Persons engaged149941115444261224002
3Total manufacturingActivity units129022327346146836919527
  Persons engaged2826916723703393216291429238922

Cadbury's factory, Dunedin.

Table 18.4. BUSINESS LOCATIONS AND PERSONS ENGAGED BY INDUSTRIAL CLASSIFICATION, 1988–1991

NZSICType of manufacturing Persons engaged
 1988198919901991
3111Slaughtering and meat processingActivity units308321330338
  Persons engaged30249308472889126550
3112Dairy productsActivity units172151144147
  Persons engaged8126798378157474
3113–3122Other foodsActivity units1358141414221446
  Persons engaged24029241062283723112
313BeveragesActivity units152154143155
  Persons engaged3369322130553134
314Tobacco productsActivity units7796
  Persons engaged693743648611
321TextilesActivity units829834817805
  Persons engaged12999119071199610205
322–324Apparel and footwearActivity units1620153214791491
  Persons engaged23976205471967618209
33Wood processing and productsActivity units3077302129803093
  Persons engaged24773223482258421721
341Paper and paper productsActivity units209188172173
  Persons engaged10686908885889729
342Printing and publishingActivity units1250132613341397
  Persons engaged18716184031730117384
351Industrial chemicalsActivity units214207211200
  Persons engaged4862471542024255
352Other chemicalsActivity unit384352338338
  Persons engaged6855639560445757
353Petroleum refineriesActivity units16141613
  Persons engaged1001883843811
354Petroleum and coal productsActivity units40373436
  Persons engaged993886341324
355Rubber productsActivity units124121123122
  Persons engaged2892205022512037
356Plastic productsActivity units459452448456
  Persons engaged7574739478817286
36Non-metallic mineral productsActivity units938905864851
  Persons engaged9372791069356306
37Basic metal industriesActivity units201198190187
  Persons engaged6634651370806665
381Fabricated metal productsActivity units2795266925652580
  Persons engaged26075232112215120895
382MachineryActivity units2866295529062932
  Persons engaged18985178351748316472
383Electrical machineryActivity units723675674679
  Persons engaged12237108641101910337
384Transport equipmentActivity units1137113311031074
  Persons engaged21291177071707114644
385Professional equipmentActivity units103103103102
  Persons engaged1402126312681008
39Other manufacturingActivity units853838840906
  Persons engaged4267389642204002
3Total manufacturingActivity units19835196071924519527
  Persons engaged281996260715252180238922

Mitsubishi Motors, Porirua.

REGIONAL EMPLOYMENT IN MANUFACTURING 1991 - NORTH ISLAND
By major types of industry

Assistance to industry

In 1984, when the Labour 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 aimed to create an environment in which individuals can pursue their ideas unhampered by unnecessary controls and regulations.

Levels of industry assistance have fallen markedly 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 about 18 percent. As a result of the 1988–92 tariff reduction programme, this average effective rate of assistance will be reduced further to approximately 14 percent.

Regional development.

The Government's Regional Development/Business Development policy is aimed at assisting regions identify and capitalise on their own opportunities for development.

During the latter part of 1990 work continued on putting into place the new network of Business Development Boards which replaced the former Regional Development Councils. New boards were established in Auckland, Bay of Plenty, Manawatu, Waikato and Wellington giving a total of 21 boards throughout the country. Legislation was introduced into Parliament to allow boards to be re-constituted as independent Crown agencies. The legislation, however, was not enacted before the general election in 1990.

The new Government decided that it wanted to look afresh at its range of enterprise assistance programmes and the way in which they were delivered. Accordingly the then Minister of Regional Development, now retitled ‘Business Development’, commissioned an independent committee made up of representatives from the public and private sector to report on how the various programmes could be better refined and delivered. The public were given the opportunity to make their comments by way of submissions to the committee.

As a result of this process the Government decided it wished to have the network of 21 Business Development Boards re-constituted as independent agencies as earlier envisaged. Boards were also to become responsible for administering the Business Development programme grants which formed part of its wider Enterprise Assistance package. These had been administered by the Ministry of Commerce. This responsibility passed to the boards on 1 February 1992.

Boards will retain their principal function of stimulating new ideas and promoting development opportunities in their respective regions.

LWR Hosiery and Underwear, Christchurch.

The outcome of the Enterprise Assistance review also saw some changes to the Business Development programme grants.

The Business Development Investigation Grant, in essence a renaming of the former Regional Development Investigation Grant was retained. It provides up to $20,000 towards investigating the commercial feasibility and/or technical viability of a potential commercial activity which is new to a region. The maximum limit was reduced from $50,000 as part of the National Government's early decisions on expenditure reduction. As part of these decisions the New Business Investigation Grant Scheme was discontinued.

The Expert Assistance Grant Scheme, is a modification of the earlier Expert Assistance Programme. It provides up to $8,000 for firms to engage consultants in key management areas where better performance will lead to sustainable improvements in efficiency and competitiveness.

The Enterprise Growth Development Scheme is a new scheme which provides up to $20,000 in a variety of areas to help firms improve their level of competitiveness by becoming more effective and efficient.

With all three grant schemes recipients are required to meet half the eligible costs themselves.

Standards and Business Innovation.

The Ministry of Commerce works to ensure that business is served by an infrastructure which meets its need to be internationally competitive in the area of quality and standards. To this end the ministry has negotiated with Australia an Agreement on Standards, Accreditation and Quality, to ensure that New Zealand and Australian standards are as far as possible uniform and harmonised with international standards. It has also developed with Australia the ‘Joint Accreditation System—Australia and New Zealand’, which will pave the way for New Zealand product certification and quality systems accreditation agencies to achieve greater international acceptance.

Increased business innovation is a goal of the ministry, and it has run a series of seminars providing an awareness of the fundamentals to small and medium sized businesses in particular. The ministry also provided the major sponsorship of a Massey University produced video series entitled ‘Your Competitive Business’. This was shown on television in late 1990 and is available to business. Two business development programmes developed by the Australian National Industry Extension Scheme (NIES) called ‘World Competitive Manufacturing’ and ‘Total Quality Management—How To’, were introduced by the ministry and New Zealand Trade Development Board to New Zealand. Investigations have been carried out into the problems faced by business in securing finance for development, and the nature and benefit of interfirm co-operation.

Soft-drink plant, Upper Hutt.

Manufacturing statistics

Quarterly Economic Survey Statistics.

The Department of Statistics' Quarterly Economic Survey of Manufacturing, which was revised in March 1991, is based on a sample of approximately 2000 manufacturing units selected from the Department of Statistics' Business Directory, a comprehensive and up to date list of all businesses in New Zealand. In contrast, the previous survey sample was based on the 1979 Census of Manufacturing. This revision to the sample frame, along with technical changes made to the survey has resulted in improved statistics on manufacturing in New Zealand. The new sample was introduced in the March quarter 1991 along with a compatible revised series going back over previous years.

Table 18.5 summarises the results from the survey over the six years to 1991, while Table 18.6 provides a breakdown by major types of manufacturing for the year ended March 1991.

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, extraordinary items, losses on sale of fixed assets, sales tax, beer and excise duty and fringe benefit tax.

Table 18.5. QUARTERLY ECONOMIC SURVEY OF MANUFACTURING: ALL-INDUSTRY TOTALS

Year ended 31 MarchSales and other incomeRStocks*Additions to fixed assetsRSalaries and wagesRPurchases and other operating expensesRHours workedR
MaterialsRFinished goodsR

*At end of quarter. R Revised due to survey reselection.

   $(million)  (000)
198629,295.22,640.32,252.22,642.55,287.322,254.3563196
198732,489.92,534.92,469.92,242.35,965.023,832.5553596
198833,740.42,627.12,440.92,219.76,141.925,430.3522695
198934,651.62,495.62,242.01,904.86,203.325,587.7479961
199037,526.32,668.72,658.61,827.86,297.028,568.0463700
199137,443.02,656.93,016.91,640.96,406.728,344.7442260

Table 18.6. QUARTERLY ECONOMIC SURVEY OF MANUFACTURING, 1991*

Industry divisionSales and other incomeStocks†Additions to fixed assetsSalaries and wagesPurchases and other operating expensesHours worked
MaterialsFinished goods

*Year ended 31 March foods.

At end of quarter.

Includes the processing of meat and dairy products, and other primary

   $(million)  (000)
Primary food‡7,748.9192.5562.4363.11,067.36,636.367226
Other food5,492.2409.1446.8188.2711.24,091.553827
Textiles, clothing2,762.7214.0302.935.1649.41,969.956804
Wood and furniture2,260.0112.4241.2177.0437.21,592.833918
Paper and printing4,726.5369.3199.5297.2961.33,271.555748
Chemical4,362.1407.4380.2199.0651.73,277.539426
Non-metallic mineral1,019.043.262.365.5185.0735.112259
Basic metal1,564.2149.6171.251.1269.91,252.614110
Fabricated metal7,152.4725.9613.1255.91408.95,272.6103720
Other manufacturing industries355.233.437.28.864.7244.95224
Total37,443.02,656.93,016.91,640.96,406.728,344.7442260

In addition to quarterly economic data on manufacturing there are more detailed statistics available from the 1987 five-yearly Economy Wide Census and the 1986–89 Annual Enterprise Surveys.

Contributors

  • 18 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 of 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 of Economic Research, 1987.

Productivity and Prosperity. Ministry of Commerce, 1989.

Productivity and Quality in New Zealand Firms: Effects of Deregulation. New Zealand Institute of Economic Research, 1989.

Productivity Trends and Cycles in New Zealand: A Sectoral and Cyclical Analysis 1961–1987. New Zealand Institute of Economic Research, 1989.

Chapter 19. Housing and construction

19.1 Housing

The housing sector forms 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 number of occupied permanent dwellings in New Zealand as at 31 March 1991 was 1116,400. 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. 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 crises 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

Between December 1990 and December 1991, mortgage interest rates fell from 15.2 percent to an average of 11 percent. Over 1990–91 there has been a strong growth in mortgage borrowing, and although this has slowed recently it is still continuing. This has led to vigorous competition from banks, with more flexible mortgage terms being offered and special low rates.

The number of freehold, open market house sales totalled 25,630 in the six months to June 1991, compared with 34,397 in the corresponding period in 1990.

House sales in the six months to December 1990 totalled 30,203 compared with 34,583 in the six months to December 1989. In the 1990–91 year a continuing decline in the number of house sales was shown with a decline in activity recorded in all sectors of the market for the six months to June 1991 compared to the previous six months.

New dwellings.

Building permits for new dwellings issued during the year ended 31 March 1991 totalled 20,820 with a value of $1,997 million. This compared with a total of 22,851 issued in 1990 (value $2,058 million), and 19,513 in 1989 (value $1,611 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 1990 as in 1989 (7.6 percent in the year ended December 1990 and 7.5 in the year ended December 1989). This compares with a movement of 21.7 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 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

 December year
 19861987198819891990

Source: Valuation New Zealand.

   $  
Average sale price of—     
Sections2582231589338673953443389
Houses797219401898732109840115150
Owner-occupier flats758108900893601103267107416

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. Data is available from Valuation New Zealand.

St Mary of the Angels Church and the Majestic Tower, Wellington.

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 rental housing 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. 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.

In the year to 30 June 1991, there were 22,584 tribunal applications. Of applications received, 13,550 were resolved by mediation, compared to 11,441 in the previous year. There were 9034 applications which proceeded to a formal Tenancy Tribunal hearing in 1990–91, compared to 8086 in the previous year. About two-thirds of applications are made by landlords, commonly for rent arrears.

The Residential Tenancies Fund, in which bonds for residential tenancies must be held, contained $35.4 million at 30 June 1991 which is an increase of $3.1 million over the 1988–89 financial year. The Tenancy Bond Division activity was being reviewed in 1991, and until this is completed the date by which the division's activity will be self-funding cannot be predicted.

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 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 4.2 percent since 30 June 1989, bringing the total dwelling stock to 67,753 at 30 June 1990.

Rents received from tenancies during 1989–90 amounted to $235 million, compared with $212 million for the previous financial year. The largest single item of expenditure charged against rentals was the provision for maintenance of rental houses. For the year ended 30 June 1990 this amounted to $79.9 million, compared with $76.6 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.

GOVERNMENT HOUSING
Ratio of state/private housing starts

Table 19.2. HOUSING CORPORATION RENTAL UNIT CONSTRUCTION AND PURCHASE*

 New units constructedNew units purchasedNet acquisitions
 198919901989199019891990

*Includes relocatable cottages.

Source: Housing Corporation.

   units  
Auckland244305302307526583
Manukau509463250341753792
Henderson204287140111339392
Hamilton698783125128190
Rotorua66777070132136
New Plymouth951012-13
Napier77554166103114
Palmerston North385831255566
Lower Hutt86795171246
Porirua55140473283156
Nelson9178112010089
Christchurch86786176128131
Dunedin2316235252
Invercargill510161537

19.2 House purchase and mortgage finance

Borrowing money on mortgage is a principal means of financing the building or purchase of houses and commercial buildings, and the purchase of farms. The main sources of mortgage finance for housing are registered banks and other M3 institutions (i.e., saving institutions, finance companies and merchant banks). These institutions currently advance around 90 percent of all money lent for housing in New Zealand. The next most significant category of lender, and the largest individual organisation in the housing market, is the Housing Corporation of New Zealand, although policy changes are gradually reducing the significance of the corporation in this market. Insurance companies have traditionally been major lenders for housing, but their involvement has declined recently, and they now lend less than 2 percent of the total.

During 1990, around 15 percent of lending was for new housing, similar to the proportion observed in recent years. Approximately 95 percent of all housing lending was secured by a first mortgage. This ratio increased following the recent deregulation of the finance industry.

Table 19.3. SOURCE OF HOUSING LOANS

QuarterHousing CorporationLife insurance officesM3 Financial institutionsTotal

Source: Reserve Bank.

1989no.$(000)no.$(000)no.$(000)no.$(000)
Mar8463208.455830.3252941,212.7343151,451.5
Jun8559202.558633.6309601,523.3400851,795.4
Sep7903184.951333.4327201,634.5411361,852.8
Dec6930158.959437.6303151,578.0378391,774.5
1990        
Mar5544124.552326.1299401,566.6360071,717.2
Jun6994168.347830.8340101,727.3414821,926.3
Sep6439162.244730.1341721,821.2410582,013.5
Dec6216158.744530.3322771,776.2389381,965.2

Maori housing

From 1989 the Iwi Transition Agency provided loan assistance to Maori and Pacific Island families. From 1 January 1992 the functions of the agency transferred to the Ministry of Maori Development, which now administers the Maori Housing Programme. For the year ending 30 June 1991 the agency assisted 580 clients for $30.2 million. The major portion of loan finance was advanced to fund client families into first home ownership. A limited number of advances were made for additions/repairs and refinancing of existing mortgage debt. The agency had 9800 loan clients with a total of 13,986 accounts for a total lending portfolio of $281 million. The agency also provided rental accommodation for elderly under its Kaumatua Flats programme with 440 flats administered.

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 30 June 1990 the corporation authorised 24,596 loans for $590.4 million. Mortgage lending activities comprise the bulk of this output, including the following.

Home loans.

This scheme provides mortgages to ‘modest income’ families buying or building their first home. Annual interest is charged on a scale of 8 percent to 11.4 percent depending on income. Loans may also be made under this scheme to housing co-operatives. During the year ended 30 June 1990 the Housing Corporation authorised 6189 ‘modest income’ loans valued at $267.8 million.

Loans to corporation tenants.

These loans assist corporation tenants into home ownership. Annual interest is charged on a scale of 8 percent to 11.4 percent depending on income. In the year to 30 June 1990, 1919 tenants were assisted into home ownership.

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 8 percent to 11.4 percent depending on how much the borrower can afford. In the year to 30 June 1990, 1753 loans for $49.5 million were authorised.

Papakainga (multiply-owned lending).

These loans allow 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 30 June 1990, 246 loans were made on multiply-owned land, for an approved amount of $10.9 million.

Sweat equity scheme.

The labour of the modest-income home buyer is used as a deposit equivalent.

House auction.

Second mortgages.

These are joint ventures with private institutions. The corporation assists by providing an affordable second mortgage where a reasonably priced first 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 8 percent to 11.4 percent depending on income. In the year to 30 June 1990, 1370 loans for $11.8 million were authorised.

The corporation also provides support services to homeowners, to reduce the costs of home ownership. Services offered include the following.

BuildGuard.

This insurance programme provides protection against faulty materials and poor performance by builders.

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. The scheme is targeted for low and modest income clients.

Other insurance services.

The corporation can offer home, contents and mortgage insurance as an agent for private insurers.

Table 19.4. HOME BUYER LENDING*

ProductNumber of loan approvalsPerformance value of loan approvals $(m)Number of households assisted
1988/891989/901988/891989/901988/891989/90

* Year ending 30 June.

Source: Housing Corporation.

First home (modest income)95326189411.8267.895156222
Loans to tenants22661191116.355.422661194
Second chance1276182148.971.112761822
Refinance1553175343.849.515531753
Papakainga (multiply-owned lending)20924610.010.9226269
New horizons-124-5.1-124
Better use-165-3.2-165
Relocatables-13-0.3-13
Equity sharing/sweat equity2523913.42.025239
Homestart1704212837167.0123.7--
Building industry suspensory loans1631750.80.9--
Tied accommodation21110.80.4--
Tenancy savings scheme41320.10.1--
Total3235524596812.9590.41508811601

Housing Corporation community housing programme

Through its community housing programmes, the Housing Corporation provides housing to people with emergency housing needs, and those with welfare- or health-related disabilities. The corporation provides special tenancies at peppercorn and income-related rents, and mortgage finance at income-related interest rates working in partnership with local authorities and community-based organisations such as church groups and community- or family-based trusts.

Special tenancies.

These are corporation-owned rental houses managed by community agencies for clients with special or emergency housing needs. Special tenancies are largely for emergency, or short term ‘crisis’ housing such as Women's Refuges. Other clients often housed through the special tenancies programme are persons whose incomes and living arrangements may be interrupted by health difficulties such as those with a psychiatric disability, or substance abuse problems. At the end of the year to 30 June 1991, the corporation operated over 600 special tenancies with community-based groups, and has planned for at least another 100 in the current financial year.

Special lending.

This companion programme to special tenancies provides loan finance at flexible, income related interest rates, from 3.5 percent annually, to assist community groups purchase housing for clients with health- and welfare-related disabilities. The programme is designed to provide secure community-based housing where necessary care and support services can also be provided to clients outside an institutional setting. It serves clients with long-term health disabilities, such as intellectual disability and less severe psychiatric disabilities, and assists community groups who have established a stable client base in need of community housing. At the end of the financial year to 30 June 1991, the corporation had financed over 700 mortgages to community-based groups.

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. As at 30 June 1990, 65 loans totalling $10.9 million had been authorised.

HOME MORTGAGE RATES
Registered mortgages

The corporation also offers assistance to community groups for the provision and preservation of boarding house accommodation; and with community grants for research and housing projects, and general advisory and advocacy work on housing issues.

Reform of housing assistance

Major housing reforms were announced in the 1991 Budget. The Housing Corporation will be a state-owned enterprise from 1 July 1992 and will operate on a fully commercial basis.

An Accommodation Supplement will be introduced to replace subsidised rents and mortgage interest rates which have traditionally been available from the Housing Corporation and Iwi Transition Agency. It will be similar to the Department of Social Welfare's Accommodation Benefit, which it will also replace. The supplement will be targeted to people on the lowest incomes whose rents or home ownership costs are unaffordable, and will be available from the Department of Social Welfare in July 1993.

Important social measures, such as providing housing for those with special needs, maintaining housing standards and discouraging discrimination, will remain under the new system of housing assistance.

Table 19.5. HOUSING LOAN APPROVALS

 Housing CorporationSurveyed financial institutionsLife Insurance officesTotalPercentage of funds for new housingPercentage of funds in first mortgage

Source: Reserve Bank.

   no.$(m)no.$(m)no.$(m)no.$(m)
1989—Dec6930158.9303151,578.059437.6378391,774.513.897.0
1990—Mar5544124.5299401,566.052326.1360071,717.213.395.0
Jun6994168.3340101,727.347830.8414821,926.313.395.8
Sep6439162.2341721,821.244730.1410582,013.515.094.6
Dec6216158.7322771,776.244530.3389381,965.213.895.0
1991—Mar3700126.9286571,630.533022.5326871,779.914.298.1
Jun2819121.6341301,725.636425.0373131,872.213.096.5
Sep      255276.3335791,924.9

MORTGAGES
Registered and discharged

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.

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 Plan operated by the local authority. Based on the effects of a proposed development on the environment and on people in the vicinity, the authority will decide whether a development can occur in a particular area. Any developer or other person can initiate a change to a district plan. An authority must carry out a full review of a district plan every 10 years. Appeals against authority decisions may be made to the Planning Tribunal.

All new buildings and structural alterations and/or additions to existing buildings require a building 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. Checking is usually carried out by the authority during construction.

Recycling demolition timber.

Particular provisions are called up under the bylaws to ensure earthquake resistant design, a field well researched in New Zealand. 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 Resource Management Act came into effect on 1 October 1991. Its main effect on the building and construction industry is in land use planning, where the primary focus is now on the adverse effects of activities generated by proposals, rather than other land use considerations.

A major review of the administration of building controls is foreshadowed in the Building Bill which government plans to enact in late 1991 and bring into effect in 1992. Under the bill, building controls will be based upon a performance-based National Building Code, rather than on the more prescriptive pre-1992 approach.

NEW DWELLINGS
Dwellings as a percentage of total value

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 these 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 1991 are described by types of building in Table 19.6. Permits cover alterations and additions as well as new buildings, and government and other buildings not requiring building permits are included.

Table 19.6. VALUE OF BUILDING PERMITS ISSUED

Type of buildingYear ended 31 March
19871988198919901991

*Includes additions and alterations.

Includes ancillary buildings.

Residential—  $(million)  
New dwellings1,361.11,577.21,610.52,057.71,997.1
Alterations and additions to dwellings409.1428.8478.0495.9431.5
Non residential*—
Hostels, boardinghouses20.028.937.38.73.4
Hotels, motels, etc.124.5180.782.723.020.8
Hospitals and nursing homes†69.8190.281.858.851.9
Education buildings†111.6101.4105.975.8117.1
Social, cultural, and recreational buildings97.6136.0111.1114.3105.3
Shops, restaurants, taverns157.2186.1146.3186.1207.6
Office and administrative774.51,021.81,130.1419.1226.5
Warehouses160.4164.878.068.743.5
Factories, powerhouses, etc.300.8421.8232.9263.3231.6
Farm buildings47.349.747.460.448.9
Miscellaneous buildings45.124.540.053.552.5
        All buildings3,678.94,512.04,182.03,885.33,537.9

The Auckland Children's Hospital, the largest and most complex building ever built in New Zealand.

Table 19.7. LOCATION AND VALUE OF BUILDING PERMITS, 1990–91

Main urban areaNew dwellingsNon-residential value*Total buildings value*
NumberResidential value

*Includes alterations and additions.

   $(million) 
Whangarei29324.616.144.2
Auckland (Main) Urban Area6193658.2312.21,092.9
    Northern Auckland Zone1567179.866.2280.7
    Western Auckland Zone1299129.714.4166.8
    Central Auckland Zone1576169.5170.4382.6
    Southern Auckland Zone1751179.961.2262.8
Hamilton77876.647.0132.7
Tauranga87873.427.5109.2
Rotorua19714.810.128.5
Gisborne907.14.113.3
Napier22520.88.033.2
Hastings18416.415.136.7
New Plymouth26622.616.344.6
Wanganui17717.514.835.8
Palmerston North43143.137.187.1
Wellington (Main) Urban Area1119114.5172.3334.7
    Upper Hutt Valley Zone1039.96.320.7
    Lower Hutt Valley Zone39236.329.579.2
    Porirua Basin Zone14615.815.236.5
    Wellington City Zone47852.5121.2198.3
Nelson48040.113.557.8
Christchurch1951203.686.8323.2
Timaru899.05.816.4
Dunedin38334.317.8120.7
Invercargill17916.518.038.2
        Total, 17 main urban areas139131,389.8879.52,549.2

SIZE OF NEW DWELLINGS
Average floor area

Table 19.8. TYPES OF BUILDING PERMITS AND AUTHORISATIONS, 1990–91*

Type of buildingType of applicantTotal
Producer enterprisesFinancial intermediariesGeneral governmentPrivate non-profit organisationsOverseas and house-holds

*Includes alterations and additions.

Includes ancillary building.

   $(000)  
Dwellings95,1891093,06014,1442,316,1272,428,627
Hostels and boardinghouses612-1,958867-3,438
Hotels, motels, etc.20,279-43526-20,849
Hospitals and nursing homes†18,11510,65913,6849,455-51,913
Education buildings†2,276-100,81713,977-117,070
Social, cultural, and recreational14,678-34,27056,301-105,330
Shops, restaurants, taverns199,9451,6511,1084,91812207,634
Office and administrative152,91032,27837,1594,15120226,518
Warehouses43,400-9158-43,550
Factories, powerhouses, etc.219,62020811,299261230231,618
Farm buildings48,540-142173-48,855
Miscellaneous49,233-2,459762-52,454
        All buildings864,79844,904206,090105,6742,316,3882,537,854

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 1990–91 includes 20,820 permits or authorisations to a total value of $1,997.1 million for new dwellings. This includes authorisations by central government for 1149 new dwellings (value $92.5 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 excludes 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.

HOUSING COSTS
Average building cost per square metre

Table 19.9. PERMITS FOR NEW DWELLINGS

Year ended 31 MarchUnitsValueAreaTotal dwelling permits*Total permits all buildings*

*Includes additions and alterations.

 no.$(million)sq m (000)$(million)
1987201281,361.12542.71,770.13,679.0
1988198861,577.22514.92,006.04,512.0
1989195831,610.52447.92,088.64,182.0
1990228512,057.13029.82,553.63,885.3
1991208201,997.12827.02,428.63,537.9

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.

NEW DWELLINGS
Number of building permits issued

Table 19.1. WORK PUT IN PLACE

Year ended 31 March    Dwellings
    New dwellingsAlterations/additionsSubtotal
    GovernmentOther

* Includes alterations and additions.

†Includes ancillary buildings.

‡Includes churches and sports entertainment buildings.

      $(million) 
1988    67.71,281.5428.21,777.3
1988    85.91,389.9448.71,924.4
1989    87.91,489.2503.02,080.1
1990    62.41,851.6531.42,445.4
1991    88.32,000.4487.82,576.5
Year ended 31 MarchNon-residential buildings*Total
Hotels, boarding-houses†Hospitals†FactoriesCommercial buildingsSchools†Miscellaneous‡Subtotal
    $(million)   
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
1990195.6115.2302.61,208.4109.5266.22,197.34,642.8
1991127.095.3354.3965.197.7214.81,854.24,430.7

Building and construction costs and prices.

In December 1989 the Department of Statistics established a Capital Goods Price Index series. It comprises two residential building, four non-residential building, four other construction and four land improvement price indexes. The indexes are calculated quarterly and are based on models for each sector. Included are costs of construction and installation and also a profit margin which is considered applicable at the time of the calculation of the index.

For the 12 months to March 1991 price index increases were; residential buildings 3.3 percent, non-residential buildings 2.1 percent, other construction 3.5 percent and land improvements 4.6 percent.

Industry statistics.

The Department of Statistics' five-yearly Census of Building and Construction has provided broad economic data on the industry. The most recent census formed part of the 1987 Economy Wide Census. The results from the census are updated annually by the Annual Enterprise Survey. Both the censuses and the Enterprise Survey cover the activities of all businesses classed in Major Division 5 of the New Zealand Standard Industrial Classification. A summary of results is given below.

Restoration of Taita's historic Christ Church, burnt in an arson attack.

Table 19.11. BUILDING AND CONSTRUCTION: STATISTICAL SUMMARY

Statistical item1986–871987–881988–89
  $(000) 
Group enterprises417393400
Enterprises within these group enterprises588574569
Enterprises not within these group enterprises235472487824543
Activity units (including ancilliaries)249922629125887
Full time equivalent persons engaged963289753791999
Stocks—
    Closing648,8701,039,5201,121,287
    Opening548,790737,771894,665
Income—
    Sales of goods and services6,831,11310,847,23710,775,942
    Interest and dividends received67,11890,84888,481
    All other income received2,905,179362,292314,254
        Total income9,803,40811,300,67711,158,677
        Adjusted for change in stock values9,903,49111,602,12511,385,287
Operating expenditure—
    Salaries and wages1,354,7941,582,9321,576,089
    Depreciation128,950177,964209,109
    Interest, bad debts, etc.196,007306,483291,840
    Indirect taxes32,43638,37444,388
    Purchases3,427,4484,718,6584,658,238
    All other operating expenditure3,778,9183,804,7823,537,225
        Total expenditure8,918,55410,629,19410,316,888
Working proprietors/partners salaries and wages516,792444,863495,572
Net profit before tax after deducting working proprietors/partners salaries and wages468,143528,070572,837
Economic values—
    Operating surplus1,113,8251,188,5671,271,768
    Value added2,679,3782,836,2493,029,857
Fixed tangible assets—
    Purchases during the year491,055506,573384,322
    Sales during the year135,201123,623115,061
Balance sheet—
    Shareholders funds, etc.1,437,6841,708,2502,147,521
    All other liabilities2,871,2343,804,7054,217,255
        Total capital and liabilities4,308,9185,512,9546,364,776
Fixed tangible assets1,173,1481,460,2841,759,177
All other assets3,135,7714,052,7004,605,599
        Total assets4,308,9185,512,9546,364,776
Ratios—
    Value added per full-time equivalent persons engaged27,81529,07932,934
    Value added per $1,000 of salaries paid1,9781,7921,922
    Total sales and other income per full-time equivalent person engaged101,771115,857121,291
  percent 
    Net profit per total sales and other income4.84.75.1
    Total salaries and wages per total sales and other income13.814.014.1
    Value added per total sales and other income27.325.127.2
    Shareholders funds per total capital and liabilities33.431.033.7
    Fixed assets per total assets27.226.527.6

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.

Further information

Housing

Annual Accounts and Statistics. Housing Corporation of New Zealand.

Annual Report of the Building Research Association of New Zealand.

Report of the Housing Corporation of New Zealand (Parl. paper B. 13).

Report of the Valuation Department (Parl. paper G.26).

Urban Real Estate Market in New Zealand. Valuation New Zealand (six-monthly).

Building and construction industry

Building and Construction & Transport, Storage and Communication 1987. Department of Statistics (Economy Wide Census).

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, changes in the marketplace and developments in technology 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 has centred on the need to improve the efficiency of the organisation.

In 1986 the corporation became a state-owned enterprise, responsible for managing its resources on commercial lines. Over the years, there have been major cuts in staffing levels 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, with the quantitative system of road licensing replacing the qualitative system.

With the announcement of a liberalised external aviation policy in 1985, international air services expanded and now 11 international airlines operate in New Zealand. Domestic aviation was also opened up. Ansett New Zealand Limited has been flying domestic routes in direct competition with Air New Zealand since mid-1987.

In 1989 Air New Zealand was sold to a consortium of New Zealand and overseas interests. 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, have been encouraged to form airport companies. All the international, and a number of the domestic, airports have been corporatised, with further incorporatisations planned. Officials are studying the issues involved in privatisation of airports.

The Government's role in the maritime industries focuses increasingly on the benefits from reform to be secured by New Zealand cargo interests. Regional councils, which own the shares of port companies established by the 1988 Port Companies Act, are being encouraged to sell their interests to port users. Local operators in the shipping industry are being challenged by a government determination to see increased competition in the coastal and trans-Tasman trades.

In 1987, 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. In 1990 the Telecom Corporation was purchased by a consortium of two United States and two New Zealand companies, with shares in Telecom being available to the public in early 1991. CLEAR Communications Limited was launched in 1990 and provides toll, private line and specialist local network services in competition with Telecom. CLEAR is also owned by an international/New Zealand shareholding.

The Department of Statistics' five-yearly Census of Transport, Storage and Communication has provided broad economic data on the industry. The most recent census formed part of the 1987 Economy Wide Census. The results are updated annually by the Annual Enterprise Survey. Both the census and the Enterprise Survey cover the activities of all businesses classified in Division 12 of the New Zealand Standard Industrial Classification.

Table 20.1. TRANSPORT STORAGE AND COMMUNICATION: STATISTICAL SUMMARY

Statistical item1985–861986–871987–88Year 1988–89
 number
Group enterprises-574555571
Enterprises within these group enterprises-836796792
Enterprises not within these group enterprises7029874892019573
Activity units (including ancillaries)9839123601266013007
Full-time equivalent persons engaged986061065279923293108
Stocks—
    Closing95932110063310240242105
    Opening90796110068360211315985
Income—$(000)
    Sales of goods and services4,948,0967,771,9158,829,2669,490,975
    Interest, etc. received136,230115,352163,659163,216
    All other income2,103,416764,250838,235929,115
Total sales and other income7,187,7428,651,5179,831,16010,583,308
    Adjusted for change in stock values7,192,8778,650,5139,781,18910,509,426
Operating expenditure—
    Salaries and wages1,929,8842,466,8092,544,8332,619,624
    Depreciation386,617577,177793,450902,157
    Interest, bad debts, etc325,702461,641560,020614,129
    Indirect taxes148,205167,446182,567207,826
    Purchases731,237806,597926,2541,017,027
    All other operating expenditure3,090,1993,472,8084,030,0754,316,512
        Total operating expenditure6,611,8447,952,4729,037,1999,677,275
Working proprietors/partners salaries and wages71,465169,396190,015198,107
Net profit before tax after deducting working proprietors/partners salaries and wages509,570528,640553,978634,047
Economic values—
    Operating surplus772,0051,044,3261,149,3531,283,066
    Value added3,342,3794,392,9104,873,3685,287,460
Fixed tangible assets—
    Purchases during the year1,713,5091,506,8551,680,8811,755,661
    Sales during the year300,979345,216578,174770,243
Balance sheet—
    Shareholders funds, etc.--5,901,0716,759,275
    All other liabilities--5,793,4666,759,523
        Total capital and liabilities--11,694,53813,518,799
Fixed tangible assets--8,313,0329,590,247
All other assets--3,381,5043,928,552
        Total assets--11,694,33813,518,790
Ratios—
    Value added per full-time equivalent persons engaged33,89641,23849,11156,789
    Value added per $1,000 of salaries/wages1,7341,7801,9152,018
    Total sales and other income per full-time equivalent person engaged72,89481,21499,072113,667
 percent
    Net profit per total sales and other income7.16.15.66.0
    Total salaries and wages per total sales and other income26.828.525.924.8
    Value added per total sales and other income46.550.849.650.0
    Shareholders funds per total capital and liabilities--50.550.0
    Fixed assets per total assets--71.170.9

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 ship-using, 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.

The government is working towards opening trans-Tasman shipping, which has been reserved for New Zealand and Australian crewed ships through a maritime union accord, to international competition. Neither the Australian nor the New Zealand governments support the accord, and the recent employment contracts legislation in New Zealand is seen as providing the means with which traders can effectively undermine the accord on the New Zealand side.

Coastal shipping has also seen greater competitive activity in recent times with new operators entering the trade. The Employment Contracts Act impacted on the requirements for coastal shipping by repealing the requirement to employ seafarers on award wages, although coastal traders must still hold a valid New Zealand Certificate of Survey and employ crews which hold New Zealand certificates of competency, or recognised equivalents.

In mid-1991, the Minister of Transport announced the beginning of a thorough ‘bottom up’ review of the Shipping and Seamen Act 1952. The 1952 legislation was based heavily on the British Merchant Shipping Act of 1894 and a number of provisions stand out as anachronisms in a modern and competitive shipping industry. The Minister of Transport released policy proposals for this reform of shipping law in December 1991. After a consultative period during the first half of 1992, the Government intends to introduce a bill to Parliament by the end of that year.

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 effectively under control of the P & O group 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 in a joint service by NYK Line (Japan), P & O and Blue Star Line (both United Kingdom). 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 areas particularly for meat exports.

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), Tasman Asia (New Zealand), Nedlloyd Lines (Netherlands) 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 (Germany) and Blue Star Line (United Kingdom) controlled ships service both east and west coasts. ABC Containerline (Belgium) also operates to the east coast of the USA while two conventional refrigerated vessel operators (Denmark and Japan) carry a significant portion of New Zealand's beef exports to the USA.

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 Tasman Express Line (two ships) and the New Zealand Line (now owned by P&O). The Australian National Line runs two ships, and BHP Transport one ship on the Tasman, while the Pacific Forum Line operators services to and from Brisbane as part of its services to the islands of the South West Pacific.

South Pacific.

The regionally-owned Pacific Forum Line operates five vessels linking New Zealand, Australia, Fiji, Kiribati, the Marshall Islands, Nauru, Papua New Guinea, the Solomon Islands, Tonga, Tuvalu and Western Samoa. Sofrana Unilines, Cook Islands National Line, W Islands Lines, Translink Pacific Shipping, Blue Star Line (as part of its North America trade), Polish Ocean Lines (European trade) and Armada Shipping (South American trade) also operate ships in New Zealand's South Pacific trade. Their individual operations provide New Zealand with services to the Cook Islands, Fiji, Kiribati, the Marshall Islands, New Caledonia, Niue, Papua New Guinea, the Solomon Islands, Tahiti, Tonga, Vanuatu, American and Western Samoa.

Inter-island ferry services

A ferry service across Cook Strait between Wellington and Picton is provided by rail ferries operated by New Zealand Rail's Interisland Line. The Arahura and Aratika carry passengers and vehicles. The Arahanga is confined to the carriage of freight and provides only limited accommodation for passengers. 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. In mid-1991, New Zealand Coaster Services began a weekly service between Lyttelton, Nelson and Auckland with the Northern Transporter.

Seatrader Tug and Barge operate five tugs in the Cook Strait/Central region, while Auckland-based Sea Tow operate three tugs on tramp services around the New Zealand coast. Three operators are currently engaged in the Stewart Island trade offering a variety of timetabled and charter services. A new Stewart Island ferry service is planned for introduction in the upcoming year.

Chatham Islands.

Following the termination in 1990 of the Government-subsidised Chatham Islands shipping service under which M.V. Holmdale was chartered by the Crown, the Government provided a subsidised interim tug and barge based service, This was phased out in late 1991, with the commencement of an unsubsidised service operated by the Cook Islands National Line in conjunction with its South Pacific service between New Zealand, the Cook Islands, and Niue.

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 carriers 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.

In the year ended June 1991, 12209 arrivals and 12116 departures were recorded. The busiest port was Wellington with 2820 arrivals and 2811 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 17.4 million gross registered tonnes of shipping in the 1991 year, of which over 11.9 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 20.2. COASTAL CARGO—MAJOR ITEMS CARRIED, 1991*

CommodityUnloadedLoaded

*Year ended 30 June.

 gross tonnes
Cement432702485031
Coal and coke--
Petroleum products44617864516924
Sand and shingle51086682
Grain2204023448
Motor vehicles363493377773
Container goods198028222456
Other goods10802431148611
Total65633976780923

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 1991 a total of 13.3 million tonnes of cargo was shipped between New Zealand ports. Whangarei loaded out 2.3 million tonnes of refined petroleum products while Port Taranaki loaded 2.1 million tonnes of petroleum crude and liquified petroleum gas for other ports. Bulk cement totalling 485031 tonnes was carried from works near Whangarei (160000 tonnes), and Westport (324000 tonnes) during the year.

Overseas cargo.

Cargo loaded for overseas destinations during the year ended 30 June 1991 totalled 14.0 million tonnes, of which 1.0 million tonnes were ironsands from Taharoa. Tauranga loaded 4.4 million tonnes; Port Taranaki, 1.8 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 8.0 million tonnes for the year ended 30 June 1991. Of this Auckland unloaded 1.6 million tonnes, Whangarei 3.5 million tonnes and Tauranga 0.6 million tonnes. South Island ports accounted for 1.5 million tonnes of inwards cargo from overseas.

Table 20.3. OVERSEAS CARGO—COMMODITIES CARRIED, 1991*

CommodityUnloadedLoaded
Gross tonnesc.i.f.Gross tonnesf.o.b.

* Year ended 30 June.

  $(m) $(m)
Food and live animals655788792.126999746,585.0
Beverages and tobacco59295177.24167670.9
Crude materials1418020540.065770492,658.4
Mineral fuels38904021,276.21849535576.4
Animal and vegetable oils5129450.612703892.4
Chemicals and related products8173201,402.9873962812.9
Manufactured goods6320242,117.917006152,194.1
Machinery and transport equipment3380793,933.568208640.6
Miscellaneous manufactured articles888561,067.927161208.3
Commodities and transactions not classified elsewhere570.52
Total795113411,358.91396521913,839.0

Port activity.

Table 20.4 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 20.5 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 20.4. OVERSEAS CARGO LOADED BY COUNTRY, 1991*

Country of destinationValueQuantity

*Year ended 30 June.

Includes countries not listed separately loading cargo of less than $1 million, f.o.b. in value.

 $(000) f.o.b.gross tonnes
Algeria173,85266516
American Samoa26,43732629
Argentina3,644535
Australia3,100,7312098441
Austria14,436874
Bahamas1,273654
Bahrain11,5064002
Bangladesh3,9775017
Barbados11,7575214
Belgium166,57346096
Bermuda4,7711123
Brazil25,34217337
Brunei Darussalam1,005287
Canada239,12158586
Chile19,5886436
China (People's Republic of)186,139405158
Colombia2,8051021
Cook Islands31,67913904
Cuba69,01430729
Cyprus2,415547
Czechosovakia6,3831937
Denmark28,6845165
Destination unknown E.C.404,655217763
Dominican Republic7,1152706
Ecuador634845
Egypt14,8644621
El Salvador5,7712023
Fiji197,685172442
Finland8,4171233
France173,12031944
French Polynesia75,62141672
Germany377,41180162
Ghana1,05651
Greece64,43819314
Grenada1,618525
Guadeloupe5,7622140
Guam13,6356587
Guatemala3,3671218
Guyana1,128415
Haiti1,948558
Honduras2,234762
Hong Kong248,769123850
Hungary1,44282
India127,04169352
Indonesia166,984233385
Iran (Islamic Republic of)114,50155510
Iraq5,1191933
Ireland12,7252496
Israel2,205308
Italy257,06651013
Jamaica16,3007148
Japan2,607,4785392202
Jordan56,55122616
Kenya1,910450
Kiribati3,8331651
Korea (Republic of)719,4311789437
Kuwait3,4101317
Lebanon2,260895
Libyan Arab Republic10,4403495
Macau1,563136
Malawi2,2224398
Malaysia287,128213619
Malta5,7061759
Marshall Islands2,0851214
Martinique5,0472021
Mauritius27,18410294
Mexico130,20845889
Morocco5,3012148
Mozambique3,7537279
Nauru3,683380
Nepal40,6928635
Netherlands160,043189282
New Caledonia42,44828085
Nicaragua2,230876
Niue7,8262475
Norfolk Island6,6262695
Northern Mariana Islands1,090328
Norway5,585681
Oman18,7196322
Pakistan23,97010712
Panama8,9323358
Papua New Guinea77,18285877
Philippines116,26676381
Poland1,668487
Portugal37,1909597
Puerto Rico5,581386
Qatar3,5461247
Reunion3,8601164
Samoa50,83635427
Saudi Arabia181,644103599
Singapore255,191185326
Solomon Islands12,3269637
South Africa17,0295602
Soviet Union182,27579687
Spain70,57025369
Sri Lanka36,69517484
Sweden43,64525262
Switzerland57,8898132
Taiwan (Province of China)318,905317266
Thailand149,637127491
Tonga27,40712627
Trinidad and Tobago14,3364947
Tunisia1,043369
Turkey39,50228265
United Arab Emirates35,91013243
United Kingdom1,059,201337078
United States2,233,324758541
Vanuatu12,02210755
Venezuela86,92430212
Vietnam2,457467
Wallis and Futuna Islands2,9566617
Yemen19,7829104
Yugoslavia1,689471
Zimbabwe1,021837
Total, all countries†15,85293114036676

Table 20.5. OVERSEAS AND COASTWISE SHIPPING BY PORTS 1991*

All portsCoastwiseOverseas
No. of vesselsGross tonnageNo. of vesselsGross tonnage

*Year ended 30 June.

Arrivals (000) (000)
Whangarei19629071062777
Auckland/Onehunga7385537105911862
Tauranga45149665953454
Taharoa--12926
Gisborne3125914164
Port Taranaki46926651211766
Napier299409171939
Wanganui----
Wellington2457172553632497
Nelson5362010162849
Picton195411261217
Westport133580--
Greymouth----
Lyttelton29412877497768
Timaru310290733207
Otago26245811301257
Invercargill/Bluff1831020941585
Chatham Islands148--
        Total, all ports784459946436538069
Departures
Whangarei2172937952757
Auckland/Onehunga1104105296796812
Tauranga25028617985664
Taharoa--12926
Gisborne363101068
Port Taranaki47326661261778
Napier27739721251350
Wanganui----
Wellington2513189002981002
Nelson413839433046
Picton194811239318
Westport133580--
Greymouth----
Lyttelton36718066517073
Timaru269246771655
Otago16127042313121
Invercargill/Bluff15011241241887
Chatham Islands116--
        Total, all ports795062483416636158

Services to shipping

Ports

Port companies established under the Port Companies Act 1988 are now trading at all 13 of New Zealand's main ports. Ownership of the companies at present remains with local government, but some shareholding local authorities have initiated moves to sell their shares, in keeping with the Government's wish to see a wider spread of port company ownership. Ongoing restructuring and rationalisation carried out by stevedoring operators and port companies in the new industry environment, created by Government port reform, has brought productivity improvements and cost reductions additional to those made as an immediate result of the 1988-89 reform measures.

Registration of ships

As at 31 December 1990 there were 2464 ships on the New Zealand Shipping Register, with a total gross tonnage of 319228 tonnes and net register tonnage of 288610 tonnes. This compared with 2382 ships totalling 307257 gross tonnes and with a net tonnage of 162826 tonnes in December 1988.

New registrations during this period were the foreign-going cargo vessel, Pioneer Tween, the deep sea fishing vessel, Mary Ann, the coastal fishing vessel, Sea Hawke II, the dumb barge, Rahi Te Toa, and the river limits vessels, Jet Raider and Sea Flight.

Vessels removed from the New Zealand register during 1990 included the deep sea fishing vessels, San Rakino, and Albert Sanford, the coastal fishing vessel, Pacific Explorer, and the river limits vessel, Supercat II.

Table 20.6 describes registered vessels involved in trade.

Table 20.6. REGISTERED VESSELS INVOLVED IN DOMESTIC AND OVERSEAS TRADE*

YearNumber of vesselsNet registered tonnage†Number of crew

*Ships in overseas trade mainly engaged in trans. Tasman and Pacific Islands trading movements.

The shipping register is not metricated and 1 net register ton equals 100 cubic feet (or 2.83 cubic metres) of cargo capacity.

Source: Ministry of Transport.

Domestic
19871452369480
19881452918480
19891351444404
19901351444409
Overseas
19871296661344
19881095008296
1989984296274
1990862043185

Merchant navy qualifications.

The Maritime Transport Division of the Ministry of Transport is the licensing authority for merchant service personnel who, after training and examination at approved teaching institutions, are issued with certificates of competency as master, mate or engineer. There are different standards of certificates for foreign-going, coastal, 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. Certificates of competency are issued to skippers, mates and engineers of deep-sea, coastal, and inshore fishing boats. Voluntary examinations are held for pleasure boat mariners by the Royal New Zealand Coast Guard Federation, which is also responsible for issuing certificates of competency to yacht masters.

Ship survey and safety.

The Shipping and Seamen Act 1952 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.

Marine and Industrial Safety Inspection Services, which is a service delivery group within the Ministry of Transport, carries out surveys of ships as required by the Shipping and Seamen Act. Special surveys are also made for seaworthiness after damage, for efficiency of equipment and for tonnage measurement. In the 1990-91 financial year, 2002 certificates of survey were issued.

Marine safety 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 170 navigational aids. At September 1991, these aids consisted of 108 automatic lights, 51 day beacons, 5 navigational buoys, and 6 radio beacons. They are a responsibility of the Maritime Transport Division which is also responsible for the provision of the coastal distress and safety radio system. The total cost of these services is $2.2 million which is met by a marine safety charge collected from overseas and coastal ships and fishing boats. There are now no staffed lighthouses in New Zealand.

During 1991, the Maritime Transport Division called for tenders for the construction of a new coast radio station, the exclusive function of which will be the provision of distress and safety services to mariners. It is intended that the station will eventually be fitted with advanced technologies, such as Narrow Band Direct Printing and Digital Selective Calling, in order to become a station which is fully integrated into the Global Maritime Distress and Safety System (GMDSS).

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 20.7. SHIPPING CASUALTIES, 1990*

Ship typeMachinery breakdown and miscellaneousCapsizing and collisionStranding and groundingFounderingFireTotal

* Year ended 31 December.

Passenger--1--1
Cargo142119
Fishing3672-18
Dredges, tugs, etc.------
Pleasure9722872136
Total1013218103164

Fishing boat casualties during 1990 resulted in the loss of 3 vessels and 2 lives. From all shipping incidents five 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, in particular 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. The Act also provides for control of the dumping of waste at sea from ships, and prohibits the dumping of substances known to be harmful to the marine environment, but provides for the Ministry of Transport to issue permits for the dumping of other wastes, such as dredging spoil, under appropriate conditions and in approved sites.

As the 1954 Convention is concerned only with the prevention of oil pollution resulting from normal shipping operations, the Marine Pollution Act is being revised to give effect to MARPOL 73/78 (International Convention for the Prevention of Pollution from Ships 1973, as modified by its 1978 Protocol), which introduces measures to mitigate the effects of pollution resulting from tanker accidents and deals with pollution of the sea by substances other than oil.

Further changes to the Act are to be implemented to reinforce existing arrangements for contingency planning and the provision and stockpiling of equipment and dispersants to deal with major oil spillages in New Zealand waters.

20.2 Civil aviation

Control of civil aviation

The principle legislation affecting civil aviation in New Zealand is the Civil Aviation Act 1990, which is administered by the Air Transport Division of the Ministry of Transport.

The 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 monitors aviation operators by using safety audit systems to ensure standards are maintained.

The Aviation Security Service of the Air Transport Division 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.

International air services are operated in accordance with bilateral air transport agreements negotiated between governments. New Zealand is signatory to 21 bilateral agreements and in 1991 negotiated another which is yet to be formally signed. All airlines operating scheduled international services to and from New Zealand are required to hold an international air service licence issued by the Minister of Transport under the International Air Services Licensing Act 1947.

New Zealand is party to the amended Warsaw Convention of 1929, defining the financial liabilities of international air carriers towards their passengers. The Carriage by Air Act 1967, as amended in 1990, covers both international and domestic carriage by air.

New Zealand is also a signatory to the Hague Convention of 1970 relating to highjacking; the Tokyo Convention of 1963 concerning offences committed on board aircraft; and the Montreal Convention of 1971 relating to aerial sabotage. The Aviation Crimes Act 1972 gives effect to these conventions.

The Air Services Licensing Authority.

This body was abolished in September 1990. An air service licence is no longer required for any domestic air transport or aerial work conducted for hire or reward.

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 en route aircraft throughout the country are provided from Auckland and Christchurch.

New computerised air control radar screen at Christchurch airport

The Airways Corporation provides all air navigation faculties 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), secondary surveillance radar (SSR), 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 NOTAMS (Notices to Airmen), and regular circulars. It co-operates 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, and telecommunications. The corporation is implementing the Airways Modernization Project (AMP), a project which originated in the old Civil Aviation Division of the Ministry of Transport. Apart from replacement of existing primary radars, the project introduces SSR to New Zealand. This allows positive identification of aircraft fitted with transponder beacons, and the whole system integrates and automates this and other aircraft flight information to improve availability and reliability of services, and thus safety.

Domestic air services

Air New Zealand and Ansett New Zealand are the country's largest domestic air service operators. Air New Zealand was restructured as a state-owned enterprise and sold in 1989.

Table 20.8. SUMMARY OF DOMESTIC SCHEDULED AIR SERVICES

December yearSeat kilometres availablePassengers carriedPassenger-kilometresFreight carried (tonnes)Freight (tonne-kilometres)Mail (tonne-kilometres)

Source: Ministry of Transport.

 (000)(000)(000)(000)  
198624136123444165243365.1335771199
198725401933785172845658.431461877
198831658134174189978539.4264051292
198930877794467190843843.0279881721
199035992364502210188247.7284551562

Air New Zealand's domestic airline operation is known as Air New Zealand National. The company also acquired the remaining 20 percent of the Mount Cook Group. Mount Cook provides mainly tourist-oriented passenger services, while Safe Air, an Air New Zealand subsidiary, provides a freight service.

The regional airlines, Air Nelson and Eagle Airways, became associate companies in 1990 and known as Air New Zealand Link in 1991. These airlines have undertaken most of the provincial routes previously serviced by Friendship aircraft.

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 and Darwin.

Table 20.9. SUMMARY OF INTERNATIONAL SCHEDULED SERVICES BY AIRPORT

December years 1987198819891990

Note: This table excludes all transitting traffic.

Source: Ministry of Transport.

Traffic through Auckland Airport
PassengersIn1110000124083711834381113276
 Out1109339124811711956981125679
 Total2219339248895423791362238955
Freight (tonnes)In43849487795518350236
 Out47659510815749652772
 Total9150999860112680103008
Mail (tonnes)In2493263826292413
 Out1168112413891768
 Total3662376340184181
Traffic through Christchurch Airport
PassengersIn238392243549235078241035
 Out235583252862241158240275
 Total473975496411476236481310
Freight (tonnes)In7282758070056824
 Out876689821182510302
 Total16049165621883017127
Mail (tonnes)In366341282279
 Out85128194192
 Total451468476471
Traffic through Wellington Airport
PassengersIn112989124586114823107658
 Out112708126207116299107321
 Total225697250793231122214979
Freight (tonnes)In5329485549883965
 Out3069318837303474
 Total8398804287197439
Mail (tonnes)In200185199181
 Out7486124118
 Total273270323298

Table 20.1. INTERNATIONAL AIR SERVICES: VOLUMES

 Year ended
 1987198819891990

Note: This table excludes all transitting traffic.

Source: Ministry of Transport

Trans-Tasman Flight Stage
    Passengers1910212213269119197411807364
    Freight and mail (tonnes)76191823169245284190
    Kilometres flown (000)26182302563150634593
North American Flight Stage
    Passengers421167430234465135426241
    Freight and mail (tonnes)19229173391935117350
    Kilometres flown (000)15398164241828717616
South American Flight Stage
    Passengers217232428299688256
    Freight and mail (tonnes)19121413081
    Kilometres flown (000)1114106213331250
Asian Flight Stage
    Passengers238739329274426590470927
    Freight and mail (tonnes)11485139391873319780
    Kilometres flown (000)7823127391752121453
Pacific Island Flight Stage
    Passengers409782444202433965419044
    Freight and mail (tonnes)15057193442003517778
    Kilometres flown (000)8404866292478160

There are currently 25 international airlines operating out of New Zealand, providing links to the Pacific, Asia, the Americas and Europe. It is only in the past five years that 11 of these carriers have begun services to New Zealand, two of them in 1991.

Table 20.11. AIRLINE OPERATIONS—DATE OF COMMENCEMENT AND ROUTES OPERATED

DateAirlineRoutes now operated

* Code-shared services.

Source: Ministry of Transport.

10 Jul 1949Canadian Airlines InternationalToronto/Vancouver-Honolulu-Auckland*
  Toronto/Vancouver-Honolulu-Nadi-Auckland
01 Apr 1961QantasSydney/Melbourne/Brisbane/Perth/Adelaide/Hobart/Cairns-Auckland/Christchurch/Wellington
  Sydney-Auckland-Honolulu-Los Angeles
  Melbourne-Auckland-Papeete-Los Angeles
  Auckland-Norfolk Island
04 Apr 1963British AirwaysLondon-Bangkok-Kuala Lumpur-Melbourne-Auckland
  London-Singapore-Perth-Auckland
02 Dec 1965UTANoumea-Auckland-Papeete
01 Oct 1974Air PacificNadi-Auckland
31 May 1976Singapore AirlinesSingapore-Auckland
  Singapore-Sydney/Melbourne-Auckland (Freight)
25 Feb 1978Polynesian AirlinesApia-Tonga-Auckland
  Apia-Tonga-Auckland-Sydney
01 May 1979Continental AirlinesLos Angeles-Honolulu-Auckland-Sydney/Melbourne/Brisbane
01 Dec 1979Air NauruNauru-Auckland
01 Jul 1980Japan AirlinesTokyo-Auckland
  Tokyo-Christchurch-Auckland
  Nagoya-Auckland
03 Dec 1985Cathay PacificHong Kong-Auckland
20 Dec 1985Aerolineas ArgentinasBuenos Aires-Auckland-Sydney
11 Feb 1986United AirlinesSan Francisco-Honolulu-Auckland-Sydney/Brisbane
08 Nov 1987Air CaledonieNoumea-Auckland
05 Dec 1987Thai AirwaysBangkok-Auckland
04 Nov 1988Garuda IndonesiaJakarta-Denpasar Bali-Auckland
01 Nov 1989Air VanuatuPort Vila-Auckland
05 Dec 1989Malaysia AirlinesKuala Lumpur-Brisbane-Auckland
21 Feb 1990American AirlinesHonolulu-Auckland*
13 Jun 1990Solomon AirlinesHoniara-Port Vila-Auckland
  Honiara-Port Vila-Nadi-Auckand
16 Jul 1990Niue AirlinesNiue-Auckland
01 May 1991Southern World AirlinesLos Angeles-Honolulu-Auckland-Melbourne
01 Jul 1991Royal Tongan AirlinesTonga-Auckland

The greatest number of visitors to New Zealand are Australians, followed by Americans and Japanese. Trans-Tasman travel accounts for the largest volume of passengers travelling to and from New Zealand. There are seven scheduled passenger carriers on the Tasman route (Air New Zealand, Qantas, British Airways, Malaysian Airlines, Continental Airlines, United Airlines and Polynesian Airlines).

Code-shared services.

Code-shared services utilise only one airline's aircraft but carry more than one airline's designator. Air New Zealand code-shares with Canadian Airlines, American Airlines and Qantas Airways.

AIR TRAVEL
Passengers carried on scheduled international and domestic flights

Table 20.12. SUMMARY OF SCHEDULED INTERNATIONAL AIR SERVICES

December yearPassengers carriedFreight carriedMail carried

Source: Ministry of Transport.

 (000)tonnestonnes
19862457968704153
198730011177694385
198833611286334549
198932631461234936
199031291340745082

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-Melbourne, 2413 km; Christchurch-Brisbane, 2495 km; and Christchurch-Hobart, 2024 km.

Table 20.13. DISTANCES FROM AUCKLAND AIRPORT TO SELECTED OVERSEAS DESTINATIONS*

DestinationDistanceDestinationDistance

* These are airport-to-airport great circle distances.

Source: Ministry of Transport.

 km km
Adelaide3247Papeete4093
Apia2893Perth5400
Brisbane2293Port Moresby4126
Hong Kong9145Rarotonga3013
Honolulu7086San Francisco10503
Los Angeles10480Singapore8410
Melbourne2635Suva2141
Nadi2156Sydney2158
Norfolk Island1091Tokyo8837
Noumea1859Tonga2004
Pago Pago2902Townsville3359

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.

New Zealand's first international all-freight carrier, Southern World Airlines, began scheduled services to Australia and the United States in 1991. Four freight carriers operate out of New Zealand (Singapore Airlines, Southern World Airlines, Pel-Air and National Airlines).

Table 20.14. OVERSEAS AIR CARGO TRANSPORTED BY TYPE, 1991*

CommodityLoadedUnloaded
Gross tonnesf.o.b. $(000)Gross tonnesc.i.f. $(000)

* Year ended 30 June.

† Not elsewhere specified.

Food and live animals46249410,393741342,598
Beverages and tobacco1386842772,795
Crude materials2294107,02628414,257
Mineral fuels1811560424
Animal and vegetable oils, fats2416570621
Chemicals and related products n.e.s.†2666763936399419301
Manufactured goods8490195,5049533310,798
Machinery and transport5500780,363163591,718,954
Miscellaneous manufactured articles6070369,69614766921,641
Commodities n.e.s.†77357424,088
        Total714572,013,913551643,435,476

Table 20.15. OVERSEAS AIR CARGO BY COUNTRY, 1991*

Destination/sourceLoadedUnloaded
Gross tonnesf.o.b. $(000)Gross tonnesc.i.f. $(000)

* Year ended 30 June.

† Includes other countries.

Argentina342,482491,019
Australia34806964,160337841,377,626
Austria593,148918,969
Belgium7219,60615213,494
Canada135028,66330446,124
China (People's Republic of)10899361,788
Cook Islands5947,5969474,586
Denmark353,95116520,829
Fiji99731,408131030,479
Finland371,4758012,695
France16413,10384373,927
French Polynesia250117,72028258
Germany (Federal Republic of)99730,6781266107,456
Guam291,25638
Hong Kong161650,66168945,915
India372,48921811,945
Indonesia1544,834591,973
Ireland752,66610222,287
Israel4561185,043
Italy17824,25067785,114
Japan12254156,3711575157,508
Korea (Republic of)32031,66422014,807
Malaysia2807,936883,551
Nauru471,4622399
Nepal31,282491
Netherlands18611,60450143,701
New Caledonia7906,0138251
Niue171,51410
Norfolk Island761,252-632
Norway101,272715,278
Pakistan8313412,059
Papua New Guinea744,509154,932
Philippines962,030443,057
Portugal810959451
Puerto Rico123915101881
Samoa1174,43349406
Saudi Arabia63138340
Singapore150564,21681572,706
Solomon Island581,706139
South Africa613570261106
Spain252,410647,088
Sweden756,27931051,506
Switzerland97628,52066788,951
Taiwan39811,36081949,714
Thailand1734,8891355,076
Tonga602,00710626
U.S.S.R652,3016144
United Kingdom93787,1332570282,546
United States7918329,7135402696,716
Vanuatu741,793179
Total714232,002,230543843,373,343

Aerial work

Aerial topdressing is a means of improving hill pastures and checking and preventing soil erosion. During recent years the extent of both aerial topdressing and spraying has varied according to demand by farmers, largely as a result of varying farm incomes.

Table 20.16. SUMMARY OF AERIAL WORK

December years19861987198819891990

* Includes pellets, prills and dusts.

Source: Ministry of Transport.

Solids
    Number of flights321077502262390655493785522728
    Hours flown2288633605278533712036829
Tonnes dropped:
        Fertiliser257350393284311241422978396796
        Lime4743956322374854557253068
        Seed20793228882605713
        Poison baits338533843911503711192
        Other*9071945611771469
        Total311160458162354130474963462237
    Hectares treated15415442391931226031225884602926835
Liquids
    Number of flights7161977365573226653760403
    Hours flown1102811414102121146611843
Litres dropped:
        Fertiliser12701191737244177795935210363927141
        Insecticides89560485898986162111180911133335
        Fungicides48687064370929417730044783713081663
        Weedkillers2194285218792264163039931707150917219098
        Other125416145635224493241464505376
        Total2910269725905061233453652643047125866613
    Hectares treated528539690471712293892592976596
Supply dropping
    Number of flights32811102381057444322885
    Hours flown394228751956898797
    Tonnes distributed106024496421418171060
Fencing materials
    Number of flights129633096282018102539
    Hours flown797489405213224
    Tonnes distributed21699581085650814
Venison recovery
    Number of flights345914723587750652
    Hours flown307819361553845808
    Tonnes distributed20141761317240271
Photography and survey
    Number of flights664210020670735243785
    Hours flown69206477656450638654
All other work
    Number of flights3301828655329033481632268
    Hours flown1044495571192695409012
Total, all aerial work
    Number of flights481589633108504568605654625260
    Hours flown5909666353604696514568167
Total, non-productive hours951491401178286748578

20.3 Railways

A railway network extending over nearly 4000 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 New Zealand Rail Limited and a rail and road vehicle and passenger ferry service across Cook Strait (Wellington-Picton).

New Zealand Rail Limited

Due to the corporatisation of New Zealand Railways in 1982 and the deregulation of the transport industry over the last decade, restructuring has been a common feature of the railways in recent times. The final step in this process took place on 11 October 1990, when the Government established New Zealand Rail Limited.

New Zealand Rail is a state-owned enterprise which operates the core rail freight, rail passenger and interisland services, previously owned by the Railways Corporation of New Zealand. The two companies are separate legal entities. The Railways Corporation, since the sale of its rail operations, is solely involved with the disposal of its remaining assets, mainly land; its relationship to New Zealand Rail is that of landlord. New Zealand Rail currently holds a licence to occupy land owned by the Railways Corporation and is working towards the long-term leasing of essential operating railway land. The rationalisation of railyards by New Zealand Rail is allowing the release of increasing areas of land, which will be offered for public sale by the Railways Corporation.

The basic structure of New Zealand Rail is: three business groups (Railfreight, Rail Passenger and the Interisland Line), three support groups (Railnet, Railfleet and Rail technology) and the Corporate Office.

Railfreight carried around 5.5 million tonnes of freight during the eight month period to the end of June 1991, over an average distance of 290 kilometres and achieved some 1.6 billion net tonne kilometres.

Rail Passenger's Cityrail service for commuters provided around seven million passenger trips during the initial eight months of operation. Long-distance passengers numbered approximately 215000. A new commuter service was launched during the eight month period, the Capital Connection, which operates between Palmerston North and Wellington. The InterCity road coach service was sold in 1991.

The Interisland Line carried around 49000 rail wagons, 16000 trucks, 131000 cars and over 655000 passengers from October 1990 to the end of June 1991. Cook Strait crossings of the three roll-on/roll-off ferries totalled 2433. Major refurbishment of, and improvements aboard, the three ferries were important factors in the Interislanders' success. Planning is already underway for the eventual replacement of the current vessels, including ideas for a high-speed ferry option.

Railfleet is New Zealand Rail's network for the maintenance of rail track, signalling and other related services. There were 56 kilometres of track renewed and 70,000 new rail sleepers laid.

Railfleet provides maintenance and administration for the company's locomotives and rolling stock. The fleet includes 27 electric locomotives, 179 diesel electric locomotives, 149 urban electric units, 5744 bogie wagons and 4753 ‘4 wheel’ wagons. Workshop activities are undertaken at Otahuhu, Woburn and Hillside, while daily servicing is carried out at 27 depots throughout the country. Railfleet has recently designed and constructed a series of new wagons and a new range of containers.

Railtechnology manages the company's communications system and computer equipment.

Corporate Office oversees the entire operation through units focussing on customers, marketing, operations and support services.

New Zealand Rail is involved in partnership with Coal Transport Limited, Refrigerated Transport Limited, Freightways Express New Zealand Limited and Chep Handling Systems Limited.

Table 20.17. NEW ZEALAND RAIL—SUMMARY OF OPERATIONS

CategoryAs at 31 March
Unit1982198719891990

*Reduction in rolling stock due to modernisation and the abolition of provincial railcar services.

Source: New Zealand Rail Limited.

Route—
    North Islandkm2555255525552578
    (electrified)km85139510510
    South Islandkm1863171117111491
    (electrified)km14141414
Bridgesno. 230323032188
 km 68.7168.7164.63
Tunnelsno.172165165153
 km92.6391.5391.5389.69
Locomotives—
    diesel/diesel-electricno.508416270259
    electricno.1152827
    steamno.2220
Rolling stock*—
    freightno.26899183051239610067
    passenger (incl. motorised)no.442171212256
Passengers carried—
    long distanceno.899555845202  
    suburbanno.1344035214203287  
Total freight carriedtonnes115204019003516  

Railway construction and engineering

The most significant recent development in railway construction was the 1988 electrification of the central section of the North Island main trunk line from Palmerston North to Hamilton.

Reconstruction and upgrading continues on track throughout the country, shortening distances, easing gradients, aligning track and eliminating joints. All this work enables the use of heavier axle loads, improves clearances and increases train speeds.

Bridges.

To carry the railways across the many gorges, rivers, and streams in New Zealand, about 2188 bridges and viaducts have been built with an aggregate length of 64.63 kilometres.

The longest railway bridge is that over the Rakaia River, in Canterbury, spanning 1743 metres. The highest viaduct is the Mohaka, standing 97 metres above the Mohaka River on the Napier-Gisborne line. Twenty-one New Zealand railway viaducts carry the rails more than 33 metres above the rivers and streams they cross.

Tunnels.

There are 153 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 Rail Limited runs six passenger services.

The Overlander daylight express 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 Overlander. The Southerner runs six days a week between Christchurch and Invercargill.

Investigating Wellington Railways' Cat track realigner.

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.

Cook Strait rail/ferry service

Two ferries carrying road and rail vehicles and passengers are operated by New Zealand Rail 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 94500 kilometres of formed roads and streets, and over 1.9 million motor vehicles. The most recent employment statistics available on the transport industry, the Department of Statistics' Annual Business Directory update of February 1991, recorded 9566 persons engaged in the provision of road passenger transport, and 17854 persons engaged 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, rental and vehicle recovery services. A quantitative licensing system for road transport operators was replaced with a qualitative system. (Qualitative licensing means that based on minimum standards of service rather than the number of vehicles to be licensed.) 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

Under the Transit New Zealand Act 1989, Transit New Zealand has the responsibility for developing a national land transport programme (see description below).

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).

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.

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.

Transit New Zealand works in close partnership with 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 between seven and 10 members, appointed by the Governor-General on the recommendation of the Ministers of Transport and 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.

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.

  • 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 11495 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 14796 kilometres of urban roads and 66671 kilometres of rural roads, making a total of 92962 kilometres of developed roading, which includes 15612 bridges.

The operation and management of the strategic roading network is, in most cases, affected by the laws embodied in the Transit New Zealand Act 1989. 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 20.18. FORMED ROADS AND STREETS AT 30 JUNE 1991

Nature of surfaceLocal authority roadingState highways and motorwaysTotal
Urban areasRural areas

Source Transit New Zealand.

  kilometres 
Paved or sealed14374.128242.311075.153691.5
Metal or gravel421.738428.8419.792961.7
        Total maintained roads14795.866671.111494.8146653.2

Roading taxation is described in section 25.2, Taxation.

Table 20.19. EXPENDITURE ON STATE HIGHWAYS

Class of expenditure1988198919908*1991

*Fifteen month financial year to 30 June 1990. cost of flood damage repairs when applicable.

†Excludes motorway structures.

‡Maintenance figures include the Source: Transit New Zealand.

  $(000) 
Construction and improvement51,90959,785142,03959,948
Bridges and other structures† 11,15120,7767,931
Maintenance, repairs, etc.‡147,480197,856238,567228,888
Total199,389268,792401,382296,767

Table 20.2. PUBLIC ROADING EXPENDITURE

Item198819891990*1991

*Fifteen month financial year to 30 June 1990.

Source: Transit New Zealand

  $(000) 
State highways expenditure199,389268,792401,382296,767
Special purpose roads1,9173,0562,3041,693
Local authority roading expenditure—
    From local authority funds--215,105272,734
    From National Roads Fund206,165242,190292,142205,359
From Consolidated Account (developmental roading)----
        Total622,576786,772695,828503,819

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. The country's more than 2.3 million vehicles are relicensed progressively throughout the year.

The annual relicensing charges are, at December 1991: ordinary motorcars, $206.13, motorcars subject to transport licence fee, $216.13; motorcycles, $74.50 (60cc or less) or $184.75; rental cars, $299.63; trucks, vans and utilities from $206.13 to $389.13; and tractors, $95.88. All figures include goods and services tax.

The various types of motor vehicles registered and licensed are itemised in the tables following.

ROADING
Total length by type of road surface

Table 20.21. LICENSED MOTOR VEHICLES

Type of vehicleAt 31 March
19901991

*Split into discrete classes in 1991. vehicles.

Recent changes in licensing rules have led to an increase in the number of exempt Source New Zealand Post.

Cars14893381539809
Rental cars81358283
Goods service vehicles*295322-
Goods service cars-2377
Light trucks, vans, utes-234652
Heavy trucks-64149
Taxis28753250
Buses and service coaches75068365
Trailers369089369301
Motorcycles8111373546
Mopeds12131207
Trade plates D50074899
Trade plates C611595
Miscellaneous3127217302
Exempt vehicles†771121534
Total, all vehicles22991922349269

Table 20.22. REGISTRATIONS OF NEW VEHICLES

December yearNew cars and stationwagons—c.c ratingCars previously registered overseas*New motor cycles
850 and under851 to 13001301 to 16001601 to 20002001 to 50005001 and overTotal

*Included in total

Source: New Zealand Post.

19868471790718232302181239841980021394613372
198774618566205102916019717929896281212912609
19886901779627310283061408440388589173728968
198988021496440665000018137309134828509665796
199068319751564388418118391302159746853244897

Table 20.23. REGISTRATIONS OF NEW COMMERCIAL VEHICLES

December yearNew commercial vehicles by grass weight in kilogramsTotal commercial vehicles
2500 or less2501 to 45004501 to 90009001 to 1450014501 and overOmnibus and service coaches

Source: New Zealand Post.

19861181833361227105894020418583
198798193005119788493128316119
198810887292087170283244016652
198916173396891859286176323275
1990183058299918503103738329445

Not included in the above tables are new tractors, of which there were 711 in 1988, 907 in 1989 and 863 in 1990.

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 20.24. 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.

19862.21.619892.31.8
1987  19902.31.5
19882.41.619912.31.4

Motor Vehicle Securities Register

A motor vehicle securities register is administered by the Department of Justice under the Motor Vehicle Securities Act 1990.

The register was established to help buyers avoid the situation of their vehicles being repossessed because money is still owed on them. It also provides protection for the party having an interest over the vehicle. The ‘Autocheck’ service opened to the public on 1 April 1990. As at September 1991 there were 285000 current security interests registered over vehicles. The Autocheck means that a consumer considering buying a vehicle can phone the register toll free to check if any security interest is registered against the vehicle. The number is 0800658934.

The register includes vehicles such as private and commercial motor vehicles, motorcycles, trucks, trailers, caravans and farm vehicles. It does not cover boats, trains or aircraft.

The Autocheck service is not connected with the change of ownership or registration of vehicles. This is handled by New Zealand Post.

MOTOR VEHICLES
Number licensed

Transport to work

Table 20.25 shows the main means of transport to work used by those employed in the full-time 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 20.25. TRANSPORT TO WORK, 1986 CENSUS

Means of transportEmployed in full-time labour force*Males as percentage of total
MalesFemales
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 bus437885.25289012.245.3
Train128791.582951.960.8
Drive private vehicle35686242.721098448.662.8
Drive company vehicle13699216.4129573.091.4
Passenger in car, truck or company bus527976.34481710.354.1
Bicycle479495.7178564.172.9
Motorcycle, powercycle422345.168881.686.0
Walk†711788.54610110.660.7
Other79861.020460.579.6
Work at home633787.6314107.266.9
Not specified5292 2625 66.8
        Total841338100.0436869100.065.8

Motorway traffic, Wellington.

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 do form, however, a uniformed and disciplined enforcement body, and maintain a close liaison with the police.

Effective from 1 July 1992 the Traffic Safety Service (both enforcement and support services) of the Land Transport Division of the Ministry of Transport will merge with the New Zealand Police. The combined service will be able to concentrate enforcement resources, targeting serious traffic offences and related crime in a concerted bid to reduce the road toll. The merger effectively abates the current duplication of resources by the two organisations, which had several overlapping functions and responsibilities.

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.

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 has three stages: learner stage; restricted stage and full licence.

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.

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 cars must have seat-belts fitted in the rear passenger seats and it is compulsory for rear-seat passengers to wear seat-belts where fitted.

The law also requires that children under eight years use a child restraint; and if one is not available, a seat-belt; and if neither of these options are available the 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 offence 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.

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 7.5, Accidents and section 21.3, Insurance and superannuation.

Road safety education.

Details on road safety campaigns are given in section 7.5, 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.

TRAFFIC CONVICTIONS
Rate per 10000 population

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.

DRINK-DRIVING
Convictions per 10000 population

Table 20.26. TRAFFIC OFFENCES REPORTED*

Type of offence198819891990

*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 drugs235213362
    Breath/blood alcohol offences644846146074
    Evidential/excess alcohol87611127616047
    Failure to fulfil duties after an accident139113181898
    Reckless driving172177226
    Driving in a dangerous manner10989941317
    Driving at a dangerous speed550369397
    Driving without reasonable consideration226167159
    Careless use of a motor vehicle140971346917117
    Overtaking offences632487566
    Failure to keep to the left329925672327
    Failure to yield right of way197217332499
    Failure to stop in half clear road277026833698
    Exceeding 50 km/h†805056778948916
    Exceeding 70 km/h†432736871975
    Exceeding 80 km/h†17812281
    Exceeding 100 km/h†35043290842479
    Exceeding temporary speed limits496776214
    Exceeding by-law speed limits1232974
    Failure to stop at traffic lights457646396874
    Failure to stop at compulsory stop sign553861323799
    Failure to give way at give way sign126011011399
    Failure to yield right of way at pedestrian crossing474370514
    Failure to stop or give way for siren171266
    Failure to comply with road signs310720831780
    Failure to wear safety helmet21601357756
    Provisional motor cyclist exceeding 50 km/h1121
    Exceeding 70 km/h with trailer35-
    Exceeding 70 km/h with heavy motor vehicle312
    Exceeding 80 km/h with trailer204719921286
    Exceeding 90 km/h with trailer364927
    Exceeding 90 km/h with heavy motor vehicle while towing553726
    Exceeding 90 km/h with heavy motor vehicle11393-
    Exceeding other limits34765
    Defective brakes903753
    Lighting offences338411461828
    Failure to dip lights573058
    Mechanically defective or unsafe vehicle351628272211
    Trailer offences298363382
    Subtotal189569163849127429
Non accident-promoting offences—
    Failure to obey officer500758316745
    Owner failing to supply information137172468
    Failure to pay overloading infringement fee13241
    Failure to pay fees-2-
    Warrant of fitness offences357092756921276
    Certificate of fitness offences162114011411
    Certificate of loading offences305155207
    Exceeding certificate of loading129120203
    Cng and lpg offences492826
    No distance licence carried139912341018
    Hubodometer offences318927572363
    Driving without a time licence728390
    Exceeding maximum gross weight or distance or time247718342651
    Road user licence altered, defaced or not displayed1132391400
    Driver's licence offences242432574223138
    Driving whilst disqualified414150797301
    Probationary drivers' offences14640077432
    Vehicle licences and registration offences247661867615930
    Safety-belt offences122251572912039
    Noisy motor vehicles302248189
    Emitting excessive smoke648265
    Loading offences165114041319
    Other nuisances185113130
    Cycling offences208013001791
    Pedestrian offences12212860
    Passenger offences156766
    Bylaw offences (other than speed limit)734639
    Unlicensed goods service806820
    Breach of goods service licence793
    Exceeding rail restriction limit---
    Rental vehicle offences29213
    Taxi offences9213310
    No vehicle authority or not carried1131134
    Other transport service licence offences21913128
        Subtotal122052114617106376
Other notices issued—
    Parking infringements and offences274322065011017
            Total, all offences and infringements339053299116244822

20.5 Post and telecommunications

The Ministry of Commerce is responsible for non-commercial and regulatory functions relating to communications, including international obligations. This encompasses 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.

New Zealand Post

New Zealand Post Limited's 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 requires 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. Under the Postal Services Act 1987, as amended by the Postal Services Amendment Act 1990, New Zealand Post's monopoly on basic letter services is gradually reduced. In December 1991 this monopoly covered letters under 200 grams where a charge of less than $0.80 is made.

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 80 percent are operated on agency basis or on commission. The New Zealand Post network now consists of:

  • Official post shops (formerly post offices).

  • 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 20.27. TOTAL NEW ZEALAND POST OUTLETS

As at 1 November 1991Number

Source: New Zealand Post.

Post shops288
Post agencies88
Post delivery centres513
Stamp retailers795
        Total1684

Besides the provision of letter and parcel delivery and retain transaction services, the company also issues postage stamps, operates a philatelic business and has strategic investments in mail related businesses. New Zealand Post has assets of $400 million, and employs approximately 8000 staff in its 288 Post Shops, 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 next day delivery between major towns and cities, with Post providing next day delivery across town, and two to three working days across New Zealand. Other services include EasiPost, a prepaid priority service for documents up to 1 kg; Assured services such as Registration and Insurance; and, the CourierPost service which from 1991 became available to the public through Post Shops.

Within its two-stream postal system, New Zealand Post gives discounts for bulk mailing, and handles unaddressed mail (circulars) and direct mail.

Table 20.28. POSTAL DELIVERIES AND VOLUME OF ARTICLES POSTED

 Year ended 31 March
 19901991

Source: New Zealand Post.

Deliveries to—number
    Households10061441002465
Businesses—
        by delivery5347351046
        by business and individual box and bag135954148057

Postal volumes.

For the year ending 31 March 1991, New Zealand Post carried 629736000 Post medium letters (1990: 598500000) and 16976000 Fast Post medium letters (1990: 17900000).

Overseas mail services.

Surface, surface air lifted, and airmail services are operated from New Zealand. Courier Post International offers a guaranteed, top priority delivery of letters and documents and parcels to 100 countries.

Other special services include international reply coupons, printpost direct bags, literature for the blind, and advice of delivery.

Stamp issues.

New Zealand Post produced 17 stamp issues during the 1991 calendar year. A variety of philatelic products are sold by mail order through the central Philatelic Bureau at Wanganui, at philatelic sales centres and through post shops.

Table 20.29. NEW STAMPS RELEASED DURING 1991

DateIssueDenominations

Source: New Zealand Post.

23 JanuaryNew Zealand Sheep40c, 60c, 80c, $1.00, $1.50, $1.80
6 MarchChatham Islands Bicentenary40c, 80c
6 MarchCentenary of the New Zealand Football Association80c, (X2)
17 AprilWorldwide Fund for Nature—Tuatara40c, (X4)
17 AprilKiwi Round Stamp$1.00
17 AprilSelf Adhesive40c
15 MayPersonal Message—Happy Birthday40c (X5)
 —Thinking of You40c (X5)
12 JuneNatural Wonders of New Zealand—Scenic40c, 50c, 80c, $1.00, $1.50, $1.80
1 JulyNew Zealand Birds—Definitives5c, 45c
1 JulySelf Adhesive45c
1 JulyPersonal Message—Happy Birthday45c (X5)
 —Thinking of You45c (X5)
24 JulyHector's Dolphin—Health45c + 5c, 80c + 5c
21 AugustRugby World Cup80c $1.00, $1.50, $1.80
18 SeptemberChristmas45c (X4), 65c $1.00, $1.50
6 NovemberButterflies of New Zealand—Definitives$1.00, $2.00, $3.00

Post shops.

About 220 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 services a variety of government and business organisations. This includes the collection of the public broadcasting fees, banking transactions for PostBank, receipt of telephone account payments, maintenance of the electoral rolls, motor registration, collection of road-user charges, and local authority and public utility account payments.

Recent performance.

Four years after corporatisation New Zealand Post has turned the loss-making Postal Division of the former New Zealand Post Office into a profitable business, paying $94 million in taxation and returning dividends of $84 million to its shareholder—the Government. A turnover of $500 million was recorded for the 1990-91 financial year.

The company's five year modernisation is near completion and during the 1990-1991 financial year new mail processing centres were opened at Wellington and Auckland Central, and a parcels centre at Greenlane, Auckland. New Zealand Post also established a joint venture airline company, AirPost Limited, which transports mail overnight, and has extended its own linehaul truck fleet.

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 Limited. A programme of deregulation which began in 1987 has seen Telecom open to competition in all telecommunications services.

Cardphone.

In September 1990 Telecom was purchased by a consortium of two United States-based Regional Bell Operating Companies, Bell Atlantic and Ameritech, and two New Zealand companies, Freightways Holdings Limited and Fay Richwhite Holding Limited. The New Zealand Government set certain conditions for the sale of Telecom Corporation of New Zealand. These conditions are:

  • A ceiling of 49.9 percent on the shareholding of any foreign strategic buyer.

  • A requirement that at least $500 million worth of shares must be made available by public offering on the New Zealand market.

  • The Government would retain a Kiwi share with special voting rights to control the maximum shareholding of any single foreign party and transfers of blocks of shares among parties; and to ensure that Telecom's commitments for residential services remain in place.

Telecom has provided the Government with three pledges in respect to its residential services, and the Government has included these pledges in Telecom's articles of association. These pledges provide the following commitments:

  • Local free calling will remain available to all residential customers.

  • The Standard Residential Rental for a telephone line will not rise faster than movements in the Consumer Price Index, unless the profits of Telecom's Regional Operating Companies are unreasonably affected.

  • Telephone line rentals for residential customers in rural areas will not be higher than in the cities, and the residential service will remain as widely available as it is at present.

Ameritech and Bell Atlantic sold approximately 31 percent of their holdings in early 1991 to the public, both in New Zealand and overseas.

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 75 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 25 percent of revenue, but 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 telephone network 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 has been introduced in cities and has been progressively introduced in other areas, in conjunction with rental reductions for business customers.

Telecommunications services by cable, satellite, and radio are available to almost all countries of the world. Previously Telecom had a monopoly for the provision of international services, but now competition is emerging in this area. AUSSAT Pty Limited, the Australian satellite operator, has commenced providing international services and Clear Communications Limited, the main competitor to Telecom in New Zealand, is now also providing international services.

Laying fibre optic cable.

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) is planned for 1992. The network will allow simultaneous transmission of voice, data, and video services over the same circuit. 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 (ISDN) which will enable simultaneous transmission of voice, data and video services over the same service, is planned for the 1990s.

CLEAR Communications Limited

In response to the deregulation of the New Zealand telecommunications industry, CLEAR Communications Limited was launched in November 1990. The company is owned by two New Zealand shareholders (the Todd Corporation and Television New Zealand) with two major international telecommunications companies (MCI Communications from the United States and Bell Canada Enterprises). The total shareholder capital investment by all partners is in excess of $100 million.

CLEAR was established to provide a full range of competitive toll, private line and specialist local network services. In an agreement reached with the Telecom Corporation of New Zealand Limited, CLEAR connects its inter-city network to the Telecom local networks for the operation of these services. Private line operations commenced in December 1990, and toll services in May 1991. CLEAR had over 30,000 toll customers within the first six months of operation. By the end of February 1992 it had gained 9 percent of the toll market.

Subscribers can make both national and international toll calls through existing telephone equipment by dialling 050, followed by the desired area code and local number. No new numbers, special equipment or connections are required. CLEAR toll services are available to over 80 percent of New Zealand, with expansion planned for 1992.

CLEAR Communications has one of the world's most modern telecommunications networks, consisting of fibre optic cables, digital microwave radio facilities and a satellite earth station.

Among the other services offered by CLEAR Communications are:

  • CLEARLINE, which provides customers with higher toll volumes or specialised communication needs with a range of digital leased line (point to point) services;

  • CLEAR Gateway, which allows large or multi-location businesses to operate as if all their phones are in the same building; and

  • a direct access option which links a customer's premises to the CLEAR network is available for those customers with more specialised communications needs.

TELEPHONES
Per 100 population

Radio-based services.

In July 1990 the Government tendered 20 year rights to six blocks of radio spectrum, in the 800-900 MHz range, suitable for three cellular telephone services. These blocks were won by BellSouth, Telecom Corporation, and Telecom Mobile Radio Limited, although the latter two purchases are currently the subject of legal proceedings. In June 1990 the Government also tendered rights to 12 blocks of radio spectrum in the 2.3-2.396 GHz range, suitable for point to point fixed link, pay television, or video conferencing services. Of the 12 blocks tendered, Telecom Corporation of New Zealand Limited won eight, MultiBand Television Limited won two and Broadcast Communications Limited and Sky Network Television Limited won a single block each.

Table 20.3. TELEPHONE SERVICES

ItemAs at 31 March
1988198919901991

Source: Telecom Corporation of New Zealand.

Telephones (000)
    Subscribers1370140614441481
    Applicants awaiting service1111
            Total demand1371140714451482
    Main line telephones (per 1000 population)410440485495
Exchanges (number)
    Automatic816816836836
    Manual575-
    Percentage of subscribers served by automatic exchanges99.799.9100100
Toll service
    Inland toll calls (million)201.0224.6275.5314.4
    Percentage increase in toll traffic14.411.722.714.1
    Percentages of subscribers with STD facilities98.699.499.9100.0
    Outward international toll calls (000)15600202302579029110

TOLL CALLS
Number per capita

Telegrams.

The inland and international telegram service is operated by The Telegram Company, a division of Netway Communications Limited. Competition in telegram services was established in 1990 with the creation of Synet Communication Limited (a direct subsidiary of NZ Post).

Telex service.

The telex service is a subscriber-to-subscriber teleprinter communication service, operated through a worldwide network of automatic telex exchanges. Both an automatic inland and international service operate in New Zealand. Demand for telex service is decreasing, with telex traffic falling from more than 10 million minutes in 1989 to 3.9 million minutes in 1990. 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. 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.

Datex is a text and data communication service whereby subscribers can use their word processors or computers to communicate with other datex subscribers, or to telex subscribers.

A leased data-circuit service provides direct connection of subscribers' data terminal equipment by means of leased data-circuits.

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.

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 sea 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.

Satellite services are provided to New Zealand by INTELSAT, INMARSAT and AUSSAT. These facilities are used by the telecommunications service providers for telephone connections and also by New Zealand television companies for both ‘live’ and delayed television relays. Major earth stations are located at Warkworth, near Auckland, and at Wellington and Christchurch. AUSSAT also operators an earth station in central Auckland.

Submarine cables are also used to connect New Zealand with the rest of the world. These are the TASMAN cable to Australia and the ANZCAN cable which connects to North America. In future, New Zealand will be fully connected to an international network of fibre optic cables when the TASMAN 2 cable to Australia is available for use in 1992 and the PacRim East cable to Hawaii is commissioned in 1993.

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 Limited; Telecom Corporation of New Zealand Limited; CLEAR Communications Limited.

Further information

Transport—general

Annual Enterprise Survey. Department of Statistics.

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. 2B).

Report of the Ministry of Transport (Parl. paper F. 5).

Report of the Urban Transport Council (Parl. paper F.9) until 1989.

Shipping

Shipping and Cargo Movements. Department of Statistics (annual).

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 New Zealand Police (Parl. paper G. 6).

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

Stock exchange chalkboard, Christchurch.

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. Both the Labour Government of 1986-1990 and the present National Government have followed a programme of industry assistance reform (notably a significant across the board tariff reduction programme), a continued move away from import licensing (which will disappear completely on 1 July 1992, 54 years after it first came into force), 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.

These policy changes have made it necessary to review the legal environment in which business is conducted.

Like virtually every developed market economy New Zealand has a law which is aimed at protecting the competitive process. The Commerce Act 1986 is a key piece of legislation in a less regulated business environment. In general terms, the Act rests on the premise that the existence of open and competitive markets will ensure the efficient allocation of economic resources. It includes prohibitions on anticompetitive collusive and unilateral behaviour, and upon mergers that create or strengthen a dominant position in a market. The act also constitutes the Commerce Commission as a public enforcement agency and provides scope for private remedies.

A comprehensive review of New Zealand's company and securities law is in progress, to ensure that it achieves the best balance between providing flexibility and encouragement for business and investment on one hand, and safeguards for the interests of shareholders and creditors, on the other. This should ensure that New Zealand's capital markets are internationally competitive. Areas of law covered include companies legislation (Companies Act 1955), securities legislation (Securities Act 1978), financial reporting, takeovers, insider trading and insolvency.

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.

The most recent Census of Distribution formed part of the 1987 Economy Wide Census. The results of the census are updated annually by the Annual Enterprise Survey. Both the censuses and the enterprise survey cover the activities of all businesses classified in Division 12 of the New Zealand Standard Industrial Classification.

Table 21.1. DISTRIBUTION: STATISTICAL SUMMARY

Statistical item1986-871987-881988-89
  number 
Group enterprises263425592573
Enterprises within these group enterprises440241903927
Enterprises not within these group enterprises395563818440684
Activity units (including ancillaries)529735100452897
Full-time equivalent persons engaged292204279268278173
Stocks
    closing734514880346088339258
opening700460478330187537034
   $(000)
Income—
    Sale of goods and services57,058,44865,636,27467,292,334
    Interest etc. received669,260657,971737,276
    All other income5,634,0493,394,7232,745,649
        Total sales and other income63,361,75768,688,96870,775,259
        Adjusted for change in stock values63,702,30168,890,55871,577,481
Operating expenditure—
    Salaries and wages4,208,4664,741,9845,050,891
    Depreciation536,337622,905719,420
    Interest, bad debts, etc.1,495,5131,722,0861,645,063
    Indirect taxes47,507,22551,567,79653,199,614
    Purchases183,128199,846202,844
All other operating expenditure7,524,9158,094,1488,666,643
        Total operating expenditure61,455,58466,948,76669,484,472
Working proprietors/partners salaries and wages699,974833,074718,674
Net profit before tax after deducting working
    proprietors/partner salaries and wages1,546,7431,103,7181,374,334
Economic values—
    Operating surplus3,072,9703,005,9083,000,796
    Value added7,554,2628,324,9238,837,529
Fixed tangible assets
    Purchases during the year1,429,7761,780,1182,003,086
    Sales during the year475,841619,565648,058
Balance sheet
    Shareholders funds, etc.10,312,33311,738,97310,806,187
All other liabilities17,444,78819,018,33419,955,568
Total capital and liabilities27,757,12130,757,30730,761,754
Fixed tangible assets6,018,3267,132,6797,453,878
All other assets21,738,79523,624,62923,307,877
Total assets27,757,12130,757,30730,761,754
Ratios
    Value added per full-time person engaged25,83329,81031,770
    Value added per $ 1,000 of salaries paid1,7951,7561,750
    Total sales and other income per full-time
    persons engaged216,841245,961254,429
  percent 
    Net profit per total sales and other income2.41.61.9
    Total salaries and wages per total sales and other income6.66.97.1
    Value added per total sales and other income11.912.112.5
    Shareholders funds per total capital and liabilities37.238.235.1
    Fixed assets per total assets21.723.224.2

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 on misleading or deceptive conduct; false trade descriptions; unfair practices; consumer information; and services and product safety standards.

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.

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.

In 1991-92 the ministry's complaints service will be refocused into a Consumer Advice Service, which as well as handling general enquiries from consumers about their legal rights, will provide a service to assist consumers to resolve their own complaints.

The Trade Measurement Unit aims to ensure that goods and services are exchanged on the basis of fair and accurate measure, in accordance with the relevant legislation or regulation, thus contributing to the economic welfare of both consumers and traders. In 1991-92 the unit will introduce and operate an accreditation programme to enable private sector firms to certify weighing and measuring equipment.

The ministry 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 of its magazines, and at the end of 1990 there were over 84,000 members.

The institute conducts comparative tests and surveys of consumer goods and services and researches financial, legislative, health, food, safety, environmental and welfare issues. Its findings are published in its magazines: Consumer (monthly), and Consumer Home & Garden (quarterly).

Though primarily a membership association, 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.

Restaurant, Auckland.

Shop trading hours

Traditionally, retailers have been restricted in the hours they can open their shops by legislation. On 1 August 1990 all such restrictions were removed with the repeal of the Shop Trading Hours Act.

Now shops can open every day of the year, 24 hours per day, except Christmas Day, Good Friday, Easter Sunday and up to 1 p.m. on Anzac Day. There are exceptions to this which allow certain shops to open on any day, i.e: dairy/mixed businesses, service stations, takeaways, souvenir and duty free shops, shops at public passenger transport terminals and genuine exhibitions and shows.

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 Act: On-licences; Off-licences; Club licences; and Special licences.

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 taverns, 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 and is the only licence granted by district licensing agencies.

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.

Hours of sale. 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. Application for liquor licences are made to the appropriate district licensing agency in the first instance and then referred to the Liquor Licensing Authority for determination.

Bistro, Christchurch.

Liquor licensing. The central licensing body is the Liquor Licensing Authority consisting 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. It also decides on appeals against decisions by district licensing agencies.

There are 74 district licensing agencies, which 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.

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.

NEW COMPANY REGISTRATIONS
Related to size of population

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 21.2. COMPANY REGISTRATIONS

Year ended 30 JuneNew companies registeredCompanies dissolved or struck offCompanies on register

* Year ended 31 March.

Source: Department of Justice.

1987*12,5631938147,158
1988*16,0615,187158,032
1989*12,3469,390160,988
1990*11,28912,377159,922
199110,95314,984153,275

Responsibilities to company shareholders. Comprehensive legislation relating to companies is contained in the Companies Act 1955. 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.

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. See ‘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, business acquisitions, which result in or strengthen market dominance, and prices for controlled goods or services.

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.

Where a business merger or takeover is proposed, the parties may apply to the commission for a ‘clearance’ that no dominance issues arise. If dominance is, or is likely to be, acquired, an application to the commission for authorisation is necessary.

It is unlawful for a business to acquire or strengthen market dominance by takeover or merger unless authorised by the commission. An acquisition can only be authorised if the commission considers that the benefit to the public outweighs the harmful effect of the change in structure on business competition.

In the prices area, the commission determines prices of controlled goods and services (currently only natural gas is subject to control).

The Commerce Commission is a body corporate with investigative and administrative powers. It was restructured under the Commerce Act 1986, with substantial changes introduced by amendment in 1990.

The Commerce Commission also has responsibility for enforcing 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 profit forecasts in prospectuses, unit trusts, the transfer of securities, the secondary market for securities, investment advisers, timeshares and a review of the Corporations (Investigation and Management) Act 1989.

The Report of the Sharemarket Inquiry Establishment Unit 1989, recommended a new draft securities bill which would provide for a reconstituted Securities Commission. The recommendation was still under consideration by the Government at the time of going to press.

Serious Fraud Office. The Serious Fraud Office is a specialist, inter-disciplinary department established to facilitate the detection, investigation and expeditious prosecution of serious or complex fraud offenders. The office is composed of chartered accountants, investigators and lawyers and multi-disciplinary teams are used in the investigation and prosecution of cases.

The powers given to the Office are to be found in the Serious Fraud Office Act 1990 which came into effect on 3 July 1990.

For the purposes of determining whether an offence involves serious or complex fraud, the act provides that the director may, among other things, have regard to the following four factors:

  • the suspected nature and consequences of the fraud.

  • the suspected scale of the fraud.

  • the legal, factual and evidential complexity of the matter.

  • any relevant public interest considerations.

The director's decision to investigate or take proceedings in relation to serious or complex fraud or proceedings under the Act is discretionary and not subject to review.

Essentially however, the Serious Fraud Office specialises in the investigation and prosecution of all serious and complex fraud, leaving other enforcement authorities to concentrate their resources on the prosecution of other offences.

In the long term it is hoped that the establishment of this new, specialist government department will make a significant contribution towards the combating of serious and complex fraud offending.

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 by the Sharebrokers Amendment Act 1981, and is governed by a board of directors comprising members, independent directors and one exchange executive (Managing Director). Its office in Wellington is responsible for granting of listings, the supervision of listed companies as regards their compliance with the listing requirements and the collection and promulgation of all market information and the operation and supervision of the trading system. It is also responsible for the membership of the exchange.

The exchange is financed by the payment of annual fees by listed companies and by levies on its members.

The New Zealand Stock Exchange is made up of members (sharebrokers) who assist companies to raise capital through issuing securities on the market, providing investment advice and acting as agents on behalf of their clients in the purchase and sale of securities. To become a member, a person must obtain a sharebrokers' licence; be approved by the board which is guided by qualifications, financial standing and experience. Trading members are subject to extensive capital adequacy requirements and regulations governing the operation of their sharebroking businesses.

There were 156 New Zealand companies and 75 overseas companies listed with the exchange at the end of the 1990-91 year.

SHARE PRICE INDEX
Gross index

New technologies and changed management and regulatory approaches continue to have an impact on the way the New Zealand Stock Exchange operates. Recent changes included introducing a computerised trade matching and settlement system in 1988, a Market Surveillance Panel in 1989, and an Automated Screen Matching system in 1991. A revision of the listing requirements in 1991 introduced new policy on late reporting, disclosure of relevant information, independent requirements for appraisal reports and shareholder approval of transactions with associated parties, and restrictions on voting. The latter two amendments are seen as major steps forward in shareholder protection. The exchange further revised its rules and regulations in 1991 to cover screen trading, short selling and a revision of the existing disciplinary rules.

A new Companies Bill is before Parliament to replace the Companies Act 1955. Securities law is under general review and a formal reporting regime has been announced, including the establishment of an Accounting Standards Review Board. Legislation is before Parliament to permit electronic transfers, and paperless trading is anticipated sometime during 1992.

Trading activity. High real investment rates on secure investments have discouraged equity investments and lack of income growth has meant that private savings have not grown. High unemployment reduced consumption and local demand: 1990 was a year of continued retrenchment and rationalisation among New Zealand companies.

However, 1991 has seen some improvement with falling interest rates and a resurgence of interest in the sharemarket. The decline in inflation and associated falls in interest rates saw a return to the market for equity finance.

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 a petition filed in the court by either the debtor or a creditor. 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, enforce debts due to the bankrupt's estate or 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 deducts expenses incurred, pays any debts given statutory priority and then 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.

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 and public examination of the bankrupt may be demanded. 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 for the assignee to be appointed as a receiver/manager of the property prior to the hearing of the creditor's petition.

Table 21.3. 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.

1986575390965
19876865431229
198811697051874
198911707521941
19909019021803

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 21.4. OCCUPATIONS OF BANKRUPTS

Occupational group19861987198819891990

*Includes unemployed from 1990. Note: This information is also available quarterly from March 1990.

Professional, technical, and related workers3255848864
Administrative and managerial workers6173142185211
Clerical and related workers2226255435
Sales workers115159235183194
Service workers549516111690
Agricultural, animal husbandry, and forestry workers, fishermen, and hunters14212916714581
Production and related workers, transport equipment operators, and labourers317310447437313
Not actively engaged/unknown*217382613714815
            Occupational group total9601229187419221803
Partnerships-----
Annulments5----
            Total bankruptcy petitions9651229187419221803

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.

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. Debentures often 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 function of a receiver once appointed is to realise the assets charged by the debenture, that is to sell what is necessary to recover the amount owed to the debenture-holder (plus costs), and then get 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. 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

Source: Department of Justice.

1987293420372
1988369468363
198911038311063
199084010122597
19916561033707

BANKRUPTCIES
Rate per 100,000 population

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.

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 $36.6 million ($32.5 million in 1990), and $30.7 million under the Life Insurance Act 1908 ($29.5 million in 1990), at 31 March 1991.

Statutory reporting is required only 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 reinsurance.

There are 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. Competition has also been an important factor in regulating all parts of the insurance market. During 1990 the Insurance Council of New Zealand adopted 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 developed a highly sophisticated system for marketing of insurance services. Traditionally, the insurance needs of the community have been served through a network of agents established by each insurance company. This agency network is now reinforced 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.

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 Accident Compensation Act 1974 has effectively removed many classes of liability insurance in New Zealand. 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 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 7.4, Accidents.

New Zealand has a 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 Earthquake and War Damage Act 1944 and its various amendments, have established a fund guaranteed by government which is designed to meet losses arising from earthquake, war damage and certain other specified catastrophic events. The Government intends to introduce legislation which makes earthquake insurance for commercial properties voluntary by discontinuing Earthquake and War Damage Commission cover. Domestic property owners will still insure with the commission, but will only be covered to the lesser of the indemnity value or a specified maximum sum ($72,000 at the time of going to press).

Historically, government has also been involved in both fire and general and life insurance through government-backed life insurance and mutual funds.

The taxation regime in New Zealand in respect of both life insurance, non-life insurance and reinsurance 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 has been undertaken.

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 7.6, Civil defence and fire safety.

Each of these interventions in the insurance market by government affect the size of the premium pool by influencing the cost and perceived level of insurance required from the private sector by businesses and private individuals.

Development of an insurance industry

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 enterprises as at February 1991.

The non-life insurance market is divided amongst 148 enterprises which 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. The Department of Statistics' Annual Business Directory update, recorded 66 medical and 88 general insurance enterprises operating in New Zealand as at February 1991.

The New Zealand premium pool is divided approximately: 18 percent commercial fire business, 22 percent domestic fire, 37 percent motor, 17 percent general accident, 2 percent marine hull and 4 percent marine cargo.

The Annual Business Directory update recorded 11,602 persons employed within the industry as at February 1991. The premium pool as at 31 December 1990 was:

  • Life (including superannuation) $1,600 million; and

  • Non-life $1,200 million.

Considerable change is taking place in the insurance industry in New Zealand and is likely to continue. The number of direct underwriters is reducing, with amalgamations and withdrawals. This 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, 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, in areas such as electrical safety and the registration, 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 brokers and 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's 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 providing superannuation for the employees of local authorities and other approved bodies as well as private companies. It 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 1991 there were 55,403 contributors to the Government Superannuation Fund and they paid $140,059,000 into it during the year. At the same time there were 45,307 beneficiaries who were entitled to $422,990,000 during the year.

Total assets at 31 March 1991, which amounted to $2,563,934,000 included investments in government stock of $1,065,790,000 and $75,551,000 in members' mortgages and $631,032,000 in bonds. The average effective interest earning rate of the fund was 15.54 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.

Membership is 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.

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.

Early in 1990 the Government announced that investment earnings of the Government Superannuation Fund and employer contributions would be taxed from 1 April 1990. Pensions would be tax-free from the same date, although pensions and lump-sum benefits would 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 1992.

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.

The Government Superannuation Fund is administered by a board comprising 15 members, with the Minister of Finance as statutory chairperson and representatives from various state departments and agencies.

Table 21.6. GOVERNMENT SUPERANNUATION FUND ALLOWANCES, AT 31 MARCH 1991

Qualification for allowanceNumberAnnual amount

Source: Government Superannuation Fund.

  $(000)
Retired for age or length of service32,093350,020
Medically unfit172514,929
Spouses10,85857,711
Children631336
            Total allowances45,307422,990

Table 21.7. CONTRIBUTORS TO GOVERNMENT SUPERANNUATION FUND

Branch of serviceAt 31 March 1991Percentage of total

*Includes state-owned enterprises which were formerly part of the Public Service.

Source: Government Superannuation Fund.

Armed services1102619.90
Education service13,74624.81
Police4,9618.95
Prison officers18393.32
Public Service*23,83143.02
Total55,403100.00

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.

Tax exempt.

Source: Government Superannuation Fund

$(000)
198972,595153,732267,582500,710435,2242,154,679
199060,144146,438315,003554,819474,7562,342,582
199155,403140,059362,532450,908422,990†2,563,934

National Provident Fund. With over $3 billion in assets, National Provident is New Zealand's largest superannuation fund. Having closed to new members on 1 April 1991, the fund has been providing superannuation schemes for employer/employee groups and individuals for nearly 80 years.

The Department of the National Provident Fund administers some 170,000 superannuation contracts on behalf of the government-appointed Board of Trustees of the National Provident Fund. Services are provided in four areas:

  • Personal schemes—National Provident Fund pension schemes cater for the general public contributing on an individual basis.

  • 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 utilised by 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.

In 1987 the Government established National Provident as a separate department outside the Treasury, with the intention of later establishing it as an independent financial mutual. However, the Government subsequently abandoned this plan in favour of requiring the board to determine the most effective future management arrangements for the fund's schemes and assets. This requirement was contained in the National Provident Fund Restructuring Act 1991. The restructuring act established a Global Asset Trust that contains all the fund's assets, and provided for the fund to be split into 17 separate superannuation schemes. Future management arrangements for the newly-established Global Asset Trust and 17 schemes are expected to be finalised through a tender process by 1 April 1992. The changeover in management will not change members' existing rights and benefits. These will continue to be government-guaranteed.

Table 21.9. NATIONAL PROVIDENT FUND: FINANCIAL SUMMARY*

Year ended March19901991

*Figures may not be comparable with historical data.

Source: National Provident Fund.

 $(000)
Contribution income (including Government subsidy)217,828177,401
Investment income (after revaluations)186,603307,347
Abnormal items30,685160,141
            Total income435,116324,607
            Total expenses26,70727,809
Benefits and capitalisations paid151,874148,425
Contributions refunded56,65556,644
Taxation75,98415,986
            Net surplus after tax123,89676,463
At 31 March:  
Assets2,881,6842,872,155
Liabilities224,312338,679
            Net assets2,657,3722,533,476
Number of contributors165,869160,646
Number of pensioners24,43823,226

Insurance industry statistics

The results of the 1987 Economy Wide Census are updated annually by the Annual Enterprise Survey. Both the census and the enterprise survey cover 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 reinsurance including mortgage repayment insurance. Also included are superannuation and mutual fund operations not separately administered.

Table 21.1. LIFE INSURANCE: STATISTICAL SUMMARY

Statistical item1986-871987-881988-89
  number 
Group enterprises313028
Enterprises within these group enterprises403836
Enterprises not within these group enterprises1368
Activity units (including ancillaries)284273274
  $(000) 
Income—
    Interest and dividends received842,085921,052920,427
    Premiums and contributions received1,647,5591,783,8781,587,228
    All other income received207,828280,279306,221
            Total income2,697,4732,953,2082,813,876
Operating expenditure—
    Salaries and wages95,414133,949148,716
    Depreciation21,90327,02228,478
    Interest17,83822,00840,107
    Indirect taxes10,80417,60223,268
    Claims and benefits paid870,9861,305,862R1,596,040
    All other operating expenditure343,094447,529R507,818
            Total operating expenditure1,360,0391,953,9722,344,428
Balance of income over expenditure1,337,434999,236469,448
Net gains/losses on extraordinary items and transfers2,566,559-1,298,48420,942
Fixed tangible assets—
    Purchases during the year252,045250,013228,074
    Sales during the year54,34127,305159,437
Balance sheet—
    Policy holders fund at end of year10,969,37811,633,56112,009,541
    All other liabilities including shareholders funds2,173,8461,087,2571,034,716
            Total capital and liabilities13,143,22412,720,81813,044,257
Fixed tangible assets2,318,410R2,005,4792,164,438
All other assets10,524,81410,715,33910,879,819
            Total assets13,143,22412,720,81813,044,257
  percent 
Ratios—
    Policy holders funds per total capital and liabilities83.591.592.1
    Fixed assets per total assets17.615.316.6

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 item1986-871987-881988-89
  number 
Group enterprises404246
Enterprises within these group enterprises535762
Enterprises not within these group enterprises533744
Activity units (including ancillaries)461501529
Full-time equivalent persons engaged527653105451
   $(000)
Income—
    Interest and dividends received135,729167,118140,764
    Premiums and contributions received1,002,2111,157,3821,165,305
    All other income received54,02052,51743,306
            Total income1,191,9601,377,0181,349,875
Operating expenditure—
    Salaries and wages112,756137,003106,161
    Depreciation13,69718,79422,006
    Interest24,81612,73417,535
    Indirect taxes2,6012,4723,541
    Claims and benefits paid704,563735,111747,591
    All other operating expenditure245,020256,323272,462
            Total operating expenditure1,103,4521,162,9371,209,295
Net profit before tax38,507214,081140,438
Economic values—
    Operating surplus89,502214,594142,146
    Value added252,993389,406332,269
Fixed tangible assets—
    Purchases during the year62,85574,00356,520
    Sales during the year16,8349,62214,841
Balance sheet—
    Shareholders funds, etc.793,763922,981765,352
    All other liabilities971,5031,126,9101,228,460
            Total capital and liabilities1,765,2662,049,8911,993,812
Fixed tangible assets285,327335,194381,633
All other assets1,479,9391,714,6971,612,179
            Total assets1,765,2662,049,8911,993,812
Ratios—
Value added per full-time equivalent persons engaged47,95267,02360,956
Value added per $ 1,000 of salaries/wages paid2,2442,5432,273
Total sales and other income per full-time person engaged225,921237,008247,638
  percent 
Net profit per total sales and other income7.415.610.4
Total salaries and wages per total sales and other income9.510.010.8
Value added per total sales and other income21.228.324.5
Shareholders funds per total capital and liabilities45.045.038.4
Fixed assets per total assets16.216.419.1

Medical insurance, superannuation and mutual fund operation (industries 82120, 82200 and 82301). This division is concerned with the operation of separately administered superannuation and pension funds, the provision of medical, hospital and dental insurance, funeral benefits and the operation of the benefit funds. Included are employee benefit funds, welfare societies, friendly societies and funds not elsewhere classified.

Table 21.13. MEDICAL INSURANCE, SUPERANNUATION AND MUTUAL FUND OPERATIONS: STATISTICAL SUMMARY

Statistical item1986-871987-881988-89
  number 
Group enterprises151921
Enterprises within these group enterprises173536
Enterprises not within these group enterprises141514191365
Activity units (including ancillaries)146214821443
Full-time equivalent persons engaged6817901032
  $(000) 
Income—
    Interest and dividends received1,091,3101,367,2911,551,640
    Premiums and contributions received1,133,3081,337,9902,179,660
    All other income received483,515944,89676,790
            Total income2,713,6333,650,1773,838,090
Operating expenditure—
    Salaries and wages14,79615,48327,553
    Depreciation5,9962,0564,280
    Interest3,553 1,934
    Indirect taxes2,382500879
    Claims and benefits paid1,163,7732,155,7232,302,136
    All other operating expenditure72,56259,82657,495
            Total operating expenditure1,268,5612,291,2452,394,278
Balance of income over expenditure1,445,0721,358,9321,443,312
Net gains/losses on extraordinary items and transfers689,080-381,907-542,487
Fixed tangible assets—
    Purchases during the year86,328117,36367,445
    Sales during the year94,70912,08352,614
Balance sheet—
    Policy holders funds at end of year13,384,56914,310,90014,973,876
    All other liabilities including shareholders funds1,123,8431,270,7421,516,351
    Total capital and liabilities14,508,41215,381,64216,490,228
Fixed tangible assets474,659653,121453,050
All other assets14,033,75314,928,52216,037,177
            Total assets14,508,41215,581,64216,490,228
Ratios percent 
Ratios   
Policy holders funds per total capital and liabilities92.391.890.9
Fixed assets per total assets3.34.22.8

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.

With a few exceptions the retail sector had a poor year in 1991. Apart from hardware, chemists, and the ‘other stores’ groups, retailers struggled to meet their budgets and in most cases did not match 1990 sales.

Discount retailing was the major growth area. This resulted in widespread pressure on retail margins as other traders adapted in order to compete. Coupled with a reduction in personal spending power over the last two years the result was widespread business closures. Commensurate with this was the growth in chain stores.

Supermarket shopping.

However, during the year the growth in overseas investment continued, with purchases of existing, and opening of new stores, particularly by Australian companies. The investment in new retail property slowed but refurbishments and extensions to shopping malls was a major feature.

Retail trade survey

The department has introduced a revised sample of stores and made other technical changes to the Retail Trade Survey from the month of March 1990. In contrast to the previous survey sample which was based on a random sample of small geographical clusters and area units, the current sample has been drawn from the Department of Statistics' Business Directory, a comprehensive and up-to-date list of all businesses in New Zealand.

Table 21.15. RETAIL TRADE SURVEY: SALES*

Store typeQuarter ended
Dec
1989R
Mar
1990
Jun
1990
Sep
1990
Dec
1990
Mar
1991
Jun
1991

* Values given exclude GST. R. Reserved due to survey reselection.

    $(million)   
Butcher136.8114.5114.5105.4111.595.596.1
Supermarket1,109.31,005.01,075.21,084.11,209.01,074.81,103.1
Other food523.8500.5477.1471.9525.4504.4468.7
Footwear707.763.779.962.175.564.477.9
Clothing and textiles373.6296.7353.3326.2376.7297.0363.3
Furniture236.7188.8198.6193.7209.2177.7172.1
Household appliances361.9330.7318.2304.7323.0277.2317.9
Hardware154.1141.8131.3129.1172.1164.9146.9
Chemist217.6202.3204.6211.8242.0226.3208.9
Department and general stores407.7286.1320.4294.9403.6277.6311.0
Restaurants and takeaways317.9310.7337.5331.2366.2345.8349.0
Liquor and accommodation812.4756.3645.7647.8781.1728.2643.3
Other stores571.9485.0464.5493.3724.1541.6502.8
Subtotal5,294.54,681.94,720.94,656.35,519.34,775.54,760.9
Automotive fuel and repairs921.0892.0864.9901.0985.0917.9896.9
Automotive vehicle sales1,554.31,556.21,509.21,470.11,427.71,245.01,265.9
            All stores7,769.87,130.27,095.07,028.17,932.06,938.46,923.8

Table 21.16. RETAIL TRADE SURVEY

Store typeStocks as at 31 March
1987R1988R1989R19901991

R. Revised due to survey reselection.

   $(million)  
Butcher10.510.410.410.89.1
Supermarket139.7147.0158.6159.9169.4
Other food88.988.885.182.893.0
Footwear100.494.285.291.8100.8
Clothing and textiles288.0312.9295.1291.5303.0
Furniture175.0164.3169.5160.2136.1
Household appliances221.2208.5179.4181.6180.6
Hardware102.5116.3129.4128.7126.0
Chemist87.192.197.297.8108.1
Department stores302.2256.2265.1271.5233.1
Restaurants and takeaways23.823.822.423.725.4
Liquor and accommodation122.0126.5122.9129.6125.8
Other stores333.3381.3412.7435.8478.6
Subtotal1,994.62,022.22,032.92,065.72,089.0
Automotive fuel and repairs124.3119.7123.9132.4124.5
Automotive vehicle sales857.8865.8784.1716.8627.7
All stores2,976.83,006.72,940.92,915.02,841.2

RETAIL TRADE
Total sales

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 turnoverSales per head of population
In current $In constant Mar qtr 1990 $In current $In constant Mar qtr 1990 S
As recordedSeasonally adjustedSeasonally adjustedAs recordedSeasonally adjustedSeasonally adjustedPercentage change†

* Values given exclude GST.

Each quarter on previous quarter.

R Revised due to survey reselection.

1989—JunR7,447.17,359.27,571.42,234.82,208.42,272.1+2.0
SepR6,988.77,091.07,215.12,094.22,124.92,162.1-5.0
Dec7,769.87,304.27,364.02,324.12,184.92,202.7+1.9
1990—Mar7,130.27,431.17,431.12,128.22,218.02,218.0+0.7
Jun7,095.07,194.57,132.82,106.72,136.32,117.9-4.6
Sep7,028.17,117.87,060.02,091.42,118.12,100.9-1.0
Dec7,932.07,435.97,288.92,331.82,186.02,142.8+2.0
1991—Mar6,938.47,205.87,042.82,020.82,098.72,051.2-4.3
Jun6,923.87,055.96,901.82,025.32,063.92,018.9-1.6

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 endedFor 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
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
Sep260.21,028.21,593.22.5
Dec268.61,042.21,593.43.0
1990—Mar244.91,053.61,567.02.8
Jun263.21,036.91,552.92.7
Sep248.71,025.41,521.72.4
Dec232.9989.71,478.52.2
1991—Mar177.6922.41,278.92.6

Shop interior, Wellington.

The Credit Contracts Act 1981 reformed the law relating to the provision of credit under contracts of various kinds. Included in the Act are provisions which prevent oppressive contracts, and ensure the disclosure of the cost of credit on a uniform basis.

The official measure of the hire-purchase sales in New Zealand is the Department of Statistics' quarterly hire-purchase survey.

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.

CREDIT CARD USE
Total sales by quarter, seasonally adjusted

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) 
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
1990951.12,830.0510.13,440.1

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 Retail and Wholesale Merchants Association Of New Zealand Inc.; Department of Statistics.

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).

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).

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

Port Chalmers, Port of Otago.

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, Russia 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

The board's primary function is to foster the development and expansion of New Zealand's foreign exchange earnings.

The Trade Development Board 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.

Other aspects of the board's activities include a programme of special export awards and commendations given to companies which are identified as outstanding foreign exchange earners.

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.

Although mainly government-funded, the board earns some revenue from exporters who contract services.

Export credit insurance

The Export Guarantee 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. The business of the Export Guarantee Office was sold to State Insurance Limited on 3 October 1990.

Customs and excise

Tariff of New Zealand. The New Zealand tariff is based on the international Harmonised Commodity Description Coding System (Harmonised system). The 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. The Tariff of New Zealand is a manual which 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 55 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
Tariff
Preferential
Tariff
85.17  Electrical apparatus for line telephony or line telegraphy,
including such apparatus for carrier-current line systems:
  
8517.10.0000eNo.Telephone sets22
7/92,19.5
Aul/Free
CA/17
7/92/14.5
LLDC/Free
PAC/Free

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 preferential rates of duty. For the specific item, telephone sets, the standard duty is 22 percent of value reducing to 19.5 percent by July 1992. These goods are duty-free if they originate in Australia, least developed countries, or Pacific Forum Countries, and there is a preferential duty of 17 percent if they originate in Canada (reducing to 14.5 by July 1992).

The customs tariff, as well as protecting local industry, has trade policy and development assistance objectives, and is a way of meeting obligations under international trade agreements, and a way of encouraging trade with developing countries.

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 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). 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, illicit drugs and other contraband goods.

Import licensing

Import licensing is being phased out and now controls less than 3 percent of New Zealand's imports by value.

Under the licensing system, only certain apparel goods may now require an import licence. The remaining goods subject to import licence control (apparel) have a termination date of 30 June 1992. With the removal of the import licensing system, the tariff (import duties) will be the principal means of industry assistance.

All goods of Australian origin have, since 1 July 1990, entered New Zealand licence and duty free. The sole purpose of import licensing now is to provide 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.

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. 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 kiwifruit, 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 are 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.

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 previously included the Cocos Islands, Norfolk Island, and Christmas Island; and the United States included American Samoa, Guam, Northern Mariana Islands, Puerto Rico, United States Virgin Islands and United States Minor Outlying Islands. From 1990, however, this practice has been discontinued and each of the above-mentioned countries will be listed separately, where appropriate.

Balance of merchandise trade

New Zealand's balance of merchandise trade for the trade year ended 30 June 1991, showed a surplus of $1,799.4 million. Total exports were valued at $15,850.4 million (f.o.b.) and imports at $14,051.0 million (v.f.d.).

Table 22.1. VISIBLE BALANCE OF MERCHANDISE TRADE

Year ended 30 JuneTotal exports (f.o.b.)Total imports (c.i.f.)Excess exports(+) or imports(-)
  $(000) 
198914,905,75411,401,688x+3,503,691x
199015,227,75414,420,081+807,673x
199115,850,44014,050,965+1,799,475

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 the last 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 nations in Asia, Latin America, the Middle East and Eastern Europe, including Russia.

While the European Community (increasingly a single trading entity under the single market programme) is New Zealand's second 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 26 percent of total exports and 22 percent (v.f.d.) of total imports by value in 1990–91.

In the year ended June 1991 the European Community took 17.5 percent of New Zealand's total exports (worth $2.8 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$5.8 billion in 1990–91; Japan dropped back, recording NZ$4.7 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 has provided for free trade in goods from 1 July 1990.

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.   
June year     June year     
1980141313144619801419131440
19859171515441985919201735
19869171416441986917211736
198791515174419871018211635
198891717154219881021181635
19897181814431989822181735
19907201613441990921161836
19916191613461991720151840

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. Since 1 July 1990 tariffs and quantitative restrictions on all goods between the two countries have been removed. The CER Agreement 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.

Table 22.3. TRADE WITH AUSTRALIA

Year ended JuneExports* f.o.b.Imports v.f.d.Excess exports (+) or imports (-)Ratio of trade†

*Includes re-exports.

Ratio of imports f.o.b. to imports v.f.d.

$(000)
19839071368-4610.66:1
198412481676-4280.74:1
198517672135-3680.83:1
198617351737-21.00:1
198717041949-2440.88:1
198819652273-3090.86:1
198924252460-350.99:1
199027502999-2490.92:1
199127112877-1650.94:1

CER in 1992. The next review of the CER Agreement is due to take place in 1992. On 5 July 1991 the New Zealand Minister for Trade Negotiations and the Australian Minister for Trade and Overseas Development met to discuss the agenda for the 1992 Review.

Before the meeting both ministers had consulted widely with their respective business communities. There had been broad agreement that the 1992 Review provided an opportunity to make substantial progress in a number of areas.

The Prime Ministers have accepted the ministers' recommendation that the following 10 items be included on the agenda for the review:

  • Trans-Tasman shipping;

  • Specific taxation arrangements that may be impeding bilateral trade and investment;

  • Aspects of the tariff and industry policies of the two countries, including a review of the CER Agreement's rules of origin and the operation of the Agreed Minute on Industry Assistance;

  • A further review of the 1988 CER Trade in Services Protocol;

  • Further progress in business law harmonisation;

  • Trans-Tasman investment;

  • Further work on the harmonisation and mutual recognition of standards and other technical requirements;

  • Further work in harmonising customs and quarantine arrangements;

  • Work on the harmonisation of border control procedures; and

  • An examination of the mutual recognition of professional and other qualifications.

Major imports and exports. Significant value import items for the 1990–91 year were:

  • Boilers, machinery and mechanical appliances, $240.8 million;

  • Road vehicles, $207.2 million;

  • Non-ferrous metals and articles of, $195.0 million;

  • Aluminium oxide, $22.7 million;

  • Electrical machinery, apparatus and appliances, $196.7 million;

  • Plastics and articles of plastic, $130.8 million;

  • Iron and steel and articles of, $142.9 million;

  • Mineral fuels and oils, $167.4 million; and

  • Fertilisers, $117.1 million.

Significant value export commodities for the 1990–91 year were:

  • Wood and articles of wood, $231.9 million;

  • Boilers, machinery and mechanical appliances, $280.4 million;

  • Paper and paperboard, $202.6 million;

  • Wool and other animal hair, $91.8 million;

  • Live horses, $64.2 million;

  • Electrical machinery, apparatus and appliances, $161.5 million; and

  • Mineral fuels and oils, $86.0 million.

South Pacific

The South Pacific has become a significant export market, accounting for 3.7 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 $173 million of New Zealand's produce in 1990–91. 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 $526.5 million (f.o.b.) and imports (v.f.d.) from these islands came to $115.9 million in 1990–91.

South Pacific Forum island nations. Under the South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA) which took effect in 1981, New Zealand provides, on a non-reciprocal basis, duty-free and unrestricted access to its markets for all products exported by the forum island countries (FICs) provided they meet the specified rules of origin. (Australia also provides duty free and unrestricted access for most FIC products under the agreement).

The rules of origin under SPARTECA require goods entering New Zealand or Australia to have a minimum of 25 percent Forum Island Country content and a minimum of 50 percent FIC/New Zealand/Australian content.

The SPARTECA Agreement includes provision for general economic, commercial and technical co-operation and safeguard provisions relating to dumped or subsidised goods. It also provides for special treatment and conditions to be applied to the Smaller Island Nations of the Cook Islands, Kiribati, Nauru, Niue, Tonga, Tuvalu and Western Samoa.

Both New Zealand and Australia fund Trade Offices in Auckland and Sydney to assist Pacific Island exporters and to facilitate New Zealand and Australian investment in the region. In addition, New Zealand operates a Pacific Islands Industrial Development Scheme aimed at fostering joint ventures between New Zealand and forum island country private sector entrepreneurs.

Exports of New Zealand produce (excluding re-exports) to the Pacific Forum island countries amounted to $372.1 million (f.o.b.) and imports (v.f.d.) from these nations came to $115.5 million in 1990–91. The two major countries New Zealand exported to during 1990–91 were Fiji ($172.7 million) and Papua New Guinea ($72.6 million). The top three import country suppliers were Fiji ($76.2 million), Nauru ($17.1 million) and Western Samoa ($8.2 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 agricultural, forestry, and manufactured exports. Dairy products still account for over half of total exports to the region. New Zealand's total dairy exports to ASEAN were $387 million in 1990–91. Malaysia is New Zealand's largest export market for milk powders at $150.3 million for 1990—91. New Zealand produce exports to Malaysia were $283 million in the year ending June 1991. Exports to the ASEAN group have increased substantially over recent years to reach $911 million f.o.b. (or 6.0 percent of New Zealand produce exports) in the trade year 1990–91. The major imports from ASEAN are machinery and transport equipment, electrical goods and electronic equipment, petroleum, textiles and tropical food products.

India. For the year ended June 1991 New Zealand exports totalled $127 million, a 41 percent increase from the previous year.

Korea. For the year ended 30 June 1991, two way merchandise trade between New Zealand and the Republic of Korea reached $948.0 million, 23 percent more than for the previous year. Korea was New Zealand's fifth largest export market, accounting for exports worth $718.2 million. This represents an increase of 43 percent over the 1989–90 figures. Hides, skins, unwrought aluminium, sawlogs, petroleum products and meat were the main contributors to the increase. The principal export earners were hides, skins and leather which increased by 23 percent to reach its highest ever level of $165.8 million. Exports of wood, primarily sawlogs, rose to $121.1 million. Notable value increases were also recorded for meat, petroleum products and steel. New Zealand and Korea signed a trade agreement in April 1978, which superseded a 1967 agreement. Korea is New Zealand's second largest Asian market and has consistently returned a credit trade balance.

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. 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). But in 1990 this wool market collapsed to $99.4 million, and down further to $90.6 million in 1991 out of total exports valued at $185.5 million in 1991. China's total exports to New Zealand have increased 55 percent since 1988–89 and reached $194.6 million in 1990–91.

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. Chinese corporations have also invested in forestry and property in New Zealand.

Japan. In the 1990–91 trade year, Japan was New Zealand's second largest export market and third largest source of imports. Two-way merchandise trade totalled $4,705 million, making Japan New Zealand's second largest national trading partner. The principal export earner was unwrought aluminium ($568 million), with wood, fish, and meat next. Other major exports were wood pulp, dairy products, fresh fruit and vegetables, wool and petroleum products. Efforts continue to be made to improve access conditions for New Zealand exports. Japan has committed itself to an ongoing programme of import liberalisation. 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.

Hong Kong. Exports to Hong Kong have grown steadily to total $232 million in 1990–91. Major export products include beef, dairy products, fruit, vegetables, fish, wool, paper and paperboard and leather. Imports from Hong Kong totalled $184 million in the same period. Hong Kong's economy is rapidly integrating with southern China and Hong Kong is becoming increasingly important as an entrepot for trade and investment relations with China. Hong Kong is also a key source, in its own right, for investment and business migrants coming to New Zealand.

Taiwan. Taiwan has become New Zealand's sixth largest export market and is continuing to grow rapidly. Exports to Taiwan in 1990–91 totalled $313.9 million and consisted largely of wood and wood products, dairy products, beef, aluminium, fruit, animal fats and wool. The advent of direct air links in mid-1991 will enhance trade relations in coming years.

The Americas

United States. The United States was New Zealand's third largest country export market in the year to June 1991, when total exports reached $1,976.6 million, an increase of 3.1 percent over the $1,917.6 million in the previous year. The United States is New Zealand's largest market for beef, veal, and casein, and the number two market for fish. Other important exports to the United States in 1990 were cheese, fruit and vegetables (mainly kiwifruit and apples), hides and skins, wool, lamb, wood and aluminium.

There are a number of restraints imposed on New Zealand's agricultural exports to the United States. American legislation sets an annual limit on imports of beef and veal which increases the level of permissible imports when United States domestic production is low, and vice versa. After two years of unrestricted access, 'voluntary' restraints were imposed for the last few months of 1991. 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.

TRADING PARTNERS
Proportion of total exports going to different markets

Canada. Canada is New Zealand's eleventh largest export market, taking total exports of $228 million in 1990–91. Beef and veal were the main exports to Canada. Other major items were lamb, hides and skins, iron and steel, wool, cheese, fish and prefabricated metal products.

The Canadian Meat Import Act of 1981 allows the Canadian Government to restrict beef imports. The market has remained open since 1986. Canada also maintains strict quotas on dairy imports.

In 1981 a Trade and Economic Co-operation Agreement (TEC) was signed between the Governments of New Zealand and Canada, with the agreement coming into force in 1982.

Latin America. Mexico, Venezuela and Peru have become useful markets for New Zealand, particularly for dairy products. Total New Zealand exports to these countries in 1990–91 were $130 million to Mexico, $87 million to Venezuela and $37 million to Peru.

Trade contact with Latin America is facilitated by the New Zealand/Chile, New Zealand/Mexico and New Zealand/Latin America Business Councils.

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 trading partner, accounting for 17.5 percent of New Zealand's exports and 19.2 percent of imports (v.f.d.) for the year ended June 1991.

In addition, the United Kingdom, Germany and Italy, figure individually among New Zealand's top export markets (ranked fourth, seventh, and ninth respectively). Trade in visible goods between New Zealand and the European Community in 1990–91 showed a balance in New Zealand's favour of NZ$76 million. When 'invisibles' (see 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.

In September 1989 the community's Council of Ministers granted access from 1989 until 1992 for specified quantities of New Zealand butter, 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, effective 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 since 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 the year ended June 1991 the United Kingdom's share of New Zealand's exports had fallen to 6 percent. 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 now defunct Soviet Union) for the last three trade years: 1988–89, $53.7 million, 1989–90, $47.0 million, 1990–91, $10.3 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: 1988–89, $14.9 million, 1989–90, $20.9 million, 1990–91, $10.6 million (v.f.d.). Goods imported were chemicals, machinery, textiles, glassware, fertilisers, rail and motor vehicles.

Soviet Union. The Soviet Union was New Zealand's fifteenth largest export market in 1990–91. Total exports to the Soviet Union were $182.3 million (f.o.b.) in the 1990–91 trade year, a decrease from $354.0 million (f.o.b.) in 1989–90. Meat, dairy products and wool account for almost all of this trade.

New Zealand imports from the Soviet Union in the trade year 1990–91 decreased to $5.8 million (v.f.d.) from $8.4 million (v.f.d.) the previous year. Goods imported were mainly machine tools, fertiliser, chemicals and motor vehicles.

The break up of the Soviet Union is not expected to affect New Zealand's trade links, as most of our Soviet-bound exports have always been for the State of Russia.

Middle East

In 1985 exports to the Middle East, mostly sheepmeat and dairy products, reached $840 million (f.o.b) (7.4 percent of total exports), but there was a decline 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 depressed during the period of the Iran/Iraq war, and the Gulf crisis has further contributed to keeping exports static. However, expanding markets in other countries of the region has seen total exports rise to $660 million for 1990–91.

In 1990–91 exports to Iran made it New Zealand's third biggest Middle East customer, taking over $114 million worth of exports (mainly lamb and wool), having been surpassed by Algeria at $174 million, mostly dairy products, and Saudi Arabia with receipts of over $18 million for a wide variety of primary and manufactured products. Seven hundred and twenty eight million dollars (v.f.d.) (83 percent) of New Zealand's imports of crude oil products were obtained from the Middle East in 1991, of which Saudi Arabia provided $461 million of that amount.

Developing countries

New Zealand responded to the recommendation of the United Nations Conference 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.

In 1984 the Generalised System of Preference (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 23 countries being graduated from New Zealand's GSP scheme. 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. A 1988 review of GSP decided to reinstate countries when their GNP per capita dropped below the 70 percent benchmark.

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 is under review.

Since 1 July 1989 goods from 15 LDCs imported under 283 tariff items have become subject to the normal tariff.

Duty free treatment for least developed countries (LLDCs) was also introduced as a result of the 1984 tariff review. At 1 July 1991 the list of beneficiaries of the New Zealand GSP scheme numbered 148 countries and territories, of which 41 countries are listed as beneficiaries of special tariff treatment as least developed countries. This list includes Pacific Forum island countries, which also enjoy duty free treatment under non-reciprocal free trade arrangements. Since 1 July 1986 the developing country rate has been 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. At the same time 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).

Incubating smuggled eggs, intercepted at Auckland Airport.

Other trade obligations

New Zealand is also a party to certain commercial treaties, conventions and agreements with countries outside the Commonwealth resulting from direct negotiations with the countries concerned. In practice, some of the earlier instruments (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, amended 1952, 1955 and 1957, and since extended to Liechtenstein in 1957); the Federal Republic of Germany (1959, amended 1960 and protocol 1961); Japan (1958, amended 1962); the Union of Soviet Socialist Republics (1963, protocol 1973); Polish People's Republic (1965); People's Republic of Bulgaria (1967); the People's Republic of China (1973, amended 1976); Socialist Federal Republic of Yugoslavia (1975); Republic of Korea (1976); Republic of the Philippines (1976); Arab Republic of Egypt (1977); Republic of Indonesia (1978); Hungarian People's Republic (1978); the Socialist Republic of Romania (1979); Kingdom of Thailand (1981); Republic of Iraq (1982); the Islamic Republic of Iran (1985); the Republic of India (1986); and the Islamic Republic of Pakistan (1990). 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 1990-91

CountryTotal exports f.o.b.*Imports v.f.d.

*Includes re-exports.

East and West Germany amalgamated in October 1990 and are known as Germany.

ASEAN member countries.

§Includes minor trading partners not shown.

||From 1 July 1986 Middle East includes Algeria, Morocco, Sudan and Tunisia.

ļYemen and Democratic Yemen amalgamated in March 1990.

 $(million)
OECD countries
    EC countries
        Belgium166.480.8
        Denmark28.365.9
        France167.8314.3
        Germany†372.1645.4
        Greece80.74.6
        Ireland12.346.9
        Italy252.7330.9
        Luxembourg0.23.4
        Netherlands157.2151.1
        Portugal37.214.4
        Spain70.541.8
        United Kingdom1,024.2992.8
        Destination unknown—E.C.404.7
                Total2,774.12,698.2
    Other OECD countries
        Australia2,937.72,876.8
        Austria14.341.9
        Canada232.1244.7
        Finland8.353.8
        Iceland0.90.2
        Japan2,603.52,101.6
        New Zealand (re-imports)99.4
        Norway5.194.9
        Sweden55.2522.5
        Switzerland52.4174.4
        Turkey39.58.6
        United States2,063.62,512.6
        Yugoslavia1.73.7
                Total10,788.511,333.2
    China
        People's Republic of186.1194.6
        Taiwan316.3357.2
                Total502.4551.8
    Asia
        Bangladesh4.05.2
        Brunei Darussalam‡1.026.9
        Hong Kong241.0171.8
        India127.041.7
        Indonesia‡166.798.4
        Korea, Republic of719.2228.8
        Macau1.62.9
        Malaysia‡394.5130.3
        Myanmar0.60.4
        Nepal40.70.1
        Pakistan23.827.0
        Philippines‡115.719.1
        Singapore‡226.5205.0
        Sri Lanka‡36.68.5
        Thailand‡149.383.5
        Vietnam2.50.5
                Total?2,251.31,050.1
    Oceania
        Cook Islands30.83.2
        Fiji195.276.2
        French Polynesia75.30.2
        Kiribati3.8
        Nauru3.217.1
        New Caledonia43.10.3
        Niue7.7
        Papua New Guinea76.48.2
        Samoa50.47.2
        Solomon Islands12.10.9
        Tonga27.02.7
        Tuvalu0.8
        Vanuatu11.7
                Total§540.5115.9
        South, Central America and Caribbean
Argentina3.313.0
        Bahamas1.31.6
        Barbados11.8
        Belize1.0
        Bermuda4.80.3
        Brazil25.357.1
        Chile19.615.8
        Colombia2.81.0
        Cuba60.0
        Dominican Republic7.1
        Ecuador0.629.3
        El Salvador5.8
        Grenada1.6
        Guadeloupe5.8
        Guatemala3.40.1
        Haiti1.9
        Honduras2.20.2
        Jamaica16.35.6
        Martinique5.0
        Mexico130.216.4
        Netherlands Antilles1.0
        Panama8.9
        Peru37.42.1
        Trinidad and Tobago14.30.1
        Uruguay0.4
        Venezuela86.90.5
                Total?473.4145.4
    Middle East||
        Algeria173.9
        Bahrain11.50.2
        Egypt14.91.2
        Iran114.51.7
        Iraq5.1
        Israel2.221.3
        Jordan56.50.5
        Kuwait3.4
        Lebanon2.3
        Libya10.4
        Morocco5.314.9
        Oman18.792.0
        Qatar3.50.7
        Saudi Arabia181.3480.8
        Syria0.8
        Tunisia1.0
        United Arab Emirates35.9175.3
        Yemen ļ19.8
                Total661.1788.6
    Eastern Europe
        Czechoslovakia6.44.0
        Germany †0.8
        Hungary1.42.2
        Poland1.72.0
        Romania0.11.2
        Soviet Union182.35.8
                Total§196.216.4
    Africa
        Ghana1.11.0
        Kenya1.91.7
        Malawi2.22.5
        Mauritius27.20.5
        Mozambique3.8
        South Africa17.011.1
        Swaziland0.28.4
        Tanzania0.71.1
        Zambia0.10.4
        Zimbabwe1.03.7
                Total§61.630.7
    Other countries
        American Samoa26.4
        Cyprus2.40.1
        Guam13.3
        Malta5.70.2
        Marshall Islands1.6
        Norfolk Island6.6
        Puerto Rico5.618.1
                Total§64.018.8
                Total, all countries15,535.614,051.0
        Bunkering ships or aircraft212.6 
        Passengers' duty-free goods37.4 
        Ships' stores64.8 
                Total, merchandise trade15,850.414,051.0

Mt Maunganui wharf.

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 17.2 percent ($2,611.3 million) of New Zealand produce exported. The main countries purchasing beef and veal were the United States ($881.7 million), Canada ($105.0 million) and Japan ($74.0 million). Lamb exports to the United Kingdom amounted to $299.0 million. The next largest customer was Germany ($84.7 million), followed by France ($66.9 million) and Japan ($54.6 million). Lamb exports totalled $977.8 million for the 1990–91 trade year.

Scene from Bad Taste, a highly successful New Zealand film export.

Table 22.5. PRINCIPAL COMMODITIES EXPORTED, 1990-91

CommodityYear ended June 1990Year ended June 1991
Unit of quantityQuantityf.o.b. $(000)Average price $ per unit of quantityQuantity$(000)Average price $ per unit of quantity

*Item numbers for Surimi were only introduced with H.S. on 1.1.88.

Horsesno.4437127,82228,808.29334779,36723,713.03
Meat, fresh, chilled or
    frozen—
    Beef—
        Bone intonne326615,7644,826.891116343,2183,871.46
        Bonelesstonne2257361,040,0844,607.532719411,208,5114,444.02
Vealtonne706435,7385,058.91605932,1165,300.21
Lamb—
    Carcassestonne167194398,8622,385.62128765330,9502,570.19
    Cuts, bone and bonelesstonne137566558,8224,062.20151593646,8274,266.88
Muttontonne67320135,7802,016.9388311171,8181,945.59
Other meat and edible offalstonne39681128,1103,228.5144091146,8453,330.48
Milk and cream—
    Condensed and evaporatedtonne6704,0416,032.365373,6236,749.09
    Skim-milk powdertonne153399485,3913,164.23148726366,5712,624.75
Other driedtonne152173493,1893,240.97253465717,5752,831.06
Buttertonne217273710,5133,270.14176149542,1443,077.75
Cheesetonne90414341,0193,771.73102935357,9633,477.56
Fish, fresh, chilled or
    frozen—
    Orange roughytonne13996161,29311,524.3814985135,5179,043.56
    Snappertonne592149,6408,383.13601146,3207,706.40
    Hokitonne2385043,7281,833.463633992,5252,546.17
Surimi*tonne1695950,1832,959.01991623,7892,399.11
    Othertonne75968198,8202,617.1593651239,3322,555.47
Crayfishtonne233082,53835,430.08226283,02136,709.32
Squidtonne3155558,6451,858.472304946,8582,033.03
Musselstonne606425,3464,179.44848934,8544,105.68
Barley, unmilledtonne328558,353254.23308596,088197.28
Maize, unmilledtonne1576073,878.061283742,923.26
Fruit and vegetables—
    Apples, fresh, whole fruittonne201207212,5531,056.39205744297,1251,444.15
    Kiwifruittonne237471539,1242,270.27250234519,6792,076.77
Peas—
    Dry, including splittonne2957620,660698.762729420,222740.91
    Frozentonne1540024,2571,575.151625421,4481,319.57
Onions, freshtonne6980737,650539.345535929,557533.91
Asparagus, fresh, chilled, frozen or preparedtonne548027,0774,490.96543225,2984,656.78
Squash and similar edible gourdstonne6040137,451620.034539637,912835.14
Vegetables, frozen excluding peas and asparagustonne1889031,9451,691.082592739,3791,518.85
Chocolate and preparationstonne1466559,6004,064.121433348,3723,399.99
Meal of meat, fish, etc.tonne8155335,651437.1510715245,330423.04
Margarine and shorteningtonne16932,4881,469.5718262,7431,502.00
Skins and furskins, undressed
    Sheep and lamb skins in fleece(000)12286,8645,588.098304,1314,977.49
    Lamb pelts(000)20276241,45811,908.7825313205,4918,118.13
    Sheep pelts(000)10188126,33312,399.60964680,0528,298.80
    Opossum skins(000)7013,2484,631.697623,6764,823.77
Sawlogs and veneer logs, conifercu. metre2028361197,74097.493189739322,451101.09
Douglas fir, sawn, sliced, peeled, planed, sanded, etc.cu. metre7166422,460313.418193725,834315.29
Pinus Radiata, sawn, sliced, peeled, planed, sanded, etc.cu. metre423188137,700325.39532184170,658320.68
Wood pulp—
    Mechanicaltonne303331147,466486.15343494156,919456.83
    Chemical, not dissolving gradestonne257758239,686929.89283082234,025826.70
Wood chips BDU
 1089.6 kg24380744,714183.4026966346,127171.06
Fibreboardcu. metre240415109,567455.74285976128,068447.83
Wool—
    Greasytonne68988418,3136,063.5754626261,2774,782.98
    Slipetonne733735,3474,817.62535616,7423,125.96
    Scouredtonne132802862,2156,492.49143218684,4334,778.95
Iron ore and concentratestonne      
 (000)122321,06817,222.25111620,56818,430.79
Sausage casings, naturalhank (000)6112105,46517,254.867016111,50815,893.44
Clover and grass seedstonne1212029,2042,409.551189928,9122,429.70
Crude petroleumtonne659949158,903240.78921251283,526307.76
Ureatonne7403814,420194.769580923,292243.11
Tallow, inedibletonne10285954,583530.6510157546,282455.65
Caseintonne43901334,4177,617.4850072292,0095,831.73
Caseinatestonne12175104,6988,599.2816372112,9116,896.58
Newsprinttonne355223178,751503.21325703192,161589.99
Kraft paper and kraft cardboardtonne8537176,361894.467592964,315847.04
Yarn of wool or hairtonne679293,73613,801.44615675,90012,330.24
Iron or steel—
    Bars, rods, angles, etc.tonne82136,073739.471645010,295625.86
    Universals, plates, sheets, hoop and striptonne243231203,156835.24429280289,335674.00
Aluminium, unwroughttonne230554628,7182,726.99240941657,6892,729.67
Aluminium foiltonne674631,1684,620.01769138,1164,956.15
Finished structural parts and structures, n.e.s., of metaltonne477720,4334,277.53570125,0834,400.07
Domestic electric refrigerators and freezersno.7364539,245532.898960245,398506.67

Loading boneless beef bound for Los Angeles.

Exports of dairy products decreased marginally (by $52 million) in 1990–91 from the previous year to $2,015 million. The United Kingdom continued as the major destination for butter, with 39.6 percent of the $542 million export value. Other major markets were the Soviet Union, $66 million (12 percent), Iran and Algeria, both about $28 million. Japan continued as the major customer for cheese with a 31 percent market share at $110 million. Australia, at $48 million has moved to second place ahead of the United Kingdom and the United States of America ($266.3 million), Japan ($217.4 million), Algeria ($173.9 million) and Malaysia ($162.8 million).

The value of wool exports declined from $1,315.9 million in 1989–90 to $962.5 million in 1990–91. Both figures were down considerably from the 1988–89 figure of $1,795.9. Japan took over from the Soviet Union as the major destination, with the Peoples Republic of China and the United Kingdom ranking as the second and third most important destinations. The Soviet Union dropped to 11th place, just behind the United States of America.

Kiwifruit exports at $519.7 million were 3.6 percent down from the 1989–90 value. However, total 1990–91 fruit exports of $873.6 were up from the previous year by 9.2 percent. The European Community is the major market.

Forestry products increased by 14.6 percent over 1989–90 to $1,559.9 million. Australia down to 31.0 percent was the major market, closely followed by Japan (29.1 percent), Korea (10.6 percent) and Taiwan (5.9 percent) all of which increased their share. The major products were wood pulp ($390.9 million), logs, timber and woodchips ($565.1 million) and paper and paperboard ($363.5 million).

Fish exports, including crustaceans and molluscs increased from the 1989–90 figure of $706.3 million to $748.4. The most important markets are Japan (34.6 percent) and the United States of America (29.1 percent).

Other significant exports in 1990–91 were hides, skins and leather ($559.1 million), aluminium ($777.9 million), petroleum products ($568.0 million), steel and steel articles ($428.8 million) and casein and caseinates ($404.9 million).

Imports

Australia was New Zealand's principal supplier with $2,876.8 million (v.f.d.) worth of goods imported during 1990–91. The United States was the next largest supplier with $2,512.6 million, followed by Japan ($2,101.6 million) and the United Kingdom ($992.8 million).

Machinery and transport equipment were the largest group of commodities imported in the 1990–91 trade year, with $5,774.0 million (v.f.d.). Machinery and mechanical appliances accounted for $2,047.3 million, and $1,308.6 million was spent on vehicle purchases and $725.0 million for electrical machinery and equipment.

Live animals, foods, fats, beverages and tobacco imports were $883.5 million. Textile yarn, fabrics and made-up articles, etc., amounted to $591.6 and iron and steel imports were valued at $308.5 million.

Imports of mineral fuels, lubricants and related materials totalled $1,169.1 million, or 8.3 percent of total imports.

Table 22.6. PRINCIPAL COMMODITIES IMPORTED, 1990-91*

CommodityYear ended June 1990Year ended June 1991
Unit of quantityQuantityc.i.f.Average price $ per unit of quantityQuantityc.i.f.Average price $ per unit of quantity
Wheattonne17632463,785361.7517449650,974292.12
Ricetonne1403213,206941.121604614,490903.02
Oranges, fresh or driedtonne1169315,5561,330.39878711,0951,262.75
Bananas, freshtonne4941844,193894.275301047,612898.17
Salmon, canned or in jarstonne149814,0799,396.01153113,1618,598.54
Sugar, not refinedtonne15324987,085568.2613515670,020518.06
Coffee, rawtonne674718,1552,690.89704119,3162,743.35
Cocoa paste and cocoa buttertonne436422,3464,822.20508819,0973,753.41
Teatonne530017,0883,224.43508615,6933,085.41
Fruit and vegetable juiceslitre (000)978825,2642,581.01793122,1762,796.03
Beerlitre (000)891014,9241.681362521,6011.59
Winelitre (000)798349,3206.181132859,1455.22
Tobacco, unmanufacturedtonne328624,0087,305.30304323,7127,792.61
Crude rubber, including synthetic and reclaimedtonne2014536,9901,836.241739031,7861,827.85
Natural calcium phosphatetonne70861886,970122.7354368864,238118.15
Fertilisers—
    Nitrogenoustonne7605017,750233.39503559,714192.92
    Phosphatictonne9128419,893217.922951910,478354.96
    Potassictonne15234135,288231.6413796529,815216.11
    Othertonne177369,326525.813190515,076472.55
Sulphur, other than sublimed, precipitatedtonne15672233,487213.678377520,716247.28
Aluminium oxidetonne507670219,613432.59492830238,984484.92
Petroleum coketonne8280133,201400.9710493039,557361.48
Crude petroleumtonne3167626748,039236.153251352965,934293.70
Motor spiritlitre (000)28702583,938292.44426646159,421373.66
Distillate fuelslitre (000)224356,221277.31218816,708306.58
Polyethelene, in primary formstonne69540117,4641,689.1666101121,7701,842.17
Polypropylene, in primary formstonne1530627,0191,765.301136821,2721,871.12
Polystyrene and its co-polymers, in primary formstonne1470936,8392,504.461526636,3442,380.67
Polyvinyl chloride, in primary formstonne3237048,5811,500.822984342,1411,412.10
Paper and paperboard manufactures
excluding hardwoods,
softwoods, wallpaper,
lincrusta and window
transparencies
tonne93874265,7762,831.20105807266,4272,518.06
Textile yarn and threadtonne12598115,9269,201.701131497,5608,623.09
Knitted or crocheted fabricsm2 (000)2257057,4682,546.251985949,0542,470.03
Shoes and other footwearpairs664568271,25010.72692181186,30412.47
Iron and steel—
    Bars and rodstonne3576250,6511,416.352438038,0751,561.72
    Angles, shapes and sectionstonne2805027,273972.312239321,397979.67
    Universals, plates,
sheets, hoop and strip
tonne131894218,7971,658.8888851159,3291,793.22
    Wiretonne1747430,8641,766.231314825,5011,939.51
    Tubes, pipes and fittingstonne2487952,2982,102.092544882,2903,323.62
    Steel structures containers, cables, etc.tonne2069893,2084,503.321725980,7184,676.96
Non-electric stoves, ranges, etc.no.16306418,658114.4412044914,810122.96
Copper, copper alloys, articles of coppertonne1619399,5196,145.941507490,9756,035.36
Aluminium and articles oftonne31393171,4065,459.9331346171,5445,472.54
Unwrought zinctonne2555080,0983,135.001742945,9772,639.18
Rubber tyres, pneumatic, new—
    For motor carsno.40071924,77161.8249732530,29360.91
    For buses or trucksno.13962733,660241.0711134525,680230.64
    For motor cyclesno.747413,05940.93721843,06742.49
    Other tyresno.18369011,91864.8813145713,347101.53
Glass—cast drawn, floatm2 (000)338553,60015,833.42308944,00414,245.70
Internal combustion engines not aircraftno.11323764,092566.008925053,974604.75
Tractorsno.404965,97516,294.24444160,06413,524.97
Electric motors and generatorsno.81383838,33147.1078046737,95048.62
Electro-mechanical toolsno.63240527,13276.8825747723,88392.76
Electro-mechanical domestic appliancesno.18139830,72948.5940377827,17267.29
Domestic sewing machinesno.2805911,933425.293172513,849436.53
Typewriting, calculating and accounting machinesno.57992240,30569.0342938831,01372.23
Photocopying apparatusno.1089841,8363,838.901020137,0183,628.88
Record/cassette players,
without recorders
no.18139824,943137.5019347419,748107.63
Magnetic tape recordersno.9449315,457163.589552212,705133.01
Radio/telephone
broadcast—receivers
no.94846464,87568.4081394760,95474.89
Television receiversno.19373089,736463.2022718790,880400.02
Video recording or
reproducing apparatus
no.13163660,910462.7210297344,660433.71
Microwave ovensno.10731329,790277.606339217,885279.49
Motorcars—assembled
and unassembled
no.1604871,270,0607,913.79125467933,0287,436.44
Trucks, buses, vans etc.,
assembled and unassembled
no.25115275,29910,961.5424580274,81211,180.30
Motor cycles, including side carsno.975230,1703,093.71820827,6173,364.63
Bicyclesno.15534420,471131.7810446215,387147.29

ORIGIN OF IMPORTS
Proportion of total imports coming from different countries

Table 22.7. TRADE BY STANDARD INTERNATIONAL CLASSIFICATIONS, 1990-91*

Section and divisionYear ended June 1991
Exports of NZ 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 food178,90128,898
    01 Meat and meat preparations2,594,46832,328
    02 Dairy products and birds' eggs2,018,11015,938
    03 Fish, crustaceans, and molluscs, and preparations thereof789,55056,493
    04 Cereals and cereal preparations39,64597,856
    05 Vegetables and fruit1,153,081169,257
    06 Sugar, sugar preparations, and honey42,238102,672
    07 Coffee, tea, cocoa, spices, and manufactures thereof49,25892,538
    08 Feeding stuff for animals (not including unmilled cereals)69,00128,615
    09 Miscellaneous edible products and preparations46,22995,412
            Total, section 06,980,480720,008
1 Beverages and tobacco
    11 Beverages64,139138,770
    12 Tobacco and tobacco manufactures2,51424,747
            Total, section 166,653163,517
2 Crude materials, inedible, except fuels
    21 Hides, skins, and furskins, raw390,93213,240
    22 Oil seeds and oleaginous fruit3,52222,223
    23 Crude rubber (including synthetic and reclaimed)1,26127,747
    24 Cork and wood606,50433,521
    25 Pulp and waste paper398,0109,573
    26 Textile fibres (other than wool tops) and their wastes974,06925,256
    27 Crude fertilisers and crude minerals other than coal, etc.23,05276,069
    28 Metalliferous ores and metal scrap70,538232,494
    29 Crude animal and vegetable materials, n.e.s.296,07234,129
            Total, section 22,763,961474,252
3 Mineral fuels, lubricants, and related materials
    32 Coal, coke, and briquettes41,5802,199
    33 Petroleum, petroleum products, and related materials520,9641,166,565
    34 Gas, natural and manufactured5,270325
            Total, section 3567,8141,169,089
4 Animal and vegetable oils, fats, and waxes
    41 Animal oils and fats54,981667
    42 Fixed vegetable oils and fats92938,180
    43 Animal and vegetable oils and fats, processed, and waxes of animal or vegetable origin36,5705,574
            Total, section 492,47944,421
5 Chemicals and related products, n.e.s
    51 Organic chemicals155,892180,838
    52 Inorganic chemicals3,651150,789
    53 Dyeing, tanning, and colouring materials13,76987,049
    54 Medicinal and pharmaceutical products58,259410,807
    55 Essential oils and perfumes, etc.73,483134,296
    56 Fertilisers, manufactured24,19552,221
    57 Explosives and pyrotechnic products26,524286,925
    58 Artificial resins and plastic materials, and cellulose esters and ethers28,796149,904
    59 Chemical materials and products, n.e.s.480,625203,506
            Total, section 5865,1931,656,336
6 Manufactured goods classified chiefly by material
    61 Leather, leather manufactures, n.e.s., and dressed furskins193,46123,199
    62 Rubber manufactures, n.e.s.50,280134,446
    63 Cork and wood manufactures (excluding furniture)198,68127,970
    64 Paper, paperboard, and articles of paper pulp, of paper, or of paperboard354,417325,158
    65 Textile yarn, fabrics, made-up articles, n.e.s., and related products202,306591,630
    66 Non-metallic mineral manufactures, n.e.s.43,889204,697
    67 Iron and steel324,599308,482
    68 Non-ferrous metals798,014239,840
    69 Manufactures of metal, n.e.s.171,408341,747
            Total, section 62,337,0552,197,169
7 Machinery and transport equipment
    71 Power generating machinery and equipment17,584249,904
    72 Machinery specialised for particular industries121,814556,679
    73 Metalworking machinery21,77548,715
    74 General industrial machinery and equipment, n.e.s., and machine parts, n.e.s.170,110615,774
    75 Office machines and automatic data processing equipment9,155714,480
    76 Telecommunications, sound recording and reproducing apparatus and equipment34,790717,833
    77 Electrical machinery, apparatus and appliances, n.e.s., and electrical parts thereof233,183870,419
    78 Road vehicles (including air-cushion vehicles)54,0961,250,999
    79 Other transport equipment17,187749,178
            Total, section 7680,4945,773,980
8 Miscellaneous manufactured articles
    81 Sanitary, plumbing, heating, etc., fixtures and fittings, n.e.s.10,99844,205
    82 Furniture and parts thereof44,71763,417
    83 Travel goods, handbags, and similar containers2,52530,065
    84 Articles of apparel and clothing accessories108,828245,486
    85 Footwear32,22097,329
    87 Professional, scientific, and controlling instruments and apparatus, n.e.s61,572294,880
    88 Photographic apparatus, optical goods, watches and clocks7,629197,805
    89 Miscellaneous manufactured articles, n.e.s.198,019874,434
            Total, section 8466,5091,847,619
9 Commodities and transactions not classified elsewhere in the S.I.T.C.
            Total, section 9326,7274,595
            Total New Zealand produce exports15,147,365 
            Re-exports703,075 
            Grand total, merchandise trade15,850,44014,050,965

Award winning plastics exports.

Table 22.8. TRADE BY HARMONISED SYSTEM CLASSIFICATION, 1990-91*

HS ChapterYear ended June 1991
Exports of NZ
produce f.o.b.
Imports v.f.d.

*Year ended 30 June.

         $(000)
01 Animals live178,90128,898
02 Meat and edible meat offal2,588,26926,816
03 Fish and crustaceans, molluscs, and other aquatic invertebrates748,20116,468
04 Dairy produce; birds' eggs; natural honey; edible products of animal
origin, not elsewhere specified or included
2,014,85113,599
05 Animal originated products not elsewhere specified or included208,45815,225
06 Trees and other plants, live; bulbs, roots and the like; cut flowers and
ornamental foliage
48,3312,763
07 Vegetables and certain roots and tubers, edible195,73417,749
08 Fruit and nuts, edible; peel of citrus fruit or melons873,62993,236
09 Coffee, tea, mate and spices19935,762
10 Cereals6,71557,769
11 Products of the milling industry, malt; starches; inulin; wheat gluten7,19512,573
12 Oil seeds and oleaginous fruit; miscellaneous grains, seeds and fruit,
industrial or medicinal plants; straw and fodder
43,44832,436
13 Lac; gums, resins and other vegetable saps and extracts1,9044,922
14 Vegetable plaiting materials; vegetable products not elsewhere specified
or included
61,381
15 Animal or vegetable fats and oils and their cleavage products; prepared
animal fats; animal or vegetable waxes
96,17946,734
16 Meat, fish or crustaceans, molluscs or other aquatic invertebrates;
preparations thereof
65,20045,886
17 Sugars and sugar confectionery36,195102,075
18 Cocoa and cocoa preparations48,89852,780
19 Preparations of cereals, flour, starch or milk; pastrycooks' products28,59450,236
20 Preparations of vegetables, fruit, nuts or other parts of plants81,58657,710
21 Miscellaneous edible preparations31,39985,218
22 Beverages, spirits and vinegar66,585139,161
23 Food industries, residues and wastes thereof; prepared animal fodder68,92328,613
24 Tobacco and manufactured tobacco substitutes2,51424,747
25 Salt; sulphur; earths, stone; plastering materials, lime and cement34,36576,422
26 Ores, slag and ash24,2072,329
27 Mineral fuels, oils and products of their distillation; bituminous
substances; mineral waxes
568,0001,169,198
28 Inorganic chemicals; organic and inorganic compounds of precious
metals; of rare earth metals, of radio-active elements and of isotopes
3,652374,160
29 Organic chemicals147,752194,170
30 Pharmaceutical products55,995387,186
31 Fertilisers24,33852,372
32 Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments
and other colouring matter, paints, varnishes; putty, other mastics; inks
13,67687,559
33 Essential oils and resinoids; perfumery, cosmetic or toilet preparations51,58992,879
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 plaster
23,26353,701
35 Albuminoidal substances; modified starches; glues; enzymes465,42922,105
36 Explosives; pyrotechnic products; matches, pyrophoric alloys; certain
combustible preparations
9777,305
37 Photographic or cinematographic goods92645,075
38 Chemical products n.e.s.21,551174,097
39 Plastics and articles thereof131,171563,241
40 Rubber and articles thereof53,816166,004
41 Raw hides and skins (other than furskins) and leather559,07931,409
42 Articles of leather, saddlery and harness; travel goods, handbags and
similar containers; articles of animal gut (other than silk-worm gut)
14,48040,399
43 Furskins and artificial fur, manufactures thereof49,7033,032
44 Wood and articles of wood; wood charcoal798,37355,146
45 Cork and articles of cork6,8126,346
46 Manufactures of straw, esparto or other plaiting materials; basketware
and wickerwork
373,219
47 Pulp of wood or of other fibrous cellulosic material; waste and scrap of
paper or paperboard; paper and paperboard and articles thereof
398,0109,573
48 Paper and paperboard; articles of paper pulp, of paper or paperboard363,505329,615
49 Printed books, newspapers, pictures and other products of the printing
industry, manuscripts, typescripts and plans
34,285251,708
50 Silk173,382
51 Wool, fine or coarse animal hair, horsehair yarn and woven fabric1,050,95220,769
52 Cotton2,55996,118
53 Vegetable textile fibres; paper yarn and woven fabrics of paper yarn19112,324
54 Man-made filaments1,45275,559
55 Man-made staple fibres1,823129,362
56 Wadding, felt and nonwovens, special yarns; twine, cordage, ropes and
cables and articles thereof
10,42234,755
57 Carpets and other textile floor coverings70,60238,875
58 Fabrics; special woven fabrics, tufted textile fabrics, lace, tapestries,
trimmings, embroidery
4,47824,387
59 Textile fabrics; impregnated, coated, covered or laminated; textile
articles of a kind suitable for industrial use
3,30760,865
60 Fabrics; knitted or crocheted12,20845,294
61 Apparel and clothing accessories; knitted or crocheted27,945102,428
62 Apparel and clothing accessories; not knitted or crocheted38,287121,820
63 Textiles, made up articles; sets; worn clothing and worn textile articles; rags19,74766,009
64 Footwear, gaiters and the like; parts of such articles32,22097,329
65 Headgear and parts thereof4,0406,969
66 Umbrellas, sun umbrellas, walking-sticks, seat sticks, whips, riding crops; and parts thereof892,928
67 Feathers and down, prepared; and articles made of feather or of down;
artificial flowers; articles of human hair
112,738
68 Stone, plaster, cement, asbestos, mica or similar materials; articles
thereof
6,29034,590
69 Ceramic products1,45959,398
70 Glass and glassware23,188101,023
71 Natural or cultured pearls, precious, semi-precious stones, precious
metals, metals clad with precious metal, articles thereof; imitation jewellery; coin
107,80964,593
72 Iron and steel332,944228,892
73 Iron or steel articles95,906215,878
74 Copper and articles thereof70,53189,450
75 Nickel and articles thereof2442,513
76 Aluminium and articles thereof777,876162,898
78 Lead and articles thereof3,0054,124
79 Zinc and articles thereof75246,232
80 Tin; articles thereof3362,607
81 Metals; n.e.s., cermets and articles thereof246,514
82 Tools, implements, cutlery, spoons and forks, of base metal; parts
thereof, of base metal
27,37887,967
83 Metal; miscellaneous products of base metal31,09058,441
84 Nuclear reactors, boilers, machinery and mechanical appliances; parts
thereof
392,8892,047,348
85 Electrical machinery and equipment and parts thereof; sound recorders
and reproducers, television image and sound recorders and
reproducers parts and accessories of such articles
218,157172,590
86 Railway, tramway locomotives, rolling stock, parts thereof; railway,
tramway, track fixtures and fittings and parts; mechanical (and electro-mechanical) traffic signalling equipment of all kinds
1346,523
87 Vehicles; other than railway or tramway rolling stock, and parts and
accessories thereof
54,5741,308,589
88 Aircraft, spacecraft and parts thereof6,001631,311
89 Ships, boats and floating structures11,344112,629
90 Optical, photographic, cinematographic, measuring, checking, medical or
surgical instruments and apparatus; parts and accessories
68,589464,072
91 Clocks and watches and parts thereof13930,684
92 Musical instruments; parts and accessories of such articles22616,705
93 Arms and ammunition; parts and accessories thereof92047,160
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 buildings
55,832100,379
95 Toys, games and sports requisites; parts and accessories thereof17,970121,044
96 Miscellaneous manufactured articles9,00043,538
97 Works of art, collectors' pieces and antiques265,50647,933
Total, New Zealand produce exports15,147,365 
Re-exports703,075 
Grand total, merchandise trade15,850,44014,050,965

EXPORTS PER CAPITA
At constant values

22.4 Overseas trade indexes

The overseas trade indexes measure changes in the levels of prices and volume of New Zealand's imports and exports. The index numbers which reflect the percentage rise or fall of price and volume levels, are expressed on a base of the 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).

Import and export price indexes

Table 22.9 provides a summary of the Import Price Index, and 22.10 of the Export Price Index.

Table 22.9. IMPORT PRICE INDEXES*

    Non-food manufactured goods
 Food beveragesPetroleum and petroleum productsNon-fuel crude materialsPlastics and plastic articlesTextile yarn, fabrics related productsIron and steel†Non-electrical machineryElectrical machinery and apparatusTransport-equipmentTotal‡Total imports‡

*Base: year ended June 1989 (= 1000).

Excludes manufactured articles of iron and steel.

Includes commodities not listed.

June year
19806101010489 529437479758375507533
1985113521481068845100779690912238179601046
19861033186996879297072093911718429411002
19879871223913787996736100812281026990999
198890510998788419607049681030994937941
198910001000100010001000100010001000100010001000
19901052126910148331025105210421006102710171034
1991P1038157010328571047999984988106410041043
Quarterly
1989 Sep106112829818931054106910541024101310301044
Dec10521245984818101810701050984104010171031
1990 Mar1023127110378031001103010091032102010071027
Jun107112761056818102510371053991102910131035
Sep10781238104481210311012102395810069891013
Dec10322059104484310619671019994108710121082
1991 MarP10151625102791110529869831019111910251062
JunP1026132410108741045103390198210659901014

Table 22.1. EXPORT PRICE INDEXES*

 All pastoral and dairy productsFish and fish preparationsFood and beveragesForestry productsNon-fuel crude materialsNonfood manufactured goodsTotal exports†
Dairy productsMeat, wool and by-productsAluminiumTotal†
ButterCheeseTotal†MeatWoolTotal†Total†  

*Base: year ended June 1989 (= 1000).

Includes commodities not listed.

1980580428424661524582557369523413496405406495
198511448408501032742888901951929842780715792866
1986983813765900718813832912849774750616752809
19879197797579248078848851142892850856708802864
1988870756741874916936901962846888978812868888
198910001000100010001000100010001000100010001000100010001000
199012011067116411899491098110610331130102910278649881068
1991P11841002103911926979751003100310879998488569591008
Quarterly
1989—
Mar10501037104710409921008103698910591016992108310231030
Jun12751158122410459761032105210431060997101599710211042
Sep129811181198113998310891103106611181046104893910161073
Dec12241058119411989881102111410861144103410378939861073
1990—
Mar12251043115412129161100111710071150101610168129721071
Jun1124104711331207909110010939571113102510138229801056
Sep109010711054125477910631054984110910109238509661032
Dec1292983106312127721003101698410879908799579691034
1991—
MarP11809771037117764994298810171088999810828948997
JunP11139841005114762392597110361068999802786952976

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 total export price index to the total 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. The Overseas Terms of Trade Index is expressed on a base of 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.

VOLUME OF EXPORTS

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 index†Percentage change from preceding period

*Base: year ended June 1989 (= 1000).

Base: average of ten years ended June 1989 (= 1000).

June year
1980495 533 1056-4.3
1985866 1046 942-2.0
1986809-6.61002-4.2919-2.5
19878646.8999-0.39857.2
19888882.8941-5.810749.1
1989100012.610006.211396.0
199010686.810343.411763.3
1991P1008-5.610430.91100-6.5
Quarterly
1989 Sep10733.010441.411701.5
Dec1073-1031-1.211851.3
1990 Mar1071-0.21027-0.411870.2
Jun1056-1.410350.81162-2.1
Sep1032-2.31013-2.11160-0.2
Dec10340.210826.81088-6.2
1991 MarP997-3.61062-1.81069-1.7
JunP976-2.11014-4.510962.5

TERMS OF TRADE INDEX
Based on ratio of exports to imports

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 expressed on a base of the year ended June 1989 (= 1000). In tables 22.12 and 22.13 the quarterly index numbers are given as annual equivalents.

Table 22.12. IMPORT VOLUME INDEXES*

 Food and beveragesPetroleum and petroleum productsNonfuel 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
198051115341038 10581977731230926677777
1985694116811571058119424441068535968918954
1986664109910421028105821501081629968904917
1987844936943113211791880941723942943945
198893298610671093101220891015824904986987
198910001000100010001000100010001000100010001000
199010911194116012971074123811121164160612411221
1991P109012431045122097394711761405119811961176
Quarterly
1989 Sep10581274120213001135126710681126129211881183
Dec12871042113814711114130111951385209114141368
1990 Mar993131811951226101413681017998151411611155
Jun10261143110511901032101711661148152812011177
Sep1107128112161327107587711771617144813411309
Dec11141322877135098999713431475144713031256
1991 MarP10741204115211618899811091142190310681074
JunP1064116493410439409321094110799510711067

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-productsAluminiumTotal†
ButterCheeseTotalMeatWoolTotal†Total†  

*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
19801144764901742981803731430672880874463684706
198510239579348881097960897660852741934881985888
1986101210291003791991857867702860758863810956874
1987102011121037100710761018992782979714949815923948
1988100411841034948985928958789982879908898928945
198910001000100010001000100010001000100010001000100010001000
1990971101795080677279286886791310878449731043943
1991P7521137103789876985693996210041276934102411491034
Quarterly
1989 Sep24810875028226577627311031786891734743976831
Dec12576161054563844651744855779106680912251078874
1990 Mar13011037104387396291993779590312271015895988986
Jun107713291201966623837106278811841163819103011291082
Sep33210268577775196908161023919127476510261145962
Dec87493210017678437598251093898131690710551152975
1991 MarP9481227123195383994097989210181169990100510671031
JunP85313631058109687410351137841118113471075101012331168

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.

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. 1).

Chapter 23. Prices

Supermarket trolleys.

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 to the sector as a whole. Changes in the importance of individual items to a sector or the introduction of new items or the deletion of items which have no future significance require periodic revisions of weights.

23.1 Consumer prices

Consumer prices were, on average, 6.1 percent higher during 1990 than they were during 1989. In comparison consumer prices were 5.7 percent higher during 1989 than they were during 1988. Although price increases for 1990 were recorded in all groups of the Consumers Price Index (CPI), the major contributions came from housing; transport; food; and recreation, education and generalised credit. The method from which these figures are calculated is based on the ‘annual average’ of the All Groups Consumers Price Index.

The Consumers Price Index measures changes in the level of prices of goods and services purchased by private New Zealand households. It is the best available measure of the effect of changes in retail prices on the average household budget.

The weighting pattern incorporated into the Consumers Price Index is based on the expenditures of the population as a whole, as measured by the Department of Statistics' Household Expenditure and Income Survey (HEIS). 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 five-yearly in order to bring the weighting pattern up-to-date and to ensure that the index remains a timely and accurate statistical measure. The revision exercise is primarily concerned with practical matters, such as updating the index commodity regimen and weights and reviewing geographic, population and retail outlet coverage.

The last revision of the Consumers Price Index took place in 1988, the current base of the index being the December 1988 quarter (= 1000). The next revision is scheduled for 1993. The 1991 Consumers Price Index Revision Advisory Committee has recommended that the basic concepts and calculation methodology of the index remain unchanged (for a detailed account of the committee's recommendations refer to the ‘Report on the Consumers Price Index Revision Advisory Committee, November 1991’.)

Index regimen. The current structure of the index regimen was established in 1988 and incorporates additional commodity groups and ‘splits’ of some subgroups. The number of published regimen items (excluding fresh fruit and vegetables) is 347.

Commodity and expenditure weighting. The regimen of the Consumers Price Index was updated at the 1988 revision to reflect the range of consumer goods and services now available in New Zealand, as well as changes in emphasis in household expenditure patterns.

The source of the commodity weights is the average expenditure of households from the Department of Statistics' Household Income and Expenditure Survey (HEIS), 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.

CONSUMERS PRICE INDEX - ALL GROUPS
Long-termed linked series

The base weights represent expenditure allocated from similar commodities as well as expenditure on any particular commodity.

Certain types of expenditure are, for various reasons, excluded from the index:

  • Consumption from own production, goods received as income-in-kind and goods and services supplied free of charge are outside the scope of the index.

  • Direct tax and commodities that represent savings and investment are also considered to be outside the scope of the index, for example, shares and payments to superannuation funds.

  • Goods and services for which prices cannot be satisfactorily measured, nor can the price movements be represented by those of other commodities which could be priced, for example, works of art, court fines, catering charges, and pets.

Price Surveys. Retail outlets and organisations are selected for Consumers Price Index surveys so that they correspond to the buying patterns of private households as closely as possible. At the time of a revision the samples of outlets are updated to reflect changes in market trends and household buying behaviour. For example, the increasing significance of discount warehouses or ‘bulk barns’ was reflected at the last revision.

The deregulation of the economy, leading to the abandoning of scales of fees for professional services, the removal or relaxation of price controls, and the extension of the user-pays system necessitated the introduction of new price surveys and/or the expansion of existing ones.

The extension of user-pays in the education and health fields, particularly for state primary and secondary schooling, university and polytechnic study, general practitioner and medical specialist services, and public hospital treatment, will directly impact on the Consumers Price Index. The user-pays policy changes being proposed may result in a more significant shift in household expenditure patterns than has been observed in the past decade. This could arise as a result of households adjusting their present patterns of expenditure to accommodate the extra expenditure incurred in financing their purchases of public education and health services, with a consequent reduction in the proportion of their budgets spent on more discretionary items. All relevant price surveys, therefore, will have to be modified to take into account any changes in the availability of services.

INFLATION
Annual percentage change in Consumers Price Index

CONSUMERS PRICE INDEX
Percentage change by quarter

Prices are surveyed by specially trained staff in 15 urban areas throughout New Zealand. Postal surveys are also 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.

Geographic coverage and published series. The urban areas in which prices are surveyed have been reduced in number from 20 to 15. 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 15 urban areas combined (Whangarei, Auckland, Hamilton, Tauranga, Rotorua, Napier-Hastings, New Plymouth, Wanganui, Palmerston North, Wellington, Nelson, Christchurch, Timaru, Dunedin, Invercargill).

  • The North Island urban areas combined and the South Island urban areas combined.

Individual index numbers are compiled for the food group and subgroups at monthly intervals on the base December month 1988 (= 1000) and for all groups and subgroups (including food) at quarterly intervals on the base December quarter 1988 (= 1000).

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 23.1 shows all groups index numbers of individual groups and subgroups for all urban areas combined. Table 23.2 presents the data contained in Table 23.1 broken down to its component sub-series. The expenditure weights are supplied for the latest calculation base of the index, December quarter 1988 (= 1000).

Table 23.1. CONSUMERS PRICE INDEX—ALL GROUPS—ALL URBAN AREAS*

PeriodFoodHousingHousehold operationApparelTransportationMiscellaneousTobacco products and alcoholic drinksPersonal and health care

*Base: Weighted average all urban areas, December quarter 1988 (= 1000).

December year annual average—
    1981514358534494540424398 
    1982578446607553622492465 
    1983601507628599660532512 
    1984636544644630719563540 
    1985730638727702838654646 
    1986813743834796901756740 
    19879218779579251003906898 
    19889789819839801013976972 
    198910631034102410131016 10811078
    199011401106106310571051 11681157
Quarter ended—
    1988-30 Sep9819879869821003 987 
31 Dec10001000100010001000 10001000
    1989-31 Mar1007101210039991008 10291036
30 Jun10301024100310061010 10571053
30 Sep10981047103610181019 11091105
31 Dec11161054105210311027 11311118
    1990-31 Mar11161074105810351033 11461136
30 Jun11391103106010601038 11631153
30 Sep11541121106310561044 11781168
31 Dec11531126107210761087 11841170
    1991-31 Mar11531132108910811076 11991220
30 Jun11501130108310951063 12101254

Shelved goods.

Table 23.2. CONSUMERS PRICE INDEX—SUBGROUPS—ALL URBAN AREAS COMBINED*

PeriodFoodHousingHousehold operation
Fruit and vegetablesMeat, fish, and poultryGrocery food, soft drinks and confectioneryMeals away from home and takeaway foodRentalsHome ownershipEnergy/electricityFurnishings

*Base: Weighted average all urban areas, December quarter 1988 (= 1000)

Expenditure weights2.563.538.713.554.2017.312.776.82
Quarter ended—
1989-31 Mar963102710101012100710139971001
30 Jun9661052104010261023102410061007
30 Sep10961159108610671043104810291030
31 Dec10491242109710881052105510301043
1990-31 Mar9831230111411021063107610341044
30 Jun10391235113911171081110810401041
30 Sep10571250115411291099112610461038
31 Dec10441250115111381111113010731042
1991-31 Mar10161243115811511116113610991049
30 Jun9761233116511561120113211081047
PeriodApparelTransportationTobacco and alcoholic drinksPersonal and health careRecreation, education and generalised credit
ClothingFootwearPublic transportPrivate transportTobacco productsAlcoholic drinksPersonal goods and servicesHealth careStationery books, magazines and newspapersLeisure and recreationEducational child careGeneralised credit
Expenditure weights4.341.003.0312.362.637.092.742.161.754.410.500.36
Quarter ended—
1989-31 Mar99810001027100310761012100510751011101110331004
30 Jun100410111030100511681016101910961020102011341010
30 Sep101510311054101012291064106511551079104811441037
31 Dec1028104810681017x12621082108111651096105011601043
1990-31 Mar103210511069102412781097110011831107106913441050
30 Jun106110591102102313111109111612001120107217441069
30 Sep105710521129102313261123112712211138108017471081
31 Dec108010591159107013591119114412021159109117491109
1991-31 Mar108610591176105113751134115513021167110818051117
30 Jun110010711203102914101135116313701201111118331101

Table 23.3. CONSUMERS PRICE INDEX—REGIONAL MOVEMENTS

GroupNorth IslandSouth IslandUrban areas

*Base: Weighted average of urban areas, December 1988 quarter (= 1000).

Percentage changes December 1989 to December 1990 quarters*
Food3.04.33.5
Housing6.96.76.8
Household operation1.72.41.9
Apparel4.44.44.4
Transportation5.76.55.8
Tobacco products and alcoholic drinks4.74.64.7
Personal and health care4.16.24.7
Recreation, education and generalised credit8.27.58.0
All groups combined4.75.24.9

Geographical variation in prices.Table 23.3 shows movements in the general level of prices in all North Island urban areas combined, all South Island urban areas, and an aggregation of all urban areas combined. Comparison of each of the aggregates of urban areas above 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 cannot, therefore, be obtained from this table. The number of urban areas was reduced from 20 to 15 on 1 April 1991.

International comparisons.Table 23.4 provides a comparison of Consumers 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 23.4. INTERNATIONAL COMPARISON OF CONSUMER PRICE INDEXES*

YearNew ZealandAustraliaCanadaFrance (Paris)JapanUnited KingdomUnited States

*Base: December quarter 1980 (= 1000).

19861892157414281539112614091261
19872189170714911591112814671307
19882329183115511634113615391359
19892462197016291693116216591424
19902613211217071750119818171498

Average retail prices

Table 23.5 shows food prices in each of the years between December 1986 and December 1990. Prices other than for food are shown in Table 23.6 and are averages prevailing in the calendar quarter. These weighted average prices of selected items are used in the calculation of the Consumers Price Index and provide reliable 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.

CONSUMERS PRICE INDEX
International comparisons, percentage annual change by quarter

Table 23.5. RETAIL PRICES OF SELECTED FOOD ITEMS

CommodityUnitDec 1986Dec 1987Dec 1988Dec 1989Dec 1990
    $  
Apples, eatingkg2.702.823.383.513.06
Bananaskg2.262.332.352.562.43
Orangeskg1.841.972.542.702.43
Cabbagekg0.820.590.770.700.81
Carrotskg2.011.501.571.452.08
Onionskg1.611.372.001.441.69
Potatoeskg1.080.811.361.071.14
Peaches, canned425 g tin1.391.451.651.771.81
Peas, green frozen1 kg pkt2.382.542.462.532.42
Beef, blade steakkg7.137.017.3810.069.80
    corned silversidekg6.946.947.129.559.12
    prime rib rolledkg5.805.806.208.578.08
    porterhouse steakkg10.2210.1310.8715.1614.95
    rump steakkg8.838.739.2212.5812.58
Mincekg4.884.764.827.316.83
Pork, cut leg, shank endkg8.018.358.179.639.85
    loin chopskg8.548.968.8810.5110.95
Bacon, middle rasherskg13.8514.6015.0416.3216.88
Sausages, beefkg3.273.473.594.194.28
Fish, wet, filletedkg13.7515.5415.2714.3014.58
    salmon, canned210 g2.422.843.444.013.21
Chicken, deep frozen no. 8each7.387.797.987.737.92
Eggs, min. wght. 636 g /dozdozen2.232.452.382.822.97
Milk1 litre0.750.780.921.121.19
Butter, standard500 g1.621.651.771.831.82
Cheese, cheddarkg5.545.726.397.598.42
Biscuits, chocolate wheaten200 g1.471.551.611.751.86
Bread, white, sliced750 g1.221.291.401.631.72
Cake, block, light fruit450 g3.133.293.393.753.94
Breakfast flake biscuits1 kg pkt3.203.493.613.874.15
Flour, white1.5 kg pkt1.521.471.621.911.94
Rice, long grain white500 g0.710.700.800.900.86
Honey500 g2.031.961.902.412.47
Coffee, instant, refill100 g pkt4.684.543.993.283.25
Tea250 g pkt2.192.142.092.322.40
Margarine, table500 g1.861.861.911.972.04
Spaghetti in tomato sauce440 g tin1.251.261.271.351.42
Sugar, white1.5 kg pkt1.431.611.902.132.11
Ice cream, vanilla2 litre3.073.383.513.473.55
Chocolate, block250 g3.353.583.732.953.47
    meals, coffee and 2 sandwichestotal2.462.652.863.243.45
Takeaways, hamburgereach1.962.052.192.342.47
    meat pie, hoteach1.181.251.311.501.58

Table 23.6. RETAIL PRICES OF SELECTED ITEMS

CommodityUnit*Dec 1986Dec 1987Dec 1988Dec 1989Dec 1990

* Where the unit price changed following the 1988 CPI revision, earlier prices have been scaled to the new units.

  $$$$$
Paint, house, white acrylic4 litres57.5557.5061.7669.3670.34
Concrete blocks, 390 mm X 190 mm X 140 mmper 100149.98166.18195.53240.41259.97
Timber, dressed, 150 mm X 25 mm, finishing tanalised, radiata pinelineal metres377.78386.15429.21453.33481.89
Electric range, 4 elements, automaticeach995.461,043.72963.101,241.401,284.74
Television set, colour 53-65 cmeach1,616.861,532.711,395.231,479.341,310.07
Fork, table, stainless steel, med. qualityeach1.131.191.332.252.43
Detergent, dish washing990 mls2.482.302.722.823.09
Soap powder1 kg1.992.302.583.643.90
Electric light bulb100 watt0.951.001.031.031.10
Fly spray, aerosol300 ml can2.632.993.363.774.08
Battery, 1250 super heavy dutytwin pack2.182.442.562.772.92
Postage, letter, standard posteach0.300.400.400.400.40
Public broadcasting fee, colour television1 year71.5071.5071.50110.00110.00
Pantyhose, 15 denier, average size, medium qualitypair3.523.724.014.124.21
Shorts, casual sports, boys, medium qualitypair11.7213.0713.8113.7115.14
Wool, hand knitting, crepe, double knit50g3.553.813.954.164.44
Petrol, 96 octane10 litres8.369.208.829.1210.70
Cigarettes, filter tippedpkt of 202.732.853.214.054.35
Tobacco, cigarette50 g5.065.306.098.649.44
Beer in public bar, glass200 mls0.700.810.910.981.02
Toilet soap150 g0.620.710.710.740.77
Toilet paper, two ply4 rolls2.742.592.642.792.96
Hair cut, women's weteach22.9325.1825.9027.5829.31
man's dryeach8.8310.0110.6912.3612.94
Soluble aspirin,packet of 242.332.432.542.192.24
Envelopes, 146 mm X 89 mm, gummedpkt of 201.031.111.251.331.43
Newspaper, daily, localeach0.390.400.400.470.48
Paperback, noveleach8.7511.959.9512.4813.41
Rugby club subscription, per annumper member44.7453.4160.1463.9069.56
Tennis club subscription, per annumper member91.47115.88129.09141.14153.68

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 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. The data are 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 23.7. PRODUCERS PRICE INDEX—INPUTS*

Industry groupQuarter ended
Mar 1990Jun 1990Sep 1990Dec 1990Mar 1991Jun 1991

*Base: December quarter 1982 (= 1000).

†Includes industry groups 5 to 13.

‡Includes industry groups 1 to 21.

1 Agriculture155215831596161116021596
        Sheep and beef farming154415881611162616161614
        Dairy farming160416131600160415971580
        Mixed cropping152315401554157115641558
        Horticulture157315811601162116171625
        Pig, poultry and other farming145914811494150015051488
        All farming155315841597161016021596
        Agricultural contracting149915011515157115611544
2 Fishing and hunting133413351337142313991407
3 Forestry and logging158716291643166916591663
4 Mining and quarrying150015231527156015471548
5 Food, beverages and tobacco170917201617157715301510
        Primary food processing177117741607155214881459
        Other food processing149915231534152215091502
6 Textiles, apparel and leather158515711514142613851448
7 Wood and wood products173617841793179818061821
8 Paper, printing and publishing164116581675170117011708
9 Chemicals, petroleum and plastics122212001238144513301269
10 Non-metallic mineral products162316391654167416831686
11 Basic metals156015821606163716041583
12 Machinery and metal products162816451649164016681680
13 Other manufacturing154215411548154415571561
14 Electricity, gas and water175417641766177217721774
15 Construction167816961711173117321732
16 Trade, restaurants and hotels181018361856189419131914
        Wholesale and retail trade186318931909195419701971
        Hotels, restaurants, takeaways167116881718173917631761
17 Transport and storage152215291541164016171598
        Road transport145414701482155915091482
        Transport and storage other than road155015561567167316601643
18 Communication149515121488151815261527
19 Insurance and financing214721542172219322082211
20 Ownership of dwellings195719872030204220572061
21 Community and personal services171817351756178717731789
22 Central government166917061708175017891777
23 Local government164616701689173017341728
24 Private non-profit services179618271848188419001926
All manufacturing groups†158515931568158315511546
All market groups‡167516901689171417011699
All industry167616931692171817011705

Table 23.8. PRODUCERS PRICE INDEX—OUTPUTS*

Industry groupQuarter ended
Mar 1990Jun 1990Sep 1990Dec 1990Mar 1991Jun 1991

*Base: December quarter 1982 (= 1000).

†Includes industry groups 5 to 13.

‡Includes industry groups 1 to 21.

1 Agriculture164516431542145713851392
2 Fishing and hunting162416831740176317591821
3 Forestry and logging233624982515251625132690
4 Mining and quarrying123912401295142912921273
5 Food, beverages and tobacco173217471669164716411640
        Primary food processing172617251593153515151509
        Other food processing169417341752179618121819
6 Textiles, apparel and leather155115621517146314321475
7 Wood and wood products170117221729173117361755
8 Paper, printing, and publishing170717251754175617551768
9 Chemicals, petroleum and plastics128913251329135714781471
10 Non-metallic mineral products160916171638163916451654
11 Basic metals150415291536162215361509
12 Machinery and metal products163616581664166716871695
13 Other manufacturing155415721565156315781596
14 Electricity, gas and water173617481764177217871795
15 Construction165016721681169317001706
16 Trade, restaurants and hotels171817111673169716881609
        Wholesale and retail trade168116681615164416251627
        Hotels, restaurants, takeaways185518721893189919281931
17 Transport and storage149615191533158716001602
        Road transport167716991696175717541751
        Transport and storage other than road139614201442149415121517
18 Communication147315021504150115141520
19 Insurance and financing239323272350235723972394
20 Ownership of dwellings262826832731278527902801
21 Community and personal services193219581976200020042015
All manufacturing groups†160716271607160316171625
All market groups‡174517551741174717491756

Fire sale, Auckland.

23.3 Capital goods prices

The Capital Goods Price Index (CGPI) reflects the price movements of fixed capital assets purchased by New Zealand businesses and government. In addition 60 separate indexes are produced for different types of assets, ranging from residential and non-residential buildings to food processing, machinery and commercial buildings. Six group indexes and an all-groups index are available from and based on the December 1989 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 23.9. CAPITAL GOODS PRICE INDEXES*

Asset groupQuarter ended
Mar 1990Jun 1990Sep 1990Dec 1990Mar 1991Jun 1991Sep 1991

*Base: December quarter 1989 (= 1000).

This index does not purport to reflect all price changes in building work because of measurement difficulties, particularly with respect to discounts on labour and material prices.

Residential buildings1014102410331030103310391044
Non-residential buildings1004101510091021102110251026
Other construction998102010281036103510421039
Land improvements1007101510251036104610521058
Transport equipment10071014974989100810261032
Plant, machinery, and equipment1007103210311040105210511054
All groups1005102210131023103210381040

Contributor

  • 23.1-23.3 Department of Statistics.

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

S1 and S2 coins and notes.

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. Following the change of government in that year, 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. The Reserve Bank of New Zealand Act 1989 established a framework for the registration and supervision of banks, and for the disclosure by these banks of financial information. This Act contained provisions enabling suitably qualified financial institutions to become ‘registered banks’. At the end of September 1991 there were 22 registered banks, four of which were the existing trading banks. The remaining 18 banks have been registered since the legislation came into force in 1987. The Trustee Banks Restructuring Act 1988, and the Building Societies Amendment Act 1987 also removed 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. The bank has a board of directors comprising the Governor, the two Deputy Governors, and between four and seven non-executive directors.

Under the Reserve Bank of New Zealand Act 1989 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. These statements review the conduct of monetary policy over the previous six months and outline how monetary policy is to be implemented over the next six months, consistent with the Bank's inflation objective.

Banking Supervision. Supervision is 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 registered banks in order to monitor their condition. It also has intervention powers, which include the ability to require a bank to consult with it. The Reserve Bank may give advice, or even direction to any bank, which it considers is operating imprudently, 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 DFC New Zealand Limited.

Monitoring and consultations form an integral part of the Reserve Bank's supervision, as does their ability to apply limitations or requirements to a registered bank–a limit on exposure concentration being a case in point.

Disclosure. The Reserve Bank of New Zealand Act 1989 provides the Reserve Bank with the ability to require disclosure by registered banks of a range of financial information. 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. The number of settlement banks is 16.

Table 24.1. LIABILITIES OF THE RESERVE BANK

At end of JuneBank notesStateDepositsOverseas liabilitiesOther liabilitiesTotal liabilities
MarketingOtherShort-termLong-termAllocation of special drawing rights
Source: Reserve Bank of New Zealand.
     $(million)   
19871,003.0116.1102.410.2358.54,060.4315.8390.46,356.8
1988990.279.6135.068.3148.1953.2278.7456.73,109.8
19891,096.7339.1188.5150.5-3,707.1307.51,839.97,629.3
19901,208.2109.9-202.0365.43,557.4322.91,795.77,561.6
19911,225.8397.3-119.627.93,733.4321.71,414.57,240.1

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
198815.71,374.416.510.11,057.7244.6-163.60.8226.4
198913.94,020.030.40.61,874.1--123.90.21,566.2
19900.94,349.312.61.31,232.6494.0-147.40.41,323.1
1991-4,039.642.31.11,307.5--664.0-1,185.6

Registered banks

As part of a general policy of creating a more competitively neutral environment between institutional groups, the Reserve Bank is empowered to register new banks. Under the ‘new banks’ policy, which came into effect in 1987, 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.

The Reserve Bank, in considering an application for registration, must be satisfied that the applicant is substantially in the business of providing some form of financial service and that the applicant's size, standing, and ability allow it to carry on business in a prudent manner.

For the purposes of assessing capital adequacy (the size and nature of a business) the Reserve Bank has adopted the capital framework developed by the Basle Committee on Banking Regulations and Supervisory Practices and applies a minimum capital ratio based on that framework. In the case of overseas banks, assessment is made of the parent bank's global capital position. Capital is also used in evaluating the size criterion, with a minimum capital of $15 million generally being required. With 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 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.

The framework, as established in the Reserve Bank of New Zealand Act 1989, 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, the National Bank of New Zealand Limited and Westpac Banking Corporation, (which is incorporated in Australia)–automatically became registered banks. These 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 September 1991 were: ASB Bank Limited and its subsidiary Westland Bank Limited; Bankers Trust New Zealand Limited; Banque Indosuez New Zealand Limited, Barclays Bank PLC; BNZ Finance Limited; Citibank N.A.; Countrywide Banking Corporation Limited; The Hong Kong and Shanghai Banking Corporation; NZI Bank Limited; National Australia Bank (NZ) Limited; Post Office Bank Limited; Primary Industry Bank of Australia Limited; State Bank of South Australia; The Rural Bank Limited; TSB Bank Limited; (members of) Trust Bank Group; United Bank Limited.

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, and have been converted into companies, with their ownership being clarified by being vested in regional community trusts.

Table 24.3. LIABILITIES AND ASSETS OF M3 FINANCIAL INSTITUTIONS

ItemAs at June quarter
198919901991

NB: Detailed data is not available prior to 1991 as recent revisions have not been backdated.

*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$(m) 
Liabilities—
NZ dollar funding—
        NZ residents  56,560
        Non-residents  5,400
        Unallocated  -
            Total, NZ$ funding52,55755,38861,960
Foreign currency funding—
        NZ residents  3,912
        Non-residents  5,652
        Unallocated  -
        Total8,6097,5549,564
Capital and reserves  5,605
Miscellaneous*  1,548
            Total liabilities70,22070,60678,677
Funding from associates Unused committed borrowing Lines and standby facilities available to surveyed institutions  1,467
Assets—
NZ Government securities  7,229
(includes Treasury bills)
NZ currency  230
Balances with the Reserve Bank  1,124
NZ dollar claims—
        NZ residents  62,424
        Non-residents  905
        Unallocated  -
            Total, NZ$ claims52,23358,00563,329
Foreign currency claims
        NZ residents  2,121
        Non-residents  821
        Unallocated  -
        Total5,4223,5552,942
Foreign (currency) fixed assets and equity investment  1,148
Shares (in NZ companies)  1,943
Fixed assets (in NZ)  ,756
Miscellaneous*  -1,025
            Total assets70,22070,60678,677
Financial claims on associates†  3,103

Other financial institutions

Prior to 1984, a range of regulatory distinctions existed between different types of financial institutions. Aside from trading banks, there were also private savings banks, building societies, merchant banks, stock and station agents and finance companies. The activities that each of these institutions could engage in was prescribed by regulation. Since 1984, however, the removal of most distinctions between types of institutions has seen a marked change in the operations of many of these institutions. There are currently only two formal categories of financial institutions–registered bank (see above), and other financial institutions. These other institutions operate in a range of areas, and can provide full banking services or a sub-set of such services as they choose.

Many institutions have become registered banks, even if they do not offer a complete range of services to both the business and household sectors. Consequently, the share of the total banking business that registered banks have has increased in the past few years. In addition, a number of offshore institutions have set up operations in New Zealand as registered banks–offering either a full or partial banking service. Distinctions between other types of financial institutions have become blurred in recent years, with an institutions able to compete more or less on an equal footing.

Traditionally, the financial institutions other than trading banks have specialised in a particular area of banking. Private savings banks were bankers to the household sector–accepting deposits and making loans to individuals. Building societies specialised in providing home mortgage services; merchant banks were largely involved in corporate financing activities and trade financing; finance companies tended to specialise in hire-purchase finance, but were also involved in corporate finance; while stock and station agents operated in the provision of retailing, brokering and financial services to the rural sector.

In recent years, however, institutions have been free to develop in those areas where they believe they have a competitive advantage. Consequently, while some institutions have remained focused on their core business activities, others have endeavoured to diversify their operations.

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 24.4 (following) 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).

Banking and finance industry statistics are published in the Economy Wide Census Finance, Insurance and Business Services, 1987. Statistics from the annual Enterprise Surveys from 1985-86 to 1988-89 will be published shortly.

Table 24.4. BANKING: STATISTICAL SUMMARY*

Statistical item1986-871987-881988-891989-90

*Up to 1987-88 dividends paid are included under ‘All other operating expenditure’ and excluded from ‘Operating surplus’ and ‘Value added’. For 1988-89 and 1989-90 dividends paid are excluded from ‘All other operating expenditure’, ‘Operating surplus’ and ‘Value added’.

  number 
Group enterprises6888
Enterprises within these group enterprises10131222
Enterprises not within these group enterprises131413 
Activity units (including ancillaries)1569161516631761
Full-time equivalent persons engaged27261279332773427183
  $(000) 
Income—
    Interest and dividends received5,046,9686,918,1896,287,4686,097,143
    Other financial services income683,549473,995587,433622,841
    All other income376,699365,725473,499400,124
            Total income5,107,2167,757,9107,348,4007,120,107
Operating expenditure—
    Salaries and wages693,243786,669858,430895,952
    Depreciation63,58686,375103,828103,773
    Interest3,737,8524,648,5534,257,6353,983,975
    Indirect taxes7,06112,23016,85714,694
    All other operating expenditure842,0901,289,4841,380,5071,280,038
            Total expenditure5,343,8326,823,3116,616,5566,278,432
Net profit before tax763,384934,598731,845841,675
Economic values—
    Operating surplus843,0371,204,280863,740108,486
    Value added1,676,1762,186,8261,944,2532,190,277
Fixed tangible assets—
    Purchases during the year142,598205,778188,898253,318
    Sales during the year18,57944,649130,502143,782
Balance sheet—
    Shareholders' funds, etc.2,783,1583,806,5883,375,0693,418,248
    All other liabilities43,917,29946,001,12457,435,25864,646,561
            Total capital and liabilities46,700,45749,807,71260,810,32768,064,809
Fixed tangible assets756,667978,4411,022,0301,078,244
All other assets45,943,79048,829,27159,788,29766,986,565
            Total assets46,700,45749,807,71260,810,32768,064,809
  $ 
Ratios—
    Value added per full-time equivalent persons engaged61,48678,28870,10380,575
    Value added per $1,000 of salaries/wages paid2,4182,7802,2652,445
    Total sales and other income per full-time equivalent persons engaged224,028277,733264,960261,932
  percent 
Net profit per total sales and other income12.512.010.011.8
Total salaries and wages per total sales and other income11.410.111.712.6
Value added per total sales and other income27.428.226.530.8
Shareholders' funds per total capital and liabilities6.07.65.65.0
Fixed assets per total assets1.62.01.71.6

Busiest electronic bank teller machine in New Zealand, Newmarket, Auckland.

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 coverage 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 item1986-871987-881988-89
  number 
Group enterprises156515921765
Enterprises within these group enterprises264628573140
Activity units (including ancillaries)194921382113
Full-time equivalent persons engaged167411732815131
Stocks— $(000) 
    Closing2,3001,2031,247
    Opening1,3341,0361,452
Income—
    Interest and dividend received7,294,92111,211,1659,504,532
    Other financial services1,024,629889,133724,191
    All other income received988,811962,036653,274
Total income7,308,36213,062,33410,881,997
Adjusted for change in stock values7,309,32913,062,50010,881,792
Operating expenditure—
    Salaries and wages468,380604,739512,716
    Depreciation81,53298,573111,707
    Interest, bad debts, etc.5,109,7977,956,1466,205,215
    Indirest taxes11,34213,3167,291
    Purchases51,4317,62411,870
    All other operating expenditure1,941,3643,052,3122,218,743
Total expenditure7,922,89611,732,7109,067,542
Working proprietors/partners salaries and wages54,75991,35863,351
Net profit before tax after deducting working proprietors/partners salaries and wages1,331,4431,238,4321,750,900
Economic values—
    Operating surplus1,566,7901,630,4002,022,592
    Value added2,164,8722,392,6262,689,402
Fixed tangible assets—
    Purchases during the year312,514269,444349,798
    Sales during the year167,560115,01391,913
Balance sheet—
    Shareholders' funds, etc.32,816,74138,249,94240,547,418
    All other liabilities46,797,78254,840,05548,477,989
Total capital and liabilities79,614,52393,089,99789,025,407
Fixed tangible assets978,2001,203,4271,827,592
All other assets78,636,32391,886,57087,197,815
Total assets79,614,52393,089,99789,015,407
Ratios— $ 
    Value added per full-time equivalent persons engaged129,316138,079177,741
    Value added per $1,000 of salaries/wages paid4,1223,9565,245
    Total sales and other income per full-time equivalent persons engaged566,022753,828719,186
  percent 
    Net profit per total sales and other income14.39.516.1
    Total salaries and wages per total sales and other income50.04.64.7
    Value added per total sales and other income23.318.524.7
    Shareholders funds per total capital and liabilities41.241.145.6
    Fixed assets per total assets1.21.32.1

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.

The Reserve Bank has had the sole right to issue banknotes and coin in New Zealand. 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 2 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.

The total value of notes and coins on issue from the Reserve Bank as at 31 August 1991 was $1,331 million.

On 11 February 1991 the Reserve Bank introduced $1 and $2 coins. These gold coloured coins replaced $1 and $2 banknotes which had lost much of their initial purchasing power. The $1 and $2 notes were only lasting around six months in circulation. It is expected that the new coins will last over twenty years. The $1 coin features the image of the kiwi, giving concrete reality to the widely used term ‘the kiwi dollar’

The Reserve Bank expects to introduce new notes in 1992, incorporating the first changes on notes since the introduction of decimal currency in 1967. The new notes will contain additional security features and new designs. The portrait of the Queen will be replaced on the $5, $10, $50 and $100 notes by Sir Edmund Hillary, Kate Sheppard, Sir Apiranga Ngata and Lord Rutherford, respectively. The Queen will remain on the $20, the most widely used note, and replace James Cook as the watermark.

A 1990 commemorative $10 note was introduced on 1 August 1990, and on 19 August 1991 a World Cup rugby coin was issued. This is the first time that a coin commemorating rugby has been issued as legal tender.

S1 and S2 coins and the designer.

Old and new 20 cent coins.

Monetary policy

Monetary policy is implemented by the Reserve Bank under the terms of the Reserve Bank of New Zealand Act and the Policy Targets Agreement between the Governor and the Minister of Finance. The Bank's objective is to achieve price stability (0-2 percent annual CPI increases) and then to maintain it. The Bank has published a series of indicative inflation ranges it expects to follow along the way to price stability. Progress towards meeting the Bank's objective saw consumer price inflation falling to its lowest levels since the 1960s in mid-1991 (see section 23.1. Consumer prices).

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. For a description of the conduct of Monetary policy prior to 1984 see the 1987-88 Yearbook.

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. 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 1990 and during 1991, monetary policy continued to focus on the objective of achieving price stability (0-2 percent annual increases in consumer prices) by the end of 1993. Inflation fell further over 1990-1991 than had earlier been forecast. However, some of this reduction was due to one-off factors associated with the oil shock in the wake of the Iraqi invation of Kuwait, and to falling mortgage interest rates. The favourable outlook for both measured inflation, and inflation excluding one-off factors, resulted in the Reserve Bank easing monetary policy towards the end of September 1991, an easing that came on top of the very sharp fall in interest rates experienced since October 1990. The Reserve Bank will ensure that monetary conditions remain consistent with the achievement of price stability by the end of 1993.

Table 24.6. MONEY SUPPLY AND CREDIT AGGREGATES

Selected aggregatesAs at 31 March
198919901991

*Readily available money supply.

Broad money supply, including term deposits.

Source: Reserve Bank of New Zealand.

  $(million) 
Monetary
    Notes and coin held by the public9491,0741,119
    Transaction account balances7,5258,2218,291
    Less, inter-institutional transaction balances245425479
    Less, government deposits413319
            M1*8,1888,8378,912
    Other funds44,20745,32851,790
    Less other inter-institutional funding6,6348,0799,183
Less government deposits454145-
M3†45,30745,96151,519
Credit
    Gross claims—
        (a) Surveyed institutions51,60856,53162,606
        (b) Other273026
 51,63556,56162,632
    Less inter-institutional claims6,1846,6917,725
            Private sector credit45,45149,87054,907
    Marketing and stabilisation-157-133-71
    Claims on government—
        (a) Surveyed Institutions5,4884,2965,908
        (b) Reserve Bank2,6212,2332,480
        (c) Coins in circulation103100100
            Total8,2126,6298,488
            Domestic credit53,50656,36663,324

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 two to five-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.

  • 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 Registry maintains registers of stock for government, local authorities and other public bodies and several state-owned enterprises.

At 18 March 1991, the value of total government securities registered was $20,437 million, little changed over the last year. Of this total $19,445 million comprised Treasury bills and other wholesale government stock while government retail stock of $992 million was also on issue. 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.

KEY MARKET RATES
Weekly averages by type

Table 24.7. GOVERNMENT SECURITIES ON ISSUE

 As at
March 1990September 1991March 1991
Source: Reserve Bank of New Zealand.
  $(million) 
Ordinary government stock, by maturity:
    Less than or equal to 1 month-607.6-
    More than 1 month, up to 3 months754.1460.6487.3
    More than 3 months, up to 6 months127.51,036.2797.5
    More than 6 months, up to 2 years5,433.04,944.43,427.1
    More than 2 years, up to 5 years6,117.85,323.55,484.3
    More than 5 years863.51,161.51,446.8
Treasury bills by maturity:
    Less than or equal to 3 months3,391.03,873.01,796.0
    More than 3 months, up to 6 months1,321.61,300.03,249.0
    More than 6 months, up to 1 year--240.0
    Unclassified-792.11,199.7
Index linked stock1,316.9680.2671.6
Government stock coupons-636.8645.4
Kiwi stock10.29.69.0
IASBs311.1286.2267.6
ONZ Bonds11.510.49.6
Premium stock---
Savings stock---
Kiwi Bonds641.1646.9705.8
Total internal public debt20,299.321,769.120,436.7

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. Monetary policy, however, has a significant indirect impact on the exchange rate.

Recent changes in exchange rates. During late 1989, and for much of 1990, the value of the New Zealand dollar remained fairly stable. The trade-weighted index measure of the exchange rate (TWI) fluctuated between around 60 and 62 for most of this period

Towards the end of 1990, the exchange rate began to ease as short-term interest rates declined. Between late August and the end of December 1990, the TWI depreciated by over 6 percent. The New Zealand dollar firmed slightly in early 1991, but has since drifted downwards. Following an explicit easing in monetary policy in the wake of the favourable inflation outlook, the New Zealand dollar fell in late September, from around 58 on the TWI prior to the easing, to about 56 by the end of September.

The New Zealand dollar strengthened against most major currencies during the conflict in the Middle East in late 1990, and particularly against the United States dollar. In the first eight months of 1991, however, the New Zealand dollar has gradually depreciated against the United States and Australian dollars, while strengthening against the pound sterling, the German deutchmark and the Swiss franc.

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.)

Money market dealers watch screens for reaction to 1991 Budget.

Over 1990 and early 1991, the real exchange rate has depreciated by over 8 percent, resulting in an increase in competitiveness for those sectors of the economy that compete on international markets. The easing in the nominal exchange rate was largely responsible for the reduction in the real rate, although New Zealand's decreasing inflation rate was also a factor.

Table 24.8. FOREIGN EXCHANGE RATES*

End of periodUS mid-rate (US$ per NZ$1)UK mid-rate (Stg per NZ$1)Aust. mid-rate (A$ 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.

1990—Apr0.57500.35240.766691.480.96450.836061.5
May0.57650.33990.745787.250.96960.819560.1
Jun0.58650.33770.746589.910.98220.833460.5
Jul0.59130.31990.746387.450.94900.804459.8
Aug0.61900.32050.754588.890.96350.796961.0
Sep0.61490.32790.743984.980.96090.795660.0
Oct0.61550.31450.783579.090.92970.786959.0
Nov0.60810.31340.787380.660.91390.778059.7
Dec0.59030.30460.760979.160.87680.747358.2
1991—Jan0.59970.30600.764478.720.89410.760358.3
Feb0.60000.31200.763879.000.91050.786758.6
Mar0.58720.33650.757081.661.00050.852959.6
Apr0.58700.34570.751380.211.02840.864959.3
May0.58150.33930.767980.100.99940.850659.3
Jun0.57900.35480.753279.801.03940.897759.3
Jul0.57170.34100.733978.821.00330.875658.0
Aug0.57440.34110.732578.781.00190.875458.0

EXCHANGE RATE
Trade-weighted index

Contributors

  • 24.1-24.2 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 Services Industry: Effects of Regulatory Reform. New Zealand Institute of 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).

Monetary Policy Statement. Reserve Bank of New Zealand (six-monthly).

Key Statistics. Department of Statistics (monthly).

Report of the Bank of New Zealand (Parl. paper B. 15) until 1988.

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

Wellington

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 proposes the acquisition of departmental goods and services, and the required 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 four types of central government organisations have evolved:

  • Government departments as defined by Section 2 of the Public Finance Act 1989. The ‘Crown’ reporting entity includes Her Majesty the Queen in right of New Zealand, all Ministers of the Crown and all departments, but does not include offices of Parliament, Crown-owned entities or State-owned enterprises.

  • Offices of Parliament as defined by Section 2 of the Public Finance Act 1989. Offices of Parliament include the Office of the Ombudsmen, the Audit Office, the Parliamentary Commissioner for the Environment and the Privacy Commissioner.

  • Crown-owned entities, which are bodies corporate other than State-owned enterprises. These are to be defined primarily by a new Schedule to the Public Finance Act 1989.

  • State-owned enterprises as listed in the First Schedule to the State-Owned Enterprises Act 1986 and amendments. State-owned enterprises operate with legal status separate from the Crown and the only legal authority that can be exercised by the Crown is that conferred by its ownership of shares in the enterprise.

The appropriation process. Parliament authorises the expenditure of public money by departments, offices of Parliament and many Crown-owned entities through the appropriation process. This authority can take the form of annual appropriations or a 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 the authority to spend or to incur costs lasts only to the end of the financial year to which the appropriation relates unless otherwise authorised. The appropriations are included in the annual Estimates of Annual Appropriations and Departmental Budgets. These estimates are presented to Parliament and show the costs of producing the goods and services (outputs) of individual government departments. 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.

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 financial statements include similar information on financial performance to that provided by the private sector, including a statement of financial position (balance sheet) and an operating statement. Departments also report on their service performance comparing the services they proposed in the Estimates with the services they actually produced during the year. The chief executives of departments are also being held increasingly accountable by reforms such as those in the State Sector Act 1988.

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 legislation 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 efficiency of the economy and is the culmination of substantial reform in the public sector.

Just as the State Owned Enterprises 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 public sector reform.

The Public Finance Act 1989, recognising that it would take some departments more time than others to implement the required changes to their financial management systems, allowed 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. Mode A was a cash-based appropriation similar to the previous system and was available as an interim mode only. All departments were required by the Public Finance Act 1989 to adopt accrual appropriations by 1 July 1991.

Within Modes B and C, appropriations are made in three ways:

  • For ‘classes of outputs’, that is, Parliament authorises departments to incur the necessary costs to produce goods and services.

  • For capital investment.

  • For the payment of benefits and grants by departments on behalf of Government.

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 departmental goods and services (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 operate with neither advantages nor disadvantages compared with that competition. Public sector managers will be able to demonstrate the quality of their performance in comparison with other suppliers of goods and services.

An important element of the transition of all departments to the new financial management system was their adoption of new cash management procedures which give them much more control over their own finances. Departments now have their own departmental bank accounts into which annual appropriations are disbursed. As well, where they have delegated authority to make payments or collect receipts on behalf of the Crown they operate a subsidiary bank account comprising one of a suite of accounts 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, appropriation 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. Since 30 June 1991 all departments have been required to produce financial statements prepared on an accrual accounting basis.

When all departments are operating under the new system, the Crown will be able to produce consolidated financial statements for departments. Until that time the financial statements of the Crown have continued to be on a cash basis. From 1 July 1992, these consolidated statements will also combine the financial statements of Crown-owned entities (formerly known as Crown agencies) and State-owned enterprises.

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 an accrual accounting system is that records of assets and liabilities are kept, so that the true financial position or net worth of the organisation can be determined.

The new system allows departmental managers more flexibility in choosing the resources (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 has 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 required to be consistent, both with Budget Estimates 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.

While the Government's balance date has changed, the timing of the various phases of the Budget cycle and the tax year remain unaltered.

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).

Table 25.1. GOVERNMENT FINANCE: RECENT SUMMARY

Year endedPopulation*Receipts†Payments†Public debt
From taxationOther‡InternalOverseasTotal

*Year ended 31 December.

†From 1989 receipts and payments are affected by transactions associated with the corporatisation of State-owned enterprises.

‡Includes transfers to and from the Loans and Reserves Accounts.

Source: The Treasury.

 number  $(million)   
31 March—
197028578601,102.0170.51,275.12,351.3535.82,887.1
197531484002,760.5285.53,034.93,336.9862.84,199.7
198031764005,880.51,650.07,529.16,778.93,567.510,346.4
1985330310011,579.54,591.416,162.415,836.812,409.528,246.3
1989338460022,863.99,245.931,553.523,251.016,470.039,721.0
30 June—
1990342910026,198.14,592.429,606.223,760.720,585.844,346.5
19913449700P25,797.65,514.529,879.423,444.520,490.743,935.2

Table 25.2. GOVERNMENT EXPENDITURE: PUBLIC ACCOUNT

ItemYear ended 31 MarchYear ended 30 June
19891990†1991
GrossNet*Net*Net*

*Net expenditure is generally arrived at by deducting trading and departmental receipts from gross expenditure.

†From 1990 onwards, only net Government expenditure data is being published by the Treasury in Budget Table 1. Government expenditure on the Public Account excludes major projects refinancing.

Source: The Treasury.

  $(million) 
Administration—
    General administration1,912.01,626.72,046.0 
    Law and order1,045.5863.7959.0 
    Government services109.10.13.0 
    Miscellaneous services19.215.30.0 
 3,085.72,505.83,008.03,088.1
Foreign relations—
    Defence1,390.81,366.91,352.0 
    Foreign affairs303.0244.0327.0 
 1,693.81,610.91,679.01,640.8
Development of industry—
    Land use610.2355.7289.0 
    Other industrial services2,256.3872.1871.0 
 2,866.51,227.81,160.01,373.7
Education—
    Education3,637.93,569.24,068.04,401.1
Social services—
    Social welfare8,234.48,177.29,351.0 
    Other social services1,209.0946.1969.0 
 9,443.49,123.310,320.011,005.0
Health—
    Health3,652.63,639.33,782.03,988.0
Transport and communications—
    Transport905.6672.0888.0826.4
Debt services and miscellaneous investment and financing transactions—
    Debt services4,492.54,492.54,724.54,624.2
    Miscellaneous investment transactions7,467.1(2,282.8)(3,997.8)(3,678.8)
    Miscellaneous financing transactions-(816.8)(122.7)(16.2)
 11,959.61,392.9604.0929.3
                Total37,245.023,741.225,508.027,252.4

Table 25.3 combines net expenditure with the Government's revenue to determine the amount to be financed by borrowing (the deficit).

Table 25.3. FINANCING OF GOVERNMENT EXPENDITURE

 Year ended 31 March
198919901991

*Includes increase/(decrease) in Cash balances and adjustments for non-cash items and provisional end-of-year data.

Source: The Treasury.

  $(million) 
Total expenditure (I)23,741.225,508.027,252.4
Expenditure on major projects and producer boards refinancing1,719.91,656.0325.2
Total expenditure (II)25,461.127,164.027,577.6
Financed from:
    Direct taxation:
        Income tax:
            Individuals12,862.913,400.313,177.4
            Companies1,903.22,530.61,762.0
            Other211.8883.51,430.3
        Other direct taxation217.6350.6252.7
    Indirect taxation:
        Goods and services tax4,338.85,680.46,163.8
        Exise duties2,166.12,001.51,821.2
        Other indirect taxation1,163.61,352.21,190.3
            Total taxation22,863.926,198.125,797.6
    Interest, profits and miscellaneous receipts2,609.42,153.03,212.6
            Total revenue25,473.328,351.129,010.2
Amount financed from borrowing excluding refinancing of major products and producer boards (surplus) (I)(1,732.6)(2,843.1)(1,757.8)
Amount financed from borrowing including refinancing of major products and producer boards (surplus) (II)(12.6)(1,187.1)(1,432.6)
Net borrowing/(repayment) in New Zealand647.7(3,196.0)412.4
Internal surplus/(deficit)660.2(2,008.9)1,845.0
Net borrowing/(repayment) overseas(656.2)1,235.0(1,219.9)
Cash surplus/(deficit)*4.1(773.9)625.1

GOVERNMENT SPENDING
In major areas

Table 25.4. GOVERNMENT EXPENDITURE BY DEPARTMENT

ItemYear ended 30 June
19901991

Source: The Treasury.

 $(000)
Administration—
General Administration—
Audit31,01837,543
Cabinet Office1-
Conservation122,094131,666
Cultural Affairs-111
Customs68,53964,327
DESS193-
Environment58,56354,918
Government Printing Office2,8904,650
Government Superannuation Fund795,565640,247
Inland Revenue368,419447,209
Internal Affairs229,396233,826
Iwi Transition Agency172,500228,871
Maori Affairs14,52110,727
Office of the Clerk8,5208,191
Office of the Ombudsman3,0912,596
National Provident Fund-18,679
Parliamentary Commissioner for the Environment1,0411,130
Parliamentary Counsel1,8001,536
Parliamentary Service93,72367,839
Prime Minister and Cabinet38,67243,626
Privacy Commissioner221444
State Services Commission59,13647,554
Statistics39,84659,715
Survey and Land Information70,178123,101
Treasury76,001232,961
Valuation29,66729,238
Womens Affairs3,7635,267
Youth Affairs2,2986,526
Law and Order—
Crown Law15,20816,244
Justice612,834624,766
Police528,176538,301
Serious Fraud Office7503,582
Total Administration3,448,6243,685,391
Foreign Relations—
Defence—
Defence1,413,203213,521
New Zealand Defence Force-1,190,348
Foreign Affairs—
External Relations and Trade377,759368,234
Total Foreign Relations1,790,9621,772,103
Development of Industry—
Land Use—
Agriculture and Fisheries408,197479,848
Forestry55,53467,500
Other Industrial Services—
Commerce84,441125,059
Energy802,633324,301
Labour590,177426,097
Research, Science and Technology7,06174,976
Scientific and Industrial Research239,574198,472
Tourist and Publicity114,00268,211
Trade and Industry1,190-
Treasury-401,503
Total Development of Industry2,302,8092,165,967
Education—
Education4,099,9424,397,669
Education Review Office18,69026,964
National Library39,77640,813
Total Education4,158,4084,465,446
Social Service—
Social Welfare9,506,62410,173,363
Other Social Services—
Housing752,1401,001,792
Inland Revenue457,319418,786
Pacific Island Affairs-3,056
Maori Affairs98,313-
Total Social Services10,814,39611,596,997
Health—
Health3,815,8644,019,728
Transport—
Transport1,015,084919,304
Total Government Expenditure27,346,14728,624,936

The reorganisation 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.

CENTRAL GOVERNMENT EXPENDITURE PER CAPITA
At constant values

25.2 Taxation

The following summary of the New Zealand tax system takes into account all relevant amending legislation effective at 31 March 1991. 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 1990 was approximately $16,814 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 1991–92 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 (form IR12) which is also a tax deduction certificate. 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 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. Rebates and the taxes previously paid are deducted from the tax assessed to give either a refund or further tax to pay. Further information about rebates is given below.

Business, farming, investment, and professional incomes—With these incomes, tax is not deducted at time of receipt but the taxpayer pays ‘provisional tax’. It 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. 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.

Deductions 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 25.5. REBATES: YEAR ENDED 31 MARCH 1991

RebateAmount

Source: Inland Revenue Department.

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.
Child care or 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 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).
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.

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 ties—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.

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 tax 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.

Family support payments are made to the principal child caregiver. (See section 6.1, Income support). Family support tax credits paid out during the year ended 31 March 1990 totalled $457.665 million.

The maximum support entitlement is $2,184 for the first child and any children aged 16 or over and a further $1,144 for every additional child under the age of 16.

The maximum entitlement to family support abates as follows:

1992 income year (year ended 31 March 1992) 
Family income— 
0-$17,500nil
$17,501-$27,00018ĸ in $
Over $27,00130ĸ 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 payment by the Department of Social Welfare.

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 $18,363 per year may qualify for it. The guaranteed minimum family income level for a one-child family is $278 a week after tax.

GOVERNMENT REVENUE
By source

Guaranteed Retirement Income surcharge

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 1991 there was 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, self-employed persons and motor vehicle owners are required to pay a levy to meet the cost of the Accident Compensation Scheme. The average rate of levy for employers and self-employed persons is $1.71 per $ 100 of leviable earnings. See section 7.5, Accidents.

Tax on interest and dividend income

Interest and dividend income has tax deducted at source, as is the case with wages and salaries.

Resident withholding tax. Interest and dividends are 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 office.

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 has been phased out.

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 1990 totalled $483,451,000.

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;

  • 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 1990 totalled $2,530.6 million.

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 $30,000 in any 12-month period. Registration is optional for persons with an annual turnover under $30,000 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 1989 to 31 March 1990, $3,700 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 of the Income Tax Act 1976) where the owner either:

  • 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 10 years of purchase.

  • Subdivides the property more than 10 years after purchase and carries out extensive subdivisional work before selling. (Only the 'development profit' is taxable in this case.)

Estate duty. Generally, estate duty is a tax 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 $74.2 million in the year ended 31 March 1990.

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 promissory 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 25.6. 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
36,001-54,000$450 plus 10 percent of excess over $36,000
54,001-72,000$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.

CUSTOMS AND EXCISE RECEIPTS
As a percentage of total Consolidated Account taxation

Excise duty

Due to the introduction of the Goods and Services Tax Act and the repeal of the Sales Tax Act on 1 October 1986, the excise regime was reviewed. Goods which had previously been liable to sales taxes became liable for excise duty. Due to successive budgets and economic statements since 1986 only alcoholic beverages, tobacco products and specific petroleum fuels are subject to excise duty.

Another change introduced in 1986 was the abolition of storage or bonded warehouses and the introduction of licensed export warehouses and licensed manufacturing areas. Licensed export warehouses are premises licensed for the deposit of imported, excisable or other such permitted goods, and generally include duty free premises and ships' provedors. Licensed manufacturing areas are premises where excisable goods are manufactured.

Recent changes to the rates of excise duty are set out below.

Petroleum fuels. Super and regular grade petrol, lpg and cng are now the only fuels that remain subject to excise duty. The rate of motor fuel excise duty on super and regular grade fuel is 30.2 cents per litre plus 8 cents per gram of lead, while the rate on lpg is 8.4 cents per litre and $3.17 per gigajoule on cng.

Alcoholic beverages and tobacco products. There is a uniform level of duty on all alcoholic beverages with an alcoholic content of less than 23 percent. The rate of excise duty on these products (beer, wine and other such alcoholic beverages) is $15 per litre of alcohol. There is a higher uniform rate for spirits set at $30 per litre. Except for spirits, the excise duty is levied at equivalent rates on liquid litres of product.

Tobacco products are taxed on their tobacco content. The rate, set in 1989, is $100 per kilogram of tobacco. For cigarettes weighing less than 1.1 kilograms per 1000 the excise duty is levied at an equivalent rate per 1000 cigarettes.

The excise duties levied on alcoholic beverages and tobacco products are subject to regular reviews by means of indexing the duty rates to the Consumer Price Index.

Taxi rank, Wellington.

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 (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 excise duty rates are: petrol, 30.2 cents per litre plus 8.0 cents per gram of lead; lpg, 8.4 cents per litre; and cng, $3.17 per gigajoule. In the case of petrol excise duty, 7.1 cents per litre of the excise duty, and the total excise duty for cng and lpg, is transferred to Transit New Zealand.

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 $46.1 million during the year ended 31 July 1991.

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.

TAXATION PER CAPITA
Adjusted for inflation*

Tax revenue

A summary of income tax revenue and total public account taxation revenue is given for a series of years in Table 25.7.

Table 25.7. SUMMARY OF TAX REVENUE

Year ended 31 MarchIncome taxPercentage 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: The Treasury.

 $(million)$%$(million)$
19752,136.0698.5474.52,865.3937.05
19804,465.61,423.0774.26,020.01,918.42
19858,348.52,561.4370.111,913.63,655.26
198610,567.23,228.2074.214,235.94,348.96
198712,431.83,785.7971.417,408.15,301.21
198813,799.94,161.2364.121,528.16,491.60
198914,977.94,500.0365.522,863.96,869.34
Year ended 30 June—
199016,814.45,006.5264.226,198.17,800.52
199116,369.74,820.0063.525,797.67,596.02

Table 25.8. RECEIPTS OF TAXATION

Item1989*1990†1991†

* Year ended 31 March.

†Year ended 30 June.

Source: The Treasury.

  $(million) 
Direct taxation—
    Income tax14,977.916,814.416,369.7
    Estate and gift duty64.279.680.4
    Land tax153.4271.0172.3
    Total, direct taxation15,195.517,165.016,622.4
Indirect taxation—
    Goods and services tax4,338.85,680.46,163.8
    Customs and excise duty2,673.52,630.62,325.8
    Motor vehicle fees and charges117.9156.8154.1
    Gaming duties76.185.683.1
    Energy resources levy83.890.787.2
    Stamp and cheque duties114.6105.777.2
    Road user charges264.5281.6285.3
    Other(0.7)1.7(1.3)
            Total, indirect taxation7,668.49,033.19,175.2
            Total, public account taxation22,863.926,198.125,797.6

Table 25.9. COMPARISON OF PUBLIC ACCOUNT TAXATION AND NATIONAL DISPOSABLE INCOME

Year endedPublic account taxation
National disposable income*TotalPercentage of national disposable income

*National Disposable Income is calculated on a year ended 31 March.

Source: The Treasury.

  $(million)percent
31 March—
198534,60311,913.634.4
198639,42714,235.936.1
198748,23417,408.136.1
198853,88121,528.140.0
198958,17022,863.939.3
30 June—
199061,69226,198.142.5
199163,85525,797.640.4

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 Crown. Net public debt consists of gross public debt less total financial assets of the Crown (excluding equity).

Between 31 March 1987 and 30 June 1990, gross public debt fell from around 79 percent of the gross domestic product (GDP) to 63.2 percent of the GDP. This was due to a number of influences, some of which tended to offset each other. The surplus of government revenue over government expenditure was used to reduce debt, as shown in Table 2 of Budget 1991 (B6A) and Table 25.2 of section 25.1. The offsetting factors were the continuing refinancing of the major-project debt, the assumption of responsibility for New Zealand Railways debt, the exchange of some Housing Corporation debt for government stock, and changes in accounting treatment. Some overseas borrowing also occurred to finance an increase in reserves.

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 25.1. SALES OF STATE-OWNED ENTERPRISES

BusinessSale priceSettlement date

Source: The Treasury.

 $(000) 
New Zealand Steel Limited327,22422 March 1988
Petrocorp801,05931 March 1988
Health Computing Service4,2507 November 1988
Development Finance Corporation111,28018 November 1988
Post Office Bank Limited—completed678,15631 October 1989
Shipping Corporation of New Zealand—completed33,55919 March 1990
Air New Zealand660,00017 April 1989
Landcorp financial instruments77,00020 March 1989—5 February 1990
Rural Bank550,00031 October 1989
Communicate New Zealand648 December 1989
Government Printing Office38,1561989/90—1990/91
National Film Unit3,50023 March—21 September 1990
State Insurance Office735,00028 June 1990
Tourist Hotel Corporation73,85015 June 1990
New Zealand Liquid Fuel Investment(203,000)6 July 1990
Maui Gas254,0006 July 1990
Synfuels stocks and current assets29,1586 July 1990
Forestry cutting rights747,20524 July—30 August 1990
Telecom Corporation4,250,00012 September 1990
Forestry cutting rights155,55019 September 1990
Export Guarantee Limited16,2813 October 1990
Forestry cutting rights124,30026 October 1990

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 New Zealand Debt Management Office of the Treasury manages the Crown's debt, the cost of borrowing cash flows, and related interest-bearing assets. Through the Reserve Bank it also arranges funding through sales of government stock, Reserve Bank bills, Treasury bills and Kiwi Stock (see section 24.2, Money).

PUBLIC DEBT
In selected currencies

Table 25.11. TOTAL PUBLIC DEBT OUTSTANDING

CurrencyOutstanding at 30 JuneIncrease or (decrease)
19901991

Source: The Treasury.

  $(million) 
New Zealand Dollars—
    Government Stock13,927.813,792.0(135.8)
    Treasury Bills5,123.56,448.71,325.2
    Reserve Bank Bills1,177.31,026.3(151.0)
    Loans1,049.21,065.115.9
    Bonus Bonds1,028.8-(1,028.8)
    Retail Stock671.6798.0126.4
    Bank Overdraft—Reserve Bank484.2-(484.2)
    Inflation Adjusted Savings Bonds298.3251.7(46.6)
    Income Equalisation-62.762.7
        Subtotal23,760.723,444.5(316.2)
Foreign Currency:
    United States Dollars12,964.012,291.6(672.4)
    Japanese Yen2,860.73,182.1321.4
    Pound Sterling1,379.31,290.5(88.8)
    Deutschemarks1,300.71,178.7(122.0)
    Swiss Francs1,299.81,125.8(174.0)
    Australian Dollars---
    Canadian Dollars---
    European Currency Units774.81,421.4646.6
    Italian Lira---
    Norwegian Kroner6.50.6(5.9)
        Subtotal20,585.820,490.7(95.1)
        Total44,346.543,395.2-411.3

Table 25.12. TYPE OF PUBLIC DEBT

Outstanding atForeign currency debtDomestic currency debtTotal debt
AmountPercentage of total debtAmountPercentage of total debtAmountPercentage increase on previous year

Source: The Treasury.

 $(million) $(million) $(million) 
31 March—
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
198721,728.051.220,743.948.842,471.932.7
198816,971.043.422,097.056.639,068.0(8.0)
198916,470.041.523,251.058.539,721.01.7
30 June—
199020,585.846.423,760.753.644,346.511.6
199120,490.746.623,444.553.443,935.2(0.9)

Table 25.13. GROSS INDEBTEDNESS OF CENTRAL GOVERNMENT

As at 31 MarchAmountPer head of population

Source: The Treasury.

 $(million)$
198421,878.76,772.33
198528,246.38,666.37
198632,002.29,776.44
198742,471.912,933.77
198839,068.011,780.60
198939,721.011,933.96
As at 30 June
199044,346.513,204.26
199143,935.212,936.58

Table 25.14. INTEREST PAYMENTS

Year endedInterestInterest on overseas debt as percentage of exports of goods and services†Recovery of interest from government enterprises and investments‡Net interest cost‡Net cost as a percentage of total taxation
OverseasNew ZealandTotal*

*Includes interest on New Zealand Railways Corporation debt from 1990 onwards.

†Exports of goods and services from Department of Statistics annual GDP expenditure series.

‡Revised to include interest credited to the Crown Settlement Account.

Source: The Treasury.

    $(000)   
31 March
1985896,8081,633,2252,530,0336.81,018,2361,511,79712.7
19861,026,4272,275,9533,302,3807.41,485,8371,816,54312.8
19871,292,1312,777,3074,069,4388.51,664,6442,404,79413.8
19881,477,7763,469,9964,947,7728.91,940,4033,007,36914.0
19891,371,9623,115,3114,487,2737.61,366,8823,120,39113.6
30 June
19901,514,0003,186,0004,700,0007.9922,0003,778,00014.4
19911,692,0002,872,0004,564,0008.4879,0003,685,00014.3

PUBLIC DEBT PER CAPITA
At constant values

Table 25.15. MATURITY DATES OF PUBLIC DEBT OUTSTANDING, AS AT 30 JUNE 1991

 Years to maturity
Under 11-22-33-44-55-66-10Over 10Total

*This figure includes borrowing with no specific maturity date and Income Equalisation Deposits.

Source: The Treasury

New Zealand—      ($ million)  
    Retail stock3662828052---337*1,117
    Reserve Bank notes1,026-------1,026
    Treasury Bills6,449-------6,449
    Government Stock3,4101,5252,9682,941-3821,75181413,792
    NZD Loans43423360--20309-1,056
    Total New Zealand dollar debt11,6852,0403,1082,99304022,0601,15123,440
    Percent of total New Zealand dollar debt49.88.713.312.80.01.78.84.9100.0
Foreign currency—
    United States dollars1,1992,3831,7402,4078707481,2151,73012,292
    Great British pounds1048-282--3955571,291
    Japanese yen452772001,0662295857723,182
    Deutschmarks240-259481199---1,179
    Swiss francs412896516517263330-1,126
    European currency unit8291---592--1,421
    Norwegian krone1-------1
    Total foreign debt2,7722,7972,2654,4001,2421,4322,5243,05920,491
    Percent of total foreign debt13.513.611.121.56.17.012.314.9100.0
Total public debt—
    Total outstanding debt14,4564,8375,3737,3931,2421,8344,5854,21043,931
    Percent of total outstanding debt32.911.012.216.82.84.210.49.6100.0

Table 25.16. STATEMENT OF BORROWINGS

 Year ending
31 Mar 8930 Jun 89*30 Jun 90†30 Jun 91‡

* The period ended 30 June 1989 reports only for three months.

†The opening balance has been increased by $355,031,000 to disclose gross liability in respect of Bonus Bonds. Net liability was previously disclosed. There has been no change in net debt.

‡Data for the year ended 30 June 1991 includes the balance of swap arrangements of $108.5 million.

Source: The Treasury.

 $(million)
Opening Balance39,111.439,600.643,117.844,346.5
plus, Loans raised27,607.910,825.939,074.541,094.6
less, Loans repaid27,718.08,343.139,976.541,783.5
plus, Debt taken over--1,896.8-
plus, Foreign currency realignment599.3679.4(49.6)277.6
equal Closing Balance
Total Public Debt excluding Swaps39,600.642,762.844,062.9-
Balance of Swaps120.4320.8283.6-
Total Public Debt including Swaps39,721.043,083.644,346.543,935.2

25.4 Local government finance

Section 2.4 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 7.1, 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.

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.

New Wellington City Council civic administration building.

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 work, service or facility such as; 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 uniform annual general 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 tied 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 shared some of its tax revenue with territorial and regional authorities, was terminated from 1 April 1989.

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.

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

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 authorisation requirement 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 ratepayers on the loan; this can be forced by a petition of 15 percent of the ratepayers.

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.

Award winning redevelopment of Dunedin Municipal Chambers. Existing front elevation (top) and new front elevation (below).

Table 25.17. OPERATIONS OF THE LOCAL AUTHORITIES LOANS BOARD*

Year ended 31 MarchSanctioned
Value of total applicationsNew worksRedemption loansExemption order notifications

*Includes hospital boards and Fire Service Commission.

  $(million) 
1986179.0x176.1-117.6
198764.564.5-209.3
198852.452.4-524.3
1989106.9106.9-521.0
19901.31.3-487.0
199169.369.3-416.7

Clutha County and Clutha District Council workers.

Table 25.18. LOANS RAISED BY TYPE OF LOCAL AUTHORITY

Local authorityYear ended 31 March
198919901991
  $(million) 
Municipalities304.4280.5417.8
Counties22.63.0-
District councils21.279.585.9
Regional and united councils85.680.4164.4
Electric power and gas boards197.382.787.6
Harbour boards17.8--
Area hospital boards122.9151.8148.9
Others30.98.75.0
            Total amount raised802.7686.6909.6

Table 25.19. SOURCE OF MONEY RAISED

SourceYear ended 31 March
198919901991
  $(million) 
Housing Corporation7.710.43.6
Local Authority Funds8.214.313.2
National Provident Fund86.543.567.2
Registered banks, insurance and pension funds366.4349.5637.6
Other financial intermediaries236.0116.743.4
Brokers, solicitors nominee companies, and other agents28.351.450.6
All other sources69.6100.894.0
Total amount loaned802.7686.6909.6

Contributors

  • 25.1 Treasury; Department of Statistics.

  • 25.2 Inland Revenue Department; Customs Department; Ministry of Transport; Treasury; Department of Statistics.

  • 25.3 Treasury.

  • 25.4 Department of Internal Affairs; Treasury; Department of Statistics.

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]).

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).

Road User Charges (booklet). Ministry of Transport, 1989.

Stamp Duty (pamphlet). Inland Revenue Department, 1990.

1989 Transitional Quarter Tables (Parl. paper B. 6AA).

Chapter 26. National economy

Computer tapes, Department of Statistics, Wellington.

26.1 Business statistics

A linked series of collections provide a comprehensive coverage of business in New Zealand. At five yearly intervals the Economy Wide Census covers all businesses. In the intervening years an Annual Enterprise Survey collects business information from a representative sample of these while the Annual Update of the Business Directory collects information on the size and industry of all businesses. Quarterly business surveys such as economic surveys of manufacturing and distribution, provide information on short term activity, while the Quarterly Employment Survey offers a broad picture of activity across the economy.

The 1987 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 information gained is used in the national accounts, price indexes, inter-industry tables, and several major econometric models, as well as by businesses themselves. 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. In addition to the financial data from this survey, the department also brings its Business Directory up-to-date annually. The directory is the basic register for surveys and censuses and also 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 Business Directory Update. An 'activity unit' 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* description  February
1988198919901991

*New Zealand Standard Industrial Classification

112-113Agricultural services and hunting/trappingActivity units3608344932443275
  Persons engaged12589132041320812846
12Forestry and loggingActivity units1486143013551433
  Persons engaged7356687658815819
13FishingActivity units2021198618831852
  Persons engaged5085460547044642
21Coal miningActivity units71697570
  Persons engaged11371032941947
22Crude petroleum natural gasActivity units65716976
  Persons engaged765741671800
23-29Other mining and quarryingActivity units575557556559
  Persons engaged2859293426282677
3111Slaughtering and meat processingActivity units308321330338
  Persons engaged30249308472889126550
3112Manufacture of dairy productsActivity units172151144147
  Persons engaged8126798378157474
3113-3122Manufacture of other foodsActivity units1358141414221446
  Persons engaged24029241062283723112
313Beverage industriesActivity units152154143155
  Persons engaged3369322130553134
314Tobacco manufacturingActivity units7796
  Persons engaged693743648611
321Manufacture of textilesActivity units829834817805
   Persons engaged129991190711996
322-324Manufacture of clothing and leather goods incl. footwearActivity units1620153214791491
  Persons engaged23976205471967618209
33Manufacture of wood and wood productsActivity units3077302129803093
  Persons engaged24773223482258421721
341Manufacture of paper and paper productsActivity units209188172173
  Persons engaged10686908885889729
342Printing and publishingActivity units1250132613341397
  Persons engaged18716184031730117384
351Manufacture of industrial chemicalsActivity units214207211200
  Persons engaged4862471542024255
352Manufacture of other chemical productsActivity units384352338338
  Persons engaged6855639560445757
353Petroleum refineriesActivity units16141613
  Persons engaged1001883843811
354Manufacture of petroleum and coal productsActivity units40373436
  Persons engaged933886341324
355Manufacture of rubber productsActivity units124121123122
  Persons engaged2892205022512037
356Manufacture of plastic productsActivity units459452448456
  Persons engaged7574739478817280
36Manufacture of non-metallic mineral productsActivity units938905864851
  Persons engaged9372791069356306
37Basic metal industriesActivity units201198190187
  Persons engaged6634651370806665
381Manufacture of fabricated metal productsActivity units2795266925652580
  Persons engaged26075232112215120895
382Manufacture of machineryActivity units2866295529062932
  Persons engaged18985178351748316472
383Manufacture of electrical machineryActivity units723675674679
  Persons engaged12237108641101910337
384Manufacture of transport equipmentActivity units1137113311031074
  Persons engaged21291177071707114644
385Manufacture of professional equipmentActivity units103103103102
  Persons engaged1402126312681008
39Other manufacturing industriesActivity units853838840906
  Persons engaged4267389642204002
4Electricity gas and waterActivity units707650647662
  Persons engaged17168160711365713759
51 & 53 Excl. 52Buildings and ancillary building servicesActivity units23574231022249623447
  Persons engaged7592571948673365808
52Other constructionActivity units2717278528953097
  Persons engaged21612200511980618314
 Wholesale tradeActivity units12213123571240613371
  Persons engaged82823819238117681801
62Retail tradeActivity units30271310283185931773
  Persons engaged14228814253145980141079
63Restaurants and hotelsActivity units852095121009410697
  Persons engaged54157556275700155904
7111Rail transportActivity units275233233228
  Persons engaged574329628743397
7112-7113Road passenger transportActivity units2478255624032555
  Persons engaged99741033498339566
7114Road freight transportActivity units5140524250355193
  Persons engaged18346175751790717854
7115-7117, 719Services to transportActivity units1975200621062246
  Persons engaged11599111691182012393
712Water transportActivity units281282243269
  Persons engaged10424834359456628
713Air transportActivity units445455464470
  Persons engaged88499777102229906
72CommunicationActivity units2066223321162358
  Persons engaged34297329492955028205
811BankingActivity units1615166317611877
  Persons engaged27933277342718326899
812-814 Excl. 81492Financial servicesActivity units4859502747124758
  Persons engaged14126121051225511770
82 Excl. 82302InsuranceActivity units3095312230582840
  Persons engaged14612139911390512925
83 Excl. 83113Real estate and business servicesActivity units15825175551857321136
  Persons engaged81531897709197192518
91Government administrationActivity units3440324230893613
  Persons engaged84388804918060881205
92Sanitary servicesActivity units2179215721342268
  Persons engaged12458124011198912438
931 Excl. 93105Education servicesActivity units5542559556705666
  Persons engaged69611729187677180678
932Research servicesActivity units164199207218
  Persons engaged4458442947045114
933-93401Medical and health servicesActivity units6744700872117480
  Persons engaged83720865168362385788
94 Excl. 94402Recreation servicesActivity units4158426743994903
  Persons engaged17325188981945420040
95Personal servicesActivity units7400786281248324
  Persons engaged26019271532765727227
 TotalActivity units173344177307178362186251
  Persons engaged1241175121586412034341187869

Table 26.2 is also based on the Business Directory Update and shows persons engaged by region (working proprietors and paid employees, full time equivalents) as at February 1991. The table is not a measure of total employment. Farms are not included, nor are 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, 1991

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

*All end of February. Local government regions before 1 November 1989.

 persons engaged
Northland121118648755412537817721952602902731351
Auckland21204808454429832697293040329045698982616382648
Waikato324711182029524127825224535851909128222100554
Bay of Plenty27638011476688479015010395456381482659225
Gisborne78220226316285927595921045366012142
Hawke's Bay1414951048945427709966236235991100742156
Taranaki43073473848522384667419082660776930795
Manawatu18157313845757499915789375354702559672097
Wellington1089323227011824115837307137053147851976171561
North Island total148713109177872106736429421121567224118572234699902529
Nelson-Marlborough215112869442912695806323272631890734137
West Coast45563815352097002574806591279510303
Canterbury2318121336441397970335253116981470040974149808
Otago165423210232827476814040389451681719958014
Southland174018786593581950761419702444787832800
South Island total831813066101430821981667544206752553477753285062
Extra county islands and shipping1189364122530638278
New Zealand total2330744242389221375984122278784879491441223124901187869

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.

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 1987 to 1991, while some detailed breakdowns of the main aggregates are included for the years ended March 1985 to 1989.

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 March
19871988198919901991
   $(million)  
Gross domestic product55,08861,85166,60671,54973,747
    Plus, net factor receipts from rest of world-2,767-3,206-3,229-4,182-3,804
Gross national product52,32158,64563,37667,36769,943
    Less, consumption of fixed capital4,3365,0535,5466,0806,461
National income at market prices47,98553,59257,83061,28763,482
    Plus, net current transfers from rest of world249289340405373
National disposable income48,23453,88158,17161,69263,855

Table 26.4. NATIONAL ACCOUNTS: 1960-1991*

Year ended MarchGross National ProductGross Domestic ProductNational incomeGDP
At market pricesAt 1977/78 prices*At 1982/83 prices†

*The base year 1977/78 excludes stock valuation adjustment.

The base year 1982/83 includes stock valuation adjustment.

$ NZ (millions)
19602,463  2,482  2,294  8,44115,561
19612,650  2,687  2,465  8,96016,516
19622,752  2,7832,872 2,5482,626 9,25917,068
19632,953  2,9993,114 2,7342,847 9,54317,592
19643,231  3,2733,397 2,9993,112 10,12518,664
19653,530  3,5893,721 3,2813,412 10,74419,805
19663,823  3,8774,012 3,5503,664 11,39821,011
19673,973  4,0394,190 3,6733,775 11,83021,807
19684,128  4,1834,375 3,8093,938 11,72821,620
19694,355  4,4364,642 4,0224,184 11,97822,081
19704,809  4,9075,133 4,4454,626 12,58323,196
19715,534  5,6095,832 5,0945,268 13,04924,055
19726,4526,834 6,5266,880 5,9886,285 13,38124,666
19737,4987,846 7,6177,900 6,9837,236 13,97425,759
19748,6819,162 8,8139,199 8,0668,473 14,97727,608
19759,45210,049 9,57810,131 8,7779,250 15,58028,720
197610,91411,579 11,15211,744 10,17310,636 15,84329,204
197712,78613,936 13,18914,201 11,95912,859 15,86629,246
197814,06315,21414,661 15,55114,997 14,04713,49315,43228,447
197916,261 16,563  16,972  15,264 28,506
1980  19,337  19,797  17,868 29,233
1981  22,578  23,089  20,894 29,547
1982  27,276  27,991  25,454 30,981
1983  30,678  31,536  28,441 31,097
1984  33,621  34,896  30,960 32,007
1985  37,526  39,528  34,344 33,571
1986  42,915  45,435  39.203 33,946
1987  52,321  55,088  47,985 34,824
1988  58,645  61,851  53,592 35,009
1989  63,377  66,606  57,830 34,554
1990  67,367  71,549  61,287 35,018
1991  69,943  73,747  63,482 34,564

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 production, and the categories of the final expenditure on the available goods and services.

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 26.5. GROSS DOMESTIC PRODUCT AND EXPENDITURE

ItemYear ended March
1986-871987-881988-891989-901990-91
 $(million)
Compensation of employees26,82430,26232,11932,77633,129
Operating surplus17,54717,89619,78122,25323,138
Consumption of fixed capital4,3365,0535,5466,0806,461
Indirect taxes6,6838,9559,33510,60711,172
Less, subsidies302316175167152
Gross domestic product55,08861,85166,60671,54973,747
Final consumption expenditure—
    General government8,93010,12811,05211,77112,335
    Private32,57037,22540,73343,95246,076
Value of physical increase in stocks1,1712813961,9981,306
Gross fixed capital formation12,10813,26312,89014,48114,574
Statistical discrepancy480258-321-41 
Gross national expenditure55,25961,15664,68371,88174,251
Exports of goods and services15,12216,66318,06419,23120,090
Less, imports of goods and services15,29315,96816,14119,56320,594
Expenditure on gross domestic product55,08861,85166,60671,54973,747

Table 26.6. NATIONAL INCOME AND OUTLAY

ItemYear ended March
1986-871987-881988-891989-901990-91

*Capital transfers are included in current transfers and are not separately identifiable.

 $(million)
Final consumption expenditure—
    Government—Central7,8568,9879,75310,39310,883
    Government—Local1,0741,1411,3001,3781,453
    Private—Households32,10836,69740,15643,32245,376
    Private—Non-profit organisations serving households462528576630700
Savings6,7346,5286,3865,9695,444
Appropriation of national disposable income48,23453,88158,17061,69263,855
Compensation of employees26,82430,26232,11932,77633,129
Compensation of employees from the rest of the world, net-----
Operating surplus17,54717,89619,78122,25323,138
Property and entrepreneurial income from the rest of the world, net-2,767-3,206-3,229-4,182-3,804
Indirect taxes6,6838,9559,33510,60711,172
Less, subsidies302316175167152
National income47,98553,59257,83061,28763,482
Current transfers from the rest of the world, net*249289340405373
National disposable income48,23453,88158,17061,69263,855

Table 26.7. CAPITAL FINANCE

ItemYear ended March
1986-871987-881988-891989-901990-91

*Includes all government-owned producer enterprises.

 $(million)
Value of physical increase in stocks1,1712813961,9981,306
Gross fixed capital formation—
    Private8,59810,0119,63411,32811,154
    Central government*2,7642,5402,3422,3932,666
    Local government*745713914760754
Purchase of intangible assets from the rest of the world, net-----
Net lending to the rest of the world-2,735-2,232-836-3,640-3,223
Gross accumulation10,54411,31212,45112,83912,658
Savings6,7346,5286,3865,9695,444
Consumption of fixed capital4,3365,0535,5466,0806,461
Capital transfers from the rest of the world, net-46-10130469712
Statistical discrepancy-480-25838932141
Finance of gross accumulation10,54411,31212,45112,83912,658

Minister of Finance, Ruth Richardson, on way to Debating Chamber to deliver 1991 Budget, accompanied by Prime Minister, Jim Bolger.

Table 26.8. EXTERNAL TRANSACTIONS

ItemYear ended March
1986-871987-881988-891989-901990-91
 $(million)
Current
Exports of goods11,52912,75213,99315,05415,821
Exports of services3,5933,9114,0714,1774,269
Compensation of employees from the rest of the world-----
Property and entrepreneurial income from the rest of the world608789610480920
Other current transfers from the rest of the world7478098299911,080
Current receipts16,47718,26119,50320,70222,090
Imports of goods11,39711,97611,58314,87115,497
Imports of services3,8963,9924,5584,6925,097
Compensation of employees to the rest of the world-----
Property and entrepreneurial income to the rest of the world3,3753,9953,8394,6624,724
Other current transfers to the rest of the world498520489586707
Surplus of nation on current transactions-2,689-2,222-966-4,109-3,935
Current disbursements16,47718,26119,50320,70222,090
Capital
Surplus of nation on current transactions-2,689-2,222-966-4,109-3,935
Capital transfers from the rest of the world, net-46-10130469712
Capital receipts-2,735-2,232-836-3,640-3,223
Purchase of intangible assets from the rest of the world, net-----
Net lending to the rest of the world-2735-2,232-836-3,640-3,223
Capital disbursements-2,735-2,232-836-3,640-3,223

Inter-industry studies

Inter-industry 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. 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 study also provides information on the ‘primary input’ required by each industry. These include labour, import and profits. Similarly the disposal of the outputs to consumption, capital formation and exports can be traced. 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 1986–87.

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 marketed. 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 26.9, 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. Industry detail for years later than 1988–89 is not yet available.

Table 26.9. CONTRIBUTION TO GROSS DOMESTIC PRODUCT (GDP) BY PRODUCTION GROUP

Production groupYear ended March
1984-851985-861986-871987-881988-89
 $(million)
Market production groups
Agriculture3,0402,9563,0463,5153,892
Fishing and hunting130177223223240
Forestry and logging6238711,0901,2451,442
Mining and quarrying422582607671747
Food, beverages, and tobacco2,6482,5112,9763,3223,823
Textiles, apparel, and leather7798861,031850814
Manufacture of wood products593671689663761
Manufacture of paper products, and printing1,1381,2411,4311,6951,684
Manufacture of chemicals, petroleum, rubber, plastic7879731,3701,3561,428
Manufacture of non-metallic mineral products406408417409388
Basic metal industries385392405380341
Manufacture of fabricated metal products2,1782,3722,6832,7372,549
Other manufacturing1021351249781
Electricity, gas, and water1,1161,4421,7101,7532,004
Construction2,3342,6872,9453,2483,282
Trade, restaurants, and hotels7,4378,64310,2479,85510,429
Transport and storage2,1432,3722,7863,1253,386
Communication1,0341,1561,5832,0742,150
Financing, insurance, real estate, and business services4,7135,8887,5809,16510,141
Ownership of owner-occupied dwellings1,9292,7563,4424,0694,920
Community, social, and personal services1,4861,7661,9072,0762,310
Nominal industry (bank service charge)-1,276-1,574-2,671-2,708 
        Total, market production groups34,14739,31246,09649,85854,104
Non-market production groups
Central government services3,9144,6025,7756,5707,170
Local government services474534591625720
Private non-profit services281320384440495
Domestic services of households2729354867
            Total, non-market production groups4,6965,4866,7867,6838,451
            Total all production groups38,84344,79852,88257,54262,555
Plus, goods and services tax--1,4673,2503,454
Plus, import duties604535570847507
Plus, other indirect taxes8110316921189
Gross domestic product39,52845,43555,08861,85166,606

In Table 26.9, 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, which include separate series for private, central and local government sectors.

Table 26.1. GROSS FIXED CAPITAL FORMATION BY PRODUCTION GROUP

Production groupYear ended March
1985-861986-871987-881988-891989-90
 $(million)
Market production groups
Agriculture554466419523682
Fishing and hunting3530512871
Forestry and logging2826162934
Mining and quarrying18030410311292
Manufacture of food, beverages, and tobacco358478571443574
Textiles, apparel, and leather10758614146
Manufacture of wood products158109455657
Manufacture of paper products, and printing228345261354419
Manufacture of chemicals, petroleum, rubber, plastic649297102103122
Manufacture of non-metallic mineral products4547788252
Basic metal industries5293162528362
Manufacture of fabricated metal products270237259177159
Other manufacturing1014645
Electricity, gas, and water542583590565571
Construction192219232219204
Trade, restaurants, and hotels1,3711,2811,5781,4561,875
Transport and storage1,131811861447829
Communication444596482633764
Financing, insurance, real estate and business services1,6572,1803,1453,2463,006
Ownership of owner-occupied dwellings1,8502,1992,5592,5883,045
Community, social, and personal services288308408303410
            Total, market production groups10,62810,90312,08111,49113,081
Non-market production groups
Central government services695772701813836
Local government services314315338422379
Private non-profit services102118143164185
Domestic services of households-----
            Total, non-market production groups1,1121,2051,1821,4001,401
            Total, all production groups11,74012,10813,26312,89014,481

Table 26.11. GROSS FIXED CAPITAL FORMATION BY TYPE OF CAPITAL GOOD

Year ended MarchResidential buildingsNon-residential buildingsOther constructionLand improvementsTransport equipmentPlant, machinery, and other equipmentTotal
    $(million)   
19872,4132,4021,3651311,6914,10712,108
19882,7542,9481,1271271,7364,57013,263
19892,8332,9151,2541621,0644,66212,890
19903,3552,4631,3991971,7995,26914,481
19913,5032,1091,5071851,7855,48714,574

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 measure which removes capital gains and losses caused by holding stocks purchased at prices higher or lower than those ruling during the year.

Table 26.12. INCREASE IN STOCKS

Production groupYear ended March
1986-871987-881988-891989-901990-91

*Includes reclassification of units from production group 16 to 5 for 1990-91.

Included with other industries for year prior to 1990-91.

 $(million)
Market production groups
Agriculture4614732207181
Fishing and hunting-----
Forestry and logging8329361,0921,0841,078
Mining and quarrying3-189-95
Manufacture of food, beverages, and tobacco*203-12079-24486
Textiles, apparel, and leather4-35-449-12
Manufacture of wood products20-11-33-2658
Manufacture of paper products, and printing-196-33-1523
Manufacture of chemicals, petroleum, rubber, and plastic-29-52-126104-37
Manufacture of non-metallic mineral products-430-29-13-16
Basic metal industries-16112911-31
Manufacture of fabricated metal products-9213-30389-63
Other manufacturing14-16-4-5
Electricity, gas, and water29-30-18-7-8
Construction-313-44-9
Trade, restaurants, and hotels*307-640-198592-402
Transport and storage--3-10113
Communication-12145-13-27-8
Financing, insurance, real estate, and business services-----
Ownership of owner-occupied dwellings-----
Community, social, personal services3-1418206
Local government market industries†----29
            Total, market production groups1,1642823931,9941,305
Non-market production groups
Central government services7-233-
Local government services-1111
Private non-profit services-----
Domestic services of households-----
            Total, all production groups1,1712813961,9981306

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 1983 onwards. 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 visitors in New Zealand, and adding that of New Zealanders overseas.

  • Table 26.13(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 26.13(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 26.13. FINAL CONSUMPTION EXPENDITURE OF RESIDENT HOUSEHOLDS (A) BY PURPOSE

 Year ended 31 March
 1985-861986-871987-881988-891989-901990-91

*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
    Food3,3733,9324,5614,8465,2765,648
    Beverages*8951,0881,1441,2571,3751,647
Clothing and footwear1,8482,2392,3832,2552,4072,371
Housing
    Imputed rent of owner-occupied dwellings3,6144,3805,1736,2406,7827,375
    Rental payments and associated costs9571,1141,2871,5101,6101,690
Household goods and services
    Fuel and power5727168389231,0111,087
    Furniture, floor coverings and appliances1,1821,3721,4221,3771,4271,354
    Textiles and tableware504606647655688684
    Other goods and services5907618809881,0201,093
    Health and medical goods and services1,3511,7282,1002,3902,5552,908
Transport
    Cars, motorcycles and other vehicles1,7961,8542,0442,0162,2852,063
    Vehicle operation†2,4442,4962,7773,1523,4593,408
    Public transport9601,1121,3101,4381,5071,658
    Recreation and education2,2492,6733,0093,2853,4753,544
    Hotels and restaurants*2,4182,8593,2323,2203,3783,392
Other goods and services
    Tobacco5636878699311,0861,163
    Personal goods and services8981,1061,2551,3641,4521,555
    Postal and telephone401518656732913939
    Services not elsewhere classified†9201,1331,3311,4551,5721,716
    Total expenditure by households in New Zealand27,53732,37436,91740,03443,27745,296
Less, Non-resident households' expenditure in
New Zealand. Plus, resident households'
expenditure overseas
1982662201224579
    Final consumption expenditure of resident households27,33932,10836,69740,15643,32245,376
(B) BY TYPE
 Year ended 31 March
 1985-861986-871987-881988-891989-901990-91
 $(million)
Total non-durable goods7,8389,11510,47211,23612,37113,440
Total durable goods7,9619,1269,8459,98810,67310,434
Total services†11,73814,13316,60018,81020,23321,422
    Total expenditure by households in New Zealand27,53732,37436,91740,03443,27745,296
Less, Non-resident households' expenditure in
New Zealand. Plus, resident households'
expenditure overseas
1982662201224579
Final consumption expenditure of resident households27,33932,10836,69740,15643,32245,376

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 26.14. CONTRIBUTION TO GDP AT CONSTANT 1982-83* PRICES BY PRODUCTION GROUP

Industrial groupsYear ended March
19851986198719881989

*Year ended 31 March 1983.

For imputed bank service charge.

 $(million)
Agriculture1,9382,4292,5892,9882,708
Fishing and hunting96102102109131
Forestry and logging378390376404418
Mining and quarrying385555577496617
Food, beverages, tobacco2,0851,9252,1762,0092,138
Textiles, apparel, and leather819797841781623
Wood and wood products521505469460437
Paper, printing, and publishing9869901,0441,0961,012
Chemicals, petroleum, and plastics817790803754769
Non-metallic mineral products412427424385350
Basic metal industries371315307324441
Machinery and metal products, miscellaneous2,2122,1151,9801,8941,708
Electricity, gas, water1,0761,1071,1391,1451,180
Construction1,8131,8651,8041,8791,670
Trade, restaurants, and hotels6,4906,2376,4526,3336,180
Transport and storage1,9831,9221,9621,9572,051
Communications1,0481,1361,2321,3041,418
Financing, insurance, real estate and business services3,9824,2494,6004,8964,939
Owner-occupied dwellings1,2631,2921,3211,3461,372
Community and personal services1,5981,6711,7041,7071,656
General government services4,1084,0854,0754,0293,957
Plus, unallocated indirect taxes489498522570567
Less, nominal industry†-1,296-1,457-1,673-1,855-1,788
        Gross domestic product33,57133,94634,82435,00934,554

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. Industry detail for years later than 1988–89 is not yet available.

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. Production groups from the annual constant price series have been combined in the quarterly index.

Actual and seasonally adjusted quarterly indexes of GDP at constant prices are shown in the graph below.

Both actual and seasonally adjusted indexes of GDP by industry group at constant prices are shown in Table 26.14 for the four quarters to June 1991.

Table 26.15. INDEXES OF GROSS DOMESTIC PRODUCT AT CONSTANT PRICES*

Industrial groupsQuarter ended
September
1990
December
1990
March
1991
June
1991

*Quarterly indexes are shown as annual equivalents. Base: 1982-83 (= 100.0), stock valuation adjustment is included.

Actual
    Agriculture10917314283
    Fishing, hunting, forestry, mining135195173136
    Manufacturing971039693
    Electricity, gas, water133118111116
    Construction991027878
    Trade, restaurants, hotels981059596
    Owner-occupied dwellings117118119119
    Transport, communications, business and personal services140142139141
    General government services95959097
            Gross domestic product109.5118.0108.5104.6
Seasonally adjusted
    Agriculture126129126124
    Fishing, hunting, forestry, mining156148163178
    Manufacturing101999792
    Electricity, gas, water122121117117
    Construction97988676
    Trade, restaurants, hotels1011039899
    Owner-occupied dwellings117118119119
    Transport, communications, business and personal services141140140142
    General government services98999998
            Gross domestic product112.5112.2110.2109.1

Expenditure on gross domestic product. Estimates of expenditure on gross domestic product at constant prices have been developed from 1982–83 onwards.

INDEX OF GDP
At constant prices

Table 26.16. EXPENDITURE ON GROSS DOMESTIC PRODUCT AT CONSTANT 1982-83 PRICES

Expenditure aggregateYear ended March
198819891990*1991*

*Provisional.

Final consumption expenditure
    A. General government6053611061286115
    B. Private21568219392214122092
Increase in stocks-300-324784626
Gross fixed capital formation944692141031310421
Gross national expenditure36769369393936639255
Exports of goods and services11647119121155012561
Less Imports of goods and services13563135881562916176
Expenditure on GDP34853352633528735640

26.3 Balance of payments and overseas debt

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 balance of payment statement for the three years ended 31 March 1988, 1989 and 1990 are shown in the table below. Tables in respect of Foreign Direct Investment in New Zealand and New Zealand Direct Investment Overseas are also shown.

New Zealand's economy is small and is dependent on foreign trade. In the three years to March 1990, New Zealand achieved annual balance on merchandise trade surpluses ranging from $1,373 million to $3,319 million. However, these were more than offset by the deficits in the balance on invisibles, such as trade in services, profits, dividends, interest and transfers, resulting in balance on current account deficits for all the three years. These deficits on current account ranged from $707 million to $2,506 million. As a percentage of gross domestic product (GDP) the current account deficits for the year ended March 1988, 1989 and 1990 were 4.2 percent, 1.1 percent and 3.1 percent, respectively.

New Zealand's balance of payment is dominated by the fluctuating in its earnings from the merchandise exports and its payments for merchandise imports. Over the last three years, the value of merchandise exports averaged 68.5 percent of total current account receipts and averaged 21.4 percent of GDP.

The value of merchandise imports averaged 53.1 percent of total current account payments and averaged 18.1 percent of GDP. Volumes of imports are significantly influenced by internal demand while exports are still predominantly dependent on primary production. Changes in the value of the New Zealand dollar and relative prices of exports and imports (the Terms of Trade) are also important to New Zealand's balance of payments.

The net apparent capital inflow (i.e. the difference between total inflows and outflows) was $1,239 million (i.e. a net inflow), $–979 million (i.e. a net outflow) and $3,587 million (i.e. a net inflow) for the years ended March 1988, 1989 and 1990 respectively. These net inflows together with the current account deficits for these three years meant that the change in reserves due to transactions was a decrease of $1,268 million for 1988, a decrease of $1,685 million for 1989 and an increase of $1,392 million for 1990.

Table 26.17. BALANCE OF PAYMENTS ANNUAL SUMMARY1

Item1987-881988-891989-90
CreditDebitCreditDebitCreditDebit

1Year ended March accrual basis.

2The sum of exports/imports as published in External Trade Statistics and Adjustments to Balance of Payments Concepts.

3The sum of the credits for Transportation, Travel, Insurance, Other services and Government current transactions (exports of services) and the sum of the corresponding debits (imports of services).

4Refers to the New Zealand investments of foreign enterprises that are made to acquire a lasting interest in a New Zealand enterprise, the foreign investors' purpose being to have an effective voice in the management of the New Zealand enterprise. The standard rule used to determine foreign direct investment in a New Zealand enterprise, is that the foreign investor owns at least 25 percent of the New Zealand enterprise.

5Refers to the overseas investments of New Zealand enterprises that are made to acquire a lasting interest in a foreign enterprise, the New Zealand investors purpose being to have an effective voice in the management of the foreign enterprise. The standard rule used to determine New Zealand direct investment in a foreign enterprise, is that the New Zealand investor owns at least 25 percent of the foreign enterprise.

6Includes investments in long-term marketable securities (bonds) and investments of less than 25 percent in the equity of corporate enterprises. Series commenced in 1989/90.

7From 1989/90, this series is included with Other capital—other sectors.

8Covers all other changes in long-term non-official financial claims and liabilities apart from direct and portfolio investment. Series commenced in 1989/90.

9Refers to the net international flows of foreign exchange through the banking system as a result of all international transactions. This occurs through the bank accounts financial institutions have with other financial institutions, commonly referred to as Nostro and Vostro accounts.

10Refers to the short-term transactions (excluding direct investment capital) of the non-official sector. Series commenced in 1989/90.

11Long-term borrowing and repayments by the Reserve Bank from/to all foreign sources excluding the International Monetary Fund.

12Long-term borrowing and repayments by the Reserve Bank from/to the International Monetary Fund.

13Short-term government borrowing less repayments.

14Short-term Reserve Bank borrowing less repayments.

15Reserves cover transactions in those assets which are available to the Government for debt management purposes and also to meet any foreign exchange needs.

16Exports (f.o.b.) less imports (f.o.b.)

17Exports of services less imports of services.

18The sum of the balance on services, International investment income credits, and Transfers credits less the sum of International investment income debits and Transfers debits.

19The sum of the balances on Merchandise trade and Invisibles.

20The sum of long-term government borrowing, Reserve Bank borrowing, Other official borrowing (ceased in 1985/86), Capital equipment credits (ceased in 1987/88), short-term government borrowing (net) and short-term Reserve Bank borrowing (net).

21The sum of long-term Government Repayments, long-term Reserve Bank Repayments, Other Official Repayments (ceased in 1986/87) and Capital Equipment Debits (ceased in 1988/89).

22A balancing item so that Total Credits equal Total Debits within the Balance of Payments statement.

23Total Capital Inflows (including the Residual) less Total Capital Outflows. Omissions form part of the residual. Therefore, the inclusion of the residual as part of the Net Apparent Capital Inflow means that these capital flows are apparently measured.

24Total change in Reserve Holdings less the Counterparts to the Reserve Valuation and Allocation/Cancellation Changes. Also equals the sum of the Balance on Current Account and Net Apparent Capital Inflow.

25As at the last working day in March.

Current account
 NZ$(million)
    Exports/imports (as published in external trade statistics)124471206014071116731505615326
    Adjustments to balance of payments concepts220-1091-164-1084-140-1783
    Exports/imports (f.o.b.)2126671097013908105891491613543
    Transportation147017411584171216482164
    Travel161114871547199417282124
    Insurance18781011512109
    Other services618125165512856231273
    Government current transactions6723210719678126
    Export/import of services3378447893903530140885796
    International investment income10404516838393515104244
    Transfers102274412127421693818
Long-term capital transactions (excluding official capital)
    Foreign direct investment in NZ4238 725 1543 
    NZ direct investment overseas5 938 226 1477
    Portfolio investment increasing assets6     116
    Portfolio investment decreasing assets6    26 
    Portfolio investment—increasing liabilities6    582 
    Portfolio investment—decreasing liabilities6     296
Capital movements of State owned enterprises-increasing assets7 310 105  
    Capital movements of State owned
enterprises-decreasing assets7
317 105   
    Capital movements of State owned
enterprises-increasing liabilities7
1208    2260
    Capital movements of State owned
enterprises-decreasing liabilities7
   1079 602
    Other capital-other sectors-increasing assets8     413
    Other capital-other sectors-decreasing assets8     47
    Other capital-other sectors-increasing
liabilities8
     3478
    Other capital-other sectors-decreasing
liabilities8
     2523
Short-term capital transactions (excluding Official Capital)
    Deposit money banks-liabilities (net)9     -107
    Deposit money banks-assets (net)9     -44
    Other sectors-liabilities (net)10     4315
    Other sectors-assets (net)10     97
Long-term official capital transactions (excluding reserves)—Government borrowing2933 1901  2985
    Government repayments 4310 3308 1991
    Reserve Bank borrowing-other sources11 - - -
    Reserve Bank repayments-other sources11 108 704 95
    Reserve Bank borrowing—I.M.F.12- - - 
    Reserve Bank repayments—I.M.F.12 - - -
Short-term official capital transactions (excluding reserves)
    Government borrowing (net)13 -453 146 442
    Reserve Bank borrowing (net)14 - 56 -60
Changes in reserve assets15
    Monetary gold - - -14
    Special drawing rights-total change in holdings -1 -15 -
    Special drawing rights-counterpart to allocation/cancellation - - -
    Special drawing rights-counterpart to valuation changes - - -
    Special drawing rights-change due to transactions -1 -15 -
    Reserve position at I.M.F.—total change in holdings - 17 82
    Reserve position at I.M.F.—counterpart to valuation changes - - 4
    Reserve position at I.M.F.—change due to transactions - 17 78
    Reserve Bank reserves—total change in holdings -4572 687 2218
    Reserve Bank reserves—counterpart to valuation changes -442 80 172
    Reserve Bank reserves—change due to transactions -4130 607 2046
    Treasury reserves—total change in holdings 2584 -2223 -708
    Treasury reserves—counterpart to valuation changes -280 71 12
    Treasury reserves—change due to transactions 2863 -2294 -719
Balances and totals—
    Balance on merchandise trade16 1697 3319 1373
    Balance on services17 -1005 -1398 -1708
    Balance on invisibles18 -4203 -4025 -3568
    Balance on current account19 -2506 -707 -2195
    Total official capital-borrowing20 2480 2102 3367
    Total official capital-repayment21 4419 4012 2086
    Residual22 3741 -1226 -2681
    Net apparent capital inflow23 1239 -979 3587
Summary of reserve transactions—
    Total change in reserves -1990 -1521 1579
    Counterpart to valuation changes, etc. -722 164 187
    Change due to transactions24 -1268 -1685 1392
    Total reserves at end of March25 5554 4033 5612

Motor spirit excise duty on petrol, lpg and cng constitutes 50 percent of the roading revenue. Filling underground petrol storage tanks.

Table 26.18. FOREIGN DIRECT INVESTMENT IN NEW ZEALAND BY REGION*

 Form of investment change
Equity capital†Unremitted earnings‡Other long-term capitals§Short-term capital|Total investment change

*Direct investment is an asset (debit) for the economy of the direct investor and a liability (credit) for the economy in which the direct investment enterprise is located. ‘Foreign Direct Investment in New Zealand’ is therefore shown net' as a credit. Regions represent the region in which the foreign direct investor is located A ‘minus’ figure indicates that foreign disinvestment offsets foreign investment in New Zealand.

†Equity Capital' is the total consideration paid in respect of the purchase and sale of shares in New Zealand direct investment enterprises.

‡Unremitted Earnings' includes the unremitted earnings of New Zealand branches and also foreign direct investors' portions of the undistributed profits of New Zealand direct investment enterprises. These are regarded as providing additional capital to New Zealand enterprises.

§Other long-term capital' represents the net change in long-term liabilities of New Zealand subsidiary and branch enterprises, such as long-term borrowings by the New Zealand subsidiary enterprise from the foreign direct investor.

||Short-term capital' represents the net change in short-term liabilities of New Zealand direct investment enterprises such as accounts payable to their foreign direct investors.

 NZ$(million)
1987-88
United Kingdom-32194-7583170
Other EC3132-9-2529
Australia73232-78-115114
United States-348-55-38-47
Canada-8-17-3-22
Japan63-8-29-619
Other OECD-1259-1050
Asia-Oceania-22-83-3-86
Central and South America-Caribbean713-37
Other countries4-1--3
            Total 1987-88132485-267-113-238
1988-89
United Kingdom301638428306
Other EC128302675
Australia320-50-30103343
United States5210-374469
Canada10-4649-310
Japan4-72-31-31
Other OECD124-29-2-15
Asia-Oceania651-984-27
Central and South America-Caribbean---3-2-5
Other countries-1 -1
            Total 1988-8950584-31167725
1989-90
United Kingdom1,189-6956816578
Other EC26-623-1132
Australia65368-10-193518
United States32584120214
Canada-3-20--1-25
Japan342-2345
Other OECD1825--935
Asia-Oceania31079-2198
Central and South America-Caribbean1532341
Other countries--1177
            Total 1989-901,923-418125-871,543

Table 26.19. NEW ZEALAND DIRECT INVESTMENT OVERSEAS BY REGION*

 Form of investment changeShort-term capital|Total investment change|
Equity capital†Unremitted earnings‡Other long-term capital§

*New Zealand Direct Investment Overseas' is shown ‘net’ as an asset. Regions represent the region in which the foreign direct investment enterprise is located A ‘minus’ figure indicates that New Zealand disinvestment overseas offsets New Zealand investment overseas.

†Equity capital' is the total consideration paid in respect of the purchase and sale of share in foreign direct investment enterprises.

‡Unremitted earnings' includes the unremitted earnings of foreign branches and also the New Zealand direct investors' portions of the undistributed profits of foreign direct investment enterprises. These are regarded as providing additional capital to foreign enterprises.

§Other long-term capital' represents the net change in long-term assets of New Zealand direct investors, such as long-term lending by New Zealand direct investors to their foreign subsidiary enterprises.

||Short-term capital' represents the net change in short-term assets of New Zealand direct investors, such as accounts receivable from their foreign subsidiary enterprise.

1987-88  NZ$(million)  
United Kingdom940-10-61-22
Other EC--186 -7-193
Australia116258348-15707
United States2311218-4247
Canada-----
Japan 1 -7-193
Asia-Oceania2541100-16151
Central and South America-Caribbean-24-832
Other countries-11-1-
            Total 1987-88132485-267-113-238
1988-89
United Kingdom 11-56-39-84
Other EC 1 -11-10
Australia1001452675517
United States31812-102-70
Canada -98---98
Japan51 -11-10
Asia-Oceania330-14-316
Central and South America-Caribbean-37-52172
Other countries 1-111
            Total 1988-89112144157-188226
1989-90
United Kingdom912-7751-5
Other EC-2-9--8
Australia6271301,4643622,583
United States42-2,015-47-2,056
Canada16823044407
Japan17-817
Asia-Oceania-115485589682
Central and South America-Caribbean-97-27028-145
Other countries-1-13
            Total 1989-907981,030-8494981,477

Totalisator duty totalled $46.1 million for the year to 31 July 1991. Ascot sprint, Ellerslie Racecourse.

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.

Three criteria have to be met for a transaction to be included in the capital account:

  • a transaction should involve a change of ownership, including the creation or liquidation of an asset or liability.

  • an asset or liability must represent actual or claims that are legally in existence.

  • a transaction should involve a foreign financial asset or liability.

The classification used in the capital account has changed since 1984/85. The term 'compensatory financing' was used to indicate government borrowing to maintain reserves and its identification was important in a regulated economy with a fixed exchange rate regime. However, since the foreign exchange market was deregulated in December 1984 and the New Zealand dollar floated in March 1985, there has been no need for the Government to borrow specifically to finance the balance of payments by maintaining reserves. The emphasis in the New Zealand balance of payments statement thus switched from the 'balance before compensatory financing' to 'net apparent capital inflow'.

Reserves. The reserves section of the New Zealand balance of payments statement shows the changes in the amount of foreign reserve assets of New Zealand. These changes occur due to transaction and valuation effects.

Reserves cover transactions in those assets which are available to the Government for debt management purposes and also to meet any foreign exchange needs.

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 have been 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.

Overseas debt is the outstanding total gross liabilities, excluding equity capital, of New Zealand located organisations to all overseas organisations and persons. It includes the liabilities of New Zealand organisations to their overseas parents, subsidiaries or branches. Information is available on:

  • The amount of debt held by each economic sector,

  • The term structure of the debt;

  • The main currencies in which the debt is denominated;

  • The types of liability instrument used to raise the debt;

  • A repayment schedule of the debt based on time to run to scheduled maturity. (See table below.)

For conceptual reasons, two types of liabilities have been excluded from the statistics of overseas debt. These are:

  • Equity capital; and

  • Contingent liabilities.

Debt does not represent an obligation to pay, but is an obligation to repay. Therefore, equity capital does not represent an obligation to repay the owners and hence is excluded from the debt statistics. A liability must represent an actual claim that is legally in existence and hence contingent liabilities are excluded.

Furthermore, while two other particular types of liability do fall within the conceptual definition, they have not been included in the debt statistics for data availability reasons.

These are:

  • Investment in domestically issued bonds and stock by non-residential organisations and individuals directly or through New Zealand organisations acting as their nominee or agent; and

  • The overseas liabilities of New Zealand persons and households.

Table 26.2. ALL-TERM OVERSEAS DEBT*

PeriodPrivateOfficial governmentOther central governmentTotal

*All-term is the sum of long and short-term debt. Prior to September 1989, only long-term debt is available.

 $ NZ(million)
1989—September18,34118,6739,07746,091
December20,08718,8548,60347,544
1990—March20,60220,1048,06548,771
June19,53520,9497,35747,841
September20,95720,6086,70648,271
December24,19821,1077,78353,088
1991—March22,54920,1988,10050,847
June22,23720,1238,05450,413

Table 26.21. ALL-TERM OVERSEAS DEBT BY LIABILITY TERM

 30 June 199031 March 199130 June 1991

*Those obligations which have an original maturity date of 12 months or less. This category also includes the known liabilities of organisations in receivership, liquidation and statutory management, unless the liabilities have been restructured.

†Refers to the portion of original long-term liabilities required to be met within one year of the survey date.

‡Those obligations which are not expected or could not be required to be met within one year of the survey date.

§Includes the imputations for non-response and a constant estimate for known non-surveyed firms.

 $ N(million)
Current liability*16,00415,90716,595
Current portion of long-term liabilities†2,6484,7444,527
Long-term liabilitie‡27,79028,66027,670
Unallocated estimate§1,4001,5361,621
    Total47,84150,84750,413

Table 26.22. ALL-TERM OVERSEAS DEBT BY CURRENCY OF DENOMINATION*

 30 June 199031 March 199130 June 1991

*The currency of denomination is the currency in which the amount repayable is fixed This need not be the same as the currency provided, nor does it need to be the actual or scheduled currency of repayment.

  $ NZ(million) 
US Dollars22,63322,85721,904
NZ Dollars7,1058,8949,352
Japanese Yen7,5537,8387,824
Australian Dollars1,5962,0682,071
Pounds Sterling2,0661,9191,828
Swiss Francs1,4891,7491,669
Deutschemarks1,7321,6301,557
Other currencies2,2682,3572,589
Unallocated estimate1,4001,5361,621
Total47,84150,84750,413

Table 26.23. ALL-TERM OVERSEAS DEBT BY TYPE OF LIABILITY

 30 June 199031 March 199130 June 1991

*Bonds are written promissory agreements, usually marketable, in which one party promises to pay a stated sum on demand or on a specified date to the legal holder of the document. It also involves a promise to pay stated interest at specified intervals over the term of bond. This category includes debentures, convertible notes and medium term notes issued by private placement.

†Loans are direct agreements between borrowers and lenders involving the transfer of funds to the borrower and the repayment to the lender over time. This category includes secured and unsecured loans, trade related loans, overdrafts, roll-over loans, revolving credit advances, advances from overseas parent and/or subsidiary companies, the use of swingline facilities and non-marketable debentures and notes.

‡Deposits are funds placed by an overseas client in the care of a New Zealand organisation, usually a bank/financial institution, to be kept in their client's account. Inter-bank deposits are part of this category. These are accounts in credit from overseas banks held by New Zealand banks and the overdrawn accounts of New Zealand banks held by overseas banks.

§Bills are marketable, written promissory agreements, in which one party promises to pay a stated sum on demand or on a specified date to the legal holder of the document. They are usually issued and traded at a discount from the face value. This category includes bills of exchange, commercial paper, including eurocommercial paper, euronotes and certificates of deposit.

||Accounts payable are non-marketable liabilities arising from deferred payment for imported goods and services (i.e. trade credit), overdue interest and the acquisition of financial assets.

  $ NZ(million) 
Bonds*17,89219,53718,868
Loans†18,13618,66617,156
Deposits‡5,8607,4388,799
Bills§3,5462,8873,256
Accounts payable|1,007783713
Unallocated estimate1,4001,5361,621
    Total47,84150,84750,413

Table 26.24. ALL-TERM OVERSEAS DEBT BY MATURITY PROFILE*

 30 June 199031 March 199130 June 1991

*The maturity profile analysis is based on time to run to scheduled maturity, i.e. the residual maturity at the survey time point.

†Included here are the known liabilities of organisations in receivership, liquidation and statutory management.

  $ NZ(million) 
At call†5,4432,9673,511
2-89 days8,6439,89111,755
90-179 days2,8664,1453,593
6 months and under 1 year1,6723,6382,469
1 year and under 2 years3,5563,7694,180
2-5 years12,63013,44712,825
Over 5 years11,63211,45410,460
Unallocated estimate1,4001,5361,621
    Total47,84150,84750,413

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.

Contributor

  • 26.1–26.3 Department of Statistics.

Further information

Business statistics

New Zealand Business Patterns. Department of Statistics (annual).

New Zealand Enterprise Survey 1988–89. 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 (ed). Reserve Bank of New Zealand, 1981.

Key Statistics. Department of Statistics (monthly).

New Zealand System of National Accounts. Department of Statistics (annual).

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, 1987. Department of Statistics.

Balance of payments

Overseas Balance of Payments. Department of Statistics.

Appendix A. Weights and measures

All the statistics in this volume are in metric (SI) units, except for ship tonnages (not cargo).

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, producer 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 non-profit 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, less 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 reimports 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

Hot Off the Press—Information releases

Key Statistics (monthly)

New Zealand in Profile 1992 (annual)

Statistics Catalogue 1992 (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).

Business and economic

Agriculture 1990 (annual)

All about the Consumers Price Index

Business Activity 1991 (annual)

Economy Wide Census (1987):

    —Agricultural Services, Forestry and Fishing

    —Building, Construction

    —Distribution

    —Education, Social and Recreational Services

    —Finance, Insurance and Business Services

    —Manufacturing

    —Mining and Quarrying

The Fiscal Impact on Income Distribution 1987/88

Household Income and Outlay Accounts for New Zealand 1982/83-1987/88

Inter-Industry Study of the New Zealand Economy 1986/87

National Accounts (annual) 1988/89

Overseas Trade 1990 (annual)

Social and demographic

Demographic Trends 1990 (annual)

Elderly Population of New Zealand

The Human Face of New Zealand

Incomes 1990 (annual)

Justice 1990 (annual)

The New Zealand Labour Force (quarterly)

Labour Market 1991 (annual)

New Zealand Life Tables 1985-87

New Zealand Social TrendsEducation

New Zealand Social TrendsIncomes

Population, Labour Force and Household Projections 1991-2031

Women in New Zealand

Testing Time

Tobacco Statistics 1991

1991 Census of Population and Dwellings reports

Location and Increase of Population and Dwellings

    —Final Local Authority Population and Dwelling Statistics

Regional reports (to be published in 1992)

    —Northland/Auckland

    —Waikato/Bay of Plenty

    —Gisborne/Hawkes Bay

    —Taranaki/Manawatu-Wanganui

    —Wellington

    —Nelson-Marlborough/West Coast

    —Canterbury

    —Otago/Southland

    —Regional Summary

Topic reports

    —Provisional National Summary (to be published 1992)

    —New Zealand's Population Summary (to be published 1992)

    —New Zealand's Population Multi-Cultural Society (to be published 1992)

    —New Zealanders at Work (to be published 1992)

    —New Zealand's Social Status (to be published 1992)

    —New Zealanders at Home (to be published 1992)

    —New Zealand Maori Population and Dwellings (to be published 1992)

    —Pacific Island Population and Dwellings (to be published 1992)

Reference reports

    —Concepts, Definitions and Classifications

    —Range and Availability of Statistics (to be published 1992)

Statistical classifications and standards

A Guide to New Zealand Standard Statistical Classifications

New Zealand Standard Classification of Occupations (NZSCO)

New Zealand Standard Country Codes (NZSCC)

New Zealand Standard Institutional Sector Classification Manual (NZSIC)

New Zealand Standard Industrial Classification

New Zealand Standard Classification by Broad Economic Categories

New Zealand Harmonised System Classification (NZHSC)

New Zealand Standards for Financial Statistics

Reviews of statistics

Report of the Review Committee on Health Statistics, 1992

Report of the Review Committee on Income and Wealth Statistics, 1991

Report of the Review Committee on Macro-economic Statistics, 1991

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. Acts of Parliament 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, 140
ACCESS training scheme, 227–28
Accident Compensation Corporation, 146–48
Accidents, 146–53
cases of, treated in public hospitals, 143–44
Safety
fatal, 149–53
Safety
at home, 144, 152
Safety
motor vehicle, 143, 149–51
Safety
prevention of,
Safety
water, 151, 152
Accommodation benefit, 114, 116
Accommodation, tourist, 216
Acts of Parliament, 14–15
Adoption, 122
Adult education
Continuing education
Advertising, 207–08
Aerial topdressing, 269–70, 355–56
Africa, relations with, 46
Age benefits, 115, 117, 118–9
Age distribution,
by ethnic group, 74–7, 97
by sex, 73–4
of population, 70–1, 73–4
of prisoners, 188
of new mothers, 68–9
at death, 70–1
Agricultural land, 267–69
Agricultural costs, price index, 271
Agricultural Production Account, 270
Agricultural production
indicators of, 270
marketing, of products, 275–76, 278–79, 282, 284, 286, 287, 288
Agriculture and Fisheries, Ministry of, 26, 245–46, 271–72
Agriculture, aspects of, 267,68
capital expenditure, 269
cattle, 268, 270, 272
costs of, 271
crops, 285
current situation and trends, 267–68
dairy farming, 274, 280–83
deer farming, 268, 274
farm employees, 269
goat farming, 268, 274
irrigation, 259
machinery, 269
numbers and types of farms, 268–69
pig farming, 268, 270, 283
Production Price Index, 270–71
quarantine, 272
research on, 271–2
sheep, and sheep farming, 268, 269, 270, 274, 276–77, 278–80
Aid, overseas, 46–7
Air force, 59
Air freight, 354–55
Air mail, 352–53, 364
Air pollution, 131, 261–62
Air Services Licensing Authority, 351
Air transport,
Aviation
Airways Corporation of New Zealand Ltd, 351–52
Alcohol
consumption, 134–35
excise on, 441
and health, 134–35
legal aspects of consumption, 372–73
Alcoholic Liquor Advisory Council, 134–35
Alexander Turnbull Library, 201
Aluminium, industry, 323
Amenities, of dwellings, 85
Animals and plants,
Vegetation and wildlife
Animals, farm,
Livestock
Anniversary day holidays, provincial, 238
Antarctica, 50, 51, 54
Antiquities, protection of, 198, 199
ANZUS (Australia, New Zealand and United States) Treaty, 52–3
Apiaries, 284–85
Appeals against conviction, 185–86
Apples and pears, 286–87
Appliances, in dwellings, 85
Apprentices, 228
Aquaculture, 302
Archaeological sites, protection of, 199
Area health boards, 124, 125–26, 131
Area, total land, 1, 254
Armed forces, 51–9
assistance to community, 55
exercises overseas, 53–5
New Zealand Army, 58
Royal New Zealand Air Force, 59
Royal New Zealand Navy, 57
strength of, 56
Arrivals, in country
(Immigration), 72–3
Art galleries and museums, 197–98
Arts and cultural activities, 193–95
awards in, 193–95
support of, 193–95
Arts Council (Queen Elizabeth II), 193–95
ASEAN (Association of South-east Asian Nations), 43, 393
Asian countries, relations with, 43, 391, 393–94
Asian Development Bank, 50
Assistance to developing countries, 46–7
Audit Office, 32
Australia New Zealand and United States Treaty (ANZUS), 52–3
Australia New Zealand Closer Economic Relations Trade Agreement (CER), 43, 391, 392–93
Australia, relations with, 43, 391, 392–93
Autocheck, 360
Average Gross Income Index, 233–34
Average retail prices, 414–16
Average Tax Rates Index, 233–34
Aviation, civil, 351–56
aerial work, 355–56
air mail, 352–53, 364
airlines, 343, 352, 353–54
airports, 343, 352, 354
distances to overseas destinations, 354
domestic, 343, 352
freight and passenger volumes, 352–53, 354–55
international, 351, 352–55
licensing and control of, 351–52
services to, 351–52

B

Balance of payments, 461–68
definition and principles of, 461–62
summaries, 461–62
Bankruptcies, 377–78
Banks and banking, 419–24
finance institutions, 422
hire-purchase, 386
merchant banks, 422
registered banks, 420–21
Reserve Bank of New Zealand, 419–20
savings institutions, 421, 422
statistics, 421, 422
Beef, 275–77
Beer, consumption per capita, 134–35
Bees and beekeeping, 284–85
Benefits and pensions
accident compensation, 146–48
accommodation, 114, 116
age, 115, 117, 118–9
current rates, 113–4
death, 116
dental, 130
disability allowance, 116
domestic purposes, 114, 116
emergency, 114
expenditure on, 113, 115, 116, 117, 130
family, 115
Family Support, 115
special, 116
Guaranteed Retirement Income, 115, 117
handicapped child allowance, 118
health, 129–30
hospital, 130
invalids, 114
maternity, 130
miners, 114
orphans, 115
pharmaceutical, 129
population receiving, 115
reciprocity agreements, 117
sickness, 114
training, 114
unemployment, 114
war pensions and allowances, 117
widows, 114
Betting, 214
Bilateral assistance, 46–7
Bill of Rights Act 1990, 13
Bills, passing of, 14–15
Birthplaces, of population, 98–9
Births and birth rates
ex-nuptial, 69
Maori, 104–05
stillbirths, 138–39
Bookmaking, 214
Books and libraries, 200–03
Broadcasting, 203–06
Commission, 203
developments, 204
independent, 204–05
policy, 203
public broadcasting fee, 203–04
radio, 204, 205–06
Standards Authority, 204
television, 205
Building and construction
activity, 339–42
energy efficient, 334
permits issued, 339–40
of rental houses, 334–35
Buildings,
construction standards, 338–39
energy efficient, 311, 334
historic, 198–99
Bursaries,
school boarding, 168
for tertiary study, 161–62, 164, 172–3
Buses, 356, 360, 361
school, 168
Business Development Investigation Grant, 330–31
Business Directory, 450–52
Business statistics, 450–52
Butter, 280–82
Buttercup squash, 285
Buy New Zealand Made, 324

C

Cabinet, 13–14, 18–19
Cadet forces, 55
Campbell Island, 1
Canada, relations with, 44, 395
Cancer, deaths from, 137–38
Capital Goods Price Index, 418
Capital Finance Accounts, 454
Capital gains, tax on, 649
Career Development and Transition Education
Service (Quest Rapuara), 158, 228–29
Cargo,
air, 352–53, 354–55
handled at ports, 346–47, 349
Carpet industry, 325
Cars, 83, 359–62
Casein, 280–81, 282
Cattle, 268, 270, 273, 274
Cawthron Institute, 246
Censorship, 196–97
films and video recordings, 196–97
indecent publications, 197
Census of Population and Dwellings,
ethnic origins, 76–7, 96–7
history of, 63
households and dwellings, 80–3
employment, 219–25
incomes, 231–35
labour force, 219–25
Maori population, 74–6
Pacific Island Polynesian population, 76
questions asked, 63
religious professions, 95
social welfare payments, 113–4, 115
total population, 62
travel to work, 361
unemployment, 225–27
Central government finance, 430–35
expenditure, 430–35
Taxation
funding process, 430–31
Taxation
public accounts, 433, 434–35
Taxation
public debt, 427, 443–46
Taxation
recent reform, 431
Taxation
revenue,
Taxation
securities on issue, 427, 444–46
CER (Australia New Zealand Closer Economic Relations Trade Agreement), 43, 392–93
Cereals, 285–86
Chatham Islands, 1, 2, 34
Cheese, 280
Chemicals, poisonous, 156
Childbirth, 67–70
births and birth rate, 67–70
infant mortality, 138–39
maternal deaths, 140
maternity benefits, 130
parental leave, 238–39
Childcare and pre-school education
(Kohanga reo), 160–61, 162, 163
Children, adoption of, 122
in care of Department of Social Welfare, 119–20
custody and guardianship of, 119–20
day care for, 160–61, 162, 163
deaths of, 138–39, 152–53
health of, 133
and justice system, 120–22, 179, 182
Children and Young Persons Courts,
Youth Courts
Children”s health camps, 133
Children, Young Persons and their Families
Grant Programme, 122
China, relations and trade with, 43, 394
Chiropractors, 128
Chronology of events, 41
Churches and religious organisations, number of adherents of, 95
Cinema, 194, 195, 196, 199–200
Cities and city councils
population of, 65
Citizenship, 99–100
Civil aviation,
Aviation, civil
Civil defence, 153–54
Civil jurisdiction of courts, 181
CLEAR Communications Ltd, 343–44, 366–67
Clerk of the House of Representatives, 14
Climate, 4–8, 267
Coal, 306, 309, 314–16, 319–20
Coastal planning, 257
Coastal shipping, 345, 346, 349
Coat of arms, 39
Coins and coinage, 424
Colleges,
secondary, 164–68
of education, 165, 166, 167, 168–69
Commerce Commission, 370, 371, 375
Commerce, Ministry of, 26, 247, 306, 330–31, 364
Commissioner for the Environment, Parliamentary, 32
Commissions of inquiry, 23
Commonwealth of Independent States, relations with, 45, 276, 279–80, 282, 395–96
Commonwealth, relations with, 50
Community boards, 37–8
Community care ordered by courts, 187
Community colleges, 175–76
Community Employment Group, 230–31
Community law centres, 182
Community Learning Aotearoa New Zealand, 175
Community service, imposed by courts, 187
Community Orientated Policing, 191
Community Services Card, 115
Community Taskforce, 229, 230
Community welfare services,
assistance to individuals, 118–9
funding of, 113, 115
Maori, 107–08
programmes, 118–22
Companies, 373–75, 377–78
insolvencies, 377–78
mergers of, 375
practices of, 375–76
registration, 374
taxation of, 438–39
top 10 revenue earning, 425
Compensation, accident, 146–48
Conservation Authority, New Zealand, 265
Conservation, Department of, 26, 252, 262
Conservation of cultural property, 198, 199
Conservation of natural resources
legislative reform, 255
of water and soil, 258–60
Conservation Week, 262
COP
Community Orientated Policing
Consolidated Accounts of the Nation, 453–55
Constitution, 12–14
recent reform, 13
Construction,
Building and construction
Consumer protection, 370, 371–72, 375
Consumers” Institute, 372
Consumers Price Index, 410–16
all groups, all urban areas combined, 413
geographical variation, 412, 414
international comparison, 414, 415
methodology, 410–11
percentage movements, 411, 412
revision of, 410
Continuing education, 169, 175–76
Controller and Auditor–General, 32
Convictions,
appeals against, 184, 185, 186
numbers of, 183–86
sentencing on, 184–87
Cook Islands, 42–3, 50
Cook Strait rail/ferry service, 346, 356–57, 358
Copyright, 196
Corporations, government,
State-owned enterprises
Corrective training, 187, 190
Correspondence School, 167, 176
Cost of living,
(Consumers Price Index, Real disposable income indexes, Retail prices), 410, 411, 412–15
Council for Maori and South Pacific Arts, 194
Country of birth, 98–9
Court of Appeal, 177–78, 180, 184, 186
Courts
of Appeal, 177–78, 180, 184, 186
District, 178, 179, 180, 181, 182–86
Employment, 178
Family, 179
High, 178, 180, 181, 182–86
Maori Land and Appellate, 179, 251–52
trial, 183–86
Youth, 120–22, 179
CPI (Consumers Price Index), 410–15
Craft, 194
Credit, 386–88
Credit cards, 387–88
Crime, 182–86
compensation for, 186
criminal jurisdiction, 182–86
reported offences, 182
white collar, 183
CRIs
Crown Research Institutes
Crops, 285–89
fruit, 286–89
grains, 285–86
seeds, 286
Crown agencies, 31, 252
Crown land, 252–53
Crown Lands, Office of, 252
Crown Law Office, 26
Crown Minerals Act 1991, 258, 305–06, 315
Crown Research Institutes, 24, 244, 245
Cultural Affairs, Ministry of, 26, 193
Cultural sites, protection of, 199, 256–57
Currency, 424
Customs Department, 26, 389–90
Customs tariff and revenue, 389–90

D

Dairy farming and products, 274, 280–83
butter, 280–81, 282
casein, 280–81, 282
cheese, 280–81, 282
exports, 282
marketing of, 282
milk and milk products, 280–83
prices, 283
production index, 270
Dance, 194
Data communications, 368
Day-care, 160–61, 162–63
Daylight saving, 9
Death benefits, 116
Deaths and death rates, 70–1, 77–9
accidental, 151–53
from cancer, 137–38
of children, 152–53
infant, 138–39
maternal, 140
major causes, 137
Maori, 71, 105–06
stillbirths, 138–39
Debt,
private,
Credit, Mortgages
public, 427, 443–46
Deer farming, 268, 274
Defence, 51–9
agreements, 52–3
expenditure, 56
Ministry of, 26, 51, 56
reorganisation of, 51–2
White Paper 1991, 51–2
Demography,
Population
Dental benefits, 130
Dental health, 130, 135
Dentists, 127
Department of Conservation, 26, 252, 262
Department of Health, 27, 124–26
Department of Internal Affairs, 281
Department of Justice, 28, 249–52
Department of Labour, 28, 155–57, 219, 225–26, 229–31
Department of Prime Minister and Cabinet, 29
Department of Scientific and Industrial Research, 29, 244, 245, 261
Department of Social Welfare, 29, 113, 118
Department of Statistics, 30
publications, 475
Department of Survey and Land Information, 30, 249, 252–53
Departments, government,
expenditure by, 433, 434–35
functions of, 26–31
Departures, from country, 72–3
Deportation, 103
Design, industrial, 247–48
Developing countries, relations with, 46–7, 47–8, 396
Dietitians, 128
Diplomatic representatives overseas, 42, 44
Disability allowances, 118–19
Disabled persons, 117
aids for, 130
Benefits and pensions
assistance and services for, 118–19, 136
Benefits and pensions
benefits for,
Benefits and pensions
Disaster relief, 55–6, 153–54
Diseases,
treated, 142–43, 146
Displaced persons,
Refugees
Dissolution of marriage, 90–1
Distribution of population, 63–7
District Courts, 178, 180
civil cases, 181, 182
criminal cases, 183–86
male/female appearances, 186
summary convictions, 182–83
traffic offences, 183
District planning, 257
Districts and district councils, 37
population of, 66
Divorce, 90–1
Doctors, 127
Domestic purposes benefits, 114, 116
Domestic trade and services, 384–88
Domestic travel, 217
Drinking, legal aspects of, 362
Drivers” licences, 361
Driving offences, 183, 362–63
Drownings, 151
Drugs,
legal, control of, 129, 131
offences involving, 182, 183, 184–5, 186
DSIR (Department of Scientific and Industrial Research), 244, 245
Dwellings
tenure of, 81–3
types of 80–1, 82

E

Early Childhood Development Unit, 158
Earnings, 232
Earthquake and War Damage Commission, 153–54
Earthquakes, 3–4
EC (European Community), 45, 247, 391, 395
Economy Wide Census, 450
Ecotourism, 215
Education
administration of, 158–62
agencies, 158–59
attainments, 164–65, 168–9, 171
bodies, 159–60
continuing, 169, 175–76
curriculum, 163–64
funding of, 160–62, 172–73
international links, 162
of Maori, 160
Maori language, 160, 163
Ministry of, 26, 158–59, 160–62
polytechnic, 161–62, 173–75
pre-school, 158, 160–61, 162, 163
public expenditure on, 162
reform of, 158
Review Office, 26–7, 159
rural, 166, 167, 169
Service Centres, 160
special, 158, 161, 168, 169
student allowances, 161–62, 172–73
teacher numbers, 167, 168, 169
teaching resources, 169–70
teacher training, 168–69
technical, 174–75
transition, 175
university, 161–62, 170–73
women and, 93
Educational research, New Zealand Council for, 160
Education and Training Support Agency, 158, 227–28
EEZ (Exclusive Economic Zone), 55, 298, 303
Eggs Producers Federation, 284
Eggs, 284
El Nino, 5–8
Elections, 20–3
licensing poll, 23
local body, 38–9
parliamentary, 14, 17–18, 19–23
referenda, 13
term poll, 23
Electoral reform, 13
Electorates, parliamentary,
listed, 17–18
maps of, 21–2
review of, 20–1
Electricity, 306–07, 308, 309–12
consumption of, 306–07, 308, 310–11
generation of, 310–11
reticulation, 311–12
supply authorities, 312
Electricity Corporation of New Zealand Ltd, 310–11
Electronics industry, 323
Embassies, 42, 44
Emergency benefits, 114
Emigration, 72–3
Employer organisations, 239
Employment
assistance, 227, 229–31
Human Rights Commission
equity, 239
Human Rights Commission
farm, 269
Human Rights Commission
and human rights
Human Rights Commission
in manufacturing, 323, 326–29
recorded by Business Directory, 450–52
Service, New Zealand, 231
status, 223, 231
surveys of, 219
and training programmes, 227–31
of women, 93, 221, 223
Employment Contracts Act 1991, 236–41
Employment Court, 178, 237, 241
Employment Tribunal, 179–80, 237
Energy, 305
consumption, 306–08
demand and supply, 307–08
efficiency, 311, 334
Management, 311
policy, 305–06
resources, 308–09, 314, 315–16, 318
Energy, forms of,
coal, 306, 309, 314–16, 319–20
electricity, 306–07, 308, 309–12
gas, 305, 306–08, 312–14, 320–21
geothermal, 307–09, 310–11
oil, 305, 306–07, 308–09, 312–14
renewable, 309
Engineering industry, 323
Enterprise Allowance, 229
Enterprise Assistance, 330–31
Enterprise survey, annual, 450
Environment
Act 1986, 32
global issues, 261–62
and mineral exploitation, 258, 305–06
Ministry for the, 27, 255, 256, 261–62
Parliamentary Commissioner for, 32
Resource Management Act 1991, 255–262
Resource management law reform, 255, 305–06
Environmental
health, 130–31
labelling, 248, 414
planning, 255–58
Environmental Choice NZ, 248, 414
Environmentalism, 261
Equal employment opportunities, 25
Equal Opportunities Tribunal, 180
Equal pay, 221, 239
Erosion, control of, 259–60
Estate duty, 439
Ethical investment, 426
Ethnicity, 74–7, 96–7
Maori,
Maori population
Pacific Island Polynesians
(Treaty of Waitangi), 92
Pacific Island Polynesians,
Pacific Island Polynesians
(Treaty of Waitangi), 92
Race relations and racial discrimination,
(Treaty of Waitangi), 92
European Community (EC), 45, 247, 391, 395
European countries, relations with, 45, 247, 391, 395
Events, chronology of, 41
Examinations, 164–65, 174
Exchange rates, 427–28
Excise duties, 389–90, 440–41
Exclusive Economic Zone (EEZ), 55, 298, 303
Executive Council, Cabinet and, 18–20
Ex-nuptial births, 69
Exotic forests, 8–9, 254, 290, 294–98
Expo “92, 43
Export Guarantee Office, 389
Export Prices Index, 407
Export Volume Index, 409
Exports, 399
agricultural,
Marketing, of agricultural products
destinations, by country, 397–98
indexes of, by commodity, 407, 409
main, value and volume of, by commodity, 399
oddities, 401
value of, by Harmonised System, 405–06
value of, by SITC, 403–04
External migration, 72–3
External Relations and Trade, Ministry of, 27, 42, 44, 162, 172
External trade
agreements, 396
balance of merchandise trade, 391
commodities, trade in, 399–406
listed by country and region, 397–98
price and volume indexes, 407–09
statistics of, types and sources, 390–91
terms of, index, 407–08
trading partners, described, 391–98
External transactions account, 455

F

Factories
(Manufacturing industry, Occupational safety and health), 155–57
Fair trading legislation, 370, 371
Families
(Households), 67–70
Family assistance, 115, 437
Family Courts, 91–92, 119–20
Family health, 132–33
Family law, 90–2, 119–22
Family planning, 132
Family support, 115, 437
Farm employment, 269
Farming,
Agriculture, Livestock
Farming Inputs Price Index, 271
Farms, numbers and types, 268–69
Fauna,
Vegetation and wildlife
Federation of Scientific and Technological Societies (FOSTS), 244–45
Ferries, 346, 356–57, 358
Fertiliser
(Topdressing), 269–70
Fertility rates, 67–70, 77–9
Festival of the Arts, International, 193
Fields Medal, 243
Fiji, relations with, 42–3
Film, 194, 195, 196, 199–200
Films and video recordings, 194, 196–97
censorship of, 196–97
National Film Library, 170
New Zealand Film Archive, 199–200
New Zealand Film Commission, 195
Financial definitions, 421, 424
Financial institutions, 419, 420, 422
Fire and general insurance, 378–80, 383
Fire fighting and prevention, 154–55, 265
Fish
catch, 300–02
exports, 302–03
species, 299–300
Fisheries law reform, 299
Fisheries resources, 298–300
protection of, 55, 301
Fishing,
by foreign vessels, 301, 302, 303
Industry Board, 303
recreational, 213, 299, 302
research, 245–46, 298
Fishing vessels, 301
Five Power Defence Arrangements, 53
Flag, New Zealand, 39
Flock House, 273
Floods, 5
Flora,
Vegetation and wildlife
Fluoridation, 135
Flying Nun, 203
Food,
expenditure on, 83–4
prices, 412–14, 415–16
standards, 131
Food and Agriculture Organisation, United Nations (FAO), 48
Footwear industry, 325
Foreign aid, 46–7, 47–9
Foreign exchange market, 427–28
Foreign policy
(Official Development Assistance (ODA)), 42
Foreign trade,
External trade
Forest parks, 263, 264
Forest products,
Timber and forest products
Forest Research Institute, 246
Forestry and logging, 290–98
employment in, 292
Timber and forest products
private, 290–91, 292
Timber and forest products
products,
Timber and forest products
research into, 246
state, 290–92
training in, 292–93
Forestry Corporation Ltd, New Zealand, 291–92
Forestry, Ministry of, 27, 246, 290–91, 293
Forests, 8–9, 290–92
conservation and protection, 262–66, 291
exotic, 8–9, 254, 290, 294–98
native, 8–9, 262–66, 291
ownership of, 291–92
planting of, 290, 295
FOSTS
Federation of Scientific and Technological Societies
Freight,
Cargo
Fringe benefit tax, 438
Fruit, 286–89
Fuels,
coal, 306, 309, 314–16, 319–20
gas, 305, 306–07, 308, 309–12, 320–21
oil, 305, 306–07, 308–09, 312–14

G

Galleries, art, 197
Gambling, 214
Gas, 305, 306–07, 308, 309–12, 320–21
GELS (Group Employment Liaison Service), 230
General Agreement on Tariffs and Trade (GATT), 49, 267
General Assembly
Parliament
General elections, 13, 14, 17–18, 19, 20–3
Generalised System of Preference, 396
Geographical features, 1–2
glaciers, 1
lakes, 2
mountains, 1
rivers, 2
Geology
(Minerals and mineral products), 2–3
Geothermal power, 307–09, 310–11
Geriatric hospitals, 131–32, 142
Gift duty, 440
Glaciers, 1
Global warming, 5, 305
Glossary of statistical terms, 471
Goat farming, 268, 274
Gold, 61, 63, 315, 317
prospecting, 317
Goods and services tax (GST), 390, 439
Government the, 19–20
Government departments
expenditure by, 433, 434–35
functions of, 26–31
Government finance,
Central government finance
Government Retirement Income (GRI), 115, 437–38
Government stock and securities, 426–27 443–45
Government Superannuation Fund, 27, 381–82
Governor(s)-General, 12, 14, 15
Graduates, university, 171
Grains, 285–86
Grape growing and wine production, 287
Gravel, 314, 316, 318, 321–22
Greenhouse Effect, 5
Greenstone, 318
Greyhound racing, 214
Gross domestic product, 453, 456–57, 459–61
in constant prices, 459–61
index of, 460
by production group, 456–57
Gross fixed capital formation, 457–58
Group Employment Liaison Service (GELS), 230
GST, 390, 439
Guaranteed Retirement Income, 115, 117
Guardianship, 88, 120
Gulf War, 54

H

Handicapped child allowance, 118–19
Handicapped persons,
Disabled persons
Harbours,
Ports
Harmonised System, 389–90, 405–06
Health, 124
administration, 125
Hospitals
and causes of death, 137–38
Hospitals
Department of, 27, 124–26, 155
Hospitals
education, 134
Hospitals
environmental, 130–31
Hospitals
expenditure, 125–27
Hospitals
family, 132–33
Hospitals
and hospitals,
Hospitals
insurance, 124, 384
mental, 144–46
natural, 128
occupational, 155–57
practitioners, 127–29
research, 136
restructuring, 124–26
services structure, 125
Sponsorship Council, 134
statistics, 136
voluntary sector, 125, 132
women”s, 94
Health benefits, 129–30
Health boards, area, 124, 125–26, 131
Health camps, 133
Health education, 134
Health inspection, 131
Health Research Council, 136
Health Research Services, 136
Health Statistical Services, 136
High Court, 178, 180, 181, 183–86
Higher School Certificate, 164
Highways, 359
Hillary Commission for Sport, Fitness and Leisure, 209–10
Hire-purchase, 386–87
Historic places, 198–99
Historic reserves, 264
Hocken Library, 203
Holidays, 238
Home appliances, 85
Home ownership, 81–3, 335–38
Homeseekers lending, 336–37
Home working, 224
Homicide, 182, 184–85
Honey, 284–85
Horse racing, 214
Horses, 268, 269
Horticulture
(Crops), 285–89
Horticulture Export Authority, 286
Hospital benefits, 130
Hospitals,
administration, 124–26, 141
beds available, 141–42
geriatric, 131–32, 142
patients treated, 142–44
private, 142
public, 141–44
staff, 126
Hotels and restaurants, 372–73, 384–86
Hours of work, 222, 238
House of Representatives,
Parliament
Household Expenditure and Income Survey, 83–6
Household Labour Force Survey, 219, 225–26
Households, 80–6
amenities of, 85
composition of, 81, 82–3
expenditure by, 83–5
incomes of, 84
transport, 83
Housing
community programmes, 337–38
(Rental housing), 334–35
construction, 338–42
(Rental housing), 334–35
costs of, 333–34
(Rental housing), 334–35
of elderly, 337
(Rental housing), 334–35
home ownership, 81–3, 335–38
(Rental housing), 334–35
Homeseekers lending, 336–37
(Rental housing), 334–35
loans for, 335–38
(Rental housing), 334–35
Maori, 82–3, 336
(Rental housing), 334–35
market, 333–34
(Rental housing), 334–35
Pacific Island Polynesians, 82–3
(Rental housing), 334–35
rental
(Rental housing), 334–35
state, 335–36
Housing Corporation, 27–8, 334–38
Human rights, 92
Bill of Rights, 13
elimination of discrimination, 24–5
Equal Opportunities Tribunal, 180
official information, 32
promotion of equal opportunity, 25, 93–5
Human Rights Commission, 92
Hunting, 213
Hydro-electric power, 307, 309, 311

I

IBRD (World Bank), 48, 49
IMF (International Monetary Fund), 48
Immigrants, 101
Immigration, 100–03
current provisions, 101–03
and demography, 61, 72–3
recent policy, 100–01
Immunisation, 133
Import licensing, 390
Import Prices Index, 407
Imports, 401
by country, 397–98
indexes of, by commodity, 407, 408, 409
value and volume of principal items, 401
value of, by Harmonised System, 405–06
value by SITC, 403–04
Imprisonment,
Prisons and prisoners
Information privacy, 13
Income support, 113–17
Income tax,
companies, 438–39
(Real Disposable Income Indexes, Wages), 231–34
index of, 233–34
(Real Disposable Income Indexes, Wages), 231–34
personal, 435–36
(Real Disposable Income Indexes, Wages), 231–34
revenue from, 442–43
(Real Disposable Income Indexes, Wages), 231–34
Incomes
(Real Disposable Income Indexes, Wages), 231–34
of companies, 438–39
of households, 84
Indecent Publications Tribunal, 197
Independent Broadcasting Association, 204
Index of Gross Domestic Product, 460
Indexes, explained, 472
Indexes, listed,
Average Gross Income Index, 233–34
Average Tax Rates Index, 233–34
Capital Goods Price Index, 418
Consumers Price Index, 410–16
Export Prices Index, 407
Export Volume Index, 409
Farming Inputs Price Index, 271
Import Prices Index, 407
Import Volume Index, 409
Index of Gross Domestic Product, 460
Prevailing Weekly Wage Rates Index, 234–35
Producers Price Index, 416–17
Real disposable income indexes, 233–34
Terms of Trade Index, 407–08
Volume of agricultural production, 270–71
Industrial accidents, 156–57
Industrial design, 247–48
Industrial relations
Labour relations
Industrial safety,
Occupational safety and health
Industrial structure of labour force, 222, 223–24
Industry,
Manufacturing industry
Industry cadet schemes, 228
Infant mortality, 138–39
Inflation,
Consumers Price Index
Information, privacy of, 13, 32
Inland Revenue Department,
(Taxes and taxation), 28
Insolvency, 377–78
Insurance,
accident, 146–48
earthquake and war damage, 153–55
fire and general, 383
life, 380, 382
medical, 124, 384
regulation, 379
Interest rates,
Monetary policy, Mortgages
Inter-industry studies, 455–56
Internal Affairs, Department of, 28
Internal migration, 63–4
International Bank for Reconstruction and Development (IBRD), 48, 49
International comparisons, 86
abortion rates, 140
consumer prices, 414, 415
defence expenditure, 56
infant mortality, 138–39
life expectancy, 71
motor vehicle accidents, 149–51
standards of living, 86
International Development Association (IDA), 48, 49
International Finance Corporation (IFC), 48, 49
International Monetary Fund (IMF), 48, 49
International organisations, participation in, 47–50
International relations, 42
International Whaling Commission (IWC), 50
International Wool Secretarial, 279
Invalids benefit, 114
Investment, 426
Iron and ironsands
(Steel making), 315, 317, 318, 321–22
Irrigation, 259
Iwi Transition Agency
(Maori Development, Ministry of), 28, 106–08, 251, 336

J

Japan, relations with, 43, 391, 394
Job Link, 229
Job Plus, 229
Jones, Professor Vaughan, 243
Judges and judiciary, 177, 178, 180
Jury service, 181
Justice, Department of, 28, 249–52
Justice, system of,
Courts

K

Kermadec Islands, 1
Kindergartens, 160–61, 162–3
Kiwifruit, 288
Kiwisport, 210
Kohanga reo, 108, 160, 162–3
Korea, trade with, 297, 303, 393

L

Labelling, environmental, 248, 414
Laboratory technicians, medical, 129
Labour, Department of, 28, 155–57
Labour force
age and sex of, 220
employment status, 222–23
Household Labour Force Survey, 219, 225–26
industrial structure, 222, 223–24
occupational structure, 224–25
part-time, 222
participation rates, 220, 221
Quarterly Employment Survey, 219, 232
survey of, 219
women in, 93, 221
Labour Party, 14, 22, 23
Labour relations,
stoppages), 235
bargaining arrangements, 236
disputes, 178, 179
freedom of association, 236
hours of work, 238
minimum entitlements, 237
minimum wages, 237–38
personal grievances and disputes, 236, 239
public and annual holidays, 238
rights and obligations, 237
specialist courts, 178, 179, 237
strikes and lockouts, 237
union and employer organisations, 239
Lakes, 2
Lamb, 274–78
Land,
agricultural, 251, 268
area, total, 1, 254
controls on acquisition, 250
Crown, 252–53
leasehold, 252, 375
Maori, 251–52
recreational, 262–66
registration of ownership, 249–51
surveys of, 249
transfers of, 250–51
use of, 254, 258
valuation of, 253–54
Land Corporation Ltd, 253
Land tax, 439–40
Land transfers, 250–51
Land Transport Fund, 359
Latin America and Caribbean, relations with, 44, 395
Latitude and longitude, 1
Law, sources of, 180–81
Laws,
Legislation
Leasehold land, 252
Legal aid, 181–82
Legal Services Act 1991, 181–82
Legal systems, 177–82
civil jurisdiction, 178, 180, 181
criminal jurisdiction, 178, 182–86
Legal tender, 424
Legislation, 13, 14–15
Leisure activities, outdoor, 213–14
Liable Parent Contribution Scheme, 116
Libraries, 201–03
Life expectancy, 70–1, 105–6
Life insurance, 380, 382–83
Lifespan, 134
Lighthouses, 350
Liquidation, of companies, 378
Liquor,
Alcohol
Liquor licensing, 373
polls, 23
Literature, 194
Livestock, 268, 272–78
cattle, 270, 274
deer farming, 268, 274
distribution of, 272–73
goat farming, 268, 274
health services for, 272
horses, 268, 269
pigs, 268–69, 270, 283
poultry, 283–84
quarantine of, 272
sheep, and sheep farming, 268, 269, 270, 274, 276–77, 278–80
Loans Accounts, 431–33
Local authorities
election and membership of, 38–9
population of, 65–6
powers of, 38
rating and valuation, 253, 446–47
roading, 359
Local Authorities Loans Board, 447–48
Local government, 33–9
boundaries, 35–6
community boards, 37
functions and powers of, 38
regional councils, 34
reorganisation, 33–4
special purpose local authorities, 38
territorial authorities, 37
Local Government Commission, 39
Local government finance, 446–48
borrowing, 447–48
expenditure, 447
income, 446–47
Local government regions, population of, 65–7
Lotteries and lotto, 214
funding from, 214–15

M

Maatua whangai, 108, 119
Magazines, 207
Mail services, 343, 364–65
Mana Enterprises Scheme, 230
Manila Treaty, 53
Manufacturing industry, 323–32
assistance to, 330–31
enterprises, 325–27
geographical distribution of, 328–29
quarterly survey of, 331–32
Maori
business interests, 375
community services, 107–8
education of, 160, 163, 165, 166
employment and training of, 230
fisheries, 300
housing, 82–3, 336
justice, 179
land, 251–52
language, 108–9, 160
tribal developments and locations, 104, 107
women, 93–5, 108
Maori Affairs, Ministry of
restructuring of, 106
Maori and Pacific Islands Arts Council, 194
Maori Development, Ministry of, 28, 106–08
Maori Council, New Zealand, 107
Maori Education Foundation, 160
Maori electorates, 20–22
Maori Fisheries Commission, 300
Maori land, 251–52
Maori Land Court and Maori Appellate Court, 251–52
Maori population
age and sex of, 76, 103–5
birth and death rates of, 75
geographical distribution of, 75, 104–5
households, 82–3
infant mortality in, 138–39
life expectancy, 71, 105
Maori wardens, 107
Maori Women”s Welfare League, 108
Mapping, 249
Marine pollution, 260–62, 350–51
Marine wildlife, 301
Marital status, 87–8
Maritime parks and reserves, 263, 264–65
Marketing authorities for agricultural products,
apples and pears, 287–88
dairy products, 280–83
kiwifruit, 288
meat, 275–78
wool, 278–80
Marriage and marriages
age at, 69, 89
dissolution of, 90–1
guidance, 90
rates of, 67–8, 87
Maternal deaths, 140
Maternity benefits, 130
Maternity leave, 238
Meat and meat products
(New Zealand)
Meat Producers Board), 275–78
beef, 275–78
chicken, 283–84
exports, 275–76
grading of, 277
pigmeats, 283
prices, 277–78
processing, 275
sheepmeats, 275–78
veal, 276, 277
Media, 203–08
advertising, 207–08
magazines, 207
newspapers, 206–07
radio, 204, 205–06
television, 204, 205
Medical benefits, 129
Medical Council, 127
Medical insurance, 124, 384
Medical laboratory technologists, 129
Medical practitioners, 127
Medical radiation technologists, 128–29
Medical Research Council (Health Research Council), 136
Medicines, control of, 131
Members of Parliament, 16–20
listed, 17–18
salaries and allowances, 15–16
Mental health, 132
Merchant banks, 422
Merchant navy qualifications, 350
Mergers, 375
Metals, 314–19
gold, 315, 317
iron and ironsands, 315, 317, 318, 321–22
Meteorology,
Climate
Middle East, relations with, 45–6, 396
Migration,
external,
External migration, Immigration
internal, 63–4
Military pensions, 117
Milk and milk products
(Dairy products), 280–83
Mineral exploitation, 258, 305–06, 314
Minerals and mineral products
coal, 306, 309, 314–16, 319–20
metallic, 314, 315, 317, 318
non-metallic, 314, 316, 318–19, 321–22
production, 315–16
Miners benefit, 114
Minimum wage, 237–38
Mining, 314
laws on, 258, 305–06, 315
safety and working conditions, 155
Ministers of the Crown,
list of, 19–20
salaries and allowances of, 15–16
Ministry for the Environment, 27, 255, 256, 261–62
Ministry of Agriculture and Fisheries, 26, 245–46, 271–72
research by, 245–46
Ministry of Civil Defence, 153
Ministry of Commerce, 26, 247, 330–31, 364
Ministry of Consumer Affairs, 370, 371–72
Ministry of Cultural Affairs, 26, 193
Ministry of Defence, 26
Ministry of Education, 26, 158–59, 160–62
Ministry of Forestry, 27, 246, 290–91, 293
Ministry of Maori Affairs, 28
Ministry of Maori Development, 28, 106–07
Ministry of Pacific Island Affairs, 29, 111
Ministry of Research, Science and Technology, 29, 243
Ministry of Tourism, 30
Ministry of Transport, 30, 155, 345, 350–52, 358, 361–63
Ministry of Women”s Affairs, 31
Monetary policy, 425–26
Money, 424–29
Monopolies, 375
Moriori, 2
Mortality,
Deaths and death rates
Mortgages, 333, 335–38
Housing Corporation, 335–38
interest rates of, 333, 335, 337
Motor spirits, duty on, 441
Motor vehicle industry, 324
Motor Vehicles Securities Register, 360
Motor vehicles, 359–63
registration and licensing, 359–60
inspection, 361
Mountains, 1
formation of, 2–3
Multi-cultural marketing, 384
Multilateral assistance, 46–7
Murder, 182, 184–85
Museums and art galleries, 197–98
MOTAT (Museum of Transport and Technology), 246
Music, 194–95
Flying Nun, 203

N

Narcotics,
Drugs
National Accounts, New Zealand System of (NZSNA), 452–61
development of, 452–55
National Advisory Council on the Employment of Women, 221
National anthems, 39–40
National Archives, 199
National Art Gallery, 197
National disposable income, 452–54
National Drug Intelligence Bureau, 191–92
National Education Qualifications Authority, 159
National emblems and anthems, 39–40
National Film Library, 170
National Fish and Game Council, 265
National gross equalised capital value, 253
National Health Statistics Centre (Health Statistical Services), 136
National income and outlay, 454
National Library of New Zealand, 28–9, 201–02
National licensing poll, 23
National Museum, 198
National parks
(Forest parks, Reserves), 262–66
National Party, 14, 19–20, 22, 23
National planning, environmental, 256–57
National Provident Fund, 29, 382
Natural gas, 305, 306–07, 308, 309–12, 320–21
Natural increase, of population, 67, 77–9
Nature reserves, 264
Navigational aids, 350
Navy, Royal New Zealand, 57–8
New Zealand Apple and Pear Marketing Board, 287–88
New Zealand Army, 58–9
New Zealand Australia Closer Economic Relations Trade Agreement (CER), 43, 392–93
New Zealand Bibliographic Network, 202
New Zealand Certificate, 174, 175
New Zealand Communicable Disease Centre, 136
New Zealand Conservation Authority, 265
New Zealand Council for Educational Research, 160
New Zealand Dairy Board, 282
New Zealand Employment Service, 229–31
New Zealand Film Archive, 199–200
New Zealand Film Commission, 195
New Zealand Fire Service, 154–55
New Zealand Fishing Industry Board, 303
New Zealand Forestry Corporation Ltd, 291–92
New Zealand Government, the, 19–20
New Zealand Government stock and securities, 426–27, 444–45
New Zealand Historic Places Trust, 198–99
New Zealand Household Expenditure and Income Survey, 83–6
New Zealand Institute of Economic Research, 246
New Zealand Kiwifruit Marketing Board, 288
New Zealand Lotteries Commission, 214
New Zealand Lottery Grants Board, 193, 215
New Zealand Maori Council, 107
New Zealand Meat Producers Board, 275–76
New Zealand Milk Authority, 281
New Zealand Olympic and Commonwealth Games Association, 212
New Zealand Patent Office, 247
New Zealand Planning Council, 31–2
New Zealand Police, 29, 190–92
New Zealand Pork Industry Board, 283
New Zealand Post Ltd, 343, 364–65
New Zealand Rail Ltd, 356–58
New Zealand Railways Corporation, 356
New Zealand Sports Foundation, 212
New Zealand Stock Exchange, 376–77
New Zealand Symphony Orchestra, 194, 195
New Zealand System of National Accounts (NZSNA), 452–61
Consolidated Accounts of the Nation, 453–55
New Zealand Time Service, 9
New Zealand Tourism Board, 218
New Zealand Trade Development Board, 389
New Zealand Wool Board, 278–79
New Zealand Workers Educational Association (WEA), 176
New Zealand”s overseas posts, 42, 44
Newspapers and magazines, 206–07
Niue, relations with, 42–3, 50
Nominal Weekly Wage Rates Index, 235
North Island, population of, 63
Nurses, and nursing services, 127
NZ On Air, 203–04
NZSNA (New Zealand System of National Accounts), 452–61

O

Occupations, 224–25
Occupational safety and health, 155–57
reform, 155–56
Occupational therapists, 128
OECD (Organisation for Economic Co-operation and Development), 50
Office of Crown Lands, 252
Official development assistance (ODA), 46–7
Official information, 32
Ohu Whakatupu, Te (Maori Women”s Secretariat), 93, 94–5
Oil, 305, 306–07, 308–09, 312–14
Ombudsmen, 32–3
Open Polytechnic of New Zealand, 174
Optometrists and opticians, 128
Organisation for Economic Co-operation and Development (OECD), 50
Orphans benefit, 115
Outdoor leisure activities, 214–15
Overseas aid, 46–7, 47–8
Overseas balance of payments, 461–68
Overseas debt, 444–45, 467–68
Overseas exchange transactions, 427–28
Overseas students, 162, 172
Overseas trade,
External trade

P

Pacific countries, relations with, 42, 42–3, 50, 393
Pacific Forum Line, 43
Pacific Island Affairs Advisory Council, 111
Pacific Island Affairs, Ministry of, 29, 111
Pacific Island Polynesian population, 76, 109–11
age distribution of, 77, 110
employment and training, 230
geographical distribution, 110
households and dwellings, 82–3
Pacific Islands Industrial Development Scheme (PIIDS), 42–3
Paper, 295–296, 298
recycling, 269
Parental leave, 238
Parks
marine, 263, 264–65
national, 262–64
Parliament,
members of, 17–18
opposition, 14, 17
proceedings of, 13–15
salaries and allowances of members, 15–16
sessions of, 15
Parliamentary Service, 15
Parliamentary Commissioner for the Environment, 32
Parliamentary Library, 202
Parole system, 190
Partnerships, 375
Part-time work, 222
Passports, 101, 103
Patents and trade marks, 247
Paternity leave, 238
Patients, hospital, 142–45
PAYE tax, 435–36
Penal system, 186–90
corrective training, 187
fines, 187
imprisonment, 187–90
parole system, 190
prisons and prisoners, 187–90
probation, 187
reparation, 187
Supervision, 187
Pensions,
Benefits and pensions, Superannuation
Performing arts, 194–95
Perinatal mortality, 138–39
Periodic detention, 187
Permits, building and construction, 339–41
Petroleum,
consumption, 305, 312–13
processing and distribution, 313, 320–21
prospecting and drilling, 312–13
sales, 313
unleaded, 344
Pharmaceutical benefits, 129
Pharmacists, 128
Physiotherapists, 128
Pigmeats, 283
Pigs, 268, 269, 283
Pinus radiata, 290, 294–95, 297
Planning, 255–58
coastal, 257
district, 257
environmental, 255–60
national, 256–57
New Zealand Planning Council, 31–2
permission for building, 338–39
regional, 257
Planning Tribunal, 180, 256
Plants breeders” rights, 286
Plants,
Vegetation and wildlife
Plastics industry, 324
Podiatrists, 128
Police Complaints Authority, 192
Police, New Zealand, 29, 190–92
Political parties, 14, 22–3
Pollution,
air, 131, 261–62
water, 259, 260–61
Polynesians,
Pacific Island Polynesians
Population
age distribution, 70, 71, 73–7
Maori population
Pacific Island Polynesians
change in, 67–73
Maori population
Pacific Island Polynesians
ethnic groups in, 74–7
Maori population
Pacific Island Polynesians
fertility of, 67–70
Maori population
Pacific Island Polynesians
geographical distribution of, 63–7
Maori population
Pacific Island Polynesians
growth of, 61–2, 77–9
Maori population
Pacific Island Polynesians
of local government areas, 64–7
Maori population
Pacific Island Polynesians
Maori,
Maori population
Pacific Island Polynesians
marital status of, 87–8
Pacific Island Polynesians
of North and South Islands, 63–4
Pacific Island Polynesians
Polynesian,
Pacific Island Polynesians
projections of, 77–9
religious professions of, 95
rural, 64
sex ratio in, 73–4
urban, 64–5
Ports, 343, 346–47, 349
Postal services, 343, 364–65
Poultry and eggs, 283–84
Pre-school education and childcare, 158, 160–61, 162–63, 163, 168
Kohanga reo, 108, 160, 163
Preventive detention, 187
Prevailing Weekly Wage Rates Index, 234–35
Price indexes,
Capital Goods Price Index, 418
Consumers Price Index, 410–16
Export Prices Index, 407
Farming Inputs Price Index, 271
Import Prices Index, 407
Producers Price Index, 416–17
Terms of Trade Index, 408
Prices, 410
exports and imports, 399–408
housing, 333, 334
international comparison, 414, 415
retail trade, 414–16
Primary schools, 162–64, 165–66, 167, 168
Prime Minister(s), 19
Department of Prime Minister and Cabinet, 29
salary and allowances, 15–16
Prisons and prisoners, 187–90
classification and treatment, 188–90
institutions, 188
numbers of prisoners, 188–89
Private hospitals, 142
Private schools, 165, 166–67
Privy Council, Judicial Committee of, 177
Probation, 187, 190
Producers Price Index, 416–17
Production accounts, 456–57
Protected Natural Areas Programme, 265
Psychiatric hospitals, 144–46
deaths, 146
patients and diagnoses, 145–46
Psychological services and psychologists, 127–28
Public accounts, 430–35
Public broadcasting fee, 203–04
Public debt, 427, 443–46
interest on, 445
maturity of, 445
per capita, 444–46
securities on issue, 427, 444–45
transactions, 443–46
Public health, 130
Public holidays, 238
Public lands
(Forest parks, Reserves),
Crown land, 252–53
national parks, 262–65
Queen Elizabeth the Second National Trust, 266
walkways, 213–14, 265
Public service
Government departments, State sector
Public Trust Office, 29
Publishing,
books, 200
newspapers and magazines, 206–07
Pulp and paper, 295–98

Q

Quangos (non-departmental bodies), 31
Quarantine, 272, 295
Quarries and quarrying,
Mining
Quarterly Economic Survey of Manufacturing, 331–32
Quarterly Employment Survey, 219, 232
Quarterly Survey of Retail Trade, 385–86
Queen Elizabeth II Arts Council, 193–95
Queen Elizabeth II National Trust, 266
Quest Rapuara (Career Development and Transition Education Service), 158, 228–29

R

Race relations and racial discrimination
(Ethnicity), 92
Racing, 214
horse and greyhound, 214
taxation, 441
Radio, 204, 205–6
Radiologists, 128–29
Railways, 356–58
construction and engineering, 357
New Zealand Rail Ltd, 356–57
New Zealand Railways Corporation, 357
passenger services, 357–58
Rainfall, 6, 7
Raoul Island, 1
Rapu Mahi/Hanga Mahi programme, 108
Rates, local authority, 446–47
Real Disposable Income Indexes, 233–34
Receivership, 377–78
Recreation and sport, 209–15
Hillary Commission for Sport, Fitness and Leisure, 209–10
participation in, 211–12
provision for, 212
Recreation reserves, 264
Recycling, 296
Redundancy, 239
Refugees, 76, 102, 119
Regional Development Investigation Grant Scheme (Business Development Investigation Grant), 330–31
Regional employment and ACCESS councils, 227–28, 230–31
Regional Fish and Game Councils, 265
Regional government, 34, 35
Regional planning environmental, 257
Registered banks, 420–21
Rehabilitation, 136
after accidents, 118–19, 147
of war veterans, 117
Religious professions of population, 95
Rental housing, 333, 334–35
Reparation ordered by courts, 187
Representation Commission, 20–1
Reproduction rates, 67–70, 77–9
Research, scientific, 243–46, 261
Department of Scientific and Industrial Research, 29, 244, 245, 261
Foundation for Research, Science and Technology, 243–44
Ministry of Research, Science and Technology, 29, 243
Reserve Bank of New Zealand, 419–20
Reserves, land, 264
Residential Tenancy Tribunal, 180, 334–35
Resource conservation,
Conservation of natural resources
Resource management, 255–62
Act 1991, 255–58, 305–06
law reform, 255
Restaurants and hotels, 372–73, 384–86
Retail prices, 414–16
Retail trade, 384–88
credit sales, 387–88
shop trading hours, 372
Rivers, 2, 258–60
Roads,
expenditure on, 359
safety, 150–51, 361–62
speed limits, 362
taxes for, 441
Transit New Zealand, 358–59
Rock aggregate, 318
Rocks, types of,
Geology
Ross Dependency, 1, 51
Royal commissions, 23
Royal New Zealand Air Force, 59
Royal New Zealand Navy, 57–8
Royal Society of New Zealand Act 1965, review of, 244
Rural education activities programmes (REAPs), 169
Rural Electrical Reticulation Council, 312
Rural population, 64
Russia, relations with, 45, 276, 279–80, 282, 395–96

S

Safety, 153
fire, 154–55
occupational, 155–57
road, 149–51
of ships, aircraft, cranes, 155
Salaries,
Wages
Salt, 319
Satellite links, 368
Savings institutions, 420–22
other financial institutions, 422
trustee banks, 421
Scenic reserves, 264
School Certificate, 164, 165
School Dental Service, 135
School Journal, the, 170
Schools,
boards of trustees, 159
correspondence, 167, 176
curriculum, 163–64
hostels, 167
primary, 162–64, 165–66, 167, 168
private, 165, 166–67
pupils of, numbers, 165–66, 168
secondary, 163, 164–65, 165–67
terms of, 163
transport to, 161, 168
Science and scientific services
recent changes, 244–45
Scientific and Industrial Research, Department of, 29, 244, 245, 261
Scientific reserves, 264
Search and rescue operations, 55, 191
Secondary schools, 163, 164–65, 165–67
Securities Commission, 375
Securities, government, 426–27
Security Intelligence Service (SIS), 60
Seismic activity, 3–4
Sentencing, on conviction, 180, 183–86, 187
Serious Fraud Office, 29, 183, 376
Share market, 376–77
Sheep, and sheep farming, 268, 269, 270, 274, 276–77, 278–80
Sheepmeats, 276–77
Shipping,
bulk, 346
coastal, 345, 346, 349
Cook Strait ferries, 346, 356–57, 358
register of, 349
overseas, 345–49
services to, 349–51, 368
Ships, 344
fishing vessels, 301
Shipwrecks, 350
Shop trading hours, 372
Sickness benefits, 114
SITC (Standard International Trade Classification), 403–04
Sixth Form Certificate 164–65
Skiing, 213
Sky Entertainment, 205
Smokefree Environments Act 1990, 134
Smoking, 134
Social sciences, 246
Social services, 118–22
Social welfare, 113
benefits,
Benefits and pensions
computing systems, 123
Department of, 29, 113, 118
funding, 113–14, 115
Soil conservation, 260
Soil types, 254
South and Central America, relations with, 44, 395
South Island, population of, 63–4
South Pacific Commission, 43
South Pacific countries, relations with, 42–3, 50, 102–3
South Pacific Forum, 43
South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA), 42, 393
Southern Oscillation, 5, 7
Soviet Union
(Russia, Commonwealth of Independent States), relations with, 45, 276, 279–80, 282, 395–96
Speaker of the House of Representatives, 14
Special education, 158, 161, 168, 169
Special-purpose local authorities, 38
Sports, 210–14
Olympic and Commonwealth Games, 212
participation in, 211
provision for, 212
Sport, Fitness and Leisure, Hillary Commission for, 209–10
Stamp duty, 440
Stamp, postage, 364–65
Standard International Trade Classification (SITC), 403–04
Standard of living, international indicators, 86
Standards Council, 248
Standing Orders of the House of Representatives, 14
Starnet, 368
State forests, 290, 291–92
State-owned enterprises, 31, 433–34
Sales of, 433–34
transfer of land to, 252
State sector
recent reform of, 24
State Services Commission, 24–5
Statistics, Department of, 30
Statutes, 12–13
Statutory bodies, boards, and committees, 31
Steelmaking, 324–25
Stillbirths, 138–39
Stock change, by production group, 458
Stock exchange, 376–77
Strikes, 237, 240–41
Student Job Search, 230
Students,
allowances, 160–62, 172–73
Maori, 160, 163, 165, 166
numbers, 165–66, 168
overseas, 162, 172
part-time, 172
primary school, 162–64, 165–66, 167, 168
teachers college, 168–69
technical, 174–75
university, 170–73
Sulphur, 316
Superannuation, 381–83
Government Superannuation Fund, 381–82
National Provident Fund, 382
Supervision ordered by courts, 183, 186–7
Supreme Court,
High Court
Survey and Land Information, Department of 30, 249, 252–53
Surveys, land, 249
Symphony Orchestra, New Zealand, 194, 195

T

TAB (Totalisator Agency Board), 214
Taiapure, 300
Tariff (customs), 389–90
Tasman, Abel Janszoon, 13
Taupo Fishery Advisory Committee, 265
Taxation review authorities, 441–42
Taxes and taxation,
Average Tax Rates Index, 233
company income tax, 438–39
deductions, 436
estate duty, 439
excise duties, 389–90, 440–41
fringe benefit tax, 438
gift duty, 440
goods and services, 390, 439
on interest and dividends, 438
land tax, 439
personal income tax, 435–36
racing taxation, 441
retirement tax and GRI surcharge, 437–38
revenue from, 440, 442–43
roads taxation, 441
stamp duty, 440
Teachers and teaching, 167–68, 168–70
registration of, 159
Teachers colleges,
Colleges of education
Technical education, 174–75
Telarc New Zealand, 247–48
Telecom Corporation of New Zealand Ltd, 343–44, 365–66, 367
Telecommunications, 364, 365–68
Telegrams, 368
Telephone services, 343–44, 365–68
Television, 204, 205
Telex services, 368
Temperatures, 5, 6, 7
Tenancy, 334–35
Term poll, 23
Terms of Trade Index, 407–08
Territorial authorities, 37
finances, 446–48
Territories, New Zealand,
Ross Dependency, 1, 51
Tokelau, 1, 50, 51
Tertiary education funding, 161–62, 172–73
Textiles
(Wool), 325
Timber and forest products, 294–98
exports of, 295, 296–98
imports of, 297
pulp and paper, 295–96, 297–98
Timber preservation, 295
Time, 9
Tokelau, 1, 50, 51
Topdressing, 269–70, 355–56
Tornadoes, 7
Totalisator Agency Board (TAB), 214
Tourism, 215–18
accommodation, 216
Board, New Zealand, 218
domestic, 217
ecotourism, 215
facilities, 215–16
international, 216–17
Ministry of, 30
promotion, 218
Town milk supply, 281
Town planning, 255–57
Toxic substances, 156
Trade,
domestic,
Domestic trade
External trade
external,
External trade
Trade facilitation, 390
Trade marks, 247
Trade organisations and agreements, 389, 396
Trade practices, 370–73
Trade representatives overseas, 389
Trade routes, maritime, 345–46
Trade training, 174–75
apprentices, 228
technical education, 174–75
Trade unions, 236, 239–40
Trading banks,
Registered banks
Trading legislation, 370–73, 375–76
Traditional sites, protection of, 199, 256–57
Traffic,
accidents, and safety, 149–51, 361–63
offences, 183, 362–63
Training benefit, 114
Training, vocational,
(Trade training), 173–76, 227–31
Transit New Zealand, 358–59
Transport, 343
air, 351–56
household, 83, 85
Ministry of, 30, 155, 345, 350–52, 358, 361–63
rail, 356–58
reform of industry, 343–44
road, 358–63
sea, 344–51
to work, 361
urban, 358
use by tourists, 216
Travel, domestic, 217
Treasury, 30
Treaties,
defence agreements, 52–3, 53–5
trade agreements, 42–3, 391–96
Treaty of Waitangi, 12, 106, 180, 256, 257
Trial courts, 183–86
Tribunals, 179–80
Disputes, 180
Employment, 179–80
Equal Opportunities, 180
Indecent publications, 197
Planning, 180, 256
Residential tenancies, 180
Waitangi, 106, 180, 334–35
Trustee banks, 421
TV3 Network Ltd, 205
Tyre industry, 324

U

Unemployment (Labour force), benefit, 114
ethnicity and age of, 226
growth of, 226
policies and programmes, 227–31
school qualifications and, 227
Unions, of employers, 236, 239
Unions, of workers, 236, 239–40
United Kingdom, trade with, 391, 395
United Nations Education, Scientific and Cultural Organisation (UNESCO), 48
United Nations, New Zealand membership of, 47–9, 53–4
United States of America, relations with, 44, 52–3, 391, 394
Universities, 161–62, 170–73
enrolments, 171
extension programme, 175
graduates from, 171
scholarships and bursaries to, 164, 172–73
staff in, 172
students in, 172
Urban areas
population of, 64–7
transport in, 358
Urban transport, 358

V

Valuation New Zealand, 30–1, 253–54
Valuation of land, 253
Valuers, registration of, 254
Vegetation and wildlife, 8–9
Video, 194, 196–97
Video Recording Authority, 197
Video recordings, classification, 197
Videotex, 368
Visual arts, 195
Vital statistics
(Births and birth rates, Deaths and death rates, Marriage), 70
Viticulture, 287
Volcanoes, 2, 3
Volume indexes of external trade, 409
Voluntary welfare organisations, 118–19, 122, 132
Voting,
Elections

W

Wages
minimum rates, 237
Nominal Weekly Wage Rates Index, 235
Prevailing Weekly Wage Rates Index, 234–35
Waitangi National Trust Board, 266
Waitangi, Treaty of, 12, 106, 256, 257
Waitangi Tribunal, 106, 180
Walkways, 213–14, 265
War, New Zealand”s participation in, 53–5
Warrant of Fitness, 361–62
War pensions and allowances, 117
Water and soil conservation, 258–60
Water pollution, 259, 260–61, 350–51
Water supply, 258–60
fluoridation of, 135
irrigation, 259
WEA (New Zealand Workers Educational Association), 176
Weather, 4–8
Weights and measures, 470
Western Samoa, 42–3
White collar crime, 183
Widows benefit, 114
Wild Animal Recovery Service Appeal Authority, 266
Wildlife,
Vegetation and wildlife
Wildlife reserves, 264
Wine, 287
Wine Guild, 389
Wine Institute, 287
winemaking, 287
Women, 93–5
health of, 94, 132–33
in the labour force, 93–4, 221
Maori, 93–5
in politics, 17
Ministry of Women”s Affairs, 31, 93–5
ratio in population, 73–4
refuges for, 119
Women”s Employment Project Fund, 230
Wood,
Timber and forest products
Wool, 278–80
exports, 279, 280
International Wool Secretariat, 279
New Zealand Wool Board, 278–79
prices, 279, 280
production, 478
Workers” compensation, 147–48
Work stoppages, 237, 240–41
Working conditions
(Occupational safety and health), 239
Working from home, 224
Working hours, 238
World Bank, 48, 49
World Health Organisation, 48, 137
Wrecks, 350

Y

Youth Affairs, Office of, 31
Youth Court, 120–22, 179
Youth, programmes,
Community welfare services