New Zealand Official Yearbook 1993

Te Pukapuka Houanga Whaimana o Aotearoa

Cover

Philippa Blair, Life Tree, 1983.
Acrylic on canvas, 181 × 154 cm.
Collection of Citibank, Private Bank, New York.

Philippa Blair's “Life Tree” (half open).

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

Recommended retail price: $59.95 (incl. GST)

Published by the Department of Statistics.

70 Symonds Street
AUCKLAND
Private Bag 92003
Telephone 0-9-358 4588
Facsimile 0-9-379 0859
Aorangi House
85 Molesworth Street
WELLINGTON
PO Box 2922
Telephone 0-4-495 4600
Facsimile 0-4-472 9135
Winchester House
64 Kilmore Street
CHRISTCHURCH
Private Bag 4741
Telephone 0-3-793 700
Facsimile 0-3-793 728
DUNEDINPrivate Bag 1935
Telephone 0-3-477 7511
Facsimile 0-3-477 5243

The Department of Statistics has an information desk at every office. In answer to a letter, visit, or telephone call, information officers can provide statistical information, or tell you more about the department's other services, including access to statistics on the INFOS computer database.

Suffrage logo

The purple and gold ribbons of the women's suffrage logo incorporate a number of ‘significant messages’.

The flowing ribbons express freedom, and the winning of the vote for women; while the shape implies the strength of advancement. The direction of the ribbons represent the past, the present, and a dynamic move into the future.

The two ribbons are intertwined but also flow independently, representing the linking of cultures as they work together in harmony towards a common goal. These interweaving lines also reflect the importance of communication and networking to women, and recognise that while women are independent they are also part of the whole—the whanau.

Purple and gold were selected as they are internatioanlly recognised suffrage colours. The gold is derived from the sunflower, and signifies enlightenment. The purple, white and gold combination symbolises loyalty, purity and hope.

It was felt that the ribbon theme was particularly appropriate as the white ribbon is an enduring symbol of the New Zealand Women's Christian Temperance Union which fought so strongly for women's suffrage more than a century ago.


Table of Contents

List of Figures

List of Tables

Foreword

This edition of the New Zealand Official Yearbook commemorates 100 years of women's suffrage.

The point of observing this centenary is to remind us that women's suffrage was the first step on a journey that we have yet to complete. This journey is the attainment of truly equal opportunity for New Zealand women and men; in the terminology of the last decade, a level playing field.

For many years, the events leading up to the changes of 1893 were almost forgotten. So were the people who led or resisted those changes. But starting about 20 years ago, those names began to be heard again — Kate Sheppard, Sir John Hall, Lavinia Kelsey, Learmonth Dalrymple, Helen Nichol, Amey Daldy and Alfred Saunders. A little research also reveals the antiquity of the arguments against equal opportunity, as expounded by suffrage opponents like Henry Fish, Richard Seddon and Thomas Bracken.

The lasting effect of the 1993 celebration of 100 years of women's suffrage in New Zealand should be the continuing assessment of our country by ourselves — our future will be shaped by our present understanding of the past. What is that understanding? What 1893 preconceptions about the roles of men and women turned out to be true? What views were mere sentimental nonsense? What do the results of the 1893 reform teach the New Zealanders of 100 years later.

Together with many special events scheduled for the coming year, the 1993 New Zealand Official Yearbook documents the way our lives and our country have changed. This knowledge can only improve our understanding of the present and then help us guide ourselves into our next century.

DAMECATHERINETIZARD, GCMG, DBE
Governor-General of New Zealand

The New Zealand coat of arms

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

One of the few specific changes to flow on from the granting of dominion status in 1907, was the right for New Zealand to have its own coat of arms. The design was approved by royal warrant on 26 August 1911. It appeared in the 1912 Yearbook in colour, along with a written description in full heraldic jargon. The coat of arms also appeared in the 1990 sesqui-centennial edition of the Yearbook.

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

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

Preface

Table of Contents

1893 was an eventful year in the history of New Zealand. Two events occurred which are reflected in this 1993 edition of the New Zealand Official Yearbook—women gained the right to vote, signalling the start of a century when the status of women would become an issue of significance to New Zealanders, and the first New Zealand Official Yearbook was published. The legal, institutional and demographic changes of the ensuing century have been documented in annals of the Yearbook.

The Yearbook itself, as public record, reflects changes current to New Zealand society. Its origins can be traced back to 1875 with Julius Vogel's Official Handbook of New Zealand. This Handbook was very much a prospectus for intending settlers and investors, promoting lucrative possibilities amongst lush descriptions of New Zealand's landscape and lifestyle.

In 1893 the first New Zealand Official Yearbook appeared. With statistics, special articles and detailed descriptions of the districts, it offered the first statement on ourselves as a nation. From this foundation the Yearbook has developed to be an effective and enviable source of public information.

The Yearbooks' style and content have changed often since that first edition, with the latest change in concept occurring only in the last two editions. The intention is to provide an historical volume every fifth year, with annual reviews in the interim. This programme enables the Yearbook, as a series, to provide up-to-date analyses of contemporary information and issues and also to supply a chart of New Zealand's course in the historical perspective.

This very special edition celebrates the centennial of women's suffrage, and in it we are presenting over 90 profiles of New Zealand women, both historical and contemporary. The women selected for inclusion in the Yearbook reflect those who have been successful in their chosen fields, have attained national prominence or have brought about significant changes through their work in both community and national affairs. The monitoring of success is a very subjective task; there are many more women who merit inclusion in the Yearbook, but to have covered them all would have been impossible.

With each passing Yearbook the number of contributors involved in the preparation of material for both the text and special articles grows. The department gratefully appreciates the time and effort of the people who have given of their time, and the goodwill extended in supplying the information. Finally, I would like to express my thanks to the editor, Jane Evans, the department's graphic design and other editorial staff and GP Print for the production of this 1993 Yearbook.

L. W. COOK,
Government Statistician

March 1993.

Acknowledgements

The 1993 Yearbook was produced by the Publications and Media Services Division 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.

Manager: Kevin Eddy.

Editor: Jane Evans.
With assistance from: Vivien Pullar; Deborah Willett.
Editorial assistant: 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. ‘ATL’ denotes the Alexander Turnbull Library as the source of the photograph; wherever known the name of the individual collection is also included (e.g., ATL, Auckland Star refers to the Auckland Star Collection within the Alexander Turnbull Library).

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

Sources

A number of sources have been consulted in the preparation of the special articles for the 1993 Yearbook. The texts most frequently used are listed below.

Book Of New Zealand Women, The, eds Macdonald, Penfold and Williams, Bridget William's Books Limited, 1991.

Encyclopaedia of New Zealand, An, ed McLintock, Government Print, 1966.

New Zealand Book of Events, The, ed Fraser, Reed Methuen Limited, 1986.

New Zealand Encyclopedia, ed McLauchlan, 3rd edition, David Bateman Limited, 1992.

New Zealand Famous Firsts and Related Records, Allan Sutherland, Universal Printers, 1961.

Who's Who In New Zealand, ed Lambert, 12th edition, Reed Books, 1991.

How to use the 1993 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 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 1221 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 December 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., 1989–90, and no month is mentioned, it can be assumed the figures are for the year ended 31 March.

The following symbols are used in all the tables:

xrevised figure or figures
nil or zero
..figures not available
 not yet available—space left blank
not applicable
--amount too small to be expressed
Pprovisional
n.e.c.not elsewhere classified
n.e.s.not elsewhere specified

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

Albatross chick tests its wings before leaving Taiaroa Head Royal Albatross Colony, Dunedin.

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 Island115 777
South Island151 215
Offshore islands833
Stewart Island1 746
Chatham Islands963
           Total270 534

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

Table 1.2. PRINCIPAL MOUNTAINS

Mountain or peakElevation

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

† Peaks over 3000 metres.

Source: Department of Survey and Land Information.

 metres
North Island—
      Ruapehu2 797
      Taranaki or Egmont*2 518
      Ngauruhoe2 290
      Tongariro1 968
South Island
Southern Alps
      Cook3 754
      Tasman3 497
      Dampier3 440
      Silberhorn3 279
      Lendenfeldt3 201
      Hicks (St David's Dome)3 183
      Torres3 163
      Teichelmann3 160
      Sefton3 157
      Malte Brun3 155
      Haast3 138
      Elie de Beaumont3 117
      Douglas3 085
      La Perouse3 079
      Heidinger3 066
      Minarets3 055
      Aspiring3 030
      Glacier Peak3 007

New Zealand's rivers are mainly swift and difficult to navigate. They are important as sources of hydro-electric power and artifical 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 formations, Wairarapa coast

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 1992. The pattern of earthquakes in New Zealand during 1992 was a little unusual, in that the latter half of the year was very quiet. There were 13 shocks of magnitude 5.0 or greater during the year: only four of these were in the July-December period, and the largest was only 5.4. In contrast, the nine shocks in the first half of the year included one of magnitude 6.4 and four others of 5.5 or greater.

The largest earthquake of the year occurred on 28 May, and was centred 30 km southwest of Blenheim. Its magnitude was 6.4, larger than those in March 1987 near Edgecumbe in the Bay of Plenty (6.1) and in May 1990 near Dannevirke (6.2). However, the effects were not as severe as either of these, because the focal depth was 84 km. Deep events like this, being further from the earth's surface, cause less motion there. It was felt from Huntly in the north to Dunedin in the south, most strongly in Nelson and Blenheim where many shops had goods thrown from shelves and there were some instances of minor damage. In Wellington it caused a swaying motion which persisted for a long time, especially in tall buildings where the movement was noticeable for a minute or more. While this motion is disconcerting to those experiencing it, the tall slender buildings are behaving as they were designed to do, swaying and flexing instead of sustaining damage.

On 2 March there was an earthquake of magnitude 5.5 in southern Hawke's Bay, between Weber and Porangahau, then another on 1 August, of magnitude 5.2 and centred between Weber and Pahiatua. They were felt strongly in Hawke's Bay and as far afield as Wanganui and Wellington. These shocks appear to be part of a continuing series which began with two in 1990, in February and May, which caused damage in Dannevirke and the nearby area. The series has continued since then, but mostly at a low level with only the occasional shock being felt. This series is somewhat unusual in its length, especially as the 1992 events were two years after the main shock. The Seismological Observatory is continuing surveillance of the area with its permanent network of seismographs.

Other shallow earthquakes of magnitude 5.0 and greater occurred near White Island on 26 March (5.4), and 22 June (5.6, 5.1), all felt strongly in Tauranga; near Arthur's Pass on 30 March (5.5); and near Tokomaru Bay on the East Coast on 17 May (5.3). All were felt sharply nearby, but not severely.

Deep earthquakes exceeding magnitude 5.0 occurred near Te Kuiti at a depth of 233 km on 15 January (5.1), 30 km south-west of Hawera at 122 km on 18 February (5.5), 296 km deep below Tauranga on 10 August (5.1), 167 km below Rotorua on 29 September (5.2), just west of National Park on 12 December at a depth of 167 km (5.4) and 276 km deep beneath Tauranga on December 27 (6.0). These earthquakes were all felt as slight jolts and vibrations, with no damage reported and none expected because of the focal depths.

The concentration of earthquakes in the first half of the year is interesting. There is little or no regularity in the way earthquakes occur, and while long term average rates have been established, the variation about these averages is quite substantial. This means that no particular significance can be attached to the quiet period we have been experiencing. It is true that periods of quiescence have been observed before large earthquakes, but this phenomenon is not well understood and it is the judgment of Seismological Observatory research staff that this current quiet period is simply an illustration of the sporadic nature of earthquakes.

Figure 1.1. LOCATION OF EARTHQUAKES 1992
Magnitudes 4.0 and greater

Storm, Moa Point, Wellington.

Weather 1992

1992 was a very significant year for weather in New Zealand. It was very cold, with south-westerlies for much of the year. Easterlies prevailed from September. These, together with more frequent low pressure systems east of the North Island, produced especially cloudy weather over much of the North Island and northern South Island.

The national average temperature of 11.7°C (0.8°C below average) was the lowest since 1945. This was particularly noticeable after the 1984–1990 period which was very warm. Temperatures were 1.5°C below those of 1990 and 0.7°C below those of 1991.

The weather was cooler due to the El Niño weather pattern (which was present during the first part of 1992) and the effects of the ash from the Mt Pinatubo volcanic eruption (still present) back in June 1991. There were also more south-easterly airstreams over New Zealand, which always bring cooler conditions. Very cold winter weather in inland South Island areas had temperatures as low as −15°C measured at Ranfurly in Central Otago on 19 June. The highest temperature of the year was 34°C at Alexandra on 11 March.

Figure 1.2. WEATHER
Sunshine hours (annual average to 1990)

A blanket of snow covering farm machinery at Pukehiki Church, Dunedin.

Winter snowstorms. Snow occurred in Otago and Canterbury on 9–11 May, then heavy snowfalls occurred in Otago and Southland for much of the week from 16 June which gave record low day and night time temperatures. More heavy snow occurred in Canterbury and inland Marlborough from 8–11 July. Later, very cold south-easterlies brought the most severe snowstorms since 1939 along the east coast of the South Island from 27–29 August.

Floods. Severe flooding occurred in Northland, Hawke's Bay and Wairarapa from 21–23 July. Waitohora, Wairarapa measured rainfall totalling 195 mm for the 48–hour period to 9 am on 23 July, with numerous slips and road closures throughout the region.

The southern oscillation and El Niño

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 Niña) or negative (El Niño), 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 Niño and La Nina episodes can persist for six to 12 months.

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

The most significant El Niño 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 Hawke's Bay.

The latest El Niño event (autumn 1991 through winter 1992) contributed to very low rainfall along the West Coast and inland South Canterbury (from May through July 1991 and again from April through June 1992).

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 new species of giant weta discovered by a Victoria University search party in the Southern Alps in 1992. The new weta is quite different from the seven recognised species of giant weta; it is plain brown in colour, with big spiny rear legs and a wide shield behind the head. It grows up to 7 centimetres in length and 12 grams in weight.

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

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.

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, is observed 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.

Contributors

  • 1.1 Department of Survey and Land Information.

  • 1.2 Department of Scientific and Industrial Research.

  • 1.3 National Institute of Water and Atmospheric Research Limited

  • 1.4 Department of Conservation.

  • 1.5 Department of Internal Affairs.

Special articles

Rae Julian (Lucy Moore), Pip Lynch (Jill Tremain), The Book of New Zealand Women, eds Macdonald, Penfold and Williams, Bridget Williams Books Limited, 1991.

Further information

Geography

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

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

Geology

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

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

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

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

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

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

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

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

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

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

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

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

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

Climate

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

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

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

The National Institute of Water and Atmospheric Research (Environmental Data Division) publishes monthly summaries of:

Climate Observations and Rainfall Observations. NIWAR also produces regional climatologies (Misc. Pub. 115), maps and holds 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

A meeting between the Minister of State-owned Enterprises and the chairmen of the SOEs.

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.

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 Habeas 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 

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 Referendum Act 1991 provided for an indicative referendum on electoral reform. The referendum was divided into two parts. The first part asked voters to choose between electoral reform or maintaining of the present first past the post system. The second part of the ballot asked voters to indicate which of four options for electoral reform they preferred: supplementary member, single transferable vote, mixed member proportional and preferential voting.

The referendum was held on 19 September 1992. Of the 1 217 284 people who voted (roughly 55 percent of the electorate) 1 031 257 or 84.7 percent, voted for change. A clear preference was shown for mixed member proportional representation which received 70.5 percent of the votes for change. The single transferable vote system got 17.4 percent of the votes, the preferential voting system 6.6 percent and the supplementary member system 5.6 percent of the votes. A second referendum will be held in conjunction with the 1993 general election where voters will choose between the present first past the post system and mixed member proportional representation.

Chief electoral officer pointing out the final vote of 70.3 percent for the mixed member proportional voting system on the screen after the electoral referendum.

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 Part 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 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.

The Privacy Commissioner Act 1991 established a privacy commissioner with the functions of overseeing compliance by the government agencies involved in the matching of government information with the statutory controls; and of performing a general watchdog role in relation to privacy. The Privacy Commissioner has no jurisdiction to deal with complaints by individuals that the statutory controls have been breached. The controls consist of requirements such as notice to the affected individual before action can be taken on the basis of a successful match, observation of time limits on the commencement of action after a successful match, and the establishment of technical standards for the conduct of matching programmes. The information that may be matched with the beneficiary records of the Department of Social Welfare and the Accident Compensation Corporation covers information relating to prison inmates, people arriving in and departing from New Zealand, illegal immigrants, taxpayers, recipients of student allowances and records of births, deaths and marriages.

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 1688, 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.

New Zealand's first woman Cabinet minister, Mabel Howard.

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 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.

‡ Reduced to 65 in 1991 when two members left and became New Zealand Liberal, increasing “Others” to three.

Source: Department of Justice.

1,960804634 
1,963804535 
1,9668044351*
1,969844539 
1,972873255 
1,975875532 
1,9789251401*
1,9819247432*
1,9849537562*
1,987974057 
1,9909767291

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 in 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

Parliament Period of session
Source: Clerk of the House of Representatives.
Fortieth7 April 1982–17 December 1982
7 April 1983–16 December 1983
31 May 1984–14 June 1984
Forty-first15 August 1984–12 December 1985
26 February 1986–21 July 1987
Forty-second16 September 1987–12 December 1989
14 February 1990–6 September 1990
Forty-third29 November 1990–18 January 1991
22 January 1991–

Table 2.4. SUMMARY OF PARLIAMENTARY PROCEEDINGS

 1987–89*19901991

* 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

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;

  • 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.

The Parliamentary Service is also responsible for managing the major project to strengthen and refurish Parliament House and the Parliamentary Library. The project began in August 1992 and will be completed, at an estimated cost of $164 million, in time for members to occupy the restored building for the 1996 parliamentary year.

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 $12,400.

Table 2.5. PARLIAMENTARY AND MINISTERIAL SALARIES AND ALLOWANCES

 Annual salary or allowance payable from 1 July 1990*

* Carried forward unchanged from 1 July 1991.

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-secretary9,500
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 allowances7,500
Deputy Chairman of Committee—basic expense allowances6,200
      (additional allowance (plus electorate, day and night allowances675
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 expenses6,200

WOMEN IN PARLIAMENT

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).

Elizabeth Reid McCombs, the first woman to win a seat in Parliament.

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. Robin 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 1 December 1991; died 5 August 1992.

§ Won Tamaki by-election 14 February 1992.

Resigned. Chris Laidlaw elected in by-election, 12 December 1992.

Source: Clerk of the House of Representatives.

Anderson, Robert1,936FarmerKaimai
Anderton, Jim1,938Company directorSydenham
Armstrong, John1,935Company directorNew Plymouth
Austin, Hon. Margaret1,933TeacherYaldhurst
Banks, Hon. John1,946RestaurateurWhangarei
Birch, Rt. Hon. W. F.1,934Consultant surveyor-engineerMaramarua
Blincoe, John1,952Research officerNelson
Bolger, Rt. Hon. J. B.1,935FarmerKing Country
Bradford, Mr Max1,942Secretary-General and consultantTarawera
Braybrooke, Geoff1,935Sales managerNapier
Burdon, Hon. Philip1,939Company directorFendalton
Campion, Cameron1,943FarmerWanganui
Carter, John1,950Local government officerBay of Islands
Caygill, Hon. David1,948Barrister and solicitorSt Albans
Clark, Rt. Hon. Helen1,950LecturerMt Albert
Cliffe, Bruce1,946Managing directorNorth Shore
Cooper, Hon. Warren1,933MotelierOtago
Creech, Hon Wyatt1,946AccountantWairarapa
Cullen, Hon. Dr Michael1,945LecturerSt Kilda
Dalziel, Lianne1,960Trade unionistChristchurch Central
Davies, Sonja1,923Vice-president of Federation of LabourPencarrow
Dunne, Hon. Peter1,954Deputy chief executive officerOhariu
East, Hon. Paul1,946Barrister and solicitorRotorua
Elder, Jack1,949TeacherWest Auckland
English, Bill1,961FarmerWallace
Falloon, Hon. John1,942Farm management consultantPahiatua
Fletcher, Chris1,955Dairy farm managerEden
Gerard, Mr1,937FarmerRangiora
Graham, Hon. D. A. M.1,942Barrister and solicitorRemuera
Grant, Jeff1,958FarmerAwarua
Gray, Hon. Robin1,931FarmerClutha
Gregory, Dr Bruce1,937Doctor of medicineNorthern Maori
Gresham, Peter1,933AccountantWaitotara
Hancock, Hamish1,947LawyerHorowhenua
Hasler, Marie1,945Retail managerTitirangi
Hawkins, George1,946TeacherManurewa
Hilt, Peter1,942Company directorGlenfield
Hodgson, Peter1,950VeterinarianDunedin North
Hunt, Rt. Hon. Jonathan1,938TeacherNew Lynn
Kelly, Graham1,941Trade unionistPorirua
Kidd, Hon. Doug1,941Barrister and solicitorMarlborough
Kimber, Wayne1,949Surveyor/plannerGisborne
Kyd, Warren1,939Barrister and solicitorClevedon
Lange, Rt. Hon. David1,942Barrister and solicitorMangere
Laws, Michael1,957Public relations consultantHawke's Bay
Lee, Hon. Graeme1,935Company directorCoromandel
Luxton, Hon. John1,946FarmerMatamata
McCardle, Peter1,951Public servantHeretaunga
McClay, Hon. Roger1,945TeacherWaikaremoana
McCully, Hon. Murray1,953Public relations consultantEast Coast Bays
McIntosh, Ms Gail1,955AccountantLyttelton
MacIntyre, Hamish1,951DoctorManawatu
McKinnon, Rt. Hon. Don1,939Real estate agentAlbany
McLauchlan, Joy1,948Executive officerWestern Hutt
McTigue, Hon. Maurice1,940FarmerTimaru
Maharey, Steve1,953University lecturerPalmerston North
Marshall, Hon. Denis1,943Farmer and company directorRangitikei
Matthewson, Hon. Clive1,944Civil engineerDunedin West
Maxwell, Hon. R. F. H.1,941FarmerTaranaki
Meurant, Ross1,947Police inspectorHobson
Moir, Margaret1,941Company directorWest Coast
Moore, Rt. Hon. Mike1,949Freezing workerChristchurch North
Muldoon, Rt. Hon. Sir Robert, G.C.M.G., C.H.1,921AccountantTamaki
Munro, R. J. S.1,946Barrister and solicitorInvercargill
Myles, Gilbert1,945Company directorRoskill
Neeson, Brian1,945Real estate agentTe Atatu
Neill, Alec1,950Barrister and solicitorWaitaki
O'Regan, Hon. Katherine1,946FarmerWaipa
Peters, Ian1,941Real estate agentTongariro
Peters, Winston1,945Barrister and solicitorTauranga
Prebble, Hon. Richard1,948Barrister and solicitorAuckland Central
Reeves, Graeme1,947Barrister and solicitorMiramar
Revell, Ian1,948Police officerBirkenhead
Richardson, Hon. Ruth1,950Legal adviser/farmerSelwyn
Robertson, H. V. Ross1,949Industrial engineerPapatoetoe
Robertson, John1,951AccountantPapakura
Rogers, Mr Trevor1,943ImporterOtara
Ryall, Tony1,964AccountantEast Cape
Shipley, Hon. Jenny1,952FarmerAshburton
Simich, Clem1,939General managerTamaki§
Smith, Dr Lockwood1,948Managing directorKaipara
Smith, Nick1,964EngineerTasman
Sowry, Roger1,958Retail managerKapiti
Steel, Tony1,941TeacherHamilton East
Storey, Hon. Rob1,936President of Federated FarmersWaikato
Sutherland, Larry1,951Trade unionistAvon
Swain, Paul1,951Trade unionistEastern Hutt
Tapsell, Hon. Dr Peter M.B.E.1,930Doctor of medicineEastern Maori
Tennet, Elizabeth1,953Trade unionistIsland Bay
Thomas, Grant1,941Company directorHamilton West
Thorne, Grahame1,946Television producerOnehunga
Tirikatene-Sullivan, Hon. Mrs T. W. M.1,932Political scientistSouthern Maori
Tizard, Judith1,956Electorate secretaryPanmure
Upton, Hon. Simon1,958Student/teacherRaglan
Wetere, Hon. K. T.1,935FarmerWestern Maori
Whittaker, Jeff1,940PharmacistHastings
Wilde, Hon. Fran1,948JournalistWellington Central
Williamson, Hon. Maurice1,951Planning 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. 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 committees which can examine subjects in detail and recommend specific policy measures to Cabinet.

The proceedings of the Cabinet are informal and confidential, and decisions are usually made by consensus. 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 LangeLabour26 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–            

Sir Robert Muldoon.

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. Jim Bolger, Prime Minister.
Rt. Hon. Don McKinnon, Deputy Prime Minister, Minister of External Relations and Trade, Minister of Foreign Affairs, Minister of Pacific Island Affairs.
Rt. Hon. Bill Birch, Minister of Labour, Minister of State Services, Minister of Employment, Minister of Immigration.
Hon. Ruth Richardson, Minister of Finance.
Hon. Paul East, Attorney-General.
Hon. John Falloon, Minister of Agriculture, Minister of Forestry.
Hon. Doug Kidd, Minister of Maori Affairs, Minister of Fisheries.
Hon. Phillip Burdon, Minister of Commerce.
Hon. Simon Upton, Minister of Health, Minister of Research, Science and Technology, Minister of Crown Research Institutes.
Hon. John 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. Warren Cooper, Minister of Defence, Minister of Local Government.
Hon. Doug Graham, Minister of Justice, Minister for Disarmament and Arms Control, Minister of Cultural Affairs.
Hon. Dr. Lockwood Smith, Minister of Education.
Hon. Maurice McTigue, Minister of State Owned Enterprises, Minister of Railways, Minister of Works and Development.
Hon. Rob Storey, Minister of Transport, Minister of Lands, Minister for the Environment.
Hon. Denis Marshall, Minister of Conservation.
Hon. John Luxton, Minister of Housing, Minister of Energy.
Hon Wyatt Creech, Minister of Revenue, Minister for Senior Citizens.
Hon. Maurice Williamson, Minister of Communications, Minister of Broadcasting, Minister of Statistics.
 
Ministers not in Cabinet
Hon. Katherine O'Regan, Minister of Consumer Affairs.
Hon. Roger McClay, Minister of Youth Affairs.
Hon. Graeme Lee, Minister of Internal Affairs, Minister of Civil Defence.
Hon. Roger Maxwell, Minister of Business Development.
Hon. Murray McCully, Minister of Customs.
 
Other responsibilities
Ministers with other vote or statutory responsibilities are indicated below. Statutory titles are shown in italics.
Rt. Hon. Jim Bolger, Minister in Charge of the New Zealand Security Service.
Hon. Bill Birch, Accident Compensation Corporation.
Hon. Ruth Richardson, Earthquake and War Damage Corporation, National Provident Fund.
Hon. Paul East, Serious Fraud Office, Leader of the House, Audit Department, Minister of Crown Health Enterprises.
Hon. John Falloon, Minister for Racing.
Hon. Phillip Burdon, Minister for Industry, Associate Minister of External Relations and Trade, Minister for Trade Negotiations.
Hon. Warren 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. Maurice 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. Rob Storey, Minister of Survey and Land Information, Minister in Charge of Valuation Department.
Hon. Denis Marshall, Associate Minister of Agriculture, Associate Minister of Employment.
Hon. John Luxton, Associate Minister of Maori Affairs, Associate Minister of Education.
Hon. Wyatt Creech, Associate Minister of Finance, Associate Minister of Social Welfare, Government Superannuation Fund, Minister in Charge of the Public Trust Office.
Hon. Maurice 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. Roger McClay, Associate Minister of Education, Associate Minister of Social Welfare, Associate Minister of Pacific Affairs.
Hon. Roger Maxwell, Associate Minister of Employment, Associate Minister of Immigration.
Hon. Murray 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.

VOTER TURNOUT

Percentage of enrolled electors voting at general elections

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.

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.
1,9812 034 7471 801 3038 99850 26391.44
1,9842 111 6511 929 2017 56542 03293.71
1,9872 114 6561 831 77711 18440 43389.06
1,9902 202 1571 824 09210 18042 84385.24

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.

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.

Figure 2.1. 1992 ELECTORAL DISTRICTS - NORTH ISLAND

New Zealand's first female Deputy Prime Minister (Labour, 1989–90), Helen Clark.

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.

Figure 2.2. 1992 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
Green124 9156.85
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 Labour94 1715.16
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 votes8 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 issue1990Percentage of vote
Source: Department of Justice.
For a 3 year parliamentary term1 258 01869.33
For a 4 year parliamentary term556 55930.67

New stamp issue from NZ Post celebrating the centenary of women's suffrage.

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.

2.3 State sector

The state sector is responsible for putting the policies of the Government into effect. It comprises government departments, crown-owned entities, 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 1992 the number of staff employed in public service departments was 42 894—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 seven 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 focussed decision making on reaching the goals of the Government. The new financial reporting requirements provide much better information for those making decisions.

The process of state sector reform is continuing. The effectiveness of the reforms to date, in improving performance in the public sector, is the subject of a review completed by the State Services Commission in November 1991. The review produced recommendations, which are currently being actioned, in the areas of:

  • Information for Parliament.

  • The roles and responsibilities of the central agencies.

  • Senior Public Service management development.

  • The fine tuning of the financial management reforms.

The establishment of Crown Research Institutes in July 1992 saw the completion of structural reforms in the area of science and technology. The institutes have a strong commercial orientation towards the long term technological needs of industry.

The New Zealand Meteorological Service is the latest government department to have been turned into a state-owned enterprises. Structural reform continues to reflect the Government's policy of separating the funder from the provider. The Housing Corporation of New Zealand has recently been split into two organisations: the Ministry of Housing, which provides policy advice on housing issues; and Housing New Zealand which provides rental services. Structural reform is now focussed on the health sector and affects the Department of Health and Area Health Boards. Work is continuing on establishing, by July 1993, Regional Health Authorities and Crown Health Enterprises. Regional Health Authorities will be responsible for the purchase of health services for provider organisations. Crown Health Enterprises will supply health services. A Public Health Commission is being formed to monitor and analyse the state of public health in New Zealand and advise on public health goals and objectives.

Figure 2.3. THE PUBLIC SERVICE
Ratio of male to female staff

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, forest farm and parks, the coastal marine area (in partnership with regional councils) 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 Manatū Tikanga-ā-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. (Te Mana Arai O Aotearoa.) 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. See section 22.1, Administration and development of trade.

Defence, Ministry of. (Te Manatū Kaupapa Waonga.) The Ministry of Defence is the Government's principal source of advice on defence policy. It also carries out audits and assessments on the performance of the defence organisations and manages procurement projects which entail a significant change to New Zealand's defence capability. In many matters the ministry works jointly with the New Zealand Defence Force.

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 Matauranga.) The general purpose of the Education Review Office is to provide regular, independent, high quality evaluative reports for the Minister; the governing authorities and managers of schools and early childhood centres; and all those with an interest in the performance of the education sector and the educational achievements of learners.

Environment, Ministry for the. (Te Manatū mō te Taiao.) The role of the Ministry for the Environment is to provide policy advice to the Government that promotes sustainable management of the environment; and to encourage sustainable management of the environment through the administration of environmental statutes, advocacy, education and advice.

The Environment Act 1986 defines environment as emcompassing ecosystems and their constitutent parts, all natural and physical resources (including buildings and man-made structures), and the social, economic, aesthetic and cultural conditions which affect the environment or which are affected by changes to the environment.

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 Soil Conservation and Rivers Control Act 1941, 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 Manatū Āhuatauga Tāwāhi, Tauhoko.) The Ministry of External Relations and Trade conducts the Government's business with foreign countries and their governments, and with international organisations.

It advises the Government on where New Zealand's advantage lies in relation to other countries. On behalf of the Government, it intervenes with other governments to promote New Zealand's interests.

It looks at New Zealand's relations with other countries as a whole. It draws together the various aspects of New Zealand's national interests including relevant domestic interests to achieve most benefit for New Zealand in relation to the Government's security, political, trade and economic objectives.

The ministry maintains posts overseas to transact official business and support the international operations and initiatives of the Government. In addition the ministry is responsible for management and support of New Zealand operations in the Antarctic through the New Zealand Antarctic Programme.

Forestry, Ministry of. (Te Manatū Ngāherehere.) The Government's forestry agency is responsible for facilitating the optimal contribution from forestry and forestry products for New Zealand's sustainable development and economic growth. This is achieved by providing information and advice to Government; communicating and managing the implementation of government policies; representing Government's interests in New Zealand and internationally; ensuring the Crown's obligations are met; and ensuring that authoritative information is available on the sector.

Government Superannuation Fund Department. (Te Pūtea Penihana Kāwanatanga.) The function of the department is to provide professional management of superannuation schemes constituted under 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, Ministry of. The ministry's main functions are the provision of: high quality and timely policy advice on housing to the Government; and efficient and effective tenancy bond and dispute resolution services across New Zealand. See section 19.4, Reform of housing assistance.

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. From 1992 the department collects Child Support and Gaming Duty payments. The department also collects accident compensation levies on behalf of the Accident Rehabilitation and Compensation Insurance Corporation. See section 25.2, Taxation.

Internal Affairs, Department of. (Te Tari Taiwhenua.) The mission of the department is to deliver excellent services relating to the nation's identity, heritage and administration of value to the Government and community. 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.

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, people on community based sentences 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 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 Mātauranga 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 National Provident Fund comprises 17 superannuation schemes and a Global Asset Trust through which the schemes' assets are managed. The superannuation schemes are provided to individuals, employees of private sector businesses, 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. (Ngā Pirihimana o Aotearoa.) The mission of the police is to contribute to the provision of a safe and secure environment where people may go about their lawful business unhindered. The aim of the police is to establish and maintain a partnership between themselves and the communities they serve; maintain public safety, order and the rule of law; retain public confidence and satisfaction in the services they provide; minimise the incidence and effects of crime; and provide community support and protection during disasters and emergencies. 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, which includes the Honours Secretariat; the Domestic and External Security Secretariat; the Communications Unit; Government House; and the External Assessments Bureau, which provides intelligence assessments to the Government on developments overseas.

Following the 1991 Budget announcements on health reforms, Cabinet decided that the implementation units would be based in the Department of the Prime Minister and Cabinet. There are three units involved: the National Interim Provider Board which advises the government through the Minister for Crown Health Enterprises on the establishment of the new health provider organisations; the Health Reforms directorate which provides policy, regulatory, and implementation advice to the Government through the Minister of Health on the purchase of health services; and a Co-ordination and Communications Unit which involves communication and consultation with the health sector and the general public on health reform issues. The Prime Minister has delegated full management responsibility of the Health Reforms directorate and the Co-ordination and Communications Unit to the Minister of Health, and the National Interim Provider Board to the Minister of Crown Health Enterprises.

In December 1991, Cabinet agreed that the Special Committee on Nuclear Propulsion be established to review the safety, environmental, and other issues relating to nuclear-powered ships and their entry into New Zealand ports. The committee draws secretariat support from the department.

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. (Te Manatū Putaiao.) Established in October 1989, the ministry's primary role is to provide advice to government on the development of research, science and technology policy including science priorities and funding. It is also involved in the broad review of Crown-funded science, the establishment of an information base on science and technology, and the administration of international science agreements. See section 13.1 Organisation of science.

Scientific and Industrial Research, Department of. The DSIR and other government departments, which provide scientific research services, have been 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 Kōmihana o ngā Tari Kāwanatanga.) 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 Kōrero 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 are to: ensure that New Zealand is developed and marketed as a distinct and competitive visitor destination overseas; promote and progress New Zealand's tourism development and intiate programmes to foster this development; administer jointly-funded public and private sector marketing programmes; undertake research of visitor arrivals, overseas tourism markets and regional tourism; take a leadership role in achieving industry unity. The New Zealand Tourism Board is headed by a nine member private sector executive board. The board has 14 overseas marketing offices. See Section 11.6, Leisure.

Trade Development Board (TRADENZ), New Zealand. The role of Tradenz (The New Zealand Trade Development Board) is to help New Zealand business increase foreign exchange earnings. Tradenz does this by working with New Zealand exporters to identify and capitalise on market opportunities and by improving companies' ability to compete profitably overseas.

Transport, Ministry of. (Te Manatū Waka.) The Ministry of Transport promotes safe and efficient transport that is environmentally sustainable and provided at reasonable cost. 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 two operating divisions dealing with land and maritime transport and a small corporate office.

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 mō ngā Wāhine.) This ministry was established in 1984 to assist the Government to improve the status of women and to work towards the achievement of equality in all spheres of social, political and economic activity. The ministry's primary function is to advise the Minister of Women's Affairs. In carrying out this function the ministry provides specialist advice on legislative and other policy matters affecting the status of women and undertakes educational and 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.

The ministry works through three main areas; policy advice to the Minister of Youth Affairs and Government, liaison services gathering input from young people and youth networking, and administering the Conservation Corps programme, which provides young people with opportunities for employment, training and personal development through 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-owned entities. These organisation are defined in the Public Finance Amendment (No. 3) Act 1992. “Crown-owned entity” means a body or statutory officer named in the Third or the Fourth Schedule of the Public Finance Act and describes entities owned by the Crown which are not departments, Offices of Parliament or state-owned enterprises.

State-owned Enterprises. State-owned enterprises are companies established by the Government to manage its trading activities. The principle objective of every state-owned 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.

  • 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.

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. 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.

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 effective conduct of public affairs; trade secrets and commercial sensitivity; personal privacy and the safety of any person.

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.

An information guide concerning access to personal and official information is available from 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.

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 ombudsman believes a complaint can be sustained, this opinion is reported 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 the 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 of 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, 1991–92*

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 jurisdiction24712
Declined or discontinued section 174091141
Resolved in course of investigation22123950
Resolved informally10716412
Sustained, recommendation made38238
Sustained, no recommendation made51141
Not sustained52520127
Formal investigation not undertaken, explanation, advice, or assistance given7179514
Still under investigation as at 30 June50034533
      Total2 8151 207146

Parliamentary Commissioner for the Environment

This parliamentary office was established in 1987 as part of the restructuring of the government's administration of the environment. The Parliamentary Commissioner for the Environment (Te Kaitiaki Taiao a Te Whare Pāremata) was also created in response to significant public demands for an independent authority to review and publicly report on the environmental effects of central and local government works and policies.

Authority for the appointment of the Commissioner and the functions, powers and duties exercised by the Commissioner are set out in the Environment Act 1986. Commissioner appointments are made by the Governor-General on the recommendation of the House of Representatives. The term of appointment is five years.

The principal functions of the Commissioner comprise:

  • Reviews of the Government systems established to manage the allocation, use and protection of natural and physical resources.

  • Investigations into the effectiveness of public authority environmental planning and management and other matters where there is considered to be significant actual or potential harm to the environment.

The Commissioner is also responsible for carrying out inquiries requested by the House of Representatives and for providing reports on proposed legislation, petitions and other matters of environmental significance under consideration by the House. Among the other powers of the Commissioner are the publishing of reports and the advising of the House on findings of reviews and investigations. With the exception of requests and directions made by the House of Representatives, the Commissioner has discretion to determine action on reviews and investigations carried out by the office.

The Environment Act sets out matters for the Commissioner to consider when exercising the functions of the office. The matters are diverse, including the maintenance and restoration of important ecosystems, the protection of the heritage of the tangata whenua, the prevention of pollution and the effects on communities of actual or proposed changes to natural and physical resources.

Helen Hughes, Parliamentary Commissioner for the Environment.

2.4 Local government

New Zealand has a system of local government that is largely independent of the central executive government. It has, however, a subordinate role in the constitution as the powers of local authorities are only those conferred by Parliament.

Local authorities fall into three categories: regional, territorial and special purpose authorities. Many territorial authorities contain one or more communities administered by community boards, but these are not separate local authorities.

The Local Government Act 1974 is the statute constituting regional councils and territorial authorities. Their boundaries are usually defined by the Local Government Commission. They have their own sources of income independent of central government, and the basic source of income (apart from the income of trading activities under the control of territorial authorities) is local taxes on landed property (rates). Rates are set by the local authorities themselves, subject to the Rating Powers Act 1988. The six special purpose authorities are constituted under their own Acts.

Several important statutes apply not only to local authorities as defined in the Local Government Act, but to a wider range of public bodies. These include: the Local Authorities Loans Act 1956; the Local Government Official Information and Meetings Act 1987; the Local Authorities (Members' Interests) Act 1968; and the Local Elections and Polls Act 1976.

Local authorities derive their functions and powers not only from the local government legislation as such, but from numerous other Acts, such as the Resource Management Act 1991, the Transit New Zealand Act 1989, and the Building Act 1991.

Under Parliamentary Standing Orders, 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 it becomes a local Act, and applies only to the body or bodies which promoted it.

Local authorities are answerable above all to their electorates, through triennial general elections. Legislation includes numerous provisions for local authorities to give public notice and receive public submissions before making certain important decisions. The Local Government Official Information and Meetings Act 1987 promotes open conduct of local authority meetings and sets out rights of access to official information. Local authorities may also come under the scrutiny of the Ombudsman, the Controller and Auditor-General and the Parliamentary Commissioner for the Environment.

Under a 1992 amendment, the Minister of Local Government may appoint a review authority, where it is considered there has been serious mismanagement, and may require the local authority to implement the review authority's recommendations. Any decision by a local authority may be reviewed by appeal to the High Court, and decisions under the Resource Management Act 1991 may be appealed to the Planning Tribunal.

Local government organisation

The structure of local government was thoroughly reorganised in 1989. There are now:

  • 12 regional councils.

  • 74 territorial authorities.

  • 155 community boards.

  • 6 special authorities.

In 1989 a statement on the purposes of local government was included in the Local Government Act 1974. This holds as central the recognition of the existence of different communities in New Zealand, and their separate identities and values; and the effective participation of local persons in local government. Also included was an accountability scheme, whereby 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 was placed on setting objectives and measuring performance.

Local authorities are encouraged to corporatise or privatise their trading activities (aside from airports, seaports and energy supply operations which are covered by separate legislation). The Act requires territorial authorities to corporatise or establish as a business unit any of their operations carrying out subsidised road construction work and corporatise any public transport undertaking. Local authorities are required to consider putting out the delivery of all services to competitive tender.

Regional councils

The regional councils are directly elected, set their own rates and have a chairperson elected by their members. Their main functions are:

  • The functions under the Resource Management Act.

  • The functions under the Soil Conservation and Rivers Control Act.

  • Control of pests and noxious plants.

  • Harbour regulations and marine pollution control.

  • Regional aspects of civil defence.

  • Overview transport planning.

  • Control of passenger transport operators.

Some regional councils also have other functions, such as those formerly undertaken by land drainage boards.

In 1989 regional councils in Auckland and Wellington inherited a number of public utilities and trading activities: in Auckland trunk sewerage, bulk water supply, rubbish disposal, buses, forestry, regional parks and regional roads; in Wellington bulk water supply, forestry and regional parks.

In 1992 the law governing the councils was extensively amended to clarify the role of regional councils as regulatory authorities concerned with resource management and related functions, including public passenger transport planning in Auckland and Wellington. The differentiation between regional councils and territorial authorities is not so much hierarchial as functional, and that the range of regional council functions is not open ended.

Also in 1992 the various services of the Auckland Regional Council were transferred to a new body, the Auckland Regional Services Trust. However, Auckland and Wellington both retain administration of regional parks and reserves.

Figure 2.4. LOCAL GOVERNMENT BOUNDARIES - NORTH ISLAND
With effect from 1 July 1992

Prison inmates painting booth signs for the September 1992 electoral referendum.

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 1995. All regional council, territorial authority, special purpose local authority and community board elections are 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 existing membership and the wards or constituencies until 1995.

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; however, postal voting was almost universal by 1992. 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 a regional council or territorial authority or community board. In 1992 a prohibition was introduced on a person being a candidate for both a regional council and a territorial authority or community board within that region. Vacancies may be filled either by an election or by appointment, depending upon the type of council, the circumstances of the vacancy and the wishes of the electors.

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. The commission has two major functions. Firstly, 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 constitution of communities.

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

Also, in accordance with amendments to the Local Government Act 1992, the commission assumed new responsibilities relating to the preparation and processing of reorganisation proposals for:

  • New districts with a population of more than 10 000 persons.

  • New regions with a population of more than 50 000 persons.

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 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.

Table 2.19. ENGLISH AND MAORI TEXTS OF THE NEW ZEALAND ANTHEM

      GOD DEFEND NEW ZEALAND      AOTEAROA
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 ho 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 assail 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; Office of the Parliamentary Commissioner of the Environment.

  • 2.4 Department of Internal Affairs; Local Government Commission.

  • 2.5 Department of Internal Affairs.

Special articles

Department of Justice; Government House; State Services Commission; WEL (NZ); Nga Tohu o Te Tiriti Making a Mark, Miria Simpson, National Library of New Zealand, 1990; Supplement to Ministers and Members in the New Zealand Parliament, GA Wood, Tarkwode Press, 1992; Who's Who in the New Zealand Parliament, Parliamentary Service, 2nd edition, 1990.

Further information

Constitution

Introduction to the 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. GP Print (weekly when the House of Representatives is sitting).

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. GP Print, 1992.

Who's Who in the New Zealand Parliament. Parliamentary Service, 1990.

New Zealand Politics in Perspective. Gold, Hyam (editor), Longman Paul, 3rd ed., 1992.

The Dilemma of Parliament. Jackson, Keith, Allen and Unwin, 1987.

An Introduction to New Zealand Government. Ringer, J. B., Hazard Press, 1991.

State sector

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

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

Reports of the Parliamentary Commissioner for the Environment (Parl. paper C12).

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

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.

The first page of the suffrage petition as presented to Parliament in 1893.

Chapter 3. International relations and defence

Women's National Service Corps on parade, Auckland.

3.1 Relations with other countries

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 has 42 diplomatic and consular posts located in 37 countries and territories. Multiple accreditation allows some New Zealand representatives to cover other countries from their bases. In 1992 a new embassy in Madrid was opened.

The Ministry of External Relations and Trade has responsibility on behalf of the Government for all major policy functions related to New Zealand's external relations. The ministry's work involves management of New Zealand's political, security, trade and economic relations with other countries and management of New Zealand's interests in international organisations. Other functions include management of New Zealand official development assistance, consular services to New Zealanders abroad, provision of operational and administrative support services to other New Zealand Government agencies overseas, and management of the New Zealand Antarctic Programme.

The ministry is the official channel of communication between the New Zealand Government and other governments. 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.

The ministry consults closely with other government departments and agencies on domestic and international developments and their interrelationships. The New Zealand Trade Development Board is a particularly important partner in programmes to promote foreign exchange earnings.

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 countries of the South Pacific and maintains regular contact on a range of bilateral and regional issues. Over 60 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 $630 million in 1992. Fiji, Papua New Guinea and the French Territories are the most important markets. Imports, amounting to about $125 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 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.

Figure 3.1. OVERSEAS REPRESENTATION

Dovey Taiaroa and the Dalai Lama at welcome on Pipitea Marae, Wellington.

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 was 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 force structure development, training, exercises and procurement under the aegis of Closer Defence Relations (CDR). 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 become increasingly involved in developments in the Asia/Pacific region. Asia provides a market for over one-third of our exports and a source of almost a third of our imports. Is is a major source of investment and of trained migrants. Political relations with Asian nations are close, reinforced by high-level visits and regular consultations involving officials and Ministers. New Zealand maintains diplomatic missions in Beijing, Tokyo, Seoul, Hong Kong, Bangkok, Kuala Lumpur, Manila, Singapore, Jakarta and New Delhi and a trade and consular office in Shanghai.

New Zealand is one of the original dialogue partners of the Association of South-East Asian Nations (ASEAN) and co-operates with ASEAN in a number of regional development and trade promotion activities. It has followed closely the peace settlement process in Cambodia and has contributed both military and civilian personnel to the United Nations' Transitional Authority in Cambodia (UNTAC). The New Zealand Defence Force maintains defence co-operation programmes with the six ASEAN countries and works with Singapore, Malaysia and Brunei through the Five Power Defence Arrangements.

One of the founding members of the Asia/Pacific Economic Co-operation (APEC) forum, established in 1989, New Zealand plays an active part in APEC working groups. At the nongovernmental level, New Zealand also participates in the Pacific Economic Co-operation Council, which groups business people, academics and officials from all our major regional trading partners. Given the many mutual interests within the region, New Zealand also cooperates closely with the ASEAN nations and other regional partners in wider international forums, including the United Nations and the GATT.

Bilateral trade with all our main Asian trading partners is rising fast. The economic relationship with Japan is among our most important and Japan remains New Zealand's second largest export market. Trade is increasingly diversified, helped by the complementary nature of the Japanese and New Zealand economies, and tourism and investment from Japan are playing a key role in the development of New Zealand's economy. Accelerating economic reform in China is opening up exciting possibilities for New Zealand in Asia's largest market, with total trade in the year ended June 1992 exceeding $700 million. Two-way investment is also growing. Trade with South Korea, Taiwan and Hong Kong is also increasing and these markets offer excellent potential.

The rapid growth of the ASEAN economies, with Singapore, Thailand, Malaysia and Indonesia all experiencing consistent annual growth rates of around 9 percent, has contributed to this increase in trade. Singapore is now a major source of investment capital for New Zealand and rising incomes in South-East Asia are creating a demand for our high-quality food products and technology. ASEAN is also an important source of tourists, with direct aviation links now operating with Singapore, Indonesia, Malaysia and Thailand.

The new Malaysian ambassador, dressed in national costume, arriving at Government House to present her credentials. Tunku Dato Nazihah is Malaysia's first woman ambassador and a career diplomat.

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, Asia-Pacific policies, 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 1981 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 whose responsibilities also include the facilitation of trade. The High Commissioner in Ottawa is accredited to the Caribbean countries of Barbados, Guyana, Jamaica and Trinidad and Tobago and there is an honorary consul in Port of Spain.

Trade is the primary focus of New Zealand's relationship with Latin America and the Caribbean, mainly exports of dairy products, agricultural machinery 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, disarmament and Pacific regional co-operation.

Western Europe

The European Community (EC), which is New Zealand's second largest market, becomes a Single Market on 1 January 1993. This will assist New Zealand exporters by encouraging community-wide distribution of goods and by obviating the need to observe multiple standards and import requirements.

New Zealand's relationship with the twelve-member EC 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. In 1992 the Minister of External Relations and Trade had meetings with the Portuguese and British presidencies. 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. Pending the establishment of long-term access agreements under the GATT, 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.

The new Mongolian ambassador, dressed in national costume, arriving at accreditation at Government House.

In 1992 agreement was reached on the establishment of a European Economic Area covering most trade (though not in agriculture) between the European Community and the countries of the European Free Trade Association (EFTA). Austria, Finland, Sweden and Switzerland have applied to join the community and Norway could follow suit. The accession of most of the EFTA countries within a few years could further increase the economic and trading importance to New Zealand of the EC.

During 1992 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.

Central Europe

Developments over the last two years 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 assistance 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.

New Zealand is also a participant in the European Bank for Reconstruction and Development established to assist the economic rehabilitation of Central Europe and the former Soviet Union.

Responsibility for New Zealand's relations with Poland, Hungary and Czechoslovakia has been transferred to the embassy in Bonn.

Former Soviet Union

Fifteen independent states now replace the former Soviet Union. These are: Armenia; Azerbaijan; Belarus; Estonia; Georgia; Kazakhstan; Kyrgyzstan; Latvia; Lithuania; Moldova; Russia; Tajikistan; Turkmenistan; Ukraine; and Uzbekistan. Eleven of these (the exceptions are Estonia, Georgia, Latvia and Lithuania) maintain co-operation in certain areas as a “Commonwealth of Independent States”.

Trade remains the central component of New Zealand's economic relations with the states of the former Soviet Union, although in 1992 exports declined to $99 million (mainly dairy products and wool). The involvement of Russian and Ukranian fishing vessels had added a $100 million to the value of the economic relationship. Trade has been disrupted by delays in payment caused by a shortage of hard currency. Exporters are seeking new methods of securing contracts, including building relationships with the increasingly autonomous regional executives. International financial assistance to the new independent states, combined with the implementation of market-based reforms will lay the foundation for higher levels of trade in the medium-term.

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.

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, Mozambique and South Africa.

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.

The Emir of Kuwait inspecting an air force guard of honour, Wellington. The emir visited in September 1992 to thank New Zealand for its contribution to the Gulf War.

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) programme is managed by the Development Co-operation Division of the Ministry of External Relations and Trade in Wellington in conjunction with New Zealand's diplomatic posts overseas. New Zealand views its ODA programme as a co-operative process and as a partnership of the peoples and countries involved. In carrying out its work, the ministry's development expertise and experience is complemented by that of a wide range of New Zealanders drawn from both private and public sectors, as well as counterparts in the partner countries.

New Zealand's ODA programme follows a set of nine guiding principles, which were most recently revised in April 1992. These include the recognition that an effective and appropriate programme of co-operation with developing countries is in the long term political and economic interests of all the partner countries involved, including New Zealand, and contributes to stability and harmony in the international community. The principal purpose of New Zealand's ODA is to help promote sustainable economic and social progress and justice in developing countries.

For financial and administrative purposes the NZODA programme is divided into two broad schedules of activities—bilateral and multilateral. The bilateral schedule encompasses New Zealand's development co-operation with over 40 other countries. The main focus, however, is on the more extensive co-operation programmes under way with around 20 major partner countries in the South Pacific and South-East Asia.

The bilateral schedule is dominated by direct assistance on a one-to-one country-to-country basis, comprising in most cases a wide range of developmental projects. Direct bilateral assistance of this kind accounts for over half of New Zealand's total ODA spending. In addition, a number of regional programmes which serve groups of bilateral partner countries are also included on the bilateral schedule of NZODA. For example, New Zealand promotes development of the South Pacific region as a whole with contributions to the Pacific Forum Secretariat, the South Pacific Commission, the Forum Fisheries Agency, the South Pacific Regional Environment Programme, the University of the South Pacific, and the Pacific Islands Industrial Development Scheme. Another large component of the bilateral schedule is funding of tuition fees scholarships for partner country citizens to study and train independently in New Zealand, in addition to those students fully funded under the individual country programmes.

Substantial bilateral ODA funding is also directed to emergency and disaster relief operations, both government-to-government and through established disaster relief organisations and international agencies (see section 3.2, Humanitarian relief).

Support for non-governmental organisations (NGOs) with established track records in assisting developing countries is another important component of the bilateral schedule of NZODA. This currently takes the form of annual grants to Volunteer Service Abroad (VSA) and the NGO umbrella group, the Council for International Development (CID). In addition, the Voluntary Agency Support Scheme (VASS) helps fund NGO programmes in developing countries all over the world. Recommendations for VASS funding are made by a project selection committee including three members elected by the New Zealand NGO community.

The multilateral schedule of the ODA programme comprises New Zealand's contributions to the major international development organisations. These fall into four broad categories—international financial institutions, United Nations agencies, Commonwealth agencies, and various other multilateral development and humanitarian organisations, such as the International Planned Parenthood Federation and the International Committee of the Red Cross.

Participation in institutions such as the International Development Association, the Asian Development Fund, the United Nations Development Programme, and the Commonwealth Fund for Technical Co-operation gives New Zealand a hand in international efforts to alleviate poverty through development at the global and trans-regional level. These multilateral institutions are especially helpful in directing assistance to regions where New Zealand is not widely represented at the bilateral level.

The new ambassador for Myanmar (Burma), dressed in national costume, arriving at Government House accreditation.

Table 3.1. OFFICIAL DEVELOPMENT ASSISTANCE PROGRAMME ALLOCATIONS, 1991–1992

Bilateral schedule $(000) 
Source: Ministry of External Relations and Trade.
      Cook Islands14 604  
      Niue9 541  
      Western Samoa5 386  
      Tokelau6 522  
      Papua New Guinea5 072  
      Fiji4 666  
      Tonga5 184  
      Other Pacific Island Countries11 127  
      South Pacific Regional Programmes9 937       
            Subtotal  72 042
ASEAN countries  8 013
Other country programmes  3 946
Relief operations, voluntary agencies, etc.12 788  
Education and training27 311  
Adjustment52       
            Subtotal  52 058
            Total bilateral schedule  124 045
Multilateral schedule
      Commonwealth agencies  1 479
      United Nations agencies  5 731
      International financial institutions  14 725
      Other organisations  830
            Total multilateral schedule  22 766
Supplementary estimates and transfers  193
            Total official development assistance  147 004

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 (UN) 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 1991–92 New Zealand strengthened its firm commitment to UN peacekeeping by increasing the number of its personnel involved in peacekeeping operations. By the middle of 1992, New Zealand had over 120 personnel serving in the Middle East (UNTSO and UNSCOM), Angola (UNAVEM11), Cambodia (UNTAC) and Yugoslavia (UNPROFOR). In addition to the provision of personnel New Zealand, as a United Nations member, is legally obliged to contribute financially to the cost of UN peacekeeping operations. In 1991–92 New Zealand's share of these costs amounted to $12.09 million.

Humanitarian Relief. New Zealand contributed over $8.9 million to humanitarian relief work in 1991–1992 with $6.9 million going to relieve the destruction and hardship caused by Cyclone Val which struck Western Samoa in December 1991.

Support worth $100,000 was provided to the United Nations Border Relief Operation to assist Cambodian refugees located in camps on the Thai border and another $200,000 was given to various UN relief agencies for work inside Cambodia. The Government also contributed $600,000 to the work of the United Nations High Commissioner for Refugees (UNHCR) in 1991–1992, half for core budget activities and half for general relief work. Other contributions were made to specific UNHCR programmes in the Middle East and Indochina. 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. During 1991–92 New Zealand contributed, to 15 UN agencies, a total of $6.83 million.

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 $300,000. Additional contributions were made to China and Cambodia for flood relief, to the Philippines for typhoon relief and to the International Committee of the Red Cross for relief work in the former Yugoslavia.

In May the Government also provided assistance ($250,000) to Save the Children Fund for its operations in Somalia and in July for Southern Africa drought relief ($250,000).

Human rights. Human rights issues, including United Nations measures to eliminate torture, discrimination against women, and racism and racial discrimination, remain an important concern. New Zealand campaigned successfully for the election in 1992 of the Chief District Court Judge, Dame Silvia Cartwright, to a four-year term on the UN Committee which monitors the implementation of the Convention on the Elimination of All Forms of Discrimination Against Women. New Zealand increased its financial support of the UN's voluntary funds to promote and protect human rights, contributing to the separate funds to assist victims of torture, for advisory services, and for indigenous populations.

School children with their coin trail, raising money for Somalia's starving people, Trentham.

New Zealand also gave strong support to Commonwealth efforts in the field of human rights. The Commonwealth Heads of Government meeting in Harare in October 1991 adopted the Harare Declaration which accords priority to human rights, and reaffirmed the Commonwealth's commitment to equality for women through its Plan of Action for Women and Development. In addition, New Zealand made a financial contribution to the operations of the Commonwealth Secretariat's Human Rights Unit in 1991. New Zealand's Human Rights Commission provided a representative to attend a Commonwealth Human Rights Workshop to design training programmes for public servants which was held in Western Samoa in July 1992.

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 is involved in preparations for the second World Conference on Human Rights, planned for June 1993 in Vienna, and has contributed to a voluntary fund in order to assist South Pacific countries which have UN Least Developed Status to attend the Vienna meeting.

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 1991 New Zealand's assessed contribution rate was again set at 0.24 percent of the regular budget, resulting in annual dues of $4.1 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 103 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 has been held, with the aim of reducing obstacles to trade and refining 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. New Zealand's main priority continues to 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, in which New Zealand is an active participant, is working to that end.

The Uruguay Round was scheduled to have been completed 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 regime for agriculture.

The main negotiating groups engaged afresh in further talks throughout 1991. Finally, last December GATT Director-General Arthur Dunkel tabled his own “Draft Final Act”. This 400-page document remains the basis of ongoing work towards a settlement of the Uruguay Round. Agriculture remains one of the principal areas to be resolved; indeed, the success of the Uruguay Round, New Zealand's top foreign policy objective, hangs on resolution in this area.

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 1991–1992.

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 currently lends about US$15 billion a year at market rates to developing countries with relatively high per capita income. The IDA provides interest-free loans worth about US$5 billion a year 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. 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 joined the World Bank in 1961 when higher income countries with active development programmes were eligible for IBRD loans. Between 1963 and 1971 New Zealand borrowed US$102 million to finance projects such as the Cook Strait transmission cable, the Marsden ‘A’ power station and the purchase of the ferry Aranui.

New Zealand has subscribed to a total of 5966 shares in the IBRD, which represents 0.47 percent of the total voting share. The shares have a total par value of US$720 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 US$75.3 million to IDA through periodic replenishments of its fund. New Zealand owns 2025 fully paid shares in the IFC which have a total par value of US$2,025 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 32 developing member countries in the Asia-Pacific region. It has 36 member countries in the Asia-Pacific region and 16 member countries in Europe and North America.

New Zealand currently holds 35 214 shares, which make up about 2 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. The Government decided in 1991 that New Zealand should contribute NZ$18.98 million to the latest replenishment of the fund. That amounted to a 2.7 percent share of the total replenishment. It will be paid over a four year period from 1992.

Commonwealth

The 50 members of the Commonwealth include countries in the six continents and the five oceans of the world. Two of the smallest member countries 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 1991–1992. New Zealand also takes part in the Commonwealth Scholarship and Fellowship Plan, contributing about $705,000 in 1991–1992. Contributions are made to a range of other intergovernmental Commonwealth co-operative programmes, including, in 1991–1992, $50,000 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, Commonwealth Telecommunications Organisation and the Commonwealth Agricultural Bureau. 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 Europe and the newly independent states of the former Soviet Union. 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 development co-operation 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 has included work on protectionism in agricultural trade (initiated by New Zealand), subsidies and trade in services. A new focus of attention is work on the ‘New Generation’ issues of trade and the environment, trade and competition, trade and foreign direct investment and trade and technological developments.

New Zealand is also a member of the International Energy Agency (IEA), an autonomous body of 23 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 Glasgow, Scotland, in June/July 1992.

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 1577 in 1991.

Administrative responsibility for Tokelau lies with the Administrator, Mr Brian Absolum. 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. Visiting missions from the UN Special Committee on Decolonisation have been advised by the people that they do not, for the time being, wish to review the existing ties between New Zealand and Tokelau. In a statement to the UN Special Committee in June 1992, Tokelau indicated that while it wishes to preserve the benefits of its current relationship with New Zealand, it is exploring ways of achieving greater political and administrative autonomy. New Zealand takes steps to ensure that the Tokelau public service meets Tokelau's administrative, social, economic and development requirements. The public service numbered 195 at 30 June 1991.

New Zealand provided $4.3 million of budgetary aid in the year ended 30 June 1991. 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 40 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.

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 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.

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 exernal 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.

Operation FRESCO. From December 1990 to April 1991 an RNZAF detachment consisting of 69 personnel and two Hercules aircraft was deployed to Riyadh Saudi Arabia as the New Zealand contribution to Desert Storm. While in theatre, the aircraft flew a total of 699 hours on strategic support missions.

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 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 were 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.

United Nations Protection Force Yugoslavia (UNPROFOR). In March 1992 the Government agreed to contribute observers to UNPROFOR. The New Zealand observer force consists of six officers; one Navy, two Air Force and three Army. The New Zealand officers are expected to serve in Yugoslavia for nine to 12 months.

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 contributes a 5-person Army Medical Team who provide pre-deployment training in nuclear, biological and chemical warfare protection and on-site medical coverage to the various inspection teams. New Zealand Defence Force also contributes two clerks to the UNSCOM Chemical Destruction Group (CDG). They are based in Bahrain but operate from Baghdad. The clerks compile the data relating to the destruction of the chemical weapons.

United Nations Transitional Authority in Cambodia (UNTAC). 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 25 New Zealand Army personnel. They have sole reponsibility within UNTAC for advising the civilian population in North West Cambodia on land mine awareness and disposal procedures. New Zealand Defence Force also contributes 41 Army personnel as part of the Force Communications Unit to UNTAC, and a 31 strong Naval detachment.

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. It also assists 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. The 1991 RNZAF Antarctic Operation, nicknamed ICE-CUBE, marked the RNZAF's 27th year of operations to the Antarctic. Operation ICE-CUBE continued in 1991 with 12 return flights carrying 198 381 kgs of freight and 279 passengers. The 1992 operation began in November and was scheduled to complete 12 flights.

The RNZAF also stationed two Iroquois helicopters at McMurdo Base from November to December and one Iroquois helicopter from December to January to provide additional air support to the Antarctic programme. In 1991 this operation, nicknamed SNOWBIRD, flew 259 hours, carrying passengers and freight to sustain remote field science parties. All three services provided air cargo handlers at Harewood Airport (Christchurch) and McMurdo Base during the summer season, and specialist personnel supported the New Zealand Antarctic Research Programme at both Scott and McMurdo bases. The New Zealand Army will contribute 22 personnel for the 1992–1993 season.

Exercises. STARFISH 91 and 92, attended by the Navy, the Air Force and IADS, an integrated air defence exercise, were conducted under the auspices of the Five Power Defence Arrangements.

The RNZAF regularly participates in VANGUARD, operating in support of the Five Power Defence Arrangements out of Singapore; FINCASTLE, an anti-submarine warfare competition between Australia, New Zealand, Canada and the United Kingdom (won by the RNZAF in 1992); BULLSEYE a tactical transport competition between Australia, New Zealand and Canada (also won by the RNZAF in 1992); and HELIMEET a series of helicopter competitions flown by most European nations and Australia, New Zealand and Canada.

Commemorations. In August 1992 a 51-man tri-service guard attended the commemoration of the Battle of Guadalcanal. In October 1992 a 12-man guard and 100 veterans of the North African campaign, including Charles Upham VC and Bar, attended the 50th anniversary commemoration of the Battle of El Alamein.

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 1991 Monowai carried out 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 Orion aircraft. Surveillance patrols include fishery protection tasks, after which all information is passed to the Ministry of Agriculture and Fisheries. The RNZAF flew 352.6 hours in 1991 in the maritime surveillance role.

Wellington women taking part in the US Veterans' Parade.

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 1991 the RNZAF flew 261.8 hours in 50 search and rescues. As well as search and rescue the RNZAF also flies emergency medical evacuation throughout New Zealand and the South Pacific comprising 21 flights in 1991. The Army routinely assists search and rescue operations when required.

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, and are supported by the Navy League, Air Cadet League, Returned Servicemens' Association, Army Association and schools.

As at 30 September 1992, there were a total 98 cadet units (18 Sea Cadet, 50 Air Training Corps and 30 Cadet Corps units). Cadet Forces strength at the same date was 406 officers and 4142 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 July 1992 in response to a request from the Ministry of Agriculture and Fisheries, the RNZAF provided assistance to operation SNOWRAKE. Approximately 182 Iroquois hours were flown in North Canterbury and Fairlie to provide relief assistance for stranded stock.

Disaster relief

In April 1991 the RNZAF flew relief aid to Turkey and Iran for Kurdish refugees who had fled Iraq after the Gulf war. Two flights were conducted, one to northern Iran and a second to Eastern Turkey. In May 1991 the RNZAF also undertook a relief flight to Bangladesh in the wake of a cyclone that had ravaged the country.

In December 1991 a major relief operation was undertaken to Western Samoa as a result of cyclone Val. Eight Hercules flights carrying relief supplies were flown between New Zealand and Western Samoa. One helicopter was also deployed to Western Samoa to help distribute the relief supplies. A total of 166.4 flying hours were flown by the Hercules and Iroquois during this operation.

In January 1992 after cyclone Betsy caused damage to Vanuatu, an Andover was deployed to assist with relief operations in that country. A total of 23.8 Andover hours were flown distributing relief supplies throughout Vanuatu during this operation.

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
19921993
Source: Ministry of Defence.
 $(000)
Operating expenses862,946828,144
Purchase of fixed assets147,816204,296
GST outputs to Crown186,188176,479
Payments on behalf of Crown195,373214,194
            Sub-total1,392,3231,423,113
Less
      Sale of fixed assets5045
      Supply of outputs to other parties27,58524,905
      Receipts on behalf of Crown101,357153,549
            Sub-total128,992178,499
Total net expenditure1,263,3311,244,614

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.

Figure 3.2. DEFENCE FORCE LOCATIONS

Wellington
Southland
Waikato
Canterbury
11th Frigate Squadron.Fleet tanker Endeavour  Survey ship Monowai  Research ship Tui  Patrol craftHawea
Taupo
Rotoiti
Pukaki
First New Zealand Patrol
Craft Squadron.Inshore survey craftTakapu
Tarapunga
  RNZNVR inshore patrol craftMoa
Kiwi
Wakakura
Hinau
Second New Zealand Patrol Craft Squadron.Diving support vessel Manawanui  Training tender Kahu  Dockyard service craft Arataki  

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.

Table 3.6. STRENGTH OF THE NAVY

CategoryAt 31 March
1989199019911992
Source: Ministry of Defence.
Regular forces
      Officers (male and female)377384393429
      Ratings (male and female)2 1982 0832 1732 117
            Total2 5752 4672 5652 546
Non-regular forces
      Royal New Zealand Naval Reserve (officers)1111
      Royal New Zealand Naval Volunteer Reserve (all ranks)508497498512
      Emergency list of Officers of the Naval Reserves84....27
      Royal New Zealand Naval Fleet Reserve (ratings)703......
            Total1 296498499540

Heaving on a line aboard the survey ship HMNZS Monowai. Women have been going to sea in non-combatant ships of the Royal New Zealand Navy since February 1987.

Royal New Zealand Naval Volunteer Reserve—There is a division of the Royal New Zealand Naval Volunteer Reserve in each of the four main centres where reservists are given basic naval training.

New Zealand Army

The Army comprises regular, territorial, and reserve elements and is structured to provide the following operational options:

  1. A Ready Reaction Force based on an infantry battalion group consisting of Regular Force personnel.

  2. 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.

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 two operational components of the Army, namely: the Ready Reaction Force, and the Force troops.

  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: New Zealand Defence Force.
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
1989199019911992

* Class A and class B reserves.

Source: New Zealand Defence Force.

Regular forces
      Officers (male and female)814752662677
      Other ranks (male and female)4 9044 4284 2264 135
            Total5 7185 1804 8884 812
Non-regular forces
      Territorial Force (all ranks)6 0505 6275 1384 578
      Officers Reserve120119122141
      Other ranks*1 2221 3291 5301 787
            Total7 3927 0756 7906 506

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. 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 role Aircraft Location
Source: New Zealand Defence Force.
Maritime6 Orions
2 Boeing 727s
9 Andovers
5 Hercules
RNZAF Base
Auckland
Helicopters10 Iroquois
7 Wasps (operated by RNZN)
  
Attack/close Air support20 skyhawks (including 6 based at NAS Nowra, NSA)RNZAF Base Ohakea
Advanced flying training and attack transition training 9 Strikemasters
9 Aermacchi
  
Flying training4 Air tourers
14 Air trainers
5 Sioux helicopters
RNZAF Base Wigram
Helicopter support 4 Iroquois  

Table 3.1. STRENGTH OF THE AIR FORCE

CategoryAt 31 March
1989199019911992
Source: New Zealand Defence Force.
Regular forces
      Officers (male and female)542643654634
      Airmen and airwomen3 5303 4223 4253 223
            Total4 0724 0654 0793 857
Non-regular forces
      Territorial Air Force224227237219
      Active Reserve902696948
      General Reserve203156134120
            Total1329452440387

Flying Officer Sarah Nicholson, a navigator in the RNZAF, at work on an Orion.

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 1992, 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 2 months and 21 days. The method of interception used was listening devices.

Table 3.11. EXPENDITURE ON SECURITY INTELLIGENCE SERVICE

Year ended 31 MarchGross expenditureIncrease over previous year

* Year ended 30 June.

Source: Security Intelligence Service.

 $(000)percent
1,9889,43324
1,9899,7754
1,99010,1974
1,99110,2661
1992*10,4702

Contributors

  • 3.1–33 Ministry of External Relations and Trade.

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

Special articles

Ministry of Defence; Ministry of External Relations and Trade.

Further information

Diplomatic List. Diplomatic and Consular Representatives in New Zealand. Ministry of External Relations and Trade (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 External Relations and Trade.

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).

New Zealand External Relations and Trade Record. Ministry of External Relations and Trade (Monthly except January).

Chapter 4. Population

One year old's birthday party, 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 historic 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 03076 02316.605.10
1886, 28 March620 45186 42116.183.07
1891, 5 April668 65148 2007.771.49
1896, 12 April743 21474 56311.152.13
1901, 31 March815 86272 6489.771.89
1906, 29 April936 309120 44714.762.75
1911, 2 April1 058 312122 00313.032.52
1916, 15 October1 149 22590 9138.591.50
1921, 17 April1 271 668122 44310.652.27
1926, 20 April1 408 139136 47110.732.06
1936, 24 March1 573 812165 67311.771.13
1945, 25 September1 702 330128 5188.170.83
1951, 17 April1 939 472237 14213.932.37
1956, 17 April2 174 062234 59012.102.31
1961, 18 April2 414 984240 92211.082.12
1966, 22 March2 676 919261 93510.852.11
1971, 23 March2 862 631185 7126.941.35
1976, 23 March3 129 383266 7529.321.80
1981, 24 March3 175 73746 3541.480.29
1986, 4 March3 307 084131 3474.140.82
1991, 5 March3 434 950127 8663.870.77

Table 4.2. POPULATION, 1939–1991

YearTotal population at 31 DecemberMean population for year ended 31 December
R Revised.
1,9391 641 600  1 628 500  
1,9401 633 600  1 637 300  
1,9411 631 200  1 630 900  
1,9421 636 400  1 639 500  
1,9431 642 000  1 635 600  
1,9441 676 300  1 655 800  
1,9451 727 800  1 694 700  
1,9461 781 200  1 759 600  
1,9471 817 500  1 798 300  
1,9481 853 900  1 834 700  
1,9491 892 100  1 871 700  
1,9501 927 700  1 909 100  
1,9511 970 500  1 947 600  
1,9522 024 600  1 996 200  
1,9532 074 700  2 048 800  
1,9542 118 400  2 094 900  
1,9552 164 800  2 139 000  
1,9562 209 200  2 182 800  
1,9572 262 800  2 232 500  
1,9582 316 000  2 285 800  
1,9592 359 700  2 334 600  
1,9602 403 600  2 377 000  
1,9612 461 300  2 426 700  
1,9622 515 800  2 484 900  
1,9632 566 900  2 536 900  
1,9642 617 000  2 589 100  
1,9652 663 800  2 635 300  
1,9662 711 300  2 682 600  
1,9672 745 000  2 727 700  
1,9682 773 000  2 753 500  
1,9692 804 000  2 780 100  
1,9702 852 100  2 819 600  
1,9712 898 500  2 864 200  
1,9722 959 700  2 915 600  
1,9733 024 900  2 977 100  
1,9743 091 900  3 041 800  
1,9753 143 700  3 100 100  
1,9763 163 400  3 131 800  
1,9773 166 400  3 142 600  
1,9783 165 200  3 143 500  
1,9793 163 900  3 137 800  
1,9803 176 400  3 144 000  
1,9813 194 500  3 156 700  
1,9823 226 800  3 180 800  
1,9833 264 800  3 221 700  
1,9843 293 000  3 252 800  
1,9853 303 100  3 271 500  
1,9863 313 500R3 277 000R
1,9873 342 100R3 303 600R
1,9883 345 200R3 317 000R
1,9893 369 800R3 330 200R
1,9903 410 400R3 362 500R
1,9913 449 700  3 406 200  

POPULATION GROWTH

Percentage annual increase

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.

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 Waikato.

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

CensusNorth IslandSouth IslandTotal population
1,9361 018 038555 7741 573 812
1,9451 146 292556 0061 702 298
1,9511 313 869625 6031 939 472
1,9561 497 364676 6982 174 062
1,9611 684 785730 1992 414 984
1,9661 893 326783 5932 676 919
1,9712 051 363811 2682 862 631
1,9762 268 393860 9903 129 383
1,9812 322 989852 7483 175 737
1,9862 441 615865 4693 307 084
1,9912 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 1986–91, 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 Auckland and Bay of Plenty in the North Island and Nelson-Marlborough and Canterbury in the South Island.

Figure 4.1. URBAN DRIFT
Ratio of urban to rural population

91 year old Dorothy Strong presenting a bouquet to Dame Catherine Tizard, Dunedin.

Table 4.7. POPULATION OF TERRITORIAL LOCAL AUTHORITIES

Territorial authority*Census of Population 1986Census of Population 1991Estimated at 31 March 1992

* Boundaries as at 5 March 1991.

† Figures have been rounded. Because of rounding the individual figures do not always sum to the stated totals.

‡ Includes persons on shipboard and the populations of Campbell, Kermadec, Mayor and Motiti Islands (not within city, county or district boundaries).

Cities
      North Shore144 149152 134153 300
      Waitakere122 581136 716139 700
      Auckland301 428315 668316 900
      Manukau206 741226 147229 800
      Hamilton95 388101 448102 500
      Napier52 51251 64551 500
      Palmerston North66 82170 31872 300
      Porirua45 66346 60147 000
      Upper Hutt37 29037 09237 000
      Lower Hutt95 34294 54094 500
      Wellington149 868150 301150 100
      Nelson35 91937 94338 300
      Christchurch286 601292 858293 700
      Dunedin114 349116 577117 100
            Subtotal, cities1 754 6521 829 9881 843 700
Districts
      Far North47 91251 56852 000
      Whangarei62 54262 64462 800
      Kaipara17 20017 32517 350
      Rodney45 88355 78457 700
      Papakura32 76536 55337 200
      Franklin37 32842 19343 300
      Thames-Coromandel21 71525 03725 600
      Hauraki15 90416 92117 150
      Waikato36 47537 55637 800
      Matamata-Piako29 40929 40829 400
      Waipa35 55337 03137 300
      Otorohanga9 2829 2319 230
      South Waikato28 26626 18625 800
      Waitomo10 52210 0749 960
      Taupo29 02730 72130 900
      Western Bay of Plenty26 91230 13730 800
      Tauranga60 19467 33368 700
      Rotorua62 91265 09665 100
      Whakatane31 18532 11232 300
      Kawerau8 3118 1358 110
      Opotiki8 1348 6768 850
      Gisborne45 75844 36144 300
      Wairoa10 68010 37110 350
      Hastings64 37164 69364 800
      antral Hawke's Bay13 05412 59012 550
      New Plymouth66 87867 95168 200
      Stratford10 0869 8469 780
      South Taranaki30 77029 51929 300
      Ruapehu19 46118 10418 050
      Wanganui44 01945 08245 300
      Rangitikei17 69916 67616 450
      Manawatu25 82627 18227 400
      Tararua19 88419 48219 450
      Horowhenua28 85829 47629 600
      Kapiti Coast29 75435 30936 300
      Masterton22 50822 94723 000
      Carterton6 3366 9137 030
      South Wairarapa8 7479 0379 120
      Tasman33 72936 41636 700
      Marlborough34 85436 76537 100
      Kaikoura3 5293 7113 720
      Buller11 15110 94110 950
      Grey14 30013 74213 600
      Westland9 5199 2509 020
      Hurunui9 2809 5699 620
      Waimakariri25 40027 86228 300
      Banks Peninsula7 2327 6397 660
      Selwyn20 52021 35921 500
      Ashburton24 85524 43524 400
      Timaru43 39443 20842 400
      Mackenzie4 8665 0574 220
      Waimate8 2347 7937 740
      Waitaki23 26822 99122 900
      Central Otago16 80515 69615 650
      Queenstown-Lakes12 02415 12314 400
      Clutha19 20118 30318 150
      Southland34 57033 68133 100
      Gore13 87713 59613 550
      Invercargill57 04256 14855 900
            Subtotal, districts1 549 7701 602 5451 608 900
      Chatham Islands County775760760
      Population outside territorial authority areas1 8871 657..
            Total, New Zealand3 307 0843 434 9503 454 900

Table 4.8. POPULATION OF REGIONAL COUNCILS*

RegionCensus of Population 1991Estimated at 31 March 1992Estimated population change 1991–92

* Boundaries as at 5 March 1991.

† Includes Kermadec Islands and oil rigs.

‡ Includes Chatham Islands County and Campbell Island.

North Island  numberpercent
Northland131 620132 3007000.5
Auckland953 980966 30012 3001.3
Waikato338 959341 2002 2000.7
Bay of Plenty208 163210 5002 3001.1
Gisborne44 38744 300−100−0.2
Hawke's Bay139 479139 400−100−0.1
Taranaki107 222107 200----
Manawatu-Wanganui226 616228 8002 2001.0
Wellington402 892404 2001 3000.3
Remainder North Island95100----
            Subtotal, North Island2 553 4132 574 30020 9000.8
South Island
Nelson-Marlborough113 487114 4009000.8
West Coast35 38035 100−300−0.8
Canterbury442 392442 200−200..
Otago186 067185 600−500−0.3
Southland103 442102 500−900−0.9
Remainder South Island769800----
            Subtotal, South Island881 537880 600−900−0.1
            Total, New Zealand3 434 9503 454 90020 0000.6

Figure 4.3. FEMALE AGE DISTRIBUTION
At selected census

The dynamics of the fertility decline or of the current low fertility levels are complex. Increased use of contraceptives, increased participation of women in the labour force, rising divorce rates and general economic conditions have probably all, directly or indirectly, contributed to it. Patterns of marriage and family formation have changed radically, with a shift away from early marriage and childbearing. Early childbearing has given way to delayed parenthood.

Between 1971 and 1986, the first marriage rate for women aged 20–24 years dropped by about two-thirds, from 308 to 112 marriages per 1000 never married women. New Zealand women are now marrying on average, nearly four years later than they did in the early 1970s. The average age at first marriage in 1991 was 25.19 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, 12.9 percent and 8.3 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 1991, 75 percent of all Maori births were classified as ex-nuptial and they accounted for one-quarter of the country's ex-nuptial births. This atypical situation does not necessarily reflect unconventional attitudes of Maori towards childbearing outside wedlock, but arises partly from the fact that Maori customary marriages are not legally recognised.

As far as the overall fertility levels are concerned, the transition in Maori fertility from relatively large to small families is of more recent origin. Their total fertility rate fell from a high of 6.2 births per woman in 1962 to 2.3 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: 1935–1991

Five-year period ending 31 DecemberTotal births*Total deaths*Natural increase*Life expectancy at birthAverage 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 1989–91.

R Revised.

1,935137 976  66 273  71 703  65.46  68.45  57.36
1,940158 953  78 555  80 398  65.43  69.05  58.88
1,945191 243  87 021  104 222  67.17  70.61  60.89
1,950244 456  88 109  156 347  68.29  72.43  63.17
1,955263 191  94 187  169 004  68.88  73.88  64.38
1,960300 089  102 879  197 210  69.17  74.51  65.68
1,965317 280  112 116  205 164  68.67  74.84  65.19
1,970307 547  120 250  187 297  69.09  75.16  65.71
1,975304 377  124 797  179 580  69.37  75.88  66.13
1,980263 134  128 103  135 031  70.76R76.86R68.17
1,985254 640  129 531  125 109  71.38R77.39R69.43
1,990283 868  135 445  148 423  72.42§78.31§69.72
Annual
1,98652 824  27 045  25 779     
1,98755 254  27 419  27 835     
1,98857 546  27 408  30 138     
1,98958 091R27 042  31 049R   
1,99060 153  26 531  33 622     
1,99160 001  24 501  33 500R   

Figure 4.4. BIRTHS TO UNMARRIED MOTHERS

Auckland cemetery.

Figure 4.7. BIRTH AND DEATH RATES
For total population

Dunedin couple, married 60 years.

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 the proportion of 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 12.9 percent in 1991. The third main ethnic group is the Pacific Islanders, who made up around 4.6 percent of the population at the time of the 1991 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.

Figure 4.10. AGE-SEX DISTRIBUTION
Total population at selected years

Pacific Islands Club team participating in tug-o-war at Summer City Festival, Wellington.

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.

While the cultural diversity of New Zealand is—for the greater part—Eurocentric, the range of cultural norms present in New Zealand that have come from non-European sources, along with the existing Maori culture, suggest that New Zealand will proceed into the next century possessing a wide range of different ethnic and cultural values.

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

Figure 4.11. AGE AND SEX OF THE POPULATION, 1991
Total population and ethnic groups

Lolly-scrambling children, Ranfurly.

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.

Projections of New Zealand's working age population (16–64 years) indicate steady growth, from 2.2 million in 1991 to 2.8 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.

0–15843 000965 000947 000886 000928 000
16–642 190 0002 399 0002 631 0002 767 0002 765 000
65+385 000455 000543 000711 000892 000
            Total population3 418 0003 820 0004 120 0004 364 0004 584 000

Contributor

  • 4.1–4.5 Department of Statistics.

Special articles

Age Concern New Zealand Inc.

Further information

Census of Population and Dwellings 1986

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

1987 Electorate Profiles, Series B, Report 27. Department of Statistics.

Labour Force—Part 1, Series C, Report 4. Department of Statistics.

Local Authority Population and Dwelling Statistics, Series A, Report 2. Department of Statistics.

National Summary. Series C, Report 2. Department of Statistics.

Profiles of New Zealanders: Families and Households, Series E. Report 3. Department of Statistics.

Profiles of New Zealanders: The Labour Force. Series E, Report 2. Department of Statistics.

Regional Statistics. Series B, Reports 2–23. Department of Statistics. (Reports for each local government region.)

Regional Summary. Series B, Report 24. Department of Statistics.

Rural Population Statistics. Series A, Report 3. Department of Statistics.

Usually Resident Population, Series B, Report 25. Department of Statistics.

Dwellings, Series C, Report 11. Department of Statistics.

A full list of 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 1985–87. Department of Statistics, 1991.

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

Waka, Wellington Harbour.

5.1 Households

There were 1 177 665 households living in private dwellings in New Zealand at the latest Census of Population and Dwellings, held on 5 March 1991. This was an increase of 89 067, or 8.2 percent, in the number of private households since the 1986 Census.

Table 5.1 describes the number of households by type counted at the 1986 and 1991 censuses. “One family only” households still remain predominant, although the share of households in this category fell from 67.9 percent in 1986 to 65.9 percent in 1991. “One person” households are easily the next most common type, comprising 20 percent of all private households.

Table 5.1. USUAL HOUSEHOLD COMPOSITION

Type1986 Census1991 CensusIntercensal percentage change
NumberPercentage of totalNumberPercentage of total

* Households containing temporary visitors only.

One family only739 46467.9775 55765.94.9
One family plus other persons56 5835.266 3875.617.3
Two or more families (with or without other persons)16 3921.519 8181.720.9
Non-family households64 6235.968 8205.86.5
One-person households203 61918.7235 98620.015.9
Not elsewhere classified*7 9170.711 0970.940.2
            Total1 088 598100.01 177 665100.08.2

Dwellings

The number of dwellings occupied on census night increased from 1 095 747 in 1986 to 1 185 396 in 1991, a rise of 89 649, or 8.2 percent.

Table 5.2 shows that all types of permanent private dwellings increased in number during the 1986–1991 intercensal period. In contrast, there was a 32.1 percent decline in the number of temporary private dwellings and an 8 percent decline in the number of dwellings under construction at the time of the census.

Table 5.2. TYPES OF DWELLINGS

TypeNumber of dwellingsIntercensal percentage change
19861991

* Includes mobile or temporary dwellings within a motor camp.

Occupied dwellings—
      Permanent private dwellings—
            Separate house862 341950 64610.2
            Two houses or flats joined together103 338110 1036.5
            Three or more flats/houses joined together90 98491 1790.2
            Flat/house attached to business or shop8 1909 27913.3
            Bach, crib, hut (not in a work camp)5 9496 87615.6
            Not specified7 2092 385−66.9
                  Total, permanent private dwellings1 078 0051 170 4688.6
      Temporary private dwellings*10 5967 197−32.1
      Total private dwellings1 088 6011 177 6658.2
      Non-private dwellings7 1497 7318.1
                  Total, occupied dwellings1 095 7471 185 3968.2
Unoccupied dwellings—
      Occupants temporarily away31 12834 32810.3
      Empty habitable dwellings35 45443 25122.0
      Holiday residences40 95045 13210.2
                  Total, unoccupied dwellings107 535122 71114.1
Dwellings under construction10 4409 605−8.0

HOUSEHOLD SIZE

Persons per dwelling

The percentage increase in occupied dwellings 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 1991, the average number of occupants per private dwelling was 2.8, compared with 2.9 five years earlier. Table 5.3 shows the decline in the average number of occupants for all dwellings types.

Table 5.3. NUMBER OF OCCUPANTS IN OCCUPIED DWELLINGS

Type1986 Census1991 Census
AggregateAverageAggregateAverage
Permanent private dwellings—
      Separate house2 682 7293.12 828 0043.0
      Two houses or flats joined together215 4182.1220 4342.0
      Three or more flats/houses joined together165 1831.8162 2911.8
      Flat/house attached to business or shop22 4462.724 2252.6
      Bach, crib, hut (not in a work camp)12 2852.114 0732.0
      Not specified18 0512.56 5282.7
            Total, permanent private dwellings3 116 1122.93 255 5582.8
      Temporary private dwellings22 8932.213 3141.9
            Total, private dwellings3 139 0052.93 268 8722.8
      Non-private dwellings168 08123.5166 08021.5
            Total occupied dwellings3 307 0833.03 434 9492.9

Table 5.4 shows the number and distribution of occupied private dwellings by number of occupants on census night in 1986 and 1991. 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 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 5.4. NUMBER OF OCCUPANTS OF PRIVATE DWELLINGS

Number of occupants1986 Census1991 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage
1213 87619.6248 08521.116.0
2332 57430.6375 45331.912.9
3185 51717.0205 55717.510.8
4191 77217.6191 64616.3−0.1
5101 2809.397 3808.3−3.9
638 5473.536 6483.1−4.9
713 8481.312 7711.1−7.8
8 or more11 1871.010 1220.9−9.5
            Total1 088 601100.01 177 665100.08.2

Tenure of dwellings. A comparison of the 1986 and 1991 census data shows changes in the tenure of private dwellings. These can be seen in Table 5.5.

Occupied private dwellings owned without a mortgage increased by 15.5 percent during the intercensal period to reach 396 042 in 1991. This category increased its share of total private dwellings from 31.9 percent to 34.2 percent. There was also an increase (of 1.9 percent) in the number of occupied dwellings owned with a mortgage during this period although the share of total dwellings with this tenure status fell from 41.6 percent in 1986 to 39.4 percent in 1991. The census also reported a 25.6 percent increase in the number of private dwellings provided rent free.

Table 5.5. TENURE OF PRIVATE DWELLINGS

Tenure1986 Census1991 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage
Owned with mortgage447 92141.6456 44739.41.9
Owned without mortgage342 95431.9396 04234.215.5
Rented or leased253 31723.5267 34523.15.5
Provided free31 6862.939 8043.425.6
Not specified12 72318 02441.7
                  Total1 088 601100.01 177 665100.08.2

HOME OWNERSHIP

By ethnic composition

Table 5.6 shows a continued decline in the servicing of the rental housing market by government departments other than the Housing Corporation and local authorities. In contrast to this, dwellings rented or leased from individuals and companies increased by 7.9 percent during the 1986–1991 intercensal period. This remains the most common category, comprising 63.7 percent of rented dwellings in 1991. The share of rented dwellings provided by the Housing Corporation also increased, from 23.2 percent in 1986 to 24.9 percent in 1991.

Table 5.6. CATEGORY OF LANDLORD FOR RENTED OR LEASED PRIVATE DWELLINGS

Category of landlord1986 Census1991 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage
Rented or leased from—
      Private person/company151 31162.5163 24263.77.9
      Housing Corporation56 24723.263 90324.913.6
      Other government departments17 9167.413 4375.2−25.0
      Local authority16 7106.915 5466.1−7.0
      Landlord not specified11 13011 2170.8
Total, rented or leased253 317100.0267 345100.05.5

Maori and Pacific Island households and dwellings

Composition of households. There was a total of 131 853 households in permanent private New Zealand Maori dwellings at the 1991 Census of Population and Dwellings. The corresponding figure for households living in permanent private Pacific Island dwellings was 40 812.

In 1991 a New Zealand Maori dwelling (and, by definition, household) was defined as a dwelling where the occupier, or spouse of the occupier, specified that they belonged to the New Zealand Maori ethnic group. Pacific Island dwellings and households were defined the same way. As a consequence, a dwelling can be classified (and hence counted) as both a New Zealand Maori dwelling and a Pacific Island dwelling.

Table 5.7 shows the usual composition of New Zealand Maori and Pacific Island households at the 1991 Census. A significant feature of this table is that the percentage distribution of Pacific Island households is weighted towards the ‘one family plus other persons’ and ‘two or more families with or without other persons’ categories. Of all Pacific Island households 25.4 percent are in the above categories compared to 16.6 percent of New Zealand Maori households.

Table 5.7. USUAL COMPOSITION OF MAORI AND PACIFIC ISLAND HOUSEHOLDS, 1991 CENSUS*

Household typeNew Zealand MaoriPacific Island
NumberPercentage of totalNumberPercentage of total

* Private dwellings where the “occupier” or “spouse of occupier” is a person of “New Zealand Maori ethnic group” or “Pacific Island ethnic group”.

One family only89 75168.126 17564.1
One family plus other persons15 47411.76 90316.9
Two families (with or without other persons)5 9494.53 1537.7
Three or more families (with or without other persons)4680.43360.8
Non-family households6 3754.81 4013.4
One-person households12 6189.62 1545.3
Not elsewhere classified1 2150.96931.7
            Total131 853100.040 812100.0

Types of dwellings. The 1991 Census distribution of Maori and Pacific Island households by dwelling type is given in Table 5.8. New Zealand Maori households show a greater tendency to five in separate houses than Pacific Island households. The reverse is true for two and three semi-detached houses or flats.

Table 5.8. TYPES OF MAORI AND PACIFIC ISLAND DWELLINGS, 1991 CENSUS*

TypeNew Zealand MaoriPacific Island
NumberPercentage of totalNumberPercentage of total

* Private dwellings where the “occupier” or “spouse of occupier” is a person of “New Zealand Maori ethnic group” or “Pacific Island ethnic group”.

† Calculated in terms of specified cases only.

Occupied permanent private dwellings—
      Separate house107 42181.930 56475.1
      Two houses or flats joined together10 6958.24 43410.9
      Three or more flats (houses) joined together9 5077.25 13912.6
      Flat/house attached to business or shop1 1340.93510.9
      Bach, crib, hut (not in work camp)1 1820.9810.2
      Not specified711...111...
            Total, permanent private dwellings130 65399.140 67799.7
Temporary private dwellings1 2000.91350.3
            Total, private dwellings131 853100.040 812100.0

Number of occupants. The distribution of New Zealand Maori and Pacific Island dwellings by number of occupants at the 1991 census (see Table 5.9) reinforces the patterns evident in the usual composition of households by type for these two ethnic groups. Whereas 54.6 percent of Maori dwellings have three or fewer occupants, only 39.0 percent of Pacific Island dwellings do.

This can be partly explained by the lower average size of Maori families and the tendency for Pacific Island dwellings to house more than one family.

Table 5.9. NUMBER OF OCCUPANTS OF MAORI AND PACIFIC ISLAND DWELLINGS, 1991 CENSUS*

Number of occupantsNew Zealand MaoriPacific Island
DwellingsPercentage of totalDwellingsPercentage of total

* Private dwellings where the “occupier” or “spouse of the occupier” is a person of “New Zealand Maori ethnic group” or “Pacific Island ethnic group”.

† Refers to the number of people residing in a private dwelling on census night.

One13 59910.32 3555.8
Two30 71723.36 37215.6
Three27 64821.07 17917.6
Four26 27419.97 84819.2
Five17 14213.06 52816.0
Six8 7996.74 47011.0
Seven4 0173.02 6376.5
Eight or more3 6602.83 4208.4
            Total131 853100.040 812100.0

Tenure. Patterns of tenure and category of landlord shown in 1991 census data reflect the household income and demographic structures of Maori and Pacific Island ethnic groups. Tables 5.10 and 5.11 show that Pacific Islanders 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 5.5).

For occupier-owned housing, 55.3 percent of Maori dwellings, compared with 47.0 percent of Pacific Island dwellings, were owned with or without a mortgage.

Table 5.1. TENURE OF MAORI AND PACIFIC ISLAND DWELLINGS, 1991 CENSUS*

TenureNew Zealand MaoriPacific Island
DwellingsPercentageDwellingsPercentage

* Private dwellings where the “occupier” or “spouse of occupier” is a person of “New Zealand Maori ethnic group” or “Pacific Island ethnic group”.

† Calculated in terms of specified cases only.

Owned with a mortgage52 46140.415 63038.9
Owned without a mortgage19 29614.93 2678.1
Rented or leased52 37440.320 42450.9
Provided free5 7454.48312.1
Not specified1 977...660...
            Total131 853100.040 812100.0

Table 5.11. CATEGORY OF LANDLORD FOR RENTED OR LEASED PRIVATE DWELLINGS, 1991 CENSUS*

Category of landlordNew Zealand MaoriPacific Island
DwellingsPercentageDwellingsPercentage

* Rented or leased private dwellings where the “occupier” or “spouse of occupier” is a person of ‘New Zealand Maori ethnic group’ or ‘Pacific Island ethnic group’.

† Calculated in terms of specified cases only.

Rented or leased from—
Private person/company24 88249.87 14636.8
Housing Corporation20 10940.211 25058.0
Other government departments3 3036.65883.0
Local authority1 6773.44112.1
Landlord not specified2 406...1 029...
            Total rented or leased52 374100.020 424100.0

Household transport

At the 1991 Census of Population and Dwellings 1 009 086 households, or 87.6 percent of households, had the use of one or more motor vehicles for private transport. This was an increase of 88 590 over the number of private households (920 496) with the use of vehicles at the 1986 Census.

The share of households with two or more vehicles increased from 37.2 percent to 40.9 percent during the intercensal period, while there was a related decline in the percentage of one-vehicle households and households without a vehicle.

Table 5.12. HOUSEHOLD TRANSPORT

Number of motor vehicles*1986 Census1991 CensusIntercensal percentage change
HouseholdsxPercentage of totalHouseholdsPercentage of total

* Includes cars, station-wagons, vans, trucks, and other vehicles used on public roads (excludes motorcycles and scooters). Business vehicles if available for private use are also included.

† Calculated on specified cases only.

0142 59313.4143 23212.40.4
1525 04849.4538 22746.72.5
2302 41528.4356 81431.018.0
369 5256.584 5377.321.6
417 3341.621 4111.923.5
5 or more6 1770.68 0970.731.1
Not specified25 509...25 347...−0.6
            Total1 088 598100.01 177 665100.08.2

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 1991–92 year, 3017 private households (comprising 8215 people) participated in the survey, each household containing an average of 2.72 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 5.13. INCOME DISTRIBUTION OF HOUSEHOLDS 1991–92*

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 12,000Under 230119.8137.10
12,000–15,999230 and under 30789.5262.80
16,000–19,999307 and under 384124.1345.70
20,000–24,999384 and under 47999.7426.50
25,000–31,999479 and under 614113.3544.00
32,000–39,999614 and under 767116.8688.80
40,000–47,999767 and under 921111.9839.70
48,000–57,999921 and under 1,112105.01,008.20
58,000–75,9991,112 and under 1,458113.41,268.40
76,000 or over1,458 or over109.32,063.80
            Total...1 102.9758.70

Table 5.14. AVERAGE WEEKLY EXPENDITURE FOR SELECTED FAMILY TYPES, 1991–92

Expenditure groupYoung*one person householdOlder one person householdYoung couple with no childrenOlder couple with no childrenCouple with one childCouple with two children

* Under 45.

   $   
Food51.6042.1097.8088.40123.00142.00
Housing180.1048.40172.3096.00127.30150.70
Household operations55.4048.5092.1079.2093.90101.70
Apparel12.6010.0028.2019.8032.0037.40
Transport76.0037.40124.50110.00131.90135.40
Other goods59.9026.1080.1057.0087.1092.70
Other services60.9040.70105.9086.20110.20127.50
            Total expenditure496.50253.20700.90536.70705.30787.30
Expenditure groupCouple with three or more childrenOne parent with childrenFamily with othersNon-family householdsAll family types

* Under 45.

   $  
Food150.1083.40155.10117.30100.40
Housing140.1093.60120.60142.50114.90
Household operations88.3062.90102.6081.4078.80
Apparel38.9018.0042.8034.2025.50
Transport116.2070.80135.20128.40101.50
Other goods89.1047.30100.30110.2068.20
Other services125.2055.80109.3096.3088.90
            Total expenditure747.90431.70765.90710.30578.10

Transport of the future.

Table 5.15. AVERAGE WEEKLY HOUSEHOLD EXPENDITURE, 1991–92

Expenditure group and subgroupAverage weekly household expenditure*Percentage of total expenditure

* Averages have been rounded to the nearest 5 cents.

 $percent
Food—
      Fruit7.501.3
      Vegetables8.101.4
      Meat13.302.3
      Poultry3.100.5
      Fish2.100.4
      Farm products, fats, oils13.202.3
      Cereals, cereal products14.402.5
      Sweet products, spreads, beverages11.001.9
      Other foodstuffs8.501.5
      Food consumed in eating places, takeaway foods19.103.3
            Total, food100.4017.4
Housing—
      Rent27.104.7
      Net capital outlay and related expenses−15.10−2.6
      Mortgage payments47.208.2
      Payments to local authorities13.602.4
      Property maintenance goods15.402.7
      Property maintenance services26.404.6
      Housing expenses not elsewhere classified0.30--
            Total, housing114.9019.9
Household operation—
      Domestic fuel and power18.303.2
      Home appliances16.902.9
      Household equipment and utensils2.500.4
      Furniture7.401.3
      Furnishings1.800.3
      Floor coverings2.800.5
      Household textiles4.400.8
      Household supplies6.801.2
      Household services18.003.1
            Total, household operation78.8013.6
Apparel—
      Men's clothing4.800.8
      Women's clothing7.501.3
      Children's clothing1.800.3
      Clothing not otherwise classifiable4.400.8
      Clothing supplies and services2.000.3
      Men's footwear1.000.2
      Women's footwear1.400.2
      Children's footwear0.700.1
      Footwear not otherwise classifiable1.500.3
      Footwear supplies and services0.20--
            Total, apparel25.504.4
Transportation—
      Public transport in N.Z.5.000.9
      Overseas travel24.604.2
      Purchase of road vehicles30.105.2
      Vehicle ownership expenses38.806.7
      Private transport costs n.e.c.3.000.5
            Total, transportation101.5017.6
Other goods—
      Tobacco products8.501.5
      Alcohol14.702.6
      Medical goods3.700.6
      Toiletries and cosmetics4.800.8
      Personal goods4.800.8
      Pets, racehorses and livestock5.901.0
      Publications, stationery and office-type equipment10.801.9
      Leisure and recreational goods9.101.6
      Recreational vehicles3.700.6
      Goods n.e.c.2.300.4
            Total other goods68.2011.8
Other services—
      Health services12.202.1
      Personal services4.300.8
      Educational and tuitional services6.601.2
      Accommodation services3.200.6
      Financial, insurance and legal services15.502.7
      Vocational services1.800.3
      Leisure services10.601.8
      Services n.e.c.2.600.4
      Expenditure n.e.c.11.902.1
      Contributions to savings20.203.5
            Total, other services88.9015.4
            Total, net expenditure578.10100.00
            Number of households surveyed3 017 

Table 5.16. HOUSEHOLD AMENITIES

Amenity in dwellingPercentage of all surveyed households*
1990–911991–92

* Household Expenditure and Income Survey.

Electric range or wall oven94.395.5
Gas, coal or oil-fired range9.88.8
Microwave oven58.062.0
Telephone93.993.6
Clothes-washing machine96.296.2
Clothes dryer60.257.7
Separate refrigerator32.632.2
Refrigerator/freezer combination74.475.0
Separate deep-freeze unit56.355.4
Dishwashing machine22.223.6
Colour television (owned)90.092.1
Monochrome television (owned)11.911.2
Television (rented)7.35.6
No television3.33.0
Subscriber TV decoder (owned)...2.0
Subscriber TV decoder (rented)...0.1
Video recorder (owned)62.065.6
Video recorder (rented)1.50.8
Home computer (mains operated, with keyboard)13.315.9
Portable electric heater83.181.5
Electric heater fixed in place32.0...
Electric night store heater fixed in place...8.4
Other electric heater fixed in place...29.5
Portable gas heater11.413.4
Gas heater fixed in place9.29.3
Open fire30.229.2
Slow-combustion fire31.331.9
Portable kerosene heater3.93.1
Wet-back fire of any kind20.119.5
Central heating of any kind6.04.9
Waterbed17.917.0
Pet dog27.328.8
Pet cat47.048.6

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.

Table 5.17. INDICATORS OF STANDARDS OF LIVING

ItemUnitYearNew ZealandUnited StatesCanadaAustraliaUnited KingdomSwedenJapan

* 1986

† 1987

‡ 1988

§ 1989

1986–87.

Sources: OECD Economic Survey of New Zealand, 1990. OECD in Figure 1992; World Statistics in Brief (UN Statistical Pocketbook) 1992.

Areasq. km (000)1,990270.5§9 372.69 976.17 686.8244.8450.0377.8
Populationmillion1,9903.4251.526.617.157.48.6123.5
Densitypersons per sq. km1,99012.626.82.72.2234.519.0327.0
Vital statistics
      Infant mortality rateper 1000 five births1,9908.39.27.2§8.27.95.64.5§
Life expectancy at birthmale1,99071.972.173.0*73.972.8§74.8§75.9§
 female1,99078.079.079.7*80.078.4§80.6§81.8§
Gross Domestic Product$US billion at current prices and exchange rates1,99141.55,552.2595.9295.51,008.8235.33,338.8
GDP per capita$US at current prices and exchange rates1,99012,65621,44921,41817,28216,98526,65223,822
Average annual volume change%1980–901.92.92.93.22.61.94.2
Employment by sector
      Agriculture%1,99010.62.84.25.62.13.37.2
      Industry%1,99024.626.224.625.429.029.034.1
      Services%1,99064.870.971.269.068.967.558.7
Wages and prices
      Wagesaverage annual percent increase1,9888.92.83.85.38.48.02.9
      pricesover five years to 19881,98811.33.54.27.14.75.91.1
Energy
      Total final energy consumptiontonnes of oil equivalent (million)1,9909.81373.9158.958.7147.032.6298.0
      Total productiontonnes of oil equivalent (million)1,99011.51 630.8274.8158.4205.329.669.0
External trade
      Imports (c.i.f.)$US billion at current prices and exchange rates1,99012.9608.3143.052.0262.768.1307.5
      Exports (f.o.b.)$US billion at current prices and exchange rates1,99012.2528.4144.848.9239.669.1327.6
Sectoral contributions
      Agriculture% of GDP1,9898.62.02.94.1§1.32.92.6
      Industry% of GDP1,98926.729.230.031.030.030.541.5
      Services% of GDP1,98964.768.867.165.068.766.755.9
Health and education
      Doctorsper 1000 of mean population1,9901.9§2.32.2..1.4§3.1§1.6
      Expenditure on health% of GDP1,9907.412.49.07.76.28.86.5
      Expenditure on public education% of GDP1988–895.44.86.84.74.86.64.7
      Television sets in useper 1000 inhabitants1,986358813546472534393585
      Passenger carsper 1000 inhabitants1,989549748613570449462445
Consumers Price Index% change from previous year1,9912.64.25.63.25.89.43.3
Currency (exchange rate)equivalent to $NZ1                    mid-rate as at1 Dec 19921.000.520.660.760.343.5564.27

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 are approved as such and listed annually in the New Zealand Gazette, They may be members of organisations (including non-religious organisations) or other persons residing in a locality. Justices of the Peace are not necessarily marriage celebrants. People under 20 years of age, not being widowed, require the consent of parents or guardian. In case of refusal, the consent of a District Court judge may be sought.

The minimum age for marriage is 16 years; no marriage, however, is deemed to be void by reason only of an infringement of the minimum age.

MARITAL STATUS: Females

Population over 20 years of age

Table 5.18. MARRIAGE RATES

December yearNumber of marriagesMarriage rate
Crude*General

* Per 1000 mean population.

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

1,98724 4437.40R24.96R
1,98823 4857.08R23.41R
1,98922 7336.83R22.18R
1,99023 3416.94R22.19R
1,99123 0656.77  22.33  

Marital status of the population

Table 5.19 shows the usually resident New Zealand male and female populations by marital status and age group at the 1991 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”, “divorced” and “remarried” categories at all ages.

The outcome of these changes during the 1986–91 intercensal period is shown in Table 5.20, 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 1986 and 1991 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.

Wellington Bride of the Year Competition winner (right) and runner-up, best gown winner.

Table 5.19. MARITAL STATUS BY AGE GROUP, 1991 CENSUS*

 Never marriedMarriedRemarriedSeparatedDivorcedWidowedNot specifiedTotal

* Usually resident New Zealand population.

† First marriage.

‡ Includes persons who are still married but permanently separated.

Males
15–19142 692396245139541 749145 002
20–24121 14611 571999722281021 857135 978
25–34110 367125 4035 73313 2847 8813993 741266 814
35–4428 950150 72321 98716 95917 2261 0923 276240 213
45–5411 778112 91719 92910 18813 9772 2472 466173 505
55–649 31293 77114 6465 4278 9945 4992 487140 136
65–746 35767 29910 9922 4154 43410 0712 037103 605
75 and over3 21329 0585 9677651 31115 1741 34756 832
            Total433 818591 14179 374500 5554 09934 64118 9601 262 085
Females
15–19137 0611 3741512918511 3411 39 986
20–24103 61426 1271952 9465371651 536135 117
25–3480 640149 43910 16720 06712 8071 2513 522277 890
35–4419 734151 30523 12119 56623 7093 5372 943243 915
45–547 797110 22317 3949 66917 2268 2472 487173 046
55–646 05184 30311 4094 3809 57020 8742 334138 915
65–746 50155 0208 7901 8365 15743 0352 040122 379
75 and over7 48518 2853 3215941 97463 8161 47696 948
            Total368 880596 06774 40659 18771 001140 97617 6791 328 196
            Total802 7011 187 208153 780109 245125 100175 61436 6392 590 287

MARRIAGE

Annual rates per 1000 mean population

Table 5.2. DISTRIBUTION OF POPULATION BY MARITAL STATUS*

Marital status1986 Census1991 CensusIntercensal increase or decrease
NumberPercentage distributionNumberPercentage distributionNumberPercentage

* Usually resident New Zealand population.

† First marriage.

‡ Includes persons who are still married but permanently separated.

Males
Never married396 87933.3433 81834.936 9399.3
Married609 15051.2591 14147 6−18 009−3.0
Remarried69 4115.879 3746.49 96314.4
Separated41 4273.550 0554.08 62820.8
Divorced42 0543.554 0994.312 04528.6
Widowed31 8032.734 6412.82 8388.9
Not specified19 668 18 960 −708−3.6
            Total1 210 389100.01 262 085100.051 6964.3
Females
Never married324 63326.2368 88028.144 24713.6
Married613 70149.5596 06745.5−17 634−2.9
Remarried66 1265.374 4065.78 28012.5
Separated48 1323.959 1874.511 05523.0
Divorced54 7984.471 0015.416 20330.0
Widowed132 51610.7140 97610.88 4606.4
Not specified18 006 17 679 −327−1.8
            Total1 257 912100.01 328 196100.070 2845.6

Table 5.21 shows the female and male populations living in de facto relationships, by age group, irrespective of marital status. The term ‘de facto’ relates to an arrangement where two persons who are not legally married to each other live together in a relationship as a couple.

At the 1991 Census 161 856 people were living in de facto relationships, an increase of 46 828, or 40.7 percent since 1986. Of the people in this category, 81.4 percent of males and 81.0 percent of females were between the ages of 20 and 44 years. The age group with the highest number of de facto relationships is clearly the 25 to 34 year old group.

Table 5.21. DE FACTO RELATIONSHIPS*

Age group (years)1986 Census1991 CensusIntercensal increase or decrease
NumberPercentage distributionNumberPercentage distributionNumberPercentage

* Usually resident New Zealand population.

Males
15–191 8993.32 5623.266334.9
20–2413 12522.816 26020.13 13523.9
25–3422 30538.832 73940.410 43446.8
35–4411 57120.116 95920.95 38846.6
45–545 3889.48 0619.92 67349.6
55–642 4454.23 2674.082233.6
65–746421.19991.235755.6
75 and over1710.32670.39656.1
            Total57 549100.081 111100.023 56240.9
Females
15–195 79610.16 8618.51.06518.4
20–2416 77329.221 50726.64 73428.2
25–3419 82134.529 51736.69 69648.9
35–449 55216.614 37917 84 82750.5
45–543 8016.66 0547.52 25359.3
55–641 2302.11 6682.143835.6
65–744020.75850.718345.5
75 and over1080.21800.27266.7
            Total57 480100.080 745100.023 26540.5

Age at marriage

In 1991, one bride in every 22 was under 20 years of age. Bridegrooms were usually older than their brides; only one in every 102 was under 20 years of age. Of the people married in 1991, 1260 or 2.7 percent were under 20 years of age; 13 378 or 29.0 percent were aged 20–24 years; 14 103 or 30.6 percent were 25–29 years; 10 928 or 23.7 percent were 30–39 years; and 6461 or 14.0 percent were 40 years of age and over.

MARITAL STATUS: Males

Population over 20 years of age

Table 5.22. AGES OF PERSONS MARRIED, 1991

Age of bridegroom, in yearsAge of bride, in yearsTotal bridegrooms
Under 2020–2425–2930–3435–3940–4445 and over
Under 201189311211226
20–246043 63579114930785 224
25–292493 2813 13165415148117 525
30–34508661 8021 16031066234 277
35–397187534659396137591 979
40–443451903163112801521 297
45 and over3471192043295181 3172 537
            Total brides1 0348 1546 5783 1441 5281 0571 57023 065

Table 5.23 gives the average ages at marriage for the seven years to 1991, and these point to a steady trend toward later marriages. New Zealand men and women marrying for the first time in 1991 were on average 1.2 years older than their counterparts in 1985. Also, with an average age of 25.2 years at first marriage brides in 1991 were 2.2 years younger than their grooms (average age 27.4 years).

Table 5.23. MEAN AGE OF PERSONS MARRIED

YearBridegroomsBrides
BachelorsDivorcedWidowersSpinstersDivorcedWidows
age in years
1,98526.4040.1559.6924.0336.3952.34
1,98626.5740.7059.3224.3236.9652.39
1,98726.8940.9159.3224.6637.3152.36
1,98827.2140.9059.6624.9237.1353.31
1,98926.9140.7259.5524.6937.2952.27
1,99027.2241.1358.5524.9037.2152.80
1,99127.4341.3159.4425.1937.4452.22

AGE AT MARRIAGE

Average age at first marriage for males and females

Marriage guidance

Marriage Guidance New Zealand (MGNZ) has 30 local offices throughout New Zealand. Each one is chartered to the national organisation. The counselling and education work of Marriage Guidance is funded largely through a fee for service contract with the Department of Social Welfare. MGNZ aims to develop positive relationships between partners and with families whether or not they live together. Counselling referrals come from the Family Court, Department of Social Welfare, other professionals and social service agenices. About 46 percent of clients self-refer. Education programmes are conducted by Marriage Guidance tutors who organise courses 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 agency established two years ago and provides quality counselling services to whanau, hapu, iwi and Maori communities. A bi-cultural relationship exists between Te Korowai Aroha—Aotearoa and Marriage Guidance New Zealand (MGNZ).

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—Aotearoa to ensure that the delivery service is true to the kaupapa, which is to maintain the mana, mauri and dignity of tauira (individual) and whanau (family).

Funding to Te Korowai Aroha—Aotearoa is by way of an annual grant from MGNZ and other funding agencies, (e.g., Lottery Grants Board).

There are 10 iwi whanau established in Aotearoa. They are: Nga Puhi, Waikato, Hauraki, Tauranga Moana, Te Arawa, Ngati Awa, Tairawhiti, Whanau a Apanui, Te Whanganui a Orotu and Whanganui. Each iwi whanau is affiliated to Te Korowai Aroha—Aotearoa, however, they are autonomous entities.

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 determining 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 Act 1992 introduced a new regime for assessing non-custodial parental support of children. It replaces, from 1 July 1992, the Liable Parent Contribution Scheme which was contained in the Social Security Act 1964 and administered by the Department of Social Welfare. It also replaces court-based maintenance orders in respect of children, contained in the Family Proceedings Act 1980.

Under the Act, the Inland Revenue Department (Child Support Agency) is designated the role of administering the new regime. It asseses the amount of child support to be paid by parents according to a specific formula and collects and pays 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 collects and pays 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 5.24. DISSOLUTION ORDERS GRANTED

Ground or evidence presented198919901991
Applications filed for dissolution of marriage8 5559 0369 140
Evidence of irreconcilable breakdown—
      Separation order538494447
      Written separation agreement3 5083 5963 704
      Verbal separation agreement3 0913 4993 576
      Lived apart, no agreement or order1 4111 4421 413
            Total, irreconcilable breakdown8 5489 0319 140
      Other dissolution orders75
            Total, dissolution orders8 5559 0369 140

Figure 5.1. MARRIAGE AND DIVORCE

Journalist, Sandra Coney.

Table 5.25. DURATION OF MARRIAGES ENDING IN DISSOLUTION BY AGES OF HUSBANDS AND WIVES AT MARRIAGE, 1991

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 53043238115381561101 243
 5–9761,0906963371741071392 619
10–141117363611678444651 595
15–19160815258884822251 416
20 and over2141 3554881212921392 267
            Total5914 4552 1848664162503789 140
Wives (all petitions and applications)
Under 51325872461067836581 243
  5–94091 28145120712460872 619
10–144496912261145918381 595
15–19549629128493412151 416
20 and over8661 142161362210302 267
            Total2 4054 3301 2125123171362289 140

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, age, 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, the Privacy 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, 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 Commission Act.

Chief Human Rights Commissioner, Margaret Mulgan.

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.

Kay Robertson, recipient of the Paul Harris Fellow Medal for providing inspiration to other disabled people.

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 affect 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.

Attendees at 1979 United Women's Convention.

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 workforce. 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.

The Equal Employment Opportunities (EEO) Trust was established in 1991 by the Government and the private sector, with initial funding from 30 foundation member companies and the Government. The trust is a membership-based organisation and aims to promote to New Zealand employers the implmentation of EEO principles and EEO best practice in the workplace as a means of improving their effectiveness, efficiency and competitiveness through the successful management of diversity.

The trust will commission, monitor and evaluate research on EEO progress in New Zealand. The trust is staffed by an executive director and administrator who are based in Auckland and has a board of trustees with public and private sector representatives. The EEO trust liaises closely with individuals and groups with expertise and interest in EEO, including designated group networks, employers’ associations, EEO Practitioners’ Association, State Services Association EEO Unit and the Human Rights Commission.

The trust has compiled a national database of EEO resources. This contains not only computerised listings of materials such as booklets, videos, training programmes and other resources, but listings of human resources such as cultural advisors, EEO specialists and consultants, people with specific expertise in designated group issues, etc. This database was funded through the Government's contestable EEO fund which also funded a kit the trust is producing. This kit is an introduction to EEO for employers with little experience in EEO implementation in the workplace.

Valuing unpaid work. The Department of Statistics, with the sponsorship of nine other government agencies, conducted a pilot time use survey in August 1990. Data from this survey has been used to produce some indicative estimates of the value of unpaid work in New Zealand. 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. Depending on the valuation method used, unpaid work is estimated to have a market valuation of between 30 and 68 percent of Gross Domestic Product (GDP). About 90 percent of total unpaid work is performed in the home, the remaining 10 percent being formal or informal community work. Women perform about two-thirds of unpaid work done as a main activity.

Violence and pornography. In the 1991–92 financial year, 54 women's refuges received $2.87 million and 62 rape/sexual abuse support services received $1.40 million from the Department of Social Welfare's programmes for services for victims of violence against women.

In October 1990 the Minister of Justice released 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.

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

The aim of the national cervical screening programme is to reduce the incidence of, and death rate associated with, cervical cancer. The initial focus of the programme is on those women who have never had a smear or who have not had a smear in more than three years. Strategies have been developed to reach women in those priority groups whose members are identified as having lower screening coverage and higher rates of cervical cancer. These include women 35 years and over, Maori women and Pacific Island women.

Over the period 1989–1992, the national cervical screening programme has: developed a national policy on cervical screening; treatment protocols for the management of abnormal smears; training guidelines and standards of competency for smeartakers; established a national cytology register; a national media campaign; and monitored waiting times for colposcopy services.

Area health boards are currently responsible for implementing screening services and maintaining the national cytology register in their regions. Provision of screening services will become the responsibility of Regional Health Authorities at 1 July 1993.

The Health Reforms Bill 1992 contains legislation to change the National Cytology Register to a voluntary opt-off register. This change has the support of a broad number of health professional and womens groups and is designed to improve the population coverage of the national cervical screening programme.

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.

Maori women. Examples of issues of concern to Maori women during 1992 included:

Putea pounamu—The Putea Pounamu project, initiated by Te Ohu Whakatupu to encourage Maori women to participate in local, regional and national decision-making, has resulted in 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.

He Take Toro Haere (A Directory of Maori Business and Professional Women)—the directory features listings and advertising with the business contact details, owner's names, positions and tribal affiliations. The directory also features an article on Maori women in business, information on sources of advice and finance, and a list of Ministry of Women's Affairs publications and resource materials for Maori women in business/enterprise.

This publication represents another milestone in the work programme of Te Ohu Whakatupu that relates to the participation of, and the enhancement of, supports in place for Maori women in business. Te Ohu Whakatupu intends that the directory lift the public profile of Maori women in the community and nationally. Te Ohu Whakatupu's work serves merely to enhance the initiative and drive that Maori women widely display.

Wahine Pakari Programme—the Wahine Pakari programme was implemented by Te Ohu Whakatupu in 1990–91 when 27 Maori women were selected and trained as trainer-motivators in self development, business management and entrepreneurial skills. Funding was secured to enable the trainer-motivators to implement training in Wahine Pakari skills for 200 Maori women in 1991–92. However, this objective was surpassed when 23 of the trainer-motivators implemented 48 courses to train over 615 Maori women.

A successful proposal was made to Te Puni Kokiri (Ministry of Maori Development) to fund a second trainer-motivator course and the continuation of training in Wahine Pakari skills for a further 400 Maori women in 1992–93. The Maori Women's Development Fund was appointed as an umbrella group and received the funds secured for the Wahine Pakari project. A project manager to oversee the implementation of the programme has been appointed and will be responsible for liaison between the relevant departments, including the Ministry of Women's Affairs which has taken on an advisory role for 1992–93.

Religious profession

The 1991 Census of Population and Dwellings showed a continued decline in the percentage of the resident population identifying with the four traditional major religious denominations: Anglican, Presbyterian, Catholic and Methodist. From 69.1 percent at the 1976 Census the share of the population in these categories fell to 63.6 percent at the 1986 Census and then to 57.6 percent at the 1991 Census. Of the four, Catholic was the only denomination that increased in numbers between the 1986 and 1991 censuses.

Some of the 70 “international” Sisters of Compassion before beginning a pilgrimage up the Wanganui River retracing the steps of their founder, Mother Mary Joseph Aubert. The sisters’ week-long journey involved walking, canoeing and riding horses.

MAJOR RELIGIONS

Stated religious beliefs

Of the religions or religious denominations with an adherence of 20 000 or more, the fastest growing were “Mormon” with an intercensal increase of 29.3 percent, and “Ratana” with an intercensal increase of 19.8 percent. The number of people classifying themselves only as “Christian” also increased by a significant 72.4 percent. Table 5.26 also shows a considerable increase in the number of people classifying themselves as “Hindu” or “Buddhist”, both categories having doubled since 1986.

A significant trend apparent in Table 5.26 is the continued increase in the number of people reporting themselves as having no religion. This group increased from 533 766 in 1986 to 666 609 in 1991, a rise of 132 843, or 24.9 percent.

Table 5.26. RELIGIOUS PROFESSIONS*

Religious profession1986 Census1991 CensusIntercensal percentage change
NumberPercentageNumberPercentage

* Usually resident New Zealand population.

Anglican791 89824.7732 04822.1−7.6
Presbyterian587 67618.3540 67516.3−8.0
Catholic496 38915.5498 61215.00.4
Methodist153 2494.8138 7054.2−9.5
Christian n.o.d.45 3541.478 1952.472.4
Baptist68 0162.170 1552.13.1
Mormon (Latter Day Saints)37 1431.248 0091.429.3
Ratana39 7291.247 5951.419.8
Brethren19 7550.620 3370.62.9
Salvation Army16 8210.519 9920.618.9
Jehovah's Witness16 3770.519 1820.617.1
Pentecostal15 7140.518 7650.619.4
Hindu8 1480.317 6610.5116.8
Assemblies of God14 9220.517 2260.515.4
Seventh Day Adventist12 0480.413 0050.47.9
Buddhist6 5160.212 7650.495.9
Other specified96 1923.0106 3923.210.6
No religion533 79016.7666 60920.124.9
Object244 8637.625 17097.62.8
Not specified58 68656 289−4.1
            Total3 263 286100.03 373 926100.03.4

Ethnicity

The 1991 Census of Population and Dwellings asked respondents to identify which ethnic group or groups they belonged to, on a self-determination basis. The question was intended to provide information on a person's cultural affiliation rather than their racial descent, which was the case at the 1981 Census.

Although the ethnic question included in the 1986 Census asked respondents to indicate their “Ethnic origin” rather than their “Ethnic Group”, the ethnic data from the 1986 and 1991 Censuses is generally comparable.

Responses from the 1991 Census have been coded and tabulated using the recently completed New Zealand Standard Classification of Ethnicity (NZSCE).

Table 5.27. NEW ZEALAND'S ETHNIC GROUPS

Ethnic group1986 Census1991 CensusIntercensal percentage change
NumberPercentage of totalNumberPercentage of total

* May include combinations of European groups, e.g. NZ European and/or British and/or Dutch etc.

† All groups not included above. May include combinations of other groups e.g. Japanese and/or Korean and/or Middle Eastern groups.

Single ethnic group—
      European*2 651 59582.22 658 73879.50.3
      New Zealand Maori295 3179.2323 4939.79.5
      Samoan50 1991.668 5652.036.6
      Cook Island Maori23 9730.726 9250.812.3
      Tongan9 2250.318 2640.598.0
      Niuean8 4720.39 4290.311.3
      Tokolauan2 3160.12 8020.121.0
      Fijian1 8750.12 7600.147.2
Other Pacific Island group813--1 413--73.8
      Total, single Pacific Island group96 8733.0130 1583.934.4
Chinese19 5660.637 6891.192.6
Indian12 1260.426 9790.8122.5
Other single ethnic groups12 0780.425 9260.8114.7
      Total, single ethnic groups3 087 55295.73 202 98095.73.7
Two or more combinations—
      European-with New Zealand Maori94 8962.993 9872.8−1.0
      European and New Zealand Maori-with any one of Pacific Island group3 7740.14 6140.122.3
            -Chinese, Indian, other2 0580.11 656−19.5
      European—with any one or two of Pacific Island group17 0430.516 6020.5−2.6
      European—and any one of Pacific Island group with any one of Chinese, Indian, other873624−28.5
      European—with any one or two of Chinese, Indian, other6 8520.27 8360.214.4
      NZ Maori—with any one or two of Pacific Island group6 7770.29 0750.333.9
      NZ Maori—and any one of Pacific Island group-with any one of Chinese, Indian, other372--447--20.2
      NZ Maori—with any one or two of Chinese, Indian, other1 581--1 575--−0.4
      Any two or three of Pacific Island group2 9010.13 8730.133.5
      Any one or two of Pacific Island group-with any one or two of Chinese, Indian, other1 6770.11 6770.1
      Any two or three of Chinese, Indian, other357--867--142.9
      Total, two or more combinations139 16743142 8364.32.6
Not specified36 564--28 113--−23.1
      Total3 263 283100.03 373 929100.03.4

Table 5.27 compares the major ethnic groups of the resident New Zealand population at the 1986 and 1991 censuses. The most obvious feature of the table is that at both the 1986 and 1991 Censuses the vast majority of New Zealand's population (95.7 percent) indicated that they belonged to only one ethnic group.

There were significant differences in the rate of population increase recorded by these single ethnic groups, with increases ranging from 0.3 percent for the European group to 122.5 percent for the Indian group. The single ethnic groups experiencing the greatest growth were Tongans, Chinese, and Indians. The European group's share of the population decreased from 82.2 at the 1986 Census to 79.5 at the 1991 Census. This was offset by increases in the proportion of the population in the other single ethnic group categories. Of the population belonging to two or more ethnic groups, 78.0 percent reported New Zealand Maori as one of those groups, while 87.7 percent reported a European ethnic group.

Changes in the size of populations belonging to the different ethnic group categories, and in their shares of the total population over the 1986–1991 intercensal period reflect the different levels of natural increase, the size and direction of external migration flows, intermarriage between ethnic groups, and inter-ethnic mobility.

Table 5.28 gives a comparison of the age structure of New Zealand's major ethnic groups.

Table 5.28. COMPARISON OF AGE STRUCTURE OF MAJOR ETHNIC GROUPS, 1991 CENSUS*

Age group (years)Percentage of population in age group
EuropeanNew Zealand MaoriPacific Island§ChineseIndianOther

* Usually resident New Zealand population.

† Persons of single ethnic group.

‡ Persons who specified “New Zealand Maori” as either their sole ethnic group or as one of several ethnic groups.

§ Persons who specified a Pacific Island ethnic group as either their sole ethnic group or as one of several ethnic groups (except where one group is New Zealand Maori.)

Includes persons of “other” single ethnic group and persons of two and three ethnic groups (except where one group is “New Zealand Maori”.)

  0–46.914.313.96.98.711.2
  5–1413.223.221.815.416.819.7
15–197.911.510.39.28.28.3
20–247.69.910.48.910.78.6
25–3415.616.918.023.525.224.5
35–4414.910.812.418.416.916.3
45–5915.79.29.111.49.97.9
60–644.81.81.72.21.41.3
65–747.91.81.82.31.61.5
75–844.40.60.51.20.50.6
85 and over1.10.10.10.40.10.1
            Total100.0100.0100.0100.0100.0100.0

Country of birth

Since 1945 the percentage of the resident population born in New Zealand has remained relatively stable. Table 5.29 shows that 85.1 percent of the population in 1986 and 84.2 percent of the population in 1991 were New Zealand born. The small decline between the 1986 and 1991 censuses was a consequence of an increased net inflow of overseas-born migrants—especially from Asia and the Pacific Islands. Also evident was the reduced importance of the British Isles as a source of new settlers.

The most significant increase was in the number of New Zealand residents born in Asia. The number of persons born in China increased by 86.5 percent during the intercensal period, while those born in other Asian countries more than doubled, with significant increases being recorded in the number of immigrants from Hong Kong, Malaysia, the Philippines, Taiwan and Thailand.

BIRTHPLACES

Country of birth of population

Table 5.29. COUNTRY OF BIRTH OF POPULATION*

Country of birth1986 Census1991 CensusPercentage intercensal change
NumberPercentage of specified casesNumberPercentage of specified cases

* Usually resident New Zealand population.

New Zealand2 759 17885.12 812 03284.21.9
Australia47 3341.548 7381.53.0
Pacific Islands72 8102.298 0372.934.6
British Isles256 7627.9239 1577.2−6.5
Netherlands24 4890.824 2760.7−0.9
Germany4 4790.15 3940.220.4
United States of America7 3620.28 4510.314.8
Canada6 4140.26 6990.24.4
India6 5700.29 4590.344.0
China4 9440.29 2220.386.5
Other Asia22 3200.746 0381.4106.3
South Africa4 3200.15 6550.230.9
Other countries25 7490.826 2110.81.8
Not specified21 555--34 557--60.3
            Total3 263 383100.03 373 926100.03.4

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.

CITIZENSHIP

Number of applications granted

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 13 383 people were granted citizenship for the year ended 31 March 1992, compared with 13 098 in the previous year.

Immigration

The Immigration Amendment Act 1991 came into force on 18 November 1991. As well as the statutory changes the new Act brought, there were major changes to the polices under which the majority of immigration decisions are made. The changes have led to a system that provides for the needs of prospective migrants and New Zealand.

The philosophy behind these changes is that immigration should contribute to the economic and social well being of the resident population. It has been shown that immigration is an area that is capable of providing significant social and economic benefits as well as providing economic and lifestyle opportunities to those who choose to live here. This is especially so when those migrants who are chosen to come to New Zealand have qualifications, experience and assets to establish themselves.

The main thrust of the changes has been to the permanent residence policy. Replacing the Occupational Priority List, the Non-Occupational Priority List and the Worthwhile Skills categories, is the General Category. The General Category is essentially a points system under which applicants score points for employability, age and settlement factors. While a firm offer of employment is worth a number of points it is no longer compulsory. In ranking applicants by the points scored, New Zealand reaps the benefit of a mechanism that ensures the selection of the highest quality migrants from the pool.

The Business Investment Policy (BIP) has been replaced by the Business Investment Category. The aim of the Business Investment Category is to target migrants with business skills and substantial capital funds and to add to the national pool of skills and investment capital, thus broadening the nation's opportunities.

Refugees selecting clothes at immigration hostel, Mangere.

The other grounds for entry into New Zealand on a permanent basis have changed very little. The family category has remained the same, while criteria for an application on humanitarian grounds have been clearly defined by the translation of the old requirements into four clear points.

The changes to the Immigration Act also established the Residence Appeal Authority, an independent tribunal which reviews residence application decisions. People whose applications have been declined may appeal to the authority on the grounds that either the decision was not consistent with Government policy; or their circumstances are such that an exception to policy should be considered.

There have also been changes to compliance mechanisms. Removal Warrants have been replaced by Removal Orders. Removal orders may be served on those who are in New Zealand unlawfully, directly without court proceedings. In tandem with the new compliance provisions the Removal Review Authority (RRA) was established. The RRA, an independent tribunal, considers appeals against removal orders. People may appeal to the authority on humanitarian or factual grounds to have a removal order cancelled or have the period of time the removal order prevents them from returning to New Zealand reduced. There is a time limit of 42 days from the time of the serving of the order in which to appeal. The appellant/s may leave within the 42 days which would result in the order being cancelled and no penalty incurred. If, however, the appeal is declined the person/s will be subject to removal with penalties incurred.

Overflowing with new passports for processing, Passport Office, Wellington.

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 is required to obtain a permit to be in New Zealand. Anyone intending to reside or 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 a further six 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 require a Returning Resident's Visa. This is 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.

Permanent migrants. There are three categories under which would be immigrants may apply for permanent residency.

General category—the emphasis of the General Category is on assessing the overall calibre of the applicant, with migrants being allocated points for attributes and then ranked in a pool. A number of applicants, determined by the number needed to meet the annual migration target figure, are selected monthly by their ranking. The attributes for which points are given are employability, age, ability to settle, and language ability. If applicants score 20 or more points they gain admittance to a pool where they are ranked according to the number of points gained. The pool is swept once a month, taking a certain number of applicants. The number selected is determined by the number of people needed for that month to meet the annual migration target figure of 25 000.

If the target number is less than the number in the pool the applicants are chosen by their ranking, thus the pool pass mark is raised by demand. Applicants stay in the pool for a maximum of two draws. If after this time they have not passed the pool mark their applications are declined. If they still wish to be considered they may reapply.

Business investment category—as opposed to the previous BIP, the new policy has requirements governing investments. All investments have to be lodged for at least two years with the following requirements: NZ$725,000 in a passive investment, $625,000 in an active investment in the Auckland or Wellington area; or $500,000 in an active investment in any area outside Auckland or Wellington. Independent certification of these investments will be required and must be kept in New Zealand for at least two years or residence may be revoked. Applicants must be able to show that the business investment funds are the direct result of their own business or professional record over a period of at least three years, and that their business or professional record extends over a minimum period of 10 years. Applicants must also meet standard immigration health and character requirements.

Family category—this category covers three situations: marriage to a New Zealand citizen or resident; de facto relationship with a citizen or resident; parents, dependant children, and single adult brothers, sisters and children. Applications under this category need a sponsor or support from the New Zealand based relative or partner.

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 other agencies.

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.

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 on factual or humanitarian grounds.

The Immigration Act 1987 also provides for the deportation of people threatening national security; suspected terrorists; and criminal offenders who are residents of New Zealand. 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 is 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 1991 Census are collected on the basis of self identification and are based on the concepts of “ethnic group” or ancestry (see Ethnicity in preceding section). Ethnic group statistics 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 “New Zealand Maori ethnic group”.

Age distribution. Table 5.30 compares the Maori population usually resident in New Zealand at the 1986 and 1991 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 1986 Census, are compared with the 5–9 years age groups, etc., at the 1991 Census, the contribution made by net external migration and natural increase to New Zealand Maori population growth can be seen.

Table 5.3. NEW ZEALAND MAORI POPULATION BY AGE GROUP*

Age group (years)1986 Census1991 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

* Persons of Maori origin or descent usually resident in New Zealand.

  0– 453 76013.362 00414.315.3
  5– 951 06012.651 07211.7
10–1452 93213.149 97111.5−5.6
15–1730 8587.630 0216.9−2.7
18–1918 5614.619 8904.67.2
20–2444 40011.042 8559.9−3.5
25–2936 1178.939 5619.19.5
30–3427 2586.733 9997.824.7
35–3921 7625.426 0106.019.5
40–4416 3894.020 7484.826.6
45–4914 9073.715 4383.63.6
50–5411 7872.913 8333.217.4
55–599 2252.310 6502.415.4
60–646 3451.67 8361.823.5
65–694 0201.05 0641.226.0
70–742 7030.72 9310.78.4
75–791 5210.41 7250.413.4
80 and over1 1640.31 2390.36.4
            Total404 775100.0434 847100.07.43

At the 1991 Census, the New Zealand Maori population was significantly younger in age structure than the total population. This youthfulness is demonstrated by the fact that 37.5 percent of Maori were under 15 years of age, compared with 23.2 percent of the total population. In contrast, only 4.4 percent of Maori were 60 years of age and over at that time, the corresponding figure for the total population being 15.5 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 1991 Census relative to the adjacent younger age group at the 1986 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 increased as can be seen from the 1986 and 1991 census populations in the 0–4 age group.

MAORI TRIBAL LOCATIONS

Traditional areas of major tribes

Geographical distribution. Changes in the regional distribution of the Maori population between the 1986 and 1991 censuses are shown in Table 5.31. Maori continue to be concentrated in the North Island regions (where 89.0 percent live) and more especially in the northern regions—Northland, Auckland, Bay of Plenty and Waikato. However, the proportion of the Maori population in the North Island regions has continued to decline since 1981.

The South Island's share of the Maori population accordingly showed a slight increase, from 10.6 percent to 10.9 percent, during the intercensal period. Canterbury, the only region in the South Island with a significant level of Maori settlement, received the bulk of this increased share and contained 5.0 percent of the Maori population at the 1991 Census.

Redistribution of the New Zealand Maori population during 1986–91 is the result of variations in the relative levels of natural increase (births less deaths) in the regional councils and the impact of both internal and external migration flows.

Table 5.31. NEW ZEALAND MAORI POPULATION BY REGIONAL COUNCIL*

Regional council1986 Census1991 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

* People of Maori origin or descent usually resident in New Zealand.

† Includes Chatham Islands County.

North Island—
      Northland30 6697.635 5028.215.8
      Auckland98 23524.2103 21223.75.1
      Waikato56 11813.960 64213.98.1
      Bay of Plenty47 23511.752 48812.111.1
      Gisborne17 0584.217 5654.03.0
      Hawke's Bay27 5766.828 4916.63.3
      Taranaki12 0183.012 6572.95.3
      Manawatu-Wanganui31 9207.934 6688.08.6
      Wellington40 76710.141 9349.619
            North Island total361 59689.3387 15989.07.1
South Island—
      Nelson-Marlborough5 6431.46 5851.516.7
      West Coast1 9560.52 0700.55.8
      Canterbury19 7014.921 7265.010.3
      Otago6 8221.77 8601.815.2
      Southland8 7182.29 1051144
            South Island total42 84010.647 34610.910.5
      Extra-county islands and shipping3420.13390.1−0.9
            New Zealand total404 775100.0434 847100.07.4

Male-female ratio. At the 1991 Census females outnumbered males in the Maori population. This repeats the pattern established in the 1986 Census. There were 214 428 males and 220 416 females in the Maori population, representing a sex ratio of 102.8 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 5.32 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 5.32. MAORI DEMOGRAPHIC INDEXES

YearLive birthsDeathsRate of natural increase*Reproduction rates
NumberCrude birth rate*Total fertility rateNumberCrude 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.

1,9826 21621.97  2.27x1 3184.65  17.31  1.09  1.06  
1,9836 27121.90  2.23.x1 3264.62  17.27  1.07  1.04  
1,9846 74523.27x2.34x1 2634.34  18.91  1.14  1.10  
1,9856 46922.07  2.20x1 2724.32  17.73  1.08  1.05  
1,9866 51322.01P2.16P1 2254.14P17.87P1.04P1.02P
1,9876 98223.33P2.29P1 2054.03P19.30P1.11P1.09P
1,9886 76722.41P2.22P1 2584.17P18.24P1.09P1.07P
1,9896 96722.89P2.29P1 3514.44P18.45P1.11P1.08P
1,9906 94722.62P2.28  1 3954.54P18.08P1.12P1.09  

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 5.33. 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 5.33. 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

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 16 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 the 1991–92 year the major report completed was that concerning the Te Roroa claim in the Dargaville area. As at 30 June 1992 hearings and conferences were held on 17 claims. Some of the areas under examination were the Ngai Tahu fisheries; Crown Forest assets; Tainui (Waikato River dam); railway lands; geothermal claims; Waikareao Estuary; and Wellington Tenths.

Restructuring of Maori Affairs administration

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

Elders at Otakou Marae, Dunedin.

Maori community services

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. These programmes are currently under review by the Te Puni Kokiri to be transferred to other agencies. Currently, payments for community services are made by way of grants approved to national organisations which provide the services.

National Maori organisations working alongside and partially resourced by the ministry are the New Zealand Maori Council; Maori Wardens; Honorary Community Officers; Maori Women's Welfare League; Te Kohanga Reo; and Maori Language Commission (Te Taura Whiri).

Additionally, there are a number of 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 Maatua Whangai and the 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.

Honorary Community Officers. Honorary Community Officers are appointed by the Minister to advise and assist the Maori community in respect of their general welfare, particularly health, housing, education, vocational training and employment.

Maori Women's Welfare League. The league is a national organisation of Maori women spread throughout all regions which has concentrated its efforts primarily on the well-being of Maori women and families and on the health of the Maori people. The organisation contributes to the strengthening and the developing of the whanau base.

The league has always been in the forefront of efforts towards the social advancement of the Maori people. In 1990–91, the emphasis was on the 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 base 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. This is a joint programme, launched in 1985 by the Departments of Maori Affairs, Social Welfare and Justice as an alternative means of addressing social problems encountered by Maori people. The objective is to deinstitutionlise Maori to prevent the flow into government institutions, and to place them in the care 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. The programme is co-ordinated through community Maatua Whangai organisations.

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. 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.

Maori Language Commission (Te Taura Whiri). The Maori Language Commission was established by the Maori Language Act 1987 to promote the Maori language and its use as an official language of New Zealand, as a living language, and as an ordinary means of communication.

Marae subsidies. Marae are traditional centres of Maori tribal life, the venue for major social, political and ceremonial activity. Te Puni Kokiri 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 nō Aotearoa te reo Māori, ā, he āhua 50 000 ngā tāngata ko te reo Māori to rātou ake reo. Ko te reo Māori o Aotearoa tētahi o ngā reo o Te Moana-nui-a-Kiwa, ā, he reo e whanaunga ana ki ngā reo o Rarotonga, o Tahiti me Hawai'i.

Nā te kaha o te reo Pākehā i ruarua haere ai te hunga kōrero Māori mai i te tīmatanga o tēnei rautau; otirā, mai i te tīmatanga o tēnei ngahurutanga, kua oho ake te aroha o te iwi Māori ki tōna reo. Tokohia kē nei ngā tamariki kei ngā Kōhanga Reo, kei ngā Kura Kaupapa Māori rānei e whakaakona ki te reo Māori. He maha ngā reo irirangi Māori kua whakaūtia, ā, e whiriwhirihia ana ināianei ko te whakapāhotanga Māori.

Ko te ture i kīia ai ko te reo Māori he reo mana nō Aotearoa, i whakatūria ai hoki Te Taura Whiri I Te Reo Māori i te tau 1987, i whakatakotoria hei urupare ki te pūrongo e tata tonu ana te puta i Te Rōpū Whakamana I Te Tiriti O Waitangi—e pā ana taua pūrongo ki te reo Māori me tōna tūranga i ngā whare whakawā, i ngā kura, i ngā mahi pāho me ngā tari kāwanatanga.

Teacher assistant with a new generation of Maori speakers at the Waiwhetu School bilingual unit.

Ahakoa kāore i rite i Te Ture Reo Māori 1987 te katoa o ngā whakahau a Te Rōpū Whakamana I Te Tiriti O Waitangi, i kīia te reo Māori he reo mana, ā, ka āhei hoki te tangata ki te kōrero Māori i ngā whare whakawā o te motu.

Ko ngā uaratanga o Te Taura Whiri i te Reo Māori he whakatairanga, he whakaū i te reo Māori hei reo e kōrerotia whānuitia ana, kia ora tonu ai, ā, he whakaōrite i te reo Māori me te reo Pākehā ki tā te ture titiro. Hei hanga i tētahi Aotearoa e āhei ana ngā tāngata katoa ki te kōrero i tō rātou ake reo, ahakoa ko te reo Māori, ko te reo Pākehā rānei, e aro nui atu ana Te Taura Whiri I Te Reo Māori ki ngā rōpū e toru e whai ake nei: ki te iwi Māori, ki te hunga o ngā tari kāwanatanga me te iwi whānui.

Kei te iwi Māori tonu te uara whakaora ake i tōna reo, inā hoki kei reira te tino mātauranga ki te reo. Ko te hunga matatau ki te reo e whakahauria ana e Te Taura Whiri I Te Reo Māori kia tukua iho e rātou tēnei taonga ki te mātātahi e tupu haere nei, ki te mātāpupuiu hoki Kāore i te mōhio ki te reo o ōna mātua tīpuna. I tua atu i te wero atu ki te iwi Māori kia matapakitia, kia whakatutukia he kaupapa mō te reo, ko tētahi o ngā mahi a Te Taura Whiri I Te Reo Māori he tito, he kohi kupu hou mai hei whakamahi mā te hunga kōrero Māori (hei tauira, ‘waea whakaahua’ facsimile device, fax).

E akiakitia ana ngā tari kāwanatanga kia aro mai ki ngā awhero o te iwi Māori e pā ana ki te reo. Ko tētahi atu o ngā mahi a Te Taura Whiri I Te Reo Māori he āwhina i aua tari ki te whakarite ratonga reo Māori. Kei te nui ngā pānui tūranga watea kua puta kē i ngā nūpepa o te motu, i ētahi atu wāhi hoki, ki ngā reo e rua, ā, kei te nui ngā pukapuka kōrero whānui kua tāngia kētia ki te reo Pākehā me te reo Māori, a, i ētahi wā hoki, ki ngā reo o Te Moana-nui-a-Kiwa.

E whakaohongia ana te iwi whānui ki ngā wawata o te iwi Māori e pā ana ki te reo, tae atu hoki ki ngā kura kaupapa Māori me te pāho reo Māori. Ahakoa ka riro mā te iwi Māori anō ēnei kaupapa e whakahaere, e tika ana kia tautokona e te iwi whānui kia pūmau ai te mana o te reo mō 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 Māori (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, TeTaura Whirl i te Reo Māori 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 Māori 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 Māori 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 population

Demography

The 1991 Census provides the most recent and complete data on New Zealand's Pacific Island population. The following tables are based on an ethnic group of ancestry concept and allows comparison between the 1986 and 1991 census data. This population includes the categories of Samoan, Cook Island Maori, Niuean, Tokelauan, and other Pacific Island groups e.g., Hawaiian, Tahitian. Persons who specified themselves as belonging to one or several Pacific Island categories are defined as ‘the Pacific Island Ethnic Group’.

Age distribution. Table 5.34 compares the Pacific Island populations at the 1986 and 1991 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 1986 census is compared with the 5–9 years group at the 1991 Census, etc., a major contribution made by net immigration to the increase in the Pacific Island population during the period is evident.

In addition, the high growth of 36 780 (28.2 percent) in the resident Pacific Island population during the 1986–91 intercensal period was partly a result of significant natural increase (births less deaths) for this ethnic group.

Television presenter and producer, Susana Hukui.

Table 5.34. PACIFIC ISLAND POPULATION BY AGE GROUP*

Age group (years)1986 Census1991 CensusIntercesal change (percent)
NumberPercentageNumberPercentage

* Persons of Pacific Island origin usually resident in New Zealand.

  0–418 39014.125 73715.440.0
  5–917 42113.419 85111.913.9
10–1415 81912.119 11011.420.8
15–1914 22310.917 22310.321.1
20–2412 99310.016 69510.028.5
25–2911 8989.115 6279.431.3
30–3410 7768.313 0807.821.4
35–398 7096.710,7856.523.8
40–445 9824.68 5475.142.9
45–494 6713.65 9973.628.4
50–543 1532.44 7102.849.4
55–592,4091.83 3392.038.6
60–641 6411.32 6221.659.8
65–691,0170.81 7341.070.5
70–746060.51 0560.674.3
75–793150.25610.378.1
80 and over2670.23900.246.1
            Total130 293100.0167 073100.028.2

At the 1991 Census of Population and Dwellings, the Pacific Island population was considerably younger in age structure than the total usually resident New Zealand population. This is shown by the fact that 38.7 percent of Pacific Islanders were under 15 years of age, compared with 23.2 percent of the total population. In contrast, only 3.8 percent of Pacific Islanders were 60 years of age and over at that time, the corresponding figure for the total population being 15.4 percent.

Tongan women making tapa cloth.

The Pacific Island 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 population which is more concentrated in the middle working-age range (25–44 years) than is the case for Maori. Pacific Island 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 population by regional council is shown in Table 5.35. All regional councils experienced growth in their Pacific Island populations between the 1986 and 1991 censuses. In terms of numbers, Auckland experienced the greatest increase (27 384), or 74.5 percent of the national increase of 36 780 during the intercensal period.

Table 5.35. PACIFIC ISLAND POPULATION BY REGIONAL COUNCIL*

Regional council1986 Census1991 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

* People of Pacific Island ethnic group usually resident in New Zealand.

† Includes Chatham Islands County.

North Island—
      Northland1 2751.01 6351.028.2
      Auckland83 93164.4111 31566.632.6
      Waikato6 1954.87 2364.316.8
      Bay of Plenty2 6072.03 2762.025.7
      Gisborne4380.35250.319.9
      Hawke's Bay2 2891.82 5201.510.1
      Taranaki5520.46360.415.2
      Manawatu-Wanganui2 5952.03 4262.132.0
      Wellington21 50416.52605515.621.0
            North Island total121 38693.2156 62793.729.0
South Island—
      Nelson-Marlborough5610.45880.44.8
      West Coast1380.11470.16.5
      Canterbury4 8003.75 8233.521.3
      Otago1,9711.52 3251.418.0
      Southland1 4251.11 5450.98.4
            South Island total8 8986.810 43463173
Extra-county islands and shipping912..
            New Zealand total130 293100.0167 073100.028.2

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, melanesian and micronesian 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 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 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 Pacific Division of Te Puni Kokiri was transferred to the Ministry of Pacific Island Affairs on 1 July 1992. This new addition is now known as the Operations Division of the Ministry of Pacific Island Affairs. Their main focus is for employment and training as well as supporting the development of social services. 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.

  • 53 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 Development (Te Puni Kokiri); Maori Language Commission; Maori Women's Welfare League Inc.;

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

Special articles

Dr Dorothy Page, National Council of Women; Maori Development Corporation Limited; Maori Women's Welfare League Inc; Ministry of Women's Affairs; National Maori Congress; Girl Guides Association of New Zealand.

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).

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 Department—Te Puni Kokiri (Parl. paper E.47)

Pacific Island population

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

Supermap 2

NEW ZEALAND MAORI POPULATION

Number of females at 1991 census

PACIFIC ISLAND POPULATION

Number of females at 1991 census

INCOMES

Average total annual income for female population over 15 years at 1991 census

AGE OF POPULATION

Average age of females over 15 years at 1991 census

Chapter 6. Social welfare

Canterbury Aged Peoples Welfare Home.

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

During 1992 the framework for a restructured department had largely been put into place to ensure that the three major delivery functions (income support; social services to children, young persons and their families; and funding of welfare organisations) operate in a more accountable way as distinct businesses, each under a General Manager. In addition, a Social Policy Agency and a Ministerial Services Unit provide policy advice and ministerial liaison and support to the Minister of Social Welfare.

A major part of the department's role is to administer Parts I and HI of the Social Security Act 1964, the Social Welfare (Transitional Provisions) Act 1990, the Disabled Persons Community Welfare Act 1975, the Children, Young Persons and their Families Act 1989 and the War Pensions Act 1954. The department also:

  • Advises the Minister on the development of social welfare policies for New Zealand.

  • Provides such welfare services as the government may from time to time require.

  • Maintains close liaison with, and encourages 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.

  • Undertakes and promotes research into aspects of social welfare.

  • Provides 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.

  • Receives and disburses maintenance payments and enforces maintenance orders and registered agreements under the Family Proceedings Act 1980.

  • Under the Civil Defence Welfare Plan, in time of disaster, makes relief payments authorised by government to the homeless, and makes payments authorised by government for hosts for billeting evacuees from a disaster area.

Table 6.1. SOCIAL WELFARE EXPENDITURE

Year*Payments on behalf of the CrownReceipts on behalf of the CrownDepartmental expenditureTotal
National super-annuationAll other paymentsNet operating expensesNet capital expenses

* Year ended 30 June.

Source: Department of Social Welfare.

   $(million)   
1,9915,1734,458245496359,916
1,9925,5154,2643135192410,008

FEMALE BENEFICIARIES

1991/92

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.

INCOME SUPPORT

Payments made by DSW

The New Zealand Income Support Service delivers benefits, national superannuation, war pensions and additional income support to eligible New Zealanders. The service is a substantial business distributing $9 billion in benefits and pensions to its customers each year. Employing approximately 5000 people in 90 offices throughout New Zealand, the service has 850 000 customers or approximately 1 in 4 New Zealanders. An average of 1600 applications for benefits and pensions are processed each day, while nationally the service handles approximately 25 000 transactions daily by mail, telephone and personal contact.

The service in the next three years will be focussing on providing income support assessment and payment in a faster, more accurate and appropriate way to reduce costs and improve customer service. By refining work practices and procedures, and reducing administrative time delays customers will ultimately be provided with better information on the entitlements which match their personal and family circumstances.

The following main benefits, loans and payments are paid by the service:

  • Caring benefits: Accommodation; Domestic Purposes, Emergency; Orphans; and Widows benefits, Special Needs Grants and Supplementary Payments.

  • Incapacity benefits: Accommodation; Emergency; Invalids; and Sickness benefits, Car Loans, Disability Allowance, Handicapped Child's Allowance, Loans for Home Alterations, Loans for Repair to Homes, Rest Home Subsidy, Special Needs Grants and Supplementary Payments.

  • National superannuation and veterans benefits: Accommodation Benefit; National Superannuation; Special Needs Grants; Supplementary Payments; and Veterans Pension.

  • Other benefits, grants and payments: Accommodation (non-beneficiaries); Appliances and Equipment Grants; Childcare Subsidy Programme; Disability Allowance; Driving Assessment Costs; Expenses to Attend Treatment; Funeral Grant; Home Help; Rehabilitation Allowance; Self-Employment of Disabled Persons; Special Annuities; Special Benefits (non-beneficiaries); Special Needs Grants (non-beneficiaries); and Travel and Accommodation (vocational).

  • Work related benefits: Accommodation; Emergency, Independent Youth; Training; and Unemployment benefits; Job Search Allowance; Special Needs Grants; and Supplementary Payments.

  • War pensions: Blinded Servicemen's Trust Board; Interest Concessions Land and Buildings; Medical Treatment; Other War Pensions; War Disability Pension; and War Pension Concessions.

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.

Department of Social Welfare staff answering inquiries.

Table 6.2. CASH BENEFITS: WEEKLY RATES*

Benefit Weekly rate from April 1992

* Single 16–17 year olds receive the Training Benefit only.

Source: Department of Social Welfare.

 Basic benefitWith Family Support
 $
Unemployment
Without children:
Single 16–17 year olds*87.00 
Single 18–24 year olds109.5 
Single 25 and over136.57 
Married couple248.32 
With children:
Single (1 child)187.79229.79
Single (2 children)204.86268.86
Married couple (1 child)248.32290.32
Married couple (2 children)248.32312.32
Sickness
Without children
Single 16–17 year olds109.25 
Single 18–24 year olds131.11 
Single 25 and over136.57 
Married couple248.32 
With children:
Single (1 child)187.79229.79
Single (2 children)204.86268.86
Married couple (1 child)248.32290.32
Married couple (2 children)248.32312.32
Invalids
Without children
Single 16–17 year olds132.61 
Single 18 and over163.88 
Married couple273.14 
With children:
Single (1 child)215.27257.27
Single (2 children)231.16295.16
Married couple (1 child)273.14315.14
Married couple (2 children)273.14337.14
Widows and Domestic Purposes Benefit
Women alone single adult136.57 
Sole parent (1 child)187.79229.79
Sole parent (2 children)204.86268.86
Domicilary Care Domestic Purposes Benefit
Single 16–17 year olds132.61 
Single 18 and over163.88 
Sole parent (1 child)215.27257.27
Sole parent (2 children)231.16295.16
Half married rate136.57 
Orphans and Unsupported Child Benefit
Under 5 years54.63 
5–9 years68.28 
10–13 years75.11 
14 and over81.94 
Independent Youth Benefit
Single 16–17 year olds109.25 
Job Search Allowance
Single 16–17 year olds87.00 
National Superannuation and Veterans Pension
Single living alone227.07 
Single sharing207.07 
Married person169.45 
Married couple: both qualify338.90 
Married couple: non-qualifying spouse323.68 

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 1992 was 31 831.

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 1992 was 24 093.

Mother Mary Joseph Aubert, founder of the New Zealand Sisters of Compassion.

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 1992 was 9873; of this number 3185 were caregivers for 5307 children.

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 1992 was 96 722; of this number 90 935 were sole parents (caregivers for 154 439); 833 were caring for the sick or infirm; and 2452 were women alone.

Unemployment benefit. This is payable to people who are unemployed, are capable and willing to undertake full time work, and have taken reasonable steps to obtain suitable employment. The number of unemployment benefits paid increased by 11.1 percent over the 1992 year. As at 30 June 1992 a total of 170 367 unemployment benefits were being paid. Of this number 153 105 people received the standard benefit; 252 received the Job Search Allowance; 3682 the Independent Youth Benefit, while 6253 received other unemployment benefits. The Emergency Unemployment Benefits, Age 55+ and the Student Benefit were, as at 30 June 1992, granted to 7062 and 13 people respectively. Emergency support for unemployed students has risen each December for the past three years, from 8891 in 1989 to 12 582 in 1990 and to 15 528 in 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. There were 7857 training benefits being paid as at 30 June 1992.

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 was only one miners benefit being paid at 30 June 1992.

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 support.

Family assistance

Family support. 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.

Child Care Subsidy. This subsidy provides financial assistance to families unable to afford the full cost of child care. Policy changes allowed an increased rate of payment and a more generous income test. In 1992, the number of subsidies granted on income grounds was 17 072, over three times the number allowed in 1991. The number of social work referrals in 1992 decreased over 91 percent from 3116 in 1991 to 279. Social Welfare subsidies, which until 1991 were included in social work referrals, numbered 206 in 1992. The number of subsidies in 1992 totalled 17 557, almost twice the 1991 total of 8802.

Plimmerton Men's Plunket Group, providing support for male primary caregivers at home.

Orphans and Unsupported Child Benefits. This benefit is payable to a person caring for an orphan or an unsupported child. As at 30 June 1992 there were 3135 benefits being paid.

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 became available to superannuitants in September 1992. By 1 February 1992, 513 000 cards had been issued and by 30 June 1992 the number sent out numbered 1 060 000.

National Superannuation

The current National Superannuation scheme provides $227.07 a week for a single person and $338.90 a week for a married couple (or $325.68 if one spouse does not qualify). 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 being gradually raised from 60 to 65 by 2001.

People who wish to supplement their National Superannuation 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. NUMBER OF BENEFITS IN FORCE

Type of benefitAt 31 MarchAt 30 June
19881989199019911992
Source: Department of Social Welfare.
National superannuation479 985485 962495 500506 047504 561
Widows12 86213,02612 67610,9899 873
Domestic purposes74 86285 61594 82397 00096 722
Orphans1 5372 9935 2392 9313 135
Family436 066437 287446 373
Invalids24 37926 26027 82430 74631 831
Miners97631
Unemployment86 782123 565139 625153 259170 367
Sickness13 13216,02119,51120 14724,093
Training9 4537 4837 857
            Total1 129 6141 190 7361 251 030828 605848 440

Table 6.4. PAYMENTS UNDER THE SOCIAL SECURITY ACT 1964*

Item19881989199019911992

* Excludes payments for health benefits.

† These figures were obtained by multiplying by 52 the amount paid in the week to 31 March.

Source: Department of Social Welfare.

   $(000)  
Cash benefits—
      National superannuation3,986,5444,314,2594,774,6765,173,8595,514,482
      Widows104,170106,062114,888106,07085,468
      Domestic purposes808,787962,8711,136,7181,207,8561,161,191
      Orphans6,17414,07424,74220,69715,080
      Family290,556258,445284,444222,996
      Invalids196,051226,304260,751289,212384,810
      Miners6972683914
      Unemployment672,694987,2751,235,0561,401,6281,445,248
      Sickness159,850192,745229,568248,672239,415
      Training56,46081,69674,546
      Payment after death5,0445,2555,574....
Advances for repairs to homes1,8092,3613,064....
Disability allowance30,39143,89352,527....
Handicapped child's allowance9,3159,12711,267....
Accommodation benefit96,618100,800120,566....
Special benefit12,69429,19049,426....
Telephone concession7,2055,393
            Total cash benefits6,387,9717,258,1268,359,7958,752,7258,884,254

HELP counsellor takes a call.

Other assistance

Accommodation benefit. Accommodation benefit is for people whose income and cash assets are limited and who have high accommodation costs. A weekly supplement may be payable for elderly people and people with disabilities who are in residential care. As at 30 June 1992, 140 356 accommodation benefits were in force, an increase of 27 698 over the previous year.

Disability allowance. This is an income-tested allowance payable to people with special costs arising from disability.

Handicapped child allowance. A non-taxable allowance payable to the parents of seriously physically or mentally handicapped children being cared for at home. There were 9342 children receiving an allowance as at 30 June 1992, with 1843 applications granted in the year ending 30 June 1992.

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. This benefit was held by 25 619 customers as at 30 June 1992, an increase of 4936 from the previous year.

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. A change in criteria in 1990 saw the number of grants issued at 25 602 in 1991. The ensuing changes in reporting methods, an increase in demand and policy allowing more than one grant per year saw a rise to 51 911 clients at 30 June 1992.

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. For the year ending 30 June 1992, 125 703 advance payments had been granted.

Advances for major repairs to homes. 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. For the year ending 30 June 1992, 1532 advances were granted, a decline of 331 from the previous year.

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. In the year to 30 June 1992 allowances were granted to 7931 persons on the Domestic Purposes Benefit, 133 on Widows and 1142 on Invalids, totalling 9206 granted allowances.

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. One hundred and forty four applications were received in the year to 30 June 1992 and 43 granted.

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 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. Prior to August 1991 this grant was available under different conditions. For the year ending 30 June 1992, 3916 grants had been allowed, a decrease of 2162 from the previous year.

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.

Child Support. The responsibility to collect child support payments from the country's 90 000 non-custodial parents was transferred from the Department of Social Welfare to the Inland Revenue Department from 1 July 1992. The Child Support Agency of the Inland Revenue Department has the objective to ensure that non-custodial parents contribute to the support of their children according to their capacity to provide.

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 20 358 in June 1992. The amount due for enforceable orders and agreements during the year ended 30 June 1992 was $19.3 million and receipts for the year totalled $8.3 million, a collection rate of 42.9 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 $171 million and receipts for the year totalled $89 million a collection rate of 52 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 30 JuneDPB expenditureMaintenance and liable parent receiptsRate of RecoveryNet expenditure

* Year ended 31 March.

Source: Department of Social Welfare.

 $(million)$(million)percent$(million)
1988*808.841.95.2766.9
1989*962.949.75.2913.2
1,9901,136.755.54.91,081.2
1,9911,207.979.26.61,128.7
1,9921,161.297.38.41,063.0

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.

Meals on Wheels volunteer making a delivery.

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:

War Disablement Pension. This pension provides compensation for disablement. Approximately 87 percent of those receiving this pension served in World War II.

Veterans Pension. This is paid at the same rate as National Superannuation, and is not income tested but is taxable. A total of 5393 people received Veterans Pensions as at 30 June 1992. This pension replaces the former war service pension, war veterans allowance, and economic pension.

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 dependents. Approximately 85 percent of those people on Dependents Pension, relate to service during World War II.

War pensions are increasingly related to the elderly section of the population and have remained constant over recent years.

Table 6.6. WAR PENSIONS AT 30 JUNE 1992

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.

Source: Department of Social Welfare.

  $(000)
War Disablement*21 35253,497
Dependants Pensions4 12520,288
Veterans5 39314,057
Police38103
            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.

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 agreements are being negotiated with several other countries.

General portability. People receiving National Superannuation or Veterans Pension are 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.

COMMUNITY FUNDING

By sector

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.

New Zealand Community Funding Agency

The New Zealand Community Funding Agency was set up in June 1992 as a service of the Department of Social Welfare: The agency is responsible for the allocation and delivery of funding and support to community-based social services.

Legislated responsibilities. The Community Funding Agency has responsibility for administering programmes under the Disabled Persons Community Welfare Act 1975 and the Children, Young Persons and their Families Act 1989.

Under the Disabled Persons Community Welfare Act the agency funds organisations providing service to support home-based care, residential care and vocational rehabilitation services for people with disabilities. Under the Act the agency is also responsible for the registration of homes for people with disabilities as well as for ensuring that public buildings have suitable access for persons who are disabled.

Under the Children, Young Persons and their Families Act, the agency funds programmes for Iwi Authorities, Cultural Authorities and Child and Family Support Services. Under this Act the agency is also responsible for the approval of child and family support services and community services for families. The New Zealand Community Funding Agency has also established an accreditation system for social and welfare service providers. It is the only organisation in New Zealand which offers this service.

FAMILIES UNDER STRESS

Sector funding

Responsibilities to government. The agency has a budget of $150 million and is responsible, on behalf of government, for the allocation and delivery of funding and support to community based social and welfare service providers throughout New Zealand. The agency's aim is to ensure that New Zealanders have access to a range of quality services according to their needs. These services fall under three main headings.

  • Families under stress: includes women's refuges, victim support groups and parenting programmes.

  • Community welfare: includes budgeting programmes, refugee services, rape crisis and sexual abuse programmes, and marriage guidance.

  • People with disabilities: includes residential care and support services for the intellectually and physically disabled, employment placement, vocational opportunities and disability information and advisory services.

COMMUNITY WELFARE

Sector funding

Allocation of funding. Funding is allocated by the agency through an annual planning process which assesses needs and priorities in each service sector throughout the country. Once these have been established, contracts for service provision are drawn up between the agency and service providers. Providers are required to meet standards set by the agency as well as regular monitoring and evaluation of the service they are contracted to provide.

The agency's work is divided into eight regional team areas; each has a different mix of customer demands.

New Zealand Children and Young Persons Service

The mission of the New Zealand Children and Young Persons Service is to work with families to protect children, manage young offenders, and ensure care and security for children in need.

PEOPLE WITH DISABILITIES

Sector funding

Salvation Army officer with some of the toys donated to the Toys and Treats for Tots Christmas collection.

The service is contracted with the Minister of Social Welfare to provide care and protection and other social services; Youth Justice Services; and Adoption Services. These are outlined below.

Care and protection and other social services. This includes the provision of information and referral services to children, young people and individual adults and families; the investigation of child abuse; the delivery of individual and family support services; facilitation of, and response to family group conference plans; and preparation of reports and other services to the courts. This also includes the provision of custody and guardianship services to children and young people directly by the department or indirectly by an approved organisation or individual. These services are provided under the Children, Young Persons, and their Families Act 1989, the guardianship Act 1968, the Family Proceedings Act 1980, the Immigration Act 1987, and other statutes and agreements.

The purpose of the Care and Protection Service is to work with families to protect children in need and ensure their adequate care and security.

Case assessment and investigation—this activity includes processes by which social workers are notified of children in need of care or protection, including child abuse allegations. In consultation with the family/whanau social workers investigate and assess the situation. Where appropriate the matter may be resolved through a family/whanau agreement.

Table 6.7. CHILD PROTECTION INTAKE, INVESTIGATIONS AND FAMILY/WHANAU AGREEMENTS*

 Year ended 30 June 1992

* One child may be the subject of more than one notification, inquiry, consultation or agreement and more than one child may be included in any notification or consultation.

Source: Department of Social Welfare.

General care and protection inquiries550 887
Notifications for child abuse, neglect or care difficulties24 861
Consultations with the Care and Protection Resource Panel by social workers under S17 CYP&F Act during investigation of child abuse9 529
Family/Whanau agreements made4 369

Care and protection family group conferences—the Family Group Conference (FGC) is the mechanism established by the Children, Young Persons and their Families Act 1989 whereby families/whanau meet with the department or other agencies to make an agreed plan to resolve a care or protection problem. The conferences are convened by the Care and Protection Co-ordinator.

Table 6.8. CARE AND PROTECTION FAMILY GROUP CONFERENCES

 Year ended 30 June 1992

* There may be more than one family group conference held per child or young person for any notification However, if a family group conference is called together to discuss the welfare of several children or young persons simultaneously, it has been counted as a separate family group conference for each child or young person.

† A family group conference may have one or more disposal outcomes.

Source: Department of Social Welfare.

Referral by Department of Social Welfare2 863
Referral by police173
Referral by Family Court475
Referral by other agency447
            Total referrals3 958
FGC plans made and decisions/recommendations accepted3 904
FGC plans made and decisions/recommendations not accepted40
FGCs that did not reach agreement173
FGCs where outcome not specified323
            Total FGCs held*4 440
Reconvened FGCs1 209
Care and Protection Family Group Conference disposals 
Seek a declaration that the child or young person is in need of care and protection (S67)393
Return to Family Court569
Care agreement383
Ongoing service provision by DSW2 144
Ongoing service provision not DSW1 335
Other320
No further action831
            Total FCC disposals5 975

Court resolution and outcome services—although the intent of the Children, Young Persons and their Families Act 1989 is to divert care and protection cases, where possible, from the courts there are situations where such action is necessary. Where emergency action has to be taken to protect a child the authority comes from the court. Subsequently, these matters are resolved in the Family Court, as are situations which require court orders and those which could not be resolved at a family group conference. The court requires reports and plans before making orders. These may require services to be provided by the department.

Table 6.9. COURT OUTCOME SERVICES*

 Year ended 30 June 1992

* Orders for the provision of services excluding Care Services. Any given court outcome may include one or more orders.

† An order restricting access or contact between a named person and the child or young person for whom the court action had been initiated.

Source: Department of Social Welfare.

S91: 
Support orders in favour of the Director-General282
Support orders in favour of a child and family support service27
Support orders in favour of an iwi authority
Support orders in favour of a cultural authority or recreational group4
Other support orders78
S86: 
Service orders in favour of the Director-General346
Service orders in favour of a child and family support service27
Service orders in favour of an iwi authority
Service orders in favour of a cultural authority or recreational group2
Other service orders66
S87: 
Restraining orders161
            Total Court orders made993

Care, custody and guardianship—children in need of care or protection can be removed from their existing caregiver for periods of time. The Children, Young Persons and their Families Act 1989 has shifted the emphasis away from longer term extended care placements to a range of options which aim to restore the usual caregiving arrangements. Where alternative placements are necessary, emphasis is put on making a placement, where possible, within the child's extended family or community.

Table 6.1. CHILDREN AND YOUNG PERSONS UNDER THE CARE, CUSTODY OR GUARDIANSHIP OF THE DIRECTOR-GENERAL

  As at 30 June 1992

* Children and young persons may be removed from their usual caregiver under emergency provisions and placed in the Director-General's care.

† Custody orders give authority for custody but do not change guardianship.

‡ Guardianship orders suspend the guardianship rights of all other guardians for the duration of the order.

§ Care services may be provided by agreement between the Director-General and the parents, guardians or usual caregivers. Temporary care agreements are limited to 28 days duration, renewable once. An extended care agreement can be made once only for a maximum of 12 months and requires the agreement of a family group conference.

Source: Department of Social Welfare.

via S39:Place of safety warrant*74
via S40:Warrant to remove*3
via S42:Search without warrant* (police only)1
via S78:Custody order pending determination260
via S101:Custody orders372
via S102:Interim custody orders178
via S110:Guardianship orders§1 311
via S139:Temporary care agreements*263
via S140:Extended care agreements*170
 Total2 632

Psychologist, Dr Miriam Saphira.

Youth justice services. This involves actions with offenders up to and including the age of 16 years. These actions include the management of the processes of legal proceedings including consideration of all available options and compliance with statutory requirements, and the diversion of offenders from formal legal proceedings. This also includes the provision of services to give effect to non-court and court disposals directly by the department or indirectly by an approved organisation or individual, including custody, reparation or oversight of the actioning of a family group conference plan or court order. These services are provided under the Children, Young Persons, and their Families Act 1989.

The purpose of the Youth Justice Service is to work with families to ensure that children or young persons who commit offences are held accountable for their actions and encouraged to develop in responsible and socially acceptable ways.

Youth justice family group conferences—youth justice family group conferences empower families/whanau to meet with the enforcement agency and with the victims of offending to make a plan to make reparation for the offending and to modify their behaviour. The conferences are convened by the Youth Justice co-ordinator.

Table 6.11. YOUTH JUSTICE FAMILY GROUP CONFERENCES

 Year ended 30 June 1992

* There may be more than one family group conference held per child or young person for any notification. However, if a family group conference is called together to discuss the welfare of several children or young persons simultaneously, it has been counted as a separate family group conference for each child or young person.

† A family group conference may have one or more disposal outcomes.

Source: Department of Social Welfare.

Referrals by enforcement agency7 068
Referrals by enforcement agency that ended in FGC4 508
Referrals from Youth Court1 407
      Total referrals12 983
FGC plans made and decisions/recommendations accepted5 563
FGC plans made and decisions/recommendations not accepted137
FGCs that did not reach agreement178
FGCs with outcome not specified1 072
      Total Youth Justice FGCs held*6 950
Reconvened FGCs116
FGCs where one or more victims attended2 418
Youth Justice Family Group Conference disposals
Prosecution in Youth Court562
Police warning45
Formal police caution73
Referral to care and protection system67
Reparation1 959
Verbal apology1 663
Work for victim360
Written apology1 904
FGC community work2 739
Other3 418
No further action161
      Total Youth Justice FGC disposals12 951

Residential care services—for serious youth justice and care and protection cases the department provides residential care services in Auckland at Weymouth Residential Centre in Wellington at Epuni Youth Centre in Christchurch at Kingslea Residential Centre and in the Dunedin Residential Centre. These facilities are used for care and protection services provided under agreements, warrants, orders and High Court wardships, and for youth justice custodial services which include supervision with residence, custodial services on behalf of the Department of Justice, and custodial care following arrest and pending hearing.

Table 6.12. ADMISSIONS* TO DEPARTMENTAL RESIDENCES

 Year ended 31 December
1988198919901991

* These figures include admissions for both Care and Protection and Youth Justice children and young people. They include some readmissions following court or family group conference attendances, but exclude court appearances for applications for continued detention in secure care.

† Subsidiary information for 1991. Admissions to secure care (801); number of individuals admitted to secure care (301).

Source: Department of Social Welfare.

Admissions2 7121 7891 099924
Number of individuals admitted1 9781 295647488

Adoption Services. This contains actions under the Adoption Act 1955, and other agreements in the case of inter-country adoption, including counselling of birth parents, assessment of applicants and approval of placements, and reporting to court. It also includes the provision of post placement information and mediation to adoptees and birth parents, under the Adult Adoption Information Act 1985.

Adoption placement services—the Department of Social Welfare is involved in assessment of adoptive applicants, counselling birth parents, approving and monitoring placements, and making recommendations to the court. In some instances the role consists of monitoring placements after a request originating from the Family Court. These requests usually are related to step-parent adoptions or privately arranged placements.

Table 6.13. CHILDREN PLACED FOR ADOPTION

 Year ended 31 December
1988198919901991
Source: Department of Social Welfare.
Final adoption orders made1 005889906806
Adoptions handled by/reported to DSW:
Adoptions by—
Strangers254191223198
One parent and spouse372285299319
Relative or close friend241187187180
      Total867663709697

The long term trend for adoptions has been a gradual decline in numbers. This is in part due to a decline in the birth rate and in part due to a wider range of socially acceptable options becoming available to birth mothers.

Post adoption information services—under the Adult Adoption Information Act 1985 provision is made for adult adopted persons and their birth parents to obtain identifying information, counselling and support.

Table 6.14. ADULT ADOPTION INFORMATION ACT 1985, SERVICES

 Year ended 31 December
1988198919901991
Source: Department of Social Welfare.
Birth parents and adopted persons placing vetos1381007485
Birth parents requesting identifying information672587521416
Applications for a copy of original birth certificate2 2551 9161 7951 753

Despite an initial high number of requests in 1986 and 1987 the numbers have remained steady. In future the demand is expected to fall because the majority of adopted people and birth parents likely to apply have already done so. There has been a decline in the number of adoptions in general and the practice of making ‘open’ adoptions means many more birth parents have mainatained a relationship with the child.

Social Policy Agency

The Social Policy Agency of the Department of Social Welfare came into existence on 1 May 1992. The agency exists to provide excellent policy advice which contributes to well-informed government decisions on social policy. Advice and services are provided to the Ministers of Social Welfare, War Pensions and Senior Citizens, and to Cabinet.

The Social Policy Agency consists of five divisions:

  • Income Maintenance—providing advice on the full range of income support and related issues.

  • Social Services—providing policy advice on a wide range of social services policy matters including: child welfare, family violence, disability support services and services for senior citizens.

  • Strategic Policy and Major Projects—providing high quality strategies, and plans for their implementation, on issues which span more than one of the department's operation businesses, are outside existing business areas, or have a wider or longer term focus.

  • Social Policy Information—providing services to the policy units. It assesses the relationship between outputs and outcomes, develops and monitors major cost models, evaluates policies and programmes, analyses information and undertakes primary research.

  • Support Services—providing quality support to the operations of the Social Policy Agency.

Also contained within the Social Policy Agency is the Senior Citizens Unit. This unit provides policy and support to the Minister of Senior Citizens and assists the Minister in advocating on behalf of senior citizens. The agency has a staff of 97 and an annual budget of $8.8 million.

TRITEC

The information technology services of the Department of Social Welfare were consolidated into one business in 1992, TRITEC. The restructuring achieves more focussed accountability for the development and production of information technology services.

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.

STAFF EMPLOYED

In Department of Social Welfare

Contributors

  • 6.1–.2 Department of Social Welfare.

Special articles

Commissioner for Children; National Collective of Independent Women's Refuges.

Further information

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

Statistical Information Report. Department of Social Welfare (annual).

The Year in Review—1992 Department of Social Welfare.

Chapter 7. Health and safety

Fireman in wreckage of school blaze, Hutt Valley.

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.

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. It collects and disseminates information, liaises and consults on health matters, 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 broad functions of the Department of Health are described in more detail in 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 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.

Other health care providers. 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.

Health sector reforms

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 Mowed 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 are taking place over three years. In February 1992, user charges for hospital services were introduced, and the subsidy levels for pharmaceuticals 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.

Two bodies were established in 1991 to manage the health reform process: the Health Reform Directorate and the National Interim Provider Board.

Ministry of Health. The Department of Health will become the Ministry of Health following the passage of the Health and Disability Services Bill. Its functions will be in the following areas: strategic planning; health policy; service review, specification and assessment; regulation and protection; health funding management; health national enterprises. Some of its advisory functions will be assumed by the Public Health Commission, and the National Advisory Committee on Core Health and Disability Support Services.

New health sector organisations. The current health system based on area health boards is now transitional while the health reforms are being implemented. In the 1992–93 financial year general health policy continues to be directed by the Department of Health, with area health boards managing the provision of health services at the community level.

The Public Health Commission and the Regional Health Authorities will be in place by 1 July 1993. Establishment boards for these bodies are working to set up their operating frameworks.

Regional health authorities. Four regional health authorities (RHAs) will purchase health and disability support services for New Zealanders, and manage contracts with health services providers which specify the services provided.

The purchase of primary and secondary health care and disability services will be managed within an integrated budget. The RHAs will contract with organisations such as hospitals, and individuals such as doctors, to purchase health care for all those who need it. The integration of funding will give incentives for effective use of resources. RHAs 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.

Public Heath Commission. The Public Health Commission will advise the Minister of Health on public health matters, monitor the state of public health, identify public health needs, and purchase public health services.

National Advisory Committee on Core Health and Disability Support Services (NACCHDSS). Advice on the core health services which the Government will purchase on behalf of New Zealanders is given by NACCHDSS, which was established in early 1992. The committee's initial role is to do a stock-take of all those health services currently provided through public funding, and to consult with the public in developing policy advice to Government.

Crown Health Enterprises. Crown Health Enterprises will established during 1993. These organisations will supply health services, and may be based on current area health boards, or on other groupings of publicly owned health service providers. Regional health authorities and the Public Health Commission will negotiate contracts with CHEs for health services to be provided.

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, derived from national levels. Special health needs are also considered, through calculations based on socio-economic factors.

In 1992, the Government expanded the ability of boards to charge each other for cross-boundary service provision. From February 1992, boards began receiving revenue from inpatient and outpatient user charges.

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

Item1990–911991–921992–93*

* Vote allocated.

Source: Department of Health.

 $(000)
Hospital and area health boards2,725,2922,703,0812,677,399
Benefits and provider subsidies1,115,7751,140,5691,247,764
Other92,424100,457113,160
            Total3,933,4913,944,1074,038,323

Table 7.2. STAFF EMPLOYED BY AREA HEALTH BOARDS

Staff category19901991

* Estimated.

Source: Department of Health.

Medical3 075.73 235.6
Dietitians150.8140.9
Laboratory technologists (qualified)719.1751.3
Laboratory technologists (unqualified)748.3671.2
Occupational therapists441.4451.0
Occupational therapy assistants173.0153.3
Physiotherapists520.7507.7
Physiotherapy assistants117.2116.9
Radiographers565.7571.4
Scientific officers133.5117.7
Social workers621.8719.9
Nursing staff (qualified)17 448.517 440.6
Nursing staff (unqualified)2 533.42 435.4
Nursing students251.8155.0
Clerical4 700.05 751.0
Other (students, other professional and technical staff)11 72211 533.8

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 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; 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.

Emily Siedeberg, first woman graduate of University of Otago Medical School.

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 1992 was 10 331, with 7170 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 1992 was 1850.

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.

Otago Dental School student Julie Stokes (pictured left) recently won the student competition at the Australian Dental Congress, with a study of the public's gender preferences in dentists. She surveyed the clients of three male and three female dental practices in both Christchurch and Dunedin, and people receiving emergency dental treatment at Christchurch and Dunedin Hospitals, who exercised no choice in the dentist treating them.

The outcome of her study showed most people were satisfied with the treatment they received and were equally satisfied with male and female dentists. Although the majority of people showed no preference for either a male or female dentist, most tended to got to a dentist of their own gender.

Stokes’ study showed that as more women than males went to the dentist, there was a need for more female dentists in the community, and therefore a higher intake of female students in dental school. In 1973, 2.3 percent of dentists were women compared to 12.6 percent in 1990. The total number of female students in the dental school in 1992 was 41 percent, while in the fifth year class 52 percent of students were women.

Also pictured (right) is Angela Pack, associate professor in the peridontology department. When she joined the dental faculty in 1972, she was the first female member of the faculty. Pack has, over the years, explored issues facing women in dentistry, including career patterns versus family patterns and how men accept women into the profession.

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 1992, 44 831 nurses held annual practising certificates.

All registered nurses are now trained through three-year polytechnic courses which lead to registration as a comprehensive nurse. Some polytechnics also conduct midwifery courses. A small number of 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. At 31 March 1992 there were 1166 registered psychologists, with 787 holding annual practising certificates.

Physiotherapists. The New Zealand Physiotherapy Board is constituted under the Physiotherapy Act 1949. The board examines and registers candidates for physiotherapy practice, 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. At 31 March 1992 there were 51 38 registered physiotherapists with 1919 holding annual practising certificates.

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 31 March 1992 there were 2203 registered occupational therapists, with 880 holding annual practising certificates.

WOMEN SPECIALISTS

Percentage

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 31 March 1992 there were 854 registered dietitians with 300 holding annual practising certificates.

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 31 March 1992, there were 602 registered optometrists with 339 holding annual practising certificates and 83 registered dispensing opticians with 51 holding annual practising certificates. Optometrists are trained at the University of Auckland in a four-year full time degree course. Dispensing opticians are trained via a three year correspondence course.

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.

At 31 March 1992 there were 459 registered podiatrists, with 189 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 392 registered chiropractors at 31 March 1992, 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 1992 there were 3420 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 end of September 1992 there were 1080 community pharmacies in New Zealand, employing over 2000 pharmacists. A further 250 to 300 pharmacists were working in hospitals, government departments and the pharmaceutical industry.

Medical radiation technologists. The Medical Radiation Technologists’ Board is constituted under the Medical Auxiliaries Act 1966. The board is concerned with the registration, education and conduct of those practising medical radiation technology. It has representation from the New Zealand Institute of Medical Radiation Technologists (Inc.), the New Zealand Branch of the Royal Australasian College of Radiologists, the New Zealand Branch of the Australasian College of Physical Scientists and Engineers in Medicine, and the Department of Health.

There are five classes of medical radiation technology: diagnostic radiography; radionuclide imaging; therapeutic radiography; ultrasound imaging; and magnetic resonance imaging. As at 22 December 1992 there were 2084 registered practitioners, 1053 of whom hold current practising licences. The training of diagnostic radiographers transferred from a hospital-based programme to a three-year full time polytechnic course in 1992.

Wellington pharmacist busy preparing prescriptions.

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 31 March 1992 there were 2164 full registrations, with 1092 licensed to practise.

Dental Technicians. The Dental Technicians Board is constituted under the Dental Act 1988. It has the responsibility for registering clinical dental technicians and dental technicians. At 31 March 1992 there were 603 registered with 249 practising.

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, and hospital benefits are targeted in three income bands, Groups 1, 2 and 3.

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. 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. All children in Group 3 receive a subsidy of $15 for visits to a general practitioner.

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. Since 1 September 1992 elderly people have received the same subsidy levels as other adults in each of the three groups.

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 referred 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 also subject to an additional manufacturers premium 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 of part charges for all people in Group 1 and those people who are considered to be high users of health care.

Inpatients in Group 2 contribute $35 per night for a maximum of 10 nights each year per family. Inpatients in Group 3 contribute $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. 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 ante-natal 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.

Women may 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.

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 services 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 7.3. EXPENDITURE ON HEALTH BENEFITS

Item1988–891989–901990–911991–92
Source: Department of Health.
 $(000)
Approved institutions4,4824,5924,5064,499
Artificial aids1,2501,5841,7722,719
Pharmaceutical benefits549,382517,247545,331556,373
Primary services154,523235,390292,154287,557
Private hospital services48,59850,54251,89055,733
Provider subsidies3,4263,8623,1573,081
Referral services89,702102,820109,873110,219
Geriatric hospital patient assistance69,04188,587107,092120,388
 920,4041,004,6241,115,7751,140,569

7.3 Public health

Environmental health

A major function of local government is the promotion and conservation of public health. Each local authority appoints environmental health officers to carry out regular inspections and take action on 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 from small industries. 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, air quality surveillance, 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 health protection 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 the Police have maintained the National Drug Intelligence Bureau since 1972.

Communicable disease control

The Department of Health monitors data on disease incidence and prevalence, and on immunisation coverage and efficacy to enable programme planning and technical support for policy development, and the fulfilment of international disease reporting requirements. It also manages the purchase of vaccine to meet the requirements of the immunisation schedule, the national co-ordination of responses to disease outbreaks and management of immunisation programmes. Immunisation and the control and notification of communicable diseases are undertaken by a range of health service providers.

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

The focus of services for older people is assessment and rehabilitation, and continuing care. In the past, funding for these services has been provided through Area Health Boards, the Department of Health and the Department of Social Welfare. From 1 July 1993 the funding will be integrated into one budget under Regional Health Authorities, who will purchase services for older people from public and private providers.

Until now most of the funding for long term services for older people has been spent on hospital and rest home care. The integration of funding through Regional Health Authorities will promote the development of more flexible and comprehensive services and the extension of assessment and rehabilitation services. Home support development includes more support for informal caregivers and more flexible arrangements for daycare and respite care. The extension of assessment and rehabilitation services is recognised as the key to matching needs with appropriate services.

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. The health vote funds, through a variety of contracts and other agreements, a wide range of independent service providers and related organisations. This includes, among others, the Royal Plunket Society, the New Zealand Family Planning Association, and the New Zealand AIDS Foundation. The Department of Health has worked with these and other contracted providers to improve their accountability for the services they supply to the community.

Mental health

The Mental Health (Compulsory Assessment and Treatment) Act 1992 was passed in June 1992. It replaces the Mental Health Act 1969. The new legislation is designed to enhance patients’ treatment and rights. It includes a new definition of “mental disorder,” provision for community treatment orders and more comprehensive procedures for review and appeal. It comes into effect from 1 November 1992. Other initiatives have included:

  • Production of HOMES, a system for monitoring and evaluating community homes. This is an aid to registration and improving standards of care in community residential facilities.

  • Development of a costing methodology for psychiatric/psychopaedic hospitals. This provides a means of preparing a detailed financial plan for deinstitutionalisation or other changes in service provision.

  • “Report of a Taskforce on Quality Assurance in Mental Health Services, July 1991”. Following the recommendations of the taskforce a resource team has been established, workshops held, a resource manual produced and a quarterly newsletter has been introduced.

  • “Report of a Working Party on the Management of High Risk Mentally Ill Patients, October 1991”. A series of initiatives have arisen from this including a project on the provision of maximum secure facilities in New Zealand.

Forensic psychiatry applies to people who come to notice through the criminal justice system. Following the Mason Committee recommendations (1988) forensic psychiatry services have continued to advance. There are now six regional forensic teams and three of the seven proposed medium secure units have been commissioned. A working party is continuing to oversee forensic psychiatry developments until the full range of services is in place throughout New Zealand.

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.

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 is not limited to services associated with childbearing and reproduction.

Consideration of women's health issues takes into account barriers women face in accessing health services and the provision of services that are appropriate to the needs of women. Specific groups of women such as Maori women, adolescent women and older women have particular health needs that should be catered for in health planning.

Safe-sex campaigner, Ettie Rout (centre, without hat) and members of the Volunteer Sisterhood.

The Department of Health (Ministry of Health from 1 July 1993) provides policy advice to the Minister of Health on current issues concerning women's health. Those issues include contraception, infertility, pregnancy and childbirth services, terminations, breast cancer detection and cervical screening. Two breast screening pilot programmes have been established to assess the effectiveness and acceptability of mammography screening in New Zealand.

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 aged 20 to 69 years, and by 10 percent or more in Pacific Island and pakeha women aged 20 to 69 years.

  • 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 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 also 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.

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 7.4. CHILDREN'S PUBLIC HOSPITAL DISCHARGE RATES PER 1000 MEAN POPULATION, 1991*

PopulationAge group (years)
Under 11–45–910–14

* Includes deaths in hospital.

Source: Department of Health.

Maori1 105.2334.9108.179.9
Non-Maori491.1130.462.946.0
       Total562.0154.968.850.3

Laboratory scientist prepares a tray of blood for hepatitis C testing.

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 7.5. 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
12–15 monthsMMR§
 Hepatitis B
18 monthsDouble (DT)
 Poliomyelitis
5 yearsPoliomyelitis
Form 1 girlsRubella
15 yearsTetanus

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.

Smoking. Over 4000 deaths in 1989 were estimated to be due to the smoking of cigarettes, comprising 79 percent of all drug deaths. Over 250 deaths per year are estimated to be due to passive smoking. As of 1989, lung cancer incidence rates in middle-age were declining in men but still rising in women. At age 25–44 years lung cancer rates in women were higher than in men.

Tobacco products consumption per adult in 1991 fell 8.4 percent below the 1990 level to a 71–year low of 1791 cigarette equivalents per adult, among the lowest for developed countries.

Doorstep surveys of 10 000 persons during 1991 showed that 26 percent of adults (27 percent of men and 25 percent of women), 31 percent of 15 to 24 year-olds, and 50 percent of Maori regularly smoked either manufactured or hand-rolled cigarettes.

Expenditure on mass media tobacco advertising reduced 80 percent after the Smoke-free Environments Act took effect in December 1990, although some sponsorships are still permitted. No prosecutions were taken in 1991 under the Smoke-free Environments Act 1990. At ordinary wage rates before tax, to earn 20 manufactured cigarettes required 21 minutes work in 1960, 10 minutes in 1980, 18 minutes in 1990, and 19 minutes in 1991.

TOBACCO CONSUMPTION

Annual per capita consumption of tobacco products

Alcohol

In New Zealand the excessive consumption of alcohol is a major personal and public health issue. A major survey in 1990 found that 84 percent of the population aged 15—45 years had consumed alcohol in the last year. Most people consumed about four to five drinks a week in a safe and responsible manner. Within the group surveyed as having consumed alcohol in the last year, the drinking patterns for men and women are different, as shown in the following table:

Table 7.6. DRINKING PATTERNS

CategoryFemale drinkersAlcohol consumed by womenMale drinkersAlcohol consumed by men
Source: Alcohol Research Unit, Auckland University.
 Percentage
Frequent at home drinkers30481226
Young heavy drinkers12302036
Very young heavy drinkers2526
Light drinkers38115928
Light drinkers decreasing consumption186
Spirit drinkers decreasing consumption74

ALCOHOL CONSUMPTION

Average annual consumption of absolute alcohol by population over 15 years

Smoking and alcohol have become major public health issues for women.

The production of alcohol for consumption in New Zealand has continued to fall since 1978. The largest decrease has been for spirits which have dropped from 15.8 million litres in 1979 to 10.9 million litres in 1992 (a reduction of 31 percent). The amount of beer available for consumption has decreased by 9 percent between 1978 and 1992. The amount of wine available for consumption increased by 18.7 percent between 1990 and 1991 probably due in part to the greater stock held by an increased number of outlets provided for under the new Sale of Liquor Act, 1989. The amount of wine available for consumption has since decreased by 5.1 percent between 1991 and 1992 to 55.3 million litres, still slightly up on the previous peak of 54.7 million litres in 1986.

Alcohol is not the only drug that people use. A 1990 survey of drug use in New Zealand revealed that the most common pattern was for people to have used alcohol, tobacco and cannabis (33 percent). An equal percentage had used alcohol and tobacco or alcohol alone (23 percent) and a small number used alcohol and cannabis (8 percent).

In 1989, 758 deaths were recorded as attributable to the use of alcohol; 20 percent of all drug related deaths. Tobacco was the principle cause of 79 percent of these deaths. In 1990 alcohol was a factor in 44.5 percent of the 638 fatal road crashes.

Policy advice and co-ordination of health promotion and treatment services is provided by the Department of Health, the Alcohol Advisory Council of New Zealand (ALAC) and the New Zealand Drug Foundation. During 1991 ALAC was reviewed and it was agreed that its primary goal should be promotion of moderation in the use of alcohol and the development and promotion of strategies which will reduce alcohol related problems.

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. In 1990, 2337 people were admitted to a gazetted treatment centre and about 9000 new-to-agency patients received outpatient treatment for alcohol use disorders. The cost of these treatment services was about $30 million of which $22 million was funded through the Department of Health.

In the health promotion area, ALAC funds mass media advertising to raise the level of awareness of alcohol-related problems, and is the lead organisation in encouraging host responsibility both on licensed premises and at private functions. 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.

Dental therapists, 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 dental therapists. 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.

New Zealand Health Information Service

The Department of Health through the New Zealand Health Information Service (NZHIS) has now commenced the development of a national health information service designed to provide health professionals with the information they need to care for their patients, and to provide health care funding agencies, planners and administrators with the information they required to manage the health service.

Up to 1992, the majority of these services were provided by Health Statistical Services, Health Research Services and Health Information Management within the Department of Health. By 1 July 1993 the NZHIS will be established and will focus on the following:

Information network and core system. A network of information services will be developed and accessible to health service and health care providers throughout the country. It is planned that all public hospitals and regional health authorities will be able to link into these networks from 1 July 1993. The network will be extended to other health care providers from 1 January 1994. The Department of Health will develop this service in consultation with health care purchasers and providers.

National minimum database. The NMDS will provide basic data describing the services used by health care consumers, and will indicate what services have been delivered, when, where and why. Information in this database will be used to provide analyses of trends in health status, use of services, and patterns of morbidity.

Documentary databases. In addition to the core services outlined, the NZHIS will also provide users with access through a documentary database service to a range of other health information, including information held on MEDLINE (United States national library of medicine).

Standards. A crucial role that the NZHIS will have is the development and monitoring of standards for information in the health sector. Work has already been carried out to quality assure statistical information provided by area health boards, and to develop a range of suitable information technology standards covering the exchange of information in the health sector.

Publications. The NZHIS will collect, analyse and disseminate national health information. The information is currently based on statistical collections of mortality, hospital inpatient morbidity and other institutional based data. In future the range of information will be extended to include data from health surveys and information provided by the primary healthcare sector.

Information is traditionally presented in a series of annual reports of Hospital and Selected Morbidity Data, Mental Health Data, Cancer Data, Mortality and Demographic Data, Fetal and Infant Death Data.

Successful efforts have been made to reduce backlogs with the result that Hospital Morbidity Data for the first quarter of 1992 was released in August 1992. Significant improvements in timeliness have also been recorded in the dates of other publications.

A new series of two-page fact sheets, called Health Points, dealing with selected health topics, was launched in August 1992. The first four issues of Health Points are:

  • “An Introduction to Diagnosis Related Groups”.

  • “Suicide and Self Inflicted Injury”.

  • “Unintentional Injuries in New Zealand”.

  • “Motor Vehicle Crashes in New Zealand”.

The New Zealand Health Information Service will also offer consultancy, advisory, customised data extraction and analysis services on a cost-recovery basis.

Research and analytical services. This section undertakes operational research for the Department of Health and the Minister. It also undertakes research for the wider health sector. The section 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 section is used to:

  • Support policy development.

  • Evaluate area health board, government and community health services and initiatives.

  • Inform decision-makers of recent trends and issues in health.

The results of work carried out by the section are published in a variety of forms to suit client needs. Recent publications include: Kia Piki te Ora (The Collection of Maori Health Statistics); HIV/AIDS and Prisons; and Infertility.

Health Research Council of New Zealand. The Health Research Council of New Zealand was constituted as a body corporate by the Health Research Council Act 1990. The mission of the council is to improve human health by promoting and funding health research. Research funded by council covers a spectrum stretching from basic biomedical research to applied public health research. The HRC Act requires the council to pay particular attention to health issues that affect Maori people and to ethical issues in relation to health research. 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.

  • 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 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.

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 82 percent of deaths registered in 1990, and 18 percent were certified by coroners. Of the deaths certified by doctors, 4 percent were subject to autopsy, compared with 54 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 7.7. MAJOR CAUSES OF DEATH*

Cause of deathNumber of deathsRate per million of Mean population.
198819891990198819891990

* Further details of causes of death are available from Health Statistical Services.

Source: Health Statistical Services.

Malignant neoplasm6 4816 6316 7281 9491 9831 991
Diabetes mellitus397450411119135133
Chronic rheumatic heart disease155118126473537
Hypertensive disease259215184786454
Ischaemic heart disease7 2527 0356 8022 1812 1042 013
Other forms of heart disease1 0971 0371 096330310324
Cerebrovascular disease2 6932 6692 599810798769
Disease of arteries, arterioles, and capillaries642609632193182187
Pneumonia1 3621 165975410348289
Bronchitis, emphysema, and asthma611601454184180134
Other diseases of respiratory system1,1631 1711 180350350349
Peptic ulcer223214203676460
Cirrhosis of liver113107109343232
Nephritis, nephrotic syndrome and nephrosis208211249636374
Congenital anomalies268208187816255
Birth injury, difficult labour, other anoxic and hypoxic conditions, and other causes of perinatal mortality160173172485251
All other diseases2 4042 4422 398722730710
Motor vehicle accidents743799762223239225
All other accidents596624606179187179
Suicide and self-inflicted injury484465455146139135
All other external causes76100109293032
            Total, all causes of death27 40727 04426 4378 2418 0897 823

Ischaemic heart disease, malignant neoplasms (cancer), and cerebrovascular disease were again the leading causes of death in 1990 (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 25 percent, and cerebrovascular disease for 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 100 000 population

Cancer. In New Zealand in 1990 one death in four was caused by cancer.

Table 7.8. DEATHS FROM CANCER, 1990

Age groups, in yearsMalesFemales
NumberRate per 100 000 of population at ages givenPercentage of total deaths at ages givenNumberRate per 100 000 of population at ages givenPercentage of total deaths at ages given
Source: Health Statistical Services.
Under 51812.94.664.61.8
5–1493.511.8104.020.8
15–24175.83.3134.67.9
25–4413927.116.220639.643.1
45–64962306.634.6921298.349.6
65 and over2 3921 544.92172 035951.521.1
            All ages3537211.625.43 191186.925.5

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-five percent of deaths from cancer during 1990 were at 45 years of age or above, and 68 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 1990 were caused by lung cancer. The breasts are the major cancer site in females and accounted for 5 percent of all female deaths.

Table 7.9. DEATHS FROM CANCER AT SELECTED SITES

SiteSexNumberRates per million mean population
198819891990198819891990
Source: Health Statistical Services.
Buccal cavity and pharynxM818867495340
 F343730202218
OesophagusM104114110636966
 F715467423239
StomachM185180186112109111
 F124132116747868
Large intestineM281306321171185192
 F374379366223224214
RectumM184219192112132115
 F123160140739582
Bronchus, trachea, and lungM892896901542542539
 F395411433235243254
BreastM638425
 F593605633353358371
Cervix uteriF9985100595059
Corpus uteriF505166303039
Ovary, fallopian tube, and broad ligamentF1431521818590106
ProstateM402425436244257261
Bladder and other urinary organsM17618916510711499
 F106100103635960
Skin, all formsM134123115817469
 F858172514842
BrainM1017695614657
 F635968383540
Lymphosarcoma and reticulum-cell sarcomaM222021131213
 F202317121410
LeukaemiaM142136120868272
 F8110595486256
All other and unspecified sitesM734720808446435483
 F650705704387417412
            Total cancer deathsM344434923537209121122116
 F303731393191180918581869

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 five births.

INFANT MORTALITY

Deaths of infants under 1 year

Table 7.1. MAORI AND NON-MAORI PERINATAL MORTALITY RATES, 1990*

Category of deathMaoriNon-MaoriTotal population
NumberRateNumberRateNumberRate

* Per 1000 total births (stillbirths plus live births).

Source: Health Statistical Services.

Late foetal273.92234.22504.1
Early neonatal334.71623.01953.2
Perinatal679.64378.25048.3
Neonatal405.72154.02554.2
Post-neonatal7410.61793.42534.2
Infant11516.53947.45098.4

Table 7.11. 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

The principal causes of infant mortality are shown in Table 7.12. 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 7.12. PRINCIPAL CAUSES OF INFANT MORTALITY FOR MAORI AND NON-MAORI 1990

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 diseases20.350.170.1
Malignant neoplasm10.0210.02
Diseases of the nervous system10.160.170.1
Diseases of the circulatory system10.330.0640.07
Diseases of the respiratory system101.470.1170.3
Diseases of the digestive system40.0840.07
Congenital anomalies172.41011.91182.0
Perinatal causes—
      Birth injury20.3120.2140.2
      Respiratory distress syndrome91.3380.7470.8
      Other anoxic and hypoxic conditions10.1140.3150.2
      Immaturity60.9220.4280.5
      Other perinatal causes81.2561.1641.1
Sudden infant death syndrome537.61102.11632.7
Accidents, poisonings, and violence (external causes)30.4100.2130.2
Remainder (all other causes)10.140.0850.08
            Total, all infant deaths under one year11416.43937.445078.4

Premature babies’ chances of life are now increased by the introduction of artificial surfactant, the miracle drug of the decade for neo-natal care. It helps premature babies to breathe, allowing them to come off ventilators earlier, so lessening the chances of complications. US studies suggest artificial surfactant can reduce deaths among premature babies by 40 to 43 percent. This baby was born three months premature and weighed 780 grams at birth.

Maternal deaths. Maternal deaths from complications of pregnancy, childbirth and the puerperium totalled 9 in 1990, with a rate of 1.5 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 7.13. ABORTIONS ACCORDING TO AGE GROUP

Age group198919901991P
PercentageNumberPercentageNumberPercentageNumber
Source: Abortion Supervisory Committee.
11
1230.034
130.0660.190.067
140.43440.4490.2832
151.261291.31491.33154
163.053112.52852.78322
174.664754.34844.30499
185.475585.66275.11592
195.665776.16816.16715
20–2429.503 00929.53 29029.703 443
25–2924.062 45423.22 58322.322 587
30–3414.881,51815.81 76615.911 844
35–398.048208.69549.331 082
40–442.812872.42782.57298
45 and over0.12120.1150.1315
            Total100.0010200100.0011 173100.0011 594

Table 7.14. GROUNDS ON WHICH ABORTIONS WERE AUTHORISED

Grounds19871988198919901991P
Source: Abortion Supervisory Committee.
Serious danger to physical health3416222621
Serious danger to mental health8 5729 8059 91110 88711 321
Combination of serious danger to physical and mental health86102107126100
Substantial risk of abnormal child3942354466
Incest1
Offence under s. 131 Crimes Act1
Woman severely subnormal1111
Serious danger to mental health and risk of abnormal child55671218378
Serious danger to physical and mental health and substantial risk of abnormal child4233
Serious danger to mental health and offence under s. 131 Crimes Act221
Serious danger to mental health and woman severely subnormal11
Danger to mental, physical health and woman severely subnormal
Other multiple grounds1422
            Total8 78910 04410 20011 17311 594
Factors of alleged rape taken into account8583836656

Table 7.15. 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.

Source: Abortion Supervisory Committee.

New Zealand1,9913.414.4191161
Canada1,9883.816.2253202
Denmark1,9904.018.2325245
England and Wales1,9903.415.6243195
France1,9882.913.1211173
Germany1,9881.46.3124110
Japan1,9884.018.2370270
Netherlands (residents only)1,9881.25.19688
Norway1,9903.716.7255203
Scotland1,9882.19.7169145
Sweden1,9904.421.3302232
United States1,9886.527.3404288

7.4 Hospitals

Hospital and community health administration

During 1992–93, New Zealand's public hospitals and hospital based services will continue to be administered by area health boards. Each area health board has a commissioner who is responsible for ensuring that a high quality of service is maintained in the area.

1992–93 is a transition year for the country's 14 area health boards. A Crown Health Enterprise Advisory Committee (CHEAC) has been established for each of the existing area health boards. CHEACs will be looking at how best to form Crown Health Enterprises (CHEs) which, from 1 July 1993, will be responsible for providing health services in the reformed health environment. CHEs will be formed around existing large hospitals and the comprehensive range of services area health boards currently provide. These new provider bodies will assume responsibility for the management of publicly-owned hospitals.

CHEs will be expected to compete with other health care providers for contracts from the regional health authorities (RHAs). With the Public Health Commission, the four RHAs will be the country's health care purchasing organisations. They will begin operations from 1 July 1993.

During 1992–93 the Department of Health will continue 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. 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.

Hospital part-charges were introduced on 1 February 1992. These apply to a range of inpatient and outpatient services and are targeted according to income (see 7.2, Hospital benefits). Services which are exempt from user part-charges include maternity, mental health and accident services, and geriatric inpatient services.

Hospital accommodation

Public hospitals. At 30 June 1992 public hospitals provided 18 823 beds throughout New Zealand.

A total of 468 358 inpatient and long-stay admissions to public hospitals was recorded for the year ended 30 June 1992. This figure, which included people in surgical, medical, maternity, and psychiatric beds and non-hospital beds in old people's homes, was equivalent to 13.6 percent of the population. The 1990–91 figure was 471 471.

Outpatient and daypatient attendances (excluding X-ray, laboratory and pharmacy diagnostic services) at public hospitals totalled 2 337 583 and 294 552 respectively for the year ended 30 June 1992, compared with 3 429 358 and 289 158 in 1991.

HOSPITAL BEDS

Public and private hospitals

Table 7.16. BEDS IN PUBLIC INSTITUTIONS, 1992*

Type of bedBeds available
NumberProportion per 1000 of population

* Year ended 30 June.

Source: Health Statistical Services.

General13 7844.0
Maternity1 5180.4
Psychiatric and intellectually handicapped3 5211.0
            Total hospital beds18 8235.5

Private hospitals. At 31 March 1992 the 200 licensed private hospitals provided a total of 7149 beds.

Table 7.17. PRIVATE HOSPITAL BEDS*

Type of hospitalNumber of hospitalsLicensed beds
199019911992199019911992

* As at 31 March.

† Several hospitals have more than one type of service.

Source: Health Statistical Services.

Maternity123313644
Short stay medical, hospices and surgical4042451 3281 3961 439
Geriatric and long stay medical1421471625 2385 5315 666
            Total183191200659769637149

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 7.19 shows the principal diseases and injuries treated in public hospitals in 1991, 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.

Pulse oximeter being used in treatment at Wellington Hospital's intensive care unit.

Length of stay in public hospitals. The average length of stay in public hospitals in 1991 was 8.9 days. Among sufferers from specified diseases, the longest average stays were made by those with psychoses (51.8 days), cerebrovascular disease (49.3 days) other diseases of the nervous system (36.8 days).

Table 7.18. AGE AND SEX OF INPATIENTS ADMITTED TO PUBLIC HOSPITALS, 1991*

Age groupMalesFemalesTotal

* Year ended 31 December.

Source: Health Statistical Services.

  0–430 37823 34953 727
  5–97 1525 17012 322
10–145 9974 57910 576
15–197 99814 64822 646
20–248 62928 66737 296
25–297 42036 86544 285
30–347 23429 25636 490
35–396 37014 79721 167
40–446 3439 06315 406
45–496 0487 00213 050
50–547 0167 09214 108
55–598 2296 80315 032
60–6411,2838 79320 076
65–6913 05910 44923 508
70–7412 56211 38123 943
75–7911 59612 37023 966
80–847 71010 03817 748
85 and over5 0428 92713 969
            Total170 066249 249419 315

Table 7.19. DISEASES AND CONDITIONS TREATED IN PUBLIC HOSPITALS (INCLUDING RE-ADMISSIONS, EXCLUDING DAY CASES) DURING 1991

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 8401.63.3
Tuberculosis3710.113.1
Malignant neoplasms*24 2155.89.9
Benign neoplasms3 7710.96.5
Disorders of thyroid gland4690.116.3
Diabetes mellitus3 2290.813.4
Other endocrine, nutritional, metabolic and immunity disorders1 8510.412.1
Diseases of blood and blood-forming organs2 5020.67.0
Psychoses5 2061.251.8
Other mental disorders4 1931.017.4
Disorders of the eye and adnexa6 1721.53.0
Diseases of ear and mastoid process3 4520.82.4
Other diseases of the nervous system6 0671.436.8
Acute rheumatic fever and chronic rheumatic heart disease6200.115.2
Ischaemic heart disease15 5653.78.5
Hypertensive disease and other forms of heart disease10 7402.610.3
Cerebrovascular disease7 5881.849.3
Diseases of arteries, arterioles and capillaries3 6880.912.9
Other diseases of circulatory system4 9221.26.8
Acute respiratory infections and influenza6 5001.63.1
Pneumonia5 0831.216.4
Chronic obstructive pulmonary disease and allied conditions13 8063.36.7
Chronic disease of tonsils and adenoids3 7990.92.0
Other diseases of respiratory system4 9361.211.7
Diseases of oral cavity, salivary glands and jaws1 6170.42.3
Diseases of oesophagus, stomach and duodenum3 7350.97.1
Appendicitis3 6740.94.4
Hernia of abdominal cavity4 3411.03.8
Non-infective enteritis and colitis and other diseases of intestines and peritoneum8 8662.17.0
Other diseases of digestive system6 4671.57.6
Diseases of urinary system6 8971.67.0
Diseases of male genital organs3 6510.95.2
Diseases of breast and inflammatory disease of female pelvic organs2 6790.63.2
Other disorders of female genital tract7 2991.74.1
Pregnancy and complications of pregnancy, childbirth and the puerperium (except abortion)68 47516.35.2
Pregnancy with abortive outcome6 1641.52.0
Diseases of skin and subcutaneous tissue6 0791.47.7
Arthropathies and related disorders, dorsopathies and rheumatism except rheumatic fever14 6543.510.3
Osteopathies, chondropathies and acquired musculoskeletal deformities2 1820.512.2
Congenital anomalies5 0361.28.0
Certain conditions originating in the perinatal period10 5462.59.9
Symptoms, signs and ill-defined conditions22 3715.35.2
Fractures19 1524.611.5
Dislocations, sprains and strains of joints and adjacent muscles2 1160.54.4
Intracranial injury (except skull fracture)5 1471.24.4
Laceration and open wound6 0421.44.2
Burns1 0920.310.7
Poisoning by drugs, medicaments and non-medicinal substances2 9090.73.7
Other injuries and adverse effects, and late effects of injuries15 4173.78.6
Special admissions without current complaint or reported diagnosis and for elective procedures37 0368.86.2
            All conditions419 315100.08.9

Injury cases. During 1991 the four largest categories of injury 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’. More than one in four patients had been injured in a fall of some kind.

Table 7.2. INJURY CASES TREATED AS INPATIENTS IN PUBLIC HOSPITALS (INCLUDING READMISSIONS), 1991*

Cause of injuryTotal casesPercentage of all injury cases

* Year ended 31 December.

Source: Health Statistical Services.

Transport—
      Railway19
      Motor-vehicle traffic7 21712.4
      Motor-vehicle non-traffic7251.2
      Other road vehicles1 7423.0
      Water1900.3
      Air880.2
      Vehicle accidents not elsewhere classifiable17
            Subtotal, transport9 99817.2
Non-transport—
      Accidental poisoning8041.4
      Accidental falls15 78427.2
Surgical and medical complications and misadventures9 92917.1
Other accidents11 27819.4
Late effects of accidental injury4 0577.0
Adverse effects of drugs, medicaments, and biological substances1 8453.2
Suicide and self inflicted injury2 1843.8
Homicide and injury purposely inflicted by other persons2 0413.5
Legal intervention by police17--
Injury undetermined whether accidentally or purposely inflicted1290.2
Injury resulting from operations of war4--
            Subtotal, non-transport48 07282.8
            Total58 070100.0

New state-of-the-art $2 million CT scanner at Wellington Hospital.

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 7.21 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 7.21. INPATIENTS IN PUBLIC HOSPITALS AFTER ACCIDENTS AT HOME, 1991*

Cause of accidentTotal patients

* Year ended 31 December.

Source: Health Statistical Services.

Accidental poisoning by—
      Drugs and medicaments673
      Petroleum products and other solvents71
      Agricultural and horticultural preparations other than plant foods or fertilisers59
      Noxious foodstuffs and poisonous plants57
      Other solid and liquid substances146
      Gases and vapours14
Accidental falls7 219
Struck by falling objects109
Accidents caused by cutting and piercing instruments1 613
Accidental burns160
Accidents caused by foreign bodies509
All other and unspecified accidents2 336
            Total12 966

For further accident statistics, see section 7.5, Accidents.

Psychiatric hospitals and hospitals for the intellectually handicapped

In 1990, 11 psychiatric hospitals and five hospitals for the intellectually handicapped were controlled by area health boards. Ashburn Hall is the only privately administered psychiatric hospital. 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.

The Mental Health (Compulsory Assessment and Treatment) Act 1992 which came into effect on 1 November 1992 removes 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 7.22. PSYCHIATRIC AND INTELLECTUALLY HANDICAPPED PATIENTS: NUMBERS AND RATES*

Year ended 31 DecemberPatients in psychiatric hospitals and hospitals for the intellectually handicappedPatients in psychiatric units of public hospitals
Average number residentRateAverage number on leaveRateAverage number totalRateAverage number residentRate

* Per 100 000 mean population. Year ended 31 December.

† Refers only to committed and special patients.

‡ Collection of this data was discontinued in 1988.

Source: Health Statistical Services.

1,9866 170188.21 83756.08 007244.22999.1
1,9875 788174.91 68651.07 474225.12788.4
1,9885 382161.81 68750.77 474224.72788.3
1,9895 672169.7      
1,9904 756140.7      

Table 7.23. 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.

1986—
      Maori921653324412862122220
      Non-Maori1510922816311798146129
1987—
      Maori1517039325311710351180
      Non-Maori1311121814912798149127
1988—
      Maori521048827517013190218
      Non-Maori10108222159127103151129
1989—
      Maori121794442601539192197
      Non-Maori119522515712995133124
1990—
      Maori1216549633829215637230
      Non-Maori788240213165140136142

Admissions. The total number of admissions to psychiatric care during 1990 was 14 611. This total was made up of 5072 first admissions, and 9539 readmissions. Included in the readmission figure were 1395 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 1990, 82 percent of first admissions and 79 percent of readmissions were on an informal (voluntary) basis. Table 7.25 shows that the two leading diagnostic reasons for entering inpatient care for all psychiatric admissions were schizophrenic psychoses and affective psychoses.

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 1990 there were 14 697 discharges from psychiatric hospitals and hospitals for the intellectually handicapped, psychiatric units of public hospitals and institutions treating alcoholism and drug addiction. Of these, 8508 were discharged from psychiatric hospitals, 163 from hospitals for the intellectually handicapped, 5007 from public hospital psychiatric units, and 1219 from institutions licensed under the Alcoholism and Drug Addiction Act 1966.

Approximately six out of every eight patients leaving hospital in 1990 had a stay of less than 30 days.

Table 7.24. DISCHARGES FROM PSYCHIATRIC HOSPITALS, 1990*

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 conditions27333619263
Alcoholic psychoses6481716253517
Drug psychoses135254072616
Other organic psychotic conditions13612436140
Schizophrenic psychoses2 2211341 0252393626
Affective psychoses2 482455161151633
Paranoid states1411385680432
Other psychoses384589762514
Neurotic depression and other depressive disorders1 0673558116625
Other neurotic disorders271451521328
Alcohol dependence or abuse2 0625014692614
Drug dependence or abuse9552532711022
Other personality disorders676861102522217
Stress and adjustment reactions709652265114
Non-psychotic disorders of childhood and adolescence1442
Non-psychotic mental disorders following brain damage4318928133
Psychological malfunction due to mental factors2227
Mental retardation3442 2811002 332311
No psychiatric diagnosis13225153011318
            Total12 1311392 33126822521

Table 7.25. PSYCHIATRIC HOSPITAL DIAGNOSES, 1990*

DiagnosisTotalsFirst admissionsReadmissionsReplacements from leave

* Year ended 31 December.

Source: Health Statistical Services.

Senile and pre-senile organic psychotic conditions286204784
Alcoholic psychoses80373211
Drug psychoses1755310319
Other organic psychotic conditions171708021
Schizophrenic psychoses3 2734752 124674
Affective psychoses2 9497141 915320
Paranoid states195839616
Other psychoses50820825248
Neurotic depression and other depressive disorders1 13256353435
Other neurotic disorders2971581336
Alcohol dependence or abuse2 2579951 21646
Drug dependence or abuse95346946816
Other personality disorders74225242763
Stress and adjustment reactions72446824412
Non-psychotic disorders of childhood and adolescence161051
Non-psychotic mental disorders following brain damage61212515
Conditions associated with physical disorders21912
Mental retardation3286019573
No psychiatric diagnoses44322320515
            Total, all cases14 6115 0728 1441 395

Deaths. In 1990 there were 251 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 250 in 1989.

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. It has a head office in Wellington, with district and branch offices throughout New Zealand. Its main functions are described below:

Injury prevention—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.

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 7.26. ACCIDENT COMPENSATION CLAIMS RECEIVED

Claims*Year ended 31 March
19881989199019911992

* Not all claims result in compensation being paid—particularly those made to protect the claimant's entitlement to compensation for any future incapacity.

† Year ended 30 June.

Source: Accident Compensation Corporation.

   number (000)  
Earners' Account105x112x118128119
Motor Vehicle Account21x19x202119
Supplementary Account35x40x475565
            Total claims161x171x185204203
Percentage annual change−10.6x6.2x8.210.3−0.5

Accident and rescue services at site of car crash.

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.);

  3. General taxation, which pays for other claims through the Crown Bank Account; and

  4. Earner Premium to cover accidents that are not work or motor vehicle related.

The scheme has been subject to review over several years and the Government introduced the Accident Rehabilitation and Compensation Insurance Act 1992 effective from 1 July 1992.

Table 7.27 shows income from levies, compensation payments and administrative costs for the year ended 31 March.

Table 7.27. ACCIDENT COMPENSATION COSTS

ItemEarners' accountMotor vehicle account
1990199119901991
 $
Income—
Gross levy revenue864,765,400640,739,616203,187,826287,152,885
Investment income134,759,355161,778,76013,656,01525,710,750
Government Contribution
            Total income999,524,755802,518,376216,843,841312,863,635
Expenditure—
Earnings-related compensation or loss of potential earnings payable to injured persons378,716,436597,276,84577,878,319118,922,294
Earnings-related compensation or remarriage grants payable to dependants28,989,01122,080,56621,320,02227,981,900
Funeral expenses and dependants allowance1,195,2171,515,2163,083,3553,271,696
Non-economic loss103,703,557157,158,86135,788,08749,104,959
Medical treatment79,795,193128,472,44915,120,07713,110,162
Hospital treatment23,081,80422,262,0873,903,0433,097,058
Dental treatment5,589,4276,416,3761,614,7681,729,370
Conveyance for medical attention5,769,0698,094,6882,608,8692,827,648
Rehabilitation—aids, training and grants6,595,5288,562,3453,319,2664,592,282
Loss not related to earnings25,519,4965,905,0186,886,15710,036,791
            Total compensation652,046,293964,652,896171,521,963234,674,160
Financial grants—Department of Labour19,146,15520,414,885
Financial grants—other1,282,7741,524,79270,554156,938
Levy revenue collection fee8,256,86015,949,2481,554,5061,932,213
General fund transfer35,951,24962,823,1419,727,56515,283,184
            Total expenditure716,683,3311,065,364,962182,874,588252,046,500
ItemSupplementary accountTotal
1990199119901997
Source: Accident Compensation Corporation.
 $
Income—
Gross levy revenue1,067,953,226927,892,501
Investment income1,650,7275,679,159150,066,097193,168,669
Government Contribution122,832,202142,496,306122,832,202142,496,306
            Total income124,482,929148,175,4651,340,851,5251,263,557,476
Expenditure—
Earnings-related compensation or loss of potential earnings payable to injured persons380,569742,961456,975,324716,942,100
Earnings-related compensation or remarriage grants payable to dependants5,38343,400,58856,976,294
Funeral expenses and dependants allowance832,8641,130,3185,111,4365,917,230
Non-economic loss29,390,96752,934,856168,882,611259,198,675
Medical treatment64,360,15056,559,044159,275,420198,141,655
Hospital treatment7,026,1775,126,49134,011,02430,485,636
Dental treatment4,425,8935,135,72811,630,08813,281,474
Conveyance for medical attention4,324,9766,284,50612,702,91417,206,842
Rehabilitation—aids, training and grants950,1981,835,38610,864,99214,990,013
Loss not related to earnings5,563,8708,785,43037,969,52324,727,240
            Total compensation117,255,664138,540,103940,823,9201,337,867,159
Financial grants—Department of Labour19,146,15520,414,885
Financial grants—other601,015608,3481,954,3432,290,078
Levy revenue collection fee9,811,36617,881,461
General fund transfer6,626,2509,027,01452,305,06487,133,344
            Total expenditure124,482,929148,175,4651,024,040,8481,465,586,927

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 1991, there were 12 162 reported accidents resulting in 650 fatalities and injuries to 16 766 other people.

Table 7.28. ROAD ACCIDENT CASUALTIES BY TYPE, 1991

Classification of accidentsKilledSeriousMinorTotal
Source: Ministry of Transport.
Overtaking or lane change48210530788
Head on (not overtaking)1546511 1931 998
Lost control or ran off road on straight664531 2001 719
Lost control or ran off road while cornering1778902 6053 672
Collision with obstruction10159558727
Rear end10109879998
At intersections or driveways—
      Vehicles moving in same direction, one turning101759041 089
      Vehicles crossing paths, not turning252561 2651 546
      Vehicles crossing paths, one turning202388701 128
      Vehicles merging346243292
      Vehicles moving in opposite directions, one turning right232851 1261 434
Vehicles manoeuvring10150627787
Pedestrian crossing road56320602978
Pedestrian—other253153109
Miscellaneous134494151
            Total650401712 74917 416

Table 7.29. AGE OF PERSONS KILLED AND INJURED IN MOTOR ACCIDENTS

Age groups (years)Killed*Injured
198919901991198919901991

* Killed immediately or died within 30 days of accident.

Source: Ministry of Transport.

Under 5181514292331310
   5–9172016486521498
10–14161721686755740
15–191531351013 7203 8553 420
20–241431691303 0733 2543 108
25–298495681 8952 1031 903
30–345450531 2901 3371 425
35–394239438499861 050
40–44352540724821761
45–49272721540583583
50–54221922451481507
55–59221516390381363
60–64251922378374369
65–69191620280301335
70–7430920248296271
75–7915169198252265
80 and over172518144212200
Unknown age221816882855658
            Total76172965016 52617 69816 766

ROAD DEATHS

Death rate from motor vehicle accidents

THE ROAD TOLL

Number killed

Van is written-off after collision with median barrier.

Table 7.3. ROAD USERS KILLED AND INJURED IN ROAD MOTOR ACCIDENTS, 1991

Type of casualtyKilledSerious injuryMinor injuryTotal
Source: Ministry of Transport.
Driver of—
      Car2251 3455 5287 098
      Taxi263240
      Van36153539728
      Truck1156138205
      Bus41014
      Motorcycle647091 1321 905
      Other491225
      Unknown11
Passenger of—
      Car1578743 2814 312
      Taxi31720
      Van22141393556
      Truck42077101
      Bus23739
      Motorcycle1474143231
      Other1910
      Unknown
Cyclist222457541 021
Pedestrian883736431 104
Other and unknown1236
            Total6504 01712 74917 416

Officers at checkpoint stop motorists as part of their Christmas drink-driving campaign, Wellington.

Table 7.31. ROAD ACCIDENT CASUALTIES AND RATES

December yearPersons killedPersons killed per 100 000 populationPersons injuredPersons injured per 100 000 populationTotal casualties per 100 000 population
Source: Ministry of Transport.
1,98779723.818 642556.6580.4
1,98872821.717 324516.2537.9
1,98976122.516 526488.3510.8
1,99072921.317 698516.1537.4
1,99165018.816 766486.0504.8

Table 7.32. INTERNATIONAL COMPARISONS: MOTOR ACCIDENT DEATH RATES, 1991

CountryPersons killedPersons killed per 10 000 vehicles*Persons killed per 100 000 population

* This statistic is an estimate for New Zealand.

Source: Ministry of Transport

New Zealand6502.918.8
United Kingdom4 5681.87.9
Australia2 1122.112.1

Road safety. Road safety is administered by the Ministry of Transport with the road laws enforced by the New Zealand Police. For further information, see section 20.4, Road transport.

FATAL AND INJURY ACCIDENTS

Contributing factors by percentage, 1991

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. Police 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 Automobile Association also provides the New Zealand Defensive Driving Course for licensed drivers.

Advice on road safety policy is given to the Government by a permanent parliamentary select committee, by the Officials Committee on Road Safety, and by a number of other bodies, including local 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’.

Water accidents

The New Zealand Water Safety Council. The New Zealand Water Safety Council is made up of aquatic organisations who are concerned with safety in their field, such as the Swimming Federation, Maritime Transport, Surf Lifesaving, Royal Lifesaving, etc. The council is funded by the Lottery Grants Board to enable it to target specific drowning populations in New Zealand through education programmes and through grants to member bodies. These education programmes may take the form of an information booklet, a poster or an activity programme administered by Water Safety Council field staff which demonstrates the safest way to enjoy the aquatic environment.

The council is also sponsored by the Lotteries Commission which enables it to run a public awareness campaign on television over the peak summer holiday period. Last year's campaign targeted risk factors in boating, surf and home pools and resulted in a reduction of drownings from 52 to 17 in those areas.

Drowning in New Zealand is predominantly a problem for young men between the ages of 18 to 35. The area with the highest risk factor is small boat activities such as fishing from dinghies. Two areas with high incidence rates are that of preschool drownings in home pools and a growing incidence of drownings among the elderly.

The council's statistics differ from those given below in the general accident statistics where the council includes vehicular immersions resulting in death as a drowning incident, while other organisations may count this as part of the road toll. The council reasons that if better knowledge of how to escape from a submerged vehicle were available then this death toll would be reduced and that it is their responsibility to promote that knowledge.

The Water Safety Council has three regional offices which manage a group of field staff who are available to promote the area of water safety in the community.

Table 7.33. DROWNINGS

LocationYear ended 31 December
1988198919901991

* Includes drownings in pools, rivers, seas and others.

Source: New Zealand Water Safety Council

Boating17343114
Surf activities1111
Whitewater activities5333
Angling31349
Scuba diving and snorkelling85910
Swimming*18152719
River crossing7433
Other water-related332
Non-water related111
            Total recreational62768262
Immersion incidents—
      Adult27211915
      Children 5–153327
      Preschool—pools108104
      Preschool—other4842
Rescuing others2344
Vehicle accidents2323721
Tourism and commercial
Commercial fishing17347
Employment related311
Foods and civil emergencies3
Suicides and homicides15191017
            Total non-recreational107886178
            Total drownings169164143140

General accident statistics

Accidents, poisonings and violence caused approximately 7 percent of total deaths in each of the years 1988 to 1990.

Table 7.34. DEATHS FROM EXTERNAL CAUSES*

Causes of deathNumber of deathsRate per million of mean population
199819891990199819891990

* Registered during calendar year.

† Includes falls aboard ship and from horseback.

‡ Includes drowning from water transport.

Source: Health Statistical Services.

Motor vehicle accidents743799762223239225
Other transport accidents529596162828
Accidental poisoning151211543
Accidental falls213250248647573
Accidents caused by machinery3522161175
Accidents caused by fire and explosion of combustible material38592811188
Accidents caused by firearms1868522
Accidental drowning and suffocation10510374323122
Suicide and self-inflicted injury484465455146139135
Homicide587278172223
All other external causes158105156483146
            Total deaths from accidents, poisoning, or violence1 9191 9881 932577595572

Table 7.35. DEATHS FROM LEADING EXTERNAL CAUSES BY SEX AND AGE, 1990*

Age group (in years)Motor vehicle accidentsAccidental drowningsAccidental poisoningsAccident falls
MFMFMFMF
Under 15422198223
15–2424773173151
25–341123394292
35–44482010133
45–5435205141
55–64211611172
65–742011211510
75 and over18252270114
            All ages543219551992115133
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 152448448
15–2411119133441110
25–34732116826074
35–44571911117348
45–5442102412140
55–6439849031
65–74199327942
75 and over21621133158
            All ages3639255231 381551

Accidental falls. There were 248 deaths due to accidental falls in 1990. 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 means that more elderly women than elderly men are exposed to the risk of fatal falls.

In 1990, 38 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 55 percent of all fatal non-transport accidents in 1990.

Table 7.36. SITES OF FATAL NON-TRANSPORT ACCIDENTS*

Place of occurrenceNumber of accidentsRate per million of mean population
198819891990198819891990

* 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)160188190485656
Farm (including buildings and land under cultivation, but excluding farm and home premises)311818955
Mine and quarry140.3
Industrial places and premises312521976
Places for recreation and sport659213
Street and highway1369423
Public building (building used by the general public or a particular group of the public)7812224
Residential institution (homes, hospitals, etc.)908889272626
Other specified places957384282225
Place not specified477058142117
            Total481485490145145145

Deaths of pre-school children. Mortality rates among children aged one to four years in New Zealand are disappointingly high. In 1989 New Zealand's age-specific mortality rate for children aged one to four was 53.2 per 100 000 compared with 29 per 100 000 in Sweden (1989), 40 per 100 000 in England and Wales (1989), and 44 per 100 000 in Australia (1988). 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 7.37. DEATHS OF PRE-SCHOOL CHILDREN FROM ACCIDENTS AND VIOLENCE, 1988

Causes of deathSexAge (in years)
1234Total
Source: Health Statistical Services.
DrowningM2327
 F2316
Motor vehicle accidentsM234413
 F3137
HomicideM11
 F11
All other external causesM333211
 F4116
            Subtotal, male 799732
            Subtotal, female 1053220
            Total 171412952

Mothers receive Red Cross training, part of a health programme organised by the Porirua East Maori Women's Welfare League.

7.6 Civil defence and fire safety

Civil defence

The Ministry of Civil Defence was established in 1959 as part of the Department of Internal Affairs. The current Civil Defence Act dates from December 1983.

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. Territorial authorities and regional councils form civil defence organisations and prepare appropriate plans. The Ministry of Civil Defence, through offices in Auckland, Palmerston North and Christchurch helps local authorities to meet their obligations and coordinates government planning. The ministry also provides subsidies for local and regional civil defence work and through the National Civil Defence School encourages training and planning.

A declaration of a state of civil defence emergency grants special powers to civil defence controllers appointed under civil defence plans, the police, and to the ministry's Director and Commissioners.

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 Headquarters is established in the sub-basement of the Executive Wing of Parliament Buildings (the Beehive). It is kept ready for use but is activated only when required.

Earthquake and war damage insurance

The Earthquake and War Damage Commission (EQC) 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.

Limited cover for land on which insured buildings are situated is provided where the cause of the damage or loss is the direct result of storm, flood, volcanic eruption, hydrothermal activity, or landslip.

Premiums at the rate of 5 cents for each $100 of indemnity value are collected by the insurance companies and paid to the commission.

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.

Changes providing for a reducing level of cover by EQC for commercial property and affecting the level of cover for private dwellings are to take effect in 1993. As from 1 January 1993, cover from EQC for commercial property will no longer be compulsory. However, EQC will, on application, provide cover up to 75 percent of indemnity value in the first year, 50 percent in the second year, and 25 percent in the third year of the phase-down. Cover for commercial property will not be available from the commission thereafter.

For private dwellings, it is intended that the commission provide replacement cover to a cap of $100,000 (GST exclusive). For domestic contents, the replacement cover will be capped at $20,000. The date for these changes had not been finalised at the time of writing this summary; however, it is understood that it is intended that they take effect mid-1993.

For the year ended 31 March 1992 a total of 2846 claims were received. This compared with 6008 for the previous year. As a result of seismic activity, 2691 claims amounting to approximately $1,665,000 were registered. Disaster claims, including landslip, totalled 155, with payments amounting to approximately $390,000.

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.

Civil Defence exercise by Canterbury Regional Council

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 1990 there were 2569 employees and 7294 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 15 months ended 30 June 1991 contributions from insurance companies totalled $221,159,000, while government contributed $18,827,000 compared with $13,883,000 in 1990.

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 7.38. INCIDENTS ATTENDED BY FIRE BRIGADES*

Incidents19901991

* This table excludes mutual aid calls and calls to the vicinity of another fire.

† An exposure fire is where afire originating in one property spreads to another property. They are subtracted from total fire incidents to reflect a clear total number of incidents attended.

Source: NZ Fire Service.

Fires—
      Structure fires4 6044 446
      Vehicle fires2 8753 009
      Television and home appliances193201
      Oven fires651718
      Chimney fires1 3781 355
      Rubbish fires4 8404 281
      Tree, grass and scrub fires3 0693 290
      Yard storage/standing crops618640
      Investigation only (out on arrival)1 015437
      Other fires899911
 20 14219 288
Less, exposure fires212214
            Total, fire incidents19 93019 074
      Overpressure rupture with no combustion4752
      Hazardous substance emergencies2,1512 708
      Hazardous condition standby614574
      Special service incidents5 2024 980
      False alarms (good intent)4 6064 834
      False alarms (malicious)1 7161 722
      False alarms (equipment failure)8 97110 632
      False alarms (other)345280
            Total incidents attended43 58244 856

Fire statistics. Twenty six people died as a result of property fires during 1991, compared with 30 in 1990 and 41 in 1989. In 1991 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

Primary responsibility for the provision of occupational safety and health policy and services is held by the Occupational Safety and Health Service (OSH) of the Department of Labour. The Department of Health also has some input into health policy for the workplace and administers legislation, and some area health boards provide occupational health nursing and medical services under contract to OSH.

Legislative reform. Recent legislative reform in the area of occupational safety and health has led to the introduction of a single Act prescribing minimum standards across all industries. This occurred in October 1992 with the passing of the Health and Safety in Employment Act 1992. The new Act comes into force from 1 April 1993 and sets out the responsibilities of employers, employees and others to manage the risks they face in then-work on a day-to-day basis.

The Act spells out primary responsibilities for all employers, employees, people who hire contractors, and others involved with the workplace. Detail for ensuring the safety and health of those working in specific industries or processes comes through either regulations made under the Act or codes of practice approved by the Minister of Labour. Under the Art employers 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.

  • Involving their employees in the development of procedures for dealing with hazards and emergencies.

Havelock North orchardist with store of chemicals.

Employees have a responsibility under the new law to ensure that they do not endanger their own health and safety or that of other people by their work.

Occupational Safety and Health Service. This is one of five services to industry maintained by the Department of Labour. It was established in 1988 on the recommendation of the Advisory Council for Occupational Safety and Health, as a single authority responsible for setting occupational safety and health standards for all industries.

The role of the Occupational Safety and Health Service is to minimise the economic and social cost of workplace illness and injury. This involves administering and enforcing the Health and Safety in Employment Art 1992, developing occupational safety and health policy, and providing health services to industry. The service has extensive direct involvement with industry. In 1991–92 its 215 staff made nearly 58 000 visits to workplaces, of which 33 000 were to inspect for compliance with legislation. Other major categories of visits were: investigating accidents and complaints (7000) and education and training activities (approximately 5300). Funding for these activities comes from a proportion of the levies charged by the Accident Rehabilitation and Compensation Insurance Corporation. Service expenditure is estimated at $21.17 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 programmes have received a high share of resources.

Enterprise Self-management Programme—during 1991–92 OSH worked to reduce risks in 1600 workplaces identified as having a poor level of achievement in occupational safety and health. Under this programme OSH fieldworkers used 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. During the year commitments were received from 1450 employers and nearly 7500 improvements in workplace practices were required.

High hazard workplaces—under this programme 15 500 workplaces with high hazard processes or activities are visited regularly and their safety and health performance monitored. During 1991–92 OSH staff visited just over 17 000 workplaces under this programme and approximately 24 000 improvements to procedures or equipment.

Responses to hazardous situations and other incidents 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 on high priority workplaces, the service maintains a broader approach through three three-year national projects. Each of these projects, which began in 1991, concentrates 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.

  • 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.

A register of those exposed to asbestos dust and for victims of asbestos-related disease was established early in 1992. It has become part of a wider occupational disease register which is now operating.

OSH technical staff are also responsible for the monitoring of international developments of relevance to New Zealand.

Contributors

  • 7.1 Department of Health; Medical Council of New Zealand; Nursing Council of New Zealand; Dental Council of New Zealand; Pharmaceutical Society of New Zealand.

  • 7.2 Department of Health

  • 7.3 Department of Health; Alcohol Advisory Council; Medical Research Council; Health Statistical Services; Abortion Supervisory Committee.

  • 7.4 Department of Health; Health Statistical Services.

  • 7.5 Accident Rehabilitation and Compensation Insurance 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 Labour.

Special articles

Dr Margaret Maxwell, New Zealand Medical Women's Association; ALAC; Department of Health; New Zealand Family Planning Association; Medical Council of New Zealand; Royal New Zealand Plunket Society Inc.; Marie Burgess (Amelia Bagley), Karin Beatson (Rina Moore), The Book of New Zealand Women, eds Macdonald, Penfold and Williams, Bridget Williams Books Limited, 1991.

Further information

Health

Alcohol Consumption Statistics. Alcohol Advisory Council (annual).

Alcohol/Drug Outpatient Statistics. Alcohol 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 Alcohol 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

Graduation ceremony, University of Otago.

8.1 Administration of education

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 Early Childhood Development Unit provides: community development; support for establishment of early childhood centres; parent support; advice and support to playgroups and Pacific Island language groups; and advisory support and professional development for staff, management and parents involved in early childhood centres and home-based schemes. The unit is a government agency contracted to provide services to the early childhood community.

Special Education Service. The Special Education Service is a crown-owned entity offering a New Zealand wide service of advice, guidance and specialist support for the benefit of people with special educational and developmental needs. These include people with physical, intellectual, sensory and other disabilities. Services provided include the following:

  • Educational and developmental assessment and programming assistance for individuals, families, schools and early childhood centres.

  • Specialist educational therapies and teaching.

  • Training for people working with those who have disabilities.

  • Placement assistance for schools, families and communities.

  • Early intervention teaching and advisory services.

  • Specialist liaison services between schools and families.

  • Advice to government and non-government agencies on special education policy and practices.

Staff of the service include advisers on deaf children, early intervention teachers and advisers, visiting teachers, speech language therapists, kai awhina, advisers on special needs and psychologists.

The service is funded from a variety of government and non-government sources with most of its income coming from a major contract with the Minister of Education for the provision of specified 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 partly government-funded agency responsible to the Minister of Education for outputs purchased through government funds.

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 services of the Education Review Office are:

  • Assurance audits of schools and early childhood centres which provide high quality information and reliable analysis of the quality of management of the education sector.

  • Effectiveness reviews of schools which provide high quality information and reliable analysis of the factors affecting student achievement.

  • Evaluations which provide national assessments of aspects of the education system including management systems or structures, curricula content or delivery issues.

Assurance audits inform and assist the Minister and governing authorities and managers of schools and early childhood centres, as well as parents and the wider community, about the management of those institutions in terms of their contractural undertakings (as specified in charters and legislation).

Effectiveness reviews inform and assist the Minister, governing authorities, managers, parents and others in the community in identifying and responding to the factors which influence school students’ achievement.

In general, a school or centre will receive an assurance audit every two to three years. A school will also receive an effectiveness review every two to three years.

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. There are 56 000 teachers on record.

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 parent representatives, 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, salaries of management positions in schools 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 administration of school transport, payroll, property, and other administration services to schools. Service centres, other than the original 14 have also been established to provide assistance 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.

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, including the Foundation for Research, Science and Technology, 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 1991–92 and further titles are in preparation. Publications include the monograph Overcoming the Matthew Effect, which looks at solving reading problems across the curriculum, and a major title, The Biography of an Idea: Beeby on Education, in which a former Director-General of Education reflects on the development and implementation of his policies designed to achieve equality of educational opportunity.

Reports published during the period included two from the junior school study; reports on the impact of salary bulk funding on kindergartens, and on moderation strategies for achieving consistency of standards within the new National Qualifications Framework; and a 1992 update of the bibliography of the New Zealand documentation on gifted and talented children. The council is also involved in the publication of two periodicals: New Zealand Journal of Educational Studies and set, a special research package for teachers.

The council employs around nine full-time equivalent research staff plus contract staff and temporary research fellows or project assistants. From time to time 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 five local institutes for educational research in Northland (Tai Tokerau), Auckland, Wellington, Christchurch, and Suva (Fiji).

Educational reformer, Dr Clarence Beeby. The Director of Education from 1940 to 1960, Beeby is a proponent of educational equal opportunity and also has a significant reputation as an international educator.

Maori Education Foundation. The foundation was established to promote and encourage improved education for Maori by providing financial assistance. The foundation had net assets of $5,793,147 at 31 December 1991. The Board of Trustees allocates grants to sponsor annual speech contests; boarding grants to secondary education and scholarships for tertiary education.

In 1991 the foundation distributed $2,036,867 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. Chartered early childhood services are funded at a rate of $2.25 per hour per child over two years of age and $4.50 per hour per child under two years of age for up to six hours per day, up to 30 hours a week.

Kindergartens are funded at an average rate of $2.86 per child per hour for up to eight three hour sessions (24 hours) per week. Kindergarten salaries have been included in the bulk grant since 1 March 1992.

Funding for capital works for non-profit-making early childhood groups is available from a grant and loans scheme.

Te Kohanga Reo, the Maori initiative early childhood service, is funded at the same rate as other chartered early childhood services at a rate of $2.25 and $4.50. The funding is administered by the national Te Kohanga Reo Trust.

Schools. The costs of teachers’ salaries (excluding senior management salaries), school transport, teacher removal expenses, major capital works and long-term maintenance are paid directly by the Ministry of Education. From 1992 schools were given the opportunity to take part in a three year 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. From 1993 a salaries grant for school senior management positions will be paid directly to boards 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. Discretionary allocations of staffing, equipment and grants are made to meet the requirements of the pupils.

Recent developments in tertiary education funding. As a result of the tertiary reforms, a new system for funding tertiary institutions was introduced at the beginning of 1991.

EFTS Funding System—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 he 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 encourage school leavers to continue with tertiary 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 Loans—the Student Loan Scheme was established with effect from 1 January 1992 to assist students to participate in tertiary education. Under the scheme eligible students can receive a loan from the government to cover:

  • Fees—the compulsory fees which are payable by students at enrolment.

  • Course-related costs—a maximum amount of $1,000 a year for full-time full year courses to assist with course-related costs such as equipment, textbooks, field trips.

  • Living allowance: a maximum amount of $4,500 a year (less any entitlement to student allowances).

Loans, on which interest will be charged, will be repayable through the Inland Revenue Department, the level of repayments will be based on taxable income.

Applications are made through the institution at which the student will be enrolling. Student loans officers are available at each institution to assist in making these applications. The ministry updates the student loans information booklet every year.

Capital Charging Scheme—it was announced in the 1991 Budget that the Government had agreed in principle to a capital charging regime for tertiary education institutions. The objective of the regime is to ensure that the cost of capital is reflected in the resource and pricing decisions of institutions. A task force has been established to examine the feasibility of the proposed capital charge regime. The task force is required to report to the government by 30 November 1992. Its report will include advice on the possible timetable for implementation of any recommended policy changes.

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 the 1991–92 financial year, the university sector received a total of $594.309 million through the EFTS funding system. The polytechnics received $374.014 million, and the colleges of education received $55.711 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
1,9821,4935.111,19713.3
1,9831,6395.112,67312.9
1,9841,6744.914,25011.8
1,9851,7294.515,31811.3
1,9862,0104.517,67311.4
1,9872,5954.920,94412.4
1,9883,1185.223,11713.5
1989*3,5695.623,74015.0
1990*4,0455.825,68615.7
1,9914,4016.127,25216.1
1,9924,721 29,46816.0

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 contracts a range of bilateral educational and cultural exchange activities to the New Zealand Council for Teacher Education. 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, and a large number of other international organisations such as the Australian Education Council (AEC), Asian Pacific Economic Conference (APEC), Pacific Circle Consortium (PCC) and the South East Asian Ministers of Education Organisation (SEAMEO).

School children in Wellington draw artwork to fax to children in sister city Harrogate, England, as part of the Worldwide Communications Festival ‘Kidlink Day’.

8.2 Early childhood, primary and secondary education

Most New Zealand children begin their formal education before primary school. Early childhood education is available to children under five years old through a wide range of services, most of which are administered by voluntary agencies with government assistance.

The Education Act 1964 and subsequent amending legislation provides for free education in state primary and secondary schools, and attendance is compulsory until the age of 16 years (announced 1991 to take effect from 1 January 1993).

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 or form 1–7 school.

School terms

Primary and secondary schools are required to be open for at least 396 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 Monday or 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, Kindergarten Federation and the New Zealand Playcentre Federation. Sessional programmes are also provided through mobile units and hospital play groups.

A wide range of childcare centres provide both sessional and full-day programmes. Childcare 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 NZCCS (formerly the Crippled Children Society). Nanny services in private homes provide other types of childcare services. Home-based services are provided by Barnardos, and the New Zealand Day Care Association.

All early childhood centres wishing to receive government funding must be licensed and chartered. Home-based services must meet the Education (Home-based care) Order 1992 and be chartered to receive government funding.

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. Nga Kohanga Reo are chartered by Te Kohanga Reo Trust (Inc.) licensed by the Ministry of Education.

Funded playgroups and Pacific Island groups receive funding through the Early Childhood Development Unit. Pacific Island community groups organise early childhood groups with an emphasis on language and cultural values assisting parental knowledge in early childhood care and education.

Primary and secondary school curricula

Primary school curriculum. The curriculum of the primary and intermediate schools, as set out in National Curriculum statements 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 1991 a further 32 schools offered bilingual education and there were 384 bilingual classes in other primary and area schools. 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 1991 there were a total of 2588 students attending bilingual classes in secondary schools.

New Zealand curriculum framework. The New Zealand Curriculum Framework describes the broad elements which are fundamental to learning and teaching in New Zealand schools.

It states a set of broad curriculum principles which underpin and give direction to all teaching and learning in New Zealand schools. The principles state that the curriculum will be broad, balanced and common; will be inclusive of all students; will foster success and achievement for all students; will enable students to become independent and lifelong learners; will ensure that learning progresses coherently throughout schooling; will recognise New Zealand's bicultural identity; will reflect the multicultural nature of New Zealand society; will be co-operatively designed; will be flexible and responsive; and will relate to the wider world.

The framework specifies seven essential learning areas which describe in broad terms the knowledge and understandings which all students will learn: language and languages/te reo, nga reo; mathematics/te pangarau; science/te taiao; social sciences/te tikanga-a-iwi; the arts/nga toi; health and physical well-being/te tinana, te wairua, te hinengaro; and technology/te putaiao.

It sets out the essential skills to be developed by all students. These are grouped under the following categories: communication; information; numeracy; physical; problem-solving; self-management and development; social; and work and study.

The framework also outlines the policy for assessment at school and national levels. The New Zealand curriculum builds on the close relationship between learning and assessment. Assessment procedures will be applied throughout schooling to measure student progress and achievement against the defined objectives of the National Curriculum. Such procedures will build on established classroom practices, and will draw on research and experience in New Zealand and overseas. Furthermore the statement defines assessment at key transition points of schooling—at school entry, at the start of year seven (form 1) and year nine (form 3); records of school achievement; national monitoring of standards; and assessment for qualifications.

Finally, the framework provides direction to the development of the more specific national curriculum statements. These supporting statements will spell out in greater detail the required learning described broadly in the framework document. Already draft national curriculum statements have been prepared for the learning areas mathematics and science, as part of the Government's Achievement Initiative policy.

Achievement Initiative. Student achievement is always a key issue in the education community. Learners, their parents and caregivers, schools, and the larger community may have different and particular approaches to the issue, but all are agreed that a prime goal of our education system is the best possible educational achievement for all students. Over the years the understanding of what students should achieve has been expressed differently and with different emphases, and there will always be debate about how the goal is to be reached. Nevertheless, the goal remains a common one for all involved in education.

SIXTH FORM SUBJECTS

Percent of females and males enrolled

Currently, an important focus on student achievement is the Government's Achievement Initiative policy which is being developed within the proposed National Curriculum Framework (the National Curriculum of New Zealand). It seeks to focus more precisely the work of school learners and teachers on what is to be learnt and what has been achieved.

The initiative policy is being developed in ways that acknowledge that

  • Individuals learn at different rates, at different stages, and in different ways.

  • Sound learning builds on the learner's current knowledge and previous experience.

  • Some students need extra help at stages of their schooling.

  • The prime role of classroom assessment is to improve learning.

  • Most school classes include learners with a range of achievement and needs.

  • Classroom teachers must be given professional freedom and trust to take into account the particular needs of their students.

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: A1 (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.

† Figures for extra-mural candidates not collected in 1991.

‡ From 1991 Pacific Island figures include candidates from Niue and Cook Islands only.

Source: New Zealand Qualifications Authority.

1,98658 83479.93 1734.311 60511 60573 612
1,98759 45182.22 8553.910 04813.972 354
1,98860 84391.83 1084.72 3123.566 263
1,98960 99392.92 7984.31 8812.965 452
1,99061 31990.12 4433.64 3206.368 082
199165 75899.5  2980.566 081

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
1,98719.552.29.34.64.69.9
1,98819.048.410.75.85.610.5
1,98918.745.211.66.96.511.1
1,99017.744.411.67.57.311.5
1,99117.142.212.38.18.112.2

Table 8.4. ATTENDANCE AND ATTAINMENTS OF SECONDARY SCHOOL LEAVERS 1990

Years in attendancePupils AttainmentsPupils 

* One or more subjects irrespective of grade awarded.

Source: Ministry of Education.

 no.percent no.percent
One6461.2University Bursary11 62722
Two2 1474.1Higher School Certificate8 65417
Three6 59012.6Sixth Form Certificate*14 34727
Four13 53425.9School Certificate*9 22018
Five28 10453.8No formal national academic qualification8 38416
Six and over1 2112.3   
            Total52 234100.0            Total52 232100.0

Table 8.5. ATTENDANCE AND ATTAINMENTS OF MAORI SCHOOL LEAVERS 1991*

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 Bursary       1180231225202237439
Higher School Certificate        3524084218394426820
Sixth Form Certificate      33747852155248339061 0631 969
School Certificate    3863655616261351271071 0921 1252 217
No qualification138107536440732636248206575911181 7221 4663 188
            Total1381075364401 1181 0011 1461 3111 2451 377133814 3164 3178 633

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.

SCHOOL QUALIFICATIONS

Highest attainment of secondary school leavers

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 institution19871988198919901991

* Includes one YWCA mobile kindergarten and eight Free Kindergarten Association mobiles.

† Private school numbers include those provisionally registered.

‡ Includes seven health camps and two hospital schools—the pupils temporarily attending these institutions have been counted with their regular schools in other tables. Includes Glenburn, Highcliff, Homai, Kingslea and Weymouth Schools funded from Vote: Education.

§ Includes three state integrated composite schools, two in 1990 and one in 1991.

From 1988, figure includes 18 form 3–7 schools with attached intermediates.

Auckland primary and secondary teachers' colleges amalgamated in 1986 to form the Auckland College of Education. Hamilton College of Education became a school within the University of Waikato in 1991.

Source: Ministry of Education.

Early childhood
Childcare centres....663662741
Home-based services......4053
Kindergartens*563568575575578
Playcentres653644639621606
Community-based non-profit making groups159174202....
Kohanga Reo....470616630
Early Childhood Development Unit funded play groups......192266
Pacific Island language groups......126160
Primary
state full primary schools1 1181 1111 1041 0991 112
State contributing primary schools1 0131 0111 0061 008999
Intermediate schools148148148148148
Private primary and intermediate7678898782
Special Education
Special schools under education board control (primary classes)5656......
Special state schools....725957
Department of Education and Social Welfare Special schools plus Glenburn & Homai2318......
Private special schools5
Composite—primary & secondary
Private schools2728282828
Correspondence School11111
Area schools§3535353738
Secondary
State form 3–7 schools261262259259259
State form 1–7 schools5353555556
Private secondary schools form 1–7 form 3–72018192021
Tertiary
Polytechnics (including the Open Polytechnic)2224242525
Colleges of Education66665
University institutions77777

Table 8.7. STUDENT NUMBERS 1981 and 1991

Type of institutionAt 1 July
1981*1991

* In 1981 students in attached special classes were included as part of the primary and secondary roll. In 1991 they are separate.

† Early Childhood Development Unit.

‡ Includes Department of Social Welfare Schools and the Royal New Zealand Foundation for the Blind School.

§ Data for 1991 collected on 31 July.

Students formerly included in Hamilton College of Education are now included in Waikato University School of Education. Includes 129 students in post-graduate programmes and 2499 Advanced Studies for Teachers Unit students.

Includes 1047 teacher trainee students enrolled in the Waikato University School of Education.

Source: Ministry of Education.

Early childhood care and education*
Correspondence School..793
Pre-school classes at primary school1 026853
Home-based services..2 387
Pacific Island Language Nets..3 274
ECDU funded playgroups..7 331
Nga Kohanga Reo..10 451
Playcentres16 19821 578
Childcare centres..35 104
Kindergartens38 76844 363
 55 992126 134
 
Primary Education (J1—form 2)
State primary367 286329 949
State Intermediate73 38357 662
State area6 1776 166
State form 1–76 2156 754
State form 3–7 (attached intermediate)..2,018
State correspondence1 353886
Private schools38 99712 649
 493 411416 084
 
Secondary Education (form 3 to 7)
State form 3–7181 760190 022
State area2 6393 134
State form 1–711,02815 195
State form 3–7 (attached intermediate)..7 201
State correspondence9891 399
Private schools27 98011 738
 224 396228 689
 
Special Education (Special classes and special schools)
State primary schools (attached classes)..1 686
State composite schools..167
State secondary schools..2 282
State special schools4921 890
Private special schools..96
Other Vote Education special schools)483166
 9756 287
Tertiary—Formal Education Programmes§
Polytechnics
Full-time6 91524 334
Part-time35 84928 322
External..16 413
 42 76469 069
Colleges of Education
Full-time5 9015 230
Part-time..600
External..2 243
 5 9018 073
Universities
Full-time32 89454 447
Part-time13 44517 934
External8 81315 592
 55 15287 973

Maori pupils. In July 1991 there were 36 313 Maori pupils receiving secondary education. This number comprised 18 132 male pupils and 18 181 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 1991 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.

Girls at secondary school learning about electronics.

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 1991 there were 38 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 and teachers salaries. 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 1991 there were 67 hostels for state secondary schools and 23 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 secondary teacher positions, 105.6 primary teacher positions and 16 early childhood teacher positions.

Table 8.8. TEACHING POSITIONS

Type of institution198919901991

* 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 but does include Manual training teachers.

† Includes all staff at F3–7 and F1–7 schools and secondary staff at the Correspondence School.

‡ Includes staff at Social Welfare, Glenburn School and Homai College.

Source. Ministry of Education.

Early childhood
      Playcentres240233227
      Kindergartens1 4351 4421 545
Primary
      State schools*19 98320 33720 166
      Private schools425439419
      Area schools540662684
      Composite private schools639684696
Secondary
      State schools14 91815 05814 620
      Private schools436477515
      Special state schools  615
Other Vote: Education
      Special schools1646365
Tertiary
      Polytechnics4 120 4 453
      Colleges of Education563543765
      Universities3 8003 7613 768

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.

1,98620.016.75
1,98720.016.72
1,98819.816.35
1,98919.616.50
1,99019.315.74
1,99118.915.70

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 1992, 110 000 pupils received school transport assistance daily.

Approximately 2400 school bus services carried 100 000 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.

In 1991 there were 56 schools providing solely special education services, these included residential special schools; day special schools (for intellectual and physical disabilities); health camp schools; hospital schools; schools in psychopaedic hospitals; Social Welfare Home schools; and other special education institutions.

There were 756 classes and units operating in 1991 providing education to the intellectually and physically disabled and the hearing and visually impaired at both primary and secondary levels. Also included were satellite classes; experience units; special classes; assessment classes; adjustment classes; hospital classes; and language units.

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.

School principals spend more time on administration.

Table 8.1. TEACHER TRAINEES AT 31 JULY 1991

InstitutionPre-service teacher trainees
Early childhoodPrimarySecondary
MFTotalMFTotalMFTotal
Source: Ministry of Education.
Auckland College of Education11071081988911 089112159271
Waikato University School of Education31771801396187574169110
Palmerston North College of Education5136141158449607314576
Wellington College of Education2160162143451594111829
Christchurch College of Education11161172120464584205270475
Dunedin College of Education7125132477477609163248
Total students298668958903 3504 2404165931 009
Maoris included41121161896468355555110
Pacific Islanders included 353566145211121527
InstitutionOther programmesTotal
SpecialistAdvanced studiesOther
MFTotalMFTotalMFTotalMFGrand
Auckland College of Education1164751951703411 2721 613
Waikato University School of Education5712321291612201 0001 220
Palmerston North College of Education11113822 1172 4991455772 7623 339
Wellington College of Education242492731808781 058
Christchurch College of Education1033433469281 274
Dunedin College of Education155634789
Total students261151414142 2462 660443043481 8197 4749 293
Maoris included61218933342633392698911 160
Pacific Islanders included664427980212292

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.

Science resource teachers undergo in-service training, Dunedin College of Education.

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 Hawke's 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 were 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 1990, 12 470 children took part in the programme. Fifty seven percent of schools provide reading recovery, representing 85 percent of six year olds.

Resource teachers of reading. These 68 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 209 primary and secondary advisers were employed by colleges of education in Auckland, Palmerston North, Wellington, Christchurch and Dune-din and the School of Education at the University of Waikato in 1991. 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.

UNIVERSITY DEGREES

By subject areas, 1990

Learning Media. Learning Media, part 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 as well as support for early childhood education. Materials include picture packs, slide sets, audio cassettes, video cassettes and booklets of all kinds.

It also publishes policy documents and international material for the Ministry, 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 Learning Media and a range of reading materials at different levels is published. 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 other supporting resources. Pacific Island language materials are also 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.

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.

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 amalgamated with the University of Waikato in 1991 to form the School of Education. A number of other colleges are considering similar amalgamations.

Each university sets its 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.

MOST POPULAR UNIVERSITY PROGRAMMES 1991

Grandmother Cecilia Te Rarua Paea, one of the graduates capped in the first full Maori graduation ceremony to be held on Te Herenga Waka, Victoria University's marae.

Table 8.11. SUMMARY OF UNIVERSITY ENROLMENTS BY PROGRAMME AT 31 JULY 1991

CourseTotal enrolled
Source: Ministry of Education.
Postgraduate degrees, diplomas, certificates and other programmes— 
Doctorate—Medicine3
Doctorate—Music1
Doctorate—Philosophy1 590
Masters4 705
Bachelors honours degrees1 935
Bachelors degrees123
Postgraduate diplomas2 950
Other postgraduate programmes522
      Subtotal11 829
Undergraduate degrees, diplomas, intermediates, certificates and other programmes— 
Bachelors degrees57 634
Intermediate programmes2 142
Undergraduate diplomas2 441
Undergraduate certificates1 080
      Subtotal63 297
Certificate of Proficiency papers2 554
Level not stated373
      Subtotal2 927
            Total enrolments78 053

Table 8.12. DEGREES AWARDED, 1991

Allowance typeDoctorateMastersBachelors honoursBachelors PostraduateBachelorsTotals
MFMFMFMFMFMFGrand
Source: Ministry of Education.
Education science and teacher training12775105469133544677
Fine and applied arts 14578439954113167
Humanities64457025602836163597501 109
Religion and theology11131941713311950
Social and behavioural science11128811743366097797519441 695
Commercial and business administration111877914141 1507221 3528162 168
Law1575251237203304261565
Natural science48151396464383762736273901 017
Mathematics and computer science2241036926892330111441
Medical science and health related841310615268290295319614
Engineering1926810884363853158589
Architectural and town planning43061225715663219
Agriculture, forestry and fishery6117921151215916584249
Home economics223101154166682
Mass communication and documentation    121220
Other programmes323129942547775152
Not specified4618603380936175768037201 523
            Total1525871750437136739104 7064 3965 9855 33511 320

Table 8.13. ASSISTED OVERSEAS STUDENTS AT NEW ZEALAND UNIVERSITIES, 1991

Form of assistanceTotal

* MERT—Ministry of External Relations and Trade.

† Grand parented—Overseas students enrolled prior to 1989 are treated the same as NT. students until their term of study is completed.

Source: Ministry of Education.

MERT* Full scholarship460
MERT* Fees scholarship513
Full-fee paying559
Exchange scheme123
Transition—Grand parented805
Post Graduate Research6
Not stated606
            Total2 526
Adjustment for students recorded in more than one place14
            Total receiving assistance2 512

BACHELOR DEGREES AWARDED

Percentage, 1991

Table 8.14. UNIVERSITY STAFF, 1991*

PositionFull timePart timeTotal
MaleFemaleMaleFemale

* As at 31 July.

Source: Ministry of Education.

Academic staff—
Vice-chancellor141116
Professor35214401407
Associate professor38431404459
Senior lecturer1 205193409781 885
Lecturer63541757701 179
Assistant lecturer8684129109408
Teaching fellow16714
Other academic staff135120255
            Total academic staff2 6777408173894 623
Support staff—
Management631275
General clerical3361 324434252 128
Technical785297321051 219
Library8329030149552
Computer16236129219
Community, liaison and welfare4550315113
Medical8310728
Early childhood2253057
Trades2323113276
Grounds keeping6911181
Caretaking, cleaning and security1044241215402
            Total support staff1 8892 1211729685 150
            Total staff4 56628619891 3579 773

UNIVERSITY ATTENDANCE 1991

By form of enrolment

Table 8.15. UNIVERSITY STUDENTS

YearInternal studentsExternal studentsTotal
MalesFemalesMalesFemales
Source: Ministry of Education.
1,98727 04824 9915 6348 76266 435
1,98829 18827 7425 9299 45472 313
1,98932 04430 8316 3889 96079 223
1,99032 86132 4335 5458 08078 919
1,99136 14836 2336 3039 28987 973

Part time and full time students. At July 1991 there were 54 447 full time university students and 17 934 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 15 592 students studied extra-murally in 1991.

Table 8.16. UNIVERSITY ENROLMENTS*

YearInternal studentsExternal studentsTotal
Full timePart time
FemalesMalesFemalesMalesFemalesMales

* As at I July.

Source: Ministry of Education.

1,98716 11220 9628 8796 0868 7625 63466 435
1,98817 86222 6429 8806 5469 4545 92972 313
1,98920 64225 46910 1896 5759 9606 38879 223
1,99022 74426 8029 6896 0598 0805 54578 919
1,99125 20829 23911 0256 9099 2896 30387 973

First woman BA, Kate Milligan Evans.

Student allowances

The reformed Student Allowances Scheme, introduced on 1 January 1992, provides a range of allowances for tertiary students 16 years and over, and secondary students aged 18 years and over 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 student is under 25 years old) and whether or not the student lives at home. There are also separate rates for students with a dependant spouse and/or dependant children, and married students.

In addition, there are two separate provisions allowing for students under 25 years to apply for an allowance without being tested on the taxable income of both parents. These are:

  • The provision for establishing independence from a parent, whereby the targeted allowance will be based on only one parent's income.

  • The Independent Circumstances Allowance, where the student can be considered independent of both parents and receive the maximum targeted allowance.

Students living away from their parental home may also qualify for an accommodation benefit, if they are receiving a targeted student allowance.

Rates of allowances may change annually and may be subject to review. The Ministry of Education annually updates the Student Allowances Information Booklet which is available from the Student Allowances Officers at each polytechnic, college of education, and university, and from the Student Loans and Allowances Division, Ministry of Education, National Office.

Student Allowances Officers at each tertiary institution are also available to assist students and potential students with inquiries relating to student allowances.

Table 8.17. STUDENT ALLOWANCE CLIENTS AT 31 JULY 1991

Allowance typeSecondary schoolsPolytechnicsColleges of educationUniversitiesPrivate institutionsGrand total
Source: Ministry of Education.
 number
16–17 year old..1 409877511 545
18–19 year old away from home22 7977589 09317012 820
18–19 year old at home1074 9326849 03713714 897
18–19 targeted912 9515124 938938 585
20+ year old away from home465 3981 82720 66937428 314
20+year old at home311 8014325 839398 142
Independent circumstances16153151024290
Students with dependents7740230756881 871
Earning spouse—at home1794447756352 033
Earning spouse—away from home..4717502116
Couple allowance..2297226634601
Accommodation benefit639 9752 97525 44670739 186
Accommodation supplement..493610642647
Transport allowance..2 6737084 965968 442
Transport supplement..1 52712221311 791
            Total allowances36435 9198 75482 6141 903129 554
Adjustment for more than one allowance15416 3584 20335 45590557 075
            Total students21019 56145 51147 15999872 479

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.

The Open Polytechnic of New Zealand. This is New Zealand's largest distance education institute, with over 350 tutors and 120 support staff educating more than 25 000 students every year. Over one third of all polytechnic students study through the Open Polytechnic of New Zealand (TOPNZ).

The polytechnic offers over 800 courses, spanning from certificate to degree level. Subjects range from the new Bachelor of Business degree, real estate, hairdressing and agriculture, to plumbing and airline pilot's licences. Many subjects are available to senior secondary school students under the polytech's nationwide ‘link’ scheme.

TOPNZ is recognised internationally as a leader in open learning. Open Learning provides maximum choice in how, when, where and at what pace students learn. It allows students to learn what they want, within the bounds of what they can afford or are willing to pay, while also ensuring the courses meet nationally recognised standards. This means open learning is extremely flexible. The study material and methods of delivery can be modified to meet any organisation or individual's needs. Students can enrol for most TOPNZ courses at any time of the year. Students have ready access to their tutors on a one-to-one basis through the use of a toll-free telephone line.

While printed material is still the main learning resource, other modes such as audio and video cassettes are increasingly part of correspondence material sent to students. Teleconferencing, face-to-face seminars, computer networking, workplace training packages, study groups and block courses are also used when closer student contact is needed. Future teaching mediums include video conferenceing and interactive video.

Another new initiative from this polytechnic is a range of stand-alone consultancy services to businesses. This includes services such as helping companies assess their current training resource standards and helping them design their own courses.

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. The New Zealand Diploma offers an advanced qualification for students who have completed a New Zealand Certificate in the same, or a related, area.

Fitter and welder, Wellington Polytechnic.

POLYTECH ENROLMENTS

Percent in selected programmes 1991

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 INDUSTRIAL PRACTICE CERTIFICATES ISSUED

Year ended MarchN.Z. DiplomaTechnicians certificates three-stageN.Z. certificates five-stage course finalTrade certificatesAdvanced trade certificatesIndustrial practiceTypingShorthandIndustrial Practice
IntermediateBasic
Source: NZ Qualifications Authority.
1,986..2315022 2457241 455........
1,987..1794943 3211 0571 3182 230103....
1,988..3724552 8909801 6772 18960....
1,989..3489053 1859434 5365 202....
1,990..755612 7831 0425 7314 528217....
1,991161041 3722 507633......4 5215 150

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. Many 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.

Sign language interpreter with students in course for the hearing impaired, Wellington Polytechnic.

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 statutory role in the promotion and facilitation of career development and transition education programmes. The administration of Link is one of the sub-outputs in the Document of Accountability to be signed with the Minister. Decisions on the Link courses to be purchased are made by 22 Link Advisory Committees which represent school interests. There is over 50 percent female participation in these courses.

Table 8.19. ENROLMENTS AT POLYTECHNICS 1991

Level of programmeTotal
MaleFemaleTotal

* 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 vocational18 37212 96131 333
Level 4—Inservice*246522768
Level 5—N.Z. Certificate/Diploma
            National/Advanced
            National Certificate14 28913 19527 484
Level 6—National Diploma/Polytechnic Degree1 8092 3484 157
Level 8—Access/Foundation/Pre-employment2 7612 0444 805
            Total37 47731 07068 547

Continuing education

National Resource Centre for Adult Education and Community Learning. In 1990 the resource centre was established to: promote and assist the adult and normal education needs of the community, collect and distribute information resources; act as a network centre for people and groups involved in adult and community learning; set up and monitor research and help groups with their own research projects; and accommodate national community learning organisations. This centre is funded by a grant from the Ministry of Education.

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 nonformal 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 nonresidential), 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.

Education consultant Rose Pere (of Tuhoe and Ngati Kahungungu descent).

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. In July 1991 there were the equivalent of 2023 full time adult students attending day classes at secondary schools. This is in addition to the community education programmes in schools which had 65 452 enrolments.

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 30 863 in 1991.

Correspondence education. The main agencies in the field of distance education are the Correspondence School, the extramural studies department of Massey University (with 13 312 students enrolled in 1991), and the Open Polytechnics of New Zealand (with 17 768 students enrolled at 31 July 1991).

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 entitlement 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.

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, Adult Reading and Learning Assistance and Te Ataarangi 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, New Plymouth, Kapiti Coast, Wellington, Lower and Upper Hutt, Manawatu, 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.

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 fours 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; Education Review Office; Teacher Registration Board; Maori Education Foundation; New Zealand Qualifications Authority; Education and Training Support Agency; Career Development and Transition Education Service—Quest Rapuara; Open Polytechnic of New Zealand.

  • 8.2–8.3 Ministry of Education.

Special articles

Ministry of Education; Ministry of Women's Affairs; New Zealand Federation of University Women.

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).

New Zealand University 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 Education Review Office (Parl. paper E. 39)

Report of Education and Training Support Agency (Parl. paper E. 46)

Report of Career Development and Transition Education Service (Parl. paper E. 27)

Report of New Zealand Qualifications Authority (Parl. paper E. 44)

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).

Secondary Staffing Survey. Research and Statistics Division, Ministry of Education (annual).

Chapter 9. Justice and law

Police removing body of homicide victim.

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. 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. The highest appeal court in New Zealand, the 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. The High Court of New Zealand was first established (as the Supreme Court) 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 six masters: Master Anne Gambrill, Master J. W. Hansen, Master R. P. Towle, Master J. H. Williams Q.C., Master T. Kennedy Grant and Master P. F. Feenstra.

Table 9.1. JUDGES OF THE COURT OF APPEAL AND HIGH COURT*

* As at 3 September 1992.

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. Sir Maurice Casey; Rt. Hon. T. M. Gault; Rt. Hon. I. L. McKay; Rt. Hon. M. Hardie-Boys.
High Court:Rt. Hon. Sir Thomas Eichelbaum, G.B.E.; Hon. R. I. Barker, Hon. A. D. Holland; Hon. T. M. Thorp; Hon. L. M. Greig; Rt. Hon. T. M. Gault; 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. C. C. Fraser; Hon. D. P. Neazor; Hon E. W. Thomas; Hon. P. G. S. Pennlington; Hon. P. B. Temm; Hon. D. A. R. Williams; Hon. P. Blanchard; Hon. R. G. Hammond.

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.

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, child support, 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.

Wellington Small Claims Court.

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. Sometimes referred to as case law or judge-made law, the common law is based on general rules developed by the courts in England over centuries and became part of the law of New Zealand in 1840. Like any statute law, the common law continues to develop. When applying the common law, New Zealand courts take into account common law principles developed in New Zealand and other parts of the Commonwealth, notably the United Kingdom, Australia, and Canada. The common law can be reversed or amended by statute law.

New Zealand statutes. 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.

  • 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.

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.

Law Society investigation solicitor among some of the files relating to collapsed Upper Hutt law firm, Renshaw Edwards.

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.

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 1992, a total of 537 295 offences were reported to police, an increase of 6.5 percent from the previous year. The clearance rate was 39.6 percent in 1992 compared with 41.9 percent in 1991. The number of violent offences increased from 28 439 for the year ended 30 June 1991 to 29 120 at the same time in 1992.

During the year 75 murders were investigated. The number of robberies reported was 1782, an increase of 16.5 percent over the previous year. Aggravated robbery increased by 23.4 percent from 853 offences for the year ended 30 June 1991 to 1053 in 1992. Non-aggravated robbery increased by 6.5 percent from 542 offences to 577 offences.

There were 926 reported sexual violations (a 10 percent increase in the number of offences reported in 1991). The clearance rate decreased from 70 percent to 66.4 percent. The number of sexual offences increased by 4.6 percent, while that of sexual attacks increased by 88 (3.6 percent).

During 1991–92 non-cannabis drug offences decreased by 1.3 percent to 1272 when compared with the previous year. Cannabis offences increased by 4.1 percent to 19 488 and of these, 12 314 cases were prosecuted.

In total, reported drug and anti-social offences decreased by 2 percent from 46 739 to 45 780 and the clearance rate was 88.9 percent.

Dishonesty offences reported increased and accounted for the major proportion of all reported offences, 65.1 percent compared with 63.5 percent in 1991. Within this group, burglary offences increased by 8.7 percent from 93 516 to 101 633, theft increased by 9.6 percent from 134 585 to 147 471, vehicle takings and interference increased by 5.6 percent from 63 812 to 67 365 and fraud increased by 18.4 percent from 25 312 to 29 959.

Of the 28 police districts, only five reported a decrease in the number of reported offences during the year ended 30 June 1992.

Children and young persons (i.e., those under 17 years of age) were responsible for 17.9 percent of cleared offences and 44.2 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, 30 percent of cleared offences involved children and 55.3 percent of offenders in this category were aged under 21 years.

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.

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.

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.

In the past, the statistics on offending and sentencing presented in the Yearbook were taken from the Department of Statistics’ annual publication Justice Statistics. However, this series was ceased in 1991, with 1990 being the last year for which statistics are available from that source. The statistics and analysis presented below are from the Department of Justice's publication Conviction and Sentencing of Offenders in New Zealand: 1982 to 1991. Whereas, Justice Statistics concentrated on detailed offending statistics for a given year, Convicion and Sentencing provides less detail and focus more on trends over time.

Convictions

The total number of prosecutions for non-traffic offences was fairly stable over the period from 1986 to 1991, except for the 1990 year, when a lower number of prosecutions was recorded.

In each year, about 70 percent of all prosecutions resulted in conviction. The severity of offences which lead to conviction has continued to increase. During 1991, convictions related to much more serious offences (on average) than convictions 10 years earlier.

Table 9.2. CONVICTIONS FOR ALL OFFENCES BY TYPE OF OFFENCE*

Offence type19821983198419851986
Violent6 4086 6667 4057 6367 993
Other against persons1 9632 2392 5892 6543 223
Against property44 94149 27750 03950 14753 780
Involving drugs7 7227 8029 76110 94311 701
Against justice4 0774 8555 1425 1775 447
Against good order6 5106 4916 9117 4198 031
Miscellaneous29 02724 85324 85524 89122 403
            Total100 648102 183106 702108 867112 578
Offence type19871988198919901991

* Except traffic

Source: Department of Justice.

Violent9 5488 7639 6398 7399 593
Other against persons3 3783 2262 8992 5332 474
Against property55 21552 64952 92446 40053 732
Involving drugs12 32512 89611 59211 32811 571
Against justice5 9947 4919 0959 49810 529
Against good order7 6577 1436 0815 0355 294
Miscellaneous17 47819 63618 33514 68314 136
            Total110 810112 589110 56598 216107 329

CONVICTIONS, NON-TRAFFIC OFFENCES

By type of offence

New Zealand's first female law graduate, Ethel Benjamin.

The number of convictions for violent offences increased steadily during the early and middle part of the decade, but may now be stabilising. However, the number of convictions relating to serious violent offences has continued to increase. There was a considerable increase in the number of convictions for serious violent sexual offences (rape, unlawful sexual connection, and indecent assault) over the 10 year period. The most serious category of assault, injuring or wounding, shown a steadily increasing trend between 1982 and 1991, with the 1991 figure (373) being 117 percent higher than the 1982 figure (172). The number of convictions for aggravated robbery, murder, manslaughter, and attempted murder all appeared to be higher (on average) in the second part of the decade than in the first five years. Violent offences accounted for 9.3 percent of non-traffic offences in 1991, compared to 6 percent in 1982.

Table 9.3. CONVICTIONS FOR VIOLENT OFFENCES, 1982 TO 1991

Offence type19821983198419851986
Murder620111541
Manslaughter*3532222322
Attempted murder5113514
Kidnapping or abduction5451254173
Rape66629994119
Unlawful sexual connection16
Attempted sexual violation3624303726
Indecent assault249245311317400
Aggravated burglary§1
Aggravated robbery125194209249327
Robbery136138148159233
Injuring or wounding172161172175210
Aggravated assault406406537553522
Other assault4 9695 1475 6385 7735 730
Other violence149185190195259
            Total6 4086 6667 4057 6367 993
Offence type19871988198919901991

* Includes convictions for manslaughter involving the use of a motor vehicle.

† Unlawful sexual connection was introduced by the Crimes Amendment Act (No. 3) 1985 and came into force 1 February 1986.

‡ Before 1986 the figures shown for attempted sexual violation relate to the offence of attempted rape.

§ Introduced 28 October 1986, aggravated burglary involves a person committing burglary or breaking and entering who carries, or uses, a weapon may be charged with aggravated burglary, under the Crimes Amendment Act (No. 2) 1986.

Includes both robbery and assault with attempt to rob.

Source: Department of Justice.

Murder4724253828
Manslaughter*3620324637
Attempted murder14105914
Kidnapping or abduction8249544581
Rape13982143117160
Unlawful sexual connection80111157202277
Attempted sexual violation4740523457
Indecent assault461468559538729
Aggravated burglary§2168495160
Aggravated robbery263291321246295
Robbery155162153146172
Injuring or wounding234285335320373
Aggravated assault584712777666703
Other assault6 2976 9026 6495 9546 247
Other violence303324328327360
            Total8 7639 5489 6398 7399 593

Table 9.4. CONVICTIONS FOR OTHER OFFENCES, AGAINST THE PERSON, 1982 TO 1991

Offence type19821983198419851986
Incest2427273840
Other sex offence*241241254306298
Obstruct/resist1 6071 8692 1552 1972 734
Other91102153113151
            Total1 9632 2392 5892 6543 223
Offence type19871988198919901991

* Sex offences reported in the violent offences category are not included in these figures.

† Obstructing or resisting a police officer, traffic officer or other official.

Source: Department of Justice.

Incest4840511724
Other sex offence*240320239359288
Obstruct/resist2 9172 6822 4262 0181 981
Other173184183139181
            Total3 3783 2262 8992 5332 474

Between 1982 and 1991, property offences accounted for between 45 percent and 50 percent of all convictions for non-traffic offences. The number of convictions for burglary had been declining in recent years, but the number in 1991 was slightly higher than the number for 1990.

Table 9.5. CONVICTIONS FOR PROPERTY OFFENCES, 1982 TO 1991

Offence type19821983198419851986
Burglary8 1028 7918 0397 6117 962
Theft12 87014 00414 09414 65714 779
Receiving stolen goods2 0762 3562 6492 5772 880
Motor vehicle conversion3 9574 3223 8464 1764 352
Fraud*11 73313 07614 27014 27515 800
Arson124142167153220
Wilful damage3 1593 4793 8233 4064 065
Other2 9203 1073 1513 2923 722
            Total44 94149 27750 03950 14753 780
Offence type19871988198919901991

* Includes fraud, false pretences and forgery.

Source: Department of Justice.

Burglary8 0617 2516 9926 6517 924
Theft15 36315 30314 69913 01814 243
Receiving stolen goods3 1162 7182 5252 9383 237
Motor vehicle conversion3 9563 8333 6422 9503 360
Fraud*16 85215 23716 95513 48016 850
Arson173182221181144
Wilful damage3 9383 9653 8743 4383 692
Other3 7564 1604 0163 7444 282
            Total55 21552 64952 92446 40053 732

The vast majority of convictions for drug offences involve using cannabis or dealing in cannabis. In 1991, there were 50 percent more convictions relating to drug offences than in 1982.

Table 9.6. CONVICTIONS FOR DRUG OFFENCES, 1982 TO 1991

Offence type19821983198419851986
Use cannabis4 65144 9056 2737 2387 691
Use heroin1711182013
Use L.S.D.2432131910
Use cocaine5414107
Use other drug303152148233407
Deal in cannabis1 7801 8582 0962 0532 045
Deal in other drug144105238222137
Other drug offence7987359611 1481 391
            Total7 7227 8029 76110 94311 701
Offence type19871988198919901991
Source: Department of Justice.
Use cannabis7 5387 9197 0986 5716 491
Use heroin3433382434
Use L.S.D.2234235636
Use cocaine5512103
Use other drug427442424349321
Deal in cannabis2 5262 7102 4942 7943 077
Deal in other drug197215240353352
Other drug offence1 5761 5381 2631 1711 257
            Total12 32512 89611 59211 32811 571

The number of convictions for offences against the administration of justice more than doubled between 1982 and 1991. A major contributing factor was the steady increase in the number of convictions for breach of periodic detention (an increase of 132 percent over the 10 year period). The number of convictions for breach of bail and for breach of parole have also increased rapidly in recent years.

Table 9.7. CONVICTIONS FOR OFFENCES AGAINST THE ADMINISTRATION OF JUSTICE, 1982 TO 1991

Offence Type19821983198419851986
Breach of periodic detention2 4683 0953 2873 3653 719
Breach of probation/supervision659660679620502
Breach of parole*251
Breach of bail
Other9501 1001 1761 1901 175
            Total4 0774 8555 1425 1775 447
Offence Type19871988198919901991

* The offence of breach of parole was introduced on 1 October 1985 by the Criminal Justice Act 1985.

† The offence of breach of bail was introduced on 1 August 1987 by the Summary Proceedings Act (No 2) 1987.

Source: Department of Justice

Breach of periodic detention4 0554 2694 8954 9415 720
Breach of probation/supervision426408477513466
Breach of parole*125150194221254
Breach of bail1721 2411 8992 2402 405
Other1 2161 4231 6301 5831 684
            Total5 9947 4919 0959 49810 529

Between 1986 and 1990 there was a rapid decline in the number of convictions for offences against good order, and there was only a slight increase in this figure in 1991.

Table 9.8. CONVICTIONS FOR OFFENCES AGAINST GOOD ORDER, 1982 TO 1991

Offence type19821983198419851986
Riot2023263224
Unlawful assembly78765010876
Possess offensive weapon*6357619351 0251 238
Treatening behaviour232223264252288
Offensive language1 2661 4051 4561 7202 001
Disorderly behaviour2 7742 9793 0963 1233 221
Other1 5051 0241 0841 1591 183
            Total6 5106 4916 9117 4198 031
Offence type19871988198919901991

* A new offence “possession of a knife”, was introduced on 28 October 1986 by the Summary Offences Amendment Act 1986. This offence was included in the category of “possession of an offensive weapon”.

Source: Department of Justice.

Riot1353586
Unlawful assembly5840323032
Possess offensive weapon*1 4081 4831 3181 1051 112
Threatening behaviour301224131133129
Offensive language1 6681 3031 028693630
Disorderly behaviour3 2352 9842 6552 0492 197
Other9861 07488210171 188
            Total7 6577 1436 0815 0355 294

A large majority (83 percent) of the cases which resulted in a conviction in 1991 for a non-traffic offence involved a male offender. Forty-six percent of the cases involved European offenders, 37 percent involved Maori offenders, 6 percent involved Pacific Island offenders, 1 percent involved offenders of some other ethnicity, and for 10 percent of the cases the ethnicity of the offender was not recorded in the data. Twenty-one percent of the cases which resulted in a conviction in 1991 for a non-traffic offence involved a teenage offender, and another 29 percent involved an offender aged between 20 and 24 years.

Traffic offence convictions. Traffic offences comprised the largest single category of offences for each year between 1982 and 1991. In 1991, for example, 43 percent of all convictions resulted from traffic offences. The number of convictions reported in this chapter include traffic offences prosecuted by the Ministry of Transport and local authorities, as well as prosectutions by the police.

Some offences (such as parking or speeding offences) are dealt with as infringements, and do not result in a conviction being entered against the offender. Infringement offences do not appear in the data used to produce this report, as they do not result in a conviction. Between 1982 and 1991, amendments to the Transport Act 1962 resulted in a number of minor traffic offences being decriminalised and subsequently being dealt with as infringements, which resulted in marked changes in the number of convictions for traffic offences in this period. A summary of reported road traffic offences can be found in section 20.4, Road transport.

Table 9.9. CONVICTIONS FOR TRAFFIC OFFENCES, 1982 TO 1991

Offence type19821983198419851986
Drive causing death135151186155227
Drive causing injury8988529709891 114
Driving with excess alcohol13 97816 92017 77517 41018 438
Driving while disqualified5 2475 6945 9425 9076 559
Other traffic60 85948 99041 97038 68639 548
            Total81 11772 60766 84363 14765 886
Offence type19871988198919901991
Source: Department of Justice.
Drive causing death186181205227168
Drive causing injury1 1891 1971 3391 3901 518
Driving with excess alcohol20 31221 41225 33624 75329 456
Driving while disqualified7 1768 60310 51312 08713 313
Other traffic47 00569 12974 65739 69535 434
            Total75 868100 522112 05078 15279 889

The decriminalisation of some offences means that it is not possible to compare the number of convictions for traffic offences for each year over the 10 year period. This complication applies only to minor traffic offences, and does not affect figures shown for the categories driving causing death, driving causing injury, driving with excess alcohol, or driving while disqualified.

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.

Supervision 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 1992, 6204 supervision orders were imposed and the number of people sentenced to supervision, as at 30 June 1992, was 4824.

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 1991, 15 534 community service orders were imposed and the number of people subject to that sentence, as at 30 June 1992, was 8177.

Periodic detention. The maximum length of the sentence is 12 months and during that period offenders are required to place themselves in the custody of the warden of a periodic detention centre for specified periods, the normal period of custody being nine hours each week. While in custody the offender usually carries out supervised work in the community. During the year ended 30 June 1992, 27 486 periodic detention orders were imposed and the number of people subject to that sentence, as at 30 June 1992, was 8077.

Community care. This sentence requires the consent of the offender, who 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 1992, 1330 orders for community care were imposed, and the number of people subject to that sentence, as at 30 June 1992, was 720.

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 19 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 Community Corrections Division 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 10 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 10 years of the sentence the offender may be released on parole for life.

PRISONERS

Numbers in prison per 10 000 mean population

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.

Sentencing

Over the last 10 years, there has been a very rapid growth in the use of the two most severe sentences, custody and periodic detention. In 1991, 39 percent of non-traffic cases resulted in one of these sentences compared to 18 percent in 1982.

The number and proportion of cases which resulted in a custodial sentence were considerably higher in 1990 and 1991 compared with the privious eight years. In 1991, 5961 cases resulted in a custodial sentence, an increase of 18 percent on the number of custodial sentences in 1982. The increase in seriousness of cases resulting in custodial sentences over the 10 year period, led to an increase in the average length of custodial sentences. In 1991 the average custodial sentence was 11.7 months in length.

SENTENCING, NON-TRAFFIC OFFENCES

By type of offence

Table 9.1. SENTENCING OF NON-TRAFFIC OFFENCES*

Sentence type19821983198419851986
Custodial5 0365 5745 7945 0725 621
Periodic detention5 2476 3946 6987 1018 134
Community care261797
Community service1 3911 4821 4261 4871 281
Probation/supervision2 7272 6462 4932 5172 798
Monetary40 36036 77638 56940 43039 642
Deferment§1 6321 8402 0532 0722 061
Other264269373301145
No sentence/costs2 189
            Total56 65754 98157 40659 24160 479
Sentence type19871988198919901991

* Only the most serious sentence imposed is shown for cases where more than one sentence was imposed.

† Community care was introduced as a new sentence on 1 October 1985 by the Criminal Justice Act 1985.

‡ Monetary penalties are: fines; compensation ordered under the Criminal Justice Act 1954; and sentences of reparation imposed under the Criminal Justice Act 1985.

§ To come up for sentence if called upon.

Mainly driving disqualifications and deportation orders.

Because of incomplete data in the category “No sentence/costs” no cases from that category were included in the totals.

Source: Department of Justice.

Custodial5 6715 2905 6615 9265 961
Periodic detention9 38510 15811 14111 27513 063
Community care683584604527795
Community service1 3351 5702 0342 5103 794
Probation/supervision3 1123 1843 0062 3312 289
Monetary35 04732 80127 74821 49920 063
Deferment§2 4332 6702 6782 1902 711
Other4347403230
No sentence/costs2 5022 7712 5181 9302 611
            Total57 70956 30452 91246 29048 706

Over 1982 to 1991 there was a dramatic increase in the use of periodic detention. The number of cases which resulted in periodic detention for a non-traffic offence increased from 5 247 in 1982 to 13 063 in 1991, an increase of 149 percent. In 1982 only 9 percent of cases resulted in a sentence of periodic detention, but by 1991 the proportion reached 27 percent.

The number of cases which resulted in community service has increased strongly over the last few years. In 1982, 2 percent of cases resulted in a sentence of community service, compared to just under 8 percent in 1991. One third (34 percent) of community service cases relate to female offenders, a higher proportion than for other community-based sentences. In 1991 the number of cases resulting in community care was the highest since 1986, the first full year that the sentence existed.

The number of cases involving a non-traffic offence for which the most serious sentence imposed was a monetary penalty (usually a fine) has halved since 1982, decreasing from 40 360 in 1982 to 20 063 in 1991. In 1991 monetary penalties comprised 41 percent of all such sentences imposed compared to 71 percent in 1982.

Sentencing of traffic offences. The number of convictions for serious traffic offences, most notably driving while disqualified and driving with excess alcohol, increased considerably over the 10 year period under examination. The decriminalisation of some minor traffic offences means that it is not possible to compare the overall number of convictions for traffic offences in each year.

Table 9.11. SENTENCING OF TRAFFIC OFFENCES*

Sentence type19821983198419851986
Custodial9131 0991 2761 0671 234
Periodic detention1 8532 5252 8302 8093 673
Community caret80217
Community service483658641533677
Probation/supervision297375335338366
Monetary52 61243 33640 28739 06838 766
Deferment§2446453224
Driving disqualification247312326313371
Other
No sentence/costs1 068
            Total56 42948 35145 74044 24045 328
Sentence type19871988198919901991

* Only the most serious sentence imposed is shown for cases where more than one sentence was imposed.

† Community care was introduced as a new sentence on 1 October 1985 by the Criminal Justice Act 1985.

‡ Monetary penalties we: fines; compensation ordered under the Criminal Justice Act 1954; and sentences of reparation imposed under the Criminal Justice Act 1985.

§ To come up for sentence if called upon.

Because of incomplete data in the category “No sentence/costs” no cases from that category were included in the totals.

Source: Department of Justice.

Custodial1 3601 4941 9192 0842 267
Periodic detention4 3205 4178 2658 54210 216
Community caret178193244245324
Community service7211 0302 4503 1124 839
Probation/supervision452565714607601
Monetary45 09058 03666 66639 50835 897
Deferment§3373897592
Driving disqualification4175689086291 102
Other6477
No sentence/costs1 4702 4023 1471 5531 489
            Total52 57167 44081 33254 80255 338

The number of cases involving a traffic offence which resulted in imprisonment increased markedly over the 10 year period. In 1982 there were 913 cases which resulted in a custodial sentence, but by 1991 the figure had increased to 2267 cases. In 1991, sentences were longer, on average, than they had been 10 years earlier.

The number of community-based sentences which were the result of a traffic offence increased significantly over the 10 year period. A sizeable proportion of all cases sentenced to a community-based sentence related to a traffic offence. In 1991, 44 percent of all periodic detention cases, 56 percent of all community service cases, 21 percent of all supervision cases, and 29 percent of all community care cases were the result of a traffic offence.

Because of the large number of cases resulting from driving while disqualified (10 022 in 1991), a sizeable number of offenders were imprisoned as a result of this type of offence, even though the proportion of cases resulting in a custodial sentence was not large (between 15 percent and 17 percent in 1991). In 1991, 1661 cases of this type resulted in imprisonment and comprised 20 percent of all cases, traffic and non-traffic, resulting in imprisonment.

The proportion of cases involving driving with excess alcohol which resulted in periodic detention increased from 7 percent in 1982 to 18 percent in 1991. In 1991, cases involving driving with excess alcohol comprised 39 percent of all cases sentenced to community service.

About 2 percent of all convictions for a traffic offence involve driving offences which result in death or injury. Between 1986 and 1990 there was an average of 1129 proved cases each year relating to a driving offence which resulted in death or injury.

The majority of cases were prosecuted by the Ministry of Transport, but the more serious cases tended to have been prosecuted by the police. Offenders aged between 17 and 24 years were responsible for the greatest number of proved cases. Men were responsible for 81 percent of all proved cases, and cases involving male offenders tended to be more serious, on average, than cases involving female offenders.

Over three-quarters of all proved cases involving a driving offence, which resulted in death or injury, related to a charge of careless driving causing injury. There was little change over the five year period in the total number of cases which involved the use of alcohol. In 1990, 14 cases involved a charge of reckless or dangerous driving causing death, and a further four cases involved in charge of manslaughter.

Over the five year period there was a slight increase in the proportion of cases where a custodial sentence was awarded, and a sizeable increase in the average length of sentences. In 1986 the average length of custodial sentences awarded for these offences was seven months, but by 1990 the average had increased to 14 months. Cases involving reckless or dangerous driving were most likely to result in a custodial sentence.

The majority of cases resulted in a monetary penalty throughout the five year period. However, there was a substantial drop in the proportion receiving a monetary penalty as the most serious sentence imposed: from 76 percent in 1986 to 61 percent in 1990.

Almost all proved cases resulted in disqualification from driving for some period.

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 19 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*

CategoryInstitution Capacity

* At 28 August 1992.

† Includes Napier Prison (minimum security).

‡ Includes Wanganui (City) Prison (minimum security).

§ Included in other categories.

Included in Arohata Women's Prison.

Maximum securityAuckland Prison (Maximum Security Division) 210
Medium securityAuckland Prison (Medium Security Division) 300
Christchurch Prison428
Invercargill Prison160
Mangaroa Prison260
Mount Eden Prison392
Rimutaka Prison222
Waikeria Prison540
Wanganui Prison277
Wellington Prison112
Minimum securityDunedin Prison 55
Manawatu Prison177
New Plymouth Prison103
Ohura Prison75
Rangipo Prison Farm220
Rolleston Prison186
Tongariro Prison Farm182
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§
Female institutions and remand centresArohata Women's Prison 105
Christchurch Women's Prison58
Mount Eden Prison (female division)54§

The increase in the number of cases given custodial sentences, together with the increase in the length of custodial sentences has resulted in a marked increase in the number of inmates in New Zealand prisons.

Nearly half (48 percent) of the cases which resulted in a custodial sentence for some offence other than a traffic offence related to Maori offenders; 43 percent to European offenders; and 7 percent to Pacific Islanders. Most cases which resulted in a custodial sentence related to a person aged under 30: 22 percent related to a teenage offender, 32 percent to an offender aged between 20 and 24 years; and 20 percent to an offender aged between 25 and 29 years.

During 1991 there was an average of 3752 sentenced inmates in prison at any one time, an increase of 58 percent on the average muster during 1982 (2378). The muster of inmates remanded in custody has also increased. In 1991 the average number of remand inmates in prison at any one time was 430, an increase of 80 percent over the figure for 1982 (239 inmates).

The following detailed statistics are taken from the census of inmates carried out on 14 November 1991 and published in the Department of Justice's Census of Prison Inmates 1991. The information was obtained directly from the prisons or extracted from the Wanganui Computer.

As at 14 November 1991 all prisons had less than the maximum manageable number of inmates. In total, there were 3821 sentenced inmates, comprised of 139 females and 3682 males. In addition, there were 411 remand inmates within the prisons (nine female and 402 male) making a grand total of 4232 prisoners. A further 19 remand prisoners were held in police cells.

Paremoremo Prison.

Age and ethnicity—in total, 2356 inmates (62 percent) were under the age of 30, while 40 percent of this figure (1515 inmates) were under the age of 25. Just over 56 percent of female inmates were under 30 years of age compared with 62 percent of male inmates. Fourteen percent of inmates were 40 years or over.

Table 9.13. AGE DISTRIBUTION OF INMATES*

AgeFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

* As at 14 November 1991.

Source: Department of Justice.

14–1996.941011.241911.0
20–243224.41 06429.01 09628.9
25–293325.280822.184122.2
30–343224.455415.158615.4
35–39129.23258.93378.9
40–49118.43389.23499.2
50+21.51644.51664.4
            Total1311003 6631003 794100

Of the 3537 inmates surveyed, almost all identified only one ethnic group. Of the 121 female respondents, 39 percent specified New Zealand European, 46 percent New Zealand Maori and 5 percent Pacific Island. Forty percent of male inmates specified New Zealand European, 43 percent New Zealand Maori and 9 percent Pacific Island only.

When ethnic origin by age group was surveyed, New Zealand Maori under the age of 30 years made up 71 percent of inmates, while (in the same age group) 57 percent of inmates were identified as New Zealand European and 62 percent were of a Pacific Island ethnic group. In the 40 years and over category, 18 percent of the inmates were New Zealand European, 13 percent Pacific Island and 8 percent New Zealand Maori.

Major offence—the census shows that 51 percent of all male inmates were imprisoned for violent crimes. The next largest offending group were those inmates imprisoned for offences against property (24 percent), followed by traffic offenders (8.9 percent, not including offences where death or injury resulted) and then by drug offenders (7.3 percent).

Table 9.14. MAJOR OFFENCE OF INMATES*

Major offenceFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

* As at 14 November 1991

Source: Department of Justice.

Violence443161 88451.41 92850.8
Other against persons32.31464.01493.9
Against property523,91786023.591224.0
Involving drugs2116.02687.32897.6
Good order200.5200.5
Traffic64.63278.93338.8
Against justice10.81163.21173.1
Miscellaneous43.1421.1461.2
            Total1311003 6631003 794100

The most common violent offences for male inmates given custodial sentences were aggravated robbery (18 percent of violent offenders and 9 percent of all inmates) and injuring and wounding (13 percent of violent offenders and 7 percent of all inmates).

The most significant major offence groups represented for females were property offences (40 percent) and violent offences (34 percent). A smaller proportion of female prisoners were incarcerated for drug offences (16 percent) and six females were in custody for traffic offences. The most common violent offences for which female offenders were given custodial sentences were murder (25 percent of all violent offenders and 8 percent of all inmates) and injuring and wounding (26 percent of violent offenders and 8 percent of all inmates).

Thirty-nine inmates were in prison for a driving offence involving death or injury. Eight percent of all inmates were imprisoned for driving while disqualified and 0.4 percent were in prison for drink-driving.

Sentence length—the figures show that 34 percent of female inmates and 26 percent of male inmates were serving a total custodial sentence of less than one year in duration. A total of 11 females and 183 males were serving sentences of life imprisonment. Forty males were serving preventive detention sentences. Excluding life and preventive detention sentences, four females (3 percent of all female inmates) and 666 males (18 percent of all male inmates) were sentenced to a custodial sentence of at least five years in duration.

Table 9.15. TOTAL SENTENCE LENGTH FOR INMATES*

Sentence lengthFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

* As at 14 November 1991

Source: Department of Justice

Under 3 months43.1431.2471.2
3 months and under 6 months118.42727.42837.5
6 months and under 1 year3022.962917.265917.4
1 and under 2 years3123.773920.277020.3
2 and under 3 years2317.644712.247012.4
3 and under 5 years1713.064417.666117.4
5 and under 7 years32.337910.338210.1
7 and under 10 years10.82115.82125.6
10 years and over762.1762.0
Life118.41835.01945.1
Preventive detention401.1401.1
            Total1311003 6631003 794100

Female prison officer.

Fifty-three percent of female inmates and 38 percent of male inmates has at least one year in custody remaining to be served. Most inmates are released on parole or remission before the expiry of their sentence.

Offending history—thirty-nine percent of female inmates had had a previous term in custody, compared to 61 percent of male inmates who had served a previous prison term. Sixty seven percent of female inmates and 82 percent of male inmates had at least six convictions recorded prior to the census date, while 44 percent of female and 49 percent of male inmates had more than 20 convictions.

Table 9.16. TOTAL TIME SPENT IN PRISON ON PREVIOUS OCCASIONS*

Total time spent in prisonFemaleMale
NumberPercentNumberPercent

* As at 14 November 1991.

Source: Department of Justice.

No previous incarcerations8061.11 44539.5
Under 6 months2116.071719.6
6 months and under 1 year107.63559.7
1 and under 2 years107.642611.6
2 and under 3 years32.32386.5
3 and under 5 years53.82918.0
5 and under 7 years21.51233.4
7 and under 10 years00.0541.5
10 years and over00.0100.3
            Total1311003 659100

Traffic offenders—at the time of the census six female and 327 male inmates were imprisoned for traffic offences (other than those which involved death or injury). Almost all traffic offenders had a total of at least six convictions, 78 percent had more than 20 convictions and 33 percent had more than 50 convictions.

Classification status—fifty-four percent of the male inmates at the time of the census had a minimum security classification status, 39 percent were classified as suitable for medium security and only 4 percent had a maximum security classification. The majority of female inmates had a minimum security classification status.

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 full time 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, inservice training for prison officers and undertakes treatment for individuals and groups. 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. 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 and 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, each controlled by an 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.

POLICE STRENGTH

Population per police officer

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 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 1992 was 5307 sworn personnel, including 523 women and 1236 non-sworn full time equivalent positions.

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 1992, armed offenders squads attended 433 incidents, compared with 304 in 1991.

A total of 204 members throughout the country now perform armed offenders squad duties on a part time basis.

Forensic scientist dusting for fingerprints.

Special Tactics Group. During 1992 the Police Anti-terrorist Squad changed its title to Special Tactics Group to better reflect its expertise as an extension of the Armed Offenders Squad. This group is 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 860 police-controlled search and rescue operations during the 1992 year. 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, such as the child abuse programme, “Keeping Ourselves Safe”, and the drug education programme “DARE”.

Police dogs. A comprehensive network of police dogs and handlers is maintained throughout New Zealand. During the year ended 30 June 1992 police dogs were deployed on 28 023 incidents. There were 74 general purpose dogs (including 19 dual trained to locate narcotics), 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 1992 there were 200 community constables spread over all six police regions.

Youth aid section. Youth aid staff throughout the country as at 30 June 1992 totalled 114 full time equivalent positions and 34 part time youth aid staff. There were 294 offences committed by children and young persons and 58 Family Group Conference referrals per officer.

Community Support Groups. There were 20 374 community support groups throughout New Zealand as at 30 June 1992, and 89 victim support groups.

National Drug Intelligence Bureau. For the year ending 30 June 1992 there were a total of 20 760 drug offences reported, of which 91 percent were cleared.

Table 9.17. DRUG SEIZURES BY SUBSTANCE

Substance19911992
Source: New Zealand Police.
Heroin (grams)1 118308
Heroin (millilitres)22112
Cocaine (grams)3 6372 149
Opium (grams)3042
Morphine (grams)3226
Synthetic (tabs)2692 606
LSD (tabs)44 06827 299
Psilocybine (grams)2 8502 149
Amphetamine (grams)32320
Cannabis plant175 726300 041
Cannabis leaf (kilograms)580432
Cannabis oil (grams)1 3993 811
Cannabis resin (grams)1 2181 504
Cannabis seed (grams)610623

In the year to June 1992 search without warrant powers were exercised in 2312 cases, resulting in 1867 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 1992 can be found at the beginning of section 9.2, Criminal justice.

On 1 July 1992, the New Zealand Police and the Ministry of Transport's Traffic Safety Service merged to concentrate resources and target serious traffic offences.

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 1992, 1011 complaints were recorded, 715 of which were fully investigated; 220 were upheld.

Contributors

  • 9.1 Department of Justice.

  • 9.2 New Zealand Police; Department of Justice.

  • 9.3 Department of Justice.

  • 9.4 New Zealand Police.

Special articles

Council for Legal Education; Department of Justice; Law Commission; New Zealand Police; Bronwyn Labrum (Ethel Benjamin), Fiona Farrell Poole (Amy Bock), Lynley Hood (Minnie Dean), The Book of New Zealand Women, eds Macdonald, Penfold and Williams, Bridget Williams Books Limited, 1991.

Former policewomen at 50 year reunion at the Royal New Zealand Police College, Porirua. Roa Morrisey (back) was the second longest serving police woman, working 36 years; Lottie Smith (centre) trained in 1943; and Nora Crawford was the first female detective, in 1957.

Further information

Conviction and Sentencing of Offenders in New Zealand: 1982 to 1991. Department of Justice.

Census of Prison Inmates 1991. Department of Justice.

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

Wellington school students celebrate one million minutes of reading outside school hours.

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. These central agencies charged with providing assistance to the arts in New Zealand are: the Queen Elizabeth II Arts Council of New Zealand (incorporating Te Waka Toi, the Council for Maori and South Pacific Arts and three regional councils); the Museum of New Zealand Te Papa Tongarewa; the New Zealand Film Commission; the New Zealand Historic Places Trust; National Archives; and the New Zealand Film Archive. The New Zealand Authors’ Fund, now administered by the Queen Elizabeth II Arts Council, compensates authors for royalties lost through having their books lent by libraries.

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 Cultural Conservation Advisory Council, established to support the conservation of movable cultural property; the Dictionary of New Zealand Biography; National Archives; and the Historical Branch.

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. 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 has been established to provide assistance to government on cultural matters. It assists government in its provision and management of cultural resources for the benefit of all New Zealanders. The ministry achieves this by:

  • Advising on cultural policy issues.

  • Reviewing cultural legislation.

  • Reviewing cultural projects.

  • Administering grants to cultural sector agencies.

  • Initiating projects, investigations and studies in the cultural sector.

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, the Queen Elizabeth II Arts Council of New Zealand and the Museum of New Zealand Te Papa Tongarewa 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, 1992–93

GroupGovernment assistanceLottery grant

* Subject to review of the CCAC.

Source: Ministry of Cultural Affairs; Lottery Grants Board; Historic Places Trust

 $(000)
Museum of New Zealand14,7462,000
Queen Elizabeth II Arts Council3,80718,661
New Zealand Film Commission1,0007,800
New Zealand Film Archive91600
New Zealand Historic Places Trust1,7851,750
Cultural Conservation Advisory Council350*
Antiquities Act costs21
Lottery community facilities11,037
National Archives10,129
Museum of New Zealand14,7462,000
Dictionary of New Zealand Biography989
New Zealand Symphony Orchestra7,600
Historical Branch (Internal Affairs)1,038
Ministry of Cultural Affairs1,335

Queen Elizabeth II Arts Council of New Zealand

The Arts Council is an independent statutory authority whose mission is “to secure the arts as a resource for all New Zealanders.”

The Arts Council has six goals. To:

  • Stimulate and support creative expression in all communities.

  • Invest in the development of Maori art.

  • Invest in the development of new work by New Zealand artists.

  • Invest in the development of arts industries.

  • Invest in the professional development of people working in the arts.

  • Ensure the provision of the information, skills, services and resources required within the Arts Council to achieve these goals.

The Queen Elizabeth II Arts Council of New Zealand operates under the Queen Elizabeth II Arts Council of New Zealand 1974 and the Public Finance Act 1989, but operates independently of Government. It is funded by the New Zealand Lottery Grants Board and the New Zealand Government. The legislation governing the Arts Council is currently under review.

The activities of the council consist of investment, advocacy and the fostering of partnerships. As an investor in the arts, the Arts Council makes grants to arts organisations and artists, under policies in line with council goals. As an advocate for the arts, it provides information, advisory and research services to the arts sector. Partnerships with sectors such as local government, education, health, justice and social welfare are also fostered, in order to encourage growth and development in arts activity.

Arts Council investment is governed by policy which ensures that funds are used for specified outcomes of benefit to New Zealanders. These benefits include access to the arts, audience development, community development, the development and support of infrastructure, innovation, international activity, marketing, professional development and the fostering of excellence and enterprise in the arts sector. Investment decisions concerning individual artists are made by peer panels of artists and art workers and, in all policy, the council endeavours to uphold the principles of the Treaty of Waitangi.

The council comprises five constituent councils. The Queen Elizabeth II Arts Council, the largest of the five councils, is the national funding organisation for the arts and an umbrella organisation for Te Waka Toi (the Council for Maori and South Pacific Arts) and the Northern, Central and Southern Regional Arts Councils, which in turn support the volunteer community arts councils.

Accountability is ensured through the work of councillors who set policy for the Queen Elizabeth II Arts Council, Te Waka Toi and the regional arts councils. Councillors are appointed by the Minister of Cultural Affairs, except in the case of each regional arts council where four of the nine members are elected annually by community arts councils.

Projects in the major art forms of craft, dance, film, literature, music, theatre and visual arts are administered by the Arts Development Unit of the Queen Elizabeth II Arts Council. In each art form, granting schemes support a range of initiatives including new innovative work, residencies, tours, exhibitions, seminars, master classes, international activity, market development, professional development, cultural exchange, industry and infrastructure development and commissions.

A range of professional arts companies in the fields of theatre, dance, music and the visual arts are supported through the Arts Investment Programme. In addition to base grants to support artistic and administrative activities, these companies are eligible to apply for contestable funds to develop artistic strengths, encourage the development of New Zealand culture, employ appropriately trained people in key areas and foster their professional development, develop planning expertise, strengthen management structures and establish a secure financial position.

Other schemes managed by the Arts Development Unit include publications schemes, the Waewae Tapu (Distinguished Visitors) Programme, a block grant scheme for publishers, the New Zealand Book Awards, and the Authors’ Fund which recompenses writers for library borrowing.

Dancer, Mary-Jane O'Reilly.

Maori arts and Pacific Island arts projects are administered by Te Waka Toi, the Council for Maori and South Pacific Arts. Under the umbrella of Te Waka Toi, a Maori Art Committee and South Pacific Art Committee administer activity in each of their fields, with a high degree of autonomy.

Both the Maori Art Committee and the South Pacific Art Committee administer a range of programmes which support initiatives such as wanaaga, festivals, performances, marae art, seminars, workshops, hui, recording projects, tours, waka projects, publications, research, arts in education, international activity and cultural exchange. These apply to a wide range of traditional and contemporary art forms. The Te Waka Toi Award is given annually to a recipient who has made an outstanding contribution to Maori arts.

Projects with a community or regional focus are administered by the Northern, Central and Southern Regional Arts Councils and the volunteer community arts councils. The regional arts councils aim to increase access to, and participation in, the arts, especially through the provision of resources which lead to the growth of community-based arts activity. They operate in four main ways, as:

  • Investors in arts and cultural programmes, either in partnership or alone.

  • Service organisations providing information, advisory, management and other services to the arts and cultural sector.

  • Change agents assuming a leadership role in promoting events or programmes which result in productive change which benefits the arts.

  • Advocacy units providing a regional voice on arts and cultural issues.

Support is given to such activities as regional touring programmes, the employment of community arts workers and short-term project workers and the activities of over 100 community arts councils, which are voluntary and autonomous. Grants to arts groups are made with community interests as the main priority. An important priority of the regional arts councils is local authority liaison, particularly with the aim of encouraging local authorities to adopt arts and cultural policies to guide their considerable investment and involvement in arts and arts-related activity.

Advocacy, research, recreational arts, arts in education and information programmes are administered by the Research and Information Unit of the Queen Elizabeth II Arts Council. The Information Centre services the information needs of groups involved in arts advocacy, including the council itself and community arts councils. Arts in education activities include advocacy work with the education sector, an Artists in Education Touring scheme, residencies and joint school-community initiatives. Arts Access activities include advocacy work with the health and justice sectors and support is given to recreational arts organisations previously under the wing of the Hillary Commission.

New Zealand Symphony Orchestra

The New Zealand Symphony Orchestra is widely known for the artistic excellence of its public concerts, its programmes on radio and television, and its performances for major national opera and ballet productions. Distinguished international guest conductors and celebrity artists, along with resident soloists and New Zealand choirs, appear regularly with the orchestra.

Young Designer Award's winning entry (right) and designers, Benson and Hedges Fashion Awards.

The only fulltime professional orchestra in the country, its playing strength of approximately 90 enables it to undertake the complete symphonic repertoire. It makes a major contribution to the New Zealand International Festival of the Arts and its travel programme is one of the most extensive in the world, involving some 40 000 kilometres of internal travel annually. As well as presenting concerts nationwide, the orchestra has toured overseas, the most recent visit being to the 1992 Seville Expo for performances with Dame Kiri Te Kanawa as part of the New Zealand Day celebrations.

The New Zealand Symphony Orchestra has made many commercial recordings, some of which have charted in the United States, and one which was nominated for international awards. The orchestra also commissions and performs works by New Zealand composers. As the national orchestra, it receives funding support from the Ministry of Cultural Affairs.

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 more than 50 features and more than 100 shorts have been made with commission funding.

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.

A wall mural sets the scene for The Beach, an urban park on Lambton Quay, Wellington.

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 1989; 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”. In 1992 the Chief Censor refused to classify the film “Henry: Portrait of a Serial Killer” for public exhibition—the first refusal for a decade.

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 was introduced into the House in 1992 which combines the Film Censor's Office, the Video Recordings Authority and the Indecent Publications Tribunal into a single classification office. New classifications and new criteria are also likely.

During the 1991–92 financial year, the Video Recordings Authority made a written submission to the Department of Justice on the proposed new censorship bill, now likely to be introduced to Parliament in 1993. A steady output of explicit sexual material (pornography) is noted as having been classified by the authority over the past year. The authority has been active in its public relations programme—speaking to a wide range of groups around the country on video censorship. 1992 saw the first of a series of court submissions involving ‘underground’ material, and which was seen to be of an extreme nature, e.g., bestiality, sexual torture, child pornography, etc.

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 rated and classified by separate organisations.)

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 (usu ally 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, through the Secretary of Internal Affairs.

The Office of the Film Censor and the Video Recordings Authority are 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 to 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.

A sitting of the Indecent Publications Tribunal, Wellington.

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 1991 the Indecent Publications Tribunal had 1176 publications placed before it for review.

10.2 The national collection

Art galleries and museums

There are more than 229 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.

Over 60 percent of 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 Museum Association of Aotearoa New Zealand which promotes the development of the country's collections and its professional staff.

Inside Wellington's newest science resource for children, the $12 million Capital Discovery Place.

Museum of New Zealand Te Papa Tongarewa. Founded in 1992, it is a museum of art, history, Maori culture and the natural environment. Its focus is on Aotearoa New Zealand and its place in the world.

The museum houses a large collection of Maori taonga including, Te Hau Ki Turanga, which is the oldest, extant Maori building in New Zealand. There is a collection of Polynesian, Micronesian and Melanesian art and culture and an extensive natural environment collection.

The Museum of New Zealand Te Papa Tongarewa holds a collection of paintings, drawings, graphic art, photography, and sculpture by New Zealand artists as well as Australian, British and foreign works. There are important collections of works by Natalia Gontcharova, Frances Hodgkins, Raymond McIntyre and Colin McCahon.

The Hector Library is New Zealand's most comprehensive resource for students of systematic biology, ethnology and early European exploration of the region. The Art Research Library houses art publications, archives, manuscripts, papers of artists, critics, dealers, slides and ephemera. The photographic collection includes artworks, 19th century historical images, natural history images and taonga.

Conservation of cultural property. The Cultural Conservation Advisory Council advises the Minister of Internal Affairs 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.

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:

New Zealand's most internationally celebrated artist, Frances Hodgkins was born in Dunedin in 1869. Her early works were impressionistic water-colour portraits, figures and landscapes. In 1901 she visited Europe for the first time spending two years painting and touring. She returned to Europe in 1906, teaching in Paris for six years. She left New Zealand for the last time in 1913. During the years of World War I Hodgkins began using oils and experimenting in different styles, often influenced by the modern European styles of the era. From the mid-1950s she began working in gouache, a medium which incorporates the qualities of both water-colours and oils. Her mature works gained Hodgkins an international reputation. In 1946 a retrospective exhibition was displayed in London; she died just six months later in 1947.

  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 artefacts in New Zealand. Artefacts found after 1976 are deemed to be Crown property. There are export controls on a range of items of historical significance: Maori artefacts; chattels relating to the European discovery, settlement or development of New Zealand; written and printed matter, works of art, reproductions, prints, films and sound recordings; specimens of animals, plants and minerals; meteorites; remains of extinct fauna; and items of shipwreck.

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 1991–92 the trust processed and approved applications for nine 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.

Writer, Katherine Mansfield.

National Archives

National Archives, Te Whare Tohu Tuhituhinga o Aotearoa, selects, preserves and makes available records of permanent value drawn from the various areas of central government. These include Parliament, Ministers of the Crown, all government departments, the armed forces, the courts and commissions of enquiry. Archives are preserved as the memory of government, as evidence of its functions, policies, transactions and decisions. The Chief Archivist has the staturory control over the destruction and disposal of all inactive government records. National Archives holds about 50 000 linear metres of documents, plus 500 000 maps and plans, and large collections of films, photographs, microfilms and posters.

Archives contain information on episodes, great and small, that have influenced the development of New Zealand as a nation; they are the raw material for the history of New Zealand. National Archives has the country's largest collections of unpublished information concerning social, political, scientific, economic, 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 operational and policy records of departments of state. Papers of several Prime Ministers are also held, as well as those of former Cabinet Ministers.

All the signed sheets of the original Treaty of Waitangi and other important founding documents (such as the Declaration of Independence of the Northern chiefs (1835); the Letter Patent constituting New Zealand as a colony (1840); and the proclamation of the Constitution Act (1853)) are on permanent public display. The National Collection of War Art is also kept in National Archives headquarters in Wellington. It comprises watercolours, oils and sketches by New Zealand's official war artists of both world wars. During 1993 the women's suffrage petitions of 1892 and 1893 will be the focus of a special exhibition in Wellington that opens in July.

As well as the Wellington headquarters, National Archives has offices and holds archives in Auckland and Christchurch. All documents held at National Archives are available for public inspection, without charge, unless a department has directed that access is to be restricted.

National Archives advises and assists local authorities in preserving their archives. The Chief Archivist has the statutory power to protect specified classes of local archives. National Archives also provides records centres and a records management consultancy service on a cost recovery basis.

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, the Ministry of Arts and Culture, and 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 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 costumes. Research and viewing facilities are available at central Wellington offices. Appointments are necessary.

The New Zealand Film Archive has embarked on a nationwide “Last Film Search” for 35mm nitrate film. Two regional searches will be conducted annually until the year 2000. The 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.

Mobile library, Dunedin.

Book publishing

The New Zealand book market comprises New Zealand published books and overseas published books distributed by New Zealand agents, or distributed by New Zealand publishers representatives (sales agents), or ordered direct from overseas by the end user. Most of the book publishing industries are made up of companies who import as well as publish, though some are involved exclusively in one or other activity.

Industry sources estimate that the total number of books sold in New Zealand is around 400 million. This figures includes books sold through the book trade, books imported directly by institutions (libraries, etc.) and private imports. It is estimated that books published in New Zealand comprise approximately 35 percent of the total.

The number of publishers or producers of New Zealand books is around 300 though only 100 of these are specialist book publishers or importers of books. This specialist group is responsible for the production and distribution for over three quarters of all new titles available in New Zealand and accounts for over 90 percent of the sales. The other 200 publishers comprise mainly government departments, local bodies, historic societies, business organisations, special interest groups and individuals.

The number of New Zealand titles produced by commercial publishers has increased by 150 percent since 1980. The largest growth has been in educational publishing where healthy export markets have been developed. Educational publishing accounts for approximately 20 percent of all sales by value. However, economic pressure on the industry has led to titles being kept in print for a shorter period. Titles with low sales tend to be sold off cheaply and are not reprinted.

In recent years the majority of New Zealand published books have tended to be printed overseas where printing prices are lower. This trend may now be reversing as New Zealand printers become more competitive in price and quality. Generally the number of copies printed (or imported) of new New Zealand books has been declining. The average print run in 1986 was around 5000 copies. The figure may now be around 3000 copies.

The majority of major book publishers are located on Auckland's North Shore. Wellington has a smaller number of general book publishers but is a centre for legal and government 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 the development of book exporting.

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 1992 was 246.

In the year ended 30 June 1992, 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 six million volumes in 1992. 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 an important part of the documentary heritage of New Zealand. It makes available an authoritative record of New Zealand publishing. It co-ordinates the availability of national information resources, and delivers information through the New Zealand Library system 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 service include approximately 700 000 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 10 000 compact discs; over 110 000 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.

Writer, Barbara Anderson.

Alexander Turnbull Library—this ‘library within a library’ is a national research collection specialising in documentary materials relating to New Zealand and the Pacific, John Milton and his times, English literature, early printed books, voyages of discovery and exploration, and the arts and crafts of the book. It is based on the collections of Alexander Horsburgh Turnbull, a wealthy Wellington merchant who died in 1918 and bequeathed to the nation some 55 000 volumes as well as manuscripts, paintings and sketches, which he had collected during his lifetime. Turnbull's original collections continue to guide the library's collecting policy; the Archive of New Zealand Music and the New Zealand Cartoon Archive are examples of collections that are developing out of the 19th century minor interests to reflect 20th century New Zealand society and culture.

Reference and research services based on these collections are available to those whose needs cannot be met by other libraries. The collections are not generally available for lending.

At June 1992, the collection included approximately 234 700 books; 16 000 rare books; 46 300 maps; 603 000 photographic prints, negatives and albums; 47 300 paintings, drawings and prints; 9600 discs, tapes and cassettes; 690 bays of newspapers; 5790 shelf metres of manuscripts; 3020 metres of serials; and 41 000 microfilms.

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.

Services to schools—the National Library provides support services to New Zealand schools through the School Library Service which incorporates the National Film Library.

A reference and information service, supporting teaching and learning programmes in schools, provides access to information and resources in the National Library's lending collections. The resources provided by this service complement those provided by the school library.

An advisory service which includes training, is available from 14 National Library centres, to support school library development and management.

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, such as bibliographies and training guides; and training workshops.

Services to local authorities—the National Library's support to local authorities is being refocused, following important new policy initiatives. 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; training; and access to online databases.

Infoserve—this is the National Library's one stop information service. Established to meet the information needs of the business community, Infoserve has offices staffed by information consultants in Auckland, Wellington and Christchurch.

Artist Rita Angus was a pioneer of modern New Zealand art in the 1930s and ’40s. Her paintings capture New Zealand's bright and distinctive colours, and are strongly influenced by Maori and Pacific vitality. She produced a large number of works, a variety of landscapes, still lifes, portraits and self-portraits. In the self-portraits, Angus often depicts herself as an icon or an ideal, incorporating symbols of her pacifist and religious beliefs. Although Angus began exhibiting her work in the early 1930s, she received little acknowledgment or assistance for 30 years. In the mid to late ’60s she was included in major overseas exhibitions of contemporary New Zealand art. Angus died in 1970 at the age of 62.

Infoserve has access to 5000 online national and international databases, and published information from many books, conference papers and journals.

Client services include information searches on technical research, company, market or industry profiles, competitors or contacts. These can be expanded to monitor market trends, industry groups, competitors and the economy.

Infoserve can rapidly supply copies of articles from reports and books, and extracts from journals. It also operates an information consultancy referral service.

Kiwinet is the National Library's online information network. It hosts 20 databases which provide information on all aspects of New Zealand, including business, the social sciences, arts, commerce, the humanities and law. Over 600 clients access the service, often on a daily basis, nationwide and internationally.

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 6 million bibliographic records, and includes information on over 4.5 million books, periodicals and audio-visual programmes held in New Zealand libraries.

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 (165 000), newspapers and periodicals; sound recordings (9000); microfilms (5000); maps (12 000); photographs (103 000); posters (13 000); 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 1991 the library attracted 9917 readers and 858 written enquiries were answered.

10.4 Mass media

Broadcasting policy

On 1 July 1989 the Broadcasting Act 1989 came into force. The central objectives of the Act are the:

  • Increase of economic efficiency and consumer choice by permitting more competition and flexibility in the broadcasting industry.

  • Promotion of New Zealand identity and culture.

  • Provision of broadcasting services for varied interests in the community.

  • Maintenance of broadcasting standards.

  • Separation of social, policy advice and regulatory functions from commercial activities.

Special restrictions no longer 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 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 and the New Zealand Listener have both become separate companies. 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 is also responsible for radio-frequency management.

Radio personality, Aunt Daisy (Maud Basham).

Broadcasting Commission (NZ On Air). The commission'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 per 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.

  • 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. Funding is also available for New Zealand music videos.

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.

In 1991–92 NZ On Air's income from the broadcasting fee (after collection costs) was allocated as follows: television programmes (including Maori programmes and New Zealand music videos) $34.2 million; radio (National Radio and Concert FM, Access radio and New Zealand music programmes on radio) $25.3 million; Maori radio $7.3 million; non-commercial radio and television transmission $5.1 million; archiving $1 million.

Workers at the Dunedin-based animation research unit displaying the “real-time” animation program used by Television New Zealand during the America's Cup.

The six members of NZ On Air are appointed by the Governor-General on the recommendation of the Minister of Broadcasting.

Broadcasting standards. The Broadcasting Standards Authority is an independent body established to enforce and oversee the standards and objectives laid down in the Broadcasting Act 1989. The four members of the authority are appointed by the Minister of Broadcasting. 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.

  • Develop and issue codes itself, if codes developed by the industry are seen as inadequate.

  • Commission research and publish findings.

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.

  • Publishes its findings.

  • 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.

Between June 1991 and June 1992 the authority issued 76 decisions on formal complaints. Over one third of the complaints 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. Of the 76 decisions issued, 61 related to television and 15 to radio. Twenty of the complaints involved advertising, 75 percent about liquor advertising.

Since 1 February 1992 the broadcast rules on liquor advertising have allowed brand advertising on radio and television. The advertising is subject to strict programme and advertising controls and will be reviewed by the authority after a two-year period.

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.

In 1992 the Broadcasting Standards Authority reviewed the codes on the portrayal of violence. A working paper outlining its concerns was issued to broadcasters and the authority is expecting broadcasters to issue a new code shortly.

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, the Bay of Plenty, Wellington and Christchurch. A regional UHF service is broadcasting in Christchurch, and UHF television services providing information for tourists have been established in Rotorua and Queenstown. A free-to-air racing channel began in November.

The hours of local content on television have more than doubled since deregulation of the broadcasting industry in 1988. In 1991, 4039 hours of local content were screened compared with 4249 in 1990 and 2804 in 1989.

Comedian, Ginette McDonald.

The number of radio stations has also increased. In 1992 there were 61 AM and 82 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 with one in 1989.

Private radio broadcasting. The Independent Broadcasting Association, based in Auckland, represents the private companies which operate independent radio stations. There are 35 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 (TRN), based in Wellington.

Television

Television New Zealand. Television New Zealand operates two channels, Television ONE and Channel 2, and has a number of subsidiaries and other broadcasting interests.

TVNZ aims to provide New Zealanders with quality communications products and services. It also endeavours to present programmes which reflect and foster New Zealand's identity and culture. A state-owned enterprise, it is charged with being a commercially successful electronic telecommunications business. It is headed by a group chief executive reporting to a board of directors appointed by government.

TVNZ broadcasts its services to approximately 1 126 000 households, and has almost 100 percent coverage of the New Zealand population. Both Television ONE and Channel 2 broadcast seven days a week, morning, afternoon and evening.

Television ONE aims to provide quality New Zealand and British drama, news, sport and information. It presents many of New Zealand's highest rating local programmes, including Crimewatch and Country Calendar.

Channel 2 features comedy, drama, family entertainment, children's programmes and the latest music specials.

Over 12 000 hours of television are broadcast each year on the two channels. Imported programming is mainly sourced from the United Kingdom, America and Australia. TVNZ accesses satellite-delivered programming from the BBC, ITV, CBS, ABC (US), ABC (Aust.), Channel 9 and other Australian networks. Near 30 percent of programmes are locally produced.

TVNZ comprises many divisions, including programming, international sales, telecommunications and Teletext.

TV3 Network Limited. New Zealand's private national television network was launched on 25 November 1989. It currently reaches around 93 percent of the population. 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 Television. 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 65 000 subscribers and expects to have over 90 000 by March 1993.

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

Radio New Zealand Limited (RNZ Ltd) was constituted as a separate state-owned enterprise at the end of 1988 when the Broadcasting Corporation of New Zealand, of which Radio New Zealand had been a service, was dissolved. The BCNZ's radio assets were to pass through the Crown straight to the new SOE, but Maori interests claimed that the new SOE structure was inadequate to carry out Treaty of Waitangi language and culture obligations.

While the issue was argued in the courts, the assets were legally frozen in Crown ownership and RNZ Ltd made use of them under licence. The company was therefore not the legal owner, and because of that and of Maori sensitivities relating to the situation, it could not manipulate major assets in a normal business manner to meet its plans and needs until early August of 1992, when the way was finally cleared for the assets to be vested in the Radio New Zealand SOE.

In addition to the performance required from all SOEs, RNZ Ltd must provide a range of programmes consistent with government social and cultural broadcasting objectives. The company's programme standards and complaint procedures are as set for all broadcasters by the Broadcasting Act 1989.

In addition to actual broadcasting, the company's activities include engineering, sales, and local and national news services. Its broadcasting falls into two main categories, Commercial or Community Radio and New Zealand Public Radio (non-commercial).

Commercial. Thirty-three commercial or community stations, each with a local management grouped under several regional management structures, and ultimately responsible to either a central metropolitan or provincial management, broadcast on a largely local basis. There is, however, a commercial network linking most of the stations for national and international news and some New Zealand-wide programmes (e.g., national talkback or all-night programmes). Some stations aim more at young adult/contemporary music audiences; others are more oriented towards general family listening. Many services have been either converted to FM or broadcast on both FM and AM (the latter may serve different audiences at some time of day). The total of 33 does not include regional ‘repeaters’ of main stations or take account of more than the ‘parent’ when both AM and FM transmissions are provided simultaneously. The powerful AM transmitters formerly used for Concert Programme transmission have been grouped to form the AM Network, broadcasting the proceedings of Parliament and extended sports coverage. The commercial services are funded entirely by advertising revenue, by sponsorship, or by contract.

New Zealand Public Radio. The non-commercial services are funded by a share of the Public Broadcasting Fee collected and allocated by the Broadcasting Commission, New Zealand on Air. The networked National Radio and Concert FM services are the principle ones. Public Radio also covers Access Radio broadcasting and the Sound Archive in Christchurch where many thousands of historical tapes, discs and commercial gramophone records are preserved. Te Reo O Aotearoa, the RNZ Maori and Pacific Island language unit, produces a wide range of Maori, Pacific Island and English programmes broadcast through National Radio. The RNZ International shortwave service is managed by Public Radio, but funded by the Ministry of External Relations and Trade.

Opera singer Dame Malvina Major and family, Government House.

New Zealand Radio Sales. With offices in the three main cities, NZ Radio Sales is concerned with the selling and placement of commercial station advertising on a New Zealand-wide basis for both RNZ Ltd and also other radio broadcasters. Stations look after their own area advertising on a local basis.

Engineering and Operations. Primarily concerned with RNZ's technical and property requirements, maintenance, and development and construction, Engineering and Operations also provide specialised, external consultancy and contract services to the industry.

RNZ News. A central operation which gathers national news (with specialist and general reporters attached to every RNZ station, central office and Parliament), and international news from correspondents, and three international 24-hour wire services. RNZ News prepares and produces news bulletins and programmes for all RNZ services, and also provides news and information services under contract to a number of external clients.

Members of Ruru (night owls) perform while gathering round their Papa Ruru, Radio Aoteroa's talkback host, Hori Bennett.

For the year ended 30 June 1991, a total consolidated income of $106,062,000 was made up of sales (net) $71,253,000; Public Broadcasting Fee $27,525,000; and other various income $7,284,000. Total consolidated expenditure was $110,737,000 and taxation was $844,000, with extraordinary items totalling a further $8,275,000, leaving a net loss of $13,794,000. Total assets amounted to $61,376,000.

Newspapers and magazines

Taking into account the size of its population, New Zealand has a high number of daily newspapers. There are 28 daily newspapers published in New Zealand, of these eight are morning newspapers and 20 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.

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 250 814 copies daily. The other dailies have circulations ranging from 3000 to about 105 000.

Country and western singer Pasty Riggir entertaining at the Mo-Ham-Her Jamboree, Hampden.

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 eight dailies, and Wilson and Horton Limited, which also 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 about 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 105 members which between them publish over 1.8 million copies per issue. The great majority are tabloid, but four are broadsheet. Most are weekly, but about 20 are bi-weekly or tri-weekly. Seven 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.

Table 10.3. MAGAZINE CIRCULATION, CONSUMER TITLES

PublicationCirculation*Published

* These figures cover January–June 1992.

Source: Audit Bureau of Circulations.

Direction520 234Bi-monthly
TV Guide266 289Weekly
Woman's Day NZ180 288Weekly
Readers Digest (NZ Edition)167 432Monthly
NZ Woman's Weekly160 366Weekly
Grapevine142 039Monthly
Listener, TV & Radio Times138 207Weekly
Australian Woman's Weekly126 012Monthly
New Idea NZ86 565Weekly
Pacific Way70 000Monthly
Little Treasures63 802Bi-monthly
Time New Zealand Edition43 000Weekly
More37 525Monthly
North & South36 989Monthly
Superannuitants' Lifestyle Quarterly34 241Quarterly
Next32 991Monthly
Metro29 302Monthly
Fashion Quarterly26 711Quarterly
NZ Home & Building23 537Bi-monthly
Your Home18 817Quarterly
RTR Countdown18 078Monthly
Leisure Times12 700Bi-monthly

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.

Songwriter, Shona Laing.

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 1992 there were approximately 85 agencies, most of which (57) were New Zealand-owned and the remainder (28) 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 1992.

Total advertising expenditure (media and non-media) in New Zealand for the year ended March 1992 was $1,670 million. Of this, $1,169 million was spent on media advertising—television, radio, newspapers, magazines, direct mail, cinema and outdoor. The remaining $501 million came from production and non-media advertising, such as promotions, and expenditure on advertising production. Fifty-two percent of expenditure on media advertising ($617 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.

Table 10.4. MEDIA ADVERTISING, 1991*

MediaExpenditureShare

* Year ended March.

Source: Advertising Agencies Association.

 $(million)percentage
Newspapers35530.4
Television39533.8
Radio14212.1
Magazines827.0
Direct mail, outdoor, cinema857.3
Community Newspapers1109.4
      All media advertising1,169100.0

Table 10.5. ADVERTISING EXPENDITURE BY SELECTED INDUSTRIES; 1991*

Industry groupExpenditure

* Year ended March.

Source Advertising Agencies Association.

 $(million)
1. Retail257
2. Foodstuffs131
3. Leisure/travel/entertainment109
4. Household88
5. Miscellaneous57
6. Automotive57
7. Agricultural/industrial/office69
8. Investment/finance/banking70
9. Toiletries/cosmetics40
10. Beverages47

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 43 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.

  • 10.3 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 Television; Radio New Zealand Limited; New Zealand Press Council; New Zealand Audit Bureau of Circulations; Advertising Agencies Association.

Special articles

Listener Women's Book Festival; Video Recordings Authority; Mediawomen; Barbara Basham (Maud Basham), Joan McCracken (Thelma Kent), The Book of New Zealand Women, eds Macdonald, Penfold and Williams, Bridget Williams Books Limited, 1991.

Further information

Fostering the arts

Report of Ministry of Cultural Affairs (Parl. paper G. 10).

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

Report of the New Zealand Film Commission (Parl. paper G. 19).

Report of the New Zealand Lottery Grants Board (Parl. paper G. 7B).

Report of the Queen Elizabeth II Arts Council of New Zealand (Parl. paper G. 11).

Report of the New Zealand Historic Places Trust (Parl. paper G. 10).

The national collection

Report of the Board of Trustees, National Art Gallery, National Museum, and National War Memorial (Parl. paper G. 12).

Books and libraries

Report of the Trustees of the National Library of New Zealand (Parl. paper G. 13).

Mass media

Report of the Ministry of Commerce (Parl. paper G. 46).

Eight contemporary women artists

Luise Fong • Megan Jenkinson • Lucy Macdonald • Anne Noble • Kim Pieters • Diane Prince • Carole Shepheard • Ruth Watson

All the images in this section of the 1993 Yearbook have been specially commissioned. Like all ‘page works’, they are not reproductions or illustrations of existing art works but works in their own right, specifically designed for this publication.

The eight artists selected work across a broad spectrum of artistic practice: painting, documentary photography, manipulated photography, text works, assemblage, sculpture, fibre work, video. Obviously, some of these media translate more readily to publication format than do others. Hence, Lucy Macdonald who works most frequently in video and three-dimensional constructions has created a photographic image; so too has Luise Fong who more commonly works with painting and assemblage; while Diane Prince, who combines both two and three dimensional elements in much of her work, has chosen to produce a painting and text page.

A number of these artists work from a clearly stated feminist position; some explore recent theoretical writing on what constitutes femininity and femaleness; others, though disliking the feminist label, consciously view the world from a woman's perspective. Some, like Diane Prince and Carole Shepheard, have elected to combine historically-validated ‘fine art’ media and techniques with what, in their respective cultures, are traditionally considered women's craft practices (weaving, binding, stitching, etc.).

In New Zealand, in the 1990s, women visual artists operate across the full range of contemporary practice. From bronze casting and sheet metal sculpture to fibre and fabric art; from filmmaking and video art to the entire spectrum of printmaking; from land art to painting; from artists’ books to large scale installation works which may transform an entire space; there are now no possibilities which are not available to, and fully exploited by, women artists. Women are now at the very forefront of the visual arts in this country; those whose work is presented here are only a tiny fraction of the number of very fine and often highly successful women artists working today.

1 Ruth Watson Signed, sealed and delivered

Ruth Watson was born in 1962 in West Melton, Canterbury and graduated from Ilam School of Fine Arts in 1984. She states that her “farming background prevented me from sympathising with romantic investment in the landscape, freeing me from much of the artistic heritage of a New Zealand artist… In my work I wish to reveal some of the ways in which concepts precious to us—memory, sexuality, even the land, etc.—are constructed, while at the same time recognising the investments made in them.” Ruth Watson works in a variety of media; the use of text is central to much of her work.

2 Luise Fong Over one hundred string quartets

Luise Fong was born in Sandakan, Malaysia in 1964; her family came to New Zealand shortly after. She studied textile design at Wellington Polytechnic and graduated BFA from Elam School of Fine Arts in 1989. She currently lectures part time at Elam in painting. She works principally as a painter in a variety of media; in her work, however, painting is often extended into installation by the use of fabrics, easels, ‘rosaries’ of black painted eggs, and other objects.

3 Carole Shepheard The forgiving heart

Carole Shepheard was born in 1945 and graduated Dip FA (Hons) from Elam School of Fine Arts. Among her many activities in the arts arena she has taught, curated exhibitions, and exhibited widely in both fine art and craft contexts. She is now a senior lecturer at Elam. Shepheard was a central figure in the early women's art movement in New Zealand. A multi-media artist, she works with techniques and imagery that seek to reinforce and validate women's position within her culture. Her work includes printmaking, painting, installation, assemblage, a range of fibre work and book works.

4 Diane Prince It's a dialectical dilemma and historical fabrication
that multiculturalism works for the Tangata Whenua

Diane Prince was born in 1952. Her tribal affiliations are Ngati Whatua and Nga Puhi. She is a self-taught artist and studied art history at Auckland University. She began exhibiting in 1986 and has since shown in a number of group and solo exhibitions. She works mainly in cut and assembled aluminium and with traditional indigenous materials such as korari, harakeke and kiekie, frequently combining two and three dimensional elements. “All my work reflects and comments on [the] status of Maori as Tangata Whenua and [our] plight in Aotearoa.” Diane Prince currently teaches Maori weaving on a TOPS scheme in Wellington.

5 Kim Pieters She speaks

Kim Pieters was born in Rotorua in 1959. She has been painting for 13 years and exhibiting since 1989; she describes herself as a self-taught informal abstractionist. “One of my main concerns is an open structure allowing multiple interpretations and thus a continuing dialogue with the viewer. The markings themselves are informed by an exploration of psychology, literature, history and response to the land.”

6 Lucy Macdonald Untitled

Lucy Macdonald was born in Hampshire, England in 1963 and emigrated to New Zealand with her family in 1976. She studied printmaking in London and later gained an MFA from Elam School of Fine Arts in 1988. She works in printmaking, video, sculpture and installation, frequently combining some or all of these as elements in a single installation. Her works incorporate a wide variety of processes and materials and often include found objects and architectural elements.

7 Anne Noble Audrey Thetford and her mother, Mrs Gladys Thetford

Anne Noble was born in Wanganui in 1954 and graduated MFA from Elam School of Fine Arts in 1982. Her black and white photographic series include Whanganui River (exhibited 1982–3) and In the Presence of Angels—photographs of the contemplative life (exhibited 1991–2). Anne Noble continues to photograph the Whanganui River landscape and environs; and recently exhibited a series of photographs of New Zealand native plants and flowers. She is currently working on a photographic book about the lives of elderly intellectually handicapped people and those who care for them.

8 Megan Jenkinson Pro Aris et Focis: for Hearth and Home (Cicero)

Megan Jenkinson was born in Hamilton in 1958 and graduated BFA from Elam School of Fine Arts, where she now lectures in photography. She works principally with photographic collages, frequently using images of herself or her own hands and combining classical allusions with references to the local urban and natural environment. Many of her works place different ‘characters’ in conflict with outside forces, either moral or social; others explore the often complex relationships between nature and culture.

Audrey Thetford and her mother, Mrs Gladys Thetford. form the Suffrage Centennial book project, Hidden Lives. The Work of Care, about the lives of elderly intellectually disabled people and the family members who care for them.

Craft by New Zealand women

Valeska Campion

Excited by the unfolding nature of the creative process, Valeska Campion is today concentrating on building large mosaic sculptures which incorporate visual puns, a playful approach to form and gutsy colour.

For 15 years Campion produced distinctive domestic earthenware but now works in large sculptures. Returning to New Zealand in 1987 after travelling overseas, Campion immersed her-self in a major community project, the Community Residency Sculpture (see illustration) on Waiheke Island. With assistance from the Northern Regional Arts Council, the project gave Campion the opportunity to use her abilities to organise and motivate. “I had been inspired by European mosaics and was ready for a more expansive medium (ferro-cement) which still retained the brilliance of ceramics. Most of my pieces are personal landmarks…”.

Community residency sculpture, Waiheke Island, 1991.

Korowai Muka: pheasant feathers, (Whakakoki pattern).

Diggeress Te Kanawa

Encouraged by her father Tuheka Taonui Hetet and watched by her mother Rangimarie Hetet, at 11 years of age Diggeress Te Kanawa completed her first piece of taniko. The taniko was given to a family elder, in a gesture to encourage Te Kanawa to create bigger and better things.

An expert in traditional Maori weaving, Te Kanawa, who learnt the craft of weaving from her mother, has always been fascinated by the preparation and dying of muka (fibre) and the different textures able to be obtained from different varieties of harakeke.

Te Kanawa taught her local Maori Women's Welfare League members the art of flax weaving during the 1950s. In 1983 she joined Aotearoa Moananui a Kiwa Weavers and three years later went to England with Aromea Tahiwi to launch the Te Amokura Exhibition and demonstrate the art of flax weaving. Aided by an Air New Zealand Travel Award in 1986, Te Kanawa returned to England and visited America to document the weaving techniques of cloaks and other museum pieces. In 1992 she demonstrated flax weaving techniques in San Diego with the Te Waka Toi Contemporary Maori Art Exhibition.

To Te Kanawa the craft of weaving has a deep spiritual value and it is an inheritance (a taonga tuku iho) unique to Aotearoa, of which she is extremely proud. Te Kanawa has written a step-by-step instruction book on flax weaving, Weaving a Kakahu.

Maureen Lander

Artist Maureen Lander was born at Rawene, Hokianga, more than 50 years ago. Hokianga is the base for Lander's Maori and Pakeha ancestry, ancestry which has given her a strong foundation and direction in her search for identity both as an artist and individual.

Over recent years harakeke or New Zealand flax has been the source and resource of much of Lander's art and research. In Maori mythology harakeke came about because of the union between Tane and Huna (keeper of the flax). Lander's knowledge, inspiration and enlightenment comes from the harakeke, from the tuition of skilled flax weavers and from studying cloaks and other flax items in museums and archaeolgical excavations. “The hidden language of the harakeke continues to lead me deeper into an understanding of the esoteric knowledge of which Huna (keeper of the flax) is the guardian. It is from the harakeke that I have been able to evolve a symbolic language in my art process. This language links to the past through the tuition of traditional weavers and into an unknown future through my own exploration of my bicultural heritage.”

From the exhibition Homage to Huna, Detail: “Pushing up the sky” and “Kura-Huna”, Artspace, Auckland, 1991, (elevated flax stalks, flax leaf and fibre, nylon line, gallery posts).

Kate Wells

Freelance artist and tapestry designer Kate Wells has exhibited in New Zealand and internationally since 1982. Wells sees her chosen medium of woven tapestry as a vessel for the expression of ideas, colours and shapes. “Tapestry combines both spontaneity in design and precision in execution in a way that will forever challenge and inspire.”

Using graphic imagery Wells explores themes concerning the relationships between humans and their social and physical environment. Combining symbols and images of maps, figures, hieroglyphics, patterns, myths and everyday objects, Wells constructs a visual narrative.

In today's times of the instant image, Wells believes that the story-telling mural and its contemplative qualities of the ancient art of tapestry, still have a vital place in our society.

Antarctica free-for-all, (woven tapestry).

Christine Boswijk

“I have chosen clay because it is the material through which I can best speak; through which I can best explore the philosophical concerns of life—the fragility of the human condition, the ambiguity and dichotomy of life, the juxtaposition of the life/death process—the question of our own mortality/immortality.”

Potter Christine Boswijk was born in Christchurch in 1939 and trained at the Otago Polytechnic's School of Art and East Sydney Technical College's National Art School. Her work has been exhibited and held in collections in New Zealand and Australia. In 1991, Boswijk was commissioned to produce a work for the ceramics exhibition at New Zealand's Expo ‘92 Pavilion, Seville.

Boswijk sees her work as experimental, yet also focusing on her objective of regarding the potential of materials as a medium for expression, in preference to the pursuit of technique. Her aim is that each piece triggers memories and ideas, in an emotional response. “The world is cluttered with things which eliminate the magic and poignancy in human life. Magic and poignancy are necessary to keep human beings alive. Art can sometimes restore these.

Forest of Signals, (white clay, no glaze, 30 pieces mounted on marble).

Elena Gee

Over the years jewellery maker Elena Gee has worked with many materials and techniques, gradually moving from complex to simple ideas, and from time consuming techniques to those which save labour. Gee is more inclined to highlight the natural qualities of her work, and since 1987 has worked mostly with materials such as stones and shells, altering them to make jewellery.

Gee began teaching herself to make jewellery in 1967 and after gaining a year's technical experience working for a manufacturing jeweller, she moved to Sydney and started work as a full time jeweller in 1972. From 1986 to 1990 she was a member of the Fingers jewellery gallery co-operative in Auckland. Gee has been a part time teacher of various polytechnic craft design courses and in 1989 was Nelson Polytechnic's craft-artist in residence.

Her work is held in public collections in both Australia and New Zealand.

Brooch and earring set, (beach pebbles, titanium, silver, driftwood, paint).

Aromea Tahiwi

Born and educated in Wellington, weaver Aromea Tahiwi became deeply involved in Maori arts and crafts in the late 1960s. Tahiwi tutored at the New Zealand Arts and Crafts Institute in Rotorua, before teaching at community colleges. In 1986, in association with the Amokura O Te Maori exhibition, she travelled to London to promote traditional Maori weaving. Tahiwi's work has been exhibited widely in New Zealand and is held in public and private collections in New Zealand and in England, Austria, West Germany, China and Japan.

Nga Hekenga, (flax fibre weaving).

Ann Robinson

Ann Robinson lives and works at Karekare, on Auckland's west coast. Although she has worked in both glass-blowing and casting, over the past four years Robinson has preferred casting for the time for contemplation and introversion that it provides. Having modified ‘cost-wax’ casting to the special dictates of glass, Robinson casts large pieces—up to 45 kilos in weight—using a locally made crystal and imbues her work with personal warmth through hand finishing.

Concerned with the timelessness of beauty, Robinson favours the vessel form, mainly bowls, a form which for her is an important metaphor with multiple levels of meaning. “For me the bowl evokes historical and emotional associations, from earliest mortar, through ritual and religion, to the bowls that talk to satellites: holder, receiver, protector, offerer and transmitter.”

Robinson teaches, exhibits and markets her work in New Zealand, Australia, Japan and the United States.

Shrine bowl 1992.

Ann Verdcourt

Commemorative works are part of a ceramics tradition dating back to the 17th century. Dannevirke potter Ann Verdcourt's commemorative work Abel Tasman (see illustration), has been gifted to the Netherlands to mark the 350th anniversary of Tasman's voyage to New Zealand. Commissioned by the Ministry of External Relations and Trade, Abel Tasman is based on a drawing from Tasman's journal of the Dutch encounter with the Maori in 1642.

Verdcourt has hand built the work from strong high quality clay. In the raw and bisque stages the work was coloured with oxides and stains, before being fired in an electric kiln.

At art school Verdcourt trained as a sculptor, spending one day a week on pottery. Her work includes elements of the vessel and figurative pieces. Verdcourt's studio, which captures the right kind of light, doubles as a wash house.

Abel Tasman, (ceramic work).

Julia van Helden

Drawing, painting and ceramics are the media through which Julia van Helden explores ideas related to action and evidence. Focusing on time sequences, van Helden's work involves what she calls ‘seeing/listening’—starting with a ‘given’ to explore, survey and examine, before registering and remarking on what has been discovered.

“In the resulting interplay all sorts of connections take place, producing the fascination and energy to move the work to the next stage of ordering, accentuating and commenting on what has emerged. The final work is presented as fact/evidence of what has taken place in the same way a rock face reveals the geological processes that formed it.”

Born in Napier in 1938, van Helden has taught in secondary schools and taught drawing and painting at tertiary level. She is now general art tutor at Hawke's Bay Polytechnic and in 1991 was commissioned to make ceramic forms for the New Zealand Expo Pavilion in Seville.

Acceptance/The Eroding Edge.

Rangimarie Hetet

Master weaver Rangimarie Hetet celebrated her 100th birthday in May 1992. Hetet was raised at the Oparure Marae in Te Kuiti, where she learnt the skills of weaving and working kiwi feathers while watching her mother and aunts making items such as cloaks, baskets, mats and fishing nets.

The daughter of Mere Te Rongopamamao and surveyor Charles Hursthouse, Hetet married Tuheka Taonui Hetet in 1911 and the couple had five children. Hetet was widowed in 1938 and supported her family by housekeeping, cooking and milking cows.

A skilled weaver of korowai, piupiu, kete and whariki, Hetet taught and demonstrated the art of weaving throughout New Zealand from the 1950s to the 1980s. Her work has been recorded in books and in documentaries and has been purchased by the New Zealand Government for national and international exhibition. She has an international reputation for her design and artistry.

Hetet received an honorary doctorate from the University of Waikato in 1986 and in 1992 was awarded both a DBE for her services to traditional Maori arts and crafts and the Governor-General Art Award for her contribution to Maori weaving.

Judy Wilson

Sculptor Judy Wilson's earliest memories are of being surrounded by forms, shapes and textures. Her work is inspired by an appreciation of landscape, elements, nature, space and time. Wilson graduated from the University of Canterbury's School of Fine Arts in 1958 where she majored in sculpture. Wilson has lived in the country for most of her life and her studio is on her and her husband's farm at Waikuku, North Canterbury.

With a special interest in contrasts and harmony and the attraction of opposites, Wilson works mostly with connected natural materials and simplicity is a vital component she is always striving for. In past works Wilson has used combinations of wool and stainless steel and presently uses combinations of stone, rock, bark, paper and flax.

Her work has been exhibited throughout New Zealand and in the United States and Europe. She was appointed as an honorary cultural ambassador in 1986 and her work is in public and private collections nationally and internationally.

Untitled, (stone and willow).

Essence and Shadow—troubled histories, (transfer print onto wood, acrylic, metal).

Carole Shepheard

The elevation of an essential female ‘power’ has been central to the recent work of multi-media artist, Carole Shepheard. Shepheard works with techniques and imagery that seek to reinforce and validate women's cultural position. In so doing she challenges the patriarchy, exploring sexual representation from a feminist perspective and examining how history has recorded women in society and culture.

Shepheard's earlier work emphasised the importance of women's personal experiences and focused on the reclamation of women's craft, restoring a hidden history of female participation in activities such as patchwork, embroidery, weaving and applique. During her career she has worked in many art and craft disciplines and exhibits in both fields.

Born, raised and educated in the King Country and Taranaki, Shepheard was a central figure in the women's art movement in New Zealand, initiating the Auckland Association of Women Artists in 1980. Feminist ideology continues to influence her art and teaching. In 1992, Shepheard was invited to represent New Zealand at the 7th Triennale of Tapestry in Lodz, Poland. Shepheard is a senior lecturer at the University of Auckland's Elam School of Fine Arts.

Chapter 11. Leisure and tourism

Japanese tourists on photo tour of New Zealand.

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 sport or leisure activity 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 leisure activity 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.

Surfing in the Smoke-free New Zealand Scholastic Championships, St Clair beach, Dunedin.

Providing for sport and leisure

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 July 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 35 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 30 June 1991 the commission distributed $12.79 million to sport, fitness and leisure groups. This included $5.03 million which was directed through local authorities to fund local sport, fitness and leisure, $3.67 million to assist national sports, fitness and leisure organisations, $0.6 million to the New Zealand Olympic and Commonwealth Games Association, $1.5 million to the New Zealand Sports Foundation, and $0.99 million towards the development and establishment of regional sports trusts. The role of the 13 regional sports trusts is to increase participation in sport and leisure activities in their regions. The trusts are the commission's preferred delivery agents for programmes and projects delivered at the regional and community level. For instance, trusts are contracted to deliver KiwiSport, SportFit, KiwiDex, KiwiAble, Active in Age and Fair Play programmes within their region. 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.

The Blair Athol Marching team, which in 1952 toured England, Scotland, Ireland and Wales.

Older adults. With an increasing proportion of New Zealand's population over the age of 50 the commission introduced the Active in Age programme in 1990. Active in Age is the vehicle for a range of initiatives aimed at increasing the participation of this age group in sport, fitness and leisure activities by promoting the benefits of leading healthy, active lifestyles. Increasing numbers of older adults are participating in a wide range of physical leisure activities, and research (both in New Zealand and overseas) shows clear improvements in the fitness, flexibility, heart rate and blood pressure of participants.

The commission has encouraged local authorities to establish Fifties Forward programmes which meet the physical and social needs of older adults. In addition Fun Festivals for Over Fifties were held in nine regions in 1991–92. A television programme, 50 Forward is designed specifically for this age group and features exercise routines, medical and nutritional information for older adults and interviews with prominent older New Zealanders in full and active lives.

80 year old Elsie Coad working out. She visits the gym three times a week doing a regular 45 minute exercise routine including exercycling, rowing, step-ups, stretching and weightlifting.

People with disabilities. Full and active participation in sport and leisure need not be affected by a person's disability. Through its KiwiAble programme the commission encourages people with disabilities to capitalise on their abilities and skills. KiwiAble stresses the ability of individuals rather than any disability.

The majority of people with disabilities can be included in mainstream sport and leisure activities. The KiwiAble Kit and KiwiSport Mainstream Kit provides teachers and sports leaders with simple and effective guidelines for bringing people with disabilities into the main group.

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 a 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 sport and leisure 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 1991 Business Directory compiled by the Department of Statistics showed 20 040 New Zealanders as being employed within the category ‘recreation services’, an increase over the 19 454 recorded a year earlier.

Jenny Newstead with her haul of medals won at the 1992 Paralympic Games at Barcelona.

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.

Competitor in mountain bike challenge, Wellington.

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.

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 Olympic medals in skiing, swimming, yachting, boxing, equestrian, cycling and athletics. World titles have been won in skeleton (a head-first luge sport), darts and rowing.

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 (swmming/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.

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 1992 more than $20 million assistance had been made available to more than 2000 athletes, coaches and scientists from more than 50 organisations. The foundation currently operates on an annual grants budget approaching $5 million.

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 1991 the foundation again broke new ground in New Zealand sport, launching the lucrative “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 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.

The New Zealand Olympic team at the games of the XXVth Olympiade, Barcelona, Spain in 1992 consisted of 142 athletes who entered for 16 sports. The medal tally for the team was one gold, four silver and five bronze medals.

Yvette Williams (Corlett), New Zealand's first female Olympic gold medallist.

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.

Boardsailor and Olympic gold medallist, Barbara Kendall.

Proud fisherman displaying his 7 kilogram salmon catch, Dunedin.

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.

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 a week. ‘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 has been introduced to amend the Racing Act 1971. The necessary changes came into force for the start of the racing season in August 1992. The major changes are the introduction of full Sunday racing, a new Racing Industry Board to replace the Racing Authority and the ability to introduce Fixed Odds Betting.

Table 11.2. RACE MEETINGS*

  GallopingTrottingGreyhounds
199119921991199219911992

* Full totalisator meetings only, for years ended July.

Source: Totaliser Agency Board.

Race meetings 352351238236100100
Stakes$(000)31,10618,917925
On-course turnover$(000)96,70288,13064,57955,8753,1183,197
TAB turnover$(000)525,518504,767244,664222,11940,76236,823
Total dividends$(000)489,457474,316243,313222,39534,50532,016

Lotteries and gaining. 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 five 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 the score competitions); lotteries (raffles); and instant games. Instant games were introduced through an amendment to the Gaming and Lotteries Act in 1991. They typically appear in a form similar to Instant Kiwi ‘scratch’ tickets. Horse and greyhound racing is controlled through the Racing Act 1971.

Work on new gaming legislation relating specifically to gaming machines progressed throughout 1992. The gaming machine industry has continued to make technological advances since the 1991 study on gaming machines, making new up-to-date legislation for machines a priority. There are now estimated to be 5600 machines sited at 2200 venues (hotels and clubrooms) throughout the country. 1991 saw the introduction of a 20 percent gaming duty on gaming machines. Machine turnover for the 1991/92 year is estimated to be $750 million. Total turnover for all other licensed gaming for the 1991/92 financial year (except Lotto, and Instant Kiwi) is estimated at $58.8 million.

The New Zealand Lotteries Commission recorded total sales for the year ended 30 June 1992 of $555.7 million, that figure being comprised of total sales of $407.7 million for Lotto and total sales of $148 million for Instant Kiwi.

In 1991 the Minister of Internal Affairs commissioned a national study on problem gambling in New Zealand. This study was the first of its kind in the world to be conducted on a national scale. Reports from Phase 1 and 2 of the study have now been published. The studies found that 1 percent of those surveyed were currently pathological gamblers, and that a further 2 percent were currently problem gamblers.

Applications for casino licences are now being considered by the Casino Control Authority. Two licences will be granted initially—one for the North Island and one for the South Island. The Casino Control Authority received six applications for casino operator licences, and six applications for casino premises licences. It is not known when a decision will be made on premise licences, but operator licences were granted at the end of 1992.

Table 11.3. ALLOCATION OF LOTTERY PROFITS

Recipient1989–90*1990–911991–92

* These allocations are for the fifteen month period from 1 April 1989 to 30 June 1990.

† DC is an abbreviation for ‘Distribution Committee'.

Source: Department of Internal Affairs.

 ($million)
Hillary Commission10.6513.7524.0
Arts Council13.37516.418.7
Film Commission8.57.47.8
Lottery General DC49.727.025.7
Community Facilities DC11.013.513.4
Lottery Welfare DC8.510.014.5
Lottery Aged DC2.43.05.8
Lottery Youth DC2.9125.05.3
Health Research DC2.453.53.9
Science Research DC1.753.53.5
Science Centres Sub-committee7.53.9
1990 Community Projects4.52.0
Ministry of Internal Affairs Discretionary Fund16.6153.450.5
      Total132.3116.0126.9

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.

Lorraine Moller, marathon runner and Olympic medallist.

The tourism industry

Tourism is the world's largest industry, according to research by the World Travel and Tourism Council. It employs 112 million people worldwide (one in every 15 workers) and generates US$2.5 trillion a year and is set to keep growing.

In New Zealand, tourism is a $17 million a day business and is the top foreign exchange earner. For the year ended March 1989, inbound and domestic tourism in New Zealand directly contributed $3.3 billion, or 5.2 percent, to the country's gross domestic product (GDP), and $950 million to the government in taxation. Tourism also generated 150,000 full-time equivalent jobs. For the year ended 31 March 1990, the combined value of international and domestic tourism was estimated at $4,251 million. Domestic travel accounts for about half the expenditure on tourism.

International visitor arrivals are expected to increase from just under 1 million in 1991 to nearly 3 million in the year 2000. Based on this continuing growth rate, the tourism industry in New Zealand is expected to be a leading generator of new job opportunities.

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. In a recent survey of New Zealanders' attitudes towards tourism, 98 percent of people surveyed saw tourism as important or very important to the economy and 89 percent thought that tourism had more benefits than costs for the country and their local area. Fifty-two percent of respondents said they had hosted international visitors and 49 percent of the workforce said their work involved direct contact with overseas visitors.

The largely unspoiled and unpolluted environment is a major tourist attraction for visitors, and the protection and wise management of resources ensures that tourism has a positive impact. Increasingly, the industry is working with environmental partners to preserve and, where possible, enhance the environment.

A recent example of this is the Milford Sounds Development Project, which received government funding of $3,250,000 in 1990. Milford is set in the Fiordland National Park and provides a staging post for a number of tourist activities including trampers on the Milford Track, and sightseeing by car, bus, boat, light and amphibious plane or helicopter around and up the Sound. Opened in April 1992, the redevelopment at Milford Sound has been designed to alleviate congestion, upgrade facilities and meet the needs of an estimated peak of 4000-visitors a day or 500,000 visitors annually by the year 2000—during 1991 approximately 230,000 people visited Milford Sound. The project was a co-operative venture with funding and support supplied by the private sector, in the form of a local government and industry consortium, and a levy placed on launch operators.

The upgraded facilities at Milford Sound set a new standard in tourist industry developments in New Zealand and are credited as internationally competitive. The area's redevelopment also acknowledges the importance of a partnership between tourism and conservation (Fiordland National Park is managed by the Department of Conservation). Accompanying the increase in tourist facilities at the site was a necessary rethink of the area's sustainability into the future, taking into account the need to preserve the quality of the visitor experience and the quality of the natural environment.

Tourism also provides an alternative economic justification for protection of the environment, historic places and cultural sites. As a large number of tourism ventures operate on protected land, the relationship for co-operation between tourism operators and the Department of Conservation has become increasingly important.

Table 11.4. EXPENDITURE BY TOURISTS FROM SELECTED COUNTRIES, 1991*

Country of residenceTotal travel expenditureMean expenditure per personMean expenditure per day

* New Zealand International Visitors' Survey.

† Excludes international airfares. Includes pre-paid, cash and credit card spending during respondents' visit to New Zealand.

Source. New Zealand Tourism Board.

 $ (million)$  $  
Australia4711,50198
United States2411,859137
Japan2792,710222
United Kingdom1782,06759
Canada672,14190
West Germany862,92680
Singapore261,970137
Other countries3732,09074
All countries1,7201,94597

Tourism Facilities Development Grants Programme. The Ministry of Tourism administers this grants programme with the purpose of increasing the stock of nationally significant tourism facilities and enhancing overseas visitors' understanding and enjoyment of New Zealand and its attractions. Grants are obtainable for projects which will provide a permanent facility that presents and interprets an aspect of New Zealand's environment, history or culture, which is likely to be of significant interest and attraction to overseas visitors. Many grants have gone towards preserving historical places, cultural sites and the environment, and towards providing facilities the country as a whole can enjoy.

Among the approved grants from the 1991–92 programme are grants to the: Department of Conservation for an information kiosk at the Tane Mahuta site (the largest living kauri in New Zealand) in the Waipoua forest; Kaikoura Information and Tourism Inc towards a visitor information centre focusing on the marine mammal wildlife which can be seen off the Kaikoura coast; Auckland Maritime Museum to assist with the preparation of displays and the interior fit-out of the collection; Department of Conservation to complete the Mount Cook Village landscaping and pathway system; and Saint Faith's Church Restoration Fund Appeal to assist in the restoration of the historic church at Rotorua. Both the whitestone buildings at Oamaru and Napier's art deco buildings have been given a new lease on life through tourism grants. Funding is not available for projects and organisations liable for income tax.

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.

Tourist accommodation. Commercial accommodation has undergone several distinct stages of development, resulting in today's wide variety of facilities. It includes private hotels, guesthouses, tavern/hotels, tourist flats, motels, camping grounds, motor lodges, international standard hotels, cabins, chalets, skiing/hunting/fishing lodges, backpackers' lodges, and farm/home-hosting. Accommodation patterns vary greatly between regions, depending on local population, terrain and climate.

For the year ended March 1991, the use of private homes by international visitors accounted for 48 percent of total person nights; hotel/motel with bar/restaurant 17 percent; hotel/motel with no bar/restaurant 8 percent; youth hostel/backpacker 11 percent; camping/hut/campervan 8 percent; and other 8 percent.

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/van (25 percent); private car (20 percent); organised coach tours (18 percent); scheduled airline (10 percent); campervan (5 percent); and other (22 percent). Most visitors use several modes of transport.

Bicycling trips have proven a popular trend amongst some tourists in recent years, providing a new way for visitors to experience the New Zealand countryside.

International visitors

Just under 1 million overseas visitors now arrive in New Zealand annually. Visitor arrival numbers grew by 3.4 percent in the year ended 31 March 1992, compared with 3.6 percent in the previous year. There has been a growing diversification of countries from which overseas visitors originate.

World champion squash player, Susan Devoy.

Table 11.5. NUMBERS OF INTERNATIONAL VISITORS

Year ended 31 MarchHolidayStay with friends and relativesBusinessOther*Total

* Includes conference/convention work or working holiday, formal education, stopover, and unspecified.

1,983257 910114 75958 07456 915487 658
1,984285 845116 79361 25054 553518 441
1,985341 984127 58668 26959 156596 995
1,986404 036140 48174 66169 895689 073
1,987441 081157 61976 08788 422763 209
1,988455 834194 93288 215116 511855 492
1,989439 249207 333100 224120 716867 522
1,990464 545224 875109 110134 901933 431
1,991491 591238 034103 899133 538967 062
1,992519 274245 845106 238128 357999 714

Table 11.6. COUNTRY OF LAST PERMANENT RESIDENCE OF INTERNATIONAL VISITORS

CountryYear ended March
19911992
Australia343 299341 098
United States139 030134 710
Japan105 716125 226
United Kingdom87 96392 900
Canada33 54528 941
Germany32 17138 064
Singapore15 25118 067
Taiwan11 04919 473
Hong Kong16 11419 351
Sweden8 2887 972
Malaysia9 7839 101
Switzerland11 29811 964
Netherlands7 6248 428
Fiji7 5127 390
Indonesia4 8985 917
France3 8294 738
Tahiti (French Polynesia)3 9975 005
Papua New Guinea2 8533 064
South Africa1 9672,242

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.

Designers with the new Antur Leisure Vehicle they have created, a 1990s redefinition of the camper van.

Table 11.7. DOMESTIC TRAVEL DESTINATIONS

RegionYear ended March 1989Year ended March 1990
ProportionVisitorsProportionVisitors
Source: New Zealand Tourism Board.
 percentno. (000)percentno. (000)
Northland6.82 9098.23 423
Auckland13.45 72015.86 574
Thames Valley6.12 6124.71 982
Waikato5.32 2835.42,274
Bay of Plenty9.54 0517.43 094
East Cape1.87712.41 008
Tongariro4.21 8193.31 393
Taranaki2.91 2472.41 018
Wanganui2.81 2142.1884
Manawatu3.31 4213.01 247
Hawke's Bay4.61 9804.21 774
Wairarapa1.25421.0429
Horowhenua1.56462.0859
Wellington6.62 8056.22 596
Nelson Bays2.51 1103.51 487
Marlborough3.21 3701.8754
Canterbury9.44 0209.33 885
Aorangi2.41 0392.81 199
West Coast2.39832.3979
Coast/North Otago3.21 3853.81 604
Clutha/Central Otago4.51 9494.51 886
Southland1.98252.51 072

Promotion of tourism

New Zealand Tourism Board. The 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 14 overseas marketing and promotion offices. These are located at Sydney, Brisbane, Melbourne, Singapore, Taiwan, Hong Kong, Tokyo, Osaka, Los Angeles, Chicago, New York, Vancouver, Frankfurt and London. Four regional offices within New Zealand are located at Auckland, Rotorua, Christchurch and Queenstown for the purposes of maintaining close links with tourism operators.

Ministry of Tourism. The ministry's principal role is to provide advice to the government on policy issues relevant to the tourism sector. Other functions include representing the government's tourism interests in interdepartmental and intergovernmental activities; managing the Tourism Facilities Development Grants programme; managing and reviewing crown lands and Acts for which it has responsibility; and providing services, including information, for Parliament and the Minister of Tourism.

The ministry seeks to ensure policies which affect tourism are consistent and conducive to growth, foreign exchange earnings and job creation. At the same time, the ministry seeks to ensure that tourism is sustainable in the long term, by being sensitive to environmental and social needs.

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.

Ultra-marathon runner, Sandy Barwick.

Contributors

  • 11.1 Hillary Commission for Sport, Fitness and Leisure; New Zealand Amateur Arts Assembly; New Zealand Assembly for Sport; New Zealand Sports Foundation; Department of Conservation; Office of the Minister for Racing; Department of Internal Affairs; Lotteries Grants Board.

  • 11.2 New Zealand Tourism Board; Ministry of Tourism; New Zealand Tourist Industry Federation.

Special articles

Casino Control Authority; Hillary Commission for Sport, Recreation and Leisure; Ministry of Tourism; New Zealand Marching Association; New Zealand Olympic and Commonwealth Games Association; New Zealand Paraplegic & Physically Disabled Federation Inc.

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).

Volkswagen enthusiasts celebrating the 56th anniversary of the ‘beetle’, Wellington.

Chapter 12. Employment

First woman avionics engineer, Tanya Schroeder.

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 1991 census.

The 1991 Census and Household Labour Force Survey definitions of the labour force count all those who work for one hour or more per week for pay or profit (including unpaid family members working in a family-owned enterprise) plus unemployed people who are “actively” seeking work or are about to start a job.

Table 12.1. THE LABOUR FORCE*

Quarter endedLabour forceNot in labour forceWorking-age populationLabour force participation rateUnemployment rate
EmployedUnemployed

* Based on quarterly Household Labour Force Survey.

† Civilian, non-institutionalised, usually resident New Zealand population aged 15 and over.

  (000) percent
Male
1991–Mar827.791.9319.61 239.374.210.0
          Jun818.195.6329.51 243.273.510.5
          Sep808.6105.1333.61 247.373.311.5
          Dec818.9106.6324.71 250.274.011.5
1992–Mar821.9106.2326.71 254.974.011.4
          Jun821.497.8339.01 258.273.110.6
Female
1991–Mar643.669.0591.81 304.454.69.7
          Jun644.467.5596.21 308.154.49.5
          Sep638.567.5604.91 310.953.99.6
          Dec644.266.5604.11 314.854.19.4
1992–Mar638.075.2605.71 318.854.110.5
          Jun648.064.5609.01 321.553.99.1
Total
1991–Mar1 471.3160.9911.42 543.764.29.9
          Jun1 462.5163.1925.82 551.463.710.0
          Sep1 447.1172.6938.52 558.263.310.7
          Dec1 463.1173.2928.82 565.063.810.6
1992–Mar1 459.9181.4932.42 573.763.811.1
          Jun1 469.4162.3948.02 579.763.39.9

Size and growth of the labour force

New Zealand's labour force grew 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. However, during the 1986–1991 intercensal period the number of persons in the labour force dropped to 1 564 173, a decrease of 44 439 or 2.8 percent. This was despite a continuing increase in the number of persons aged both 15 and over (from 2 468 301 to 2 590 284) and the more usual working ages of 15–59 (from 1 987 386 to 2 069 607).

TOTAL LABOUR FORCE PARTICIPATION RATES

By age and sex

Labour force growth and changes in labour force participation levels varied markedly for males and females between 1961 and 1991. There was an extremely high level of growth in the female labour force, from 240 134 persons at the 1961 Census to 678 390 at the 1991 Census, an increase of 438 256 or 182.5 percent. This growth did however, slow to a more modest 1.3 percent in the 1986–1991 intercensal period. The size of the male labour force increased less markedly (by 39.1 percent) between 1961 and 1986, and decreased by a significant 5.6 percent in the 1986–1991 intercensal period.

In contrast to male labour force participation, which decreased slowly but steadily during the intercensal period 1961–91, female labour force participation has increased rapidly. This has resulted in an obvious change in the sex distribution within the labour force. At the 1961 Census 73.7 percent of the labour force were male, but by the 1991 Census this figure had fallen to

Table 12.2 shows the full time and part time labour force at the 1991 Census of Population and Dwellings, by age group and sex.

For the 1991 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 actively seeking full time work. Those people aged 15 years and over working 1–29 hours per week or unemployed and actively seeking part time work, formed the part time labour force. 56.6 percent.

Table 12.2. AGE AND SEX OF THE LABOUR FORCE, 1991 CENSUS*

Age group (years)MalesFemales
Full time in labour forcePart time in labour forcePercentage labour force full timeFull time in labour forcePart time in labour forcePercentage labour force full time

* Population resident in New Zealand aged 15 years and over in the labour force.

† Number of persons in the labour force as a percentage of the population aged 15 years and over.

15–1950 52621 09370.540 10125 73760.9
20–24101 6167 95692.777 91914 52984.3
25–29110 8025 60195.266 15020 72776.1
30–34114 4355 13995.752 36831 95962.1
35–39105 5044 68395.753 90733 17461.9
40–44103 7524 41395.961 52729 55667.6
45–4981 5553 67895.748 80721 15969.8
50–5466 2463 76894.635 09917 13667.2
55–5948 8944 26992.019 21511.65862.2
60 and over29 62512 22570.88 2989 41746.8
            Total812 95272 82891.8463 338215 05268.3
Percentage of population64.45.834.916.2

There was a clear structural difference between the male and female participation rates in the labour force at the 1991 Census. The overall participation rate for the male population (aged 15 years and over) was much higher, 70.2 percent compared with 51.5 percent for females. Some of the reasons for this disparity are discussed in the following section.

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.

The female labour force at the 1991 Census of Population and Dwellings numbered 678 390, of which 463 338 were full time workers and 215 052 part time workers. At the 1986 Census the corresponding total figure was 669 999.

Although the number of women in the labour force has been increasing over recent years, their participation rates remain considerably lower than those of men across all age groups, with the exception of women aged 15–19. The participation rate for women in the 25–29 and 30–34 age groups is markedly lower, reflecting the temporary withdrawal from the labour force of many women to care for children. When the participation rate is categorised by full time and part time work status, this group also shows a compensating increase in part time participation for a decrease in full time participation. This is partly a reflection of the way women often fit their careers around their family responsibilities.

National Advisory Council on the Employment of Women (NACEW). The National Advisory Council on the Employment of Women is composed of a chairperson and 15 other members. The chairperson and seven council members are appointed by the Minister of Employment for their knowledge and experience in women's employment matters. The remaining eight 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 in 1991, NACEW 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, over 1991–92 the council has made submissions on issues such as the Accident Rehabilitation and Compensation Insurance Bill, the Health and Safety in Employment Bill, the Industry Training Bill and changes to the Human Rights legislation.

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. In 1990 the council completed a major research project on women's participation in the labour market. Over 1992–93 NACEW, in conjunction with the Department of Labour and the Ministry of Women's Affairs, is undertaking research into women's self employment.

Full time and part time work

The population resident in New Zealand gainfully employed in the full time labour force, i.e., working 30 hours or more per week, decreased from 1 278 192 at the 1986 Census to 1 151 199 at the 1991 Census, a decline of 126 993 or 9.9 percent. By contrast, the number of persons working 1–29 hours per week increased by 27 984 or 12.7 percent, to 249 201 persons.

At the 1991 Census full time workers made up 82.2 percent of persons employed in the labour force, the remaining 17.8 percent being part time workers. Women comprised 75.6 percent of the gainfully employed part time labour force, but only 36.2 percent of full time workers.

Table 12.3 shows that between the 1986 and 1991 Censuses the composition of the employed population changed quite dramatically in terms of both hours worked and the sex of those employed. There were large increases in the number of employed males in the part time labour force for all the ‘hours worked’ categories, especially the 1–4 hours category. Conversely the number of males working full time decreased by 12.7 percent during the intercensal period.

The female labour force showed similar though less pronounced movements, with an increase of 9.4 percent in part time numbers being more than offset (numerically) by a decrease of 4.6 percent in women working in the full time labour force.

In neither the male nor the female labour force does increased participation in the part time labour force compensate for losses in the full time labour force, with the total number of employed persons decreasing by 10.7 and 0.6 percent respectively.

LABOUR FORCE PARTICIPATION RATES

Population aged 15 years and over

Table 12.3. HOURS OF WORK*

Hours worked per weekMalesFemales
1986 census1991 censusPercentage intercensal change1986 census1991 censusPercentage intercensal change

* Population resident in New Zealand and gainfully employed in the labour force.

† Excludes persons unemployed and seeking work.

Part time labour force
  1– 42 9434 63257.410 67712 89420.8
  5– 911 03413 03818.227 51932 85619.4
10–148 34011 32235.829 68833 96614.4
15–197 3058 56817.331 51832 7393.9
20–2411 11815 51939.644 28648 0458.5
25–295 6137 71337.426 17527 9126.6
Not specified2 6402 352
            Total, part time48 99660 78624.1172 221188 4159.4
Full time labour force
30–3417 99121 95422.039 40542 5137.9
35–3959 01645 117−23.687 68180 838−7.8
40–44367 122308 967−15.8210 045194 010−7.6
45–49124 854106 866−14.430 02134 71315.6
50–5499 11498 277−0.818 90325 01432.3
55–5936 07834 968−3.17 0658 75423.9
60–6452 47056 3617.49 67812 47128.9
65–6912 56713 1975.02 0372 80837.8
70–7418 41420 2119.84 0024 86921.7
75 or more28 59328 365−0.89 97210 9299.6
Not specified25 11018 054
            Total, full time841 329734 283−12.7436 863416 916−4.6
            Total890 325795 069−10.7609 084605 334−0.6

FEMALE LABOUR FORCE PARTICIPATION RATES

By age

Employment status

An 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 1991 Census 22.2 percent of males were employed in these two categories, compared with 10.4 percent of females. In contrast, “wage or salary earners” constituted 65.7 percent of the male labour force and 75.8 percent of the female labour force.

Table 12.4. EMPLOYMENT STATUS OF THE LABOUR FORCE, 1991 CENSUS*

Age group (years)Employer of others in own businessSelf-employed and not employingWage or salary earnerUnpaid in family businessUnemployed and actively seeking workNot specifiedTotal

* Persons resident in New Zealand working one or more hours per week, plus persons unemployed and actively seeking work.

Males
15–1922864550 45163918 81982871 616
20–241 0894 28183 10644419 6021 050109 569
25–294 72510 64785 49144413 9381 158116 406
30–3410 68615 63381 24050410 3531 164119 574
35–3913 67416 83370 2576187 7761 026110 184
40–4415 14717 97966 9696816 441951108 165
45–4912 41714 73951 8795974 83676885 236
50–549 60912 51042 3245704 34765470 017
55–596 4659 99632 0375283 57656753 166
60 and over6 78313 00518 2221 9471 02386741 847
            Total80 814116 268581 9796 97290 7089 036885 777
Females
15–1920124345 67537818 59175665 841
20–246421 50673 56348015 36090692 451
25–292 0704 04168 1331 29910 46787386 880
30–344 0626 49262 2472 1608 43692784 327
35–394 8366 97565 7662 0166 59489487 081
40–445 3647 14670 3801 9265 31394891 080
45–494 1255 75154 0661 5963 75966369 966
50–543 1114 66839 7981 3442 67958252 185
55–591 7493 18623 1519301 47039030 873
60 and over1 2933 11711 1451 38039039017 715
            Total27 44743 125513 92413 50973 0627 326678 393

A higher proportion of women were “unpaid workers in family businesses”—2.0 percent compared with 0.8 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.

ETHNIC EMPLOYMENT

By major industry group

Industrial structure of the labour force

During 1986–91 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 1986 and 1991 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’ decreased their proportion of the employed population, from 11.3 percent to 10.7 percent. Employment in manufacturing decreased substantially, falling from 21.3 percent to 16.8 percent during the intercensal period. Other major secondary industries showed varying levels of decline.

The tertiary sector increased its overall share of the employed population, from 58.9 percent at the 1986 Census to 64.2 percent at the 1991 Census. However, within this sector the “transport, storage and communications” major divisions declined as a percentage of total employment.

MALE EMPLOYMENT BY INDUSTRY

Full-time work-force only

Table 12.5. INDUSTRIAL STRUCTURE OF THE LABOUR FORCE*

Industry major division1986 Census1991 CensusIntercensal percentage change
NumberPercentage distributionNumberPercentage distribution

* Persons resident in New Zealand gainfully employed for one or more hours per week Excludes persons unemployed and seeking work.

† Calculated from persons whose industry major group is adequately defined.

Agriculture, hunting, forestry and fishing161 63410.9142 11310.4−12.1
Mining and quarrying5 9970.44 5000.3−25.0
Manufacturing316 20321.3231 03916.8−26.9
Electricity, gas and water15 7291.111 1030.8−29.4
Construction102 0366.884 8016.2−16.9
Wholesale, retail, restaurants and hotels292 13119.7284 42120.7−2.6
Transport, storage, and communications110 9767.584 8586.2−23.5
Business and financial services122 9468.3161 32211.831.2
Community, social and personal services357 73524.1368 36126.83.0
Not adequately defined14 025..27 882..98.8
            Total1 499 421100.01 400 400100.0−6.6

Occupational structure of the labour force

The New Zealand Standard Classification of Occupations was revised in 1990. It now lists 10 major occupational groups which are defined in terms of skill requirement rather than type of work performed as with previous censuses. As a consequence the occupation data from the 1986 and 1991 censuses is not comparable.

Table 12.6 shows the number of persons in each occupation major group. The largest group was “clerks” with 14.6 percent of employment persons, while “armed forces” was the smallest, at 0.6 percent.

Table 12.6. OCCUPATIONAL STRUCTURE OF THE LABOUR FORCE, 1991 CENSUS*

Occupation major groupNumberPercentage distribution

* Persons aged 15 years and over resident in New Zealand working one or more hours per week Excludes those unemployed and actively seeking work.

† Calculated on adequately defined cases only.

Armed forces7 7280.6
Legislators, administrators and managers162 29111.8
Professionals167 56212.2
Technicians and associate professionals150 70812.2
Clerks200 81114.6
Service and sales workers170 70612.4
Agriculture and fishery workers137 36110.0
Trades workers149 42710.8
Plant and machine operators and assemblers131 7069.6
Elementary occupations99 7777.2
Not adequately defined22 326..
            Total1 400 403100.0

There was a wide variation in the occupational distribution of the male and female employed populations at the 1991 Census. Examples include the disproportional representation of males among trades workers (94.1 percent male), and the domination of clerical occupations by females (82.0 percent).

These differences become even greater when employees are further classified by full time and part time work status as shown in table 12.7.

“Service and sales workers” accounted for a large proportion of female part time workers (28.1 percent), and together with “clerks” made up 53.8 percent of the female part time labour force. The male part time labour force was more evenly distributed through the occupation major groups, with the largest representation being in the “elementary occupations” (18.3 percent), followed closely by “service and sales workers” with 17.8 percent.

The lowest ratio of full time to part time workers was recorded in the “elementary occupations” for females (49 full time for every 100 part time workers) and among “service and sales workers” for males (82:100).

FEMALE EMPLOYMENT BY INDUSTRY

Full-time work-force only

YOUTH EMPLOYMENT

By age group and occupation

The Department of Labour's first female inspector of factories, Grace Neill.

Table 12.7. LABOUR FORCE BY OCCUPATION, WORK STATUS AND SEX, 1991 CENSUS*

Occupation major groupFull timePart timeFull 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 actively seeking full time work.

‡ Persons working 1–29 hours per week Excludes those unemployed and actively seeking part time work.

§ Calculated on adequately defined cases only.

Armed forces
      Male6 7710.9990.298.6
      Female8220.23995.5
Legislators, administrators and managers
      Male106 57214.73 3245.697.0
      Female44 61310.97 7824.285.1
Professionals
      Male73 64410.24 1617.194.7
      Female65 90416.023 85913.073.4
Technicians and associate professionals
      Male83 02811.55 2989.094.0
      Female48 06311.714 3197.877.0
Clerks
      Male32 9644.63 1145.391.4
      Female117 40228.647 33425.771.3
Service and sales workers
      Male49 3146.810 50617.882.4
      Female59 13914.451 74428.153.3
Agriculture and fishery workers
      Male88 85112.38 34314.291.4
      Female26 2986.413 8727.565.5
Trades workers
      Male133 79418.56 84311.695.1
      Female6 9391.71 8541.078.9
Plant and machine operators and assemblers
      Male94 83613.16 42010.993.7
      Female24 7326.05 7123.181.2
Elementary occupations
      Male54 5737.510 80018.383.5
      Female16 8694.117 5329.549.0
Not adequately defined
      Male9 936...1 881...84.1
      Female6 138...4 368...58.4
            Total male734 280100.060 789100.092.4
            Total, female416 916100.0188 415100.068.9

12.2 Unemployment

There are three main sources of unemployment data in New Zealand:

  • The Department of Statistics' Household Labour Force Survey (HLFS).

  • The Department of Statistics' five-yearly Census of Population and Dwellings.

  • The Department of Labour's Job-Seeker Register.

These measures differ from each other in their scope and collection methods and in the way they define unemployment. The census counts as unemployed everyone who said they were both unemployed and actively seeking full or part time employment. “Active” job-search requires that a person be doing more than just looking through newspaper job advertisements. The HLFS, which is a quarterly sample survey of households, uses a similar definition but with the additional restriction that the job-seeker must be available to begin work within the following four weeks. This is based on the internationally recognised ILO definition of unemployment, used in many countries.

The Department of Labour's measure of “registered unemployed” is a count of all those who are unemployed, seeking full time work and who have registered with the department's Employment Service. Registration is open to all job-seekers but is required of those receiving the Unemployment Benefit. The Department of Labour releases a monthly update of registered unemployment data.

Because of the definitional differences, some people may be classified as unemployed by one measure and not unemployed by another. For instance, a person on the Employment Service Unemployment Register may have a temporary job working a few hours each week and would therefore be classified as “employed” in the Household Labour Force Survey. Others who are unemployed may choose not to register with the Employment Service.

A broader definition of unemployment which is sometimes referred to is what is known as the “jobless”. This is also derived from the Household Labour Force Survey but includes those who are not actively searching or not immediately available to take work as well as the ‘official’ unemployed.

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.

Social and demographic characteristics of unemployment

At the 1991 Census of Population and Dwellings, a provisional total of 163 770 persons—comprising 90 708 males and 73 062 females—indicated they were unemployed and seeking work. This number was 10.5 percent of the labour force, while that for males was 10.2 percent and that for females 10.8 percent of the male and female labour forces respectively.

UNEMPLOYMENT

Registered unemployed including vacation workers

A breakdown by ethnic group reveals that there were 37 050 New Zealand Maori unemployed, representing 24.2 percent of the Maori labour force.

The corresponding figure for Pacific Islanders was 10 944 (20.5 percent of the Pacific Island labour force). Unemployed ‘Europeans and others’ numbered 115 410 or only 8.5 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 Islanders 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 GROUP AND AGE OF THE UNEMPLOYED, 1991 CENSUS*

Age group (years)New Zealand MaoriPacific IslandersEuropean and otherNot specifiedTotal
Number unemployedPercentage§Number unemployedPercentage§Number unemployedPercentage§Number unemployedPercentage§Number unemployedPercentage§

* Population resident in New Zealand aged 15 years and over.

† All persons of New Zealand Maori ethnic group.

‡ Persons of Pacific Island ethnic group, excluding those persons also belonging to the New Zealand Maori ethnic group.

§ The number of unemployed persons in the specified age group as a percentage of the total labour force in that specified age group.

15–198 96142.82 16642.726 21423.66624.837 41027.2
20–248 49331.92 57425.723 81414.47817.334,95917.3
25–3411 23824.33 28219.128 5638.310210.943 18810.6
35–445 10915.61 77914.019 1675.5666.826 1216.6
45–593 11712.71 09513.816 4105.0515.420 6705.7
60–641026.6339.98762.532.91 0142.7
65 and over305.01514.73571.634.53991.8
            Total37 05024.210 94420.5115 4108.53729.9163 77010.5

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. This table suggests that unemployment is influenced by scholastic achievement.

Table 12.9. EDUCATIONAL QUALIFICATIONS AND SEX OF THE UNEMPLOYED, 1991 CENSUS*

Highest school qualificationMalesFemales
NumberPercentageNumberPercentage

* Population resident in New Zealand aged 15 years and over.

† Persons unemployed and seeking work.

No school qualifications45 29150.527 97238.7
School Certificate18 70520.918 06925.0
Sixth Form Certificate, University Entrance11 84113.213 96519.3
Higher School Certificate, Higher Leaving Certificate4 4795.03 7865.2
University Bursary, Scholarship5 5416.24 9536.9
Overseas Qualification2 3492.62 0372.8
Other School Qualification1 4131.61 4432.0
Not specified1 092...831...
            Total90 708100.073 062100.0

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 a number of schemes, in addition to providing an employment service.

Visually impaired toymaker trainee.

Education and Training Support Agency

The Education and Training Support Agency was established by the Education Amendment Act 1990. It reports directly to the Minister of Education through its board of directors. The purpose of the agency is to facilitate a diversity of training options in response to the needs of its clients and the New Zealand economy.

Education and training play a key role in the ability of industries and individual enterprises to develop and sustain a competitive advantage. The speed with which training systems can respond to changing skill requirements is critical. The Education and Training Support Agency pursues responsiveness by working closely with industries, enterprises and individuals to understand their needs and develop solutions from a range of linked products and services. All training supported by the agency will be to nationally recognised standards and in future will be recognised in the national qualifications framework.

Trainee clients span people seeking to enter the workforce for the first time, people seeking to re-enter or reskill to meet changing skill needs and people in the workplace. The agency is committed to raising the skill level of all New Zealanders to ensure the best use of our human resources for the general economic good. The agency focuses on upskilling groups and individuals who respond to training with a clear labour market focus.

The Education and Training Support Agency is responsible for the following major training initiatives: the new Industry Training Strategy; the Training Opportunities Programme; and Youth Traineeships.

Industry Training Strategy. The Government's Industry Training Strategy is designed to increase the relevance, and overall amount of industry training in New Zealand. The international competitiveness which New Zealand needs to achieve requires a highly skilled and adaptable work force. Currently too few employees are able to benefit from high quality on—job training to national standards.

The strategy is designed to:

  • Extend systematic training to industries and occupations which do not currently have formal training systems.

  • Ensure that existing industry training arrangements can be developed to meet future needs.

  • Provide for training to national industry standards.

Under the Industry Training Act which came into force on 1 July 1992, industry will progressively take over responsibility for developing, implementing and administering its own training over the next three years. The Act:

  • Provides for the establishment and recognition of industry training organisations.

  • Puts in place arrangements for a smooth transition from the present system of industry training to the new system.

  • Promotes the development of national industry skill standards under the national qualifications framework.

Apprenticeship—apprenticeship training continues largely as before. Existing apprentices will be able to complete their apprenticeships and employers are being encouraged to continue to take on new apprentices.

However, instead of an apprenticeship contract, apprentices will have an Employment Contract under the Employment Contracts Act 1991; and a Training Agreement. Each industry will continue to set the training requirements for the industry. Eventually industry training organisations will take over responsibility for apprenticeships in their industry.

In the year to 30 June 1992 there were 2587 new apprentices. This compares with 4856 for the previous year. The total number of apprenticeship agreements in force was 14 180, a 22 percent drop from last year.

Table 12.1. APPRENTICESHIP CONTRACTS IN SELECTED INDUSTRIES*

IndustryContracts begun during yearCompleted during yearTotal in force

* Year ending 30 June 1992.

Source: Education and Training Agency.

Carpentry3287191 929
Electrical1904601 255
Mechanical engineering2995891 147
Hairdressing5554031 918
Motor3356282 102
Plumbing and gasfitting106203435
Printing44116319

Installing the air ducting system at the $27 million South City Centre shopping mall, the largest such system to be built in Christchurch.

Primary industry cadet schemes—these schemes offer supervised on-job training in the primary industry. They are designed to provide cadets with the skills necessary to pursue a career in the primary industry.

Over the year ending 30 June 1992 a total of 2846 cadet training places were available. These were distributed among the four schemes as follows: Horticulture 289, Pork and Farming 1397, Equine 360, Forestry 800.

ACCESS Training Scheme—ACCESS courses offer training to people who need skills to help them get a job. A wide variety of courses are available from forestry to typing. ACCESS courses also take place in a variety of settings for example some courses are run on marae, in polytechnics and on the job with employers.

An average of 13 082 training places were made available throughout the training year to June 1992. Nineteen percent of all trainees achieved employment and 33 percent undertook further progressive training.

Training opportunities. From January 1993 Training Opportunities courses will start to replace ACCESS courses. Training Opportunities courses will be made up of units of learning leading to the new National Certificate. This is so trainees can build up skills and qualifications from course to course, and show employers exactly what skills they have achieved.

In preparation for Training Opportunities, providers of training are being registered by the New Zealand Qualifications Authority as “private training establishments”. Once registered, providers will be able to seek accreditation to deliver units of learning leading to nationally recognised qualifications.

Youth Traineeships—Youth Traineeships offer additional structured training in the workplace to young people aged 15 to 21. They provide additional training places for young people and give employers an opportunity to introduce systematic training into their business. Young people participating in Youth Traineeships are employees and have an employment contract with the employer.

The Education and Training Support Agency purchases the training places from industry and employers on behalf of trainees and provides training support during the Youth Traineeship period. The training will eventually be tied in to the national qualifications framework which means it will be recognised by the other employers and may lead to a qualification.

Youth Traineeships were successfully piloted during the year to June 1992 with 178 young people taking part. The scheme will be expanded nationwide in 1993.

Quest Rapuara—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, now a Crown-owned enterprise was established in July 1990. It is directly responsible to the Minister of Education who appoints a board to oversee its work. Quest Rapuara contracts with the Minister of Education to deliver a range of services to agreed consumers through a document of accountability signed between the Minister and the board. The document also allows the agency to negotiate contracts with other organisations, both public and private.

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. The Quest Rapuara Database has been available to the public since February 1991. It contains detailed descriptions of approximately 550 jobs and over 3000 courses. The database is available to the public in each of Quest Rapuara's district offices. In addition the database has been purchased by tertiary institutions, libraries, prisons, embassies, the New Zealand Qualifications Authority, New Zealand Employment Service, Workbridge, ACCESS providers and over 340 secondary schools.

  • 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.

Quest Rapuara has an infrastructure of five regions covering the whole country with 21 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 65 full time 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.

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. A small-scale pilot scheme is also being run, which allows clients in selected areas to capitalise a portion of their Enterprise Allowance, up to a maximum of $5,000. In addition to meeting the normal Enterprise Allowance criteria, clients must also have completed a “Be Your Own Boss” skills training and assessment programme, have a minimum of $1,000 equity in the business, and have exhausted other forms of funding.

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.

Taskforce Green worker.

Community Taskforce—this is a programme which provides work experience for job seekers who have been registered continuously as unemployed for at least 13 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.

Taskforce Green—this programme provides work experience for job seekers who have been registered unemployed for at least 26 weeks. Sponsors are paid a partial wage subsidy for projects of normally up to 26 weeks. The programme is open to both public and private sector sponsors, for projects of benefit to the environment and the community.

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, Job Wise 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. Job Wise is a two day programme designed to assist long-term unemployed people to improve their motivation and job search skills.

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.

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.

Women's workshop on car maintenance, Wellington.

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 locations.

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. The Community Employment Group was officially launched in February 1992 and is an amalgamation of the Department of Labour's Group Employment Liaison Service, Community Employment Development Unit and the Department of Internal Affairs' Alternative Employment Programme.

The group's aim is to maximise employment creation initiatives through partnership with community-based employment and enterprise development projects. Fifty nine community employment advisers organised in five regional teams are supported by 24 centrally based staff. The community employment advisers work with a wide variety of groups who are interested in creating jobs including local authorities, community organisations, government agencies, Maori and Pacific Island groups, trusts, women's organisations and business groups, as well as unemployed people.

The group's greatest resource is its nationwide network of field staff who offer time, expertise, information, and assistance in the planning, development and management of employment creation initiatives.

The group also has some funding available to help communities identify, maintain and develop jobs. These funds are not available to fully-fund projects nor to directly fund individuals setting up small businesses.

Local Employment and Enterprise Development Fund— this fund is to improve the employment potential in communities by promoting the development of a local enterprise culture. For example, part of this fund is used to purchase a package of business skills training, mentoring and advice for unemployed people with a business idea who are interested in self employment. The “Be Your Own Boss” package is run by organisations, under contract to the Community Employment Group, who have successfully tendered for it on the basis of published criteria.

Community Employment Assistance Fund—this fund provides grants to assist communities to identify and realise projects which contribute to the development of sustainable employment opportunities using existing communities resources. The projects must aim to help unemployed people within the community resources. The projects must aim to help unemployed people within the community move towards employment. The grants are made to recognised groups with a formal legal existence, for example trusts, incorporated societies and local bodies. Examples of projects that may receive funding include the development of an information network, a community planning day, development of an alternative way of using a community resource and the exploration of a viable community-run venture.

Group Development Assistance Fund—this fund is specifically for groups of people who are severely disadvantaged in the marketplace because of barriers like a lack of skills training and qualifications, age, a criminal or substance abuse record, gang association and length of time unemployed. The range of projects that can be considered for GDA assistance is wide, reflecting the diverse needs of disadvantaged groups, though all projects must aim to move the participants towards self-sufficiency. Funding is approved as one-off grants to sponsoring organisations.

12.4 Pay and incomes

Personal income

Personal income information from the 1991 Census of Population and Dwellings shows significant income disparities between males and females. Table 12.11 relates the median personal incomes of males and females in the labour force to their employment status, and shows that for all employment status categories the income for males is higher than that of their female counterparts. The disparity is greatest, in dollar terms, among persons who are employers of others in their own business, where the male median income exceeds the female median income by $11,334.

Table 12.11. MEDIAN INCOMES BY EMPLOYMENT STATUS, 1991 CENSUS*

Employment status,Median Incomes ($)
MaleFemaleTotal

* Population resident in New Zealand aged 15 years and over.

Wage or salary earner26,74518,01122,574
Self employed and not employing others22,38914,63420,283
Employer of others in own business32,82221,48829,303
Unpaid worker in family business9,2176,7697,871
Unemployed and actively seeking work7,4467,1187,330
Not specified21,19314,27217,998
            Total, labour force24,67316,27720,864

Income disparities are also present in the broad work status statistics shown in table 12.12. The larger income differential in the total labour force, relative to the full time and part time labour forces, is due to the larger proportion of females in the part time labour force.

FEMALE BREADWINNERS

Percentage of all salary and wage earners

Median income disparities within the full time and part time labour forces are mainly the result of the different occupational and industry mixes of females and males.

Table 12.12. MEDIAN INCOMES BY WORK STATUS 1991 CENSUS*

Work statusMedian Incomes ($)
MaleFemaleTotal

* Population resident in New Zealand aged 15 years and over.

† Persons working 30 or more hours a week, plus persons unemployed and actively seeking full time work.

‡ Persons working 1–29 hours, plus persons unemployed and actively seeking part time work.

Full time in labour force25,72120,20223,479
Part time in labour force10,4839,1199,355
Non labour force8,9718,8408,890
            Total19,24311,27814,142

Earnings

The Quarterly Employment Survey covers businesses with more than two ‘full time equivalent’ employees (excluding working proprietors). Information is collected for the 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.

Pickles and preserves entrepreneur, Lesley Cotterill.

Industries excluded from the survey are: agriculture and agricultural contracting, fishing, hunting and trapping, 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).

 $$
1990—Aug515.16548.57
            Nov521.25557.48
1991—Feb529.40563.47
            May531.78563.22
            Aug537.88565.24
            Nov541.40572.34
1992—Feb549.44579.99
            May550.94580.00

Table 12.14. AVERAGE ORDINARY TIME HOURLY AND WEEKLY EARNINGS, MAY 1992

 PrivateCentral government tradingCentral government non-tradingLocal government tradingLocal government non-tradingAll sectors
Hourly earnings—$
      Males15.3518.6419.7116.0816.2316.22
      Females12.1713.9214.9312.7614.4113.13
      All persons14.0816.7916.8215.4615.6414.87
Weekly earnings—
Males578.17720.10746.92620.16611.08612.75
Females435.68513.01552.55462.96501.48474.95
All persons519.62636.67628.36589.21573.78550.94

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, rebates and exemptions are 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 National Superannuation payments.

For individual full time wage and salary earners only, separate series are produced for the highest 20 percent of earners, the second highest 20 percent and so on down to the lowest 20 percent. Only series for the highest, middle and lowest income groups are shown in the following tables and graph. The estimated annual gross income ranges for the June 1992 quarter are specified below:

Highest 20 percent$42,900 and over
Second highest 20 percent$32,400 and under $42,900
Middle 20 percent$25,500 and under $32,400
Second lowest 20 percent$18,800 and under $25,500
Lowest 20 percentunder $18,800

The income ranges relating to the five income groups vary from quarter to quarter. The individuals falling into each group may also change due to differing wage increases between industries and, occasionally, due to changes in government benefit schemes.

Trends in the Real Disposable Income Indexes for full time wage and salary earners are illustrated in the accompanying graph and some significant economic events, which influenced the results, are marked.

It should be noted that from the June 1990 quarter Family Support for two-parent families is paid to the primary caregiver, 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 do not reflect the full impact of the scheme on families.

Similarly, because most recipients of Social Welfare benefits are not full time wage and salary earners, the real disposable income series do not fully reflect policy changes, such as the reduction of benefit payments which was applicable from April 1991. The introduction of the ACC levy on 1 April 1992 impacts on the series for the June 1992 quarter. Changes in the National Superannuation surcharge, benefit rates and student allowances at the same time have a much less significant effect on the full time wage and salary earner series.

It should be noted that the relevance and reliability of the real disposable income series has been called into question in the current economic environment. These statistics should therefore be interpreted with caution.

The Real Disposable Income Indexes were designed at a time when centrally-negotiated wage settlements were the norm, inflation was rising rapidly and changes from direct to indirect taxation were being considered. During this period of highly-regulated and relatively stable economic activity, the series reflected the interaction of such factors on the well-being of full time wage and salary earners and their households.

Several shortcomings have merged as the role of government has altered and the economy has been restructured. The real disposable income model uses industry-based income indicators and therefore cannot quantify the effects of the localised wage-fixing arrangements being made under the Employment Contracts Act. There is increasing emphasis on workplace settlements and individual contracts and on wage differentials for varying occupations and skill levels.

The coverage of the main real disposable income series, namely full time wage and salary earners, is now less representative of the New Zealand population as a whole than when it was developed. Levels of part time employment and unemployment have increased significantly in the deregulated economy, but the Real Disposable Income Indexes cannot reflect the experience of those who move out of work or to lower-paid or part time positions.

User-pays policies, which are a feature of life in New Zealand today, impact differentially on different income groups. However, the Consumers Price Index is based on the average expenditure pattern of all New Zealanders. By using the CPI as a measure of purchasing power in the calculation of real disposable income, the impact of health-user charges on full time wage and salary earners is not fully addressed.

REAL DISPOSABLE INCOME INDEXES

Full-time wage and salary earners

Table 12.15. REAL DISPOSABLE INCOME INDEXES AND RELATED MEASURES FOR FULL TIME WAGE AND SALARY EARNERS*

Calendar quarterLowest 20 percentMiddle 20 percentHighest 20 percentAll full time wage and salary earners
Index numberPercentage change from same quarter previous yearIndex numberPercentage change from same quarter previous yearIndex numberPercentage change from same quarter previous yearIndex numberPercentage change from same quarter previous year

* Persons working 30 or more hours per week for wages and/or salaries as the principal source of income. Base: Year ended 31 March 1981 (= 1000).

† To calculate these indexes gross incomes are first adjusted for income tax liability and then for inflation as measured by the Consumers Price Index. The series therefore measure quarterly changes in the after-tax purchasing power of gross incomes.

‡ Measure the changing level of gross income from all sources.

§ For each group of taxpayers, total personal income tax liability is expressed as a percentage of total gross income from all sources.

Real disposable income indexes 
1990—Sep926−0.49450.31,0740.89860.4
            Dec929−1.0949−0.31,077990−0.2
1991—Mar932−1.9952−1.21,079−1.0992−1.3
            Jun922−1.6945−0.71,075−0.6986−0.9
            Sep919−0.8943−0.21,072−0.2984−0.2
            Dec9300.19560.71,0850.79960.6
1992—Mar9370.59641.31,0941.41,0041.2
            JunP9230.19500.51,0790.49900.4
Average gross income indexes 
1990—Sep2,5466.12,5776.22,6326.32,5946.2
            Dec2,5885.22,6195.22,6735.22,6365.2
1991—Mar2,6173.72,6463.72,6943.62,6613.6
            Jun2,5901.62,6322.32,6872.42,6482.2
            Sep2,5921.82,6362.32,6902.22,6522.2
            Dec2,6261.52,6732.12,7231.92,6861.9
1992—Mar2,6621.72,7092.42,7582.42,7222.3
            JunP2,6522.42,7032.72,7522.42,7162.6
Average tax rates (percent)§ 
1990—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 
            Sep17.8 23.7 28.4 25.2 
            Dec18.0 23.8 28.5 25.2 
1992—Mar18.2 23.8 28.5 25.3 
            JunP18.8 24.6 29.1 26.0 

FEMALE BREADWINNERS

Number of wage and salary earners

Providing a service—cleaning windscreens at traffic lights, Wellington.

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
1990—Sep1,4111,4911,4451,427
            Dec1,4141,4951,4611,435
1991—Mar1,4261,5061,4701,446
            Jun1,4371,5171,4751,455
            Sep1,4391,5201,4751,456
            Dec1,4401,5211,4751,457
1992—Mar1,4451,5211,4771,461
            Jun1,4501,5261,4781,464
Percentage change from same quarter previous year 
1990—Sep4.45.64.64.5
            Dec4.35.44.64.4
1991—Mar3.24.64.43.7
            Jun2.43.13.83.0
            Sep2.01.92.12.0
            Dec1.81.71.01.5
1992—Mar1.31.00.51.0
            Jun0.90.60.20.6

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 new measure, the Labour Cost Index (LCI), incorporating a wage rates index will be released in September 1993. The Prevailing Weekly Wage Rates Index (PWWRI), as it is currently defined and with its present coverage, will be discontinued towards the end of 1993 after the release of the Labour Cost Index. The PWWRI and the new LCI will have a two quarter overlap. The wage and salary component of the Labour Cost Index will be published for the same sector, industry and occupation groups as the Prevailing Weekly Wage Rates Index.

The decision to develop a labour cost index was due to two factors. Firstly, the introduction of the Employment Contracts Act in 1991 has necessitated the redefinition of the Prevailing Weekly Wage Rates Index. This index, as described above, measures changes in wage rates of employees who were covered by awards and agreements registered with the Arbitration Commission. The Act abolished the system of awards and the Arbitration Commission. A revised Prevailing Weekly Wage Rates Index will be completed as the wage and salary component of the Labour Cost Index.

Secondly, the 1990 committee reviewing macroeconomic statistics recommended the development of a labour cost index which included other costs of employing labour in addition to wages and salaries.

Women tram employees near the entrance to Seatoun tunnel, Wellington, 1944.

The Labour Cost Index will cover a wider range of employees and occupations than the Prevailing Weekly Wage Rates Index. Managerial and professional employees in the private sector, part time employees and employees under 20 years of age who are currently excluded will be covered. In addition, the measure will incorporate overtime as well as ordinary-time pay rates.

The new index will also include other labour related costs such as employer ACC levies and contributions to employee superannuation and medical insurance schemes and possibly some other forms of fringe benefits and Fringe Benefits Tax.

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.

The Nominal Weekly Wage Rates Index will be discontinued after the release of the September 1991 quarter data. With the introduction of the Employment Contracts Act it is no longer appropriate to calculate this index.

12.5 Labour relations

Under the Employment Contracts Act 1991 the award system that previously existed under the Labour Relations Act 1987 has been replaced by a more flexible system involving the negotiation of employment contracts. Greater choices are available to both employees and employers in terms of who represents them, how the bargaining system is arranged, and the type of contracts available.

Employment Contracts Act 1991. This 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 workplace 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 workplaces, nor compulsory membership.

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. Wage fixing is now 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 five 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 workplace in order to assist the process of negotiation where the employer agrees and where normal operation of the workplace 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.

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.

  • 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.

  • Dealing with harsh and oppressive contracts.

MP for Pencarrow and first woman vice-president of the FOL, Sonja Davies.

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 40 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.

Office workers, Wellington.

Equal Employment Opportunities. The objective of achieving an equal employment opportunities (EEO) environment that addresses the needs of those who are vulnerable or disadvantaged in the labour market is supported by anti-discrimination legislation. The Equal Pay Act 1972 ensures that employers can not differentiate in pay pay rates between employees on the basis of their sex. Under the Human Rights Commission Act 1977 and the Race Relations Act 1971, an employer cannot discriminate in hiring or firing, training or promotion because of their employees' race, colour, sex, marital status, religious belief, age, or national or ethnic origin. Employees may make a complaint under the Human Rights Commission or Race Relations Acts, or alternatively may use the personal grievance procedures under the Employment Contracts Act to enforce their rights in cases of discrimination or sexual harassment.

In addition to the anti-discrimination legislation, the Government considers that EEO will be most effectively achieved by voluntary promotion of progressive EEO management practices. To facilitate this a two pronged approach has been adopted.

Firstly, a joint private/public sector funded Equal Employment Opportunities Trust has been established for the development, promotion and research into EEO policies and practices in the private sector. The main aim of the trust is to promote EEO as good management practice. Secondly, the Government has established an Equal Employment Opportunities Fund for the promotion of EEO programmes and practices in private sector workplaces. Projects funded by the EEO Fund which develop EEO resources will be available for wider distribution to employers and interest groups via the EEO Trust.

Work stoppages

The Employment Contracts Act 1991 places restrictions on the ability of employers to lock out and on the ability of 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.

  • 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.

  • Occurs in an essential industry (as defined in the schedules to the Act) and the statutory notice requirements have not been complied with.

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 complete withdrawal of labour 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 and salaries. 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.

WORK STOPPAGES

Total number of stoppages

Table 12.17. INDUSTRIAL DISTRIBUTION OF WORK STOPPAGES, 1991

IndustryTotal stoppagesWorkers involvedWorking days lost*Average days lost per person involvedEstimated loss in wages and salaries

* Any stoppage that 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.

 $
Forestry, logging, fishing11404 76034.00881,280
Mining, quarrying1852 21026.00364,650
Meat export works312 63113 3541.061,614,274
Other slaughtering, preserving of meat31 5247 1764 71720,723
Dairy products, food canning oils and fats56001 4002.33129,669
Grain, bakery products, sugar, confectionery, etc.16154640.7536,589
Textiles, wearing apparel42782 7589.92316,458
Wood, wood products58457250.8662,183
Paper, paper products, printing and publishing27211 8192.52163,590
Chemicals, petroleum and coal products36231 1641.87154,118
Rubber, plastic products11329247.00130,680
Non-metallic mineral products4901 64218.24181,491
Basic metal products12282281.0046,000
Metal products22788963.22102,466
Transport equipment34171300.3112,745
Electricity, gas and water155410.743,910
Building33741 1403.05111,669
Construction other than buildings1420.38131
Ancillary construction services139632.0010,000
Wholesale trade21421841.2914,613
Retail trade126210.791,230
Restaurants, hotels2441012.306,757
Land transport121 5911 3760.86129,863
Water transport31 7635 1582.93449,794
Airtransport14801 0392.16126,020
Communication272420.583,787
Finance, insurance, real estate53724511.2142,037
Community, social and personal services2227 83952 1791.875,761,466
            Total, all industries7251 972101 4751.9511,578,193

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.

Special articles

Prue Hyman; Ministry of Youth Affairs; NACEW; New Zealand Employment Service; Workbridge.

Further information

Employment and incomes

Census of Population and Dwellings 1986; Reports C4 and C5, Labour Force. Department of Statistics.

Census of Population and Dwellings 1986; Report C9, Incomes and Social Welfare Payments. Department of Statistics.

New Zealand Employment Information System (Employment Operation Statistics). 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

Contract—The Report on Current Industrial Relations In New Zealand. Department of Labour, 1992.

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

Feeding artificial bad breath culture units, dental laboratories, Wellington.

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, this policy recognises the link between the amount and quality to research and development conducted, and economic vitality.

Thirdly, the policy aims to improve the quality of advice for Government on science and technology by establishing contestable streams of advice by the Foundation for Research, Science and Technology and the Ministry of Research, Science and Technology (MORST). This process of policy advice has also been enhanced by the creation of Education, Science and Technology (EST) cabinet committee. This committee 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.

Foundation for Research, Science and Technology. The foundation's major roles are to invest public funds in research and development, provide independent policy advice on science and technology to government and encourage technological innovation.

The foundation administers a contestable pool of funds for science research. The Public Good Science Research Fund (PGSF) receives bids from government departments, Crown funded agencies, research associations, private companies and individuals, non-profit private trusts, incorporated societies and state owned enterprises that conduct public good science research. It is expected that the universities will gain access to the PGSF soon. The research agencies and science organisations compete to win contracts to undertake agreed research programmes, which reflect national science priorities. Areas of high priority research or national science strategies selected by the government included atmosphere and climate research, and the control of possums and the threat of bovine TB.

One hundred percent of the Public Good Fund vote for 1992–93 is administered by the foundation, subject to some adjustments for non-specific output funding. The foundation is also 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.

MAF scientist loading an agarose gel for DNA analysis at the Invermay molecular biology laboratory.

Woman scientist, AgResearch, Wallaceville.

Government science agencies

On 1 July 1992 the final organisational changes of government funded science were put in place with the formation of 10 Crown owned research institutes. These institutes replace the former departmental or ministry science agencies (DSIR, MAFTech, NZ Meteorological Service, Forest Research Institute and Communicable Diseases Centre of the Department of Health).

The organisation of government science in New Zealand now comprises a Ministry of Research, Science and Technology which provides policy advice to government in such areas as the priorities for science, and the level of science activity required by New Zealand; and also provide an audit on the quality of science emanating from government research laboratories. The Foundation for Research, Science and Technology (FRST) acts as a purchaser of science on behalf of government. Thus the new CRIs, together with other New Zealand research agencies, bid to the foundation for funding of scientific research in the public good. In the 1992/93 financial year FRST allocated some $263 million to successful science bidders.

Crown Research Institutes. Government owned science is now structured as 10 autonomous research institutes registered as companies in New Zealand law. Each institute has its own Board of Directors, appointed by the government, and manages its own assets. Ownership of the Institutes remains with the government represented by two shareholding ministers, the Minister for Crown Research Institutes and the Minister of Finance.

The Crown Institutes are as follows:

AgResearch (National Institute for Pastoral Research Limited)—AgResearch is an internationally pre-eminent provider of innovative solutions and opportunities to the food, fibre and biotechnology related industries which are based on the pastoral industry of New Zealand. The institute is committed to a strategy of actively supporting New Zealand agriculture away from a commodity base to one of diversified, high value products, by increasing the year-round supply of differentiated foods from pasture fed animals; and developing specialised plant and animal products, and new, high-value products based on biotechnology.

The institute has over 1000 staff distributed between five national research centres and 12 regional research stations, derived from MAFTechnology and DSIR (Grasslands and part of Plant Protection divisions).

The organisational structure of AgResearch is based on its five internationally renowned research centres. Each centre is headed by a general manager with a specific national research and technology development responsibility: AgResearch Ruakura—dairy, beef production, biotechnology and animal physiology research; AgResearch Grasslands—forage research; AgResearch Wallaceville—animal health and disease research; AgResearch Lincoln—environmental agriculture and plant protection research; AgResearch Invermay—sheep, deer and other animal research.

Institute of Environmental Health and Forensic Sciences Limited—the institute of Environmental Health and Forensic Sciences provides research, analytical and consulting services in environmental health and forensic sciences to public health, law enforcement, regulatory, commercial and research organisations. The motto of this institute is ‘Protecting people and their environment through science’.

The institute has a staff of 300 scientists and support staff and has been formed by bringing together the Health, Forensic and part of the Environmental Sciences group of DSIR Chemistry and the former Communicable Diseases Centre and Public Health Laboratories of the Department of Health.

The main areas of research are in food and drugs, pharmacology, communicable diseases and environmental health.

Astrophysicist, Beatrice Tinsley.

Landcare Research New Zealand Limited—Manaaki Whenua—Manaaki Whenua Landcare Research New Zealand is New Zealand's first multi-disciplinary organisation providing a scientific basis for the sustainable management of land resources. Landcare Research aims to be a world leader in natural resource research and consultancy, covering both production and conservation. They will serve national, regional and local government, industry, all land users, and overseas clients through research, consultancy, technical services and technology development.

Landcare Research has a staff of 350, at 20 locations around the country. Landcare brings together staff and expertise in terrestrial environments from previous DSIR Land Resources, parts of DSIR Plant Protection, Physical Sciences and Fruit and Trees, along with the former Forest Research Institute's Forest and Wildland Ecosystems Division and the MAFTechnology's Rabbit and Land Management programmes. There are four major science research groups comprising: Native Plants and Animals; Weeds and Pests; Soil and Plant Processes; and Land Management.

NZ Institute of Crop and Food Research Limited—the focus of the institute is in research for the production and processing of arable crops, vegetables, seed crops, flowers, ornamentals, essential oils, medicinal crops and seafood. The research is strongly market oriented in its approach, with the result that many of the 300 staff are working alongside local and overseas processing and manufacturing companies in joint ventures. However, farmer and grower groups are also important clients of the institute, as are other research organisations.

Crop and Food's motto is ‘leading through scientific discovery’ and in the endeavour to do so, the institute has brought together the expertise of three organisations; DSIR Crop Research, MAFTechnology and DSIR Plant Protection. The result is a multi-disciplinary group carrying out research activities as diverse as plant breeding and soil science, aquaculture and post-harvest physiology, molecular biology and agronomy, entomology and fishing methods.

New Zealand Forest Research Institute Limited—the New Zealand Forest Research Institute carries out research and development so as to enhance New Zealand's advantage in plantation forestry and assist the profitable production of high quality, high value wood products while protecting environmental values. NZFRI has a clear focus on forest and wood products research, and the institute is recognised internationally as a centre of excellence.

The institute has a staff of about 400 all of whom have transferred from the former Ministry of Forestry's Forest Research Institute. The main laboratories and the headquarters are based at Rotorua, with a South Island operation based at Rangiora.

Areas of science activity are: forest technology, biotechnology, wood processing, wood products, pulp and paper research organisation (PAPRO), and logging industry research organisation (LIRO). These divisions align closely with identifiable sectors of the industry through links provided by the Forest Products Research Organisation which seeks to promote forest research through a co-operative relationship between researchers and industry. Each division will capitalise on critical areas of growth—tree quality and breeding, harvesting, wood processing and utilisation and the development of new products.

Victoria University and DSIR staff investigate the geological history of Wellington's Miramar Valley using a drilling rig to obtain soil samples.

Institute of Geological and Nuclear Sciences Limited—The Institute of Geological and Nuclear Sciences undertakes public good research and provides a number of services on a commercial basis. Current activities include resource evaluation within the hydrocarbon industry, geophysical surveys, regional mapping, scientific drilling, engineering geology, natural hazard assessment and mitigation, geothermal processes, groundwater and environmental chemistry, the application of the nuclear sciences to industrial and environmental studies, and resource management.

The institute has inherited over 120 years of scientific research experience. Its research is focused on the earth sciences and the application of nuclear science to scientific, environmental, industrial and health issues. The institute has established five science groups, or Centres of Excellence in Regional Geology, Hydrocarbon Resources, Earthquake and Hazards, Volcanology and Geothermal Resources, and Nuclear Sciences.

The institute has 270 staff and builds on the excellence of science from DSIR Geology and Geophysics, New Zealand Geological Survey and the Institute of Nuclear Sciences. The Library collections within the institute are of national importance.

Horticulture and Food Research Institute of New Zealand Limited—HortResearch is New Zealand's nationally focused horticultural research organisation. The institute is very much a ‘one stop shop’ for the industry. Its research spans molecular biology, plant breeding and crop production, through to food processing transport and the evaluation of consumer preferences.

The institute has over 500 science and support staff, located at 16 regional research centres and orchards throughout New Zealand. It combines the horticultural research expertise of the previous DSIR Fruit and Trees and appropriate parts of DSIR Plant Protection and MAFTechnology.

HortResearch has three research divisions: Plant Improvement; Crop Production and Protection; and Post Harvest and Food Science. They work on a large range of horticultural crops of economic importance to New Zealand including fresh fruit, flowers, ornamentals and processed foods.

Industrial Research Limited—Industrial Research Limited has a mission to conduct viable world class research that leads to internationally competitive added-value opportunities.

The institute has approximately 400 staff derived from the former DSIR Industrial Development and parts of DSIR Chemistry and DSIR Physical Sciences.

The activities of the institute are focused into six broad science areas of: Production, Automation and Control; Packaging, Storage and Transport; Measurement, Applied Mathematics and Analysis; Communication Electronics, Sensing and Information Technology; Natural Products Processing; Materials Science and Performance.

National Institute of Water and Atmospheric Research Limited—Te Tari Taihoro Nukurangi—The National Institute of Water and Atmospheric Research Limited (NIWAR) has been formed to conduct research and provide related services required to understand natural processes and human influences in the atmospheric, marine and freshwater systems, in order to provide a scientific basis for effective environmental and resource management. Their principal focus is on New Zealand and its territorial waters. However, the nature of their work necessitates a substantial and growing interest in the atmosphere and oceans at a global scale.

NIWAR has a staff of more than 300 comprised of the former DSIR Marine and Freshwater, MAFTechnology Aquatic Plants and Freshwater Fisheries, and parts of the DSIR Physical Sciences and DSIR Chemistry with the Research Division of the New Zealand Meteorological Service.

The institute has a wide discipline base and is committed to cross-disciplinary work for many of their research projects. NIWAR has five research divisions: Ecosystems Division; New Zealand Oceanographic Institute; Atmospheric Division; Freshwater Division; and Environmental Data Division.

New Zealand Institute for Social Research and Development Limited—Te Kura Kōkiri, Rangahau-ā-Iwi o Aotearoa—The New Zealand Insitute for Social Research and Development (Social R&D) is a centre for research to monitor, analyse and assess changes and their policy implications in New Zealand society and economy. Social R&D is multi-disciplinary and draws on specialists from many fields of social sciences in undertaking social research in the public good, or on a contract and consultancy basis from government, private sector, community organisations and international agencies.

Currently Social R&D is the smallest of the Crown Research Institutes with a staff of 12. The staff derive from the former DSIR Social Science Unit and this is being supplemented at the present time.

Social R&D's core research priorities are employment and working life; technological change and innovation; societal change; and social policy. Their work includes: policy analysis; social assessment; social and socio-economic surveys; design of research methodology; data analysis and interpretation; compilation of databases; action and participatory research; strategic planning; rapid rural appraisal; project management; case studies; and social monitoring

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.

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.

Nutritionist, Muriel Bell.

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.

Otago University researchers investigating which drugs are safe for use during pregnancy.

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, contracts and consultancy.

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 1991–92 was 13 318 a decrease of 247 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.
1,9884 2897 285686
1,9894 45512 562630
1,9904 5828 327656
1,9914 4888 168637
1,9924 5348 178606

The 4534 applications in 1992 originated in the following countries: New Zealand 1033; United States 1570; United Kingdom 419; Australia 298; West Germany 202; France 174; Switzerland 185; Japan 145; Netherlands 86; Sweden 82; Italy 56; Canada 76; Denmark 41; Belgium 30; Finland 23; Taiwan 19; Israel 14; South Africa 10; and the balance of 71 from 23 other countries.

The technical content fell into the following categories: chemistry 2267; mechanical engineering 1001; electrical engineering 452; home science 411; building technology 195; and primary industries 208.

The range of subjects for which patent applications were filed is similar to last year. Genetic engineering, techniques for producing vaccines, and human and veterinary antiviral medicines have all led to increasing numbers of applications. Applications for topical delivery of medicaments and for inhaling devices have increased. Agricultural applications have been for machinery, pesticidal methods and formulations, and fruit grading and packaging. Increasing numbers of applications for security systems and devices for buildings have been received. Interest in cellular telephone technology, optical integrated circuits and optical communication systems has been maintained and applications in NMR imaging circuitry, and biomedical electrode technology have increased. Other applications included foodstuffs, detergents, cosmetics, recreational devices and vehicular apparatus.

During the year 3256 applications proceeded to acceptance after search and examination Letters Patent were sealed on 3210 applications.

Twenty six grants of patents were opposed and seven applications for extension of term were filed. Fourteen opposition proceedings were finalised and eleven extension of term applications were resolved.

Scientist, Elsa Kidson.

Trade marks. The applications for registration originated in the following countries in 1992: New Zealand 3067; USA 1793; Australia 929; UK 495; Germany 299; Japan 285; Netherlands 166; Switzerland 137; Others 1057.

During the year, 7890 applications were examined, 4718 applications were accepted, 4275 went to registration, and 4162 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 2 percent for the year.

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 Management System Certification Authority and the New Zealand Industrial Design Council. These amendments give Telarc the responsibility to assess and certify organisations' quality management systems and added the New Zealand Designmark programme to its list of accreditations.

Telarc works through consultancy, advisory, accreditation and certification 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 certified or 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.

Microwave and dishwasher safe, unbreakable glassware by Strahl New Zealand, the winning entry in the 1992 Plastics Institute of New Zealand Awards.

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 nationally agreed standards. 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 of the International Organisation for Standardisation and the International Electrotechnical Commission.

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, and 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 $1.6 million in the 1991–92 year. Subscribing membership of the association totalled 1750 at 31 March 1992, while 45 companies and government agencies had voluntarily increased their subscription to levels qualifying for recognition as sustaining members.

Contributors

  • 13.1 Royal Society of New Zealand; Ministry of Research, Science and Technology; Federation of Scientific and Technological Societies; Foundation for Research Science and Technology; Crown Research Institutes; New Zealand Institute of Economic Research.

  • 13.2 Ministry of Commerce; Telarc New Zealand; Standards Association of New Zealand.

Special articles

Jean Fleming and Sally Davenport, Association for Women in the Sciences; Royal Society of New Zealand; Christine Cole Catley (Beatrice Tinsley), The Book of New Zealand Women, eds Macdonald, Penfold and Williams, Bridget Williams Books Limited, 1991.

Further information

Patent Office Journal. New Zealand Patent Office (monthly).

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).

Electrically charged plasma ball exhibited at Wellington's Capital Discovery Place.

Chapter 14. Land and environment

Trampers, Abel Tasman 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.

A DOSLI surveyor, a member of the New Zealand/Swedish team sent by the UN to survey the Kuwait/Iraq desert border after the Gulf War.

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. The metric 1:50 000 topographic map series which is now reaching completion, provides a reliable and authoritative inventory of the physical resources over all of New Zealand. This series is in constant demand for planning, construction, development, environmental assessment, local government and defence purposes. Some sheets are being converted into digital form. In addition, the Department of Survey and Land Information maintains a 1:250 000 digital topographic database of New Zealand, a regularly updated series of street maps over all urban areas, and publishes a wide range of maps for recreation purposes. Its map holdings include maps for all national parks, plus miscellaneous and general maps of New Zealand, the Pacific, Antarctica and the world. The department produces maps (in both hard copy and digital form) to service specific needs of other national agencies. These include the charts needed for military and civil aviation use and those required for meteorological use. The department uses photogrammetric methods to produce a range of other digital map products to support energy investigations, hydraulic modelling for flood control purposes, forest management activities and the needs of the New Zealand land information industry.

A digital mapping of terrain of Wellington coast.

Registration of land ownership

Land and Deeds Division. 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. Maori land, when vested in any person for a freehold estate, comes automatically under the land transfer system. 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 has had 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 searchesDocument searches
Source: Department of Justice.
1,988921 64250 83816 41566 5901 051 535283 141
1,9891 029 68847 25816 88982 1921 176 421306 599
1,9901 007 62053 98718 00090 6031 109 663283 376
1,991869 86453 56218 21487 552919 900255 932
1,992819 01550 33416 06593 125966 078263 045

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 is 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

Halt 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 19881 532306.6882−3.6
Jun 19891 996455.2932+5.8
Dec 19892 249531.81,000+7.2
Jun 19902 347652.51,163+16.3
Dec 19901 939483.91,188+2.1
Jun 19911 735422.51,169−1.6
Dec 19911 750390.71,181+1.0
Jun 19922 392735.41,300+10.1

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.

Land rights leader Eva Richard, best known for her work to reclaim the Raglan golf course fir the Tainui Awhiro people.

A significant achievement for the Maori Land Court during 1991–92 was the establishment of an agreed Information System Strategy. The strategy recommends implementation by way of three seperate programmes. These are:

  • Update the compiled list of owners. This programme will provide for the creation of a computer database of ownerships of Maori land for each title.

  • Automation of the application process. This programme will automate many of the manual steps involved in receipting and processing applications of the Court such as the typing of minutes and orders and the updating of existing records.

  • Protection of the physical record. This programme will see the conversion of the records of the Court to image, either traditional, microfiche or electronic, allowing for the transfer of these valuable documents to the National Archive.

Maori land development. The development and use of Maori land for the benefit of Maori owners is a function inherited by Te Puni Kokiri (the Ministry of Maori Development) through the disestablishment of the Iwi Transition Agency. The role of Te Puni Kokiri in Maori land development is the facilitation of the return of all development schemes under the ministry's control to the owners of the land themselves.

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, 1992*

Maori Land Court districtsSurveyed blocksTotal blocks administered

As at 30 June 1992.

Source: Department of Justice.

Whangarei2 4134 868
Hamilton1 0513 423
Rotorua3 0084 637
Gisborne21 1104 999
Hastings1 1181 265
Wanganui3 2693 754
Christchurch1 5441 638
            Total14 51324 584

MAORI LAND COURTS

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 1992 there were an estimated 2631 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 1992 there were an estimated 1400 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 1992 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 Art 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 1.6 million stock units on 138 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 550 leases, licences, and other financial instruments taken over from the Crown.

Landcorp Management Services is a fee 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 and 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 17 property district offices and four farming regional offices.

Whaea O Te Motu—mother of the nation, Dante Whina Cooper.

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 1728 valuers registered as at 31 August 1992, 1015 held annual practising certificates. The remaining 713 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.

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

Vegetation, wildlife and other aspects of the New Zealand environment are described in chapter 1, Geography.

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 Hawke's 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.

Dagg Sound, Fiordland.

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 formulation 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, as well as the economic, social and 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, 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.

Northshore recycling programme, Auckland.

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 (h) 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.

Use of land. The Resource Management Act 1991 requires councils to address the effects of activities rather than the activity itself. The presumption is that people can use their land in the way they wish provided there are no adverse environmental effects. These constraints must be clearly identified in policy and plans. The Resource Management Act also seeks to address past errors in the destruction of areas of natural beauty, the loss of historic areas of cities and the destruction of neighbourhood communities. 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.

Similary, 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 rendered incapable of reasonable use can challenge the provision during plan review or on an application for a plan change.

More than 4000 crushed car bodies being loaded onto a barge at Dunedin for shipping to Auckland.

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 subsidies are provided to assist a limited range of regional council resource management activities. This assistance is targeted in terms of regional ability to pay, and focuses on new and devolved functions under the Resource Management Act; the development of environmental quality standards; and the assessment of options for risk management associated with contaminated sites, natural hazards and waste management.

In the 1991–92 financial year the Government allocated $5 million for these subsidies. A further $21.97 million was provided to meet commitments under previous policies to assist in the construction of flood control and soil conservation schemes.

Water resources. It has been estimated that New Zealand's consumption of water approaches 2000 million cubic metres per year. Households use 210 million cubic metres, industry 260 million cubic metres, livestock 350 million cubic metres, and irrigation 1100 million cubic metres per year. Approximately 87 percent of the population is supplied by public water-supply systems. The rest rely on an independent domestic supply (rainwater collecting, aquifer bores, etc.). Industry obtains about 33 percent of its requirements from public supply systems and 66 percent from its own sources. These figures do not include the use of water for hydro-electric generation, which exceeds 100 000 million cubic metres per year. Obviously, water flowing through hydro-station turbines can be used again, and on the Waikato River and its tributaries 10 state hydro stations, and a number owned by local authorities, use and reuse a flow which at Karapiro (the last station) is over 7000 million cubic metres per year. Thus the total irrigation, agricultural, industrial, and domestic water consumption could be supplied three times over by the Waikato River alone, at Karapiro.

In terms of total water resources, the country has an estimated 300 000 million cubic metres per year, although these are by no means evenly distributed. High mountains, especially in the South Island, create substantial rain-shadow areas. In a few areas, annual rainfalls of over 10 000 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 Hawke's 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 234 000 hectares are now irrigated, by community- and government-supported schemes. Of this area, 218 000 hectares are irrigated for pastoral purposes, mostly in the South Island, and 16 000 hectares are irrigated for horticulture, almost entirely in the North Island. Since 1960 central government has supported 26 new irrigation schemes designed to irrigate approximately 73 000 hectares. Of these, 13 schemes were developed for pastoral and/or crop production, two for combined pastoral and horticultural development and nine are solely for horticultural development. Eight of the schemes are located in the North Island and all are for horticultural development. The 16 schemes which are located in the South Island are predominantly for pastoral and crop production, but there has been a changing emphasis to horticulture, and more recent schemes undertaken in the South Island have been for horticulture, or combined horticulture and pastoral use.

There are 20 older schemes in Canterbury and Central Otago, which have been operative for many years.

Private irrigation undertaken by individuals or groups of farmers has been practised over much of the country, often with the assistance of concessionaire interest rates. Water for these schemes is generally drawn from underground sources, or pumped from rivers and drains, and applied by spray or trickle methods. Private flood-irrigation is limited to small gravity-supply schemes, which are comparatively few in number.

River control. The Soil Conservation and Rivers Control Act 1941 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. Increasingly, flood plain management planning is being adopted to identify and mitigate risks associated with flooding.

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, Utter, 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.

Sorting paper and plastic at the Wellington City Recyling Centre.

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.

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.

Kids clean up Cobden beach, West Coast.

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 Art 1972, but this function is now included in the Resource Management Art 1991. Local authorities also control noise in their areas through the Resource Management Art. Within the territorial sea and harbours, the Marine Pollution Art 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 climate change as a result of the enhanced greenhouse effect and ozone depletion. They are known as global environmental issues. No one country is responsible of them, but all countries ultimately suffer the consequences. New Zealand's comparative isolation does not make it any less vulnerable.

Greater awareness of the importance of global action on environmental matters had led to increasing international activity in recent years. The international debate involves striking the right balance between the twin imperatives of environmental protection and economic activity, in order to provide for future generations and to protect the Earth's resources and biodiversity. The goal is to achieve sustainable development.

Since 1990 the focal point for international consideration of these issues has been preparations for the United Nations Conference on Environment and Development (UNCED, held in Rio de Janeiro, Brazil in June 1992. At a series of preparatory meetings and in negotiations on conventions on biodiversity and climate change, the full range of environmental and economic development issues were addressed.

UNCED brought together governments, business, non-government organisations, indigenous people, women and youth in unprecedented numbers. The Earth Summit, a two-day meeting of political leaders during UNCED, brought together the largest number of heads of government or state and senior politicians ever assembled.

UNCED produced the Rio Declaration, a list of principles for governments, individuals and the world community to follow; Agenda 21, a forward looking action plan setting benchmarks for behaviour and identifying directions in which the world community should move; and a statement of Forest Principles for the protection and sustainable management of all of the world's forests. The Framework Convention on Climate Change and the Convention on Biological Diversity were opened for signature by governments, with over 150 countries doing so at Rio de Janeiro.

New Zealand played its full part in the UNCED process. The development of the New Zealand approach involved consultation with a wide range of interests, including government departments, environment and development groups, business interests and Maori. New Zealand's delegation, led by the Minister for the Environment, also reflected this diversity of interest in UNCED issues.

As the UNCED process demonstrates, New Zealand has wide-ranging interests in international environment work which it vigorously pursues. Priority issues have included climate change, ozone depletion, Antarctica, forestry, waste issues, driftnet fishing, the protection of marine mammals, sustainable resource use and South Pacific environment matters.

Environmental policy development, which is led by the Ministry for the Environment and the Ministry of External Relations and Trade, involves a wide range of government agencies and, as highlighted by the UNCED process, appropriate wider consultation. The Environment Division of the Ministry of External Relations and Trade, set up in 1990, advises government on international aspects of global environment issues, including representation of New Zealand interests and concerns in negotiations. The Ministry for the Environment established in 1986 provides advice on the scientific and domestic aspects of global environmental issues, as well as on purely domestic matters.

In addition to preparations for the UNCED, New Zealand priorities in 1991–92 have included participation in the negotiations which led to the adoption of the Framework Convention on Climate Change in May 1992 and in the conclusion of the Convention on Biological Diversity later that same month. New Zealand signed both conventions at UNCED and is considering the work that would be required in order to ratify each treaty.

New Zealand also played a leading role in the negotiation of the UNCED statement of Forest Principles and in work related to the management of high seas fisheries resources. It continues to represent forcefully its conservationist concerns at the annual meetings of the International Whaling Commission (held in Glasgow in 1992). It has continued to be prominent in efforts to strengthen the Montreal Protocol on Substances that Deplete the Ozone Layer.

The Convention for the Prohibition of Fishing with Long Driftnets in the South Pacific has attracted further support. By September 1992 seven countries had ratified the convention. Fifteen countries have signed the convention while the United States, Canada and Chile have each signed a Protocol to the Convention.

New Zealand recognises the special vulnerability of Pacific island countries to global environment problems. Through its efforts in the South Pacific Forum and the South Pacific Regional Environment Programme (SPREP), as well as consultations related to the UNCED and international environmental negotiations, New Zealand has sought to support Pacific island countries and to ensure their concerns are heard.

Domestic implications. The Ministry for the Environment, in addition to its Resource Management Act work, deals with the domestic implications of global environmental issues through two directorates: Environment and Development Issues (EDI), and Atmosphere and Energy (AED).

The AED (the Atmosphere and Energy Directorate) is responsible for policy development relating to the Ozone Layer Protection Act 1990, which timetables the phase-out for ozone depleting substances. It also co-ordinates the inter-related work of energy and climate change, and has a prime role in the Government's moves to reduce carbon dioxide (CO2) emissions. Having signed the Framework Convention on Climate Change (FCCC) at UNCED, New Zealand, along with other signatory nations, has an obligation to try to reduce its greenhouse gases.

The Government's first steps towards curbing New Zealand's CO2 emissions were announced in July 1992. These are low or no cost measures which can be taken immediately without causing economic difficulties. In some cases they have identifiable economic benefits. The measures include forestry planting and increased energy efficiency.

The EDI (the Environment and Development Issues Directorate) will be responsible for following up the domestic work generated by UNCED, in particular the implementation of Agenda 21.

In conjunction with the Department of Statistics, EDI is also involved in a new project to devise a State of the Environment Reporting System. This will eventually provide a database of environmental information accessible to all New Zealanders. One dimension of the SER project will be the publication of New Zealand's First State of the Environment Report.

The EDI has a key role in the reform of the laws and administrative systems for the management of new organisms in New Zealand. This includes the development and release of genetically modified organisms (GMOs) into the environment. GMOs share common features with the importation of new species: each results in the release into the New Zealand environment of an organism which has not previously occurred here, and whose impacts cannot be fully predicted.

This is an important consideration for an island nation with a high degree of endemic biota, much of which is unique in the world and easily affected by undesirable new introductions.

The directorate administers the two advisory committees that provide the oversight for all genetic manipulation work in New Zealand. The Advisory Committee on Novel Genetic Techniques (ACNGT) is responsible for and advises on all contained laboratory and glasshouse genetic manipulation work. The Interim Assessment Group (IAG) assesses and advises the Minister for the Environment on all applications to field test or release genetically modified organisms.

Cabbage tree dying of Sudden Decline Disease, Greytown. This disease has been evident since 1987 and is killing thousands of cabbage trees in the north of the North Island. It was thought to have arrived in New Zealand in the early 1980s and to have been spread by the lacy-winged Australian vine-hoppers. Tests using new DNA techniques have revealed the presence of a bacterial organism, MLO (mycoplasma-like organism). Control of the disease is expected within three to five years.

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, and has a role in management of the coastal marine area.

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. (78 651 hectares, established 1887), was New Zealand's first national park. It includes the three active volcanoes, Ruapehu, Ngauruhoe and Tongariro.

Urewera National Park. (212 675 hectares, established 1954), together with neighbouring Whirinaki Forest Park, is the largest remaining area of native forest in the North Island. Lake Waikaremoana is noted for its scenic shoreline.

Egmont National Park. (33 543 hectares, established 1900), comprises all the land in a 9-kilometre radius of the Taranaki/Mount Egmont summit and some outlying areas to the north. The symmetrical cone of the dormant volcano is a provincial landmark.

Conservationist, Perrine Moncrieff.

PARKS OF NEW ZEALAND

Whanganui National Park. (74 231 hectares, established 1986), borders the Wanganui River. It incorporates areas of Crown land, former State Forest and a number of former reserves. The river itself is not part of the park.

Abel Tasman National Park. (22 541 hectares, established 1942), has numerous tidal inlets and beaches of golden sand along the shores of Tasman Bay. It is New Zealand's smallest national park.

Nelson Lakes National Park. (101 753 hectares, established 1956), is a rugged, mountainous area in Nelson Province. It extends southwards from the forested shores of Lakes Rotoiti and Rotoroa to the Lewis Pass National Reserve.

Paparoa National Park. (27 818 hectares, established 1987), is on the West Coast of the South Island between Westport and Greymouth. It includes the celebrated Pancake Rocks at Punakaiki.

Arthur's Pass National Park. (99 270 hectares, established 1929), is a rugged and mountainous area straddling the main divide of the Southern Alps. It includes at least 30 peaks more than 1800 m in height.

Westland National Park. (117 547 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.

Mount Cook Park. (70 013 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. (316 657 hectares, established 1964), is a complex of impressively glaciated mountain scenery centred on Mount Aspiring (3036 m), which is New Zealand's highest peak outside Mount Cook National Park.

Fiordland National Park. (1 251 924 hectares, established 1952), is the largest national park in New Zealand and one of the largest in the world. The grandeur of its scenery, with its deep fiords, its lakes of glacial origin, its mountains and waterfalls, has earned it international recognition as a World Heritage Area.

Forest parks

The Department of Conservation administers 20 forest parks formerly administered by the New Zealand Forest Service. Their primary purpose, in most cases, is to protect the catchments of forested mountain ranges throughout the country, but they also provide a less restricted range of recreational activities than national parks and reserves, including tramping, camping, fishing, and shooting for a variety of game.

The forest parks contain a varied landscape including coastal areas, lakes, mountains, tablelands and tussock grasslands within an approximate area of 1.8 million hectares.

Reserves

National reserves protect areas of outstanding natural beauty or scientific or ecological importance. They are second only to national parks in the degree of protection they offer.

Other protected areas include scenic, nature, scientific, historic and recreation reserves, wildlife reserves, protected private land and land protected under various conservation and open space covenants.

There are more than 1200 scenic reserves with a total area in excess of 300 000 hectares. They include areas of scenic interest such as native forests, limestone and glow-worm caves, thermal areas, coastal areas, lakes, rivers, waterfalls and scenic vantage points.

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 74 885 hectares in area. They are the major breeding places for several species of birds and animals, including the yellow-eyed penguin, the royal albatross and the Hooker's sealion. The threat of rats or other predatory animals accidentally being introduced to the islands has led the Department of Conservation to allow access by permit only. Previous experience has shown that one pregnant rat arriving on a previously rat-free island could lead to the extinction of a vulnerable species.

Proposed site of marine reserve, Nugget Point, South Otago.

Scientific reserves are generally smaller areas reserved to protect examples of rare or endangered plants or animals or unique geographic features 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.

Marine reserves and parks

At present there are three marine reserves, the Cape Rodney–Okakari Point Marine Reserve, of 2959 hectares, Kapiti Marine Reserve of 2167 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.

Forest funds

The Forest Heritage Fund and Nga Whenua Rahui were established as part of the Indigenous Forest Policy. Both these funds are aimed at the permanent protection of conservation value forest on private and Maori land. With the Forest Heritage Fund this is achieved through gifting, covenanting and outright purchase. The Nga Whenua Rahui Fund uses a range of mechanisms with covenanting being the most suitable. Iwi perceive the use of covenants acceptable in lessening the sense of alienation from the land. Nga Whenua Rahui in particular aims to facilitate the voluntary protection of forests on Maori owned land, while honouring the rights guaranted to Maori landowners under the Treaty of Waitangi, and affirming the status and tino rangatiratanga of the tangata whenua.

Both funds are contestable. Anyone can apply to the Forest Heritage Fund. Nga Whenua Rahui is restricted to Maori landowning interests. Applications to each of these funds are considered by the two advisory committees who make recommendations to the Minister of Conservation.

Statutory and associated committees

New Zealand Conservation Authority. The New Zealand Conservation Authority established in 1990, has wide-ranging conservation responsibilities for policy concerning national parks, walkways and wildlife; for the approval of conservation management strategies and conservation management plans; and for other nature conservation matters of national and international importance.

The authority is currently involved in investigations into the creation of new National Parks in north-west South Island and Northland, energy and conservation, marine conservation, wild animals, Conservation Week, tourism, and New Zealand's responsibilities under the Biodiversity Convention signed at UNCED.

Conservation Boards. Seventeen conservation boards carry out the above functions at a regional level. 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.

Stranded pilot whales at Sandy Point, near Ahipara, Northland.

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.

Special articles

Ministry for the Environment; Janet McCallum (Perrine Moncrieff), The Book of New Zealand Women, eds Macdonald, Penfold and Williams, Bridget Williams Books Limited, 1991.

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).

Rural Property Sales Statistics. Valuation New Zealand (six-monthly).

Urban Property Sales Statistics. 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

Canterbury farmer feeding out hay to his sheep in freezing conditions.

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

Despite intensive efforts through much of 1991 and 1992, a successful conclusion to the Uruguay Round of Multilateral Trade Negotiations remains elusive. The negotiations have been deadlocked largely because of lack of agreement on the crucial issue of agricultural trade liberalisation. In the absence of such an agreement, New Zealand's agricultural trade remains exposed to subsidised export competition from surplus producing countries.

Favourable weather conditions resulted in record milk production in the 1991/92 season. Regular rainfall throughout the late summer in the main dairy farming areas ensured a plentiful supply of pasture. The average dairy company payout for the season ending May 1992 was 38 percent higher than those in the previous season. This resulted from improved prices for dairy products on world markets.

The decline in New Zealand sheep numbers is continuing. Sheep numbers at June 1992 stood at 55.2 million head, a decline of just under 5 percent compared to 47.9 million head recorded at June 1991. Lamb production for the year ending June 1992 at 420 000 tonnes was up substantially due to the continuing destocking of the sheep sector. Relatively poor returns from wool, skins and sheepmeat are the factors contributing to the decline in sheep numbers.

FARMLAND

By land use

The New Zealand beef cattle herd is continuing to expand, largely the result of relatively poor returns in the sheep sector encouraging a shift away from sheep to beef and dairy farming. Beef production in the year ended June 1992 at 537 000 tonnes was up by just over 3 percent. The expansion in production is largely the result of higher numbers of dairy calves having been retained for beef production over the past three years. Farmgate prices for manufacturing grade cow beef for the year ending June, declined from 216c/kg in 1991 to 210c/kg in 1992.

FARMLAND

By type of farm

New Zealand apple production is expected to rise in 1992 as young trees mature. Apple prices during 1992 are, however, expected to remain similar to last year's level. The New Zealand kiwifruit export crop fell 17 percent in the year ended March 1992 to 60 million trays. A poorer growing season and reduced orchard inputs were the main reasons for the fall in the crop size. The smaller export crop, however, has resulted in an increase in prices received by growers of around 26 percent in the year ended March 1992.

Table 15.1. FARMLAND USE BY REGIONAL COUNCIL AREA AS AT 30 JUNE 1991

Territorial local authorityNumber of farmsGrassland, lucerne, tussock or danthoniaHorticulturePlantations of exotic timberTotal land*

RC = regional council.

* Includes farmland not classified above.

† Includes Chatham Island County.

 hectares (000)
Northland RC8 2966775136999
Auckland RC8 1993381333446
Waikato RC12 5571 19152461 718
Bay of Plenty RC6 85134516271803
Gisborne RC1 495534585703
Hawke's Bay RC3 4647871180998
Taranaki RC4 643446111568
Manawatu-Wanganui RC7 3221 3986621 629
Wellington RC2 455439132548
            North Island55 2826 155639558 411
Nelson-Marlborough RC3 802875111481 251
West Coast RC1 27719128444
Canterbury RC10 0212 61912683 090
Otago RC4 6822 7464862 990
Southland RC5 3751 1301441 266
            Sooth Island25 1577 561283749 040
            Total, New Zealand80 43913 715911 32917 450

Local government reorganisation introduced from 1 November 1989 a two tier system of district and regional authorities which replaced the previous counties and local government regions. Since then there has been a division within the 14 regional councils. From 1 July 1992, Gisborne has been joined by Marlborough, Nelson City and Tasman District as separate unitary councils.

Table 15.2. LAND USE BY FARM TYPE, AS AT 30 JUNE 1991

Farm typeNumber of farmsGrassland, lucerne, tussock or danthoniaLand in horticultureLand in plantation cropsTotal land*

* Including other land not classified above.

† Gross income of 75 percent or more is derived from stated activity.

‡ From 51 to 74 percent of gross income is derived from first named activity and between 20 and 49 percent from second activity.

§ More than 50 percent of gross income is derived from stated activity.

More than 50 percent of gross income is derived from livestock not elsewhere classified.

Includes flower growing, small-animal breeding, mushroom growing, tobacco and hop growing, beekeeping, research/educational farms, and farms not elsewhere classified.

 hectares (000)
Dairy farming16 7571 453391 582
Sheep farming12 1273 8551114 155
Beef farming8 802907131 053
Cropping90433193
Sheep farming with beef5 5813 6561174 045
Sheep farming with cropping8071411172
Sheep farming with other1 84370716789
Beef farming with sheep2 7871 17151 358
Beef farming with other1 7941275155
Cropping with sheep60672118
Cropping with other25617131
Pig farming§7592634
Deer farming§2 0061731231
Goat farming§4941115
Mixed livestock3 3789332311 127
Horticulture§8 36484753189
Plantations§1 927911 2231 745
Other farming11 24725943560
            Total, all farm types80 43913 715911 32917 450

Since 1991 the Annual Agriculture Census has become a biennial survey. Full farm data is collected every second year instead of every year. As a result, farm type information for 1991 is limited. Horticulture for 1991 includes citrus, pipfruit, stonefruit, and kiwifruit orchards; berryfruit, grapes and other fruit; vegetable growing, plant nurseries and the like.

Table 15.3. FARM EMPLOYMENT*

Farm typeWorking owners, leaseholders, and sharemilkersUnpaid members of family assisting on farmPaid permanent employeesCasual workers
Full time*Part time

* As at 22 February 1991. Full time = 30 hours or more per week. Part time = less than 30 hours per week.

Dairy fanning27 0297 3545 1819482 672
Sheep farming12 6595 3891 7696021 648
Beef farming7 9033 188563236684
Cropping85532618851143
Sheep farming with beef6 7732 6262 8025441 729
Sheep farming with cropping1 03444318860148
Sheep farming with other2 0951 102419111413
Beef farming with sheep3 0981 1081 180226609
Beef farming with other1 83684517866169
Cropping with sheep80428719940131
Cropping with other284132629100
Pig farming8643793816670
Deer farming2 0931 062236109212
Goat farming39520115828
Mixed livestock3 8941 9551 234289738
Horticulture10 5513 4805 3602 18013 432
Plantations8515051 791182334
Other fanning3 3711 4901 5646261 065
            Total, all farm types86 38931 87223 3106 35324 325

From 1991 the collection of farm employment information has been brought into line with the Department of Statistics' Business Directory collections. The main reporting date for 1991 is the end of February instead of 30 June as before.

Table 15.4. CAPITAL EXPENDITURE ON FARMS BY FARM TYPE*

Farm typeBuildingsLand developmentAll capital expenditureTotal capital expenditure

* Excluding idle farms, forestry, research and educational farms.

† Year ended 30 June 1991.

 $(000)
Sheep, beef, deer, and goats109,88555,113152,009317,008
Dairy fanning59,86920,61278,246158,727
Cropping3,9261,54716,67422,147
Horticulture34,7427,75849,84792,347
Other16,3613,06614,67734,104
            Total224,78388,097311,453624,333

Capital expenditure for 1991 is gross instead of net as in previous years. The shortened 1991 Agriculture Survey questionnaire did not collect disposals information.

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 200 200 tonnes from 1989 to 1990. Around 11 690 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, 817 127 tonnes of lime were applied.

The 1991 Agriculture Survey questionnaire did not collect fertiliser application information. This is included in the 1992 survey and thereafter will be available biennially.

Table 15.5. FERTILISER APPLICATION

Year ended 30 JunePhosphatic fertilisersOther fertilisersTotal
 tonnes (000)
1,9861 227.1710.11 937.2
1,9871 118.1606.31 724.4
1,9881 104.7618.81 723.5
1,9891 216.7711.01 927.8
1,9901 235.98,9112 128.0

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 fanning establishments is excluded.

Volunteer worker attaching load of hay to be dropped to a flock of sheep stuck on the hills, at Burkes Pass, Canterbury.

Table 15.6. AGRICULTURE PRODUCTION ACCOUNT: ANALYSIS OF INTERMEDIATE CONSUMPTION

ItemYear ended March
1987–881988–891989–90
 $(million)
Purchase of livestock575546685
Feed and grazing261313347
Animal health and breeding206225248
Weed and pest control120124146
Fertiliser, lime, and seeds434527602
Fuel and power334363376
Repairs and maintenance539625675
Freight140161162
Other (not elsewhere classified)1,2521,4001,489
 3,8634,2834,730
Less, capitalised development121219
            Total, intermediate consumption3,8514,2714,711

Tables 15.6 and 15.7 show the consumption and production of major categories of products for the agricultural sector over recent years.

Table 15.7. GROSS AGRICULTURAL PRODUCTION

CommodityYear ended March
1988–891989–901990–91
 $(million)
Wool1,5081,235832
Sheep610865935
Cattle1,2031,2401,447
Pigs101125126
Dairy products1,9022,1661,662
Poultry products192215208
Crops and seeds262338327
Fruit, nuts, and oilseeds549623694
Vegetables373412418
Other horticultural products145166160
Agricultural services556620601
Other products, n.e.c.243259253
Value of change in livestock—
      Sheep−32−48−76
      Cattle−93109132
      Pigs, deer, goats587052
Sales of five animals585721661
            Gross output8,1629,1178,432

Farm price indexes

The Farm Inputs Price Index measures the change in the price level of goods and services purchased by farmers. Several farm type and input type price indexes are published. The range of series are shown in the tables below. The five farm type indexes, together with agriculture contracting comprise the agriculture input index of the Producers Price Index (see section 23.2).

To ensure that the indexes are up-to-date and relevant to current farming practices, a comprehensive revision of the index weights and specifications of price surveyed items is being undertaken this year.

Table 15.8. FARM INPUTS PRICE INDEX*

Farm type all input typesGroup FPIH SeriesInput Price Index for half-year ended:
  1989 JunDec1990 JunDec1991 JunDec1992 Jun

* Base: Half year ended 31 December 1987 (= 1000).

Sheep and beef farmsS3Z1,0401,0921,1641,1971,1881,1681,183
Dairy farmsS4Z1,1171,1931,2411,2401,2131,1881,216
Cropping farmsS5Z1,0411,0751,0961,1211,1191,1061,119
Horticultural farmsS6Z1,0461,0811,1031,1171,1171,1111,122
Pig, poultry and other farmsS7Z1,0821,1341,1581,1781,1761,1571,166
All farmsS9Z1,0571,1121,1691,1911,1801,1611,177

Table 15.9. FARM INPUTS PRICE INDEX—ALL FARMS*

Input typeGroup FPIH SeriesInput Price Index for half-year ended:
  1989 JunDec1990 JunDec1991 JunDec1992 Jun

* Base: Half-year ended 31 December 1987 (= 1000).

AdministrationS9A1,1041,1341,1741,2011,2271,2461,252
Animal health and breedingS9B1,0471,0591,0751,1121,1211,1741,169
Dairy shed expensesS9C1,0291,0101,0371,0481,0901,1041,107
ElectricityS9F1,0631,0681,0701,0751,0861,0951,110
Feed, grazing, cultivation and harvestingS9G1,1421,2231,2131,2201,2081,1851,195
Fertiliser, lime and seedsS9H1,0571,1531,1391,1371,1401,1391,132
FreightS9I1,0231,0251,0271,0601,0671,0611,047
FuelS9J9709279271,021962936945
Insurance premiumsS9K1,0351,0131,0271,0491,0801,0941,144
Rent and hireS9L1,0151,0211,0241,0241,0251,0481,066
Repairs, maintenance and motor vehicle repairsS9M1,0921,1131,1371,1551,1791,1881,199
Packaging costsS9N1,0621,0921,1191,1311,1281,1381,169
ShearingS9O1,1171,1291,1571,1751,1891,1701,161
SharemilkingS9P1,2891,7881,7881,2271,2271,3311,331
Weed and pest controlS9Q1,0321,0701,1001,1131,1471,1671,193
Livestock purchasesS9R1,0571,2201,4291,5081,4611,4201,511
Local & central govt. rates and feesS9U1,0751,0951,1791,2031,2061,2101,221
InterestS9V9621,0051,1241,1341,058931925
Wages and salariesS9W1,0751,0881,1031,1181,1261,1301,136
All InputsS9Z1,0571,1121,1691,1911,1801,1611,177

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, administers and develops quality standards, manages agricultural security and provides other services to the agricultural and fishing industries. Its function is outlined in section 3.3, State sector.

On 30 June 1992, MAF underwent a significant set of changes. These were largely brought about by the restructuring of government science activities into Crown-owned Research Institutes (CRIs). As a result of these science reforms:

  • MAF Technology, MAF's former research arm, no longer exists. It has been transferred to five new CRIs: New Zealand Pastoral Agricultural Research Institute Ltd; Horticultural and Food Research Institute of New Zealand Ltd; New Zealand Institute for Crop and Food Research Ltd; Land Care Research New Zealand Ltd and National Institute of Water and Atmospheric Research.

  • The former Freshwater Fisheries branch of MAF Fisheries has also been been transferred to the National Institute of Water and Atmospheric Research.

  • The consultancy branch of MAF Technology, Management Consultancy Services, became a separate business arm of MAF, trading as Agriculture New Zealand.

There have also been changes within the remaining MAF, separate from the science reforms. A regulatory authority has been created, and the former Corporate Services and Corporate Affairs groups have been streamlined into a Wellington-based Corporate Office. MAF Quality Management has also made changes, bringing in a flatter management structure.

MAF therefore has five business groups: MAF Quality Management, MAF Policy, MAF Fisheries, MAF Regulatory Authority and MAF Corporate Office. MAF also has a new vision statement, MAF—Adding value to agriculture and fisheries, and a new mission statement: To contribute to government's agricultural and fisheries objectives for enterprise development, growth and profitability, sustainability, market access and agricultural security.

MAF Quality Management

MAF Quality Management is New Zealand's “front line” against exotic pests or diseases that could threaten the nation's livelihood as a primary producer. This group also plays an essential role in New Zealand's continued access to existing export markets—and to new markets—through the maintenance of quality standards.

The group's activities are divided into three key areas:

  • Agricultural Security: border protection, quarantine services, surveillance, responding to an exotic pest or disease emergency and animal welfare.

  • Meat Services: meat fish and game inspection.

  • Quality Services: food hygiene consultancy, seed certification, disease control, animal export management and certification.

MAF Policy

MAF Policy provides policy advice and decision support to the Ministers of Agriculture and Fisheries and the government as it develops policies, legislation or regulations affecting agriculture and fishing.

This support is focused in several areas:

  • Policy Services: providing an overview of external and domestic policy; servicing the Minister of Agriculture.

  • Rural Resources: providing management and disposal of community irrigation schemes; responses to major climatic and other adverse events; liaison with rural communities, local and regional government; and monitoring of the effects of government policies on services to rural communities and the performance of the agricultural industry.

  • Science Advice: operational research management, e.g., rabbit and land management programme, pesticides, Bovine TB and possums; science policy advice and analysis and science input into policy advice.

  • Trade Policy: international policies and structures for agriculture, horticulture, live stock, plants and fisheries, e.g., under GATT, OECD, FAO, etc.; government to government liaison, e.g., negotiation on technical standards to open the way for market access; market outlook, information and analysis; and international project facilitation and collaboration.

  • Domestic Policy: gathering information and providing analysis and advice on issues affecting the performance of agriculture. These include issues such as sustainability, resource use, and the effects of policies on industry; managing the legislative pro gramme; and facilitating implementation of policy.

  • Fisheries Policy: servicing the Minister of Fisheries; liaising with fisheries interest groups, e.g., commercial, Maori; providing international fisheries advice, e.g., EEZ issues; and providing policy advice on specific issues including Maori and recreational fisheries and aquaculture.

Regulatory Authority

MAF's Regulatory Authority is made up of MAF's four chief technical officers (CTOs) and their staff. The CTOs are: the chief veterinary officer, chief meat veterinary officer, chief plants officer and chief dairy officer.

This group works closely with MAF Policy, and assists in the development and promulgation of policy. Within each area of expertise the Regulatory Authority also designs, specifies and promotes standards to protect New Zealand's hard-won reputation as a supplier of safe and pure products.

The authority works in the following specialist areas:

  • Agricultural security: developing standards for border protection, quarantine, monitoring for outbreaks of pests or diseases and response procedures for exotic pest/disease outbreaks.

  • Quality assurance: developing standards for accreditation, licensing and registration, and certification; and inspecting production facilities to ensure compliance with standards.

  • Pest and disease management: developing standards for disease and noxious plants control.

  • Animal welfare: developing new codes of practice.

The Regulatory Authority maintains strong links with its counterparts in other countries, and represents the Government overseas on agricultural security and quality assurance issues.

Agriculture New Zealand

Agriculture New Zealand is a fully commercial agricultural consultancy and technology transfer service, run as a business arm of MAF. Its competitive advantage lies in:

  • Comprehensive, nationwide coverage (32 offices, from Kerikeri to Invercargill).

  • Independence.

  • Experience, based on MAF's 100-year involvement in agriculture.

  • Access to innovative technology and information.

  • Expertise in all production types and systems.

Corporate Office

MAF's Corporate Office provides the systems and structures essential to the efficient operation of MAF's business groups and head office units. The office's functions are grouped into several areas of responsibility, including:

  • Administration: services to head office and MAF Policy.

  • Legal Services: legal advice to MAF businesses, directorate-general and Ministers of Agriculture and Fisheries.

  • Corporate Communication: internal and external communications.

  • Financial Services: systems, financial planning and reporting, accounting services, asset management.

  • Corporate Development and Human Resources: industrial relations, organisation development.

  • Secretariat Services: executive support to senior management and board.

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 with cattle in the hills and in the south of the North Island. There are also areas of intensive sheep farming, the major output of which is “fat lambs” for the meat trade. In the South Island, sheep farming (both intensive and extensive) 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.

Land girl at work at Mangaorapa in 1943. In 1940, the Women's Land Corps was organised by the Women's War Service Auxiliary to provide replacement labour for farm workers who had enlisted in the forces. In 1942 the corps was restructured and renamed as the Women's Land Service. Women received minimum wages according to the nature of the farm on which they were employed, working apparel and dress uniforms. By the time the service was disbanded in 1946, 2711 women had served in the ‘land army’, with numbers peaking in October 1944 when 2088 women were working as land girls.

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. A few feed-lot units have been built in recent years to produce table beef for export.

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 (actually now closer to 15 than 20 times as many). 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.

LIVESTOCK ON FARMS

Total numbers

Table 15.1. DISTRIBUTION OF LIVESTOCK, AS AT 30 JUNE 1991

Teritorial Local AuthorityDairy cattleBeef cattleSheepPigsDeerGoats
RC = Regional Council
 (000)
Northland RC3636101 118101775
Auckland RC227287934385853
Waikato RC1 2517643 97666159134
Bay of Plenty RC3381779652912058
Gisborne RC43332 21131910
Hawke's Bay RC144494 97689982
Taranaki RC5611741 276242026
Manawatu-Wanganui RC2567348 3423311571
Wellington RC671742 556222428
            North Island3 0813 70226 355234632536
Nelson—Marlborough RC731381 885255157
West Coast RC66732601317
Canterbury RC12033910 06812119389
Otago RC462388 141197259
Southland RC441818 454815045
            South Island34996928 807174497257
            Total New Zealand3 4294 67155 1624071 130793

Sheep. Data on sheep breeds indicates that there were 55.2 million sheep in New Zealand at the end of June 1991. The most popular sheep in New Zealand is the Romney, an English breed. The Romney in New Zealand has been further developed as a dual purpose breed being carried for both meat and wool production. The Romney has been cross-bred with such strains as the coarse wooled Border Leicester, 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 1 million deer.

Competitor in the Skellerup Young Farmer of the Year Contest

Venison exports totalled 10 094 tonnes in 1992 with an f.o.b. value of $81.3 million. Velvet (antler) exports totalled $60 million f.o.b. This compares with venison exports of 5860 tonnes with an f.o.b. value of $49.2 million in 1990. Velvet exports for 1991 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 1991 there were 800 000 million goats. Detailed questions on the farming of goats were not surveyed in 1991, but 1990 data shows 72 percent were being farmed for mohair, cashmere and cashgora production, while about 20 000 goats were being used for milking and 280 000 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

As at 30 JuneBreeding ewes including hoggetsOther sheepTotal sheep
1,98746 99617 24764 244
1,98845 94518 65564 600
1,98942 49618 07360 569
1,99042 09715 75657 852
1,99139 83315 32955 162

Compared to earlier years, fewer categories of livestock were collected by the 1991 Agriculture Survey questionnaire. Only breeding ewe, breeding hogget, and other sheep numbers were asked for.

Table 15.12. SIZE OF SHEEP FLOCKS*

Size of flock19871988198919901991

* As at 30 June.

            1–9910 49411 16411 02111 82311 960
      100–1992 5362 6792 6922 4002 588
      200–4993 9003 9384 1613 9463 884
      500–9993 6533 6193 5933 4773 884
1000–14993 2473 1543 2763 1913 172
1500–19993 3913 2553 1523 0572 963
2 000–2 4993 1893 0982 9982 9072 649
2 500–49996 6106 6916 1145 8295 549
5 000–9 9991 8751 9431 7681 6751 581
10000 and over520526475431439
            Total flocks39 41540 06739 25038 73638 080
Average flock size1 6301 6121 5431 4931 449

Table 15.13. CATTLE CATEGORIES

CategoryAs at 30 June
19901991
Dairy cows and heifers in milk or calf2 723 0822 641 712
Dairy cows and heifers not in milk or calf86 66487 695
Dairy heifer yearlings and calves (including bobby)599 912664 705
Dairy bull and bull calves intended for breeding31 15735 315
            Total, dairy3 440 8153 429 427
Beef cows and heifers bred from1 386 3831 387 987
Beef cows and heifers not bred from496 771446 281
Bulls—all ages568 960699 055
Other beef cattle2 141 0462 137 246
            Total, beef cattle4 593 1604 670 569
            Total cattle8 033 9758 099 996

15.3 Meat

Meat industry products are New Zealand's largest export income earner, accounting for around one dollar in every five earned overseas. New Zealand's main meat exports are lamb, mutton and beef. For the year ended September 1991, 89 percent of lamb, 69 percent of mutton and 83 percent of beef animals processed in New Zealand were exported overseas. Increasingly, lamb exports are in a further processed form, particularly cuts. Mutton tends to be exported boneless, and beef as boneless manufacturing beef. The domestic market absorbs around 100 percent of the pigmeat and poultry produced in New Zealand.

Freezing works.

Table 15.14. MEAT PRODUCTION

ProductYear ended September
19881989199019911992
Source: Ministry of Agriculture and Fisheries.
 tonnes (000)
Beef554544466524523
Veal1616131314
Mutton197229186145158
Lamb418396348383400
Pigmeat4645434347
            Total1 230.51 2301 0561 1081 142

Table 15.15. LIVESTOCK SLAUGHTER AT MEAT EXPORT WORKS AND ABATTOIRS*

AnimalsYear ended September
19881989199019911992

* Excludes killing on farms.

Source: Ministry of Agriculture and Fisheries.

 head of stock (000)
Lambs30 38930 33625 14927 24928 020
Sheep7 9319 7527 6757 2277 681
Adult cattle2 2182 2921 9352 1802 132
Calves and vealers891911735741779
Pigs782779749748807

Table 15.16. EXPORT MEAT PRODUCTION

Type of meatYear ended September
19871988198919901991

* Figures may not add due to rounding.

† Provisional.

Source: New Zealand Meat Producers Board.

 tonnes (000) shipping weight
Lamb—carcases231.9208.2186.5125.2123.9
         —other117.1130.7137.1135.5162.2
Mutton—carcases52.051.375.952.046.7
         —other37.026.228.425.229.9
Beef—manufacturing201.9205.8215.7185.2207.2
         —other64.765.184.252.972.9
Veal8.66.07.38.47.2
Goat0.22.41.72.3
Variety meats51.241.939.536.931.2
Inedible meat and offal17.718.520.317.0193
         Total*782.1754.6797.5640.0702.8

Meat types

Sheepmeat

Lamb—is a young sheep under 12 months of age or one that does not have any permanent incisor teeth in wear.

Hogget—is a young male sheep or maiden ewe 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 ewes and castrated males (wethers) with more than two permanent incisors in wear. A wether must not show any ram characteristics.

MEAT PRODUCTION

Total

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. Cows have more than six permanent incisors. A bull is an entire male bovine with masculine characteristics.

Veal and bobby calves—vealer calves include maiden female, castrated male, and entire males which are not showing masculine characteristics that are up to 14 months of age. Bobby veal carcases are derived from milk-fed bovine calves generally under two weeks of age.

A standard system of classifying meat is used in New Zealand. Export meat is classified according to the type of animal, age, sex, weight, fat content and in some cases muscling. The classification standards are established by the New Zealand Meat Producers Board after consultation with the New Zealand Meat Industry Association.

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, on contract or by auction.

The average net schedules for the last five seasons are given in table 15.17. The schedule prices quoted are inclusive of pelt, slipe wool and hide payments.

Table 15.17. AVERAGE NIT SCHEDULE PRICES

Classification1986–871987–881988–891989–901990–91

* Includes skin and one kilogram wool pull.

† Prior to 1988–89 steer prices are for P1 class.

Source: New Zealand Meat Producers Board.

Lamb ($/head)*
PL 9.0–12.5 kg16.6914.1317.1826.2021.99
PM 13.0–16.0 kg23.7218.2024.8335.9328.19
YL 9.0–12.5 kg15.7614.0116.5024.5321.34
Mutton ($/head)*
MX 22 kg and under9.8213.1810.4718.8611.72
ML 22 kg and under10.3913.1411.7420.4013.34
Beef (cents/kg)
P2 Steer 245.5–270 kg181.8167.9245.1287.2272.9
K2 Steer 245.5–270 kg  237.7280.9268.6
M Cow 145–170 kg162.2145.8196.8238.1226.6
Bull 245.5–270 kg201.4180.9241.2297.1284.7

Red meat production

The New Zealand production season runs from 1 October to 30 September. New Zealand accounts for 1 percent of global beef and veal production, and 8.8 percent of global lamb and mutton production.

In the 1990–91 season, per head production increased from the drought-induced low of 1989–90. Good seasonal conditions, combined with lower stock numbers, resulted in good livestock performance in all regions.

New Zealand Meat Producers Board

The purpose of the New Zealand Meat Board Producers Board, as defined by statute, is to maximise the returns to New Zealand meat producers. In the interests of producers, the board's main responsibilities are: licensing of meat exporters; meat classification and quality assurance; research and development; negotiation of freight services and rates; global promotion; market information and trade access.

The board does not directly sell meat, this is undertaken by a variety of licensed meat exporting companies. However, the board does provide market support through its overseas offices in Bahrain, Brussels, London, Tokyo and Washington. The board proposes to open an office in Hong Kong in 1993.

The board is funded by means of a compulsory levy on stock, a per head charge collected at the time of slaughter. Levy income totalled $27.3 million in the year ended September 1991.

Table 15.18. MEAT BOARD LEVIES, 1 OCTOBER 1991

Class of meatCents per head*

* Excluding GST.

Source: New Zealand Meat Producers Board.

Lambs, other sheep and goats47
Bobby calves24
Cows, vealers and other adult cattle420

MEAT PRODUCTION

Export

Export marketing

New Zealand is a major exporter of sheepmeat, accounting for 44 percent of the world export trade, but is a smaller player in the global market for beef, accounting for 7 percent of all world beef exports.

New Zealand's major meat markets include the United Kingdom, Iran, Japan, Saudi Arabia and Germany for lamb; the United Kingdom, Iran, the Commonwealth of Independent States and South Korea for mutton; and the United States, Canada and South Korea for beef. In 1990–91, 51 percent of all sheepmeat exports went to the European Community. The United States alone accounted for 75 percent of all beef exports. All export figures are in shipped weight.

Sheepmeat. During the 1990–91 season lamb exports totalled 292,751 tonnes, an increase of 7.6 percent on the 1989–90 season. Exports to the United Kingdom declined from 93 649 tonnes in 1989–90 to 79 225 tonnes in 1990–91. However, exports to other European community markets increased by 7916 tonnes, or 12.7 percent. In 1990–91 there was an Iranian contract, with lamb exports totalling 29 315 tonnes.

Mutton exports increase by 25.8 percent to 84 117 tonnes. Shipments to the European Community increased to 25 637 tonnes, the United Kingdom, New Zealand's largest single market for mutton, taking 16 197 tonnes. With a contract in 1990–91, mutton exports to Iran totalled 15 103 tonnes. Shipments to the former USSR were relatively stable at 14 696 tonnes. All exports figures are in shipped weight.

New Zealand's lamb, mutton and goat exports to the European Community are subject to a voluntary restraint agreement.

Beef and veal. New Zealand's biggest market for beef and veal in 1990–91 was the United States, with shipments totalling 221 843 tonnes. Canada was the next largest market, with 20 823 tonnes. All export figures are in shipped weight.

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 required in 1991. 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 prices

The International Meat Trade Association in the United Kingdom compiles a weekly London wholesale meat price list. The London wholesale prices in table 15.19 are an indicative measure of world prices for New Zealand lamb.

Table 15.19. LONDON WHOLESALE LAMB PRICES

End of last week in MarchP ClassY Class
9–12.5 kg13–16 kg16.5–20 kg9–12.5 kg13–16 kg
Source: New Zealand Meat Producers Board.
 Pence a kilogram
1,988130.1124.6114.7130.1122.4
1,989127.9131.2127.9125.7130.1
1,990153.2149.9145.5153.2147.7
1,991125.7123.5116.9125.7121.3
1,992138.9133.4124.6138.9132.3

Table 15.20 gives a measure of New Zealand exported beef prices, derived from the New Zealand Meat Producers Board's weekly price series for imported manufacturing beef to the United States.

Table 15.2. UNITED STATES OF BEEF PRICES

End of last week in MarchManufacturing bullManufacturing cow
Source: New Zealand Meat Producers Board.
 US cents a kilogram
1,988255.8247.0
1,989264.6260.2
1,990277.8260.2
1,991280.0262.4
1,992270.1255.8

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 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
1,98864.25.4260604
1,98964.65.2254688
1,99060.65.1233615
1,99157.95.3227422
1,99255.25.4221437

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, sheep and wool products.

The board is entirely funded by woolgrowers and has no government financial backing. The main sources of income for the board are: a levy on gross wool receipts ($56 million in the 1991–92 season) and interest on investments ($14.2 million for the 1991–92 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.

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

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.

Contestant in the New Zealand Woolhandler of the Year Competition.

The Wool Research Organisation of New Zealand (WRONZ) receives the majority of the board's research funding. In the year ended 30 June 1992 the board invested $2.9 million in research and technology transfer services at WRONZ. Established in 1960 at Lincoln Christchurch, WRONZ conducts fundamental research 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 countries 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 Ilkley, England, where it has a major process and product development centre. In the 1991–92 season New Zealand's share of the budget of the Secretariat was $29.9 million.

Markets for wool

The most common way of selling wool in New Zealand is by open auction; 64 percent was sold this way in 1992–93. The auction season runs from July to the following June. Sales are held at three centres around the country and they attract buyers representing all the main wool importing countries. Growers can also sell their wool to merchants privately in New Zealand (24 percent of sales in 1992–93).

Wool Board stocks fell to 53 300 tonnes by the end of the season. The season average price increased 4 percent 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 1991–92
Source. New Zealand Wool Board.
 tonnes (000)cents$(million)cents
1,988167603.61,099.3704
1,989164687.61,146.8766
1,990154614.51,009.7638
1,991153422.0660.6426
1,992140437.0623.2437

Around 93 percent of the New Zealand clip leaves the country in a greasy, scoured, or slipe form. Seventy-five percent of exports are scoured and exports of carded silver and top are increasing annually. Of the 7 percent of the clip processed in New Zealand, roughly half is exported in product form.

It is important to distinguish between initial and final destinations of New Zealand wool exports. Initial destinations have changed substantially over the years, and there are sometimes very large changes from year to year. Export destinations for wool fibre are shown in table 15.22. During 1991–92 the largest importers were China, Japan, the United Kingdom and Nepal.

With the exception of China and the C.I.S., 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 wool fibre, but import made-up carpets from other countries. India and Nepal have emerged as large customers for New Zealand wool, mostly for processing into handknotted carpets for export to Europe and North America.

Table 15.22. EXPORT DESTINATIONS OF NEW ZEALAND RAW WOOL

Country1987–881988–891989–901990–91R1991–92
Source: New Zealand Wool Board.
 tonnes clean equivalent (000)
Japan20 98719 41021 43924 60419 704
United Kingdom23 15119 69417 25218 27519 055
USSR/C.I.S.22 02324 12926 6647 8224 666
France6 5867 3144 3512 9163 574
China50 06962 87415 14719 05147 426
United States11 91912 8729 9337 4769 173
Germany12 81110 99611 79011 19812 749
Italy5 9375 8454 7477 1466 435
Netherlands10 2668 2007 4275 2912 542
Belgium15 21313 41214 24612 09616 166
Australia and Pacific Is.11 50210 7199 0758 4188 609
Other56 20148 80148 82664 52174 209
            Total exports246 665244 246190 697188 815224 308

WOOL FIBRE EXPORTERS

1990–91

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. The adjacent graph shows the relative positions of the main exporting countries.

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 1991–92 it increased by 2.7 percent, to $67 million (f.o.b.). Yarn exports also rose in value to $76 million (f.o.b.), a 1 percent increase on the previous year. Other wool-based export items include: raw and processed sheepskins, tops, wool waste, blankets, fabrics, knitwear and other clothing.

Total export earnings from wool products increased by 12 percent to $225 million in 1991–92. These exports are summarised in table 15.24.

Table 15.24. WOOL PRODUCT AND SHEEPSKIN EXPORT EARNINGS*

Product1988–891989–901990–911991–92

* Year ended 30 June.

Source: New Zealand Wool Board.

 ($million f.o.b.)
Wool floor coverings70.281.165.166.7
Wool yarn106.0R92.775.475.6
Sheepskins—raw20.76.94.16.2
Sheepskins—processed29.5R35.033.538.4
All other26.8R25.722.3R38.2
            Total253.2R241.4200.4R225.1

15.5 Dairy produce

Dairy product exports constitute some 20 percent of total merchandise trade receipts for New Zealand, and, with the exception of milk and some dairy products for local consumption, the industry is primarily geared towards overseas markets—which account for between 80–90 percent of all milk produced on an annual basis.

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

Product1987–881988–89*1989–901990–911991–92

* New series, includes milk sold for processing only.

Source: New Zealand Dairy Board

 million litres
Production
      Total milk production7 7056 9697 3027 5097 871
Utilisation
Volume of town milk sales342341334336364
Milk sent to dairy factories6 9216 5336 8687 0787 441

Table 15.26. DAIRY FACTORY PRODUCTION

Product1989–901990–911991–92
Source: New Zealand Dairy Board.
 tonnes
Creamery butter232 014216 291218 351
Anhydrous milkfat25 82834 59043 302
Frozen cream7 1166 080
Cheese118 109124 773137 405
Whole-milk powder158 273235 383250 105
Infant food15 38816 09424 563
Skim-milk powder183 884147 413136 037
Buttermilk powder27 16024 49623 402
Casein products69 38165 62274 194
Lactose18 58722 52025 603
Whey powders11 02211 88213 708

Owner with Glen the Bull and champion cows at the Blueskin Bay A&P Show. Starkie, a jersey, (left) was champion heifer and Connie (right) was supreme cow.

Dairy organisations

There are presently 16 co-operative dairy companies, which operate around 40 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 to reflect the additional input costs in producing out of season milk.

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 over 100 countries annually and has its own marketing distribution network in all of these countries. With over 50 fully owned subsidiaries, associate companies and agencies the Dairy Board is the largest multinational dairy marketing organisation in the world. The vertical integration of the corporate structure gives the industry a strong international position. About half the volume of New Zealand dairy exports is sold in Europe, North America, and Japan. The developing markets, in particular South-East Asia, and South and Central America are relatively affluent, yet highly protected.

DAIRY PRODUCTS*

Total sales by region

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 exporters 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 continue to determine that the volume of butter able to be imported will be 55 000 tonnes in 1992. In the absence of an outcome in the Uruguay round of the GATT the actual arrangements have to be renegotiated for 1993. 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 South-East 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.

Export markets. The international dairy market recovered during the year to 31 May 1992. The European Community, which dominates the market in volume terms, took steps to lower production and better manage stocks of surplus dairy products. These actions, together with a cut in surpluses in Eastern Europe, reduced the amount of product from competing suppliers and led to a firming market.

The board's export volumes for the year, at 894 000 metric tonnes, were up 7 percent on the 1991-91 season, and the export income earned of NZ$3 billion approached 20 percent of New Zealand's export income. Over a four year period, the value of dairy product exports has increased by two thirds.

Another major influence on the international dairy trading environment in 1991-92 was the economic and political restructuring occurring in a number of big importing markets. Of most importance were developments in the Soviet Union, where the unprecedented transformation of the world's largest import market for butter inevitably created uncertainty about the security of payments on trade already in the pipeline and on the prospects for future sales, relevant not only for New Zealand but for all exporters of dairy products.

One result of the economic metamorphosis under way in Eastern Europe has been a major dislocation to the dairy industries in those countries, especially Poland. Milk production has been sharply reduced, and with the needs of the domestic market the top priority, reduced production has translated directly into a major withdrawal from exporting products such as skim milk powder and casein.

In 1991-92 Cuba and Vietnam returned to the international dairy market to purchase essential imports of basic milk products such as milk powder and butteroil. Economic growth and development elsewhere, particularly in Latin America and in South-East Asia, provided a further modest stimulus to demand for dairy product import in 1991-92. Financing imports into many of the markets in these regions, and in other key markets such as Algeria, has remained a difficulty.

The stability of the market was helped by a narrowing of the fluctuations of international currency values, always a wildcard in pricing among competing exporters. Prices at the end of the season typically were 10 to 15 percent higher than at the beginning, though the pattern varied widely according to products and markets.

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 15.27, 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 15.27. PRICES FOR MILKFAT AND PROTEIN

Season ended 31 MayMilkfatProteinTotal whole-milk (milkfat equivalent)
Source: New Zealand Dairy Board.
1,988209.00202.00360
1,989264.00356.00530
1,990269.28413.80580
1,991164.24275.40370
1,992232.00388.67520

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 1991 were 407 306. 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. Production in the 1991-92 year increased significantly from 748 839 pigs slaughtered to an estimated 805 000 giving a 7.5 percent increase. The majority of this increase came from the South Island where pig production has increased rapidly over the past three years from 41 percent of national production in 1989 to 48 percent in 1992. It is expected that this trend will continue because of the grain source in the South Island. The tonnage of pork produced in New Zealand is estimated to reach 46 500 tonnes in the 1991-92 year (to 30 September) compared to 43 100 in 1990–91.

Table 15.28. PIGS

At 30 JuneBreeding sows year old and overOther pigs of all ages (including boars)Total pigs

* Total pig numbers only were collected for 1991.

1,98749 653375 889425 542
1,98847 183366 375413 558
1,98944 471356 120411 334
1,99044 665340 013394 701
1991*....407 306

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 the level of sophistication of its poultry meat industry to the equivalent, and in most cases superior, status to that found anywhere in the world. 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. 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 22 percent in 1992. 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 15.29. CHICKEN PRODUCTION

YearBirdsDressed weightFreshFrozen
Source: Poultry Industry Association of NZ Inc.
 numbertonnespercent
1,98637 709 00046 02746.153.9
1,98738 925 00047 77747.852.2
1,98842 146 00052 83549.250.8
1,98945 583 00058 73251.148.9
1,99043 469 00055 37955.244.8
1,99145 891 00059 03653.546.5

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. A levy, under the Commodity Levies Act 1990, has now been approved by the Minister of Agriculture to fund this body.

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 1992 researchers confirmed that Manuka honey (Leptospermum scoparium) is unusually effective as an antiseptic dressing. Waikato University biochemists have shown that it is particularly useful for wounds, burns and ulcers. It is expected that this discovery will make Manuka honey a much more valuable product than it has been traditionally.

In the year ended 30 June 1992 the total honey crop was assessed at 9560 tonnes, compared with the previous year's crop of 7290 tonnes, with an average production of 31.4 kilograms per hive. An average crop (by year average) is 24.5 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 70 cents per hive in 1992.

Table 15.3. APIARIES AND HONEY PRODUCTION*

DistrictBeekeepersApiariesHivesHoney production

* Year ended 31 May.

Source: Ministry of Agriculture and Fisheries.

 numbertonnes
1991
Whangarei1 3073 04632 475668
Hamilton6493 10545 6611 057
Tauranga6193 54153 7171 470
Palmerston North1 3403 91740 528811
Blenheim5051 97223 284265
Lincoln7684 93758 2391 965
Alexandra5864 48258 3381 054
            New Zealand5 77425 000312 2427 290
1992
Whangarei1 3163 07232 3011 200
Hamilton6273 04445 4521 068
Tauranga6023 57351 938998
Palmerston North1 3323 92737 5541 231
Blenheim4972 04823 941650
Lincoln7584 94959 0902 870
Alexandra5854 34453 7891 543
            New Zealand5 71724 957304 0659 560

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, onions, squash, flowers and berryfruit. Grapes are grown mainly for the domestic market and for wine production.

Grain, vegetable and seed crops

Stock feed. Animals can be grazed in open pasture for the full 12 months of the year, but the winter growth of grass, except in certain favoured localities, needs to be supplemented in order to keep stock in good condition during the colder months, and in some districts supplementary fodders are necessary in the drier summer months. Hay and silage crops are grown almost exclusively on the farms where they are consumed, though some districts specialise in the growing of certain other supplementary fodder crops. The bulk of the supplementary fodders, other than grass and clover, hay, and silage, is grown in the South Island, since the colder climate necessitates more extensive supplementary feeding than in the North Island.

The renewal and extension of pastures require the annual supply of very considerable quantities of grass seed. There is an appreciable export trade in some species of grass seeds.

Table 15.31. GRAINS AND PEAS, 1991*

CropArea sownYields
North IslandSouth IslandTotalNorth IslandSouth IslandTotal

* Year ended June.

 hectarestonnes
Wheat5 22532 30237 52726 376154 314180 690
Oats1 47413 31614 7904 38352 80457 187
Barley14 57369 16783 74068 079313 964382 043
Peas2 64216 37319 0159 53755 52765 064
Maize18 72432219 046180 5382 850183 388

Wheat. New Zealand wheat is primarily grown for domestic human consumption and is milled for flour. Some wheat grain and the by-products of flour milling, bran and pollard are used for stock feed. Wheat constitutes 21 percent of the area planted in grain crops.

Most wheat is grown in the South Island in the Canterbury Regional Council Area. In the year ended June 1991 this region provided 70 percent of the total production of 180 690 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.

Barley makes up 48 percent of the area planted in grain crops and peas. The main growing area is the middle and southern parts of the South Island. In the North Island the main growing region is Wanganui-Manawatu, which provided 12 percent of the refined crop of 382 043 tonnes in 1991.

MAJOR CROPS

Area sown

MAJOR CROPS

Production

MAJOR CROPS

Yield per hectare

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 and peas, maize makes up 11 percent. In 1991 the Waikato Regional Council Area provided 33 percent of the crop, and the Bay of Plenty 19 percent. The total yield was 183 388 tonnes in 1991, a 13 percent increase on 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 57 187 tonnes in 1991, a 27 percent reduction compared with 78 877 in 1990. The main areas for oats are Southern Canterbury and Southland.

Field peas. In 1991, 69 percent of the total yield of 65 064 tonnes of peas were grown in the Canterbury Regional Council Area in the South Island. Of the total area planted in grain crops, field peas make up 11 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. Information on potatoes was not collected in 1991.

Tissue culturing of plant types, Horticultural Research Centre, Levin.

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 Commerce. 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).

Award-winning viticulturalist, Jane Hunter.

Fruit

In the year to June 1992, 468 099 tonnes of fresh fruit at a value of $890.9 million was exported. Table 15.32 outlines the main types of fruitgrowing in New Zealand.

Areas planted in fruit were not collected by the 1991 Agriculture Survey, but were included in the 1992 questionnaire. A biennial update of the fruit areas will be available in 1992 and every second year thereafter.

Table 15.32. 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—
      Apples9 67010 25211 333Hawke's Bay, Nelson
      Pears798759903Hawke's Bay, Nelson
      Nashi (Asian Pears)757762739Auckland, Bay of Plenty
Stone fruit—
      Apricots832857854Otago
      Nectarines1 1491 058946Hawke's Bay, Otago
      Peaches1 1501 1321 101Hawke's Bay, Auckland
      Plums330303324Hawke's Bay, Auckland
      Cherries259269283Marlborough, Otago
Berry fruit—
      Blackcurrants655616703Canterbury, Southland
      Blueberries532495346Waikato
      Boysenberries421365311Nelson, South Auckland
      Raspberries388340285Nelson, Waikato
      Strawberries246245313Auckland
      Other brambles806860Waikato, Nelson
Subtropicals—
      Avocados1 2961 3141 354Bay of Plenty, Northland
      Feijoas283255272Bay of Plenty
      Kiwifruit18 90517 69417 508Bay of Plenty
      Tamarillos477436420Northland
      Passionfruit807575Bay of Plenty
      Grapes (outdoor)4 8714 8325 408Hawke's Bay, Gisborne, Marlborough
      Persimmons441460488Auckland

Grape growing and wine production. The estimated total vine area throughout New Zealand as at June 1992 was 6100 hectares, of this 5790 hectares are producing; this is a 6 percent increase on the 1991 producing area of 5400 hectares. The major grape-growing regions are Gisborne, Hawke's Bay, Marlborough, Auckland, and Poverty Bay.

Table 15.33. NEW ZEALAND WINE INDUSTRY STATISTICS

 Unit1989199019911992
Source: Wine Institute of New Zealand.
Producing areahectares4 2704 8735 4005 800
Average yieldtonnes per hectare13.814.412.29.3
Crushedtonnes60 33570 26565 70855 500
Total productionmillion litres45.354.549.941.6
Domestic salesmillion litres39.139.241.144.0
Consumption per capitalitres (NZ Wine)11.711.712.112.9
Stock: sales ratiosales ratio1.52:11.73:11.65:11.28:1
Export Volumemillion litres2.64.05.67.1
Export Valuemillion litres11.618.425.334.7

Picking grapes for export, Rotorua. The Muscat Italia grapes are grown in huge glass houses, which offer protection from the wind and also minimise damage to the crop.

Table 15.34. NEW ZEALAND WINE PRODUCTION, SALES AND STOCKS

 1988198919901991
Source: Wine Institute of New Zealand
 litres (000)
Production—
White30.75338.62747.07442.513
Red4.4295.1605.2985.746
Sparkling2.2760.3400.4210.379
Fortified1.7341.5201.6521.287
            Total39.19245.64754.44549.925
Sales—
White29.67826.50029.95033.739
Red3.4183.3003.7004.100
Sparkling7.7126.1005.3005.300
Fortified7.0395.8004.3001600
            Total47.84747.70043.25046.739
Losses—2.0361.0422.1303.100
Stocks—
White39.08842.01257.86055.795
Red7.1929.4548.53911.264
Sparkling2.7233.5913.1483.326
Fortified7.5348.2577.4956.602
Total56.53763.31477.04276.987

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, Buerré 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 1992 season a record crop of 21.9 million cartons was handled by the New Zealand Apple and Pear Marketing Board, with a record turnover of $665 million. Export sales of fresh fruit equalled $512,066 in comparison to $480,432 for 1991.

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 New Zealand produced fruits for local and export markets.

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.

Table 15.35. APPLE AND PEAR SALES BY THE NEW ZEALAND APPLE AND PEAR MARKETING BOARD*

 19911992

* For year ended 30 September.

Source: NZ Apple and Pear Marketing Board

 $(000)
Fresh fruit—export480,432512,066
Fresh fruit—local41,17339,556
Processed foods95,981108,062
            Net return617,586659,684

Skilled trading of apples maintains a high level of quality control.

Central Otago orchard worker scrutinises nectarines before the fruit are put into cools tore.

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 decreased from 3934 tonnes with a value of over $12.3 million in 1991, to 3703 tonnes with a value of $15.1 million in 1992. Nectarines account for 46 percent of the volume of exports, followed by apricots, cherries and peaches. Australia is the main export market, with South-East Asia and other markets being developed.

Exporting 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 1991 of $636 million. Export volumes have increased dramatically over the past decade and in 1991—the third selling season of the New Zealand Kiwifruit Marketing Board, which is sole exporter except to the Australian market—sales reached 54.7 million trays. The rate of growth is shown in table 15.36.

Kiwifruit is produced most regions of the North Island, as well as the north of the South Island. The Bay of Plenty, with 65 percent of production, is the major production area.

The Kiwifruit Marketing Board's sales in its three major markets in 1991 were: Europe, 32.1 million trays (59 percent of total), Japan, 12.1 million trays (22 percent); and North America, 6.8 million trays (12 percent).

Table 15.36. GROWTH IN KIWIFRUIT PRODUCTION

YearAreaProduction traysExport traysSales trays

* Trays packed for export, not sales.

Source: New Zealand Kiwifruit Marketing Board.

 hectares(million)
1,9818 05710.06.26.2
1,99015 74485.072.162.8
1,99114 98067.259.554.7

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 1992, 2525 tonnes of avocados were exported at a value of $9.6 million. The volume of persimmons exported has decreased to 853 tonnes at $4.1 million from 1045 tonnes in 1991, with a value of $5.1 million. Exports of citrus fruits have increased from 405 tonnes in 1989 to 1314 tonnes in 1992, with a value of $2.4 million. The citrus product group and many of the subtropical product groups are recognised product groups under the New Zealand Horticulture Export Authority. Most of these groups have formulated export marketing strategies directed at achieving medium and long term stability and growth for the industry. These export marketing strategies are reviewed and updated annually.

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.

Special articles

Danna Glendining; Country Women's Institute; Women's Division of Federated Farmers.

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).

The mite Typhlodromus pyri (here magnified 200 times) is used in the control of the pipfruit pest, the European red mite.

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 planted production forests. Of the total planted production 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 planted production forests. The most important hardwood plantation species are eucalypts originating from Australia.

New planting has declined from a peak of 56 000 hectares in 1985 to 16 000 hectares in 1991, although nearly all areas which were already in forest were replanted after harvesting.

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.

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

Planted production forests. Trees planted in the eras of boom afforestation (between 1923 to 1936 and 1961 through to the mid-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 1940–1992

Year ended 31 MarchNew area plantedRough-sawn timberWood pulp*Newsprint, other paper and paperboard
StatePrivate

* Chemical and mechanical wood pulp.

 hectareshectarescubic metres  
 (000)(000)(000)tonnestonnes
1,9403..79322113 079
1,9451..80315 68120 949
1,9502..1 13121 78122 136
1,955221 45353 01640 917
1,960321 638221 408164 255
1,965951 739370 499316 104
1,9701581 803521 654445 976
1,97521232 086843 244546 834
1,98018262 0001 122 456673 834
1,98520362 3061144 911770 098
1,9893171 8761 259 005735 207
1,9901212 1211 233 809757 371
1,991162 2831 348 760822 340
1992P....2 2761 342 948797 187

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.

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 planted production forest resource, and the sale in 1991 of a further 97 000 hectares.

Prior to these sales ownership of plantation forests was shared almost evenly between the public and private sectors. Today approximately 80 percent of the resource is in private ownership. The state holds the majority of the natural resource available for wood production.

FOREST PLANTATIONS

Annual plantings by state and private sectors

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 249 000 hectares were allocated to new owners, while the rights to 306 000 hectares remained unsold. Major purchasers of the first sale of state plantation forest resource were the established New Zealand forestry companies Carter Holt Harvey Limited, who purchased 94 000 hectares, and Fletcher Challenge, who purchased 49 000 hectares.

Several foreign owned companies made significant investments in New Zealand plantation forests. Juken Nissho Limited acquired the rights to 43 000 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 116 000 hectares of plantation forest. American company ITT Rayouier subsequently purchased 97 000 hectares of forest managed by New Zealand Timberlands after the balance of 22 000 hectares was withdrawn from the sale. New Zealand Forestry Corporation Limited, the holding company for the three state-owned entreprises, continued to manage these forests for the Crown.

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 planted production forests in New Zealand is 1.28 million hectares. Approximately 50 percent of the resource is owned by three companies, Carter Holt Harvey Limited, Fletcher Challenge and ITT Rayouier. Juken Nissho Limited, Earn-slaw One Limited and Wenita Forestry Limited own about 7 percent of the resource among them.

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 25 937 people engaged in timber-related industries in 1992. There were 4215 people engaged in forestry, 3653 in logging, 5866 in sawmilling, 6935 in timber merchanting, and 5268 in pulp and paper manufacturing and wholesaling. This compares with 25 604 people employed in the same activities in 1991.

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.

Felling mature radiate pine.

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 enterprises1 0771 1491 097
Activity units (including ancilliaries)1 4401 4861 430
Full time equivalent persons engaged10 1947 3566 870
 $(000)
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 assets1,174,5971,898,4211,029,593
            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 engaged15,501123,238153,784
 percent
      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

Macrocarpa is being hailed as the tree of the future. A quality timber admired for its colour, fine texture, aroma and finishing properties, macrocarpa is highly sought after by a variety of users, such as boat builders and craftspeople, who are quick to appreciate its likeness to kauri. The major constraint to the further development of a macrocarpa industry is the limited supply of logs. Above, forester and family tending trees on macrocarpa forest around Dunedin.

16.2 Timber and forest products

Timber

Roundwood. In 1991–92 logs from planted production forests supplied 13 993 000 cubic metres, or 98 percent of the total roundwood removals. Table 16.3 shows the quantities of roundwood 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 1991–92. 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)
1,988570  9 118  9 688
1,989377  10 242  10 619
1,990360  11 511  11 871
1,991368R13 126R13 494
1992P238  13 993  14 231

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)
1987  931 9632 056181192 075R
1988  681 7331 801171181 819  
1989  601 8011 861151161 877  
1990  712 0332 104161172 121  
1991x722 1982 270121132 283  

Table 16.5. SAWN TIMBER PRODUCTION BY SPECIES

SpeciesYear ended 31 March
19871988198919901991
Source: Ministry of Forestry.
 cubic metres (000)
Natural forest—
Rimu and miro8562586869
Matai1
Totara11
Kahikatea74232
Tawa108567
Beech8910107
Other1
            Total, natural111x85758786
Plantation forest—
Pines1 7641 556x1 579x1 7991 950
Douglas fir174163191212224
Eucalypts1111
Other28x1630x2325
            Total, plantation1 967x1 736x1 801x2 0342 199
            Total, all species2 0791 821x1 876x2 1212 283

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 40 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 1992 totalled 290 000 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 roundwood, 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 PRODUCTION

Indigenous and plantation

Timber preservation has expanded markets for timber products in the building, fanning 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.

Measuring and marking logs for transportation.

Forest products

Pulp and paper. The pulp and paper industry is mainly concentrated near the big planted production 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.

In 1990 Carter Holt 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
1,988601 789610 150255 01947 707398 079700 805
1,989663 936595 069296 29540 323398 589735 207
1,990658 230575 579294 88137 802424 688757 371
1,991733 240615 520321 28635 178465 876822 340
1992P653 304690 016356 35119 949403 716780 016

Wood-based panels. Four factories manufacture plywood, and the total output for the year ended 31 March 1992 was 59 496 cubic metres. Total production of veneer in the industry in 1991–92 was 82 810 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 roundwood 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 triboard plant operates at Kaitaia.

Table 16.7. VENEER, PLYWOOD, PARTICLEBOARD AND FIBREBOARD PRODUCTION

Year ended 31 MarchVeneerPlywoodParticleboardFibreboard
Source: Ministry of Forestry.
 cubic metres
1,98889 71463 069170 968301 116
1,98982 85563 655178 209412 825
1,99089 37368 479171 621442 603
1,99174 17960 726159 893463 232
1992P82 81059 496155 433509 683

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 1992 exports of forest products were valued at about $1,817 million. Australia was the largest customer, taking 35 percent (by value) of exports, mainly in sawn timber, paper and paperboard, panel products and wood pulp. Japan was the next largest, taking 26 percent, mainly logs and pulp. The remaining 39 percent is taken by smaller customers, of which the largest was Korea, taking 11 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. Specialty pulps manufactured articles of paper and paperboard, together with paper and paperboard not produced in New Zealand accounted for 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 1991 were valued at $477 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.$(000)
1,98876,514x10,406258,607345,528
1,98979,68811,861297,367x388,916x
1,990109,16414,682357,089480,935
1,99193,65610,068373,461477,185
1992P85,19416,949440,915543,048
Exports f.o.b.$(000)
1,988395,760x353,599236,014985,373
1,989537,680x398,711x300,753x1,237,144
1,990658,759386,817340,2951,385,871
1,991843,643389,817343,8001,577,260
1992P1,032,179379,168405,9241,817,271

Table 16.9. VOLUME OF TIMBER IMPORTS

Year ended 30 JuneHardwoodsSoftwoodsTotalLogs and poles
Source: Ministry of Forestry.
 cubic metres (000)
1,988181836x8
1,9891814327
1,9902025456
1,9911425404
1992P1318313

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)
1,98853366213411416830
1,989540867335085141 545
1,990444273295445482 170
1,991266683306796813 293
1992P271586488498513 793

Pioneering fisheries biologist, Margaret McKenzie.

Table 16.11. VOLUME OF OVERSEAS TRADE IN PULP AND PAPER

Year ended 30 JuneWood pulpFibreboard*Paper and paperboard
NewsprintOtherTotal

* In cubic metres.

† Excludes manufactures from paper and paperboard and excludes minor items for which no quantities are given.

Source: Ministry of Forestry.

Importstonnes
1,98811 26646513 05079 09992 149
1,98911 2456619 93281 72991 661
1,99011 6351 3848 73991 10699 845
1,99110 1341 96416 09494 062110 156
1992P16 8501 6556 022111 302117 324
Exportstonnes
1,988582 586169 468159 62176 375235 996
1,989567 836211 472x175 752x103 263x279 015x
1,990560 728240 310201 213112 482313 695
1,991624 954285 586209 158107 651316 809
1992P656 088336 127271 484108 089379 574

16.3 Fisheries

Fishery resources and management

New Zealand's 200 nautical 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 nautical mile EEZ 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 EEZ waters was 458 112 tonnes of finfish and 118 571 tonnes of squid for the 1992–92 year. 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 quota management system that is used to manage New Zealand's fisheries.

The success of the system, which aims for long-term sustainability of fisheries resources, depends on good scientific information. MAF Fisheries' scientists conduct regular surveys on the major commercial species, as well as carrying out research in aquaculture and species enhancement.

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 (October-September) a minimal fish quota was available to foreign licensed vessels.

Individual transferable quotas. The individual transferable quota is a property right allocated to fishers in the form of a right to harvest a particular species in a defined area. 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, 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 Task Force set up by the Minister of Fisheries produced its report. This had been opened for public comment, and a summary of those comments is now with the Minister.

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 (Pagrus auratus). Other important species are tarakihi (Nemadactylus macropterus); gurnard (Chelidonichthys kumu); trevally (Pseudocarany dentex); and jack mackerel (Trachurus spp.) Sole are taken mainly by trawling and flounder by set net.

The principal species taken by longline are snapper; groper (Polyprion spp.) 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 (Allocyttus, Neocyttus and Pseudocyttus spp.) and orange roughy (Hoplostethus atlanticus). Hoki and orange roughy are the most important species for the larger vessels of 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 have both domestic and foreign licensed components, these 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 mackerel (Scomber australasicus) are caught by purse-seine. Southern bluefin tuna (Thunnus maccoyi) are 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, martins 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 sloani and N. gould) which are caught in large quantities by trawl and jigging methods, although the resource is subject to considerable annual variation.

New Zealand lobster.

The commercially important dredge oyster (Tiostrea chilensis) beds in Foveaux Strait have been severely depleted by the parasite Bonamia. 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.

Table 16.13. TOTAL ALLOWABLE CATCH, 1992*

Fish or shellfishQuantity

* As at 30 September 1992. Excludes tuna species.

Source: Ministry of Agriculture and Fisheries.

 tonnes (000)
Alfonsino2.7
Barracouta33.2
Blue cod2.7
Blue moki0.3
Blue warehou4.5
Bluenose1.9
Elephant fish0.6
Gemfish7.4
Grey mullet1.1
Gurnard5.0
Hake13.8
Hapuku/bass (groper)2.2
Hoki201.9
Jack mackerel32.1
John dory1.1
Ling19.7
Mixed flat fishes6.7
Orange roughy38.1
Oreo dory25.2
Paua1.3
Red cod15.8
Rig (dogfish)2.1
School shark3.1
Silver warehou9.5
Snapper8.0
Squid119.0
Stargazer5.3
Tarakihi6.0
Trevally3.9
            Total allowable catch571.7

Maori Fisheries Act 1989

The long title to the Maori Fisheries Act 1989 notes that it is an Act to:

  • Make better provision for the recognition of Maori fishing rights secured by the Treaty of Waitangi

  • Facilitate the entry of Maori into, and the development by Maori of, the business and activity of fishing

  • Make better provision for the conservation and management of the rock lobster fishery.

Maori Fisheries Commission. The Maori Fisheries Act establishes a Maori Fisheries Commission which is required to facilitate the entry of Maori into the business and activity of fishing and grant assistance to any Maori or group of Maori to enter, continue or develop the business and activity of fishing. The Crown is required in terms of the Act to transfer to the commission 10 percent of the Total Allowable Commercial Catches or an equivalent amount of money in four equal packages of 2.5 percent. The last transfer is expected to take place before 31 October 1992. As at 31 March 1992 the commission held 21 057 tonnes of quota. It is the commission's intention to transfer its assets to iwi on the basis of a formula it is developing. The transfer is expected to take place after October 1992. The commission therefore sees its role as the:

Prime Minister Bolter announcing Maori fisheries/Sealord deal. From his right are, Justice Minister Doug Graham, and Maori negotiators Matiu Rata, Tipene O'Regan and Dick Dargaville.

  • Extraction of the optimum package of quota from the Crown.

  • Management of its resources so as to maximise the benefits for Maori.

  • Allocation of its resources to those tribes entitled.

The commission consists of seven members and is chaired by Mr Tipene O'Regan.

Aotearoa Fisheries Limited. The Maori Fisheries Act required the commission to establish Aotearoa Fisheries Limited. The commission must also transfer at least 50 percent of everything it receives from the Crown to the company. Subject to the agreement of the company the commission may transfer a parcel made up of quota and money of substantially equivalent value. As at 31 March 1992 the company held 27 433 tonnes of quota.

The company is a wholly owned commercial subsidiary of the commission and a Statement of Corporate Intent clarifies the relationship that exists between the two organisations. The company is the major shareholder in Moana Pacific Fisheries Limited which is one of the largest inshore fishing companies in New Zealand. In 1991 the company paid a dividend of $1 million to the commission.

The company is controlled by a board of directors which is chaired by Sir Graham Latimer. The office of both the commission and the company is located in Wellington.

Rock lobster management. The Maori Fisheries Act established quota management areas for rock lobster. For red rock lobster these areas are based on the current controlled fisheries areas except that 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 Maori Fisheries 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.

Fish catch

Marine. The historically important 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, 1991–92 FISHING YEAR

Species nameQuantity
 tonnes
Alfonsino1 244.5
Barracouta20 503.8
Blue cod1 328.6
Blue moki319.9
Blue warehou3 705.7
Bluenose1 753.1
Butterfish/Greenbone7.7
Dredge oyster763.4
Elephant fish561.8
Garfish0.5
Gemfish2 385.0
Grey mullet759.6
Gurnard3 041.8
Hake4 356.8
Hapuku/Bass/Groper1 122.2
Hoki190 315.0
Jack mackerel37 439.5
John dory761.9
Ling13 602.3
Mixed flat fish2 930.8
Orange roughy32 983.0
Oreo dory18 363.1
Packhorse rock lobster19.8
Paddle crab25.3
Paua1 153.0
Pilchard0.003
Queen scallop77.4
Red cod7 931.6
Rig1631.9
Sardines/Sprats0.2
Scallop604.4
School shark2 320.4
Sea Urchin/Kina/Seae216.8
Silver warehou5 765.3
Snapper7 766.4
Southern Bluefin tuna2.0
Spini rock lobster2 676.6
Squid60175.4
Stargazer2 655.2
Tarakihi5 016.1
Trevally2 603.2
Yellow Eye mullet31.7
            Total438 921.7

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.

Megan Paewai measuring juvenile rock lobster, MAF Fisheries Hatchery, Wellington.

Table 16.15. REGISTERED COMMERCIAL FISHING VESSELS

Type of vesselAt 30 September
1989199019911992
Source: Ministry of Agriculture and Fisheries.
Foreign licensed vessels19811413344
Foreign chartered vessels18518816079
Domestic vessels2 6232 1432 2102 802
Shore fishing permits138......

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 abalone, 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.

Fisheries officer relaying information at checkpoint.

16.4 Fish trade

Exports. The New Zealand fishing industry is export-oriented, with more than 80 percent of the commercial catch being sold overseas in 1991. Significant exports of species in 1991 were: Hoki (49 200 tonnes valued at $156.3 million) which overhauled Orange roughy (14 300 tonnes valued at $138.6 million) as the most valuable resource, the other fish species which topped the $100 million mark was Rock lobster (2800 tonnes valued at $101.8 million), the most valuable shellfish was the GreenShell mussel (10 700 tonnes valued at $42.1 million). The drop in Japan's and the USA's percentage of exports shown in table 16.18 was mainly due to an increase in the EEC's and other Asian nation's interest in New Zealand seafood.

Imports. Total seafood imports were 14 897.9 tonnes costing $61.6 million, the top imports being processed/preserved seafood (10 008 tonnes costing $42.1 million) and shrimps/prawns (628 tonnes costing $8.4 million).

Salmon farm, Marlborough Sounds.

Table 16.16. FISHERIES EXPORTS

Commodity exported1988198919901991
QualityValueQuantityValueQuantityValueQuantityValue
Source: New Zealand Fishing Industry Board.
 tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.
Finfish or wetfish164.2539.0160.4529.2162.2520.8218.0701.0
Rock lobster2.771.02.782.22.783.62.8101.8
Shellfish43.0111.287.4185.645.8140.340.4158.4
            Total209.9721.2250.5797.0210.7744.7261.2961.2

Table 16.17. PRINCIPAL FISH EXPORTS

Species1988198919901991
QuantityValueQuantityValueQuantityValueQuantityValue
Source: New Zealand Fishing Industry Board.
 tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.
Barracouta11.113.99.912.211.816.612.917.5
Hoki28.645.116.636.133.968.849.2156.3
Jack mackerel12.212.510.011.310.710.814.410.1
Mussels6.124.36.928.88.834.210.742.1
Orange roughy19.5169.414.4167.216.7145.214.3138.6
Oreo dory4.615.44.519.35.318.16.224.5
Paua0.514.00.411.80.825.11.137.7
Rock lobster2.771.42.782.32.883.72.8101.8
Snapper5.443.46.752.66.749.46.651.5
Squid34.652.978.7124.934.362.525.247.3
Surimi21.776.719.055.18.219.610.932.8
Warehous5.713.44.211.16.318.85.714.3

Black oreo dory.

Table 16.18. VALUE OF FISHERIES EXPORTS TO PRINCIPAL MARKETS

Country198919901991
ValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exports
Source: New Zealand Fishing Industry Board.
 $(m) f.o.b. $(m) f.o.b. $(m) f.o.b. 
Japan361.044.1279.437.3290.030.2
United States229.028.0208.427.8253.726.4
Australia80.29.886.411.5102.710.7
            Total fisheries exports818.9 748.8 961.6 

Within New Zealand, the trend in recent years has been towards greater fish consumption per capita. 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. The board advises government on sound fishing management policies and practices by providing information, being available for consultation and by direct input into government decision-making. There is also close liaison with the Fishing Industry Training Council, in the provision of industry training at all levels.

Fishing for scallops, Golden Bay, Nelson.

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, 1991–92

CountryYear ended 30 September
FinfishSquidTuna
Source: Ministry of Agriculture and Fisheries.
 tonnes
Korea, Republic of
Russia
Japan38

In the 1991–92 season authorisations were given for the Japanese to operate 38 tuna longliners without tonnage restriction in the southern bluefin tuna fishery, and for Japan to operate 37 vessels in the albacore fishery in the northern regions of the Exclusive Economic Zone. However, only the southern bluefin tuna fleet operated in the zone during the season.

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 item1985–871987–891988–89
 number
Group enterprises394140
Enterprises within these group enterprises646461
Enterprises not within these group enterprises1 9471 9311 903
Activity units (including ancilliaries)12 0452 0211 986
Full time equivalent persons engaged4 4725 085 $(000)4 605
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 engaged percent110,536118,672142,355
      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

Red gurnard.

Contributors

  • 16.1 Ministry of Forestry; Department of Statistics.

  • 16.2 Ministry of Forestry.

  • 16.3 Ministry of Agriculture and Fisheries.

  • 16.4 Ministry of Agriculture and Fisheries; New Zealand Fishing Industry Board.

Special articles

MAF Fisheries; Dianne Tracey.

Further information

Forestry

A National Exotic Forest Description. Ministry of Forestry, 1992.

Economy Wide Census 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

Economy Wide Census 1987. Department of Statistics.

New Zealand Fisheries Technical Report. Ministry of Agriculture and Fisheries.

New Zealand Fisheries Occasional Publication. Ministry of Agriculture and Fisheries.

New Zealand Journal of Marine and Freshwater Research. Royal Society of New Zealand (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

Trucks loading export coal for Japan, China and Korea at the Webb opencast mine, part of Coalcorp's Stockton mine.

New Zealand depends on a sustained supply of energy and mineral resources to ensure the continued operation of the economy, the maintenance of industrial and commercial activity, and the well-being of its citizens. New Zealand is not self-sufficient in a number of key energy and mineral commodities and the shortfall is made up by imports.

The energy and mineral sectors have undergone a series of structural changes over recent years. A strong focus on direct government involvement in the energy sector characterised the early 1980s, but starting in 1987 there has been a move away from direct state management of the country's energy sector. This trend has continued over the last year with the Government implementing its previously announced intentions to establish competitive energy markets through the Energy Sector Reform Bill and to streamline management of the Crown's energy and mineral resources through the Crown Minerals Act 1991.

The provision of policy advice to the government on the operation of energy markets, energy supply and demand, energy efficiency, management of Crown-owned mineral and energy resources, and safety in the mining and energy sectors is the responsibility of the Energy and Resources Division of the Ministry of Commerce. The ministry also has operational responsibilities in these areas.

17.1 Energy sector

Energy policy

The key element of the Government's energy policy is to ensure the continuing availability of energy to commercial, industrial and household consumers at the lowest cost to the economy as a whole, consistent with sustainable development. To this end, the Government has taken a range of initiatives designed to ensure greater efficiency of energy use, to increase competition in the energy sector, and to provide greater flexibility in meeting consumer requirements.

Recent initiatives include passing the Energy Companies Act to corporatise electricity supply authorities and the gas trading activities of local authorities and energy boards. The Act took effect from 1 July 1992. The Act requires these enterprises to be transformed into companies by 1 April 1993. The Energy Sector Reform Bill (No. 2) is progressing through Parliament. This Bill abolishes area franchises for gas and electricity markets and establishes provisions for introducing information disclosure requirements for these industries. The Bill also contains provisions designed to streamline the safety regimes for the gas and electricity industries.

Energy Resources Monitoring and Conservation Authority. In June 1992, the Government announced its intention to establish the Energy Resources Monitoring and Conservation Authority (ERMCA) to promote energy efficiency and conservation. ERMCA's role will be to develop, implement and promote strategies for energy conservation, to advise on these strategies, and to monitor existing energy sources and their use. ERMCA will also investigate potential new energy sources and take into account the long and short term economic, social and environmental impacts of such strategies.

Oil security. The importance of oil security was highlighted during the 1990–91 Gulf crisis when measures were taken to boost local oil production. This was done in conjunction with International Energy Agency emergency procedures. While the crisis did result in price rises, these were not as great as in some other countries nor were there any problems with continuity of supply. International oil markets are now more flexible than they were in the 1970s, resulting in a reduced likelihood of major disruptions to imported oil supplies. Thus, while oil supply security is still an important issue, it is unlikely to be as crucial as it was in the 1970s.

Unless significant new oil and gas discoveries are made, New Zealand's long term self-sufficiency in hydrocarbons is expected to decline after 2005 as known oil and gas reserves run down.

Climate change. The energy sector contributes over 80 percent of man-made carbon dioxide emissions in New Zealand. Early in its term, the Government announced a planning target of reducing total carbon dioxide emissions to 80 percent of their 1990 level by the year 2000. In 1992, following New Zealand signing the United Nations Framework Convention for Climate Change, the Government announced a programme of measures to curb carbon dioxide emissions and further low cost measures are under investigation. A key concern is that New Zealand should play its part in reducing global greenhouse gases while maintaining its competitiveness in world markets.

Review of energy research. The Ministry of Research Science and Technology has recently undertaken a review of priorities for public good funding of research which included a review of energy and minerals resource based research. The funding priorities review noted the particular importance of energy research and the need to focus research within the Government's energy policy framework. The review recognised the contribution that public good research can make to support the Government's energy goals and consequently recommended increased energy research spending.

Energy efficiency. Energy is a significant cost to households, industry and commerce. When properly managed, increasing the efficiency of energy use can reduce the cost of energy to the end user and from a national point of view, reduce demand. Similarly, improving the efficiency with which energy is produced and delivered will reduce the amount of primary energy required to meet a given level of demand. Thus energy efficiency can reduce the environmental impacts of energy production and use, and result in a slower rate of depletion of non-renewable energy resources.

Trends in primary energy supply and energy consumption

“Primary energy” is that energy obtained from natural sources, which means that 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 wells in Taranaki and so on. Primary energy refers to all energy used in the economy including that lost or used in energy transformation from, for example, energy in gas to electricity. The proportion of total energy supply dependent on oil imports decreased during the mid-1980s (16 percent in 1986) but has gradually risen since (23 percent in 1991).

Petajoules are used to measure energy in a number of tables in this chapter. A joule is a measure of work done or energy expended and allows for standardised comparisons between different forms of energy and between energy supplied or consumed in New Zealand compared with overseas. A petajoule (PJ) which is 1015 joules or a terajoule (TJ) which is 1012 joules are commonly used.

Table 17.1. TRENDS IN PRIMARY ENERGY SUPPLY

Calendar yearCoalWoodxImported oil + productsIndigenous oilGasElectricity from hydro + geothermalTotalImported oil as percentage of total
Source: Ministry of Commerce.
 petajoules
1,97462.817.7180.68.014.558.8342.452.7
1,97559.118.5194.18.316.064.0360.053.9
1,97660.519.1153.022.037.559.7351.843.5
1,97757.721.4153.731.563.656.6384.540.0
1,97853.421.7136.226.859.760.1357.938.1
1,97947.421.1149.917.939.969.6345.843.3
1,98050.822.6154.215.736.973.2353.443.6
1,98151.423.9130.721.045.174.1346.237.8
1,98250.923.3119.332.379.969.2374.931.8
1,98356.021.9122.831.586.474.4393.031.2
1,98452.722.2121.040.8109.777.1423.528.6
1,98552.124.0116.231.4140.174.2438.026.5
1,98657.722.975.458.6168.583.0466.116.2
1,98751.422.998.259.4162.782.3476.920.6
1,98849.424.575.961.7178.286.0475.716.0
1,98951.325.795.557.0182.886.3498.619.2
1,99049.725.8113.347.0181.789.6507.122.3
1,99143.827.4120.046.6197.788.0523.522.9

For hydro and geothermal electricity, the measure of primary energy is the electricity generated. This is justifiable for hydro-electricity which has a high degree of generation efficiency but is not so justifiable for geothermal generation of electricity where a large proportion of energy is wasted. However, this wasted energy is low grade and for the sake of simplicity is not shown.

Consumer energy is that energy used by final consumers and excludes energy used or lost in the process of transforming energy into more usable forms and in bringing the energy to the final consumers. Historical consumer energy use based on solid fuels (coal and wood), oil, gas and electricity is shown in table 17.2, while how primary energy was used to meet demand in the major sectors of the economy during 1991 is shown in terms of petajoules in table 17.3. The same data is shown expressed in terms of percentages of total energy demand in table 17.4.

Table 17.2. TRENDS IN CONSUMER ENERGY USE

Calendar yearSolid*OilGasElectricityTotal

* Solid fuels include wood.

Source: Ministry of Commerce.

 petajoules
1,9545559216132
1,9644890230170
1,97441151758257
1,984401404883311
1,985351365484309
1,986411415388323
1,9874214054105341
1,988551475294348
1,989571544497352
1,990701624099371
1,9916916041102372

PRIMARY ENERGY SUPPLY

Table 17.3. ENERGY SUPPLY AND DEMAND, 1991

 Source of energy
Solid fuelOilGasHydro + geothermalElectricityTotal
Source: Ministry of Commerce.
 petajoules
Supply
Indigenous production89.492.4198.2172.2552.2
Imports0.1172.7172.8
Exports18.366.484.7
Stock change1.60.42.0
International transport32.332.3
            Total, primary supply71.2164.8197.9172.2606.0
Transformation
Electricity generation−2.3−69.1−156.4113.3−114.5
Liquid fuels production19.4−47.8−28.4
Losses and own use−2.1−9.1−2.3−6.0−10.7−30.2
            Total, transformation−4.410.2−119.2−162.4102.6−173.2
Non-energy use−12.7−36.0−48.7
            Consumer energy (calculated)66.8162.342.69.8102.6384.1
Discrepancies−2.12.32.00.83.0
            Consumer energy (observed)68.9160.040.69.8101.8381.1
Demand
Agriculture0.713.72.516.9
Industrial56.810.429.47.240.6144.4
Commercial3.67.04.92.620.338.4
Domestic7.70.73.638.250.2
Transport0.1128.22.70.2131.2

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.

  • Direct use of geothermal energy (domestic consumption is included in the commercial/agriculture figure).

  • Solid fuel includes coke, peat and wood (wood is estimated).

Energy supply—the supply data is compiled from monthly returns. Other solid fuels and geothermal are estimated. Approximately 80 percent of geothermal is used as an input to electric power generation. LPG production is included in indigenous oil production.

Total primary energy supply—total primary energy is that amount of energy available for use in New Zealand for energy conversion and end-use. Primary energy = Indigenous production + imports — exports ± stock change — international transport.

Transformation—transformation is the input of fuels to processes which transform them into other fuels. Electricity generation (these are primary inputs to power plants. Efficiency for gas plants is 33 percent, coal 30 percent, assumed efficiency for geothermal is 10 percent.) Electricity produced appears in the electricity column as secondary production.

Energy demand—consumption data is estimated from information about where and how energy is used. Transport refers to on-road transport and rail transport. Motor gasoline includes alternative fuels. Total end use of gas is estimated from information about where and how energy is used. Total electricity generation in this table includes estimates of the generation by private plants and supply authorities.

Table 17.4. ENERGY USED BY CONSUMER GROUPS, 1991

 IndustryCommerce and agricultureTransport including internationalHouse-holdThermal electricity generation
   percent  
Oil7.237.498.21.40.3
Solid fuel (coal and wood)39.37.80.115.33.1
Gas (natural and manufactured)20.48.91.67.296.6
Electricity (including direct use and geothermal)33.145.90.176.1
            Total100.0100.0100.0100.0100.0

17.2 Electricity

New Zealand is fortunate to have many rivers suitable for generating cheap hydro power. Hydro electricity was first used in New Zealand in the gold mining industry and the first generating station supplying the public with electricity was installed in Reefton in 1887 by the Reefton Electric Lighting Co. The first general government operated station was the Lake Coleridge scheme opened in 1914. The first thermal station was Meremere which opened in 1958.

Three 20 tonne thyristor valves suspended from the ceiling in a valve hall specially built to resist earthquakes, Haywards substation, Lower Hutt. Transpower has spent four years planning and constructing a $570 million upgrade of the national grid system, in a project which extends from the Haywards substation to the Bemore station in the South Island.

The structure of the New Zealand electricity industry has three separate but closely linked tiers; generation, transmission and distribution. Generation of electricity is dominated by Electricity Corporation (ECNZ) which supplies over 95 percent of all electricity. Transmission is carried out by Trans Power New Zealand, an ECNZ subsidiary. ECNZ is a state-owned enterprise, wholly owned by government. Distribution is carried out by supply authorities (local electric power boards and municipal electricity departments of city councils) who buy the electricity from ECNZ and then distribute the power to industrial, commercial and household consumers.

Electricity Corporation of New Zealand. ECNZ dominates the New Zealand electricity market and at present faces little direct competition (table 17.5). ECNZ operates 39 power stations which range in capacity from 3 MW (Megawatts) to 1000 MW. ECNZ's newest power station, Clyde (432 MW), came on stream in 1992 after commissioning was delayed in order to carry out stability work on landslides around the lake margin. The Meremere coal-fired power station was mothballed in October 1991 due to age, operating cost, and asbestos and pollution problems.

Trans Power operates the New Zealand transmission system. Currently a wholly owned subsidiary of ECNZ, it is expected that Trans Power will be established as a separate company to facilitate competition in the electricity market. The high voltage DC link between the South and North Island is being upgraded to raise its capacity from 600 MW to 1240 MW (South to North) and from 200 MW to 800 MW (North to South). Three new cables were laid in 1991, complementing the three original cables laid in 1965.

Electricity generation. The total electricity generated for the year ending 31 March 1991 was 30 858 GWh of which 74.9 percent was generated by hydro stations, 17.3 percent was generated using oil and gas, 6.8 percent was generated using geothermal and the remaining 1 percent was generated using coal. Both hydro and geothermal generation increased over the previous year while oil and gas, and coal generation dropped (table 17.7).

As at 31 March 1991, the Electricity Corporation had 29 operational hydro-electric stations with a maximum capacity of 4764 MW (65 percent of total capacity) while the remaining nine thermal stations had a capacity of 2564 MW (35 percent of total capacity). The high fuel cost and operating costs involved in running thermal stations as compared with hydro, generally means that hydro stations produce a larger percentage of the nation's electricity. A small amount of electricity is generated by the Electrical Supply Authorities (ESAs) from 23 small plants. These small plants have capacities ranging from 0.2 to 53 MW and a total capacity of 317 MW. Many large industrial concerns have their own oil-based generating capacity which is used for emergency generation.

Table 17.5. ELECTRICITY CORPORATION OF NEW ZEALAND PROFIT STATEMENT

ItemYear ended 31 March
19911992
Source: Electricity Corporation of New Zealand.
 $(000)$(000)
Income1,584,3271,631,484
Expenses, excluding finance costs740,646795,504
Profit before finance and taxation843,681835,980
Finance costs161,807214,074
Profit before taxation681,874621,906
Taxation173,164160,638
Profit after taxation508,706461,268
Less, Extraordinary item105,10053,796
Profit after taxation and extraordinary item403,606407,472
Less, Dividends314,247335,034
Transfer to reserve7,612−16,237
Total appropriations321,859318,797
Retained earnings for the year81,74788,675
Opening retained earnings143,649225,396
Closing retained earnings225,396314,071

Table 17.6. ELECTRICITY CORPORATION POWER STATIONS

StationInstalled capacity at 31 March 1991Static headEnergy generation year ended 31 March
Number of unitsMW*1990 1991*1992

* ‘In-situ maximum’ rating.

Source: Electricity Corporation of New Zealand.

Hydro  metres kWh(million) 
Arapuni816053551 844905
Aratiatia38434373393353
Atiamuri47925334340304
Karapiro39630583620565
Mangahao51927388102109
Maraetai1036061952980273
Matahina27261306315882
Ohakuri411235454468424
Rangipo2120206575543553
Tokaanu4210208804820792
Waikaremoana—
      Kaitawa237135585525 
      Piripaua237113488
      Tuai358206255
Waipapa35116278 284531
Whakamaru41003855157627
Arnold23132725979
Aviemore4220379569582 445
Benmore6540922 3712 498195
Cobb632594198174222
Coleridge93514921422186
Highbank12510173804 371
Manapouri76001774 0614 4401 290
Ohau ‘A’4248581 2881 3281 054
Ohau ‘B’4212481 0521 0791 062
Ohau ‘C’4212481 0591 0811 557
Roxburgh8320461 4861 494158
Tekapo ‘A’12530162154953
Tekapo ‘B’2160146928948 
Waitaki710521514555536
            Subtotal, hydro1244 744...20 823 21 84521 369
Thermal
Huntly41,000...4 562 5 1525 525
Marsden2114...−4−8−5
Meremere6112...16121−3
New Plymouth5575...7123041 033
Ohaaki5106...624851891
Otahuhu690...−12−15−18
Stratford4198...54188372
Wairakei9153...1 1811 2171 174
Whirinaki4216...111
            Subtotal, thermal452 564...8 178 7 7118 970
            Total1697 328...29 002 29 55630 339

Tekapo B power station high and dry on the foreshore of Lake Pukaki, 1992. The level of the lake usually covers the entry ramp pilings to the right of the power house.

Table 17.7. TOTAL ELECTRICITY GENERATION AND DISPOSAL

Year ended 31 MarchElectricity CorporationSupply authoritiesOther sourcesTotalSold retailNon-productive
Source: Ministry of Commerce.
 GigaWatt hours
1,98625 9851 0191327 01724 2752 742
1,98726 9901 163728 16025 3492 811
1,98827 4751 1981328 68625 8052 883
1,98928 1781 2811329 47226 6982 774
1,99028 9751 1493330 15727 3652 792
1,99129 5831 1868930 85827 8193 039

Table 17.8. ELECTRICITY SUPPLIED BY ELECTRICITY CORPORATION

Year ended 31 MarchHydroGeothermalFossil fuelsTotal
Source Ministry of Commerce.
 GigaWatt hours
1,98618 6591 1096 18925 957
1,98720 5821 1745 19226 948
1,98820 8911 1835 42427 498
1,98921 9001 2375 05228 189
1,99020 8231 8056 37429 002
1,99121 8452 0685 64329 556
1,99221 3692 0656 90530 339

Electrical Supply Authorities. The Energy Companies Act 1992 provides for the corporatisation and resolution of the ownership of the 48 electrical supply authorities (ESAs) which operate New Zealand's distribution and retail electricity system. These consist of 37 electric power boards and 11 municipal electricity departments. Electric power boards are special purpose local authorities while municipal electricity departments are owned by district and city councils.

The new electricity companies are to be established by 31 March 1993. The ESAs are in the process of deciding how their ownership will be structured. Mergers and takeovers are possible. It is expected that the restructuring will promote favourable outcomes for consumers and the economy and provide a basis for further investment in the energy sector. The electrical supply authorities generally buy electricity in bulk from ECNZ and then on-sell it to individual customers. Some ESAs have their own generation capacity, meeting part of their needs. ECNZ also sells power directly to several major industrial users.

Rural Electrical Reticulation Council. The council has in the past subsidised the cost of electrical reticulation or small scale private generators in remote areas. This was funded by a levy on electricity sales. The extension of supply is now essentially complete and the subsidy scheme is to be ended. The council will have a transitional role in monitoring the impact of the electricity reforms on the rural community.

Hydro supplies. The New Zealand electricity system is dominated by hydro-electric power. To minimise hydro spill, the total capacity of the system is 146 percent of the reserve peak capacity. The normal reservoir capacity is only around 13 percent of the annual electricity demand, that is equivalent to approximately six weeks of average national demand. The South Island normally has spare hydro capacity which is transmitted to the North Island through a high voltage DC link. Historically, the generation system was planned to provide a 7 percent margin of supply over consumption for years when drought reduced available hydro power to 85 percent of the mean supply (a 20 year drought).

In the 1991 and 1992 winters very low inflows into the South Island hydro lakes occurred. Consequently an increased proportion of electricity was generated by geothermal and thermal plants in the North Island, and some oil fired generating capacity was also used. The DC link was used to convey power from the North Island to the South Island reversing the normal direction of flow. High levels of voluntary savings significantly reduced demand during the hydro shortage. ECNZ also negotiated an agreement with Comalco, which is a major electricity user, whereby the company reduced its normal demand. Special legislation was passed to allow the lowering of Lake Pukaki below the minimum normally available to allow extra generation, but it did not prove necessary to draw on these additional reserves of water.

Electricity markets. Use of electricity is widespread across the New Zealand economy (table 17.9). Industrial users account for 40 percent of the total demand with household demand 37 percent of the total. Commercial usage is just under 20 percent, farming accounts for 2.4 percent, public lighting around 0.5 percent and rail and bus transport the remaining 0.2 percent.

Table 17.9. ELECTRICITY MARKETS

Year ended 31 MarchDomestic*IndustrialCommercialFarmingPublic lightingRail and bus tractionTotalElectricity account holders

* Includes domestic water heating.

Source: Ministry of Commerce.

    GigaWatt hours    
1,9869 08010 0384 4175781323024 2751 462 735
1,9879 42410 4724 7225671333125 3491 488 253
1,9889 42310 7324 9165661383025 8051 509 209
1,9899 51011 0655 2506861375026 6981 528 550
1,9909 82411 1875 4616551166627 3091 547 573
1,99110 26411 2005 4966871106127 8181 581 879

17.3 Fossil energy supplies

New Zealand has a wide range of energy resources ranging from coal and hydrocarbons to hydro-electric potential, geothermal energy, wind and solar radiation. Both hydrocarbons and coal resources are not renewable within the human time scale and geothermal resources can only be considered a renewable resource if extraction of energy balances the geothermal systems ability to recover through natural heatflow. Current exploitation of the resource is on a non-renewable basis.

Crude oil, condensate and gas

Crude oil is the primary fuel source in New Zealand and is the basis for most of the country's energy consumption for transportation. New Zealand does not produce enough oil and condensate to meet existing demand and some that is produced can obtain a better price overseas and so is exported. As a consequence, there is a continuing need for imports. Natural gas is New Zealand's largest hydrocarbon resource, but because of constraints in its transportation, its use is largely confined to the North Island. Natural gas has less value then crude oil and cannot be transported significant distances without either condensing (CNG) or liquefying (LNG).

All of New Zealand's current hydrocarbons are produced from fields in the Taranaki region. Five fields were producing during 1992 (Kapuni, Maui, McKee, Kaimiro, and Waihapa) and a further seven fields are under appraisal (Ahuroa, Tariki, Ngaere, Kupe, Ngatoro, Ohanga and Ohai).

In the 1991 calendar year, natural gas production was 6290 MMm3 (million metres3), up from 6003 MMm3 (million metres3) in 1990. Natural gas was produced from the Kapuni, Maui, McKee, Kaimiro and Waihapa fields with production dominated by Maui at 68 percent of the total production. Around 27 percent was produced by Kapuni, and less than 2 percent produced by both McKee and Waihapa. Natural gas production from Kaimiro is less than 1 percent of the total. Condensate production was 885 807 tonnes slightly down on the 894 448 tonnes produced in 1990. Condensate is produced from the Maui and Kapuni fields, with Maui dominant with nearly 75 percent of the total. Crude oil production was 963 583 tonnes, significantly up on the 872 063 tonnes produced in 1990. Crude is produced from the McKee, Kaimiro, and Waihapa fields with Waihapa dominating production with nearly 55 percent of total crude production. The McKee field is the second largest producing 44 percent of the total, while Kaimiro and Stratford both produced less than 1 percent of the total.

A second production platform for the Maui field (“Maui B”) has been positioned off the Taranaki Coast. When operational, this drilling platform will operate as an unmanned facility, connected by a pipeline to the main Maui A platform. In June 1992 a 2500 tonne topsides module was installed on the anchored substructure, and a 15 kilometre pipeline was laid to the Maui A platform.

The average daily production of crude oil, condensate and natural gas production and currently identified recoverable resources are set out in tables table 17.10 and table 17.11.

Construction platform, the “Balder”, linking Maui A and Maui B.

Table 17.1. PRODUCING OIL AND GAS FIELDS

FieldOil/CondensateGas
Estimated recoverable reservesEstimated remaining recoverable reservesApproximate average daily productionEstimated recoverable reservesEstimated remaining recoverable reservesApproximate average daily production

Note: Remaining recoverable reserves quoted here are calculated prior to 31 December 1991.

Source: Ministry of Commerce.

 Million barrels(MMB)barrels/day Billion ft3 (BCF)Million ft3 (MCF)
Kapuni 17.35 500 56531
Maui12784.0315 5004 8702 341152
McKee3611.68 80012510313.3
Kaimiro  190  1.1
Waihapa21.1511.510 44025.114.211.8

Table 17.11. RECOVERABLE RESOURCES IN GAS AND OIL FIELDS UNDER APPRAISAL

FieldDiscovery WellYear discoveredOperatorEstimated recoverable gasEstimated recoverable oil/condensate

Note: Recoverable reserves quoted here are calculated prior to 31 December 1991 by the Ministry of Commerce. They have been compiled from various sources and are continually being re-evaluated.

Source: Ministry of Commerce.

StratfordStratford-11,982Petrocorp Exploration Ltd  
TarikiTariki 11,986Petrocorp Exploration Ltd52.8 BCF1.96 MMB
AhuroaAhuroa-11,986Petrocorp Exploration Ltd23.68 BCF0.68 MMB
KupeKupe South-11,986TCPL Resources Ltd215 BCF35 MMB
ToruToru-11,990Resources Ltd TCPL71 BCF7.5 MMB

Industry

Petroleum imports and refining. About a third of New Zealand's net petrol needs are derived from the synthetic petrol plant at Motunui. The Motunui plant uses Maui natural gas to make petrol which can be used directly by some vehicles. Further processing is necessary, however, to make the petrol suitable for use in vehicles with high compression motors. This synthetic petrol is sold to the highest bidder and is often exported.

Most of the balance of New Zealand's petrol needs are produced at the Marsden Point oil refinery which is New Zealand's only oil refinery. The main refinery feedstocks are imported crude oil, and indigenous gas condensate and crude oil. Locally produced hydrocarbons make up 30 to 40 percent of the refinery's intake. These consist of the condensates derived from the Maui and Kapuni fields, and crude oil produced from onshore fields in Taranaki, chiefly McKee and Waihapa. Most of New Zealand's crude oil imports come from Saudi Arabia, the United Arab Emirates and Indonesia. Refined petrol is imported to make up any shortfall in supply. Some refined products are exported from New Zealand, chiefly to supply international shipping and aircraft. Use of the refinery is maximised, resulting in the refined product exports of around 20.7 PJ, which is equivalent to 12 percent of the volume of local consumption. Hydrocarbon production, imports and exports are summarised in table 17.12.

Table 17.12. CRUDE OIL AND CONDENSATE, PRODUCTION AND TRADE

YearCrude oil and condensate
New Zealand productionImportsTotal*Exports

* Total indigenous supply and imports prior to exports.

Source: Ministry of Commerce.

 petajoules
1,98661.5048.65110.158.38
1,98758.69102.82161.514.66
1,98870.66112.81183.4714.46
1,98979.21137.90217.1127.56
1,99081.63143.53225.1640.24
1,99185.28143.84229.1244.88

Use of natural gas. Around 31 percent of the gas produced in New Zealand is used by electric power stations at New Plymouth, Huntly and Stratford. Another 32 percent is used to produce synthetic petrol at Motunui and 13 percent goes to produce methanol at Waitara. Industrial and commercial users consume around 20 percent. There are a large number of domestic users but they only use 2 percent of the gas produced. 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 the industrial and commercial usage. The ammonia-urea plant at Kapuni is a large consumer of Kapuni natural gas. The transport sector directly uses around 1.5 percent of the gas produced in the form of compressed natural gas (CNG).

Distribution. Over 30 percent of New Zealand's total supply of petroleum products is distributed via a refinery owned pipeline linking the refinery with Wiri in South Auckland. The balance is distributed by coastal tankers chartered by the four large wholesalers (Shell, BP, Mobil and Caltex). At the main ports and at Wiri, products are stored in tanks and each wholesaler distributes product to retailers and bulk customers by road tanker.

Natural gas production centred on Taranaki is piped south to Wellington, north as far as Whangarei and also east to Gisborne via Napier and Hastings, and into the central North Island at Taupo. Much of the pipeline is owned by the National Gas Corporation (NGC), The major exception is the pipeline from Oaonui to Huntly which is owned by Maui Development Limited. There are also a number of other short pipelines owned by various companies some of which are operated by NGC. Some gas is shipped to the South Island by tanker.

Table 17.13. GAS PRODUCTION

YearNet natural gas production*Manufactured gas productionTotal

* Excludes reinjected gas, LPG extracted gas flared and production losses.

Source: Ministry of Commerce.

 petajoules
1,986165.110.39165.50
1,987160.090.15160.24
1,988174.660.11174.77
1,989180.580.10180.68
1,990179.670.07179.72
1,991195.86195.86

Workmen laying and welding pipeline.

Table 17.14. NATURAL GAS SUPPLY*

YearTo gas utilitiesOther usersTotal production

* Includes LPG extracted and production losses, gas flared and deliveries to ECNZ, Synfuels and ail other consumers. Excludes reinjected gas and gas undertaking.

Source: Ministry of Commerce.

 terajoules
1,98628 015146 815174 830
1,98727 088141 882168 970
1,98825 669157 954183 623
1,98923 797164 838188 635
1,99022 001166 351188 352
1,99120 830184 520205 350

Coal

Coal is New Zealand's largest energy resource with 8.6 billion tonnes potentially recoverable. The coal resource is relatively well-known because of the New Zealand Coal Resources Survey programme of the 1970s and 1980s. Lignite is located largely in Southland and Otago and dominates New Zealand's recoverable coal resources (82 percent) with sub-bituminous coal comprising 14 percent, and high value bituminous coal located mainly on the West Coast of the South Island comprising less than 4 percent. This is in contrast to current production, of which lignite comprises 6 percent, sub-bituminous coal 66 percent and bituminous coal 27 percent.

The New Zealand coal industry is currently faced with competition from alternative energy sources, particularly for use in electricity generation, and sluggish demand. Production has concentrated on those resources that could be recovered easily or are of particularly high value. The export market for premium grade New Zealand coals has not suffered in comparison with the domestic market and international demand for specialist bituminous Westland coals remains good.

Coal occurs widely in New Zealand. The major areas where coal is found have been divided into seven coal regions (Northland, Waikato, Taranaki, Nelson-Westland, Canterbury, Otago and Southland) with the Waikato, Westland and Southland being the major coal producing regions. The most important producing coalfields, with the class of coal found in each are:

  • Bituminous coal—Greymouth, Buller, Garvey Creek.

  • Sub-bituminous coal—Huntly, Maramarua, Rotowaro, Ohai, Kaitangata.

  • Lignite—Waimumu, Mataura.

Figure 17.1. COALFIELDS

A coal merchant delivering a sack of coal.

17.4 Geothermal energy

Production. Geothermal steam is used for electricity generation in the Wairakei and Ohaaki geothermal power stations, and is also used for direct process industrial heating, and for commercial and household heating. Geothermal waters are also used for recreational purposes and tourism.

Although geothermal systems occur widely throughout New Zealand, only those in the area between Lake Taupo and the Bay of Plenty (15 high temperature fields), and in Northland (Ngawha field) have the potential to provide a significant energy resource. The information that is available indicates that the geothermal resource is extensive and could comprise between 21 100 PJ and 43 000 PJ which could provide between 2150 and 4620 MW of electricity generation capacity.

Table 17.17. GEOTHERMAL RESOURCES OF NEW ZEALAND

Geothermal systemReservoir temperatureAreaInferred available heatEnergy estimates
MinimumMaximumMinimumMaximum

* The Taupo field comprises the Wairaki and Tauhara sub fields which are connected at depth.

 °Csq kmpetajoules megawatts (electricity)
Broadland/Ohaaki265–3075–116001 90060210
Kawerau250–3106–126002 20060230
Mokai280–32412–161 7003 200180340
Ngatamariki270–2806–127001 70080180
Orakeikorako230–28010–127001 70070180
Reporoa240121 0001 000110110
Rotokawa300–33015–182 5003 700270400
Rotorua25010–151 0001 500100160
Taupo*
    Tauhara265–27918–222 2003 100230330
    Wairakei250–271252 1002 800260340
Te Kopia24165005005050
Tokaanu/Waihi25088008008080
Waimangu/Rotomahana26022–302 5003 400260360
Waiotapu220–29516–189002 90090310
Tongariro28015–201 7002 800180300
Ngawha225–32025–501 6009 800701 040
    Total  21 10043 0002 1504 620

17.5 Renewable energy

New Zealand has a high level of what has traditionally been regarded as renewable resources with hydro and geothermal resources accounting for approximately 80 percent of electricity generation. There is increasing interest however, in non-traditional renewable resources such as wind, solar energy, tidal energy, wave energy and biomass.

Wind

Many potential wind farm sites exist throughout New Zealand. The reliability of wind turbines has increased significantly over the past decade and the technology is maturing with declining costs. Modelling work based on five to 12,250 MW wind farms suggests that they could contribute between 1250 MW and 3000 MW installed capacity. This corresponds to a mean output of between 14 and 30 PJ per year.

Biomass

A minor amount of the nation's energy is derived from biomass. Much of this is wood used as a household fuel, or localised use of biogas or charcoal. The use of biomass to supply energy in the form of transport fuels has been investigated in New Zealand. Although biomass derived from New Zealand's exotic forests could potentially supply around 200 PJ per year, studies have shown that it is currently uneconomic compared with other alternatives.

Solar

Solar energy can be used to provide direct heat to households and commercial buildings and can provide electricity via photovoltaic cells. Solar generated electricity is employed in New Zealand on a very small scale mainly to provide power for small electronic installations in remote sites, for example, water level recorders on rivers. Large scale solar generated electricity remains less economic than more conventional forms of power but rapid technological advances are being made and pilot plants are now operating in several countries.

Conversion of solar energy into electricity may become viable in the future but utilisation of the energy from the sun for heating is available now. Construction of houses to maximise the benefits of the sun can dramatically reduce the need for energy with only a relatively small addition over the cost of a standard house.

Wave

Investigations into wave energy potential in New Zealand during the 1980s suggest that this may be a significant resource. At that time, however, the technology for harnessing this energy was not well enough advanced to justify additional investigations. It is likely that the technology will improve in the future and utilisation of this form of energy may be possible at some stage.

Tidal

Schemes are being investigated overseas which exploit the tidal range of enclosed areas for electricity generation. The relatively low tidal ranges occurring in New Zealand indicate that there is little prospect for harnessing tidal energy.

17.6 Minerals

New Zealand's mineral resources are diverse, but mining is generally on a small scale. Gold, ironsand, clays, and sand and gravel for construction are the main minerals mined. Total production of non-metallic minerals in 1991 was valued at about $208 million, while the value of metallic minerals totalled about $164 million.

Mineral production and resources. The legislative control of mineral production underwent a major change in 1991 when the Resource Management Act and the Crown Minerals Act replaced the Mining Act 1971, the Coal Mines Act 1979, the Iron and Steel Industry Act 1959 and the Petroleum Act 1937 on 1 October 1991. This change involved the devolution in responsibility for the assessment and management of environmental impacts to regional and district councils, and the requirement under the Crown Minerals Act for the development of minerals programmes with the objective of ensuring a fair and financial return to the Crown as owner and the efficient allocation of permits to prospect, explore and mine.

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 mining operations in the North Island; Waikato North Head and Taharoa. The Waikato North Head deposit is mined using bucket wheel excavators. The titanomagnetite concentrate slurry is pumped through a pipeline to the steel works in Glenbrook where it is smelted in locally developed process smelters to produce a good grade of steel. The operation at Taharoa pumps titanomagnetite slurry to ships moored offshore for export to Japan.

Ilmenite and other heavy mineral sands. The beaches between Westport and Greymouth contain heavy minerals including significant quantities of ilmenite. This is a source of titanium dioxide, which is used as a filler and a pigment in paint, paper, plastics, cloth 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. These applications are still being processed.

Gold mining at Martha Hill Mine pit, Waihi.

Gold. Gold is present as alluvial gold in river gravels, as lode gold in quartz veins, and as disseminated gold, finely dispersed through host rocks. The hardrock forms of gold can be mined by underground as well as openpit methods. The majority of current gold mining operations in New Zealand are for alluvial gold, however, approximately 75 percent of total production in 1991 came from three hardrock mines, Martha Hill at Waihi and Golden Cross at Waitakauri in the Coromandel area and Round Hill at Macraes Flat in Otago. The opening of these mines had resulted in a dramatic increase in gold production from 1.216 tonnes in 1987 to 6.7583 tonnes in 1991. Alluvial gold mining occurs dominantly 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 plants 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.

GOLD PRODUCTION

By mining operations

Significant recent developments include the completion of the first full year of production at Round Hill mine at Macraes Flat in Otago; the opening of Golden Cross which poured its first gold in December 1991; and the development of the Nokomai gold mine L & M Mining Limited which started production in January 1992 and may be the fourth largest producer in 1992. Macraes Mining Limited has obtained promising results from drilling at Globe Progress in Reefton.

Silver. Silver almost always occurs with gold in various proportions in the North Island. Historically, the Coromandel area had produced most of the silver mined in New Zealand and with the recent opening of Martha Hill and Golden Cross, production has resumed reaching 11.4 tonnes in 1991.

Tungsten. The principal ore of tungsten in New Zealand is scheelite. It has been mined on a small scale in Otago and Marlborough in the past, but there is no production currently. Scheelite is associated with the gold at Round Hill mine, Macraes Flat but it is not currently extracted.

Other metallic minerals. There are small deposits of manganese minerals in many localities. Uranium minerals occur 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 currently little prospecting. Iron ore, stibnite (antimony), orpiment (arsenic), chromite, monazite, nickel and rutile have been mined in the past and some are presently being investigated. Tin is known from Stewart Island, where less than one tonne has been produced. The aluminium ore, bauxite, is found in Northland where reserves of 20 million tonnes have been identified. Molybdenite occurs widely throughout Northwest Nelson but awaits full assessment. Historically, cinnabar, the principal ore of mercury was produced in limited quantities from sinter deposits in Northland. Interest in platinum in New Zealand recently underwent a brief upsurge with prospecting in Southland in the late 1980s.

Non-metallic minerals

Aggregates. Aggregates are the product of a variety of rocks, gravels and sands used in road works and construction. Aggregates are found throughout New Zealand and are usually mined by small operators to supply local needs. Large numbers of quarries from Kaitaia to Invercargill extracted the 19.7 million tonnes of aggregates, worth around $165 million in 1991. Major uses are for roading, reclamation and construction.

Figure 17.2. METAL MINING AND PROSPECTING

Salt mining.

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 13 600 tonnes, worth about $312,000, was mined in 1991.

Silica sand. Northland, North Auckland and Canterbury have deposits of silica sand which are mined for use in glass manufacture, foundries and the building industry. About 100 000 tonnes worth $2.8 million was extracted in 1991.

Sulphur. Sulphur is mined from Rotokawa near Taupo. In 1991, 451 tonnes were produced, down from 2689 tonnes in 1990. Sulphur is mainly used for fertilizer.

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 fitration), barite (industrial uses include glassmaking and fillers), asbestors (building material), feldspar (glassmaking, ceramics, enamels), magnesite (used in agriculture), mica (used in electronics), phosphate (fertiliser), and wollastonite (insecticide, paper, asbestos substitute and plastics production). Pumice and sulphur are also extracted at present.

Mining and quarrying industry statistics

The Department of Statistics' five-yearly Census of Mining and Quarrying has provided broad economic data on the industry. 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 17.19. COAL MINING: NZSIC DIVISION 21

Statistical item1985–861986–871987–881988–89

* 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 engaged2 0132 0401 1371 032
 $(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 liabilties..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 17.2. CRUDE OIL PETROLEUM AND NATURAL GAS: NZSIC DIVISION 22

Statistical item1985–961986–871987–481988–89
 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 engaged1 014689765741
 $(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
 number
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
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

Shingle quarrying.

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 17.21. 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 engaged2 7453 1632 8592 934
 $(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
 −8,240
Net profit before tax after deducting, working proprietors/partners salaries and wages44,853(R)39,62928,136====
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

  • 17.1–17.5 Ministry of Commerce.

  • 17.6 Ministry of Commerce; Department of Statistics.

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).

Wave Power Generation. Ministry of Energy, 1988.

Wind Energy Resource Survey of New Zealand. New Zealand Energy Research and Development Committee, 1987.

Electricity Corporation of New Zealand Limited. Annual Report, 31 March 1992.

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.

Key Statistics. Department of Statistics (monthly).

Mineral Resources of New Zealand. Ministry of Commerce, 1991.

New Zealand Annual Mining Review. Ministry of Commerce.

Report of the Ministry of Commerce (Parl. paper G. 40).

The Coal Resources of New Zealand. Ministry of Energy, 1988.

Chapter 18. Manufacturing

Woman carworker, Nissan Factory.

Manufacturing environment

Since 1984, the substantial programmes of reform and restructuring undertaken by successive governments have had a major impact on manufacturing. A mix of macroeconomic and microeconomic measures has helped to reduce the costs of doing business and to improve the international competitiveness of all exporters. Since 1988, in particular, the various economic reforms have begun to generate positive results for many manufacturers, particularly the expanding number of those which are increasingly export-oriented. This contrasts with the experience of those which have focused on the generally sluggish domestic market.

‘Closer Economic Relations’ with Australia have been an important boon to manufactured exports to Australia. Since 1990, all products of New Zealand origin have been able to be exported to Australia duty free. Many New Zealand exporters have achieved success through treating Australia as an extension of the domestic market.

Over recent decades, New Zealand manufacturing has developed in two main phases. From 1960 to 1980, the sector expanded strongly under the combined stimulus of import protection and government export incentives. The development of manufacturing was a major component of the policies of full employment and economic diversification of successive governments.

In the 1980s, policies were influenced by new approaches to economic development. Import protection and fiscal incentives were reduced progressively (the last remaining import licences—on certain types of apparel—expired on 1 July 1992). The sector was accordingly transformed by major adjustments and refocussing. In 1991–92, there have been indications of rising confidence in manufacturers, and for many, a resurgence of exports.

Small firms make up a significant proportion of the manufacturing sector. In 1991 companies employing less than 50 employees produced 85 percent of manufacturing output and represented 67 percent of the manufacturing workforce.

Below is a brief description of some of the major secondary industries in New Zealand. Others, such as meat processing and forest products, which are among our major export earners, are described elsewhere.

Aluminium. New Zealand Aluminium Smelter Limited's Tiwai Point smelter has an annual production capacity of 244 000 tonnes of ingots. The smelter is jointly owned by Comalco Industries Pty Ltd of Australia and Japan's Sumitomo Alumium Smelting Co Ltd. It is a significant export earner. The smelter's output for 1992 was reduced when it shut down one of its three potlines temporarily during the winter electricity shortages.

Chemicals. During 1992, a number of policies affecting the use of industrial chemicals were modified to afford greater protection to the environment. The partial ban on the use of organotin anti-fouling coatings was made absolute, reflecting the development of multipurpose copper-based alternatives. This ban will help to prevent the inadvertent poisoning of marine life.

Timber treatment chemicals, such as PCP, are no longer used in New Zealand but their accumulation in and around major mills poses environmental problems. A government-appointed task force reported in August 1992 on the significance of site contamination. Government and private interests are working together on the formulation of a balanced control programme.

Electronics. Prior to 1982, consumer electronic goods represented 66 percent of the value of electronics production in New Zealand. With some notable exceptions, the sector tended to be dominated by the local subsidiaries of multinationals and their brands. The government provided tariff assistance and quantitative controls on imports. The proportion of domestic added value in non-consumer electronic products was significantly higher than in consumer products, and export growth in the non-consumer sector increased by 45 percent between 1978 and 1981.

Cooper with 5000 litre barrel, Christchurch.

The main thrust of the 1982 New Zealand Electronics Industry Development Plan was to phase out the production of consumer electronic products with their high effective rates of assistance, and favour industrial, commercial and communications equipment that is competitive in export markets. By the mid-1980s, minor restructuring had occurred and it was perceived both within industry and government that there was a need to accelerate the pace of change. Consequently, the plan was reviewed in 1986, the major outcome being the removal of import controls by October 1987 and a phasing down of “Normal”, or non-preferential, tariffs to reach 25 percent by 1990. By 1991, the main consumer items still being manufactured were whiteware, plus a few niche market products. In the whiteware area, growth has been sustained by the development of innovative designs and production techniques.

Strong growth has been enjoyed in the agricultural technology, health, commercial/industrial and professional radio and communications sectors. Growth in these areas is attributable to New Zealand's pre-eminence in associated technical fields such as agriculture. However, the diversity of products in this sector indicates that expertise is not confined to the traditional fields.

A need for research and development support is regarded as essential. The creation of the new Ministry of Research, Science and Technology in 1990 has gone some way towards meeting this need.

Engineering. The most significant contribution to growth in the field of engineering has been the government's decision to commission two ANZAC frigates, in partnership with the Australian government. The ANZAC Ship Treaty was signed between New Zealand and Australia in December 1989. The treaty provides for the construction of eight ships for the Royal Australian Navy and two ships for the Royal New Zealand Navy. The ships will be constructed in Australia, but the treaty offers New Zealand industry the opportunity to bid for approximately A$585 million in frigate construction work and offsets. Although this is a 15 year project, by July 1992 New Zealand manufacturers had tendered successfully for NZ$138 million of project and offset work.

Environment. A large party of New Zealand representatives travelled to Brazil in June 1992 to participate in the United Nations Conference on Environment and Development (UNCED). Headed by Rob Storey, Minister for the Environment, the party comprised representatives from government, industry, Maori and environmental organisations. The Maori Queen, Dame Te Arikinui Te Atairangikaahu, attended the conference as a member of the official party.

The conference reviewed many ways in which the international community can develop a global partnership that achieves sustainable development and a higher quality of life. During the conference particular emphasis was placed on evolving an integrated approach to the sound management, conservation and utilisation of global resources for the benefit of all people.

Important environmental issues like biodiversity, resource depletion and the greenhouse effect have implications for the costs associated with manufacturing and for the production methods employed.

Food and beverages.

Regulations—In an increasingly competitive environment, food manufacturers, distributors and exporters are faced with the challenge of improving their efficiency. Discussions with government agencies have centred on reducing the compliance costs of regulations which control labelling, product composition, processing practices, factory construction and hygiene. Examples of this are the adoption of industry codes or guidelines, speeding up amendment procedures and reviewing differences between domestic and overseas regulations.

Exports—Like the primary dairy and meat industries, the food processing sector is a major export earner. Because of their importance, and the potential gain to the economy, New Zealand devotes much effort to the reduction of barriers to trade in such goods—by negotiations under the GATT (General Agreement on Tariffs and Trade) and ANZCERTA (Australia-New Zealand Closer Economic Relations Trade Agreement—CER), for example. The object is to ensure that New Zealand products may compete in overseas markets without having their prices inflated artificially by unnecessary controls.

Wine—The New Zealand wine industry is enjoying considerable export success. Estimates for the year to June 1992 suggested sales of 7.5 million litres, up from 5.6 million litres for the previous year.

Promoting strong export growth, the wine industry has devised a system of regional denominations. Regional denomination is a quality assurance system which establishes rules for labelling wine to show the country, region, district and vineyard from which it derives. This system is compatible with European practice and provides a basis for formalising an agreement with the European Community.

On the domestic scene, a legislative amendment allowed wineries to sell their products on Sundays, encouraging regional tourism. More supermarkets are taking advantage of off-licences to include wine in their range of products. Supermarkets sold 28 percent of the wine consumed in New Zealand in 1991–92. Total domestic consumption was 43.5 million litres, up 5 percent on the previous year.

Factory of Wellington ice cream manufacturer, Mel-O-Rick Products, winner of the eta Award for its energy efficient blast freezer.

Motor vehicles and components. The New Zealand motor vehicle industry comprises the assembly of imported basic CKD (Completely Knocked Down) packs supplemented by a range of locally made components. The companies which assemble motor vehicles in New Zealand are: Nissan, Vehicle Assemblers of New Zealand (Ford and Mazda), Toyota, Mitsubishi and Honda.

Total automotive exports (the majority of which come from the components sector) in 1991 were some NZ$145 million, the biggest market being Australia (NZ$101 million). Major exports are alloy wheels, tyres, electrical wiring harnesses, batteries, exhausts and springs.

There is a growing business in restoring classic and vintage vehicles and in the manufacture of kitset cars. A number of these vehicles, in particular restored Jaguars, are exported to Japan.

A Normal ad valorem tariff of 35 percent is levied on all cars imported from non-preferential sources. Australian cars are imported duty-free, and imports for Great Britain and Canada pay lower rates. This Normal tariff will reduce to 25 percent by 1 July 1996. In addition, specific duties were introduced in 1991 as an alternative to the ad valorem tariff (when there are alternative rates of duty, the rate payable is that which yields the higher return). The introduction of the alternative specific rates of duty was a response to problems associated with the undervaluation of imported used vehicles. The duties amount to $1,300 on imported used cars up to 1000cc and $1,500 for those over 1000cc (or 35 percent, as the case may be).

Tyres. New Zealand has two tyre manufacturers which supply to both the car assembly industry and the replacement market, and export a sizeable portion of their production. A Normal tariff of 22.5 percent is levied on tyres imported into New Zealand. This will reduce to 15 percent by 1 July 1996. For reasons of safety, all tyres imported into the country have to be manufactured to an international recognised standard, and must display brand names or other like markings.

Paper. In mid-1991, the Kinleith mill operated by NZFP Pulp & Paper Limited, a subsidiary of the Carter Holt Harvey Group, completed a rationalisation programme. This involved ending production of machine finished printing and writing papers and machine glazed bag and wrapping papers. The rationalisation achieved more efficient use of the plant and resources available at Kinleigh by concentrating on the production of kraft linerboard, sack kraft and market pulp, most of which was destined for overseas markets. At the same time, the company embarked on a programme to upgrade production at its Mataura mill, which manufactured a range of printing and writing, packaging and specialty papers. The upgrade increased the mill's capacity to recycle waste paper and expanded the range of papers which could be made from pulp using recycled fibre.

Female furniture maker.

Since machine finished paper production at Mataura was not sufficient to compensate for the changes at Kinleith, a higher proportion of the New Zealand market for printing and writing papers had to be met by imports. To facilitate access for the widest range of papers at competitive prices, the Government adjusted the tariff regime for the main grades of papers affected by the changes.

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 pro-active 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.

Software. New Zealand software manufacturers are in the forefront of export growth. The Software Exporters' Association has 155 members, many of whom export to Australia. A concerted drive is under way to increase software exports to Australia ($2.2 million in 1991–92).

Steel. There are two major enterprises in this sector. Pacific Steel Limited produces wire rod and bars. BHP New Zealand Steel Limited—as it is known since BHP purchased the controlling share from the Helenus consortium—produces billet slabs and ingots. Its complex at Glenbrook also has hot and cold rolling mills.

Textile, apparel, footwear and carpet sectors. Implemented on 1 July 1980, the Textile Industry Development Plan was intended to enhance the competitiveness and exporting potential of the textile and apparel industries. The tariff structure was revised and market access for imported materials and finished goods liberalised.

Textiles and apparel—in 1988, textiles and apparel were reviewed separately. End-dates were set for import licensing: 30 June 1991 for textiles and 30 June 1992 for apparel. Their 1988–92 tariff reduction programmes were more gradual than those for most other industries. Apparel and textile tariffs were reviewed again in 1991/92 and the tariff decisions are outlined in the table below. In addition, a revised regime of specific (dollar value) duty rates for certain apparel has also been put in place.

Exports of apparel have increased from $30 million f.o.b. in 1988 to $88 million f.o.b. in 1991, most of these exports going to Australia. As a result of the progressive removal of import licensing, and the reduction in tariffs, apparel imports from all sources have increased significantly over the same period, from $85 million c.i.f. to $245 million c.i.f.

The textile and apparel industries remain significant -employers. The range of clothing produced covers all main categories of garments. A substantial proportion of apparel manufacturers are small businesses. Both industries are continuing to adjust to increasing imported competition from a greater product and price range.

Carpet—from 1985 to 1990, import licensing for carpet was gradually phased out. The final Industry Plan review of carpet took place in 1990 and set reducing tariffs for the industry through to July 1996. These were revised by the National Government in September 1991, with the result that carpet has been afforded a more gradual tariff reduction programme and one which is aligned with the Australian tariff regime for carpet.

The two main players in the New Zealand carpet industry, which produce predominantly wool-rich carpet, are Feltex Carpets and Cavalier Bremworth, both based in Auckland.

Footwear—New Zealand has a long-established footwear manufacturing industry. Historically high levels of tariff and import licensing protection were reduced as a result of reviews under the Footwear Industry Development Plan in 1986 and 1990. On 1 July 1991, adults' footwear (the only category still requiring an import licence) was removed from import licence control.

Considerable rationalisation of the industry has taken place since 1986, when the first significant reductions in protection occurred. Many of the firms which remain are now internationally competitive, with 18.6 percent (1 million pain) of domestic production being exported in 1991, compared with 3.6 percent (0.3 million pairs) in 1986. As with apparel, Australia is the destination of a large proportion of New Zealand's footwear exports. The reduction in assistance has led to a significant increase in the volume of footwear imports. Imports in 1991 supplied more than 60 percent (6.7 million pairs) of the New Zealand footwear market, compared with only 18.6 percent (1.9 million pairs) in 1986.

Table 18.1. 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
Textiles26.42524232220
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.

Inventor-exporter Norma McCulloch, holding her latest invention a reusable, hand-held resuscitator. Her other inventions include a multi-purpose vacuum pump (used initially for removing air from bags of food to be frozen), plastic cooking utensils which don't scratch surfaces nor melt in hot oil and a range of special plastic utensils that can be left in the microwave while food cooks, which don't melt, discolour nor give off toxic fumes.

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 18.3 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.

Table 18.2. MANUFACTURING ACTIVITY UNITS AND PERSONS ENGAGED, FEBRUARY 1992

NZSICType of manufacturing Persons engaged size group
0–56–910–4950–99100+Total
3,111Slaughtering and meat processingActivity units13533883053339
  Persons engaged3252362 2732 04321 76626 643
3,112Dairy productsActivity units4810411827144
  Persons engaged81801 0371 3274 9237 448
3113–3122Other foodsActivity units87223333155441 535
  Persons engaged2 2631 6736 4063 9318 90923 182
313BeveragesActivity units82243857156
  Persons engaged2031787783341 2522 745
314Tobacco productsActivity units133029
  Persons engaged018720468558
321TextilesActivity units550881442220824
  Persons engaged1 2336383 0901 5963 1949 751
322–324Apparel and footwearActivity units97512931753221 496
  Persons engaged2 0119386 9033 6753 32616 853
33Wood processing and productsActivity units2 30534441341193 122
  Persons engaged4 8452 4858 0152 7083 27421 327
341Paper and paper productsActivity units6517442222170
  Persons engaged1501301 0611 5856,0849 010
342Printing and publishingActivity units86419830330291 424
  Persons engaged2 0601 4515 6052 0215 45616 593
351Industrial chemicalsActivity units10028481413203
  Persons engaged2531971 0229781 7774,227
352Other chemicalsActivity unit21240103188381
  Persons engaged4652862 2471 2321 5555 785
353Petroleum refineriesActivity units6030211
  Persons engaged150900723828
354Petroleum and coal productsActivity units261100037
  Persons engaged42726300312
355Rubber productsActivity units70153913128
  Persons engaged158105770716961 800
356Plastic productsActivity units242651381613474
  Persons engaged5544703 0171 0592 0987 198
36Non-metallic mineral productsActivity units6358511667849
  Persons engaged1 3686072 1623651 2945 796
37Basic metal industriesActivity units111274448194
  Persons engaged2911969432774 3386,045
381Fabricated metal productsActivity units1 77438941631172 627
  Persons engaged3 8172 8018 1191 9572 56019 254
382MachineryActivity units2 3073273402563 005
  Persons engaged4 8882 3236 0401 74082915 820
383Electrical machineryActivity units450781142117680
  Persons engaged9825522 3831 6283 9969 541
384Transport equipmentActivity units76511313122221 053
  Persons engaged1 5688142 7131 5646 47013 129
385Professional equipmentActivity units657161291
  Persons engaged1385129771434991
39Other manufacturingActivity units838627970986
  Persons engaged1 6504371 48850404079
3Total manufacturingActivity units13 4982 3163 31944236319 938
  Persons engaged29 36016 67366 79430 66685 422228 915

MANUFACTURING TODAY

Employment by industry type

Table 18.3. BUSINESS LOCATIONS AND PERSONS ENGAGED BY INDUSTRIAL CLASSIFICATION, 1989–1992

NZSICType of manufacturing Persons engaged
1989199019911992
3,111Slaughtering and meat processingActivity units321330338339
  Persons engaged30 84728 89126 55026 643
3,112Dairy productsActivity units151144147144
  Persons engaged7 9837 8157 4747 448
3113–3122Other foodsActivity units1 4141 4221 4461 535
  Persons engaged24 10622 83723 11223 182
313BeveragesActivity units154143155156
  Persons engaged3 2213 0553 1342 745
314Tobacco productsActivity units7969
  Persons engaged743648611558
321TextilesActivity units834817805824
  Persons engaged11 90711 99610 2059 751
322–324Apparel and footwearActivity units1 5321 4791 4911 496
  Persons engaged20 54719 67618 20916 853
33Wood processing and productsActivity units3 0212 9803 0933 122
  Persons engaged22 34822 58421 72121 327
341Paper and paper productsActivity units188172173170
  Persons engaged9 0888 5889 7299 010
342Printing and publishingActivity units1 3261 3341 3971 424
  Persons engaged18 40317 30117 38416 593
351Industrial chemicalsActivity units207211200203
  Persons engaged4 7154 2024 2554 227
352Other chemicalsActivity unit352338338381
  Persons engaged6 3956 0445 7575 785
353Petroleum refineriesActivity units14161311
  Persons engaged883843811828
354Petroleum and coal productsActivity units37343657
  Persons engaged886341324312
355Rubber productsActivity units121123122128
  Persons engaged2 0502 2512 0371 800
356Plastic productsActivity units452448456474
  Persons engaged7 3947 8817 2807 198
36Non-metallic mineral productsActivity units905864851849
  Persons engaged7 9106 9356 3065 796
37Basic metal industriesActivity units198190187194
  Persons engaged6 5137 0806 6656 045
381Fabricated metal productsActivity units2 6692 5652 5802 627
  Persons engaged23 21122 15120 89519 254
382MachineryActivity units2,9552 9062 9323 005
  Persons engaged17 83517 48316 47215 820
383Electrical machineryActivity units675674679680
  Persons engaged10 86411,01910,3379 541
384Transport equipmentActivity units1 1331 1031 0741 053
  Persons engaged17 70717 07114 64413 129
385Professional equipmentActivity units10310310291
  Persons engaged1 2631 2681 008991
39Other manufacturingActivity units838840906986
  Persons engaged3 8964 22040024079
3Total manufacturingActivity units19 60719 24519 52719 938
  Persons engaged260 715252 180238 922228 915

Figure 18.1. REGIONAL EMPLOYMENT IN MANUFACTURING 1992 - NORTH ISLAND
By major types of industry

Oven worker checking the stream of biscuits on the production line at Griffins, Lower Hutt.

Assistance to industry

The Government's Business Development policy is aimed at assisting regions to identify and capitalise on their own opportunities for development. As part of this policy the Government provides targeted assistance through its Business Development Programme. The objective of the Business Development Programme is to encourage New Zealand businesses to become more innovative and internationally competitive. Currently the programme compaires a network of 21 Business Development Boards, three grant schemes, the ExcelleNZ quality products.

The Business Development Boards. The Business Development Boards' major responsibilities are to administer the Business Development Programme Grant schemes, provide information to the public on other government enterprise assistance initiatives, encourage business growth, and provide advice to the Minister of Business Development on matters relating to business development in their region. Their members are appointed by the Minister of Business Development and are selected for their business experience and knowledge of their region. The boards are located throughout New Zealand.

The Business Development Programme Grant schemes. The Business Development Investigation Grant 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. For the year ended June 1992, 815 grants worth $6.8 million were approved.

The Expert Assistance Grant Scheme 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. For the year ended June 1992, 238 grants worth $1.2 million were approved.

The Enterprise Growth Development Scheme provides up to $20,000 in a variety of areas to help firms improve their level of competitiveness by becoming more efficient and effective. During the year ended June 1992, 598 grants worth $2.4 million were approved.

For all three grant schemes, recipients are required to meet half the eligible costs themselves.

ExcelleNZ quality products. The Ministry of Commerce, under the brand name “ExcelleNZ”, delivered a package of quality enhancement programmes licensed from the Australian National Industry Extension Service. ExcelleNZ incorporates Total Quality Management and World Competitive Manufacturing programmes. Through the use of licensed quality consultants and workshops ExcelleNZ products can help businesses to understand the steps necessary to adopt quality management principles and maintain international competitiveness.

New Zealand Quality Awards. The Ministry of Commerce has been involved in the development of the New Zealand Quality Awards which has led to the establishment of the New Zealand Quality Awards Foundation. The foundation comprising mainly of private sector representatives will establish the premier awards with trans-Tasman and international standing which will acknowledge both excellence in the management of quality, and provide participating firms with a benchmark against which they can measure their approach to quality.

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 standards and certification. To this end the ministry has developed a close relationship with Australia aimed at reducing the potential for product standards to become technical barriers to trade and increasing the international standing of New Zealand certification bodies. The ministry serves on the monitoring committee established by the Agreement on Standards, Accreditation and Quality, and on the Council of the Joint Accreditation System of Australia and New Zealand, which was established by treaty in 1991. The ministry's role in developing the standards and certification infrastructure has been extended to the European Community, and it is developing a response to the EC's proposal to enter into agreements with the objective of recognising each others certification bodies.

Increased innovation is a goal of the ministry, and it has worked closely with the private sector to establish whether the availability of risk capital was constraining the growth of innovative businesses. This has led to the investigation of a proposal that a risk capital fund be established to provide equity capital to such businesses.

Manufacturing statistics

Quarterly Economic Survey Statistics. The Department of Statistics' Quarterly Economic Survey of Manufacturing is based on a sample of approximately 2000 manufacturing accounting units selected from the Department of Statistics' Business Directory, a comprehensive and up to date list of all businesses in New Zealand. All manufacturing divisions of the New Zealand Standard Industrial Classification are represented and allowance is made for the opening of new factories and the closure of established ones.

Table 18.4 summarises the results from the survey over the six years to 1992, while table 18.5 provides a breakdown by major types of manufacturing for the year ended March 1992.

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 18.4. QUARTERLY ECONOMIC SURVEY OF MANUFACTURING: ALL-INDUSTRY TOTALS

Year ended 31 MarchSales and other incomeStocks*Additions to fixed assetsSalaries and wagesPurchases and other operating expensesHours worked
MaterialsFinished goods

* At end of year.

R Revised.

   $(million)(000)
1,98732,489.92,534.92,469.92,242.35,965.023,832.5553 596
1,98833,740.42,627.12,440.92,219.76,141.925,430.3522 695
1,98934,651.62,495.62.424.0R1,904.86,203.325,587.7479 961
1,99037,526.32,668.72,658.61,827.86,297.028,568.0463 700
1,99137,443.02,656.93,016.91,640.96,406.728,344.7442 260
1,99237,605.92,538.12,742.71,326.66,317.227,816.3415 061

Table 18.5. QUARTERLY ECONOMIC SURVEY OF MANUFACTURING, 1992*

Industry divisionSales and other incomeStocksAdditions to fixed assetsSalaries and wagesPurchases and other operating expensesHours worked
MaterialsFinished goods

* Year ended 31 March.

† At end of year.

‡ Includes the processing of meat and dairy products, and other primary foods.

   $(million)(000)
Primary food8,238.9205.1520.0385.41,111.16,692.166 413
Other food5,813.3400.0413.2256.7707.34,434.851 478
Textiles, clothing2,812.8220.6276.243.8640.81,931.354 375
Wood and furniture2,382.5124.7218.153.7433.91,695.832 495
Paper and printing4,503.3319.1196.7161.8907.53,019.650 305
Chemical4,406.4367.0338.1150.1641.83,161.737 275
Non-metallic mineral907.341.664.740.9167.1678.910 290
Basic metal1,490.1149.1164.255.5263.71,075.212 577
Fabricated metal6,686.8678.9516.8171.31,380.34,865.194 711
Other manufacturing industries364.432.034.77.463.8261.95 141
            Total37,605.92,538.12,742.71,326.66,317.227,8163415 061

In addition to quarterly economic data on manufacturing there are more detailed statistics available from the 1987 five-yearly Economy Wide Census and the 1986–91 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

New five-span 100 metre long bridge being build over the Ashley River, Canterbury.

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 number of occupied permanent dwellings as recorded in the 1991 Census of Population and Dwellings was 1 185 396. The number of permanent dwellings increased by 89 648, or 8.2 percent, between 1986 and 1991. The number of temporary dwellings (including mobile homes) decreased by 3399 (32.1 percent) in the same period.

A significant change in New Zealand's housing environment occurred with the announcement in the Government's 1991 Budget that most existing forms of housing assistance would be replaced by an Accommodation Supplement, to be introduced on 1 July 1993. The Accommodation Supplement, and other related reforms in housing, are discussed in more detail in section 19.2. See chapter 5, 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 August 1991 and August 1992, mortgage interest rates fell from 15.3 percent to an average of 9.5 percent. Over 1991–92 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 26 195 in the six months to June 1992, compared with 25 630 in the corresponding period in 1991.

House sales in the six months to December 1991 totalled 26 553 compared with 30 230 in the six months to December 1990.

New dwellings. Building permits for new dwellings issued during the year ended 31 March 1992 totalled 17 563 with a value of $1,704 million. This compared with a total of 20 820 issued in 1991 (value $1,997 million), and 22 851 in 1990 (value $2,058 million).

Property. The average price of sections in 1991 decreased by 5.4 percent, compared with 1990, while the average house price was 0.3 percent higher in 1991 than it was in 1990. The figures for average sale prices for sections and houses exclude family sales, sales of leasehold property, and other sales not subject to normal market forces.

House prices and rents. House price movements, as measured by Valuation New Zealand's House Price Index, decreased in 1991 for the first time since 1962 (-2.5 percent in the year ended December 1991 and -0.1 percent in the year ended 1992). This compares with a movement of 21.8 percent in 1987 and 7.6 percent in 1990.

The decline in the cost of rental housing commenced later than decreases in the cost of home ownership. The dwelling rentals component of the Consumer Price Index fell by 0.6 percent in the year to September 1992, compared with an increase of 3.2 percent in the year to September 1991.

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.

GOVERNMENT HOUSING

Ratio of state/private housing starts

Table 19.1. RESIDENTIAL PRICES

 December year
19871988198919901991
Source: Valuation New Zealand.
 $
Average sale price of—
Sections31,58933,86739,53443,38941,040
Houses94,01898,732109,840115,150115,461
Owner-occupier flats89,00893,601103,267107,416105,839

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.

Table 19.2. HOUSE PRICE INDEX

LocalityDecember 1990June 1990December 1991June 1991

Base: Half year ended December 1989 (= 1000).

* Includes North Shore City, Waitakere City, Manakau City, Papakura District.

† Includes Porirua City, Upper Hutt City, Wellington City.

Source: Valuation New Zealand.

Whangarei District1,0861,0631,0471,043
Auckland Area*1,0461,006969948
Hamilton City1,1391,1311,1031,093
Tauranga District1,0831,0611,0651,061
Rotoura District1,0491,0461,0161,011
Gisborne District1,1621,2061,2071,206
Napier City1,0991,1231,1481,152
Hastings District1,1411,1701,1701,250
New Plymouth District1,1811,1831,1821,228
Wanganui District1,2031,1951,1751,169
Palmerston North City1,1421,1071,1221,130
Masterton District1,0961,0651,0711,059
Wellington Area1,018987944942
Nelson City1,0901,1251,1311,158
Christchurch City1,1241,1711,1751,188
Timaru District1,1161,1611,1861,209
Dunedin City1,1621,2001,2151,244
Invercargill District1169122912261242
            Total New Zealand1076106710491048

Urban view.

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 on low incomes. The contribution that rental housing makes to the housing stock varies across the five main centres from 28.5 percent in Wellington to 22.7 percent in Christchurch. Outside the five main centres the contribution is lower, at 20.2 percent. Close to 36 percent of rental housing is provided by Housing Corporation through its agent Housing New Zealand, the state-owned rental housing enterprise. Local authorities provide a further 5 percent of the rental stock. The majority (52 percent) of rental housing is supplied by the private sector. Other rental stock is provided by government departments or is supplied free, usually by employers.

At the 1991 Census of Population and Dwellings the stock of rental housing was 0.4 percent lower than at the previous census, although the total housing stock increased by 8.2 percent over the same period.

Fifty four percent of renters earn less than $25,000 gross per annum, while 56 percent of owner occupiers earn more than $30,000 gross per annum. Forty nine percent of Maori are in rental housing, compared with 24 percent of the population as a whole.

On 1 July 1992 Housing New Zealand took over the rental housing activities of the Housing Corporation of New Zealand. For more details, see section 19.3. Reform of housing assistance.

Housing Corporation rental housing. In its last year of operation, the corporation's stock of dwellings increased by 3.2 percent since 30 June 1990, bringing the total dwelling stock to 69 928 at 30 June 1991.

Rents received from tenancies during 1990–91 amounted to $243 million, compared with $233 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 1991 this amounted to $80.5 million, compared with $79.9 million for the previous year.

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 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 only 2 percent of the total.

During 1991, around 13 percent of lending was for new housing, similar to the proportion observed in recent years. Approximately 98 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 of New Zealand.
1,990no.$(000)no.$(000)no.$(000)no.$(000)
Mar5 544124.552326.129 9401,566.636 0071,717.2
Jun6 994168 347830.834,0101,727.341 4821,926.3
Sep6 439162.244730.134 1721,821.241 0582,013.5
Dec6 216158.744530.332 2771,776.238 9381,965.2
1991
Mar3 700126.933022.528 6571,630.532 6871,779.9
Jun2 819121.636425.034 1301,725.637 3131,872.2
Sep2 55276.343732.033 5791,924.936 5682,033.2
Dec1 86054.746734.733 1801,734.735 5071,824.1
1992
Mar1,48533.052841.732 4841,735.534 4971,810.2
Jun........32 7121,785.1....

Maori housing

For the year ending 30 June 1992 the Ministry of Maori Development assisted 630 clients for $31.2 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 ministry had 9700 loan clients with a total of 13 366 accounts for a total lending portfolio of $286 million. The ministry also provided rental accommodation for elderly under its Kaumatua Flats programme with 407 flats administered.

MORTGAGES

Registered and discharged

Homeseekers lending

The Housing Corporation, with Housing New Zealand acting as its agent, encourages home ownership through lending programmes for households unable to afford finance in the marketplace. For the year ended 30 June 1991 the corporation authorised 17 080 loans for $504.4 million. Mortgage lending activities comprise the bulk of this output, including the following.

Table 19.4 provides a summary of home buyer lending and deposit assistance programmes available from the Housing Corporation for the 1991/92 year.

Table 19.4. HOME BUYER LENDING*

ProductNumber of loan approvalsPerformance value of loan approvals $(m)Number households assisted
1989/901990/911989/901990/911989/901990/91

* Year ending 30 June.

Source: Housing Corporation.

First home (modest income)6 1894 933267.8228.06 2225 162
Loans to tenants1 19176455.437.91 194831
Second chance1 8212 08171.189.41 8222 112
Refinance1 7532 12349.565.21,7532 326
Papakainga (multiply-owned lending)24626410.912.1269269
New horizons124925.13.912493
Better use1652263.24.2165
Relocatables13130.30.31324
Equity sharing/sweat equity39212.01.13921
Homestart12 8376 463123.762.6
Building industry suspensory loans175930.90.5
Tied accommodation1140.40.2114
Tenancy savings scheme32180.10.1
            Total24 59617095590.4505.511 60110 842

Community housing programmes

Through its community housing programmes, the Housing Corporation (with Housing New Zealand acting as its agent) 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. The corporation also offers assistance to community groups for the provision and preservation of boarding house accommodation.

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

In the 1991 Budget the Government announced major reforms to the delivery of housing assistance. These reforms include the introduction of an Accommodation Supplement, the establishment of Housing New Zealand Limited and the setting up of the Ministry of Housing.

Accommodation Supplement. The Accommodation Supplement will replace subsidised housing assistance from the Housing Corporation, and the Accommodation Benefit from the Department of Social Welfare. The supplement will be introduced on 1 July 1993.

All low income households will be eligible to apply for the Accommodation Supplement, irrespective of whether they live in public or private sector housing, and whether they are renters or mortgagors.

The Accommodation Supplement will be a cash payment administered by the New Zealand Income Support Service, which is part of the Department of Social Welfare. The payment of the supplement will be capped on a regional basis and will take account of higher housing costs in Auckland and Wellington. A cash assets test will also be applied. This is the same test that has previously been used for the Accommodation Benefit. An abatement regime will also assist in targeting the supplement to households on lower incomes.

A number of transitional measures have been implemented in the period prior to the introduction of the Accommodation Supplement. These measures are designed to assist Housing New Zealand Limited tenants who will lose their access to existing housing subsidies after the supplement is introduced. Tenants 65 years of age and over on 1 October 1992 will benefit from tenure protection. Tenure protection may also assist Housing New Zealand tenants who are living in a unit specially modified to accommodate a disability, or who are unable to move for reasons of health, or because of a need to remain close to medical facilities or to family members.

Housing New Zealand Limited. On 1 July 1992 Housing New Zealand took over the rental housing activities of the Housing Corporation of New Zealand, including the management of a rental stock of approximately 70 000 units. Housing New Zealand was set up under the Housing Restructuring Act 1992 and is a registered company, wholly owned by the government. Its principal objective is to operate as a successful business that will assist in meeting the Crown's social objectives by providing housing and related services to low income people. The company has two shareholding ministers, the Minister of Finance and the Minister responsible for the administration of the Housing Restructuring Act. The shareholding ministers appoint the board of directors and also perform other functions as set out in the Act.

Housing New Zealand has established five regional offices and 56 neighbourhood units throughout the country. It competes on an equal basis with other housing providers, charging market rents for its tenancies. It is required, however, to allocate its vacant rental units primarily to low income New Zealanders and to give priority access in allocations to people in temporary accommodation, or who are in accommodation that is detrimental to their health or well being. These obligations are set out in the company's statement of corporate intent, which is tabled in Parliament by the shareholding ministers.

Housing New Zealand also manages, under contract, the lending portfolio of the Housing Corporation.

Ministry of Housing. The Ministry of Housing was established on 1 July 1992. The ministry's two main functions are to provide the government with high quality and timely policy advice on housing, and the provision of efficient and effective tenancy bond and dispute resolution services across New Zealand.

HOME MORTGAGE RATES

Registered mortgages

Table 19.5. COMMUNITY LENDING

ProductNumber of loan approvalsPerformance value of loan approvals $(m)Number of households assisted
1989/901990/911989/901990/911989/901990/91
Source: Housing Corporation.
Pensioner/Disabled6546510.910.8432351
Womens fund530.90.43923
Venture fund120.10.3135
Housing co-operatives18620328.826.31 2291 054
Boarding house loans−10.01
            Total25727440.737.81 7131 433

Table 19.6. RENTAL ALLOCATIONS*

ProductNumber of households assisted
1989/901990/91

* Includes community housing.

Source: Housing Corporation.

Rental housing9 9729 836
Relocatable cottages140205
Special tenancies596765
Boarding houses12
Total10 70810 818

Tenancy Services, which is a division of the Ministry of Housing, administers the Residential Tenancies Act 1986. The Act established a mediation service and a Tenancy Tribunal to resolve tenancy disputes. Tenancy Services runs the mediation service, while the Tenancy Tribunal is administered by the Department of Justice.

In the year to 30 June 1992, there were 26 600 tribunal applications, compared with 22 600 for the year ending 30 June 1991. Of the applications received, 18 400 were resolved by mediation, compared with 13 600 in the preceding year. There were 5800 applications that proceeded to a formal Tenancy Tribunal hearing in the year to June 1992, compared with 9000 in the previous year. About two-thirds of applications are made by landlords, commonly for rent arrears.

The Smith family in their housetruck home.

Housing Corporation of New Zealand. The Housing Corporation was established by the Housing Corporation Act 1974. Its role in managing the government's investment in rental housing has been taken over by Housing New Zealand. The corporation continues to offer lending for home ownership, with Housing New Zealand acting as its agent. The lending services the corporation offers include loans to low income first home buyers, finance for community housing, and lending on Maori land in multiple ownership (papakainga loans). Further information on Housing Corporation lending is available from officers of Housing New Zealand.

Community housing. The community housing programmes previously operated by the Housing Corporation are now co-ordinated through the New Zealand Community Funding Agency, which is a division of the Department of Social Welfare. The Community Funding Agency provides government funding to assist community groups to obtain special tenancies or special lending finance to purchase housing. At present, all special tenancies are rented from Housing New Zealand and all special lending finance is provided by the Housing Corporation. Community housing is available for emergency housing purposes, such as Women's Refuges, and for community based support housing for people with psychiatric, intellectual or physical disabilities, or who are undergoing substance abuse treatment.

Table 19.7. HOUSING LOAN APPROVALS

 Housing CorporationSurveyed financial institutionsLife Insurance officesTotalPercentage of funds for new housingPercentage of funds in first mortgage
Source: Reserve Bank of New Zealand.
 no.$(m)no.$(m)no.$(m)no.$(m)  
1990—Dec6 216158.732 2771,776.244530.338 9381,965.213.895.0
1991—Mar3 700126.928 6571,630.533022.532 6871,779.914.298.1
        Jun2 819121.634 1301,725.636425.037 3131,872.213.096.5
        Sep2 55276.333 5791,924.643732.036 5682,033.210.798.3
        Dec1 86054.733 1801,734.746734.735 5071,824.112.799.1
1992—Mar1 48533.032 4841,735.552841.734 4971,810.210.999.1
        Jun....32 7121,785.1............

The architecturally designed Ropata Village, a sheltered housing project, Lower Hutt.

19.3 Building and construction industry

Construction standards

The building and construction industry is of considerable importance to New Zealand's economy. During 1991–92, gross capital investment in building and construction amounted to $5.1 billion. Direct employment in the industry at the end of March 1992 was 78 100, 5.4 percent of the total New Zealand workforce. In addition, tens of thousands are employed indirectly, supporting the industry in manufacturing, material supplies and transport.

The most common construction systems used in New Zealand are light timber framing for housing, reinforced concrete (precast and in situ) for multi story buildings and light steel framing for industrial buildings.

All building controls are administered by the Building Industry Authority, a Crown Entity established under the Building Act 1991. All new buildings and structural alterations and/or additions to existing buildings require a building consent. Territorial authorities use the performance based New Zealand Building Code produced by the Building Industry Authority, which sets out the minimum standards of design, construction, health and safety considerations. Checking is usually carried out by the territorial authority during construction.

Particular provisions are called up under the building code 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 rod pavements.

The Building Act 1991 took effect from 15 February 1992 followed by the Building Regulations on 1 July 1992. Thirty five approved documents that provide guidance to ensure a building is safe, durable, healthy, accessible and energy efficient were released in August 1992.

New buildings and building alterations and additions must also comply with district plans of the territorial authority prepared under the Resource Management Act 1991. Further information on this is set out in chapter 14, Land and environment.

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 territorial 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 1992 are described by types of building in table 19.8. Permits cover alterations and additions as well as new buildings, and government and other buildings not requiring building permits are included.

SIZE OF NEW DWELLINGS

Average floor area

Table 19.8. VALUE OF BUILDING PERMITS ISSUED

Year ended 31 MarchType of building
19881989199019911992

* Includes additions and alterations.

† Includes ancillary buildings.

Residential—$(million)  
New dwellings1,577.21,610.52,057.71,997.11,704.1
Alterations and additions to dwellings428.8478.0495.9431.5413.8
Non residential*
Hostels, boardinghouses28.937.38.73.48.4
Hotels, motels, etc.180.782.723.020.814.9
Hospitals and nursing homes190.281.858.851.986.3
Education buildings101.4105.975.8117.169.1
Social, cultural, and recreational buildings136.0111.1114.3105.394.0
Shops, restaurants, taverns186.1146.3186.1207.6135.9
Office and administrative1,021.81,130.1419.1226.5169.2
Warehouses164.878.068.743.549.8
Factories, powerhouses, etc.421.8232.9263.3231.6126.5
Farm buildings49.747.460.448.948.3
Miscellaneous buildings24.540.053.552.523.5
            All buildings4,512.04,182.03,885.33,537.92,943.8

Work put in place. The Department of Statistics conducts quarterly surveys of building work put in place. In contrast with the statistics based on building permits, these figures show the gross value of actual work done. It should be noted that there are varying time-lags between the issue of the building permit and the commencement of building and the actual work for which a permit is issued can be extended over varying periods. Also, the total value of this work may differ considerably from the value estimated at the time of application for the building permit, especially in times of inflation.

Table 19.9. LOCATION AND VALUE OF BUILDING PERMITS, 1991–92

Main urban areaNew dwellingsNon-residential value*Total buildings value*
NumberResidential value

* Includes alterations and additions.

 $(million)
Whangarei21216.911.832.0
Auckland (Main) Urban Area4 534488.0221.5812.5
      Northern Auckland Zone1 200137.235.8202.2
      Western Auckland Zone92193.121.1131.5
      Central Auckland Zone1 141118.298.8252.5
      Southern Auckland Zone1 272139.665.8226.3
Hamilton56854.445.5111.5
Tauranga74163.820.792.4
Rotorua15912.89.025.0
Gisborne704.63.710.2
Napier24423.05.834.3
Hastings16514.512.633.1
New Plymouth26823.314.843.4
Wanganui13713.210.326.8
Palmerston North34836.826.771.6
Wellington (Main) Urban Area91095.691.6230.8
      Upper Hutt Valley Zone908.98.020.8
      Lower Hutt Valley Zone27026.812.350.2
      Porirua Basin Zone13816.58.028.2
      Wellington City Zone41243.563.2131.5
Nelson45538.418.561.3
Christchurch1 944195.361.9294.3
Timaru706.612.121.0
Dunedin49447.849.0108.6
Invercargill11010.98.624.6
            Total, 17 main urban areas11 4291,145.8624.22,033.5

Construction of office block, Wellington.

Table 19.1. TYPES OF BUILDING PERMITS AND AUTHORISATIONS, 1991–92*

Type of buildingType of applicantTotal
Producer enterprisesFinancial intermediariesGeneral governmentPrivate non-profit organisationsOverseas and households

* Includes alterations and additions.

† Includes ancillary building.

 $(000)
Dwellings60,23162,19414,8152,040,6722,117,918
Hostels and boardinghouses1,4312,5504,4598,440
Hotels, motels, etc.14,42618130514,913
Hospitals and nursing homes25,0295,21639,97316,04186,259
Education buildings2,137852,72414,2115369,133
Social, cultural, and recreational12,30118,54263,1582294,023
Shops, restaurants, taverns132,6354313842,318149135,917
Office and administrative107,15722,43633,9575,196463169,210
Warehouses49,3712354912749,782
Factories, powerhouses, etc.118,1921287,83633619126,512
Farm buildings48,07787652448,253
Miscellaneous21,600151,66519023,470
            All buildings592,58628,239160,329121,1442,041,5292,943,827

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 1991–92 includes 17 563 permits or authorisations to a total value of $1,704.1 million for new dwellings. This includes authorisations by central government for 624 new dwellings (value $50.9 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 19.11. PERMITS FOR NEW DWELLINGS

Year ended 31 MarchUnitsValueAreaTotal dwelling permits*Total permits all buildings*

* Includes additions and alterations.

 no.$(million)sq m (000)$(million) 
1,98819 8861,577.22 514.92,006.04,512.0
1,98919 5831,610.52 447.92,088.64,182.0
1,99022 8512,057.13 029.82,553.63,885.3
1,99120 8201,997.12 827.02,428.63,537.9
1,99217 5631,704.12 465.62,117.92,943.8

Removing rust and scale from Athletic Park's steel stand supports in a $1.7 million upgrade.

Table 19.12. WORK PUT IN PLACE

Year ended 31 MarchDwellings
New dwellingsAlterations/additionsSubtotal
GovernmentOther
 $(million)
1,98885.91,389.9448.71,924.4
1,98987.91,489.2503.02,080.1
1,99062.41,851.6531.42,445.4
1,99188.32,000.4487.82,576.5
1,99257.91,650.5462.42,170.8
Year ended 31 MarchNon-residential buildings*Total
Hotels, boarding-housesHospitalsFactoriesCommercial buildingsSchoolsMiscellaneousSubtotal

* Includes alterations and additions.

† Includes ancillary buildings.

‡ Includes churches and sports entertainment buildings.

 $(million)
1,988199.086.9400.81,629.5115.9220.32,652.44,576.9
1,989196.9131.6336.01,432.5111.1204.22,412.34,492.4
1,990195.6115.2302.61,208.4109.5266.22,197.34,642.8
1,991127.095.3354.3965.197.7214.81,854.24,430.7
1,99232.391.2171.8565.4128.3214.31,203.43,374.2

Building and construction price indexes. Price indexes for buildings and construction are contained within the Capital Goods Price Index. Two series for residential buildings, four non-residential buildings, four other construction and four land improvement price indexes have been produced from the December 1989 quarter.

For the year ended in the March 1992 quarter the index recorded increases of 1.9 percent for residential buildings, 1.3 percent for other construction, 1.7 percent for land improvements and a decrease of 0.2 percent for non-residential buildings.

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.

Table 19.13. BUILDING AND CONSTRUCTION: STATISTICAL SUMMARY

Statistical item1986–871987–881988–89
 number
Group enterprises417393400
Enterprises within these group enterprises588574569
Enterprises not within these group enterprises23 54724 87824 543
Activity units (including ancilliaries)24 99226 29125 887
Full time equivalent persons engaged96 32897 53791 999
 $(000)
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 income9,803,40811,300,37711,158,677
            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 liabilities4308,9185,512,9546,364,776
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

NEW DWELLINGS

Dwellings as a percentage of total value

NEW DWELLINGS

Number of building permits issued

Megastructures, Auckland. Left to right, Fay Richwhite Building, Coopers & Lybrand Tower and BNZ buildings.

Contributors

  • 19.1 Housing New Zealand; Ministry of Housing; Valuation New Zealand; Department of Statistics.

  • 19.2 Department of Statistics; Reserve Bank of New Zealand; Ministry of Maori Development (Te Puni Kokiri).

  • 19.3 Department of Statistics.

Special articles

Housing for Women Trust; Ministry of Housing.

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 Property Sales Statistics. 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

Train on Trans-Alpine route, South Island.

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, 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 New Zealand Railways has centred on the need to improve the efficiency of the organisation. In 1986 the then Railways Corporation became a state-owned enterprise, responsible for managing its resources on commercial lines and rationalising 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. As well, a new Crown agency, Transit New Zealand, was established to take over the functions of the former National Roads Board and the Urban Transport Council.

Civil aviation in New Zealand has undergone tremendous changes in the last decade. In 1983 domestic air services were effectively deregulated by liberalising the licensing regime. The Government announced a new liberalised external aviation policy in 1985 which has resulted in an expansion in international air services.

Twenty-two international airlines operate to New Zealand and Air New Zealand offers services to 27 destinations world-wide. Domestic aviation was further deregulated in 1986 to allow foreign investment, leading to Ansett New Zealand commencing domestic operations in direct competition with Air New Zealand in 1987. Air New Zealand was privatised in 1989.

At about the same time the Air Transport Division of the Ministry of Transport, in accordance with overall Government “user-pays” policy, began recovering a contribution towards the costs of its operations from aviation operators. Airports, previously administered by local and central government, were restructured to form companies. Auckland and Christchurch International Airports were corporatised in 1988 and Wellington International Airport followed in 1990. Five regional airports have also been corporatised. In 1992 negotiations began with Australia to form a single aviation market, which will eventually enable Australasian airlines to operate freely within, between and beyond the two countries. The regulatory regime for civil aviation safety in New Zealand was completely overhauled with the introduction of the Civil Aviation Act of 1990 which established clear divisions of responsibility for safety between the Government and participants in the civil aviation system. The establishment of a separate Civil Aviation Authority in 1992 marked a further milestone in this new era for civil aviation safety.

Traffic control room, Auckland. The traffic signal engineers oversee 126 intersections.

Comprehensive reforms of New Zealand's waterfront since 1988 have resulted in cost savings and efficiency improvements. Reform of New Zealand's shipping and marine pollution laws took a high priority during 1992. Local operators in the shipping industry are being challenged by a Government determination to see increased competition in the coastal and trans-Tasman trades.

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 July 1991. CLEAR Communications Limited was launched in 1990 and provides toll, private line and specialist local network services in competition with Telecom. CLEAR is 50 percent New Zealand owned.

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 item1985–861986–871987–881988–89
 number
Group enterprises574555571
Enterprises within these group enterprises836796792
Enterprises not within these group enterprises7 0298 7489 2019 573
Activity units (including ancillaries)9 83912 36012 66013 007
Full time equivalent persons engaged98 606106 52799 23293 108
Stocks—
     Closing95 932110 063310 240242 105
     Opening90 796110 068360 211315 985
Income—$(000)
Sales of goods and services     4,948,0967,771,9158,829,2669,490,975
     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, etc.325,702461,641560,020614,129
          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 liabilities5,793,4666,759,523
            Total capital and liabilities11,694,53813,518,799
Fixed tangible assets8,313,0329,590,247
All other assets3,381,5043,928,552
            Total assets11,694,53813,518,790
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 liabilities50.550.0
     Fixed assets per total assets71.170.9

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 continues to promote the opening of trans-Tasman shipping, which has been reserved for Australian and New Zealand crewed ships through a maritime union accord, to international competition. In completing the full review of CER in 1992, the Australian and New Zealand governments stated that they do not support the accord and are fully commited to open competition in all international trades, including the trans-Tasman trade.

Significant progress was made during 1992 in advancing a major overhaul of maritime law. Legislation is being prepared with the intention of passing new law during 1993 which will cover ship safety, maritime liability, marine pollution and the establishment of a joint industry-government authority responsible for maritime safety regulation. Modern shipping law will place greater safety responsibility on individual participants in the maritime safety chain.

Overseas lines

Conference lines handle much of New Zealand's overseas shipping. These are associations between shipping companies to provide joint service on the following established trade routes:

United Kingdom/Europe. The New Zealand European Shipping Association and the New Zealand and United Kingdom Shipowners' Committee play the main role in servicing Mediterranean and Northern European ports. The P & O group (UK) have the largest trade share in the conference, 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. 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), The Far Eastern Shipping Company (Soviet Union) and the New Zealand Orient Line (Singapore).

North America. The Australia/New Zealand Direct Line operates between Australia, New Zealand and the West Coast of the United States and provides for the through transport of cargo by road and rail 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 conventional refrigerated vessel operators from 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, Ocean-bridge and the Australian National Line which each run two ships. BHP Transport (Australia) operates two ships on the Tasman, while the Pacific Forum Line provides services to and from Brisbane as part of its South West Pacific trade. South Pacific Shipping (NZ) operates four ships on the trade and plans to introduce a sixth vessel during 1993.

South Pacific. The regionally-owned Pacific Forum Line operates four vessels linking New Zealand, Australia, Fiji, the Marshall Islands, Nauru, Papua New Guinea, the Solomon Islands, Tonga, and Western Samoa. A service to Kiribati and Turalu was halted in early 1993 after substantial losses were incurred, despite Australian and New Zealand government subsidies for the service. Sofrana Unilines, Cook Islands National Line, Ocean Towing and Salvage, W Islands Lines, Translink Pacific Shipping, NZ Pacific Container Line, and Blue Star Line (as part of its North America 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. New Zealand Coaster Services provides a weekly service between Lyttelton, Nelson and Auckland with the Northern Transporter, Auckland-based Sea Tow operates three tugs on tramp services around the New Zealand coast, while Wellington-based Southern Tug and Barge have started a timber trade out of the Marlborough Sounds.

The Cook Islands National Line operates a service between Napier and the Chatham Islands as part of its South Pacific service to the Cook Islands and Niue.

New shipping venture for Cook Strait, The Straitsman, carrying stock.

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). Three 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 1992, 9601 arrivals and 9563 departures were recorded. The busiest port was Wellington with 2147 arrivals and 2149 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 12.3 million gross registered tonnes of shipping in the 1992 year, of which over 8.9 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, 1992*

CommodityUnloadedLoaded

* Year ended 30 June.

 gross tonnes
Cement465 409552 503
Coal and coke7 7197 986
Petroleum products4 328 7234 528 791
Sand and shingle150 738150 738
Motor vehicles388 463392 824
Container goods235 584256 775
Other goods1 113 4131 247 385
            Total6 690 0497 137 003

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 1992 a total of 13.8 million tonnes of cargo was shipped between New Zealand ports. Whangarei loaded out 2.4 million tonnes of refined petroleum products while Port Taranaki loaded 2.0 million tonnes of petroleum crude and liquified petroleum gas for other ports. Bulk cement totalling 552 503 tonnes was carried from works near Whangarei (174 000 tonnes), and Westport (379 000 tonnes) during the year.

Overseas cargo. Cargo loaded for overseas destinations during the year ended 30 June 1992 totalled 15.9 million tonnes, of which 1.1 million tonnes were ironsands from Taharoa. Tauranga loaded 4.4 million tonnes; Port Taranaki, 2.1 million tonnes and Auckland, 1.5 million tonnes, while total cargo loaded for overseas at South Island ports amounted to 3.8 million tonnes.

Imported cargo totalled 8.3 million tonnes for the year ended 30 June 1992. Of this Auckland unloaded 1.7 million tonnes, Whangarei 3.4 million tonnes and Tauranga 0.7 million tonnes. South Island ports accounted for 1.5 million tonnes of inwards cargo from overseas.

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 20.3. OVERSEAS CARGO—COMMODITIES CARRIED, 1992*

CommodityUnloadedLoaded
Gross tonnesc.i.f.Gross tonnesf.o.b.

* Year ended 30 June.

  $(m) $(m)
Food and live animals666 597841.52 989 1067,808.9
Beverages and tobacco54 283165.543 33575.2
Crude materials1 726 297606.37 424 5702,940.6
Mineral fuels3 762 6751,092.82 134 049500.5
Animal and vegetable oils60 35966.6162 410118.6
Chemicals and related products967 4111,593.41 021 314917.4
Manufactured goods677 5112,315.51 896 5912,262.5
Machinery and transport equipment284 1103,485.872 695663.0
Miscellaneous manufactured articles91 6111,129.434 576247.9
Commodities and transactions not classified elsewhere........
            Total8 290 85311,296.915 778 64615,534.7

Table 20.4. OVERSEAS CARGO LOADED BY COUNTRY, 1992*

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
Algeria78,65529 842
American Samoa30,77933 106
Argentina88,46330 613
Australia3,574,5102 352 249
Austria11,4211 277
Bahamas2,0301 031
Bahrain16,3933 773
Bangladesh5,7019 829
Barbados13,3365 701
Belgium237,87374 687
Belize1,392294
Bermuda3,904939
Brazil18,4136 784
Brunei Darussalam6,548449
Canada273,39163 685
Chile30,5408 945
China (People's Republic of)361,508621 906
Colombia4,5231 386
Cook Islands41,23622 951
Cuba79,79031 601
Cyprus4,7981 172
Czechosovakia2,428352
Denmark35,0257 833
Destination unknown E.C.353,289202 280
Dominican Republic13,3345 046
Egypt29,74415 440
El Salvador10,9613 710
Fiji181,501136 914
Finland9,2861 620
France225,62443 193
French Polynesia88,78987 583
Germany418,59483 962
Greece76,94423 813
Grenada1,631440
Guadeloupe7,4382 823
Guam20,64820 346
Guatemala1,789598
Guyana1,435403
Honduras1,677578
Hong Kong366,810194 835
Hungary1,107118
India97,443164,180
Indonesia193,973225 803
Iran (Islamic Republic of)183,07786 579
Ireland16,8554 598
Israel2,559475
Italy219,72046 411
Jamaica14,3145 455
Japan2,743,5245 992 832
Jordan36,75814 959
Kiribati4,3313 239
Korea (Republic of)767,6482 115 855
Kuwait13,2095 163
Libyan Arab Republic15,1722 719
Malaysia376,501200 887
Malta3,539934
Marshall Islands3,6637 003
Martinique5,9182 286
Mauritius32,15810 473
Mexico187,95662 985
Morocco32,08213 919
Nauru8,6112 639
Nepal75,17816 673
Netherlands134,87929 723
Netherlands Antilles1,035343
New Caledonia49,73236 530
Nigeria2,728726
Niue6,0102 402
Norfolk Island9,1034 787
Northern Mariana Islands3,0852 669
Norway6,7051 008
Oman14,0504 806
Pakistan25,81717 019
Panama10,7893 571
Papua New Guinea98,015127 233
Peru43,52913 785
Philippines137,23370 544
Poland4,482440
Portugal44,95710 441
Puerto Rico3,264121
Qatar4,7611 425
Reunion2,908993
Samoa89,64759 186
Saudi Arabia205,948130 106
Singapore330,904277 243
Solomon Islands14,49511 569
South Africa27,91312 139
Spain98,73735 595
Sri Lanka52,46320 901
St. Lucia1,090429
Sudan1,2782 644
Sweden49,39022 252
Switzerland68,1474 754
Syrian Arab Republic5,387791
Taiwan (Province of China)434,110482 995
Thailand175,018118 669
Tonga31,32816 671
Trinidad and Tobago13,8904 305
Tunisia10,8564 295
Turkey52,53310 889
Tuvalu1,139583
USSR99,53450 597
United Arab Emirates42,46513 537
United Kingdom1,193,466368 811
United States2,464,230697 126
Uruguay1,043128
Vanuatu11,43011,468
Venezuela91,19530,047
Vietnam7,1652 271
Wallis and Futuna Islands4,1555 098
Yemen21,6288502
            Total, all cargo17,985,12315 857 282

Table 20.5. OVERSEAS AND COASTWISE SHIPPING BY PORTS 1992*

All portsCoastwiseOverseas
No. of vesselsGross tonnageNo. of vesselsGross tonnage

* Year ended 30 June.

Arrivals (000) (000)
Whangarei1712 307651 970
Auckland/Onehunga4193 3977978 934
Tauranga3684 3964842 730
Taharoa10598
Gisborne3024412141
Port Taranaki4672 5131311 605
Napier2883 54976852
Wanganui
Wellington1 92813 3122191 235
Nelson2042 1996331 211
Picton1,4468 124273
Westport111468
Greymouth
Lyttelton2681 1165995 455
Timaru2011 87038339
Otago1923 32198982
Invercargill/Bluff213470181 858
Chatham Islands1315
            Total, all ports8 96747 3013 28227 983
Departures
Whangarei1732 466621 811
Auckland/Onehunga5845 6745846 064
Tauranga2372 8676004 191
Taharoa10598
Gisborne283101474
Port Taranaki4662 4401281 602
Napier2353 2201321 199
Wanganui
Wellington1 94813 899201676
Nelson1671 6227251 670
Picton1 4438 128336
Westport111472
Greymouth
Lyttelton3441 6704954 702
Timaru1931 75244440
Otago1122 0871822 551
Invercargill/Bluff2114821181 874
Chatham Islands1315
            Total, all ports6 26547 1053 29827 508

Services to shipping

Ports. The 1988 port reform programme addressed the administration of ports and the manner in which labour is employed and used in stevedoring operations. Port companies established under the Port Companies Act 1988, operate New Zealand's 13 major commercial ports. These companies are predominantly local government-owned, although two are partly privatised and further private ownership is being encouraged by the Government.

Registration of ships. As at 31 December 1991 there were 2592 ships on the New Zealand Shipping Register, with a total gross tonnage of 301 131 tonnes and net register tonnage of 175 874 tonnes. This compared with 2464 ships totalling 319 228 gross tonnes and with a net tonnage of 188 610 tonnes in December 1990.

New registrations during this period were the deep sea fishing vessels, Atlantic Explorer, Langoustine Explorer and Mutual Enterprise, the coastal fishing vessels Marine Countess and Venture K; the fishing research vessel Tangaroa; the foreign-going cargo vessel Union Rotoma; the inter-island passenger vessel Tutolu; the dumb barge Sea-Tow 17; and the tug Sea-Tow 22.

Vessels removed from the New Zealand Register during 1991 included the foreign-going cargo vessels Pioneer Tween, Holmdale, Union Endeavour and New Zealand Mariner, the coastal fishing vessel Trinity II; the dredge Kaheru; and the dumb dredge Kerinui.

Table 20.6. REGISTERED VESSELS INVOLVED IN DOMESTIC AND OVERSEAS TRADE*

YearNumber of vesselsNet registered tonnageNumber of crew

* Ships in overseas trade mainly engaged in trans-Tasman and Pacific Islands trading movements.

† The shipping register is not metricated and 1 net register ton equals 100 cubic feet (or 2.83 cubic metres) of cargo capacity.

‡ Crew figures taken from annual manning list as at 1 July 1991.

Source: Ministry of Transport.

Domestic
1,9881452 918480
1,9891351 444404
1,9901351 444409
1,9911241 346348
Overseas
1,9881095 008296
1,989984 296274
1,990862 043185
1,991857 582141

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 12 months to 30 June 1992, 1831 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, 1991*

Ship typeMachinery breakdown and miscellaneousCapsizing and collisionStranding and groundingFounderingFireTotal

* Year ended 31 December.

Source: Ministry of Transport.

Passenger2169
Cargo11215
Fishing46515
Dredges, tugs, etc.
Pleasure2194236
            Total241518865

A single preliminary inquiry was held into the loss of the cargo vessel Celtic Kiwi (formerly the Chatham Islands supply vessel Holmdale), which foundered 180 nautical miles north of Cape Reinga on 27 October 1991. No formal inquiries were held.

Fishing boat casualties during 1991 resulted in the loss of five vessels and two lives.

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 provides for comprehensive measures for preventing the discharge into the sea of oil and other pollutants from ships.

Further changes to the Act are to be implemented to reinforce existing arrangements for oil spill contingency planning and the provision and stockpiling of equipment and dispersants to deal with oil spillages in New Zealand waters.

20.2 Civil aviation

Control of civil aviation

Overall responsibility for civil aviation lies with the Minister of Transport. Prior to August 1992 the administration of civil aviation was vested in the Air Transport Division of the Ministry of Transport. On 10 August 1992, the Civil Aviation Authority of New Zealand (CAA) was established as a separate Crown-owned entity reporting directly to the Minister of Transport, with the prime function of promoting civil aviation safety and security at reasonable cost. The functions of the CAA include developing and providing civil aviation safety and security policy advice; developing safety and security standards for the civil aviation system and monitoring their adherence; performing entry and exist control over participants in the civil aviation system; reviewing the functioning of the system from a safety point of view, including the investigation of incidents and some accidents; and promoting aviation safety and security through the provision of information and education programmes. Overall responsibility for aviation policy continues to lie with the Ministry of Transport, which also audits and monitors the performance of the CAA on behalf of the Minister of Transport.

Air New Zealand's first woman pilot, Jan Everest.

The Airways Corporation of New Zealand Limited. Responsible for ensuring the safe and orderly flow of air traffic, the corporation provides extensive ground services including air traffic control and flight information, navigation services, alerting services, and telecommunications. The provision of rescue fire 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. Elements of emergency organisations are provided at most aerodromes.

In addition to control towers and flight-service stations at aerodromes, radar area and approach control is provided from Auckland, Christchurch and Ohakea. Flight information and briefing services throughout the country are provided from Auckland and Christchurch. All military air traffic control and radar surveillance is provided on contract by the corporation to the Royal New Zealand Air Force.

The Airways Corporation provides all air navigation facilities in New Zealand. These navigation facilities include electronic aids such as non-directional medium frequency beacons (NDB), very-high-frequency omni-directional radio ranges (VOR), instrument landing systems (ILS), primary surveillance radar equipment (PSR), 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). On behalf of the Civil Aviation Authority, the Airways Corporation provides an Aeronautical Information Service which publishes NOTAMs (Notices to Airmen) and other Aeronautical Information Publications (AIPs) including regular circulars. This service co-operates with the Civil Aviation Authority and the Department of Survey and Land Information in the production of aeronautical maps and charts.

The corporation also maintains an aviation training college in Christchurch. Regular courses are conducted in air traffic services, and telecommunications. The corporation has implemented the Airways Modernisation Project (AMP), apart from replacement of existing primary radars, the project introduced 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. Following the successful introduction of the Airways Modernisation Project the corporation is implementing the Navigation Systems Modernisation Project (NSMP) which will replace navigation aids with state-of-the-art equipment by 1994.

Domestic air services

The deregulation of domestic aviation commenced in 1983 and was completed in 1990 with the abolition of air service licensing. Air New Zealand and Ansett New Zealand are the major domestic operators. Air New Zealand offers services to the major centres and Air New Zealand link, the trading combination of Air Nelson, Eagle Airways, and Mount Cook Airlines, provide services to provincial towns, many of which were previously serviced by Air New Zealand's F27 Friendships which were withdrawn from service in 1990.

Under the agreement reached with Australia on the single market, New Zealand airlines will be able to commence operating domestically within Australia in 1994, if not sooner. The advent of a single aviation market will, in due course, see Australasian airlines operating across the Tasman as a domestic sector and this will have a major impact on border control procedures and air services in general.

AIR TRAVEL

Passengers carried on scheduled international and domestic flights

Table 20.8. SUMMARY OF DOMESTIC SCHEDULED AIR SERVICES

December yearSeat kilometers availablePassengers carriedPassenger-kilometersFreight carried (tonnes)Freight (tonne-kilometers)Mail (tonne-kilometers)
Source: Ministry of Transport.
 (000)(000)(000)(000)  
1,9862 413 6123 4441 652 43365.133 5771 199
1,9872 540 1933 7851 728 45658.431 461877
1,9883 165 8134 1741 899 78539.426 4051 292
1,9893 087 7794 4671 908 43843.027 9881 721
1,9903 599 2364 5022 101 88247.728 4551 562

International air services

International air services are operated in accordance with formal agreements relating to air transport, usually negotiated between governments. New Zealand is signatory to 21 such agreements and has negotiated another two which are due to be signed. These agreements, and associated documents, outline the routes by which airlines can operate to/from New Zealand and, in most cases, the capacity that can be used on those routes. New Zealand's External Aviation Policy is to maximise the overall economic benefit for New Zealand, taking into account the country's trade, tourism, aviation, consumer, foreign policy and strategic considerations. This objective will best be achieved by encouraging the liberalisation of air services to and from New Zealand including moves to minimise restrictions on competition. Eleven international airlines have commenced services to New Zealand since 1985.

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
PassengersIn1 110 0001 240 8371 183 4381 113 276
 Out1 109 3391 248 1171 195 6981 125 679
 Total2 219 3392 488 9542 379 1362 238 955
Freight
     (tonnes)In43 84948 77955 18350 236
 Out47 65951 08157 49652 772
 Total91 50999 860112 680103 008
Mail (tonnes)In2 4932 6382 6292 413
 Out1 1681 1241 3891 768
 Total3 6623 7634 0184 181
Traffic through Christchurch Airport
PassengersIn238 392243 549235 078241 035
 Out235 583252 862241 158240 275
 Total473 975496 411476 236481 310
Freight
     (tonnes)In7 2827 5807 0056 824
 Out8 7668 98211 82510 302
 Total16 04916 56218 83017 127
Mail (tonnes)In366341282279
 Out85128194192
 Total451468476471
Traffic through Wellington Airport
PassengersIn112 989124 586114 823107 658
 Out112 708126 207116 299107 321
 Total225 697250 793231 122214 979
Freight
     (tonnes)In5 3294 8554 9883 965
 Out3 0693 1883 7303 474
 Total8 3988 0428 7197 439
Mail (tonnes)In200185199181
 Out7486124118
 Total273270323298

Pioneer aviator, Jean Batten.

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
     Passengers1 910 2122 132 6911 919 7411 807 364
     Freight and mail (tonnes)76 19182 31692 45284 190
     Kilometers flown (000)26 18230 25631 50634 593
North American Flight Stage
     Passengers421 167430 234465 135426 241
     Freight and mail (tonnes)19 22917 33919 35117 350
     Kilometers flown (000)15 39816 42418 28717 616
South American Flight Stage
     Passengers21 72324 2829 9688 256
     Freight and mail (tonnes)19121413081
     Kilometers flown (000)1 1141 0621 3331 250
Asian Flight Stage
     Passengers238 739329 274426 590470 927
     Freight and mail (tonnes)11 48513 93918 73319 780
     Kilometers flown (000)7 82312 73917 52121 453
Pacific Island Flight Stage
     Passengers409 782444 202433 965419 044
     Freight and mail (tonnes)15 05719 34420 03517 778
     Kilometers flown (000)8 4048 6629 2478 160

There are currently 22 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 nine of these carriers have begun services to New Zealand, one of them in 1991.

Table 20.11. AIRLINE OPERATIONS—DATE OF COMMENCEMENT AND ROUTES OPERATED

DateAirlineRoutes now operated

* Qantas, Canadian Airlines International and Japan Airlines operate code-shared services in conjunction with Air New Zealand. Canadian Airlines first commenced operating to New Zealand in 1949 but later discontinued its service. In 1985 scheduled services resumed and in 1990 the carrier began code-sharing services with Air New Zealand.

† Cathay Pacific operated between New Zealand—Papua New Guinea and Hong Kong between May 1983 and May 1984.

‡ American Airlines resumed operations in 1990 after operating between 1970 and 1974 only to suspend services again in March 1992.

§ Niue Airlines suspended services in June 1992.

1 Apr 1961Qantas*Sydney/Melbourne/Brisbane/Perth/Adelaide/Hobart/
  Cairns–Auckland/Christchurch/Wellington
  Sydney–Auckland–Los Angeles
4 Apr 1963British AirwaysLondon–Bangkok–Melbourne–Auckland
  London-Singapore-Perth-Auckland
2 Dec 1965UTANoumea–Auckland–Papeete
1 Oct 1974Air PacificSuva/Nadi–Auckland
1 May 1976Singapore AirlinesSingapore–Auckland/Christchurch
  Singapore–Sydney/Auckland (Freight)
25 Feb 1978Polynesian AirlinesApia-Tonga-Auckland Apia–Tonga–Auckland–Sydney
1 May 1979Continental AirlinesLos Angeles–Honolulu–Auckland–Sydney/Melbourne/Brisbane
1 Dec 1979Air NauruNauru–Auckland
1 Jul 1980Japan Airlines*Tokyo–Auckland Tokyo–Christchurch–Auckland
  Nagoya–Auckland
1 Nov 1985Canadian Airlines International*Toronto/Vancouver Honolulu–Auckland
  Toronto/Vancouver–Honolulu–Nadi–Auckland
3 Dec 1985Cathay PacificHong Kong–Auckland
20 Dec 1985Aerolineas ArgentinasBuenos Aires–Auckland–Sydney
11 Feb 1986United AirlinesHonolulu–Auckland–Sydney
  Los Angeles–Auckland
8 Nov 1987Air CaledonieNoumea–Auckland
5 Nov 1987Thai AirwaysBangkok–Auckland
4 Nov 1988Garuda IndonesiaJakarta–Denpasar Bali–Auckland
1 Nov 1989Air VanuatuPort Vila–Auckland
5 Dec 1989Malaysia AirlinesKuala Lumpur–Brisbane–Auckland
21 Feb 1990American AirlinesLos Angeles–Honolulu–Auckland
13 Jun 1990Solomon AirlinesHoniara–Port Vila–Auckland Honiara–Port
  Vila–Nadi–Auckland
16 Jul 1990Niue Airlines§Niue–Auckland*
1 Jul 1991Royal Tongan AirlinesTonga–Auckland

Air New Zealand operates to 17 countries in four continents. The arline offers services to seven gateways in Australia (Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart and Cairns) and also to Norfolk Island. In the Pacific, Air New Zealand operates to the Cook Islands, Western Samoa, Fiji, Tonga, Tahiti and New Caledonia. Thailand, Indonesia, Malaysia, Japan (Tokyo and Nagoya), Hong Kong and Taiwan are served in Asia and the United Kingdom and Germany in Europe. In North America services are available to both the United States (Honolulu and Los Angeles) and Canada (Vancouver and Toronto).

The Tasman route is the busiest air route into New Zealand in both the volume of passengers carried and the number of airlines operating. Eight airlines offer services between Australia and New Zealand and for the year ended March 1992 brought 935 235 passengers to New Zealand, including 420 142 New Zealand residents returning to New Zealand. For the same period 1 029 615 foreigners visited New Zealand. The greatest number of visitors to New Zealand are Australians, followed by the Americans and Japanese.

In order for an airline to operate scheduled services to or from New Zealand, the company must hold a valid air services certificate and an international air service licence. The certificate relates to the technical and safety procedures of the airline, ensuring that all necessary safety standards have been met, and is issued by the Director of Civil Aviation, and the licence, issued by the Minister of Transport, ensures that the services operated are in accordance with the bilateral arrangements.

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.

Table 20.12. SUMMARY OF SCHEDULED INTERNATIONAL AIR SERVICES

December yearPassengers carriedFreight carriedMail carried
Source Ministry of Transport.
 (000)tonnestonnes
1,9862 45796 8704,153
1,9873 001117 7694 385
1,9883 361128 6334 549
1,9893 263146 1234 936
1,9903 129134 0745 082

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*

DestinationDistance

* These are airport-to-airport great circle distances.

Source: Ministry of Transport.

 km
Adelaide3 247
Apia2 893
Brisbane2 293
Hong Kong9 145
Honolulu7 086
Los Angeles10 480
Melbourne2 635
Nadi2 156
Norfolk Island1 091
Noumea1 859
Pago Pago2 902
Papeete4 093
Perth5 400
Port Moresby4 126
Rarotonga3 013
San Francisco10 503
Singapore8 410
Suva2 141
Sydney2 158
Tokyo8 837
Tonga2 004
Townsville3 359

Airports. All three international airports are operated by airport companies. The three companies have a mixture of central government and local government ownership. Auckland International Airport Limited, the largest airport company, is majority-owned by central government, as is Wellington International Airport Limited, the smallest. Christchurch International Airport Limited is majority-owned by the Christchurch City Council. Corporatisation has resulted in many changes at the airports, but the airport companies longest established are experiencing increasing profitability as the greater commercial focus made possible by corporatisation brings benefits.

In addition to the international airports, there are now six additional airport companies operating provincial airports ranging in size from Dunedin Airport Limited to the smallest airport company, Chatham Islands Airport Limited. Both the tourist centres of Queenstown and Rotorua now have aiports operated by airport companies, resulting in improved levels of service to tourists visiting those locations. The recent moves by the governments of Australia and New Zealand to form a single aviation market brings new challenges to New Zealand's major airports and corporatisation gives the airports the flexibility to make the most from the upcoming changes.

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. Three freight carriers operate out of New Zealand (Singapore Airlines, Pel-Air and National Airlines).

Table 20.14. OVERSEAS AIR CARGO TRANSPORTED BY TYPE, 1992*

CommodityLoadedUnloaded
Grass tonnesf.a.b. $(000)Gross tonnesc.i.f. $(000)

* Year ended 30 June.

† Not elsewhere specified.

Food and live animals46 440467,0708 58652,265
Beverages and tobacco1117883203,670
Crude materials2 680118,84438415,054
Mineral fuels1410285632
Animal and vegetable oils, fats9442726439
Chemicals and related products n.e.s.3 64086,8516 402460,297
Manufactured goods10 816251,6759 486321,324
Machinery and transport7 226888,68915,5761,653,322
Miscellaneous manufactured articles7 592488,02814 277931,984
Commodities n.e.s.11137,42168,861
            Total78 6252,439,89555,1493,447,848

Table 20.15. OVERSEAS AIR CARGO BY COUNTRY, 1992*

Destination/sourceLoadedUnloaded
Grass tonnesf.o.b. $(000)Gross tonnesc.i.f. $(000)

* Year ended 30 June.

† Includes other countries.

Argentina15111,512201,973
Australia36 9191,160,01835 4401,404,606
Austria571,608959,681
Bahrain531,5387
Belgium77111,21416612,895
Canada1 39040,52923239,818
Chile121,32524687
China (People's Republic of)643,378622,473
Cook Islands5008,2509604,111
Denmark413,70816724,074
Fiji1 01032,3361 15727,630
Finland432,0485613,903
France58125,15037454,715
French Polynesia2 62217,7197629
Germany (Federal Republic of)1 51938,6251 334116,112
Guam601,42914
Hong Kong2 55774,82068051,659
India221,39927715,428
Indonesia2244,705712,481
Ireland332,94910920,334
Israel91,207195,973
Italy33124,81153579,834
Japan11 690183,7161 368174,559
Korea (Republic of)45743,19616810,578
Malaysia51436,6211537,739
Mexico281,2947933
Nauru421,4481142
Netherlands27153,30650339 125
New Caledonia8927,1765167
Norfolk Island1292,711452
Norway242,291607,236
Pakistan2816552,506
Papua New Guinea1205,9275655
Philippines1263,079342,972
Poland72,26128
Puerto Rico72,372122,432
Samoa82016,180551,514
Saudi Arabia811,90221
Singapore1 91080,18890887,072
Solomon Islands412,442139
South Africa1095,799211,285
Spain735,6337110,018
Sweden1426,47531659,621
Switzerland1 18241,26450580,228
Taiwan96921,52466454,348
Thailand14511,0221498,040
Tonga932,76521692
United Arab Emirates401,4371104
United Kingdom97676,7082 759265,072
United States8 363331,0055 409733,148
Vanuatu661,907158
            Total78 5982,439,37155 1483,447,807

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 flights321 077502 262390 655493 785522 728
     Hours flown22 88633 60527 85337 12036 829
     Tonnes dropped:
          Fertiliser257 350393 284311 241422 978396 796
          Lime47 43956 32237 48545 57253 068
          Seed2 0793 228882605713
          Poison baits3 3853 3843 9115 03711 192
          Other*9071 945611771469
          Total311 160458 162354 130474 963462 237
     Hectares treated1 541 5442 391 3312 260 3122 588 4602 926 835
Liquids
     Number of flights71 61977 36557 32266 53760 403
     Hours flown11 02811 41410 21211 46611 843
Litres dropped:
          Fertiliser1 270 1191 737 2441 777 9593 521 0363 927 141
          Insecticides895 604858 989861 6211 118 0911 133 335
          Fungicides4 868 7064 370 9294 177 3004 478 3713 081 663
          Weedkillers21 942 85218 792 26416 303 99317 071 50917 219 098
          Other125 416145 635224 493241 464505 376
          Total29 102 69725 905 06123 345 36526 430 47125 866 613
     Hectares treated528 539690 471712 293892 592976 596
Supply dropping
     Number of flights32 81110 23810 5744 4322 885
     Hours flown3 9422 8751 956898797
     Tonnes distributed10 6024 4964 2141 8171 060
Fencing materials
     Number of flights12 9633 0962 8201 8102 539
     Hours flown797489405213224
     Tonnes distributed2 1699581 085650814
Venison recovery
     Number of flights3 4591 4723 587750652
     Hours flown3 0781 9361 553845808
     Tonnes distributed2 0141761 317240271
Photography and survey
     Number of flights6 64210 0206 7073 5243 785
     Hours flown6 9206 4776 5645 0638 654
All other work
     Number of flights33 01828 65532 90334 81632 268
     Hours flown10 4449 55711 9269 5409 012
Total, all aerial work
     Number of flights481 589633 108504 568605 654625 260
     Hours flown59 09666 35360 46965 14568 167
Total, non-productive hours9 5149 14011 7828 6748 578

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 (Welling-ton-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 Railtechnology) 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 215 000. A new commuter service was launched during the eight month period, the Captial Connection, which operates between Palmerston North and Wellington. The InterCity road coach service was sold in 1991.

The Interisland Line carried around 49 000 rail wagons, 16 000 trucks, 131 000 cars and over 655 000 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.

Railnet 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

Category            As 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 Islandkm2 5552 5552 5552 578
     (electrified)km85139510510
     South Islandkm1 8631 7111 7111 491
     (electrified)km14141414
Bridgesno...2 3032 3032 188
 km..68.7168.7164.63
Tunnelsno.172165165153
 km92.6391.5391.5389.69
Locomotives—
     diesel/diesel-electricno.508416270259
     electricno.1152827
     steamno.222
Rolling stock*
     freightno.26 89918 30512 39610 067
     passenger (incl. motorised)no.442171212256
Passengers carried—
     long distanceno.899 555845 202....
     suburbanno.13 440 35214 203 287....
Total freight carriedtonnes11 520 4019 003 516....

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.

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.

Railnet workers replacing lines with heavier gauge track, Waiau River Bridge, North Canterbury.

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 94 500 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 17 854 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.

Land 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 reading, safety (construction and maintenance), passenger transport, state highways, research, administration 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.

Work continuing on ramp over State Highway One at Porirua. The $12.4 million project includes the removal of the present bridge over Porirua Stream, realigning the stream and modifying intersections in the city centre because of changes that will occur in traffic flow.

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 reading.

  • 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 11 449 kilometres of roading. This network includes major routes that carry the greatest volume of traffic between residential communities, commercial and industrial areas. In addition, there are 14 859 kilometres of urban roads and 68 007 kilometres of rural roads, making a total of 94 315 kilometres of developed roading, which includes 15 612 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.

ROADING

Total length by type of road surface

Table 20.18. FORMED ROADS AND STREETS

Nature of surfaceLocal authority roadingState highways and motorwaysTotal
Urban areasRural areas
Source: Transit New Zealand.
 kilometres
At 30 June 1991
Paved or sealed14 374.128 242.311 075.153 691.5
Metal or gravel421.738 428.8419.739 270.2
            Total, maintained roads14 795.866 671.111 494.892 961.7
At 30 June 1992
Paved or sealed14 411.929 690.811210.055 312.7
Metal or gravel447.538 316.3238.939 002.7
            Total, maintained roads14 859.468 007.111 448.994 315.4

Roading taxation is described in section 25.2, Taxation.

Table 20.19. EXPENDITURE ON STATE HIGHWAYS

Class of expenditure19891990*19911992

* Fifteen month financial year to 30 June 1990.

† Excludes motorway structures.

‡ Maintenance figures include the cost of flood damage repairs when applicable.

Source: Transit New Zealand.

 $(000)
Construction and improvement59,785142,03959,94868,219
Bridges and other structures11,15120,7767,9316,453
Maintenance, repairs, etc.197,856238,567228,888225,499
            Total268,792401,382296,767300,171

Table 20.2. PUBLIC ROADING EXPENDITURE

Item19891990*19911992

* Fifteen month financial year to 30 June 1990.

† previously known as the National Roads Fund.

Source: Transit New Zealand.

 $(000)
State highways expenditure268,792401,382296,767300,171
Special purpose roads3,0562,3041,6932,171
Local authority roading expenditure—
     From local authority funds272,734......
     From Land Transport Fund242,190292,142205,359226,312
            Total786,772695,828503,819528,654

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: 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.

Sydenham overbridge, Christchurch.

Table 20.21. LICENSED MOTOR VEHICLES

Type of vehicleAt 31 March
19911992

* Split into discrete classes in 1991.

† Recent changes in licensing rules have led to an increase in the number of exempt vehicles.

Source: New Zealand Post

Cars1 539 8091 542 912
Rental cars8 2838 438
Goods service vehicles*
Goods service cars2 3772 353
Light trucks, vans, utes234 652242 644
Heavy trucks64 14964 293
Taxis3 2503 572
Buses and service coaches8 3657 328
Trailers369 301369 048
Motorcycles73 54665 442
Mopeds1 2071 234
Trade plates D4 8994 588
Trade plates C595574
Miscellaneous17 30216 687
Exempt vehicles21 53422 755
Total, all vehicles2 349 2692 351 868

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

1,98684717 90718 23230 21812 39841980 0213 94613 372
1,98774618 56620 51029 16019 71792989 62812 12912 609
1,98869017 79627 31028 30614 08440388 58917 3728 968
1,98988021 49644 06650 00018 137309134 82850 9665 796
1,99068319 75156 43884 18118 391302159 74685 3244 897
1,99180610 52335 36141 60114 497178102 96647 3514 042

Table 20.23. REGISTRATIONS OF NEW COMMERCIAL VEHICLES

December yearNew commercial vehicles by gross weight in kilogramsTotal commercial vehicles
2500 or less2501 to 45004501 to 90009001 to 14 50014 501 and overOmnibus and service coaches
Source: New Zealand Post.
1,98810 8872 92087170283244016 652
1,98916 1733 96891859286176323 275
1,99018 3058 2999185031 03738329 445
1,99114 9897 47783136978453524 985

Not included in the above tables are new tractors, of which there were 711 in 1988,907 in 1989, 863 in 1990 and 752 in 1991.

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.

MOTOR VEHICLES

Number licensed

Table 20.24. LICENSED VEHICLES BY POPULATION

As at 31 MarchNumber of persons in population per carNumber of persons in population per motor vehicle*

* Excluding trailers and caravans.

1,9902.291.77R
1,9912.241.74R
1,9922.211.72

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 30 June 1992 there were 164 590 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.

Motor car racer, Sybil Lupp.

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.

Transport to work

Table 20.25 shows the main means of transport used by those persons employed in the full-time labour force to travel to work on the day of the 1991 Census of Population and Dwellings.

A large section (50.0 percent) drove a privately-owned car, truck or van to work, while a further 14.6 percent drove a vehicle owned by the employing company. The public transport system serviced only 4.7 percent of those travelling to full time work, with buses contributing 3.8 percent and trains only 0.9 percent.

Among the less common employment related means of transport are walking (7.3 percent) ‘other’ (1.1 percent), travelling as passengers in cars, trucks or company buses (7.7 percent), by bicycle (4.7 percent) and as riders of motorcycles or powercycles (2.6 percent). The remaining 7.3 percent worked at home.

Significant patterns of travel to work at the 1991 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, powercycles or bicycles 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, 1991 CENSUS

Means of transportEmployed in full-time labour force*
MalesFemalesMales as percentage of total
NumberPercentageNumberPercentage

* Population resident in New Zealand aged 15 years and over working 30 or more hours. Excludes those unemployed and seeking fulltime work. Excludes those who did not go to work on the day of the census.

† Includes jogging or running.

Public bus16 4852.423 5866.241.1
Train5,4660.84,4791.255.0
Drive private vehicle310 36245.8217 88157.558.8
Drive company vehicle138 15020.416 6654.489.2
Passenger in car, truck or company bus39 2945.841 62511.048.6
Bicycle38 4365.711 6643.176.7
Motorcycle, powercycle24 2973.63 1680.888.5
Walk46 6356.930 3428.060.6
Other8 8531.32 7450.776.3
Work at home50 0527.426 7397.165.2
Not specified10 8876 13564.0
            Total688920100.0385 023100.064.1

Road safety

Road safety is administered by the Ministry of Transport and the laws are enforced by the New Zealand Police.

Police 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 assist with the licensing of road transport services (such as taxis, buses and tow-trucks).

Effective from 1 July 1992 the Traffic Safety Service (both enforcement and support services) of the Land Transport Division of the Ministry of Transport merged with the New Zealand Police. The combined service is able to concentrate enforcement resources, targeting serious traffic offences and related crime in a concerted bid to reduce the road toll.

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 August 1987 and less than six 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.

An anti-skid training vehicle on Wellington's waterfront. Anti-skid cars are used for teaching drivers how to maintain control on simulated oil, mud and gravel surfaces.

Alcohol impairment. Police 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 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. An 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 under the age of 20; 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 or under the age of 20.

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.

DRINK-DRIVING

Convictions per 10 000 population

Traffic offences

Penalties are awarded by courts for driving and other offences under the Transport Act 1962 and attendant regulations. There is also a system in operation whereby points are automatically registered according to a fixed scale against people convicted of driving offences.

The Secretary for Transport has authority to suspend drivers' licences for six months where 100 or more demerit points are received in less than a year, or for three months where this number of points is received within two years. The demerit scale for speeding offences has been increased from 15 to 35 points. Official notice of more than 60 points is given in writing.

Breaches of certain laws are dealt with under an infringement system whereby a motorist may pay an infringement fee within a certain time to avoid court proceedings.

The following table covers only offences reported by officers of the Ministry of Transport; in addition traffic prosecutions are taken by the police, particularly for serious offences, following accidents or other police investigations.

Table 20.26. TRAFFIC OFFENCES REPORTED*

Type of offence199019911992

* Years ended 31 December.

† Includes infringements and notice to prosecute offences.

Source: Police.

Accident-promoting offences—
     Driving or attempting to drive under the influence of drink or drugs362435479
     Breath/blood alcohol offences6 0745 7915 471
     Evidential/excess alcohol16 04716 54615 875
     Failure to fulfil duties after an accident1 8981 9611 765
     Reckless driving226247197
     Driving in a dangerous manner1 3171 3631 288
     Driving at a dangerous speed397356351
     Driving without reasonable consideration159167216
     Careless use of a motor vehicle17 11717 11416 563
     Overtaking offences566714754
     Failure to keep to the left2 3273 1533 111
     Failure to yield right of way2 4993 1923 048
     Failure to stop/following too close3 6984 9425 059
     Exceeding 50 km/h48 91660 01961 617
     Exceeding 70 km/h1 9752 5952 953
     Exceeding 80 km/h81122107
     Exceeding 100 km/h2 47925 13324 208
     Exceeding temporary speed limits214264258
     Exceeding by-law speed limits74100123
     Failure to stop at traffic lights6 87410 2759 311
     Failure to stop at compulsory stop sign3 7994 9954 863
     Failure to give way at give way sign1 3991 7631 787
     Failure to yield right of way at pedestrian crossing514682675
     Failure to stop or give way for siren699
     Failure to comply with road signs1 7802 2602 279
     Failure to wear safety helmet7561 130936
     Provisional motor cyclist exceeding 50 km/h112
     Exceeding 70 km/h with trailer/heavy vehicle52
     Exceeding 80 km/h with trailer1 2861 5471 440
     Exceeding 90 km/h with trailer273336
     Exceeding 90 km/h with heavy motor vehicle while towing262426
     Exceeding 90 km/h with heavy motor vehicle7380
     Defective brakes536156
     Lighting offences1 8282 1232 019
     Failure to dip lights586156
     Mechanically defective or unsafe vehicle2 2112 9502 994
          Subtotal127 429172 305169 996
Non accident-promoting offences—
     Failure to obey officer6 7456 4936 094
     Owner failing to supply information4687701 019
     Failure to pay overloading infringement fee101
     Warrant of fitness offences21 2761 7821 713
     Certificate of fitness offences1 411236236
     Certificate of loading offences207219241
     Exceeding certificate of loading2034261
     Cng and lpg offences264261
     Road user charges6 5228 3189 144
     Driver's licence offences23 13834 36832 310
     Driving whilst disqualified7 3017 3767 520
     Probationary drivers' offences7 43274
     Vehicle licences and registration offences15 93028 06135 128
     Safety-belt offences12 03915 20713 378
     Noisy motor vehicles189280258
     Emitting excessive smoke65117160
     Loading offences1 3191 4571 304
     Other nuisances130181137
     Cycling offences1 7913 2402 821
     Pedestrian offences604943
     Transport service licence offences1 0081 144
     Hazardous substances offences transport service licence offences281388
          Subtotal106 376145 971153 975
Other notices issued—
          Parking infringements and offences11 01712 673s11 842
            Total listed offences and infringements244 822330 949335 813

TRAFFIC CONVICTIONS

Rate per 10 000 population

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 management of the radio frequency spectrum, and the administration of the Telecommunications Act 1987, Postal Services Act 1987 and the Radiocommunications Act 1989.

On 1 October 1987, the phased deregulation of the customer premises equipment market began, initially covering residential wiring and telex equipment, extending to telephones on 1 May 1988, and PABX equipment on 1 April 1989. On 1 April 1989 the Government's decision to fully deregulate network services was implemented.

Competition in the industry is developing from a number of sources. In the equipment market, over 190 companies and individuals hold “Telepermits”, allowing them to supply equipment that can be attached to the Telecom network. In the value-added market, there are now numerous suppliers of such services as packet switching, payphones, and private networks. In network services, Clear Communications Limited has entered the market, offering domestic and international toll, and leased line services.

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:

  • Post Shops (formerly post offices).

  • 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.

  • Stamp booklet outlets such as supermarkets and garages.

One of NZ Post's Rapid Electronic Address Decoder (READ) machines. They can sort up to 30 000 letters an hour, by reading the envelopes' addresses in one eighth of a second. The READ machines cannot sort hand written addresses.

Table 20.27. TOTAL NEW ZEALAND POST OUTLETS

As at 1 September 1992Number
Source: New Zealand Post.
Post shops275
Post delivery centres533
Stamp retailers860
Stamp booklet outlets680
            Total2 348

Besides the provision of letter and parcel delivery and retail 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 7000 staff in its 275 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
19911992
Source: New Zealand Post.
Deliveries to—number
     Households1 002 4651 025 695
     Businesses—
          by delivery51 04650 431
          by business and individual box and bag148 057148 859

Postal volumes. For the year ending 31 March 1992, New Zealand Post carried 633 316 000 Post medium letters (1991: 629 736 000) and 15 848 000 Fast Post medium letters (1991: 16 976 000).

Overseas mail services. Surface 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 15 stamp issues during the 1991 calendar year. A variety of philatelic products are sold by mail order through the Philatelic Bureau at Wanganui, at philatelic sales centres and through Post Shops.

Table 20.29. NEW STAMPS RELEASED DURING 1992

DateIssueDenominations
Source: New Zealand Post
22 JanuaryAmericas Cup45c, 80c, $1.00 $1.50
12 MarchExplorers—Abel Tasman, Christopher 
 Columbus45c, 80c, $1.00, $1.50
3 AprilOlympic design45c
8 AprilSeals45c, 50c, 65c, 80c, $1.00, $1.80
13 May1992 Olympics45c, 80c, $1.00, $1.50
 Miniatures sheet45c, 80c, $1.00, $1.50
12 JuneScenic—glaciers45c, 50c, 80c, $1.00, $1.50, $1.80
8 JulyCamelias45c, 50c, 80c, $1.00, $1.50, $1.80
12 AugustHealth—tennis and cricket50c, 85c
 Miniature sheet$1.00, $1.70
12 AugustFrama45c
1 SeptemberScenic booklet45c x 10
16 SeptemberChristmas45c x 4, 65c, $1.00, $1.50, $1.80
4 November1920s45c, 50c, 80c, $1.00, $1.50, $1.80

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, Housing New Zealand payments, 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 $96 million to its shareholder—the Government. A turnover of $526 million was recorded for the 1991–92 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

Telecom Corporation of New Zealand Limited is the leading supplier of telecommunications services in New Zealand and operates one of the most technologically advanced telecommunications networks in the world. The advanced digital network is the result of a $3.3 billion modernisation and investment programme. This programme was begun in 1987 to prepare Telecom to operate competitively in one of the most open and deregulated environments in the world. Today, 95 percent of the total number of lines are connected to digital exchanges.

Telecom has been privately owned since September 1990 when it was purchased from the Government for $4.25 billion. The purchaser was a consortium of two leading United States telecommunications suppliers, Bell Atlantic and Ameritech, and two New Zealand companies, Fay Richwhite and Freightways. In July 1991, 10 months after privatisation, Bell Atlantic and Ameritech sold about 31 percent of shares in Telecom to the public. The $1.45 billion sale was the major contributor to the total equity of $2.16 billion raised on the New Zealand share market in 1991.

Telecom provides local, national and international telephone services and a wide range of other telecommunication services, including cellular telecommunication, data communications, leased circuits, directories, paging and mobile radio. Telecom is also the major distributor of telecommunication equipment in New Zealand. Collectively these activities account for approximately 25 percent of revenue, but are an area of rapid growth.

All telecommunication services in New Zealand, including the basic network, have been open to unrestricted competition since 1989. There are approximately 150 providers of telecommunications services in the New Zealand marketplace, including providers of private network, long distance and cellular services. The notable exception where Telecom faces no competition is the residential local telephone service (where restrictions on introducing or raising certain charges remain).

TELEPHONES

Per 100 population

Since 1988 Telecom has been progressively introducing volume-based charging, to replace distance-based. The number of charging steps has been reduced from 10 to eight and special rates have been introduced on a number of major routes; the average national call price dropped 58 percent from November 1988 to March 1993. This is part of the planned implementation of a tariff rebalancing programme which will reduce cross-subsidies among services and establish prices more accurately reflecting the real cost of services.

Within the Asia-Pacific region, Telecom is well placed to participate in telecommunications investment opportunities. The corporation recently bid for major contracts in Australia and Indonesia, and Pacific Star (a Telecom/Bell Atlantic joint venture) has been appointed to manage the Queensland State Government telecommunications network.

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. The network is one of the most advanced in the world, with 93 percent of customers served by digital exchanges. Customers connected to a digital exchange have an additional range of telephone services available.

Telecommunications services by cable, satellite, and radio are available to almost all countries of the world. Competition is emerging in the provision of international services with Telecom, CLEAR Communications and AUSSAT Pty Limited (the Australian satellite operator) offering services overseas.

Cellular and other mobile services, including paging and mobile radio, continued to develop rapidly in 1992. Telecom began operating a cellular network based on the AMPS-B frequency in 1987. The network, which provides extensive land and marine coverage, is currently available to 95 percent of the New Zealand population, with more than 2 percent of the population using cellular phones. Telecom began introducing a digital cellular network in 1992, after winning the AMPS-A cellular frequency in open tender in 1990. BellSouth continues its preparations to offer a cellular telephone service in New Zealand, using the TACS-A band of radio spectrum. Competition was further increased in 1992 when the fourth cellular frequency, TACS-B, became re-available for sale.

Digitalisation and the rapid installation of optical fibre cable throughout New Zealand continue to increase the network's capacity to carry voice, data and image transmissions at extremely high volumes and speed. An integrated services digital network (ISDN) which enables simultaneous voice, data, and video transmission was commissioned in 1992. As a result, a growing number of customers are using video conferencing services to link up with people in other places in New Zealand and overseas. A new trans-Tasman optical fibre cable system (TASMAN 2) was installed in 1992.

A new satellite telecommunications service between New Zealand and Antarctica's Scott Base was introduced in January 1992. Through the data service, Scott Base staff are able to connect to the DSIR computer network in New Zealand and through gateways from there to international science and computing networks. Scientists based in New Zealand and other countries are able to log into their Antarctic experiments, helping them to manage them from many thousands of kilometres away.

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 August 1992 it had gained over 12 percent of the national toll market.

Subscribers can make both national and international toll calls through existing telephone equipment by dialling CLEAR's prefix, 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 1993.

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.

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
1989199019911992

* This information is not available after 1991 due to commercial sensitivity.

Source: Telecom Corporation of New Zealand.

Telephones (000)
     Subscribers1 4061 4441 4811 504
     Applicants awaiting service1111
            Total demand1 4071 4451 4821 505
     Main line telephones (per 1000 population)440485495438
Exchanges (number)
     Automatic816836836748
     Manual75
     Percentage of subscribers served by automatic exchanges99.9100100100
Toll service*
     Inland toll calls (million)224.6275.5314.4
     Percentage increase in toll traffic11.722.714.1
     Percentages of subscribers with direct dial facilities99.499.9100.0100.0
     Outward international toll calls (000)20 23025 79029 110

Telegrams. The inland and international telegram service is operated by The Telegram Company, a division of Netway Communications Limited. The company is operated by Synet Communication Limited (a direct subsidiary of NZ Post), following the sale of The Telegram Company by Netway Communications in December 1991.

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 include leased and switched data services, as well as a number of services such as EDI and Electronic Mail.

Digital Data Service (DDS) provides a wide range of dedicated, point-to-point and multipoint managed data services. Available speeds range from 2.4 Kbps to 1.92 Mbps. DDS is provided over a specialised technology platform known as the Digital Services Transmission Network (DSTN).

Switched Data Services include Pacnet, a public packet switched data network providing dial-up and dedicated X25 service for both national and international use. A number of Managed Data Networks are provided to large corporate customers by Telecom including GCS Net to the Government Computing Service. These services are also provided via NetX, the packet switch network of Telecom's fully owned subsidiary, Netway Communications Limited.

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.

Telecom Transaction Service (TTS) is typically used for EFT-POS applications within the banking industry. Increasingly, TTS is being used for both credit and debit transactions and its use is being extended into the oil industry, and the hospitality industry where restaurants and hotels find it a convenient service to offer their customers.

The Alarm Transport Service (ATS) is a packet switch based service for transferring fire and security alarm information from customer sites nationwide to centrally located monitoring and dispatch centres.

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 operates 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 1 and TASMAN 2 cables to Australia and the ANZCAN cable which connects to North America. By 1994, New Zealand will be fully connected to an international network of fibre optic cables ringing the Pacific Rim. These cables consist of the TASMAN 2 cable commissioned in 1992, the Pac Rim East cable to Hawaii which will be commissioned in 1993 and the Pac Rim West cable to Guam to be commissioned in 1994.

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.

Special articles

Transport Accident Investigation Commission; Bronwyn Labrum (Jean Batten), The Book of New Zealand Women, eds Macdonald, Penfold and Williams, Bridget Williams Books Limited, 1991.

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 Transit New Zealand (annual).

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

Buyers at Wellington's Produce Exchange.

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 disappeared 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 allow greater 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 anti-competitive 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. More up-to-date summary information is provided 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.

Vegetable buyer, Wellington.

Table 21.1. DISTRIBUTION: STATISTICAL SUMMARY

Statistical item1986–871987–881988–89
 number
Group enterprises2 6342 5592 573
Enterprises within these group enterprises4 4024 1903 927
Enterprises not within these group enterprises39 55638 18440 684
Activity units (including ancillaries)52 97351 00452 897
Full-time equivalent persons engaged292 204279 268278 173
Stocks
     closing7 345 1488 034 6088 339 258
     opening7 004 6047 833 0187 537 034
 $(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/partners 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 persons 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 assets21.721224.2

21.1 Controls on trading

Consumer affairs

Fair Trading Act 1986. This Act came into force on 1 March 1987. It is important for all consumers and businesses in New Zealand as it:

  • Consolidates the laws on misleading advertising.

  • Prohibits deceptive or misleading conduct and “false representations” about the provision of goods and services.

  • Prohibits certain unfair trading practices.

  • Provides for new consumer information and product safety standards.

Any person (including those who may not be directly affected by a particular breach) can take action if he or she believes the Act has been contravened.

Those breaching the criminal provisions of the Act can be fined up to $ 100,000. Damages can also be awarded against businesses. Enforcement of the Act's general provisions is undertaken by the Commerce Commission.

Early morning delivery of frozen meat, Wellington.

Ministry of Consumer Affairs. The purpose of the ministry is to promote a fair and informed marketplace for consumers so that they can participate effectively in it. This is achieved by the:

  • Provision of policy advice to the government on issues affecting consumers in the marketplace.

  • Provision of information and advice to consumers and traders.

  • Administration of consumer legislation for the benefit of consumers and traders.

Policy advice is provided to the government on consumer law reform, in particular the operation of the Fair Trading Act 1986, consumer credit legislation, post-sale legislation (the Consumer Guarantees Bill, which was introduced in March 1992), weights and measures legislation, product safety standards, and marketplace regulation issues. In formulating policy, consultations are held with consumer/community groups, government departments and traders.

Consumer awareness is promoted by a consumer education resource programme in schools and teaching institutions; consumer education resource programmes in the community; and consultation with the community in developing education materials. Consumer representation on statutory and governmental boards is encouraged.

The ministry's Consumer Advice Service, with toll-free lines based in Auckland, Wellington and Christchurch, handles general enquiries from consumers about their legal rights and assists 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. The unit has offices in Auckland, Palmerston North, Wellington and Christchurch. An accreditation programme has been introduced to enable private sector firms to certify weighing and measuring equipment.

The ministry was established in 1986. It operates as a division of the Ministry of Commerce but its head reports directly to the Minister of Consumer Affairs.

Consumers' Institute. The institute is a consumer protection and publishing organisation. Membership is through subscription to one of its magazines, and at the end of 1991 there were over 103 000 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, professional 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.

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.

Busy food barn', Dunedin.

Brewer checking the day's product at boutique brewery and pub, Wellington.

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.

Liquor selection, Wellington.

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.

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.

1988*16 0615 187158 032
1989*12 3469 390160 988
1990*11 28912 377159 922
1,99110 95314 984153 275
1,99212 33011 144154 526

NEW COMPANY REGISTRATIONS

Related to size of population

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 Companies Bill and associated legislation is presently before the House.

An important principle of the current 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.

Shoemakers, Wellington.

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 of the supply of 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 are deemed to 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. Established under the Securities Act 1987, the fundamental mission of the commission is to facilitate private capital investment in New Zealand by: improving the efficiency and fairness of the markets for the security of entities which raises funds from the public in New Zealand; and enhancing public confidence in these markets, while minimising the need for (and the cost of) intervention in these markets by the government and by agencies funded by the government.

The overall objectives of the work of the Securities Commission are to:

  • Ensure that investors and prospective investors are informed reasonably, fairly, truthfully and promptly of: the nature of their investment contracts; the financial position and performance of the entities in which they have invested or propose to invest; and of the material interests of the persons who direct these entities or promote any offerings of their securities.

  • Encourage improvements in the standards of ethics and business practices in the markets for securities.

  • Encourage improvements in the procedures for transacting business in the markets for securities.

  • Improve public understanding of the law and practices of the securities of public issuers.

  • Achieve closer economic relations with companies and securities regulators in other countries and to contribute to the harmonisation of business law and regulatory practices between countries, for the purpose of improving efficiency and of reducing malpractice in across boarder securities transactions.

The commission also aims to comment on business law and practices; the administration of securities law; and the public understanding of business law and practices.

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.

Elspeth Kennedy, stockbroker. In 1982 she was the only woman in New Zealand employed on a metropolitan Stock Exchange.

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, 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.

SHARE PRICE INDEX

Gross index

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 and be approved by the board which is guided by qualifications, financial standing and experience. No entry fees are required but trading members are subject to extensive capital adequacy requirements and regulations governing the operation of their sharebroking businesses.

There were 139 New Zealand companies and 57 overseas companies listed with the exchange at 31 December 1991.

New technologies, changed management and regulatory approaches continue to have an impact on the way the New Zealand Stock Exchange operates and the way the market conducts its business. These changes include the introduction of a computerised trade matching and settlement system in 1988, a Market Surveillance Panel in 1989, an automated screen trading system in 1991, and the FASTER system of electronic transfer of securities. They have improved the conduct and efficiency of the market, reduced the risks associated with the activity of trading and have enhanced the openness and fairness of market activities.

Market surveillance panel. A market surveillance panel was established by the exchange to administer and enforce the new fisting requirements implemented in 1989.

The panel has proved extremely successful, and there has been full acceptance by companies and investors alike. This has reinforced the view that self-regulatory measures can operate to the overall benefit of market participants.

The listing requirements were further revised and amendments introduced in February 1991. The revision saw the introduction of new policy on late reporting, disclosure of relevant information, independent requirements for appraisal reports and shareholder approval of transactions with associated parties, and for restrictions on voting. The latter two amendments are seen as major steps forward in shareholder protection.

The market surveillance panel has recently conveyed recommendations to the Board of the Exchange for further amendments to the listing requirements to the effect that companies' auditors are not regarded as an appropriate source of appraisal reports and that the boards of listed companies should include “independent” directors.

The exchange's rules and regulations were further revised and introduced on 17 June 1991, to cover screen trading, short selling and a revision of the existing disciplinary rules. Further review to New Zealand stock exchange regulations and the listing requirements during 1992 provide for the electronic transfer of securities.

A new Companies Bill and subsequent amendments are before Parliament to replace the Companies Act (1955). Securities laws are under general review and a formal reporting regime has been announced, including the establishment of an Accounting Standard Review Board. Legislation is before Parliament to permit electronic transfers, and ‘paperless trading’ is anticipated sometime during 1992.

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.

1,9876865431 229
1,9881 1697051 874
1,9891 1707521 922
1,9909019021,803
1,9912 410

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 group19871988198919901991

* Includes unemployed from 1990. Note: This information is also available quarterly from March 1990.

Professional, technical, and related workers5584886487
Administrative and managerial workers73142185211249
Clerical and related workers2625543561
Sales workers159235183194248
Service workers9516111690115
Agricultural, animal husbandry, and forestry workers, fishermen, and hunters12916714581106
Production and related workers, transport equipment operators, and labourers310447437313455
Not actively engaged/unknown*3826137148151 089
            Total bankruptcy petitions1 2291 8741 9221 8032 410

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.
1,988369468363
1,9891 1038311 063
1,9908401 0122 597
1,9916561 033707
1,9926601 063759

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 scheme 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 is moving to deregulate commercial earthquake insurance by phasing out the Earthquake and War Damage Commission. It is also intended that the commission's cover of domestic property will be limited to a replacement value of $100,000 and its cover of domestic contents to a replacement value of $20,000.

Historically, government has also been involved in both fire and general and life insurance through government-backed life insurance and mutual funds, but in recent years has withdrawn from these activities.

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.

Ministry of Commerce, Wellington.

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 39 life insurance enterprises as at February 1992.

The non-life insurance market is divided amongst 128 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 53 medical and 75 general insurance enterprises operating in New Zealand as at February 1992.

The New Zealand premium pool is divided approximately: 16 percent commercial fire business, 26 percent domestic fire, 40 percent motor, 14 percent general accident, 1 percent marine hull and 3 percent marine cargo.

The Annual Business Directory update recorded 9045 persons employed within the industry as at February 1992. The premium pool as at 31 December 1991 was:

  • Life (including superannuation) $1,673 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.

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.

Coffins on display at funeral furniture ‘trade-show’, Wellington.

As at 31 March 1992 there were 56 709 contributors to the Government Superannuation Fund and they paid $149.08 million into it during the year. At the same time there were 45 451 beneficiaries who received $453.53 million during the year.

Total assets at 31 March 1992, which amounted to $2,804.58 million included investments in government stock of $1,366.56 million and $72.21 million in members' mortgages before tax. The average effective interest earning rate before tax of the fund was 14.99 percent for the year.

National Provident Fund. With approximately $3 billion in total assets, the National Provident Fund is New Zealand's largest superannuation fund and provides superannuation schemes for both employer/employee groups and individual members. The Board of Trustees of the National Provident Fund, which is appointed by the Minister of Finance, is the trustee for each of the 17 superannuation schemes.

In line with the requirements of the National Provident Fund Restructuring Act 1990, National Provident Fund was split into 17 separate superannuation schemes, each with its own scheme trust deed. These schemes were closed to new members on 1 April 1991. Previously administered as an omnibus fund for all the schemes, the assets of the 17 schemes have now been restructured and are now managed through a Global Asset Trust.

To meet a further requirement under the Act (to determine the most appropriate future management arrangements for the National Provident Fund schemes and assets), the board of trustees conducted an international tender process. That process was concluded in December 1991, and new management arrangements have been in place since 1 April 1992.

The assets held in the Global Asset Trust are currently managed by 13 separate specialist fund managers. Custody requirements are provided by a global custodian, State Street New Zealand Limited. Management of the property assets and a portion of the cash and fixed-interest assets has been retained within the Executive Office of the Board of Trustees of the National Provident Fund, a small office comprising a group of investment, financial, actuarial, legal and support staff previously employed by the National Provident Fund Department.

Administration of the 17 National Provident Fund superannuation schemes is contracted to Jacques Martin Limited, a subsidiary of Melbourne-based Jacques Martin Pty Limited. The changeover in managmeent arrangements has not changed fund members' rights and benefits. The benefits provided through the fund schemes continue to be government guaranteed.

Contributions to the fund are 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.

The fund's schemes were closed to new entrants from 30 June 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.

Table 21.6. GOVERNMENT SUPERANNUATION FUND ALLOWANCES, AT 31 MARCH 1992

Qualification for allowanceNumber
Source: Government Superannuation Fund.
Retired for age, length of service or medically unfit34 035
Spouses10 956
Children460
            Total allowances45 451

Table 21.7. CONTRIBUTORS TO GOVERNMENT SUPERANNUATION FUND

Branch of serviceAt 31 March 1992Percentage of total

* Includes state-owned enterprises which were formerly part of the Public Service.

Source: Government Superannuation Fund.

Armed services11 05419.49
Judges1560.28
Parliamentarians1050.18
Police5 2999.34
Prison officers1 8923.34
Public Service*38 2036737
            Total56 709100.00

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)  
1,99060 144146,438315,003554,819474,7562,342,582
1,99155 403140,059362,532450,908422,9902,563,934
1,99256 709149,437385,074413,715453,5312,804,582

Because each of the National Provident Fund schemes is now reported on seaprately, a financial summary of the aggregated fund is no longer applicable.

Insurance industry statistics

The results of the 1987 Economy Wide Census are supplemented 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 21.9. 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 21.1. 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 engaged5 2765 3105 451
 $(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 21.11. 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 enterprises1 4151 4191 365
Activity units (including ancillaries)1 4621 4821 443
Full time equivalent persons engaged6817901 032
 $(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 expenditure1,268,5612,291,2452394,278
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
 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.

The major trends in the retail sector in the year ended March 1992 were as follows:

  • Total actual retail sales increased by 0.3 percent to $29,085.7 million, compared with $28,993.5 million in the year ended March 1991.

  • The most significant increases were recorded by restaurants and takeaways, up 9.9 percent; hardware stores, up 9.8 percent and other stores, up 8.3 percent.

  • Other storetypes to record increases were household appliances, up 5.1 percent; chemist shops, up 5.0 percent; supermarkets and other food stores, both up 2.5 percent; clothing and textile stores, up 2.3 percent; liquor and accommodation outlets, up 1.5 percent and automotive fuel and repair establishments, up 1.4 percent.

Milnes department store closing down sale, Auckland.

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 21.12. RETAIL TRADE SURVEY: SALES*

Store typeQuarter ended
Dec 1990Mar 1991Jun 1991Sep 1991Dec 1991Mar 1992Jun 1992

* Values given exclude GST.

 $(million)
Butcher111.595.596.190.198.490.388.5
Supermarket1,209.01,074.81,103.11,098.01,218.01,133.91,152.3
Other food525.4504.4468.7485.0536.6538.6493.6
Footwear75.564.477.961.869.163.369.5
Clothing and textiles376.7297.0363.3321.3376.9322.4375.3
Furniture209.2177.7172.1177.5177.3155.8168.8
Household appliances323.0277.2317.9316.3347.2304.1333.1
Hardware172.1164.9146.9147.3189.9171.6159.8
Chemist242.0226.3208.9223.9257.8238.6233.5
Department and general stores403.6277.6311.0287.2401.5292.5343.1
Restaurants and takeaways366.2345.8349.0355.7400.8411.3400.8
Liquor and accommodation781.1728.2643.3651.6785.8764.1664.3
Other stores724.1541.6502.8543.3761.0600.8551.6
Subtotal5,519.34,775.54,760.94,759.15,620.35,087.35,034.3
Automotive fuel and repairs985.0917.9896.9943.3934.6947.5957.9
Automotive vehicle sales1,427.71,245.01,265.91,308.81,249.41,311.61,319.1
            All stores7,932.06,938.46,923.87,011.27,804.27,346.57,311.3

Suburban shopowners, Rawhiti Road, Auckland.

Table 21.13. RETAIL TRADE SURVEY

Store typeStocks as at 31 March
19881989199019911992
 $(million)
Butcher10.410.410.89.16.2
Supermarket147.0158.6159.9169.4182.4
Other food88.885.182.893.0101.4
Footwear94.285.291.8100.892.6
Clothing and textiles312.9295.1291.5303.0275.7
Furniture164.3169.5160.2136.1113.5
Household appliances208.5179.4181.6180.6193.4
Hardware116.3129.4128.7126.0137.0
Chemist92.197.297.8108.1116.6
Department stores256.2265.1271.5233.1260.1
Restaurants and takeaways23.822.423.725.430.0
Liquor and accommodation126.5122.9129.6125.8117.8
Other stores381.3412.7435.8478.6504.8
Subtotal2,022.22,032.92,065.72,089.02,131.6
Automotive fuel and repairs119.7123.9132.4124.5144.8
Automotive vehicle sales864.8784.1716.8627.7587.6
            All stores3,006.72,940.92,915.02,841.22,864.0

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: March quarter 1990 (=1000), so that application of the index to the original figures gives a series in constant March quarter, 1990 dollars.

RETAIL TRADE

Total sales

Table 21.14. 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 $
As recordedSeasonally adjustedSeasonally adjustedAs recordedSeasonally adjustedSeasonally adjustedPercentage change

* Values given exclude GST.

† Each quarter on previous quarter.

1990—Jun7,095.07,194.67,132.82,1072,1362,118−4.5
          Sep7,028.17,117.87,060.12,0912,1182,101−0.8
          Dec7,932.07,435.97,288.92,3322,1862,143+2.0
1991—Mar6,938.47,205.87,042.82,0212,0992,051−4.3
          Jun6,923.87,055.96,901.82,0252,0642,019−1.6
          Sep7,011.27,119.16,950.42,0572,0892,040+1.0
          Dec7,804.27,282.67,096.72,2722,1212,066+1.3
1992—Mar7,346.57,577.87,372.62,1372,2052,145+3.8
          Jun7,311.37,477.67,226.32,1402,1882,115−1.4

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.

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.

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 credit cards issued by registered banks, American Express and Diners Club. Credit cards were first introduced in New Zealand in 1981.

Table 21.15. 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)
1,987692.51,778.7433.12,211.8
1,988790.12,050.7R524.72,575.4
1,989881.92,238.4R571.52,809.9
1,990951.12.549.9R610.23,160.1
1,9911,027.83,446.5

Downtown cafe, Wellington.

CREDIT CARD USE

Total advances outstanding

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.

Special articles

Department of Justice; Maori Development Corporation Limited; New Zealand Stock Exchange.

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, (Series).

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

The Port of Lyttelton.

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; 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.

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 45 percent. Items whose manufacture is outside the scope of local industry are normally duty free. There is limited use of specific duties in the tariff. The trend of policy is in favour of ad valorem duties.

The following extract from the tariff gives an example of an ad valorem duty:

NumberStatistical KeyGoodsRates of Duty
CodeUnitNormal TariffPreferential Tariff
63.06  Tarpaulins, awnings and sunblinds; tents; sails for boats sailboards or landcraft; camping goods:  
   -Tarpaulins, awnings and sunblinds:  
6306.11.0000L –Of cotton22.5AU Free
CA Free
LDC 18
LLDC Free
Pac Free

The left hand columns give identification and statistical codes for the category and subcategory of goods in the example, the middle column gives the relevant description, and the two right hand columns give the normal and preferential rates of duty. For the specific item, cotton tarpaulins, the standard duty is 22.5 percent of value. These goods are duty free if they originate in Australia. Canada, least-developed countries, or Pacific Forum countries, and there is a preferential duty of 18 percent if they originate in a less developed country. 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 as well as encouraging trade with developing countries.

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 has been phased out with effect from 1 July 1992.

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.

Balance of merchandise trade

New Zealand's balance of merchandise trade for the trade year ended 30 June 1992, showed a surplus of $3,675.6 million. Total exports were valued at $17,890.6 million (f.o.b.) and imports at $14,215.0 million (v.f.d.).

Table 22.1. VISIBLE BALANCE OF MERCHANDISE TRADE

Year ended 30 JuneTotal exports (f.o.b.)Total imports (v.f.d)Excess exports(+) or imports(-)
 $(000)
1,99015,163,51514,420,081+743,434
1,99115,768,42814,050,965+1,717,463
1,99217,890,57514,214,959+3,675,616

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.

Mechanical and fibreglass gannets perched on model sea cliffs at the New Zealand Pavilion at Expo '92 Seville.

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: Australia, the European Community (EC), 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 (Japan, Republic of Korea, Taiwan, China and Hong Kong) accounted for 26 percent of total exports and 23 percent of total imports (v.f.d.) by value in 1991–92.

In the year ended June 1992 the European Community took 16.6 percent of New Zealand's total exports (worth $3.0 billion), and was the country's largest market for butter, sheepmeat, wool, kiwifruit and apples. Australia and Japan were New Zealand's most important individual trade partners; two-way trade with Australia was worth NZ$6.6 billion in 1991–92 and Japan recorded NZ$4.9 billion worth of trade in the same period.

The strong growth in trade with Australia is underpinned by the Australia–New Zealand Closer Economic Relations Trade Agreement, which has provided for free trade in goods from 1 July 1990.

The rising importance of Japan as a trading partner owes much to its record of steady economic growth, involving increased demand for imports, and to gradual liberalisation of its import regime. 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 KingdonAustraliaJapanUnited StatesOther countriesUnited KingdomAustraliaJapanUnited StatesOther countries

* Includes re-exports.

 percentage of trade f.o.b. percentage of trade v.f.d.
June yearJune year
1,9859171515441,985919201735
1,9869171416441,986917211736
1,9879151517441,9871018211635
1,9889171715421,9881021181635
1,9897181814431,989822181735
1,9907201613441,990921161836
1,9916191613461,991720151741
1,9927191613451,992622151839

Trans-Tasman trade

The ANZCERTA (CER) Agreement, signed in 1983 and reviewed in 1988 and 1992, is the most extensive bilateral trade agreement entered into by either country. All goods traded trans-Tasman have been free of tariffs and quantitative restrictions since 1 July 1990. There has been free trade in most service sectors since 1 January 1989.

The CER Agreement and its ancillary instruments impose disciplines on a range of other government policies which affect trade and investment, including industry assistance, government purchasing preferences, standards, business law, quarantine procedures and customs procedures.

CER principles are increasingly being applied in other areas of economic regulation—such as air services. The New Zealand and Australian Governments are examining the implications of CER for the operation of tax policies.

Total trans-Tasman trade has grown under CER from $2.5 billion to $6.6 billion, which is faster than either country's trade with the rest of the world. Australia is New Zealand's most important trading partner-taking 19 percent of our exports and supplying 22 percent of our imports. It is by far our largest destination for manufactured exports, taking over 40 percent of them. New Zealand is Australia's second largest market for manufactured exports and fifth largest market overall. Trade is virtually in balance.

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)
1,9841 2481 676−4280.74:1
1,9851 7672 135−3680.83:1
1,9861 7351 737−21.00:1
1,9871 7041 949−2440.88:1
1,9881 9652 273−3090.86:1
1,9892 4252 460−350.99:1
1,9902 7502 999−2490.92:1
1,9912 7112 877−1650.94:1
1,9923 3883 163+2251.07:1

Major imports and exports. Significant value import items for the 1991–92 year were:

  • Boilers, machinery and mechanical appliances, $221.2 million;

  • Road vehicles, $268.2 million;

  • Non-ferrous metals and articles of, $182.5 million;

  • Aluminium oxide, $239.5 million;

  • Electrical machinery, apparatus and appliances, $209.9 million;

  • Plastics and articles of plastic, $148.7 million;

  • Iron and steel and articles of, $165.3 million;

  • Mineral fuels and oils, $221.7 million; and

  • Pharmaceuticals, $144.2 million.

Significant value export commodities for the 1991–92 year were (including re-exports):

  • Wood and articles of wood, $294.0 million;

  • Boilers, machinery and mechanical appliances, $255.3 million;

  • Paper and paperboard, $264.2 million;

  • Wool and other animal hair, $89.5 million;

  • Gold, precious stones, jewellery, $187.2 million;

  • Electrical machinery, apparatus and appliances, $163.3 million; and

  • Mineral fuels and oils, $300.6 million.

Pacific Island countries

The South Pacific has become a significant export market, accounting for 3.5 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 $156 million of New Zealand's produce in 1991–92. 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 $624.1 million (f.o.b.) and imports (v.f.d.) from these islands came to $110.9 million in 1991–92.

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 $423.0 million (f.o.b.) and imports (v.f.d.) from these nations came to $110.4 million in 1991–92. The two major countries New Zealand exported to during 1990–91 were Fiji ($155.7 million) and Papua New Guinea ($92.4 million). The top four import country suppliers were Fiji ($63.5 million), Nauru ($29.2 million), Papua New Guinea ($6.5 million) and Samoa ($5.9 million).

An example of the window fittings that won Interlock Industries the TRADENZ award for overall excellence in exporting.

Asia

ASEAN countries. The members of the Association of South-East Asian Nations (Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand) are an increasingly important market for New Zealand. New Zealand produce exports to ASEAN for 1991–92 totalled $1,109 million. The major export products were dairy products, wood, paper and pulp and associated products, metal and metal products, wool, meat and fish. Dairy products now account for approximately 41 percent of exports to the region. New Zealand's total dairy exports to ASEAN for the 1991–92 year were $459.2 million. Malaysia was the largest ASEAN market for these products, at $202.9 million. Total New Zealand exports to Malaysia for 1991–92 were $350.2 million. Imports into New Zealand from ASEAN for the 1991–92 year totalled $678.6 million. The major import products were machinery and transport equipment, electrical goods and electronic equipment, petroleum, textiles and tropical food products.

South Asia. New Zealand exports to South Asia have increased steadily in recent years. For the year ended June 1992, exports to New Zealand's three major markets in the region increased by 10 percent from the previous year, with exports to India totalling $97 million; to Nepal $75 million and to Sri Lanka $51 million. The principal commodities exported to India are wool, newsprint and hides; while wool is the dominant commodity in trade with Nepal, and dairy products in the Sri Lankan market.

Japan. In the 1991–92 trade year, Japan was New Zealand's second largest export market and third largest source of imports. Two-way merchandise trade totalled $4,898 million. The principal export earners were aluminium, wood products, dairy products, fish, fruit and vegetables, meat and wool. Steady progress has been made in recent years improving conditions of access for New Zealand products in the Japanese market. The main focus of efforts in this area now is in the context of the Uruguay Round market access negotiations. 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 levels. Close contacts are also maintained between the business communities of the two countries. Japan has a priority place in the New Zealand government's campaign to attract increased levels of foreign direct investment as part of the economic growth strategy.

China. Since the establishment of diplomatic relations in 1972 and the signing of a trade agreement in 1973, trading contacts with China have matured into a broad-based economic relationship. Trade has shown significant growth in the past 12 months, after a downturn consequent on the austerity programme introduced in China in late 1988. In the year to 30 June 1992, China ranked 10th among New Zealand's export markets and also 10th as a source of imports. Exports totalled $361.0 million, an increase of 94.6 percent on the previous year, and imports totalled $319.8 million, an increase of 64.3 percent. Wool remains by far the largest export item, with sales in the 1991–92 season worth $223.9 million, or 20.7 percent of New Zealand's total wool clip. Other major trade items are forest products and tallow.

Annual consultations are held with the Chinese on trade and economic issues. Several New Zealand companies are operating joint ventures in China, in such areas as petroleum exploration and the manufacture of printed circuit boards, while Chinese corporations have invested in forestry and property in New Zealand.

New Zealand has co-operated with China in a number of agricultural projects and is currently assisting with pasture and land-use projects in Guizhou province and a social forestry project in northern Fujian province. Co-operation programmes in science and technology and in general agriculture are expanding, as are educational and cultural contacts and other people-to-people links. Seven New Zealand cities have sister-city relations in China.

Korea. For the year ended 30 June 1992, two-way merchandise trade between New Zealand and the Republic of Korea reached $992.0 million, 4.7 percent more than for the previous year. Korea was New Zealand's fifth largest export market, accounting for exports worth $766.7 million. This represents an increase of 6.8 percent over the 1990–91 figures. Fish and meat were the main contributors to the increase. The principal export earners were forest products, hides and skins, aluminium and meat. Notable value increases were also recorded for leather, organic chemicals and kiwifruit. 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.

Hong Kong. Exports to Hong Kong have grown steadily to total $357.9 million in 1991–92. Major export products include beef, dairy products, fruit, vegetables, fish, wool, paper and paperboard and leather. Imports from Hong Kong totalled $195 million in the same period. Hong Kong's economy is rapidly integrating with southern China and Hong Kong is becoming increasingly important as a commercial centre for trade and investment relations with China. There are substantial opportunities for New Zealand in Hong Kong, in the areas of foodstuffs, construction (large infrastructure developments are to be undertaken over the next decade), joint ventures, tourism and the sale of education. Hong Kong is also New Zealand's largest source of immigration, and a key source of business and investment migrants.

TRADING PARTNERS

Proportion of total exports going to different markets

Taiwan. While New Zealand does not have official links with Taiwan, the economic relationship is expanding rapidly. Taiwan has become New Zealand's sixth largest export market and is continuing to grow. Exports to Taiwan in 1991–92 totalled $427.8 million and consisted largely of wood and wood products, dairy products, beef, aluminium, fruit, animal fats and wool. Some sheepmeat, fish, vegetables and hides and skins are also exported. Since 1991 there have been direct air links with Taiwan, which 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 1992, taking 13 percent of total New Zealand produce exports or $2,234.2 million, an increase of 14 percent over the $1,960.2 million of the previous year. The United States was New Zealand's largest market for beef and veal and casein, and the number two market for fish and cheese. Other important exports to the United States in 1991–92 were fruit and vegetables (mainly kiwifruit and apples), hides and skins, wool, lamb, wood, machinery and motor vehicles.

There are a number of restrictions on New Zealand's agricultural exports to the United States. American legislation sets an annual limit on imports of beef and veal which both in 1991 and 1992 resulted in the imposition of “voluntary” restraints on New Zealand's beef and veal exports. An array of restrictive import quota controls also apply 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.

In the year to June 1992, the United States was New Zealand's second most important source of imports (in particular machinery, aircraft, electrical machinery, plastics and medical and surgical instruments) accounting for 18.3 percent of total imports or $2,597.4 million. The $363.2 million deficit in the bilateral trade balance was the largest with any New Zealand trading partner for that year.

Canada. Canada is New Zealand's 12th largest export market, taking exports of $264.6 million in the year ended June 1992. The main exports were beef (to which Canada is New Zealand's second largest market) and veal. Other major items were lamb, hides and skins, iron and steel, fruit, cheese, fish and metal tools and implements.

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) which provides for, amongst other things, regular consultations on trade issues, was signed between the Governments of New Zealand and Canada.

Latin America. Mexico, Venezuela, Cuba, Peru and Argentina have become useful markets for New Zealand, particularly for dairy products. Total New Zealand produce exports to these countries in 1991–92 were $187.9 million to Mexico, $91.2 million to Venezuela, $79.8 million to Cuba, $43.4 million to Peru and $85.3 million to Argentina. Most of these markets are demonstrating rapid growth in 1992.

Trade contact with Latin America is facilitated by the 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 second largest trading partner, accounting for 17 percent of New Zealand's exports and 17.5 percent of imports (v.f.d.) for the year ended June 1992.

In addition, the United Kingdom and Germany figure individually among New Zealand's top export markets (ranked fourth and fifth respectively). Trade in visible goods between New Zealand and the European Community in the year ended June 1992 showed a balance in New Zealand's favour of NZ$434.4 million. 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 apply to 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.

In 1992 negotiations were held with the community to decide the arrangements that would apply in 1993. From 1994 onwards it was expected that import arrangements would be established and bound in GATT.

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 market stability.

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 1992 the United Kingdom's share of New Zealand's exports had fallen to 6.6 percent. The United Kingdom remains New Zealand's largest market for butter and lamb.

Central and Eastern Europe

New Zealand's exports to the region in the past reflected the need seen by these command economies 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 New Zealand produce exports to Eastern European countries (other than the now defunct Soviet Union) for the last four trade years: 1988–89, $43.3 million; 1989–90, $47.0 million; 1990–91, $10.3 million; 1991–92, $6.6 million (f.o.b.). With the transition to market economies now taking place in Central and Eastern Europe, emphasis is being placed on diversification from the narrow range of traditional exports. 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; and 1991–92, $13.7 million (v.f.d.). Goods imported were chemicals, machinery, textiles, glassware, fertilisers, rail and motor vehicles.

The former Soviet Union

The former Soviet Union was New Zealand's 24th largest export market in 1991–92. Total New Zealand produce exports to the Soviet Union were $99.2 million (f.o.b.) in the 1991–92 trade year, a decrease from $181.8 million (f.o.b.) in 1990–91. Dairy products, meat and wool account for almost all of this trade. Processing equipment and construction materials contribute to the total.

Russia is the main destination for New Zealand exports to the former Soviet Republics. The significant decline in New Zealand's exports reflect the transition from a command economy to the emergence of 15 market-oriented economies. Shortages of foreign exchange and growth in the former Soviet Union's outstanding debt to New Zealand companies has forced traders to seek alternative markets.

New Zealand imports from the Soviet Union in the trade year 1991–92 decreased to $3.3 million (v.f.d.) from $5.8 million (v.f.d.) the previous year. Goods imported were mainly machine tools, fertiliser, chemicals and motor vehicles.

New Zealand's exports to the former Soviet Union can be expected to significantly increase over the medium-long term as economic stability returns to the resource rich republics of the New Independent States.

Middle East

In 1991–92 Saudi Arabia was New Zealand's largest Middle East market taking $205.1 million worth of exports. This included dairy products, meat, live sheep and a variety of other primary and manufactured items. Saudi Arabia was also New Zealand's principal source of oil imports ($449.3 million), making it New Zealand's ninth largest two-way trading partner ($663.8 million).

Other major markets were Iran taking $183 million worth of exports (principally wool, meat and dairy products) and Algeria at $78.7 million (mostly dairy products), followed by Turkey ($52.5 million), United Arab Emirates ($41.9 million), Jordan ($36.7 million) and Egypt ($29.7 million).

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 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$112,000. There is provision for reinstating a product to GSP status if import figures fall below the threshold (NZ$112,000 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 14 LDCs imported under 231 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 1992 the list of beneficiaries of the New Zealand GSP scheme numbered 147 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).

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.

The agreement with the USSR is in force in respect to the Russian Federation which is accepted by New Zealand as the “continuing state”. Application of the agreement to other former Soviet Republics would be subject to mutual agreement. With the former Socialist Federal Republic of Yugoslavia, no single republic is regarded by New Zealand as the “continuing state”. Application of the agreement to individual republics of the former Yugoslavia would be subject to mutual agreement.

Meat carcasses being conventionally loaded on to a ship by crane for the first time in 20 years, Wellington. The 620 tonnes of mutton is destined for Russia.

Table 22.4. TRADE WITH COUNTRIES, YEAR ENDED JUNE 1991–92

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.

Yemen and Democratic Yemen amalgamated in March 1990.

 $(million)
OECD countries—
   EC countries—
      Belgium237.794.9
      Denmark34.771.4
      France217.3251.5
      Germany415.4592.3
      Greece76.93.4
      Ireland16.241.5
      Italy213.7328.8
      Luxembourg0.36.2
      Netherlands3.0153.5
      Portugal44.919.9
      Spain98.645.0
      United Kingdom1,165.1874.4
      Destination unknown—E.C.353.3..
            Total2,967.02,482.8
Other OECD countries—
      Australia3,387.83,162.6
      Austria11.340.6
      Canada268.1229.9
      Finland9.139.5
      Iceland0.20.3
      Japan2,738.62,159.8
      New Zealand (re-imports) 73.5
      Norway6.397.2
      Sweden48.6177.2
      Switzerland51.2155.6
      Turkey52.511.2
      United States2,295.22,597.4
      Yugoslavia0.13.0
            Total11,835.911,230.6
China—
      People's Republic of361.5319.8
      Taiwan431.5399.9
            Total793.0719.7
Asia—
      Bangladesh5.75.2
      Brunei Darussalam6.5
      Hong Kong363.2195.0
      India97.452.7
      Indonesia232.876.6
      Korea, Republic of767.5224.8
      Macau0.32.7
      Malaysia470.5135.1
      Myanmar0.2
      Nepal75.20.1
      Pakistan25.137.0
      Philippines135.921.1
      Singapore286.7340.1
      Sri Lanka52.49.5
      Thailand177.0105.7
      Vietnam720.8
            Total§2,703.91,206.5
Oceania—
      Cook Islands41.12.0
      Fiji178.563.5
      French Polynesia100.60.4
      Kiribati4.3
      Nauru8.129.2
      New Caledonia54.40.2
      Niue6.0
      Papua New Guinea97.56.5
      Samoa88.35.9
      Solomon Islands14.21.0
      Tonga30.62.1
      Tuvalu1.1
      Vanuatu11.10.1
            Total§640.2110.9
South, Central America and Caribbean—
      Argentina88.118.4
      Bahamas2.01.3
      Barbados13.3
      Belize1.4
      Bermuda3.90.3
Brazil18.459.0
      Chile30.59.1
      Colombia4.52.6
      Cuba79.825.5
      Dominican Republic13.30.1
      Ecuador0.932.9
      El Salvador11.00.1
      Grenada1.6
      Guadeloupe7.4
      Guatemala1.80.3
      Honduras1.70.4
      Jamaica14.35.2
      Martinique5.9
      Mexico188.010.7
      Netherlands Antilles1.0
      Panama10.84.1
      Peru43.52.5
      Trinidad and Tobago13.90.1
      Uruguay1.00.1
      Venezuela91.21.2
            Total§654.91752
Middle East—
      Algeria78.7
      Bahrain15.71.4
      Egypt29.72.2
      Iran183.816.5
      Iraq0.3
      Israel1.933.9
      Jordan36.70.6
      Kuwait13.2
      Lebanon0.8
      Libyan Arab Republic4.6
      Morocco32.115.6
      Oman14.08.3
      Qatar4.80.4
      Saudi Arabia205.7458.7
      Syrian Arab Republic5.4
      Tunisia10.90.1
      United Arab Emirates42.4166.9
      Yemen21.6
            Total703.5704.6
Eastern Europe—
      Czechoslovakia2.46.3
      Hungary1.12.7
      Poland2.43.3
      Romania0.21.0
      Soviet Union99.53.3
                  Total§106.017.0
Africa—
      Ghana0.10.5
      Kenya0.61.8
      Malawi0.83.6
      Mauritius32.20.5
      Mozambique0.3
      South Africa27.917.9
      Swaziland0.20.8
      Tanzania0.50.9
      Zambia0.1
      Zimbabwe0.63.4
            Total§70.629.8
Other countries—
      American Samoa30.7
      Cyprus4.8
      Guam20.5
      Malta3.50.1
      Marshall Islands3.6
      Norfolk Island8.6
      Puerto Rico3.320.3
            Total§79.920.7
            Total, all countries17,588.014,215.0
      Bunkering ships or aircraft206.9
      Passengers' duty-free goods33.7
      Ships' stores61.9
            Total, merchandise trade17,890.614,215.0

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.

Dunedin waterfront workers loading 50 000 cartons of cox, royal gala and gala apples bound for Europe and the United Kingdom.

Meat and meat preparations amounted to 17.6 percent ($3,031.9 million) of New Zealand produce exported. The main countries purchasing beef and veal were the United States ($1,019.1 million), Canada ($110.6 million) and Japan ($56.2 million). Lamb exports to the United Kingdom amounted to $324.5 million. The next largest customer was Germany ($105.5 million), followed by France ($104 million) and Saudi Arabia ($44.5 million). Lamb exports totalled $1,177 million for the 1991–92 trade year.

Table 22.5. PRINCIPAL COMMODITIES EXPORTED

CommodityUnit of quantityYear ended June 1991Year ended June 1992
Quantityf.o.b. $(000)Average price $ per unit of quantityQuantityf.o.b. $(000)Average price $ per unit of quantity
Note: The items listed in this table are only those for which a quantity value is obtainable. They represent about 70 percent of total exports.
Horsesno.3 34779,36723,713.033 15979,78425,255.94
Live sheepno.1 697 89276,38544.991 508 90883,00255.01
Meat, fresh, chilled or frozen—
   Beef-
      Bone intonne11 16343,2183,871.4615 65053,8313,439.72
      Bonelesstonne271 9411,208,5114,444.02285 7141,364,9514.777.33
Vealtonne6 05932,1165,300.215 10332,0056,272.30
Lamb—
   Carcassestonne128 765330,9502,570.19150 338393,8672,619.87
   Cuts, bone and bonelesstonne151 593646,8274,266.88187 985783,1004,165.76
Muttontonne88 311171,8181,945.5979 983170,8682,136.31
Other meat and edible offalstonne44 091146,8453,330.4858 103197,2233,394.35
Milk and cream—
   Condensed and evaporatedtonne5373,6236,749.097494,3585,822.42
   Skim-milk powdertonne148 726366,57112.00137 312382,2132,783.54
   Other driedtonne253 465717,5752,831.06285 404486,6822,966.61
Buttertonne176 149542,1443,077.75212 735701,6313,298.14
Cheesetonne102 935357,9633,477.56107 225412,0663,842.99
Fish, fresh, chilled or frozen—
   Orange roughytonne14 985135,5179,043.5613 604162,97811,979.72
   Snappertonne6 01146,3207,706.406 90664,0819,279.65
   Hokitonne36 33992,5252,546.1758 550207,9643,551.89
   Surimitonne9 91623,7892,399.1110 52736,7623,492.06
   Othertonne93 651239,3222,555.47115 520320,6642,775.82
Crayfishtonne2 26283,02136,709.322 631110,84642,130.82
Squidtonne23 04946,8582,033.0341 92275,9691,812.17
Musselstonne8 48934,8544,105.6810 20943,4824,258.99
Barley, unmilledtonne30 8596,088197.2849 57410,727216.39
Maize, unmilledtonne1283742,923.267 9462,554321.41
Fruit and vegetables—
   Apples, fresh, whole fruittonne205 744297,1251,444.15209 860325,7761,552.35
   Kiwifruittonne250 234437,6681,749.03242 522506,1442,087.00
Peas—
   Dry, including splittonne27 29420,222740.9153 95137,264690.70
   Frozentonne16 25421,4481,319.5728 74937,1011,290.53
Onions, freshtonne55 35929,557533.9179 37939,620499.13
Asparagus, fresh, chilled, frozen or preparedtonne5 43225,2984,656.785 29026,4174,993.30
Squash and similar edible gourdstonne45 39637,912835.1474 54960,544812.15
Vegetables, frozen excluding peas and asparagustonne25 92739,3791,518.8527 70244,4591,604.88
Chocolate and preparationstonne14 33348,7323,399.998 94035,2593,944.05
Meal of meat, fish, etc.tonne107 15245,330423.0424 19916,194669.19
Margarine and shorteningtonne1 8262,7431,502.002 4803,7931,529.66
Skins and furskins, undressed—
   Sheep and lamb skins in fleece(000)8304,1314,977.491 0576,2305,891.90
   Lamb pelts(000)25 313205,4918,118.1321 394187,3208,755.68
   Sheep pelts(000)9 64680,0528,298.808 19274,9299,146.89
   Opossum skins(000)7623,6764,823.773011,4384,771.89
Sawlogs and veneer logs, conifercu. metre3 189 739322,451101.093 736 921365,25197.74
Douglas fir, sawn, sliced, peeled, planed, sanded, etc.cu. metre81 93725,834315.2983 62427,009322.98
Pinus Radiata, sawn, sliced, peeled, planed, sanded, etc.cu. metre532 184170,658320.68673 120227,526338.02
Wood pulp—
   Mechanicaltonne343 494156,919456.83341 256152,139445.82
   Chemical, not dissolving gradestonne283 082234,025826.70315 572227,572721.14
Wood chipsBDU      
 1089.6 kg269 66346,127171.06290 47956,432194.27
Fibreboardcu. metre285 976128,068447.83339 423162,614479.09
Wool—
   Greasytonne54 626261,2774,782.9873 354307,8624,196.93
   Slipetonne5 35616,7423,125.968,03028,7103,575.17
   Scouredtonne143 218684,4334,778.95168 965744,7614,407.77
Iron ore and concentratestonne      
 (000)1 11620,56818,430.791 11823,09820,655.76
Sausage casings, natural hank(000)7 016111,50815,893.447 636135,26517,714.24
Clover and grass seedstonne11 89928,9122,429.7013 97436,7112,627.15
Crude petroleumtonne921 251283,526307.76966 522282,749292.54
Ureatonne95 80923,292243.1164 69717,472270.06
Tallow, inedibletonne101 57546,282455.65134,11060,038447.68
Caseintonne50,072292,0095,831.7352 601314,7985,984.65
Casematestonne16 372112,9116,896.5817 219120,2926,985.97
Newsprinttonne325 703192,161589.99526 850234,536445.17
Kraft paper and kraft cardboardtonne75 92964,315847.0460 35553,945893.80
Yarn of wool or hairtonne6 15675,90012,330.246 57276,61711,657.67
Iron or steel—
   Bars, rods, angles, etc.tonne16 45010,295625.8635 03923,114659.64
   Universals, plates, sheets hoop and striptonne429 280289,335674.00412 829269,667653.22
Aluminium, unwroughttonne240 941657,6892,729.67249 668566,2242,267.91
Aluminium foiltonne7 69138,1164,956.157 24240,5445,598.13
Finished structural parts and structures, n.e.s., of metaltonne5 70125,0834,400.077 38532,6874,426.28
Domestic electric refrigerators and freezersnumber89 60245,398506.6785 96644,024512.11
Potatoes, freshtonne17 8796,899385.8718 5456,394373.91
Beerlitres (000)12 53224,8681.9814 13735,6102.52
WineLitres (000)5 57818,9353.397 22019,6282.72
Kaolin claytonne24 10716,794696.6425 83019,922771.30
Coaltonne416 18340,67497.73731 13168,13893.20
Methanollitres (000)799 756138,9450.17962 159139,7960.15
Tyresnumber746 81337,47050.17787 70442,64054.13
Shoespairs1030 83925,88925.11692 66121,46730.99

Exports of dairy products increased 18 percent (by $361.8 million) in 1991–92 from the previous year to $2,370.1 million. The United Kingdom continued as the major destination for butter, with 44.6 percent of the $701.6 million export value. Other major markets were the Soviet Union, $53.8 million (7.7 percent), Argentina, $33 million, Mexico, $30.3 million and Morocco, $28.4 million. Japan continued as the major customer for cheese with a 28.4 percent market share at $116.9 million.

The value of wool exports rose back over $1 billion to $1,081.3 million, after declining each year since peaking at $1,795.9 million in 1988–89. The People's Republic of China has once again become the major destination for wool at $222.7 million, while Japan dropped back to second at $97.3 million, with Belgium, Germany and the United Kingdom the next most important markets.

Kiwifruit exports at $506.1 million were 15.6 percent up on the 1990–91 value which had been revised down to $437.7 million following discussions with the Kiwifruit Marketing Authority, who had overstated the value of kiwifruit exports during 1990 and 1991.

EXPORTS PER CAPITA

At constant values

Forestry products increased by 14.5 percent over 1990–91 to $1,785.5 million. Australia at 34.7 percent was the major market, followed by Japan (26.4 percent), Korea (10.9 percent) and Taiwan (6.3 percent) all of which increased their share. The major products were wood pulp ($385.9 million), logs, timber and woodchips ($976.3 million) and paper and paperboard ($423.4 million).

Fish exports, including crustaceans and molluscs increased from the 1990–91 figure of $745.9 million to $1,076.1 million. The most important markets are Japan (33.8 percent) and the United States of America (27.5 percent).

Other significant exports in 1991–92 were hides, skins and leather ($554.5 million), aluminium ($566.2 million), petroleum products ($497.8 million), steel and steel articles ($429 million) and casein and caseinates ($435.1 million).

Imports

Australia was New Zealand's principal supplier with $3,162.6 million (v.f.d.) worth of goods imported during 1991–92. The United States was the next largest supplier with $2,597.4 million, followed by Japan ($2,159.8 million) and the United Kingdom ($874.4 million).

Machinery and transport equipment were the largest groups of commodities imported in the 1991–92 trade year, with $5,570.6 million (v.f.d.). Machinery and mechanical appliances accounted for $2,015.0 million, and $1,346.3 million was spent on vehicle purchases, $ 1,455.4 million for electrical machinery and equipment and $744.7 million for aircraft and boats.

Live animals, foods, fats, beverages and tobacco imports were $1,056.5 million. Textile yam, fabrics and made-up articles, etc., amounted to $929.4 million, and iron and steel imports and articles thereof were valued at $520.2 million.

Imports of mineral fuels, lubricants and related materials totalled $995.1 million, or 7 percent of total imports.

P&O container ship, Mairangi Bay, heading towards the Port of Wellington.

Table 22.6. PRINCIPAL COMMODITIES IMPORTED

CommodityUnit of quantityYear ended June 1991Year ended June 1992
Quantityc.i.f. $(000)Average price $ per unit of quantityQuantityc.i.f. $(000)Average price $ per unit of quantity
Note: The items listed in this table are only those for which a Quantity value is obtainable. They represent about 35 percent of total imports.
Wheattonne174 49650,974292.12135 48047,653351.73
Ricetonne16 04614,490903.0216 73916,563989.50
Oranges, fresh or driedtonne8 78711,0951,262.758 93113,5331,515.23
Bananas, freshtonne53,01047,612898.1760 90559,023969.10
Salmon, canned or in jarstonne1 53113,1618,598.547854,9916,356.33
Sugar, not refinedtonne135 15670,020518.06170 90369,488406.59
Coffee, rawtonne7 04119,3162,743.356 25216,6442,662.09
Cocoa paste and cocoa buttertonne5 08819,0973,753.414 12912,3592,992.88
Teatonne5 08615,6933,085.414 80616,7053,476.12
Fruit and vegetable juices litre(000)7 93122,1762,796.037 29218,9012,592.15
Beerlitre13 625 21621,6011.5915 924 64521,0951.32
Winelitre11 328 26359,1455.228 507 34646,4665.46
Tobacco, unmanufacturedtonne3 04323,7127,792.612 66625,1759,443,44
Crude rubber, including synthetic and reclaimedtonne17 39031,7861,827.8516 64330,6901,904.17
Natural calcium phosphatetonne543 68864,238118.15679 84288,793130.61
Fertilisers—
   Nitrogenoustonne50 3559,714192.9295 21819,271202.38
   Phosphatictonne29 51910,478354.9612 5095,026401.77
   Potassictonne137 96529,815216.11193 52850,063258.69
   Othertonne31 90515,076472.5581 10434,551426.01
Sulphur, other than sublimed, precipitatedtonne83 77520,716247.28122 41120,228165.24
Aluminium oxidetonne492 830238,984484.925 678 007258,878456.57
Petroleum coketonne109 43039,557361.48110 64029,587267.41
Crude petroleumtonne3 251 352954,934293.703 106 875801,027257.82
Motor spiritlitre (000)426 646159,421373.6665 97624,071364.84
Distillate fuelslitre (000)21 8816,708306.586 4161,064165.81
Polyethelene, in primary formstonne66 101121,7701,842.1774 120122,1121,647.50
Polypropylene, in primary formstonne11 36821,2721,871.1214 28324,0421,683.27
Polystyrene and its copolymers, in primary formstonne15 26636,3442,380.6715 48034,1852,208.39
Polyvinyl chloride, in primary formstonne29 84342,1411,412.1023 03429,1871,267.12
Paper and paperboard manufactures excluding hardwoods, softwoods, wallpaper, lincrusta and window transparenciestonne105 807266,4272,518.06112 574278,5272,474.17
Textile yarn and threadtonne11 31497,5608,623.0911 944113,5049,502.78
Knitted or crocheted fabricsm2(000)19 85949,0542,470.1321 42649,0112,287.45
Shoes and other footwearpairs 6 921 81186,30412.477 87461293,04211.82
Iron and steel—
   Bars and rodstonne24 38038,0751,561.7226 18639,8681,522.50
   Angles, shapes and sectionstonne22 39321,937979.6719 19420,5531,070.82
   Universals, plates, sheets, hoop and striptonne88 851159,3291,793.2295 981166,6251,736.01
   Wiretonne13 14825,5011,939.5112 75025,0131,961.80
   Tubes, pipes and fittingstonne25 44882,2903,233.6232 46692,5462,850.53
   Steel structures containers cables etc.tonne17 25980 7184,676.9620 345132,8866,531.62
Non-electric stoves, ranges, etc.no.120 44914,810122.96139 05415,297110.01
Copper, and articles oftonne15 07490,9756,035.3613 11077,1885,887.79
Aluminium and articles oftonne31 346171,5445,472.5430 321170,7485,631.43
Unwrought zinctonne17 42945,7972,639.1818 73243,7372,334.90
Rubber tyres, pneumatic, new—
   For motor carsno.497 32530,29360.91412 41528,06768.06
   For buses or trucksno.111 34525,680230.64132 19530,283229.08
   For motor cyclesno.72 1843,06742.4983 0293,75645.24
   Other tyresno.131 45713,347101.53155 47113,91489.49
Glass—cast drawn, floatm2 (000)3 08944,00414,245.703 85246,38712,041.03
Internal combustion engines not aircraftno.89 25053,974604.7577 87156,118720.66
Tractorsno.4 44160,06413,524.973 76154 37514,457.71
Electric motors and generatorsno.780 46737 95048.62753 62632,74443.45
Electro-mechanical toolsno.257 47723,88392.76239 17321,83091.27
Electro-mechanical domestic appliancesno.403 77827,17267.29455 21731,52869.26
Domestic sewing machinesno.31 72513,849436.5331 16611,481368.38
Typewriting, calculating and accounting machinesno.429 38831,01372.23475 03326,58455.96
Photocopying apparatusno.10 20137,0183,628.889 74141,6244,273.12
Record/cassette players, without recordersno.193 47419,748107.63124 17718,195146.52
Magnetic tape recordersno.95 52212,705133.01114 93914,687127.78
Radio/telephone broadcast—receiversno.813 94760,95474.89693 15965,05593.85
Television receiversno.227 18790,880400.02272 155135,452497.70
Video recording or reproducing apparatusno.102 97344,660433.7193 54844,376474.36
Microwave ovensno.63 99217,885279.4980 71022,068273.42
Motorcars, assembled and unassembledno.124 395915,4607,359.3097 538932,6189,561.58
Trucks, buses, vans, etc., assembled and unassembledno.24 580274,81211,180.3023 186274,18011,825.23
Motor cycles, including side carsno.8 20827,6173,364.636 23526,0624,179.93
Bicyclesno.104 46215,387147.29139 03220,078144.41

Workers drying and piling fleeces.

ORIGIN OF IMPORTS

Proportion of total imports coming from different countries

Table 22.7. TRADE BY STANDARD INTERNATIONAL CLASSIFICATIONS, 1991–92*

Section and divisionYear ended June 1992
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 food186,10939,171
     01 Meat and meat preparations3,013,56622,422
     02 Dairy products and birds' eggs2,386,53613,546
     03 Fish, crustaceans, and molluscs, and preparations thereof1,139,97753,248
     04 Cereals and cereal preparations52,19199,874
     05 Vegetables and fruit1,273,939194,297
     06 Sugar, sugar preparations, and honey51,08698,384
     07 Coffee, tea, cocoa, spices, and manufactures thereof36,56690,394
     08 Feeding stuff for animals (not including unmilled cereals)53,87735,732
     09 Miscellaneous edible products and preparations78,155120,583
          Total, section 08,272,002767,651
1 Beverages and tobacco
     11 Beverages69,299125,376
     12 Tobacco and tobacco manufactures2,27028,116
     Total, section 171,569153,492
2 Crude materials, inedible, except fuels
     21 Hides, skins, and furskins, raw355,19517,436
     22 Oil seeds and oleaginous fruit1,04524,503
     23 Crude rubber (including synthetic and reclaimed)1,16127,140
     24 Cork and wood737,91828,732
     25 Pulp and waste paper385,86714,252
     26 Textile fibres (other than wool tops) and their wastes1,102,83927,351
     27 Crude fertilisers and crude minerals other than coal, etc.26,95498,148
     28 Metalliferous ores and metal scrap59,720250,514
     29 Crude animal and vegetable materials, n.e.s.386,37240,564
          Total, section 23,057,069528,641
3 Mineral fuels, lubricants, and related materials
     32 Coal, coke, and briquettes69,2682,297
     33 Petroleum, petroleum products, and related materials421,737992,446
     34 Gas, natural and manufactured9,173244
          Total, section 3500,178994,988
4 Animal and vegetable oils, fats, and waxes
     41 Animal oils and fats68,575509
     42 Fixed vegetable oils and fats81553,614
     43 Animal and vegetable oils and fats, processed, and waxes of animal or vegetable origin49,4964,648
          Total, section 4118,88658,771
5 Chemicals and related products, n.e.s.
     51 Organic chemicals155,759189,933
     52 Inorganic chemicals13,377152,508
     53 Dyeing, tanning, and colouring materials22,254103,732
     54 Medicinal and pharmaceutical products78,136465,023
     55 Essential oils and perfumes, etc.91,837164,900
     56 Fertilisers, manufactured18,88986,675
     57 Plastics in primary forms33,138281,492
     58 Plastics in non-primary farms35,537179,637
     59 Chemical materials and products, n.e.s.525,464243,776
          Total, section 5974,3911,867,677
6 Manufactured goods classified chiefly by material
     61 Leather, leather manufactures, n.e.s., and dressed furskins229,24419,674
     62 Rubber manufactures, n.e.s.58,262143,469
     63 Cork and wood manufactures (excluding furniture)245,47129,576
     64 Paper, paperboard, and articles of paper pulp, of paper, or of paperboard412,265383,545
     65 Textile yarn, fabrics, made-up articles, n.e.s., and related products220,196646,529
     66 Non-metallic mineral manufactures, n.e.s.59,646214,682
     67 Iron and steel319,535323,536
     68 Non-ferrous metals718,542214,493
     69 Manufactures of metal, n.e.s.200,503414,839
          Total, section 62,463,0362,390,342
7 Machinery and transport equipment
     71 Power generating machinery and equipment19,183226,588
     72 Machinery specialised for particular industries101,853563,769
     73 Metalworking machinery21,30046,870
     74 General industrial machinery and equipment, n.e.s., and machine parts, n.e.s.183,038570,025
     75 Office machines and automatic data processing equipment11,232743,009
     76 Telecommunications, sound recording and reproducing apparatus and equipment59,156632,221
     77 Electrical machinery, apparatus and appliances, n.e.s., and electrical parts thereof269,711654,722
     78 Road vehicles (including air-cushion vehicles)68,2141,292,989
     79 Other transport equipment53,982751,440
          Total, section 7787,6675,481,633
8 Miscellaneous manufactured articles
     81 Sanitary, plumbing, heating, etc., fixtures and fittings, n.e.s.18,82638,173
     82 Furniture and parts thereof58,19854,792
     83 Travel goods, handbags, and similar containers3,18232,964
     84 Articles of apparel and clothing accessories150,204291,021
     85 Footwear29,19197,659
     87 Professional, scientific, and controlling instruments and apparatus, n.e.s.83,130297,281
     88 Photographic apparatus, optical goods, watches and clocks6,586199,003
     89 Miscellaneous manufactured articles, n.e.s.226,337951,856
          Total, section 8575,6541,962,748
9 Commodities and transactions not classified elsewhere in the S.I.T.C.
          Total, section 9384,7959,015
          Total New Zealand produce exports17,205,878...
          Re-exports684,697...
          Grand total, merchandise trade17,890,57514,214,959

Table 22.8. TRADE BY HARMONISED SYSTEM CLASSIFICATION, 1991–92*

HS ChapterYear ended June 1992
Exports of NZ produce f.o.b.Imports v.f.d.

* Year ended 30 June.

 $(000)
01 Animals live186,10939,171
02 Meat and edible meat offal3,002,16217,172
03 Fish and crustaceans, molluscs, and other aquatic invertebrates1,077,65118,061
04 Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included2,377,22112,762
05 Animal originated products not elsewhere specified or included285,22315,384
06 Trees and other plants, live; bulbs, roots and the like; cut flowers and ornamental foliage50,1623,182
07 Vegetables and certain roots and tubers, edible262,31020,644
08 Fruit and nuts, edible; peel of citrus fruit or melons904,332107,940
09 Coffee, tea, mate and spices83734,991
10 Cereals13,51952,660
11 Products of the milling industry, malt; starches; inulin; wheat gluten9,95815,619
12 Oil seeds and oleaginous fruit; miscellaneous grains, seeds and fruit, industrial or medicinal plants; straw and fodder53,21339,222
13 Lac; gums, resins and other vegetable saps and extracts2,2996,163
14 Vegetable plaiting materials; vegetable products not elsewhere specified or included301,618
15 Animal or vegetable fats and oils and their cleavage products; prepared animal fats; animal or vegetable waxes125,26762,328
16 Meat, fish or crustaceans, molluscs or other aquatic invertebrates; preparations thereof92,04240,950
17 Sugars and sugar confectionery44,85497,823
18 Cocoa and cocoa preparations35,48150,432
19 Preparations of cereals, flour, starch or milk; pastrycooks' products34,05861,157
20 Preparations of vegetables, fruit, nuts or other parts of plants108,44165,394
21 Miscellaneous edible preparations59,904104,172
22 Beverages, spirits and vinegar73,060125,804
23 Food industries, residues and wastes thereof; prepared animal fodder53,57935,729
24 Tobacco and manufactured tobacco substitutes2,27028,116
25 Salt; sulphur; earths, stone; plastering materials, lime and cement51,76398,423
26 Ores, slag and ash28,2981,418
27 Mineral fuels, oils and products of their distillation; bituminous substances; mineral waxes500,881995,060
28 Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radio-active elements and of isotopes13,377392,549
29 Organic chemicals148,891210,436
30 Pharmaceutical products74,159432,166
31 Fertilisers19,46487,000
32 Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter, paints, varnishes; putty, other mastics; inks21,216104,703
33 Essential oils and resinoids; perfumery, cosmetic or toilet preparations63,894114,815
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 plaster29,29664,204
35 Albuminoidal substances; modified starches; glues; enzymes509,01330,015
36 Explosives; pyrotechnic products; matches, pyrophoric alloys; certain combustible preparations1,1848,637
37 Photographic or cinematographic goods588104,056
38 Chemical products n.e.s.22,891201,968
39 Plastics and articles thereof160,560607,760
40 Rubber and articles thereof61,981176,157
41 Raw hides and skins (other than furskins) and leather554,45532,162
42 Articles of leather, saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut)16,17944,714
43 Furskins and artificial fur, manufactures thereof53,9802,902
44 Wood and articles of wood; wood charcoal976,33850,707
45 Cork and articles of cork7,0517,601
46 Manufactures of straw, esparto or other plaiting materials; basketware and wickerwork333,979
47 Pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or paperboard; paper and paperboard and articles thereof385,86714,252
48 Paper and paperboard; articles of paper pulp, of paper or paperboard423,250388,938
49 Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans27,713271,384
50 Silk445,777
51 Wool, fine or coarse animal hair, horsehair yarn and woven fabric1,179,65023,634
52 Cotton3,136109,645
53 Vegetable textile fibres; paper yarn and woven fabrics of paper yarn6212,675
54 Man-made filaments2,51086,199
55 Man-made staple fibres2,144134,480
56 Wadding, felt and nonwovens, special yarns; twine, cordage, ropes and cables and articles thereof8,41941,911
57 Carpets and other textile floor coverings70,31137,675
58 Fabrics; special woven fabrics, tufted textile fabrics, lace, tapestries, trimmings, embroidery7,11322,269
59 Textile fabrics; impregnated, coated, covered or laminated; textile articles of a kind suitable for industrial use3,40064,754
60 Fabrics; knitted or crocheted20,88245,549
61 Apparel and clothing accessories; knitted or crocheted40,223131,037
62 Apparel and clothing accessories; not knitted or crocheted62,451133,319
63 Textiles, made up articles; sets; worn clothing and worn textile articles; rags25,72580,489
64 Footwear, gaiters and the like; parts of such articles29,19197,659
65 Headgear and parts thereof7,6759,429
66 Umbrellas, sun umbrellas, walking-sticks, seat sticks, whips, riding crops; and parts thereof1002,843
67 Feathers and down, prepared; and articles made of feather or of down; artificial flowers; articles of human hair1022,768
68 Stone, plaster, cement, asbestos, mica or similar materials; articles thereof8,81934,492
69 Ceramic products1,84163,577
70 Glass and glassware22,839101,102
71 Natural or cultured pearls, precious, semi-precious stones, precious metals, metals clad with precious metal, articles thereof; imitation jewellery; coin183,84289,403
72 Iron and steel313,025237,381
73 Iron or steel articles115,987282,802
74 Copper and articles thereof69,48775,040
75 Nickel and articles thereof1,0752,381
76 Aluminium and articles thereof693,249164,063
78 Lead and articles thereof4,0212,249
79 Zinc and articles thereof1,56142,655
80 Tin; articles thereof2442,114
81 Metals; n.e.s., cermets and articles thereof395,163
82 Tools, implements, cutlery, spoons and forks, of base metal; parts thereof, of base metal36,11794,456
83 Metal; miscellaneous products of base metal35,47562,761
84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof395,6282,014,953
85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers parts and accessories of such articles272,1571,455,389
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 kinds2819,228
87 Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof68,6071,346,269
88 Aircraft, spacecraft and parts thereof12,326547,119
89 Ships, boats and floating structures41,448197,630
90 Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus; parts and accessories89,320471,285
91 Clocks and watches and parts thereof16831,765
92 Musical instruments; parts and accessories of such articles20417,509
93 Arms and ammunition; parts and accessories thereof26830,596
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 buildings77,07388,382
95 Toys, games and sports requisites; parts and accessories thereof23,465138,413
96 Miscellaneous manufactured articles9,78547,146
97 Works of art, collectors' pieces and antiques258,08915,026
            Total New Zealand produce exports17,205,878...
            Re-exports684,697...
            Grand total, merchandise trade17,890,57514,214,959

Deer stock for auction at deer park's annual sale, Hakataramea, Otago.

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 is derived from the Department of Statistics' overseas trade data, which is 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*

 Food beveragesPetroleum and petroleum productsNon-fuel crude materialsNon-food manufactured goodsTotal imports
Plastics and plastic articlesTextile yarn, fabrics related productsIron and steelNon-electrical machineryElectrical machinery and apparatusTransport equipmentTotal

* Base: year ended June 1989 (= 1000).

† Excludes manufactured articles of iron and steel.

‡ Includes commodities not listed.

June year
1,9851,1352,1481,0688451,0077969091,2238179601,046
1,9861,0331,8699687929707209391,1718429411,002
1,9879871,2239137879967361,0081,2281,026990999
1,9889051,0998788419607049681,030994937941
1,9891,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,000
1,9901,0521,2691,0148331,0251,0521,0421,0061,0271,0171,034
1,9911,0381,5701,0328581,0469999889881,0641,0041,044
1,9921,0781,3921,0497981,1001,0701,0561,0521,2261,0651,086
Quarterly
1991 Mar1,0131,6241,0289111,0679869881,0201,1191,0271,064
          Jun1,0261,3241,0108761,0271,0339119821,0649921,016
          Sep1,0541,3201,0398001,0751,0741,0011,0001,1281,0161,040
          Dec1,0641,4411,0538081,0931,0891,0291,0411,2331,0561,080
1992 Mar1,1121,3941,0367971,0981,0701,0551,0761,2611,0801,099
          Jun1,0881,3911,0657901,1321,0471,1471,0971,3051,1121,126
          Sep1,070P1469P1,051P805P1093P1,027P1097P1086P1,347P1,104P1,122P

Table 22.1. EXPORT PRICE INDEXES*

 All pastoral and dairy productsFish and fish preparationsFood and beveragesForestry productsNon-fuel crude materialsNon-food manufactured goodsTotal exports
Dairy productsMeat, wool & by-productsTotal
ButterCheeseTotalMeatWoolTotalAluminiumTotal

* Base: year ended June 1989 (= 1000).

† Includes commodities not listed.

1,9851,1448408501,032742888901951929842780715792866
1,986983813765900718813832912849774750616752809
1,9879197797579248078848851,142892850856708802864
1,988870756741874916936901962846888978812868888
1,9891,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,000
1,9901,2011,0671,1641,1899491,0981,0991,0331,1301,0291,0278649881,064
1,9911,1841,0021,0391,1936979759951,0551,0771,0008488569591,004
1,9921,2301,1121,1081,2246399821,0371,2101,1569958347219461,031
Quarterly
1990—
  Jun1,1241,0471,1331,2079091,1001,0939571,1131,0251,0138229801,056
  Sep1,0901,0711,0541,2547791,0631,0549841,1091,0109238509661,032
  Dec1,2929831,0631,2127721,0031,0169841,0879908799579691,034
1991—
  Mar1,1809771,0371,1796499429821,0191,0801,000811828950995
  Jun1,1149841,0051,1486219259771,0421,077999801786952980
  Sep1,0921,0161,0051,1916239469831,2061,108995804734935994
  Dec1,2601,0461,0841,2076419601,0201,1671,1419798096999371,014
1992—
  Mar1,2771,1531,1531,2606271,0051,0541,1971,1711,0008436909461,041
  Jun1,2911,2051,1891,2276661,0031,0731,2841,1891,0068777629651,067
  Sep1395P1,214P1,261P1287P685P1,040P1108P1393P1,244P986P876P759P965P1090P

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.

TERMS OF TRADE INDEX

Based on ratio of exports to imports

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 10 years ended June 1989 (= 1000). An index value above or below 1000 indicates the terms of trade are either more or less favourable than the average for the 1980–89 base period.

Table 22.11. EXPORT AND IMPORT PRICES AND OVERSEAS TERMS OF TRADE INDEXES

 Export price index*Percentage change from preceding periodImport price index*Percentage change from preceding periodterms of trade indexPercentage change from preceding period

* Base: year ended June 1989 (= 1000).

† Base: average often years ended June 1989 (= 1000).

June year
1,985866 1,046 942−2.0
1,986809−6.61,002−4.2919−2.5
1,9878646.8999−0.39857.2
1,9888882.8941−5.81,0749.1
1,9891,00012.61,0006.21,1396.0
1,9901,0646.41,0343.41,1722.9
1,9911,004−5.61,0041.01,095−6.6
1,9921,0312.71,0864.01,081−1.3
Quarterly
1990 Dec1,0270.91,0826.81,081−5.5
1991 Mar995−3.11,064−1.71,065−1.5
          Jun980−1.51,016−4.51,0983.1
          Sep9941.41,0402.41,088−0.9
          Dec1,0142.01,0803.81,069−1.7
1992 Mar1,0412.71,0991.81,0790.9
          Jun1,0672.51,1262.51,079
          Sep1090P2.2P1,122P−0.4P1,106P2.5P

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 productsNon-fuel crude materialsNon-food manufactured goodsTotal imports
Plastics and plastic articlesTextile yarn, fabrics related productsIron and steelNon-electrical machineryElectrical machinery and apparatusTransport equipmentTotal

* Base: year ended June 1989 (= 1000).

† Includes commodities not listed.

June year
1,9856941,1681,1571,0581,1942,4441,068535968918954
1,9866641,0991,0421,0281,0582,1501,081629968904917
1,9878449369431,1321,1791,880941723942943945
1,9889329861,0671,0931,0122,0891,015824904986987
1,9891,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,000
1,9901,0911,1941,1601,2971,0741,2381,1121,1641,6061,2411,221
1,9911,0901,2431,0451,2199759461,1711,4051,1991,1941,175
1,9921,0901,1981,1701,4141,0159191,0751,1031,0461,1441,142
Quarterly
1990 Dec1,1141,3228771,3509899971,3431,4751,4471,3031,256
1991 Mar1,0751,2041,1521,1608779811,0831,4209031,0651,072
          Jun1,0641,1649351,0409599311,0811,1079971,0691,064
          Sep1,1109421,2061,2971,0278561,0021,1491,2351,1851,161
          Dec1,2271,3771,0161,4061,0519661,1021,1727511,1141,131
1992 Mar9501,3601,1571,3879469321,2561,0111,3281,1971,185
          Jun1,0751,1121,2991,5641,0359229411,0818701,0821,090
          Sep1,174P1319P1,217P1,714P1,170P1129P1269P1,243P1386P1380P1,347P

Owner with New Zealand-rebuilt classic Jaguar.

Table 22.13. EXPORT VOLUME INDEXES*

 All pastoral and dairy productsFish and fish preparationsFood and beveragesForestry products§Non-fuel crude materialsNon-food manufactured goodsTotal exports
Dairy productsMeat, wool and by-products
ButterCheeseTotalMeatWoolTotalTotalAluminiumTotal

* 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
1,9851,0239579348881,097960897660852741934881985888
1,9861,0121,0291,003791991857867702860758863810956874
1,9871,0201,1121,0371,0071,0761,018992782979714949815923948
1,9881,0041,1841,034948985928958789982879908898928945
1,9891,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,0001,000
1,9909711,0179508067727928688679131,0878449731,043942
1,9917521,1371,0378997698569601,0029361,2761,1481,0241,0331,033
1,9929361,1801,1471,0179529661,0391,1511,1231,4751,0641,0771,2971,152
Quarterly
1990 Dec8749321,0017678437598251,0938981,3169071,0551,152975
1991 Mar9481,2271,2319518409399878881,0261,1689941,0051,0631,035
          Jun8531,3631,0581,1018751,0371,1368351,1781,3471,0761,0101,2341,166
          Sep8669329608737868238931,0739861,5109721,0401,2671,061
          Dec1,4321,2831,4947801,1148309641,3581,0641,5281,0811,0751,3611,149
1992 Mar7181,1581,0021,0731,0291,0441,0211,1281,0611,2871,0961,0961,1701,104
          Jun7301,3471,1331,3428771,1661,2781,0451,3801,5761,1051,0971,3891,296
          Sep482P1,216P855P865P552P753P799P1028P928P1,541P850P877P1393P1029P

EXPORT VOLUME INDEX

Contributors

  • 22.1 New Zealand Trade Development Board; Customs Department; Department of Statistics.

  • 22.2 Ministry of External Relations and Trade; Department of Statistics.

  • 223–22.4 Department of Statistics.

Special articles

New Zealand Trade Development Board.

Further information

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

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 item 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, 2.6 percent higher during 1991 than they were during 1990. In comparison, consumer prices were 6.1 percent higher during 1990 than they were during 1989. Each of the eight component groups of the all groups Consumers Price Index (CPI) recorded annual average increases between 1990 and 1991. The most significant contributions to the CPI increase between those years were made by the tobacco and alcoholic drinks group and the personal and health care group.

The Consumers Price Index (CPI) measures the changing level of prices of goods and services purchased by private New Zealand households. The index is the most comprehensive measure available of the effect of changes in retail prices on the average household budget. The basket of goods and services for which prices are surveyed regularly is kept constant in quantity and quality over time, so that only ‘pure’ price movements are recorded. This is a fundamental feature of the Laspeyres-type index formula used in most countries. It is acknowledged that the New Zealand Consumers Price Index is one of the most thorough among developed countries in terms of commodity coverage. Population coverage is not restricted, as it is in some other countries, to particular groups such as wage and salary earners or the residents of main urban areas.

The CPI is also a key economic indicator, used by policy advisers, commentators and economic consultants as well as by the general public. At a time when low price inflation is one of the government's stated objectives and the Reserve Bank has been charged with formulating monetary policy to achieve this target, movements in the index have assumed greater significance. A further use of the CPI is as a deflator to convert other statistical series into constant dollar terms in order to facilitate comparisons over time. Payments such as those from superannuation funds may be indexed to the CPI.

Index regimen. Over the period for which the Consumers Price Index (CPI) has been calculated, spending patterns have changed considerably as new goods and services have appeared on the market and as lifestyles and consumer tastes have altered. The CPI is brought up to date at regular intervals by changing the composition of the basket of commodities which are price-surveyed and by adjusting the relative emphasis given to each commodity.

The current content and structure of the CPI regimen was established at the 1988 revision. At that time two additional groups were created so that the composition of all the groups could be made more homogeneous and more descriptive names could be adopted. There are 347 published regimen items (excluding fresh fruit and vegetables) reflecting the range of goods and services available in New Zealand. The regimen is divided into 8 groups and 31 subgroups.

INFLATION

Annual percentage change in Consumers Price Index

Expenditure weighting. The commodity weighting pattern incorporated into the Consumers Price Index is based on the average expenditures of the population as a whole, as measured by the Department of Statistics' Household Expenditure and Income Survey (HEIS). A large, statistically-representative sample of private households provides comprehensive details of all their expenditures. Additional data relating to expenditure on the purchase and construction of dwellings is obtained from two housing surveys conducted especially for this purpose. Other data is obtained from official production and trade statistics, from government departments, producers' marketing bodies and individual enterprises. This data is used to establish the relative weights to be assigned to each commodity for index calculation purposes.

The base weights represent expenditure allocated from similar commodities as well as the expenditure on each commodity for which prices are surveyed. 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 which represent savings and investment are also considered to be beyond the scope of the index; shares and payments to superannuation funds are examples.

  • 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. Works of art, catering charges for private functions and pets come into this category.

Price surveys. Retail outlets and organisations are selected for price surveys for the Consumers Price Index (CPI) so that they correspond as closely as possible to the buying patterns of private households. 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 in recent years, which led 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 several new price surveys and the expansion of some existing ones.

User-pays policies in the education and health fields, particularly for university and polytechnic study, general practitioner and medical specialist services and public hospital treatment, have had direct impact on the CPI. All relevant price surveys were therefore modified to take account of the availability of different services and of user status, where this has a bearing on the charge incurred.

Prices are surveyed by specially trained field staff in retail establishments in 15 urban areas throughout New Zealand. Postal surveys are also conducted by the Department of Statistics for numbers of items, including dwelling rents, used cars, sports club subscriptions, taxi fares, solicitors' fees and electricians' charges. Additional pricing information is obtained from government departments and other agencies.

The frequency of price surveys depends on a number of factors, including the relative importance of the commodity in the index and the likely price volatility. The prices of fresh fruit and vegetables are surveyed weekly, while petrol prices are collected twice a month. Food and non-food groceries are price-surveyed monthly, as are other heavily weighted commodities, such as electricity, cigarettes, alcohol and domestic airfares. The prices of all other commodities are surveyed quarterly, except those which are available for a limited season and can only be priced during that time.

Geographic coverage and published series. The urban areas in which prices are surveyed were reduced in number to 15 from 1 April 1991. The impact of this change on published national index results was statistically insignificant. Index series are now published for:

  • 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

  • Auckland, Wellington, Christchurch (separately and together).

Individual index numbers are compiled for the food group and subgroups at monthly intervals on the base December 1988 month (=1000) and for all groups and subgroups (including food) at quarterly intervals on the base December 1988 quarter (= 1000).

For user convenience a long-term Consumers Price Index series is maintained, the rebased index being linked to the previous series at each revision. When analysing this series, consideration must be given to the effects of the changing base expenditure patterns over time.

Revision of the Consumers Price Index

A five-yearly cycle of revisions of the Consumers Price Index (CPI) has been adopted by the Department of Statistics in recent years. The purpose of a revision is primarily to deal with practical matters, such as bringing the weighting pattern up to date and reviewing commodity, geographic and retail outlet coverage. It also serves to ensure that the index remains a timely and accurate statistical measure. The revision process is vital in maintaining the faith vested in the authority of the index. Any new methodological techniques are also introduced at this stage.

The last revision of the CPI took place in 1988, the current expression base of the index being the December 1988 quarter (= 1000).

The next revision is scheduled for 1993 and will take into account the findings of the 1991 Consumers Price Index Revision Advisory Committee. The committee was charged with investigating the general nature, form and objectives of the index in the light of the latest assessment of its uses and with reviewing the general principles of its construction. The committee recommended that the basic concepts and calculation methodology of the index remain unchanged and emphasised their overall soundness. There will be some expansion of commodity coverage and an adjustment to the calculation procedures for owner-occupied housing. For a detailed account of the committee's recommendations, refer to the “Report of the Consumers Price Index Revision Advisory Committee, November 1991”.

Analysis of price movements

Table 23.1 presents annual and quarterly index numbers for each commodity group for all urban areas combined. In table 23.2 the series for commodity subgroups are given, with their associated weights.

Table 23.1. CONSUMERS PRICE INDEX—GROUPS—ALL URBAN AREAS COMBINED*

PeriodFoodHousingHouse-hold operationApparelTransportationTobacco products and alcoholic drinksPersonal and health careRecreation, education and generalised creditAll group

* Base: Weighted average all urban areas, December quarter 1988 (= 1000).

December year annual average—
  1981514358534494540398....462
  1982578446607553622465....537
  1983601507628599660512....577
  1984636544644630719540....612
  1985730638727702838646....707
  1986813743834796901740....800
  19879218779579251,003898....926
  19889789819839801,013972....985
  19891,0631,0341,0241,0131,0161,0811,0781,0431,041
  19901,1401,1061,0631,0571,0511,1681,1571,1311,105
  19911,1501,1201,0861,0901,0701,2401,2491,1861,134
Quarter—
  1989–30 Sep1,0981,0471,0361,0181,0191,1091,1051,0621,059
    31 Dec1,1161,0541,0521,0311,0271,1311,1181,0691,072
  1990–31 Mar1,1161,0741,0581,0351,0331,1461,1361,0971,082
    30 Jun1,1391,1031,0601,0601,0381,1631,1531,1311,101
    30 Sep1,1541,1211,0631,0561,0441,1781,1681,1421,112
    31 Dec1,1531,1261,0721,0761,0871,1841,1701,1551,124
  1991–31 Mar1,1531,1321,0891,0811,0761,1991,2201,1731,131
    30 Jun1,1501,1301,0831,0951,0631,2101,2541,1841,132
    30 Sep1,1551,1171,0881,0891,0641,2641,2611,1891,136
    31 Dec1,1431,1011,0851,0961,0771,2871,2621,1961,135
  1992–31 Mar1,1421,0851,0911,0951,0841,2881,4081,1951,140
    30 Jun1,1411,0801,0971,1071,0901,2881,4271,2041,143

Menswear shop price ticket.

CONSUMERS PRICE INDEX

Percentage change by quarter

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 take-away foodRentalsHome owner-shipEnergy/electricityFurnishingsHousehold supplies and services
Expenditure
  weights2.563.538.713.554.2017.312.776.826.20
Quarter—
  1989–30 Sep 311,0961,1591,0861,0671,0431,0481,0291,0301,046
   Dec 1990–311,0491,2421,0971,0881,0521,0551,0301,0431,072
   Mar 309831,2301,1141,1021,0631,0761,0341,0441,084
   Jun 301,0391,2351,1391,1171,0811,1081,0401,0411,089
   Sep 311,0571,2501,1541,1291,0991,1261,0461,0381,097
   Dec 1991–311,0441,2501,1511,1381,1111,1301,0731,0421,105
   Mar 301,0161,2431,1581,1511,1161,1361,0991,0491,129
   Jun 309761,2331,1651,1561,1201,1321,1081,0471,111
   Sep 311,0161,2301,1651,1591,1341,1131,1111,0321,138
   Dec 1992–311,0181,2161,1441,1611,1181,0971,1281,0341,121
   Mar 309761,2161,1521,1641,1191,0781,1511,0341,127
   Jun9591,2151,1531,1681,1251,0711,1541,0441,129
PeriodApparelTransportationTobacco and alcoholic drinksPersonal and health careRecreation, education and generalised credit
ClothingFootwearPublic transportPrivate transportTobacco productsAlcoholic drinksPersonal goods and servicesHealth careStationery books, magazines and news-papersLeisure and recreationEducation and child careGeneralised credit

* Base: Weighted average all urban areas, December quarter 1988 (= 1000).

Expenditure
  weights4.341.003.0312.362.637.092.742.161.754.410.500.36
Quarter—
1989–30 Sep1,0151,0311,0541,0101,2291,0641,0651,1551,0791,0481,1441,037
    31 Dec1,0281,0481,0681,0171,2621,0821,0811,1651,0961,0501,1601,043
1990–31 Mar1,0321,0511,0691,0241,2781,0971,1001,1831,1071,0691,3441,050
   30 Jun1,0611,0591,1021,0231,3111,1091,1161,2001,1201,0721,7441,069
   30 Sep1,0571,0521,1291,0231,3261,1231,1271,2211,1381,0801,7471,081
   31 Dec1,0801,0591,1591,0701,3591,1191,1441,2021,1591,0911,7491,109
1991–31 Mar1,0861,0591,1761,0511,3751,1341,1551,3021,1671,1081,8051,117
   30 Jun1,1001,0711,2031,0291,4101,1351,1631,3701,2011,1111,8331,101
   30 Sep1,0931,0711,2111,0281,5651,1521,1651,3831,2151,1161,8361,066
   31 Dec1,1001,0771,1941,0491,6401,1571,1611,3901,2531,1151,8401,031
1992–31 Mar1,1031,0631,2211,0511,6411,1561,1631,7191,2331,1201,8461,024
   30 Jun1,1141,0801,2291,0551,6441,1551,1741,7471,2641,1291,7891,019

Exotic fruit shop, Auckland.

Table 23.3 shows movements in the general level of prices for all North Island urban areas, all South Island urban areas and for all urban areas combined. It is not possible to compare absolute price levels using the data in this table. In other words, no conclusion can be drawn from these series as to whether it is more expensive to live in the North Island or in the South Island.

Table 23.3. CONSUMERS PRICE INDEX—REGIONAL MOVEMENTS

GroupNorth IslandSouth IslandAll urban areas

* Base: Weighted average of urban areas, December 1988 quarter (= 1000).

 Percentage changesDecember 1990 to 1991December quarters*
Food−1.00.0−0.9
Housing−2.1−2.62.2
Household operation1.30.71.2
Apparel1.42.81.9
Transportation−0.7−1.4−0.9
Tobacco products and alcoholic drinks8.410.08.7
Personal and health care7.98.07.9
Recreation, education and generalised credit3.73.23.5
      All groups combined1.11.11.0

International comparisons

Table 23.4 provides comparable data on the Consumers Price Indexes of selected countries. The published indexes have been converted to a common base of December 1980 quarter (= 1000). The figures allow direct comparisons to be drawn between the movements in price levels experienced by domestic consumers in each country. However, the indexes do not convey any information about the relative price levels existing in each country.

Table 23.4. INTERNATIONAL COMPARISON OF CONSUMERS PRICE INDEXES*

YearNew ZealandAustraliaCanadaFrance (Paris)JapanUnited KingdomUnited States

* Base: December quarter 1980 (= 1000).

1,9872,1891,7071,4911,5911,1281,4671,307
1,9882,3291,8311,5511,6341,1361,5391,359
1,9892,4621,9701,6291,6931,1621,6591,424
1,9902,6132,1121,7071,7501,1981,8171,498
1,9912,6812,1811,8031,8081,2381,9231,559

CONSUMERS PRICE INDEX

International comparisons, percentage annual change by quarter

Average retail prices

Table 23.5 shows food prices in each of the years between December 1987 and December 1991. 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. The available and typically purchased quantity of any good will differ from shop to shop and over time. For the purposes of price comparison therefore, it is necessary to select a nationally dominant quantity as a standard to which the prices of the various typical sizes and quantities can be scaled. Significant consumer cost benefits can sometimes result from the purchase of larger quantities (e.g., special prices for two products). Therefore, price movements of individual items on the table can sometimes result solely or partly from changes to the quantities of a good that consumers typically buy and may not reflect only the price movements of quantities stated.

Table 23.5. RETAIL PRICES OF SELECTED FOOD ITEMS

CommodityUnitDec 1987Dec 1988Dec 1989Dec 1990Dec 1991
    $  
Apples, eatingkg2.823.383.513.062.94
Bananaskg2.332.352.562.432.06
Orangeskg1.972.542.702.432.60
Cabbagekg0.590.770.700.810.71
Carrotskg1.501.571.452.081.52
Onionskg1.372.001.441.692.13
Potatoeskg0.811.361.071.141.12
Peaches, canned425 g tin1.451.651.771.811.85
Peas, green frozen1 kg pkt2.542.462.532.422.13
Beef, blade steakkg7.017.3810.069.809.75
  corned silversidekg6.947.129.559.128.72
  prime rib rolledkg5.806.208.578.087.93
  porterhouse steakkg10.1310.8715.1614.9514.32
  rump steakkg8.739.2212.5812.5812.39
Mincekg4.764.827.316.836.46
Pork, cut leg, shank endkg8.358.179.639.859.68
  loin chopskg8.968.8810.5110.9510.63
Bacon, middle rasherskg14.6015.0416.3216.8817.11
Sausages, beefkg3.473.594.194.284.01
Fish, wet, filletedkg15.5415.2714.3014.5814.84
  salmon, canned210 g2.843.444.013.212.44
Chicken, deep frozen no. 8each7.797.987.737.927.66
Eggs, min. wght. 636 g/dozdozen2.452.382.822.972.63
Milk1 litre0.780.921.121.191.19
Butter, standard500 g1.651.771.831.821.86
Cheese, cheddarkg5.726.397.598.428.02
Biscuits, chocolate wheaten200 g1.551.611.751.861.88
Bread, white, sliced750 g1.291.401.631.721.76
Cake, block, fight fruit450 g3.293.393.753.944.03
Breakfast flake biscuits1kg pkt3.493.613.874.153.97
Hour, white1.5 kg pkt1.471.621.911.941.78
Rice, long grain white500 g0.700.800.900.860.83
Honey500 g1.961.902.412.472.28
Coffee, instant, refill100 g pkt4.543.993.283.253.19
Tea250 g pkt2.142.092.322.402.30
Margarine, table500 g1.861.911.972.041.99
Spaghetti in tomato sauce440 g tin1.261.271.351.421.38
Sugar, white1.5 kg pkt1.611.902.132.112.00
Ice cream, vanilla2 litre3.383.513.473.553.34
Chocolate, block275 g3.943.163.243.473.38
Meals, coffee and 2 sandwichestotal2.652.863.243.453.61
Takeaways, hamburgereach2.052.192.342.472.51
  meat pie, hoteach1.251.311.501.581.58

CONSUMERS PRICE INDEX - ALL GROUPS

Long-termed linked series

Table 23.6. RETAIL PRICES OF SELECTED ITEMS

CommodityUnitDec 1987Dec 1988Dec 1989Dec 1990Dec 1991
  $$$$$
Paint, house, white acrylic4 litres57.5061.7669.3670.3469.60
Concrete blocks, 390 mm × 190 mm × 140 mmper 100166.18195.53240.41259.97264.71
Timber, dressed, 150 mm × 25 mm, finishing tanalised, radiata pineper 100 lineal metres386.15429.21453.33481.89533.17
Electric range, 4 elements, automaticeach1,043.72963.101,241.401,284.741,288.63
Television set, colour 53–65 cmeach1,532.711,395.231,479.341,310.071,139.33
Fork, table, stainless steel, med. qualityeach1.191.332.252.432.46
Detergent, dish washing990 mls2.302.722.823.093.05
Soap powder1 kg2.302.583.643.903.88
Electric light bulb100 watt1.001.031.031.101.11
Fly spray, aerosol300 ml can2.993.363.774.084.02
Battery, 1250 super heavy dutytwin pack2.442.562.772.922.87
Postage, letter, standard posteach0.400.400.400.400.45
Public broadcasting fee, colour television1 year71.5071.50110.00110.00110.00
Pantyhose, 15 denier, average size, medium qualitypair3.724.014.124.214.40
Shorts, casual sports, boys, medium qualitypair13.0713.8113.7115.1416.07
Wool, hand knitting, crepe, double knit50g3.813.954.164.444.59
Petrol, 96 octane10 litres9.208.829.1210.7010.06
Cigarettes, filter tippedpkt of 202.853.214.054.355.25
Tobacco, cigarette50 g5.306.098.649.4411.49
Beer in public bar, glass200 mls0.810.910.981.021.12
Toilet soap150 g0.710.710.740.770.74
Toilet paper, two ply4 rolls2.592.642.792.962.94
Hair cut, women's weteach25.1825.9027.5829.3129.70
man's dryeach10.0110.6912.3612.9413.48
Soluble aspirin,packet of 242.432.542.192.242.33
Envelopes, 146 mm × 89mm, gummedpkt of 201.111.251.331.431.49
Newspaper, daily, localeach0.400.400.470.480.56
Paperback, noveleach11.959.9512.4813.4114.52
Rugby club subscription, per annumper member53.4160.1463.9069.5671.04
Tennis club subscription, per annumper member115.88129.09141.14153.68158.68

Opening day, Countdown Supermarket, Dunedin.

23.2 Producers prices

Producers Price Index

The Producers Price Index (PPI), compiled by the Department of Statistics, 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 for their outputs.

The format of the PPI is based on the economic activities assigned in the New Zealand Standard Industrial Classification. 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 form the basis for determining the relative importance (or weights) of commodities within the index. This data is supplemented by information obtained from many other sources. The specifications of commodities to be price-surveyed are determined in consultation with the suppliers of the goods and services to ensure that they are representative. The index weights and price-surveyed commodities are revised periodically to reflect changes in purchasing and production patterns.

Hoarding advertising building for lease.

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 PPI 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 1991Jun 1991Sep 1991Dec 1991Mar 1992Jun 1992

* Base: December quarter 1982 (= 1000).

† Includes industry groups 5 to 13.

‡ Includes industry groups 1 to 21.

1 Agriculture1,6021,5961,5891,5961,6071,634
            Sheep and beef farming1,6161,6141,6061,6111,6251,650
            Dairy farming1,5971,5801,5791,5871,5961,644
            Mixed cropping1,5641,5581,5601,5701,5661,589
            Horticulture1,6171,6251,6141,6271,6431,644
            Pig, poultry and other farming1,5051,4881,4721,4791,4861,494
            All farming1,6021,5961,5901,5961,6081,636
            Agricultural contracting1,5611,5441,5471,5561,5611,568
2 Fishing and hunting1,3991,4071,4241,4551,4871,506
3 Forestry and logging1,6591,6631,6611,6721,6771,689
4 Mining and quarrying1,5471,5481,5501,5581,5591,568
5 Food, beverages and tobacco1,5301,5101,5441,5621,5941,593
            Primary food processing1,4881,4591,5001,5121,5531,552
            Other food processing1,5091,5021,5241,5481,5621,563
6 Textiles, apparel and leather1,3851,4481,4251,4201,4761,516
7 Wood and wood products1,8061,8211,8111,8241,8211,842
8 Paper, printing and publishing1,7011,7081,6981,6951,7011,700
9 Chemicals, petroleum and plastics1,3301,2691,2741,3081,2841,301
10 Non-metallic mineral products1,6831,6861,6911,6911,6921,698
11 Basic metals1,6041,5831,5731,5691,5701,590
12 Machinery and metal products1,6681,6801,6731,6941,7201,736
13 Other manufacturing1,5571,5611,5671,5841,5911,598
14 Electricity, gas and water1,7721,7741,7761,8021,8021,755
15 Construction1,7321,7321,7251,7351,7371,735
16 Trade, restaurants and hotels1,9131,9141,9241,9321,9351,943
            Wholesale and retail trade1,9701,9711,9771,9871,9931,997
            Hotels, restaurants, takeaways1,7631,7611,7831,7891,7871,805
17 Transport and storage1,6171,5981,5991,6121,6231,629
            Road transport1,5091,4821,4821,4971,5141,507
            Transport and storage other than road1,6601,6431,6451,6561,6651,676
18 Communication1,5261,5271,5221,5321,5311,544
19 Insurance and financing2,2082,2112,2142,2072,2122,208
20 Ownership of dwellings2,0572,0612,0752,0762,0652,085
21 Community and personal services1,7731,7891,7971,8131,8281,837
22 Central government1,7891,7771,7821,7751,7841,792
23 Local government1,7341,7281,7201,7151,7201,730
24 Private non-profit services1,9001,9261,9241,9301,9391,942
All manufacturing groups1,5511,5461,5501,5651,5821,595
All market groups1,7011,6991,7021,7131,7231,732
              All industry1,7011,7051,7081,7181,7281,737

Table 23.8. PRODUCERS PRICE INDEX—OUTPUTS*

Industry groupQuarter ended
Mar 1991Jun 1991Sep 1991Dec 1991Mar 1992Jun 1992

* Base: December quarter 1982 (= 1000).

† Includes industry groups 5 to 13.

‡ Includes industry groups I to 21.

1 Agriculture1,3851,3921,3901,4081,4831,501
2 Fishing and hunting1,7591,8211,9021,8991,9031,990
3 Forestry and logging2,5132,6902,7032,7042,7032,726
4 Mining and quarrying1,2921,2731,3201,3341,3071,335
5 Food, beverages and tobacco1,6411,6401,6511,6641,6991,708
            Primary food processing1,5151,5091,5081,5341,5791,579
            Other food processing1,8121,8191,8491,8421,8581,882
6 Textiles, apparel and leather1,4321,4751,4551,4511,4901,522
7 Wood and wood products1,7361,7551,7601,7621,7561,772
8 Paper, printing, and publishing1,7551,7681,7751,7651,7651,768
9 Chemicals, petroleum and plastics1,4781,4711,4241,4051,4101,415
10 Non-metallic mineral products1,6451,6541,6541,6541,6561,655
11 Basic metals1,5361,5091,4731,4761,4521,493
12 Machinery and metal products1,6871,6951,6951,7121,7401,762
13 Other manufacturing1,5781,5961,5951,6001,6091,610
14 Electricity, gas and water1,7871,7951,7991,8281,8401,814
15 Construction1,7001,7061,7021,7001,7001,694
16 Trade, restaurants and hotels1,6881,6091,6941,7091,7021,716
            Wholesale and retail trade1,6251,6271,6291,6451,6351,653
            Hotels, restaurants, takeaways1,9281,9311,9461,9521,9551,953
17 Transport and storage1,6001,6021,5971,5891,6071,605
            Road transport1,7541,7511,7491,7471,7461,733
            Transport and storage other than road1,5121,5171,5101,5001,5251,528
18 Communication1,5141,5201,5471,5471,5471,507
19 Insurance and financing2,359R2,358R2,3032,3392,3462,392
20 Ownership of dwellings2,7902,8012,8442,7772,7572,783
21 Community and personal services2,0042,0152,0292,0472,0582,071
All manufacturing groups1,6171,6251,6171,6211,6401,655
All market groups1,746R1,753R1,7491,7561,7701,783

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 vehicles. Quarterly index numbers for these asset-type indexes are available from the December 1979 quarter. Six group indexes and the all-groups index have been produced from the December 1989 quarter.

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. This data has been supplemented with information obtained in discussions with manufacturers, importers, wholesalers and retailers. Generally data for several years has been used, as expenditure on capital goods can be irregular.

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.

For Sale board, real estate agency.

Table 23.9. CAPITAL GOODS PRICE INDEX*

Asset groupQuarter ended
Dec 1990Mar 1991Jun 1991Sep 1991Dec 1991Mar 1992Jun 1992

* Base December 1989 quarter (=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 buildings1,0301,0331,0391,0441,0471,0481,050
Non-residential buildings1,0211,0211,0251,0261,0251,0191,010
Other construction1,0361,0351,0421,0391,0401,0481,046
Land improvements1,0361,0461,0521,0581,0621,0641,066
Transport equipment9891,0081,0261,0321,0481,0761,101
Plant, machinery, and equipment1,0401,0521,0511,0541,0621,0781,088
All groups1,0231,0321,0381,0401,0471,0581,064

Contributor

23.1–233 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

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 March 1992 there were 20 registered banks, four of which were the existing trading banks. The remaining 16 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.

The Reserve Bank, Wellington.

Table 24.1. ASSETS OF THE RESERVE BANK

As at 30 JuneDenominated in foreign currencyDenominated in New Zealand dollars
Current account and advancesMarketable securitiesIMF holdings of SDRsForeign assetsAdvances
Settlement institutions*Crown Settlement accountAdvances to Treasury
1,9902 3861 937121944901 275
1,9911 8652 217126681 032
1,9921 5052 812227431 124
As at 30 JuneDenominated in New Zealand dollars
Investment in NZFixed assets and inventoriesOther assets§Total assets
Government securitiesOther

* Includes government stock buy backs, one day interbank advances and accrued interest.

† Government bank accounts.

‡ Includes marketing board loans, marketable securities and accrued interests.

§ Includes small amounts of foreign currency banknotes, staff loans and sundry debtors.

Source: Reserve Bank of New Zealand.

1,9901 23852112337 721
1,9911 3033987277 240
1,9921 2963266197 601

Table 24.2. LIABILITIES OF THE RESERVE BANK

As at 30 JuneDenominated in foreign currencyDenominated in New Zealand dollars
Current*Long termAllocations of SDRsReserve billsGovernmentStabilisation account
1,9904063 4833181 195228160
1,991283 733322990397
1,9921103 8303751 127517
As at 30 JuneDenominated in New Zealand dollars
Settlement institutionsOther§Currency in circulationOther liabilitiesCapital and reservesTotal liabilities

* Overseas liabilities.

† Domestic liabilities.

‡ Includes Crown settlement account.

§ Includes IMF number 1 account.

Includes accounts payable and staff deposits.

Source: Reserve Bank of New Zealand.

1,9903301 1781645577 721
1,99166481 22694217 240
1,9921103 8303751 127517

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 March 1992 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; 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.

Nadja Tollemache, Banking Ombudsman.

Table 24.3. LIABILITIES AND ASSETS OF M3 FINANCIAL INSTITUTIONS

ItemAs at June quarter
199019911992

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$(million)
Liabilities
NZ dollar funding—
        NZ residents..56,56056,467
        Non-residents..5,4007,829
        Unallocated..
            Total, NZ$ funding55,38861,96064,294
Foreign currency funding—
        NZ residents..3,9122,754
        Non-residents..5,6526,659
        Unallocated 
        Total7,5549,5649,413
Capital and reserves..5,6056,074
Miscellaneous*..1,5481,935
            Total liabilities70,60678,67781,766
Funding from associates
Unused committed borrowing
      Lines and standby facilities available to surveyed institutions..1,467647
Assets
NZ Government securities (includes Treasury bills)..7,2298,924
NZ currency..230262
Balances with the Reserve Bank..1,1241,166
NZ dollar claims—
        NZ residents..62,42464,095
        Non-residents..9051,078
        Unallocated..
            Total, NZ$ claims58,00563,32965,173
Foreign currency claims
        NZ residents..2,1212,164
        Non-residents..821718
        Unallocated..
        Total3,5552,9422,882
Foreign (currency) fixed assets and equity investment..1,1481,154
Shares (in NZ companies)..1,9431,307
Fixed assets (in NZ)..1,7561,597
Miscellaneous*..−1,025−699
            Total assets70,60678,67781,766
Financial claims on associates..3,1032,790

Bank officer checking a sheet of $20.

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 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 statistics on financial sector activity 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.

Melvin and Mavis, ATMs at Kilbirnie, Wellington.

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)1 5691 6151 6631 761
Full-time equivalent persons engaged27 26127 93327 73427 183
 $(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

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 enterprises1 5651 5921 765
Enterprises within these group enterprises2 6462 8573 140
Activity units (including ancillaries)1 9492 1382 113
Full-time equivalent persons engaged16 74117 32815 131
Stocks—$(000)
    Closing2,3001,2031,247
    Opening1,3341,0361,452
Income—
    Interest and dividend received7,294,92111,211,1659,504,532
    Other financial services1,024,629889,133724,191
    All other income received988,811962,036653,274
Total income7,308,36213,062,33410,881,997
Adjusted for change in stock values7,309,32913,062,50010,881,792
Operating expenditure—
    Salaries and wages468,380604,739512,716
    Depreciation81,53298,573111,707
    Interest, bad debts, etc.5,109,7977,956,1466,205,215
    Indirect taxes11,34213,3167,291
    Purchases51,4317,62411,870
    All other operating expenditure1,941,3643,052,3122,218,743
Total expenditure7,922,89611,732,7109,067,542
Working proprietors/partners salaries and wages54,75991,35863,351
Net profit before tax after deducting working proprietors/partners salaries and wages1,331,4431,238,4321,750,900
Economic values—
    Operating surplus1,566,7901,630,4002,022,592
    Value added2,164,8722,392,6262,689,402
Fixed tangible assets—
    Purchases during the year312,514269,444349,798
    Sales during the year167,560115,01391,913
    Shareholders' funds, etc.32,816,74138,249,94240,547,418
    All other liabilities46,797,78254,840,05548,477,989
Total capital and liabilities79,614,52393,089,99789,025,407
Fixed tangible assets978,2001,203,4271,827,592
All other assets78,636,32391,886,57087,197,815
Total assets79,614,52393,089,99789,015,407
Ratios—$
    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. Issue is affected by both seasonal and general economic influences, notably changes in the level of economic activity and in domestic prices. 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 holdings of money balances, amounting to about 15 percent of the narrowly defined money supply (Ml) and roughly 2 percent of the broad money supply (M3). The total value of notes and coins on issue from the Reserve Bank as at 18 August 1992 was $1,230 million.

During 1992 the Reserve Bank commenced introduction of a new series of notes, incorporating the first substantial changes to notes since the introduction of decimal currency in 1967. The new notes contain additional security features. Portraits on the notes are: $5, Sir Edmund Hillary; $10, Kate Sheppard; $20, Her Majesty, The Queen; $50, Sir Apirana Ngata; and $100, Ernest, Lord Rutherford of Nelson. The Queen also features on the watermark of all the notes. Rare New Zealand birds are featured on the backs of the notes. The $5 note was released on 10 July 1992; the $20 on 1 September, and the $50 and $100 during November. The $10 is scheduled for release in April 1993.

New $5 and $20 notes.

Monetary policy

Monetary policy is implemented by the Reserve Bank under the terms of the Reserve Bank of New Zealand Act 1989 and the Policy Targets Agreement between the Governor and the Minister of Finance. The bank's objective is to achieve price stability (0 to 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 early 1992 (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 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 other variables which affect 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 affects interest rates and the exchange rate and keeps the money supply tight. This in turn influences nominal economic activity and inflation. The other instrument used to affect interest rates is the discount margin—the penalty incurred by institutions when forced to sell their holdings of Reserve Bank bills 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 1991 and 1992, monetary policy continued to focus on the objective of achieving price stability (0 to 2 percent annual increases in consumer prices) by the end of 1993. Inflation fell further in 1991 than had earlier been forecast. However, some of this reduction was due to one-off factors associated with oil prices, 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 exchange rate depreciated over the last part of 1991, and remained relatively stable subsequently, while interest rates fell significantly further through the first eight months of 1992. These declines followed the significant falls both in measured inflation and in expectations of future inflation, and reflected an increasing recognition that the Reserve Bank will ensure that monetary conditions remain consistent with the achievement of price stability by the end of 1993 and with the maintenance of price stability thereafter.

New $50 and $100 notes.

Table 24.6. MONEY SUPPLY AND CREDIT AGGREGATES

Selected aggregatesAs at 31 March
199019911992

* Readily available money supply.

† Broad money supply, including term deposits.

Source: Reserve Bank of New Zealand.

 $(million)
Monetary
    Notes and coin held by the public1,0741,1191,020
    Transaction account balances8,2218,2918,298
    Less, inter-institutional transaction balances425479156
    Less, government deposits331910
            M1*8,8378,9129,152
    Other funds45,32851,79056,604
    Less other inter-institutional funding8,0799,1838,577
    Less government deposits145
            M345,96151,51957,179
Credit-Gross
    claims—
        (a) Surveyed institutions56,53162,60665,991
        (b) Other302620
 56,56162,63266,011
    Less inter-institutional claims6,6917,7258,532
            Private sector credit49,87054,90757,479
    Marketing and stabilisation−133−7127
    Claims on government—
        (a) Surveyed institutions4,2965,9088,059
        (b) Reserve Bank2,2332,4802,386
        (c) Coins in circulation100100139
            Total6,6298,48810,584
            Domestic credit56,36663,32468,090

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.

KEY MARKET RATES

Weekly averages by type

The Reserve Bank Registry maintains registers of stock for government, local authorities and other public bodies and several state-owned enterprises.

At 21 July 1992, the value of total government securities registered was $22,545 million, little changed over the last year. Of this total $20,959 million comprised Treasury bills and other wholesale government stock while government retail stock of $1,586 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.

Table 24.7. GOVERNMENT SECURITIES ON ISSUE

 As at
March 1991September 1991March 1992
Source: Reserve Bank of New Zealand.
 $(million)
Ordinary government stock, by maturity:
        Less than or equal to 1 month541.1
        More than 1 month, up to 3 months487.3137.2223.4
        More than 3 months, up to 6 months797.51,112.61,186.2
        More than 6 months, up to 2 years3,427.11,967.62,767.0
        More than 2 years, up to 5 years5,484.35,795.76,058.2
        More than 5 years1,446.84,525.35,080.2
Treasury bills by maturity:
        Less than or equal to 3 months1,796.04,285.03,925.0
        More than 3 months, up to 6 months3,249.01,647.01,610.0
        More than 6 months, up to 1 year240.0240.0240.0
        Unclassified1,199.7889.0933.3
Index linked stock671.6541.1445.9
Government stock coupons645.4592.7517.9
Kiwi stock9.08.58.2
IASBs267.6237.0220.5
ONZ Bonds9.68.77.8
Premium stock
Savings stock
Kiwi Bonds705.8779.1723.3
            Total internal public debt20,436.723,307.823,946.9

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. 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 the first nine months of that year.

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 then 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 53 by the end of December. In the first quarter of 1992 it rose back to 55, but it gradually declined again to 53 at the end of August 1992.

Since the easing of monetary policy and the decline in the exchange rate in September 1991, the New Zealand dollar has weakened further against the main European currencies and the Japanese yen. However, it has almost maintained its value against the United States dollar and it has strengthened in relation to the Australian dollar.

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.)

Over 1991 and early 1992, the real exchange rate has depreciated by over 10 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 an important factor.

EXCHANGE RATE

Trade-weighted index

Table 24.8. FOREIGN EXCHANGE RATES*

End of periodUS mid-rate (US$ per NZ$1)UK mid-rate (Stg per NZ$1)Australian mid-rate (A$ per NZ$1)Japan mid-rate (Yen per NZ$1)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’.

Source: Reserve Bank of New Zealand.

1991–Sep0.57090.32640.714275.960.95170.829856.5
        Oct0.55880.32070.712773.230.93540.819455.4
        Nov0.56270.31790.717773.040.90980.804255.5
        Dec0.54090.28970.711967.930.82140.733252.9
1992–Jan0.54050.30330.722867.910.87310.775553.6
        Feb0.54840.31110.727670.790.89820.812554.7
        Mar0.54830.31560.713872.810.90170.822554.9
        Apr0.53960.30450.709572.090.89410.821454.2
        May0.53550.29290.706168.780.86080.781353.0
        Jun0.54580.28680.729568.590.83030.749653.6
        Jul0.54550.28300.732969.540.80530.717653.7
        Aug0.54030.27260.754366.410.76070.681353.1

Contributors

24.1–24.2 Reserve Bank of New Zealand, Department of Statistics.

Special articles

Office of the Banking Ombudsman; Reserve Bank.

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

The Octagon, Dunedin. The Dunedin City Council was awarded the New Zealand Planning Institute's 1990 Award of Merit for the re-development and up-grading of the Octagon, main street, historical municipal buildings, Dunedin Centre and Visitors' Centre.

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 goods and services from departments and other bodies, 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 entities, which are bodies corporate other than State-owned enterprises. These have been 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 Ministers departments and offices of Parliament 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, debt transactions and the cashflows of the Crown. 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 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.

CROWN ASSETS

LIABILITIES

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.

Legislative regime. The Public Finance Act 1989 is the legislation governing the way the Crown, government departments and Crown entities manage and report on expenditure. This legislation was part of the Government's strategy to improve the overall efficiency of the economy and was the culmination of substantial reform in the public sector.

Just as the State Owned Enterprises Act 1986 and the State Sector Act 1988 made 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 management.

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 entities, and compare the cost of outputs from different sources. This has opened the way for increased competition within the public sector. Also, where government departments operate in competition with private sector suppliers, the management system helps ensure that departments operate with neither advantages nor disadvantages compared with that competition. Public sector managers are able to demonstrate the quality of their performance in comparison with other suppliers of goods and services.

An important element of the financial management system is the cash management procedures which give departments significant control over their own finances. Departments operate 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 provides the basis for the appropriation and management of public financial resources. It provides for the provision of information to Parliament on which to base its decisions on how public money should be spent, and to assess afterwards whether the money has been well spent.

Financial reporting. The ownership interest of the government requires similar financial reporting to that used in the private sector. This includes distinguishing capital and current expenditure and the use of full accrual accounting to monitor the performance of the Crown's investment. The purchase interest requires the same type of information as private sector sales contracts: quantity; quality; time and place of delivery; and price. As decisions about output pricing and production require information about total resources used (costs), not simply cash outlaid, accrual accounting is required.

Accrual accounting. Since 30 June 1991 all departments have been required to produce financial statements prepared on an accrual accounting basis.

The financial statements include a statement of objectives and a statement of service performance as well as an operating statement, statement of cashflows and statement of financial position.

The departmental financial statements along with information on financial transactions undertaken on behalf of the Crown were consolidated in 1992/3 to produce the first set of accrual financial statements of the Crown for the year ended 30 June 1992.

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 annual audited financial statements.

Crown banking arrangements. 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. The 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.

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).

GOVERNMENT REVENUE

By source

Table 25.1. GOVERNMENT FINANCE: RECENT SUMMARY OF CASHFLOWS

Year endedPopulation*ReceiptsPaymentsPublic debt
From taxationOtherDue in NZ currencyDue in foreign currencyTotal

* 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—
1,9702 857 8601,1021711,2752,3525362,887
1,9753 148 4002,7602863,0353,3378634,200
1,9803 176 4005,8801,6507,5296,7793,56810,346
1,9853 303 10011,5804,59116,16215,83712,41028,246
1,9893 369 80022,8649,24631,55423,25116,47039,721
30 June—
1,9903 410 40026,1984,59329,60623,76120,58644,347
1,9913 449 70025,7975,51529,87923,44420,49243,936
1,9923 433 200P24,1713,40529,59726,37820,72747,105

Table 25.2. GOVERNMENT EXPENDITURE

ItemYear ended 30 June
1990*19911992
NetNetNet

* 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.

† Net expenditure is generally arrived at by deducting trading and departmental receipts from gross expenditure.

‡Provisional.

  $(million) 
Administration—
     General administration2,0462,0811,795
     Law and order9591,0041,128
     Government services35
     Miscellaneous services0
 3,0083,0902,923
Foreign relations—
     Defence1,3521,3201,264
     Foreign affairs327321397
 1,6791,6411,661
Development of industry—
     Land use289335298
     Other industrial services8711,039689
 1,1601,374987
Education—
     Education4,0684,4014,721
Social services—
     Social welfare9,3519,89210,056
     Other social services9691,113639
 10,32011,00510,695
Health—
     Health3,7823,9863,876
Transport and communications—
     Transport888826828
Debt services and miscellaneous investment and financing transactions—
     Debt services(4,725)4,6244,164
     Miscellaneous investment transactions(3,998)(3,679)(163)
     Miscellaneous financing transactions(123)(16)(225)
 6049293,776
            Total25,50827,25229,468

GOVERNMENT SPENDING

In major areas

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 30 June
199019911992

* Includes increase/(decrease) in Cash balances and adjustments for non-cash items and provisional end-of-year data.

† Estimated actual as per Budget Table 2 cash accounts.

  $(million) 
Total expenditure (I)25,50827,25229,468
Expenditure on major projects and producer boards refinancing1,656325381
Total expenditure (II)27,16427,57729,849
Financed from:
     Direct taxation:
          Income tax:
               Individuals13,40013,17712,405
               Companies2,5311,7621,800
               Other8841,4301,185
          Other direct taxation35125383
     Indirect taxation:
          Goods and services tax5,6806,1646,230
          Excise duties2,0021,8211,813
          Other indirect taxation1,3521,1901,240
                 Total taxation26,20025,79724,756
     Interest, profits and miscellaneous receipts2,1533,2132,796
                 Total revenue28,35129,01027,552
Amount financed from borrowing excluding refinancing of major products and producer boards (surplus) (I)(2,843)(1,758)1,916
Amount financed from borrowing including refinancing of major products and producer boards (surplus) (II)(1,187)(1,433)2,297
Net borrowing/(repayment) in New Zealand(3,196)4123,737
Internal surplus/(deficit)(2,009)1,845(1,440)
Net borrowing/(repayment) overseas1,235(1,220)(1,230)
Cash surplus/(deficit)*(774)625(2,670)

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.

25.2 Taxation

The following summary of the New Zealand tax system takes into account all relevant amending legislation effective at 31 March 1992. 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 1992 was approximately $15,322 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 1992–93 year are:

Income not exceeding $30,87524.0c for every dollar
Income exceeding $30,87533.0c for every dollar

TAXATION PER CAPITA

Adjusted for inflation*

‘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 National Superannuation 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 25.4. REBATES: YEAR ENDED 31 MARCH 1992

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, during the year: under 15 years of age; under 18 years of age and attending a primary or secondary school, or a school for the mentally or physically disabled; or under 19 years of age but turned 18 on or after 1 January 1991 and continued to attend a primary or secondary school or a school for the mentally or physically disabled 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 1992 totalled $588 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:

1993 income year (year ended 31 March 1993)

Family income—

0–$17,500nil
$17,501–$27,00018¢ in $
Over $27,00130¢ in $

The system of guaranteed minimum family income payments will remain the same. They will continue to be split between the parents in two parent families, and given to the carer in sole parent families through 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.

National Superannuation 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 then-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 National Superannuation surcharge (formerly the Guaranteed Retirement Income 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 $1.92 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 offices.

All the credits attached to interest and dividends are deducted from the tax payable on the total income when the appropriate return is filed each year, in the same way as PAYE on income from employment. In previous years the first $200 of interest received was tax free but with the advent of the PAYE system this 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.

Ruth Richardson, the first female Minister of Finance in the Commonwealth.

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 1992 totalled $456,147,000.

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 1992 totalled $2,315.5 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 at 10 percent on 1 October 1986 and raised to 12.5 percent from 1 July 1989.

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 1991 to 31 March 1992, $4,090.8 million net 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 $78.3 million in the year ended 31 March 1991.

The pamphlet Estate and Gift Duties, available from the Inland Revenue Department, supplies more information.

Stamp and cheque duty. These duties are levied under the Stamp and Cheque Duties Act 1971. Stamp duties are not payable on instruments executed on or after 17 March 1988, except for duty payable in respect of commercial land and buildings. Duty has been abolished in respect of property such as shares, mortgages, counterparts and goodwill and residential property.

The rates of stamp duty in respect of the transfer of commercial land and buildings is 1 percent for the first $50,000 of the value of the property; 1.5 percent for the excess over $50,000 up to $100,000; and 2 percent for the excess over $100,000.

Cheque duty is computed at the rate of 5 cents for each bill of exchange. A bill of exchange is any promisory note (such as a cheque) other than a banknote.

The pamphlet Stamp Duty, available from the Inland Revenue Department, supplies more information.

Gift duty. Individual or aggregated gifts with a value of over $27,000 in any 12-month period are subject to gift duty.

A gift statement is required to be filed with the Inland Revenue Department for any gift or gifts valued at $12,000 or more.

There is an exemption for small gifts of up to $2,000 in value made by a donor in good faith as part of their normal expenditure.

Table 25.5. 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 32.2 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.

Filling up.

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) was $17.88 per litre of alcohol in September 1992. The higher uniform rate for spirits was $31,301 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 June 1992, was $134.01 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. The indexation of tobacco products may occur in June and December of each year, while alcoholic beverages may be indexed in March and September.

Hubodometer, measuring kilometres travelled.

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 reading 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 reading 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, 32.2 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, 9.4 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 $48.1 million net during the year ended 31 July 1992.

Taxation review authorities

The Inland Revenue Department Act 1974 provides for the establishment of one or more taxation review authorities. There are three authorities. Each consists of one person who is a barrister or solicitor of the High Court of not less than seven years practice, and is appointed by the Governor-General. The functions of the authority are to sit as a judicial authority for hearing and determining such objections to assessments of tax or duty, or the decisions or determinations of the Commissioner of Inland Revenue, as are authorised by the relevant legislation. A determination of an authority is subject to an appeal to the High Court as to any question of fact (where the tax or duty exceeds $2,000) and to any question of law.

Tax revenue

A summary of income tax revenue and total public account taxation revenue is given for a series of years in table 25.6.

Table 25.6. 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.

† From 1992 accounts prepared on an accrual basis.

 $(million)$%$(million)$
1,9804,465.61,423.0774.26,020.01,918.42
1,9858,348.52,561.4370.111,913.63,655.26
1,98610,567.23,228.2074.214,235.94,348.96
1,98712,431.83,785.7971.417,408.15,301.21
1,98813,799.94,161.2364.121,528.16,491.60
1,98914,977.94,500.0365.522,863.96,869.34
Year ended 30 June
1,99016,814.45,006.5264.226,198.17,800.52
1,99116,369.74,820.0063.525,797.67,596.02
199215,321.04,473.8064.123,901.06,979.20

Table 25.7. RECEIPTS OF TAXATION

ItemYear ended 30 June
199019911992

† From 1992 accounts prepared on an accrual basis

  $(million) 
Direct taxation—
     Income tax16,814.416,369.715,321
     Estate and gift duty79.680.483
     Land tax271.0172.3(33)
          Total, direct taxation17,165.016,622.415,371
Indirect taxation—
     Goods and services tax5,680.46,163.85,452
     Customs and excise duty2,630.62,325.82,344
     Motor vehicle fees and charges156.8154.1140
     Gaming duties85.683.187
     Energy resources levy90.787.2100
     Stamp and cheque duties105.777.2105
     Road user charges281.6285.3302
     Other1.7(1.3)
          Total indirect taxation9,033.19,175.28,530
          Total, public account taxation26,198.125,797.623,901

Table 25.8. COMPARISON OF PUBLIC ACCOUNT TAXATION AND NATIONAL DISPOSABLE INCOME

Year endedNational disposable income*Public account taxation
TotalPercentage of national disposable income

* National Disposable Income is calculated on a year ended 31 March.

† From 1992 accounts prepared on an accrual basis.

 $(million)percent
31 March—
1,98534,60311,913.634.4
1,98639,42714,235.936.1
1,98748,23417,408.136.1
1,98853,88921,528.139.9
1,98957,97322,863.939.4
30 June—
1,99061,60226,198.142.5
1,99163,38025,797.640.7
1,99263,19523,901.037.8

Table 25.9. INCOME OF COMPANIES

Year ended 31 MarchNumber of returnsAssessable income before losses*Assessable incomeOrdinary dividents receivedIncome tax AssessedExport tax credits

* Assessable income before deduction of losses carried forward from previous years.

† Includes non-resident withholding tax.

1,98482 9203,742.43,281.9863.41,261.8434.8
1,98586 8204,977.04,345.91,458.31,622.8586.1
1,98685 5104,244.53,865.52,160.31,565.4492.2
1,98790 1205,540.04,835.22,766.82,119.7503.2
1,98889 2705,759.03,657.62,732.11,483.3284.5

TAB clients scanning race boards.

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).

The level of gross public debt as a proportion of gross domestic product (GDP) fell from a peak of around 77 percent at 31 March 1987 to 63.2 percent as at March 1988 and has fluctuated between 59.5 percent and 64.5 percent since that time. The relative stability since 1987/88 reflects several offsetting influences. The major factors contributing to a reduction in gross public debt were the table 2 surpluses achieved through asset sales. In some years (1987/88 and 1989/90) currency appreciation reduced the size of the debt. Offsetting factors included the continued refinancing of major project debt, the assumption of responsibility for New Zealand Railways and Tourist Hotel Corporation debt in 1990, the exchange of some Housing Corporation debt for government stock, and changes in accounting treatment. Currency depreciation in 1988/89, 1990/91 and 1991/92 also increased the level of gross and net public debt.

The Government's medium-term fiscal policy with regard to debt management is that it should stabilise and control debt-to-GDP ratios. Furthermore, by pursuing policies which will lead to financial balance, the Government will ensure that, in the long term, debt-to-GDP ratios will fall.

The Government's approach includes on-going tax reform, measures to reduce and get better value from government spending, and a programme of relinquishing state ownership of assets. Income from asset sales which had been finalised at the time of going to print is outlined below.

Table 25.1. SALES OF STATE-OWNED ENTERPRISES

BusinessSale priceSettlement date
 $(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—completed678,47831 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 Bank687,50031 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 rights490,30019 October 1990 – 15 May 1992
Housing Corporation Mortgages511,68425 November 1991 – 27 August 1992
Government Supply Brokerage3,20030 January 1992
Taranaki Petroleum Mining Licences118,8406 April 1992
Bank of New Zealand849,9465 November 1992

The New Zealand Debt Management Office of the Treasury manages the Crown's debt and related interest-bearing assets. The Reserve Bank acts as agent for the Debt Management Office in sales of government stock, Treasury bills and Kiwi Bonds.

Table 25.11. TOTAL PUBLIC DEBT OUTSTANDING

CurrencyOutstanding at 30 JuneIncrease or (decrease)
19911992
  $(million) 
New Zealand Dollars
     Government Stock13,79217,5663,774
     Treasury Bills6,4496,190(259)
     Reserve Bank Bills1,0261,12094
     Loans and foreign exchange contracts1,065528(537)
     Retail Stock1,112974(138)
          Subtotal23,44426,3782,934
Foreign Currency:
     United States Dollars12,29210,524(1,768)
     Japanese Yen3,1824,5171,335
     British Pounds1,2911,758467
     German Marks1,1791,552373
     Swiss Francs1,1261,389263
     European Currency Units1,421987(434)
     Other currencies1(1)
          Subtotal20,49220,727235
               Total43,93647,1053,169

PUBLIC DEBT

In selected currencies

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
 $(million) $(million) $(million) 
31 March
1,9814,23636.57,38163.511,61712.3
1,9825,54938.68,83261.414,38223.8
1,9837,76541.410,96858.518,73330.3
1,9848,22637.613,65262.421,87916.8
1,98512,41043.915,83756.128,24629.1
1,98614,72646.017,27654.032,00213.3
1,98721,72851.220,74448.842,47232.7
1,98816,97143.422,09756.639,068(8.0)
1,98916,47041.523,25158.539,7211.7
30 June
1,99020,58646.423,76153.644,34711.6
1,99120,49146.623,44453.443,936(0.9)
1,99220,72744.026,37856.047,1057.2

Table 25.13. GROSS INDEBTEDNESS OF CENTRAL GOVERNMENT

As at 31 MarchAmountPer head of population
 $(million)$          
1,98421,8796,772.33
1,98528,2468,666.37
1,98632,0029,776.44
1,98742,47212,933.77
1,98839,06811,780.60
1,98939,72111,933.96
As at 30 June
1,99044,34713,204.26
1,99143,93612,936.58
1,99247,10513,795.98

PUBLIC DEBT PER CAPITA

At constant values

Table 25.14. INTEREST PAYMENTS

Year endedInterestInterest overseas debt as percentage of exports of goods and servicesRecovery of interest from government enterprises and investmentNet interest costNet 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.

Estimated actual.

    $(000)   
31 March
1,9861,026,4272,275,9533,302,3807.41,485,8371,816,54312.8
1,9871,292,1312,777,3074,069,4388.51,664,6442,404,79413.8
1,9881,477,7763,469,9964,947,7728.91,940,4033,007,36914.0
1,9891,371,9623,115,3114,487,2737.61,366,8823,120,39113.6
30 June
1,9901,525,0003,200,0004,725,0007.9922,0003,803,00014.5
1,9911,692,0002,932,0004,624,0008.4879,0003,745,00014.5
1992§1,682,0002,483,0004,165,0007.9678,0003,487,00014.1

Table 25.15. MATURITY PROFILE OF PUBLIC DEBT OUTSTANDING, AS AT 30 JUNE 1992

 Financial yearTotal
1992/931993/941994/951995/961996/971997/98–2001/02After 2001/02
Source: The Treasury
    $(million)   
Oustanding Debt
Dollar debt
     Government stock1,1612,8233,3421,0753,0726,09317,566
     Treasury bills6,1906,190
     Reserve Bank notes1,1201,120
     Retail stock6831485390974
     Loans and foreign-exchange contracts241673201916528
     Total New Zealand dollar debt9,3953,0383,3981,1653,0926,284626,378
Foreign currency debt
     United States dollars2,7931,4312,2625554581,1941,83110,524
     Japanese yen6751,182422(4)2421,5654354,517
     British pounds2333494886881,758
     German marks(1)3416022493611,552
     Swiss francs45784197213823561,389
     European currency units247740987
     Total foreign currency debt4,4043,0383,8321,0131,8833,6032,95420,727
Total outstanding debt13,7996,0767,2302,1784,9759,8872,96047,105

Table 25.16. STATEMENT OF BORROWINGS

 Year ending 30 June
1989*199019911992

* 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 and 1992 includes the balance of swap arrangements of $108.5 million and $31 million.

§ For period ended 30 June 1992 short-term borrowing transactions were disclosed on a net basis.

Source: The Treasury.

  $(million) 
Opening Balance39,600.643,117.844,346.543,936
Plus, loans raised10,825.939,074.541,094.615,163§
Less, loans repaid8,343.139,976.541,783.514,389§
Plus, debt taken over1,896.8
Plus, foreign currency realignment679.4(49.6)277.62,394
Plus, outstanding foreign exchange contracts equal Closing Balance1
Total Public Debt excluding Swaps42,762.844,0625
Balance of Swaps320.8283.6
Total Public Debt including Swaps43,083.644,346.543,936.047,105
Net effect of swaps108.531

25.4 Local government finance

Since November 1989 local authorities have undergone substantial change. The number of authorities has been reduced to 87 by amalgamations and boundary changes as well as absorption of ad hoc authorities (such as pest control boards) into district, city and regional councils.

There has been a separation of activities into regulatory type functions and those which are run along the lines of a normal business. To facilitate this, councils have set up business units which compete with outside businesses for council contracts. Previously, the work was normally done by council employees without going through the tendering process. The main activities undergoing this process are reading, works and maintenance and refuse collection. Financial information covering business units and the councils is shown in table 25.17 below.

In addition to business units, councils often have majority shareholdings in electrical supply companies as well as companies which operate ports, airports and bus transport. It is these activities that make up the substantial portion of the trading statistics in table 25.18.

Visiting the meerkats, a popular attraction at Auckland Zoo, which is principally funded by the city council.

Table 25.17. LOCAL AUTHORITY STATISTICS—NON TRADING*

Statistical itemReceipts and expenditure
1988–891989–901990–91

* Coverage: all activities of local authorities not classified as trading activities, e.g. local government administration, provision of water supply, roading, parks and reserves, town planning and regulation.

† Balance Dates: local authority annual reports were March year based in 1989 and 1990 and June year based in 1991. The transitional three months to June 1990 have not been reported in this table.

  $(million) 
Stocks—
     closing38.542.349.1
     opening35.836.245.3
Current receipts—
     rates1,264.71,365.61,444.3
     petroleum tax19.220.921.1
     licences, inspection and permit fees80.682.699.1
     sales of goods and services (including water rates)596.3603.4631.7
     grants, subsidies and levies534.9498.1472.6
     all other income207.7191.3250.3
               Total current receipts2,703.42,762.02,919.0
Operating expenditure—
     salaries and wages792.4863.0896.9
     other employment expenses45.150.666.8
     interest paid190.3224.6269.1
     indirect tax35.436.341.3
     purchases of goods and services1,078.81,177.61,170.6
     all other operating expenditure (including depreciation)343.8307.2427.1
               Total current expenditure2,485.82,659.22,871.7
               Balance of total income over total expenditure220.2108.8473
Fixed tangible assets—
     purchases during the year594.9544.1446.5
     sales during the year61457.857.4

Table 25.18. LOCAL AUTHORITY STATISTICS—TRADING*

Statistical itemReceipts and expenditure
1988–891989-901990–91

* Coverage: electric power and gas boards, harbour boards (including port companies where applicable), licensing trusts, plantation boards and trading divisions of territorial authorities and regional councils (electricity and gas supply, airports, transport, abattoirs, etc).

  $(million) 
Stocks—
     closing100.597.8112.6
     opening101.5106.2113.5
Income—
     sales of goods and services2,852.82,957.83,013.6
     direct government grants and subsidies38.947.5242
     all other income77.548.251.3
               Total sales and other income2,969.23,053.53,089.1
Operating expenditure—
     salaries and wages575.4525.7493.5
     depreciation on fixed assets134.5150.6154.0
     interest178.6131.7118.1
     indirect tax43.732.026.2
     purchases of goods and services1,853.12,010.92,057.8
     all other operating expenditure37.023.637.1
               Total operating expenditure2,822.42,874.52,886.8
               Net profit145.9170.6201.5
Fixed tangible assets—
     purchases during the year375.3R294.5312.7
     sales during the year59.5R84.329.7

Bicycles are the latest addition to Dunedin City Council's fleet of vehicles. A cost-saving measure, the bicycles are also a sensible idea in congested inner city traffic and help the city in its aspirations for a clean, green image.

Rates. The principal item of income for local authorities collected by way of a tax levied on landowners and based on the value of the land. Additional rates are sometimes levied for special projects which may be a fixed charge in addition to normal rates. Water rates are deemed to be a sale and as such are included under sales of goods and services.

Petroleum tax. A tax paid by oil companies to local authorities which is based on the quantity of petrol sold.

Licences, inspection and permit fees. Income related to local authority regulatory function and includes drivers licences, dog registration, building permits and public health inspection fees.

Sales of goods and services. Income received by the local authority for the provision of goods and services.

Grants, subsidies and levies. Income from central government, other local authorities and other organisations which is provided to reduce the cost of a service of the receiving authority. The major portion of this item is grants received from Transit New Zealand by local authorities for reading maintenance and construction.

Expenditure. The purchase of goods and services and labour costs are the major items of expenditure with the maintenance of the infrastructure being the biggest consumer of expense. Works and services that have been contracted outside the authority are included under purchases of goods and services.

There has been a change in the way that some authorities value their infrastructure and, as a consequence, a change in depreciation. Previously, an infrastructural asset (e.g. a road) would not have had a book value in the accounts and therefore no depreciation was claimed. Now authorities are obliged to value their assets, some are claiming depreciation which shows an increase on previous years.

Construction workers inspecting some of the 120 steel pipes for the $800,000 Earnscleugh irrigation scheme project, Otago.

Table 25.19. OPERATIONS OF THE LOCAL AUTHORITIES LOANS BOARD*

Year ended 31 MarchValue of total applicationsSanctioned
New worksRedemption loansExemption order notifications

* Includes hospital boards and Fire Service Commission.

  $(million) 
1,98764.564.5209.3
1,98852.452.4524.3
1,989106.9106.9521.0
1,9901.31.3487.0
1,99169.369.3416.7
1,99258.758.7579.0

Table 25.2. BORROWING BY TYPE OF LOCAL AUTHORITY

Local authorityYear ended 31 March
199019911992
  $(million) 
Municipalities211.3361.1434.4
Counties3.0
District councils53.081.5107.6
Regional councils52.0157.849.3
Electric power and gas boards66.969.2155.7
Area health boards111.1108.1160.7
Others8.45.2
               Total amount borrowed505.7777.7912.9

Table 25.21. SOURCE OF MONEY BORROWED

SourceYear ended 31 March
199019911992
  $(million) 
Housing Corporation8.53.14.5
Local Authority Funds13.611.09.3
National Provident Fund37.252.829.5
Registered banks, insurance and pension funds222.3544.9665.9
Other financial intermediaries96.152.690.4
Brokers, solicitors nominee companies, and other agents48.823.065.7
All other sources79.290.347.6
               Total amount borrowed505.7777.7912.9

Contributors

  • 25.1 Treasury; Department of Statistics.

  • 25.2 Inland Revenue Department; Customs Department; Ministry of Transport; Treasury; Department of Statistics.

  • 253 Treasury; Department of Statistics.

  • 25.4 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

Bowen Street Panorama, Wellington. Left to right Bowen House (temporary site of Parliament), Turnbull House, the Treasury, Reserve Bank and Ministry of Commerce.

26.1 Business statistics

A linked series of collections provide a comprehensive coverage of business in New Zealand. At regular intervals economic censuses are held, these cover all businesses within specified industry groups. 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 present census strategy is to cover all industries at regular intervals, but not all in the same year (as was done in 1987). In 1992 the censuses of distribution and mining and quarrying were conducted, while the next Census of Manufacturing is scheduled for the 1994/95 financial year.

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
1989199019911992

* New Zealand Standard Industrial Classification

112–113Agricultural services and hunting/trappingActivity units3 4493 2443 2753 330
 Persons engaged13 20413 20812 84613 203
12Forestry and loggingActivity units1 4301 3551 4333 407
 Persons engaged6 8765 8815 8197 084
13FishingActivity units1 9861 8831 8521 875
 Persons engaged4 6054 7044 6424 838
21Coal miningActivity units69757067
 Persons engaged1 032941947968
22Crude petroleum natural gasActivity units71697688
 Persons engaged741671800838
23–29Other mining and quarryingActivity units557556559535
 Persons engaged2 9342 6282 6772 751
3,111Slaughtering and meat processingActivity units321330338339
 Persons engaged30 84728 89126 55026 643
3,112Manufacture of dairy productsActivity units151144147144
 Persons engaged7 9837 8157 4747 448
3113–3122Manufacture of other foodsActivity units1 4141 4221 4461 535
 Persons engaged24 10622 83723 11223 182
313Beverage industriesActivity units154143155156
 Persons engaged3 2213 0553 1342 745
314Tobacco manufacturingActivity units7969
 Persons engaged743648611558
321Manufacture of textilesActivity units834817805824
 Persons engaged11 90711 99610 2059 751
322–324Manufacture of clothing and leather goods incl. footwearActivity units1 5321 4791 4911 496
 Persons engaged20 54719 67618 20916 853
33Manufacture of wood and wood productsActivity units3 0212 9803 0933 122
 Persons engaged22 34822 58421 72121 327
341Manufacture of paper and paper productsActivity units188172173170
 Persons engaged9 0888 5889 7299 010
342Printing and publishingActivity units1 3261 3341 3971 424
 Persons engaged18 40317 30117 38416 593
351Manufacture of industrial chemicalsActivity units207211200203
 Persons engaged4 7154 2024 2554 227
352Manufacture of other chemical productsActivity units352338338381
 Persons engaged6 3956 0445 7575 785
353Petroleum refineriesActivity units14161311
 Persons engaged883843811828
354Manufacture of petroleum and coal productsActivity units37343637
 Persons engaged886341324312
355Manufacture of rubber productsActivity units121123122128
 Persons engaged2 0502 2512 0371,800
356Manufacture of plastic productsActivity units452448456474
 Persons engaged7 3947 8817 2807 198
36Manufacture of non-metallic mineral productsActivity units905864851849
 Persons engaged7 9106 9356 3065 796
37Basic metal industriesActivity units198190187194
 Persons engaged6 5137 0806 6656 045
381Manufacture of products fabricated metalActivity units2 6692 5652 5802 627
 Persons engaged23 21122 15120 89519 254
382Manufacture of machineryActivity units2 9552 9062 9323 005
 Persons engaged17 83517 48316 47215 820
383Manufacture of electrical machineryActivity units675674679680
 Persons engaged10 86411 01910 3379 541
384Manufacture of transport equipmentActivity units1 1331 1031 0741 053
 Persons engaged17 70717 07114 64413 129
385Manufacture of professional equipmentActivity units10310310291
 Persons engaged1 2631 2681 008991
39Other manufacturing industriesActivity units838840906986
 Persons engaged3 8964 2204 0024 079
4Electricity gas and waterActivity units650647662593
 Persons engaged16 07113 65713 75912 396
51&53 Excl. 52Buildings and ancillary building servicesActivity units23 10222 49623 44723 811
 Persons engaged71 94867 33065 80860 320
52Other constructionActivity units2 7852 8953 0973 124
 Persons engaged20 05119 80618 31416 538
61Wholesale tradeActivity units12 35712 40613 37114 433
 Persons engaged81 29381 17681 80180 649
62Retail tradeActivity units31 02831 85931 77331 866
 Persons engaged141 253145 980141 079137 496
63Restaurants and hotelsActivity units9 51210 09410 69710 918
 Persons engaged55 62757 00155 90458 185
7,111Rail transportActivity units233233228206
 Persons engaged2 9612 8743 3972 648
7112–7113Road passenger transportActivity units2 5562 4032 5552 774
 Persons engaged10 3349 8339 5668 131
7,114Road freight transportActivity units5 2425 0355 1935 380
 Persons engaged17 57517 90717 85418 285
7115–7117, 719Services to transportActivity units2 0062 1062 2462 475
 Persons engaged11 16911 82012 39312 301
712Water transportActivity units282243269263
 Persons engaged8 3435 9456 6285 760
713Air transportActivity units455464470505
 Persons engaged9 77710 2229 9069 281
72CommunicationActivity units2 2332 1162 3582 521
 Persons engaged32 94929 55028 20525 823
811BankingActivity units1 6631 7611 8771 851
 Persons engaged27 73427 18326 89927 012
812–814 Excl. 81492Financial servicesActivity units5 0274 7124 7584 794
 Persons engaged12 10512 25511 77010 251
82 Excl. 82302InsuranceActivity units3 1223 0582 8404 167
 Persons engaged13 99113 905129 2512 713
83 Excl. 83113 83121/3Real estate and business servicesActivity units17 55518 57321 13623 321
 Persons engaged89 77091 97192 51893 443
91Government administrationActivity units3 2423 0893 6133 661
 Persons engaged80 49180 60881 20579 013
92Sanitary servicesActivity units2 1572 1342 2682 395
 Persons engaged12 40111 98912 43812 058
931 Excl. 93105Education servicesActivity units5 5955 6705 6666 335
 Persons engaged72 91876 77180 67881 569
932Research servicesActivity units199207218225
 Persons engaged4 4294 7045 1145 423
933–93401Medical and health servicesActivity units7 0087 2117 4807 883
 Persons engaged86 51683 62385 78886 075
94 Excl. 94402Recreation servicesActivity units4 2674 3994 9035 591
 Persons engaged18 89819 45420 04020 995
95Personal servicesActivity units7 8628 1248 3248 568
 Persons engaged27 15327 65727 22727 046
 TotalActivity units177 307178 362186 251196 900
  Persons engaged1 215 8641 203 4341 187 8691 162 008

Coal Corporation of New Zealand, Wellington.

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, 1992

Region*Agricultural services hunting forestry fishingMining and quarryingManufacturingElectricity gas and waterConstructionWholesale and retail trade restaurants and hotelsTransport storage and communicationBusiness and financial servicesCommunity social and personal servicesTotal

* At end of February.

     persons engaged    
Northland1 5691734 8674882 4977 9042 1172 5968 90631 117
Auckland2 22434379 5202 74923 31493 57831 31156 41183 628373 078
Waikato3 2621 32218 8691 7407 47622 1775 5769 21428 31397 949
Bay of Plenty2 5947910 9306134 44714 9124,0465 50515 25558 381
Gisborne796202 1791437782 7105611 0423 49511 724
Hawke's Bay1 4549310 1354882 5489 6802 3343 44610 95141 129
Taranaki6368167 4968352 4266 6791 6892 6367 52230 735
Manawatu1 9428312 5526724 78015 8643 65952 26525 31670 133
Wellington1 34424020 9161 6329 73535 35911 64831 28551 161163 320
North Island total15 8213 16916 74649 36058 001208 86362 941117 400234 547877 566
Tasman690471 9221486881 9464644261 4577 788
Nelson79062 959878873 3919831 3904 15014 643
Marlborough921652 3861078332 5376707763 27311 568
West Coast5916111 5851626782 5157385712 71010 161
Canterbury2 69815033 4891 4149 31335 53711 03415 32040 933149 888
Otago1 73928910 5037144 63213 9663 5115 15717 60358 114
Southland1 7692178 5543991 8177 5541 8722 3737 46232 017
South Island total9 1981 38561 3983 03118 84867 44619 27226 01377 588284 179
Extra county islands and shipping106353592116644263
New Zealand total25 1254 557288 91512 39676 858276 33082 229143 419312 1791 162 008

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.

Breakfast conference of Auckland business people listening to Prime Ministerial address.

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 1988 to 1992, while some detailed breakdowns of the main aggregates are included for the years ended March 1987 to 1991.

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
19881989199019911992
   $(million)  
Gross domestic product61,86766,40371,50573,34373,213
     Plus, net factor receipts from rest of world−3,206−3,229−4,260−3,809−3,513
Gross national product58,66163,17467,24569,53469,700
     Less, consumption of fixed capital5,0515,5406,0336,4906,861
National income at market prices53,61057,63461,21263,04462,839
     Plus, net current transfers from rest of world289340390336356
National disposable income53,89957,97461,60263,38063,195

Table 26.4. NATIONAL ACCOUNTS: 1962–1992

Year ended MarchGrossNational ProductGrossDomestic ProductNationalIncomeGDP at 1982/83 prices
***

* Excludes stock valuation adjustment.

† Includes stock valuation adjustment.

   $NZ (millions)   
1,9622,857..2,872..2,626..17,068
1,9633,096..3,114..2,847..17,592
1,9643,377..3,397..3,112..18,664
1,9653,699..3,721..3,412..19,805
1,9663,981..4,012..3,664..21,011
1,9674,148..4,190..3,775..21,807
1,9684,328..4,375..3,938..21,620
1,9694,610..4,642..4,184..22,081
1,9705,092..5,133..4,626..23,196
1,9715,791..5,832..5,268..24,055
1,9726,834..6,880..6,285..24,666
1,9737,846..7,900..7,236..25,759
1,9749,162..9,199..8,473..27,608
1,97510,049..10,131..9,250..28,720
1,97611,579..11,744..10,636..29,204
1,97713,936..14,201..12,859..29,246
1,97815.214R14,66115,55114,99714,04713,49328,782
1,979..16,563..16,972..15,26428,841
1,980..19,337..19,797..17,86829,577
1,981..22,578..23,089..20,89429,895
1,982..27,276..27,991..25,45431,354
1,983..30,678..31,536..28,44131,536
1,984..33,621..34,896..30,96032,390
1,985..37,526..39,528..34,34433,994
1,986..42,915..45,435..39,20334,302
1,987..52,321..55,088..47,98535,180
1,988..58,661..61,867..53,61035,440
1,989..63,174..66,403..57,63335,044
1,990..67,245..71,505..61,21235,488
1,991..69,534..73,343..63,04435,348
1,992..69,700..73,213..62,83934,756

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’ (when adjusted for net capital transfers) records New Zealand's net borrowing from the rest of the world.

Table 26.5. GROSS DOMESTIC PRODUCT AND EXPENDITURE

ItemYear ended March
1987–881988–491989–901990–911991–92
     $(million)  
Compensation of employees30,25832,00432,73333,18032,705
Operating surplus17,94019,73722,05722,88523,175
Consumption of fixed capital5,0515,5406,0336,4906,861
Indirect taxes8,9349,29710,88310,98210,644
Less, subsidies316175202194172
Gross domestic product61,86766,40371,50573,34373,213
Final consumption expenditure—
     General government10,12811,05211,75912,29512,138
     Private37,22540,73343,87646,25046,960
Value of physical increase in stocks2813962,0361,025313
Gross fixed capital formation13,26312,89014,68114,45012,042
Statistical discrepancy274−592−338−267397
Gross national expenditure61,17264,48072,01373,75371,850
Exports of goods and services16,66318,06419,16220,08621,470
Less, imports of goods and services15,96816,14119,67020,49620,108
Expenditure on gross domestic product61,86766,40371,50573,34373,213

Table 26.6. NATIONAL INCOME AND OUTLAY

ItemYear ended March
1987–881988–891989–901990–911991–92
   $(million)  
Final consumption expenditure—
     Government–Central8,9879,75310,37110,79110,642
     Government—Local1,1411,3001,3881,5041,495
     Private—Households36,69740,15643,24645,56246,222
     Private—Non-profit organisations serving households528576630688739
Savings6,5466,1885,9674,8354,097
Appropriation of national disposable income53,89957,97361,60263,38063,195
Compensation of employees30,25832,00432,73333,18032,705
Compensation of employees from the rest of the world, net
Operating surplus17,94019,73722,05722,88523,175
Property and entrepreneurial income from the rest of the world, net−3,206−3,229−4,260−3,809−3,513
Indirect taxes8,9349,29710,88310,98210,644
Less, subsidies316175202194172
National income53,61057,63361,21263,04462,839
Current transfers from the rest of the world, net289340390336356
National disposable income53,89957,97361,60263,38063,195

Table 26.7. CAPITAL FINANCE

ItemYear ended March
1987–881988–891989–901990–911991–92

* Includes all government-owned producer enterprises.

   $(million)  
Value of physical increase in stocks2813962,0361,025313
Gross fixed capital formation—
     Private10,0119,63411,32810,8959,634
     Central Government*2,5402,3422,5022,7961,631
     Local government*713914850760777
Purchase of intangible assets from the rest of the world, net
Net lending to the rest of the world−2,232−836−3,909−3,173−919
Gross accumulation11,31212,45112,80812,30211,437
Savings6,5466,1885,9674,8354,097
Consumption of fixed capital5,0515,5406,0336,4906,861
Capital transfers from the rest of the world, net−10130469710876
Statistical discrepancy−274592338267−397
Finance of gross accumulation11,31212,45112,80812,30211,437

Table 26.8. EXTERNAL TRANSACTIONS

ItemYear ended March
1987–881988–891989–901990–911991–92
   $(million)  
Current
Exports of goods12,75213,99315,03115,82917,013
Exports of services3,9114,0714,1314,2564,458
Compensation of employees from the rest of the world
Property and entrepreneurial income from the rest of the world789610113347328
Other current transfers from the rest of the world8098299911,0801,139
Current receipts18,26119,50320,27121,51522,937
Imports of goods11,97611,58314,87115,23814,518
Imports of services3,9924,5584,7995,2585,590
Compensation of employees to the rest of the world
Property and entrepreneurial income to the rest of the world3,9953,8394,3724,1563,841
Other current transfers to the rest of the world520489606746783
Surplus of nation on current transactions−2,222−966−4,378−3,883−1,795
Current disbursements18,26119,50320,27121,51522,937
Capital
Surplus of nation on current transactions−2,222−966−4,378−3,883−1,795
Capital transfers from the rest of the world, net−10130469710876
Capital receipts−2,232−836−3,909−3,173−919
Purchase of intangible assets from the rest of the world, net
Net lending to the rest of the world−2,232−836−3,909−3,173−919
Capital disbursements−2,232−836−3,909−3,173−919

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 commodities that are supplied and used by different units within the economy. 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 processing 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. Using the commodity relationships, 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, imports 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 1990–91 is not yet available.

NZ Railways Ltd, Wellington.

Land Corporation, Wellington.

Table 26.9. CONTRIBUTION TO GDP BY PRODUCTION GROUP

Production groupYear ended March
1986–871987–881988–891989–901990–91
   $(million)  
Market production groups—
Agriculture3,0463,5153,8774,2803,559
Fishing and hunting223223240213214
Forestry and logging1,0901,2451,4421,5381,607
Mining and quarrying6076717478911,042
Manufacture of food, beverages, and tobacco2,9763,3223,8234,0804,321
Textiles, apparel, and leather1,031850814886931
Manufacture of wood products689663761822759
Manufacture of paper products, and printing1,4311,6951,6841,8411,921
Manufacture of chemicals, petroleum, rubber, plastic1,3701,3561,4281,5751,579
Manufacture of non-metallic mineral products417409388378341
Basic metal industries405380341485420
Manufacture of fabricated metal products2,6832,7372,5492,6732,416
Other manufacturing1249781103102
Electricity, gas, and water1,7101,7532,0042,1012,081
Construction2,9453,2483,2313,2543,097
Trade, restaurants, and hotels10,2479,85510,42911,12711,943
Transport and storage2,7863,1253,3863,5223,605
Communication1,5832,0742,1502,1662,321
Financing, insurance, real estate, and business services7,5809,28210,16110,92511,090
Ownership of owner-occupied dwellings3,4424,0694,9205,2935,930
Community, social, and personal services1,9072,0762,3102,3592,379
Nominal industry (bank service charge)−2,198−2,772−2,866−3,194−2,960
            Total, market production groups46,09649,87453,90157,32058,701
Non-market production groups—
Central government services5,7756,5707,1707,6817,762
Local government services591625720777851
Private non-profit services384440495539594
Domestic services of households3548676872
            Total, non-market production groups6,7867,6838,4519,0649,279
            Total all production groups52,88257,55862,35266,38467,980
Plus, GST on production1,4673,2503,4544,4114,737
Plus, import duties570847507629556
Plus, other indirect taxes169211898269
Gross domestic product55,08861,86766,40371,50573,343

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 26.10 and 26.11 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 water542583590565597
Construction192219232219203
Trade, restaurants, and hotels1,3711,2811,5781,4561,880
Transport and storage1,131811861447833
Communication444596482633764
Financing, insurance, real estate and business services1,6572,1803,1453,2463,000
Ownership of owner-occupied dwellings1,8502,1992,5592,5883,045
Community, social, and personal services288308408303410
            Total, market production groups10,62810,90312,08111,49113,109
Non-market production groups—
Central government services695772701813946
Local government services314315338422441
Private non-profit services102118143164185
Domestic services of households
            Total, non-market production groups1,1121,2051,1821,4001,572
            Total all production groups11,74012,10813,26312,89014,681

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)   
1,9882,7542,9481,1271271,7364,57013,263
1,9892,8332,9151,2541621,0644,66212,890
1,9903,3452,6521,3901851,8045,30414,681
1,9913,4582,3521,4501671,5315,49314,450
1,9922,9411,6181,5371871,2274,53212,042

Increase in stocks. Table 26.12 shows the value of the physical increase in stocks of raw materials, work-in-progress, and finished goods by production group. This excludes the 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
1987–881988–891989–901990–911991–92

* Includes reclassification of units from “food beverages and tobacco” to “trade, restaurants and hotels”.

† For 1991–92 all local government stocks are included in local government services.

   $(million)  
Market production groups—
Agriculture1473222460164
Fishing and hunting
Forestry and logging9361,0921,0841,118982
Mining and quarrying−189−95
Manufacture of food, beverages, and tobacco*−12079−24205−107
Textiles, apparel, and leather−35−449−12−29
Manufacture of wood products−11−33−2658−19
Manufacture of paper products, and printing6−33−1532−48
Manufacture of chemicals, petroleum, rubber, and plastic−52−126104−26−68
Manufacture of non-metallic mineral products30−29−13−16−1
Basic metal industries112911−53−5
Manufacture of fabricated metal products13−30389−60−178
Other manufacturing4−16−4−5−4
Electricity, gas, and water−30−1810−219
Construction13−449
Trade, restaurants, and hotels*−640−198598−276−390
Transport and storage−3−1013−18
Communication45−13−27−8−41
Financing, insurance, real estate, and business services
Ownership of owner-occupied dwellings43
Community, social, personal services−141820615
            Total, market production groups2823932,0351,020263
Non-market production groups—
Central government services−2346
Local government services111144
Private non-profit services
Domestic services of households
            Total all production groups2813962,0361,025313

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
1986–871987–881988–891989–901990–911991–92

* 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
     Food3,9324,5614,8465,2765,6465,730
     Beverages*1,0881,1441,2571,3751,6481,593
Clothing and footwear2,2392,3832,2552,4072,3712,401
Housing
     Imputed rent of owner-occupied dwellings4,3805,1736,2406,7827,3757,603
     Rental payments and associated costs1,1141,2871,5101,6101,6901,722
Household goods and services
     Fuel and power7168389231,0111,0871,176
     Furniture, floor coverings and appliances1,3721,4221,3771,4271,3541,345
     Textiles and tableware606647655688684696
     Other goods and services7618809881,0201,0931,189
Health services1,7282,1002,3902,5912,9363,132
Transport
     Cars, motorcycles and vehicles1,8542,0442,0162,2852,0721,923
     Vehicle operation2,4962,7773,1523,3613,4413,395
     Public transport1,1121,3101,4381,5031,6651,717
Recreation*2,6733,0093,2853,4753,5843,658
Hotels and restaurants*2,8593,2323,2203,3783,3693,484
Other goods and services
     Tobacco6878699311,0861,1631,164
     Personal1,1061,2551,3641,4521,5551,643
     Post and telephone518656732913939963
     Other services1,1331,3311,4551,5691,7101,535
     Total expenditure by households in New Zealand32,37436,91740,03443,20945,38246,069
Less, Non-resident households' expenditure in New Zealand. Plus, resident households' expenditure overseas−266−22012237180153
     Final consumption expenditure of resident households32,10836,69740,15643,24645,56246,222

Table 26.14. (B) BY TYPE

 Year ended 31 March
1986–871987–881988–891989–901990–911991–92

* 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)  
Total non-durables9,11510,47211,23612,37113,43813,657
Total durables9,1269,8459,98810,67310,50710,485
Total services14,13316,60018,81020,16421,43721,928
     Total expenditure by households in New Zealand32,37436,91740,03443,20945,38246,069
Less, Non-resident households' expenditure in New Zealand. Plus, resident households' expenditure overseas−266−22012237180153
     Final consumption expenditure of resident households32,10836,69740,15643,24645,56246,222

Gross domestic product and expenditure at constant prices

Gross domestic product (GDP) and expenditure on GDP at constant prices is calculated by removing the effects of price changes from the current price production accounts and expenditure aggregates respectively.

Table 26.14 contains production-based GDP statistics. That is, estimates of value added for each industry are expresed in the average prices of the base year and are summed to give total GDP. In most cases, the estimates of constant price value added are prepared by extrapolating base year value added by indicator series representing the quantities of output produced.

NZ Post, Wellington.

The series of expenditure on GDP in constant prices is an alternative measure of economic activity within New Zealand. Conceptually, both the production and expenditure-based GDP series are the same. However, as each series uses independent data and estimation techniques, some differences between the alternative measures do arise. Expenditure on GDP statistics are shown in table 26.15 and 26.16.

The constant price series are valued at 1982–83 prices.

Table 26.14. INDEXES OF GROSS DOMESTIC PRODUCT AT CONSTANT PRICES*

March yearAgricultureFishing, hunting, forestry, miningManufacturingElectricity, gas & waterConstructionTrade, restaurants, ants, hotelsOwner occupied dwellingsTransport, communicationsGeneral government servicesGDP

* Quarterly indexes are shown as annual equivalents. Base: 1982–83 (= 100.00), Stock valuation adjustment is included (Includes business and personal services.

† Includes business and personal services.

‡ Calculated as the average of the four quarterly indexes.

 Actual
1,9849493103111108103102108101102.9
1,98592106114112112105104116100108.0
1,986115129109115115101106121100109.2
1,987122130111118111104109128100112.0
1,98814112410611911610211113399112.6
1,98912814410312310310011313697111.1
1,99012215910511710310111514095112.6
1,9911261571001209610011814094111.1
1992128170971197410012014295109.8
 Actual
Quarterly
1990 Mar138173101110969911613988111.2
Jun8112210211710510011713997108.5
Sep10913697133999811714094109.4
Dec17319610311810210511814294117.8
1991 Mar14117396111789511913991108.5
Jun8213792116789611914098104.4
Sep11115293123749712014197107.1
Dec1732121021237810612014496117.4
1992 Mar14618099115679812014388110.5
Jun851381011057710112114595108.0
 Seasonally adjusted
1990 Mar12216110311610410411613997113.2
Jun12415910211710310211714097112.8
Sep1251551011239810011714197112.4
Dec128148981209710011814098111.3
1991 Mar126164971178699119140100110.3
Jun125174921177698119141100108.9
Sep128173971147410012014299110.3
Dec128164971257310112014299110.7
1992 Mar1291751011217310212014498112.4
Jun1281801011077510312114698112.9

Gross domestic product at constant prices. The production based gross domestic product at constant prices series was developed from 1977–78, replacing the previously published Index of Real GDP. Historical statistics linking the two series have been calculated and are available from 1954–55. The quarterly series is only available from the June quarter 1977.

Both actual and seasonally adjusted indexes of GDP at constant prices by industry group are shown in table 26.14. The seasonal adjustment process removes the effect of regular seasonal events, e.g., the increase in consumer spending in the December quarter due to Christmas.

Actual and seasonally adjusted quarterly indexes of GDP at constant prices are shown in the graph below.

INDEX OF GDP

At constant prices

Expenditure on gross domestic product at constant prices. The expenditure on GDP series show how the goods and services produced each year are ultimately disposed; whether they are consumed, accumulated or exported. By expressing these series in constant prices, comparisons over time of both the size and composition of the final demand categories can be made.

The series is available from the June 1982 quarter onwards.

Table 26.15. EXPENDITURE ON GROSS DOMESTIC PRODUCT AT CONSTANT PRICES*

 Final consumption expenditureIncrease in stocksGross fixed capital formationGross National ExpenditureExports of goods and servicesLess imports of goods and servicesExpenditure on GDPIndex of expenditure on GDPIndex of production based GDP
PrivateGeneral government

* 1982–83 Prices; year ending 31 March 1983.

March yearActual
 $(million)
1,98520,4945,8169438,65035,90410,45411,43934,918109,9108.0
1,98620,7295,905−929,20135,74210,56911,75034,561108.8109.2
1,98721,4516,0165258,70336,69511,06312,12735,632112.2112.0
1,98821,9346,073−729,27237,20611,62113,57535,252111.0112.6
1,98922,2636,028−1689,14537,26911,84413,46435,649112.2111.1
1,99022,4756,03578710,08939,38711,45415,45335,388111.4112.6
1,99122,2746,1066389,95038,96712,45915,97235,455111.6111.1
1,99222,3236,018258,34136,70713,10914,81834,998110.2109.8
Quarterly
1986 Sep5,7121,529−3042,3859,3222,9303,1289,123114.9113.3
Dec5,3831,5037122,1269,7232,7202,9689,476119.3116.8
1987 Mar4,9971,4854182,0728,9722,6003,0388,534107.5110.5
Jun5,4631,450−4982,2688,6833,0013,3478,336105.0108.1
Sep5,4831,512−2892,4549,1612,8363,4868,511107.2111.4
Dec5,8011,5414012,34310,0872,8393,6099,317117.3119.2
1988 Mar5,1861,5703142,2069,2762,9453,1329,089114.5111.6
Jun5,5491,476−9042,2598,3803,0143,2668,127102.3106.9
Sep5,6241,519−462,3149,4112,9233,4748,861111.6109.5
Dec5,8291,5383582,38710,1122,9713,4369,648121.5117.6
1989 Mar5,2611,4954252,1859,3652,9363,2879,014113.5110.4
Jun5,8471,529−2552,4789,5993,1373,6869,051114.0109.5
Sep5,5551,521−3702,4909,1962,6344,0687,76297.7110.4
Dec5,8271,5409452,78011,0922,7434,1799,656121.6119.3
1990 Mar5,2471,4464662,3419,4992,9403,5218,918112.3111.2
Jun5,6021,696−3942,5139,4173,2743,9028,789110.7108.5
Sep5,5641,484−62,5789,6203,0074,4148,213103.4109.4
Dec5,8971,5176222,68510,7213,0384,0339,726122.5117.8
1991 Mar5,2111,4094162,1749,2103,1403,6248,727109.9108.5
Jun5,5331,663−5752,0108,6313,4223,5858,469106.6104.4
Sep5,5391,458−5432,1128,5673,2443,8757,93699.9107.1
Dec5,9151,4926622,18610,2563,3083,7929,772123.1117.4
1992 Mar5,3361,4054802,0329,2533,1353,5668,821111.1110.5
Jun5,6121,597−2232,1379,1223,5293,8038,848111.4108.0

Table 26.16. EXPENDITURE ON GROSS DOMESTIC PRODUCT AT CONSTANT PRICES*

 Final consumption expenditureIncrease in stocksGross fixed capital formationGross National ExpenditureExports of goods and servicesLess imports of goods and servicesExpenditure on GDP
PrivateGeneral government

* 1982–83 prices; year ended 31 March 1983.

Quarter    Seasonally adjusted  
     $(million)   
1986 Dec5,1181,4942712,1209,0032,8182,9788,843
1987 Mar5,3201,4641702,1559,1102,6093,1968,523
Jun5,4021,496−702,2669,0932,8853,3248,654
Sep5,4701,502−152,3799,3362,8963,3048,927
Dec5,5281,537−592,3339,3392,8873,6148,612
1988 Mar5,5371,539632,2969,4352,9573,3289,064
Jun5,4791,516−4722,2518,7752,8823,2488,408
Sep5,6101,5082412,2599,6182,9963,2589,357
Dec5,5551,527−1212,3809,3403,0703,4418,969
1989 Mar5,5951,4771882,2599,5202,9793,4969,003
Jun5,7911,4991812,4659,9362,9643,6839,217
Sep5,5511,510−752,4459,4312,6753,8668,241
Dec5,5561,4844502,76310,2532,8134,1718,895
1990 Mar5,5711,5442212,4149,7502,9883,7269,011
Jun5,5401,594472,4919,6733,1303,9008,903
Sep5,5681,5193062,5419,9343,0944,1928,837
Dec5,6131,4661222,6689,8693,1554,0288,995
1991 Mar5,5411,5291622,2569,4883,2223,8368,874
Jun5,5051,549−1791,9818,8563,2583,6018,513
Sep5,5561,494−1142,0649,0013,3613,6728,690
Dec5,6161,471632,1409,2903,3953,7818,904
1992 Mar5,6591,4911382,0969,3843,2183,8048,797
Jun5,5901,5152612,1249,4893,2463,7988,938

26.3 Balance of payments and overseas debt

New Zealand's balance of payments statement is a record showing, 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.

Like most countries, New Zealand's balance of payments statistics are based on principles recommended in the fourth edition of the International Monetary Fund (IMF)'s Balance of Payments Manual. This is adapted to suit circumstances in the New Zealand economy. A revised edition of the manual is scheduled for completion in 1993.

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. The term “New Zealand resident” includes both individuals who permanently reside or intend to stay in New Zealand for a continuous period of one year or more and all corporate bodies located here, but not their overseas located branches or subsidiaries.

  • Transactions are recorded at the time ownership changes or in the case of services when the service is performed.

  • Transactions are recorded at their market value. Foreign currency transactions are converted to New Zealand dollars at the market exchange rate at the time of each transaction.

Balance of payments statement

Details of New Zealand's annual balance of payments for the financial years ended March 1990 and March 1991 are shown in the following tables.

New Zealand's economy is small and dependent on foreign trade. Historically its balance of payments has been characterised by a fluctuating merchandise trade balance and a continuous deficit on invisibles.

Over the last three years, the value of merchandise exports averaged 20 percent of gross domestic product (GDP) and accounted for 69 percent of total current account receipts. The value of merchandise imports averaged 17 percent of GDP and accounted for 54 percent of the total current account payments. New Zealand's continuous deficit on invisibles is a reflection of the cost of servicing our overseas debt and the expenditure on services provided by foreigners. In the year to March 1991 New Zealand spent $2.7 billion more in servicing its debt and meeting foreign investment in New Zealand commitments, than it earned from its investments in foreign companies and financial assets.

Table 26.17. ANNUAL BALANCE OF PAYMENTS STATISTICS* (A) SUMMARY OF MAJOR COMPONENTS

Item1989–901990–91
Credit DebitCredit Debit

* These tables are on accrual basis. They are prepared in general accordance with principles laid down by the International Monetary Fund.

† Data may not add to stated totals due to rounding.

‡ A credit shows net increase in liabilities and a debit shows net increase in assets.

   $(million)  
Exports/imports (f.o.b)14,892 13,54315,637 13,920
Balance on merchandise trade 1,350  1,716 
Exports/imports of services4,048 5,9034,222 6,352
Balance on services −1,855  −2,130 
International investment income1,140 4,0711,046 3,768
Transfers1,698 8382,008 961
Balance on invisibles −3,926  −3,805 
Balance on current account −2,576  −2,088 
Direct investment2,824 3,9612,976 912
Portfolio investment158 89476 113
Other capital4,310 −4493,618 489
Reserve assets  1,392  917
Net errors and omissions278  −2,550  
Net apparent capital inflow3,969 ...3,006 ...

Table 26.19. (B) MAJOR COMPONENTS OF BALANCE OF PAYMENTS

Item1989–901990–91
CreditDebitCreditDebit

* These tables are on accrual basis. They are prepared in general accordance with principles laid down by the International Monetary Fund.

† Data may not add to stated totals due to rounding.

‡ A credit shows net increase in liabilities and a debit shows net increase in assets.

 $(million)
Merchandise Trade
     Overseas trade—exports and imports15,05615,32615,91015,755
     BOP conceptual adjustments−164−1,783−274−1,834
     Exports/imports (f.o.b)14,89213,54315,63713,920
Services
     Transportation1,6082,1641,8102,245
     Travel1,7282,1241,7132,282
     Insurance12105−14159
     Other services6231,3845721,546
     Government current transactions78126142121
     Exports/imports of services4,0485,9034,2226,352
Investment income
     Direct investment income298608361101
     Other investment income5091,5482091,555
     Official investment income3341,9154762,112
     International investment income1,1404,0711,0463,768
Transfers
     Government transfers112142108180
     Personal remittances885464975566
     Migrants' transfers—cash380231492215
     Migrants' transfers—non-cash321 432 
     Transfers1 6988382,008961
Portfolio investment
Assets
     Increasing...146...130
     Decreasing57...17...
     Net increase in assets*...89...113
Liabilities
     Increasing614...1,231...
     Decreasing...456...755
     Net increase in liabilities158...476...
     Portfolio investment15889476113
Other capital
Long term capital—
Official sector—Government
     Increasing liabilities2,985...933...
     Decreasing liabilities...1,991...1,175
Official sector—Reserve Bank: IMF
     Increasing liabilities......
     Decreasing liabilities......
Official sector—Reserve Bank: other
     Increasing liabilities......
     Decreasing liabilities...95...
Other sectors
     Increasing assets...553...535
     Decreasing assets188...52...
     Increasing liabilities3,571...3,277...
     Decreasing liabilities...3,349...4,114
Short term capital—
Official sector—Government
     Net increase in liabilities442...−56...
Official sector—Reserve Bank
     Net increase in liabilities−60...916...
Other sectors—deposit money banks
     Net increase in assets...−41...133
     Net increase in liabilities−127...−57...
Other sectors—other
     Net increase in assets...−773...−127
     Net increase in liabilities2,934...3,894...
     Net increase in assets...-449...489
     Net increase in liabilities4,310 3,618 
Reserves
Monetary gold
     Total change in holdings...−14...
     Counterpart to mon/demon......
     Counterpart to valn changes...1...
     Change due to transactions...−13...
Special drawing rights
     Total change in holdings......
     Counterpart to alloc/cancel......
     Counterpart to valn changes......
     Change due to transactions......
Reserve position at the IMF
     Total change in holdings...82...5
     Counterpart to valn changes...4...
     Change due to transactions...78...5
Reserve Bank overseas reserves
     Total change in holdings...2,218...−116
     Counterpart to valn changes...172...−74
     Change due to transactions...2,046...−42
Treasury overseas reserves
     Total change in holdings...−708...1,105
     Counterpart to valn changes...12...151
     Change due to transactions...−719...954
Summary of reserve transactions
     Total change in holdings...1,579...994
     Counterpart to valn changes...187...77
     Change due to transactions...1,392...917
Total reserves at 31 March...5,612...6,608

Foreign exchange rates displayed on electronic keyboard.

Table 26.18. FOREIGN DIRECT INVESTMENT IN NEW ZEALAND BY REGION*

 Form of investment changeTotal investment change
Equity capitalUnremitted earningsOther long-term capital§Short-term capital

* 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)
1989–90
United Kingdom1,189−526721735
Other EC26−624−2716
Australia1,3504−156391,237
United States326949148297
Canada−3−20−3−26
Japan332435379
Other OECD1825−1133
Asia-Oceania3111241−74110
Central and South
     America-Caribbean−632329
Other countries−111313
     Total 1989–902,97030163922,824
1990–91
United Kingdom−131−39324−70−570
Other EC7613949147
Australia−6121669−382−909
United States30−1203,973−1413,742
Canada16−266−6−10
Japan94−7−12883
Other OECD−10−31648
Asia-Oceania12013271165488
Central and South
     America–Caribbean−1−1
Other countries−1−1−2
     Total 1990–91-417-3884,156-3752,976

Table 26.19. NEW ZEALAND DIRECT INVESTMENT OVERSEAS BY REGION*

 Form of investment changeTotal investment change
Equity capitalUnremitted earningsOther long-term capital§Short-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 shares 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.

1989–90NZ$(million)
United Kingdom96−75−302−361
Other EC2671−761−88
Australia1,3511201,6762553,402
United States42108−7637
Canada16823045408
Japan171716
Asia-Oceania−105638156689
Central and South America–Caribbean96−27029−146
Other countries113
            Total 1989–901,5231,0282,196-7863,961
1990–91
United Kingdom117−60−1216272
Other EC91,1183661,494
Australia904459−1,78699−324
United States1−28−12−368−408
Canada−51542151
Japan245
Asia-Oceania63857−566140268
Central and South America–Caribbean−35105−605−11−546
Other countries1
            Total 1990–911,620699-1,852447912

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 debit 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. A balancing item is therefore 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 their major types 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 the major types of 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 major types of 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's liabilities. The claims and liabilities are classified by type and by institutional sector 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 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 11 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 Community (EC) 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 include 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.

For conceptual reasons, two types of liabilities have been excluded from the statistics of overseas debt. These are:

  • Equity capital.

  • 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.

Two other particular types of liability do fall within the conceptual definition, but they have not been included in the debt statistics for data availability reasons. These are:

  • Investment in domestically issued bonds and stock by non-resident organisations and individuals directly or through New Zealand organisations acting as their nominee or agent.

  • 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—September20,86718,61011,39950,876
            December22,42718,79110,84852,067
1990—March22,82620,04110,19353,059
            June24,08120,9498,96253,991
            September26,60720,6089,95057,166
            December30,32721,10710,98462,417
1991—March32,49420,1988,76161,453
            June32,39920,1237,91360,434
            September31,58320,7277,73560,045
            December34,31421,2657,78863,367
1992—March35,18020,0367,04762,263

Table 26.21. ALL-TERM OVERSEAS DEBT BY LIABILITY TERM

 Sep-91Dec-91Mar-92

* This category also includes the known liabilities of organisations in receivership, liquidation and statutory management, unless the liabilities have been restructured.

† Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

 $NZ(million)
Current liability*16,46719,09318,916
Current portion of long-term liabilities4,6694,0295,145
Long-term liabilities37,36738,61036,683
Unallocated estimate1, 5411,6351,519
     Total60,04563,36762,263

Table 26.22. ALL-TERM DEBT BY CURRENCY OF DENOMINATION

 Sep-91Dec-91Mar-92

* Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

 $NZ(million)
US Dollars23,89124,21124,305
NZ Dollars13,73916,25215,327
Japanese Yen9,2579,1307,957
Pounds Sterling2,1812,3253,754
Australian Dollars2,9813,0033,131
Swiss Francs1,8082,0111,786
Deutschemarks1,6721,6161,468
Other currencies2,9753,1843,016
Unallocated estimate*1,5411,6351,519
     Total60,04563,36762,263

Electricorp, Wellington.

Table 26.23. ALL-TERM OVERSEAS DEBT BY TYPE OF LIABILITY

 Sep-91Dec-91Mar-92

* Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

 $NZ(million)
Loans26,70328,38527,391
Bonds18,98619,07918,980
Deposits8,26610,0029,773
Bills3,6753,1523,395
Accounts payable8731,1131,205
Unallocated estimate*1,5411,351,519
     Total60,04563,36762,263

Table 26.24. ALL-TERM OVERSEAS DEBT BY MATURITY PROFILE

 Sep-91Dec-91Mar-92

* This category also includes the known liabilities of organisations in receivership, liquidation and statutory management, unless the liabilities have been restructured.

Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

 $NZ(million)
At call*3,9063,4564,293
2–89 days12,15413,17112,841
90–179 days3,1053,5973,722
6 months and under 1 year1,9722,8983,195
1 year and under 2 years6,1427,8886,745
2–5 years12,68811,87511,129
Over 5 years18,53718,84618,820
Unallocated estimate1,5411,5351,519
     Total60,04563,36762,263

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

  • 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 (various years).

New Zealand System of National Accounts, Concepts and Design. Department of Statistics. 1983.

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

Balance of Payments, Concepts, Sources and Methods 1991. Department of Statistics, 1992.

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).

Metric to ImperialMetric multiples
Length
    1 millimetre (mm)= 0.04 inches (in.)1 centimetre (cm)= 10 millimetres (mm)
    1 centimetre (cm)= 0.39 inches (in.)1 metre (m)= 100 centimetres (cm)
    1 metre (m)= 39.37 inches (in.)1 kilometre (km)= 1 000 metres (m)
 = 1.09 yards (yds)  
    1 kilometre (km)= 0.62 miles  
Area
    1 square metre (m2)= 10.76 square feet (sq. ft)1 hectare (ha)= 10 000 square metres (m2)
 = 1.20 square yards (sq. yd)1 square kilometre (km2)= 100 hectares (ha)
    1 hectare (ha)= 2.47 acres  
    1 square kilometre (km2)= 247 acres  
 = 0.39 square miles  
Volume and capacity
    1 cubic centimetre (cm3)= 0.06 cubic inches (cu. in.)1 cubic metre (m3)= 10 000 000 cubic centimetres (cc)
    1 cubic metre (m3)= 35.31 cubic feet (cu. ft)1 litre (1)= 1 000 millilitres (ml)
 = 1.31 cubic yards (cu. yd)1 millilitre (ml)= 1 cubic centimetre (cc)
    1 litre (l)= 1.76 pints1 cubic metre (cm3)= 1 000 litres (l)
 = 0.22 gallons  
Mass (weight)
    1 gram (g)= 0.04 ounces (oz)  
    1 kilogram (kg)= 2.20 pounds (lb)1 kilogram (kg)= 1 000 grams (g)
    1 tonne (t)= 2 204.62 pounds (lb)1 tonne (t)= 1 000 kilograms (kg)
 = 0.98 tons  
Velocity
    1 kilometre per hour (km/h)= 0.62 miles per hour (mph)  
Pressure
    1 kilopascal (kPa)= 0.15 pounds per square inch (psi)1 megapascal (MPa)= 1 000 kilopascals (kPa)
    1 megapascal (MPa)= 0.06 tons per square inch (tons psi)  
Temperature
    Degrees Fahrenheit (°F)  
    Degrees Celsius (°C)  
Energy
    1 kilojoule (kJ)= 0.95 British thermal units (Btu)1 megajoule (MJ)= 1 000 kilojoules (kJ)
 = 0.24 calories (cal)1 kilowatt hour (kWh)= 3.6 megajoules (MJ)
  1 gigajoule (GJ)= 1 000 megajoules (MJ)
  1 terajoule (TJ)= 1 000 gigajoules (W)
  1 petajoule (PJ)= 1 million gigajoules (GJ)
Power
    1 kilowatt (kW)= 1.34 UK horsepower1 kilowatt (kW)= 1 000 watts
  1 megawatt (MW)= 1 000 kilowatts (kW)
  1 gigawatt (GW)= 1 000 megawatts (MW)

Glossary of statistical terms

Statistical terms defined here are those frequently used in censuses of population and businesses, and other data and index series referred to in this book.

Accounts payable.

Non-marketable liabilities arising from deferred payment for imported goods and services (i.e. trade credit), overdue interest and the acquisition of financial assets.

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.

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 of payments conceptual adjustments.

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.

Balance on current account.

The balance on merchandise trade plus the balance on invisibles. Commonly it is referred to as the balance of payments deficit/surplus which indicates the extent to which the economy in question is paying its way in the world. A negative figure indicates a deficit which represents the amount that New Zealand has to either borrow from abroad or run down on its foreign assets.

Balance on invisibles.

The balance on services, plus the credits, less the debits for international investment income and transfer items.

Balance on merchandise trade.

This is calculated by deducting imports (f.o.b.) from exports (f.o.b.).

Balance on services.

This is calculated by deducting the total debit entries from the total credit entries for the transportation, travel, insurance, other services and Government current transactions items.

Bills.

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.

Birth rate

(crude). The number of births per 1000 of total mean population.

Bonds.

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 the bond. This category includes debentures, convertible notes and medium term notes issued by private placement.

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 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.

Current liabilities.

Those obligations which have an original maturity date of 12 months or less.

Current portion of long-term liabilities.

The portion of original long-term liabilities required to be met within one year of the survey date.

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.

Deposits.

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 a 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.

Deposit money banks.

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.

Depreciation.

As charged in books of account on fixed tangible assets owned by the establishments and ancillary units.

Direct investment.

Investments that are made to acquire a lasting interest in an enterprise located in an economy other than the resident economy of the investor, the investor's purpose being to have a significant influence in the management of the enterprise. The criterion adopted by the Department of Statistics to determine ‘significant influence’ in the direct investment enterprise is that the investor must hold at least 25 percent ownership of the enterprise.

Direct investment income.

Income earned by investors who hold 25 percent or more of the equity of an enterprise. The income includes dividends (including bonus issues of shares), interest, earnings of branches and direct investors' portions of the earnings of direct investment enterprises that are not distributed.

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.

Errors and omissions-balancing item.

A balancing item in the balance of payments statement which represents errors and omissions in the measurement of the statistics. It is also referred to as the ‘residual’.

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 govérnment on behalf of households, and the imputed rent of owner-occupied dwellings.

  2. Producers of general (central and local) government services and private nonprofit services to households—Total current expenditure by these producers less the value of any sales or own account capital formation (i.e., the total net current costs incurred in providing the services).

Foreign direct investment in New Zealand.

Changes in foreign direct investors' claims on and liabilities to their New Zealand located 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 current transactions.

The expenditure abroad of New Zealand embassies, consulates, and defence forces. Similarly, the expenditure of foreign embassies and consulates, etc, in New Zealand is included as a credit item.

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.

Income earned by foreigners from their equity and financial assets invested in New Zealand (the debit or expenditure item), and the income New Zealand earned from equity and financial assets invested abroad (the credit or income item).

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.

Loans.

Direct agreements between borrowers and lenders, involving 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 from overseas parent and/or subsidiary companies, the use of swingline facilities and non-market debentures and notes.

Long-term liabilities.

Those obligations which are not expected or could not be required to be met within one year of the survey date.

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.

Maturity profile.

Time to run to scheduled maturity, i.e., the residual maturity at the survey time point.

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.

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.

The net amount of capital flow into or out of New Zealand over a given period. It is derived by deducting total debit entries from total credit entries for items in the capital accounts. A negative figure indicates a net outflow of capital.

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 direct investment abroad.

Changes in New Zealand's direct investors' claims on and liabilities to their overseas subsidiaries and branches.

Official government sector.

Reserve Bank, Treasury and all other Government departments.

Official investment income.

Income on the government's earnings on its international investments (credit) and the interest burden on its overseas debt (debit).

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 capital.

All other foreign claims and liabilities of New Zealand. It excludes claims and liabilities associated with direct investment, portfolio investment and reserves.

Other central government sector.

State-owned enterprises (SOEs).

Other investment income.

Income earned by investors in which their equity holdings are less than 25 percent of the enterprise and interest payable and receivable between unrelated companies.

Other operating expenditure.

All other operating expenses excluding salaries and drawings by working proprietors/partners and expenses of a capital nature.

Other sector.

Private sector and other central government organisations.

Other services.

Transactions in goods, services and incomes not included elsewhere.

Overseas trade—Exports and Imports.

The Customs entries relating to goods cleared. Overseas trade statistics show exports valued f.o.b. and imports valued c.i.f.

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.

Portfolio investment.

Investments in long-term bonds and corporate equities which are not direct investment or reserves.

Private sector.

Companies, financial institutions and producer boards.

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 becomes 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

Facts New Zealand

Hot Off the Press—Information releases

Key Statistics (monthly)

New Zealand in Profile 1993 (annual)

Statistics Catalogue 1993 (annual)

A Guide to Good Survey Design

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 1991 (annual)

All about the Consumers Price Index

Analysis of the Crown Accounts, Fiscal Years 1987 to 1991

Balance of Payments; Concepts, Sources and Methods 1991

Business Activity 1992 (annual)

Consumer Expenditure 1992 (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

Food Balance Sheets (annual)

Household Income and Outlay Accounts for New Zealand 1982/83–1987/88

Inter-Industry Study of the New Zealand Economy 1986/87

National Accounts 1988/89

Overseas Trade 1991 (annual)

Social and demographic

Demographic Trends 1991 (annual)

Documenting the Environment

Elderly Population of New Zealand

The Human Face of New Zealand

Incomes 1991 (annual)

Justice 1990

The New Zealand Labour Force (quarterly)

Labour Market 1992 (annual)

Making Provision for Retirement

New Zealand Life Tables 1985–87

New Zealand Social Trends—Education

New Zealand Social Trends—Incomes

Population, Labour Force and Household Projections 1991–2031

Women in New Zealand

Testing Time

Tobacco Statistics 1991

1991 Census of Population and Dwellings reports (five-yearly)

Location and Increase of Population and Dwellings

  • Final Local Authority Population and Dwelling Statistics

Regional reports

  • Northland/Auckland

  • Waikato/Bay of Plenty

  • Gisborne/Hawke's Bay

  • Taranaki/Manawatu-Wanganui

  • Wellington

  • Nelson-Marlborough/West Coast

  • Canterbury

  • Otago/Southland

  • Regional Summary

  • Electoral Profiles (1987 Boundaries)

Topic reports

  • National Summary

  • New Zealand's Population Summary

  • New Zealand's Multi-Cultural Society (to be published 1993)

  • New Zealanders at Work (to be published 1993)

  • New Zealand's Social Structure

  • New Zealanders at Home (to be published 1993)

  • New Zealand Maori Population and Dwellings

  • Pacific Island Population and Dwellings

Reference reports

  • Concepts, Definitions and Classifications

  • Range and Availability of Statistics

Statistical classifications and standards

A Guide to New Zealand Standard Statistical Classifications

Australian and New Zealand Standard Industrial Classification (ANZSIC)

New Zealand Standard Areas Classification Manual

New Zealand Standard Classification of Occupations (NZSCO)

New Zealand Standard Country Codes (NZSCC)

New Zealand Standard Institutional Sector Classification Manual (NZISC)

New Zealand Standard Industrial Classification (NZSIC)

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, 159–60
ACCESS training scheme, 272–73, 274
Accident Compensation Corporation, 167–70
Accident compensation levy, 512
Accidents, 167–75
cases of, treated in public hospitals, 164–65
Safety
fatal, 171–75
Safety
at home, 164–65, 175
Safety
motor vehicle, 164, 171–73
Safety
prevention of,
Safety
water, 173–74
Accommodation benefit, 130
Accommodation, tourist, 259
Achievement Initiative, 187
Acts of Parliament, 14
Adoption, 136–37
adult, 137
Adult education,
Continuing education
Advertising, 243–45
Aerial topdressing, 323, 425–26
Africa, relations with, 49
Age benefits, 126–27, 131–32
Age distribution,
by ethnic group, 77–81, 105
by sex, 76–7
of population, 72, 734, 76–7
of prisoners, 219
of new mothers, 69–72
at death, 72–4
Agricultural land, 321–22
Agricultural costs, price index, 325
Agricultural Production Account, 324
Agricultural production
crops, 341
indicators of, 323–24
marketing, of products, 332–33, 334–35, 338, 339, 340, 341, 346
Agriculture and Fisheries, Ministry of, 27, 325–28
Agriculture, aspects of, 321–22
capital expenditure, 323
cattle, 322, 323, 330
costs of, 323–25
crops, 341
current situation and trends, 321–22
dairy farming, 322, 336–39
deer farming, 322, 329–30
farm employees, 323
goat farming, 322, 330
irrigation, 311–12
numbers and types of farms, 322–23
pig farming, 322, 339–40
production indicators, 323–24
quarantine, 326
sheep, and sheep farming, 322, 329, 330
Aid, overseas, 49–50, 51–2
Air force, 61–2
Air freight, 424–25
Air mail, 421–23, 435
Air pollution, 145, 313–14
Air transport,
Aviation
Airfrosts, 7
Airways Corporation of New Zealand Ltd, 420
Alcohol
consumption, 150–52
excise on, 514–15
and health, 150–52
legal aspects of consumption, 444–45
Alcoholic Liquor Advisory Council, 152
Alexander Turnbull Library, 235
Aluminium industry, 387
Amenities, of dwellings, 91–2
Animals and plants,
Vegetation and wildlife
Animals, farm,
Livestock
Anniversary day holidays, provincial, 286–87
Antarctica, 54, 57
Antiquities, protection of, 232
ANZUS (Australia, New Zealand and United States) Treaty, 55–6
Apiaries, 340–41
Apples and pears, 345
Appliances, in dwellings, 91–2
Apprentices, 273–74
Aquaculture, 360
Archaeological sites, protection of, 232
Area health boards, 139–41
Area, total land, 1, 306–07
Armed forces, 54–62
community assistance, 58
exercises overseas, 56–7
New Zealand Army, 60–1
Royal New Zealand Air Force, 61–2
Royal New Zealand Navy, 59–60
strength of, 59
Arrivals, in country, 74–6
Immigration
Art and craft supplement, 247
Art galleries and museums, 231–33
Arts and cultural activities, 226–28
support of, 226–27
Arts Council (Queen Elizabeth II), 226–28
ASEAN (Association of South-east Asian Nations), 47, 57, 465
Asian countries, relations with, 47, 465–67
Asian Development Bank, 53
Assistance to developing countries, 49–50
Audit Office, 33
Australia New Zealand and United States Treaty (ANZUS), 55–6
Australia New Zealand Closer Economic Relations Trade Agreement (CER), 46–7, 464–65
Australia, relations with, 46–7, 464–65
Autocheck, 430–31
Average Gross Income Index, 279–81
Average retail prices, 487–89
Average Tax Rates Index, 280–81
Aviation, civil, 419–26
aerial work, 323, 425–26
air mail, 421–23, 435
airlines, 411, 423
airports, 411, 422, 424
distances to overseas destinations, 424
domestic, 411,420–21
freight and passenger volumes, 421–23
international, 421–24
licensing and control of, 419–20

B

Balance of payments, 537–43
definition and principles of, 537
summaries, 537
Bankruptcies, 449
Banks and banking, 493–98
finance institutions, 494, 496–97
hire purchase, 458
merchant banks, 495
registered banks, 495
Reserve Bank of New Zealand, 493–94
savings institutions, 495–96
statistics, 495–96, 497, 498
Beef, 331–332
Beer, consumption per capita, 150–52
Bees and beekeeping, 340–41
Benefits and pensions, 126–32
accident compensation, 167–70
accommodation, 130
age, 126–27, 131–32
current rates, 126–27
death, 130
dental, 145
disability allowance, 130
domestic purposes, 128, 129, 131
emergency, 128
expenditure on, 125, 129–30, 131, 132
Family Support, 128, 129
special, 130
handicapped child allowance, 130
health, 144–45
hospital, 144
invalids, 127
maternity, 145
miners, 128
national superannuation, 127, 129, 511
orphans, 128
pharmaceutical, 144
population receiving, 129
reciprocity agreements, 132
sickness, 127
training, 128
unemployment, 128
war pensions and allowances, 131–32
widows, 128
Betting, 256
Bilateral assistance, 49–50
Bill of Rights Art 1990, 12
Bills, passing of, 14
Birthplaces, of population, 105–06
Births and birth rates, 69–72, 81–2
ex-nuptial, 71
Maori, 112
stillbirths, 157–58
Bookmaking, 256
Books and libraries, 233–36
Broadcasting, 236–41
Commission, 238–39
developments, 239–40
independent, 240
policy, 236–38
public broadcasting fee, 238
radio, 240–42
Standards Authority, 239
television, 240
Building and construction, 406
activity, 405–09
permits issued, 406
Buildings,
construction standards, 405
historic, 231–32
Bursaries,
school boarding, 192
for tertiary study, 184–85, 198–99
Buses, 430, 431
school, 192
Business development, 395
Business Directory, 525
Business statistics, 525–27
Butter, 336–37, 338

C

Cabinet, 13, 18–20
Cadet forces, 58
Campbell Island, 1
Canada, relations with, 47–8, 467
Cancer, deaths from, 155–57
Capital Goods Price Index, 491–92
Capital Finance Accounts, 529, 530
Capital gains, tax on, 513
Career Development and Transition Education
Service (Quest Rapuara), 181, 274–75
Cargo,
air, 421–25
handled at ports, 415–18
Carpet industry, 391
Cars, 89, 429–34
Casein, 336–37, 338
Cattle, 322, 323, 330
Cawthron Institute, 297
Censorship, 228–30
films and video recordings, 228–29
indecent publications, 229–30
Census of Population and Dwellings,
ethnic origins, 77, 79, 80, 81, 103–05
households and dwellings, 85–8
employment, 263
incomes, 277–84
labour force, 263–70
Maori population, 78–9
Pacific Island Polynesian population, 79
religious professions, 102–03
social welfare payments, 125, 126–27, 129
total population, 64
travel to work, 431
unemployment, 270–72
Central government finance, 505–08
accrual accounting, 506
Taxation
appropriation process, 505–06
Taxation
crown banking arrangements, 507
Taxation
expenditure, 505–08
Taxation
financial reporting, 506
Taxation
funding process, 505–06
Taxation
legislative regime, 506
Taxation
public debt, 502, 517–20
Taxation
recent reform, 505–06
Taxation
revenue,
Taxation
securities on issue, 500–01, 518–20
CER (Australia New Zealand Closer Economic Relations Trade Agreement), 46–7, 464–65
Cereals, 341–44
Chatham Islands, 1, 39
CHE
Crown Health Enterprises
CHEAC
Crown Health Enterprise Advisory Committee
Cheese, 336–37, 338
Chemical industry, 387
Chemicals, poisonous, 178–79
Childbirth, 69–72
births and birth rate, 69–72
infant mortality, 157–59
maternal deaths, 159
maternity benefits, 145
parental leave, 287
Childcare and pre-school education, 184, 186–87
Kohanga reo
Child Support Act 1992, 97
Children,
adoption of, 136
in care of Department of Social Welfare, 135
custody and guardianship of, 136–37
day care for, 184, 186–87
deaths of, 157–58, 175
health of, 149–50
and justice system, 133–36
Children and Young Persons Courts,
Youth Courts
Children and Young Persons Service, 133
Children's health camps, 149
China, relations and trade with, 47, 466
Chiropractors, 143
Chronology of main events: 1992, 43
Churches and religious organisations, number of adherents of, 102–03
Cinema, 226, 228, 229, 233
Cities and city councils, 39–40
population of, 68–9
Citizenship, 106–07
Civil aviation,
Aviation, civil
Civil defence, 176
Civil jurisdiction of courts, 209
CLEAR Communications Ltd, 412, 437–38
Clerk of the House of Representatives, 13
Climate, 4–8, 366
Coal, 366–68, 369, 374–77
Coastal planning, 310
Coastal shipping, 415
Coat of arms, vi, 42
Coins and coinage, 498
Colleges,
secondary, 188–192
of education, 183, 192–94
Commerce Commission, 441, 446–47
Commerce, Ministry of, 27, 297–98, 395–96, 434
Commissioner,
for the Environment, Parliamentary, 34
Privacy, 13
Commissions of inquiry, 24–5
Commonwealth of Independent States, relations
with, 48–9, 468
Commonwealth, relations with, 53
Community boards, 40
Community care ordered by courts, 215
Community colleges, 202
Community Employment Group, 276
Community Funding Agency, 132–33
Community housing programmes, 402
Community law centres, 210
Community Learning Aotearoa New Zealand, 201–02
Community service, imposed by courts, 215
Community Services Card, 129
Community Support Groups, 222
Community Taskforce, 275
Community welfare services,
funding of, 132–33
Maori, 114–15
programmes, 133
Companies, 445–46, 449–50
insolvencies, 449–50
mergers of, 446, 447
practices of, 446–47
registration, 445
taxation of, 512–13
Compensation, accident, 167–70
Conservation,
boards, 318
Conservation Authority, New Zealand, 318
Conservation, Department of, 27, 305, 315
Conservation of cultural property, 231
Conservation of natural resources,
forests, 349–50
legislative reform, 308
of water and soil, 310–13
Consolidated Accounts of the Nation, 529–30
Constitution, 11–12
recent reform, 12–13
Construction,
Building and construction
Consumer protection, 442–43
Consumers' Institute, 443
Consumers Price Index, 483–89
all groups, all urban areas combined, 485
expenditure weighting, 484
geographic coverage and published series, 484–85
geographical variation, 484–85, 487
index regimen, 483
international comparison, 487
price surveys, 484
revision of, 485
Continuing education, 194, 195–203
Controller and Auditor-General, 33
Convictions,
non-traffic offences, 211–14
traffic offences, 214
Cook Islands, 45–6, 53
Cook Strait rail/ferry service, 414, 426–27
Copyright, 228
Corporations, government,
State-owned enterprises
Corrective training, 215
Correspondence School, 191, 202
Cost of living, 483–89
Consumers Price Index, Real disposable income indexes, Retail prices,
Council for Maori and South Pacific Arts Te Waka Toi, 226
Country of birth, 105–06
Court of Appeal, 205–06, 209, 210–11
Courts 205–08
of Appeal, 205–06, 209, 210–11
District, 206, 209, 210–11
Employment, 206–07
Family, 207
High, 206
Maori Land and Appellate, 207, 303–04
Youth, 207
CPI (Consumers Price Index), 483–89
Craft, 226
Credit cards, 458–59
Crime, 210–14
compensation for, 214
reported offences, 210
CRIs, 25, 293–95
Crops,
fruit, 344–46
grains, 341–43
seeds, 344
Crown Health Enterprises (CHEs), 140, 160–61
Crown Health Enterprise Advisory Committee (CHEAC), 160–61
Crown land, 304–05
Crown Lands, Office of, 304–05
Crown Law Office, 27
Crown-owned entities, 32
Crown Minerals Act 1991, 310, 378
Crown Research Institutes, 25, 293–95
Cultural activities, 225–26
Cultural Affairs, Ministry of, 27, 225
Cultural sites, protection of, 231, 309
Currency, 498
Curriculum framework, 187
Customs Department, 27, 462
Customs tariff and revenue, 462

D

Dairy farming and products, 322, 330, 336–39
butter, 336–37, 338
casein, 336–37, 338
cheese, 336–37, 338
exports, 338–39
marketing of, 338–39
milk and milk products, 336–39
prices, 339
production index, 324
Dance, 226
Data communications, 438–39
Day-care, 184, 186–87
Daylight saving, 10
Death benefits, 130
Deaths and death rates, 72–4, 81–2
accidental, 171–75
from cancer, 155–57
of children, 158–59, 175
infant, 157–59
maternal, 159
major causes, 155–56
Maori, 73, 112–13
stillbirths, 157–58
Debt,
private,
Credit, Mortgages
public, 502, 517–20
Deer farming, 322, 329–30
Defence, 54–62
agreements, 55–6
expenditure, 58
Ministry of, 28, 54–5, 58–9
White Paper 1991, 55
Demography,
Population
Dental benefits, 145
Dental health, 145, 153
Dentists, 141
Department of Conservation, 27, 305, 315–19
Department of Health, 29, 139–41, 153–55
Department of Internal Affairs, 29
Department of Justice, 29, 302–04
Department of Labour, 29, 178–79, 263, 275–77
Department of Prime Minister and Cabinet, 30
Department of Social Welfare, 31, 125, 132, 133, 137, 138
Department of Statistics, 31
publications, 550
Department of Survey and Land Information, 31, 301–02, 304–05
Departments, government,
chief executives of, 26–7
expenditure by, 505–08
functions of, 27–32
Departures, from country, 74–6
Deportation, 109
Design, industrial, 297–98
Developing countries, relations with, 49–50, 51–2, 468–69
Dietitians, 143
Diplomatic representatives overseas, 45, 46
Disability allowances, 130
Disabled persons,
assistance and services for, 133, 134, 145
Benefits and pensions
benefits for,
Benefits and pensions
Disaster relief, 58, 176
Diseases,
treated, 162–65
Displaced persons,
Refugees
Dissolution of marriage, 96–7
Distribution of population, 65–9
District Courts, 206, 209, 210–11
District planning, 309–10
Districts and district councils, 39
population of, 68–9
Divorce, 96–7
Doctors, 141
Domestic purposes benefits, 128, 129, 131
Domestic trade and services, 456–59
Domestic travel, 260
Drinking, legal aspects of, 432–33
Drivers' licences, 432
Driving offences, 214, 217, 433–34
Drownings, 173–74
Drugs,
legal, control of, 146
offences involving, 213, 222–23
Dwellings, 85–8
tenure of, 86–7
types of 85–6

E

Early Childhood Development Unit, 181
Earnings, 278–79
Earthquake and War Damage Commission, 176–77
Earthquakes, 3–4
EC (European Community), 48, 463–64, 467–68
Economy Wide Census, 450
Education,
administration of, 181–85
agencies, 181–82
attainments, 188–89, 193–94, 196, 200
bodies, 182–83
continuing, 194, 195–203
curriculum, 187–88
funding of, 184–85, 198–99
international links, 185
of Maori, 183, 187, 190
Maori language, 184, 187
Ministry of, 28, 182, 184–85
polytechnic, 184–85, 199–201
pre-school, 181, 184, 186–87
public expenditure on, 185
Review Office, 28, 182
rural, 190, 191, 194–95
Service Centres, 183
special, 181, 192, 193
student allowances, 184–85, 198–99
teacher numbers, 192–94
teaching resources, 194–95
teacher training, 192–94
technical, 199–201
transition, 201–03
university, 184–85, 198–99
women and, 99–100
Educational research, New Zealand Council for, 183
Education and Training Support Agency, 181–82, 273–74
EEZ (Exclusive Economic Zone), 58, 356–57, 362
Eggs, 340
Eggs Producers Federation, 340
El Alamein, Battle of, 57
El Nino, 7
Elections, 20–4
local body, 41
parliamentary, 14, 16–18
referenda, 12
term poll, 23–24
Electoral referendum, 13
Electorates, parliamentary,
listed, 17–18
maps of, 21–2
review of, 21–2
Electricity, 366–68, 368–71
consumption of, 366–68, 371
generation of, 369–70
markets, 371
reticulation, 371
supply authorities, 371
Electricity Corporation of New Zealand Ltd, 369
Electronics industry, 387–88
Embassies, 45, 46
Emergency benefits, 128
Emigration, 74–6
Employment, 263
assistance, 272–77
Human Rights Commission
farm, 323
Human Rights Commission
and human rights
Human Rights Commission
in manufacturing, 391–94
recorded by Business Directory, 525–27
Service, New Zealand, 275–77
status, 263, 277
surveys of, 263
and training programmes, 272–77
of women, 100, 264–65
Employment Contracts Act 1991, 284–88
Employment Court, 206–07, 286
Employment Tribunal, 207, 286
Energy, 365
biomass, 378
consumption, 366–68
demand and supply, 367–68
efficiency, 366
fossil, 372–77
geothermal, 377
policy, 365–66
primary, 366
review of energy research, 366
solar, 378
supply, 367–68
tidal, 378
wave, 378
wind, 377–78
Energy, forms of,
coal, 366–68, 369, 374–77, 382
electricity, 366–68, 368–71
gas, 366–68, 372–74, 383
geothermal, 366–68, 377
oil, 366–68, 372–74, 383
renewable, 377
Energy Resources Monitoring and Conservation Authority (ERMCA), 365
Engineering industry, 388
Enterprise Allowance, 275
Enterprise survey, annual, 525
Environment, 306
Act 1986,34
global issues, 314–15, 388
and mineral exploitation, 310, 378
Ministry for the, 28, 309–10, 314–15
Parliamentary Commissioner for, 34
Resource Management Act 1991, 308–15
Environmental,
health, 145–46
issues, 314–15
labelling, 298
planning, 308–10
Environmental Choice NZ, 298
Environmental directorates, 315
Equal employment opportunities, 26, 287
Equal Employment Opportunities Trust, 288
Equal Opportunities Tribunal, 207–08
Equal pay, 265, 287
ERMCA
Energy Resources Monitoring and Conservation Authority
Erosion, control of, 312
Estate duty, 439
Ethnicity, 77–80, 103–05
Maori,
Maori population
Pacific Island Polynesians
Treaty of Waitangi,
Pacific Island Polynesians,
Pacific Island Polynesians
Treaty of Waitangi,
Race relations and racial discrimination, 113
Treaty of Waitangi,
European Community (EC), 48, 463–64, 467–68
European countries, relations with, 48, 463–64, 467–68
Events, chronology of, 43
Examinations, 182, 188–89, 196
Exchange rates, 502
Excise duties, 462, 514–15
Exclusive Economic Zone (EEZ), 58, 356–57, 362
Executive Council, Cabinet and, 18–20
Ex-nuptial births, 71
Exotic forests, 306–07, 349, 352–56
Export Prices Index, 480
Export Volume Index, 481–82
Exports, 471–74
agricultural,
Marketing, of agricultural products
destinations, by country, 469–71
indexes of, by commodity, 479
main, value and volume of, by commodity, 472–73
value of, by Harmonised System, 477–78
value of, by SITC, 476–77
External migration, 74–6
External Relations and Trade, Ministry of 28, 45, 46, 185, 196–97, 314
External trade, 461
agreements, 469
balance of merchandise trade, 463
commodities, trade in, 472–73
listed by country and region, 469–71
price and volume indexes, 479–82
statistics of, types and sources, 462–63
terms of, index, 480–81
trading partners, described, 463–68
External transactions account, 530

F

Factories, 178–79
Manufacturing industry, Occupational safety and health
Fair trading legislation, 441, 442–43
Families, 69–71
Households
Family assistance, 128, 511
Family Courts, 96–7
Family Group Conferences, 134–35
Family health, 147–50
Family law, 96–7, 128, 130–31
Family planning, 147
Family support, 96–7, 128, 511
Farm employment, 323
Farming, 325
Agriculture, Livestock Farming Inputs Price Index,
Farms, numbers and types, 323–22
Fauna,
Vegetation and wildlife
Federation of Scientific and Technological Societies (POSTS), 295
Ferries, 414, 427
Fertiliser, 323
Topdressing
Fertility rates, 69–72, 81–2
Fiji, relations with, 45–6
Film, 226, 228, 229, 233
Films and video recordings, 226, 229
censorship of, 228–29
New Zealand Film Archive, 233
New Zealand Film Commission, 228
Financial definitions, 498
Financial institutions, 494, 496–97
Fire and general insurance, 450–52, 455
Fire fighting and prevention, 177–78, 318
Fish,
catch, 359–60
exports, 361
species, 357–58, 359–60
Fisheries law reform, 357
Fisheries resources, 356–60
protection of, 58
Fishing,
by foreign vessels, 360, 361, 362
Industry Board, 362
recreational, 253
research, 295
Fishing vessels, 360
Five Power Defence Arrangements, 56
Flag, New Zealand, 42
Floods, 7
Flora,
Vegetation and wildlife
Fluoridation, 153
Food,
expenditure on, 90
industry, 388
prices, 486, 488
standards, 146
Food and Agriculture Organisation, United Nations (FAO), 52
Footwear industry, 390
Foreign aid, 49–50, 51–2
Foreign exchange market, 502
Foreign policy, 45, 49–50
Official Development Assistance (ODA)
Foreign trade,
External trade
Forest funds, 318
Forest parks, 315, 317
Forest products,
Timber and forest products
Forest Research Institute, 294
Forestry and logging, 349–56
employment in, 35
Timber and forest products
private, 350–511
Timber and forest products
products,
Timber and forest products
research into, 294
state, 350
training in, 351
Forestry Corporation Ltd, New Zealand, 350–51
Forestry, Ministry of, 28, 351
Forests, 8–9, 349–51
conservation and protection, 315–18
exotic, 306–07, 349, 352–56
native, 306–07, 349, 352–56
ownership of, 350–51
planting of, 349–50
FOSTS
Federation of Scientific and Technological Societies
Freight,
Cargo
Fringe benefit tax, 512
Fruit, 344–46
Fuels,
coal, 366–68, 369, 374–77, 382
gas, 366–68, 372–74, 383
oil, 366–68, 372–74, 383

G

Galleries, art, 231
Gambling, 256
Gas, 366–68, 372–74, 383
General Agreement on Tariffs and Trade (GATT), 52, 321
General Assembly
Parliament
General elections', 12, 14, 16–18, 19, 20–3
Generalised System of Preference, 468–69
Geographical features, 1–2
glaciers, 1
lakes, 2
mountains, 1
rivers, 2
Geology, 2–3
Minerals and mineral products
Geothermal power, 366–68, 377
Geriatric hospitals, 144, 163
Gift duty, 514
Glaciers, 1
Global warming, 366
Glossary of statistical terms, 546
Goat farming, 322, 330
Gold, 63, 65, 315, 317
Goods and services tax (GST), 462, 513
Government the, 18–20
Government departments,
chief executives of, 26–7
expenditure by, 505–08
functions of, 27–32
Government finance,
Central government finance
Government stock and securities, 500–01, 518–19
Government Superannuation Fund, 29, 452–53, 454
Governor(s)-General, 11, 13, 14
Graduates, university, 196
Grains, 341–43
Grape growing and wine production, 344–45
Greenstone, 381
Greyhound racing, 256
Gross domestic product, 428–29, 531–32, 534–37
in constant prices, 534–37
index of, 535
by production group, 532–33
Gross fixed capital formation, 532–33
GST, 462, 513
Guadacanal, Battle of, 57
Guardianship, 135

H

Handicapped child allowance, 130
Handicapped persons,
Disabled persons
Harbours,
Ports
Harmonised System, 462, 477–78
Health, 139
and causes of death, 155–56
Hospitals
Department of, 29, 131–49, 153–55
Hospitals
education, 150
Hospitals
environmental, 145–46
Hospitals
expenditure, 140–41
Hospitals
family, 147–50
Hospitals
and hospitals,
Hospitals
Information Service, 153–55
insurance, 455–56
mental, 165–67
occupational, 178–79
practitioners, 141–44
research, 154, 155
sector reforms, 139–40
services structure, 139
statistics, 153–54
voluntary sector, 147
women's, 100, 102
Health benefits, 144–45
Health boards, area, 139, 140–41
Health camps, 149
Health education, 150
Health inspection, 145–6
Health Research Council, 155
High Court, 206, 209, 210–11
Higher School Certificate, 188, 189
Highways, 429
Hillary Commission for Sport, Fitness and Leisure, 249–51
Active in Age, 250–51
Kiwiable, 250–51
Hire purchase, 458
Historic places, 231–32
Historic reserves, 217
Hocken Library, 236
Holidays, 286–87
Home appliances, 91–2
Home ownership, 86–7, 401–02
Homeseekers lending, 402
Homicide, 210, 212
Honey, 340–41
Horse racing, 256
Horticulture, 341–46
Crops
Hospital benefits, 144
Hospitals, 160
administration, 160–61
beds available, 162
geriatric, 144, 163
patients treated, 162
private, 162
public, 161–62
Hotels and restaurants, 443–46, 456–59
Hours of work, 286
House of Representatives,
Parliament
Household Expenditure and Income Survey, 89–92
Household Labour Force Survey, 263, 270–71
Households, 85–92
amenities of, 91–2
composition of, 85, 87, 88
expenditure by, 89–91
incomes of, 89
transport, 89
Housing, Ministry of, 29, 403
Housing,
community programmes, 402
Rental housing
construction, 405–09
Rental housing
costs of, 399–400
Rental housing
home ownership, 85, 401–02
Rental housing
Homeseekers lending, 402
Rental housing
loans for, 401–02
Rental housing
Maori, 87–8, 401–02
Rental housing
market, 399–400
Rental housing
Pacific Island Polynesians, 87–8
Rental housing
reform, 402–04
Rental housing
rental, 401
Rental housing
state, 401–04
Housing Corporation, 404
Human rights, 98
Bill of Rights, 12
Equal Opportunities Tribunal, 207–08
official information, 33
promotion of equal opportunity, 26, 98
Housing New Zealand Limited, 403
Human Rights Commission, 98
Hunting, 254
Hydro-electric power, 366–68, 368–71

I

IBRD (World Bank), 52, 53
IMF (International Monetary Fund), 52
Immigrants, 108–09
Immigration, 107–09
current provisions, 108–09
and demography, 63, 74–6
recent policy, 107–08
Immunisation, 149–50
Import Prices Index, 480
Imports, 474
by country, 469–71
indexes of, by commodity, 480–82
value and volume of principal items, 474–75
value of, by Harmonised System, 477–78
value by SITC, 476–77
Imprisonment,
Prisons and prisoners
Information privacy, 12
Income support, 125–32
Income Support Service, 126
Income tax,
companies, 512–13
index of, 279–80
personal, 508–09
revenue from, 516–17
Incomes, 277–82
of companies, 512–13
of households, 89
Indecent Publications Tribunal, 229–30
Independent Broadcasting Association, 240
Index of Gross Domestic Product, 535
Indexes, explained, 547
Indexes, listed,
Average Gross Income Index, 279–81
Average Tax Rates Index, 280–81
Capital Goods Price Index, 491–92
Consumers Price Index, 483–89
Export Prices Index, 480
Export Volume Index, 481–82
Farming Inputs Price Index, 325
Import Prices Index, 480
Import Volume Index, 481
Index of Gross Domestic Product, 535
Nominal Weekly Wage Rates, 284
Prevailing Weekly Wage Rates Index, 282–83
Producers Price Index, 489–91
Real disposable income indexes, 279–82
Terms of Trade Index, 481
Volume of agricultural production, 324
Industrial accidents, 178–79
Industrial design, 297–98
Industrial relations
Labour relations
Industrial safety,
Occupational safety and health
Industrial structure of labour force, 267–68
Industry,
Manufacturing industry
Industry training strategy, 273–74
Infant mortality, 157–58
Inflation,
Consumers Price Index
Information, privacy of, 12, 33
Inland Revenue Department, 29
Taxes and taxation,
Insolvency, 449–50
Insurance, 450–56
accident, 167–70
earthquake and war damage, 176–77
fire and general, 452, 455
life, 454
medical, 455–56
regulation, 450–51
Interest rates,
Monetary policy, Mortgages
Inter-industry studies, 530–31
Internal Affairs, Department of, 29
Internal migration, 66–7
International Bank for Reconstruction and Development (IBRD), 52, 53
International comparisons, 92
abortion rates, 160
consumer prices, 487
defence expenditure, 59
infant mortality, 158
life expectancy, 73–4
motor vehicle accidents, 172
standards of Jiving, 92
International Development Association (IDA), 52, 53
International Finance Corporation (IFC), 52, 53
International Monetary Fund (IMF), 52, 53
International organisations, participation in, 51–4
International relations, 45
International Whaling Commission (IWC), 54
International Wool Secretariat, 335
Invalids benefit, 127
Iron, 378
Steel making
Irrigation, 311–12

J

Japan, relations with, 47, 466
Job Link, 275
Job Plus, 275
Judges and judiciary, 205–08
Jury service, 209
Justice, Department of, 29, 302–04
Justice,
Convictions, 211–14
Courts
Sentencing, 216–18
Courts
system of,
Courts

K

Kermadec Islands, 1
Kindergartens, 184, 186–87
Kiwifruit, 346
Kohanga reo, 115, 184, 186–87
Korea, trade with, 466
Korowai Aroha-Aotearoa Inc, Te, 95–6

L

Labelling, environmental, 298
Laboratory technicians, medical, 143
Labour Cost Index (LCI), 283–84
Labour, Department of, 29, 178–79, 263, 275–77
Labour force, 263
age and sex of, 264
employment status, 266
Household Labour Force Survey, 263, 270
industrial structure, 267–68
occupational structure, 268–70
part-time, 264, 265–66
participation rates, 263–64
Quarterly Employment Survey, 263, 278–79
survey of, 263
women in, 100, 264–65
Labour Party, 13–14, 17–18, 23
Labour relations, 284
bargaining arrangements, 285
disputes, 206–07
hours of work, 286
minimum entitlements, 286
minimum wages, 286
personal grievances and disputes, 285
public and annual holidays, 286
rights and obligations, 285
specialist courts, 206–08
strikes and lockouts, 285–86
Lakes, 2
Lamb, 330–33
Land,
agricultural, 306–07, 321, 322
area, total, 1, 306–07
controls on acquisition, 303
Crown, 304–05
leasehold, 304–05
Maori, 303–04
recreational, 315–19
registration of ownership, 302–03
surveys of, 301
transfers of, 302–03
use of, 306–07, 310
valuation of, 305–06
Land Corporation Ltd, 305
Land tax, 513
Land Transport Fund, 429
Latin America and Caribbean, relations with, 48, 467
Latitude and longitude, 1
Law, sources of, 208–09
Laws, 304–05
Legislation Leasehold land,
Legal aid, 209–10
Legal Services Act 1991, 209–10
Legal systems, 205–10
Legal tender, 424
Legislation, 14–15
Leisure activities, outdoor, 253–55
Liable Parent Contribution Scheme, 131
Libraries, 233–36
Life expectancy, 72–4, 112
Life insurance, 454
Lighthouses, 419
Liquidation, of companies, 449–50
Liquor, 444–45
Alcohol Liquor licensing,
Literature, 226
Livestock, 322, 329–30
cattle, 322, 323, 330
deer farming, 322, 329–30
distribution of, 329
goat farming, 322, 330
health services for, 326–27
pigs, 322, 339–40
poultry, 340
quarantine of, 326
sheep, and sheep farming, 322, 329, 330
Local authorities, 40, 41
election and membership of, 41
population of, 68–9
rating and valuation, 253, 305–06, 521
roading, 429
statistics, 520–21, 522
Local government, 34, 36–41
boundaries, 37–8
community boards, 40
organisation, 36
regional councils, 36, 39–40
special purpose local authorities, 40
territorial authorities, 39–40
Local Government Commission, 41
Local government finance, 520–22
borrowing, 522
expenditure, 521
income, 520–21
Local government regions, population of, 68–9
Lotteries and lotto, 256
funding from, 256–57

M

Maatua whangai, 115
Magazines, 243
Mail services, 434–36
Mana Enterprises Scheme, 276
Manila Treaty, 56
Manufacturing industry, 387–97
assistance to, 395–96
enterprises, 391–92
geographical distribution of, 393–94
quarterly survey of, 356
Maori, 109, 111–17
community services, 114–15
education of, 183, 187, 190
employment and training of, 276
fisheries, 356
housing, 87–8, 401–02
justice, 207
land, 303–04
language, 115–17, 187
tribal developments and locations, 111, 114
women, 15–18, 109, 111–17
Maori and Pacific Islands Arts, Council for, Te Waka Toi, 226
Maori Development, Ministry of, Te Puni Kokiri, 29, 113, 304, 401–02
Maori Council, New Zealand, 114
Maori Education Foundation, 183
Maori electorates, 20–2
Maori Fisheries Commission, 358–59
Maori Land Court and Maori Appellate Court, 207, 303–04
Maori population,
age and sex of, 78–9, 109, 111–12
birth and death rates of, 78, 112–13
geographical distribution of, 78, 112
households, 87–9
infant mortality in, 158
life expectancy, 73, 113
Maori wardens, 115
Maori Women's Welfare League, 115
Mapping, 302
Marine pollution, 313, 419
Marine wildlife, 318
Marital status, 93–5
Maritime parks and reserves, 315, 318
Marketing authorities for agricultural products,
apples and pears, 345
dairy products, 336–39
kiwifruit, 348
meat, 332–33
wool, 334–36
Marriage and marriages, 69–71, 93–5
age at, 71, 95
dissolution of, 96–7
guidance, 95–6
rates of, 71, 93
Maternal deaths, 159
Maternity benefits, 145
Maternity leave, 287
Meat and meat products, 330–33
beef, 331–32
chicken, 340
exports, 331–33
pigmeats, 339–40
prices, 332
processing, 330–31
sheepmeats, 331–32
veal, 332
Media, 236–46
advertising, 243–45
magazines, 243
newspapers, 242–43
radio, 240–41
television, 240
Medical benefits, 144
Medical Council, 141
Medical insurance, 455–56
Medical laboratory technologists, 143–44
Medical practitioners, 141
Medical radiation technologists, 143
Medicines, control of, 146
Members of Parliament, 14, 15–18
listed, 17–18
salaries and allowances, 15–16
Mental health, 165–67
Merchant banks, 495
Merchant navy qualifications, 418
Mergers, 446
Metals, 378–82
gold, 379
iron, 378
Meteorology,
Climate
Middle East, relations with, 49, 468
Migration, external, 66–7
External migration, Immigration internal,
Military pensions, 131–32
Milk and milk products, 336–39
Dairy products
Mineral exploitation, 310, 378
Minerals and mineral products, 378–85
coal, 366–68, 369, 374–77
metallic, 378–80, 382
non-metallic, 380–82
production, 382–85
Miners benefit, 128
Minimum wage, 286
Mining, 374–77, 378–82
laws on, 310, 378
safety and working conditions, 178–79, 46–7
Ministers of the Crown, list of, 19–20
salaries and allowances of, 15–16
Ministry for the Environment, 28, 309–10, 314–15
Ministry of Agriculture and Fisheries, 27, 325–28
Ministry of Civil Defence, 176
Ministry of Commerce, 27, 297–98, 395–96, 434
Ministry of Consumer Affairs, 441, 442–43
Ministry of Cultural Affairs, 27, 225
Ministry of Defence, 28, 54–5
Ministry of Education, 28, 182, 184–85
Ministry of Forestry, 28, 351
Ministry of Housing, 29, 403
Ministry of Maori Development, Te Puni Kokiri, 30, 113, 304, 401–02
Ministry of Pacific Island Affairs, 30, 119
Ministry of Research, Science and Technology, 30, 291
Ministry of Tourism, 31
Ministry of Transport, 32, 171–73, 411–12, 418–19, 419–20, 432–33
Ministry of Women's Affairs, 32, 99
Monetary policy, 499–500
Money, 498
Monopolies, 447
Mortality,
Deaths and death rates
Mortgages, 399, 401
Housing Corporation, 401
interest rates of, 339, 401
Motor spirits, duty on, 514, 515
Motor vehicle industry, 389
Motor Vehicles Securities Register, 430–31
Motor vehicles, 429–34
registration and licensing, 429–30, 432
inspection, 432
Mountains, 1
formation of, 2–3
Multilateral assistance, 50–2
Murder, 210, 212
Museum of New Zealand Te Papa Tongarewa, 231
Museums and art galleries, 231
Music, 226

N

Narcotics,
Drugs
National Accounts, New Zealand System of (NZSNA), 527–37
development of, 527–28
National Advisory Committee on Care Health and Disability Support Services (NACCHDS), 40
National Advisory Council on the Employment of Women, 265
National anthems, 42
National Archives, 232
National disposable income, 528–530
National Drug Intelligence Bureau, 222–23
National emblems and anthems, 42
National Fish and Game Council, 318
National equalised values, 306
National income and outlay, 30, 234–36
National Library of New Zealand, 30, 234–36
National parks, 315–17
Forest parks, Reserves
National Party, 14, 17–18, 23
National planning, environmental, 308–09
National Provident Fund, 30, 453
National superannuation. 127, 129, 511
Natural gas, 366–68, 372–74, 383
Natural increase, of population, 69–72
Nature reserves, 217
Navigational aids, 419
Navy, Royal New Zealand, 59–60
New Zealand Apple and Pear Marketing Board, 345
New Zealand Army, 60–1
New Zealand Australia Closer Economic Relations Trade Agreement (CER), 46–764–65
New Zealand Bibliographic Network, 236
New Zealand Certificate, 200, 201
New Zealand Children and Young Persons Service, 133
New Zealand Communicable Disease Centre, 293
New Zealand Community Funding Agency, 132
New Zealand Conservation Authority, 318
New Zealand Council for Educational Research, 183
New Zealand Dairy Board, 338
New Zealand Employment Service, 275–77
New Zealand Film Archive, 233
New Zealand Film Commission, 228
New Zealand Fire Service, 177–78
New Zealand Fishing Industry Board, 362
New Zealand Forestry Corporation Ltd, 350–51
New Zealand Government, the, 14, 19–20
New Zealand Government stock and securities, 500–01, 518–19
New Zealand Health Information Service, 153
New Zealand Historic Places Trust, 231–32
New Zealand Household Expenditure and Income Survey, 89–92
New Zealand Income Support Service, 126
New Zealand Institute of Economic Research, 297
New Zealand Kiwifruit Marketing Board, 346
New Zealand Lotteries Commission, 256
New Zealand Lottery Grants Board, 225–26, 256
New Zealand Maori Council, 114
New Zealand Meat Producers Board, 330–33
New Zealand Milk Authority, 337
New Zealand Olympic and Commonwealth Games Association, 253
New Zealand Patent Office, 297–98
New Zealand Police, 30, 221–24
New Zealand Pork Industry Board, 339–40
New Zealand Post Ltd, 434–36
New Zealand Qualifications Authority, 182
New Zealand Rail Ltd, 426–27
New Zealand Railways Corporation, 426
New Zealand Sports Foundation, 252
New Zealand Stock Exchange, 447–48
New Zealand Symphony Orchestra, 227–28
New Zealand System of National Accounts (NZSNA), 527–37
Consolidated Accounts of the Nation, 529–30
New Zealand Time Service, 10
New Zealand Tourism Board, 31, 260
New Zealand Trade Development Board, 31–2, 461
New Zealand Wool Board, 334–36
New Zealand Workers Educational Association (WEA), 203
New Zealand's overseas posts, 45, 46
Newspapers and magazines, 242–43
Niue, relations with, 45–6, 53
Nominal Weekly Wage Rates Index, 284
North Island, population of, 65–6
Nurses, and nursing services, 142
NZ On Air, 238–39
NZSNA (New Zealand System of National Accounts), 527–37

O

Occupations, 267–70
Occupational safety and health, 178–79
reform, 178
Occupational therapists, 143
OECD (Organisation for Economic Co-operation and Development), 53–4
Office of Crown Lands, 304–05
Official development assistance (ODA), 49–50
Official information, 33
Ohu Whakatupu, Te (Maori Women's Secretariat), 99, 102
Oil, 366–68, 372–74, 383
Ombudsmen, 33–4
Open Polytechnic of New Zealand, 199
Optometrists and opticians, 143
Organisation for Economic Co-operation and Development (OECD), 53–4
Orphans benefit, 128
Outdoor leisure activities, 253–55
Overseas aid, 49–50, 51–2
Overseas balance of payments, 537–43
Overseas debt, 517–20, 542–43
Overseas exchange transactions, 502
Overseas students, 185, 196
Overseas trade,
External trade

P

Pacific countries, relations with, 45–6, 53, 465
Pacific Forum Line, 46
Pacific Island Affairs Advisory Council, 119
Pacific Island Affairs, Ministry of, 30, 119
Pacific Island Polynesian population, 79, 118–19
age distribution of, 79, 118
employment and training, 276
geographical distribution, 119
households and dwellings, 87–8
Pacific Islands Industrial Development Scheme (PIIDS), 46
Paper, 354–56
industry, 389
Parental leave, 287
Parks, forest, 315, 317
marine, 315, 318
national, 315–317
Parliament, 11–12, 13–15
members of, 17–18
opposition, 13–14, 17–18
proceedings of, 14–15
salaries and allowances of members, 15–16
sessions of, 14–15
Parliamentary Service, 15
Parliamentary Commissioner for the Environment, 34
Parliamentary Library, 236
Parole system, 221
Partnerships, 446
Part-time work, 264, 265–66
Passports, 108–09
Patents and trade marks, 297–98
Paternity leave, 287
Patients, hospital, 162–65
PAYE tax, 509
Penal system, 214–21
corrective training, 215–16
imprisonment, 215
parole system, 221
prisons and prisoners, 218–21
probation, 215, 221
reparation, 214
Supervision, 214–15
Pensions, 226–27
Benefits and pensions, Superannuation Performing arts,
Perinatal mortality, 157–58
Periodic detention, 215
Permits, building and construction, 405–08
Petroleum,
consumption, 373
imports and refining, 373
processing and distribution, 373–74, 383
prospecting and drilling, 372
Pharmaceutical benefits, 144
Pharmacists, 143
Physiotherapists, 142
Pigmeats, 339–40
Pigs, 269, 283, 322, 339–40
Pinus radiata, 349, 353, 355–56
Planning, 308–10
coastal, 310
district, 309–10
environmental, 308–13
national, 308–09
permission for building, 405–08
regional, 309
Planning Tribunal, 208, 308
Plants breeders' rights, 344
Plants, 390
Vegetation and wildlife Plastics industry,
Podiatrists, 143
Police Complaints Authority, 223
Police, New Zealand, 30, 221–24
Political parties, 13–14, 23–4
Pollution, air, 145, 313–14
water, 311, 313
Polynesians,
Pacific Island Polynesians
Population, 64
age distribution, 72, 73–4, 76–7
Maori population
Pacific Island Polynesians
change in, 69–76
Maori population
Pacific Island Polynesians
ethnic groups in, 77–81
Maori population
Pacific Island Polynesians
fertility of, 69–72
Maori population
Pacific Island Polynesians
geographical distribution of, 65–9
Maori population
Pacific Island Polynesians
growth of, 63, 81–2
Maori population
Pacific Island Polynesians
of local government areas, 68–9
Maori population
Pacific Island Polynesians
Maori,
Maori population
Pacific Island Polynesians
marital status of, 93–5
Pacific Island Polynesians
of North and South Islands, 65–6
Pacific Island Polynesians
Polynesian,
Pacific Island Polynesians
projections of, 81–2
religious professions of, 102–03
rural, 66–7
sex ratio in, 76–7
urban, 66–7
Ports, 412, 415, 418
Postal services, 434–36
Poultry and eggs, 340
Pre-school education and childcare, 181, 184, 186–87
Kohanga reo, 115, 184, 186–87
Preventive detention, 215–16
Prevailing Weekly Wage Rates Index, 282–84
Price indexes,
Capital Goods Price Index, 491–92
Consumers Price Index, 485–87
Export Prices Index, 480
Farming Inputs Price Index, 325
Import Prices Index, 480
Producers Price Index, 489–91
Terms of Trade Index, 481
Prices, 483
exports and imports, 479–82
housing, 399–400
international comparison. 487
retail trade, 487–88
Privacy Commissioner, 13
Primary schools, 186, 187, 189, 190
Prime Minister(s), 19
Department of Prime Minister and Cabinet, 30
salary and allowances, 15–16
Prisons and prisoners, 218–21
age and ethnicity, 219
classification and treatment, 219–20
institutions, 218
major offences, 220
numbers of prisoners, 218–20
offending history, 220
sentence length, 220
traffic offenders, 220
Privacy Commissioner, 13
Private hospitals, 162
Private schools, 189, 190, 191
Privy Council, Judicial Committee of, 205
Probation, 215, 221
Producers Price Index, 489–91
Production accounts, 531–32
Protected Natural Areas Programme, 318
Psychiatric hospitals, 165–67
deaths, 167
patients and diagnoses, 165, 167
Psychologists, 142
Public accounts, 505–08
Public broadcasting fee, 238
Public debt, 322, 329–30
interest on, 519
maturity of, 519
per capita, 518
securities on issue, 502, 519–20
transactions, 517–20
Public health, 145–60
Public Health Commissioner, 140
Public holidays, 286–87
Public lands,
Crown land, 304–05
national parks, 315–17
Queen Elizabeth the Second National Trust. 318–19
walkways, 254–55, 318
Public service
Government departments, State sector
Public Trust Office. 30
Publishing, books, 233
newspapers and magazines, 242–43
Pulp and paper, 354–56
Puni Kokiri, Te, 30, 113, 304, 401–02

Q

Qualifications Authority, New Zealand, 182
Quarantine, 326, 354
Quarries and quarrying,
Mining
Quarterly Economic Survey of Manufacturing, 396
Quarterly Employment Survey, 263, 278–79
Quarterly Survey of Retail Trade, 456–58
Queen Elizabeth II Arts Council, 226–27
Queen Elizabeth II National Trust, 318–19
Quest Rapuara (Career Development and Transition Education Service), 181, 274–75

R

Race relations and racial discrimination, 98
Ethnicity
Racing, 256
horse and greyhound, 256
taxation, 515
Radio, 240–41
Radiologists, 143
Railways, 426–27
construction and engineering, 427
New Zealand Rail Ltd, 426–27
New Zealand Railways Corporation, 426
passenger services, 426–27
Rainfall, 5–7
Raoul Island, 1
Rapu Mahi/Hanga Mahi programme, 115
Rates, local authority, 520–22
Real Disposable Income Indexes, 279–82
Receivership, 449–50
Recreation and sport, 249–55
Hillary Commission for Sport, Fitness and Leisure, 249–51
participation in, 252
Recreation reserves, 215, 217
Refugees, 80, 109
Regional councils, 36, 39
Regional employment and ACCESS councils, 272–73, 274
Regional Fish and Game Councils, 318
Regional health authorities, 140
Regional planning environmental, 309
Registered banks, 494–96
Rehabilitation, 153
after accidents, 147
of war veterans, 131–32
Religious professions of population, 102–03
Renewable energy, 377
Rental housing, 401, 403
Reparation ordered by courts, 214–15
Representation Commission, 21–2
Reproduction rates, 69–72, 78, 81
Research, scientific, 291–97
Foundation for Research, Science and Technology, 291–92
Ministry of Research, Science and Technology, 30, 291
Reserve Bank of New Zealand, 493–94
Reserves, land, 215, 217
marine, 318
Residential Tenancy Tribunal, 208, 403–04
Resource conservation,
Conservation of natural resources
Resource management, 308–15
Act 1991, 308–10, 365, 378
Restaurants and hotels, 443–46, 456–59
Retail prices, 487–88
Retail trade, 456–59
credit sales, 458–59
shop trading hours, 443
Rivers, 2, 310–12
Roads, 428–29
expenditure on, 429
safety, 171–73, 432–33
speed limits, 433
taxes for, 515
Transit New Zealand, 428–29
Rocks, types of,
Geology
Ross Dependency, 1, 54
Royal commissions, 24–5
Royal New Zealand Air Force, 61–2
Royal New Zealand Navy, 59–60
Royal Society of New Zealand Act 1965, review of, 295
Rural education activities programmes (REAPs), 194–95
Rural Electrical Reticulation Council, 371
Rural population, 66–7
Russia, relations with, 48–9, 468

S

Safety, 176
fire, 177–78
occupational, 178–79
road, 171–73
of ships, aircraft, cranes, 418–19
Salaries,
Wages
Salt, 381–82
Satellite links, 439
Savings institutions, 496–97
other financial institutions, 494
Scenic reserves, 315, 317
School Certificate, 188, 189
School Dental Service, 153
School Journal, The, 195
Schools,
boards of trustees, 182
correspondence, 191, 202
curriculum, 187–88
hostels, 191
primary, 186, 187–88
private, 189. 190. 191
pupils of, numbers, 190
secondary, 187, 188–89
terms of, 186
transport to, 192
Science and scientific services, 291–97
recent changes, 293–95
Scientific reserves, 317
Search and rescue operations, 58, 222
Secondary schools, 187, 188–89
Securities Commission, 447
Securities, government, 500–01
Security Intelligence Service (SIS), 84
Seismic activity, 3–4
Sentencing,
Non-traffic, 216–17
Traffic, 217–18
Serious Fraud Office, 31, 447
Share market, 447–48
Sheep, and sheep farming, 322, 329, 330
Sheepmeats, 331–32
Shipping, 413–19
bulk, 415
coastal, 415
ferries, 414, 427
fishing vessels, 360
register of, 418
overseas, 413–14
services to, 418–19
Shipwrecks, 419
Shop trading hours, 443
Sickness benefits, 127
SITC (Standard International Trade Classification), 476–77
Sixth Form Certificate 188
Skiing, 254
Sky Entertainment, 240
Smoking, 150
Social Policy Agency, 137
Social sciences, 295
Social services, 132–33
Social welfare, 125
benefits,
Benefits and pensions
computing systems, 137–38
Department of, 31, 125, 132, 133, 137, 138
funding, 129–30
Software industry, 390
Soil conservation, 310–11, 312–13
Soil types, 307–08
South and Central America, relations with, 48, 467
South Island, population of, 66
South Pacific Commission, 46
South Pacific countries, relations with, 45–6, 57, 465
South Pacific Forum, 46
South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA), 45, 465
Southern Oscillation, 7
Soviet Union, relations with, 48–9, 468
Russia, Commonwealth of Independent States
Speaker of the House of Representatives, 13
Special education, 181, 189, 190, 192, 193
Special purpose local authorities, 40
Special Tactics Group, 222
Sports, 251–55
Olympic and Commonwealth Games, 253
participation in, 252
Sport, Fitness and Leisure, Hillary Commission for, 249–51
Stamp duty, 513–14
Stamp, postage, 434–36
Standard International Trade Classification (SITC), 476–77
Standard of living, international indicators, 92
Standards Council, 298–99
Standing Orders of the House of Representatives, 13
Starnet, 439
State forests, 349–51
State-owned enterprises, 32, 517–18
Sales of 517–18
transfer of land to, 302–03
State sector, 25–32
policy changes, 25–6
reform, 25
State Services Commissioner, 26
Statistics, Department of, 31
Statutes, 11–13
Steelmaking, 390
Stillbirths, 157–58
Stock change, by production group, 533
Stock exchange, 447–48
market survillance panel, 448–49
Storms,
hail, 7
snow, 7
Strikes, 285, 288–89
Student Job Search, 276
Students, allowances, 184–85, 198–99
Maori, 183, 187, 190
numbers, 190
overseas, 185, 196–97
part-time, 198
primary school, 186, 187–88
teachers college, 183, 192–94
technical, 199–201
university, 184–85, 198–99
Sulphur, 382
Superannuation, 452–54
Government Superannuation Fund, 29, 452–53, 454
National Provident Fund, 30, 453
Supermap 2, 87
Supervision ordered by courts, 215
Supreme Court,
High Court
Survey and Land Information, Department of, 31, 301–02, 304–05
Surveys,
hydrographic, 58
land, 301
Symphony Orchestra, New Zealand, 227–28

T

TAB (Totalisator Agency Board), 256
Taiapure, 359
Tariff (customs), 462
Taupo Fishery Advisory Committee, 318
Taxation review authorities, 515
Taxes and taxation, 508–17
Average Tax Rates Index, 280–81
company income tax, 512–13
deductions, 510
estate duty, 513
excise duties, 462, 514–15
fringe benefit tax, 512
gift duty, 514
goods and services, 462, 513
on interest and dividends, 512
land tax, 513
personal income tax, 508–09
racing taxation, 515
retirement tax and national superannuation surcharge, 511
revenue from, 516–17
roads taxation, 515
stamp duty, 513–14
Teacher Registration Board, 182
Teachers and teaching, 183, 192–94
registration of, 182
Teachers colleges, 199–201
Colleges of education Technical education,
Telarc New Zealand, 298
Telecom Corporation of New Zealand Ltd, 412, 436–37
Telecommunications, 434, 437, 438–39
Telegrams, 439
Telephone services, 437, 438–39
Television, 240
Telex services, 438
Temperatures, 5–7
Tenancy, 401, 403
Term poll, 24
Terms of Trade Index, 481
Territorial authorities, 39–40
finances, 520–22
Territories, New Zealand, Ross Dependency, 1, 54
Tokelau, 1, 54
Tertiary education funding, 184–85, 198–99
Textiles, 390
Wool
Timber and forest products, 352–56
exports of, 353, 355–56
imports of, 355
pulp and paper, 354–56
Timber preservation, 353–54
Time, 10
Tokelau, 1, 54
Topdressing, 323, 425–26
Totalisator Agency Board (TAB), 256
Tourism, 257–61
accommodation, 259
Board, New Zealand, 31, 260
domestic, 260
facilities, 259
international, 259
Ministry of, 31, 260
promotion, 46, 260–61
Tourism Facilities Development Grants Programme, 258–59
Town milk supply, 337–38
Town planning, 308
Trade,
domestic,
Domestic trade
External trade
external,
External trade
Trade marks, 298
Trade organisations and agreements, 461, 469
Trade practices, 441, 443–45
Trade representatives overseas, 46, 461
Trade routes, maritime, 413–14
Trade training, 199–201
apprentices, 273–74
technical education, 199–201
Trade unions, 284–85
Trading banks,
Registered banks
Trading legislation, 441, 446–48
Traditional sites, protection of, 232, 309
Traffic, Convictions, 214
offences, 214, 217, 433–34
Sentencing, 217
Training benefit, 128
Training, vocational, 181–82, 199–201
Trade training,
Transit New Zealand, 428–29
Transport, 411
air, 419–26
household, 89
Ministry of, 32, 171–73, 411–12, 418–19, 419–20, 432–33
rail, 426–27
reform of industry, 411–12
road, 428–34
sea, 413–19
to work, 431
use by tourists, 259
Travel, domestic, 260
Treasury, 32
Treaties,
defence agreements, 55–6, 56–7
trade agreements, 45–6, 46–7, 461, 469
Treaty of Waitangi, 113, 208, 308, 309
Tribunals, 207–08
Disputes, 207
Employment, 207
Equal Opportunities, 207–08
Indecent publications, 229–30
Planning, 208, 308
Residential tenancies, 208, 403–04
Waitangi, 113, 208
Tritec, 137
TV3
Network Ltd, 240
Tyre industry, 389

U

Unemployment, benefit, 128
ethnicity and age of, 272
growth of, 272
policies and programmes, 270, 272–76
school qualifications and, 272
Unions, of employers, 284–85
Unions, of workers, 284–85
Unitary authorities, 39
United Kingdom, trade with, 468
United Nations Education, Scientific and Cultural Organisation (UNESCO), 52
United Nations, New Zealand membership of, 51–2, 56–7
United States of America, relations with, 47, 55–6, 467
Universities, 184–85, 195–99
enrolments, 196, 198
extension programme, 202
graduates from, 196
scholarships and bursaries to, 188, 196–97
staff in, 197
students in, 198
Urban areas, 66–7
Cities and city councils
population of, 66–8

V

Valuation New Zealand, 32, 305–06
Valuation of land, 305–06
Valuers, registration of, 306
Vegetation and wildlife, 8–9
Video, 226
Video Recording Authority, 229
Video recordings, classification, 229
Videotex, 439
Visual arts, 226
Vital statistics, 71–2
Births and birth rates, Deaths and death rates, Marriage
Viticulture, 344–45
Volcanoes, 2, 3
Volume indexes of external trade, 481–82
Voluntary welfare organisations, 147
Voting,
Elections

W

Wages, 277–84
minimum rates, 286
Nominal Weekly Wage Rates Index, 284
Prevailing Weekly Wage Rates Index, 282–84
Waitangi National Trust Board, 319
Waitangi, Treaty of, 11, 113, 308, 309
Waitangi Tribunal, 113, 208
Waka Toi, Te, 226
Walkways, 254–55, 518
War, New Zealand's participation in, 56–7
Warrant of Fitness, 432
War pensions and allowances, 131–32
Water and soil conservation, 310–13
Water pollution, 145–46, 330–12, 419
Water supply, 310–12
fluoridation of, 153
irrigation, 311–12
WEA (New Zealand Workers Educational Association), 203
Weather, 5–7
Weights and measures, 545
Western Samoa, 45–6
Widows benefit, 128
Wild Animal Recovery Service Appeal Authority, 319
Wildlife, 315, 317
Vegetation and wildlife Wildlife reserves,
Wine, 344–45
winemaking, 344–45
Women, 99–102
education, 99–100
health of, 100, 147–49
housing, 100
in the labour force. 100. 264–65
Maori, 99–102
in politics, 16
Ministry of Women's Affairs, 32, 99
ratio in population, 76
violence and pornography, 100
Women's Employment Project Fund, 276
Wood, 334–36
exports, 335–36
International Wool Secretariat, 335
New Zealand Wool Board, 334–36
prices, 335, 336
production, 334
Workers' compensation, 167–70
Work stoppages, 285, 288–89
Working conditions, 286
Occupational safety and health
Working hours, 286
World Bank, 52, 53
World Health Organisation, 52, 155
Wrecks, 419

Y

Youth Affairs, Ministry of, 32
Youth justice, 135–36
Youth, programmes,
Community welfare services

1993 special articles

A

Abortion, 160
Agriculture, women in, 327
AIDS, women and, 146
Alcohol, women and, 151
Anderson, Barbara, 235
Angus, Rita, 236
Antarctica, women in, 54
Arikinui Te Atairangikaahu, Te, 109
Art and craft, women's, 247
Arts and media, women events, 237
Ashton-Warner, Sylvia, 192
Atairangikaahu, Te, 109
Aubert, Mother Mary Joseph, 127
Aunt Daisy, 238
Aurere, Te, 85

B

Bagley, Amelia, 158
Banking Ombudsman, 495
Barker, Lady Mary, 341
Barmaids, 443
Barr, Penelope, 7
Bartlett, Patricia, 229
Barwick, Sandy, 262
Basham, Maud (Aunt Daisy), 238
Batten, Jean, 422
Bell, Muriel, 295
Benjamin, Ethel, 211
Bennett, Agnes, 140
Births to unmarried mothers, 71
Black stilt, 8
Bock, Amy, 214
Book Festival, 234
Bradey, Lydia, 3
Business initiatives, Maori, 453

C

Cabbage trees, 315
Camellia, 436
Campion, Jane, 228
Cartwright, Silvia, 206
Casinos, 256
Cervical screening, 148
Children, Commissioner for, 136
Chronology,
arts and media, 237
commerce and services, 452
education, 202
employment, 284
health, 180
international relations and defence, 56
justice, 222
leisure, 255
of main events: 1992, 43
politics, 35
population, 68
social framework, 110
social support, 129
sport, 261
suffrage, 14
transport and communications, 419
women in politics, 35
Clark, Helen, 21
Clay, Marie, 182
Coberger, Annelise, 254
Commerce and services, women's events, 452
Commissioner for Children, 136
Commonwealth gold, 253
Companies legislation, 445
Coney, Sandra, 97
Cooper, Whina, 305
Corlett, Yvette
Williams, Yvette
Council of Legal Education, 210
Country Women's Institutes, 334
Cranwell, Lucy, 9
Crime Act 1991, proceeds of, 213
Currency issue, 499

D

Dalrymple, Learmonth, 199
Davies, Sonja, 286
Death, 74
Deaths from violence, 174
De facto relationships, 94
Dean, Minnie, 215
Dell. Miriam, 91
Dentists, 142
Devoy, Susan, 259
Diplomats, women, 45
Disabilities, women with, 276
Discrimination, elimination of, 99
Divorce, 96
Drugs, women and, 146
Du Faur, Freda, 1
Duncan, Vicky, 343

E

Early childhood services, 186
Edmond, Lauris, 236
Education,
for girls and women, 191
women's events, 202
Election 1893, General, 24
Elias, Sian, 212
Elimination of discrimination, 99
Employment, women's events, 284
Employment contracts, 285
Equality in pay, 280
Evans, Ripeka, 113
Export oddities, 477

F

Family Planning Association, New Zealand, 154
Faster Automated Screen Trading and Electronic
Registration
FASTER
FASTER, 448
Federation of University Women, New Zealand, 197
Fellow of Royal Society of New Zealand
FRSNZ
Female offenders, 217
Female population, 65
Fergusson, Clare, 242
Fisheries legislation review, 357
Fisheries negotiations, 358
“For Home and Country”, 334
Forces, women in the, 61
Frame, Janet, 233
FRSNZ, 296

G

General Election 1893, 24
Geographical extremes, 10
Girl Guides Association of New Zealand, 89
Girls, education for, 191
Glendining, Danna, 325
Goddard, Lowell, 212
Gold medallists, 253
Gordon, Doris, 145
Grace, Patricia, 244
Guide Rangi, 260
Guiding, 89
Gunn, Elizabeth, 149

H

Health,
Maori women's, 161
Pacific Island women's, 163
women's events, 180
Health Camps, 149
Henare, Denese, 207
Herangi, Te Puea, 112
Historical items,
deaths from violence, 174
divorce, 96
General Election 1893, 24
sex ratio, 63
suicide, 174
Hodgkins, Frances, 231
Hoist, Alison, 242
Honours and awards, 42
Order of New Zealand, 41
Housing, women and, 406
Housing for Women Trust, 401
Howard, Mabel, 13
Hukui, Susana, 118
Hulme, Keri, 245
Hunter, Jane, 344
Hunter, Rachel, 467

I

International relations and defence, women's events, 56

J

Jackson, Rowena, 227
Jamieson, Penny, 103
Juries, 209
Justice, women's events, 222

K

Kelsey, Lavinia, 190
Kendall, Barbara, 253
Kent, Thelma, 231
Kidson, Elsa, 297
Kirby, Georgina, 95

L

Labour force, young women in the, 269
Laing, Shona, 244
Law Commission, 205
Legal Education, Council of, 210
Legislation, companies, 445
Leisure, women's events, 255
Lifestyle, women and, 166
Listener Women's Book Festival, The, 234
Lojkine, Susan, 447
Lupp, Sybil, 431
Lytollis, Sue, 100

M

MAF Fisheries, 359
women in, 356
Maclean, Hester, 144
Mahy, Margaret, 243
Maude, Sybilla, 150
Main events: 1992, chronology of, 43
Major, Malvina, 241
Mansfield, Katherine, 232
Manufacturing, women in, 296
Maori business initiatives, 453
Maori Congress, 116
Maori development, 117
Maori fisheries negotiations, 358
Maori women, health for, 161
Maori Women's Welfare League, 115
Marching, 250
Mariu, June, 114
Matrimonial property, 208
McDonald, Ginette, 239
Media, women in the, 225
Medical facts, 153
Medicine, women in, 168
Members of Parliament, women, 17
Ministry of Women's Affairs, 32
Moller, Lorraine, 257
Moncrieff, Perrine, 316
Moore, Lucy, 9
Moore, Rina, 165
Mortality, 74
Mountain climbing, 1
Muldoon, Robert, 19
Mulgan, Margaret, 98
Murchie, Erihapeti Rehu, 102

N

National Council of Women, 101
National Maori Congress, 116
Neill, Grace, 142
New Zealand, Order of, 41
New Zealand Family Planning Association, 154
New Zealand Federation of University Women, 197
New Zealand geographical extremes, 10
New Zealand Wine Guild, 468
“No women allowed”, 443
Nominations Service, 99

O

O'Reilly, Mary-Jane, 227
Offenders, female, 217
Order of New Zealand, 41

P

Pacific Island women's health initiatives, 163
PAFT, 187
Paralympics, 251
Parents as First Teachers
PAFT
Parliamentary refurbishment, 15
Pay, equality in, 280
Payne, Patricia, 242
Plunket Society, 157
Policewomen, 224
Politics, women in, 35
Population,
the female, 65
women's events, 68
Potter, Judith, 212
Poutasi, Karen, 141
Proceeds of Crime Act 1991, 213
Pornography, 230
Pryde, Diana, 449
Public service, women in the, 26
Pubs, women in, 443
Pultrusions, 470

R

Rangi, Guide, 260
Ratana, Iriaka, 16
Refuges, 130
Renée, 245
Reriti-Crofts, Aroha, 105
Richardson, Ruth, 512
Right to vote, 22
Rogers, Ilona, 240
Rotorua, 258
Rout, Ettie, 147
Royal New Zealand Plunket Society (Inc.), 157
Royal Society of New Zealand, Fellows of the, 296

S

Saphira, Miriam, 135
Science, women in, 293
Security Council, UN, 53
Self-employment, women in, 278
Sex ratio, 63
Sheppard, Kate, 106
Siedeberg, Emily, 141
Signatories, 12
Smith, Wilma, 119
Smoking, women and, 150
Snively, Suzanne, 498
Social framework, women's events, 110
Social support, women's events, 129
Sport chronology, 261
Sport, fitness and leisure, women in, 249
State sector, women in the, 25
Stilt, black, 8
Suffrage,
chronology, 14
right to vote, 22
Suicide, 174
Sunshine Camps, 149
Supermap 2, 87
Sweating Commission, 296
Szaszy, Miraka (Mira), 137

T

TAIC, 425
Taumaunu, Waimarama, 260
Tawhiwhirangi, Iritana, 184
Te Arikinui Te Atairangikaahu, 109
Te Aurere, 85
Te Kanawa, Kiri, 245
Te Puea Herangi, 112
Three sisters, 242
Tinsley, Beatrice, 293
Tirakatene-Sullivan, Whetu, 18
Tizard, Catherine, 11
Trade commissioners, women, 461
Transport and communication, women's events, 419
Transport Accident Investigation Commission,
TAIC
Treaty signatories, 12
Tremain, Gillian (Jill), 2

U

UN organisations for women, 52
UN Security Council, 53
UNCED outcomes, 314
Unemployment, women in, 271
Unmarried mothers, births to, 71

V

Vautier, Kerrin, 531
Violence, deaths from, 174
Vote, the right to, 22

W

Waitomo Caves, 258
Wallace, Cath, 318
Waring, Marilyn, 36
Wartime women, 57
Weather 1992, 5–7
WEL (NZ), 104
Wiffen, Joan, 3
Williams, Yvette, 253
Wine Guild, 468
Women,
after 60, 77
and AIDS, 146
and alcohol, 151
and drugs, 146
and housing, 406
and lifestyle, 166
and smoking, 150
and unemployment, 271
diplomats, 45
education for, 191
in agriculture, 327
in Antarctica, 54
in MAF Fisheries, 356
in manufacturing, 296
in medicine, 168
in politics, 35
in pubs, 443
in science, 292
in self-employment, 278
in sport, fitness and leisure, 249
in the forces, 61
in the House, 17
in the media, 225
in the population, 65
in the public service, 26
in the state sector, 25
MPs, 17
trade commissioners, 461
UN organisations for, 52
wartime, 57
with disabilities, 276
young, in the labour force, 269
Women's
art and craft, 247
Supermap 2, 87
Women's Affairs, Ministry of, 32
Nominations Service, 99
Women's Book Festival, 234
Women's Division Federated Farmers, 339
Women's Electoral Lobby NZ
WEL (NZ)
Women's events,
art and media, 237
commerce and services, 452
education, 202
employment, 284
health, 180
international relations and defence, 56
justice, 222
leisure, 255
politics, 35
population, 68
social framework, 110
social support, 129
transport and communications, 419
Women's health
Maori, 161
Pacific Island, 163
Women's Refuges, 130

Y

Young women in the labour force, 269

Reference numbers for Alexander Turnbull Library photographs

Chapter 2 Government: Ellen Melville, F 118138 1/2; Elizabeth McCombs, F 150372 1/2; Iriaka Ratana, F 55126½.

Chapter 3 International relations and defence: Women's National Service Corps, C 16762.

Chapter 5 Social framework: Princess Herangi Te Puea, F 62596½; Rev. Phyllis Guthardt, F 153092½; Kate Sheppard, C 16138.

Chapter 6 Social welfare: Mother Mary Joseph Aubert, F 45056½.

Chapter 7 Health and safety: Ettie Rout and Volunteer Sisterhood, G 14727 1/1; Dr Doris Gordon, F 127025½;

Chapter 8 Education: Sylvia Ashton Warner, C 16812; Kate Milligan Evans, F 5049½.

Chapter 9 Justice and law: Amy Bock, F 18586½.

Chapter 10 Arts and media: Aunt Daisy; F 35049½; Dame Ngaio Marsh, F 46802½; Katherine Mansfield, F 2532 mnz½; Frances Hodgkins, F 117607½.

Chapter 12 Employment: Grace Neill, C 10794; Tram employees, F 115784½.

Chapter 13 Science and technology: Muriel Bell, F 135805½.

Chapter 15 Agriculture: Landgirl, F 720 1/4.

Chapter 20 Transport and communication: Jean Batten, F 87791½.