New Zealand Official Yearbook 1996

Te Pukapuka Houanga Whaimana o Aotearoa

Cover

The theme, “New Zealand linked to the world,” visualised by Dexter Fry of Puhoi.

New Zealand Official Yearbook
Cat no 01.001
ISSN 0078-0170

Recommended retail price: $59.95 (incl GST)

Copyright © Statistics New Zealand 1996

Published by Statistics New Zealand.

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Te Hakituatahi o Aotearoa

The first flag of New Zealand 1835

For a detailed history of Te Hakituatahi o Aotearoa, see section 3.5: National emblems and anthems.

Heraldic description: on a white field, a red St George's Cross; in the upper canton, next to the staff on a blue field, a smaller St George's Cross in red, severed from the blue by a fimbriation of black, half the width of the red and in the centre of each blue quarter a white eight-point star.

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 sesquicentennial edition of the Yearbook.

The coat of arms was revised in 1956 following 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’.


Table of Contents

List of Tables

Preface

Table of Contents

This 99th edition of the New Zealand Official Yearbook follows the established tradition of presenting a wide range of official and general information about our country. There is no other one-volume publication which balances the hard statistics of New Zealand existence with the snapshot view of events and achievements during the year. All are clearly presented and easily accessible, and as accurate and up-to-date as humanly possible.

This Yearbook follows a year when immigration contributed more to New Zealand's population growth than did natural increase from births and deaths, the first time in over a century.

Our trade, population change and tourism reflect new links with the countries of Asia. Australia, our special relation across the Tasman, has a strong influence on business, trade and tourism, and is now home for one in thirteen New Zealanders.

With the theme this year of ‘New Zealand linked to the world,’ we have distilled many aspects of New Zealand society, looking at the way individuals, groups and government organisations connect with the rest of the world. It is obvious that New Zealand and New Zealanders are no longer isolated at the bottom of the South Pacific. Through travel, education and trade we are already interacting in a multitude of ways with people and activities around the globe - with international electronic networking still in its infancy.

This is a Census of Population and Dwellings year, and another reminder that the public and business make good statistics by providing information to Statistics New Zealand. The Yearbook, each year, is a testament to that.

It would not be possible to present the wide-ranging content of the Yearbook without the considerable time, effort and goodwill of contributors in hundreds of New Zealand organisations. I thank them all, as well as the editor, Statistics New Zealand staff and Yearbook printers, for once again producing a volume in the best traditions of New Zealand statistics and New Zealand book publishing.

LENCOOK
Government Statistician

May 1996

Acknowledgements

The 1996 Yearbook was produced by the Publishing and Community Information Division of Statistics New Zealand, with the assistance of many individuals and organisation—these are listed in the ‘Contributors’ section at the end of each chapter, but the editor and department also wish to record their thanks here.

Editor: David Zwartz
Editorial assistance: Cecily McNeill, Vivien Pullar, Deborah Willett, Kirsten Wong.
Maps and diagrams: Peter McGrath.
Photograph editor: Lawrence McDonald.
Proofreading: Jane Hunt, Kanchana Pathmaperuma, Ganga Pillai.

Photographs: Individual photographs are credited separately.

How to use the 1996 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 included to familiarise you with the book.

What is the Yearbook?

The New Zealand Official Yearbook is published 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 contains the most currently available statistics for the 1995 year on particular topics. It also tells its readers where 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 (overleaf), which lists chapter headings and major sections within chapters. In approaching the book this way it is worth bearing in mind that the 28 chapters follow a ‘logical’ progression. The first few chapters describe the physical setting as well as New Zealand's history, system of government and international relations. A description of its people comes next, followed by social framework and institutions. The second section of the Yearbook begins with an overview of New Zealand's work force and moves to a discussion of the nation in broad economic terms. Then follow descriptions of each of the constituent sectors, ending with a chapter on public sector finances.

Throughout the book cross references are made, usually by reference to numbered sections within chapters (which appear in the headline 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. 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 Yearbook publication.

For this edition the figures published are either the latest available at 1 December 1995 or some collected early in 1996.

Tables

If the source of a particular table is other than Statistics New Zealand, it is noted at the foot of the table. The following symbols are used in all the tables:

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

Statistics from 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

Ash and smoke erupting from Mount Ruapehu up to 10,000m, on 23 September 1995.

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 4.

Table 1.1. LAND AREA OF NEW ZEALAND*

Land areaSize

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

† Includes islands in territorial local authorities.

‡ Excluding islands in territorial local authorities.

Source: Department of Survey and Land Information.

sq km
North Island†115 777
South Island†151,215
Offshore islands‡833
Stewart Island1,746
Chatham Islands963
                    Total270,534

New Zealand is more than 1,600 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 northeast 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 2,300 metres. There are also 360 glaciers in the Southern Alps. The largest are, on the east, the Tasman (length 29 km), Murchison (17 km), Mueller (13 km), Godley (13 km) and the Hooker (11 km), and, on the west, the Fox (15 km) and the Franz Josef (13 km).

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 3,000 metres.

Source: Department of Survey and Land Information.

metres
North Island–
     Ruapehu2,797
     Taranaki or Egmont*2,518
     Ngauruhoe2,287
     Tongariro1,967
South Island†—
Southern Alps—
     Cook3,754
     Tasman3,497
     Dampier3,440
     Silberhorn3,300
     Hicks (St David's Dome)3,198
     Lendenfeldt3,194
     Torres3,163
     Teichelmann3,160
     Sefton3,157
     Malte Brun3,155
     Haast3,138
     Elie de Beaumont3,117
     Douglas3,085
     La Perouse3,079
     Heidinger3,066
     Minarets3,055
     Aspiring3,033
     Glacier Peak3,007

New Zealand in relief—a 25-metre-long, three-dimensional scale model based on satellite photos, on display at a national teachers conference.

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

Table 1.3. PRINCIPAL RIVERS*

RiverLength

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

Source: Department of Survey and Land Information.

km
North Island—
Flowing into the Pacific Ocean—
      Rangitaiki193
      Waihou175
      Mohaka172
      Ngaruroro154
Flowing into the Tasman Sea—
      Waikato425
      Whanganui290
      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
      Dunstan (artificial)27
      Rotoroa23
      Mahinerangi (artificial)21

1.2 Geology and soils

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

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

Rock types

The oldest rocks in New Zealand are found in Nelson, Westland and Fiordland. They have been dated back to the Paleozoic era about 570 million years ago.

Almost three-quarters of New Zealand is covered by sedimentary rocks, created by the interplay of the earth movement and erosion. The most common forms of sedimentary rocks in New Zealand are sandstone, mudstone, greywacke, conglomerate and limestone. As well as the sedimentary rocks of various ages, New Zealand incorporates in its complex structure metamorphic rocks (schist, gneiss and marble), and intrusive igneous rocks (granite, gabbro, diorite and serpentine). Volcanic rocks (basalt, andesite, rhyolite and ignimbrite), are the products of the many volcanic eruptions that have characterised New Zealand's geological history.

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 1.5. CLASSIFICATION OF NEW ZEALAND SOILS

RegionSoilsVegetation and land use
North Auckland Peninsula and Auckland regionLarge areas of infertile gumland soils formerly covered with kauri. Loams and clay from volcanic rocks.Patchy land use. Exotic forests on and 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 on 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-country 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.

TAUPO VOLCANIC ZONE
Cone and caldera volcanoes

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 volcanoes in New Zealand now occur in the North Island, where a number are still active. They include Ruapehu, Tongariro, Ngauruhoe, 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.

A new IGNS book confirming that Wellington is entering a 30-year period when scientists say there is a 12 percent chance of an earthquake measuring 7 or higher on the Richter scale. The book also answers 20 of the most commonly-asked questions about earthquakes.

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 1995. Another busy year for earthquakes continued the pattern of increased activity since 1990. The 6 February Waitangi Day earthquake, of Richter magnitude 6.8, was felt from Auckland to Christchurch and also in the Chatham Islands. This earthquake was located 86 km offshore from East Cape, so damage was relatively minor for an event of this size. The mainshock was followed by many aftershocks, the largest occurring four days later with a magnitude of 6.2—a fairly large earthquake in its own right. Institute of Geological & Nuclear Sciences (IGNS) staff are still working on locating the aftershocks, with some 2,000 located within the first week. Fairly large earthquakes that occurred in Fiordland in 1993 and near Arthur's Pass in 1994 were also in remote areas, so we have been fortunate that none of these were located near a major population centre.

An earthquake that occurred during National Radio's Morning Report programme on 23 March was widely felt throughout the country. It was located at the northern end of the Marlborough Sounds at a depth of 76 km, and was of magnitude 5.9. It is unusual for an event of this size to be felt from Auckland to Dunedin, but part of the felt extent can be attributed to the fact that Morning Report listeners were alerted to the shaking. It also gave people the rare opportunity to experience the propagation time of seismic waves in that the earthquake was felt in Dunedin and Auckland about two minutes after it was felt in Wellington. Damage was only minor with goods knocked off shelves in some Nelson shops.

For the second year in succession Arthur's Pass has had more than its fair share of earthquakes. On 29 May a magnitude 5.5 earthquake rocked the township. This event was located near the aftershock zone of the June 1994 magnitude 6.7 earthquake, and triggered a landslide that closed the Otira Gorge road. On 24 November a magnitude 5.9 event was located some 20 km further to the east, just north of Cass. It caused some ground damage in the remote Poulter River area. It is possible that the Cass earthquake was triggered by stress changes associated with the 1994 event. This is another area of current research for IGNS scientists as it has important ramifications for short-term seismic hazard estimation and may also contribute important new information on how faults weaken when loaded.

Three other large earthquakes occurred during the year. On 4 June a deep magnitude 6.9 earthquake occurred 450 km to the north of New Zealand. This was felt in Hawke's Bay and Wellington. A shallow magnitude 7.1 earthquake near Raoul Island on 4 July caused strong shaking at Raoul, but was not reported as felt in New Zealand. Finally, a deep magnitude 6.4 earthquake, located 20 km south of Hawera, occurred on 20 September and was felt from Wanganui to Dunedin.

The eruption of Mt Ruapehu in September created nationwide interest. Three types of seismic activity typically accompany volcanic eruptions. These are volcanic tremor, caused by resonance in the volcano's plumbing system; low frequency earthquakes, often associated with actual eruptions; and “normal” earthquakes associated with movement of magma at depth. In this eruption, both tremor and low frequency earthquakes were common, but few “normal” earthquakes occurred, consistent with little movement of magma and a relatively small eruption. However, coincidental with the eruption were four small felt earthquakes within four days, located from Wanganui to South Westland. Their distance from Mt Ruapehu rules out any direct relationship to the eruption. A more likely candidate for related activity is a swarm of earthquakes that occurred near National Park in January and March, of which four were felt in Ohakune. The link between this swarm and the subsequent eruption is currently being studied by IGNS scientists.

The IGNS Seismological Observatory is part of a global earthquake data exchange network. IGNS routinely reports all arrival times of earthquake waves from New Zealand and elsewhere in the world, and the locations it calculates for regional earthquakes. This information is sent to the International Seismological Centre in England and the National Earthquake Information Centre in Colorado, USA. IGNS receives from the US centre by Internet, within an hour or two, the preliminary locations of large New Zealand earthquakes.

1.3 Climate

New Zealand is a long, narrow, mountainous country surrounded by a large expanse of ocean. The nearest major land mass is Australia some 1,600 kilometres to the west.

The climate of New Zealand is largely influenced by:

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

  • Its oceanic environment.

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

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

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

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

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

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

Weather in 1995

1995 was a year for climate extremes in New Zealand, being the wettest year ever in the north of the South Island and Central Otago, where records go back one hundred years. It was also a year of contrasting temperature patterns over the country. Mean temperatures were extremely high in Auckland, Waikato, eastern Bay of Plenty and some offshore islands, but below average in the south of the South Island, where it was sunny. Temperatures had recovered to pre-Pinatubo levels.

MT RUAPEHU ERUPTION
Main ashfalls

Drought from the previous year was still occurring in Hawke's Bay through January, and as the year progressed there were eight significant floods. Severe snowstorms occurred with extremely low temperatures in the south in June and July, with another significant snowstorm following in September. Heatwaves occurred in February and December.

In 1995 the absence of the Pinatubo effect and decay of El Niño was one of the main reasons for the year's climate being warmer than the previous three years.

Anticyclones were more frequent just northeast of the North Island. These gave northern New Zealand a higher than average frequency of mild northerlies and north westerlies, quite often of subtropical origin. At the same time more frequent troughs just east and south of the South Island gave cold outbreaks of sub-Antarctic air and cooler south westerlies over the south.

Wetter than usual. 1995 was an exceptionally wet year over much of the South Island, with 125 to 150 percent of average rainfall in northern, western and alpine regions, as well as Central Otago, and south Canterbury. It was the wettest year since 1878 at Hokitika, and the wettest in about 100 years of records in both Blenheim and Clyde (Central Otago).

Table 1.6. LOCATIONS WITH NEAR OR RECORD HIGH RAINFALL FOR 1995

Location1995 totalAverage mmPercent of averageYear records beganRank
Hokitika3,5562,82412618662nd; highest since 1878.
Nelson Airport1,43499414419002nd highest.
Blenheim1,0036711491900Highest.
Queenstown1,24385114518752nd highest.
Clyde5944101451897Highest.

The year was also wetter than usual in Coromandel and Tongariro, with rainfall between 125 and 135 percent of average. Auckland, Waikato, Bay of Plenty and other western North Island regions had between 110 and 125 percent of average rainfall.

Gisborne was the only region which was drier than normal, with rainfall 85 percent of average.

Of the four main centres, Auckland was the wettest with 1,349 mm and Christchurch the driest with 672 mm. Wellington amassed 1,340 mm and Dunedin 750 mm. More surprisingly Lincoln in Canterbury was the driest town with only 533 mm. The driest centre usually occurs in Central Otago. Milford Sound was the wettest location measuring 7,664 mm.

WEATHER

Sunshine hours (annual average)

Pedestrians take shelter against the wind in Customs Street, Auckland.

High mean temperatures. Mean temperatures were also extreme, being amongst the highest on record in Auckland, Hamilton and Whakatane. They were well above the 1961-1990 averages (by at least 0.5C) in Auckland, Waikato, eastern Bay of Plenty, Gisborne, and southern Wairarapa. Mean temperatures were also at least 0.5C above average at both Raoul and Chatham Islands.

Locations with extremely high mean temperatures for 1995 were Whakatane with 15.2C (equal highest with 1948), and Chatham Island with 12.2C (equal highest with 1878). Temperatures were up to 0.4C above average in Northland, western Bay of Plenty, most other North Island regions, and north Canterbury.

Warm year. The national average temperature was 12.6C, which was 0.1C above normal. This made 1995 the warmest year since 1990. The temperature was 0.1C above the 1961-1990 average and compares favourably with the cooler years from 1992 through 1994, with temperatures of 11.7, 11.9 and 12.3C respectively.

The highest temperature for New Zealand in 1995 was 37.0C, measured at Geraldine on 26 February. Fairlie recorded 35.0C. Dunedin had 34.6C on the same day; the highest there for any month since records began in 1853.

Sunshine. Most regions had near average sunshine in 1995. However, Otago and the Southern Lakes were much sunnier than usual with at least 110 percent of average sunshine, while Buller, south Westland, Southland and south Canterbury all had between 105 and 110 percent of average sunshine.

Nelson was the sunniest centre recording 2,394 hours, followed closely by Blenheim with 2,334 hours, and then Tauranga with 2,318 hours.

Table 1.7. SUNSHINE HOURS

CityTotal hoursDeparture from averageComments
Auckland2,046+ 26Near average
Wellington2,105+ 61Slightly above average
Christchurch2,038- 19Near average
Dunedin1,783+ 185Much sunnier than usual

Floods. There were about twelve flood-producing rainfall events in New Zealand during 1995, some severe. On 29 March an hour of lightning preceded rainfall totalling 218 mm in the 6 hour period between 10.30am and 4.30pm in Whangarei City. On average, this amount of rainfall would normally occur only once every 100 years.

High intensity rainfall totalling 151 mm was recorded on 21 April in a 6 hour period in New Plymouth, with widespread flooding. Rainfall of that intensity has a return period of well over 100 years.

Heavy rainfall overnight 14 July, together with an abnormally high tide (partly due to extremely low atmospheric pressures, less than 980 hPa) raised water levels suddenly in Auckland, Waikato and Thames on the same day. This resulted in flooding in many areas, and a civil defence emergency was declared in Thames, where many homes were evacuated.

Heavy rain fell over a large part of southern New Zealand between 11 and 13 December. River levels rose rapidly with floodwaters inundating low-lying areas of Alexandra and Roxburgh (Central Otago), while abnormally high lake levels flooded the Queenstown shoreline area and threatened Wanaka residents. Major South Island rivers, such as the Waitaki and Clutha, as well as the Rangitata and Manuherikia rivers breached their banks in places.

The flooding was extensive in Alexandra (which recorded a 2-day rainfall of 103 mm) as the Clutha and Manuherikia rivers overflowed into low-lying parts of the town, and is believed to have been the worst in the 131-year history of the town.

A state of emergency was declared in the Hakataramea township (Waitaki Valley) where the stopbank was breached in a number of places and about 15 people were evacuated. The town's bridge was badly damaged. On the West Coast the Waiho bridge was washed out, leaving 200 tourists stranded at Franz Josef, with an Air Force helicopter running emergency services across the river. Franz Josef recorded a 2-day rainfall total of 592 mm, the highest there since records began in 1953.

Drought. Hawke's Bay rainfalls continued below average in January, for the eighth consecutive month. The drought ended in autumn.

This was the driest April on record in Dunedin, south Otago and Southland. Dunedin's April rainfall was the lowest since records began in 1853, Gore's since 1907 and Invercargill's since records began in 1900.

Heat wave. An exceptionally warm period occurred, with heat wave conditions in northern and eastern regions of the North Island from 1 to 8 December, and south western regions of the North Island from 21 to 23 December. Highest ever temperatures were measured at several centres including Levin, where the 28.5C on 21 December was the highest since records began in 1895.

SOUTHERN OSCILLATION INDEX
Air pressure recordings from Tahiti and Darwin

Record low temperatures. After a very cold southerly outbreak (at the end of June) left a widespread blanket of snow lying at low levels, an air temperature of −21.6C, the lowest New Zealand air temperature ever recorded, occurred at Ophir (Central Otago) during the early hours of the morning on 3 July. The previous extreme low air temperature for New Zealand (−19.7C) was also recorded at Ophir over the night of 1 July 1943.

A new all-time record low air temperature of −8.4C was recorded on 3 July at Queenstown, the lowest since records began in 1929.

Snowfalls. In early June 40 cars were trapped by heavy snow in the Hundalees area south of Cheviot, and many rural north Canterbury schools were closed. In mid June, late June and July there were further heavy snowfalls to low levels in the South Island.

Another bitterly cold southerly outbreak spread over New Zealand on 16 July, with snow to sea level in eastern North Island regions from Wellington to Gisborne, lying for the first time in living memory in Rotorua, and even seen on Kapiti Island. The Desert Road was closed for a record 10 days; Wellington region snowfall was the biggest since June 1976.

Again in September there were heavy snowfalls in inland south Canterbury, Otago and northwestern Southland (where major power cuts occurred), with about 50,000 lambs lost in the freezing weather; 50 cm fell at the Hermitage (Mt Cook), 45 cm at Tekapo, 40 cm in Te Anau. Snow also occurred in the Manawatu Gorge-Pahiatua Track area, the most in 20 years. More cold southerlies brought snow to high country areas in Southland, Otago and south Canterbury, with a further 50,000 lambs lost.

An antidote to snow—the hot pools at Hanmer Springs.

1.4 Wildlife and vegetation

The islands of New Zealand separated from their nearest neighbours over 80 million years ago. Some of the original inhabitants endured times of turbulent change and violent upheaval, evolving and adapting to become part of a unique natural biota (or region). Other species died out (either nationally or regionally), unable to compete or survive environmental disturbances such as the ice age. For example, coconut palms were once found in New Zealand, and kauri, now confined to the north of the North island, used to grow as far south as Canterbury. Over the years the earliest inhabitants were joined by other plants and animals carried across the oceans by wind and current.

This pre-human community was notable for the absence of snakes, land mammals (save three species of bat) and many of the flowering plant families. Whole orders and families are endemic (found only in New Zealand): tuatara, moa and kiwi, all of the native lizards, and all the native earthworms (nearly 200 species) to name just a few. Many remarkable plants, insects and birds evolved to fill the ecological niches normally occupied by mammals. Others diversified to fill the new territories created by sea-level fluctuations and land uplift. With no mammalian predators on the ground but avian predators everywhere, flightlessness was not a handicap nor was greater size. Moa (11 species, some up to 3 metres tall) became extinct in pre-European times, but many other large flightless birds still remain including kiwi, the nocturnal kakapo (the only flightless parrot in the world), and weka (of the rail family). Flightless insects are numerous including many large beetles and 70 or so endemic species of the cricket-like weta.

New Zealand has the most diverse seabird fauna of any country (76 species). Almost a third of all the native bird species depend on the ocean for food—the feeding zones of some extending as far south as the Antarctic continent. The extensive coastline and many islands, offer a huge variety of habitat, from estuary and mud-flat to rocky cliffs and boulder bank. The ocean itself is marvellously rich—there are about 400 different marine fish resident in the waters around New Zealand as well as various species of seal, dolphins and porpoises. Thirty-two species of whale have been recorded and three of the largest (sperm, humpback and right) regularly migrate here in spring and autumn.

The most widespread and complex type of forest in New Zealand is a podocarp (conifer) broadleaf association. It is generally found at lower altitude and is characterised by the variety of species, a stratified canopy and an abundance of vines and epiphytic plants. Beech and kauri forests, in contrast are much simpler in structure. New Zealand's beech species have close relatives in Australia and South America and the five different taxa here have exploited habitats from valley floor to mountain tops. Kauri, true forest giants, dominate only in the warmer climes to the north.

Some of the most specialised of plants are those occupying the alpine zone. A remarkable 25 percent of all New Zealand's plants can be found above the treeline. Ninety-three percent of all the alpine plants are endemic (compared with 80 percent for the rest of the higher plants). Snow tussock herb-fields are one of the most distinctive elements in this cold, windswept environment. Remarkably long-lived, larger specimen's may be several centuries old. Like beech trees they seed infrequently but in profusion.

A definitive feature of New Zealand's land based plants and animals is their degree of specialisation and narrow habitat requirements (eg takahe/tussock grasslands; blue duck/fast flowing rivers and streams). This specialisation, and the adaptations which make New Zealand's wildlife so unique, render them extremely vulnerable to introduced predators (such as rats and cats) and competitors (such as deer and possums) and loss of habitat.

Introduced vegetation and wildlife

The arrival of people in Aotearoa/New Zealand heralded times of rapid change. The introduction (intentionally or accidentally) of exotic plants and animals and the modification of habitat radically affected populations of native species. In the period following the arrival and expansion of Maori, forest cover was reduced and some 34 species became extinct including moa, the adzebill and the flightless goose. In the much shorter period of European settlement the area of forest was further reduced to around 25 percent of the land, 10 more birds became extinct and many more are threatened. The number of species introduced has escalated (since 1840 over 80 species of mammal, bird and fish and more than 1,600 plant species) in many places totally changing the landscape and ecology.

Table 1.8. SELECTED GROUPS OF NATIVE AND INTRODUCED SPECIES

GroupNumber of speciesPercentage endemic*
IntroducedNative

*Native species not found anywhere else.

†Estimated.

Source: Department of Conservation.

Marine algae3†900†43
Bryophytes—
     mosses851621
     liverworts5†525†..
Ferns and allies2618946
Conifers2820100
Flowering plants1,842†1,81384
Earthworms40178100
Land snails/slugs12520†99
spiders/harvestment602,500†90
Insects1,1009,460†90
Freshwater fish23†2785
Amphibia33100
Reptiles—
     land259100
     marine..5..
Birds—
     land/freshwater336557
     marine07637
Mammals—
     land333100
     marine1346

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 (UTC), and is named New Zealand Standard Time (NZST). It is an atomic standard maintained by the Measurement Standards Laboratory, a part of the crown research institute, Industrial Research Limited. One hour of daylight saving, named New Zealand Daylight Time (NZDT), which is 13 hours ahead of UTC, is observed from 2 am (NZST) on the first Sunday in October, until 2 am (NZST) 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 Institute of Geological and Nuclear Sciences Limited.

  • 1.3 National Institute of Water and Atmospheric Research Limited.

  • 1.4 Department of Conservation.

  • 1.5 Industrial Research Limited.

Special articles

Department of Internal Affairs and Victoria University of Wellington; Institute of Geological and Nuclear Sciences (IGNS); Brad Scott, Ian Nairn and the Ruapehu Surveillance Group, IGNS, Taupo; MetService Ltd; Steve Wood, NIWA, Lauder; NIWA; Tim Armstrong, Industrial Research Ltd.

Further information

Geography

Ward I (1976), New Zealand Atlas. Government Printer

Infomap Map Catalogue. Department of Survey and Land Information.

Geology

Braithwaite, RL and Piranjno, F (1993), ‘Metallogenic Map of New Zealand’, Institute of Geological & Nuclear Sciences Limited Monograph: 3, Institute of Geological and Nuclear Sciences Limited.

Brown, LJ and Weeber, JH (1992), Geology of Christchurch Urban Area, Map 1, Institute of Geological and Nuclear Sciences Limited.

Field, BD et al (1989), ‘Cretaceous and Cenozoic Sedimentary Basins and Geological Evolution of the Canterbury Region, South Island, New Zealand’, New Zealand Geological Survey Basin Studies: 2.

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

Kermode, LO et al (1992), Geology of Auckland Urban Area, Map 2, Institute of Geological and Nuclear Sciences Limited.

Lillie, AR (1980), Strata and Structure in New Zealand, Tohunga Press.

Nathan, S et al (1986), ‘Cretaceous and Cenozoic Sedimentary Basins and Geological Evolution of the West Coast Region, South Island, New Zealand’, New Zealand Geological Survey Basins Survey: 1.

Riddolls, PM (1987), New Zealand Geology—Containing Geological Maps of New Zealand 1:2,000 000, DSIR, Science Information Publishing Centre.

Searle, EJ (1981), City of Volcanoes, 2nd ed, Longman Paul.

Sewell, RJ, Weaver, SD and Reay MB (1993), Geology of Banks Peninsula, Map 3, Institute of Geological and Nuclear Sciences Limited.

Skinner, DNB et al (1993), Geology of Coromandel Harbour Area, Map 4, Institute of Geological and Nuclear Sciences Limited.

Smith, IEM, ed (1986), ‘Late Cenozoic Volcanism in New Zealand’, Royal Society of New Zealand Bulletin 23, Royal Society of New Zealand.

Soons, J and Selby, M, eds (1982), Landforms of New Zealand, Longman Paul.

Speden, IG and Keyes, IW (1980), Illustrations of New Zealand Fossils, DSIR Information Series 150, DSIR.

Stevens, GR (1985), Lands In Collision: Discovering New Zealand's Past Geography, DSIR Information Series 161, DSIR.

Stevens, GR (1980), New Zealand Adrift: The Theory of Continental Drift in a New Zealand Setting, AH & AW Reed.

Stevens, GR (1974), Rugged Landscape, AH & AW Reed.

Suggate, RP, Stevens, GR and Te Punga, MT, eds (1978), The Geology of New Zealand, 2 vols, Government Printer.

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

Turnbull, IM et al, (1993), ‘Cretaceous and Cenozoic Sedimentary Basins of Western Southland, South Island, New Zealand’, Institute of Geological and Nuclear Sciences Monograph: 1, Institute of Geological and Nuclear Sciences Limited.

Williams, GJ (1974), Economic Geology of New Zealand, AusIMM Monograph Series 4.

Wood, RA et al (1989), ‘Cretaceous and Cenozoic Geology of the Chatham Rise Region, South Island, New Zealand”, New Zealand Geological Survey Basin Studies: 3.

Tusked weta, about 55mm long, on Mercury Island. A new species of tusked weta was found in 1995 in the Ruakumara Wilderness Area, Bay of Plenty. The new weta, about 35mm long, appears to be strong enough to jump up to a metre.

Climate

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

Johnson, KF, Bibliography of New Zealand Meteorological Service Publications 1892-1985. New Zealand Meteorological Service, 1986.

Ward I (1976), New Zealand Atlas. Government Printer.

The National Institute of Water and Atmospheric Research (Environmental Data Division) operates an extensive climatological database and publishes the Monthly Climate Digest. NIWA also stocks regional climatologies, maps and other publications.

Vegetation and wildlife

Bishop, N and Gaskin, C (1992) Natural History of New Zealand. Hodder and Stoughton.

Dawson, J (1988) Forest Vines to Snow Tussocks: the Story of New Zealand Plants. Victoria University Press.

Enting, B and Molloy, L (1982) The Ancient Islands: New Zealand's Natural Environments. Port Nicholson Press.

King, CM (1984) Immigrant Killers. Oxford University Press.

Kuschel, G (1975) Biogeography and Ecology in New Zealand. W Junk.

Mead, M (1990) Forgotten Fauna. DSIR.

Molloy, L and Cubitt, G (1994) Wild New Zealand: the Wild Landscapes and Wildlife of New Zealand. New Holland.

Reader's Digest Services (ed Robertson, CJR) (1985) Reader's Digest Complete Book of New Zealand Birds. Reader's Digest: Reed Methuen.

Salmon, JT (1980) The Native Trees of New Zealand. Reed.

Salmon, JT (1992) A Field Guide to the Alpine Plants of New Zealand. Godwit.

Chapter 2. History

Team New Zealand's America Cup parade in Christchurch.

2.1 Chronology of main events in New Zealand history

c1300 Archaeological evidence indicates that Polynesian settlement was established by this date.

1642 Dutch explorer Abel Janszoon Tasman discovers a land he calls Staten Land, later named New Zeeland.

1769 British explorer James Cook makes the first of three visits to New Zealand, taking possession of the country in the name of King George III.

1790s Sealing, deep-sea whaling, the flax and timber trades begin, with some small temporary settlements. First severe introduced epidemic among Maori population.

1791 First visit by a whaling vessel, the William and Ann, to Doubtless Bay.

1806 First Pakeha women arrive in New Zealand.

1814 British missionary Samuel Marsden makes first visit to New Zealand. Anglican mission station established. Sheep, cattle, horses and poultry are introduced.

1815 Thomas Holloway King is the first Pakeha child born in New Zealand.

1819 Raids on Taranaki and Te Whanganui-a-tara regions by Ngapuhi and Ngati Toa people led by chiefs Patuone, Nene, Moetara, Tuwhare and Te Rauparaha.

1820 Hongi Hika, Ngapuhi chief, visits England, meets King George IV and secures supply of muskets.

1821 Musket wars begin with raids by Hongi Hika and Te Morenga on southern iwi and continue throughout the decade.

1822 Ngati Toa migration south to Cook Strait region, led by Te Rauparaha, begins.

1823 Jurisdiction of New South Wales courts is extended to British citizens in New Zealand. Wesleyan Missionary Society mission established. First Church of England marriage between Philip Tapsell and Maori girl, Maria Ringa.

1824 Te Heke Niho-puta migration of Taranaki iwi to the Kapiti Coast. Rawiri Taiwhanga in Bay of Islands sells dairy produce and other food supplies to visiting ships.

1827 Te Rauparaha's invasion of the South Island from Kapiti begins.

1830 First acorn planted at Waimate North where agricultural mission and school established.

1831 Whaling stations established at Tory Channel and Preservation Inlet.

1833 James Busby, appointed British Resident in New Zealand, arrives at the Bay of Islands.

1834 United Tribes' flag adopted by some 25 northern chiefs at Busby's suggestion.

1835 Declaration of Independence by the ‘United Tribes of New Zealand’ signed by 34 northern chiefs.

1837 New Zealand Association formed in London, becoming the NZ Colonisation Society in 1838 and the NZ Company in 1839, under the inspiration of Edward Gibbon Wakefield. William Colenso completes printing the New Testament in Maori, the first book printed in New Zealand.

1838 Bishop Pompallier founds Roman Catholic Mission at Hokianga.

1839 William Hobson instructed to establish British rule in New Zealand, as a dependency of New South Wales. Colonel William Wakefield of the New Zealand Company arrives on the Tory to purchase land for a settlement.

1840 New Zealand Company settlers arrive at Port Nicholson, Wellington. Treaty of Waitangi signed at Bay of Islands and later over most of the country. British sovereignty proclaimed. French settlers land at Akaroa. Hobson becomes first Governor and sets up executive and legislative councils.

1841 European settlements established at New Plymouth and Wanganui. Capital shifted from Kororareka to Auckland.

1842 Main body of settlers arrive at Nelson.

1843 Twenty-two European settlers and four Maori killed at a confrontation at Tua Marina, near the Wairau, in Marlborough. Robert FitzRoy becomes Governor.

1844 Hone Heke begins the ‘War in the North’. New Zealand Company suspends its colonising operations due to financial difficulties.

1845 George Grey becomes Governor.

1846 War in the North ends with capture of Ruapekapeka. First NZ Constitution Act passed. Heaphy, Fox and Brunner begin exploring the West Coast. First steam vessel, HMS Driver, arrives in New Zealand waters.

1848 Settlement founded by Scottish Otago Association. Provinces of New Ulster and New Munster set up under 1846 Act. Coal discovered at Brunner on the West Coast. Earthquake in Marlborough damages most Wellington buildings.

1850 Canterbury settlement founded.

1852 Second NZ Constitution Act passed creating General Assembly and six provinces with representative government.

1853 Idea of a Maori King canvassed by Tamihana Te Rauparaha and Matene Te Whiwhi.

1854 First session of the General Assembly opens in Auckland.

1855 Governor Thomas Gore Browne, appointed in 1854, arrives. Severe earthquake on both sides of Cook Strait, Adhesive, imperforate postage stamps on sale.

1856 Henry Sewell forms first ministry under responsible government and becomes first Premier. Edward Stafford forms first stable ministry.

1858 New Provinces Act passed. Te Wherowhero installed as first Maori King, taking name Potatau I.

1859 First session of Hawke's Bay and Marlborough provincial councils. Gold discovered in Buller River, New Zealand Insurance Company established.

1860 Waitara dispute develops into general warfare in Taranaki.

1861 Grey begins second governorship. Gold discovered at Gabriel's Gully; Otago goldrushes begin. First session of Southland provincial council. Bank of New Zealand incorporated at Auckland.

1862 First electric telegraph line opens—from Christchurch to Lyttleton. First gold shipment from Dunedin to London.

1863 War resumes in Taranaki and begins in Waikato when General Cameron crosses the Mangatawhiri stream. New Zealand Settlements Act passed to effect land confiscation. First steam railway in New Zealand opened.

1864 War in the Waikato ends with battle of Orakau. Land in Waikato, Taranaki, Bay of Plenty and Hawke's Bay confiscated. Gold discovered in Marlborough and Westland. Arthur, George and Edward Dobson are the first Pakeha to cross what becomes known as Arthur's Pass.

1865 Seat of government transferred from Auckland to Wellington. Native Land Court established. Maori resistance continues. Auckland streets lit by gas for first time.

1866 Cook Strait submarine telegraph cable laid. Christchurch to Hokitika road opens. Cobb and Co. coaches run from Canterbury to the West Coast.

1867 Thames goldfield opens. Four Maori seats established in parliament. Lyttleton railway tunnel completed. Armed constabulary established.

1868 Maori resistance continues through campaigns of Te Kooti Arikirangi and Titokowaru. New Zealand's first sheep breed, the Corriedale, is developed.

1869 New Zealand's first university, the University of Otago, is established.

1870 The last imperial forces leave New Zealand. Vogel's public works and immigration policy begins. New Zealand University Act passed, establishing a federal system which lasts until 1961. Vogel announces national railway construction programme; over 1000 miles constructed by 1879. First rugby match. Auckland to San Francisco mail service begins.

1871 Deer freed in Otago.

1872 Te Kooti retreats to the King Country and Maori armed resistance ceases. Telegraph communication links Auckland, Wellington and southern provinces.

1873 New Zealand Shipping Company established.

1874 First New Zealand steam engine built at Invercargill.

1876 Abolition of the provinces and establishment of local government by counties and boroughs. New Zealand-Australia cable established.

1877 Education Act passed, establishing national system of primary education.

1878 Completion of Christchurch-Invercargill railway.

1879 Triennial Parliaments Act passed. Vote is given to every male aged 21 and over. Kaitangata mine explosion, 34 people die. Annual property tax introduced.

1881 Parihaka community forcibly broken up by troops. Te Whiti, Tohu Kakahi and followers arrested and imprisoned. Wreck of SS Tararua, 131 people die. Auckland and Christchurch telephone exchanges open.

1882 First shipment of frozen meat leaves Port Chalmers for England on the Dunedin.

1883 Te Kooti pardoned, Te Whiti and other prisoners released. Direct steamer link established between New Zealand and Britain.

1884 King Tawhiao visits England with petition to the Queen, appealing to the Treaty, and is refused access. First overseas tour by a New Zealand rugby team, to New South Wales. Construction of King Country section of North Island main trunk railway begins.

1886 Mt Tarawera erupts and the Pink and White Terraces are destroyed; 153 people die. Oil is discovered in Taranaki.

1887 New Zealand's first national park, Tongariro, is presented to the nation by Te Heuheu Tukino IV. Reefton becomes first town to have electricity. First inland parcel post service.

1888 Birth of writer Katherine Mansfield.

1889 Abolition of non-residential or property qualification to vote. First New Zealand-built locomotive completed at Addington.

1890 Maritime Strike involves 8000 unionists. ‘Sweating’ Commission reports on employment conditions. First election on a one-man one-vote basis.

1891 John McKenzie introduces the first of a series of measures to promote closer land settlement. John Ballance becomes Premier of first Liberal Government.

1892 First Kotahitanga Maori Parliament meets.

1893 Franchise extended to women. John Ballance dies and is succeeded by Richard John Seddon. Liquor licensing poll introduced. Elizabeth Yates becomes first woman mayor, of Onehunga. Banknotes become legal tender.

1894 Compulsory arbitration of industrial disputes and reform of employment laws. Advances to Settlers Act. Clark, Fyfe and Graham become the first people to climb Mt Cook. Wreck of SS Wairarapa.

1896 National Council of Women is founded. Brunner Mine explosion, 67 people killed. Census measures national population as 743,214.

1897 First of series of colonial and later imperial conferences held in London. Apirana Ngata and others form Te Aute College Students' Association.

1898 Old Age Pensions Act. First cars imported to New Zealand.

1899 New Zealand army contingent is sent to the South African war. First celebration of Labour Day.

1900 Maori Councils Act passed. Public Health Act passed setting up Department of Public Health in 1901.

1901 Cook and other Pacific Islands annexed. Penny postage first used.

1902 Pacific cable begins operating between New Zealand, Australia and Fiji. Wreck of SS Elingamite.

1904 Richard Pearse achieves semi-controlled flight near Timaru.

1905 New Zealand rugby team tours England and becomes known as the All Blacks. Old Age Pension increases to £26 per year, however eligibility tightened.

1906 Seddon dies and is succeeded by Joseph Ward as Premier.

1907 New Zealand constituted as a Dominion. Fire destroys Parliament buildings.

1908 Auckland to Wellington main trunk railway line opens. Ernest Rutherford is awarded the Nobel Prize in Chemistry. New Zealand's population reaches 1 million.

1909 ‘Red’ Federation of Labour formed. SS Penguin wrecked in Cook Strait, 75 people die. Compulsory military training introduced. Stamp-vending machine invented and manufactured in New Zealand.

1910 Halley's Comet sighted in New Zealand.

1912 William Massey wins vote in the House and becomes first Reform Party Prime Minister. Waihi miners strike.

1913 Waterfront strikes in Auckland and Wellington.

1914 World War I begins and German Samoa is occupied. New Zealand Expeditionary Forces are despatched to Egypt. Huntly coal mine disaster, 43 people die.

1915 New Zealand forces take part in Gallipoli campaign. Reform and Liberal parties form National War Cabinet. Britain announces its intention to purchase all New Zealand meat exports during war.

1916 New Zealand troops transfer from Western Front. Conscription introduced. Labour Party formed. Lake Coleridge electricity supply scheme opened.

1917 Battle of Passchendaele—3,700 New Zealanders killed. Six o'clock public house closing introduced. Lord Liverpool becomes first governor-general.

1918 New Zealand Division in the Battle of the Somme. End of World War I. Influenza epidemic in which an estimated 8,500 die. Creation of power boards for electricity distribution. Prohibition petition with 242,001 signatures presented to Parliament.

1919 Women eligible for parliament. Massey signs Treaty of Versailles. First official airmail flight from Auckland to Dargaville.

1920 Anzac Day established. New Zealand gets League of Nations mandate to govern Western Samoa. First aeroplane flight across Cook Strait.

1921 New Zealand Division of Royal Navy established.

1922 Meat Producers' Board placed in control of meat exports.

1923 Otira tunnel opens. Ross Dependency proclaimed. Death of Katherine Mansfield.

1926 National public broadcasting begins under auspices of Radio Broadcasting Co. Ltd.

1928 New Zealand Summer Time introduced. General election won by new United Party. Kingsford-Smith completes first flight across Tasman sea.

1929 Depression deepens. Severe earthquake in Murchison-Karamea district, 17 people die. First health stamps issued.

1930 Unemployment Board set up to provide relief work.

1931 Newly formed Coalition Government under George Forbes wins general election. Hawke's Bay earthquake; 256 die. Substantial percentage reductions in public service wages and salaries. Airmail postage stamps introduced.

1932 Compulsory arbitration of industrial disputes abolished. Unemployed riots in Auckland, Dunedin and Christchurch. Reductions in oldage and other pensions.

1933 Elizabeth McCombs becomes first woman MP. Distinctive New Zealand coins first issued.

1934 Reserve Bank and Mortgage Corporation established. First trans-Tasman airmail.

1935 First Labour Government elected under Michael Joseph Savage. Air services begin across Cook Strait.

1936 Reserve Bank taken over by state. State housing programme launched. Guaranteed prices for dairy products introduced. National Party formed from former Coalition MPs. Inter-island trunk air services introduced. Jack Lovelock wins New Zealand's first Olympic gold. Jean Batten's record flight from England. Working week reduced from 44 to 40 hours.

1937 Federation of Labour unifies trade union movement. RNZAF set up as separate branch of armed forces.

1938 Social Security Act establishes revised pensions structure and the basis of a national health service. Import and exchange controls are introduced.

1939 World War II begins. Second New Zealand Expeditionary Force formed. Bulk purchases of farm products by Great Britain. HMS Achilles takes part in Battle of the River Plate.

1940 Michael Joseph Savage dies and is succeeded by Peter Fraser. Sidney Holland becomes Leader of Opposition. Conscription for military service. German mines laid across Hauraki Gulf.

1941 Japan enters the war. Maori War Effort Organisation set up. Pharmaceutical and general practitioner medical benefits introduced.

1942 Economic stabilisation. New Zealand troops in Battle of El Alamein. Food rationing introduced. Mobilisation of women for essential work.

1943 New Zealand troops take part in invasion of Italy.

1944 Australia-New Zealand Agreement provides for co-operation in the South Pacific.

1945 War in Europe ends on 8 May and in the Pacific on 15 August. New Zealand signs United Nations charter. Maori Social and Economic Advancement Act passed. National Airways Corporation founded.

1946 Family benefit of £1 per week becomes universal. Bank of New Zealand nationalised.

1947 Statute of Westminster adopted by New Zealand Parliament. First public performance by National Orchestra. Mabel Howard becomes first woman cabinet minister. Fire in Ballantyne's department store, Christchurch, 41 people die.

1948 Protest campaign against exclusion of Maori players from rugby tour of South Africa. Polio epidemic closes schools. Ruapehu and Ngauruhoe erupt. Meat rationing ends.

1949 Referendum agrees to compulsory military training. National Government elected. New Zealand gets first four navy frigates.

1950 Naval and ground forces sent to Korean War. Legislative Council abolished. Wool boom.

1951 Prolonged waterfront dispute—state of emergency proclaimed. ANZUS treaty signed between United States, Australia and New Zealand. Maori Women's Welfare League established.

1952 Population reaches over two million.

1953 First tour by a reigning monarch. Edmund Hillary and Sherpa Tenzing Norgay first to climb Mount Everest. Railway disaster at Tangiwai, 151 people die. World sheep-shearing record set by Godfrey Bowen.

1954 New Zealand signs South East Asia Collective Defence Treaty. Gains seat on United Nations Security Council. Social Credit gets 10 percent of vote in general election, but no seat in Parliament.

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

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

1957 National loses election; Walter Nash leads second Labour Government. Last hanging. Scott Base established in Ross Dependency. Court of Appeal constituted. Dairy products gain 10 years of unrestricted access to Britain.

1958 PAYE tax introduced. Arnold Nordmeyer's ‘Black Budget’. First geothermal electricity generated at Wairakei. First heart-lung machine used at Greenlane Hospital, Auckland.

1959 Antarctic Treaty signed with other countries involved in scientific exploration in Antarctica. Auckland harbour bridge opened.

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

1961 New Zealand joins the International Monetary Fund. Capital punishment abolished.

1962 New Zealand troops sent to Malaysia during ‘confrontation’ with Indonesia. Western Samoa becomes independent. Sir Guy Powles becomes first Ombudsman. New Zealand Maori Council established. Cook Strait rail ferry service begins. Taranaki gas well opens. Peter Snell establishes mile and half-mile record.

1964 Marsden Point oil refinery opens at Whangarei. Cook Strait power cables laid. Auckland's population reaches half a million.

1965 NAFTA agreement negotiated with Australia. Support for United States in Vietnam; New Zealand combat force sent, protest movement begins. Cook Islands becomes self-governing.

1966 International airport officially opens at Auckland. New Zealand labour force reaches one million. National Library of New Zealand created. Te Ata-i-rangi-kaahu becomes first Maori Queen.

1967 Referendum extends hotel closing hours to 10pm. Decimal currency introduced. Lord Arthur Porritt becomes first New Zealand-born Governor-General. Breath and blood tests introduced for suspected drinking drivers.

1968 Inter-island ferry Wahine sinks in severe storm in Wellington Harbour, 51 people die. Three die in Inangahua earthquake.

1969 Vote extended to 20-year-olds. National Government wins fourth election in a row. First output from Glenbrook Steel Mill.

1970 Natural gas from Kapuni supplied to Auckland.

1971 New Zealand secures continued access of butter and cheese to the United Kingdom. Nga Tamatoa protest at Waitangi celebrations. Tiwai Point aluminium smelter begins operating. Warkworth satellite station begins operation.

1972 Labour Government led by Norman Kirk elected. Equal Pay Act passed.

1973 Great Britain becomes a member of the EEC. Naval frigate despatched in protest against French nuclear testing in the Pacific. New Zealand's population reaches three million. Rugby tour of South Africa cancelled. Oil price hike means worst terms of trade in 30 years. Colour TV introduced.

1974 Prime Minister Norman Kirk dies. Commonwealth Games held in Christchurch.

1975 Robert Muldoon becomes prime minister after National election victory. Maori land march protests against land loss. The Waitangi Tribunal is established. Second TV channel starts broadcasting.

1976 Matrimonial Property Act passed. Pacific Island ‘overstayers’ deported. EEC import quotas for New Zealand butter set until 1980. Introduction of metric system of weights and measures. Subscriber toll dialling introduced.

1977 National Superannuation scheme begins. New Zealand signs the Gleneagles Agreement. The 200-mile exclusive economic zone is established. Bastion Point occupied by protesters.

1978 Registered unemployed reaches 25,000. National Government re-elected.

1979 Air New Zealand plane crashes on Mount Erebus, Antarctica; 257 people die. Carless days introduced to reduce petrol consumption.

1980 Social Credit wins East Coast Bays by-election. Saturday trading partially legalised. Eighty-day strike at Kinleith Mill.

1981 South African rugby team's tour brings widespread disruption.

1982 CER agreement signed with Australia. First kohanga reo established. Year-long wage, price and rent freeze imposed—lasts until 1984.

1983 Visit by nuclear-powered United States Navy frigate Texas sparks protests. Official Information Act replaces Official Secrecy Act. New Zealand Party founded.

1984 Labour Party wins snap general election. Finance Minister Roger Douglas begins deregulating the economy. New Zealand ratifies the United Nations Convention on the Elimination of All Forms of Discrimination Against Women. Te Hikoi ki Waitangi march and disruption of Waitangi Day celebrations. Auckland's population exceeds that of the South Island. Government devalues New Zealand dollar by 20 percent.

1985 Anti-nuclear policy leads to refusal of a visit by the American warship, the USS Buchanan. Greenpeace vessel Rainbow Warrior bombed and sunk by French agents in Auckland harbour. New Zealand dollar floated. Keri Hulme wins Booker Prize for The Bone People. First case of locally-contracted AIDS is reported. Waitangi Tribunal given power to hear grievances arising since 1840.

1986 Homosexual Law Reform Bill passed. Royal Commission reports in favour of MMP electoral system. Jim Bolger becomes National Party leader. Soviet cruise ship, the Mikhail Lermontov, sinks in Marlborough Sounds. Goods and Services Tax introduced. First visit to New Zealand by the Pope.

1987 Share prices plummet by 59% in four months. Labour wins general election. Maori Language Act making Maori an official language passed. Anti-nuclear legislation enacted. First lotto draw. New Zealand's first heart transplant is performed. New Zealand wins Rugby World Cup. Significant earthquake in the Bay of Plenty.

1988 Number of unemployed exceeds 100,000. Bastion Point land returned to Maori ownership. Combined Council of Trade Unions formed. Royal Commission on Social Policy issues April Report. Gibbs Report on hospital services and Picot Report on education published. State Sector Act passed. Cyclone Bola strikes northern North Island. Electrification of North Island's main trunk line completed. New Zealand Post closes 432 post offices. Fisheries quota package announced for Maori iwi.

1989 Prime Minister David Lange suggests formal withdrawal from ANZUS. Jim Anderton founds New Labour Party. Lange resigns and Geoffrey Palmer becomes Prime Minister. First annual balance of payments surplus since 1973. Reserve Bank Act sets bank's role as one of maintaining price stability. First school board elections under Tomorrow's Schools reforms. First elections under revised local government structure. Sunday trading begins. Third TV channel begins. Maori Fisheries Act passed.

1990 New Zealand celebrates its sesquicentennial. Maori leaders inaugurate National Congress of Tribes. Dame Catherine Tizard becomes first woman Governor-General. Geoffrey Palmer resigns as Prime Minister and is replaced by Mike Moore. National Party has landslide victory. Jim Bolger becomes Prime Minister. One and two cent coins are no longer legal tender. Commonwealth Games are held in Auckland. Telecom sold for $4.25 billion. Welfare payments cut. Big earthquake in Hawke's Bay.

1991 First budget of new Finance Minister, Ruth Richardson. Welfare payments further reduced. The Alliance Party is formed. Employment Contracts Act passed. Consumers Price Index has lowest quarterly increase for 25 years. Number of unemployed exceeds 200,000 for the first time. New Zealand troops join multi-national force in the Gulf War. An avalanche on Mt Cook reduces its height by 10.5 metres.

1992 Government and Maori interests negotiate Sealords fisheries deal. Public health system reforms. State housing commercialised. Watties Foods is bought by American company, Heinz. New Zealand gets seat on United Nations Security Council.

1993 Centennial of women's suffrage celebrated. New Zealand First Party launched by Winston Peters. National wins election without majority—Opposition MP Peter Tapsell becomes Speaker of the House, thus giving the Government a majority. Referendum favours MMP electoral system. New Zealand film The Piano has international success.

1994 Government commits 250 soldiers to frontline duty in Bosnia. Government proposes $1 billion cap in plan for final settlement of Treaty of Waitangi claims. Sharemarket reaches highest level since 1987 crash. New Zealand's first casino opens in Christchurch. First fast-ferry passenger service begins operation across Cook Strait.

1995 Team New Zealand wins America's Cup. Occupation of Moutua Gardens, Wanganui. Waikato Raupatu Claims Settlement Act passed. New political parties form: the Conservative, Christian Heritage and United New Zealand. Renewal of French nuclear tests results in New Zealand protest flotilla and navy ship Tui sailing for Moruroa Atoll. Commonwealth Heads of Government Meeting in Auckland, Nelson Mandela visits. New Zealand contingent returns from Bosnia.

2.2 Chronology 1995

January. Maori activists delay Television New Zealand's six o'clock news broadcast when they enter the Auckland studios in protest against the marginalisation of Maori programmes. Coach Geoff Howarth resigns ‘for the good of cricket’ with 15 months of his contract outstanding. Former Auckland Grammar School head John Graham is appointed commissioner of Nga Tapuwae College in South Auckland after the Minister of Education fires the school board. At a meeting of tribes in Turangi a thousand representatives unanimously reject the $1 billion fiscal envelope offered by government in place of settlement of Treaty claims.

February. The death of six people in a fire at the New Empire Hotel in Hamilton leads the coroner to call for a review of building and safety legislation for older buildings. Protests cause the formal Waitangi Day proceedings to be cancelled. Maori Council chair Graham Latimer and his farm company admit Inland Revenue Department charges and are fined $16,000. A scrub fire destroys part of the Kaimaumau wetlands near Kaitaia. World rowing champions Philippa Baker and Brenda Lawson are named the Halberg sportspersons of the year. Maori occupy Moutoa Gardens in Wanganui in support of the claim that it is the site of the former Pakaitore Marae and was wrongly taken by the Crown.

Cultural exports—Dame Kiri Te Kanawa with All Blacks in South Africa.

March. Parliament is criticised for granting the Auckland Warriors rugby league team an exemption from the ban on tobacco sales so that they can play their home games in the Winfield Cup competition. Jim Bolger becomes the first New Zealand prime minister in 11 years to be received at the Oval Office in Washington when he has a 45-minute meeting with President Clinton. Thunderstorms cause floods that result in $1 million of damage in Northland.

April. Chief Government Whip John Carter resigns after widespread condemnation of his impersonation of a Maori unemployment beneficiary, ‘Hone’, on fellow MP John Banks' talkback radio show. The government uses force to evict 23 Maori who had occupied the former Tamaki Girls' College in Auckland in protest at its being sold by the Crown. The High Court orders Social Welfare to review 65,000 mishandled applications for Special Benefit. A Department of Conservation viewing platform at Cave Creek on the West Coast collapses, killing 14 people.

May. Two thousand protesters clash with police at the Asian Development Bank conference in Auckland and thirty-five are arrested. Jim Anderton reclaims the Alliance leadership which he handed over to Sandra Lee in November 1995. David Bain is found guilty of killing his parents, two sisters and brother in 1994 and sentenced to life imprisonment. Black Magic, skippered by Russell Coutts, beats Dennis Conner's Stars and Stripes 5-0 to win the America's Cup. The 79-day occupation of Moutoa Gardens ends with government saying it will negotiate the land claim with the Whanganui iwi.

June. The Alliance retracts its support of the government and sponsors a no-confidence motion. The Nursing Council reviews the teaching of ‘cultural safety’ in polytechnic nursing courses. The All Blacks lose to South Africa 15-12 in the Rugby World Cup final in Johannesburg. Four National MPs join two Labour MPs to form the ‘mainstream’ United NZ Party.

July. The Desert Road is closed for a record nine and a half days as blizzards sweep through the country. Snowfalls in the South Island are the heaviest in 20 years with a record low of minus 21.6C at Ophir in Central Otago. Thirty-three houses are evacuated in Thames as floods cause $1 million damage. The Silver Ferns beat England to gain third place in the World Netball Championships. The All Blacks defeat Australia to take the Bledisloe Cup. Joseph Thompson confesses to being the South Auckland serial rapist and is sentenced to 30 years' jail.

August. The Navy research ship HMNZS Tui sails for Moruroa Atoll to spend 77 days with the flotilla of small craft protesting against renewed French nuclear tests. Court of Appeal judge Michael Hardie-Boys is appointed next Governor-General. Ross Meurant, leader of ROC (later called the Conservative Party) is fired as undersecretary for agriculture when he refuses to give up his directorship at the Russian Prok investment bank's New Zealand branch. The Ngati Whatua Trust Board buys the former Tamaki Girls' College in Auckland for $300,000. Kiwi Air, Hamilton, has first regular trans-Tasman flight as international airline.

September. New Zealand's Ambassador to Paris is recalled ‘as a mark of New Zealand's outrage’ at the first explosion in the French nuclear test series. The 107-year-old Takahue school is burned down when police evict land claim protesters. Mount Ruapehu causes skifields, roads and much of the flying zone over the central North Island to be closed as a series of eruptions sends ash, mud and rocks over a wide area. Invercargill police shoot dead Eric Gellatly, a thirty-five-year-old with schizophrenia who took a gun from a gun shop in a central business area.

October. Issue of a series of stamps depicting six well-known New Zealanders, voted for by the public. In the three-yearly local body elections, the mayors of Auckland and Christchurch are re-elected and Dunedin elects its first woman mayor. Three overseas tourists die when a hot air balloon falls into the sea near Christchurch. The government announces that the 1996 Waitangi Day celebrations will be held in Government house in Wellington rather than at Waitangi.

November. The Royal Assent to the $170 million Tainui Maori land settlement in compensation for lands confiscated in the 1884 is signed by the Queen and a full apology is given by the Crown. The Commonwealth Heads of Government meeting in Auckland condemns nuclear testing (not supported by Britain) and Nigeria's hanging of nine minority rights activists. South African President Nelson Mandela is warmly welcomed around the country. The Inquiry into the Cave Creek tragedy finds the lack of resources and proper systems in the Department of Conservation contributed to the disaster but does not blame any individuals. The Labour Party elects millionaire Michael Hirschfeld as its president.

December. John Barlow is sentenced to life imprisonment for the murders of Eugene and Gene Thomas in Wellington. The Department of Conservation's West Coast manager resigns in the wake of the Cave Creek tragedy. The first citizens initiated referendum on firefighting services, attracting only 27 percent voter turnout, leads the Government to say it wants a review of referenda. Air services are disrupted by air traffic controllers strikes. Torrential rain causes South Canterbury and Central Otago rivers to overflow and threaten homes and businesses.

Launch of Maori place-name maps.

Obituaries 1995

Harold Austad (b. 1900) When Harold Austad was made president for life of the New Zealand Olympic and Commonwealth Games Association in 1981, it was an indication of the respect he had earned as a longtime worker for New Zealand sport, including chairing the New Zealand Amateur Athletics Association's executive for 30 years. In 1960 he managed the New Zealand team to the Rome Olympics where Peter Snell and Murray Halberg both won gold medals. He held high offices in the Commonwealth Games Federation and the Association of National Olympic Committees, was awarded the Olympic Order Silver Medal by the International Olympic Committee, and was the first recipient of the New Zealand Olympic Order.

John Britten (b. 1950) Working from his Christchurch garage, John Britten built the motorcycle that caught the imagination of the world of bikes. Creating a revolutionary method that produced a chassis remarkable for its lightness and strength, his motorcycles set four world records and won several major titles, including the Daytona USA Battle of the Twins in 1994 and the international BEARS championship in 1995. When John Britten won the New Zealand superbike road racing series with a bike designed and made locally, it was an ambition he had long held. He is remembered with admiration for his ingenuity and passion, by many in and beyond the motorcycling circuit.

John Britten.

Morrie Davis (b. 1925) built a career as a skilled negotiator who paved the way for international air travel to and from New Zealand. He was instrumental in ensuring adequate airline facilities at the new Mangere airport and headed the selection team in the early 1970s when Air New Zealand was re-equipping with wide-bodied jets, acquiring the DC10s at a great saving to the airline. Morrie Davis had advanced to the position of chief executive at the time of the Erebus disaster in 1979. Justice Mahon's finding that the airline was responsible was a major setback for Air New Zealand and caused Morrie Davis to choose early retirement.

Relda Familton (b. 1943) For 17 years Relda Familton kept many New Zealanders company through what she called “the wee small hours,” as host from 1977 to 1994 of National Radio's all night programme. Her warm friendly voice was a familiar companion to a wide audience of appreciative listeners. Known also for her interest in dog breeding, Relda Familton first became a national figure as weather presenter on WNTV1 in 1964, then with Town and Around from 1967 to 1970, and for four years as television's racing presenter. In 1995 she was presented the Bill Toft Memorial Award as with Broadcaster of the Year.

Erich Geiringer (b. Vienna 1917) was a free thinker and a fighter on many fronts. As university lecturer, GP, writer, activist and talkback host he pursued reforms with a tenacity that brought him up against defenders of the status quo in many areas. Often at the forefront of popular thought, he campaigned among other causes for cervical smear testing in the early 1960s when the subject was taboo, for abortion law reform, and against nuclear weapons. A man of strong convictions, Erich Geiringer was a resolute member of the International Physicians for the Prevention of Nuclear War and international coordinator of the action against nuclear weapons taken by the WHO to the World Court in 1995.

Paul Gnatt (b. Vienna 1923) is remembered in the world of dance as the man who in 1953 founded New Zealand's ballet company. Trained in the Danish tradition, he first visited this country with the Borovansky Ballet of Australia and decided to settle here. As a teacher of ballet he influenced the development of many prominent New Zealand dancers. His other major gift to his adopted country was in taking ballet to the provinces. Paul Gnatt toured New Zealand with a small company of dancers and presented full-length ballets with very few props and a great deal of audience imagination.

Rangimarie Hetet (Ngati Kinokahu, Ngati Maniapoto) (b. 1892) was largely responsible for revitalising the disappearing art of Maori weaving. Her dedication to preserving and passing on the traditional skills and methods began at the request of the Maori Women's Welfare League in the 1950s. She was rewarded for the many years she gave to the cause by seeing new generations of weavers. Her love for the craft and strong determination kept her working into her 103rd year.

Bruno Lawrence (b. England 1941) Well-known actor and musician, Bruno Lawrence was part of popular contemporary culture in New Zealand. Drummer, actor and hippie, he was a founding member of many rock and jazz groups. The travelling Blerta bus became a familiar sight as it brought music, theatre and magic to the far reaches of the country. On the screen he became known for a variety of roles, including Smash Palace, The Quiet Earth and Utu. His was a face and a voice that summed up an era for many New Zealanders.

Eric McCormick (b. 1906) was a noted historian of New Zealand literature and art with a scholarly approach, an accessible writing style and an enthusiasm for New Zealand culture. In 1940 he wrote a centennial survey, Letters and Art in New Zealand, and from 1945 to 1947 was chief war archivist. Among his writings were two books on Frances Hodgkins and a biography of Alexander Turnbull. Eric McCormick also gave much of his time to communicating his knowledge to others, through WEA courses in the 1930s and as a lecturer at Leeds and Auckland universities.

Peter McIntyre (b. 1910) gained a wide-reaching reputation from his work as Official War Artist depicting New Zealanders in battle, from Crete to Italy, during World War 2. He forged a successful career as a full-time artist, becoming a house-hold name mainly for his realist landscapes of New Zealand, the Pacific and North America. A series of books of his paintings for which he also wrote the texts were sellouts.

Noel Mangin (b. 1931) A bass singer of world renown, Noel Mangin left New Zealand in 1963 and did not perform here again until 1993. In his international career he travelled widely throughout Europe and America in addition to longtime residencies with both the Hamburg State Opera, where he was given the prestigious rank of Kammersaenger, and the Victoria State Opera of Melbourne where he was based for the last 18 years. Best known for the role of Osmin, the unpleasant harem guard in Mozart's Il Seraglio, Noel Mangin had a voice that was rich in emotion and a stage presence that gained him international respect.

Brian Poananga (Ngati Porou) (b. 1924) Major-General Brian Poananga's military career spanned more than 30 years and culminated in his appointment as Chief of General Staff in 1978.

In 1974 he was seconded to the Ministry of Foreign Affairs for two years to set up New Zealand's first diplomatic mission to newly-independent Papua New Guinea. Remembered for his belief that the Army's main asset was people, Brian Poananga was proud of his Maori heritage, as shown by his final request to join his Ngati Porou iwi in the Turangarahui urupa.

Eru Pomare (Ngati Mutunga, Te Atiawa, Ngati Toa, Ngati Kahungunu, Rongowhakaata, Te Aitanga-a-Mahaki, Rongomai-wahine) (b. 1942) Wellington doctor and dean of Wellington Medical School, Eru Pomare used his considerable knowledge and skill to pass on to the public in general, and Maori in particular, the benefits of medical research. In the 1980s he introduced public awareness campaigns on melanoma and nutrition, an innovation that brought a new focus to the Cancer Society's work. Maori health was a priority for Eru Pomare. Concern at the gap between Maori and Pakeha levels of wellness prompted him to put much of his energy into correcting this anomaly.

Maui Pomare (Te Atiawa, Ngati Toa, Ngati Raukawa, Ngati Kahungunu, Rongowhakaata) (b. 1941) had a generosity and a commitment to Maori that meant his door was always open to the many who came seeking his extensive knowledge. Deeply involved with marae and various iwi boards, his expertise in whakapapa and Maori history, art and taonga were invaluable to the Museum of New Zealand: Te Papa Tongarewa and the Historic Places Trust. A man of quiet diplomacy, Maui Pomare was successful in securing the return of a number of tattooed Maori heads from museums and private collections overseas.

Gloria Rawlinson (b. Tonga 1918) arrived in New Zealand in the middle of a poliomyelitis epidemic. She was hospitalised for four years and spent the rest of her life in a wheelchair.

She first came to the attention of New Zealand readers through the publication of her poems, sometimes with illustrations by Minhinnick, in newspapers and magazines. She also wrote short stories, articles and a novel. Her home in Princess Street, Auckland, was a frequent gathering place for local writers. An article in 1935 by Robin Hyde celebrated the young poet. Gloria Rawlinson arranged an edition of Robin Hyde's poems in 1952 and worked for many years on a biography of her friend. In the 1960s she revisited the Pacific Islands and many of her writings describe their sensual beauty that affected her deeply.

Geoffrey Roberts (b. 1906) A former president of the International Air Transport Association and an honorary fellow of the Royal Aeronautical Society of London, Geoffrey Roberts had a lifelong and influential connection with aviation. After distinguished World War 2 service with the RNZAF he was appointed general manager of TEAL (Tasman Empire Airlines Limited), which later became the international branch of Air New Zealand. He acted as director and ultimately chairman of Air New Zealand from 1958 until his retirement in 1975.

Bill Rowling.

Wallace (Bill) Rowling (b. 1927) Bill Rowling was chosen to head the Labour government after the sudden death of Norman Kirk in September 1974, but was Prime Minister for only fifteen months until the 1975 election. Bill Rowling was an honest, strong and pragmatic politician who led the country through the difficult times of ‘oil shock’ and resultant economic crisis. A former teacher, Army education officer, university lecturer and Fulbright fellow, he entered politics in the early 1960s as MP for Tasman and in 1970 became president of the Labour Party. Bill Rowling was the first qualified economist to serve as Finance Minister. Leader of the Opposition from 1975 to 1983, he retired the next year, served a three-year term as ambassador in Washington, and remained active in public affairs.

Spencer Russell (b. 1923) In 1984 Spencer Russell was invited by Prime Minister Robert Muldoon to be the first ‘outside’ Governor of the Reserve Bank. Forty years in banking gave him a sound knowledge of his field and the confidence to pursue what he saw as necessary changes in the face of strong opposition. His support for financial reforms brought Spencer Russell into conflict with the Prime Minister who had recommended him. He oversaw the 20 percent devaluation in July 1984, removal of financial sector controls, liberalisation of the banking system and a new market-based style of monetary policy.

Fred Shailes (b. 1923) had a long public service career in finance, in the 1970s introducing major changes to the way government expenditures were controlled. As Controller and Auditor-General from 1975 Fred Shailes improved Audit Office efficiency and financial management in government departments. He questioned the Muldoon government's use of borrowed funds to meet daily expenditure in 1982, and government spending on the Clyde Dam in 1982-83.

Colin Urquhart (b. 1908) held senior positions in the police force at a time when it was entering an era of change. He oversaw centralisation, the closing of small stations and increased motorisation of police patrols in his capacity as deputy commissioner and then commissioner of police. It was his responsibility to implement the recommendations of the National Survey of Police Stations' report to Parliament in 1969 which introduced policing methods still used today.

Ivan Vodanovich (b. 1930) As player, coach, All Black selector and NZRFU councillor Ivan Vodanovich was dedicated to the promotion of rugby and an active supporter of Maori rugby. When there was a world-wide move to use boycotts as a form of pressure against South African apartheid, he held a controversial stance in favour of sports contact. Ivan Vodanovich was instrumental in introducing coaching films into rugby training.

Gordon Walters (b. 1919) Acclaimed as a pioneer of non-objective art in New Zealand, Gordon Walters found much of his inspiration in Maori and Pacific Islands imagery. After studying in Australia and Europe, he returned to New Zealand in 1954 and remained here, working as a commercial artist with the Government Printing Office until launching his successful career as a full-time artist. His use of the koru became an identifying feature.

Bill White (b. Australia 1891) came to New Zealand in 1910. Aged 104 when he died, Bill White attributed his long life to his ability to keep his head up and his tail down. He served in both world wars, receiving many military decorations. He was a stretcher bearer with the force that landed on the beaches of Gallipoli in 1915, but said he never saw the sense in war.

Freda White (b. 1909) Freda White's unconventionality and her big heart made her legendary as a colourful character in racing circles. Her love of horses allowed for no fear and she rode all the difficult horses in trackwork for some of Palmerston North's leading trainers in the early days before setting up on her own. The best known among the many horses to carry her colours was Teak, bred, owned and trained by her. Winner of the Grand National and Wellington steeples, Teak was just on 16 and due to retire when he won the 1974 Hawke's Bay Steeplechase at his seventh attempt.

Ria Wi Neera (Ngati Toa) (b. 1900) Ria Wi Neera, or Aunty Leah as she was known, lived most of her life next to the Takapuwahia marae and in the midst of her whanau. Great-granddaughter of the eminent Ngai Tahu chieftain Taiaroa who fought Te Rauparaha at Kaiapoi, she married a direct descendant of Te Rauparaha in an arranged marriage designed to cement good will between Ngai Tahu and Ngati Toa. Ria Wi Neera was a revered kuia, an active participant in tribal and marae events and a founding member of the Maori Women's Welfare League.

Contributors

  • 2.1-2.2 Statistics New Zealand.

Chapter 3. Government

A break from tradition: Dunedin's new Mayor is a woman, Indian, and a green.

3.1 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. Five years earlier on 28 October 1835, an assembly of the Confederation of Tribes of New Zealand had proclaimed the country independent and signed the ‘Declaration of Independence’. 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.

SOVEREIGNS OF NEW ZEALAND
MonarchAccessionDiedAgeReigned (years)
* Abdicated; reigned 325 days.
House of Hanover
Victoria183719018163
House of Saxe-Coburg
Edward VII19011910689
House of Windsor
George V191019367025
Edward VIII*1936......
George VI193619525615
Elizabeth II1952   

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.

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.

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 controlled proceedings in Parliament and cases of Government members voting with the Opposition were uncommon.

Government House hosts hundreds of orchestral fans.

Table 3.1. VICE-REGAL REPRESENTATIVES

Vice-regal representative*Assumed officeRetired
* Honours are specified only if held on retirement from office.
Dependency
Lieutenant-Governor
Captain William Hobson, RN30 Jan 18403 May 1841
Crown colony
Governor
Captain William Hobson, RN3 May 184110 Sep 1842
Captain Robert FitzRoy, RN26 Dec 184317 Nov 1845
Captain George Grey18 Nov 184531 Dec 1847
Governor-in-Chief
Sir George Grey, KCB1 Jan 18487 Mar 1853
Self-governing colony
Governors of New Zealand
Sir George Grey, KCB7 Mar 185331 Dec 1853
Colonel Thomas Gore Browne, CB6 Sep 18552 Oct 1861
Sir George Grey, KCB4 Dec 18615 Feb 1868
Sir George Ferguson Bowen, GCMG5 Feb 186819 Mar 1873
Rt Hon Sir James Fergusson, Bt,14 Jun 18733 Dec 1874
Marquess of Normanby, GCB, GCMG, PC9 Jan 187521 Feb 1879
Sir Hercules George Robert Robinson, GCMG17 Apr 18798 Sep 1880
Hon Sir Arthur Hamilton Gordon, GCMG29 Nov 188023 Jun 1882
Lieutenant-General Sir William Francis Drummond Jervois, GCMG, CB20 Jan 188322 Mar 1889
Earl of Onslow, GCMG2 May 188924 Feb 1892
Earl of Glasgow, GCMG7 Jun 18926 Feb 1897
Earl of Ranfurly, GCMG10 Aug 189719 Jun 1904
Lord Plunket, GCMG, KCVO, KBE20 Jun 19047 Jun 1910
Dominion
Lord Islington, KCMG, DSO, PC22 Jun 19102 Dec 1912
Earl of Liverpool, GCMG, MVO, PC19 Dec 191227 Jun 1917
Governors-General of New Zealand
Earl of Liverpool, GCB, GCMG, GBE, MVO, PC28 Jun 19177 Jul 1920
Viscount Jellicoe, GCB, OM, GCVO27 Sep 192026 Nov 1924
General Sir Charles Fergusson, Bt, GCMG, KCB, DSO, MVO13 Dec 19248 Feb 1930
Viscount Bledisloe, GCMG, KBE, PC19 Mar 193015 Mar 1935
Viscount Galway, GCMG, DSO, OBE, PC12 Apr 19353 Feb 1941
Marshal of the Royal Air Force Sir Cyril Louis Norton Newall, GCB, OM, GCMG, CBE, AM22 Feb 194119 Apr 1946
Lieutenant-General the Lord Freyberg, VC, GCMG, KCB, KBE, DSO17 Jun 194615 Aug 1952
Lieutenant-General the Lord Norrie, GCMG, GCVO, CB, DSO, MC2 Dec 195225 Jul 1957
Viscount Cobham, GCMG, TD5 Sep 195713 Sep 1962
Brigadier Sir Bernard Fergusson, GCMG, GCVO, DSO, OBE9 Nov 196220 Oct 1967
Sir Arthur Espie Porritt, Bt GCMG, GCVO, CBE1 Dec 19677 Sep 1972
Sir (Edward) Denis Blundell, GCMG, GCVD, KBE, QSO27 Sep 19725 Oct 1977
Rt Hon Sir Keith Jacka Holyoake, KG, GCMG, CH, QSO26 Oct 197727 Oct 1980
Hon Sir David Stuart Beattie, GCMG, GCVO, QSO, QC6 Nov 198010 Nov 1985
His Excellency The Most Reverend Sir Paul Alfred Reeves, GCMG, GCVO20 Nov 198529 Nov 1990
Her Excellency Dame Catherine Tizard, GCMG, GCVO, DBE, QSO13 Dec 19903 Mar 1996
His Excellency The Rt Hon Michael Hardie Boys, GCMG21 Mar 1996-

Recent constitutional reform

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 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 (MMP) 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.

In a second referendum held in conjunction with the 1993 general election, 1,917,883 voters chose between the present first past the post system and mixed member proportional representation. The result is shown in table 3.14. Provision for that referendum was made in the Electoral Referendum Act 1993, and details of the MMP system are set out in that act.

Human Rights Act 1993. The Human Rights Act came into force on 1 February 1994. It amalgamates the Race Relations Act 1971 and the Human Rights Commission Act 1977 and adds five new prohibited grounds of discrimination. There are now 13 prohibited grounds of discrimination: sex, marital status, religious belief, ethical belief, colour, race, ethnic or national origins, disability, age, political opinion, employment status, family status and sexual orientation. The areas in which it is unlawful to discriminate are the same as in the former legislation: employment; access to places, vehicles and facilities; provision of goods and services; provision of land, housing and other accommodation; and access to educational establishments. The act also contains provisions relating to racial disharmony, sexual harassment, and racial harassment.

The act introduces new procedures to assist with the resolution of complaints. The Human Rights Commission is restructured and now includes a Complaints Division to deal specifically with complaints. After investigating a complaint the Complaints Division may call a compulsory conference in order to identify the matters in issue between the parties and to explore the possibility of reaching an amicable settlement. Where a complaint cannot be settled and proceedings are commenced before the Complaints Review Tribunal the chairperson of the tribunal has the power to make interim orders to preserve the position of the parties pending final determination of the proceedings. If a party is dissatisfied with the decision of the tribunal and appeals to the High Court, there is now a further right of appeal to the Court of Appeal on a question of law.

3.2 Parliament and the Cabinet

House of Representatives

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

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

The Constitution Act 1986 forbids the House to allocate public funds for any purpose unless first recommended by the Crown. At the same time, the law forbids the Crown to tax citizens without express parliamentary approval. Private members are now able under Standing Orders to initiate proposals involving expenditure or taxation but the Government has an absolute right to veto such proposals if in its view they would have more than a minor impact on the Government's fiscal aggregates. Until the Constitution Act is amended, a positive recommendation from the Crown will still be required before the House may pass a bill making an appropriation.

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. Unless there is a new session, at the commencement of business in the second and third years of the parliamentary term, the Prime Minister's statement reviews public affairs and outlines the Government's legislative and other policy intentions for the year ahead.

The Speaker, elected by the House, is the principal presiding officer, maintaining order in proceedings and ensuring 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.

Standing orders. On 20 December 1995 the House of Representatives adopted new Standing Orders, or rules of procedure, and these were brought into force on 20 February 1996. The new Standing Orders have been adopted in anticipation of a House of Representatives to be elected under the Mixed Member Proportional System (MMP) at the general election due in 1996. The background to the changes is set out in the Report of the Standing Orders Committee on the Review of Standing Orders (Parl paper I. 18A, 1995).

Role of parties. It has been the role of the opposition party with the highest number of seats to present itself to the people as an alternative government, attacking government policy and attemptimg to demonstrate inefficiency, and government or departmental mismanagement. Under an electoral system providing majority governments it has been 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 has been characterised by two large, dominant parties, with the majority party forming the Government and the minority party forming the Opposition. In recent years, however, members of other parties 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 or have formed new parties.

It is less likely under MMP that any single party will command an absolute majority in the House and be able to form a government on its own account. The new Standing Orders provide expressly for parties to be recognised in the House. This is reflected in various procedures, for instance in relation to voting. The principal of proportionality to party membership in the House is accorded weight, such as for participation in debate and the asking of oral questions.

Because of 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 3.2. SEATS HELD BY POLITICAL PARTIES AFTER GENERAL ELECTIONS

ElectionTotalLiberalConservativeLabourOthersIndependent

*Country Party

† Ratana

‡ Social Credit/Democrats.

§ New Labour

|| Includes Speaker of the House.

¶ Two Alliance, two NZ First.

18907438 25  7
18937451 13  6
18967439 25  6
189974 4919  2
19028047 19  10
19058058 16  6
   Reform    
19088050 261 3
19118033 374 6
19148033 416 0
19198021 478 4
19228022 3717 4
19258011 5512 2
19288027 27191*6
   Coalition    
193180 51 241*4
   National    
193580 19 53+2†2*4
193880 25 53 2
194380 34 45 1
194680 38 42  
194980 46 34  
195180 50 30  
195480 45 35  
195780 39 41  
196080 46 34  
196380 45 35  
196680 44 351‡ 
196984 45 39  
197287 32 55  
197587 55 32  
197892 51 401‡ 
198192 47 432‡ 
198495 37 562‡ 
198797 40 57  
199097 67 29 
199399 50 45|| 

Party representation. Since the 1993 general election the number of seats held by parties in the House of Representatives has changed as a result of eight members from National and three from Labour forming or joining new parties. The position as at 30 April 1996 was as follows: National, 41; Labour, 41; United New Zealand, 7; New Zealand First, 4; Alliance, 2; Christian Democrats, 1; New Zealand Conservative, 1; Independent, 1; vacant, 1.

The governing party, National, and United New Zealand entered into a coalition on 28 February 1996, while Christian Democrats continued to be Government-aligned.

The first change since the general election occurred in September 1994 when a member left National to become Right of Centre (subsequently renamed New Zealand Conservative) but maintained a coalition arrangement with the Government.

In October 1994 a member left Labour to be an independent and then formed Future New Zealand in November 1994. In May 1995 a further member left National, to launch the Christian Democrats. Another member left National to join the New Zealand Conservative member in June 1995 and in the same month United New Zealand was formed by 7 members, 4 of them from National, 2 from Labour (one latterly Future New Zealand). In February 1996 the founding member of the New Zealand Conservatives became an independent and in March 1996 an eighth member left National to join the two New Zealand First members.

In April 1996 a ninth member left National and a fourth member left Labour, both joining New Zealand First, but the former National member who had joined New Zealand First in March resigned from the House.

By-elections. A by-election was held in the Selwyn Electoral District on 13 August 1994 following the resignation of the Honourable Ruth Richardson. David Carter was elected and, having been sworn, took his seat in the House of Representatives on 25 August 1994.

Legislative procedures. Proposed laws are presented to the House of Representatives in the form of draft laws known as “bills”. Classes of bills are: public bills, which deal with matters of public policy, most of them being Government bills but a number being non-ministerial Members' bills; local bills, which are promoted by local authorities to give them special powers or validate unlawful actions they may have taken and which affect particular localities; and private bills, promoted by individuals or bodies (such as companies or trusts) for their particular interest or benefit.

The Queen's silver-plated key to the 90-year-old bronze gates of the refurbished Parliament building.

All types of bills follow a similar procedure in the House, with every bill being required by the Standing Orders of the House to be “read” three times. A local bill or a private bill must also comply with prescribed preliminary procedures, which entail advertising the bill before its introduction into the House. The number of Members' bills that may be introduced and proceed at any one time to second reading is limited to three, chosen by ballot.

Under the new Standing Orders a bill is introduced by being read a first time without any question put. The bill is then set down for second reading on the third sitting day following the first reading. The second reading of a bill is directed to the principals and objects of the bill. Debate on the second reading is limited to 12 speeches, in the case of a Government bill, or 6 speeches for other bills, of 10 minutes each.

After its second reading a bill is referred to a select committee of the House for consideration unless it is an Appropriation Bill, an Imprest Supply Bill, or a bill that has been accorded urgency for its passing. Formerly, bills were referred to a select committee directly after their first reading but that now happens only where in certain circumstances a bill is introduced while the House is adjourned.

Select committee consideration of bills provides an opportunity for the public and interested bodies to make submissions in the expectation that better law will result. Committees also carry out scrutiny functions in relation to such matter as estimates, financial reviews and petitions. A committee must now finally report to the House on a bill within 6 months of the bill being referred to it, unless the House extends that time. In its report recommending amendments to a bill, the committee must distinguish between those adopted unanimously by the committee and those adopted by a majority.

Following presentation of a select committee report on a bill, the report is set down for consideration on the third sitting day following. At the conclusion of the debate on the report the House decides whether to agree to the amendments recommended by the select committee by majority. The House then decides whether the bill should proceed.

A bill which the House agrees should proceed is set down for consideration in a committee of the whole House next sitting day, unless the Business Committee decides that the bill does not require consideration in committee. “In committee” the bill is considered clause by clause.

Once a bill has been fully considered by the committee it is reported to the House with any amendments that have been agreed to. The House having adopted the report, the bill is then set down for third reading next sitting day. Debated on the third reading is limited to 12 speeches of 10 minutes each.

After a third reading has been given, the bill that has been passed by the House is forwarded to the Governor-General for the Royal assent. The bill then becomes an Act of Parliament and part of the law of New Zealand.

Sessions of Parliament. The first session of the 44th New Zealand Parliament was called following the General Election of 6 November 1993, and began sitting on 21 December 1993.

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 Service Commission which consists of the Speaker of the House of Representatives as chairperson, and six members, three of whom are members of the Government and three from the Opposition.

Table 3.3. PARLIAMENTARY SESSIONS

ParliamentPeriod of session
Source: Clerk of the House of Representatives.
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 1991-30 September 1993
Forty-fourth21 December 1993

Table 3.4. SUMMARY OF PARLIAMENTARY PROCEEDINGS

 1990†1991‡1991-93§1993-95*

*First session, forty-fourth Parliament to 20 December 1995. Session not complete at that date.

† Second session, forty-second Parliament.

‡ First session, forty-third Parliament.

§ Second session, forty-third Parliament.

Source: Clerk of the House of Representatives.

Sitting days5610224148
Government Bills
Introduced431215099
Referred to select committees33912464
Members' Bills
Introduced303118
Referred to select committees403218
Local Bills
Introduced502515
Referred to select committees502515
Private Bills
Introduced30118
Referred to select committees30118

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.

  • 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 refurbish Parliament House and the Parliamentary Library. The project began in August 1992 and it was completed, at an estimated cost of $164 million, in time for members to occupy the restored building for the 1996 parliamentary year. The building was opened by Queen Elizabeth II on 2 November 1995.

Salaries and allowances of parliamentarians. These are set out in table 3.5 below. An electorate allowance is also paid at a rate dependent on the nature of each member's electorate, eg 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 $125 for each night a member requires overnight accommodation away from home by reason of such attendance. Instead of receiving night allowances for each night spent in Wellington on parliamentary business, a member may elect to receive a Wellington accommodation allowance to cover costs incurred in retaining or maintaining accommodation. The maximum amount that can be claimed in a period of six months is $6,875.

Table 3.5. PARLIAMENTARY AND MINISTERIAL SALARIES AND ALLOWANCES

 Annual salary or allowance payable from 1 July 1995*

* Parliamentary Salaries and Allowances Determination S.R. 1995/266.

Source: Clerk of the House of Representatives.

Salaries$
Members of the Executive
Prime Minister185,500
Deputy Prime Minister141,500
Minister of the Crown with portfolio in Cabinet126,000
Minister of the Crown with portfolio outside Cabinet120,000
Minister of the Crown without portfolio97,000
Parliamentary Under-Secretary97,000
Officers of the House of Representatives
Speaker126,000
Deputy Speaker and Chairman of Committees100,000
Deputy Chairman of Committees77,500
Leader and Deputy of the Opposition
Leader of the Opposition126,000
Deputy Leader of the Opposition97,000
Whips
Senior Government Whip86,500
Senior Opposition Whip86,500
Junior Government Whip81,500
Junior Opposition Whip81,500
Members of Parliament
Member of Parliament72,500
Allowances
Prime Minister29,500
Deputy Prime Minister13,000
Minister of the Crown with portfolio12,000
Minister of the Crown without portfolio9,500
Parliamentary Under-Secretary9,500
Minister of Foreign Affairs and Trade (additional)6,000
Speaker—basic expenses allowance12,000
     additional allowance8,500
Deputy Speaker or Chairman of Committees—basic expenses allowance9,500
     additional allowance7,500
Deputy Chairman of Committees—basic expenses allowance6,750
     additional allowance1,000
Leader of the Opposition—basic expenses allowance12,000
Deputy Leader of the Opposition—basic expenses allowance6,750
     additional allowance4,800
Members—basic expenses allowance6,750

Members of Parliament.Table 3.6 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 3.6. PARLIAMENTARY REPRESENTATION

Percentage of total Members of Parliament*Percentage of total voting age population†

* As at 1 January 1995.

† 1991 Census figures.

Source: Clerk of the House of Representatives.

Women21.251.4
Age groups, both sexes—
     18-29 years027.3
     30-391321.4
     40-495217.5
     50-592712.3
     60 years and over821.5

WOMEN IN PARLIAMENT

Table 3.7 lists members of the House of Representatives during the 44th Parliament. The final results of the 1993 General Election were printed in the report The General Election (printed as Parl paper E9).

Table 3.7. HOUSE OF REPRESENTATIVES, FORTY-FOURTH PARLIAMENT (as at 30 April 1996)

Prime Minister—Rt Hon JB Bolger.
Leader of the Opposition—Rt Hon Helen Clark.
Speaker—Hon PW Tapsell.
Deputy Speaker —RJ Gerard.
Clerk of the House—DG McGee.
Member*Year of birthPrevious occupationElectorateParty

* Names are given by which individual members prefer to be addressed.

† Government coalition.

‡ Made Knight Bachelor 18 May 1994.

§ Restoration of title ‘Honourable’ announced 10 February 1994.

|| Resigned 18 July 1994. Resigned on 29 April 1996.

¶ Elected in by-election 13 August 1994.

Source: Clerk of the House of Representatives.

Anderson, Robert†1936FarmerKaimaiNational
Anderton, Jim1938Company directorSydenhamAlliance
Austin, Hon Margaret†1933TeacherYaldhurstUnited New Zealand, elected as Labour
Banks, Hon John†1946RestaurateurWhangareiNational
Barker, Rick1951Trade unionistHastingsLabour
Birch, Rt Hon WF†1934Consultant surveyor-engineerFranklinNational
Blincoe, John1952Research officerNelsonLabour
Bolger, Rt Hon JB†1935FarmerKing CountryNational
Bradford, Mr Max†1942Secretary-General and consultantTaraweraNational
Braybrooke, Geoff1935Sales managerNapierLabour
Burdon, Hon Philip†1939Company directorFendaltonNational
Burton, Mark1956Community education organiserTongariroLabour
Carter, Christopher1952TeacherTe AtatuLabour
Carter, David†¶1952Businessman/farmerSelwynNational
Carter, John†1950Local government officerFar NorthNational
Caygill, Hon David1948Barrister and solicitorSt AlbansLabour
Clark, Rt Hon Helen1950University lecturerMt AlbertLabour
Cliffe, Bruce†1946Managing directorNorth ShoreUnited New Zealand, elected as National
Cooper, Hon Warren†1933MotelierOtagoNational
Creech, Hon Wyatt†1946AccountantWairarapaNational
Cullen, Hon Dr Michael1945University lecturerSt KildaLabour
Dalziel, Lianne1960Trade unionistChristchurch CentralLabour
Dunne, Hon Peter†1954Deputy chief executive officerOnslowUnited New Zealand, elected as Labour, became Future New Zealand
Duynhoven, Harry1955TeacherNew PlymouthLabour
Dyson, Ruth1957Employment consultantLytteltonLabour
East, Hon Paul†1946Barrister and solicitorRotoruaNational
Elder, Jack1949TeacherHendersonNZ First, elected as Labour
English, Hon Bill†1961FarmerWallaceNational
Falloon, Hon John†1942Farm management consultantPahiatuaNational
Field, Taito Phillip1952Trade unionistOtaraLabour
Fletcher, Chris†1955ManagerEdenNational
Gallagher, Martin1952Local authority memberHamilton WestLabour
Gardiner, Pauline†1947DirectorWellington-KaroriUnited New Zealand, elected as National
Gerard, Jim†1937FarmerRangioraNational
Goff, Hon Phil1953University lecturerRoskillLabour
Graham, Hon DAM†1942Barrister and solicitorRemueraNational
Gray, Hon Sir Robin†‡§1931FarmerCluthaNational
Gresham, Hon Peter†1933AccountantWaitotaraNational
Hawkins, George1946TeacherManurewaLabour
Henare, Tau1961Advisory officerNorthern MaoriNZ First
Hilt, Peter†1942Company directorGlenfieldUnited New Zealand, elected as National
Hodgson, Pete1950VeterinarianDunedin NorthLabour
Hunt, Rt Hon Jonathan1938TeacherNew LynnLabour
Keall, Judith1942ConsultantHorowhenuaLabour
Kelly, Graham1941Trade unionistPoriruaLabour
Kidd, Hon Doug†1941Barrister and solicitorMarlboroughNational
King, Hon Annette1945Chief executive officerMiramarLabour
Kyd, Warren†1939Barrister and solicitorHaurakiNational
Lange, Rt Hon David, CH1942Barrister and solicitorMangereLabour
Laws, Michael||1957Public relations consultantHawke's BayNZ First, elected as National
Lee, Hon Graeme§1935Company directorMatakanaChristian Democrats, elected as National
Lee, Sandra1952Local authority memberAuckland CentralAlliance
Luxton, Hon John†1946FarmerMatamataNational
Mackey, Janet1953Real estate agentGisborneLabour
McCardle, Peter1951Public servantHeretaungaNZ First, elected as National
McClay, Hon Roger†1945TeacherWaikaremoanaNational
McCully, Hon Murray†1953Public relations consultantEast Coast BaysNational
McKinnon, Rt Hon Don†1939Real estate agentAlbanyNational
McLauchlan, Joy†1948Executive officerWestern HuttNational
Maharey, Steve1953University lecturerPalmerston NorthLabour
Mallard, Trevor1954Executive assistantPencarrowLabour
Marshall, Hon Denis†1943Farmer and company directorRangitikeiNational
Matthewson, Hon Clive†1944Civil engineerDunedin WestUnited New Zealand, elected as Labour
Maxwell, Hon Roger†1941FarmerTaranakiNational
Meurant Ross†1947Police inspectorHobsonIndependent,
elected as National became
Right of Centre (later called
New Zealand Conservatives)
Moore, Rt Hon Mike1949Freezing workerChristchurch NorthLabour
Neeson, Brian†1945Real estate agentWaitakereNational
Neill, Alec†1950Barrister and solicitorWaitakiNational
Northey, Richard1945Advisory officerOnehungaLabour
O'Connor, Damien1958Tourism operatorWest CoastLabour
O'Regan, Hon Katherine†1946FarmerWaipaNational
Peck, Mark1953Trade unionistInvercargillLabour
Peters, Hon Winston§1945Barrister and solicitorTaurangaNZ First
Pettis, Jill1952Education administratorWanganuiLabour
Revell, Ian†1948Police officerBirkenheadNational
Richardson, Hon Ruth†§||1950Legal adviser/farmerSelwynNational
Robertson, H. V. Ross1949Industrial engineerPapatoetoeLabour
Robertson, John†1951AccountantPapakuraUnited New Zealand,
elected as National
Rogers, Trevor1943ImporterHowickNew Zealand Conservative,
(formerly called Right of Centre),
elected as National
Roy, Eric†1948FarmerAwaruaNational
Ryall, Tony†1964AccountantEastern Bay of PlentyNational
Shipley, Hon Jenny†1952FarmerRakaiaNational
Simich, Clem†1939General managerTamakiNational
Sinclair, Suzanne1946Tutor/Local authority memberTitirangiLabour
Smith, Hon Dr Lockwood†1948Managing directorKaiparaNational
Smith, Nick†1964EngineerTasmanNational
Sowry, Roger†1958Retail managerKapitiNational
Storey, Hon Rob†1936President of Federated FarmersWaikatoNational
Sutherland, Larry1951Trade unionistAvonLabour
Sutton, Hon Jim1941FarmerTimaruLabour
Swain, Paul1951Trade unionistEastern HuttLabour
Tapsell, Hon Peter1930Doctor of medicineEastern MaoriLabour
Tennet, Elizabeth1953Trade unionistIsland BayLabour
Tirikatene-Sullivan, Hon Mrs T. W. M.1932Political scientistSouthern MaoriLabour
Tizard, Judith1956Electorate secretary PanmureLabour 
Upton, Hon Simon†1958Student/teacherRaglanNational
Wetere, Hon KT1935FarmerWestern MaoriLabour
White, Jill1941Local authority memberManawatuLabour
Williamson, Hon Maurice†1951Planning analystPakurangaNational
Yates, Dianne1943Education officerHamilton EastLabour

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 party or parties with the confidence of 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 under-secretaries, 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 ministers are members of the Executive Council, but not all ministers are in 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 vehicle for law-making by the executive. The authority to make statutory regulations, for example, is delegated by Parliament to the Governor-General in Council.

The Cabinet is, in effect, the highest policy making body of Government. It is the main vehicle by which the executive decides on major policy issues and legislative proposals, and it co-ordinates 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 once a decision is made it will be publicly supported by all members of the Government. The Cabinet Office provides support services for the Cabinet and its committees. The current Secretary of the Cabinet is also the Clerk of the Executive Council.

Table 3.8. PREMIERS AND PRIME MINISTERS

Premier/Prime Minister*Term(s) of office
* Honours are specified only if held on retirement from office.
Premiers
Henry Sewell7 May 1856-20 May 1856
William Fox20 May 1856- 2 Jun 1856
12 Jul 1861-6 Aug 1862
28 Jun 1869-10 Sep 1872
3 Mar 1873-8 Apr 1873
Edward William Stafford2 Jun 1856-12 Jul 1861
16 Oct 1865-28 Jun 1869
10 Sep 1872-11 Oct 1872
Alfred Domett6 Aug 1862-30 Oct 1863
Frederick Whitaker, MLC30 Oct 1863-24 Nov 1864
21 Apr 1882-25 Sep 1883
Frederick Aloysius Weld24 Nov 1864-16 Oct 1865
George Marsden Waterhouse, MLC11 Oct 1872- 3 Mar 1873
Sir Julius Vogel, KCMG8 Apr 1873- 6 Jul 1875
15 Feb 1876- 1 Sep 1876
Daniel Pollen, MLC6 Jul 1875-15 Feb 1876
1 Sep 1876-13 Sep 1876
Sir Harry Albert Atkinson, KCMG13 Sep 1876-13 Oct 1877 (ministry reconstructed)
25 Sep 1883-16 Aug 1884
28 Aug 1884- 3 Sep 1884
8 Oct 1887-24 Jan 1891
Sir George Grey, KCB13 Oct 1877- 8 Oct 1879
John Hall8 Oct 1879-21 Apr 1882
Sir Robert Stout, KCMG16 Aug 1884-28 Aug 1884
3 Sep 1884- 8 Oct 1887
John BallanceLiberal24 Jan 1891-d 27 Apr 1893
Rt Hon Richard John SeddonLiberal1 May 1893-d 10 Jun 1906
Prime Ministers
William Hall-JonesLiberal21 Jun 1906- 6 Aug 1906
Rt Hon Sir Joseph George Ward, Bt, KCMGLiberal6 Aug 1906-28 Mar 1912
United10 Dec 1928-28 May 1930
Thomas MacKenzieLiberal28 Mar 1912-10 Jul 1912
Rt Hon William Ferguson MasseyReform10 Jul 1912-12 Aug 1915
National12 Aug 1919-d 10 May 1925
Sir Francis Henry Dillon Bell, GCMG, KC, MLCReform14 May 1925-30 May 1925
Rt Hon Joseph Gordon Coates, MCReform30 May 1925-10 Dec 1928
Rt Hon George William ForbesUnited28 May 1930-22 Sep 1931
 Coalition22 Sep 1931-6 Dec 1935
Rt Hon Michael Joseph SavageLabour6 Dec 1935-d 27 Mar 1940
Rt Hon Peter Fraser, CHLabour1 Apr 1940-13 Dec 1949
Rt Hon Sidney George Holland, CHNational13 Dec 1949-20 Sep 1957
Rt Hon Sir Keith Jacka Holyoake, GCMG, CHNational20 Sep 1957-12 Dec 1957
12 Dec 1960- 7 Feb 1972
Rt Hon Walter Nash, CHLabour12 Dec 1957-12 Dec 1960
Rt Hon John Ross Marshall (later Sir)National7 Feb 1972- 8 Dec 1972
Rt Hon Norman Eric KirkLabour8 Dec 1973-d 31 Aug 1974
Rt Hon Wallace Edward Rowling (later Sir)Labour6 Sep 1974-12 Dec 1975
Rt Hon Sir Robert David Muldoon, GCMG, CHNational12 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- 2 Nov 1990

Table 3.9. NEW ZEALAND GOVERNMENT, AT 30 APRIL 1996

Source: Cabinet Office.
Governor-General:
His Excellency The Rt Hon Michael Hardie Boys (assumed office 21 March 1996).
Official Secretary: Hugo Judd, CVO
Her Excellency Dame Catherine Tizard, GCMG, GCVO, QSO, DBE (completed her term as Governor-General 3 March 1996.
 
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, Minister in Charge of the New Zealand Security Intelligence Service.
Rt Hon Don McKinnon, Deputy Prime Minister, Leader of the House, Minister of Foreign Affairs and Trade, Minister of Pacific Island Affairs.
Rt Hon W F Birch, Minister of Finance.
Hon Paul East, QC, Attorney-General, Minister of State Services, Minister of Defence, Minister of Corrections, Minister in Charge of War Pensions, Minister in Charge of the Audit Department.
Hon Jenny Shipley, Minister of Health, Minister of Women's Affairs.
Hon Doug Kidd, Minister of Labour, Minister of Fisheries, Minister of Energy, Minister for Accidence Rehabilitation and Compensation Insurance.
Hon Philip Burdon, Minister for Trade Negotiations, Associate Minister of Foreign Affairs and Trade, Minister for State-owned Enterprises, (responsible for all SOEs except Contact Energy Ltd), Minister of Railways, Minister in Charge of the Public Trust Office.
Hon Simon Upton, Minister for the Environment, Minister of Research, Science and Technology, Minister for Crown Research Institutes, Minister responsible for Radio New Zealand Ltd.
Hon Dr. Lockwood Smith, Minister of Agriculture, Deputy Minister of Finance, Minister responsible for Contact Energy Ltd.
Hon John Falloon, Minister of Forestry, Minister for Racing.
Hon Wyatt Creech, Minister of Education, Minister of Employment.
Hon Douglas Graham, Minister of Justice, Minister for Courts, Minister in Charge of Treaty of Waitangi Negotiations, Minister for Disarmament and Arms Control, Minister of Cultural Affairs.
Hon John Banks, Minister of Tourism, Minister for Sport, Fitness and Leisure, Minister of Local Government, Minister of Civil Defence.
Hon Denis Marshall, Minister of Conservation, Minister of Lands, Minister of Survey and Land Information, Minister in Charge of the Valuation Department, Associate Minister of Agriculture, Associate Minister of Employment.
Hon John Luxton, Minister of Maori Affairs, Minister of Police, Minister of Commerce, Minister for Industry.
Hon Maurice Williamson, Minister of Transport, Minister of Statistics, Minister of Communications, Minister for Information Technology, Minister of Broadcasting, Associate Minister of Health.
Hon Murray McCully, Minister of Housing, Minister of Customs, Associate Minister of Tourism.
Hon Peter Gresham, Minister of Social Welfare, Minister for Senior Citizens.
Hon Peter Dunne, MP, Minister of Revenue, Minister of Internal Affairs.
Hon Bill English, MP, Minister for Crown Health Enterprises, Associate Minister of Education.
 
Ministers outside Cabinet:
Hon Robin Gray, Minister of State, Associate Minister of Foreign Affairs and Trade.
Hon Roger Maxwell, Minister of Immigration, Minister of Business Development, Associate Minister of Employment.
Hon Roger McClay, Minister of Youth Affairs, Associate Minister of Pacific Island Affairs, Associate Minister of Education, Associate Minister of Social Welfare.
Hon Katherine O'Regan, Minister of Consumer Affairs, Associate Minister of Health, Associate Minister of Women's Affairs, Associate Minister of Social Welfare.
 
Parliamentary Under-Secretary:
Mr Warren Kyd, MP, Parliamentary Under-Secretary to the: Minister of Labour, Minister of Commerce, Minister for Industry, Minister for State Owned Enterprises.

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. Maori and 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 the Electoral Enrolment Centre, a division of New Zealand Post.

Table 3.1. VOTING PATTERNS: 1981–1993

YearElectors on Master RollValid votesInformal votesSpecial votes disallowedVotes cast to electors on Master Roll
Source: Department of Justice.
19812,034,7471,801,3038,99850,26391.44
19842,111,6511,929,2017,56542,03293.71
19872,114,6561,831,77711,18440,43389.06
19902,202,1571,824,09210,18042,84385.24
19932,321,6641,922,79611,36443,93285.20

VOTER TURNOUT
Percentage of enrolled electors voting at general elections

1995 ELECTORAL DISTRICTS - NORTH ISLAND

Voting. The conduct of polls is the responsibility of the Chief Electoral Office of the Ministry 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. Only persons whose names are validly enrolled before an election are qualified to vote. Most electors cast their votes at polling booths in their electorates on polling day, but they may vote as special voters at booths outside their electorate. Special votes may also be cast before polling day at issuing offices or at home because of sickness, travel, or similar reasons. Provision is also made for voting overseas.

Voting is by secret ballot. A preliminary count of ordinary votes is available for each electorate on election night, and final results are normally available a fortnight later, once special and overseas votes have been received and counted.

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 revision is based on figures for the electoral population provided by Statistics New Zealand.

The electoral boundaries are defined by the Representation Commission, which has seven members: a chairperson; four officials (the Surveyor-General, the Government Statistician, the Chief Electoral Officer, and the Chairman of the Local Government Commission); and two members nominated by Parliament to represent the Government and the Opposition.

1995 ELECTORAL DISTRICTS - SOUTH ISLAND

When determining the boundaries of the Maori electoral districts, the commission is joined by the Chief Executive Officer of Te Puni Kokiri and two Maori nominated by Parliament to represent the Government and the Opposition.

After provisional boundaries are drawn up and published, objections and counter-objections are considered by the commission, which makes a final decision.

The 1995 Representation Commission report set electoral boundaries for the election of the first MMP Parliament. This required a large reduction in the number of electorates. Under the Electoral Act 1993, the South Island is allocated 16 general electorates. The numbers of North Island General and of Maori electorates are then calculated so that their electoral populations are approximately the same as those for South Island General electorates. The commission is also required to give consideration to community of interest, facilities of communications, topographical features, and any projected variation in the general electoral population of the electorates.

Based on the South Island General electoral population of 827,945, the South Island General electorate quota was 51,747, resulting in 44 North Island General electorates (quota 51,866) and 5 Maori electorates (quota 52,844). All electorates have an allowance of 5 percent above or below their electoral population quota. Of the 60 General electorates, 28 have Maori names.

As there was major overhaul of boundaries with the reduction of general electorates from 99 to 60, there were large numbers of objections (885) and counter-objections (446).

Voting in a referendum on fire fighter numbers.

General election results. A triennial election of Members of Parliament was last held on 6 November 1993. The previous election was held on 27 October 1990. The total number of electors on the master roll for the 1993 election was 2,321,664. A total of 1,978,092 votes were cast, representing 85.2 percent of electors on the master roll.

Table 3.11. GENERAL ELECTION RESULTS

Political partyNumber of MPs
19841987*19901993

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

Source: Department of Justice.

Alliance---2
Democrats2---
Labour56572945
National37406750
New Labour--1-
New Zealand First---2

Table 3.12. GENERAL ELECTIONS—VOTES FOR POLITICAL PARTIES

Political partyValid votesPercentage of total valid votes
19841987*199019931984198719901993
Source: Department of Justice.
Alliance---350,064---18.21
Christian Heritage---38,749---2.02
Democrats147,162105,09130,455-7.635.741.67-
Green--124,915---6.85-
Labour829,154878,448640,915666,75942.9847.9635.1434.68
Mana Motuhake5,9899,78910,869-0.310.530.6-
National692,494806,305872,358673,89235.8944.0247.8235.05
New Labour--94,171---5.16-
New Zealand First---161,481---8.40
Other18,01726,83850,40931,8510.941.462.761.66
     Total valid votes1,929,2011,831,7771,824,0921,922,796100.0100.00100.00100.00
Informal votes7,56511,18410,18011,364
     Total1,936,7661,842,9611,834,2721,934,160

Table 3.13. SEATS CONTESTED BY POLITICAL PARTIES, 1993 GENERAL ELECTION

Political partySeats contested
Source: Department of Justice
Alliance99
Labour99
Christian Heritage98
National98
New Zealand First84
Natural Law76
McGillicuddy Serious64
Independent28
New Zealand Defence Movement11
Unemployed Workers Rights8
Mana Maori5
Aotearoa Partnership2
Communist League2
Hard to Find Bookshop2
Real2
Others11
          Total candidates689

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

Table 3.14. RESULTS OF ELECTORAL REFERENDUM POLL 1993

Voting issueVotesPercentage of vote
Source: Department of Justice.
First past the post884,96446.14
Mixed member proportional1,032,91953.86

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

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 legislation was amended in 1995 to place retired High Court Judges conducting Commissions of Inquiry in the same position as serving High Court Judges acting in that position and to clarify that serving and High Court Judges acting as Commissioners can punish a person guilty for contempt of the Commission as if that person were guilty of contempt of Court.

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.

3.3 State sector

The state sector exists to put in place the policies of the Government of the day. The sector is made up of government departments, Crown entities and state owned enterprises. At 30 June 1995 the number of staff employed in the 39 public service departments varied only slightly from the previous year (34,505 at 30 June 1994). This stability is likely to continue as the major reform phase has been completed with only relatively minor alterations expected in the immediate future.

State sector reform

The series of reforms that have occurred in New Zealand since the introduction of the State Owned Enterprises Act in 1986 are well known throughout the world for their comprehensiveness and impact on New Zealand's state sector. The most recent major act of these reforms was the restructuring of the Department of Justice during 1994-95. The Ministry of Justice, the Department of Corrections and Department for Courts now are responsible for the myriad of functions that were previously the exclusive domain of the Department of Justice.

As the largest of the reform tasks appears to be over, the next phase is to ensure any minor structural retunings continue to allow the state sector to function in the coherent and businesslike fashion the reform process has intended to encourage. Examples of this during 1995 were the creation of the Ministry of Fisheries from the Ministry of Agriculture and Fisheries and the reorganisation of the Department of Survey and Land Information.

Recently added to the three initial pieces of reform legislation (the State Owned Enterprises Act 1986, the State Sector Act 1988 and the Public Finance Act 1989), the Fiscal Responsibility Act 1994 requires Government to manage the Crown's finances in ways that:

  • increase the transparency of policy intentions and the economic and fiscal consequence of policy;

  • bring a long-term (as well as annual) focus to budgeting;

  • disclose the aggregate impact of a Budget in advance of the detailed annual budget allocations;

  • ensure independent assessment and reporting of fiscal policy; and

  • facilitate parliamentary and public scrutiny of economic and fiscal information and plans.

Lawyers at the lengthy Winebox inquiry into allegations of fraud in the Cook Islands.

PUBLIC SERVICE
Staff numbers, full-time equivalents (FTSs)

The act also requires the Crown to take a strategic view of the objectives of government, publishing the Budget Policy Statement and related documents.

This desire to view the activities of government in a strategic manner is one of the strengths of the new public service management system. The Government has now devised and published its key objectives in the medium term as Strategic Result Areas (SRAs). These SRAs are converted by the public service into contributory key result areas for each department. These are significant steps forward. Key result areas are a basis for both departmental planning and the assessment of departmental performance.

Decentralisation and devolution of managerial decision-making responsibilities to individual departments have altered the roles of the previously very powerful ‘control agencies’—the Treasury and the State Service Commission. The Treasury, the State Services Commission and the Department of the Prime Minister and Cabinet—now ‘central agencies’ rather than ‘control agencies’—fulfil many of the functions of the state sector's ‘corporate office’, with responsibilities for ensuring co-ordination, and collective approaches where these are necessary—usually through guidelines, conventions and information-sharing rather than rules.

Departments do not have absolute autonomy in the new system. There is a high level of interdepartmental work in the interests of co-ordination and good government. Recent examples of guidelines to assist the public service that have been produced by central agencies include Working Under Proportional Representation: A Reference for the Public Service and Public Service Principles, Conventions and Practice, both published by the State Services Commission, and Fiscal Responsibility Act 1994—An Explanation, published by the Treasury.

State Services Commissioner

The State Sector Act 1988 provides for a State Services Commission and for the positions of a State Services Commissioner and Deputy State Services Commissioner.

The commission is government's principal advisor on public sector organisational development and human resource management. The State Services Commissioner is responsible to the Minister of State Services for management of the State Services Commission. Both the commissioner and the deputy commissioner are, however, required to act independently in matters about individual employees, and in some aspects of the appointment and employment of departmental chief executives.

The commissioner's principal functions relate to the public service. They include:

  • Recommending the most suitable candidates for chief executive appointments.

  • Reviewing the performance of departmental chief executives.

  • Developing chief executives and, in consultation with chief executives, developing public service senior managers.

  • Reporting to government as directed on the implementation of its key policies.

  • Advising on industrial relations and personnel policies.

  • Advising on performance management, service-wide systems and organisational structures.

The commission also helps government to manage major changes in the state sector. The State Sector Act enables the Prime Minister to direct the commissioner to undertake other tasks and assignments that might be required to assist the government in the management of the State sector.

Equal employment opportunities. Through the State Sector Act the commission is responsible for promoting, developing and monitoring Equal Employment Opportunities (EEO) programmes in departments of the public service. The purpose of such programmes is defined in the act as ‘… the identification and elimination of all aspects of policies, procedures and other institutional barriers that cause or perpetuate, or tend to cause or perpetuate inequality in respect to the employment of any persons or group of persons.’

Each department is required to develop and publish an annual EEO programme and to report to the commission about how well it has been able to implement the programme. The commission monitors progress and provides practical advice and support to departments to help them achieve their EEO objectives.

Table 3.15. CHIEF EXECUTIVES OF GOVERNMENT DEPARTMENTS*

DepartmentTitleName

* As at 31 December 1995.

† Secretary, Ministry for the Environment D Church took up the position in February 1996.

Agriculture, Ministry ofDirector-GeneralR Ballard
Audit DepartmentController and Auditor-GeneralD Macdonald
Commerce, Ministry ofSecretaryH Fancy
Corrections, Department ofChief ExecutiveM Byers
Conservation, Department ofDirector-GeneralWR Mansfield
Courts, Department forChief Executive designateW Bailey
Crown Law OfficeSolicitor-GeneralJJ McGrath QC
Cultural Affairs, Ministry ofChief ExecutiveCH Blake
CustomsComptrollerGW Ludlow
Defence, Ministry ofSecretaryGC Hensley
Education, Ministry ofActing Chief ExecutiveL Perris
Education Review OfficeChief ExecutiveJE Aitken
Environment, Ministry for theActing SecretaryL Gow†
Fisheries, Ministry ofChief ExecutiveW Tuck
Foreign Affairs and Trade, Ministry ofSecretaryRF Nottage
Forestry, Ministry ofSecretaryJM Valentine
Government Superannuation FundChief ExecutiveR Evans
Health, Ministry ofDirector-GeneralK Poutasi
Housing, Ministry ofActing Chief ExecutiveR Henderson
Inland Revenue DepartmentCommissionerG Holland
Internal Affairs, Department ofChief ExecutiveR Blakely
Justice, Department ofSecretaryJ Belgrave
Labour, Department ofSecretaryJM Chetwin
Maori Development, Ministry ofChief ExecutiveN Love
National LibraryNational LibrarianPG Scott
Pacific Island AffairsChief ExecutiveA Rongo-Raea
Prime Minister and Cabinet, Department ofChief ExecutiveS Murdoch
Public Trust OfficePublic TrusteeDR Hutton
Research, Science and Technology, Ministry ofChief ExecutiveBV Walker
Serious Fraud OfficeChief ExecutiveC Sturt
Social Welfare, Department ofDirector-GeneralMC Bazley
State Services CommissionState Services CommissionerDK Hunn
Statistics New ZealandGovernment StatisticianLW Cook
Survey and Land Information, Department ofDirector-GeneralWA Robertson
Transport, Ministry ofSecretaryJO Stack
The TreasurySecretaryM Horn
Valuation New ZealandValuer-GeneralHF McDonald
Women's Affairs, Ministry ofSecretaryJ Lawrence
Youth Affairs, Office ofChief ExecutiveC Gibson

THE PUBLIC SERVICE
Ratio of male to female staff

Functions of government departments

The functions of central government are under a continual process of review. The following account of departments was correct as at December 1995.

Agriculture, Ministry of. (Te Manatu Ahuwhenua.) The Ministry of Agriculture (MAF) was established by the Ministry of Agriculture and Fisheries (Restructuring) Act 1995. MAF administers and develops standards and systems, manages agricultural security and provides policy advice. The core MAF is managed by an Executive Committee and divided into four business groups. These are: Policy (which facilitates the development of policy); Regulatory Authority (which sets standards and specifications); Corporate Affairs (which manages the Ministry's relationship with the government) and Corporate Group (which provides a range of support services for the other business groups). MAF Quality Management (the service delivery arm of MAF) was internally separated from the rest of the organisation on 1 July 1995, pending a review of its activities. It is managed by the Director-General of Agriculture with the assistance of an Advisory Board. See chapter 18: Agriculture.

MAF's programmes aim to protect our competitive advantage as an export nation by monitoring animals, fish and plants, and preventing the introduction of exotic pests and diseases. Also, through quality assurance, it ensures that our export primary produce meets agreed standards. See chapter 18, Agriculture and section tabs03c19 Fisheries.

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

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

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

Conservation, Department of. (Te Papa Atawhai.) The Department of Conservation (Te Papa Atawhai) is the central government organisation charged with conserving the natural and historic heritage of New Zealand for the benefit of present and future New Zealanders.

Its specific aims are:

  • conservation of New Zealand's natural and historic resources;

  • appropriate use of these resources by the public;

  • public awareness of, support for, and enhancement of a conservation ethic, both within New Zealand and internationally.

Corrections, Department of. The Department of Corrections manages all custodial and non-custodial sentences imposed by the courts on offenders. This includes prison sentences and community corrections, such as periodic detention. The department was formed in October 1995 following the restructuring of the Department of Justice.

The Department of Corrections has over 3,800 full and part-time staff responsible for: managing offenders in prison or on community-based sentences including providing work programmes and activities to help them reduce future offending; giving specialist psychological advice and assistance with offenders' needs; providing information to judges to assist them in sentencing offenders, and to the Parole Board and district prison boards; providing advice to Government about the most effective policies for corrections services.

There are eight services and groups in the department, working together to reduce reoffending: Public Prisons, Community Corrections, Psychological Service, Internal Audit, Corrland (responsible for farms and forests), Policy and Service Development, Contracts, Strategic Development and Finance.

Courts, Department for. (Te Tari Kooti.) The Department for Courts was established on 1 July 1995. Its predecessor was the Courts and Tribunals Group of the Department of Justice. The new department administers courts and tribunals, enforces court orders relating to fines and debts, and administers the Maori Land Court and the Waitangi Tribunal.

There are four business units in the department: the Case Processing Business Unit manages the Appeal, High, District, Family and Youth Courts and a range of tribunals. The country is divided into four case processing areas; Northern, Waikato, Central and Southern. Administrative support and facilities for various tribunals, authorities and committees are provided by the unit's tribunal division of the unit.

The Collections Business Unit collects and enforces fines (including reparations) and civil debts. The Waitangi Tribunal Division undertakes research, provides administrative support for the tribunal and provides the public with information, while the Maori Land Court is concerned with contributing to the administration of Maori land and maintaining records of title and ownership information.

Crown Law Office. The Crown Law Office provides legal advice and representation to government in matters affecting the Crown, and in particular, government departments. It has two primary aims. First, to ensure that the operations of executive government are conducted lawfully and second, to ensure that the government is not prevented, through the legal process, from lawfully implementing its chosen policies. The work of the Crown Law Office as a whole contributes to the government's current strategic goals of protecting the legal interests and supporting the responsibilities of the executive government and its agencies, maintaining law and order, and serving the interests of justice in the community.

Cultural Affairs, Ministry of. (Te Manatu Tikanga-a-Iwi.) The aim of the ministry is to encourage the most efficient use of public resources to maximise understanding and appreciation of, access to and participation in New Zealand's culture, and to promote the enhancement of New Zealand's cultural identity. See chapter 12: Arts.

Customs, New Zealand. (Te Mana Arai O Aotearoa). New Zealand Customs is the government's primary border management agency. It implements a range of government policies both as principal, and on an agency basis, within the context of customs, immigration and other border-related enactments. The department assists in the delivery of policies in respect of the Government's goals of a more competitive enterprise economy and increased participation in international trade. In carrying out its functions at the border, the department contributes to these goals, implementing appropriate programmes in co-operation with the business sector. See section 25.1: Administration and development.

The core business of New Zealand Customs is the management of the border, providing assistance and advice to industry (manufacturers, importers and exporters), and the preservation of the tax base in its revenue collection function.

Defence, Ministry of. (Te Manatu 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. See section 4.4: Defence.

Defence Force, New Zealand. The primary purpose of the New Zealand Defence Force is to protect the sovereignty and advance the well-being of New Zealand by maintaining a level of armed forces sufficient to deal with small contingencies affecting New Zealand and its region, and be capable of contributing to collective efforts where our wider interests are involved. See section 4.4: Defence.

Education, Ministry of. (Te Tahuhu o te Matauranga.) The ministry is responsible for providing policy advice to the Minister of Education on all aspects of education from early childhood to tertiary; overseeing the implementation of approved policies and ensuring the optimum use of resources devoted to education. See chapter 9: Education.

Education Review Office. (Te Tari Arotake Matauranga.) The Education Review Office is the department responsible for evaluating and reporting on the performance of all primary and secondary schools, early childhood centres and other education organisations in New Zealand. The office actively supports and promotes high quality decision making on the education provided for New Zealand's young people. See section 9.1.

Environment, Ministry for the. (Te Manatu mo 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.

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. See section 16.2: Environmental and resource management.

Fisheries, Ministry of. (Te tautiaki i nga tinia tangaroa.) The Ministry of Fisheries (MFish) was established on 1 July 1995. Its function is to ensure that the use of New Zealand's fisheries resource is sustainable. MFish achieves this by assisting in the conservation and management of New Zealand's marine fisheries by providing a range of services in the areas of fisheries management, policy setting advice and enforcement.

Foreign Affairs and Trade, Ministry of. (Te Manatu Aorere.) The Ministry of Foreign Affairs 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 influences other governments in New Zealand's favour.

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 operates some 49 posts overseas. Their primary task is to develop the official relationship between the New Zealand Government and the country or international organisation concerned, through discussions and contacts with local political leaders, officials, business executives and media representatives.

Forestry, Ministry of. (Te Manatu Ngaherehere.) The Ministry of Forestry works to ensure forestry makes the best possible contribution to New Zealand's sustainable development and economic growth. Key business areas are: information brokerage; facilitation; policy advice; managing the Crown's forestry interests and commitments; and protection of New Zealand forests and trees. See sections 19.1 and 19.2.

Government Superannuation Fund Department. (Te Putea Penihana Kawanatanga.) The function of the department is to provide professional management of superannuation schemes constituted under the Government Superannuation Fund Act 1956. This includes advising on policy matters, administering the schemes and investing the schemes' funds.

Health, Ministry of. (Manatu Hauora.) The Ministry of Health's purpose is “Healthy New Zealanders”. The Ministry provides policy advice to the government on health and disability support services. It also negotiates, manages and monitors funding agreements with regional health authorities and service providers, administers health sector legislation and collects and disseminates health information.

The ministry works in five groups. The Sector Policy Group provides advice on issues relating to health sector strategy, funding and regulation. The Implementation Group manages the government's contract negotiation and monitoring and the regulatory environment. It also advises on operational policy for personal health and disability support services. The role of the Public Health Group is to monitor and report on the state of public health in New Zealand. Te Kete Hauora is charged with developing and providing strategic Maori health policy advice. The Corporate and Information group is concerned with the internal operation of the ministry and the provision of health information to clients..

Housing, Ministry of. (Te Whare Ahuru.) 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 22.4 Reform of housing assistance.

Housing Corporation of New Zealand. (Te Kaporeihana Whare.) The corporation provides loan facilities to low income home-buyers.

Inland Revenue Department. (Te Tari Taake.) The main function of the Inland Revenue Department is to assess and collect various taxes and duties. However, along with taxes such as income tax, goods and services tax, fringe benefit tax and resident withholding tax, Inland Revenue also collects accident compensation premiums on behalf of the Accident Rehabilitation and Compensation Insurance Corporation. Inland Revenue also administers family support, child support, the guaranteed minimum family income scheme and student loan repayments.

Internal Affairs, Department of. (Te Tari Taiwhenua.) The department develops policy and provides services which deals with: (a) strengthening national identity (includes—Births, Deaths and Marriages, National Archives, Passports, Citizenship, Translation Services, Historical Publications, Dictionary of New Zealand Biography, Heritage Property, Heritage and Identity Policy, NZ Gazette and Waitangi Day Commemorations; (b) building stronger communities (includes—Ethnic Affairs, Civil Defence, Link Centres, Community information, Community Grants, Censorship inspection and Enforcement, Gaming and Racing Policy, Gaming Licensing and Enforcement, Casino Supervision and Inspection, Local Government, Local Government Commission, Lottery Grants, Policy for Buildings, Community, Emergency Services and Fire Prevention and Sport, Fitness and Leisure); (c) supporting executive government (includes—Ministerial Services, Parliamentary on-line Information systems, VIP Transport, Visits and Ceremonial, Administration of Public Trusts and Commissions of Inquiry

Justice, Ministry of. The department provides high quality strategic and policy advice across the justice sector. Justice policy is based primarily on a concern for the rights and responsibilities of the individual in regard to his/her relationships with other individuals, communities and the state. It is also concerned with advice on fundamental constitutional matters such as rights, the body of law and democratic processes, and the relationships between Treaty partners; access to workable and accepted dispute resolution mechanisms; fair and efficient markets; preventing and minimising the impact of crime; and the effective operation of agencies responsible for delivering these services.

The department manages contracts with Crown entities and other entities funded through Vote Justice and manages the conduct of parliamentary elections, by-elections, referenda and polls.

Labour, Department of. (Te Tari Mahi) The principal responsibilities of the Department of Labour are to help unemployed job seekers into work through the provision of an employment service; to assist communities to identify and develop local employment initiatives; to ensure, through the work of its field staff, that workers are employed under safe and healthy working conditions; to administer immigration legislation and policy, in particular by selecting migrants best able to benefit New Zealand; to support the framework of employment relationships provided by the Employment Contracts Act 1991 and the minimum employment codes; and to provide policy advice on accident compensation issues to the Minister of Accident, Rehabilitation and Compensation Insurance. Among the most important legislation administered are the Employment Contracts Act 1991, the Health and Safety in Employment Act 1992 and the Immigration Act 1987.

Maori Development, Ministry of. (Te Puni Kokiri.) Te Puni Kokiri was established as a policy ministry on 1 January 1992 and replaced Manatu Maori (the Ministry of Maori Affairs) and Te Tira Ahu Iwi (the Iwi Transition Agency). The ministry is government's principal adviser on the Crown's relationship with iwi, hapu and Maori, and on key government policies as they affect Maori.

In carrying out this role Te Puni Kokiri's functions are to: (a) provide strategic leadership advice on Maori development issues and on the Crown's relationship with iwi, hapu, and Maori; (b) provide advice on sectoral issues; (c) monitor the performance of mainstream government departments in addressing the parity gap between Maori and non-Maori; (d) facilitate consultation between the Crown, its agencies, and iwi, hapu and Maori, on policies affecting Maori, and the development of the relationship between the Crown and Maori. Te Puni Kokiri is organised into five branches: Compliance, Treaty Relations, Asset Management, Social Policy, and Corporate Services. There are 13 regional offices in the Treaty Relations branch.

National Library of New Zealand (Te Puna Matauranga o Aotearoa). The vision of the National Library is linking the peoples of New Zealand with information. The Library provides policy advice to the government on information availability and use in New Zealand. It collects, preserves and promotes current and historical knowledge of New Zealand and the Pacific; it improves the availability of, and access to, information through online services and resource-sharing between members of the library and information community.

National Provident Fund. The National Provident Fund is New Zealand's largest superannuation fund and provides superannuation schemes both for employer/employee groups and for individual members. The fund comprises 17 separate superannuation schemes.

Office of Treaty Settlements (Te Tari Whakatau Take e pa ana ki te Tiriti o Waitangi). The office provides high quality policy advice to the government on Treaty of Waitangi issues and on specific claims, negotiates Treaty claims and implements settlements. It acquires, manages, transfers and disposes of Crown-owned land for Treaty claim and related purposes.

Pacific Island Affairs, Ministry of. The principal functions of the ministry include the provision of policy advice on significant issues affecting Pacific people in New Zealand; monitoring the implementation of policies; provision of advisory and liaison services; provision of training and employment placement and the promotion of business development.

The ministry also establishes and maintains liaison with and between Pacific communities in New Zealand and government agencies and encourages the development of joint ventures with mainstream agencies. See section 6.5: Pacific Island population.

Police, New Zealand. (Nga Pirihimana o Aotearoa). The New Zealand Police is guided by a five year strategic plan. The police aim to serve the community through meeting the following strategic goals: reducing the incidence and effects of crime; protecting property, enhancing public safety and maintaining law and order; improving the detection and apprehension of offenders; improving the safe and efficient use of roads; implementing and maintaining community-orientated policing; strengthening public confidence and satisfaction with police services; achieving excellence and equity in the management of our people and resources.

Their vision is ‘Safer Communities Together’ which gives direction to the principal operational strategy of Community Oriented Policing for the delivery of policing services. The New Zealand Police is a state agency, which services all of New Zealand.

Prime Minister and Cabinet, Department of the. The department provides advice to the Prime Minister on policy, constitutional and administrative issues and provides secretariat support to the Executive Council and Cabinet. It provides support services to the Governor-General and manages the Governor-General's residences. Through the External Assessments Bureau it provides intelligence assessments to the Government on developments overseas.

The department contributes to the effective co-ordination of government across departmental lines, tests the quality of advice coming from departments and acts as an ‘honest broker’ where there are conflicts over policy advice being offered by different parts of the public sector.

The department from time to time undertakes special operational functions. Its major tasks for 1994-95 are continuing the operation of the Crime Prevention Unit and of the Employment Taskforce. See section 3.2: Parliament and the Cabinet.

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 Manatu Putaiao.) Established in October 1989, the ministry's primary role is to provide advice to government on the overall policy framework, priorities and funding for research, science and technology and to provide contract management services to the Minister for the implementation of science funding. It is also responsible for gathering and disseminating statistics and descriptive information on research, science and technology activities and for administering intergovernmental science relations. The Office of the Chief Scientist is also based in the ministry and plays an important role in ensuring the provision of scientific and technological input into government policy development as a whole and in the co-ordination 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 24.2: 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 Young Persons and Their Families Act 1989, and the War Pensions Act 1954; (b) to advise 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 coordination 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 arrears in payments due under maintenance orders and registered agreements prior to the Child Support Act 1991 coming into force; 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 Komihana o nga Tari Kawanatanga.) See ‘State Services Commissioner’ above.

Statistics New Zealand. (Tatauranga Aotearoa.) The main function of the department is to provide and distribute statistical information about the economic, demographic, social and environmental circumstances of New Zealand. It also provides advice to the Minister of Statistics on statistical policy matters and on the relevance of official statistics. On behalf of the minister, the department ensures that the official statistical system is efficiently integrated and co-ordinated to cover all government departments which produce statistics. Regular reviews of official statistics are carried out to ensure their continued relevance to user needs.

Output from the organisation's databases is formatted into a range of products and services that are appropriate to the requirements of government as well as to the general public and commercial users. Co-operation with other national statistical offices and with international agencies fosters the availability of high-quality internationally comparable statistical information.

The department administers and operates under the Statistics Act 1975 which defines collection authorities as well as setting out confidentiality safeguards.

Survey and Land Information, Department of. (Te Puna Korero Whenua.) The department is the principal government (civil and military) survey, mapping, and land information agency. The department is also the government's principal Crown land administration agency. Through the Land Titles Office the department provides services that enable the creation and termination of land property rights, the issue of land titles and the provision of public access to land title information. 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, 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. It is also responsible for the administration, acquisition and disposal of land held by the Crown and for public works, and the management of the Crown's land-related liabilities. The incorporation of the Land Titles Office from 1 October 1995 has included the work of vesting and divesting rights in land, plan examination, the issue of title upon subdivision and the provision of a range of land title information, including the Deeds registration record into the department's work.

The main acts administered by the department are the Survey Act 1986, Public Works Act 1981, Land Settlement and Land Acquisition Act 1952, Land Act 1948, the New Zealand Geographic Board Act 1946, Crown Grants Act 1908, Land Transfer Act 1952, Deeds Registration Act 1908, Joint Family Homes Act 1964 and the Unit Titles Act 1972. In addition in excess of 450 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.

Tourism Board, New Zealand. The board's role is to ensure New Zealand is developed and marketed competitively as a tourist destination to maximise the long term benefits to New Zealand. Its main functions are to market and promote New Zealand's tourism development and initiate programmes to foster this development; administer jointly-funded public and private sector marketing programmes; and undertake research of visitor arrivals, overseas tourism markets and regional tourism. The New Zealand Tourism Board is headed by a nine member private sector executive board appointed by the Minister of Tourism. The board has 16 overseas marketing offices and four regional offices in New Zealand. See Section 13.6: Leisure.

Trade Development Board (Tradenz), New Zealand. Tradenz mission is to foster the development and expansion of New Zealand's foreign exchange earnings. It 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 Manatu Waka.) The Ministry of Transport promotes safe and sustainable transport 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 core department's functions are largely policy oriented—ensuring that the Government receives high quality advice and information relating to the promotion of safe, sustainable transport at reasonable cost. As the Minister of Transport's agent, the ministry plays an important role in negotiating and monitoring contracts with the stand alone Civil Aviation Maritime Safety and Land Transport Safety Authorities. It also monitors the Government's contract on severe weather warnings with MetService New Zealand Limited and manages the Land Transport Fund. Development of any legislation for the transport sector is the ministry's responsibility. The other significant function of the ministry is to formulate and implement policies relating to domestic and international air transport, other than safety matters. It also advises government in relation to the Crown's interests in airport companies and joint venture airports operated in partnership with local authorities.

Treasury, The. This department manages the Crown's finances and provides the government with economic and financial advice from a broad perspective. Its roles include: providing economic, financial and commercial advice and information; implementing specific economic and financial policies; providing financial information on the operation of government; accounting for the revenue and expenses of the Crown; managing the Crown's public debt and Treasury-managed financial assets; contributing to public understanding of economic and financial matters in a manner consistent with current constitutional conventions; and performing an actuarial role in regulating and providing to the government actuarial advice on life insurance, superannuation and related industries. The department is organised into seven branches and 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 introduced a three-yearly cycle. Between the three 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, 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 16.1: Land resources and ownership.

Women's Affairs, Ministry of. (Te Minitatanga mo nga Wahine.) The Ministry of Women's Affairs is the Government's primary provider of gender-specific advice on public policy issues including: education, labour market and economic development; income, wealth and family issues; health and disability; violence against women; Maori policy; and, other policy advice including the integration of gender analysis into all aspects of public policy development, implementation, monitoring and review.

The purpose of the Ministry of Women's Affairs is to assist the Government to achieve for women, and especially for Maori women as tangata whenua, a society in which: women have opportunity and choice in all aspects of their lives; women fulfil their aims and aspirations; women fully and actively participate; women have adequate resources of their own; women do not face discrimination; and women's status improves.

Youth Affairs, Ministry of. (Te Tari Taiohi.) Established in 1989 to facilitate the direct participation of young people in New Zealand life and to promote opportunities for young people to actively and responsibly contribute to the cultural, social and economic policies and services affecting New Zealand's development.

The ministry has three main functions: provide policy advice; communicate policies and practices which impact on young people; and administer grants for youth training and development, particularly for the Conservation Corps and Youth Services Corps programmes.

Non-departmental public bodies

Crown-owned entities. These are organisations (in some cases statutory officers) that while not departments of the public service or state-owned enterprises, belong to the Crown. They are named in a schedule to the Public Finance Act 1989. Some well-known Crown entities are the New Zealand Symphony Orchestra, the Human Rights Commission and the New Zealand Fire Service Commission.

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.

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.

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 Government has announced its intention to introduce legislation to establish the Auditor-General as an officer of Parliament.

The constitutionally important controller function of the Audit Office, as set out in the Public Finance Acts 1977 and 1989, 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 of Parliament to control the supply of funds to the Crown, and in certain circumstances the Audit Office may prevent the issue of money.

The Audit Office audits the financial statements of government departments, local authorities, and most government-controlled corporations, boards and companies. The office plays a key part in ensuring adequate accountability by these organisations. It also conducts periodic reviews of financial control systems and of selected programmes or operations to ascertain whether resources have been applied effectively and efficiently in a manner consistent with the policies of the governing bodies.

Considerable emphasis is placed on reporting the results of this work. The most visible results are the 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.

The Controller and Auditor-General uses a mix of his own staff and private sector auditors to carry out individual audits in accordance with requirements laid down by him. By June 1998 approximately 70 percent of the annual audit portfolio will be subject to tendering out on a competitive basis between private sector auditors and the operational arm of the Audit Office.

Official information

The Official Information Act 1982 is based on the principle that information shall be made available unless there is good reason for withholding it. The purposes of the act are to:

  • Increase the availability of official information to the people of New Zealand.

  • Provide for proper access by bodies corporate to official information relating to themselves (access by individuals to information relating to them is now governed by the Privacy Act 1993).

  • Protect official information consistent with the public interest and the preservation of individual privacy.

With the exception of the Parliamentary Counsel 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 Act 1987.

These acts provide special rights of access by bodies corporate to personal information about themselves. Access by individuals to information about themselves is now governed by the Privacy Act. The definition of ‘person’ includes a corporation sole and a body of persons whether corporate or unincorporate. Therefore, requests for access to official information can be made by such bodies. 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 the Governor-General by Order-in-Council.

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 Ombudsman is to enquire into complaints relating to administrative decisions of government departments and related organisations, Crown health enterprises and regional health authorities. Under the Ombudsmen Act 1975 there is provision for the appointment of a Chief Ombudsman and one or more ombudsmen, in either temporary or permanent positions. Sir Brian Elwood CBE was appointed Chief Ombudsman on 14 December 1994 and Judge Ananda Satyanand was appointed as an Ombudsman in February 1995.

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 3.16. COMPLAINTS TO THE OMBUDSMEN, 1994-95*

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 jurisdiction135132
Declined or discontinued section 1793113111
Resolved in course of investigation20732555
Resolved informally11514933
Sustained, recommendation made12205
Sustained, no recommendation made209-
Not sustained26416816
Formal investigation not undertaken, explanation, advice, or assistance given7738312
Still under investigation as at 30 June45319523
             Total2,9101,093157

Privacy Commissioner

The functions of the Office of the Privacy Commissioner: Te Mana Matapono Matatapu are set out in the Privacy Act 1993. The office is independent of the Executive and of Parliament. One of the main purposes of the act is the promotion and protection of individual privacy, in general accordance with the Organisation for Economic Co-operation and Development (OECD) 1980 Guidelines on the Protection of Privacy and Trans-border Flows of Personal Data. The act established twelve information privacy principles and four public register privacy principles. Both sets of principles are subject to any other law on the matters covered, and apply to both public and private sectors.

The twelve information privacy principles deal with the collection, security, use and disclosure of personal information, access to and correction of personal information, and the assignment and use of unique identifiers.

The four public register privacy principles place some controls on the availability of public register information and its subsequent use. A new Domestic Violence Act provides rights for victims of domestic violence to have their whereabouts held confidentially on public registers, with the Privacy Commissioner having an oversight function.

Jurisdiction is given to the Privacy Commissioner to modify the principles and to issue codes of practice. The Health Information Privacy Code 1994 provides stringent controls on the collection, use and disclosure of medical and health information by agencies within the health sector. The GCS Information Privacy Code 1994 (which expires on 30 June 1997) was issued following the government's sale of its shareholding in GCS Limited, a sensitive computing facility utilised by some government departments. Its main purpose is to ensure that there are remedies for any breaches in handling this information. The Superannuation Schemes Unique Identifier Code 1995 which came into force on 1 December 1995 was issued to allow the sharing of employer-assigned unique identifiers with the trustees of workplace-based superannuation schemes and others involved in scheme administration.

The Privacy Commissioner is empowered to deal with complaints alleging breaches of the principles, information matching rules and codes of practice. As from 1 July 1996, a breach of any of the information privacy principles may be referred to the Complaints Review Tribunal.

The act also contains a set of information matching rules placing controls on statutory matching programmes in the public sector. Information matching involves a government department comparing personal information in the databases they hold, collected for specific purposes, with databases of personal information in another government department held for different purposes. The purpose is to deter and detect fraud or abuse. An example is the matching of beneficiaries' records from the Department of Social Welfare with information held by the Accident Rehabilitation and Compensation Insurance Corporation relating to claims for compensation, or other government departments concerning prison inmates, people departing from New Zealand, illegal immigrants, taxpayers and recipients of student allowances. Provision for information matching with the Registrar-General has not been included in the Births, Deaths and Marriages Registration Act 1995. The rules require that notice be given to the affected individual before action can be taken on the basis of a successful match. During 1995 the Privacy Commissioner was required to consider a proposed new programme to match the electoral roll with lists of overstayers and visitors to New Zealand.

The Privacy Commissioner is also required to perform a general ‘watch-dog’ role over privacy and in 1995 made a number of reports to the Minister of Justice, and public statements on a range of issues affecting individual privacy. The commissioner also reports to some international organisations such as the OECD. This year he provided information to the Ministry of Youth Affairs for their preparation of New Zealand's first report under the International Convention on the Rights of the Child, Article 17 of that covenant affirms a child's general right of privacy.

The commissioner hosts an annual ‘Privacy Issues Forum’ attracting both local and overseas speakers and registrants. Among the issues discussed at the 1995 forum were: technology and privacy, genetic information, surveillance, children's rights, privacy in employment, senior executives' salaries, public registers, credit reporting and information matching.

Table 3.17. COMPLAINTS TO THE PRIVACY COMMISSIONER, 1994-95*

* Year ended 30 June.
Number of complaints received877
Complaints current at start of year339
Number of complaints under process1,216
Number of complaints closed during year633
No jurisdiction50
Complaints resolved without final opinion455
Final opinion128
(substance 26—no substance 102)

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 Office of the Parliamentary Commissioner for the Environment: Te Kaitiaki Taiao a Te Whare Paremata 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. The commissioner's reports of investigations are published, the House advised of findings and advice is given to public authorities on ways to improve environmental management. With the exception of requests and directions made by the House of Representatives, the commissioner has the discretion to determine which reviews and investigations are conducted.

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.

During 1995 the commissioner began a series of investigations into the effectiveness of local government in implementing the Resource Management Act 1991. The first dealt with the administration by three territorial authorities of assessments of environmental effects. It was concluded a good start had been made by councils but improvements were needed in how councils gave advice to applicants; how assessments were evaluated; and how councils used assessments when setting conditions on resource consents. A second investigation focuses on how well territorial authorities are able to preserve the natural character of the coast. Good practical guidelines are issued following each investigation.

Sustainable management of indigenous resources has been of concern. The commissioner has initiated reviews of the government system controlling the burning of tussock grasslands, and of a proposal to harvest the Crown's West Coast beech forest. In both cases legislative responsibilities for the resources are fragmented and national guidance is required. In addition, sustainable management needs to be supported by an adequate research programme.

The Australian Capital Territory and Canadian Province of Ontario have appointed independent commissioners for the environment, and the Canadian Federal Government passed legislation to enable a Parliamentary Commissioner for the Environment to be appointed. Before these appointments were made and legislation enacted, the New Zealand Commissioner was called on for advice.

Table 3.18. REPORTS AND PAPERS BY THE COMMISSIONER

1993-941994-95
Source: Parliamentary Commissioner for the Environment.
Investigation reports6465
Information transfer papers256482
            Total316547

Public Trust

Public Trust, the first of its kind in the world, was launched in 1873 by an act of Parliament. It is a government department now operating under the Pubic Trust Office Act 1957.

Public Trust was created to provide all New Zealanders with the opportunity to write a will (thereby decreasing the number of intestacies) and to provide executor and trustee services. At the time it began, amongst other issues, problems arose from unscrupulous individuals cheating beneficiaries out of their inheritances.

Public Trust, with 50 branches throughout the country, now administers over 52,000 estates, trusts, funds and agencies, worth more than $3 billion. This includes more than $1 billion in the Common Fund for which Public Trust has been fund manager for over 100 years. It acts as sinking fund or depreciation fund commissioner for many local authorities when so appointed, and holds other funds on their behalf, as well as holding the deposits of insurance companies.

In 1995 the number of wills made was 27,167, and the number of enduring powers of attorney, 5,462. Management was provided for 214 incapacitated people. Some statutory services are provided at an agreed or no cost to Government. Five Public Trust Maori and Pacific Island Scholarships were awarded for the first time.

3.4 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.

Porirua's new $2.4 million computer system—the ultimate in sophistication containing aerial photos of each property and information for public use.

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.

  • 154 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 regional 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 hierarchical as functional, with the range of regional council functions being limited.

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

LOCAL GOVERNMENT BOUNDARIES - SOUTH ISLAND
With effect from 1 July 1992

Table 3.19. REGIONAL COUNCILS

RegionCouncil members*

* As from October 1992 elections.

Source: Department of Internal Affairs.

North Island
Northland8
Auckland13
Waikato14
Bay of Plenty11
Hawke's Bay9
Taranaki10
Manawatu-Wanganui11
Wellington14
South Island
West Coast6
Canterbury14
Otago12
Southland11

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

The Nelson-Marlborough Regional Council was abolished from 1 July 1992 and its functions transferred to the territorial authorities of Marlborough District, Tasman District and Nelson City.

Territorial authorities. The 74 regional authorities consist of:

  • 15 city councils.

  • 58 district councils.

  • the Chatham Islands council.

Territorial authorities in New Zealand are directly elected, set their own rates, and have a mayor elected by the people. They have a wide range of functions including land use consents under the Resource Management Act 1991, noise control, litter control; roading; water supply; sewage reticulation and disposal; rubbish collection and disposal; parks and reserves; libraries; land subdivision; pensioner housing, health inspection; building consent; parking controls; and civil defence.

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

Table 3.2. TERRITORIAL AUTHORITIES

Cities/districtsCouncil members*

* Includes mayors..

† Unitary authority.

Source: Department of Internal Affairs.

North Island
North Shore City20
Waitakere City17
Auckland City25
Manukau City20
Hamilton City14
Napier City14
Palmerston North City16
Porirua City14
Upper Hutt City11
Hutt City14
Wellington City19
Far North District14
Whangarei District14
Kaipara District11
Rodney District12
Papakura District13
Franklin District15
Waikato District15
Waipa District13
Otorohanga District8
Waitomo District11
Thames-Coromandel District10
Hauraki District10
Matamata-Piako District13
South Waikato District11
Taupo District13
Tauranga District15
Western Bay of Plenty District13
Rotorua District13
Whakatane District16
Kawerau District11
Opotiki District11
Gisborne District†16
Wairoa District10
Hastings District15
Central Hawke's Bay District13
New Plymouth District17
Stratford District11
South Taranaki District13
Ruapehu District14
Wanganui District13
Rangitikei District12
Manawatu District14
Horowhenua District12
Tararua District13
Kapiti Coast District14
Masterton District12
Carterton District13
South Wairarapa District10
South Island
Nelson City†13
Christchurch City25
Dunedin City19
Invercargill City13
Tasman District†14
Marlborough District†14
Kaikoura District8
Buller District12
Grey District8
Westland District13
Hurunui District10
Waimakariri District15
Selwyn District14
Banks Peninsula District10
Ashburton District13
Timaru District13
Mackenzie District11
Waimate District12
Waitaki District16
Queenstown-Lakes District16
Central Otago District14
Clutha District15
Southland District13
Gore District12
Chatham Islands Territory9

Unitary authorities. This type of authority is administered by a territorial authority, which also has regional powers. The 1989 reform legislation prevented any unitary authorities being established other than in Gisborne. However, the 1992 amendment not only created three more unitary authorities (Marlborough District, Tasman District and Nelson City) but made it possible for others to be created through local initiatives.

Community boards

A community board is primarily an advocate for its community, and a means whereby the territorial authority can consult with the community. Any power the community board has is as delegated by the territorial authority, but cannot include such powers as levying rates, appointing staff, or owning property.

Community boards may be partly elected by the community and partly appointed by the territorial authority from among its own members, or may be entirely elected. Community boards can be established anywhere in New Zealand to serve any number of inhabitants, they may be established upon the initiative either of a given number of electors or of the territorial authority, or as provided in a re-organisation scheme. Community boundaries often coincide with those of wards (divisions of the district for electoral purposes). These boards have between four and 12 members each.

Special purpose local authorities

In 1989 the number of special purpose local authorities was greatly reduced. Catchment boards, harbour boards, pest destruction boards and land drainage boards (among others) disappeared, with their functions reallocated either to regional councils or, to a lesser extent, to territorial authorities. The categories remaining include: scenic and recreation boards, airport authorities and, for the time being, area health boards, hospital boards and electric power boards. There are also a few one off authorities including: the Aotea Centre Board of Management; the Canterbury Museum Trust Board; the Council of the Auckland Institute and Museum; the Marlborough Forestry Corporation; the Otago Museum Trust Board; and the Selwyn Plantation Board. The Selwyn Plantation Board is in the process of being wound up with its assets being transferred to a company owned by the participating territorial authority.

Auckland Regional Services Trust. This is a local authority unique to the Auckland region which has been established to assume ownership of the Auckland Regional Council's service-delivery activities and community assets. It is charged with disposing of those assets as soon as it is prudent to do so, except for bulk water and sewerage (which must not be sold) and applying proceeds to the retirement of debt.

The trust's first election was in October 1992. Its six members are elected by the regions electors. Local authority members and employees are prohibited from being trust members or directors of its companies and trust members may not be directors of those companies either.

The trust is funded by dividends, rentals, investments and asset sales. Surplus monies may be applied at the trust's discretion to a separate “community trust” (under the Trustee Act 1956), which the trust is required to establish by the time it starts making a surplus. The community trust will distribute its funds for charitable and other public purposes.

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 1998. 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 required to review the number of members and the number and size of their electorates.

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 is 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.

Counting more than 52,000 votes in the Dunedin local body elections.

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 enrolment forms received from ratepayers.

Membership of local authorities. Subject to meeting certain residency and citizenship requirements, 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 Local Government Commission comprises three members, one of whom is the chairperson, appointed by the Minister of 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-objections 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 1992 amendments to the Local Government Act 1974 considerably modified in 1994, the commission assumed new responsibilities relating to the consideration 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.

From time to time, the commission carries out investigations of particular matters affecting local government and reports on them to the Minister of Local Government.

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.

3.5 National emblems and anthems

New Zealand Flag

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

New Zealand has two national anthems: ‘God Defend New Zealand’ and ‘God Save the Queen’. ‘God Defend New Zealand’ is a poem written by Thomas Bracken and set to original music composed by John J Woods. It was first performed in public on Christmas Day 1876 and formally adopted as national hymn in 1940. In 1977, with the permission of Her Majesty the Queen, the Government adopted both ‘God Defend New Zealand’ and the traditional ‘God Save the Queen’ as national anthems of equal status in New Zealand to be used in the order appropriate to the occasion. (Refer to supplement to New Zealand Gazette published Monday 21 November 1977.)

A royal inspection—Alf's Imperial Army at the National War Memorial.

Table 3.21. ENGLISH AND MAORI TEXTS OF THE NEW ZEALAND ANTHEM

GOD DEFEND NEW ZEALANDAOTEAROA
1. God of nations at thy feet In the bonds of love we meet. Hear our voices, we entreat, God defend our free land. Guard Pacific's triple star From the shafts of strife and war, Make her praises heard afar, God defend New Zealand.1. E Ihoa Atua, O nga Iwi! Matoura, Ata whakarongona; Me aroha roa. Kia hua ko te pai; Kia tau to atawhai; Manaakitia mai Aotearoa.
2. Men of every 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 whereo, 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

  • 3.1 Ministry of Justice.

  • 3.2 Clerk of the House of Representatives; Parliamentary Service; Department of the Prime Minister and Cabinet; Electoral Commission.

  • 3.3 State Services Commission; government departments as listed; Audit Office; Office of the Ombudsmen; Office of the Privacy Commissioner; Office of the Parliamentary Commissioner of the Environment; Public Trust.

  • 3.4 Local Government Commission.

  • 3.5 Department of Internal Affairs.

Special articles

Department of Conservation, Government Buildings Update; Crown Company Monitoring Advisory Unit; Dr Henare Broughton; Ko Huiarau (The United Tribes of New Zealand and Crown of England), Pururi Press, 1991.

Further information

Constitution

Burrows J F (1992), Statute Law in New Zealand, Butterworths.

Chen M and Palmer G (1993), Public Law in New Zealand: Cases, Materials, Commentary and Questions, Oxford University Press.

Harris P and Levine S (1994) The New Zealand Politics Source Book, 2nd ed, Dunmore Press.

Joseph P A (1993), Constitutional and Administrative Law in New Zealand, Law Book Company.

Joseph P A ed. (1995), Essays on the Constitution, Brooker's.

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

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

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

Parliament and the Cabinet

Cabinet Office (1991), The Cabinet Office Manual, Wellington.

Electoral Commission (1996), Your guide to MMP: The Basic Facts, (pamphlet), Wellington.

Electoral Commission (1996), More about MMP, Wellington

Hawke G ed. (1993) Changing politics? The Electoral Referendum 1993, Institute of Policy Studies, Wellington.

General Election, The. (Parl paper E9).

McGee G, (1994) Parliamentary Practice in New Zealand, 2nd edition, Wellington, (Publisher)

McLeay E (1995), The Cabinet and Political Power in New Zealand, OUP

Parliamentary Bulletin. GP Legislation Services (weekly when the House of Representatives is sitting).

Report of the Department of Internal Affairs (Parl paper G7).

Report of the Department of the Prime Minister and Cabinet (Parl paper G48).

Report of the Office of the Clerk of the House of Representatives. (Parl paper A8).

Report of the Parliamentary Service Commission (Parl paper A2).

Report of the Royal Commission on the Electoral System; Towards a Better Democracy. (Parl paper H3, 1986)

Report of the Standing Orders Committee on the Review of Standing Orders, 1995 (Parl paper 1,18A).

State Services Commission, (1994), New Zealand's Reformed State Sector, Wellington.

State Services Commission, (1995), Public Service Principles, Conventions and Practice, Wellington.

State Services Commission (1995), Working Under Proportional Representation: A Reference for the Public Service, Wellington.

Report of the Standing Orders Committee of Parliament, 1995

Standing Orders of the House of Representatives. 1996.

Who's Who in the New Zealand Parliament. Parliamentary Service, 1993.

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

Jackson K (1987), The Dilemma of Parliament, Allen & Unwin.

McGee D G (1994), Parliamentary Practice in New Zealand, 2nd ed, GP Publications.

Ringer J B (1992), An Introduction to New Zealand Government, Hazard Press.

State sector

Boston J, Martin J, Pallot J and Walsh P, (1991), Reshaping the State: New Zealand's Bureaucratic Revolution, OUP, Auckland.

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

Duncan, I and Bollard, A (1992), Corporatisation and Privatisation: Lessons from New Zealand, Auckland, Oxford University Press.

Easton B, (1994), Economic and Other Ideas Behind the New Zealand Reforms, Oxford Review of Economic Policy Vol 10, no 3.

Kelsey J, (1993) Rolling Back the State: Privatisation of Power in Aoteroa/New Zealand, Wellington, Bridget Williams Books.

Martin J, (1991), Public Service and the Public Servant, State Services Commission, Wellington.

Reports of the Controller and Auditor-General (Parl paper B28).

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

Report of the Ombudsmen (Parl paper A3).

Report of the State Services Commission (Parl paper G3).

Steering Group on State Sector Reforms (State Services Commission), (1991), Review of the State Sector Reforms, Wellington.

Treasury (1995), Fiscal Responsibility Act 1994: An Explanation, Wellington.

Treasury, (nd) Putting it Simply: an Explanatory guide to Financial Management Reform, Wellington.

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

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

Local government

Bush, G (1995) Local Government and Politics in New Zealand, Auckland University Press.

Report of the Department of Internal Affairs (Parl paper G7).

Report of the Local Government Commission (Parl paper G9).

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

Chapter 4. International relations and defence

ANZAC ceremony at the Cenotaph, Auckland War Memorial Museum.

4.1 Relations with other countries

Independent New Zealand foreign policy dates from 1935. In 1943 the government established a career foreign service, and began to station its own diplomatic representatives overseas. Today, New Zealand has 49 diplomatic and consular posts located in 41 countries and territories. Multiple accreditation allows some New Zealand representatives to cover other countries from their bases.

The Ministry of Foreign Affairs and Trade is responsible on behalf of the government for all major policy functions related to New Zealand's external relations. (The ministry's name changed from the Ministry of External Relations and Trade on 1 July 1993.) The main thrust of the ministry's work is directed to the management of New Zealand's bilateral relations with other countries and interests in international institutions. Other functions include the management of New Zealand official development assistance, provision of consular services to other New Zealanders abroad, provision of operational and administrative support services to other New Zealand government agencies overseas.

The ministry is the official channel of communication between the New Zealand Government and other governments. It also administers Tokelau and undertakes external affairs and defence functions for the Cook Islands and Niue, after consultations with their respective heads of government.

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 developing and implementing 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 issue passports and visas overseas.

For the addresses of New Zealand's overseas posts, and for information on diplomatic, consular and other representation in New Zealand, refer to the ministry's 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 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, conduct their own external relations and enter into international agreements. The constitutional relationships provide for the exercise by New Zealand of certain responsibilities for defence and external relations but 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 4.3, New Zealand territories.

The region (not including Australia) is of growing importance to New Zealand, with exports of $704.6 million in 1994. Fiji, Papua New Guinea and the French territories are the most important markets. Imports, amounting to about $231 million, came principally from Papua New Guinea, Fiji and Nauru. New Zealand has taken special measures to foster trade relations with South Pacific countries and New Zealand investment in the region. A regional trade agreement, South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA), provides duty-free access to New Zealand (and Australia) on a non-reciprocal basis for 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.

A Marlborough company builds a bure at Abaca village in phase one of the Mt Koroyanitu ecotourism project in Fiji.

There is close co-operation with the South Pacific on defence matters. New Zealand's armed forces undertake mutual assistance programmes, joint exercises and maritime surveillance. They provide immediate help after natural disasters such as cyclones, and undertake civil development projects in isolated areas.

In 1971 the South Pacific Forum was created to build up regional co-operation in the South Pacific. Meetings are held annually, most recently in Brisbane in 1994 and Madang in 1995. The forum provides an opportunity for states to discuss common problems, exchange views, consider priorities, and plan programmes for mutual regional benefit. The topics considered include regional trade, shipping, civil aviation, telecommunications, the environment, the law of the sea, fishing, disaster relief, nuclear testing, regional security and decolonisation. In 1995 economic and development issues were once again a major topic of the forum, which had as its theme ‘Securing Development Beyond 2000’. The forum also issued a strong statement expressing its outrage at the recent resumption of nuclear testing in the Pacific.

The forum secretariat, based in Suva, is given the task of implementing forum decisions. It works on a broad range of economic and political questions. The forum established the South Pacific Forum Fisheries Agency in Honiara to facilitate the rational utilisation and conservation of the region's marine resources, and the South Pacific Regional Environment Programme (SPREP), located in Apia, Western Samoa.

The Pacific Forum Line (PFL) is another endeavour in South Pacific regional co-operation. Twelve member nations are shareholders in the shipping line, the exceptions being Australia, Federated States of Micronesia and Vanuatu. The shipping line aims to facilitate regional trade through improved shipping links. Recently it was agreed to put the PFL on a more commercial footing.

Established in 1947 under the Canberra Agreement, the South Pacific Commission (comprising the independent countries of the South Pacific, the non-self-governing territories, and metropolitan governments such as France, United States and, until recently, the United Kingdom) 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 build a sense of regional identity.

Australia

A diplomatic office was established in 1943 (trade posts had been established as early as 1906). The Australia-New Zealand agreement (known also as the ANZAC Pact or Canberra Pact) was signed in 1944 and the ANZUS treaty in 1952. In 1983, the two countries concluded the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER for short). Complete free trade of goods was achieved on 1 July 1990. The services protocol was signed in 1988 and provided for the progressive removal of obstacles to the flow of services and investment between the two countries. CER was reviewed again in 1995. Australia is the most important trading partner for New Zealand, which is in turn Australia's largest single market for manufactured exports. See also section 22.2, Trading partners.

New Zealand ministers participate in Australian state/federal ministerial councils covering a wide range of portfolios. There are regular meetings of foreign affairs, trade and defence ministers. The Closer Defence Relations (CDR) process has reinforced existing defence links. In 1989, New Zealand agreed to acquire two frigates through the joint ANZAC ship project with Australia. There is free movement of people under the Trans-Tasman Travel Arrangement. A social security agreement was signed in 1994 updating the previous agreement. A double taxation agreement was signed in 1995.

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 imports. It 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 Bangkok, Beijing, Ha Noi, Hong Kong, Jakarta, Kuala Lumpur, Manila, New Delhi, Shanghai, Seoul, Singapore, Tokyo and Osaka.

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 is also a participant in the ASEAN Regional Forum, a Ministerial-level body, launched in 1994, which discusses regional security issues. The New Zealand Defence Force maintains defence co-operation programmes with six of the seven ASEAN countries (excluding Viet Nam), and works with Singapore and Malaysia 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 at all levels in APEC leaders, ministerial and officials working group meetings. At the non-governmental 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 co-operates closely with the ASEAN nations and other regional partners in wider international forums, including the United Nations (UN) and the World Trade Organisation (WTO).

Bilateral trade with most of our Asian trading partners is rising fast. The economic relationship with Japan is among our most important and Japan remains our second largest export market. Trade is increasingly diversified, helped by the complementary nature of the Japanese and New Zealand economies, and tourism and investment are playing an important role in the development of New Zealand's economy. Economic reform and significant GDP growth rates in China are opening up exciting possibilities for New Zealand in Asia's largest market. New Zealand's two-way trade with China customarily exceeds NZ$1 billion annually, and it was New Zealand's eighth largest export market in the year to December 1995. Two-way investment is also growing. Annual two-way trade with South Korea has recently boomed to over NZ$1 billion, with a substantial trade surplus in New Zealand's favour. Trade with Hong Kong and Taiwan is also increasing and these markets offer considerable potential.

Launched in November 1991, the Asia 2000 programme is a major government initiative to encourage New Zealanders to build up the skills and awareness necessary to be even more effective participants in the Asia-Pacific region. Initially administered by the Ministry of Foreign Affairs and Trade, the aims and objectives of the programme are now carried out separately by the Asia 2000 Foundation. In support of the foundation's objectives, the Ministry of Foreign Affairs and Trade continues to administer the Asia 2000 programme of inward visits by key business people from Asian countries.

Americas

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

OVERSEAS REPRESENTATION

Canada. New Zealand and Canada enjoy a positive and close relationship, based on shared bilateral Commonwealth, UN and Asia/Pacific interests. The two countries co-operate closely on a range of issues, including disarmament, international peacekeeping and security issues, environmental concerns, Asia-Pacific policies and international economic matters. Canada is an important market for our agricultural goods, particularly beef. Bilateral trade and economic relations are conducted under the umbrella of the 1981 Trade and Economic Cooperation Agreement (TEC) which provides for, among other things, regular consultation on trade issues.

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, Peru and Venezuela, 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 Paulo 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.

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 agriculture, forestry and energy sectors. New Zealand provides a modest amount of economic and social development assistance to the region. New Zealand shares interests 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.

Europe

Western Europe. The European Union (EU) is one of New Zealand's four top markets, along with Australia, Japan and the United States. The outcome of the Uruguay Round of GATT negotiations has placed our major sheepmeat and dairy exports to the EU on a firmer footing, and increased the quantities which New Zealand may export. Our other main primary product exports such as apples, kiwifruit, fish and timber have largely unrestricted access.

New Zealand exports are benefiting from the European Single Market, adopted on 1 January 1993, through the disappearance of multiple standards and import regulations. Some of the measures to provide for the free movement of goods, services, capital and people within the EU are still to be fully implemented.

The countries of the EU are important partners for New Zealand in investment and as a source of technology and expertise. An Exchange of Letters on Science and Technology Cooperation between the EU and New Zealand has been concluded, and a number of bilateral agreements in areas of specific interest to New Zealand are under consideration. The New Zealand economy benefits from European migrants with capital and entrepreneurial skills. Tourists also make a significant contribution to the New Zealand economy.

New Zealand maintains a high level of political consultation with the EU. Since 1990 New Zealand has had the opportunity for a high-level meeting with each of the revolving six-monthly presidencies of the EU. Close regular contact is maintained by New Zealand's network of posts in western Europe with individual EU member states, and with the European Commission in Brussels, on a range of economic and political issues.

Central and eastern Europe. In general the countries of central and eastern Europe continue to evolve from one-party states and centrally-planned economies towards political pluralism and free-market economies. In general too, they are seeking to strengthen their links with western Europe, and with the economic and security forums of western Europe. However the pace of political and economic reform has been uneven.

New Zealand has sought to assist this reform through its involvement in the EU-led G24 process and its membership of the European Bank for Reconstruction and Development. A number of joint ventures, mainly in the field of agricultural technology, have been established in the region.

New Zealand has an interest in the conflict in Bosnia Herzegovina stemming from its membership of the United Nations Security Council in 1993 and 1994. The government decided in May 1994 to send 250 peacekeeping troops to the former Yugoslavia as part of the United Nations Protection Force, since withdrawn in 1995.

Responsibility for New Zealand's government-to-government relations with the Czech Republic, Hungary, Poland and Slovakia lie with the New Zealand embassy in Bonn and for Bosnia and Croatia with the embassy in Rome. Commercial relations with central and eastern Europe are handled by the Tradenz office in Hamburg.

Former Soviet Union. Trade remains the central component of New Zealand's relations with the states of the former Soviet Union (FSU), the Russian Federation being the principal trading partner. Delays in payment caused by a shortage of hard currency disrupted trade with Russia for a time, but many exporters are now doing business for cash payments in a range of products, particularly foodstuffs and consumer goods. The Russian market is a difficult one but can be very rewarding. Exporters are seeking new methods of securing contracts, including building relationships with regional executives, especially in the Russian Far East (RFE).

There is a direct shipping route between New Zealand and the RFE, and several New Zealand companies have offices there. The involvement of Russian and Ukrainian fishing vessels also adds considerable value to the economic relationship.

Investment in, and technical assistance to, the countries of the FSU, coupled with the implementation of economic reforms, limited though these are in some cases, are helping to create opportunities for traders in the medium term. New Zealand consultants are undertaking projects for international agencies as a part of the economic reconstruction of the FSU.

New Zealand has an embassy in Moscow which is accredited to Belarus, Estonia, Kazakhstan, Latvia, Lithuania, Turkmenistan, Ukraine and Uzbekistan.

Middle East

New Zealand has significant economic interests in the Middle East. The region is an important market for New Zealand's agricultural exports and a source of crude oil. In the year ended June 1995, New Zealand exports to the region totalled $703 million. Imports for the same period were $678 million. New Zealand has embassies in Tehran, Riyadh and Ankara, and cross-accreditations to Bahrain, Israel, Egypt, Jordan, Kuwait, Oman, United Arab Emirates, Qatar and Pakistan. The New Zealand Trade Development Board opened a regional office in Dubai in early 1994.

For more than 40 years New Zealand has maintained an even-handed policy on the Arab-Israeli issue, consistently upholding the right of the Palestinian people to self-determination and, with equal consistency, Israel's right to exist within secure borders.

New Zealand warmly welcomed the signing of the Israeli-Palestinian accords in 1995 on Palestinian interim self-government, and the July 1994 Washington Declaration ending the state of war between Israel and Jordan.

New Zealand has contributed a contingent to the Sinai Multinational Force and Observers (MFO) based on the Egypt/Israel border since 1982. The government also contributes military personnel to the United Nations Truce Supervision Organisation (UNTSO), headquartered in Jerusalem.

New Zealand surveyors participated in the UN demarcation of the Iraq/Kuwait border following the Gulf War. The government has also made available military personnel to serve with the United Nations Special Commission (UNSCOM) operation, which is given the task of eliminating Iraq's weapons of mass destruction and verifying that Iraq does not resume its weapons programmes. During its term on the Security Council (1993-94) New Zealand chaired the committee charged with administering the UN sanctions regime against Iraq. In the latter part of 1995 New Zealand contributed a frigate (HMNZS Wellington) to the Multinational Interception Force (MIF), which monitors the sanctions regime in the Persian Gulf.

Africa

In recent years contact between New Zealand and Africa has increased. New Zealand's membership of the United Nations Security Council (1993-94) led to a closer involvement in a wide range of African issues. New Zealand's ties with Commonwealth African countries were further strengthened by the holding of the Commonwealth Heads of Government Meeting (CHOGM) in Auckland in November 1995. New Zealand was named as one of eight countries to take part in a ministerial action group to deal with violations of Commonwealth principles.

The New Zealand High Commissioner in Harare is accredited to Botswana, Kenya, Mozambique, Namibia, South Africa, Tanzania, Zambia and Zimbabwe. New Zealand posts in London, Madrid, Paris and Riyadh are accredited to Nigeria, Morocco, Algeria and Egypt respectively. Trade and political contact with South Africa has developed rapidly since the democratic elections in April 1994. During the post-CHOGM visit of President Mandela both countries announced their intention to establish diplomatic representation in each other's capitals.

New Zealand has a long-standing involvement in development co-operation in Africa. Through its Official Development Assistance (ODA) programme, New Zealand gave over $3 million to support disaster relief in Africa in the 1994-95 financial year. New Zealand also contributes core funding to Commonwealth and UN bodies working on projects in Africa. A bilateral ODA programme to eight southern African countries includes funding for scholarships for African students to study in New Zealand, small livelihood projects, and primary education and training. In the 1995-96 financial year bilateral ODA will be worth $2.5 million.

New Zealand is also participating in UN peacekeeping and de-mining missions in Angola and Mozambique. It also contributed to a Commonwealth team that observed the October 1995 elections in Tanzania.

Total trade with African countries accounts for only a small percentage of New Zealand's global trade. Among the major exports to the region are dairy products, fish and electrical equipment. Imports from Africa include machinery, tobacco, plastics and textile fibres. In 1994-95 Algeria, South Africa, Egypt and Mauritius were New Zealand's most important markets in Africa.

Assistance to developing countries

Overview. New Zealand's Official Development Assistance (NZODA) Programme provides assistance to developing countries to help them better meet their peoples' economic and social needs.

The programme strengthens the links between New Zealand and the peoples of developing nations, and serves to foster mutually beneficial relationships. It also contributes to the achievement of New Zealand's own external relations and trade policies by helping to advance international economic prosperity, to maintain peace, security and stability, and protect the global environment. The programme is an investment in the regional and global future New Zealand shares with other nations.

New Zealand's ODA Programme is managed by the Development Co-operation Division of the Ministry of Foreign Affairs and Trade in conjunction with New Zealand's diplomatic posts in partner countries. In carrying out its work, the development expertise and experience of the division are complemented by those of a wide range of New Zealanders and partner country counterparts drawn from both the private and public sectors.

The NZODA Programme is funded by two core payments set by Parliament. For the 1995/96 financial year these are:

  • $164.670 million as Non-Departmental Payments (NDP). The NDP is the core of the ODA allocation and covers transfers of New Zealand goods, services and funding.

  • $11.723 million as ODA Management, funded as one of the Ministry of Foreign Affairs and Trade output classes.

Some other activities or transfers that meet the OECD definition of Official Development Assistance are also made from other government sources. The total disbursement of NZODA currently amounts to some 0.24 percent of New Zealand's GNP (gross national product).

New Zealand's ODA Programme is divided for financial and administrative purposes into two broad schedules of activities—bilateral and multilateral.

A New Zealand corporal teaches Cambodian villagers how to detect landmines.

The bilateral schedule. The bilateral schedule is dominated by direct assistance on a one-to-one country-on-country basis, comprising in most cases a wide range of developmental projects in 20 major partner countries in the South Pacific, South-east Asia and China. Direct bilateral assistance of this kind accounts for over half of New Zealand's 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.

Over the years development assistance has been provided in most sectors of New Zealand expertise including agriculture, communications, conservation and environment, education and training, energy, fisheries, forestry, health, industries, public works, social infrastructure, tourism, transport, water resources and women in development programmes. New Zealand participates in projects by contributing technical assistance, cash grants, material supplies and training.

As environmental concerns have taken a higher profile in NZODA, the list of New Zealand technology transfer has grown to include nature conservation, national parks management, land use planning, soil conservation and environmental education.

The emphasis of New Zealand's development co-operation with Pacific Island countries is firmly on human resource development. As well as the considerable amounts allocated for study and training awards in New Zealand and at regional South Pacific institutions, many NZODA development projects provide technical assistance involving in-country training and staff development. Outer island and rural development are also a central feature of several of the NZODA Pacific Island country programmes.

New Zealand also promotes development of the South Pacific region as a whole with contributions to the South Pacific Forum Secretariat, the Forum Fisheries Agency, the South Pacific Commission and the South Pacific Regional Environment Programme, amongst others.

New Zealand is extending its development co-operation with Asia. In addition to the various bilateral and regional programmes, the Asia Development Assistance Facility (ADAF) encourages New Zealand firms and consultants to identify developmentally sound activities in the region based on New Zealand expertise and commercial strengths. A major new project aimed at addressing some of the specific training needs of the greater Mekong Basin sub-region is being developed in co-operation with Khon Kaen University in Thailand.

Education and training. New Zealand recognises that people are at the centre of development, and that human resource development (HRD) is the key to social and economic progress in developing countries. Besides funding of scholarships, training and programmes to strengthen education systems and institutions under bilateral country programmes, cross-regional scholarships are also made available. These include the Aotearoa Scholarships, Commonwealth Scholarships, Geothermal Diploma Students and Postgraduate Scholarships.

Emergency and disaster relief. Substantial funding is also directed to emergency and disaster relief operations (both government-to-government and through international agencies), and also to the ongoing work of non-government organisations working at grass-roots level in developing countries. Emergency and disaster relief is allocated as the need arises. Where natural disasters occur in neighbouring countries of the Pacific and South-east Asia, New Zealand is often able to send supplies, medical teams or other skilled people to directly help recovery work. When disaster strikes in more distant countries, New Zealand usually responds by making cash grants to international relief appeals, often under the auspices of the major international relief organisations or NGOs.

Non-government organisations. NZODA support for NGOs engaged in overseas development is provided through the Voluntary Agencies Support Scheme (VASS) and through funding Volunteer Service Abroad (VSA).

The multilateral schedule. 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, UN agencies, Commonwealth agencies and various regional development organisations, such as the Forum Secretariat and Forum Fishery Agency.

Participation in institutions such as the International Development Association, the Asian Development Bank, the United Nations Development Programme and the Commonwealth Fund for Technical Co-operation gives New Zealand a voice 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 on the ground. They are respected for the neutrality and the degree of expertise they can bring to bear on a wide range of development issues. New Zealand also finances individual projects with multilateral agencies.

New Zealand recognises that sustainable development and good government are closely linked. Good government includes essential elements such a political accountability, reliable and equitable legal frameworks, bureaucratic transparency and effective and efficient public sector management. To mark the hosting of Commonwealth Heads of Government Meeting (CHOGM) in Auckland in November 1995, a Commonwealth Good Government programme is being established within NZODA to provide assistance in this field to Commonwealth developing countries.

Table 4.1. OFFICIAL DEVELOPMENT ASSISTANCE PROGRAMME 1995-96

Programme$(000)
Source: Ministry of Foreign Affairs and Trade.
Bilateral schedule—
      South Pacific Programmes—
      Cook Islands12,300
      Niue8,400
      Tokelau5,300
      Western Samoa7,300
      Tonga5,600
      Papua New Guinea5,900
      Fiji5,000
      Solomon Islands4,750
      Vanuatu4,450
      Kiribati3,100
      Tuvalu2,100
      Other Pacific Island Countries725
      South Pacific Regional Programmes2,350
      South Pacific Head of Mission Funds630
                 Total South Pacific Programmes67,905
Other bicultural programmes—
      ASEAN and other Asia programmes22,450
      Americas/Africa programmes3,350
      Emergency and disaster relief4,500
      Voluntary agencies7,989
      Education and training (cross-regional scholarships)19,690
      Aid advisory committee43
                 Total other bilateral programmes58,022
                 Total bilateral schedule125,927
Multilateral schedule—
      International financial institutions18,110
      South Pacific agencies9,525
      United Nations agencies8,595
      Commonwealth agencies1,640
      Other organisations873
                 Total multilateral schedule38,743
                 Total Official Development Assistance164,670

4.2 International Organisations

United Nations

New Zealand was a founding member of the United Nations organisation in 1945. Successive governments have strongly supported it as 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.

New Zealand was elected as a non-permanent member of the Security Council for the two years 1993-94. During this period it chaired the Iraq Sanctions Committee established under Resolution 661, led the Security Council Mission to Somalia and participated in Security Council Missions to Bosnia and Mozambique.

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 and where it can support efforts to secure lasting peace and security. In 1995 the UN celebrated the 50th anniversary of its founding.

Students stage a mock United Nations General Assembly in the Beehive, organised by the United Nations Association.

Peace operations. During 1994-95, New Zealand strengthened its firm commitment to UN peacekeeping by maintaining at an historically high level the number of its personnel involved in peacekeeping operations. Over the period the New Zealand government authorised the deployment of over 300 personnel for peace support operations (including de-mining) in the Middle East (UNTSO and UNSCOM), the former Yugoslavia (UNPROFOR), Africa (UNDSOMII, UNAVEM and ONUMOZ), Haiti and Cambodia. In addition to the provision of personnel, New Zealand (as a UN member), is legally obliged to contribute financially to the cost of UN peacekeeping operations. In 1994-95 New Zealand's share of these costs amounted to more than $13 million.

Humanitarian relief. In 1994-95 New Zealand contributed $4.0 million to humanitarian relief. The greatest part was used in Africa and more than half of that was used in Rwanda and its region. New Zealand contributed extra payments to multilateral organisations in recognition of the pressure on these agencies to provide assistance where conflict and famine occur. These organisations included the United Nations High Commissioner for Refugees (UNCHR), the United Nations Children's Fund (UNICEF) and the International Committee of the Red Cross (ICRC).

Human rights. Coinciding with the 50th anniversary year of the founding of the UN, the World Summit for Social Development held in March 1995 brought together the world's leaders to address the question of poverty. The resulting documents—the Copenhagen Declaration and Programme of Action—focussed on four substantive areas: establishing an environment to enable social development; the eradication of poverty; employment; and social integration. New Zealand played an active role in the meeting giving particular attention to trade, human rights, workers' rights, financial resources, structural adjustment and indigenous people's issues.

A Hiroshima Day 50th anniversary remembrance at Wellington's Frank Kitts lagoon, 6 August 1995.

Women's issues were also a focus of attention in 1995, with the Fourth World Conference on Women held in Beijing in September. The conference sought to review the progress made by countries on the implementation of the Nairobi Forward Looking Strategies for the Advancement of Women established 10 years earlier and to put in place concrete measures to ensure the advancement of women. The meeting produced the Beijing Declaration and the Platform of Action for the Advancement of Women, which address 12 critical areas of concern. New Zealand played an active role in the conference, with particular emphasis on health issues, inheritance, the environment, and disarmament.

Indigenous peoples' issues continued to receive international attention in 1995, with the launch of the Decade for the World's Indigenous Peoples. New Zealand co-sponsored the UN Resolution establishing the Decade and dedicated the first year as Te Tau o Te Reo Maori, the Year of the Maori Language, to promote wider understanding of the language. New Zealand also participated in international activities focusing on indigenous peoples, including the first meeting of the intergovernmental working group to consider the Draft Declaration on the Rights of Indigenous Peoples.

As a party to international human rights covenants and conventions, New Zealand is required to report regularly to the UN monitoring bodies on the measures it has taken domestically to comply with international standards. New Zealand presented its Third Periodic Report to the United Nations under the International Covenant on Civil and Political Rights and its Tenth and Eleventh (consolidated) Report under the Convention on the Elimination of All Forms of Racial Discrimination. In 1996 New Zealand will submit its Second Periodic Report under the International Covenant on Economic, Social and Cultural Rights and its Second Report under the Convention Against Torture, and Other Cruel and Degrading Treatment or Punishment.

In 1995, New Zealand continued to give financial support in the field of human rights, including funds to assist victims of torture, advisory services for indigenous populations and national human rights institutions. At the commission on Human Rights and the Third Committee of the General Assembly (which deals with social, cultural and humanitarian issues) New Zealand supported resolutions addressing a wide range of current international human rights concerns, in particular the effective functioning of the monitoring bodies set up under international human rights instruments and mainstreaming of women's issues within the UN system.

The specialised agencies. The UN 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 levels of health’, the International Labour Organisation (ILO) seeks to improve working and living conditions, and the United Nations Educational, Scientific and Cultural Organisation (UNESCO) seeks to increase international co-operation though education, science and culture. In November 1995 New Zealand was elected to the Executive Board of UNESCO for the period 1995-1999.

PEACEKEEPING COMMITMENTS
As at 30 April 1996

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), climate and weather (WMO) and industrial development (UNIDO).

Contributions to the United Nations. Contributions to the UN's budget are based on members' capacity to pay. New Zealand's assessed contribution rate is set at 0.24 percent of the regular budget, resulting in annual dues in 1995 of $US2.62 million. Contributions to the budgets of specialised agencies are fixed according to a scale of assessment agreed by the membership as a whole. New Zealand's assessed contributions to peacekeeping operations are also assessed at 0.24 percent. In 1994-95, these dues amounted to more than $13 million.

World Trade Organisation

The World Trade Organisation (WTO) was established on 1 January 1995, and acts as a single ‘umbrella’ over the General Agreement of Tariffs and Trade (GATT) and the multilateral agreements that resulted from the Uruguay Round.

The GATT was negotiated in 1947 and came into force in 1948. Its basic aim has been to liberalise world trade and to place it on a secure basis, thereby contributing to international economic growth and development. By the time the WTO came into force, the GATT's Contracting Parties accounted for about 90 percent of world trade.

Like the GATT, which it has now subsumed, the WTO is a multilateral trade treaty. It provides both a code of rules and a forum in which countries can discuss and address their trade problems and negotiate and enlarge world trading opportunities. It is underpinned by certain fundamental principles:

Trade without discrimination: The ‘most favoured nation’ clause stipulates that each WTO member must grant all other members treatment as favourable as that which they grant any other country. This principle is particularly important for countries such as New Zealand, since it ensures that larger countries cannot adopt discriminatory trade policies (except for preferential free trade areas and customs unions).

Protection through tariffs: Any protection provided to domestic industry should be in the form of tariffs, rather than less transparent instruments such as quotas and import licensing.

The binding of tariffs at levels negotiated among members: Where tariffs have been bound, they may be increased above that level only if compensation is offered by the importing country.

National treatment: Imported products must be treated no less favourably than domestic products with respect to internal taxes, regulations and other requirements.

Consultations on the basis of equality: Any member may invoke the WTO's dispute settlement provisions in cases where it considers its WTO rights have been nullified or impaired.

Eight rounds of multilateral trade negotiations were held under the auspices of the GATT, each with the aim of liberalising trade between the contracting parties by reducing trade barriers and other measures impeding free trade. The most ambitious of these was the Uruguay Round (1986-94). In addition to establishing the World Trade Organisation, the Uruguay Round:

  • Brought agriculture effectively within the multilateral trading system for the first time.

  • Secured the eventual integration of the textiles and clothing sector into the WTO system.

  • Extended the multilateral trading system to trade in services (the General Agreement on Trade in Services).

  • Strengthened multilateral trade rules in areas such as subsidies, anti-dumping, technical barriers to trade, sanitary and phytosanitary measures, safeguards, trade-related investment measures, and dispute settlement.

  • Established a multilateral framework for protection and enforcement of intellectual property rights (TRIPS).

  • Further reduced tariffs on goods.

Other United Nations 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. Through the NZODA New Zealand contributes to 15 different UN organisations which address issues such as drug abuse, population planning, women's research and training, and assistance to refugees. New Zealand sent a delegation to the United Nations International Conference on Population and Development in Cairo which has set guidelines for population strategies for the next 20 years.

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

The IBRD currently lends about US$15.6 billion a year at market rates to developing countries with relatively high per capita income. The IDA provides interest-free loans worth about US$6.4 billion a year to the poorest developing countries. The IFC promotes growth in the private sector of developing countries by lending or investing in business enterprises without government guarantees. MIGA provides investors in developing countries with investment guarantees against non-commercial risk, 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 7,236 shares in the IBRD, which represents 0.51 percent of the total voting share. The shares have a total par value of US$723.6 million, although over 90 percent of this amount has not been called up but, together with the uncalled subscription of the other member countries, acts as a guarantee for the bank's borrowing in the financial markets. New Zealand owns 2,025 fully paid shares in the IFC which have a total par value of US$2.025 million.

New Zealand also makes contributions to the periodic replenishments of the IDA, the bank's facility for lending to its poorest developing member countries. The government decided in 1993 that New Zealand should contribute $39.58 million to the latest replenishment, amounting to a 0.119 percent share of the total replenishment. It will be paid over an eight year period from 1993.

Asian Development Bank

The Asian Development Bank (ADB) is a development finance institution. Established in 1965, it is owned by 37 countries from the Asia-Pacific region and 16 countries from Europe and North America. The ADB's principal function is to promote and finance the economic and social advancement of its 33 Asia-Pacific developing country members.

New Zealand currently holds 27,170 shares in the ADB, about 2.6 percent of the bank's voting share. The shares have a total par value of US$381.35 million. The country also makes contributions to the periodic replenishment of the ADB's Asian Development Fund, the bank's facility for lending to its poorest developing member countries. New Zealand has contributed over $51 million to the ADB since 1974.

Commonwealth

The 53 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, which have a continuing constitutional association with New Zealand, are associate members. Cameroon and Mozambique joined the Commonwealth in November 1995.

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 1995 meeting of Heads of Government took place in November in Auckland, New Zealand. In 1997, the meeting will be in Britain. Commonwealth finance ministers meet annually, and ministers of agriculture, labour, health, education, women's affairs and other portfolios also meet at varying intervals.

The links that bind the Commonwealth are not only between governments and ministers. They occur right across the non-governmental sector too. The Commonwealth has over 250 Commonwealth-wide organisations which maintain inter-Commonwealth links across a wide range of professional fields as well as areas such as sport, youth and education.

Organisation for Economic Co-operation and Development

The Organisation for Economic Co-operation and Development (OECD) based in Paris, France, is a unique forum permitting governments of the industrialised democracies to study and formulate the best policies possible in all economic and social spheres. The work of the OECD, including its annual ministerial communique is considered a crucial barometer of Western economic policy co-ordination, setting out shared views on issues of importance not only to Western interests but also to the international community generally.

The organisation provides a valuable opportunity to make New Zealand's voice heard on key macro and micro-economic issues. Not only does work through the OECD help frame New Zealand's national economic policies, it also helps define its position, at least in broad outline, in international organisations at the regional and world level (such as the WTO and the Asia Pacific Economic Co-operation).

In its standard setting and monitoring role, which is likely to grow, the OECD enjoys a comparative advantage in a niche between the national or regional level and the world level where it is usually desirable but always difficult to agree on the rules of the game. In this context, the organisation is an important link for New Zealand in the elaboration of its economic policy. We have a particular interest in the biannual publication ‘OECD Economic Outlook’ which provides a periodic assessment of economic trends, prospects and policies in member countries. The organisation's regular country reviews also provide useful insights into member economies, including our own. New Zealand's development co-operation policy is reviewed regularly by the OECD's Development Assistance Committee.

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 and Latin American economies, central and eastern Europe and the newly independent states of the former Soviet Union.

A key objective for New Zealand over the coming two years will be the negotiations related to the establishment of a multilateral agreement on investment (MAI) which began in October 1995. This agreement will provide a broad multilateral framework for international investment with high standards for the liberalisation of investment regimes, improve investment protection and establish effective dispute settlement procedures.

New Zealand is also a member of the International Energy Agency (IEA), an autonomous body of 23 member countries within the OECD framework. The primary focus of the IEA is on oil security amongst its members. However, its programme of work embraces a wide range of energy issues including energy-related environmental concerns, increased energy efficiency and use of renewable resources, the energy situation of member and non-member countries, and dialogue between energy, particularly petroleum, producers and consumers.

4.3 New Zealand Territories

Tokelau

Tokelau consists of three small atolls in the South Pacific—Atafu, Fakaofo and Nukunonu— with a combined land area of 12 square kilometres and a population of nearly 1,600. The central atoll, Nukunonu, is 92 kilometres from Atafu and 64 kilometres from Fakaofo. Western Samoa is 480 kilometres to the south.

The British government transferred administrative control of Tokelau (then known as the Union Islands) to New Zealand in 1925. Formal sovereignty was transferred to New Zealand in 1948 by an act of the New Zealand Parliament. New Zealand statute law, however, does not apply to Tokelau unless it is expressly extended to Tokelau. In practice, no New Zealand legislation is extended to Tokelau without its consent.

Tokelau is listed as a non-self-governing territory for the purposes of the self-determination principles of the United Nations Charter. This status was confirmed in 1962 when New Zealand added Tokelau to the schedule of territories under the supervision of the United Nations Special Committee on Decolonisation.

The main objective of New Zealand's relationship with Tokelau is that of fostering a greater degree of self-government and economic self-sufficiency for the people, in fulfilment of New Zealand's responsibilities under the United Nations Charter and General Assembly resolutions 1514 (XV) and 1541 (XV) covering decolonisation and the transmission of information.

The Administrator of Tokelau is Mr Lindsay Watt. He is appointed by the Minister of Foreign Affairs and Trade and is responsible for the administration of the executive government of Tokelau'.

Under a programme of constitutional change agreed in 1992, the role of Tokelau's political institutions is being better defined and expanded. The process under way enables the base of Tokelau government to be located within Tokelau's national level institutions rather than as before, within a public service located largely in Western Samoa. This process was formalised by the delegation on 27 January 1994 of the Administrator's powers to the General Fono and the Council of Faipule when the General Fono is not in session. Consequently, the public service has been relocated to the atolls.

The General Fono, comprising 27 members, remains Tokelau's paramount political institution, while the key operational relationship is between the three Faipule acting as ministers within the Council of Faipule and the senior staff of the public service. The council's head is the Ulu o Tokelau (Leader of Tokelau), a post which rotates on a yearly basis. The Ulu for 1996 is Pipio Tuia, continuing Faipule of Nukunonu.

The Faipule are the elected leaders of their respective atolls and chair the Taupulega or village council. Traditionally each village has been largely autonomous. This was confirmed by the Tokelau Village Incorporations Regulations 1986, giving legal recognition to each village and granting it an independent law-making power.

The ministerial function accordingly represents an extension of the formal responsibility of the Faipule. It can also be seen as formalising the past situation where each Faipule has provided the effective link between village and administering power; and, for that matter, between village and public service. (Before the January 1994 delegation of the Administrator's powers, the delegation was held by the head of the Tokelau Public Service, the Official Secretary, a post that is now disestablished). These changes have added to the responsibilities of the other elected official, the Pulenuku or village mayor.

Tokelau's development prospects are restricted by its small land area and population, its geographic isolation, and by the relatively high cost in these circumstances of providing education, health and other services to three communities which are so widely separated. For these reasons Tokelau relies substantially on external financial support, primarily from New Zealand. Nonetheless the development of government structures at the national level has promoted a clear wish for Tokelau to be self-reliant to the greatest extent possible.

That wish is reflected in Tokelau's first National Strategic Plan adopted by the General Fono in June 1994. This document is seen as a ‘chartered course’ for the next five to ten years. It is reflected too in Tokelau's submission to a United Nations Visiting Mission in July 1994. The submission affirms that Tokelau has under active consideration both the Constitution of a self-governing Tokelau and the act of self-determination. It also expresses a strong preference for a future status of free association with New Zealand.

Ross Dependency

The Ross Dependency consists of the land, permanent ice-shelf and islands of Antarctica between 160° east to 150° west. The land is almost entirely 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 in the Ross Dependency, with New Zealand operating Scott Base on Ross Island as a permanent base. 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 42 parties to the treaty meet regularly to consider questions within its framework.

4.4 Defence

The Governor-General as Commander-in-Chief is empowered to raise and maintain the New Zealand Naval Forces, the New Zealand Army and the Royal New Zealand Air Force. These forces, together with civilian employees, constitute the New Zealand Defence Force.

The Minister of Defence'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 chairman of the 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.

Defence policy

The Government's white paper, The Defence of New Zealand 1991, provides the current policy 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 did not try to estimate the likelihood of future threats in the Asia-Pacific region. Instead it looked at the permanent features of New Zealand's geography and situation, and factors such as demography and economic base that change only slowly, that shape New Zealand's forces and the tasks they have to carry out.

The white paper acknowledged that there is no direct threat to New Zealand's territory and stressed the importance of contributing to the defence of New Zealand's wider interests. Based upon this 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.

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

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

  • 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.

  • Develop further the existing defence co-operation with Australia, including planning, logistics and the industrial base.

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

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

  • Support the United Nations by contributing forces for peacekeeping or peacemaking operations.

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

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

The white paper concluded that New Zealand's interests were best met by a strategy of ‘;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 defined the capabilities and funding methods needed to support New Zealand's national goals as economically as possible. It measured the existing Defence Force against the yardstick of the credible minimum force. Minimum because the force must be fiscally sustainable in all 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 provided the broad framework and guidance for detailed planning. Reviews have been completed of defence funding, air and sea transport, maritime surveillance and warfare (surface and sub-surface), air combat, land forces structure, mine counter-measures, naval control and protection of shipping, and naval, utility and light helicopters. The reviews have provided a foundation for the development of an integrated, rational and transparent defence planning system.

New Zealand troops receive Christmas parcels from home—Santici Camp, Bosnia.

International defence relationships

Australia. Australia is New Zealand's main defence partner and the defence relationship underpins New Zealand's defence and security system. Considerable progress has been made in recent years in strengthening the defence relationship through a process called closer defence relations. Among the objectives are the identification of methods for a more economical and effective organisation of training, base, and infrastructure support, and an examination of options for developing the structure of the two countries' defence forces to strengthen their ability to operate together.

The Five Power Defence Arrangements. The basis of the Five Power Defence Arrangements (FPDA) is not a formal treaty but a statement in the communique following the meeting of ministers from 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 should be under external threat.

Mutual Assistance Programme. ASEAN and South Pacific countries participate in the Defence Force's Mutual Assistance Programme. The programme is a practical demonstration of New Zealand's commitment to regional security. Through training and advisory assistance, the programme contributes to the effectiveness of defence and paramilitary forces in New Zealand's South Pacific neighbourhood. It also supports development projects in the South Pacific by using the engineering and trade skills of the armed forces. The most common forms of assistance are the provision of formal courses or on-the-job training in New Zealand, the deployment overseas of training and technical teams, and the attachment of military instructors to other armed forces for periods of up to two years in Fiji, Tonga, Papua New Guinea, Vanuatu and Malaysia. In South-East Asia, the programme serves as a vehicle for regular interaction between the New Zealand Defence Force and the armed forces of the ASEAN countries. In return for training assistance, the NZDF gains valuable opportunities for bilateral exercises.

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 access to New Zealand ports by ships of the United States Navy, the ANZUS Council has not met since 1984.

Co-operation with other countries. To facilitate exchanges on military matters, defence representatives are posted to New Zealand diplomatic missions in London, Canberra, Washington, New York (United Nations), Ottawa, Jakarta, Singapore, Kuala Lumpur, Port Moresby and Suva. In addition, some members of these staffs are also accredited to other countries, such as Thailand, Brunei, France, Germany, Belgium, Solomon Islands, Tonga and Vanuatu. A Wellington-based defence adviser is accredited to Cook Islands, Niue, and Western Samoa. The United Kingdom, Australia, Papua New Guinea and Malaysia have service representatives attached to their respective High Commissions in Wellington and there are service attaches on the staffs of the French, Indonesian and United States embassies in Wellington. Several other countries have service attaches accredited to, but not resident in, New Zealand.

Armed forces overseas

Singapore. A small administrative element, known as the New Zealand Defence Support Unit, is based in Singapore to support bilateral exercises under the Five Power Defence Arrangements (FPDA) and the Mutual Assistance Programme, continued single-service deployments and training attachments. Two RNZAF officers serve at the headquarters of the Integrated Air Defence System at Butterworth, Malaysia.

United Nations Truce Supervisory Organisation (UNTSO). New Zealand military observers have been with UNTSO since 1954. They help to monitor cease-fires, supervise armistice agreements, prevent isolated incidents from escalating, and assist subsequent peacekeeping operations. New Zealand has seven observers in Israel and Syria with UNTSO.

Sinai Multinational Force and Observers (MFO). This force was established in April 1982 to verify compliance with the terms of the peace treaty concluded between Egypt and Israel in 1979. The operational headquarters of MFO is in El Gorah, Sinai. Nine countries contribute to MFO, including a 25-strong New Zealand contingent, which includes a training and advisory team, a heavy transport section and engineers.

United Nations Angola Verification Mission (UNAVEM). New Zealand contributes five officers to observer and headquarters appointments with UNAVEM, and nine personnel to the associated Angola de-mining programme.

United Nations Protection Force Yugoslavia (UNPROFOR). Nine officers are based in various locations in Bosnia, Croatia and Macedonia, and two personnel serve as staff officers at UNPROFOR headquarters in Zagreb. A mechanised infantry company group of 250 personnel was deployed to Bosnia in September 1994. The company group was rotated in March and again in September 1995, and withdrawn at the end of 1995.

United Nations Special Commission on Iraqi Weapons of Mass Destruction (UNSCOM). Following the 1991 Gulf War, the United Nations established the Special Commission to destroy, remove or render harmless weapons of mass destruction and ballistic missile capabilities. This task has been completed and the mission has moved on to its long-term monitoring phase. New Zealand has 10 personnel with the mission providing medical and administrative support.

Cambodian Mine Action Centre. This is a de-mining training centre set up by the Cambodian Government, with assistance from outside agencies. New Zealand has two de-mining instructors working at the centre.

Mozambique Mine Clearance Organisation. There are two New Zealand mine experts in Mozambique assisting the de-mining operation, including the chief technical adviser.

United Nations Headquarters, New York. Two New Zealand personnel carry out staff duties at the headquarters in New York.

RNZAF Skyhawk Detachment, Nowra. A detachment of six RNZAF Skyhawk aircraft and 56 flying and ground crew is based at Nowra, Australia in support of a combined maritime training programme. The aircraft undertake air-defence support flying for the Royal Australian Navy, providing that service with anti-air and anti-missile training.

Exercises

New Zealand ships and aircraft participate in the annual Five Power Defence Arrangements (FPDA) maritime exercise STARFISH held in Malaysian waters. They also participate in exercises in Australia.

Significant army exercises include TAIAHA TOMBAK, a company deployment to Malaysia; SWIFT EAGLE, a bilateral interoperability exercise held in Australia; TAKROUNA, a combined battalion-level field exercise; SUMAN WARRIOR, an FPDA command-post exercise held in South-East Asia; and SILICON SAFARI, a combined Australian and New Zealand war-gaming exercise.

The Air Force deploys aircraft to Australia and South-East Asia each year to participate in bilateral and FPDA air-defence and maritime exercises. The Air Force also competes for the Fincastle Trophy, an anti-submarine warfare competition between Australia, Canada, New Zealand and the United Kingdom. The Air Force participates in air-transport exercises, including the competition Exercise BULLSEYE, which was held in New Zealand in 1995, and Exercise SHORTHAUL. Exercise TROPIC ASTRA, held in Fiji in 1995, practised tactical flying operations in a tropical environment.

Personnel exchanges. Members of the Defence Force participate in annual exchanges with personnel from the defence forces of Australia, Canada and the United Kingdom.

Community assistance

Hydrographic survey. The Navy produces all nautical charts for New Zealand, including the Ross Dependency, and for a large area of the South Pacific including Niue, Tokelau, Western Samoa and the Cook Islands. The Navy 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 1994-95 survey work was at Kauri Point, the East Cape, Fiordland, the Bay of Plenty, the Bay of Islands and several Pacific atolls.

Fisheries protection. Naval ships and Air Force Orion aircraft patrol the New Zealand 200-mile Exclusive Economic Zone. All information from surveillance patrols is passed to the Ministry of Fisheries. At times fisheries officers are aboard the aircraft or ships when the patrols are conducted. The Air Force conducted 32 patrols throughout the New Zealand area and its approaches in 1994-95.

Search and rescue. All three services maintain a search and rescue capability, with naval and air units maintained on a 24-hour stand-by. The Navy and Air Force have assisted in extensive sea searches, while the Army and the Air Force have assisted police in land search and rescues. The Air Force is also able to carry out emergency medical evacuation missions throughout New Zealand and the South Pacific.

Antarctic support. Defence Force support for the New Zealand Antarctic Programme in 1994-95 included 12 return flights to McMurdo Base by Hercules aircraft. One Iroquois helicopter was stationed at McMurdo from October to February. Other support included air-cargo handling at Christchurch and McMurdo, pre-departure training camps for Antarctic Programme personnel, and fire-fighting and base-support personnel in Antarctica.

New Zealand Cadet Forces. The Cadet Forces comprise the Sea Cadet Corps, Air Training Corps and the New Zealand Cadet Corps. These are community-based youth groups which receive assistance from the New Zealand Defence Force, and support from the Sea Cadet Association of New Zealand, the Air Training Corps Association of New Zealand, the New Zealand Army Association, schools' boards of trustees, and the New Zealand Returned Services Association. There are 99 cadet units (18 Sea Cadet Corps, 31 Cadet Corps and 50 Air Training Corps) whose average parade strength is 400 officers and 2,700 cadets.

Limited Service Volunteer Scheme. Limited Service Volunteer training courses have been conducted since May 1993. Navy and Air Force involvement with the scheme ceased in December 1994 and September 1995 respectively, but courses continue to be run by the Army at Burnham Camp. The programme provides young unemployed volunteers with six weeks of residential training in outdoor activities and general life skills. A total of 1,484 volunteers had graduated from the courses by 31 October 1995.

Disaster relief. The Defence Force provides assistance in the wake of natural disasters in the South Pacific. Assistance can include post-disaster reconnaissance of damage levels, transportation of relief supplies, food, medical supplies, and engineering and communications services.

Other assistance. Other assistance provided by the Defence Force includes transportation of Department of Conservation personnel to New Zealand's outlying islands, ceremonial support for state occasions, helicopter and logistic support to the police, assistance with rural fire-fighting, explosive ordnance disposal, and support during national civil defence emergencies. The Defence Force made a major commitment to commemorations marking the fiftieth anniversary of the end of the Second World War. This included transport of Defence Force personnel and veterans to commemorations in London, and a significant parade and fly-past in Wellington on the fiftieth anniversary of VJ Day. A ministerial party and a New Zealand frigate attended the commemorations in Hawaii. The Defence Force provided air, logistic, security and ceremonial support for the royal visit and the Commonwealth heads of government meeting.

Defence expenditure

Defence funding is disaggregated to two organisations: the New Zealand Defence Force under the Chief of Defence Force and the Ministry of Defence under the Secretary of Defence. Total expenditure by the two organisations is consolidated in table 4.2.

Table 4.2. DEFENCE EXPENDITURE

ItemYear ended 30 June
1995R1996
Source: New Zealand Defence Force, Ministry of Defence.
 $(000)
Operating expenses808,327811,880
Purchase of fixed assets296,721420,287
GST on outputs to Crown165,767173,777
          Subtotal1,270,8151,405,944
Less
Sale of fixed assets12,79612,050
Supply of outputs to other parties6,91611,116
          Subtotal19,71223,166
Total net expenditure1,251,1031,382,778

Table 4.3. NUMBER OF DEFENCE PERSONNEL

As at 30 JuneNavyArmyAir ForceTotalCivilians
Source: New Zealand Defence Force.
19912,6055,0873,82311,5153,119
19922,4754,6883,61710,7802,546
19932,3404,5423,44010,3222,532
19942,18845163,36810,0722,443
19952,1524,5103,2969,9581,954

Table 4.4. INTERNATIONAL COMPARISON OF DEFENCE EXPENDITURE

 Percentage of GDP
19921993199419951996*

* Estimated.

† Year ending 30 June.

‡ Year ending 31 March.

§ Year ending 30 September.

Source: New Zealand Defence Force.

Australia†2.42.42.32.22.1
Canada‡1.71.71.51.6R1.5
New Zealand†1.71.51.51.41.5
Sweden†2.52.52.62.6 P-
United Kingdom‡4.14.13.73.4R3.2
United States of America§5.14.74.23.93.6

DEFENCE FORCE LOCATIONS

Commander poised to become the highest ranking woman in the history of the New Zealand Defence Force.

Royal New Zealand Navy

Command and administration. The Chief of Naval Staff exercises command and control of the Royal New Zealand Navy and is assisted by the Naval Staff.

Table 4.5. STATE OF THE NAVY

Source: New Zealand Defence Force.
Frigates (Leander class)WellingtonNaval Combat Force
Waikato
Canterbury
Fleet tankerEndeavour
Support shipCharles Upham Strategic Sea Transport Force
Survey shipMonowaiHydrographic Survey Force
Inshore survey craftTakapu
 Tarapunga
Research shipTuiMaritime Mine Warfare Force
Inshore patrol craftMoa
 Kiwi
 Wakakura
 Hinau  
Diving support vesselManawanui  
Training tenderKahu  
Dockyard service craftAratiki  

The first of the RNZN's ANZAC-class frigates was launched in Melbourne on 22 July 1995. The ship has been named Te Kaha, meaning strength or prowess. Te Kaha is scheduled to be handed over to the RNZN on 28 February 1997. HMNZS Charles Upham (formerly MV Sealift, formerly MV Mercandian Queen II) was commissioned into the RNZN on 18 October 1995.

Shore establishments. The naval base at Devonport, Auckland, consists of the office of the Maritime Commander (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. Collocated with the naval bases is the dockyard, a comprehensive engineering facility for the support of naval vessels. The dockyard is managed by Babcock New Zealand Limited under a commercial management agreement. HMNZS Tamaki is the naval training establishment at Narrow Neck, Devonport, although a number of training facilities are now located in the Shoal Bay area of the Devonport naval base. The RNZN Armament Depot is situated at Kauri Point and the RNZN Hydrographic Office is at Takapuna. HMNZS Wakefield is the administrative unit for RNZN personnel in the Wellington area. There are four Royal New Zealand Naval Volunteer Reserve divisions based at HMNZ Ships Ngapona (Auckland), Olphert (Wellington), Pegasus (Christchurch), and Toloa (Dunedin). There is also a port headquarters in Tauranga.

Table 4.6. STRENGTH OF THE NAVY

CategoryAt 31 MarchAt 30 June
1992199319941995
Source: New Zealand Defence Force.
Regular forces
Officers429419400395
Ratings2,1171,9111,7881,757
              Total2,5462,3302,1882,152
Royal New Zealand Naval Volunteer Reserve (all ranks)512484424370

New Zealand Army

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

  • A range of deployable Regular Force units, known as Army ready response units, held at a high level of readiness.

  • A deployable Regular Force infantry battalion group.

  • A deployable Regular and Territorial Force brigade group.

  • Force Troops, such as the Special Air Service, Force Intelligence Group, signals, movement and military police units, to operate with or independently of the above groupings.

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

Headquarters Land Force Command—responsible for the operational components of the Army, namely, 2nd Land Force Group, 3rd Land Force Group and Force Troops.

Headquarters Support Command—responsible for the provision of individual training, equipment management, static support and facilities, and base support, and commands the Army Training Group and 5th Base Logistics Group.

State of the Army. Major army units comprise two Regular Force infantry battalions, six Territorial Force infantry battalions, an armoured regiment, a field artillery regiment, an engineer regiment, four signals squadrons, a Special Air Service group and five logistics regiments. Major equipment includes 26 combat reconnaissance vehicles (tracked), 78 armoured personnel-carriers, 43,105mm guns/howitzers and 50,81mm mortars.

Table 4.7. STRENGTH OF THE ARMY

CategoryAt 31 MarchAt 30 June
1992199319941995
Source: New Zealand Defence Force.
Regular forces
Officers677687631627
Other ranks4,1353,8753,8853,883
              Total4,8124,5624,5164,510
Territorial Force (all ranks)4,5784,5494,4804,371

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 RNZAF supported by the Air Staff.

Organisation. The RNZAF in New Zealand is organised into one functional group: Air Command. With its headquarters at RNZAF Base Auckland, it is responsible for all operational functions, all training and all support functions. Operational flying units are based at RNZAF Base Auckland and RNZAF Base Ohakea, with a detachment of Iroquois helicopters at Christchurch. RNZAF Base Ohakea also hosts primary flying training, while most ground training is done at RNZAF Base Woodbourne. The RNZAF Museum is based at Wigram, with a wing of the museum at RNZAF base Ohakea.

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. Some repair and overhaul work is contracted to the private sector in New Zealand and overseas.

RNZAF A4K Skyhawks information with an RNZAF P3 Orion.

Table 4.8. STATE OF THE AIR FORCE

Operational units' role Aircraft Location
Source: New Zealand Defence Force.
Maritime 6 OrionsRNZAF Base Auckland
Transport2 Boeing 727s
9 Andovers
5 Hercules
Helicopters5 Wasps (operated by RNZN)
5 Sioux
11 Iroquois
2 Iroquois
Combat Air Support6 Skyhawks RNZAF Base Wirgram
Royal Australian Naval
Air Station Nowra, NSW
14 Skyhawks
Advanced flying training and attack flying training  RNZAF Base Ohakea
17 Aermacchi 
Flying training15 Air Trainers  

Table 4.9. STRENGTH OF THE AIR FORCE

CategoryAt 31 MarchAt 30 June
1992199319941995
Source: New Zealand Defence Force.
Regular forces:
     Officers634605620619
     Other ranks3,2232,9472,7482,676
              Total3,8573,5523,3683,295
Territorial Air Force219187136101

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 1995, three 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 three months and five days. The methods of interception used were listening devices and the copying of documents. The Intelligence and Security Agencies Bill, introduced in December 1995 proposes increasing the level of oversight and review of the service.

Table 4.1. EXPENDITURE ON INTELLIGENCE AND SECURITY AGENCIES

Year ended 30 JuneSISGCSB
Source: Security Intelligence Service and Government Communications Security Bureau.
 $(000)
199210,47019,369
199310,30420,967
19949,98719,279
19959,96419,498

Government Communications Security Bureau

Responsible to the Prime Minister, the Government Communications Security Bureau (GCSB) provides information, advice and assistance to the New Zealand government, government departments and organisations. Its functions are:

Communications security and computer security—protecting information that is processed, stored or communicated by electronic or similar means and including,

  • the formulation of communications security and computer security policy, the promulgation of standards and the provision of material, advice and assistance to government departments and authorities, including the New Zealand armed forces, on matters related to the security and integrity of official information, the loss or compromise of which could adversely affect national security; and

  • the provision of advice as required by government departments and authorities in relation to sensitive information which, although unrelated to national security, requires protection from unauthorised disclosure for privacy, financial or other reasons.

Technical security—providing defence against eavesdropping and other forms of technical attack against New Zealand government premises world-wide.

Signals intelligence—providing foreign signals intelligence to meet the national intelligence requirements of the New Zealand government.

The GCSB head office is in Wellington, and it operates two communications stations, the Defence Communications Unit, Tangimoana, and the Defence Satellite Communications Unit, Blenheim.

The Intelligence and Security Agencies Bill, introduced in December 1995, proposes increasing the level of oversight and review of the GCSB.

Contributors

  • 4.1–4.3 Ministry of Foreign Affairs and Trade.

  • 4.4 New Zealand Defence Force; New Zealand Security Intelligence Service; Government Communications Security Bureau.

Special articles

Asia 2000 Foundation of New Zealand; Ministry of Foreign Affairs and Trade.

Further information

A Guide to the Ministry and its Work. Ministry of Foreign Affairs and Trade.

Annual Report. Ministry of Foreign Affairs and Trade.

Defence of New Zealand 1991: A Policy Paper. New Zealand Government, Wellington, 1991.

Diplomatic List. Diplomatic and Consular Representatives in New Zealand. Ministry of Foreign Affairs and Trade (twice-yearly).

Information Bulletins (including an annual bulletin on disarmament and arms control). Ministry of Foreign Affairs and Trade.

New Zealand Defence Quarterly. Ministry of Defence.

Overseas Posts. A List of New Zealand Representatives Abroad. Ministry of Foreign Affairs and Trade (twice-yearly).

Report of the Ministry of Defence (Parl Paper G4).

Report of the Ministry of Foreign Affairs and Trade (Parl Paper A1).

Report of the New Zealand Defence Force (Parl Paper G55).

New Zealand Foreign Affairs and Trade Record. Ministry of Foreign Affairs and Trade (monthly except January).

Rolfe, J. Defending New Zealand. Institute of Policy Studies, 1993.

Chapter 5. Population

Delivering a petition on hospital care.

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 shrank 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 1886, 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 development of the country.

5.1 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 1974 New Zealand's population has increased by over one-half of a million to reach 3.64 million at December 1995.

POPULATION GROWTH
Percentage annual increase

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 during 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 5.1. TOTAL NEW ZEALAND POPULATION, 1858-1991 CENSUSES

Census*Total populationIntercensal increase
NumberPercentAverage annual (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 March3,434,950127,8663.870.76

Table 5.2. POPULATION, 1885-1995

YearTotal population at 31 DecemberMean population for year ended 31 December
1885619,323613,862
1886631,355624,275
1887645,330638,343
1888649,349647,340
1889658,021653,685
1890667,477662,749
1891676,051671,776
1892692,426684,239
1893714,258703,342
1894728,121721,190
1895740,699734,410
1896754,016746,288
1897768,910761,463
1898783,317776,114
1899796,359789,838
1900808,132802,246
1901830,800821,111
1902851,072840,936
1903875,648863,360
1904900,682888,165
1905925,605913,144
1906956,457943,325
1907977,215966,836
19081,008,373992,794
19091,030,6571,019,515
19101,050,4101,040,534
19111,075,2501,063,887
19121,102,4711,088,861
19131,134,5061,118,488
19141,145,8381,140,172
19151,152,6381,149,238
19161,150,3391,149,225
19171,147,4481,148,893
19181,158,1491,152,798
19191,227,1811,192,665
19201,257,6111,242,396
19211,292,7171,276,652
19221,318,8841,305,126
19231,343,0211,328,193
19241,370,4031,352,618
19251,401,2301,384,428
19261,429,7001,413,800
19311,522,7001,514,200
19361,584,6001,575,200
19391,641,6001,628,500
19401,633,6001,637,300
19411,631,2001,630,900
19421,636,4001,639,500
19431,642,0001,635,600
19441,676,3001,655,800
19451,727,8001,694,700
19461,781,2001,759,600
19471,817,5001,798,300
19481,853,9001,834,700
19491,892,1001,871,700
19501,927,7001,909,100
19511,970,5001,947,600
19522,024,6001,996,200
19532,074,7002,048,800
19542,118,4002,094,900
19552,164,8002,139,000
19562,209,2002,182,800
19572,262,8002,232,500
19582,316,0002,285,800
19592,359,7002,334,600
19602,403,6002,377,000
19612,461,3002,426,700
19622,515,8002,484,900
19632,566,9002,536,900
19642,617,0002,589,100
19652,663,8002,635,300
19662,711,3002,682,600
19672,745,0002,727,700
19682,773,0002,753,500
19692,804,0002,780,100
19702,852,1002,819,600
19712,898,5002,864,200
19722,959,7002,915,600
19733,024,9002,977,100
19743,091,9003,041,800
19753,143,7003,100,100
19763,163,4003,131,800
19773,166,4003,142600
19783,165,2003,143,500
19793,163,9003,137,800
19803,176,4003,144,000
19813,194,5003,156,700
19823,226,8003,180,800
19833,264,8003,221,700
19843,293,0003,252,800
19853,303,1003,271,500
19863,313,5003,277,000
19873,342,1003,303,600
19883,345,2003,317,000
19893,369,8003,330,200
19903,410,4003,362,500
19913,449,7003,406,200
19923,485,4003,442,500
19933,524,8003,480,200
19943,577,2003,526,400
1995P3,642,5003,579,900

Veteran athletes training for a 5km fun run in which they must guess their own handicap.

5.2 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 people living in the north of the country. The second is a tendency for 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 had 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.

Table 5.3. POPULATION OF NORTH AND SOUTH ISLANDS, 1858-1991 CENSUSES

CensusNorth IslandSouth IslandTotal populationCensusNorth IslandSouth IslandTotal population
185887,15028,312115,4621926892,679515,4601,408,139
1874155,472189,512344,98419361,018,038555,7741,573,812
1878199,523258,484458,00719451,146,315556,0151,702,330
1881234,648299,382534,03019511,313,869625,6031,939,472
1886290,009330,442620,45119561,497,364676,6982,174,062
1891321,247347,404668,65119611,684,785730,1992,414,984
1896377,954365,260743,21419661,893,326783,5932,676,919
1901431,471384,391815,86219712,051,363811,2682,862,631
1906521,899414,410936,30919762,268,393860,9903,129,383
1911610,599447,7131,058,31219812,322,989852,7483,175,737
1916695,396453,8291,149,22519862,441,615865,4693,307,084
1921791,918479,7501,271,66819912,553,413881,5373,434,950

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

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.

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.

Table 5.4. MIGRATION BETWEEN REGIONAL COUNCILS, 1986-1991

Regional councilsUsually resident population aged 5 years and over at 1991 censusIn-migration (2)Out-migration (3)Gross migration (2)+(3)=(4)Net migration (2)-(3)=(5)Migration effectiveness ratio (5)/(4)x100
Northland114,88817,81717,46635,2833510.99
Auckland863,30466,41761,248127,6655,1694.05
Waikato301,14042,17440,54882,7221,6261.97
Bay of Plenty185,19031,97723,51155,4888,46615.26
Gisborne39,8254,4857,80912,294−3,324−27.04
Hawke's Bay126,13813,80316,98630,789−3,183−10.34
Taranaki97,5699,49812,54922,047−3,051−13.84
Manawatu-Wanganui204,82829,98230,91260,894−930−1.53
Wellington366,98136,26142,68478,945−6,423−8.14
Nelson-Marlborough99,38715,24912,27327,5222,97610.81
West Coast29,8954,3056,20110,506−1,896−18.05
Canterbury402,91536,36030,89767,2575,4638.12
Otago164,92519,41919,66539,084−246−0.63
Southland91,5127,22712,22519,452−4,998−25.69

Table 5.5. URBAN-RURAL POPULATION, 1881-1991 CENSUSES*

CensusUrbanRural
numberpercentnumberpercent

* Excludes shipping.

† Boroughs and cities vs counties (including town districts).

‡Urban areas and towns with over 1,000 population vs remaining population.

§ Based on boundaries at 5 March 1991.

Non-Maori population
1881194,98140.1291,23859.9
1886245,61242.9327,32857.1
1891270,34343.4352,09756.6
1896307,29444.0391,73556.0
1901350,20245.6417,59654.4
1906424,61448.1458,79751.9
1911505,59850.4496,77949.6
1916585,30653.9501,25946.1
1921681,98856.2530,85243.8
Total population
1926953,17368.0448,50132.0
19361065,22867.9503,88532.1
19451,227,06974.2427,07625.8
19511,406,51672.7527,07827.3
19561,600,80873.8568,80626.2
19611,840,20276.4569,21723.6
19662,119,08579.3553,02320.7
19712,328,87681.5528,60918.5
19762,614,11983.6511,00416.4
1981§2,693,24284.8479,02315.1
1986§2,806,76084.9497,73015.1
1991§2,916,38284.9515,22715.0

URBAN DRIFT
Ratio of urban to rural population

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

The cities

At the time of the 1991 Census, while 85 percent of the population lived in urban areas, 68 percent lived in ‘main urban areas’ (places with 30,000 people or over).

A recent feature of urbanisation has been the growing concentration of people in Auckland. In 1991, 26 percent of New Zealand's population lived there, compared with only 15 percent 70 years earlier.

Today, while a large majority of the population live in urban areas, there has been a decline in the growth of many urban areas. Between 1986 and 1991, urban areas that continued to grow were generally situated in the north of each island—between Auckland and Rotorua in the North Island and between Nelson and Christchurch in the South Island. Urban areas in the south of each island experienced virtually no growth or lost population.

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

Table 5.6. POPULATION OF 20 LARGEST URBAN AREAS AT SELECTED CENSUSES

Urban area1886*1911*193619611986†1991†

* Excludes Maori.

† Boundaries as at 5 March 1991.

Auckland33,161102,676226,366448,365821,647885,571
Wellington25,94570,729159,357249,532325,711325,682
Christchurch29,65580,193133,515220,510300,052307,179
Hamilton1,2013,54220,09650,505140,106148,625
Dunedin23,24364,23785,607105,003107,639109,503
Palmerston North2,60610,99124,37243,18567,40570,951
Tauranga1,1481,3465,80824,65963,25470,803
Hastings1,5046,28617,92032,49057,50957,748
Rotorua2,3908,89925,06851,99153,702
Napier7,68011,73619,17032,71653,27652,468
Invercargill8,25115,85825,91241,08852,55851,984
New Plymouth3,0935,23818,59732,38747,38448,519
Nelson7,3158,23413,49325,32144,59347,391
Whangarei2,6649,86821,79044,31844,183
Wanganui4,90114,70225,75035,69440,75841,213
Gisborne2,1948,19615,87825,06532,23831,484
Timaru3,75411,28018,77126,42428,67627,637
Kapiti1,0685,36712,30523,20327,380
Blenheim3,0943,7715,03611,95622,68123,637
Masterton3,1605,1829,09615,12819,93020,007

Population of local government areas today

Tables 5.7 and 5.8 outline the population of New Zealand's territorial local authority areas and regional councils. All data conforms with the boundaries established after the 1989 reorganisation of local government.

Part of the 3,500 km of paper used to print 1996 Census forms.

Table 5.7. POPULATION OF TERRITORIAL LOCAL AUTHORITIES

Territorial local authority*Census of population 1991Estimated at 31 March 1995†Estimated population change 1994-95‡

* Boundaries as at April 1995.

† Figures have been rounded.

‡A minus sign indicates a decrease in population.

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

Cities  numberpercent
North Shore152,134163,6004,5002.8
Waitakere136,716147,5003,0002.1
Auckland315,668336,5008,7002.7
Manukau226,147243,4005,3002.2
Hamilton101,448106,7001,6001.5
Napier51,64552,6003000.6
Palmerston North70,31875,6001,1001.5
Porirua46,60148,3005001.0
Upper Hutt37,09237,100--
Lower Hutt94,54095,0001000.1
Wellington150,301153,8001,7001.1
Nelson37,94341,0008002.0
Christchurch292,858308,8006,0002.0
Dunedin116,577121,1001,3001.1
Invercargill56,14855,700−100−0.2
              Subtotal, cities1,886,1361,986,40034,3001.8
Districts
Far North51,56854,4007001.3
Whangarei62,64464,9007001.1
Kaipara17,32517,450500.3
Rodney55,78463,9002,3003.7
Papakura36,55338,8005001.3
Franklin42,19346,2001,0002.2
Thames-Coromandel25,03727,1005001.9
Hauraki16,92117,500500.3
Waikato37,55638,8003000.8
Matamata-Piako29,40829,800--
Waipa37,03138,7004001.0
Otorohanga9,2319,440901.0
South Waikato26,18625,300−200−0.8
Waitomo10,0749,850−40−0.4
Taupo30,72132,0003000.9
Western Bay of Plenty30,13733,0007002.2
Tauranga67,33374,7002,4003.3
Rotorua65,09667,0006000.9
Whakatane32,11233,1003000.9
Kawerau8,1358,000−80−1.0
Opotiki8,6769,2501301.4
Gisborne44,36144,5001000.2
Wairoa10,37110,200−100−1.0
Hastings64,69366,0003000.5
Central Hawke's Bay12,59012,500−50−0.4
New Plymouth67,95169,5004000.6
Stratford9,8469,760--
South Taranaki29,51929,000−100−0.3
Ruapehu18,10417,650−200−1.1
Wanganui45,08246,2003000.7
Rangitikei16,67616,200−100−0.6
Manawatu27,18228,3003001.1
Tararua19,48219,450−50−0.3
Horowhenua29,47630,100--
Kapiti Coast35,30938,7007001.8
Masterton22,94723,5001000.4
Carterton6,9137,220400.6
South Wairarapa9,0379,400800.9
Tasman36,41638,7007001.8
Marlborough36,76538,6003000.8
Kaikoura3,7113,780−10−0.3
Buller10,94111,050--
Grey13,74213,650--
Westland9,2509,140500.6
Hurunui9,5699,8901001.0
Waimakariri27,86230,7008002.7
Banks Peninsula7,6398,000801.0
Selwyn21,35923,4008003.5
Ashburton24,43524,8001000.4
Timaru43,20842,7001000.2
Mackenzie5,0574,280100.2
Waimate7,7937,680−20−0.3
Waitaki22,99123,1001000.4
Central Otago15,69614,750−50−0.3
Queenstown-Lakes15,12317,2501,1507.1
Clutha18,30318,050--
Southland33,68133,100--
Gore13,59613,600−50−0.4
              Subtotal, districts1,546,3971,603,60016,5001.0
Chatham Islands County760760--
              Total, New Zealand§3,434,9503,592,40050,8001.4

5.3 Components of population change

Population change has two main components, natural increase (the excess of births over deaths) and net migration. To indicate the relative importance of these components, in the period 1858-1989 as a whole, net migration contributed 23 percent of the total population growth in New Zealand, and natural increase the remaining 77 percent.

The relative contribution of the two components has varied from one five-year period to another, but net immigration's share has never exceeded two-fifths. In only three five-year periods (1941-45, 1966-70 and 1981-85), it contributed less than one-tenth of the total population growth, while in three periods (1931-35, 1976-80 and 1986-90) because of a net population outflow, its contribution was negative.

The volatility of migration trends contrasted with the upward trend in natural increase until 1961. The rise in natural increase has been prodigious. In 1861-65 births exceeded deaths by only 16,610. By 1961-65, the margin had soared to 205,164. Since then, the gap between births and deaths has gradually diminished because of a significant drop in the number of live births and a corresponding rise in the number of deaths. In 1981-85 births exceeded deaths by 125,109, a drop of nearly 40 percent on 20 years earlier. However, in 1990-94, births exceeded deaths by 161,105, an increase of 29 percent over 1981-85.

Table 5.8. POPULATION OF REGIONAL COUNCILS*

RegionCensus of population 1991Estimated at 31 March 1995†Estimated population change 1994-95

* Boundaries as at 1 April 1995.

† Figures have been rounded to the nearest hundred.

‡Includes the population of Kermadec Islands.

§ Includes the population of Chatham Islands County and Campbell Island.

North Islandnumber†percent
Northland131,620136,8001,4001.0
Auckland953,9801,027,70025,0002.5
Waikato338,959351,6003,4001.0
Bay of Plenty208,163221,6003,9001.8
Gisborne44,38744,5001000.2
Hawke's Bay139,479141,5005000.4
Taranaki107,222108,200300,0.3 
Manawatu-Wanganui226,616233,8001,3000.6
Wellington402,892413,1003,1000.8
Remainder North Island‡95100--
          Subtotal, North Island2,553,4132,678,90039,0001.5
South Island
Tasman36,41638,7007001.8
Nelson38,00341,0007001.7
Marlborough36,76538,6003000.8
West Coast33,96133,800--
Canterbury446,114466,6007,8001.7
Otago186,067191,6002,5001.3
Southland103,442102,400−200−0.2
Remainder South Island§769800--
          Subtotal, South Island881,537913,50011,8001.3
          Total, New Zealand3,434,9503,592,40050,8001.4

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

Fertility

Changing levels of fertility have played a major role in determining the size and structure of New Zealand's population over the years. (Fertility, the actual reproductive performance of a population, is measured by the number of live births per 1,000 women aged between 15 and 44 years.)

Table 5.9. FERTILITY TRENDS AND PATTERNS

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

* Non-Maori population only.

† Per 1,000 mean population.

‡ Average number of births a woman would have during her reproductive life if she was exposed to the fertility rates experienced during that year.

§ Average number of daughters a woman would bear during her reproductive life assuming that the age-of-mother-specific birth rates experienced during that year continue to apply.

|| Figures up to 1966 are for non-Maori population.

¶ Average number of daughters that a woman would bear during her reproductive life assuming that the age-of-mother-specific birth rates and mortality rates experienced during that year continue to apply.

* * Per 1,000 mean number of not-married women aged 15–49 years.

1881*18,73237.95........
1886*19,29934.88........
1891*18,27329.01........
1896*18,61226.33........
1901*20,49123.34........
1906*24,25227.08........
1911*26,35425.97......8.93
1916*28,50925.94......9.24
192129,62323.24......9.21
192629,90421.152.88....9.92
193128,86719.062.56......
193628,39518.032.301.040.976.71
194139,17024.022.931.371.27..
194647,52427.013.451.591.4711.67
195149,80625.573.601.641.5814.85
195656,53125.903.981.841.7717.79
196165,39026.954.312.031.9624.14
196660,00322.373.411.661.6136.92
197164,46022.513.181.551.5144.39
197655,10517.602.271.091.0736.86
198150,79416.092.010.980.9638.81
198755,25416.732.030.980.9642.44
198857,54617.352.101.021.0045.85
198958,09117.442.121.041.0148.83
199060,15317.892.181.071.0450.95
199160,00117.622.161.051.0352.05
199259,26617.222.121.021.0051.66
199358,86616.912.101.021.0052.07
199457,43516.292.040.990.9850.46

BIRTHS TO UNMARRIED MOTHERS

In 1935 the fertility rate in New Zealand fell to a low of 2.2 births per woman. This lower rate is attributed to fewer and later marriages, and family limitation within marriage exerting their influence. With the demobilisation of forces after World War II and the resulting increase in marriages and births, the fertility rate recovered to 3.6 births per woman in 1947.

Other features of the post-war years were New Zealanders marrying younger, and marriage becoming almost universal. By 1961 half of all women were married before age 22 years, compared with barely a quarter married by that age in the early 1940s. These trends were reinforced by early childbearing and the shortening of birth intervals. In the mid-1950s, age group 20-24 years replaced 25-29 years as the commonest age group for childbearing. The median age at first birth fell from 25.5 years in 1945 to 22.9 years in 1964. Fewer couples remained childless or had only one child. The net result was soaring birth numbers, up from just over 27,000 in 1935, to about 42,000 in 1945 and to over 65,000 in 1961. Over 1.1 million New Zealanders were born between 1945 and 1964—the ‘baby boomers’.

As was the case elsewhere, this burgeoning in the number of births was to reshape the population age structure and pose many and varied problems for policy-makers and planners in both the public and private sectors. At its peak in 1961, the total fertility rate exceeded 4.3 births per woman and significantly exceeded the figures for other developed nations. However, the upward trend was reversed in the early 1960s, just as suddenly as it had begun, which has prompted demographers to suggest that the ‘baby boom’ was merely a temporary diversion from a long-term downward trend.

The turnaround coincided with the introduction of the oral contraceptive pill in the early 1960s, but the ‘cause-and-effect’ relationship is not clear-cut. It is possible that the increased acceptance and use of the pill helped sustain the downward trend. By the mid-1970s, the post-Depression rise in fertility had ended. The total fertility rate fell below the ‘replacement level’ in 1978 and then to an all-time low of 1.92 births per woman in 1983. Its impact on the annual number of births was large. Despite a substantial increase in the number of prospective mothers, caused by the large baby boom cohorts entering the prime reproductive ages, and thus the prospects of an ‘echo boom’, births dropped from over 64,000 in 1971 to below 50,000 in 1982.

Five generations of a family get together for the first time. All but one were horn and raised in Dunedin.

AVERAGE AGE OF NEW MOTHERS
At birth of first child

Since 1983 there has been a minor resurgence in fertility, but the total fertility rate dropped from 2.10 in 1993 to 2.04 in 1994. This level of fertility is barely sufficient for the population to replace itself without migration. However, it is still too early to suggest whether the upturn is merely a temporary phenomenon, arising largely from the making up of deferred childbearing by women aged 28-36 years, or is a long-term trend, reflecting a permanent shift to later childbearing.

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

Between 1971 and 1986, the first marriage rate for women aged 20-24 years dropped by about two-thirds, from 308 to 113 marriages per 1,000 never married women aged 20-24 years. 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 1993 was 26.2 years compared with 21.8 in 1973. 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 was 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 5,000 in 1962 to over 10,000 in 1977, and to over 22,000 in 1994. Ex-nuptial births comprised 9 percent of all births registered in New Zealand in 1963 and 39 percent in 1994. 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 1994,78 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.

IMPLIED FAMILY SIZE
Total fertility rate*

As far as the overall fertility levels are concerned, the transition in Maori fertility from relatively large to small families is of more recent origin. Their total fertility rate fell from a high of 6.2 births per woman in 1962 to 2.2 births per woman in 1990, a 65 percent drop. However, the Maori fertility rate rose slightly to reach 2.29 in 1994. The gap between Maori and non-Maori fertility narrowed from 2.23 in 1963 to 0.02 births per woman in 1990, but has widened slightly to 0.28 in 1994.

Table 5.1. VITAL STATISTICS SUMMARY

Period ending 31 DecemberTotal birthsTotal deathsNatural increaseLife expectancy at birth‡Average age at death‡
MalesFemalesMalesFemales

* For five-year period.

† Excludes Maori population.

‡ Figures prior to 1965 exclude Maori population.

§ Figures from the complete life table period are closest to the reference year.

 Five-yearly*Complete Life Tables§Annual
1885†96,48229,07467,40854.0257.2126.49
1890†94,07129,74664,32555.2958.0931.56
1895†91,41033,52557,88557.3759.9533.38
1900†94,68535,15159,53458.0960.5538.10
1905†109,42340,68568,73859.1761.7640.92
1910†127,79446,04681,74860.9663.4842.64
1915†137,98548,98089,00560.6364.1745.35
1920†137,01260,40576,60762.7665.4347.51
1925148,34858,97189,37763.6666.2950.97
1930145,80164,34281,45965.0767.6654.36
1935137,97666,27371,70365.4668.4557.36
1940158,95378,55580,39865.4369.0558.88
1945191,24387,021104,22267.1770.6160.89
1950244,45688,109156,34768.2972.4363.17
1955263,19194,187169,00468.8873.8864.38
1960300,089102,879197,21069.1774.5165.68
1965317,280112,116205,16468.19R74.30R65.19
1970307,547120,250187,29768.55R74.60R65.71
1975304,377124,797179,58069.01R75.45R66.13
1980263,134128,103135,03170.36R76.43R68.17
1985254,640129,531125,10971.11R77.10R69.43
1990283,868135,445148,42372.86R78.74R69.72
 AnnualAbridged Life TablesAnnual
198755,25427,41927,83571.2977.3966.2772.60
198857,54627,40830,13871.5777.5966.2873.01
198958,09127,04231,04971.9477.9666.2773.27
199060,15326,53133,62272.4278.3166.5473.26
199160,00126,50133,50072.7878.6866.9073.59
199259,26627,24932,01773.1278.8767.6774.20
199358,866R27,24331,623R73.4479.1168.0174.19
199457,43527,09230,343--68.6174.64

Gown made for a group which donates them for the burial of stillborn babies.

Mortality

New Zealand has been quite successful in raising the average life expectancy of its population over the past hundred years. A temperate climate, low population density, lack of heavy industry and good nutrition gave New Zealand an early advantage over other nations in terms of health conditions.

From the middle of the nineteenth century until the 1930s, New Zealand had the lowest mortality rates in the world.

A large part of this improvement in longevity occurred prior to the 1930s, and was due to the saving of life at younger ages. The infant mortality rate fell steadily in association with a major reduction in infectious diseases (and respiratory diseases), which were previously the main causes of death in New Zealand.

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

Since 1970-72, there has been a gain of a little over four years in the life expectancy at birth of both men and women. Unlike in earlier years, a major part of this improvement has occurred at the retirement ages. However, this improvement has not altered New Zealand's slightly disadvantaged position internationally. Currently residents of at least 10 other countries can expect to live longer than New Zealanders.

There is still considerable room for improvement, especially with regard to mortality in the first year of life and at retirement ages. Although the infant mortality rate has dropped steadily in the last 50 years—from 41.7 per 1,000 in 1939 to 20.5 per 1,000 in 1962, and further to 7.1 per 1,000 in 1994, it is still high compared with some European countries. Furthermore its post neo-natal component (i.e. death of a child over 28 days but under 1 year of age) is significantly higher than the rate recently achieved in Scandinavian countries (see section 8.3, Public health).

Recent data indicates that heart disease, cancer and cerebrovascular diseases (in that order) continue to be the three leading causes of death in New Zealand, and together account for over three-fifths of all deaths among the adult population in any year. Respiratory diseases claim another 10 percent. Motor-vehicle accidents cause another 3 percent of all deaths in a year, with teenagers and those in their early twenties accounting for over four-fifths of these fatalities.

Table 5.11. DEATH RATES: SUMMARY

YearUnder 1*1-45-1415-2425-3435-4445-5455-6465-7475 and over

* Per 1,000 live births.

† Non-Maori figures only as Maori at ages not available for these years.

 rates per 1,000 of mean population in each age group
Males
1901†78.606.811.893.523.976.1611.9423.1250.59141.67
1921†53.104.781.852.443.565.559.6119.9646.17128.60
194143.654.391.362.532.933.959.2021.1347.44140.27
196125.861.340.491.281.472.687.3919.6547.33126.31
198113.010.950.351.531.352.266.5717.3043.39114.11
198512.090.540.361.541.381.945.8616.7542.20120.09
198612.490.860.341.711.532.125.7116.0641.72111.40
198710.560.590.391.751.541.905.6315.4940.73110.43
198812.130.650.311.681.542.085.0715.8838.85111.33
198911.730.660.341.851.532.015.0714.4537.57106.64
19909.640.730.291.801.511.934.6814.0836.07101.75
19919.620.510.331.501.402.134.6613.7334.8498.53
19928.320.540.321.561.511.954.7113.9834.90103.26
19937.710.480.191.601.332.154.4212.6133.16100.32
19947.260.530.251.231.511.874.2411.9432.87101.47
Females
1901†63.875.501.643.584.726.7010.6219.4443.32127.98
1921†42.314.491.312.343.384.468.0014.8836.81120.23
194137.753.841.201.942.443.506.9015.0438.60118.92
196119.501.160.350.530.871.954.5911.2229.89104.74
198110.220.640.230.670.641.513.949.1923.7384.67
19859.470.580.290.570.691.393.859.4423.4489.59
19869.870.480.260.550.691.273.429.3822.3984.02
19879.450.520.230.620.701.283.859.2623.2883.85
19889.350.490.250.610.701.283.448.3021.8583.42
19898.580.390.200.600.571.273.588.6021.0380.64
19906.930.370.170.590.651.243.668.8421.0775.60
19916.930.390.180.520.651.393.358.4820.1175.90
19926.110.350.240.530.551.193.237.9919.4576.31
19936.740.490.190.530.621.153.118.5519.3476.74
19946.900.330.150.530.591.113.018.1318.6675.46
Both sexes
1901†71.406.171.773.554.336.4011.3721.6347.87135.71
1921†47.824.641.582.393.475.108.8517.5941.90124.84
194139.814.121.282.222.673.728.0218.1643.04129.15
196122.761.250.420.911.182.316.0015.4137.67114.01
198111.650.800.291.110.991.895.2913.1532.6795.41
198510.810.560.331.061.031.664.8713.0631.86100.69
198611.210.680.301.141.111.694.5812.7131.0994.15
198710.030.550.311.201.121.594.7512.3731.1093.70
198810.770.570.281.151.121.684.2612.0929.4793.72
198910.190.530.271.231.041.644.3411.5228.5590.28
19908.310.560.231.201.071.594.1711.4627.9385.26
19918.320.450.261.021.021.754.0111.1126.8484.27
19927.260.450.281.051.021.573.9711.0226.5886.42
19937.240.490.191.070.971.643.7710.6325.7585.58
19947.090.430.200.881.041.483.6310.0825.3485.09

BIRTH AND DEATH RATES
For total population

Centenarians at an afternoon tea dance Christmas party.

Although the whole nation has benefited from better living standards, advances in medical knowledge and technology, and improvements in health services over the years, some differentials still exist. One notable historical trend is the widening of the male-female differences in mortality. A century ago, women could expect to outlive men by two years. By 1950-52 the female advantage had increased to four years, and by 1990-92, it was about six years.

Life expectancy also varies according to ethnicity, with a substantial reduction in Maori mortality in the last three decades, and a significant convergence in the Maori-pakeha gap in longevity. The life expectancy at birth for Maori males increased from 54.0 years in 1950-52 to 68.0 years in 1990-92, a gain of 14.0 years. That for females rose by 17.1 years, from 55.9 years to 73.0 years. However, in 1991-92 a newborn pakeha male child could expect to outlive his Maori counterpart by 5.4 years. For females, the difference was 6.2 years.

LONGER LIVES
Average age at death

Table 5.12. HISTORICAL LIFE EXPECTANCIES: INTERNATIONAL COMPARISON

CountryYear/PeriodMalesFemales
* Non-Maori population only.
New Zealand1901*58.160.6
Australia1901-1055.258.8
Denmark1895-190050.253.2
Japan1899-190337.838.2
Norway1891-190050.454.1
United Kingdom190648.051.6
New Zealand1950-5267.271.3
Australia1953-5567.172.8
Denmark1951-6070.173.2
Japan1950-5259.663.0
Norway1951-5571.174.7
United Kingdom195166.271.2
New Zealand1970-7268.674.6
Australia1975-7769.576.4
Denmark1971-7570.976.5
Japan197069.374.7
Norway1971-7571.477.7
United Kingdom197168.875.0
New Zealand1980-8270.476.4
Australia198171.478.4
Denmark1981-8571.577.5
Japan198073.378.8
Norway1981-8272.679.4
United Kingdom198170.876.8
New Zealand1992-9473.479.1
Australia199375.080.9
Denmark1991-9272.477.8
Japan199276.182.2
Norway199274.2P80.3P
United Kingdom199073.078.5

External migration

New Zealand has traditionally been a country of immigration, although in the last 150 years the country's intake has been small compared with immigration flows to some New World countries, such as Australia, Canada and the United States.

Over the years, immigration has had a major impact on the size, growth rate, age-sex structure and ethnic composition of New Zealand's population, and has been a subject of vigorous public debate, especially when large-scale immigration has tested the amenities and structures of the country.

The end of World War II saw economic stability and the reintroduction, in 1947, of an assisted/free passage scheme to attract working-age industrial and agricultural labour from the United Kingdom. The immigration policy was further liberalised in 1950. Agreements were also negotiated to accept young non-British European migrants. Refugee immigration was allowed on humanitarian grounds. Subsequently, these grounds were to lead to the settlement of just under 4,000 Indo-Chinese refugees in New Zealand during the March years 1978-82. Historical and regional considerations also led to the establishment of immigration quotas for small Pacific Island countries.

Government adopted a new immigration policy in 1974, which ended unrestricted immigration from the United Kingdom and Ireland and provided for the selection of immigrants from all sources on the same criteria. The reciprocal Trans-Tasman Travel Agreement, which allows free movement of residents between Australia and New Zealand, was not changed. Similarly, the right of free entry into New Zealand was maintained for the people of the Cook Islands, Niue and the Tokelau Islands, who are regarded as New Zealand citizens. As a result, immigrants in post-war years have come from a wider range of countries than before.

Between 1951 and 1966, the country gained roughly 200,000 people. In 12 of the 16 years, net immigration was over 10,000. The economic recession of the late 1960s turned the tide again. A significant drop in immigration and a sharp upturn in emigration, resulted in a net emigration of 15,333 during 1967-69. This was just the beginning of the dramatic events to come.

The last two decades have witnessed some major and unprecedented changes in external migration levels and patterns. The preponderance of immigrants coming from the British Isles has decreased, and migration to and from Australia has become the largest in terms of volume. The rate of migration has increased significantly and there have been dramatic shifts in the flow of migrants.

The total number of arrivals has jumped eight-fold, from 254,000 during 1968, to 2.2 million during the year ended 31 March 1995. This reflects the ease and relatively low cost of international travel, with tourists making up the bulk of the international traffic. During 1968-91, total departures exceeded total arrivals by an average of 111 people per annum. However, in the year ended 31 March 1995 arrivals exceeded departures by 20,401 emphasising the large swings in the external migration balance from one period to another, as shown in table 5.13.

Table 5.13. EXTERNAL MIGRATION: SUMMARY

Period ended 31 MarchTotalPermanent and long-termShort-term
ArrivalsDeparturesNetArrivalsDeparturesNetArrivalsDeparturesNet
Five-yearly
188098,87730,37668,501 
188573,86144,77629,085 
189075,06379,747−4,684 
1895101,50888,06713,441 
190093,03784,3988,639 
1905141,67899,50142,177 
1910190,772146,78343,989 
1915202,087165,28636,801 
192098,47390,5327,941 
1925199,791151,28548,506 
1930192,606167,34625,26053,98816,08137,907138,618151,265−12,647
1935111,933118,076−6,14313,46614,830−1,36498,467103,246−4,779
1940171,424159,51411,91022,87119,2673,604148,553140,2478,306
194535,00332,4142,5896,5979,241−2,64428,40623,1735,233
1950158,637135,43923,19851,48730,02021,467107,150105,4191,731
1955306,837239,14867,689116,51037,41979,091190,327201,729−11,402
1960395,218347,02148,197115,30851,16964,139279,910295,852−15,942
1965737,703676,13761,566156,46275,05581,407581,241601,082−19,841
19701,278,8671,273,4095,458155,008127,81427,1941,123,8591,145,595−21,736
19752,506,7142,400,234106,480274,842196,99377,8492,231,8722,203,24128,631
19803,793,4833,874,575−81,092204,867319,964−115,0973,588,6163,554,61134,005
19854,772,2574,766,9935,264213,059247,712−34,6534,559,1984,519,28139,917
19907,359,3407,394,389−35,049226,420306,65380,2337,132,9207,087,73645,184
Annual
19871,321,7291,317,3724,35744,36058,629−14,2691,277,3691,258,74318,626
19881,554,9921,555,949−95747,84463,469−15,6251,507,1481,492,48014,668
19891,669,6371,687,935−18,29846,23370,941−24,7081,623,4041,616,9946,410
19901,701,0561,702,689−1,63352,00156,019−4,0181,649,0551,646,6702,385
19911,772,5241,757,94814,57657,08845,47211,6161,715,4361,712,4762,960
19921,809,8851,806,9472,93849,01044,7234,2871,760,8751,762,224−1,349
19931,898,7691,890,6898,08049,56242,7146,8481,849,2071,847,9751,232
19942,057,0052,041,21215,79357,25741,67015,5871,999,7481,999,542206
19952,235,2462,214,84520,40167,59145,89421,6972,167,6552,168,951−1,296

COMPONENTS OF POPULATION GROWTH
Annual net migration and natural increase

The early 1980s pointed to radical changes in permanent and long-term migration (persons whose stated intention is arriving to settle, or departing for 12 months or more). The number of permanent and long-term departures—which had shown a steep upward trend since 1961, rising from 13,305 to 82,554 in 1979—started to decline, and by 1983 had fallen to 33,871. Departures to Australia accounted for about three-fifths of this decline. In fact, in 1983 more people arrived from, than left, for Australia and there was an overall gain of 8,285. This turnaround was short-lived, and by 1989 the figure had climbed to 61,535, giving a net emigration of 12,275. During 1990, an increase in the number of permanent and long-term arrivals, and a decrease in the number of permanent and long-term departures was recorded, resulting in a net gain of 8,968. However, during the year ended March 1995 net loss of people (6,795) to Australia was again recorded.

Significantly, immigration from the South Pacific countries, although small in size, is continuing. Moreover, unlike in earlier years, New Zealanders now comprise a significant component of permanent and long-term movements, which are dominated by persons of younger working ages.

Net migration from Asia has shown a large increase over recent years. In 1987 net permanent and long term migration from Asian countries was 2,635 and by the year ended 31 March 1995 it had risen to 17,537. This increase is largely a reflection of recent changes to New Zealand's immigration policy.

5.4 Composition of the population

Age and sex of the population

The age and sex profile of a population represents the cumulative effect of past changes in the dynamics of population growth—fertility, mortality, and migration.

At present the New Zealand population contains slightly more females than males. This contrasts with the situation in the early colonial days when there was a large surplus of males, especially young males.

Each census saw the sex ratio draw closer to parity, with two exceptions when there was a temporary excess of females—during World War I and again during World War II.

In 1968 for the first time in the country's demographic history, females outnumbered males, and since then their advantage has increased steadily. The 1991 Census shows that there were 1,693,051 males and 1,741,899 females in New Zealand representing a sex ratio of 97 males per 100 females. The shift largely reflects the preponderance of females among the retirement-age population (60 years and over) which carried a sex ratio of 80 males per 100 females in 1991. At ages below 60 years, men still outnumber women by a small margin.

Changes in the age structure of New Zealand population have been profound over the past hundred years. They largely reflect the ‘roller coaster’ movements in the birth rate, with small and large birth cohorts moving into the age structure. However, migration gains/losses (dominated by persons of younger and middle working ages) have added significantly to these structural changes.

The post-war baby boom broadened the base again and lifted the proportion of children in the population to 33 percent in 1961. With almost half of the population aged under 25 years at that time, the population looked youthful once again. The movement of small birth cohorts of the Depression years up the age scale meant a smaller proportion of workers in the population—only 55 percent in 1961. The elderly population increased in size by 84 percent, to make up over 12 percent of the total population. As the ‘youth’ and ‘aged’ components reinforced each other, the dependency ratio lifted sharply to a historical peak of 0.83, even exceeding the 1886 figure.

CHANGING AGES
Median age of the total population

Table 5.14. SEX OF THE POPULATION, 1858-1991 CENSUSES

CensusMalesFemalesTotal populationSex ratio*
Number of males per 100 females.
185865,38750,075115,462130.6
1874195,765149,219344,984131.2
1878254,936203,071458,00725.5
1881293,973240,057534,030122.5
1886335,061285,390620,451117.4
1891355,738312,913668,651113.7
1896393,033350,181743,214112.2
1901429,112386,750815,862111.0
1906496,546439,763936,309112.9
1911558,385499,9271,058,312111.7
1916577,715571,5101,149,225101.1
1921651,155620,5131,271,668104.9
1926719,642688,4971,408,139104.5
1936799,091774,7211,573,812103.1
1945832,877869,4211,702,29895.8
1951973,968965,5041,939,472100.9
19561,093,2111,080,8512,174,062101.1
19611,213,3761,201,6082,414,984101.0
19661,343,7431,333,1762,676,919100.8
19711,430,8561,431,7752,862,63199.9
19761,562,0421,567,3413,129,38399.7
19811,578,9271,596,8103,175,73798.9
19861,638,3561,668,7283,307,08498.2
19911,693,0511,741,8993,434,95097.2

The subsequent sharp decline in fertility, increased longevity, and the movement of the baby boom ‘bulge’ into working ages has caused a major alignment of the age structure as well as incipient ageing. The median age of the population has risen by almost seven years since 1971, from 25.6 years to 32.5 years in 1994. The dependency ratio has fallen to a more favourable 0.53, due largely to a sharp drop in the ‘youth’ component.

At the end of 1994, there were 828,000 children under the age of 15 living in New Zealand (down from around 909,623 in 1971). They made up just over 23 percent of the population. The working-age population has risen considerably since 1971 (by over half a million) to number 2.332,000 by 1994. Despite this numerical increase, the proportion of the population in the working ages has declined slightly since the late 1980s. The greatest change in the age structure of the population is at the older ages. Since 1971 the number of people aged 65 years and over has increased by more than one and a half times and the number aged 80 years and over has doubled.

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. At the 1991 Census, they contained 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.

Youth demonstration in Hamilton.

AGE-SEX DISTRIBUTION
Total population at selected years

Ethnic and cultural diversity

The islands of New Zealand have been ethnically and culturally connected to Polynesia for at least 1,000 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 from the British Isles, but also including people from the Netherlands, Yugoslavia, Germany and other nations. The indigenous Maori population makes 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 5.0 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.

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

Maori population. Estimates of the size of the Maori population at the time of European contact in 1769 vary greatly. Figures ranging from 100,000 to 200,000 have all been advanced. There is, however, agreement that whatever the original size of the population, a substantial decline occurred over the following 70 years. It is believed that the population had dropped to no more than 100,000 by 1840.

Contact with Europeans had proved disastrous for the Maori population. By the time of the systematic colonisation in the 1840s, the Maori population, estimated at between 120,000 to 150,000 in the 1770s, had dropped to around 100,000. Tuberculosis, typhoid, venereal disease, measles and other diseases new to Maori exacted a heavy toll. The introduction of firearms and subsequent warfare, both inter-tribal and with Europeans, also resulted in a depletion of population. At the time of the first census, in 1858, numbers had been further eroded to less than 60,000. This decline, combined with European immigration, made Maori a minority group in the population by the 1860s. Numbers continued to decline further, at a rate of over 1 percent per annum, until the 1870s.

For the remainder of the nineteenth century population levels fluctuated, suggesting an arrest in the trend towards depopulation. The lowest point was reached in 1896 (42,000), and from this time onwards there was a recovery in the Maori population.

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

The growth rate accelerated markedly after World War II, and peaked at 4.4 percent per annum during the early 1960s. This is believed to be close to the maximum possible increase for a human population that is ‘closed’ to inward migration. The rate of increase persisted at high levels until the mid-1970s.

Between 1976 and 1986 the rate of increase dropped significantly, averaging 1.3 percent per annum. By 1991 people who belonged to the Maori ethnic group numbered 434,847 and made up 12.9 percent of the population. While those with some Maori ancestry made up 15 percent of the population and numbered 511,947.

During the 1970s, international migration emerged for the first time as a significant factor in Maori population change. Large numbers of young Maori left New Zealand on a permanent or long-term basis in the 1980s. A population loss of 8,100 was recorded between 1981-1986. The main destinations of the migrants were Australia and the United Kingdom. Sizeable Maori communities now exist in Australia—particularly in Sydney. A result of this is that the Maori population is now susceptible to inward migration, both from return migration and the inward migration of Maori born overseas.

Fertility transition—Maori fertility has historically been high. Up to the 1960s the birth rate was around 45 per 1,000. However, a transition in fertility from high to low rates occurred in the 1960s and 1970s. Maori experienced one of the most rapid transitions chronicled anywhere in the world when the fertility rate dropped to a level two-fifths of that prior to 1962.

Table 5.15. ETHNIC COMPOSITION

(A) TOTAL POPULATION, 1858-1976
Census*Total populationMaori†Pacific Island PolynesianChineseIndianFijianOther
1858115,46256,049   59,413 
1874344,98447,330 4,816  292,838
1878458,00745,542 4,433  408,032
1881534,03046,141 5,004  482,885
1886620,45143,927 4,542  571,982
1891668,65144,177 4,444  620,030
1896743,21442,113 3,85946 697,196
1901815,86245,549 2,96324 767,326
1906936,30950,309 2,5706 883,424
19111,058,31252,723 2,63015 1,002,944
19161,149,22552,9971512,147181 1,093,749
19211,271,66856,9873343,266671 1,210,410
19261,408,13963,6705883,374987 1,339,520
19361,573,81282,3269882,9431,2001091,486,246
19451,702,33098,7442,1594,9401,5541851,594,749
19511,939,472115,6763,6245,7232,4252771,811,747
19562,174,062137,1518,1036,7313,1514792,018,447
19612,414,984167,08614,3408,5244,1797462,220,109
19662,676,919201,15926,27110,2836,8431,3232,431,040
19712,862,631227,41440,91812,4707,1401,1472,573,542
19763,129,383270,03561,35414,8609,2471,5482,772,339
(B) USUALLY RESIDENT POPULATION, 1981-91
CensusTotal population‡Maori§Pacific Island§Chinese§Indian§

* Omits censuses of 1861, 1864, 1867 and 1871 as censuses of Maori population were not taken.

† Those specifying themselves as half or more New Zealand Maori plus those not specifying the degree of origin.

‡Usually resident.

§ Ethnic group

19813,143,307384,933104,26219,80611,673
19863,263,283404,778130,29326,61915,810
19913,373,929434,847167,07344,79030,606

ETHNIC COMPOSITION

The 10 years from 1962-71 saw the total fertility rate begin to decline, from 6 births per woman to 5 births per woman. The rate then began to fall even more sharply, and by 1977 was 3.0 births per woman. This level had only been reached by non-Maori women in 1972. In 1993 the Maori total fertility rate was 2.3 births per woman, 0.2 higher than that for the total population.

Rural to urban migration—the change from being a largely rural to a predominantly urban population also happened extremely rapidly for Maori. By 1945 around three-quarters lived in rural areas. However, within two decades the majority of the Maori population were living in urban areas. By the mid-1970s, three-quarters lived in urban areas. It is worth noting that at this time a trend for migration from urban to rural ancestral marae became apparent. Initially such migrants were older urban Maori. More recently a wider section of urban Maori have been involved. Nevertheless, by 1981, four-fifths of the Maori population was urban and urbanisation amongst Maori has remained at this level.

Urbanisation of Maori has been accompanied by a wider geographical distribution throughout the country. In the 1920s, 95 percent of Maori lived in the North Island. Countering the trend of the total New Zealand population, Maori began to shift south, to the southern North Island and to the South Island. In 1991, 10 percent lived in the South Island while 25 percent of all New Zealanders lived in the South Island.

Age structure—youthfulness is the central characteristic that has distinguished the Maori from the non-Maori population structure. Throughout most of this century the Maori population has been concentrated in the younger age groups—a result of the consistently high fertility of Maori.

Between 1926 and 1976, the proportion of children in the Maori population consistently exceeded 43 percent. A peak of 50 percent was achieved in 1966. In 1961 when the impact of the ‘boom’ in fertility was greatest, over 20 percent of the Maori population was less than five years old. Over the 15 years from 1971-86 significant changes to the structure of the Maori population occurred. The transition in fertility experienced in the 1970s had much impact. The median age, the point at which half the population is older and half younger, steadily increased. In 1971 it was 15.5 years, by 1986 it had risen to 19.5 years and in 1991 had risen by more than three years to 22.8 compared with 32.4 years for non-Maori. The number and proportion of children in the Maori population also changed over this period. Children made up 49 percent of the Maori population in 1971. By 1986 this had fallen to 39 percent and continued to decline to be 33 percent in 1991. Despite these changes the Maori population is still relatively youthful in comparison with the total New Zealand population.

With the decline in the proportion of children in the population there has been an expansion in the population of the working age group (15-59 years). In 1971 and 1986, 48 percent and 57 percent of the Maori population were in the working ages (15-59 years). By 1991, 58 percent of Maori were in the working ages—close to the non-Maori at 62 percent. Within the working age group, however, a higher proportion of Maori were in the 15-29 age group (30 percent of Maori compared with 24 percent of non-Maori).

Although the Maori population is moving towards a more elderly age structure it is still younger than the non-Maori population. In 1991 there were larger proportions of Maori than non-Maori in each age group under 34 years.

See also section 6.4 Maori society.

Pacific Island Polynesians. Since the early 1960s the cultural and ethnic diversity of New Zealand has been enhanced by the inflow of people from the Pacific Island to New Zealand. The population from Pacific Island ethnic groups has grown from a little over 100,000 in 1981 to nearly 170,000 at the 1991 Census.

A Niuean grandmother teaches her grandson to weave.

In the 1970s, as a result of economic downturn, immigration from the Pacific dropped sharply, and natural increase became the major influence on the growth of the Pacific Island population. The early 1980s saw a return to net migration gains from the Pacific. From 1980 to 1984, there were 8,354 more arrivals than departures and the second half of the 1980s saw arrivals from the Pacific outnumbering departures by over 37,000. The early 1990s have seen a reversal of this trend with departures outnumbering arrivals by 1,374 from 1990 to 1994.

See also section 6.5, Pacific Island Polynesian population.

Refugees. Refugees from Europe arrived in the 1930s and again during World War II. Many of these were Jews and Poles. The migration of refugees into New Zealand was intensified after the war. About 6,000 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 was received by New Zealand. As a result of the conflict in Indo-China, about 7,000 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 6.3 Human rights, immigration and citizenship.

5.5 Future population issues

What lies ahead in New Zealand's demographic future? Predicting future trends, even beyond the short-term, is a difficult task because population trends and structures influence and are in turn affected by a host of economic, social and other circumstances.

Statistics New Zealand regularly prepares a range of projections for the New Zealand population. These combine different scenarios on future changes in fertility, mortality and external migration, which appear likely in the light of the historical trends. These projections are not exactly forecasts, but illustrate what the changes in population size, growth rate and age-sex structure would be if the given assumptions are met.

The 1994-base population projections indicate that New Zealand's population will grow slowly over the next four decades to 2031. In addition, the population will continue to age as the proportion of children decreases while the proportion of elderly rises.

On the basis of natural increase (assuming that New Zealand women continue to have about two children on average) and excluding population change through migration, it is projected that the country's population will reach 4.17 million by 2031. This estimate would be an increase of 0.63 million, or 18 percent, over the 31 March 1994 figure of 3.54 million. The pace of growth, however, will slow from a rate of 0.8 percent per year during the 1994-2001 decade to 0.2 percent per year over 2021-2031, reflecting a narrowing of the gap between the number of births and deaths.

In estimating the population including external migration gain, a net gain of 5,000 persons a year (the average number over the last 90 years), will mean an extra 244,000 persons, making a total population of 4.42 million by 2031. The Government, however, has expressed a goal of 20,000 net immigrants per annum; if this figure is attained there will be 5.15 million New Zealanders by the year 2031, an increase of 1.61 million or 45 percent during the 37-year period.

There will be profound changes in New Zealand's age structure in the future. With the ‘two child family/no immigration gain’ scenario, the median age of the population (where half the population is above this age) would rise steadily from 32.3 years in 1994 to 42.0 years in 2031. Given the ‘5,000’ net immigration scenario the median age of the population in 2031 would be 41.5 years; and using the ‘20,000’ net immigration figure, the median age would be 40.2 years.

Among the various age segments of the population and excluding population change through migration, it is the elderly (aged 65 years and over), which will show the fastest growth over the 1994–2031 period. They will comprise approximately 21 percent of the total population by 2031, compared with only 12 percent in 1994. Under the ‘5,000’ net immigration scenario, New Zealand's elderly population will increase by 126 percent, from 416,000 in 1994 to 940,000 in 2031. This increase is indicative of the ‘baby boomers’ ageing 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 1994. Within the elderly age group, the number of those aged 80 years and over will more than treble from the 1994 figure of 89,000 to 259,000 in 2031. Women in this age group in 1994 outnumbered men by two to one. However, by 2031, the sex ratio will reduce to 1.4 to 1, because males are projected to experience greater improvement in life expectancy than females.

Projections of New Zealand's working age population (15-64 years) indicate steady growth, from 2.3 million in 1994 to 2.8 in 2021, an increase of half a million or 20 percent. This increase is due to the projected annual accession to this age group exceeding retirements from it by an average of 17,000 persons per year. During 2011-2031 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 65 percent in 1994 to approximately 61 percent in 2031.

The number of children under 15 years of age is projected to increase initially from 820,000 in 1994 to peak at 860,000 in 2002, but the number will then drop to 770,000 in 2020 before rising to 782,000 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 15 years will comprise a smaller percentage of the total population in the future, decreasing from about 23 percent in 1994 to 18 percent in 2031.

Table 5.16. POPULATION PROJECTIONS 1994-2031*†

Age-group1994 (Base)2001201120212031

* Assuming ‘medium’ fertility and ‘medium’ mortality with long-term annual immigration of 5,000 per annum.

†Figures have been rounded.

0-14820,000865,000807,000771,000782,000
15-642,306,0002,451,0002,682,0002,758,0002,697,000
65+416,000458,000543,000717,000940,000
          Total population3,542,0003,774,0004,031,0004,246,0004,418,000

Contributor

  • 5.1-5.5 Statistics New Zealand (including all tables).

Further information

A full list of 1991 Census of Population and Dwellings publications can be found in the list of Statistics New Zealand publications at the back of this volume.

Demography, vital statistics, and migration

All About Women in New Zealand. Statistics New Zealand 1993.

Demographic Trends. Statistics New Zealand (annual).

Elderly Population of New Zealand. Department of Statistics, 1990.

External Migration Statistics. Statistics New Zealand (annual).

Foetal and Infant Deaths. New Zealand Health Information Service (annual).

Hospital and Selected Morbidity Data. New Zealand Health Information Service (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 (out of print).

Inter-regional Migration in New Zealand, 1971-1981. Department of Statistics, 1986 (out of print).

Key Statistics. Statistics New Zealand (monthly).

Maps of Statistical Boundaries. Department of Statistics. (Map series), 1991.

New Zealand Life Tables 1990-92. Department of Statistics, 1994.

New Zealand Now series. Statistics New Zealand 1995.

New Zealand Sub-national Population Projections 1986-2006. Department of Statistics, 1985 (out of print).

Trends and Patterns in New Zealand Fertility, 1912-1983. Department of Statistics, 1986.

Chapter 6. Social framework

“OK” becomes “Ka pai” using the commands in the new software program for te reo Maori.

6.1 Households

There were 1,235,100 households estimated to be living in private dwellings in New Zealand at 31 March 1995. This was an increase of 64,000 households (or 5.5 percent) over the 1,170,468 recorded at the 1991 Census.

Table 6.1 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 in 1991, compared with 18.7 percent in 1986.

Table 6.1. 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 6.2 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 6.2. TYPES OF DWELLINGS

TypeNumber of dwellingsIntercensal percentage change
19861991

* Includes mobile or temporary dwellings within a motor camp.

Source: Statistics New Zealand.

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

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 6.3 shows the decline in the average number of occupants for all dwellings types.

HOUSEHOLD SIZE
Persons per dwelling

Table 6.3. NUMBER OF OCCUPANTS IN OCCUPIED DWELLINGS

Type1986 Census1991 Census
AggregateAverageAggregateAverage
Source: Statistics New Zealand.
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 6.4 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, sole parents and childless marriages help explain the comparable increases in the number and percentage of dwellings with two or three occupants and the reduced (or negative) growth in dwellings with four or more occupants.

Table 6.4. NUMBER OF OCCUPANTS OF PRIVATE DWELLINGS

Number of occupants1986 Census1991 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage
Source: Statistics New Zealand.
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 6.5.

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 6.5. TENURE OF PRIVATE DWELLINGS

Tenure1986 Census1991 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage
Source: Statistics New Zealand.
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

Table 6.6 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 6.6. CATEGORY OF LANDLORD FOR RENTED OR LEASED PRIVATE DWELLINGS

Category of landlord1986 Census1991 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage
Source: Statistics New Zealand.
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 specified11,130-11,217-0.8
              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 6.7 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 6.7. 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’.

Source: Statistics New Zealand.

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

These seven Tongan women have embroidered bedspreads and pillowcases, crafted tapa cloth and woven mats for a display of traditional Tongan handicraft.

Types of dwellings. The 1991 Census distribution of Maori and Pacific Island households by dwelling type is given in table 6.8. New Zealand Maori households show a greater tendency to live in separate houses than Pacific Island households. The reverse is true for two and three semi-detached houses or flats.

HOME OWNERSHIP
By ethnic composition

Table 6.8. TYPES OF MAORI AND PACIFIC ISLAND DWELLINGS, 1991 CENSUS*

TypeNew Zealand MaoriPacific Island
NumberPercentage of total†NumberPercentage 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.

Source: Statistics New Zealand.

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 specified711111
              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 6.9) 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 6.9. NUMBER OF OCCUPANTS OF MAORI AND PACIFIC ISLAND DWELLINGS, 1991 CENSUS*

Number of occupants†New 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.

Source: Statistics New Zealand.

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

Table 6.1. TENURE OF MAORI AND PACIFIC ISLAND DWELLINGS, 1991 CENSUS*

TenureNew Zealand MaoriPacific Island
DwellingsPercentage†DwellingsPercentage†

* 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.

Source: Statistics New Zealand.

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 specified1,977660
              Total131,853100.040,812100.0

Table 6.11. CATEGORY OF LANDLORD FOR RENTED OR LEASED PRIVATE DWELLINGS, 1991 CENSUS*

Category of landlordNew Zealand MaoriPacific Island
DwellingsPercentage†DwellingsPercentage†

* 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.

Source: Statistics New Zealand.

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 specified2,4061,029
              Total, rented or leased52,374100.020,424100.0

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 6.10 and 6.11 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 6.5).

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.

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 6.12. HOUSEHOLD TRANSPORT

Number of motor vehicles*1986 Census1991 CensusIntercensal percentage change
HouseholdsPercentage of total†HouseholdsPercentage 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.

Source: Statistics New Zealand.

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 specified25,50925,347−0.6
              Total1,088,598100.01,177,665100.08.2

Household income and expenditure

The New Zealand Household Economic Survey is conducted continuously by Statistics New Zealand with the results presented applying to the year 1 April to 31 March. It provides information on the expenditure patterns and income levels of private households. Social and demographic characteristics are also collected to enable households to be analysed in more detail.

RSA members in upgraded club rooms in Christchurch city.

A random sample of approximately 4,500 private households is selected every five years to provide data for the revision of the Consumers Price Index (see section 26.1, Consumer Prices), while a sample of about 3,000 households is selected in other years. In the 1994-95 year, 2,953 private households (comprising 8,008 people) participated in the survey, each household containing an average of 2.73 people. Questionnaires administered to each household include a household questionnaire, an income questionnaire and an expenditure questionnaire. Health questions were asked for the first time in the 1994-95 survey with each person responding to questions about their health and use of health services. In all cases information reported by household members is processed without adjustment for underreporting of income and expenditure. Alternative data sources, both overseas and in New Zealand, indicate 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. Reasons for under-reporting of these items often include inaccurate recall of amounts spent and social desirability.

In the following tables the aggregate survey income or expenditure has been averaged over all households in the survey, rather than over only those households which reported income or expenditure in particular areas. This has the effect of reducing some statistics to a level below that which would normally be expected (eg expenditure on rent).

Table 6.13. INCOME DISTRIBUTION OF HOUSEHOLDS, 1994-95*

Annual incomeapproximate equivalent weekly incomeNumber of householdsAverage weekly income per household

* As estimated from Household Economic Survey.

Source: Statistics New Zealand.

              $$              (000)$
Under 12,400Under 238116.4159.00
12,400-17,699238 to 339115.5286.60
17,700-21,599339 to 414117.8373.50
21,600-26,899414 to 516116.6462.70
26,900-33,499516 to 642116.7578.30
33,500-41,899642 to 804117.6716.60
41,900-50,999804 to 978116.8890.90
51,000-62,399978 to 1,197116.11,078.90
62,400-81,6991,197 to 1,567116.31,363.20
81,700 or over1,567 or over116.82,250.90
              Total1,116.7816.10

Table 6.14. AVERAGE WEEKLY EXPENDITURE FOR SELECTED FAMILY TYPES, 1994-95

Expenditure groupYoung* one person householdOlder one person householdYoung couple with no childrenOlder couple with no childrenCouple with one childCouple with two children
 $
Food58.142.6105.295.3125.0148.9
Housing131.357.7212.952.3135.1235.6
Household operations64.648.899.690.1108.9113.8
Apparel16.68.031.823.133.741.6
Transport84.541.4107.7112.8123.5131.3
Other goods49.826.992.166.389.5100.0
Other services72.649.3106.098.6125.6139.6
              Total expenditure477.6274.7755.3538.6741.3910.7
Expenditure groupCouple with three or more childrenOne parent with childrenFamily with othersNon-family householdsAll family types

* Under 45.

Source: Statistics New Zealand.

 $
Food155.884.0143.114.5104.7
Housing110.887.2184.3143.5122.9
Household operations104.764.894.887.787.5
Apparel39.518.841.733.127.4
Transport142.069.8153.2158.2106.2
Other goods88.947.2104.7113.272.8
Other services136.858.5123.2135.5101.2
              Total expenditure778.5430.2845.3785.8622.6

Table 6.15. AVERAGE WEEKLY HOUSEHOLD EXPENDITURE, 1994-95

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

* Averages have been rounded to the nearest 5 cents.

† Includes recreational vehicles.

Source: Statistics New Zealand.

 $percent
Food—
     Fruit7.401.2
     Vegetables8.301.3
     Meat12.302.0
     Poultry3.500.6
     Fish2.000.3
     Farm products, fats, oils12.802.1
     Cereals, cereal products14.202.3
     Sweet products, spreads, beverages11.701.9
     Other foodstuffs10.001.6
     Food consumed in eating places, takeaway foods22.603.6
              Total, food104.7016.8
Housing—
     Rent32.005.1
     Net capital outlay and related expenses−24.00−3.9
     Mortgage payments56.709.1
     Payments to local authorities14.202.3
     Property maintenance goods15.002.4
     Property maintenance services28.704.6
     Other housing expenses0.300.0
              Total, housing122.9019.7
Household operation—
     Domestic fuel and power19.903.2
     Home appliances18.503.0
     Household equipment and utensils2.800.4
     Furniture9.001.4
     Furnishings2.000.3
     Floor coverings3.400.5
     Household textiles4.900.8
     Household supplies6.501.0
     Household services20.503.3
              Total, household operation87.5014.1
Apparel—
     Men's clothing4.200.7
     Women's clothing6.701.1
     Children's clothing2.300.4
     Other clothing6.501.0
     Clothing supplies and services1.800.3
     Men's footwear1.300.2
     Women's footwear1.400.2
     Children's footwear0.900.1
     Other footwear2.100.3
     Footwear supplies and services0.200.0
              Total, apparel27.404.4
Transportation—
     Public transport within New Zealand5.600.9
     Overseas travel21.903.5
     Road vehicles35.805.8
     Vehicle ownership expenses40.006.4
     Other private transport costs3.000.5
              Total, transportation106.2017.1
Other goods—
     Tobacco products7.501.2
     Alcohol15.202.4
     Medical goods4.200.7
     Toiletries and cosmetics4.800.8
     Personal goods6.101.0
     Pets, racehorses and livestock6.401.0
     Publications, stationery and office-type equipment12.101.9
     Leisure and recreational goods†13.402.1
     Other goods3.100.5
              Total, other goods72.8011.7
Other services—
     Health services13.802.2
     Personal services3.900.6
     Educational and tuitional services9.301.5
     Accommodation services3.900.6
     Financial, insurance and legal services18.503.0
     Vocational services1.400.2
     Leisure services13.402.2
     Other services nec3.800.6
     Other outgoings12.302.0
     Contributions to savings20.903.4
              Total, other services101.2016.3
              Total, net expenditure622.60100.0
              Number of households surveyed2,953 

Table 6.16. HOUSEHOLD AMENITIES

Amenity in dwellingPercentage of all surveyed households*
1992-931993-941994-95

* Household Economic Survey.

Source: Statistics New Zealand.

Electric range or wall oven94.994.893.9
Gas, coal or oil-fired range9.09.510.2
Microwave oven64.669.372.3
Telephone93.593.995.6
Clothes-washing machine96.096.997.1
Clothes dryer60.960.862.2
Separate refrigerator34.131.829.3
Combination refrigerator/freezer75.276.579.0
Separate deep-freeze unit55.754.354.8
Dishwashing machine24.625.328.8
Colour television (owned)93.294.795.3
Monochrome television (owned)9.78.48.2
Television (hired or rented)4.03.02.7
No television (owned, hired or rented)3.63.52.9
Subscriber TV decoder (television owned)3.86.09.2
Subscriber TV decoder (television hired or rented)-7.110.3
Video recorder (owned)68.672.274.6
Video recorder (hired or rented)0.60.40.4
Home computer (mains operated, with keyboard)17.118.621.7
Portable electric heater81.579.478.5
Electric night store heater fixed in place8.38.19.7
Other electric heater fixed in place29.028.030.4
Portable gas heater15.717.120.1
Gas heater fixed in place10.09.810.7
Open fire28.126.525.1
Slow-combustion fire31.433.334.2
Portable kerosene heater2.72.62.2
Wet-back fire of any kind19.118.418.8
Central heating of any kind5.55.15.1

International comparisons of living standards

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.

Table 6.17. INDICATORS OF LIVING STANDARDS

ItemUnitYearNew ZealandAustraliaJapanSwedenUnited KingdomUnited States

* 1990

†1991

‡1992

Source: OECD in Figures 1995.

Areasq km (000)1993268.77,686.8377.8450244.89,372.6
Populationmillion19933.517.7124.78.757.8257.9
Densitypersons per sq. km199312.92.3330.019.4236.227.5
Vital statistics
     Infant mortality rateper 1000 live births19937.36.14.5‡4.86.6‡8.5‡
     Life expectancy at birthmale199373.1‡7576.375.573.6‡72.3‡
 female199378.9‡80.982.580.879.‡79.1‡
National income
Gross Domestic Product$US billion at current prices and exchange rates199450.9318.44,651.1194.71,013.66,638.2
Average annual volume changepercentage1993-9454.312.33.53.9
GDP per capita$US per person at current prices and rates199312,63015,96333,80221,25416,27924,302
Contribution by sector
     Agriculturepercentage of GDP19927.3*3.22.22.11.62†
     Industrypercentage of GDP199225.9*29.441.127.428.727†
     Servicespercentage of GDP199266.7*67.456.770.569.871.1†
Employment by sector
     Agriculturepercentage of civilian employment199310.65.35.93.42.22.7
     Industrypercentage of civilian employment199323.523.834.325.426.224.1
     Servicespercentage of civilian employment199365.970.859.871.271.673.2
Energy
     Total final energy consumptiontonnes of oil equivalent (million)199310.7361.09316.4234.25151.891,401.52
     Total productiontonnes of oil equivalent (million)199313.16173.283.8729.27219.651,616.7
External commodities trade
     Imports (cif)$US billion at current prices and exchange rates19939.343.523146.4221.6601.1
     Exports (fob)$US billion at current prices and exchange rates19939.737.8339.654190.1430.2
Social and natural environment
     Doctorsper 1000 of mean population199322.2†1.7‡31.5‡2.3‡
     Expenditure on healthpercentage of GDP19937.78.57.37.57.114.1
     Expenditure on public educationpercentage of GDP19926.55.53.67.55.15.3
     Expenditure on pollution controlpercent of government R&Dearly 1990s2.72.70.53.41.40.8
     Road accident fatalitiesper 100,000 of population19931712†117716
Consumers Pricespercentage changeDec 1993-942.82.40.72.52.92.7
Long-term interest ratepercentDec 19948.4910.054.5910.688.447.97
Comparative price level$US to buy same basket of goods and services costing $100 in US1994899917612797100

6.2 Marriage

Marriage may be solemnised either by a celebrant or before a registrar of marriages. A licence must be obtained from a registrar before a marriage by a celebrant can be solemnised, and notice must be given by one of the parties. Marriage celebrants 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.

Table 6.18. MARRIAGE RATES

December yearNumber of marriagesMarriage rate
Crude*General†

* Per 1,000 mean population.

† Per 1,000 mean not-married population aged 16 years and over.

Source: Statistics New Zealand.

198823,4857.0823.36
198922,7336.8322.18
199023,3416.9422.19
199123,0656.7721.28
199222,0186.4019.78
199322,0566.3419.31
199421,8796.2018.63

MARRIAGE
Annual rates per 1,000 mean population

Marital status of the population

Table 6.19 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.

Table 6.19. MARITAL STATUS BY AGE GROUP, 1991 CENSUS*

 Never marriedMarried†RemarriedSeparated‡DivorcedWidowedNot specifiedTotal

* Usually resident New Zealand population.

† First marriage.

‡ Includes persons who are still married but permanently separated.

Source: Statistics New Zealand.

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
              Total433,818591,14179,37450,05554,09934,64118,9601,262,085
Females
15-19137,0611,3741512918511,341139,986
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

Medieval style marriage in Auckland's Cornwall Park.

The outcome of these changes during th. 1986-91 intercensal period is shown in table 6.20, 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.

MARITAL STATUS: Males
Population over 20 years of age

Table 6.2. 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.

Source: Statistics New Zealand.

Males
Never married396,87933.3433,81834.936,9399.3
Married†609,15051.2591,14147.6−18,009−3.0
Remarried69,4115.879,3746.49,96314.4
Separated‡41,4273.550,0554.08,62820.8
Divorced42,0543.554,0994.312,04528.6
Widowed31,8032.734,6412.82,8388.9
Not specified19,66818,960−708−3.6
              Total1,210,389100.01,262,085100.051,6964.3
Females
Never married324,63326.2368,88028.144,24713.6
Married†613,70149.5596,06745.5−17,634−2.9
Remarried66,1265.374,4065.78,28012.5
Separated‡48,1323.959,1874.511,05523.0
Divorced54,7984.471,0015.416,20330.0
Widowed132,51610.7140,97610.88,4606.4
Not specified18,00617,679−327−1.8
              Total1,257,912100.01,328,196100.070,2845.6

Table 6.21 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 6.21. DE FACTO RELATIONSHIPS*

Age group (years)1986 Census*1991 Census*Intercensal increase or decrease
NumberPercentage distributionNumberPercentage distributionNumberPercentage

* Usually resident New Zealand population.

Source: Statistics New Zealand.

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

MARITAL STATUS: Females
Population over 20 years of age

Age at marriage

In 1994, 43,758 people married (21,879 marriages), a decrease of 354 on 1993. The average ages of those marrying rose from 32.5 years for men and 29.7 years for women in 1993, to 32.8 years and 30.0 years for men and women, respectively in 1994. This rise is a continuation of the upward trend in average age at marriage evident since the early 1970s as shown in table 6.23. The increase in the average age at marriage is largely a reflection of a trend towards delayed marriage, increasing numbers of people remaining single, cohabitation before marriage and the growing number of people living in de facto unions.

AVERAGE AGE AT FIRST MARRIAGE

Table 6.22. AGES OF PERSONS MARRIED, 1994

Age of bridegroom, in yearsAge of bride, in yearsTotal bride-grooms
Under 2020–2425–2930–3435–3940–4445 and over
Source: Statistics New Zealand.
Under 2094711243--184
20–244072,96071412730644,248
25–291482,6383,14270414836106,826
30–34317441,8691,32233589424,432
35–3913170599717462160642,185
40–444681773053562661491,325
45 and over6391041913205101,5092,679
     Total brides7036,6906,6173,3701,6541,0671,77821,879

Table 6.23. AVERAGE AGE OF PEOPLE MARRYING

YearBridegroomsBrides
BachelorsDivorcedWidowersTotalSpinstersDivorcedWidowsTotal
Source: Statistics New Zealand.
197624.839.157.928.022.235.451.425.0
198125.439.758.229.223.035.951.926.3
198626.640.759.330.824.337.052.427.9
199127.941.859.931.925.737.952.729.1
199228.042.260.532.226.038.253.429.5
199328.342.459.132.526.238.953.229.7
199428.643.060.032.826.539.153.830.0

FIRST MARRIAGES
By age

The rise in the average age at marriage for both men and women has mainly been driven by the rise in age at first marriage. The average age for people marrying for the first time in 1994 was 28.6 years for men and 26.5 years for women—the highest since the mid-1920s for men and since figures have been collected for women. In general women are still marrying men older than themselves, but the gap between their average age at first marriage has narrowed; it was about three years in the mid-1960s and two years in 1994.

Relationship counselling

Relationship Services: Whakawhanaungatanga, formerly Marriage Guidance New Zealand has 53 service centres throughout New Zealand.

Relationship Services aims to help clients develop effective relationships so that there is family stability and self-sufficiency; individual independence and interdependence; a stable and productive workforce; and functioning committees, groups and organisations.

Relationship Services provides:

  • Counselling for individuals and couples experiencing relationship difficulties.

  • Support groups providing a safe environment for people to grow and make changes with others who are in similar situations.

  • Conciliation to help separating and divorcing couples make decisions about their future.

  • Mediation to resolve disputes in families, neighbourhoods and workplaces.

  • Education courses for individuals and couples to develop relationship skills on a wide range of relationship issues; including parenting, entering into or seeking to enrich relationships, resolving difficulties or leaving relationships.

  • Workplace consultancy, providing a range of counselling, training and consultancy services to organisations and their employees, boards and members.

In the year ending 30 June 1995, Relationship Services provided 48,500 counselling hours. Of these, 26,000 were provided to self-referred clients.

The counselling and education work of Relationship Services is funded largely through a fee-for-service contract with the Community Funding Agency. Counselling referrals come from the Family Court, Income Support Service, other professionals, social service agencies and employers. Many individuals also self-refer. Relationship Services networks with Relationships Australia and Relate United Kingdom.

Te Korowai Aroha Aotearoa. Established in 1990, Te Korowai Aroha Aotearoa is a professional Maori organisation providing education and training to hapu and iwi agencies, and other Maori organisations. Agencies may then offer appropriate training and counselling to whanau, hapu and iwi.

The aim of Te Korowai Aroha is ‘to guide our people toward becoming self-reliant, critical thinking members of society’. It is founded on the values of:

  • Te Korowai Aroha—nurturing and strengthening the mana wairua of whanau, hapu and iwi.

  • Whakapakari—growth, development, maturity of thought achieved through whakamana, whakatinana, whakakaha and manaaki.

  • Kia Puawai—blossoming and flourishing.

  • Toitu—standing tall.

Te Korowai Aroha Aotearoa has 12 iwi agencies throughout the North Island. Iwi agencies may be referred to Te Korowai Aroha by the Department of Social Welfare, Family Court and other agencies; the agencies are thereafter monitored and reviewed by Te Korowai Aroha. Of all clients, 71 percent are self-referrals. Te Korowai Aroha Aotearoa is funded largely through the New Zealand Community Funding Agency.

MARRIAGE AND DIVORCE

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.

Table 6.24. DISSOLUTION ORDERS GRANTED

Ground or evidence presented19901991R199219931994
Source: Statistics New Zealand.
Applications filed for dissolution of marriage9,0369,1529,1149,1939,213
Evidence of irreconcilable breakdown—
     Separation order494447360322352
     Written separation order3,5963,7113,7873,6503,609
     Verbal separation order3,4993,5753,5193,8373,861
     Lived apart, no agreement or order1,4421,4151,4481,3841,391
              Total, irreconcilable breakdown9,0319,1529,1149,1939,213
Other dissolution orders5----
              Total, dissolution orders9,0369,1529,1149,1939,213

Table 6.25. DURATION OF MARRIAGES ENDING IN DISSOLUTION BY AGES OF HUSBANDS AND WIVES AT MARRIAGE, 1994

Duration of marriage (in years)*Age (in years) at marriageTotal
Under 2020–2425–2930–3435–3940–4445 and over (including not stated)

* Duration of marriage calculated from both month and year of dissolution.

Source: Statistics New Zealand.

Husbands (all petitions and applications)
Under 5383483661799154971,173
5–953865755310186941422,405
10–148681047624612069801,887
15–191226862831085515261,295
20 and over2571,479515128452092,453
              Total5564,1882,3959714972523549,213
Wives (all petitions and applications)
Under 51114802791286850571,173
5–92811,14849220811873852,405
10–143758973091507247371,887
15–19408621167532212121,295
20 and over9301,22620954151092,453
              Total2,1054,3721,4565932951922009,213

Other important family legislation

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 Violence Act 1995. This was passed on 15 December 1995 and replaces the Domestic Protection Act 1982. It aims to provide greater protection for victims of domestic violence. It combines non-molestation and non-violence orders into one protection order that can last indefinitely, and is available to a wider range of people in closer relationships than the previous legislation. The act also places particular emphasis on the provision of programmes for both victims and perpetrators of domestic violence. It is expected that the act will be in force within the first half of 1996.

Guardianship Act 1968. This act defines the authority of parents as guardians of their children, and the powers of the court in relation to guardianship and custody of, and access to, children.

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 7.2, Income support.

The Child Support Act 1992 introduced a new regime for assessing non-custodial parental support of children. It replaced the Liable Parent Contribution Scheme which was contained in the Social Security Act 1964 and administered by the Department of Social Welfare.

Inland Revenue Child Support assesses 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.

6.3 Human rights, immigration and citizenship

Human Rights Commission

The Human Rights Commission has the general role of promoting the advancement of human rights in New Zealand in accordance with the United Nations International Covenants on Human Rights. It is made up of the Chief Human Rights Commissioner (the chairperson), the Race Relations Conciliator, the Privacy Commissioner and up to three other commissioners. These are all appointed by the Governor-General on the recommendation of the Minister of Justice.

The commission monitors legislation, conducts inquiries and investigates complaints of unlawful discrimination prohibited by the Human Rights Act 1993. If necessary complaints can be taken to the Complaints Review Tribunal (formerly the Equal Opportunities Tribunal) for adjudication of proceedings alleging discriminatory practice. The commission encourages respect for the observance of human rights through speaking engagements, newsletters, hui, seminars and publication of educational material. It also has the responsibility of reporting to the Prime Minister on matters with human rights implications.

The grounds of unlawful discrimination under the Human Rights Act 1993 are gender, marital status, age, religious or ethical belief, disability, political opinion, employment status, family status and sexual orientation.

Office of the Race Relations Conciliator: Te Tari Whakawhanaunga-a-iwi

The Race Relations Conciliator's role is to promote racial harmony through education and public comment, resolve racial tension and disputes and deal with complaints of racial discrimination.

The position of Race Relations Conciliator was established by the Race Relations Act 1971, but the current legislative authority for the position stems from the Human Rights Act 1993. This prohibits discrimination on the basis of race, colour or ethnic origin. The act also prohibits any public pronouncement, publication or broadcast which is liable to direct hostility towards any group on the basis of their colour, race or ethnic origin, or bring them into contempt.

It is unlawful to discriminate on the basis of race by way of limiting access to public places, vehicles and facilities, or in the provision of goods and services, employment and land, housing and accommodation.

All complaints about discrimination are considered in private as public debate of such complaints is liable to inflame the situation, although after the complaint has been settled the conclusion can be made public. The aim of the office is always to reach a conciliated settlement rather than impose solutions. However, the conciliator is also ex officio one of the Human Rights Commissioners who have the ability to recommend solutions where no conciliated agreement is reached.

The office's educational activities aim to build more harmonious race relations in the future and so reduce the number of complaints that society generates.

The head office of the Race Relations Conciliator is in Wellington and there are also offices in Auckland and Christchurch. A toll free 0800 number connects any caller with the nearest office, while all Citizens Advice Bureaux and Department of Internal Affairs Link Centres hold Race Relations Office publications.

Working with ethnic minorities. The office was instrumental in helping establish and develop Ethnic Councils throughout New Zealand and is aware of a new assertiveness amongst ethnic minorities to promote their rights and aspirations. This is a welcome development, providing the office with greater opportunities to create a climate of trust and cooperation between the various ethnic groups and mainstream New Zealand. Activities involving issues of ethnic minorities and immigration include:

Ethnic Communities Directory—publication of 1995-96 edition.

Equitable access to government services—Research on this arose from helping government agencies develop policy on how to make themselves more accessible to refugee and migrant people who do not speak English as their first language.

School enrolment schemes—much publicity was given to a school's proposal to include in their enrolment policy a clause which would effectively discriminate against pupils who lacked proficiency in the English language. A proposal is now in place to produce a set of resources—including guidelines—about school enrolment schemes for school boards of trustees.

Information brochures—have been produced in English, and will be available in Maori, Pacific Islands and Asian languages.

Research—a major project into positive relations in New Zealand schools entitled “Me Mahi Tahi Tatou/Let's Work Together” has been completed.

Police Victimisation Survey—an on-going project (second year) with New Zealand Police aimed at identifying victims of violence. Our interest is in helping develop appropriate strategies for identifying and interviewing victims of racially-motivated crime.

Maori-Pakeha relations. The Treaty of Waitangi continues to be the key race relations issue in Aotearoa/New Zealand. The environment under which the office has had to operate and develop education policy has been marked by the following events:

The release in 1994 of the Government's ‘fiscal envelope’ proposal for public consideration.

The disruptions at the Waitangi Day commemoration on 6 February 1995.

The Moutoa Gardens occupation.

These issues have highlighted significant gaps in the knowledge and understanding of all New Zealanders about some of the fundamental concerns presently being expressed by many Maori throughout the country. Initiatives developed by the office to increase the general public's knowledge and understanding of these issues include:

The ‘Kokiri Nga Tahi/Side by Side’ seminars—carrying positive messages of the benefits of Maori and Pakeha working and moving together side by side towards the challenges of the 21st century. The office has so far arranged four of these (in Christchurch, Gisborne, Taupo and Taranaki), involving people who influence civic, business and community development. The objectives are to further the debate and commentary on the Treaty of Waitangi, to identify factors which motivate Pakeha to acknowledge Maori rights, to ensure that Maori views are considered in all facets of New Zealand life and to reaffirm the enduring worth of the partnership between Maori and Pakeha.

‘In Tune’ (curriculum development project)—the Ministry of Education has contracted the Race Relations Office to produce resources about race relations for secondary schools for the ‘Culture and Heritage’ section of the Social Studies curriculum.

Other activities. Judicial orientations seminar: The office was invited to present a workshop at the orientation programme convened by the Department of Justice for newly-appointed judges. The aim was to provide practical suggestions for judges to communicate across cultures in a more effective manner.

Media awards. Recognising the media have an important role in the distribution of news concerning race relations, the office continues to sponsor good reporting of race-related issues through its involvement with the Qantas Media Awards.

Leaving Moutoa Gardens, Wanganui.

Equal Employment Opportunities

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 with 175 members as at September 1995. The trust aims to promote to New Zealand employers the implementation 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 commissions, monitors and evaluates research on EEO in New Zealand. It is staffed by an executive director, an administrator, database manager and office assistant who are based in Auckland. The board of trustees has public and private sector representatives. The EEO trust liaises closely with individuals and groups with expertise and interest in EEO, including EEO designated group networks, employers' associations, EEO Practitioners' Association, State Services Association, EEO Unit and the Human Rights Commission.

The trust has a national database of EEO resources. This contains computerised listings of materials including booklets, videos, training programmes, cultural advisers, networks, trainers, consultants and people with specific expertise in EEO issues. The Government's EEO Contestable Fund supported the database development and the production of two booklets by the trust. Making the most of a diverse workforce—an employer's guide to EEO was published in 1992 and a further publication on EEO success stories was published in 1993. The fund also supported the trust's EEO Self Assessment Kit which is used by a range of workplaces to identify their EEO strengths and weaknesses. A Work and Families Directions Project (run jointly with the Ministry of Women's Affairs and the New Zealand Employers' Federation) will publish case studies from leading family-friendly organisations in New Zealand. The trust publishes a newsletter three times a year and disseminates a wide variety of EEO resources. It also maintains links with a range of overseas EEO agencies, some of which have used trust resources and projects as models.

Women's issues

Women comprise the majority of the New Zealand population. While they have full equality in the law, women have not yet achieved equality with men in terms of economic and social status, freedom from discrimination and access to decision-making processes.

Women still earn only 80–81 percent of men's average hourly earnings, have more time out of the paid workforce because of family responsibilities and are more likely to be in part-time, temporary or casual employment.

The role of the Ministry of Women's Affairs is to provide gender-specific policy advice to the government on public policy issues which affect women. The ministry's particular strength is its ability to provide practical policy responses which take account of women's lives and responsibilities. Recently, the main focus of the ministry's policy work has been:

  • Key areas of employment policy that affect women, including childcare services and out-of-school care. There has been a particular focus on Māori women and employment.

  • Māori women and enterprise development.

  • Women's access to industry training.

  • Matrimonial property, which has included consultations with Māori and non-Māori women.

  • The health policy guidelines.

  • Māori women's health, particularly assisting with the development of the Māori Well-woman Programme.

  • Advice on the domestic violence legislation.

Gender analysis framework. A new direction for the ministry's work has been indicated by the development of a framework for gender analysis. This will better focus the impact of policy proposals on women in the policy development and service delivery processes of government and private sector agencies.

Gender analysis is integral to the production of quality policy advice to ensure issues for women are addressed. If the government's outcomes for women are to be effectively addressed, gender analysis is needed at all stages of policy development and its implementation. For effective monitoring of outcomes for women, data collection and evaluation needs to be gender sensitive. Accountability documents of government agencies need to reflect outcomes by gender.

The ministry provided training on gender analysis to policy analysts in other government departments, and has begun to work on developing a gender analysis framework for all government agencies. The framework is due to be published in 1996 following its piloting in one government agency. The gender analysis framework will also be applicable to private sector agencies.

Youth issues

The Ministry of Youth Affairs aims to facilitate direct participation of young people in New Zealand life, and promote opportunities for young people to contribute to the cultural, social and economic policies and services affecting New Zealand's development. The ministry provides policy advice, communicates policies and practices which impact on young people, and administers grants for youth training and development (see section 14.3: Training and employment assistance).

The Children and Young Persons Service of the Department of Social Welfare works with families to protect children, manage young offenders, and ensure care and security for children in need. It includes the Youth Justice Service. (See section 7.2: Social services).

The Commissioner for Children advocates for children and monitors law and policy on their behalf (see separate article).

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.

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 6.26 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 6.26 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 6.26. RELIGIOUS PROFESSIONS*

Religious profession1986 Census1991 CensusIntercensal percentage change
NumberPercentageNumberPercentage

* Usually resident New Zealand population.

Source: Statistics New Zealand.

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 (nod)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
Object244,8637.6251,7097.62.8
Not specified58,686-56,289-−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 6.27 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 (96.7 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.

A young Chinese New Zealander enjoys an exhibition of children's art from the People's Republic at the Wellington Central Library.

Table 6.27. NEW ZEALAND'S ETHNIC GROUPS

Ethnic group1986 Census1991 CensusIntercensal percentage change
NumberPercentage of totalNumberPercentage of total

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

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

Source: Statistics New Zealand.

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 groups†12,0780.425,9260.8114.7
     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, other873- -624- -−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 combinations139,1674.3142,8364.32.6
Not specified36,564-28,113-−23.1
     Total3,263,283100.03,373,929100.03.4

Table 6.28. COMPARISON OF AGE STRUCTURE OF MAJOR ETHNIC GROUPS, 1991 CENSUS*

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

* 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”.)

Source: Statistics New Zealand.

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

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

Country of birth

Since 1945 the percentage of the resident population born in New Zealand has remained relatively stable. Table 6.29 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.

Table 6.29. COUNTRY OF BIRTH OF POPULATION*

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

* Usually resident New Zealand population.

Source: Statistics New Zealand.

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.

BIRTHPLACES
Country of birth of population

New Zealand citizenship for a seventy-seven year old Romanian woman.

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.

Children born overseas after 1 January 1978 to a parent who is a New Zealand citizen otherwise than by descent, are automatically New Zealand citizens by descent. In order to preserve this status they must be registered as citizens by descent before their 22nd birthday. This can be done in New Zealand through the Citizenship Office, or at an overseas post.

The general requirements for a grant of citizenship are that an applicant must:

  • Have been ordinarily resident in New Zealand for the three years immediately preceding the date of application.

  • Be entitled in the terms of the Immigration Act 1987 to reside in New Zealand indefinitely.

  • Be of full capacity.

  • Be of good character.

  • Have sufficient knowledge of the English language and of the responsibilities and privileges attaching to New Zealand citizenship.

  • Intend to continue to be ordinarily resident 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.

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 indefinitely 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 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, eg, 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 14,370 people were granted citizenship for the year ended 30 June 1995.

CITIZENSHIP
Number of applications granted

Immigration

The Immigration Amendment Act 1991 came into force on 18 November that year and brought major changes to the policies under which the majority of immigration decisions are made.

Before 1991, it was possible to migrate to New Zealand provided there was a job offer for which no New Zealanders were skilled. This was called the Occupational Priority List or OPL. The OPL system was replaced by the General Category (also known as the points system), and the Business Investment Category was established.

The philosophy behind immigration policy is that it must help make New Zealand a better place in which to live both for people already here and for new residents. This is most likely to be achieved when migrants who come to New Zealand have a minimum of modest English, and the qualifications and experience to establish themselves.

In general the policies have worked very well. Over the past four years the policies have attracted the highest percentage of skilled migrants of any country in the world. In 1992, 25,716 people were approved for permanent residence—in 1995 about 55,000, of whom about 72 percent were under the General Category.

The process of review is a continuing one so that immigration policy takes account of changes within New Zealand and in this country's relations with the wider world. A review of permanent residence policies was conducted in 1994-95 which addressed the need to manage the large number of high-calibre migrant applicants seeking New Zealand residency, and whether the country was attracting and selecting the best possible skill mix to contribute to New Zealand's future.

As of 30 October 1995, a new quota management system has been put in place for permanent general and business migrants. The old General Category ‘autopass system’ and the ‘pool’—applicants who just missed out but might be granted residence if annual immigration target numbers were not met—has been replaced by the ‘pass mark’ system. A formula has been developed which can calculate on a weekly basis the required ‘pass mark’ to meet migrant demand and ensure that the annual migrant numbers are not exceeded. The pass mark will move up and down depending on the number of applications received during a specified period. This system will ensure New Zealand's control of incoming numbers of migrants. The first ‘pass mark’ of 25 for General Skills Category migrants and 12 for Business Investor Category migrants was announced in January 1996.

Changes have also been made relating to the English language requirement. English was previously a pre-requisite for only the principal applicants under the general and business categories. This has been extended to non-principals 16 years of age and over, though they can instead pay a fee of $20,000 which is refundable in full if the requirement is met within 3 months of arrival; $14,000 will be refunded if the immigrant meets the requirement between 3 and 12 months of arrival. The English standard which must be met is Level 5 of the general module of the International English Language Testing System (IELTS). This requirement ensures that immigration is successful for the immigrant, the community they live in and the whole country because the new resident has a modest command of the language.

General Skills Category—The aim of the General Skills Category is to ensure appropriate migrants gain entry to New Zealand. To achieve this, the New Zealand Immigration Service assesses the overall qualities of applicants by allocating points for employability, qualifications, age and settlement factors including links with New Zealand. Applicants must also meet compulsory health, character and English language requirements. Migrants must not be older than 55 years, and must have at least a base qualification and two years' relevant work experience.

Human capital factors, or the contribution migrants will make to New Zealand through their qualifications, skills and experience, are assessed. Ten to 12 points can be awarded for qualifications; up to 10 points for work experience; up to 10 points for age; and 5 points for a genuine offer of skilled employment for at least 12 months.

Settlement factors are also assessed and a maximum of 7 points can be awarded. Up to 2 points can be awarded for settlement funds (personal savings transferred to New Zealand) of up to $200,000; 3 points for family sponsorship; up to 2 points for New Zealand work experience; and up to 2 points for qualifications held by the principal applicant's accompanying partner.

The new policy allocates more points to General Skills Category applicants with trades and technical qualifications than in the past, which is expected to mean relatively more people with these skills will be approved for residence, leading to a broader skills mix among migrants. The changes also ensure skills from qualifications gained overseas are transferable to New Zealand by requiring statutory registration with the New Zealand statutory body for about 25 occupational groups before points will be awarded.

Community sponsorship, for which 3 points could be awarded under the previous policy, has been abolished. The General Investment Category has also been abolished.

Business Investor Category—The aim of the Business Investor Category is to ensure that high quality migrants with excellent, proven business skills and experience gain entry to New Zealand. The new structure places more emphasis on ensuring business residents make an active contribution to the country by bringing skills and innovation as well as capital. Applicants must also meet the same compulsory health, character and English language requirements as General Skills Category applicants. A minimum of 1 point must be awarded for accumulated earnings funds, and applicants must have at least two years' business experience.

Sri Lankan refugees arriving at Auckland airport.

Up to 10 points can be awarded for accumulated earnings of $750,000 to $3 million brought to New Zealand for a minimum of two years; 3 to 5 points for direct investment funds of $750,000 to $1,750,000 which must be invested in New Zealand to acquire a significant influence in the management of an enterprise in New Zealand; up to 5 points for business experience; up to 2 for qualifications; and up to 10 for age, with up to 4 points deducted for those 55 years and older. The maximum age is 65 years.

Up to 7 points can also be awarded for settlement factors; up to 2 for settlement funds of up to $200,000 (separate from investment funds); 3 for family sponsorship; up to 2 for New Zealand business experience; and up to 2 for the qualifications of the principal applicant's accompanying partner. Residence is granted subject to requirements on funds.

New rules, designed to encourage applicants who have a genuine desire to settle in New Zealand, also mean that all new migrants will only qualify for Returning Residents Visas if the principal applicant is considered to have New Zealand residence status for tax purposes. Under the previous system principal applicants could theoretically continue working and living overseas while their families were in New Zealand.

Family category—this category covers two groups: the partner (be it through marriage, a de facto or homosexual relationship) of a New Zealand citizen or resident; or family reunion (covering parents, dependant children and single adult siblings). Applications under this category need support from the New Zealand-based relative or partner.

Humanitarian category—this category allows entry into New Zealand of people whose circumstances are exceptionally difficult. Applicants are assessed under the following criteria: their circumstances must be such that they, or a New Zealand party, are suffering serious physical or emotional harm; and their application is supported by a close relative who is a New Zealand citizen or resident; and they produce evidence to show why their situation can only be resolved by being granted residence in New Zealand; and it would not be contrary to public interest to allow them to reside in New Zealand.

Refugee quota. 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. In the 1995 calendar year 134 people were approved for residency after claiming refugee status on or after arriving in New Zealand (201 in 1994).

Western Samoan quota. A long-standing arrangement (dating from the 1960s) provides that up to 1,100 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.

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, work, 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, business, or to visit family and friends, and the traveller has outward tickets and adequate means of support.

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.

Temporary workers. People who wish to work in New Zealand on a temporary basis (usually up to three years) may be issued visas for that purpose, usually only if there is no suitable New Zealander available. 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 Foreign Affairs and Trade.

Removal and 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: Te Ratonga Manene 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 branch office in New Zealand or from New Zealand diplomatic and consular representatives overseas.

6.4 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 6.30 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 6.3. 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.

Source: Statistics 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

The band at Ratana Marae near Wanganui.

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.

Geographical distribution. Changes in the regional distribution of the Maori population between the 1986 and 1991 censuses are shown in table 6.31. 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 6.31. 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.

Source: Statistics New Zealand.

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
     Wellington40,76710.141,9349.62.9
               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
     Southland8,7182.29,1052.14.4
               South Island total42,84010.647,34610.910.5
     Extra-county islands and shipping†3420.13390.1−0.9
               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 6.32 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 2.14 births per woman in 1986 and stood at 2.29 in 1994. 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 1994 this had narrowed to 0.3 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 1994, the median age at childbearing was 25.0 years for Maori women and 28.9 years for non-Maori women.

Table 6.32. MAORI DEMOGRAPHIC INDEXES

YearLive birthsDeathsRate of natural increase*‡Reproduction rates
NumberCrude birth rate*Total fertility rate†NumberCrude death rate*GrossNet

* Per 1,000 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.

Source: Statistics New Zealand.

19866,51321.94R2.14R1,2254.13R17.811.041.01R
19876,98223.05R2.26R1,2053.98R19.071.10R1.07R
19886,76721.94R2.17R1,2584.08R17.861.07R1.04R
19896,96722.22R2.21R1,3514.31R17.911.07R1.05R
19906,94721.77R2.19R1,3954.37R17.401.07R1.04R
19916,946P21.45P2.19P1,442P4.45P17.00P1.04P 
19927,238P22.17P2.29P1,389P4.25P17.92P1.07P 
19937,131P21.66P2.29P1,518P4.61P17.05P1.10P 
19947,053P21.28P2.29P1,405P4.24P17.04P1.11P 

The chief archivist shows the Mayor of Sakai City a replica of the Treaty of Waitangi.

Life expectancy. In 1990-92, the average life expectancy of Maori males was 68.0 years, compared with 73 years for Maori females, while for non-Maori, life expectancies were 73.4 years for males and 79.2 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 6.33. In spite of these gains, however, the life expectancy for Maori males is about five years lower and that for Maori females is about six years lower than for non-Maori males and females respectively.

Table 6.33. COMPARISON: MAORI AND NON-MAORI LIFE EXPECTANCY

YearLife expectancy at birth (years)
MaoriNon-maori
MaleFemaleMaleFemale
Source: Statistics New Zealand.
1960-6259.061.469.274.5
1970-7261.065.069.175.2
1980-8265.169.570.876.9
1985-8767.472.371.477.4
1990-9268.073.073.479.2

The Treaty of Waitangi / Te Tiriti o Waitangi

The Treaty of Waitangi has recently been brought to the forefront of debate on race relations in New Zealand (see section 3.1 Constitution).

The treaty has always been recognised within Maori society as an affirmation of rights and highly valued as a taonga, a sacred pact, entered into by the ancestors of today's New Zealanders. It has moved from obscurity through various levels of importance and now occupies an important position in relation to much of the Government's activities.

The landmark 1987 Court of Appeal case, New Zealand Maori Council v the Crown 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: Te Roopu Whakamana i Te Tiriti o Waitangi. 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 up to 16 members appointed by the Governor-General in consultation with the Minister of Maori Affairs. The chairperson is the Chief Judge of the Maori Land Court, and at least four of the tribunal members must be Maori.

In the 1994-95 year there was a 29 percent increase in the number of registered claims, from 431 to 557. The tribunal has now reported on 49 claims.

Hearings of the Chatham Islands claims continued during the year. There are three Moriori claims and three from Ngati Mutunga o Wharekauri. Moriori have argued that the Crown's failure to take active measures to free them from slavery during 1842-63 has had a permanent effect on their social, cultural and economic position on the Chatham Islands.

Formal tribunal reports were released on claims Wai 55: Te Whanganui-a-Orotu; Wai 84: Turangi Township; and Wai 449: Kiwifruit Marketing. The text of all reports is now accessible in an electronic format with search facilities. The tribunal's web site is: http:// www.i0.kete.co.nz/waitangi.

The Office of Treaty Settlements: Te Tari Whakatau Take e pa ana ki te Tiriti o Waitangi, was established on 1 January 1995. It was created to give better focus to government objectives to resolve historical Treaty of Waitangi claims, and has the major functions:

  • provide policy advice to the Minister in Charge of Treaty of Waitangi Negotiations on specific treaty claims and generic issues that impact on these claims;

  • negotiate and implement the settlement of claims;

  • provide policy advice to the minister on mechanisms to protect Maori interests inland;

  • acquire, manage and dispose of Crown-owned land for purposes related to treaty claims.

The Director is directly responsible to the Minister in Charge of Treaty of Waitangi Negotiations for the policy advice, negotiations services and the implementation of the settled claims. For administration and financial management the office is attached to but funded separately from the Ministry of Justice, having its own Vote: Treaty of Waitangi Negotiations. It functions under the State Sector Act 1988.

The office is currently dealing with over 30 claims at negotiation or pre-negotiation stage. These cover a number of iwi, including Te Roroa (the subject of a Waitangi Tribunal report), the Taranaki tribes (whose claims are currently in hearing before the Waitangi Tribunal) and Whakatohea (who does not wish to have a Waitangi Tribunal hearing). The major treaty settlement in 1995 was of the historical grievance of Tainui-Waikato (see panel).

Ministry of Maori Development / Te Puni Kokiri

Te Puni Kokiri was established as a policy ministry on 1 January 1992 and replaced Manatu Maori (the Ministry of Maori Affairs) and Te Tira Ahu Iwi (the Iwi Transition Agency).

Te Puni Kokiri is the Crown's principal adviser on the Crown's relationship with iwi, hapu, and Maori, and on key government policies as they affect Maori.

In carrying out this role, Te Puni Kokiri's functions are:

  • to provide primary strategic leadership advice on: the Crown's relationship with iwi, hapu and Maori; development issues; monitor the performance of mainstream agencies; and consultation between the Crown and iwi, hapu and Maori,

  • to provide advice on sectoral issues particularly across the key sectors: education, health, employment and commerce, and

  • to provide early warning of discrete issues at a community level that affect the Crown-Maori relationship.

Te Puni Kokiri has a sharpened policy focus on education, health, employment and income, and works in a complementary manner to the principal agencies in those sectors: education, health, labour and commerce.

The ministry still retains some residual services formerly administered by the Iwi Transition Agency and the Department of Maori Affairs before it.

From 1 July 1995 Te Puni Kokiri has been organised into five branches: compliance, treaty relations, asset management, social policy, and corporate services.

Compliance. This branch has leading responsibility for advice relating to the effective management of the Crown's relationship with individual and collective groups of Maori people and with hapu and iwi. Specific areas of work will include providing policy advice on: treaty analysis; settlement policy; the performance of mainstream agencies and the parity gap.

Treaty Relations. This branch supports the Crown partnership with iwi and hapu, and its relationships with Maori at a local and community level. This includes providing early warning of local issues which are likely to impact on these relationships; and advising on appropriate processes for consultation between the Crown and Maori. There are 12 regional offices in this branch.

Asset Management. This branch advises on the creation of options to maximise the benefit for iwi, hapu and Maori through the commercial utilisation of their collective and individual assets. Specific areas of work will focus on: enterprise and industry development—promoting policies to support Maori economic growth; and entity and asset selection—providing financial analysis and policy advice to support wise investment.

Social Policy. This branch has led responsibility for developing policy focused on the quality of citizenship—including both equality of opportunity and equality of outcome for Maori in terms of education, health and employment. The branch will examine and advise on opportunities for, and impediments to, Maori achieving parity; and assessing means of Maori moving beyond parity.

Corporate Services. This branch is responsible for designing and implementing policies that support the corporate environment and functions. Ensuring the orderly review of all operational systems, seeking continual improvement and maintaining organisational excellence.

Other services

Administration of receipts and payments on behalf of the Crown—involves the administration of the payment of Crown grants and advances to Maori people and Maori organisations, and of the receipt of Crown revenues collected by the Ministry. Administration of grants may also involve monitoring the recipients for compliance with contracts.

Ministerial servicing—involves the provision of advice on legislation and support services to the Minister of Maori Affairs.

Services to the Maori Trustee—the Maori Trust Office continues to operate under its own legislation with its administrative and clerical support contracted from Te Puni Kokiri.

Maori tribal developments

A recent trend has seen the increased willingness of government to channel communications and resources through tribal organisations to the ‘flax roots’ of Maoridom. Runanga or trust boards have a key role to play in the implementation of development schemes, the development of a comprehensive Maori fisheries policy, the administration of Maori language boards and cultural wananga, and other activities.

Tribal structures are ideally placed to represent the whole range of Maori opinion, and because they operate in a Maori framework, they can harness the enthusiasm and commitment of groups more effectively. As this strategy is pursued, the Government expects to benefit from improved liaison with the Maori community.

There are also major benefits for Maori people. Tribal identity and pride are enhanced and there is even greater incentive for Maori people to participate in tribal affairs. Traditional institutions and networks have been revitalised and new runanga and trust boards have been established in areas where they did not exist. This strong tribal infrastructure is a key element in the emerging biculturalism in New Zealand, Maori economic development, and the adaptation of traditional strengths to meet contemporary needs, which are features of Maori society today.

MAORI TRIBAL LOCATIONS
Traditional areas of major tribes

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; 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 the Kokiri management committees.

New Zealand Maori Council: Te Kaunihera Maori. The New Zealand Maori Council is constituted under the Maori Community Development Act 1962. It is a founding member of the World Indigenous People's Council.

Some of the functions of the council, set out in s18 of the act, are to:

  • Consider and discuss such matters as appear relevant to the social and economic advancement of Maori.

  • Consider and, as far as possible, act on any measures that will conserve and promote harmonious and friendly relations between Maori and other members of the community.

  • Promote, encourage and assist Maori to conserve, improve and advance their physical, economic, industrial, educational, social, moral, cultural and spiritual well-being, through self-reliance, sound economic management and pride in themselves.

  • Collaborate with and assist government departments and other organisations and agencies in the development of employment, education, training, housing and health care for Maori people.

The council is responsible for advancing the provisions of the Treaty of Waitangi and effecting changes in the status of Maori through Acts of Parliament, such as the various fisheries Acts (especially the Maori Fisheries Act 1989), the State-owned Enterprises Act 1986 and the Crown Forest Assets Act 1989.

The council currently represents 15 district Maori councils, which nominate three delegates to attend full council meetings. The council now includes representatives from the Maori Women's Welfare League, Nga Puna Waihanga (Maori Artists) and the Maori Wardens. It is the only national Maori body with a statutory framework that recognises non-iwi based representation. Apart from the urban district Maori councils, each district council is tribally represented, and the council promotes the traditional social infrastructure of whanau and hapu. The executive committee, consisting of the chairman of each district council, meets as often as possible.

Maori Congress: Te Whakakotahitanga O Nga Iwi O Aotearoa. The Maori Congress was officially launched in July 1990, after three national Maori leaders—Sir Hepi Te Heuheu, Dame Te Ata-i-Rangi Kahu and the late Mrs Te Reo Hura—sought to create a national body under which iwi could gather to share, consolidate and advance their own positions.

The objectives of the congress are the:

  • Advancement of all Maori people.

  • Exercise, by each iwi, of tino rangatiratanga.

  • Provision of a national forum for iwi representatives to address economic, social, cultural and political issues within tikanga Maori.

  • Promotion of constitutional and legislative arrangements that enable Maori people to control their own right to development and self-determination.

While acknowledging the strengths and autonomy of each iwi, the Maori Congress provides a forum at which matters of national importance, affecting all iwi and indeed all Maori people, can be debated within a Maori context. By standing apart from government, both in terms of direction and funding, it offers Maori people an opportunity to consider their own options and strategies for social, economic and cultural advancement. Furthermore, because it has a broad base and is so widely representative, it is an obvious source of collective Maori opinion from which acceptable policies for Maori development might take shape.

Congress is led by two presidents, and has three elected officers. Membership includes five delegates from 43 participating iwi. Nine committees have been formed to research and action the various interests of congress: a constitution committee; finance committee; operations committee; communication committee; government review committee; justice committee; international committee; an education committee and science committee; and an art and culture committee.

Congress is involved in a range of activities all relating to iwi and Maori development. There has been extensive involvement in the development of modes for the equitable disposal of Crown assets, the representation of Maori on international bodies and the expansion of social projects, such as options for housing and economic expansion.

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 1,200 wardens nationally.

Maori Women's Welfare League: Te Ropu Wahine Maori Toko i Te Ora. Te Ropu Wahine Maori Toko i Te Ora ia a national voluntary organisation; its philosophy is the well-being of Maori women and their whanau. Te Ropu has a nationwide network of 200 branches spread throughout New Zealand with a membership of 3,000 women. It has been actively involved with Maori families and communities since 1951 to improve health, housing, education, welfare, employment and justice for Maori people. The ill health and social status of Maori people demonstrated the need for Maori people to take responsibility themselves to change the situation and Te Ropu's structure and networks developed over the years allowing it to act as an effective agent for change.

Its programmes are:

  • Immunisation—At a national level it is aimed to increase immunisation to 90–95 percent by the year 1997, so that the proportion of New Zealand children will have completed childhood immunisation by the time they are two years old. The league, with government funding, actively supports this initiative; it has eight immunisation co-ordinators situated throughout the country. Members of league branches in the regions provide voluntary services by visiting families and encouraging them to immunise their children.

  • E Tipu E Rea is a parenting programme designed by the Maori Women's Welfare League. At present the government-funded programme is in its development stage and two national trainers will be responsible for training regional and branch trainers. Research involving 280–300 Maori women was completed at the end of 1994 along with 12 training modules containing 100 units.

  • Healthy Lifestyles: Smokefree Netball—The Healthy Lifestyle programme is a health promotion initiative where netball is the focus for promoting healthy lifestyles. The goal is to promote wellness and improve health among young Maori women. The objectives are to reduce smoking by having smokefree players in all grades at national tournaments and to have healthy lifestyle activities, field days and national tournaments in smoke free environments.

  • Maori Women's Development Fund—The Maori Women's Development Fund was established in the late 1980s to promote and encourage Maori women to develop and establish business enterprises and self-employment. Assistance is provided in the form of loans for business women who fulfil the set criteria. The Maori Women's Business awards are presented biannually to Maori women who have achieved high standards in the business world.

Kohanga reo. Te Kohanga Reo is a whanau (family) base where 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) through the medium of Maori language.

There are 802 Te Kohanga Reo throughout New Zealand where 14,500 children are taught in te reo Maori. Approximately 30,000 children have passed through Te Kohanga Reo since it was established in 1982.

Kokiri centres. Kokiri centres are primarily basic skills centres, 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 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 i te Reo Māori. 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. The marae subsidy programme administered by Te Puni Kokiri is to be concluded on 30 June 1996. Marae requiring assistance for renovations and maintenance will need to apply to the Lottery Grants Board for such assistance from 1 July 1996.

Employment and training. See section 14.3 Training and employment assistance.

Te reo Māori

Taketake ake nō Aotearoa te reo Māori, ā, he āhua 50,000 ngā tāngata ko te reo Māori tō 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 autaia tonu te nui o ngā reo irirangi Māori Kua puta ake, ā, kei tua o te awe māpara ko ngā hinonga pouaka whakaata 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 ngāwhare whakawā, i ngā kura, i ngā mahi pāho me ngā tari kāwanatanga.

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 mātāpuputu 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, ā, 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, Te Taura Whiri i te Reo Māori continues to address three main groups: the Maori people, the state sector and the general population.

Designers of the Maori Language Year poster with the Maori Language Commissioner.

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.

Cook Island community members perform a coconut-grating ceremony at a Pacific Islands festival in Dunedin.

6.5 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 eg, 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 6.34 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.

Table 6.34. PACIFIC ISLAND POPULATION BY AGE GROUP*

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

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

Source: Statistics 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.

PACIFIC NET MIGRATION TO NEW ZEALAND
Migrants to New Zealand

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 6.35. 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 6.35. 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.

Source: Statistics New Zealand.

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
     Wellington21,50416.526,05515.621.0
              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 total8,8986.810,4346.317.3
     Extra-county islands and shipping†9-12-..
              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. The ministry has wide-ranging brief to monitor the impact of government policy on Pacific Island communities. Activities can become diffuse unless they are closely linked with the priorities and actions of Pacific Island communities.

The policy work of the ministry will be directed towards education (particularly preschool and tertiary), skills training and employment, small business development, health and increasing the participation of Pacific Island people in public decision making.

Samoan Week at Russell School, Porirua.

The operational capacity of the ministry is primarily devoted to providing a skills training and employment placement service. There are also likely to be some additional social development projects run to demonstrate the policy options proposed by various communities. The ministry will also continue to support the Pacific Island Business Development Trust which has already proved to be a successful model for business enterprise.

The mission of the ministry is to achieve a quality of life that is consistent with the aspirations of people from the islands of the Pacific resident in New Zealand. The ministry works towards this goal by:

  • Providing advice on key policies and issues.

  • Disseminating information and consulting Pacific Island communities.

  • Facilitating employment and training opportunities and provision of specific social services and programmes.

  • Encouraging other government agencies to take responsibility for meeting the aspirations of Pacific Island people.

  • Promoting Pacific Island leadership that fosters self-reliance and full participation in all facets of New Zealand life.

  • Influencing and monitoring the development and implementation of government policies that affect Pacific Island people.

The Pacific Island 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.

Contributors

  • 6.1 Statistics New Zealand.

  • 6.2 Statistics New Zealand; Relationship Services; Te Korowai Aroha Aotearoa.

  • 6.3 Human Rights Commission; Office of the Race Relations Conciliator; Equal Employment Opportunities Trust; Ministry of Women's Affairs; Ministry of Youth Affairs; Statistics New Zealand; New Zealand Immigration Service.

  • 6.4 Statistics New Zealand; Waitangi Tribunal; Office of Treaty Settlements; Ministry of Maori Development (Te Puni Kokiri); Maori Council; Maori Congress; Maori Women's Welfare League; Kohanga Reo; Maori Language Commission.

  • 6.5 Statistics New Zealand; Ministry of Pacific Island Affairs.

Special articles

Race Relations Conciliator; Ministry of Women's Affairs; Commissioner for Children; Ministry of Youth Affairs; Waitangi Tribunal; Office of Treaty Settlements; Te Puni Kokiri; He Taonga te Reo; Reddfish Intergalactic.

Further information

Households

Consumer Expenditure. Statistics New Zealand (annual).

Profiles of New Zealanders: Families and Households, Census of Population and Dwellings, Series E, Report 3. Statistics New Zealand.

Census of Population and Dwellings 1991, New Zealand's Social Structure and New Zealanders at Home. Department of Statistics.

Marriage

Demographic Trends. Statistics New Zealand (annual).

Human rights, immigration and citizenship

Demographic Trends. Statistics New Zealand (annual).

New Zealand Now: Asian New Zealanders. Statistics New Zealand, 1995.

Report of the Department of Internal Affairs (Parl paper G7).

Report of the Department of Labour (Parl paper G1).

Report of the Human Rights Commission and the Race Relations Conciliator (Parl paper E6).

Maori population

Demographic Trends. Statistics New Zealand (annual).

Report of the Ministry of Maori Development—Te Puni Kokiri (Parl paper E47)

Census of Population and Dwellings 1991, New Zealand Maori Population and Dwellings and Iwi Population and Dwellings. Department of Statistics.

New Zealand Now: Maori. Statistics New Zealand, 1994.

Te Kanohi Hou o Aotearoa-Maori. Statistics New Zealand, 1995.

Pacific Island population

People in New Zealand series: Cook Island, Fijian, Niuean, Samoan, Tokelauan, Tongan. Statistics New Zealand, 1995.

Report of the Department of Internal Affairs (Parl paper G7).

Census of Population and Dwellings 1991, Pacific Island Population and Dwellings. Department of Statistics.

Chapter 7. Social welfare

The Children and Young Persons Service campaign, “Breaking the cycle,” used television to publicise the need to break the cycle of child abuse.

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 III 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.

  • Receives and disburses maintenance payments and enforces arrears in payments due before the Child Support Act 1991 came into force, 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 7.1. SOCIAL WELFARE EXPENDITURE

Year*Payments on behalf of the CrownDepartmental expenditureTotal
New Zealand superannuationAll other paymentsReceipts on behalf of the CrownNet operating expensesNet capital expenses

* Year ended 30 June.

Source: Department of Social Welfare.

 $(million)
19915,1734,458245496359,916
19925,5154,2643135192410,008
19935,3164,5552644622710,096
19945,1034,688274455269,998
19955,0564,8432904563610,101

SOCIAL WELFARE EXPENDITURE
Percentage of GDP

7.1 Income support

Unlike most overseas social security schemes, the New Zealand scheme is non-contributory. Benefits are financed from general taxation, and wage and salary earners are not required to pay regular contributions to a social security fund. An advantage of this is that people who are unable to pay contributions are covered to the same extent as wage and salary earners.

The social security system provides for a range of assistance 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 New Zealand Income Support Service

The New Zealand Income Support Service delivers benefits, New Zealand superannuation, war pensions and additional income support to eligible New Zealanders. The service is a substantial business distributing over $9 billion in benefits and pensions to its customers each year. Employing approximately 4,200 people in 90 offices throughout New Zealand, the service has 850,773 customers including war pensioners or approximately one in four New Zealanders. An average of 1,600 applications for benefits and pensions are processed each day, while nationally the service handles approximately 66,000 transactions daily by mail, telephone and personal contact.

The service is focusing on providing a more personalised service to help working-age people take steps towards education, training and work.

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

  • Caring benefits: domestic purposes, emergency, orphans, widows and unsupported child's benefits.

  • Incapacity benefits: emergency, invalids, and sickness benefits; disability allowance, handicapped child's allowance, loans for repair to homes.

  • New Zealand superannuation and veterans benefits.

  • Other benefits, grants and payments: accommodation supplement, childcare subsidy programme, disability allowance, funeral grant, special benefits, and special needs grants.

  • Work related benefits: independent youth, training, and unemployment benefits and job search allowance.

  • 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 7.2 and a brief description of each of the main cash benefits is set out in the text following. The full requirements for eligibility are beyond the scope of this publication, but more information is available from New Zealand Income Support Service offices.

Table 7.2. CASH BENEFITS: WEEKLY RATES*

BenefitBasic net benefit

* As at 1 April 1995.

Single 16-17 year olds receive the training benefit only.

Source: Department of Social Welfare.

 $   
Unemployment—
Without children:
Single 16-17 year old†91.88
Single 18-24 year olds115.37
Single 25 and over138.46
Married couple230.74
With children:
Single (1 child)198.31
Single (2 children)216.34
Married couple (1 child)245.20
Married couple (2 children)245.20
Sickness—
Without children:
Single 16-17 year olds115.37
Single 18-24 year old138.46
Single 25 and over144.22
Married couple262.24
With children:
Single (1 child)198.31
Single (2 children)216.34
Married couple (1 child)262.24
Married couple (2 children)262.24
Invalids and transitional retirement benefits—
Without children:
Single 16-17 year olds140.04
Single 18 and over173.06
Married couple288.44
With children:
Single (1 child)227.33
Single (2 children)244.12
Married couple (1 child)288.44
Married couple (2 children)288.44
Widows and domestic purposes benefit—
Women alone single adult144.22
Sole parent (1 child)198.31
Sole parent (2 children)216.34
Domiciliary care domestic purposes benefit—
Single 16-17 year old140.04
Single 18 and over173.06
Sole parent (1 child)227.33
Sole parent (2 children)244.12
Half married rate144.22
Orphans and unsupported child benefit—
Under 5 years57.69
5-9 years72.10
10-13 years79.32
14 and over86.53
Family support—
First or only child42.00
Second/subsequent child aged 0-12 years27.00
Second/subsequent child, 13-15 years35.00
Second/subsequent child, 16+ years (grandparented rate)42.00
Independent youth benefit—
Single 16-17 year olds115.37
Job search allowance—
Single 16-17 year olds91.88
New Zealand Superannuation and veterans pension (gross rate)—
Single living alone241.49
Single sharing220.49
Married person178.93
Married couple: both qualify357.86
Married couple: non-qualifying spouse341.50 or 357.86

Income-tested benefits

Invalids, sickness, widows, domestic purposes, unemployment, training, and transitional retirement 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 over $50 and up to $80 a week. For amounts over $80 a week, the deduction is 70 cents for every dollar. 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 1995 was 39,686, an increase of 2,656 from the previous year.

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 1995 was 34,037, an increase of 2,502 from the previous year.

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 1995 was 9,007; of this number 2,785 were caregivers for 4,740 children. At 30 June 1994 there were 9,012 widows benefits in force, 5 more than at 30 June 1995.

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 1995 was 104,027; of this number 100,109 were sole parents (caregivers for 173,621); 1,288 were caring for the sick or infirm; and 2,630 were women alone. At 30 June 1994 there were 100,256 domestic purposes benefits in force, 3,771 fewer than at 30 June 1995. Nearly half the recipients of a benefit are aged between 30 and 39, and 63 percent have come from a relationship where they have separated from a spouse or partner.

BENEFITS
Beneficiaries by assistance

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 decreased by 27.8 percent over the 1995 year. As at 30 June 1995 a total of 139,387 unemployment benefits were being paid, 17,795 fewer than at 30 June 1994. Of this number 119,895 people received the standard benefit; 227 received the Job Search allowance; 2,891 the independent youth benefit; 8,258 received the 55+ benefit while 8,116 received emergency unemployment benefits. Emergency support for unemployed students has reduced with 22,282 at the end of December 1994, compared with 23,035 at the end of December 1993 and 21,961 at the end of December 1992.

At the Wellington night shelter.

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 11,655 training benefits being paid as at 30 June 1995, a decrease of 1,179 on the previous year.

Transitional retirement benefit. The transitional retirement benefit is intended to help those adversely affected by the change in qualifying age for New Zealand superannuation from 60 to 65. It was introduced on 1 April 1994. At 30 June 1995 there were 7,327 people receiving a transitional retirement benefit, an increase of 787 on the previous year.

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 28.2, Taxation), but is delivered to beneficiaries through the social welfare system.

Child care subsidy. The child care subsidy programme provides financial assistance to low income families with dependant children to obtain access to pre-school child care services. At 30 June 1995 there were 33,388 approved applications for subsidies, 8,084 more than at 30 June 1994.

Orphans and unsupported child benefits. This benefit is payable to a person caring for an orphan or an unsupported child. As at 30 June 1995 there were 4,280 benefits being paid, an increase of 187 from the previous year.

Community services card. The community services card is an entitlement card which people on low income can use to obtain discounts on doctor's fees, prescriptions and hospital outpatient charges. As at 30 June 1995 there were 1,057,116 current cardholders, 15,248 more cardholders than at the same time the previous year_

New Zealand superannuation

The current New Zealand superannuation scheme provides $241.49 a week for a single person and $357.86 a week for a married couple (or $341.50 if one spouse does not qualify).

A tax surcharge 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.

At 30 June 1995 there were 469,239 people receiving New Zealand superannuation. The qualifying age is being gradually raised from 60 to 65 by 2001.

People who wish to supplement their New Zealand 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 24.3 Superannuation and insurance.

Veterans pension. This is paid at the same rate as New Zealand superannuation, and is not income tested but is taxable. A total of 6,380 people received veterans pensions as at 30 June 1995, 102 more than at the same time the previous year. This pension replaces the former war service pension, war veterans allowance and economic pension.

Other assistance

Disability allowance. This is an income-tested allowance payable to people with special costs arising from a disability or personal health need. As at 23 June 1995 there were 113,249 current allowances, an increase of 11,601 on the previous year.

Handicapped child allowance. A non-taxable allowance payable to the parent or guardian of a seriously physically or mentally handicapped child being cared for at home. There were 12,321 children receiving an allowance as at 30 June 1995, with 2,711 applications granted in the year ending 30 June 1995, an increase of 628 from the previous year.

Special benefit. This is short-term assistance for people whose income and assets are insufficient to meet essential costs, in addition to normal living expenses. This benefit was held by 39,143 customers as at 30 June 1995, an increase of 6,938 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. For the year ending 30 June 1995, 396,278 grants were issued, an increase of 65,762 from the previous year.

NUMBER OF BENEFITS

Advance payments of benefit. Advance payments are available to all beneficiaries to pay for essential needs which they would otherwise be unable to afford. For the year ending 30 June 1995, 176,483 advance payments had been granted, a reduction of about 103,000 on the previous year.

Table 7.3. NUMBER OF BENEFITS AND PENSIONS IN FORCE: 1940-95*

End of financial year**Unemployment†TrainingSicknessInvalidsMinersDomestic purposesWidowsOrphans & unsupported childFamily‡Transitional retirement§New Zealand superannuation||VeteransTotal

* Summary before 1940 is included in the 1994 Yearbook. Since 1975 emergency benefits have been included in figures for related statutory benefits. War pensions not included in this table.

* *Prior to 1990, the year ended 31 March; from 1990 onwards, the year ended 30 June.

†Includes 55 plus benefit, and from 1 December 1990 the job search allowance and the independent youth benefit.

‡ Family benefit was paid without means test from 1 April 1946. It was abolished from 1 April 1991. From 1983 on, statistics are of uncertain accuracy.

§ Transitional retirement benefit was introduced on 1 April 1994 for those nearing eligibility for New Zealand superannuation.

|| To 1975, superannuation and age benefit combined. From 1976 Superannuation and age benefits were replaced by national superannuation. For the period 1 April 1990 to 31 March 1992 this pension was called guaranteed retirement income, and on 1 April 1994 the name was changed to New Zealand superannuation. The age of eligibility was raised to 61 on 1 April 1992, and is now being raised progressively to 65. Excludes non-qualified spouse numbers.

19404,053 2,56511,811988 10,17433011,053 93,262 134,236
1945198 4,23312,205783 10,96542124,251 158,332 211,388
195012 4,9319,476636 14,198366254,920 186,512 471,051
195519 4,2778,110481 12,197300298,370 199,236 522,990
1960312 4,0648,024353 13,049277343,193 204,036 573,308
1965208 4,6817,951184 14,529316376,824 214,659 619,352
1970983 5,8768,34298 15,663315408,397 241,772 681,446
19752,894 7,8309,4144517,23116,738376452,389 289,348 796,265
198020,850 7,50415,6472137,04016,120413460,897 405,834 964,326
198135,666 7,10416,9611639,41215,416388461,211 418,901 995,075
198232,596 7,17717,8911643,44714,737365459,994 430,175 1,006,398
198350,744 7,66918,7571648,12114,125362460,798 441,789 1,042,381
198450,136 9,45220,1871353,14413,921384460,382 451,128 1,058,747
198538,419 9,62721,4641156,54813,557365455,961 459,813 1,055,765
198642,405 9,51721,9931062,57013,304364455,330 465,079 1,070,572
198763,922 11,11623,0871069,14613,019496450,072 473,401 1,104,269
198886,782 13,13224,379974,86212,8621,537436,066 479,985 1,129,614
1989123,565 16,02126,260785,61513,0262,993437,287 485,962 1,190,736
1990139,6259,45319,51127,824694,82312,6765,239446,373 495,5003,4281,254,458
1991153,2597,48320,14730,746397,00010,9892,931  506,0473,130831,735
1992170,3677,85724,09331,831196,7229,8733,135  504,5615,393853,833
1993170,33910,89728,72934,957 96,33510,2593,539  488,8936,117850,065
1994157,18212,83431,53537,030 100,2569,0124,093 6,540477,4006,278842,160
1995139,38711,65534,03739,686 104,0279,0074,280 7,327469,2396,380825,025

Table 7.4. SUPPLEMENTARY PAYMENTS UNDER THE SOCIAL SECURITY ACT

Year ended 30 June1990*1992199319941995†

* Before 1992, accommodation, disability and special benefit expenditure were not separated from main benefit expenditure.

1995 expenditure figures on an accrual accounting basis. Previous years' figures are on a cash basis.

‡ Accommodation supplement replaced accommodation benefit from 1 July 1993.

§ Funeral grants replaced Lump Sum After Death on 1 August 1991.

Source: Department of Social Welfare.

 $(000)
Accommodation supplement‡180,115210,834351,319491,437 
Tenure protection allowance    16,675
Child care subsidy8,91615,73338,61938,09331,428
Handicapped child allowance11,26713,49515,12016,78318,653
Disability allowance 70,03688,226115,858130,486
Special benefits 55,32364,18767,51883,015
Special needs grants  19,61337,04645,094
Funeral grants§5,5744,4404,1464,6444,908

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 1995, 1,744 advances were granted.

Training incentive allowance. This allowance is available to widows, invalids and domestic purposes beneficiaries to help meet costs associated with attending recognised occupational or work-related courses which provide specific work skills.

Transition-to-work allowance. This allowance is available to those who have been receiving an income-tested benefit for 12 months or more and find full-time work.

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 1995,5,017 grants had been allowed, an increase of 322 from the previous year.

Table 7.5. EXPENDITURE ON BENEFITS AND PENSIONS: 1940-95*

End of financial year* *Unemployment†TrainingSicknessInvalidsMinersDomestic purposesWidowsOrphans & unsupported childFamily‡Transitional retirement§New Zealand superannuation||Veterans

* Summary of benefits and pensions expenditure before 1940 is in the 1994 Yearbook. Since 1975 emergency and supplementary expenditure has been included in figures for related main benefits. War pensions not included in this table.

* *Prior to 1990 expenditure is for the year ended 31 March: from 1990 onwards expenditure is for the year ended 30 June.

†Includes 55 plus benefit, and from 1 December 1990 the job search allowance and the independent youth benefit.

‡ Family benefit was abolished from 1 April 1991.

§ Transitional retirement benefit was introduced on 1 April 1994 for those nearing eligibility for New Zealand superannuation.

|| To 1975, superannuation and age benefit combined. From 1976 superannuation and age benefits were replaced by national superannuation. For the period 1 April 1990 to 31 March 1992 this pension was called guaranteed retirement income, and on 1 April 1994 the name was changed to New Zealand superannuation. The age of eligibility was raised to 61 on 1 April 1992, and is now being raised progressively to 65. Before 1994 New Zealand superannuation expenditure includes rest home subsidy and other supplementary payments.

†† Accrued amounts. Previous annual totals were on a cash basis.

 $(000)
1940869 4181,884185 1,57230505 13,036 
194556 7042,145149 1,971472,810 18,974 
195021 2,0172,795240 4,3206229,702 34,627 
195511 2,5543,233257 5,3295836,358 58,002 
1960380 3,4394,237226 7,8327963,584 85,502 
1965197 3,9144,830153 10,21511065,925 110,314 
19701,465 6,0736,09399 13,74215072,318 155,822 
19755,155 15,88713,6658430,15627,967381153,175 365,803 
198066,077 33,23640,92476169,44953,342778220,854 1,334,115 
1981118,757 38,55349,58068198,05357,815865306,773 1,556,818 
1982156,429 43,52960,45472252,65462,164943297,705 1,895,845 
1983195,218 52,35579,07495333,61773,9541,114293,044 2,418,930 
1984315,849 62,21287,41078380,83671,2951,186289,689 2,526,031 
1985274,689 72,550105,72472460,38578,4951,004284,167 2,743,512 
1986290,462 91,762133,28776603,87889,3381,281281,957 3,341,211 
1987459,685 124,292159,82374709,56894,7321,700273,248 3,650,165 
1988672,694 159,850196,05169808,787104,1706,174290,556 3,986,544 
1989987,275 192,745226,30472962,871106,06214,074258,445 4,314,259 
19901,235,05656,460229,568260,751681,136,718114,88824,742284,444 4,774,6761,147
19941,498,54592,502329,995422,324-1,228,05486,66519,185-17,3855,102,55154,660
1995††1,313,68293,584352,167463,598-1,300,17381,25820,557-79,1675,083,11957,217

Happy students who completed an English course as a result of the Department of Social Welfare's “From welfare to well-being” programmes.

Support of children by non-custodial parents

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.

War disablement pensions

The war pensions programme provides pensions and concessions for those who saw service in the two world wars, Korea, Vietnam, The Gulf, Angola and Bosnia. It also includes obligations under the charter of the United Nations, and service within the Regular Force before 1 April 1974. Assistance for service people injured after that date is provided under the Accident Compensation Act 1982.

The administration of the War Pensions Act 1954 is the responsibility of the Secretary of War Pensions, who acts under the general direction and control of the Minister of War Pensions. A War Pensions Advisory Board advises the minister on war pensions policy and related matters. Decisions on eligibility for a war pension are made by 26 district office war pensions claims panels. Such decisions have both a review and appeal provision.

The war pensions programme comprises:

War disablement pension. This pension provides compensation for disablement. Approximately 86 percent of those receiving this pension served in World War II.

Other provisions. The war pensions programme can also provide additional allowances and concessions, including an additional pension for severe disablement, clothing allowance, travelling allowance, attendance allowance, and allowances for dependents. Approximately 90 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.

Veterans pension. From 1 April 1990 a veterans pension (a social security benefit) replaced the economic pension, war service pension and veterans allowance.

Table 7.6. WAR PENSIONS AT 30 JUNE 1995

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 fortnight ended 30 June, multiplied by 26. Pension payments are relatively constant throughout the year.

Source: Department of Social Welfare.

 $(000)
Disablement pensions*21,55359,509
Dependants pensions4,14721,716
Police3494

Social security agreements

Negotiations for social security agreements were completed during the year with Canada and Denmark. The process of getting the respective governments' approval for the agreements is currently under way. It is anticipated negotiations with Italy will be progressed in 1996.

Australia. There is reciprocity between New Zealand and Australia in relation to a wide range of benefits. For the purposes of an 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, the applicant must meet the entitlement criteria for the benefit, such as eligibility criteria concerning age or medical incapacity. Under a new agreement from 1 January 1995, New Zealand and Australia reimburse each other for age, widows, sole parent and disability benefits/pensions granted on or after 1 January 1983. A protocol to amend the agreement on 7 September 1995 also provided for an enhancement of the temporary absence provisions for pensioners under the agreement.

Greece. A new social security agreement between New Zealand and the Hellenic Republic came into force on 1 April 1994. Under this agreement New Zealand superannuation, veterans pension, funeral grants, orphans benefit, widows benefit, invalids benefit and domestic purposes benefits for widowers are paid to former New Zealand residents living in Greece. The rate of payment is determined, proportionately, in accordance with the period of the persons residence in New Zealand. Analogous Greek pensions are paid to persons who have contributed to the Greek social security agreement who are living in New Zealand.

The Netherlands. Under the social security agreement between New Zealand and the Netherlands, New Zealand superannuation, veteran's pension, widows benefit, invalids benefit and domestic purposes benefits for widowers are paid to former New Zealand residents living in Holland. The rate of payment is determined, proportionately, in accordance with the period of the persons residence in New Zealand. Analogous Netherlands pensions are paid to persons who have contributed to the Netherlands social security agreement who are living in New Zealand.

Republic of Ireland. A new social security agreement between New Zealand and Ireland came into force on 1 March 1994. Under this agreement New Zealand superannuation, veterans pension, orphans benefit, widows benefit, invalids benefit and domestic purposes benefits for widowers are paid to former New Zealand residents living in Ireland. The rate of payment is determined, proportionately, in accordance with the period of the persons residence in New Zealand. Analogous Irish pensions are paid to persons who have contributed to the Irish Social Security Agreement who are living in New Zealand.

United Kingdom. The Social Security (Reciprocity With United Kingdom) Order 1990 provides for reciprocity in a comprehensive range of benefits. For the purposes of an 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 the applicant must meet the entitlement criteria for the benefit, such as eligibility criteria concerning age or medical incapacity. A change to the paying arrangements for United Kingdom pensioners will see payment of United Kingdom pensions paid directly to pensioners from 1 April 1996.

Jersey and Guernsey. A new social security agreement with Jersey and Guernsey came into force on 1 April 1995. Under this agreement New Zealand superannuation, veterans pension, widows benefit, invalids benefit and domestic purposes benefit for widowers are paid to former New Zealand residents living in Jersey or Guernsey. The rate of payment is determined proportionately in accordance with the period of the person's residence in New Zealand. Analogous Jersey and Guernsey pensions are paid to people who have contributed to the Jersey and Guernsey social security schemes, who are living in New Zealand.

General portability. People receiving New Zealand superannuation or veterans pension are able to receive 50 percent of their benefit while living overseas, provided that they were ordinarily resident in New Zealand on the date of application and are not intending to live in a country which has a social security agreement with New Zealand.

Special portability arrangement. People eligible to receive New Zealand superannuation or veteran's pension may receive up to 100 percent of the core rate of benefit while they are living in the Cook Islands, Niue or Tokelau. The rate of payment is determined, proportionately, in accordance with the period of the person's residence in New Zealand.

7.2 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 (NZCFA) was established in May 1992 and is part of the Department of Social Welfare. It is responsible on behalf of the government for allocating and delivering funding to local community and iwi-based social and welfare service providers throughout New Zealand.

The service sectors funded are:

Families in need of support—includes counselling/therapy, family/whanau resource development, parenting programmes, youth programmes and residential care.

Community welfare—includes advice and information such as Citizen's Advice Bureaux, refuges and emergency housing.

People with disabilities—for the provision of vocational opportunities and employment placement for people with disabilities, as well as the monitoring of disability services.

The agency administers programmes under the Children, Young Persons and Their Families Act 1989 and the Disabled Persons Community Welfare Act 1975. The agency is also responsible, under the 1989 Act, for the approval of child and family support services, iwi social services, cultural social services, and community services for families. In addition it funds a wide range of vocational services for people with disabilities, ranging from daily activities and life skills to training support, employment placement and supported employment.

Funding is allocated by the New Zealand Community Funding Agency through the yearly services planning process, complemented by the national needs indicator index, on the basis of clearly identified need on both a national and local basis. The index uses census data to ensure that similar needs and services are resourced equitably on a national basis. It gives a population-based weighting to seven factors—ethnicity, unemployment, population on income support, single parents with dependent children, multi-family households, regional isolation, and cost of housing.

COMMUNITY FUNDING
By sector

The agency consults with service providers and gathers data from a variety of sources to develop a detailed picture of the needs of each area. The services of national organisations are also assessed. Once all of the information has been compiled and funding allocated, contracts for service provision are drawn up between the agency and the providers of the service. The contracted service is regularly evaluated through the approval and monitoring process.

Waiotapu Camp for 10 to 18-year-olds wanting to be involved with community projects.

During the 1994-95 financial year, the agency allocated $96.3 million directly to approximately 1,600 service providers. From 1 July 1995 NZCFA passed health-related disability support (with the exception of vocational support and placement) to regional health authorities.

During 1994-95 NZCFA funded the development of Family Service Centres around the country. These centres provide an integrated approach to parenting, education and health programmes and play an important part in helping families at risk break their cycle of disadvantage. Underpinning the agency's work is the Government's commitment to develop culturally appropriate services for Maori and Pacific Islanders. Following a process of consultation and development work by the agency, iwi social service providers are now being assisted to take responsibility for the training and care of Maori children, who were once in the care of the Children and Young Persons Service.

The Community Funding Agency has offices in eight areas: Tai Tokerau (Northland), Auckland, Central North Island, East Coast/Gisborne/Hawke's Bay, Taranaki/Manawatu, Wellington/Nelson/Marlborough, Canterbury/West Coast and Otago/Southland. Each area has a central office in the major city or town and staff are based (wherever possible) in their communities. The agency's national office is located in Wellington.

New Zealand Children and Young Persons Service

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

The Children, Young Persons and Their Families Act 1989 provides for a range of orders relating to the care, custody and guardianship of children and young persons. The service uses these orders, including interim orders, to secure a child or young person's care while working to return them to the care of their family/whanau or family group.

Care and protection services. Care and protection notifications are the key entry point to care and protection services.

Table 7.7. CHILD PROTECTION INTAKE

 Year ended June
19931994

* A single notification may encompass concern about more than one child. There may be more than one notification per child in the reporting period. One child (under the age of 14) or young person (over the age of 14 but under 17 years) may be the subject of more than one notification, enquiry, consultation or agreement. A notification is established when NZCYPS is notified or informed of a concern about a child or young person.

Source: Children and Young Persons Service.

Number of general welfare enquiries*55,35852,542
Notifications for child abuse and neglect12,40913,580
Notifications alleging child or young persons with problem behaviour5,4965,660
Notifications alleging child or young person leaving home2,0932,231
Notifications alleging relationship difficulties2,0331,785
Notifications alleging child or young person in detrimental environment5,9196,628
Parents or caregivers seeking respite care806668
              Total number of general care and protection notifications28,75630,552

Table 7.8. NOTIFICATIONS RECEIVED*

 Year ended 30 June 1995

* Notification categories changed between 1994 and 1995.

†The consent of the Director-General is required for arrested children and young people to be held in police custody longer than 24 hours.

Source: Children and Young Persons Service.

Physical/sexual abuse (in family)6,740
Physical/sexual abuse (non family)2,024
Care concerns/emotional abuse11,195
Child/young person with problem behaviour4,331
              Total number of general care and protection notifications24,290
Arrest of children and young persons1,018
Number held in police custody531
Number held more than 24 hours†89

The reduction in the number of notifications from 1994 to 1995 is related to a redefinition of intake categories from six (see table 7.7) to four (see table 7.8), and the exclusion of notifications not directly related to the need for care and protection investigations. This group of notifications, previously called General welfare enquiries, are all now dealt with as service overhead, and not recorded as a statistic for external reporting.

The NZCYPS places a priority on responding to care and protection notifications where there is an imminent threat to safety, or the child is abandoned or otherwise left alone in circumstances where they are at risk. Reports of serious physical or sexual abuse require a response within 24 hours. A standard of all notifications being responded to within seven days was not met in 1995, primarily with those notifications relating to Harmful behaviour. These cases rarely constitute an imminent threat to safety, but require investigation and follow up in due course.

Where family problems are identified following an investigation into a care and protection notification, the service responds by either referring the matter onto another agency, providing direct services through a voluntary family/whanau agreement, or providing services as an agreed outcome from a statutory family group conference (FGC). The more serious care and protection notifications are generally responded to by holding a family group conference.

A family/whanau agreement may be entered into where intervention by the service is agreed to by the family on a voluntary basis. Family/whanau agreements may be signed for a three month period, renewable once. Each agreement must be reviewed. The 3,015 family/ whanau agreements signed in 1995, recorded on the same basis as in previous years, show a significant decrease from the 3,602 in 1994.

Table 7.9. CARE AND PROTECTION FAMILY GROUP CONFERENCES

 Year ended 30 June
199319941995

* A referral is made when a matter is reported to a care and protection co-ordinator.

† There may be more than one FGC held per child or young person for any referral.

Source: Children and Young Persons Service.

Number of referrals made to care and protection co-ordinator*3,9885,3154,350
Number of FGCs held†5,2194,9444,862
Number of care and protection FGCs held that resulted in ongoing service by NZCYPS2,8943,1422,762

Where a child or young person is considered in need of care or protection and a family/ whanau agreement is not considered appropriate, intervention may occur through the statutorily-defined processes of a family group conference.

An FGC is held when an authorised agent makes a referral to a care and protection co-ordinator. The FGC brings together members of the child's family/whanau, or family group with others who have an active involvement or commitment to the welfare of the child. The function of the conference, if they agree that care or protection concerns exist, is to make recommendations and plans to address those concerns. All ongoing FGC plans must be reviewed. They are often reviewed by a reconvened FGC.

The number of referrals made to care and protection co-ordinators showed an 18 percent decrease between 1994 and 1995. The slight reduction in number of care and protection family group conferences, together with the decrease in family/whanau agreements noted above, may reflect the character of the current workload, with more time required to deal with serious and complex referrals.

Table 7.1. CHILDREN AND YOUNG PERSONS UNDER THE CARE, CUSTODY OR GUARDIANSHIP OF THE DIRECTOR-GENERAL

 As at 30 June
19931994

* 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 in favour of the Director-General may be sole guardianship orders.

§ 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 only be made where the Director-General is satisfied that the parents, guardians or usual caregivers will resume the care of the child or young person at the termination of the agreement, and the agreement of an FGC, is obtained. An extended care agreement can only be made for a maximum of six months for a child under seven years and 12 months for any other child or young person.

|| A child may be subject to more than one order.

Source: Children and Young Persons Service.

via s 39: Place of safety warrant*2817
via s 40 & s 48: warrant to remove*34
via s 42: Search without warrant (police only)*110
via s 78: Custody order pending determination†305390
via s 101: Custody orders†693959
via s 102: Interim custody orders†136175
via s 110: Guardianship orders‡1,3381,308
via s 139: Temporary care agreements§188199
via s 140: Extended care agreements§192199
              Total current orders||2,8843,261
              Number of children and young persons in care2,6542,862

The Family Court becomes involved in more serious situations. The Children, Young Persons and Their Families Act 1989 provides for a range of orders relating to the care, custody or guardianship of children and young persons. The NZCYPS uses these orders, including interim orders, to secure a child or young person's care while working to return them to the care of their family/whanau or family group. Orders usually involve custody or guardianship, and the provision of ongoing support or services by NZCYPS.

In serious situations the use of a warrant, or a less intrusive but immediate form of action, may be taken to provide protection to a child or young person, or to place them in a situation where immediate care needs may be met. These warrants have been called Emergency Actions.

Table 7.11. FAMILY GROUP CONFERENCE PLANS AND COURT ORDERS COMPLETED

 Year ended 30 June 1995

Note: A child may be subject to more than one order.

Source: Children and Young Persons Service.

via s74: Counselling order26
via s78: Custody order pending determination828
via s86: Service order595
via s87: Restraining order196
via s91: Support service469
via s101: Custody orders1,510
via s102: Interim custody orders413
via s110: Guardianship orders1,514
Family Group Conference2,497
              Total orders completed8,048
Number of children and young persons for whom orders were completed7,087

Table 7.12. EMERGENCY ACTIONS CARRIED OUT

Type of actionYear ended 30 June 1995
Source: Children and Young Persons Service.
via s39: Place of safety warrant478
via s42: Police search without warrant55
via s48: Unaccompanied child281
via s139: Temporary care agreement1,634
              Total2,448

Youth justice services. 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. Services, provided under the Children, Young Persons and Their Families Act 1989 and the Criminal Justice Act 1985, include:

  • Managing actions with offenders up to and including the age of 16 years.

  • Managing the processes of legal proceedings, including considering all available options and complying with statutory requirements.

  • Diverting offenders from formal legal proceedings.

  • Providing services to give effect to non-court and court disposals, either directly by the Service or indirectly by an approved organisation or individual.

  • Providing custodial services.

  • Overseeing the actioning of family group conference plans or Court Orders.

The service has contracted with the Minister of Social Welfare to provide the following:

  • Public awareness services, including public education activities that promote the well-being of children, young persons and their families. These services are provided under the Children, Young Persons and Their Families Act 1989.

  • Risk identification and management, including the investigation and management in compliance with the law of all situations where children and young persons are reported at risk of abuse, neglect or deprivation, or exhibit harmful behaviour. 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.

  • Family resolution services, including the management of resolution processes by means of agreements with families and statutory family group conferences, and giving effect to plans and orders of conferences and courts. These services are provided under the Children, Young Persons and Their Families Act 1989, and the Criminal Justice Act 1985.

  • Residential and caregiver services, including the provision of accommodation and care services for the care and custody of children and young persons who have been arrested or remanded by courts, or who are in the Director-General's custody by order or agreement. These services are provided under the Children, Young Persons and Their Families Act 1989 and the Criminal Justice Act 1985.

  • Adoption and information services, including the management of adoption, including inter-country adoptions, and the provision of information to the parties of adoption about each other, in compliance with the law. These services are provided under the Adoption Act 1955 and the Adult Adoption Information Act 1985.

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 the offender's behaviour.

A change in recording practice means that only referrals accepted for FGC are recorded. However, it is common for further offences to come to light once the FGC is under way. A new offence requires a new FGC.

For serious youth justice care and protection cases the service provides residential services in Auckland (Weymouth), Hamilton (Dey Street), Wellington (Epuni), Christchurch (Kingslea) and Dunedin.

Table 7.13. YOUTH JUSTICE REFERRALS AND FAMILY GROUP CONFERENCES

 199319941995
Source: Children and Young Persons Service.
Number of referrals for FGC accepted7,6245,022
Total youth justice FGCs held6,5597,0836,935

The number of admissions to youth justice residences increased 49 percent in the 12 months to 30 June 1995.

There was also a 21 percent increase in admissions to care and protection residences. Despite the 43 percent increase in total admissions to residences for the year to June 1995, the absconding rate has continued to decrease, from 20 percent in 1994 to 18 percent in 1995.

Table 7.14. ADMISSIONS TO RESIDENCES*

 WeymouthDey StEpuniKingsleaDunedinTotal

* Year ended 30 June 1995.

Source: Children and Young Persons Service.

Care and protection
Bed capacity10006420
Number of admissions850458118265
Number of individuals admitted66035544168
Number absconding36007319128
Youth justice
Bed capacity2552026480
Number of admissions621144185249461,245
Number of individuals admitted3148711518324723
Number absconding56216730147
Total
Bed capacity35520328100
Number of admissions7061441893071641,510
Number of individuals admitted3808711823868891
Number absconding9221614619275
Individual Residential Programmes meet the Admission Objectives34%0%13%31%96%31%

Adoption

The Adoption Information and Services Unit of the NZCYPS is responsible for statutory adoption services. The number of people seeking to adopt overseas (inter-country) has risen significantly and is expected to continue rising, as the number of children in New Zealand becoming available for adoption by strangers remains low. New Zealand already has the largest number of Romanian adoptions (180).

Table 7.15. CHILDREN PLACED FOR ADOPTION

 1991*1992*1993†1994‡1995‡

* Year ended 31 December.

† Six months ended 30 June 1993.

‡ Year ended 30 June.

Source: Department of Social Welfare.

Final adoption orders made806794369683640
Adoptions handled by/reported to NZCYPS Adoptions by:
     Strangers195196113183124
     One parent and spouse300280129221240
     Relatives16516176151146
     Close friends19199825
     Foster parents1638152412
              Total adoptions handled/reported to NZCYPS:695694342587547

Table 7.16. SERVICE PROVIDED TO IMPLEMENT THE ADULT ADOPTION INFORMATION ACT 1985

 1991*1992*1993†1994‡1995‡

* Year ended 31 December.

1 January to 31 May 1993. June not available.

‡ Year ended 30 June.

Source: Department of Social Welfare.

Birthparents placing vetos462693469
Birthparents removing vetos211351514
Adopted persons placing vetos391892636
Adopted persons removing vetos17158148
Birth parents requesting
     Identifying information416196126787621
     Application for a copy of original birth certificate1,7531,6136231,8491,597

Students on a course for the unemployed learn traditional culture performance skills.

Social Policy Agency

The Social Policy Agency provides the ministers of social welfare, senior citizens and war pensions with high quality policy advice across a wide range of social policy and social equity issues. It has these divisions:

  • Income maintenance policy—providing policy advice on the full range of income maintenance issues, including: income support issues for older people, those with disabilities, sole parents and the unemployed, and issues related to income assistance to families and people with special needs.

  • Social services policy—providing policy advice on a wide range of social services policy matters, including: child and family policy, health/welfare interface issues, funding of non-government providers of social services, and other social issues such as child welfare, youth justice, family violence, adoption, crime prevention and disability support.

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

  • Social policy information services—supporting the provision of a policy advice service with needed, timely, and accurate information. Develops and monitors major cost models, evaluates policies and programmes, analyses information and undertakes primary and secondary research.

Also contained within the Social Policy Agency are the Senior Citizens Unit and the Family Violence Unit. The Senior Citizens 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 about one hundred and an annual budget of $9.8 million.

TRITEC

TRITEC is the information technology group of the Department of Social Welfare. This group provides the department with real time, on-line computing services including the SWIFTT (Social Welfare Information for Tomorrow Today) benefit processing system and the CYPfis (Children, Young Persons and their Families information system) nation wide computing system.

The SWIFTT Benefit Processing System now includes all major benefits processed in New Zealand. In 1993, the SWIFTT system was enhanced to process benefits for national superannuation, veterans' pension and the accommodation supplement. The most current benefit information for each client is recorded, along with a history of their benefit entitlement. The introduction and development of SWIFTT has resulted in many positive effects to the delivery of income support services. Improvements have been realised in customer service, management information, productivity and cost effectiveness.

Benefit crime investigation programme

Since it began in 1987 the purpose of the programme has been detection of those committing crime, and deterrence of others. Information matching programmes started in 1993-94. In the year to 30 June 1995 there were 93,854 cases where the investigation was completed, with 48,001 overpayments identified to a value of $57.3 million.

Contributors

  • 7.1-7.2 Department of Social Welfare.

Special articles

Department of Social Welfare; Office of the Retirement Commissioner; Statistics New Zealand; Office of the Commissioner for Children.

Further information

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

Report of the Office of the Retirement Commissioner.

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

Chapter 8. Health and safety

Contemplating Christmas at Wellington hospital.

The government's goals for the health and disability sector are:

  • Goal 1 : to improve the health of people in New Zealand

  • Goal 2 : to put people at the centre of service delivery

  • Goal 3 : to make the best use of resources available for health and disability services.

The reforms based on the policy statement Your Health and the Public Health (1991) were put in place on 1 July 1993.

Reforms to disability support services were announced in Support for Independence: A New Deal in 1992, and have been implemented progressively since then.

8.1 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. Over 75 percent of health care is publicly funded.

Ministry of Health. The Ministry provides policy advice to the Government on health and disability support services. It negotiates, manages and monitors funding agreements with regional health authorities (RHAs) and service providers, administers health sector legislation and collects and disseminates health information.

Regional health authorities. The four RHAs are responsible for purchasing health and disability services for New Zealanders, including public health services. RHAs also manage contracts with service providers specifying the services being provided. The four authorities are: Northern, Midland, Central and Southern.

The purchase of primary and secondary health care and disability support services is managed within an integrated budget to enhance health service effectiveness, efficiency and the quality of outcomes. Primary health services are provided to improve the health of the individual. These services are the first point of contact and include family doctors and Plunket, district or community nurses. Secondary health services are also provided to individual patients. These are community based, out-patient and hospital specialist services.

The RHAs contract with organisations such as Crown health enterprises, private hospitals, and individuals such as doctors, to purchase health care for all those who need it. The RHAs' integrated budgets provide incentives for more effective use of resources. RHAs seek the best possible standard of health care, at the best possible price, and have the option of purchasing health care from the public, private or voluntary sectors.

Crown health enterprises. There are 23 Crown health enterprises. Individual Crown health enterprises generally provide health care and disability support services for a particular area based around a 24-hour acute care tertiary (high technology) hospital.

National Advisory Committee on Health and Disability (known as the Core Services Committee). The committee advises the Government on the content, quality and terms of access to publicly–funded personal health and disability support services within a resource-constrained environment. It also provides independent public health policy advice. Among its publications in 1995 were: Priority criteria and the Human Rights Act: An interpretation; Guidelines for the management of mildly-raised blood pressure in New Zealand; and Acute low back problem in adults: Assessment and treatment, a clinical practice guideline.

The committee seeks to ensure that maximum benefit is obtained from limited resources by developing guidelines for best practice, based on the systematic evaluation of evidence. This results in clear understanding as to the circumstances in which services will be publicly funded.

There is international interest in New Zealand's distinctive approach of including consumer and community wishes and considering resource realities in the development of guidelines. Such countries, where similar work is being undertaken, include the United States of America, the United Kingdom, Canada, the Netherlands, Sweden, Norway and Denmark.

Health Research Council of New Zealand. The Health Research Council of New Zealand was established by the Health Research Council Act 1990, and is the major government agency funding and co-ordinating health research in New Zealand. Health research is also funded by other government ministries, public and private organisations and charitable trusts. The council's mission is to improve human health by promoting and funding health research. Research funded by the council covers a spectrum stretching from basic biomedical research to applied public health research. The act requires the council to support research initiatives in Maori health, and set guidelines for health research ethics.

The functions of the Health Research Council include:

  • Advising the Minister of Health on national health research policy.

  • Fostering the recruitment, education, training and retention of a health research work force in New Zealand.

  • Initiating and supporting health research.

  • Promoting and disseminating the results of health research in ways which contribute to health science, health policy and health care delivery.

The direct funding from government in 1995-96 for the council's work is $17.19 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.

The council provides biostatistical, computing and engineering support services, based at the four schools of medicine, for all health researchers.

Health expenditure

Health expenditure in New Zealand amounted to an estimated $6,188 million for the financial year ended 30 June 1994. This represented 7.6 percent of New Zealand's gross domestic product and was equivalent to $1,767 expenditure per annum per head of population. An estimated 77.2 percent of this expenditure came from public sources.

Table 8.1. HEALTH EXPENDITURE TRENDS*

Source of funding1989-90R1990-91R1991-92R1992-931993-94

* CPI deflated.

†Expressed in 1992 dollars

Source: Ministry of Health.

 $(million)†
Public4,2554,4294,4734,4644,776
Private8929601,1881,3681,412
       Total5,1475,3895,6615,8326,188

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 Ministry of Health collects workforce data for the different professional groups.

The role of registration boards/councils is to monitor entry standards for their relevant profession, and to register and discipline practitioners.

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 lay person. The act was amended in 1995.

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 only. Conditionally-registered doctors may only practise in an approved hospital under supervision; their training is supervised by a medical education committee responsible to the council.

The number of medical practitioners on the register at 30 June 1995 was 11,889, with 7,998 holding annual practising certificates. The Medical Council also has disciplinary powers and held 21 disciplinary hearings in the year to 30 June 1995.

Dentists. The Dental Council is governed by the Dental Act 1988. It registers 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 October 1995 was 1,959.

GP VISITS
Percentage of people who made six or more visits in last year

The Dental Act 1988 provides for a disciplinary structure with independent complaints assessment committees and a Dentists Disciplinary Tribunal, comprising both dentists and lay members.

The council maintains links with overseas registration authorities including the Australasian Dental Council.

Nurses and midwives. The Nursing Council of New Zealand is constituted under the Nurses Act 1977. Its primary function is the registration of nurses and midwives and enrolment of enrolled nurses. The council sets minimum standards for registration and enrolment; makes recommendations on programmes leading to registration and enrolment; conducts examinations; approves schools of nursing/midwifery (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, midwives and a roll for enrolled nurses. On 28 November 1995,45,107 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 offer shortened courses for graduates and enrolled nurses which lead to comprehensive registration. Polytechnics also conduct basic midwifery courses. Post-basic education ranges from regular in-service and short clinical courses to diploma and transition to degree courses at polytechnics; and certificates and degrees to doctorate level at Massey and Victoria universities.

The Nursing Council is extending its professional role in response to the wishes of the nursing and midwifery professions. It has distributed a code of conduct, and is planning the development of competencies linked with ongoing licence to practise, standards of practice and a code of ethics.

In July 1995 the council appointed an independent committee to review and evaluate the teaching of cultural safety in nursing courses, and will implement the committee's recommendations. Hearings on the same matter were held by a Parliamentary select committee.

A council representative attended the 2nd International Conference on the Regulation of Nursing and Midwifery in June 1995.

Psychologists. The Psychologists Board is constituted under the Psychologists Act 1981. The board is concerned with the registration of psychologists and discipline of registered psychologists. In 1995 there were 1,329 registered psychologists, with 902 holding annual practising certificates. Current legislation only requires registration of psychologists for those psychologists practising in the state services or licensed institutions under the Mental Health (Compulsory Assessment and Treatment) Act 1992.

Physiotherapists. The Physiotherapy Board is constituted under the Physiotherapy Act 1949. The board registers applicants for physiotherapy practice, regulates the conduct of those registered under the act and issues ultrasonic therapy licences.

Four-year, full-time courses in physiotherapy are offered at the University of Otago and the Auckland Institute of Technology. Successful completion of these qualifications is required for registration. At 30 November 1995 there were 4,347 registered physiotherapists with 2,108 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.

The three-year full-time training courses are conducted at the Auckland Institute of Technology and the Otago Polytechnic. Successful completion of a qualification from one of the institutions is required for registration.

At the end of November 1995 there were 2,028 registered occupational therapists, with 1,005 holding annual practising certificates.

Dietitians. The Dietitians Board is constituted under the Dietitians Act 1950. The postgraduate training course for dietitians is the responsibility of the University of Otago. Students are usually already qualified in either ‘home’, ‘consumer’ or ‘applied’ science.

At 30 November 1995 there were 892 registered dietitians with 321 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 optometrists and dispensing opticians.

There were 594 registered optometrists with 389 holding annual practising certificates and 94 registered dispensing opticians with 70 holding annual practising certificates in 1995. Optometrists are trained at the University of Auckland in a four-year full-time degree course. Dispensing opticians are trained through a three-year correspondence course.

Podiatrists. The Medical Auxiliaries Act 1966 provides 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 Bachelor of Health Science (Podiatry) which is the qualification recognised for registration.

In 1995 there were 362 registered podiatrists, with 207 holding annual licenses.

Chiropractors. The Chiropractic Board is constituted under the Chiropractors Act 1982, and is concerned with the registration, education and conduct of practising chiropractors. Graduates from board-approved chiropractic colleges are eligible to take the board's competency examination and successful candidates are considered by the board for registration. The New Zealand Chiropractors' Association established a school of chiropractic, the New Zealand Centre for Chiropractic Ltd, in Auckland in 1994. The five-year full-time course includes a BSc. Training facilities will include a research unit.

At 30 November 1995 there were 289 registered chiropractors of whom 156 held annual practising certificates.

Pharmacists. The Pharmacy Act 1970 provides for the registration of pharmacists and pharmacies in New Zealand. All registered pharmacists are members of the Pharmaceutical Society of New Zealand. The society is concerned with the education, registration and conduct of pharmacists, and to protect the interests of the public and the profession.

People wishing to enter the profession study a four-year degree programme at the University of Otago and, as graduates, must undertake a year's practical experience before becoming eligible for registration as pharmacists.

In September 1995 there were 3,532 pharmacists on the register. The act requires all pharmacies to register with the society; in August 1995 there were 1,053 pharmacies registered. At the beginning of August 1994 there were 1,065 community pharmacies in New Zealand employing over 2,200 pharmacists.

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. There are five classes of medical radiation technology: diagnostic radiography, radionuclide imaging, therapeutic radiography, ultrasound imaging and magnetic resonance imaging.

In September 1995 there were 2,319 registered practitioners, 1,241 of whom held annual licences. Diagnostic imaging courses are available at UNITEC, Manawatu Polytechnic and Christchurch Polytechnic. Radiation therapists undertake a three-year full-time diploma course at the Central Institute of Technology, Heretaunga.

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.

The traditional apprenticeship-style training system is being replaced by courses based in the education sector. Otago University and Auckland Technical Institute offer a Bachelor of Medical Laboratory Science. In 1995 there were 2,318 registered medical laboratory technologists, with 1,270 licensed to practise.

Dental technicians and clinical 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 30 November 1995, 135 dental technicians and 130 clinical dental technicians held annual practising certificates.

8.2 Medical benefits

Regional health authorities subsidise the cost of general practitioner visits for New Zealanders. While some doctors are bulk-funded, many receive a patient subsidy. This covers at least part of the cost of their services to all children, and to adults who are Community Services Cardholders or High Use Health Cardholders. The benefit applies to visits to general practitioners. Doctors claim the benefit direct from the RHA and receive the remainder of their fees from the patient.

The benefit for cardholder children is $25 if under the age of five years and $20 for children five years and over. All non-cardholder children receive a subsidy of $15 for visits to a general practitioner. Cardholder adults receive a $15 benefit. The benefit for adults with high use health cards is $15.

Medical benefits do not apply to certain services, namely, maternity cases (which are covered by maternity benefits described below); 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 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 pharmaceutical schedule, and prescribed by medical practitioners, midwives or dentists.

A charge is made for each prescription item which is included on the pharmaceutical schedule. This charge is $3 for all cardholders. Non-cardholders pay up to $15 per item for adults and $10 per item for children. Certain medicines are also subject to an additional manufacturer's premium charge to the patient. Doctors and chemists have a list of these items.

Families pay for a maximum of 20 pharmaceutical items each year. Non-cardholder families continue to pay a residual charge of $2 per item after the first 20.

PHARMAC, the Pharmaceutical Management Agency Ltd, manages the country's Pharmaceutical Schedule, the list of subsidised pharmaceutical and related products, plus the subsidy restrictions and guidelines for these products. It is a Crown agency set up in 1993 as a limited liability company jointly owned by the four Regional Health Authorities. The RHAs spent $674 million on pharmaceutical subsidies in the year to June 1995.

With a staff of 15, PHARMAC is undertaking comprehensive reviews of all products under the various therapeutic groups, with the aim of improving the value for money of public funding of pharmaceuticals. The annual increase of pharmaceutical subsidy costs is now down to 5 percent a year. Last year 54 new products were added to the list of 2,500 pharmaceuticals on the schedule.

Hospital charges

In-patient treatment in public hospitals is free of charge for all New Zealanders. Out-patient treatment in public hospitals is free of charge for all cardholders.

People without cards pay a $16 charge for children and $31 for adults. Families pay for a maximum of five out-patient visits each year. Exemptions are made for some sorts of treatment.

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

Women may receive free pregnancy, childbirth and postnatal care from their general practitioners or independent midwives (through benefits paid by RHAs) or by attending antenatal clinics established in connection with public hospitals with maternity wards. Some women choose obstetric care from a specialist and may then be charged by the specialist over and above the rate provided by the benefit.

Approximately 98 percent of births take place in hospital, but independent 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 and from independent midwives or voluntary organisations.

All maternity hospitals are licensed under the Hospitals Act 1957, and the Ministry of Health is responsible for ensuring that regulations regarding buildings, equipment and staff are observed.

The Health and Disability Commissioner explaining consumers' rights in the new Code of Health and Disability Services.

Home nursing and home help

Home nursing is free when provided by a registered nurse or midwife employed by a Crown health enterprise 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. Crown health enterprises 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 pre-schoolers, school children and adolescents. Dentists under contract to RHAs provide the treatment. Some public hospitals also have dental departments which provide services to patients.

Artificial aids

There are specific benefits available from RHAs in various circumstances for a range of artificial aids. These include breast prostheses, hearing aids, wheelchairs, artificial eyes and wigs. Specific conditions for eligibility apply in each case as to the suitability of the aid and the necessity for it. The benefits generally contribute to the initial cost and to replacements.

Table 8.2. EXPENDITURE ON HEALTH BENEFITS

Item1990-911991-921992-931993-941994-95
Source: Ministry of Health.
 $(000)
Artificial aids1,7712,7192,3382,6832,858
Pharmaceutical benefits545,331556,373582,931645,930678,724
Primary services290,126287,557299,083319,807322,954
Provider subsidies3,1363,0813,0841,472..
Referral services113,017110,219119,233138,400143,505
Secondary services55,30160,23257,12026,634..
 1,008,6821,020,1811,063,7891,134,926..

8.3 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 food premises, hairdressers, camping grounds and funeral directors. There is also the control of offensive trades and environmental noise. 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 facilities. Health protection officers and medical officers of health are employed by Crown health enterprises and have broad powers under regulation. They provide specialist advice to local government to improve the effectiveness of environmental health activities.

The Ministry of Health also has responsibilities in public health regulation, including licensing of hospitals and old peoples' homes; administration of legislation on communicable and non-communicable disease control; environmental health; and the co-ordination of national regulatory activities.

The Public Health Commission was disestablished on 30 June 1995 and the Public Health Group established within the Ministry of Health with the functions: to monitor the state of public health and to identify public health needs; and to advise the minister on matters related to public health.

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 (toothpowder 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 opioid 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, are included in class C. Anything produced from a cannabis plant is class B.

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 Ministry of Health, New Zealand Customs and the New Zealand Police have maintained the National Drug Intelligence Bureau since 1972.

MEDICAL PRICES WORLD-WIDE*
CountryAntiseptic ointment per 30 gmElastic dressing strip per 24Pain relief tablet per 24Doctor's visit

* Prices have been converted into New Zealand dollars at exchange rates correct as at November 1994. These figures are a guide to what New Zealand dollars will buy; they are not adjusted for wage rates nor do they indicate relative standards of living.

Source: Consumers' Institute.

 NZ$
Australia$2.872.432.784.38
Canada$6.632.612.83no charge
Fiji$3.302.501.80no charge
Franceno charge4.343.7030.59
Germany$7.366.316.3131.56
Hong Kong$5.542.453.5031.46
Ireland2.904.003.2535.28
Italy7.673.277.16no charge
Netherlands6.193.755.9131.91
New Zealand4.003.403.4533.00
Singapore3.531.662.3612.17
South Africa3.432.961.834.58
United Kingdom2.932.533.95no charge
United States of America4.843.304.2897.17

Communicable disease control

The Ministry of Health monitors disease incidence, and the prevalence of, and immunisation coverage for, communicable diseases. This includes policy development, promulgation of regulations and the fulfilment of international disease reporting requirements. The Ministry of Health manages the national co-ordination of responses to disease outbreaks and is responsible for the national immunisation schedule and the control of communicable diseases through designated officers employed by Crown health enterprises.

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 the 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 are undertaken by designated officers of Crown health enterprises.

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. Crown health enterprise health protection officers and medical officers of health provide specialist advice to local authorities on these matters.

The current regulations do not address all hazards in the food industry. To provide the needed assurance on the safety of food offered for sale, sections of the food industry have been working closely with the Ministry of Health on the development of industry-based systems to identify and adequately control hazards. The goal is to replace the current Food Hygiene Regulations and, to assist with the transition, it is proposed that the Food Act 1981 be amended to recognise Food Safety Programmes based on the Hazard Analysis Critical Control Point (HACCP) system. Wide consultation has been carried out on recognising this system in New Zealand food law.

Services for older people

The focus of services for older people is assessment, rehabilitation and continuing care.

Regional health authorities purchase services for older people from public and private providers. Older people assessed as needing continuing care in a rest home or geriatric hospital are means tested. They have to contribute to the cost of their care according to the criteria set for the income and asset test.

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 RHAs will promote the development of more flexible and comprehensive services and the extension of assessment and rehabilitation services. Home support services development includes more support for informal caregivers and more flexible arrangements for daycare and respite care.

Voluntary welfare organisations

Over the years voluntary welfare organisations have made valuable contributions to important aspects of public health. Vote: Health, through a variety of contracts and other agreements, funds 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.

Mental health

In June 1994 the government developed an overall strategy for mental health services in New Zealand. The strategy sets out the government's goals, principles and objectives for mental health services and confirmed the fundamental change in direction from a hospital-based service to a community-based service. Following a comprehensive review of the adequacy of mental health services, the government has agreed on a number of priority areas for service development. The priority service areas are community mental health teams and community residential services for respite care and for people with high dependency needs. The priority groups are Maori, young people and people with severe psychiatric disabilities.

To guide the development of services, the government has set a series of national objectives. These are more specific than the goals and principles—their role is to tackle the deficiencies and problems that previous reviews of mental health services have identified.

The national objectives will act as aims for the mental health services over the next three to 10 years. They form the basis of five strategic directions:

  • Implementing community-based and comprehensive mental health services.

  • Encouraging Maori involvement in planning, developing and delivering mental health services.

  • Improving the quality of care.

  • Balancing personal rights with protection of the public.

  • Developing a national alcohol and drugs policy.

Candles lit at a Beacons of Hope ceremony to launch the 12th International AIDS Candlelight Memorial.

Since 1994, regional health authorities have purchased a range of new community mental health services, in line with the Government's priorities.

Further developments relating to the mental health strategy include:

  • A new stocktake of mental health services to assist in monitoring their adequacy.

  • Ongoing work on child and adolescent mental health issues, Maori mental health and Pacific Islands mental health.

  • Promoting means to increase the skills of the mental health workforce.

  • Ongoing review of the Mental Health Act (Compulsory Assessment and Treatment) 1992.

  • A quality assurance newsletter QA Bulletin, incorporating Te Kupenga (covering Maori mental health issues), published quarterly.

  • A youth mental health resource booklet called Feeling Stink produced for those who work with young people.

  • Review of the Mason Report (1988) for forensic services looking at the implementation of the recommendations made in the report.

  • A report on economic models for primary mental health services.

MENTAL HEALTH FACILITIES
Resident rate

Disability support services

As the result of a review of the funding of support services for people with a physical, sensory, intellectual, psychiatric or age-related disability, most government funding for disability support services has been brought together.

RHAs are responsible for purchasing services to support the independence of people with disabilities. This includes services provided by Crown health enterprises, private businesses such as resthomes and voluntary (not for profit) organisations. Real changes have occurred in the areas of assessment and service co-ordination for older people. Now older people have the opportunity to be assessed to determine the services which best meet their needs. Improved delivery of disability support services will in the future ensure that the person's needs are matched with the most appropriate service.

Family health

The health of families is promoted through co-operation between the Ministry of Health, RHAs, government departments, voluntary agencies, Crown health enterprises 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 RHAs 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. A three-month campaign on teen relationships and sexuality which included a toll-free line that received 110,000 calls, and distribution of 30,000 booklets, won the top 1995 Direct Marketing Association award.

The New Zealand Association of Natural Family Planning is also contracted to the RHAs. 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 CHEs 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.

Women's health

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.

The Ministry of Health provides policy advice to the Minister of Health on current issues concerning women's health. These 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.

Women's health services are provided by Crown health enterprises, health professionals and a large variety of community and consumer groups.

The National Cervical Screening Programme (NCSP) is overseen by the Ministry of Health. Regional health authorities purchase locally co-ordinated and managed cervical screening services from Crown health enterprises and Maori and Pacific Islands providers. The National Cervical Screening Register (NCSR) is the key management tool of the programme and is both a personal management and national programme management tool. It forms a communication link between enrolled women, general practitioners or other smear takers, and laboratories and treatment services. The register ensures women are not overlooked when they move from one part of the country to another. It complements, and is a back-up to, existing general practitioner recall systems and registers.

The NCSP aims to:

  • reduce the age-standardised death rate from cervical cancer in women aged 20-69 by 50 percent or more for Maori and 25 percent or more for non-Maori by the year 2000;

  • reduce the incidence of invasive cervical cancer from 251 cases in 1990 to 180 cases or less annually by the year 2000;

  • increase the proportion of women aged 20-69 years who have, in the previous three years, been screened for pre-invasive cervical cancer and provided with appropriate follow-up diagnosis and therapeutic services, to 80 percent or more by the year 1995. Screening should cover all ethnic groups, excluding women who have had a total hysterectomy for a benign condition, or who have never had sexual intercourse;

  • increase the percentage of invasive cancer detected at Stage 1 of the disease to 45 percent or more by the year 1995; and

  • increase the proportion of eligible women enrolled on the National Cervical Screening Register from 18 percent in 1992 to 75 percent by 1996, and to 85 percent by the year 2000.

Breastfeeding. It is recommended that exclusive breastfeeding is the preferred infant feeding choice for the first four to six months of life, with subsequent supplementation of breast milk during weaning. Scientific studies have identified that breastfeeding is associated with lowered risk for sudden infant death syndrome (SIDS) and allergy development in the infant. Breast milk also provides the infant with antibodies to protect against infection, and is an inexpensive, hygienic, readily available and complete nutritional food for the first six months of life. Benefits for the mother include a decreased risk of pre-menopausal breast cancer, a 98 percent contraceptive effect, very little preparation and it helps mothers to return to their pre-pregnancy weight.

BREASTFEEDING
Average duration

The Plunket National Child Health Study found that 89 percent of women planned before the birth to exclusively breastfeed their baby and 94 percent were actually initiating breastfeeding. During the first eight weeks of feeding, breastfeeding rates dropped to 79 percent and by three months, 62 percent of mothers were still breastfeeding. This figure is high in comparison with other western countries.

Child health

A comprehensive range of child health services which focus on disease prevention and health promotion are purchased by RHAs. The services include a range of well child services, such as parenting support, newborn screening, developmental vision and hearing screening for children aged 0-4 years, and immunisation. The majority of well child services for this age group are provided by Crown health enterprises and the Royal New Zealand Plunket Society. Alternative providers, such as the Tipu Ora Trust, are providing services to some groups. Examination by family doctors is recommended at about six weeks of age and whenever there is anxiety over acute or chronic illness or development.

Infant mortality was 7.3 deaths per 1,000 live births in 1992. This is one of the lowest rates 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 RHAs to provide short-term residential and non-residential care for children with minor health problems, both physical and behavioural. Referrals to the camps are primarily made by public health nurses employed by Crown health enterprises. The Ministry of Education maintains school classes in the camps, with emphasis on remedial teaching. An increasing number of parents are attending residential and non-residential courses to improve parenting skills.

A consultative service is provided to schools by public health nurses, with special emphasis on health education and health promotion.

The differing hospital discharge rates for Maori and non-Maori children, illustrated in the table below, reflect differing usage of health services by these groups. Improving usage of primary well child care health services through specifically targeted programmes, such as that provided by the Tipu Ora Trust, is a priority area for improving the health status of Maori children. The improvement of child health is one of the priorities identified by the government in the policy guidelines to RHAs.

The model for an earlyhealth stamp checks his form as a two-year-old.

Table 8.3. CHILDREN'S PUBLICLY-FUNDED HOSPITAL DISCHARGE RATES 1994*

PopulationAge group (years)
0-45-910-14

* Per 1,000 mean population.

Source: New Zealand Health Information Service.

Maori392.190.464.7
Non-Maori431.989.068.3
          Total422.989.367.6

The Ministry of Health provides policy advice to the Minister of Health relating to health services for children and their families. The four RHAs purchase both disease prevention and treatment services, provided by a range of health care providers including health professionals and community groups.

Immunisation against nine serious diseases is free and is usually performed by family doctors, their practice nurses or by public health nurses. The government's National Immunisation Strategy aims to have 95 percent of children fully immunised at the age of two by the year 2000, from less than 60 percent in 1992. The strategy, which comes into effect in 1996, includes a new immunisation schedule, standards to improve the quality of immunisation services and an immunisation certificate to remind and encourage parents to have their children immunised. The new approach will ensure children need fewer visits to health professionals to be immunised and greater protection and coverage levels among children. This will result in fewer children getting vaccine-preventable diseases.

Table 8.4. RECOMMENDED IMMUNISATION SCHEDULE

AgeVaccine

* Diphtheria, tetanus, whooping cough, Haemophilus influenzae type b.

† Oral polio vaccine.

§ Measles, mumps, rubella. † Adult- type tetanus-diphtheria vaccine

Source: Ministry of Health.

6 weeksDTPH*
Hepatitis B
OPV†
3 monthsDTPH
Hepatitis B
OPV
5 monthsDTPH
Hepatitis B
OPV
15 monthsDTPH
MMR§
11 yearsOPV
MMR
Td†

Table 8.5. INFANT IMMUNISATION LEVELS BY VACCINE TYPE, 1992

Vaccine typePercentage*

* National averages of RHA levels (unweighted).

Source: Ministry of Health.

Diphtheria/tetanus/whooping cough (DPT)80.6
Diphtheria/tetanus (DT)72.9
Hepatitis B66.6
Poliomyelitis67.6
Measles82.0

Health promotion

It is widely recognised that our health is profoundly affected by the socio-economic environments in which we live in addition to our own personal behaviours and genetics. Health promotion is not just the responsibility of the health sector, but goes beyond healthy lifestyles to address other factors that determine well-being.

Health promotion puts health on the agenda of policy makers at all levels, directing them to be aware of the health consequences of their actions. Health promotion action means building healthy public policy, creating supportive social environments, strengthening community action, developing personal skills and reorienting health services.

Smoking

Tobacco products consumption per adult in 1994 fell 4 percent below the 1993 level to 1,520 cigarette equivalents per adult, among the lowest for developed countries. Doorstep surveys of 10,000 people during 1994 showed that 27 percent of adults (28 percent of men and 26 percent of women), and 30 percent of 15-24 year olds, regularly smoked either manufactured or hand-rolled cigarettes.

While smoking prevalence in the total population has decreased since the 1976 Census of Population and Dwellings, there has been little change in the smoking prevalence among Maori and Pacific Islands people. It was estimated that 4,500 deaths in 1990 were due to the smoking of cigarettes, comprising 18 percent of all deaths. Over 250 deaths per year are estimated to be due to passive smoking.

TOBACCO CONSUMPTION
Per person aged 15 years and over

Expenditure on mass media tobacco advertising reduced 80 percent after the Smoke-free Environments Act took effect in December 1990. After 31 December 1995, there will be no future association of the tobacco industry with sporting or cultural events in New Zealand.

Alcohol

In New Zealand the excessive consumption of alcohol is a major personal and public health issue. Mean alcohol consumption in 1992 was 9.8 litres of pure alcohol per adult 15 years and over. Surveys of New Zealand drinkers and their associated health problems published by the Alcohol and Public Health Research Unit indicate that:

  • Ninety percent of men and 84 percent of women are drinkers.

  • Seventy-one percent of all alcohol is consumed by men.

  • Seventy-three percent of the self-reported problems resulting from alcohol consumption are from men.

  • The 18-24 year old age group almost always reports the highest levels of alcohol consumption and related problems.

  • The preferred drink for men is beer and for women, wine.

Table 8.6. 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 consumption--74

Between 700 and 800 deaths each year are attributed to alcohol. In 1992, alcohol was a contributing factor in 41 percent of fatal road traffic crashes and 21 percent of injury accidents. Alcohol also significantly aggravates violence and contributes to deaths from falls, drowning and suicide.

Alcohol-related health promotion and treatment services are purchased by RHAs in accordance with policy advice provided by the Ministry of Health.

The Alcohol Advisory Council of New Zealand (ALAC) promotes moderation in the use of alcohol and provides policy advice on strategies which will reduce alcohol-related problems.

ALAC funds a multi-disciplinary alcohol research unit in association with the Health Research Council and the University of Auckland School of Medicine. It also supports other independent research projects.

ALCOHOL AVAILABLE FOR CONSUMPTION
Per person aged 15 years and over

In the health promotion area, ALAC funds mass media advertising to raise the level of awareness of alcohol-related problems, and is encouraging host responsibility both on licensed premises and at private functions. ALAC's programmes support the work of CHEs, particularly in promoting host responsibility on licensed premises. The council has also sponsored an alcohol and drug education programme in schools, currently being promoted by the colleges of education. Pamphlets, posters and more specialised information are available through ALAC's regional and national offices, and the council also provides the government, government departments and other agencies with advice and statistics on control policies, treatment methods and facilities, and other alcohol-related matters. 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.

Volunteer dental therapists off to the remote rainforest highlands of Guatemala for a three-month tour to provide first-ever checking of teeth in 40 indigenous villages.

See also section 24.1 Controls on trading.

Physical activity

The Life in New Zealand Survey showed that in 1991 about one-third of New Zealanders engage in physical activity to the level and duration recommended for cardiovascular fitness (i.e. high intensity activity more than twice a week and for a total of at least one hour per week). Over 50 percent of children participate in some sport at five to seven years of age. This rises to 95 percent and 74 percent in boys and girls respectively at 14 to 15 years of age. High intensity activity is more commonly undertaken in young men and women, the rate of which declines steadily with age. More young men than young women maintain high levels of activity, but after 65 years of age, more women than men maintain moderate to high levels of physical activity.

Maori men and women both have higher levels of ‘intense’ physical exercise than European men and women. Among all women it is more common to be participating in ‘moderate’ levels of physical exercise. Maori men are more likely to be engaged in ‘intense’ physical exercise, while European men are more likely to have ‘low’ levels of physical exercise.

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 in-patients and other special groups. The skills of dentistry are taught at a school for dental therapists at Wellington Polytechnic and dentists at the School of Dentistry, University of Otago.

School Dental Service. This service works to maintain a high standard of dental health for pre-school and school children, 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, provide children with 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 1.5 per child in 1992, and 47 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 communities with fluoridated and non-fluoridated water supplies has decreased. The benefit of fluoridation in preventing dental decay is greatest for those in low socio-economic groups, Maori and children.

New Zealand Health Information Service

The Ministry of Health, through the New Zealand Health Information Service (NZHIS) manages the national health information service and provides the health sector, government, public and health professionals and health managers with information on health and health service provision.

The key activities of the NZHIS are:

  • The maintenance, management and development of the national health information collections.

  • Providing a range of specialised services and information to the Ministry of Health and clients within the health sector and the public.

  • Overseeing and co-ordinating health information activities.

  • Providing advice and support on information to the health sector.

The NZHIS was established in November 1993.

Information network and core system. A network of information services is accessible to health service and health care providers throughout the country.

National minimum dataset. The NMDS provides the basic data on health services and health status. Information in this database is used to provide analyses of trends in health status, use of services, and patterns of morbidity and mortality.

Standards. A crucial role for the NZHIS is the development and monitoring of standards for information in the health sector. Work is carried out to assure the quality of statistical information supplied by hospitals and other providers and to develop a range of suitable information technology standards covering the exchange of information in the health sector. Privacy standards have also been prepared.

Publications. The NZHIS collects, analyses and disseminates national health information. The information is based on statistical collections of mortality, hospital in-patient morbidity and other institutional-based data, and data from health surveys and information provided by the primary health care sector.

Information is presented in a series of annual reports of Hospital and Selected Morbidity Data, Mental Health Data, Cancer Data, Mortality and Demographic Data, Foetal and Infant Death Data, brochures and other publications.

SELECTED CAUSES OF DEATH
Age-standardised rate

Causes of death

The World Health Organization'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, and Ministry of Transport and Water Safety reports.

Medical practitioners certified 83 percent of deaths registered in 1993, and 17 percent were certified by coroners. Of the deaths certified by doctors, 4 percent were subject to autopsy, compared with 48 percent of deaths certified by coroners. Overall, 11 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.

Malignant neoplasms (cancer), ischaemic heart disease and cerebrovascular disease are the leading causes of death in New Zealand and collectively account for approximately 60 percent of all deaths: malignant neoplasms accounted for 26 percent of deaths, ischaemic heart disease for 25 percent of deaths, and cerebrovascular disease for 10 percent in 1993.

Further statistics on causes of death can be found in section 8.4 Hospitals.

Table 8.7. MAJOR CAUSES OF DEATH*

Cause of deathNumber of deathsRate per million of mean population
199119921993199119921993

* Further details of causes of death are available from New Zealand Health Information Service.

Source: Health Information Service.

Malignant neoplasms6,7926,8817,0942,0132,0132,051
Diabetes mellitus402458459119134133
Chronic rheumatic heart disease104130126313836
Hypertensive disease246217281736381
Ischaemic heart disease6,7407,0986,8981,9972,0761,994
Other forms of heart disease1,1321,1461,066335335308
Cerebrovascular disease2,6612,7342,788788800806
Diseases of arteries, arterioles, and capillaries649636680192186197
Pneumonia1,0721,114999318326289
Bronchitis, emphysema and asthma425409395126120114
Other diseases of respiratory system1,1351,2891,310336377379
Peptic ulcer164183164495447
Cirrhosis of liver132109124393236
Congenital anomalies201211209606260
Conditions of perinatal mortality157117122473435
All other diseases2,7792,8022,754823820796
Motor vehicle accidents681656617202192178
All other unintentional accidents and external causes521550583154161169
Suicide and self-inflicted injury474493443140144128
     Total, all causes of death26,49027,25227,2097,8477,9727,866

Table 8.8. DEATHS FROM CANCER, 1993

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: New Zealand Health Information Service.
Under 553.41.785.73.2
5-14114.221.683.216.3
15-24248.65.4155.610.4
25-4414127.516.118935.640.1
45-64977294.336.7897270.451.1
65 and over2,6541,570.826.92165951.720.9
      All ages3,812223.526.93,282187.225.2

Cancer. In New Zealand one death in four is caused by cancer. A detailed report on cancer mortality and morbidity in New Zealand is published annually by the New Zealand Health Information Service. It covers cancer registrations and deaths and surveys all cases reported to the National Cancer Registry.

In 1993 ninety-one percent of deaths from cancer were at 45 years of age or above, and 74 percent at 65 years of age or above. The lungs continued to be the major site in male deaths from cancer with 6 percent of all male deaths caused by lung cancer. The breasts are the major cancer site in females and accounted for 4 percent of all female deaths.

Table 8.9. DEATHS FROM CANCER AT SELECTED SITES

SiteSexNumberRates per million mean population
199119921993199119921993
Source: New Zealand Health Information Service.
Buccal cavity and pharynxM503738302222
 F21141712810
OesophagusM114111140696682
 F656369383639
StomachM199201171120119100
 F103113104606559
Large intestineM341335329205199193
 F381351378223203216
RectumM210238218126141128
 F169136149997885
Large bowelM551573547331340321
 F550487527321281301
Bronchus, trachea and lungM869947892523562523
 F427445444250257253
BreastM334222
 F588569584344328333
CervixF1068480624846
Corpus uteriF525158302933
Ovary, fallopian tube and broad ligamentF1611611889493107
ProstateM423478520254284305
Bladder and other urinary organsM9594105575662
 F544745322726
Skin, all formsM137126151827589
 F819796475655
BrainM125108111756465
 F797692464452
Lymphomosarcoma and reticulum-cell sarcomaM12108765
 F11113662
LeukaemiaM116153149709187
 F999499585456
All other and unspecified sitesM847930976509552572
 F854798876499460500
              Total cancer deathsM3,5413,7713,8122,1302,2372,235
F3,2513,1103,2821,9001,7941,872 

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 late fetal deaths (stillbirths) and deaths in the first week of life. A late fetal death is a death occurring after 28 weeks gestation and before birth. The late fetal death and the perinatal mortality rate are calculated per 1,000 total births (late fetal deaths plus live births), while the death rate for neonatal and infant death is calculated per 1,000 live births.

Table 8.1. FETAL AND INFANT MORTALITY RATES, 1993*

Category of deathMaoriPacific IslandOtherTotal
NumberRateNumberRateNumberRateNumberRate

* Rates per 1,000 live or total births.

Source: New Zealand Health Information Service.

Late fetal182.5214.61463.11853.1
Early neonatal223.1173.71372.91763.0
Perinatal405.6388.32836.03616.1
Late neonatal111.820.4330.7480.8
Post neonatal709.8102.21272.72073.5
Infant1054.7296.32976.34317.3

Table 8.11. INFANT MORTALITY RATES FOR SELECTED OECD COUNTRIES*

Country19901993

* Rate per 1,000 total births.

† 1992

Source: OECD in Figures (1995 edition).

Australia8.26.1
Austria7.46.5
Germany7.15.8
Greece9.78.5
Iceland5.54.8
Japan4.64.5
New Zealand8.47.3
Portugal11.08.7
Switzerland6.85.6
United Kingdom7.96.6

The principal causes of infant mortality are shown in table 8.12. 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 8.12. PRINCIPAL CAUSES OF INFANT MORTALITY FOR MAORI AND NON-MAORI, 1993

Cause of deathMaoriNon-MaoriTotal population
Number of deathsRate per 1,000 live birthsNumber of deathsRate per 1,000 live birthsNumber of deathsRate per 1,000 live births
Source: New Zealand Health Information Service.
Infectious & parasitic disease10.1420.0430.05
Malignant neoplasms--10.0210.02
Disease of nervous system40.5690.17130.22
Circulatory system--60.1260.10
Respiratory system50.7090.17140.24
Digestive system--10.0210.02
Congenital anomalies141.961082.091222.07
Perinatal202.801001.931202.04
Sudden infant death syndrome537.43641.241171.99
Accidents, poisoning, violence —external causes60.84220.43280.48
Remainder—all other causes20.2850.1070.12
Total infant deaths10514.723276.324327.34

Maori health workers at a Mangere marae.

INFANT MORTALITY
Deaths of infants under 1 year

Maternal deaths. Direct maternal deaths totalled seven in 1993, with a rate of 11.9 per 100,000 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.

Table 8.13. ABORTIONS ACCORDING TO AGE GROUP

Age group1991R1992R1993R1994
Source: Abortion Supervisory Committee.
11----
124-1-
137314
1432395039
15154134133174
16322306288333
17498445475508
18592622638668
19717725716774
20-243,4503,3983,5753,900
25-292,5922,6612,6082,787
30-341,8451,8691,9202,056
35-391,0851,0631,1421,214
40-44300308322350
45 and over15222428
              Total11,61311,59511,89312,835
Under 16 years197176185217
Age 16-19 years2,1292,0982,1172,283

Table 8.14. GROUNDS ON WHICH ABORTIONS WERE AUTHORISED

Grounds19901991R1992R1993R1994
Source: Abortion Supervisory Committee.
Serious danger to physical health2621142727
Serious danger to mental health10,88711,33911,36311,59212,572
Combination of serious danger to physical and mental health1261006011176
Substantial risk of abnormal child4466858362
Incest-1-4-
Offence under s. 131 Crimes Act---31
Woman severely subnormal1113-
Serious danger to mental health and risk of abnormal child8379676595
Serious danger to physical and mental health and substantial risk of abnormal child33-4-
Serious danger to mental health and offence under s. 131 Crimes Act1111-
Danger to mental and physical health and offence under s. 131 Crimes Act-----
Serious danger to mental health and woman severely subnormal--2-1
Danger to mental, physical health and woman severely subnormal----1
Other multiple grounds222--
              Total11,17311,61311,59511,89312,835
Factors of alleged rape taken into account6656526548

Table 8.15. ABORTION RATES AND RATIOS: NEW ZEALAND AND OTHER LOW FERTILITY COUNTRIES

Country*YearRate per 1,000Ratio per 1,000
Total populationWomen 15-44BirthsBirths plus abortions

* With the exception of New Zealand, Sweden, and England and Wales, data has been obtained from the Alan Guttmacher Institute.

Source: Abortion Supervisory Committee.

New Zealand19943.615.7221181
Australia19883.816.2253202
Canada1990P3.414.0232188
Denmark1993P3.616.9277217
England and Wales1993P3.114.7233189
Finland19902.611.5200167
France19902.812.6212175
Germany19901.25.810898
Japan19903.717.0368269
Netherlands (residents only)19881.25.19688
Norway19933.516.1250200
Scotland19882.19.7169145
Sweden1992P4.020.1284221
United States19886.527.3401286

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.

8.4 Hospitals

Hospital and community health administration

Since 1 July 1993 Crown health enterprises (CHEs) have been responsible for providing health services in the health sector. CHEs were formed around existing large hospitals.

CHEs are expected to compete with other health care providers for contracts from RHAs. The four RHAs are the country's health care purchasing organisations.

Licensing and inspection of public and private hospitals are the delegated responsibility of the Ministry of Health.

Hospital part-charges apply to a range of out-patient services and are targeted according to income (see 8.2 Hospital benefits). The Crown Companies Monitoring and Advisory Unit is responsible for monitoring the performance of CHEs.

Public hospital patients

In 1994, there was a total of 330 hospitals in New Zealand; 126 of these were public hospitals and 204 private. The total number of hospital beds totalled 24,120, 16,468 of which were in public hospitals and 7,652 were in private. The number of beds available per 1,000 people was 7.7, with the average of occupied public hospital beds numbering 15,360.

Principal diseases and disabilities. Detailed statistical information is supplied to the Ministry of Health (New Zealand Health Information Service) about all patients discharged from, or dying in, public hospitals in New Zealand.

Table 8.17 shows the principal diseases and injuries treated in public hospitals in 1994, together with average stay (in days), and conditions as a percentage of total cases. The disease headings are the 50 disease group categories of the International Classification of Diseases.

Hospital returns show each disease for which the patient was treated while in hospital, but the classification for statistical purposes has been made on the basis of the principal condition for which the patient was admitted, regardless of what other unrelated diseases may have been present or developed during the stay in hospital.

Length of stay in public hospitals. The average length of stay in public hospitals in 1994 was eight days. Among sufferers from specified diseases, the longest average stays were made by those with psychoses (45 days), cerebrovascular disease (33 days) and other diseases of the nervous system (22 days).

Table 8.16. AGE AND SEX OF INPATIENTS DISCHARGED FROM PUBLIC HOSPITALS, 1994

Age groupMalesFemalesTotal
Source: New Zealand Health Information Service.
0-451,43942,70694,145
5-97,7855,85013,635
10-146,6115,50812,119
15-197,63713,95321,590
20-249,25826,66935,927
25-297,73133,04040,771
30-347,63530,78238,417
35-397,14016,33023,470
40-446,7079,86116,568
45-497,4658,24215,707
50-547,8577,55615,413
55-598,8147,67916,493
60-6411,3629,16720,529
65-6914,80811,48126,289
70-7415,56913,60429,173
75-7912,69813,50426,202
80-849,78312,36822,151
85+6,39511,45617,851
              Total206,694279,756486,450

Trying out a new pair of legs.

Table 8.17. DISEASES AND CONDITIONS TREATED IN PUBLIC HOSPITALS (INCLUDING RE-ADMISSIONS, EXCLUDING DAY CASES) DURING 1994

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: New Zealand Health Information Service.

Infectious and parasitic diseases (except tuberculosis)8,5061.76.7
Tuberculosis3360.113.1
Malignant neoplasms*23,3494.89.6
Benign neoplasms†3,2120.76.0
Disorders of the thyroid gland4610.15.2
Diabetes mellitus3,5120.79.8
Other endocrine, nutritional, metabolic and immunity disorders2,3200.58.8
Diseases of blood and blood-forming organs3,0030.65.1
Psychoses5,5441.145.3
Other mental disorders4,3660.915.1
Disorders of eye and adnexa6,3791.32.6
Diseases of ear and mastoid process3,5040.72.1
Other disorders of central nervous system3,3180.721.9
Acute rheumatic fever and chronic rheumatic heart disease6100.113.9
Ischaemic heart disease17,6713.66.8
Hypertensive disease and other forms of heart disease12,5452.69.9
Cerebrovascular disease8,9621.833.1
Diseases of arteries, arterioles and capillaries4,0710.810.2
Other diseases of circulatory system3,9720.86.7
Acute respiratory infections and influenza8,2711.72.7
Pneumonia7,7821.610.1
Chronic obstructive pulmonary disease15,3473.26.2
Chronic disease of tonsils and adenoids4,2480.91.6
Other respiratory disease3,6510.87.6
Disease of oral cavity, salivary glands and jaws1,5350.32.7
Oesophagus, stomach and duodenum disease4,1900.96.1
Appendicitis3,9240.84.8
Hernia of abdominal cavity4,2030.93.2
Non-infective enteritis and colitis10,5552.26.2
Other digestive system disease8,0301.76.4
Other diseases of urinary system6,4551.35.1
Male genital organ diseases3,8870.84.4
Breast and inflammatory pelvic organs2,6390.52.8
Other female genital tract6,9261.43.8
Pregnancy and complications of childbirth, excl. abortion65,96813.64.5
Pregnancy with abortive outcome4,1080.81.7
Skin and subcutaneous tissue disease7,2121.57.6
Arthropathies and related disorders14,9083.19.3
Osteopathies, chondropathies2,4600.512.3
Congenital anomalies5,1841.17.7
Perinatal conditions13,5522.88.5
Symptoms, signs26,1815.43.7
Fractures21,4764.49.9
Dislocations, sprains and strains of joints2,3630.53.9
Intracranial injury5,3231.13.4
Laceration and open wound7,4881.53.8
Burns1,2800.39.3
Drug, medicament, poisoning3,0370.62.9
All other conditions98,62620.37.2
              All conditions486,450100.07.5

Injury cases. During 1994 the three largest categories of injury came under the headings ‘accidental falls’, ‘medical and surgical complications’ and ‘motor vehicle crashes’. More than one in four patients had been injured in a fall of some kind.

Accidents at home. A high percentage of non-transport accidents, especially those involving young children and elderly people, occur at home. Domestic accidents are included by type of accident in the previous section, and are listed separately in the table below. Table 8.19 shows the number of patients discharged from, or dying in, public hospitals after treatment for injuries from accidents at home in 1994. It only includes in-patients in public hospitals, not the large numbers of home accident cases treated in out-patient departments, doctors' surgeries and at home.

Admissions. The total number of admissions (including replacements) to inpatient psychiatric care during 1993 was 15,653. This total was made up of 4,372 first admissions and 11,281 readmissions. Included in the readmission figure were 574 patients replaced from leave. This last category applies only to people who may not discharge themselves, for example special and committed patients, and those with compulsory treatment status.

Table 8.18. INJURY CASES TREATED AS INPATIENTS IN PUBLIC HOSPITALS (INCLUDING READMISSIONS), 1994*

Cause of injuryTotal casesPercentage of all injury cases

* Year ended 31 December.

Source: New Zealand Health Information Service.

Transport—
     Railway21-
     Motor-vehicle traffic7,03010.0
     Motor-vehicle non-traffic8691.2
     Other road vehicles1,7282.5
     Water1950.3
     Air960.1
     Vehicle accidents not elsewhere classifiable14-
              Subtotal, transport9,95314.2
Non-transport—
     Accidental poisoning1,0101.4
     Accidental falls19,09427.2
Surgical and medical complications and misadventures14,80921.1
Other accidents13,97919.9
Late effects of accidental injury3,6295.2
Adverse effects of drugs, medicaments, and biological substances2,7663.9
Suicide and self-inflicted injury2,6913.8
Homicide and injury purposely inflicted by other persons2,1533.1
Legal intervention by police11-
Injury undetermined whether accidentally or purposely inflicted2030.3
Injury resulting from operations of war3-
              Subtotal, non-transport60,34885.8
              Total70,301100.0

Table 8.19. INPATIENTS IN PUBLIC HOSPITALS AFTER ACCIDENTS AT HOME, 1994*

Cause of accidentTotal patients

* Year ended 31 December.

Source: New Zealand Health Information Service.

Accidental poisoning by—
     Drugs and medicaments487
     Petroleum products and other solvents45
     Agricultural and horticultural preparations other than plant foods or fertilisers38
     Noxious foodstuffs and poisonous plants36
     Other solid and liquid substances122
     Gases and vapours21
Accidental falls7,312
Struck by falling objects106
Accidents caused by cutting and piercing instruments1,329
Accidental burns799
Accidents caused by foreign bodies402
All other and unspecified accidents1,612
              Total12,309

For further accident statistics, see section 8.5 Accidents.

Table 8.2. RATES OF FIRST ADMISSION TO MENTAL HEALTH FACILITIES‡

YearAge*Total all ages†
0-910-1920-2930-3940-4950-5960 and over

* Age-specific rate per 100,000.

†Age standardised rates per 100,000 standardised to Segi's world population.

‡ Includes psychiatric illness hospitals, intellectual handicap hospitals, psychiatric units of public hospitals and alcoholism and drug addiction facilities.

Note that Maori age-specific and age-standardised rates are calculated from single origin populations.

Source: New Zealand Health Information Service.

1988—
Maori521048827517013190218
Non-Maori10108222159127103151129
1989—
Maori121794442601539192197
Non-Maori119522515712995133124
1990—
Maori1216549633829215637230
Non-Maori788240213165140136142
1991—
Maori41684703181979193208
Non-Maori78022517412298125121
1992—
Maori-101398293207102122164
Non-Maori277329191138115118114
1993—
Maori-1675103321779488190
Non-Maori170221176124100119104

The average number of occupied beds in psychiatric hospitals and hospitals for the intellectually handicapped has been steadily declining since 1944. The downward trend reflects advances in treatment and, in more recent years, the provision of alternative forms of care.

A new Northland mobile ear clinic caravan to help the 10 percent of pre- and primary school children with hearing problems and glue ear.

Table with adjustable height and angle donated by medical students to their local hospital's children's pavilion.

During 1993, 77 percent of first admissions and 68 percent of readmissions were on an informal (voluntary) basis. Table 8.22 shows that the two leading diagnostic reasons for entering in-patient care for all psychiatric admissions were schizophrenic psychoses and affective psychoses.

Discharges. During 1993 there were 15,875 discharges from psychiatric hospitals and hospitals for the intellectually handicapped, psychiatric units of public hospitals and institutions treating alcoholism and drug addiction. Of these, 9,123 were discharged from psychiatric hospitals, 222 from hospitals for the intellectually handicapped, 5,644 from public hospital psychiatric units and 886 from institutions licensed under the Alcoholism and Drug Addiction Act 1966.

Approximately seven out of every 10 patients leaving hospital in 1993 had a stay of fewer than 30 days.

Table 8.21. DISCHARGES FROM MENTAL HEALTH FACILITIES*, 1993†

DiagnosisOutrightLeaveNot committed
NumberMean stay (days)NumberMean stay (days)NumberMean stay (days)

* Includes psychiatric illness hospitals, intellectual handicap hospitals, psychiatric units of public hospitals and alcoholism and drug addiction facilities.

†Year ended 31 December.

Source: New Zealand Health Information Service.

Senile and pre-senile organic psychotic conditions22616714172--
Alcoholic psychoses61405585114
Drug psychoses175161576114
Other organic psychotic conditions129144711136
Schizophrenic psychoses3,4111806271892349
Affective psychoses3,3224028066830
Paranoid states1642816132--
Other psychoses5772352110--
Neurotic depression and other depressive disorders1,470192287--
Other neurotic disorders317203119115
Alcohol dependence or abuse1,50948897513
Drug dependence or abuse630271764828
Other personality disorders819436591914
Stress and adjustment reactions834141189138
Non-psychotic disorders of childhood and adolescence1154----
Non-psychotic disorders due to brain damage57145832--
Physiological malfunction due to mental factors151,465----
Mental retardation3232,86125304248
No psychiatric diagnosis1661654713120
              Total14,216139126113918924

Local opposition to the proposed closure of Kaitaia Hospital.

Table 8.22. DIAGNOSES FROM MENTAL HEALTH FACILITIES*, 1993†

DiagnosisTotalsFirst admissionsReadmissionsReplacements from leave

* Includes psychiatric illness hospitals, intellectual handicap hospitals, psychiatric units of public hospitals and alcoholism and drug addiction facilities.

†Year ended 31 December

Source: New Zealand Health Information Service.

Senile and pre-senile organic psychotic conditions250163825
Alcoholic psychoses6222373
Drug psychoses200621308
Other organic psychotic conditions14061763
Schizophrenic psychoses4,0604393,319302
Affective psychoses3,6437092,816118
Paranoid states17271938
Other psychoses63727334519
Neurotic depression and other depressive disorders1,5025649299
Other neurotic disorders3221431763
Alcohol dependence or abuse1,61569889621
Drug dependence or abuse6623053516
Other personality disorders88517067342
Stress and adjustment reactions8654633984
Non-psychotic disorders of childhood and adolescence1082-
Non-psychotic disorders following brain damage5822351
Physiological malfunction due to mental factors817-
Mental retardation2162417022
No psychiatric diagnoses346174172-
              Total, all cases15,6534,37210,707574

Deaths. In 1993 there were 145 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 132 in 1992.

Simple reminder of a fatal collision with a truck on a state highway.

8.5 Accidents

Accident Rehabilitation And Compensation Insurance

New Zealand was the first country to introduce a system of comprehensive no-fault insurance cover for accident-related injuries and disabilities.

The accident compensation scheme was created by legislation and took effect in 1974. It replaced a statutory workers' compensation scheme, compulsory third party motor vehicle accident insurance and a criminal injuries compensation scheme. It also removed the common law right to sue for damages in return for guaranteed support for injured people regardless of fault.

The scheme has been amended from time to time, principally to keep its entitlements in line with social changes. However, it retains the basic principle on which it was established—the acceptance of community responsibility for the treatment, rehabilitation and support of those injured by accident.

Cover is extended to all New Zealand residents, to New Zealand residents while temporarily overseas and to overseas visitors while they are in New Zealand.

ACC

ACC is the commonly used name of the Accident Rehabilitation and Compensation Insurance Corporation. It is a Crown agency responsible to a government-appointed Board of Directors and ultimately to a Minister of the Crown for the efficient administration of the statutory insurance scheme.

ACC has about 1,700 full-time and 300 part-time employees and an annual budget of around $1.6 billion. Its administrative costs represent only 8 percent of total budget, with 92 percent of its budget going directly to claimants or being spent on services to claimants.

The organisation does not maintain any service facilities of its own, but buys the health, rehabilitation and other services needed by its claimants from a mix of state and private providers.

In its last financial year (to 30 June 1995) ACC received over 1.4 million new claims. About 10 percent of those (135,094) involved moderate or serious injuries while the remainder required only basic medical attention. In addition to the new claims, ACC continued to provide support on 126,377 claims for the ongoing effects of injuries which occurred in previous years.

Services

ACC is active at all points of the injury prevention, treatment and rehabilitation sequence. It:

  • runs injury prevention programmes in workplace, sporting, recreational and domestic environments and is active in road safety campaigns.

  • funds land and air ambulance services.

  • pays the hospital costs of those injured in accidents.

  • pays for a range of rehabilitation services to enable people to return to their pre-injury state.

  • Where full recovery is not possible it pays for ongoing support such as home help, attendant care, child care and home and vehicle modifications.

  • provides income support while people are unable to work as a result of their injuries. This is calculated at 80 percent of pre-injury income.

  • For those with minor injuries ACC helps pay for consultations and treatment by general practitioners and for radiology, physiotherapy, dental and other specialist treatments.

Funding

ACC is funded by all New Zealanders. It is a pay-as-you-go scheme, which means it collects enough money each year to pay all its expenses in that year. ACC receives income from five sources (as shown in Table 8.24):

Employers. All employers (including the self-employed) pay a premium based on their total payroll. The level of this premium depends on the risk level of the work engaged in. For the 1996-97 premium year employer premiums range from $1.16 on every $100 of payroll (clerically-based occupations) to $9.80 on every $100 of payroll (forestry).

Earners. All earners pay a premium based on their total earnings. This is collected with PAYE tax. The current premium rate is 70 cents in every $100 earned.

Motor Vehicles. Part of the annual registration fee for motor vehicles is an ACC premium. At present this is $90 for a private car. A tax of 2 cents a litre on all petrol sales also goes to ACC.

Government. The government makes an annual payment.

Investment. ACC is required to maintain reserves equivalent to six months' expenditure. These reserves are invested and income is produced by those investments.

Costs

The costs of each injury are assigned to one of six separate accounts.

The Employers' account meets the cost of all work-related injuries. It is funded from the employers' premiums. In the year to 30 June 1995 the account had 292,328 new claims made against it. The cost during that year of those claims, together with the ongoing cost of work-related injuries which occurred in previous years, was $912,696,000.

The Earners' account meets the cost of non-work injuries to people who are in the work force. Typically these are injuries resulting from accidents which occur in the home or while involved in sport or recreation. They do not include injuries involving motor vehicles on public roads. The account is funded from the earners' premiums. In the year to 30 June 1995 the account had 377,767 new claims made against it. Those claims, together with ongoing costs of injuries from previous years, cost $208,542,000 during the year.

The Non-earners' account meets the cost of all injuries (except those involving motor vehicles on public roads) to people who are not in the work force. This account is funded by a direct payment from the government. In the year to 30 June 1995 it had 718,980 new claims made against it. Those claims, together with the ongoing costs of injuries from previous years, cost $182,605,000 during the year.

The Motor vehicle account meets the costs of all injuries involving motor vehicles on public roads. It is funded from the motor vehicle premiums and petrol tax. In the year to 30 June 1995 some 47,226 new claims were made against this account. The cost of those claims, and the ongoing cost of motor vehicle injuries from previous years, was $282,642,000.

The Subsequent work injury account meets the cost of work-related claims which involve a recurrence of an injury received while the claimant was with a previous employer. It is funded from the four principal accounts. In the year to 30 June 1995 it received 200 new claims and total spending from the account was $371,000.

Table 8.23. ACCIDENT COMPENSATION CLAIMS REGISTERED BY ACCOUNT*

Account199319941995

* Figures are not comparable with previous years. Year ended 30 June.

Source: Accident Rehabilitation and Compensation Insurance Corporation.

 (000)
Employers' account293266292
Motor vehicle account454447
Non-earners' account654688719
Earners' account289333378
Subsequent work injury account0.2
Medical misadventure account22
              Total claims1,2811,3331,439

Table 8.24. ACC CONSOLIDATED INCOME AND EXPENDITURE

 19941995

* Lump sum entitlements have been phased out since 1992. 1995 was the final year in which significant amounts were payable.

Source: Accident Rehabilitation and Compensation Insurance Corporation.

Income$(000)
Employers' account premiums697,914799,643
Motor vehicle account premiums321,678281,280
Non-earners' account premiums187,492165,489
Earners' account premiums249,851228,833
Subsequent work injury account premiums-371
Medical misadventure account premiums6524,699
Investment income58,23049,675
              Total income1,515,8171,529,990
Expenditure
Injury prevention3,9583,439
Rehabilitation benefits
Vocational rehabilitation5,1756,463
Social rehabilitation55,96286,171
Primary medical treatment172,968180,515
Hospital treatment21,31023,884
Public health care costs138,750106,938
Dental treatment9,2889,390
Conveyance for treatment20,81027,723
Miscellaneous benefits4,5925,497
 428,855446,581
Compensation benefits
Income maintenance705,487776,647
Independence allowances6,55712,346
Lump sums*272,569131,219
Death benefits52,19455,099
 1,036,807975,311
Other payments
Research grants3,1242,037
Collection fees28,00330,112
Interest on borrowing4143,962
Occupational safety and health15,636-
 47,17736,111
Operating costs118,024130,113
              Total expenditure1,634,8211,591,555
Operating surplus/(deficit)(119,004)(61,565)
Accumulated funds 1 July564,882445,878
Accumulated funds 30 June445,878384,313

ROAD DEATHS
Death rate from motor vehicle accidents

The Medical misadventure account meets the cost of injuries which result from error by medical practitioners or from rare and severe outcomes of medical or surgical procedures. It is funded from the Earners' and Non-earners' accounts. In the year to 30 June 1995 it received 2,067 new claims and had total costs of $4,699,000.

In the year to 30 June 1995 income totalled $1,530 million and total expenditure was $1,592 million. The shortfall was met from scheme reserves.

Accident compensation statistics. The ACC collects a number of statistics on compensated claims. Compensated claims largely exclude injuries causing less than eight days incapacity (for which the corporation is not required to pay compensation) and claims for medical treatment only (for which the doctor is normally reimbursed directly).

Statistics showing the type and location of accidents causing injury can be found later in this section, while statistics for accidental injuries treated in public hospitals appear in section 8.4, Hospitals.

Traffic accidents and road safety

Accidents on roads. Motor-vehicle accidents involving death or personal injury are required by law to be reported to the Land Transport Safety Authority or to the police. During the year ended 31 December 1993 there were 10,994 reported accidents resulting in 600 fatalities and injuries to 15,108 other people.

Table 8.25. ROAD ACCIDENT CASUALTIES BY TYPE, 1993

Classification of accidentsKilledSeriousMinorTotal
Source: Land Transport Safety Authority.
Overtaking or lane change36143419598
Head on (not overtaking)1555371,1021,794
Lost control or ran off road on straight593361,1261,521
Lost control or ran off road while cornering1507062,3593,215
Collision with obstruction10128505643
Rear end7769431,026
At intersections or driveways—
     Vehicles moving in same direction, one turning7147802956
     Vehicles crossing paths, not turning302211,0591,310
     Vehicles crossing paths, one turning181639851,166
     Vehicles merging246216264
     Vehicles moving in opposite directions, one turning right192261,0691,314
Vehicles manoeuvring12114589715
Pedestrian crossing road54267565886
Pedestrian—other183693147
Miscellaneous235377153
              Total6003,19911,90915,708

THE ROAD TOLL
Numbers killed

Table 8.26. AGE OF PERSONS KILLED AND INJURED IN MOTOR ACCIDENTS

Age groups (years)Killed*Injured
199119921993199119921993

* Killed immediately or died within 30 days of accident.

Source: Land Transport Safety Authority.

Under 5142019310318271
  5-916148498504446
10-1421169740708672
15-19101105973,4203,0872,851
20-241301321103,1083,0322,752
25-296857721,9031,7761,664
30-345343461,4251,3531,264
35-394344371,050984956
40-44402345761799773
45-49213020583619634
50-54221910507519468
55-59161111363376327
60-6422149369338329
65-69202415335277307
70-74202022271290238
75-7991622265243195
80 and over182718200241213
Unknown age163130658657748
              Total65064660016,76616,12115,108

Table 8.27. ROAD USERS KILLED AND INJURED IN ROAD MOTOR ACCIDENTS, 1993

Type of casualtyKilledSerious injuryMinor injuryTotal
Source: Land Transport Safety Authority.
Driver of—
     Car2271,0895,4096,725
     Taxi-34952
     Van21173549743
     Truck1046164220
     Bus-11314
     Motorcycle744689341,476
     Other181120
     Unknown----
Passenger of—
     Car1466622,8123,620
     Taxi--1919
     Van17125419561
     Truck2147389
     Bus232833
     Motorcycle655104165
     Other-314
     Unknown----
Cyclist17224686927
Pedestrian743166331,023
Other and unknown39517
              Total6003,19911,90915,708

ROAD ACCIDENTS
Contributing factors by percentage, 1994

Surf lifeguard abandons the outboard motor to prevent his inflatable rescue boat from flipping.

Table 8.28. 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: Land Transport Safety Authority.
198872821.717,324516.2537.9
198976122.516,526488.3510.8
199072921.317,698516.1537.4
199165018.816,766486.0504.8
199264618.516,121462.5481.0
199360017.015,108428.6445.6

Table 8.29. INTERNATIONAL COMPARISONS: MOTOR ACCIDENT DEATH RATES

CountryYearPersons killedPersons killed per 10,000 vehicles*Persons killed per 100,000 population

* Estimated for New Zealand.

Source: Land Transport Safety Authority.

New Zealand19936002.717.0
Australia199219771.911.2
United Kingdom19924,3791.57.6
USA199239,2352.015.4
Japan199313,2691.910.6
Canada19923,5012.012.3
Germany19939,9492.212.3
Sweden19936321.57.3
France19939,5683.416.6

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 23.4, Road transport.

Publicity directed towards road safety is carried out through the press, radio, television and by means of posters and other advertising. Special road safety campaigns and traffic improvement courses are held from time to time. The main emphasis in schools and colleges of education centres around integrating traffic education into school programmes.

Traffic education units are co-operatively planned and implemented. 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. A network of 45 people who co-ordinate community organisations working in road safety are also based in each local authority. The New Zealand Automobile Association also provides the New Zealand Defensive Driving Course for licensed drivers.

Advice on road safety policy is given to government by the Transport 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 Rehabilitation and Compensation Insurance Act 1992 a Motor Vehicle Licensing Premium and Petroleum Excise Premium provides cover for motor-vehicle accidents. The Motor Vehicle Account, one of the four funder accounts, has set as its injury prevention priorities road safety and motorcycle safety. See Accident compensation.

Water accidents

The New Zealand Water Safety Council, formed in 1949, is the national organisation responsible for ensuring all New Zealanders participate safely in water activities—whether in home pools, at beaches, in lakes, rivers or out at sea.

The council represents the interests of 23 organisations across a range of aquatic sports and recreation, including the Swimming Federation, Surf Life Saving NZ, the Underwater Association, the Recreation Association, and Royal New Zealand Coastguard Federation. The council is funded by the Lottery Grants Board and through sponsorship by organisations such as the Lotteries Commission.

Educating the public on water safety is one of the council's fundamental tasks. The council initiated the Lotto Take the Plunge learn to swim event, in recognition that the ability to swim is a life skill which all New Zealanders should possess. In 1995, Lotto Take the Plunge, developed with the assistance of VicSwim in Australia, involved 9,000 participants, 800 instructors, and 124 swimming pools nationwide.

Member organisations' education programmes funded by the council include KiwiSwim, Beach Ed, and Day Skipper which all focus on water safety and recreational participation. During 1994-95, 82,000 participated in KiwiSwim, 40,000 in Beach Ed, and 1,800 in Day Skipper.

Major research projects in 1995 included reviewing national and international recreational boating legislation, analysing recreational boating accidents and incidents, and developing an internationally compatible database for underwater activities.

The drowning figures for 1995 indicate the overall downward trend has been maintained, especially within the recreational drowning category, providing an indication that the water safety message is being effective.

Table 8.3. DROWNINGS

ActivityYear ended 31 December
1990R*1991R*1992R*199319941995

* Revised figures for 1990-92 have been confirmed against coroners' reports.

Source: NZ Water Safety Council.

Recreational
Boating311522371224
Surf sports21-111
Whitewater sports314-52
Recreational fishing611911108
Underwater sports910871112
Swimming27197121821
Other recreational324368
              Total recreational815954716376
Non-recreational
Immersion accidents413231233220
Road vehicles92414191224
Other transport11-12-
Commercial fishing4671033
Other commercial-2-2-5
Rescuing others4452-1
Suicides and homicides142419201013
Miscellaneous214114
              Total non-recreational759480786070
              Total drownings156153134149123146

General accident statistics

In 1993, accidents, poisonings and violence caused 6 percent of total deaths. In 1992 the figure was 7 percent.

Accidental falls. There were 232 deaths due to accidental falls in 1993. This is an accident area in which the total female mortality rate exceeds that for males; although there is an excess of male deaths over female deaths up to the ages of 74 years. At 75 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.

Accidents, poisoning and violence. In 1993 males accounted for 70 percent of all deaths from accidents, poisoning and violence. Males aged between 15 and 24 years recorded the most accidents for any particular age group, with motor vehicle accidents being the main cause.

Sites of non-transport accidents. Accidents occurring at home and in residential institutions (rest-homes, hospitals etc) accounted for 53 percent of all fatal non-transport accidents in 1993.

Table 8.31. DEATHS FROM EXTERNAL CAUSES*

Deaths from external causes199119921993
NumberRate per million populationNumberRate per million populationNumberRate per million population

* Registered during calendar year.

† Includes falls aboard ship and from horseback.

‡ Includes drowning from water transport.

Source: New Zealand Health Information Service.

Motor vehicle crashes681201.84656191.89617178.38
Other transport accidents†5917.495716.679527.47
Accidental poisoning319.19174.97236.65
Accidents falls20961.9522666.1123267.07
Accidents caused by machinery164.74185.27185.20
Accidents caused by fire and explosion of combustible material288.30329.363510.12
Accidents caused by firearms82.37102.9330.87
Accidental drowning and suffocation†11433.799527.799326.89
Suicide and self-inflicted injury474140.49493144.21443128.08
Homicide6619.568223.995114.74
All other external causes7722.8212536.5613037.58
      Total deaths from accidents, poisoning, or violence1,763522.541,811529.751,740503.05

Table 8.32. DEATHS FROM LEADING EXTERNAL CAUSES BY SEX AND AGE, 1993*

Age group (in years)Motor vehicle accidentsAccidental drowningsAccidental poisoningsAccidental falls
MFMFMFMF
Under 15261986-24-
15-24169591613-71
25-349131444154
35-4466228124102
45-542710313231
55-6410104---87
65-7423162--1128
75 and over2612--1-49111
              All ages4381794513131098134
Age group (in years)Suicide and self-inflicted injuryHomicideAll other causes of accidentsAll accidental poisonings and violence
MFMFMFMF

* Registered during calendar year.

Source: New Zealand Health Information Service.

Under 15214431147546
15-241101611448836489
25-3478273635622079
35-4455146249619651
45-5440146228411034
55-6422121-2557034
65-74276--1557936
75 and over154111819110147
              All ages349943219249671,224516

Table 8.33. SITES OF FATAL NON-TRANSPORT ACCIDENTS*

Place of occurrenceNumber of accidentsRate per million of mean population
199119921993199119921993

* Excludes surgical and medical misadventure, late effects of accidental injury.

Source: New Zealand Health Information Service.

Home (including home premises and vicinity and any non-institutional place of residence)171150157514445
Farm (including buildings and land under cultivation, but excluding farm and home premises)14185451
Mine and quarry23111-
Industrial places and premises161112533
Places for recreation and sport151410443
Street and highway495131
Public building (building used by the general public or a particular group of the public)111212343
Residential institution (homes, hospitals, etc.)606552181915
Other specified places888373262421
Place not specified719765212819
              Total452462392134135113

Deaths of pre-school children. In 1993, New Zealand's age-specific mortality rate for children aged one to four was 23.3 per 100,000. This shows a 2 percent increase since 1992 at which time the rate was 19.5 per 100,000.

Table 8.34. DEATHS OF PRE-SCHOOL CHILDREN FROM ACCIDENTS AND VIOLENCE, 1993

Causes of deathSexAge (in years)Total
1234
Source: New Zealand Health Information Service.
DrowningM4-116
 F23--5
Motor vehicle accidentsM66-315
 F-41510
HomicideM1-1-2
 F1--12
All other external causesM21-36
 F43-18
     Subtotal, male 1372729
     Subtotal, female 7101725
     Total 201731454
             Total, 1992 16119945

8.6 Civil defence and fire safety

Civil defence

The Ministry of Civil Defence: Te Manatu Arai Mate Whawhati Tata 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 events beyond the capability of regular emergency services. Communities have an obligation to take the steps necessary to prevent or reduce loss of life or distress by using their own resources and drawing on volunteers. 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 co-ordinates government planning. The ministry also provides financial support 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. The Civil Defence home page is: http://mocd.govt.nz.

A Civil Defence disaster exercise—“after the earthquake.”

Natural disaster insurance

The Earthquake Commission (formerly Earthquake & War Damage Commission) administers the Earthquake Commission Act 1993. This provides private property owners in New Zealand, who have purchased fire insurance, with insurance cover for damage to residential properties (dwelling, personal property and land) caused by:

  • Earthquake, natural landslip, volcanic eruption, hydrothermal activity or tsunami.

  • In the case of residential land, storm or flood.

  • Fire occasioned by or through or in consequence of any of these.

War damage has been removed as an insured peril.

The cover provided for residential properties is now replacement value to a maximum of $100,000 on dwellings and an additional $20,000 on personal property (exclusive of GST). Land cover is provided outside these limits. The commission is currently phasing out cover on non-residential property. By 31 December 1996 the commission will no longer insure nonresidential property. Premiums at the rate of 5 cents per $100 cover are collected by insurance companies and paid to the commission.

The Earthquake Commission is a Crown entity, controlled by provisions in the Public Finance Act 1989, and a body corporate with perpetual succession, a common seal and capital of $1.5 billion. It is responsible to the Minister of Finance who usually delegates responsibility to one of the Associate Ministers of Finance. 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 re-appointed.

Claims for the year ended 30 June 1995, totalled 3,903 earthquake claims ($1,411,408), 239 landslip claims ($3,590,872) and 876 land claims ($2,875,751).

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 government and the Secretary for Internal Affairs. The commission is also the National Rural Fire Authority set up under the Forest and Rural Fires Act 1977.

Organisation of fire fighting. There are three administrative regions, based in Auckland, Wellington and Christchurch. Their primary task is to co-ordinate operational units.

The fire regions are divided into fire areas, of which there are 11 in all. They are responsible for developing the fire-fighting 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 333.

Nineteen of the 333 fire districts are served mainly by permanent firefighters, augmented by more than 1,000 volunteers. The remaining 314 fire districts are staffed by volunteer firefighters who are an essential part of the New Zealand Fire Service. During 1995 there were 1,814 employees and 7,129 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 92 percent of the cost of maintaining the New Zealand Fire Service is met by the insurance industry through a levy on policies, with the remainder being met by government. For the year ended 30 June 1995 contributions from insurance companies totalled $156,729,000 while Government contributed $13,600,000. This compares with levies of $156,386,000 and a government contribution of $13,600,000 for the year ended 30 June 1994.

Fire safety. The Fire Service Act 1975 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.

Guy Fawkes fire in Wellington's Island Bay.

Table 8.35. INCIDENTS ATTENDED BY FIRE BRIGADES

Year ended 30 June19941995
Source: NZ Fire Service.
Fires
     Chimneys (no structural damage)1,3871203
     Derelict/demolished buildings and vehicles255279
     Grass/scrub/single trees etc4,4874,877
     Outside spill with ensuing fire173176
     Oven/stoves1,0441,101
     Rubbish4,7084,870
     Structures/buildings3,8443,538
     Television and home appliances294348
     Trees—including forests406501
     Vehicles2,4912,726
     Yard storage/standing crops366501
     Authorised/unauthorised burning1,7301,818
     Fire or explosion not classified above1,1761,530
              Total, fires22,36123,468
Hazardous substance emergencies
     Chemical emergency (no fire)113137
     LPG/CNG leak (no fire)226262
     Petrol/flammable liquid spill under 30L835792
     Spill or gas leak (no ignition)730654
              Total, hazardous substance emergencies1,9041,845
Other emergencies
     Animal rescue168207
     Assist police/emergency medical calls1,2411,502
     Extrication from vehicles, lifts etc.1,8651,839
     Hazardous condition standby807857
     Overpressure rupture with no combustion5149
     Person locked out/in146174
     Smoke odour removal176239
     Water evacuation (pump outs and floods)7391,024
     Special service call2,1483,632
              Total, other emergencies7,3419,523
False alarms
     Good intent/justifiable3,7194,045
     Deliberate1,5221,821
     Alarm equipment fault8,80110,401
     Not classified above397298
              Total, false alarms14,43916,565
              Total incidents attended46,04551,401

Fire statistics. Forty-three members of the public died as a result of fires during 1994-95, compared with 38 in 1993-94.

Fire insurance is described in section 24.3 Insurance and superannuation.

8.7 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 Accident Rehabilitation and Compensation Insurance Corporation (ACC) also plays a major role in the field (see section 8.5 Accidents).

Legislation. The predominant piece of occupational safety and health legislation is the Health and Safety in Employment Act 1992. Its principal object is the prevention of harm to employees while at work. It also contains three means of achieving this object:

  • The promotion of excellent health and safety management.

  • A requirement for people in industry to perform specific duties.

  • The making of regulations and approved codes of practice relating to specific hazards.

A major thrust of the act is that it sets out the responsibilities of employers, employees and others in all industries to manage the risks they face in their work on a day-to-day basis. It spells out primary responsibilities for all those involved with the workplace. Detail for ensuring safe and healthy conditions in specific industries or processes comes through either regulations made under the act, codes of practice approved by the Minister of Labour, or more detailed guidelines issued by the Department of Labour after consultation with industry.

Under the act, employers have the primary responsibility for ensuring the health and safety of their workers by:

  • Providing a safe and healthy working environment.

  • Implementing effective hazard identification and control methods.

  • Providing training and supervision of their employees.

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

Other parties also have responsibilities under the act. Employees, for example, are responsible for ensuring that through their work they do not endanger their own health and safety, or that of other people. People who control a place of work, are self-employed, or are the principal to a contract also have responsibilities to employees, the public and others under the act.

Occupational Safety and Health Service: Te Ratonga Oranga. This is one of five services to industry maintained by the Department of Labour. Its role is to minimise the economic and social cost of workplace illness and injury. This involves administering and enforcing the Health and Safety in Employment Act 1992, developing occupational safety and health policy and standards, and providing health services to industry.

The service has extensive direct involvement with industry. It employs inspection staff with specific industry experience, as well as medical, engineering, scientific and technical personnel to provide advisory services. In 1994-95 its 280 staff reported nearly 105,000 intervention activities in workplaces. Of these, approximately 55 percent of the total recorded activities related to the enforcement of legislation, while 45 percent comprised promotional and non-enforcement activities.

Funding for the service comes from a proportion of the levies charged by the Accident Rehabilitation and Compensation Insurance Corporation. Service expenditure was budgeted as $22.232 million for 1995-96. This was divided into three main programme areas: regulatory functions outside the Health and Safety in Employment Act, $2.200 million; promoting compliance with the Health and Safety in Employment Act, $18.492 million; and business and policy advice, $1.540 million.

OSH fieldworkers use a range of approaches and resources as they work with the management of individual companies to, firstly, build an awareness of the need to manage risk, and then help to build risk management systems into workplaces. An enterprise self-management programme for larger businesses has operated successfully for several years.

A high hazard workplaces programme sees workplaces with high hazard processes or activities visited regularly and their safety and health performance monitored. Another surveillance programme covers the inspection and assessment of businesses not part of the enterprise self-management or high hazard programmes.

A programme aimed at improving compliance in small businesses was introduced during 1995-96. The service investigates all workplace fatalities and works closely with emergency services, local authorities, and defence forces in the area of explosives and dangerous goods and other emergencies where public safety is threatened. OSH also surveys agents certifying the safety of hazardous equipment and audits places of work for compliance with the law.

OSH health and technical staff are responsible for the monitoring of international developments of relevance to New Zealand.

Occupational health. OSH maintains a Notifiable Occupational Disease System (NODS), with voluntary reporting of suspected cases by health professionals. OSH medical staff investigate all notifications of suspected occupational disease or illness, and this involved 1,919 cases in 1994-95.

Table 8.36. OCCUPATIONAL DISEASE NOTIFICATIONS

Disease categoryYear ended 30 June
1992-93*1993-941994-95

* March 1992-30 June 1993.

Source: Occupational Safety and Health.

Asbestos-related disease383103132
Occupational asthma396097
Other occupational respiratory disease71134
Occupational disease due to chemical exposure7189115
Chronic solvent-induced neurotoxicity389863
Occupational cancer113
Occupational illness due to infection284149
Occupational noise-induced hearing loss103216575
Occupational overuse syndrome/osteoarthritis25263760
              Total7069251,919

Contributors

  • 8.1 Ministry of Health; Health Research Council; Medical Council; Dental Council; Nursing Council; Chiropractic Board; Pharmaceutical Society.

  • 8.2 Ministry of Health; PHARMAC.

  • 8.3 Ministry of Health; Alcohol Advisory Council; Abortion Supervisory Committee.

  • 8.4 Ministry of Health.

  • 8.5 ACC; Land Transport Safety Authority; Water Safety Council.

  • 8.6 Ministry of Civil Defence; Earthquake Commission; New Zealand Fire Service Commission.

  • 8.7 OSH, Department of Labour.

Special articles

Health Research Council, Ministry of Health, New Zealand Aids Foundation, Children's Health Camps, Health Sponsorship Council, Water Safety Council, OSH.

Further information

Health

Alcohol and Pregnancy. Alcohol Advisory Council, 1995.

Alcohol Consumption in New Zealand. Alcohol Advisory Council (annual).

Annual Report and Statement of Accounts. Pharmaceutical Society of New Zealand.

Cancer Data. Health Statistical Services. Ministry of Health (annual).

Hospital and Selected Morbidity Data. New Zealand Health Information Services, Ministry of Health (annual).

Hospital Management Data. New Zealand Health Information Services, Ministry of Health (annual).

Maori and Alcohol. Te Puni Kokiri and the Alcohol Advisory Council, 1995.

Mental Health Data. New Zealand Health Information Services, Ministry of Health (annual).

Mortality and Demographic Data. New Zealand Health Information Services, Ministry of Health (annual).

The Public Health: Report of the Department of Health (Parl paper E10).

Progress on health outcome targets: The state of the public health in New Zealand. Public Health Commission, 1995.

Report of the Abortion Supervisory Committee (Parl paper E28).

Report of the Alcohol Advisory Council (Parl paper E26).

The role of alcohol in road crashes. Alcohol Advisory Council, 1995.

Safety

Accident Compensation: A Fairer Scheme, Department of Labour, 1991.

An Introduction to the Notifiable Occupational Disease System. Occupational Safety and Health Service, Department of Labour.

Key Statistics. Department of Statistics (monthly).

Motor Accidents in New Zealand. Land Transport Safety Authority (annual).

Report of the Accident Rehabilitation and Compensation Insurance Corporation (Parl paper E19).

Report of the Department of Labour (Parl paper G1).

Report of the Earthquake and War Damage Commission (Parl paper B11).

Report of the Ministry of Transport (Parl paper F5).

Report of the National Poisons and Hazardous Chemicals Information Centre. National Toxicology Group (annual).

Report of the New Zealand Fire Service Commission (Parl paper G8).

Chapter 9. Education

The entire roll of a rural school plus teacher.

9.1 Administration of education

Education agencies

Early Childhood Development Unit—Nga Kaitaunaki Kohungahunga. The ECDU is a government agency created to support the early childhood education of children 0 to 5 years of age. There are 10 offices throughout New Zealand with Pakeha, Maori and Pacific Island staff available to assist parents who have young children. Advice and support is given on an individual and group basis to assist people who are working in or setting up early childhood education centres. Seminars and workshops are also provided to assist people and organisations wanting information about early childhood education. Services provided include the following:

  • Support for the establishment of early childhood education services.

  • National information service on early childhood education.

  • Directory of early childhood education services.

  • Provision of early childhood education resources.

  • Promotion activities about early childhood education.

  • Operation of parent support projects.

  • Grants and advice and support to Pacific Island language groups.

  • Grants and advice and support to playgroups.

  • Professional development to licensed and chartered early childhood services.

  • Advice, support and resources for Pacific Island families through the Anau Ako Pasifika Project.

  • Family-friendly workplace seminars for staff in participating organisations.

  • Advice to government and non-government organisations on early childhood issues.

In addition the ECDU is the New Zealand national centre for Parents as First Teachers (PAFT) which is a programme offering support and guidance for parents of young children (0 to 3 years) to develop their parenting skills and knowledge about the education and health of their young children. The ECDU currently manages 20 programmes around the country.

Special Education Service—He Tohu Ūmanga Mātauranga. The Special Education Service is a Crown entity offering a New Zealand-wide service of advice, guidance and specialist support for the benefit of people with special educational and developmental needs. Services provided include the following:

  • Educational and developmental assessment.

  • Programming assistance for individuals, families, schools and early childhood centres.

  • Specialist educational therapies and teaching.

  • Specialist training programmes.

  • Placement advice and 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, practices and resources.

  • Initiatives for Maori (He Tokonga Whakaaro Maori).

  • Educational resources and software.

  • Advice, guidance and support

  • Behaviour management.

  • Counselling.

  • Systems support for schools and early childhood centres.

Staff of the service include advisers on deaf children, early intervention teachers and advisers, visiting teachers, speech language therapists, kai takawaenga, advisers on special needs, psychologists and education support workers.

The service is funded from a variety of government and non-government contracts and provides some services on a fee-for-service basis. The bulk of its income currently comes from a major contract with the Minister of Education for the provision of some specific services. The contracted number of hours in this contract are provided free of charge to individuals, schools and early childhood education centres and are provided equitably on a population basis across the country.

The Careers Service—Rapuara. The Careers Service is a careers advice and information service which helps people choose the work, education and training that suits them and which promotes the development of education programmes which will help meet their future needs.

A Crown entity, the Careers Service was established in July 1990. It is directly responsible to the Minister of Education who appoints a board to oversee its work. The Careers Service 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. Services include information and advice, curriculum support, facilitation of school-industry links, administration of the Link Programme and counselling. Being partly funded by the Crown, the document of accountability also allows the negotiation of contracts with other organisations, both public and private.

Education and Training Support Agency. This is an education Crown entity with a board appointed by the Minister of Education. The agency's purpose is to advance a range of training options for its customers, who include employers, industry training organisations, training providers and trainees. The agency is responsible for the following major training initiatives described in Chapter 14:

  • Skill New Zealand.

  • Training Opportunities Programme.

  • Skill Pathways.

  • Skill Enhancement.

Ministry of Education—Te Tāhuhu o te Mātauranga. The vision of the Ministry is ‘Building a world-class education system in a lifelong learning society’. The Ministry of Education is responsible for: providing policy advice to the Minister of Education on all aspects of education from early childhood to post-compulsory, including employment-related education and training, 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, colleges of education, and wananga 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 all education property owned by the Crown. It is responsible for developing national guidelines on all aspects of education, including national curriculum objectives. It also conducts research and collects 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—Mana Tohu Mātauranga o Aotearoa. The aim of the New Zealand Qualifications Authority is to promote improvement in the quality of education and training in New Zealand through the development and maintenance of a comprehensive, accessible and flexible National Qualifications Framework.

Its main functions are to:

  • Develop and maintain a comprehensive, flexible and accessible National Qualifications Framework.

  • Oversee the setting of standards for qualifications.

  • Ensure New Zealand qualifications are recognised overseas, and overseas qualifications are recognised in New Zealand.

  • Administer national examinations, both secondary and tertiary.

The Qualifications Authority is a Crown agency—an independent body which reports directly to the Minister of Education.

Education Review Office—Te Tari Arotake Mātauranga. The overall purpose of the Education Review Office (ERO) is to provide regular, independent, evaluative reports for the Minister of Education; the governing authorities and managers of schools, early childhood centres, and other education organisations; and parents and all those in the wider community with an interest in the performance of the education sector and the educational achievements of learners.

The services of ERO are:

Assurance audit reports of individual schools and early childhood centres. These provide high-quality information and reliable analysis of the quality of management of the education sector. Assurance audit reports inform and assist those concerned about the performance of educational institutions, in terms of their contractual undertakings (as specified in charters and legislation). In general, a school or early childhood centre will be audited by ERO every three to four years.

Effectiveness review reports of individual schools. These provide high-quality information and reliable analysis of the factors affecting student achievement. The reports inform and assist those concerned in identifying and responding to the factors which influence school students' achievements.

Education evaluation reports. These national assessments of aspects of the education system include management systems or structures, curricula content or delivery issues. They use information drawn from the assurance reports and effectiveness reviews carried out by the office. Education evaluation reports provide information about the performance of schools and early childhood services as a whole. Ten were published in 1994-95.

During the year ended June 1995 ERO made 1,625 visits to institutions, each visit resulting in a report. All ERO reports are available on request from the local area office, or from the corporate office in Wellington.

ERO is funded by the Crown, receiving $14.85 million in the year ended June 1995. It has around 160 staff members throughout the country, about 100 of whom are review officers. They work from seven area offices in Auckland, Hamilton, Napier, Wanganui, Wellington, Christchurch and Dunedin, and site offices in Whangarei, Rotorua and Nelson. ERO's 11 offices are linked by a PC-based network—the Internet email address is: nwright@netlink.co.nz.

ERO has a Maori unit which is responsible for issuing reports on Maori education in kohanga reo, kura kaupapa Maori, and Maori language in mainstream schools. A senior review officer for Pacific Islands education is based in Auckland. Reporting on students exempted from schooling (being homeschooled) is now undertaken on an exception basis.

Professional contact is maintained with local and overseas education organisations. During the year ERO hosts many international visitors interested in the way New Zealand manages its education system. An annual award allows review officers from New Zealand and the Northamptonshire Inspection and Advisory Service in England to work with review teams in each others' country for a few weeks.

Learning Media—Te Pou Taki Kōrero Whāiti. Learning Media Limited (LML) is a commercial publishing company that specialises in producing a wide range of quality print, audio, and video education resources for teachers and children. The functions carried out by Learning Media today go back as far as 1907, when the first issue of the School Journal was published.

LML as been a Crown-owned company since 1993. Most of its current work involves publishing under contract for the Ministry of Education, mainly:

  • Materials relating to the New Zealand Curriculum, including the actual curriculum statements and the supporting handbooks for teachers.

  • Well-known publications such as School Journal, Ready to Read series, and the Beginning School Mathematics programme.

  • Māori language materials, such as the reading series He Purapura, He Kohikohinga, Ngā Kōrero, Te Tautoko, and Te Wharekura, and the course Te Ata Hapara for teachers learning Maori.

  • Pacific Islands resources in Samoan, Tongan, Cook Islands Māori, Niuean, and Tokelauan, produced and distributed throughout New Zealand schools and the Pacific region.

  • The H.M. Ngata English-Māori Dictionary (runner up in the 1994 Montana Book Awards)

  • The New Zealand Education Gazette, the Ministry's national information periodical for teachers.

Learning Media provides publishing services for public and private sector clients wishing to target schools and early childhood centres. Recent clients include the Reserve Bank, Telecom NZ, and the Accident Compensation Corporation.

LML also develops and publishes its own titles. In 1995, it launched a major series, Reading Science, for sale to New Zealand primary schools and for export, specifically aimed at helping junior class teachers implement the New Zealand science curriculum.

The Ministry of Education pays for materials to be issued free to schools, or at a small charge. The public 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 choosing from publishers and bookshops. These include textbooks and library items. The work of Learning Media is complementary to that of commercial providers.

Teacher Registration Board—Te Poari Kairēhita Kaiako. This is a Crown entity, established under the 1989 Education Act. It maintains a register of teachers who fit the requirements of the act to be, of good character, fit to be a teacher, satisfactorily trained to teach and a satisfactory teacher in practice. There are 62,000 registered teachers. A practising certificate is valid for three years. The names of teachers who have their registration cancelled are circulated to teacher employers.

The board is funded 40 percent by government grant and 60 percent from practising certificate fees paid by teachers.

Teacher registration was compulsory until 1991. It is now voluntary, although a private member's bill introduced into Parliament in September 1995 looks likely to return it to being compulsory in 1996.

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 three to seven 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 designated management positions in schools and for the allocation of funds for the operational activities of the school.

Boards establish a charter, which sets out the aims and objectives of the school. All school charters include the National Education Guidelines which contain a statement of goals for education in New Zealand as well as curriculum and administrative requirements. When boards are developing their charter they are required to consult with their local communities, and include local goals and objectives which reflect the particular aspirations of the school and their communities.

Boards of trustees are accountable for meeting the objectives in their charter and for managing the funds they receive from the government to run the school. They are required to present an annual report and statement of service performance to their community and the Ministry of Education.

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.

College 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 Act 1989 and amendments. 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. Education Service Centres offer services such as administration of school transport, payroll, property, and other administration services to schools.

Other educational bodies

New Zealand Council for Educational Research—Te Rūnanga o Aotearoa mō te Whakawā i te Mātauranga. See separate article.

Maori Education Trust-Te Kaupapa Mātauranga mō te Iwi Māori. The purpose of the Māori Education Trust, as outlined in the Māori Education Foundation Act 1961, is to promote and encourage the better education of Māori, and to provide financial assistance for that purpose. These aims were reconfirmed in October 1993 when the Māori Education Foundation formally became the Māori Education Trust.

Dancing at Ngati Toa primary school, Titahi Bay.

Education expenditure and funding

Table 9.1. GOVERNMENT EXPENDITURE ON EDUCATION

Year ending 30 JuneEducation financial net expenditurePercent of GDP*Net government expenditurePercent of government expenditure

* Year ended 31 March.

†Estimated actual.

‡ Since 1994 the way expenditure is calculated has changed. Accruals are now included.

Source: Ministry of Education.

 $(million)percent$(million)percent
19914,4016.030,29914.5
19924,4676.129,17415.3
19934,5045.929,41815.3
1994†4,6545.829,37115.8
1994‡4,6275.729,63915.6
1995†4,81230,29815.9

EARLY CHILDHOOD EDUCATION, 1995

The trust administers and co-sponsors 25 scholarships, bursaries and grants for Māori attending secondary and tertiary courses both here and overseas. The sponsor parties include trusts set up by former prominent Maori and other individual New Zealanders as well as business and community organisations.

The trust co-sponsors, together with the New Zealand Post Primary Teachers Association, the national Maori speech competitions (Nga Manu Kōrero), for secondary school students. These competitions are unique in that they allow Maori students to participate in both the Maori and English languages. Taonga are awarded that give both the successful student and their school considerable mana. Non-Maori New Zealanders may participate in the Maori language section.

The trust was set up to assist all Maori regardless of age, gender, tribal affiliations or geographic location, and this is still its kaupapa. The trust was, and still is, supported financially by both the government of the day, and New Zealanders, Maori and non-Maori, who care about education.

More recently the trust has developed some pilot initiatives under a programme called Whakamana Whanau. These programmes are aimed at improving educational opportunities for Maori students in primary and secondary schools. Some of these programmes have included Te Reo Maori, Maths, Science, Co-operative Reading, Learning to learn and a Young Maori writers course. In 1993, $1,815,101 was distributed for Maori education and at 31 December 1993 the trust had net assets of $7,709,627.

Early childhood education funding. The funding formula for early childhood services varies according to the age of the children enrolled. The current funding rates for licensed and chartered services, except kindergartens, are $2.25 per hour per child for children aged two years or over, and $4.50 per hour per child for under two-year-olds. For kindergartens, the rate is $2.875 per hour per child.

From 1 March 1996 chartered and licensed early childhood services will be funded at a rate of $2.50 per hour per child over two years of age and $5.00 per hour per child under two years of age for up to six hours per day, up to 30 hours a week. Services have the choice of staying on the current funding rate, or moving to the new rate by meeting criteria which are higher than licensing requirements and are related to staff qualifications and staff-to-child ratios.

School funding. Compulsory schooling in New Zealand is funded by the government to varying degrees, depending on the type of school. Each state school is given a grant for operating costs and the board of trustees is responsible for making sure that the school is properly maintained. Expenditure is controlled by each school's board of trustees. The funding of capital works (building projects) is the responsibility of the Ministry of Education. 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 1993 a salaries grant for designated management positions has been paid directly to boards of trustees. In 1996 schools have the choice of Directly Resourced Salaries (DRS) or Central Delivery of their staffing entitlement. DRS provides boards of trustees with more opportunity to self-manage their schools.

Financial management of the schools is subject to review and audit by the Audit Office. Education management and attainment is reviewed by the Education Review Office.

All state schools are staffed and funded to deliver quality programmes to all their students. Supplementary funding is available on application for delivery of programmes to students with special needs, for innovative curriculum delivery in rural schools and for senior programmes in secondary schools.

Targeted Funding for Educational Achievement (TFEA) is designed to assist state schools with a significant proportion of students from backgrounds which are likely to cause extreme barriers to achievement. To decide how much extra funding to give to each school, the Ministry of Education gives each school a rating based on data from the Census of Population and Dwellings and from the school's own roll. Schools do not have to apply for TFEA funding. It is paid to them automatically.

Additional funding is also available to schools which run Maori immersion or Maori language programmes. The level of funding depends on the level of immersion of the programme.

Managing school property. The Ministry of Education has a Property Management Division which is responsible for the maintenance and development of around 2,300 state schools and their grounds nationwide with a total capital value of around $3.8 billion.

This includes the management of building projects and teacher and caretaker housing; and the sale of surplus property. An important focus of development projects at existing schools is on removing any possible dangers to the health and safety of students.

The Property Management Division also manages the insurance of school buildings, provides funding for school furniture and equipment in new buildings, manages loans for capital works at integrated and independent (private) schools, and makes sure schools follow building, health and safety laws.

Planning for the future means being ready to meet the needs of a population which is growing and changing rapidly. Primary and secondary school rolls are expected to increase by some 125,000 (17 percent) by the year 2005. Immigration to New Zealand will play a significant part in that growth.

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.

School boarding bursaries. Boarding assistance is available to school pupils who need to live away from home in order to receive their education. The value of school boarding bursary is $1,990. This is paid at the end of each school term.

School transport. School children in New Zealand who have to travel long distances to school in areas where there is no public transport may be entitled to use a school bus or get financial help for transport. Special education students also receive transport assistance, usually in the form of taxis.

Around 100,000 children use school buses each year. The bus operators are contracted to the Ministry of Education. About another 5,000 students receive transport allowances because they cannot use a school bus or need to travel a long distance to do so.

Approximately 2,150 school bus services carried students to and from school each day in 1995.

Tertiary education funding. As a result of reforms in the tertiary sector, 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, universities and wananga receive state subsidies for the number of equivalent full-time students in each of the course-cost categories at their institution. These funded places are provided by the government in advance of the funding year. The funding is inclusive of capital works.

The EFTS funding system has abolished detailed central decision-making about levels of staffing, operating grants, and capital works projects. These responsibilities now lie with the management of tertiary institutions themselves.

Improved accountability is required from all tertiary institutions under the EFTS funding system. Each institution must meet the requirements of the Public Finance Act 1989 and the Education Act 1989.

Study Right— the Study Right policy, introduced in 1992, is integrated 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.

Capital charge scheme—it was announced in the 1991 Budget that the government had agreed in principle to a capital charge scheme for tertiary education institutions. The objective of the scheme is to ensure that the cost of capital is reflected in the resource and pricing decisions of institutions. The government is still considering the details of the scheme's implementation.

Private training establishments—the EFTS funding system was expanded to provide state funding to subsidise certain programmes in private training establishments (PTEs) in 1993. The same levels of accountability as state tertiary institutions are expected. Funding for PTEs amounted to $7 million in 1995.

Other providers of tertiary education and training—all tertiary sectors are now funded according to the EFTS funding system. In addition to EFTS funding, a number of providers receive grants for activities that are not funded through the EFTS system.

For instance, the New Zealand School of Dance and the New Zealand Drama School are now funded through the Ministry of Education.

In the 1996 academic year, the university sector will receive a total of $658 million through the EFTS funding system. The polytechnics will receive $399 million, and the colleges of education will receive $59 million through the EFTS funding system. Two wananga will receive $4 million.

9.2 Early childhood, primary and secondary education

The term ‘early childhood education’ refers to the non-compulsory provision of education and care for young children and infants before they begin school. Early childhood education is available to children under six years old through a wide range of services, most of which are administered by voluntary agencies with government assistance.

The Education Act 1989 provides for free education in state primary and secondary schools between the ages of five and 19, and attendance is compulsory until the age of 16 years. In 1998 the school leaving age is rising to 17.

Primary school education is compulsory from six years of age. The vast majority of children usually starts formal schooling at the age of five. School entry is flexible throughout the year and children can be enrolled at any time after they turn five years of age. 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 schools are required to be open for at least 394 half days each year and secondary schools for at least 380 half days.

From 1996, the New Zealand school year will be divided into four terms. Previously, it had been divided into three terms. The change was made after pilot studies showed that students became less tired and were able to concentrate and work better when terms were shorter and holiday breaks more frequent.

Early childhood care and education

Many early childhood services in New Zealand have evolved from individual and community initiatives resulting in a diverse system of early childhood education, with a high degree of autonomy. The main providers of early childhood education are kindergartens, playcentres, Pacific Island language groups, childcare centres, home-based services and kohanga reo. Early childhood education programmes are, on the whole, developmental and based in learning through play.

Mobile kindergarten in Northland.

All early childhood centres wishing to receive government funding must be licensed and chartered. Licensing ensures that basic standards of quality are maintained. A charter sets out a centre's objectives and practices. Chartered groups receive funding direct from government in the form of a bulk grant.

Kindergartens. Kindergartens operate sessional early childhood education for children between the ages of three and five. In general, younger children attend afternoon sessions for three afternoons a week, while the older age group attend five mornings a week. Mobile kindergarten services are also available in some rural areas. All teachers in kindergartens are trained to diploma level. Parent participation is encouraged in the kindergarten programme.

Each kindergarten has its own parent committee, but the management responsibility lies with regional kindergarten associations. These are linked to one of two national associations, the New Zealand Free Kindergarten Association (Inc) or the Kindergarten Federation.

Playcentres. Playcentres are parent co-operatives where parents take responsibility for the management and supervision of sessions. Children attending playcentre range in age from birth to school age. A trained supervisor or a group of parent-supervisors take overall responsibility for the playcentre programme. All parents are required to help supervise sessions on a rostered basis. Playcentres are administered through parent management committees at local and regional levels, linked to a national organisation. Training and parent education programmes, which can lead to an early childhood qualification, are developed by the national playcentre body and implemented through centre-based programmes.

Te kohanga reo. Kohanga reo, which translates to ‘language nests’, are sessional or all-day Maori language immersion early childhood institutions. Their prime aim is the maintenance of the language of the indigenous people of New Zealand, the Maori.

The centres are community based and are administered by local management groups affiliated to the Te Kohanga Reo Trust. The trust receives government funding and allocates it to individual kohanga reo. The trust has delegated responsibility for developing and approving charters for kohanga reo, based on government guidelines.

Pacific Island language groups. Pacific Island language centres offer programmes based on the values and languages of Pacific Island cultures. The centres cover a range of nationalities: Samoan; Cook Islands Maori; Niuean; Tongan; Tokelauan; Tuvaluan, and Fijian. They range from informal family playgroups, meeting once or twice a week, to licensed and chartered centres. These programmes emphasise language development, both in Pacific Island languages and English, and increasing parental knowledge in early childhood care and education.

Anau Ako Pasifika— The Early Childhood Development Unit is the grant holder on behalf of the Bernard Van Leer Foundation for the Anau Ako Pasifika Project, a home-based programme in early childhood care and education for Pacific Island communities. It is based in Auckland, Tokoroa, and Wellington.

Childcare centres. Childcare centres provide sessional, all-day or flexible-hours early childhood eduction services other than playcentres, kindergartens or kohanga reo. Each centre is autonomous and many are privately owned. Some are administered by individuals; others by a committee, trust, firm or organisation. They may describe themselves as private kindergartens, creches, infant centres, playcentres, preschools, or by a name which indicates their particular philosophy or purpose. Some childcare centres have all trained staff, while others may have a mixture of trained and untrained personnel. A considerable proportion of childcare services is community-based with a high degree of parent involvement.

Home-based services (family daycare). Home-based care (family daycare) is an organised system whereby parents of young children or babies are linked to caregivers, who are often themselves parents of young children. Trained co-ordinators supervise the provision of the early childhood education and care, and provide regular playgroups or workshop meetings for parents and caregivers.

Community playgroups. Community playgroups are community-based, non-profit-making groups of parents who meet to provide early childhood education for their children. Funded community playgroups are exempt from licensing but must meet criteria set down by the Ministry of Education. The active participation of parents is required at all sessions.

Parents as First Teachers (PAFT). Parents as First Teachers is based on the programmes developed in the USA by the Missouri State Department of Education. They provide a series of regular home visits by early childhood educators to parents with children from birth to three years of age. They have been developed in the belief that parents are their children's first and most important teachers. By empowering parents they will become more confident in their parenting role and participate more effectively in the development and education of their children.

The core elements of the programme provide individualised support through a structured learning series on child development and how to foster early learning. Programmes are funded directly by the government and are offered in a range of different areas throughout New Zealand.

Compulsory schooling

Levels of schooling. Compulsory education in New Zealand is divided into primary, intermediate or middle, and secondary schooling.

Until 1995, students were classified as being in either juniors (for the first two years), standards (the next four years) or forms (two years at intermediate level and five years at secondary). From 1996, this is being replaced with a single system identifying levels according to the number of years of schooling.

A child who starts primary school for the first time between July (when the school roll is counted) and 31 December of a school year and is aged between five and six years (with most children beginning on their 5th birthday) will be classified in Year 0.

Children who begin attending school for the first time between 1 January and before the July roll count will be classified as being in Year 1.

After the first year, the year number (year of schooling) of students is increased by one at the start of every school year. It may sometimes be necessary to reset the number at the start of Year 7 (when they move to intermediate level) or Year 9 (when they start secondary school) so that their whereabouts in the system can be correctly identified.

If children start school for the first time after the age of six, they will be given the same year of schooling number as other children of the same age.

Primary schools are the first level of compulsory schooling. They cater for children from the age of five years (Year 0) to the end of their 6th year of schooling (Standard 4). Children in their 7th and 8th years of schooling (Forms 1 and 2) may either be in a separate intermediate school or part of a primary, secondary or composite/area school.

Secondary schools usually provide for students from Year 9 (Form 3) until the end of Year 13 (Form 7). Adult students who are returning to school adopt the year of schooling which corresponds to the level of the majority of the subjects they are taking.

Area schools which are usually based in rural areas, combine primary, intermediate and secondary schooling at one location.

Choices in schooling

While most students attend state funded schools, there are a number of other choices for parents and students.

State schools. These are co-educational at primary and intermediate level but some offer single-sex education at secondary level. Some offer special programmes for adult students or run community education classes. There are growing links with universities, polytechnics and other tertiary and early childhood education providers.

Integrated schools. These are schools which were previously private and have now been integrated into the state system. They follow the state curriculum requirements but incorporate their own special character (generally a philosophical or religious belief) into the school programme. Integrated schools receive the same government funding for each student as state schools but the buildings and land are privately owned so they meet the costs of property development and maintenance from attendance dues.

Kura kaupapa Maori (Maori medium schools). Kura kaupapa Maori are state schools where teaching is in the Maori language (te reo Maori) and is based on Maori culture and values. The curriculum is the same as at other state schools. Kura kaupapa were developed to build on the success of kohanga reo (Maori language early childhood centres) in preserving and increasing the use of te reo Maori and one of the key goals is to produce students who are competent in both Maori and English.

Learning chemistry in Maori at a marae-based high school.

Independent (or private) schools. Independent schools are governed by their own independent boards but are required to meet certain standards in order to be registered. Independent schools may be either co-educational or single-sex. They charge fees, but also receive some funding from the government (currently equivalent to around 14 percent of the average total cost of state schooling). In future, funding support will be based on the percentage of the average total cost. It will increase to around 25 percent by 1997. In 1998 support for senior students in years 11, 12 and 13 will rise to 40 percent.

Boarding schools. These may either be independent or part of a state funded school. Both systems charge boarding fees.

The Correspondence School. This is a national school with its own board of trustees which provides off-campus learning for students unable to attend a regular school—usually because of distance from their nearest school or for medical reasons or itinerancy and suspension from other schools. The school roll on 1 July 1994 was made up of 901 early childhood, 1,180 primary, 112 special education, 1,025 dual enrolments, 2,140 secondary full-time, 848 secondary part-time and 6.191 adults. The full-time teacher equivalent positions in March 1995 were 19 early childhood, 104 primary, 244 secondary. Secondary students may also enrol in specific subjects if these are not available at the school they are attending.

Lessons are provided from new entrants level to adults seeking continuing education. The Correspondence School also offers programmes in early childhood and adult education. Some services are provided on a fee-paying basis. The rapid development of educational technology over recent years has allowed the school to expand its range of delivery options. In 1995 the school has expanded its audio graphics capacity in order to meet growing demand. (Audio graphics allows a teacher to communicate with students through a computer screen and telephone line. Both student and teacher can “write” on their computer screen. This is a useful tool for teaching, especially for languages.)

During 1995, the school signed a major contract with the Ministry of Education to run a pilot series of interactive television broadcasts to schools. Using a combination of satellite and conventional broadcasting, lessons in Maori, Japanese, Spanish and Technology, aimed at students in Forms 1-4 will be received by 90 schools. Classroom teachers will build on the broadcasts through resources and activities provided by the school.

Development of a Japanese language teaching CD-Rom continues and a major technology upgrade is planned for the future. The school sees new technology as an opportunity of expanding its services both to its part-time students in face-to-face schools and to its full-time students and a platform for future new developments.

Home-based schooling. Parents who want to educate their children at home can do so provided they maintain a standard of education equivalent to that of a registered school. They need to get approval to do so from the Ministry of Education and are given an annual grant to help with the cost of learning materials. Home-schooling parents may purchase teaching services from The Correspondence School if they wish.

Home schooling is growing rapidly in New Zealand but still involves less than 1 percent of total school enrolments.

The curriculum

A programme of reform of the curriculum is currently underway. The New Zealand Curriculum Framework and national curriculum statements, will provide the basis for programmes in 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 range 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.

  • Be inclusive of all students.

  • Foster success and achievement for all students.

  • Enable students to become independent and lifelong learners.

  • Ensure that learning progresses coherently throughout schooling.

  • Recognise New Zealand's bicultural identity.

  • Reflect the multicultural nature of New Zealand society.

  • Be co-operatively designed.

  • 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 korero me nga reo; mathematics/pangarau; science/putaiao; technology/hangarau; social sciences/tikanga-a-iwi; the arts/nga toi; and health and physical well-being/hauora.

SIXTH FORM SUBJECTS
Percent of females and males enrolled

The Curriculum Framework sets out the essential skills to be developed by all students through the context of the essential learning areas. These skills are grouped under the following categories:

  • communication; numeracy; information; problem solving; self-management and competitive; social and co-operative; physical; and work and study.

The framework outlines the desirable attitudes and values which should form part of every student's learning.

The Curriculum Framework also outlines the policy for assessment at school and national levels. It 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 New Zealand curriculum. Such procedures will build on established classroom practices, and will draw on research and experience in New Zealand and overseas. Furthermore the Curriculum Framework outlines: assessment at key transition points of school, 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.

Curriculum statements.The New Zealand Curriculum Framework provides direction to the development of the more specific national curriculum statements. These supporting statements spell out in more detail the required learning described in the framework document. National curriculum statements, Mathematics in the New Zealand Curriculum, Science in the New Zealand Curriculum, and English in the New Zealand Curriculum have been distributed and are now mandatory in schools. The national curriculum statements: Technology in the New Zealand Curriculum; Chinese in the New Zealand Curriculum; Spanish in the New Zealand Curriculum were distributed to schools in the 1995 school year.

The curriculum statements for senior sciences (biology, chemistry and physics) have been published and distributed to schools. Draft curriculum statements in te reo Maori, pangarau (Maori Mathematics in the New Zealand Curriculum) and putaiao (Maori Science in the New Zealand Curriculum) were published and distributed to schools in the 1995 school year. Draft national curriculum statements in social studies were distributed to schools for comment during the 1995 school year.

Primary school curriculum. The New Zealand curriculum for primary and intermediate schools comprises national curriculum statements. English in the New Zealand Curriculum, Mathematics in the New Zealand Curriculum and Science in the New Zealand Curriculum and syllabus statements (including oral and written language, reading, spelling and handwriting), social studies, art, physical education, health education and music. At intermediate level (Forms 1 and 2), the curriculum includes workshop craft and home economics. These syllabuses will be progressively replaced by national curriculum statements.

Secondary school curriculum. The New Zealand curriculum for secondary schools comprises national curriculum statements in English in the New Zealand Curriculum, Mathematics in the New Zealand Curriculum and Science in the New Zealand Curriculum and a set of syllabus statements for, social studies, art, physical education, workshop craft, health education and music. These syllabuses will be progressively replaced by national curriculum statements. Students may also chose from a wide range of optional subjects, particularly at Year 11 (Form 5) to Year 13 (Form 7).

Assessment of students. The main purpose of assessing students' progress is to improve both learning and the quality of learning programmes. A student's strengths and the areas needing development are identified to provide information for the teachers developing and delivering the programmes, the student, and the parents.

The main information will come from ongoing school-based assessment. In addition, information will be obtained at key points in the education system, such as at school entry and the start of Year 7 (Form 1) and Year 9 (Form 3) which will help teachers and the government to target teaching and resources more effectively.

Schools are expected to report to parents on the progress of their students. Usually schools give written reports, and parents can also meet teachers to talk about their children. Parents are entitled to ask for a meeting with their child's teachers.

National educational standards will be monitored on a four year rolling cycle by assessing around three percent of eight and 12 year-olds. The four year cycle will cover all essential learning areas and essential skills in the New Zealand Curriculum.

National qualifications at secondary schools—Now and in the future

Under the present system, middle and senior secondary school students may take the following national examinations.

School Certificate. This examination is taken by most students at the end of three years of secondary education (5th Form or Year 11). Except for 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 student may enter the examination in any number of subjects up to six and is credited with a grade in each subject. There are five grades: A, B, C, D, and E.

SCHOOL QUALIFICATIONS
Highest attainment of secondary school leavers

Sixth Form Certificate. This certificate is awarded on a single-subject basis to 6th Form (Year 12) students who have satisfactorily completed a course of one year in one or more subjects. Most students take five or six subjects. All candidates must study a course of English, although, as with School Certificate, they do not have to sit it as a Sixth Form Certificate examination subject. Grades are awarded on a 1 to 9 scale, grade 1 being the highest. Candidates are assessed internally but grade allocations are moderated externally.

Higher School Certificate. Higher School Certificate is awarded to students who have satisfactorily completed five years of full-time secondary schooling beginning at Form 3. At least three subjects must be studied at a level above Sixth Form Certificate. It is a course completion qualification and grades or marks are not awarded.

University Entrance, Bursaries and Scholarships Examinations. University Entrance, Bursaries and Scholarships Examinations is the final school examination and is usually taken in Form 7 (Year 13). Both percentage marks and grades (A, B, C, D, and E) are awarded. Entrance to university is achieved by gaining Higher School Certificate and three C grades or better. An A Bursary is awarded if the total marks are between 250-299. Scholarships are awarded for high performance in individual subjects and there are also top scholar awards. Small cash payments are made to those gaining bursaries and scholarships.

National Qualifications Framework

Under the new system, which is being phased in over a period of four to five years, a new National Qualifications Framework will bring together senior secondary education, industry training, and tertiary education and training into one co-ordinated qualifications system.

The framework is a key part of the Skill New Zealand plan, a new co-ordinated approach to lifelong education and training which aims to raise the skill levels of New Zealanders.

The National Qualifications Framework is based on unit standards. Students are assessed against those standards. Courses of study will be designed to meet the requirements of the new standards.

By meeting these standards, students gain credits towards national qualifications which will be recognised anywhere in New Zealand and in many other countries.

This national standards-based system gives senior secondary students the freedom to continue their studies, and add to their credits, wherever they wish—at school, university, polytechnic, a private training organisation or even in the workplace.

Maths whiz medal winner in an international maths competition.

Table 9.2. 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 since 1991.

‡ From 1991 Pacific Island figures include candidates from Niue and Cook Islands only.

Source: New Zealand Qualifications Authority.

198860,84391.83,1084.72,3123.566,263
198960,99392.92,7984.31,8812.965,452
199061,31990.12,4433.64,3206.368,082
1991†65,75899.5....298‡0.566,081
199266,09799.6....2770.466,374
199364,48999.5....3490.564,838
199464,22399.6....2830.464,506

Table 9.3. NUMBER OF SUBJECTS TAKEN BY SIXTH FORM CERTIFICATE STUDENTS

YearNumber of subjects taken
7654321
Source: New Zealand Qualifications Authority.
 percentage of total
1989 18.745.211.66.96.511.1
1990 17.744.411.67.57.311.5
1991 17.142.212.38.18.112.2
1992 18.037.614.08.88.912.7
19930.118.834.814.98.98.813.6
19940.419.532.214.79.09.414.8

Table 9.4. ATTENDANCE OF SECONDARY SCHOOL LEAVERS, 1994

Years in attendanceNZ European/European/PakehaMaoriPacific IslandAsianOtherTotal by genderGrand total
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemale
Source: Ministry of Education.
One7370614724852711170138308
Two28919824519657301312946134401,053
Three2,3141,5701,3181,1222812831126331374,0563,0757,131
Four5,2734,5961,5741,64446248326117464567,6346,95314,587
Five10,88811,7341,6621,8377168941,0951,01116714914,52815,62530,153
Six9676553382641901391419423181,6591,1702,829
Total19,80418,8235,1985,1101,7301,8371,6271,35630127528,66027,40156,061

Each unit standard belongs to one of eight levels of qualification. Level 1 unit standards relate to entry level learning (broadly equivalent to Form 5/Year 11) and Level 8 relates to the most advanced learning.

Unit standards between Levels 1 and 4 of the National Qualifications Framework lead to a National Certificate.

Unit standards at Level 5 and above lead to a National Diploma or Degree.

The role of School Certificate and Bursary examinations within the new system has yet to be decided.

The Education Development Initiative (EDI)

The Education Development Initiative (EDI) policy was developed to help schools make the best use of their existing resources. It enables local communities to look at the way schooling is provided in their area. They can then make choices about any changes they want to recommend to improve educational opportunities for students.

Each EDI is unique and designed to meet local needs. All improvements are achieved by making better use of existing resources.

An EDI project will usually start when a school community decides to see what the programme can offer them. With the help of the Ministry of Education, the current education arrangements in the community are examined. Boards of trustees and communities then work with the ministry to decide on ideas for changes.

Any proposals are put to the community for comment. If the proposals are supported, a written agreement is drawn up setting out the agreed improvements and their benefits. This agreement and any other recommendations are then sent to the Minister of Education. If the changes are agreed to by the minister, they can be carried out.

Table 9.5. ATTAINMENT BY ETHNICITY OF SECONDARY SCHOOL LEAVERS, 1994

AttainmentNZ European/European/PakehaMaoriPacific IslandAsianOtherTotal by genderGrand total
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemale

* One or more subjects irrespective of grade awarded.

Source: Ministry of Education.

University Bursary4,2134,750203248899661052683655,1985,68510,883
Entrance qualification1,4791,657152214799315614321161,8872,1234,010
Higher School Cert2,0542,18741141724831422921231272,9733,1576,130
6th Form Certificate*5,6095,5701,2101,28045462533424170687,6777,78415,461
School Certificate*3,9202,8891,3151,2943773461408438395,7904,65210,442
No formal qualifications2,5291,7701,9071,65748336315815058605,1354,0009,135
Total19,80418,8235,1985,1101,7301,8371,6271,35630127528,66027,40156,061

Boards of trustees can decide at any stage whether or not they want to continue with the EDI process.

By the beginning of 1996, over 40 groups of schools had used it to improve the facilities in their communities—most commonly by amalgamating small schools in their area.

Establishments

Educational institutions.Table 9.6 sets out the number of educational institutions providing education in the preschool, 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 9.6. NUMBERS OF EDUCATIONAL INSTITUTIONS

Type of institution199319941995

* Early Childhood Development Unit.

†Includes restricted composite schools.

Source: Ministry of Education

Early childhood services
Kindergartens582587591
Playcentres577572562
Childcare—regular9431,0171,093
Childcare—casual273236
Childcare—home-based88100112
Te kohanga reo (including developing centres)809819774
ECDU* funded playgroups (including unlicensed playcentres)447441482
ECDU* funded Pacific Island language groups177183173
Correspondence School111
              Total early childhood services3,6503,7513,823
Primary schools
State primary2,1042,1062,102
State contributing 924921
State intermediate147147144
Private primary and intermediate787366
 2,3292,3262,312
Composite schools
State composite (area)†404548
Correspondence School111
Private schools424545
 839194
Secondary schools
State form 3-7241240239
State form 1-7585859
State form 3-7 (attached intermediate)202022
Private secondary201716
 399335336
Special schools
State special504949
Private special422
Other Vote: Education555
 595656
              Total number of schools2,8102,8082,798
Post compulsory institutions
Polytechnics252525
Colleges of education555
Universities777
Wananga..22
Private Training Establishments receiving government grants254058
Other Private Training Establishments1,2391,1851,103
              Total number of post compulsory institutions1,3011,2641,200

Nelson and Osaka girls' colleges sign a sister school contract and exchange gifts and students.

Table 9.7. STUDENT NUMBERS AS AT 1 JULY

Type of institution198319941995

* Playcentre figures for 1983 do not include children under two and a half. Preschool classes at primary school were disestablished at Jan 1993—for comparison purposes they are under licensed childcare.

Source: Ministry of Education

Early childhood services* (licensed and developing)
Correspondence School495802901
Home-based services..5,4146,114
Te kohanga reo (including developing centres)4,13213,54314,263
Playcentres16,17019,97919,108
Licensed childcare centres25,70749,68753,769
Kindergartens40,34046,60447,208
ECDU-funded playgroups-13,35314,330
ECDU-funded Pacific Island centres-3,9823,709
          Subtotal86,844153,364159,402
Schools
Primary education (J1-form 2)—
State primary (includes contributing)372,042345,033357,437
State intermediate77,73355,02954,576
State composite6,3487,4508,399
State forms 1-77,4217,1577,430
State forms 3-7 (attached intermediate)..2,2192,480
State correspondence1,3831,2201,180
Private schools10,67012,83013,259
          Subtotal475,597430,938444,761
Secondary education (form 3-7)—
State forms 3-7201,685181,249178,132
State composite2,9173,8503,928
State forms 1-713,94815,69816,144
State forms 3-7 (attached intermediate)7,5378,097
State correspondence8852,6692,988
Private schools10,63511,09211,181
          Subtotal230,070222,095220,470
Special education
State schools (attached classes)4,0494,026
State special schools6141,8161,804
Private special schools8148
Other Vote: Education special schools550173185
          Subtotal1,1646,1196,063
Foreign fee-paying students
State schools2,5033,492
Private schools386461
Ministry of Foreign Affairs and Trade Scholarship students
State schools334293
Private schools32
Adults in regular classes
State schools10,1749,351
Private schools..193
          Total schools706,831672,571684,896
Homeschooling..4,0744,882
Post-secondary
Polytechnics
Full-time7,95636,77040,685
Part-time67,48349,35853,704
          Subtotal75,43986,12894,389
Colleges of education
Full-time3,5046,2576,550
Part-time..6,2176,095
          Subtotal3,50412,47412,645
Universities
Full-time33,14462,23865,256
Part-time23,36940,84939,269
          Subtotal56,513103,087104,525
Wananga
Full-time-200441
Part-time-7968
          Subtotal-279509
Government-funded private training establishments
Full-time1,9862,396
Part-time114269
          Subtotal-21,002,665
          Total post compulsory135,456204,298214,503

Maori pupils. In July 1995 there were 40,032 Maori pupils receiving secondary education. This number comprised 19,294 male pupils and 20,138 female pupils. These figures, and further breakdowns (see tables 9.4 and 9.5), 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.

Table 9.8. EQUIVALENT FULL-TIME TEACHING POSITIONS

Type of institution199319941995

* Playcentre staffing is an estimate only for 1993.

Source: Ministry of Education.

Early childhood services—paid staff
Kindergartens1,6001,6391,681
Playcentres* (includes unpaid adults on duty)1,3771,3681,444
Childcare—regular and casual4,4974,9125,204
Childcare—home-based coordinators114144175
Te kohanga reo (including developing centres)2,717
Correspondence School171919
Primary schools
State (Area)19,30019,44419,529
Private430422459
Composite schools
State (Area)729774866
Private788810833
Secondary schools
State14,46314,27413,963
Private483494509
Special schools
State†563545537
Private151615
Correspondence School—
Primary and Secondary356356351
Tertiary institutions—academic staff
Polytechnics5,0114,8014,789
Colleges of education588571548
Universities4,0704,4114,692
Wananga..44

Teacher-pupil ratios. The ratios shown in table 9.9 have been calculated using the grading roll of a school divided by the staffing entitlement (measured in full-time teacher equivalents).

Table 9.9. TEACHER-PUPIL RATIOS AT STATE SCHOOLS

YearPrimaryCompositeSecondary
Overall ratio*Classroom ratioOverall ratio*Classroom ratioOverall ratio*Classroom ratio

* Includes all teaching staff, principals, special class teachers and resource teachers.

Source: Ministry of Education.

199119.7624.3913.6016.2615.7117.95
199219.7324.8714.1417.1216.1217.98
199320.3225.4714.1816.8615.9717.81
199420.3725.3413.8217.1015.9817.91
199520.6824.6314.1616.9915.6517.87

Projected student numbers. The table below gives actual 1 July rolls and projected rolls for 1996 to 1998.

Table 9.1. STUDENT NUMBERS (Medium series)

YearPrimarySecondary

* Projected (1993 base) as at 1 July (primary) and 1 March (secondary).

Source: Ministry of Education.

1991 416,084233,848
1992 417,401236,489
1993 423,510235,268
1994*actual430,938234,523
1995*actual444,761231,650
1996*projected460,300232,800
1997*projected475,600235,200
1998*projected487,900239,900

Special education

Special education services have been developed for children with disabilities, learning difficulties or behavioural difficulties who have been identified as needing alternative resources to those usually provided in regular education settings.

Parents of children with special education needs have the same rights to enrol their children at the school of their choice as other parents. It is against the law for any educational institution to treat a student differently (for example by denying or restricting access to any services) by reason of any disability. The Education Act 1989 gives the Secretary for Education the power to direct an enrolment at a particular facility if a student's special education needs cannot be met in the setting of first preference.

Whenever possible, if that is their parents' preference, children with physical or other disabilities are enrolled with other children in ordinary classes. If necessary, buildings are modified, special equipment is provided and extra staff are appointed to help teachers. Advisers help staff develop suitable teacher programmes.

This help is provided through funding from the Ministry of Education to boards of trustees and through the Special Education Service (SES), a separate government organisation which has its own board. The SES provides specialist advice, guidance and support for individuals, schools and early childhood centres.

Children with special education needs may be enrolled in a special school or in classes attached to a local school. These facilities increase the choices available to parents of children who require special education.

If a child's needs cannot be met within the ordinary school system, a number of other services are available.

Students needing long-term hospital care can do their schooling in hospital. Some hospitals have registered state schools while others may have classes on site which are administered by local schools.

Residential special schools provide teaching and live-in care for children with major learning, behavioural or emotional needs. Children with sight or hearing disabilities may attend mainstream schools and may also have the opportunity to attend specialist residential schools.

Health camps, which children in need of rest and recovery may attend for short periods, have both classroom and outdoor educational programmes.

International students

Overseas students who wish to study at a New Zealand school can get information about fees, courses of study and academic entry requirements from the New Zealand Government Office in a student's home country or by writing directly to the school they wish to attend.

A student visa is required for any course of study longer than 28 days. Academic entrance requirements and fees will be specified by individual schools. It may be possible to pay annual fees by instalment. International students are not entitled to student loans or student allowances.

Accommodation. Students applying from overseas need a written guarantee of suitable accommodation before a student visa can be granted. They must also be able to show that they have enough funds to support them during their stay in New Zealand.

Schools offering study places may have hostel or boarding accommodation on site or be able to make other arrangements for students.

Immigration. Information on immigration regulations and requirements can be obtained from New Zealand Government offices or the New Zealand Immigration Service which has offices in some main city centres in New Zealand.

Additional 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 is an incorporated society. Management committees are locally elected and appointed and will 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 1994, 14,499 children took part in the programme. Seventy-two percent of state schools (includes integrated schools) provide reading recovery. Twenty percent of six-year-olds were in a reading recovery programme. The 68 specialist teachers of reading are attached to schools throughout New Zealand and 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. Primary and secondary advisers are employed on a full or part-time basis by colleges of education in Auckland, Palmerston North, Wellington, Christchurch and Dunedin and the School of Education at the University of Waikato. They provide advice and guidance to schools and run professional development programmes 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 Guideline.

Both the Early Childhood Development Unit and the Special Education Service provide specialist assistance and advice.

Table 9.11. TEACHER TRAINEES AT 31 JULY 1993

Colleges of EducationPre-service teacher trainees
Early childhoodPrimarySecondarySpecialist
MFTotalMFTotalMFTotalMFTotal
Source: Ministry of Education.
Auckland105095193251,2091,53411524335866571
Univ. of Waikato5137142159591750501071575813
Palmerston North645946517757575232336521012
Wellington1027128119362681916395512125137
Christchurch617618214560074514619734341822
Dunedin4195199166569735103141   
     Total students411,7471,7881,1654,1705,3353696501,01929226255

9.3 Post-compulsory education and training

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, Waikato, 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 in 1991 amalgamated with the University of Waikato to form the School of Education, and others are considering amalgamation with a university.

Universities are controlled by their own councils, established under legislation drafted to maximise their autonomy consistent with the normal requirements of accountability for public funding. 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.

Table 9.12. ENROLMENTS AT UNIVERSITIES 31 JULY 1995

CourseMaleFemaleTotal
Source: Ministry of Education.
Postgraduate degrees, diplomas, certificates and other programmes—
Doctorate1,3839752,358
Masters3,6583,8017,459
Bachelors with honours1,1101,2022,312
Postgraduate diplomas3,7963,7387,534
Postgraduate certificate173313486
              Subtotal9,0078,68020,149
Undergraduate degrees, diplomas, certificates, and other programmes—
Bachelors degrees38,84145,76084,601
Undergraduate diplomas2,6752,8705,545
Undergraduate certificates493685
Institution-awarded certificates7431,4212,164
Other292302594
              Subtotal40,96546,97892,989
Adjustment for multiple enrolments3,7264,8878,613
              Total enrolments48,99455,531104,525

Student support

The Student Allowances Scheme 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, those with an earning spouse, and those married to another student.

Table 9.13. DEGREES AWARDED, 1993

ProgrammeDoctorateMastersBachelors honours (postgraduate)Diploma (postgraduate)Certificate (postgraduate)BachelorsDiploma (under-graduate)Certificate (undergraduate)TotalTotal
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemale    
Source: Ministry of Education.
General programmes153---10398--1---5197170198368 
Education2860140102253189--20978251195941894791,5252,004
Art, music and handcraft111120910828--77175-1-−106235341 
Humanities82471452611422724786--1,0332,030142236801,4992,7984,297
Religion and theology Social, behavioural and--1-2-32--3011710-432366 
communication skills466311312318514732722945329527254328541,286
Commercial and business7241316112072552318--1,7521,320163101--3,0071,9744,981
Law213419555899--226295-2--326383709
Natural and applied sciences3413215156154856038--871632--241,3369282,264
Mathematics411751432110--6057----11676192
Computing--115196487--134491531 22870298
Medical and health11827251011135171--32342215435195266991,225
Engineering12385122316277--55387--3-703125828
Architectural, town planning and resource planning--1612131359--20515452--244190434
Agriculture, forestry and fishing--1441489231--156871132845393163556
Transport and communication----------154-1-15520 
Service trades------810--95412--212748
Mass communication------918-------91827 
Sport and recreation--219661--6475261177114101215
Other courses nec-------1--------11 
     Total degrees174931,1149346066131,2711,1803275,9476,6384424832104269,76710,39320,160
Adjustments for multiple completions11111246595451--19519130373150368401769
     Total graduates173921,1039225605541,2171,1293275,7526,4474124461793769,3999,99219,391

Table 9.14. ASSISTED OVERSEAS STUDENTS AT NEW ZEALAND UNIVERSITIES

Form of assistance19931995

* Ministry of Foreign Affairs and Trade.

† Grandparented—overseas students enrolled prior to 1989 are treated the same as New Zealand students until their term of study is completed.

Source: Ministry of Education.

MFAT* Full scholarship416327
MFAT* Fees scholarship492185
Full-fee paying1,4503,178
Exchange scheme108122
Transition—grandparented†848
Postgraduate Research3239
Not stated53114
Treated as New Zealand student559589
              Total3,1944,562

BACHELOR DEGREES AWARDED
Percentage, 1995

Table 9.15. UNIVERSITY STAFF, JULY 1995*

DesignationFull-timePart-timeTotal
MaleFemaleMaleFemale

* Actual staff. Full-time equivalents for total part-time staff are: male, 470.7; female, 1,073.9.

Source: Ministry of Education.

Academic staff
Professor38130517469
Reader/Associate professor42541513520
Senior lecturer1,2452823971402,064
Lecturer8135331381161,600
Other teaching or combined teaching/research staff1842203854841,273
              Total academic staff3,0481,1061,0227505,926
Research only staff
Research only staff2521206270504
Other research support staff11019743182532
              Total research only staff3623171052521,036
Executive staff
Vice-Chancellor7---7
Senior Academic Managers3893-50
Senior Managers68153-86
              Total executive staff113246-143
Other staff
Technicians826346521271,351
Librarians and library assistants11233691268807
Student/Community services991563695386
General staff7051,7321507193,306
General services staff502127573231,009
              Total of other staff2,2442,6973861,5326,859
              Grand total5,7674,1441,5192,53413,964

TERTIARY ATTENDANCE, 1995

TERTIARY ENROLMENTS
Number of students

UNIVERSITY DEGREES
By subject areas, 1995

Table 9.16. UNIVERSITY STUDENTS

YearInternal studentsExternal studentsTotal
MalesFemalesMalesFemales
Source: Ministry of Education.
198829,18827,7425,9299,45472,313
198932,04430,8316,3889,96079,223
199032,86132,4335,5458,08078,919
199136,14836,2336,3039,28987,973
199237,77638,5446,71910,14393,182
199339,58341,1386,88110,23397,835
199440,90743,7277,49510,958103,087
199541,71044,7927,28410,739104,525

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 only one parent's income to be tested to determine entitlement to a targeted benefit.

  • The independent circumstances allowance, where the student can be considered independent of both parents and receive the maximum targeted allowance.

Single students receiving a targeted student allowance and living away from their parental home, some married students, and those receiving a ‘with dependents’ rate of allowance may also qualify for an accommodation benefit, if they are receiving a targeted student allowance.

Rates of allowances are changed annually and are 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 enquires relating to student allowances.

Student loans—the Student Loan Scheme was established in 1992 to assist students to participate in tertiary education. Under the scheme eligible students may receive a loan from the government to cover:

  • Fees—the compulsory fees which are payable by students at enrolment. Students enrolled at private training establishments can borrow up to $4,500 only for their compulsory fees.

  • 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. Part-time full-year and full-time part-year students can borrow a proportion of this. The amount is determined by the weighting of the course.

  • Living costs—a maximum amount of $4,500 a year (less any entitlement to student allowances). The living component is only available to full-time students undertaking an approved course or programme.

Loans on which interest will be charged are repayable through the Inland Revenue Department. The level of repayments is 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.

Table 9.17. STUDENT ALLOWANCE CLIENTS AT 31 JULY 1995

Allowance typeSecondary schoolsPolytechnicsColleges of education Universities WanangaPrivate institutionsTotal including Wananga
Source: Ministry of Education.
16-24 years old away from home2095,3561,14710,5445646217,774
16-24 years old at home5633,8284554,622273029,797
25+ away from home612,9305383,790493337,701
25+ at home1142276422239972
Accommodation benefit38811,4042,25618,1561341,18233,520
Couple allowance25,409748483771,436 
Students with dependants601,448250991202122,981
Independent circumstances471,2072371,91761023,516
Earning spouse away-781184-4177
Earning spouse at home181,0304699377702,531
              Total allowances1,38228,1125,51342,3113042,78380,405
Adjustment for more than one allowance38811,4042,25618,1561341,18233,520
              Total students99416,7083,25724,1551701,60146,885

Sight impaired students graduate.

MOST POPULAR UNIVERSITY PROGRAMMES, 1995

Polytechnics

Over recent decades vocational education and training has moved away from the secondary to the continuing education sector, with training formerly provided by technical high schools now provided for by polytechnics. Polytechnics provide a diverse range of academic, vocational and professional programmes and cover an increasing number of subjects at various levels of specialisation.

There are 25 polytechnics in New Zealand. They are Northland Polytechnic, Unitec-Institute of Technology, 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, The 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 one of New Zealand's largest education providers with 391 (176 FTEs) tutorial and academic staff and a total staff of 667 educating 23,164 students every year. Nearly 75 percent of these students are in paid employment and are studying part-time to enhance their career opportunities.

The Open Polytechnic was established in 1946 and is the only specialist provider of tertiary-level open or distance education offering nearly 200 courses and programmes ranging from certificate to degree level and beyond. Three faculties (Commerce, Human Sciences and Physical Sciences and Technology) are based at its Lower Hutt campus. Students can enrol for most Open Polytechnic courses at any time of the year.

For some years The Open Polytechnic has taken an active role as a member of the international education community, and its policy of internationalisation has seen it forge alliances with overseas partners such as the Open Learning Agency of Canada, The Open College, UK, and Informatics Holdings Ltd of Singapore. It continues to expand its relationships nationally and internationally through joint projects with universities, other tertiary institutions, and organisations such as the New Zealand Institute of Management.

The Open Polytechnic offers more than 600 courses and programmes ranging from National Certificate through to degree level from its three faculties based in Lower Hutt. It consults closely with industry to ensure that qualifications are directly related to the requirements of the workplace—now and in the future. All degrees are validated by the New Zealand Qualifications Authority.

The Open Polytechnic has a stand-alone consultancy service based on its expertise in the design and development of courses, training programmes and workplace assessment for industry. Innovation and excellence in education are seen in the core generic course content, staircasing of qualifications, fully standard-based assessment and extensive industry involvement. All students have one-to-one access to their tutors through the use of toll-free telephone lines.

Advanced Vocational Awards and Trades Certification 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.

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 9.18. TECHNICIAN, TRADE AND INDUSTRIAL PRACTICE CERTIFICATES ISSUED

Year ended JuneNZ DiplomaTechnicians certificates three-stageNZ certificates five-stage course finalTrade certificatesAdvanced trade certificatesIndustrial practiceTypingShorthandIndustrial practice
IntermediateBasic

* Includes typing and shorthand.

Source: NZ Qualifications Authority.

1988..3724552,8909801,6772,18960....
1989..3489053,1859434,536 5,202....
1990..755612,7831,0425,7314,528217....
1991161041,3722,507633......4,5215,150
19926526602,358608......4,556*5,254
19935284721,974417......4,8035,482

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 has also been organised regionally to meet local demands. Many full-time polytechnic students take a three-year full-time nursing course.

Colleges of Education

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 and Wanganui Community Polytechnic also offer teacher training.

Teacher training in early childhood education and Maori language is also offered by other tertiary providers.

The colleges of education, like the universities and the polytechnics, are controlled by their own councils, established under the legislation drafted to maximise their autonomy consistent with the normal requirements of accountability for public funding.

Teacher training

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.

Approximately 80 percent of primary teacher trainees 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.

POLYTECH ENROLMENTS
Percent in selected programmes 1995

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.

Continuing education for teachers. A wide range of professional education papers is offered to teachers, most of them intended to provide credits towards diploma qualifications and service increments for certified teachers.

Colleges of education offer a range of approved after-hours advanced study courses for teachers who wish to advance their professional qualifications.

The Professional and Community Education (PACE) programme at Massey University College of Education provides distance education courses to about 5,000 teachers, teacher aides, and other adults in teaching positions. It is a teaching department within the university, with a core of permanent professional tutorial and administrative staff. Other staff throughout New Zealand act as part-time tutors for these courses.

The Teachers Refresher Course Committee: Komiti Whakahauora Kaiako, started in 1944, is contracted to the Ministry of Education to offer 3-5 day residential courses during school vacations. About 1,000 teachers a year attend the courses in various centres, with travel assistance provided.

Wananga

Wananga (Maori tertiary institutions) are able to provide tertiary education and training, whilst assisting the application of knowledge regarding ahuatanga Maori (Maori tradition) in accordance with tikanga Maori (Maori custom). Two wananga have qualified for funding on the same basis as universities, polytechnics, and colleges of education with effect from 1994, and are governed in the same way as other tertiary institutions.

Private Training Establishments

There are large numbers of private training establishments (PTEs) in New Zealand, of which about 800 are registered with the New Zealand Qualifications Authority.

PTEs which enrol foreign students are required by law to be accredited by the New Zealand Qualifications Authority (NZQA) and to have course approvals for courses of more than three months' duration. The legislation provides protection for foreign students who pay tuition fees in advance.

PTEs offer a wide range of courses, often in niche markets. Despite their limited number of funded EFTS places, the PTEs operating in provincial towns offer improved access to tertiary education and training, rather than actual competition for the state tertiary institutions. In 1995, 58 PTEs received government funding.

Members of an adult study group from U3A—the university of the third age.

Table 9.19. ENROLMENTS AT POLYTECHNICS, 1995

CoursePost-graduate diplomasPost-graduate certificateBachelorsNational/NZ diplomaAdvanced diploma (institution awarded)Diploma (institution awarded)Introductory or Intermediate National certificateNational certificateAdvanced National certificateTrade certificate
Source: Ministry of Education.
General programmes----------
Literacy-------7--
Education29-31287-335-67--
Art, music and handcrafts---1,21447-1,571-501--
Humanities--311--131-9--
Social, behavioural and communication skills11-22738290574-845--
Commercial and business10552,5533,9801,35654111014,44675976
Law-------900--
Natural and applied sciences--690139572-33--
Mathematics-------178--
Computing23-198--77448--
Medical and health25-4,1094281092,300-38--
Industrial trades and crafts-----444271,245146,073
Engineering--170--694-91-335
Architectural, town planning, resource planning--222--195----
Agriculture, forestry and fishing---31-501-379-271
Home econ., maint., gard.-----10----
Transport and communication-------27--
Service trades---353-215-1,09829788
Mass communication--443-76-----
Sport and recreation-----272-69--
General pre-employment-----------
              Institution total193510,1685,1771,9267,93218119,9418027,543
CourseAdvanced Trade certificateNew Zealand certificateCertificate (institution awarded)FoundationBridgingEnablingLicenceCross-institution programmeCertificate of attendanceTotal
Source: Ministry of Education.
General programmes--1965057---50326
Literacy--25713717---96514
Education--1,01332-----1,794
Art, music and handcrafts--1,2312132----4,779
Humanities--2,298-209-385213,337
Social, behavioural and communication skills-446,4731564084--1308,912
Commercial and business1105365,238193413--329,884
Law--52------952
Natural and applied sciences-6724776567----2,184
Mathematics-94154------426
Computing-391,10274----1321,697
Medical and health--7054618---1157,893
Industrial trades and crafts7853684,6958844830--3414,647
Engineering104,32647823----916,218
Architectural, town planning, resource planning-957257------1,631
Agriculture, forestry and fishing-82,51537--16-593,817
Home econ., maint., gard-40-------50
Transport and communication-3667045--41--819
Service trades11-5,223247-15---7,979
Mass communication--41128-----958
Sport and recreation--1,0963-----1,470
General pre-employment--10211415----231
              Institution total9167,12034,6162,20331815157381,231100,518

Similar standards of accountability apply under legislation for private training establishments as apply for universities, polytechnics, and colleges of education, in respect of those courses that are in receipt of state funding.

Skill New Zealand. Skill New Zealand is a strategy designed to raise the skill levels of all New Zealanders. It revolves around two key components—the government's Industry Skills Training Strategy and elements of the new National Qualifications Framework. The Industry Skills Training Strategy is designed to:

  • Increase the number of skills and occupations covered by industry-wide training systems.

  • Broaden the range of people who have access to recognised training.

  • Make training more responsive to industry needs.

  • Link training to the National Qualifications Framework.

  • Build and foster a training culture throughout New Zealand.

The National Qualifications Framework is an integral part of post-compulsory education and training policies. It spans general, vocational and industry-based education and training across the post-compulsory sector. The framework made up of eight levels, with levels 1-4 comprising the new National Certificate and Levels 5-7 the new National Diploma. Initial degrees are at Level 7, and post-graduate degrees and diplomas at Level 8 of the Framework.

Continuing education

National Resource Centre for Adult Education and Community Learning. In 1990 the resource centre was established to: promote and assist the adult 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 projects; and accommodate national community learning organisations.

Community Learning Aotearoa New Zealand (CLANZ). This committee gives recommendations on the dispersal of grants to community groups for non-formal adult learning projects.

University Continuing Education. 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 continuing education 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.

School community education programme. School community education programmes provide educational opportunities for adults within the school community. The programme is developed by a programme co-ordinator with a sub-committee of the school board of trustees to meet the community's defined needs. Schools receive an allocation of tutor hours and associated staffing allowances. Fifteen percent of the allocated hours must be available for use by local community groups and all courses are required to fall under one of the following headings: adult basic education, training for volunteer community workers, parent education, personal development, or specific community need. Courses that do not fall under these categories can be offered on a self-funded basis.

Polytechnics also provide a range of community education courses and programmes for adults both on-campus and through outposts established to give students in smaller centres the opportunity of participating in some form of tertiary education.

Distance education. The main agencies in the field of distance education are The Correspondence School (with 20,057 students enrolled at 28 October 1995), the Centre for University Extramural Studies of Massey University with 17,059 students enrolled in 1995, and The Open Polytechnic of New Zealand with 32,889 students enrolled at 1 November 1995.

Organisations contributing to non-formal and continuing education. Many voluntary organisations make some provision for continuing education. For most of them, such as the New Zealand Playcentre 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.

Pacific Islands Education Plan (Ko e Ako 'a e Kakai Pasifika)

New Zealand has a significant and growing Pacific Island population with its own unique educational needs. The importance of meeting these needs is also growing, with Pacific Islands students showing lower levels of achievement than other students at senior secondary level.

For the first time a formal education plan is being developed specifically for Pacific Island education. Its name—Ko e Ako 'a e Kakai Pasifika—means “education is the key to unlocking the potential of the Pacific Island community to pursue its own self-betterment”.

A draft plan has been developed by the Ministry of Education in consultation with representatives from the various Pacific Islands communities. These include the Samoan, Cook Islands, Tongan, Niuean, Tokelauan and Fijian communities.

Areas to be considered for policy development include:

  • early childhood education, language groups and bilingual education;

  • students at risk of educational failure;

  • research projects to identify and evaluate the best programmes and education structures;

  • community languages policy and Pacific Islands curriculum statements;

  • participation in post-compulsory education and training;

  • resourcing; and

  • training, and keeping the services of, Pacific Islands teachers.

The plan will also look for ways to increase Pacific Islands representation on school boards of trustees and provide more support for parents and caregivers.

9.4 Maori education

Most Maori students remain within the mainstream education system. Increasing numbers are taking advantage of one of the most important developments in New Zealand education, the growth of Maori medium education. There is now a strong demand for Maori language education throughout the New Zealand education system.

This growth has been stimulated by the revival of te reo Maori (the Maori language). Language is at the centre of any culture and education system. The programmes developed to preserve their language have given Maori the opportunity to design the kind of education they want, and one that meets the needs of both adults and children.

The language revival began with the establishment of kohanga reo (Maori language early childhood centres) and continued with kura kaupapa (Maori medium schools). Growing numbers of Maori students are also enrolled in bilingual and Maori language immersion classes in mainstream schools.

However, research continues to show that educational achievement among Maori is still of concern. While Maori achievement has increased across the New Zealand education system in recent years, it has not kept pace with that of other groups.

The government is focusing on a number of important issues to promote and stimulate growth in Maori education. Development of Maori language immersion education is being pursued through three significant areas:

  • Support for the recovery of te reo Maori as a living language.

  • Greater participation by Maori parents in education.

  • The relative merits of mainstream education and alternative structures on addressing Maori educational needs.

Increased demand for Maori immersion education has progressed from the early childhood sector to the primary, secondary and tertiary sectors as a result of the increase in Maori language immersion programmes. The exploration of alternative educational achievement among Maori has occurred in an environment which encourages a diversity of educational provision. Alternative programmes are being looked at and trialed, and iwi (tribes) are being assisted to develop their own education plans.

Early childhood education

Since 1983 the number of Maori children enrolled in early childhood education has increased from 12,516 to 29,854. In 1995 Maori enrolments in early childhood education by 3 percent over 1994, as compared to 4 percent overall.

In nga kohanga reo the Maori language is the medium of learning and instruction. Kohanga reo are unique in that they are the only childhood education service in New Zealand where Maori make up the majority of the children and have grown rapidly since the early 1980s. They are now the single-most popular form of early childhood education for Maori families and in 1993, 46 percent of all Maori children in early childhood education were enrolled in kohanga reo. Kindergartens are currently the second largest providers of early childhood education to Maori children, catering for some 6,415 Maori children, followed by childcare centres (5,839), playcentres (1,692) and other funded playgroups (1,943), Correspondence School (128).

Kura Kaupapa Maori

Maori medium education in schools is rapidly expanding. In 1990 there were six officially designated kura kaupapa Maori (Maori medium schools) catering for 190 students, while in the beginning of 1995 there were 38, schooling 2,450 students. In 1995, 444 schools other than kura kaupapa Maori were offering some form of Maori medium education. These schools catered for 25,284 Maori students or almost 18 percent of total Maori enrolments.

Maori enrolments at the senior secondary school level have been steadily increasing over the last 10 years. A relatively high, and increasing, proportion of Maori are in their second year of form 5. Maori have also made up an increasing proportion of senior secondary school students in recent years, especially in Form 7. This increase may be due in part to both changes in the classification of Form 6 and Form 7 students and the raising of the school leaving age.

Tertiary education

In the tertiary sector during 1995, Maori were most likely to be enrolled in polytechnics, while non-Maori were most likely to be enrolled in university. A total of 21,089 Maori were enrolled in a formal programme of tertiary education. Maori made up 9.1 percent of university students, 10.3 percent of college of education students and 10.9 percent of all tertiary students. Where Maori were enrolled in university, they were more likely to be part-time. Maori were more likely to be full-time at colleges of education and polytechnics.

Two wananga (tertiary establishments) were established and state-funded in June 1993: Te Wananga o Aotearoa in Te Awamutu and Te Wananga o Raukawa in Otaki. Funding allocated to Ruakawa and Aotearoa totalled 473 equivalent full-time students for 1995. A third wananga, Te Wananga o Awanui in Whakatane is currently awaiting official recognition. There are in excess of 10 other Maori organisations wishing to explore the concept of wananga status in the future. Government and iwi will assess the future development and growth of wananga as a viable option for Maori participation in the tertiary sector.

Maori language education resources

The government supports targeting funds to increase teacher training in the Maori language to support the New Zealand Curriculum Framework in Maori and increase the supply of learning resources to meet the needs of Maori medium education. The government is also considering the impact of the Education for the 21 st Century goals on Maori education.

9.5 Plans for the future

The vision for New Zealand education in the future is of a system without barriers in which all courses of study will lead to national qualifications, regardless of the place of study. Such a system should encourage more students into tertiary education and training.

To achieve this, ten national education aims for the twenty-first century have been developed. The National Education Aims are:

  • A community of shared values.

  • A sound foundation in the early years for future learning and achievement.

  • High levels of achievement in essential learning areas and essential skills throughout the compulsory years of schooling.

  • Excellence in tertiary education, postgraduate study and research.

  • Attainment of qualifications to enable all to participate successfully in the changing technological and economic environment.

  • A highly skilled workforce at enterprise and industry levels to enhance New Zealand's international competitiveness.

  • Equality of educational opportunity for all to reach their potential and take their full place in society.

  • Success in learning for those with special needs.

  • Full participation and achievement by Maori in all areas of education.

  • Improvement in the effectiveness and efficiency of resource use in education.

Ministry of Education World Wide Web site addresses

The following information can be accessed on the Ministry of Education's World Wide Web home page:

  • Better Beginnings: Early Childhood Education in New Zealand

  • http://www.govt.nz/ps/min/edu/beginnings

  • Education for the 21 st Century

  • http://www.govt.nz/ps/min/edu/ed21

  • Nga Haeata Matauranga: Ministry of Education Annual Report 1993/94 and Strategic Direction for Maori Education

  • http://www.govt.nz/ps/min/edu/maori

  • Technology in the New Zealand Curriculum

  • http://www.govt.nz/ps/min/edu/tech

  • Ministry of Education Vision Statement

  • http://www.govt.nz/ps/min/edu

Contributors

  • 9.1 Ministry of Education; Early Childhood Development Unit, Special Education Service, The Careers Service-Rapuara; Education and Training Support Agency; New Zealand Qualifications Authority; Education Review Office; Learning Media Ltd, Teacher Registration Board, New Zealand Council for Educational Research; Teacher Registration Board; Maori Education Foundation; The Correspondence School, Open Polytechnic of New Zealand.

  • 9.2-9.5 Ministry of Education.

Special articles

Ministry of Education; New Zealand Council for Educational Research.

Further information

Annual Report of the New Zealand Council for Educational Research.

Education in New Zealand (Statistical Brochure), Ministry of Education (annual).

Education Statistics of New Zealand. Ministry of Education (annual).

Educational Research Series. New Zealand Council for Educational Research.

Maori in Education—Te Maori i Roto i Nga Mahi Whakaaranga, Ministry of Education, 1993.

Ministry of Education (1993), A Guide to The New Zealand Curriculum Framework. Wellington: Learning Media Limited.

Ministry of Education (1995), Annual Research Report 1994-1995. Wellington: Ministry of Education.

Ministry of Education (1995), Changing Directions, Roles and Responsibilities in Education. Wellington: Ministry of Education.

Ministry of Education (1995) Corporate Plan—The 1995/96 Year in Education. Wellington: Ministry of Education.

Ministry of Education (1994), Education for the 21st Century. Wellington: Learning Media Limited.

Ministry of Education (1995), Education in New Zealand. Wellington: Ministry of Education.

Ministry of Education (1995), Nga Haeata Matauranga: Annual Report on Maori Education 1994/95 and Strategic Direction for 1995/96. Wellington: Ministry of Education.

Ministry of Education (1993), The New Zealand Curriculum Framework: Te Anga Matauranga o Aotearoa. Wellington: Learning Media Limited.

Ministry of Education (1995), The Schools Support Project: Supporting Schools and Boards of Trustees in Self-Management. Wellington: Ministry of Education.

New Zealand Qualifications Authority (1992), A Qualifications Framework for New Zealand: An Introduction to the Framework. Wellington: New Zealand Qualifications Authority.

New Zealand Schools 1994—A Report on the Compulsory Schools Sector in New Zealand (Parl paper E2)

Report of the Ministry of Education (Parl paper E1)

Report of Education Review Office (Parl paper E39)

Report of Education and Training Support Agency (Parl paper E46)

Report of Career Development and Transition Education Service (Parl paper E27)

Report of New Zealand Qualifications Authority (Parl paper E44)

Report of the Maori Education Foundation (Parl paper E24)

Report of the Pacific Islands Polynesian Education Foundation (Parl paper E21)

Report of the Teacher Registration Board.

Secondary Staffing Survey. Research and Statistics Division, Ministry of Education (annual).

Tertiary Education Statistics, Ministry of Education, (annual).

Chapter 10. Justice and law

Law students prepare for the 1996 International Mooting Competition.

10.1 Legal system

New Zealand has inherited a tradition of an independent judiciary, seen as a protection against unnecessary intrusion by the state in the lives of citizens. The Judicature Act 1908 and the Constitution Act 1986 contain a number of constitutionally significant provisions, designed to ensure judicial independence. 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 or over 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.

In May 1995 the Solicitor-General reported to a Cabinet committee on matters relating to the availability of appeals to the Privy Council. The government has still to decide on whether or not to retain availability and, if abolition were favoured, the preferred appellate structure for New Zealand courts.

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 Act 1908.

The primary function of the Court of Appeal is to determine 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 also has 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 six 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 36 other judges, as prescribed by the Judicature Act 1908. An additional judge or judges may be appointed, by the Governor-General when it is deemed necessary due to the illness, absence or anticipated absence of any judge.

All the judges of the High Court are stationed in Wellington, Auckland, Hamilton, or Christchurch. The High Court travels on circuit to Whangarei, Rotorua, Gisborne, Napier, New Plymouth, Wanganui, Palmerston North, Blenheim, Nelson, Greymouth, Timaru, Dunedin and Invercargill. There are High Court offices at Masterton and Tauranga, but the court does not sit in those areas.

Commercial list—instead of being included in the normal order of cases to be heard in the High Court, a separate list of commercial cases is kept to ensure they are resolved quickly. The Judicature Amendment Act 1986 made provision for the establishment of this list at the office of the High Court at Auckland for an initial period of four years. The Governor-General may extend that period by notice in the New Zealand Gazette or declare that it continue indefinitely.

Masters—there may be up to six masters of the High Court with the legal qualifications and experience necessary for judicial appointment. Masters may exercise certain powers of the High Court concurrently with High Court judges. Masters deal inter-alia with applications for summary judgments, specified company and land transfer matters, the assessment of damages where liability has been determined, and trials where the amount of the debt or damages only is in dispute. There are at present four Masters: Master Anne Gambrill and Master T Kennedy-Grant (Auckland); Master J C A Thompson (Wellington); and Master G J Venning (Christchurch).

Table 10.1. JUDGES OF THE COURT OF APPEAL AND HIGH COURT*

* As at 1 May 1996.
Chief Justice:Rt Hon Sir Thomas Eichelbaum
Court of Appeal:Rt Hon Sir Ivor Richardson President; Rt Hon Justices T M Gault, I L
McKay, Hon Justices J S Henry, E W Thomas, Sir Kenneth Keith and P
Blanchard; Rt Hon Sir Thomas Eichelbaum ex officio.
High Court:Hon Justices Sir Ian Barker, J H Wallace, D L Tompkins, R G Gallen, R A
Heron, A A T Ellis, R P Smellie, R A McGechan, J A Doogue, A P C
Tipping, N C Anderson, J B Robertson, R L Fisher, D P Neazor, P G S
Penlington, P B Temm, R G Hammond, Dame Silvia Cartwright, D S
Morris, J W Hansen, J H Williams, Sian Elias, D Baragwanath, Lowell
Goddard, G K Panckhurst, L H Chisolm; P M Salmon; Rt Hon Sir Thomas
Eichelbaum ex officio.

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 110. 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 do not attract a maximum fine in excess 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 at present of the Chief Judge of the Employment Court and four 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.

Tea break. The Niue Court of Appeal, created in 1974, had its first sitting in Wellington in December 1995.

Broadly speaking, the Employment 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, mental health compulsory treatment applications, protection of personal property rights applications 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 Te Ture Whenua Maori Act 1993 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 Maori Appellate Court. Three or more of the judges have power to act as the Maori Appellate Court.

The Maori Land Court or the Maori 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 16.1, 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, eg, 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 54 part-time referees to service the 56 tribunals.

Complaints Review Tribunal. Formerly the Equal Opportunities Tribunal, this tribunal was set up under the Human Rights Commission Act 1977, and is continued under the Human Rights Act 1993. Its function is to deal with complaints of discrimination and breaches of privacy, which have not been settled by either the Human Rights Commission, the Race Relations Conciliator or the Privacy Commission.

The tribunal has powers similar to a District Court. It hears the complaint from the beginning and makes a decision. It can award damages and order other remedies. Each sitting of the tribunal is chaired by a barrister or solicitor with two other appointees with experience in the area.

Residential Tenancies Tribunals. These were set up under the Residential Tenancies Act 1986 to determine all disputes arising between landlords and tenants, to which the act applies. They are set up on similar lines to disputes tribunals—the hearings take place at District Court premises under the authority of part-time adjudicators. See also section 22.1, Housing.

Waitangi Tribunal. This tribunal was set up under the Treaty of Waitangi Act 1975 to consider claims by the Maori people under the Treaty of Waitangi. It was originally set up to consider only claims from 1975 onwards but its jurisdiction was extended in 1985 to claims dating back to 1840. See also section 6.4, Maori population.

Planning Tribunal. This tribunal is constituted 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 on resource consent applications and references on local authorities' plans under the Resource Management Act. It also makes recommendations on water conservation order applications. 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. 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 extra-territorial 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 Habeas 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.

Law Commission

The Law Commission: Te Aka Matua o te Ture is an independent, publicly-funded, central advisory body established by the Law Commission Act 1985 to undertake the systematic review, reform and development of the law of New Zealand. It is funded through Vote: Justice, has a membership of five commissioners, and maintains a staff of approximately 15 legal researchers and a director. It has a substantial, fully-staffed law library.

The purpose of the Law Commission is to help achieve law that is just, principled, and accessible, and that reflects the heritage and aspirations of the peoples of New Zealand. In developing its proposals, the commission recognises the Treaty of Waitangi as the founding document of New Zealand, and takes account of community and international experience.

The commission may initiate projects or be given references by the Minister of Justice. In making its recommendations the commission is required to take into account te ao Maori and to give consideration to the multicultural character of New Zealand society. It consults widely when developing its proposals for reform and generally publishes discussion papers inviting responses before formulating final recommendations. In all its work, the commission must have regard to the desirability of simplifying the expression and content of the law.

The commission currently has projects covering five major areas. The first is the reference from the Minister of Justice requiring a review of criminal procedure. Aspects of criminal procedure currently being considered under the reference are the system of prosecution, diversion, the jury system, and the privilege against self-incrimination. The second major project area, also covered by a reference from the Minister of Justice, is a review of the law of evidence with a view to its codification. The third area is a review of the law of succession, including the law relating to wills and testamentary claims and the impact of succession laws on Maori families. The fourth concerns women's access to justice, examining the response of the legal system to the experiences of women in New Zealand, recognising the importance of the Treaty of Waitangi in the examination of Maori women's experiences. The fifth area is in the respect of public law, and involves a group of projects on the legal position of the Crown, aspects of the Official information Act 1982 (both Ministerial references), and the production of a legislation manual and a guide to international legal materials.

The commission also has a statutory power to advise on the review of any aspect of the law conducted by government departments or other public sector entities. The volume of this advisory work has grown significantly in recent years, and is an important way in which the commission can assist in achieving clear and accessible law. One aspect of this function is assistance provided to the Legislation Advisory Committee, an independent committee appointed by the Minister of Justice to advise on legislative issues and individual items of legislation.

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.

Members of the jury at a Dunedin murder trial take a break on the beach.

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 debt, demand, or damage, or value of the chattels claimed, is no more than $200,000. The jurisdiction was increased from $50,000 to $200,000 by an amendment to the District Courts Act 1947 on 1 July 1992. In proceedings for recovery of land the courts have jurisdiction if the rent payable (if any) does not exceed $62,500 a year or where the value of the land does not exceed $500,000.

The District Court Rules 1992 also came into force on 1 July 1992. They are not merely a revision of the 1948 rules, but a new set of rules designed to bring procedures in the District Court into line with those in the High Court. The rules apply to all matters within the civil jurisdiction of the District Court, except where other rules provide procedures for any class of litigation.

Jury service

Every person between the ages of 20 and 65 years (inclusive) is eligible for jury service, subject to some exceptions. Those involved in justice-related occupations cannot serve. A person may be excused if jury service would cause serious inconvenience or hardship. Also precluded are people with recent prison records and those who have been imprisoned for more than three years.

Legal aid

The Legal Services Act 1991 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 and establishes the Legal Services Board and District Legal Services Committees. The board is responsible for administering 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 over 20 such offices nationally, of which 15 are funded by the Legal Services Board. 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.

Crown Law Office

The Crown Law Office is a government department providing legal advice and representation to government in matters affecting the Crown, and in particular, government departments. It has two primary aims. First, to ensure that the operations of executive government are conducted lawfully and second, to ensure that the government is not prevented, through the legal process, from lawfully implementing its chosen policies. The work of the Crown Law Office as a whole contributes to the government's current strategic goals of protecting the legal interests and supporting the responsibilities of the executive government and its agencies, maintaining law and order, and serving the interests of justice in the community.

The Solicitor-General is the chief legal advisor to the government (subject to any views expressed by the Attorney-General), and is its chief advocate in the courts. In addition the Solicitor-General is chief executive of the Crown Law Office and responsible for the conduct of prosecution of indictable crime. The office of the Solicitor-General is entrusted by statute with specific rights, duties and functions and is also responsible for performing most of the statutory and ex-officio duties of the Attorney-General.

The Crown Law Office is organised into eight teams: Commercial, Commercial Regulatory, Criminal and Crown Solicitors, Employment Education and Welfare, Land and Resource Management, Law Officer Functions, Taxation and Public Finance and Treaty Issues and International Law. Each team is staffed by Crown Counsel, Assistant Crown Counsel and support personnel. The office participates in an annual Summer Clerk programme which provides law students with an opportunity to gain first-hand experience of issues dealt with in the office.

Reporting to the office is a network of Crown Solicitors located in main centres around New Zealand. Crown Solicitors are private legal practitioners appointed on the recommendation of the Attorney-General, and by warrant of the Governor-General, to conduct indictable trials on behalf of the Crown in all High Court districts. The Crown Solicitors Regulations 1994 give the basis for their remuneration.

During 1995, the Crown Law Office was involved in an appeal to the International Court of Justice in respect of French nuclear testing, civil litigation over Equiticorp, the conclusion of the West Coast Forests contract claim and a number of tribunal hearings on Treaty-related matters. Crown Counsel appear regularly for the Crown in Court of Appeal and Privy Council hearings.

10.2 Criminal justice

In New Zealand the more serious crimes are defined by the Crimes Act 1961. 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, and offences against the person and property—such as common assault, wilful damage, and loitering and trespass.

A recent amendment to the Crimes Act has created new offences in the following areas:

Sexual conduct with children in other countries. It is now unlawful for a New Zealand citizen or resident to have sexual relations with a child while abroad. This effectively means that children in other countries are accorded the same status and protection under New Zealand law as exists for children in New Zealand. Persons convicted under these provisions are subject to the same maximum penalties as would apply if the offence had taken place in New Zealand. A second new offence makes it unlawful to assist other people to travel overseas for the purpose of having sex with children, or to promote sex tours.

Female genital mutilation. Offences have been created which prohibit the practice of female genital mutilation, with appropriate exemptions for proper medical procedures performed for the benefit of the person's health. It is an offence to take a child out of New Zealand for the purposes of a genital mutilation procedure, or to arrange for this to be done.

Money laundering. The creation of a money laundering offence gives effect to New Zealand's commitments as a member of the Financial Action Task Force on Money Laundering. The offence covers any dealing with the proceeds of a serious offence which is designed to convert the property from one form to another. It includes laundering in New Zealand of the proceeds of foreign crimes. Both the principal offender (the person who committed the offence which generated the proceeds) and the helper can be convicted of money laundering.

Theft from a spouse. Previous Crimes Act provisions prohibiting conviction for theft from a spouse have been repealed. This means that a spouse may be convicted of theft in respect of the other spouse's property on the same terms as any other person.

Friday night in Wellington's Manners Mall.

Reported crime

A total of 503,558 offences was reported to the New Zealand Police for the year ended 30 June 1995, an increase of 2.4 percent from the previous year. This compared with a decrease in reported offences of 3.2 percent for the June year 1994 and a 2.3 percent increase for the June year 1993. The overall clearance rate for all reported offences was 42.9 percent in 1995 compared with 43.1 percent in 1994. The number of reported violent offences increased from 41,830 for the year ended 30 June 1994 to 46,089 (a 10.2 percent increase) at the same time in 1995. This compares with a 26.3 percent increase between 1993 and 1994 June years. The clearance rate for reported offences was comparable across years with 81.8 percent of violent crime cleared in 1994 and 80.9 percent cleared at the same point in 1995.

During the year ended 30 June 1995 a total of 125 homicides (including murder, attempted murder, manslaughter and infanticide) was reported to the NZ Police. This compares with 149 in the same period in 1994, a decrease of 16.1 percent. Within this group reported murders decreased 27 percent, with 51 reported for the June 1995 year compared to 70 at the same point in 1994. The total number of robberies reported was 1,887, an increase of 5.4 percent over the previous year. Aggravated robbery increased by 10.9 percent, from 951 reported offences for the year ended 30 June 1994 to 1,055 for the same period in 1995. Non-aggravated robbery increased slightly (1.1 percent) with 687 offences reported for the June year 1995 compared with 679 at the same time in 1994.

There were 1,203 reported sexual violation offences for the year ended 30 June 1995 (a 0.2 percent decrease from the number reported in 1994) with 70.8 percent cleared. The number of reported sexual attack offences decreased by 3.5 percent, with 2,955 reported offences for the year ended 30 June 1995 compared to 3,063 for the same period in 1994. Furthermore, the total number of reported sexual offences decreased (4.8 percent), with 4,623 reported in 1994 and 4,400 in 1995. Of all these reported offences 64.7 percent were cleared.

For the year ended 30 June 1995 there were 1,657 reported non-cannabis drug offences, up 10.1 percent on the previous year. However, clearance rates increased from 90.7 percent in 1994 to 94.5 percent for the same period in 1995. Reported cannabis offences decreased by 16.6 percent with 21,476 reported for the year ended 30 June 1995. Of these a total of 13,158 were prosecuted (this includes offenders apprehended and prosecuted in the youth court).

In total, reported drug and antisocial offences decreased by 2.6 percent from 60,995 offences reported for the year ended 30 June 1994 to 59,410 for the same time period in 1995. The rate of clearance increased from 88.9 percent to 90.3 percent for the June year 1995.

Reported dishonesty offences increased by 1.5 percent, from 308,500 for the June year 1994 to 313,203 for the same period in 1995. As in the previous year, this offence class accounted for the major proportion of all reported non-traffic offences, 62.2 percent. Within this group, both reported burglary and reported receiving offences decreased, by 1.6 percent and 9.2 percent respectively, compared to the same time period in 1994. Vehicle taking and interference increased by 1.1 percent from 52,140 to 52,702, theft increased by 1.5 percent from 139,341 to 141,453 and fraud increased by 13.8 percent from 27,216 to 30,970 reported offences.

Of the 29 Police Districts, 10 reported a decrease in the number of reported non-traffic offences during the year ended 30 June 1995.

Children and young persons (i.e. those under 17 years of age) comprised 22.8 percent of all offenders apprehended for the year ended 30 June 1995. Furthermore, 46.4 percent of apprehended offenders were under 21 years of age. Of all those apprehended 80.5 percent were male and 19.5 percent were female. In the offence category of dishonesty, 34.7 percent of apprehended offenders were children, with 57.8 percent under the age of 21 years.

Criminal proceedings

The majority of indictable offences may be tried summarily by a District Court judge. Most crimes against property and all but the most grave of other crimes, such as treason, homicide, sexual violation, and perjury, may be dealt with in this way. A District Court judge may, however, decline to deal with an offence summarily. 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.

Some District Court judges are warranted to preside over jury trials. Jury trials in District Courts currently take place in 20 centres. Except for the most serious indictable offences, which have to be heard in the High Court, most offences requiring a jury trial can be heard in a District 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 jury trials. If it allows an appeal, the Court of Appeal may quash the conviction, vary the sentence, or order the case to be retried.

Convictions for all offences except traffic offences

The total number of prosecutions for non-traffic offences has increased significantly in each of the last three years, with the 1994 figure being the highest recorded in the nine year period for which data were available. An increase in offending reported to the police for many offences in recent years, and increased clearance rates by the Police for most major non-traffic offence types in the last two years, may have contributed to the greater number of prosecutions in 1993 and 1994. Convictions have also increased strongly in number in recent years.

The proportion of prosecutions resulting in a formally recorded verdict of the court that the charge was proved has been lower since 1990. This trend was influenced by both an increased use of diversion by the police from the late 1980s, and the introduction of the Children, Young Persons, and Their Families Act 1989 which emphasised diversion from the court process for young offenders. Consequently, the higher number of “not proved” verdicts in recent years does not mean that there has been an increase of prosecutions where the charge could not be proved. Diverted cases do not result in a formally proved verdict, but a necessary condition of diversion is that the offender admits guilt. Also, some “not proved” cases will have involved young offenders who were brought to court, then referred to a family group conference where the matter was resolved. There may have been an admission of guilt at or before the family group conference in these cases.

The average seriousness of the offences resulting in conviction in the 1990s is considerably higher than for offences in the mid 1980s, but there has been little change in the average seriousness of offences resulting in conviction in recent years.

Table 10.2. CONVICTIONS FOR ALL OFFENCES EXCEPT TRAFFIC OFFENCES

Offence type19851988199219931994
Violent7,6279,54810,68013,15916,003
Other against persons2,9213,4642,6852,9773249
Against property50,22352,19957,37957,50057,736
Involving drugs10,94312,89611,44013,26514,220
Against justice5,2677,58811,08012,28513,065
Against good order7,9068,3336,2467,4488,374
Miscellaneous23,98018,56113,87519,99519,254
              Total108,867112,589113,385126,629131,901

CONVICTIONS, NON-TRAFFIC OFFENCES
By type of offence

A new woman judge appointed to sit in the Wellington District Court.

The total number of convictions for violent offences in 1994 (16,003) was considerably higher than the number in any other year in the past decade. Convictions for violent offences accounted for 12 percent of convictions for non-traffic offences in 1994, compared to 7 percent in 1985.

Table 10.3. CONVICTIONS FOR VIOLENT OFFENCES

Offence type19851988199219931994

*Includes convictions for manslaughter which involved the use of a motor vehicle.

† Before 1986 the figures shown for the category attempted sexual violation relate to the offence of attempted rape.

‡ A person committing burglary or breaking and entering who carries, or uses, a weapon may be charged with aggravated burglary.

§ Includes both robbery and assault with intent to rob.

¶ Offences under Section 194(b) of the Crimes Act 1961.

|| Threaten to kill or do grievous bodily harm.

Murder1524452531
Manslaughter*2320423826
Attempted murder51012713
Kidnapping or abduction4149597388
Rape9482149242263
Unlawful sexual connection-111341423382
Attempted sexual violation†3740558674
Indecent assault3174689341,1061,179
Aggravated burglary‡-70675274
Aggravated robbery249291402436442
Robbery§159162143156162
Injuring or wounding176286354312458
Aggravated assault5537127138961,043
Male assaults female¶5911,2841,9032,9474,171
Other assault5,1825,6184,9735,8276,972
Threaten to kill or do GBH||134242368412523
Other violence5179120121102
              Total7,6279,54810,68013,15916,003

There was a considerable increase in the number of convictions for violent sex offences over the ten-year period under examination. Overall, convictions for such offences more than tripled in number from 448 to 1,898. The number of convictions for rape and indecent assault were higher in 1994 than in any previous year in the last decade. Three-quarters of the convictions for a violent sex offence in 1994 involved a victim aged 16 years or less. It should be noted that over a third of the convictions for such offences in 1994 related to offences which occurred prior to 1990. The data indicate that 192 of the convictions in 1994 related to offences which occurred in the 1960s or 1970s. The large increase in the number of convictions for violent sex offences over the last decade may be due not only to an increase in the occurrence of these offences, but also to an increased likelihood of such offences being reported, including offences which occurred many years ago.

The total number of convictions for non-sexual assaults of various types has nearly doubled since 1985. Much of this increase has occurred in the category “male assaults female”. The majority of these assaults are domestic-related. The large increase in convictions for “male assaults female” in recent years is partly a reflection of a change in police practice towards arrest and prosecution of the offender when attending domestic incidents. The number of convictions for injuring or wounding, aggravated assault, and “other” assault (mainly common assault) were higher in 1994 than in any other year in the last decade. Convictions for threatening to kill or do grievous bodily harm have nearly quadrupled over the ten-year period under examination. The number of convictions for aggravated robbery has been considerably higher in the last three years compared to earlier years.

Table 10.4. CONVICTIONS FOR OTHER OFFENCES AGAINST THE PERSON

Offence type19851988199219931994

* Sex offences reported in the violent offences category are not included in the figures for this category.

† Excludes threatening to kill or do grievous bodily harm, now classified as a violent offence.

Incest3840634748
Other sex*306320396405430
Obstructing or resisting any official2,1992,6861,8932,0982,238
Threats and intimidation†285301214274351
Other93117119153182
              Total2,9213,4642,6852,9773,249

Throughout the decade, property offences accounted for the greatest proportion of all non-traffic convictions. Although the number of convictions for property offences was higher in 1994 than in any of the previous nine years, expressed as a proportion of all convictions for non-traffic offences, the 1994 figure (44 percent) was the lowest in the decade. The number of convictions for fraud in the last three years considerably exceeded the number of convictions in earlier years. Convictions for receiving stolen property have also been higher in the last three years than in previous years. The number of convictions for burglary in 1994 was the lowest figure in the last four years, while the number of convictions for theft in 1994 was the lowest figure since 1990. Convictions for motor vehicle conversion have decreased since the mid 1980s.

The vast majority of convictions for drug offences involve cannabis. This was the case for 94 percent of drug convictions in 1994. The total number of convictions for drug offences remained quite stable between 1989 and 1992, then increased in each of the last two years to reach the highest level in the last decade (14,220). There was a large decrease in the number of convictions for possession or use of cannabis between 1988 and 1992. The number of convictions for this offence increased considerably in 1993, and the 1994 figure was only marginally lower than the 1993 figure. There has been an upward trend in the number of convictions for dealing in cannabis offences, particularly in recent years, with twice as many convictions in 1994 than in 1985. The number of convictions for dealing in drugs other than cannabis has been substantially higher since 1990, with the 1994 figure being the highest for the decade.

Table 10.5. CONVICTIONS FOR PROPERTY OFFENCES

Offence type19851988199219931994
*Includes fraud, false pretences, and forgery.
Burglary7,6117,2497,2627,3846,922
Theft14,65715,56814,67215,45613,662
Receiving stolen goods2,5772,7183,5724,1253,488
Motor vehicle conversion4,1763,8332,8632,5642,664
Fraud*14,87315,66421,42619,57821,894
Arson153182159187195
Wilful damage3,4063,9653,5994,1114,886
Other2,7703,0203,8264,0954,025
Total50,22352,19957,37957,50057,736

Table 10.6. CONVICTIONS FOR DRUG OFFENCES

Offence type19851988199219931994
Use cannabis7,2387,9196,1017,4227,399
Deal in cannabis2,0532,7103,3063,5034,229
Other cannabis9411,2061,1391,4821,730
Use other non-cannabis drug282514325338334
Deal in other drug222215376355381
Other drug207332193165147
              Total10,94312,89611,44013,26514,220

A retired 81-year-old doctor graffiti-busting.

The number of convictions for offences against the administration of justice more than doubled between 1985 and 1994 (from 5,267 to 13,065). Two major contributing factors were a steady increase in the number of convictions for breach of periodic detention (an increase of 112 percent over the ten-year period), and a large increase in the number of convictions for breach of bail after the introduction of this offence in August 1987.

Table 10.7. CONVICTIONS FOR OFFENCES AGAINST THE ADMINISTRATION OF JUSTICE

Offence type19851988199219931994
Breach periodic detention3,3654,2696,0066,6537,121
Breach probation/supervision620408542596714
Breach parole2150340470321
Breach community service103108350455418
Breach of bail-1,2412,4002,6702,914
Breach non-molestation order156233321383440
Escape custody414373380320353
Obstruct/pervert course of justice515010693118
Other556756635645666
              Total5,2677,58811,08012,28513,065

Table 10.8. CONVICTIONS FOR OFFENCES AGAINST GOOD ORDER

Offence type19851988199219931994
Riot323533-
Unlawful assembly10840423044
Possess offensive weapon1,0541,5601,0331,1721,248
Offensive language1,7201,303551641694
Disorderly behaviour3,1232,9862,3023,1013,677
Trespassing1,4801,9841,9732,2102,404
Other389425342291307
              Total7,9068,3336,2467,4488,374

A large majority (81 percent) of the cases which resulted in conviction in 1994 for a non-traffic offence involved a male offender. Forty-three percent of the cases involved European offenders, 36 percent involved Maori offenders, 6 percent involved Pacific Island offenders, 1 percent involved offenders of some other ethnicity, and for 13 percent of the cases the ethnicity of the offender was not recorded in the data. Eighteen percent of the cases which resulted in conviction in 1994 for a non-traffic offence involved a teenage offender, 26 percent involved 20 to 24 year olds, and 18 percent involved 25 to 29 year olds.

Police stand guard during the 1995 Asian Development Bank meeting in Auckland.

Sentencing for non-traffic offences

There has been a slight proportional drop in the last two years in the use of custodial sentences and all community-based sentences except supervision for non-traffic cases. As well as the percentage of cases resulting in supervision increasing, monetary penalties were imposed more often as the most serious sentence for non-traffic cases in 1993 and 1994. These patterns were repeated for most types of offence.

SENTENCING, NON-TRAFFIC OFFENCES
By type of sentence

The average seriousness of cases involving non-traffic offences nearly doubled between 1985 and 1992, then dropped to a slightly lower level in 1993 and 1994. The lower seriousness of non-traffic cases resulting in conviction in 1993 and 1994 may account, to some extent, for the proportional decrease in the use of custodial sentences and periodic detention, and the corresponding increase in the use of monetary penalties in those years compared to 1992.

The number of cases which resulted in a custodial sentence for a non-traffic offence increased substantially between 1988 and 1993. The 1994 figure was lower than the 1993 figure, but was still the second highest recorded in the decade. The drop in cases resulting in a custodial sentence in 1994 was mostly due to the suspension of some prison sentences. Cases resulting in a custodial sentence related to substantially more serious offences, on average, in 1994 than in 1985. In 1994, the average custodial sentence length (including preventive detention) for a non-traffic offence was 13.6 months, compared to 8.2 months in 1985. (Note that these figures do not include offenders sentenced to life imprisonment.)

Only 6 percent of the non-traffic cases which resulted in a custodial sentence in 1994 involved a female offender. Nearly half (49 percent) of the cases which resulted in a custodial sentence for an offence other than a traffic offence involved Maori offenders, 41 percent involved European offenders, and 7 percent involved Pacific Island peoples. Over two-thirds of the cases which resulted in a custodial sentence in 1994 related to people aged under 30: 18 percent related to teenage offenders, 29 percent to offenders aged between 20 and 24 years, and 22 percent to offenders aged between 25 and 29 years.

There was a dramatic increase in the use of periodic detention between 1985 and 1992, but in the last two years, the proportion of cases resulting in this sentence has fallen a little. In 1985, this sentence was imposed for 12 percent of the non-traffic cases, but by 1992 the proportion reached 27 percent. In the last two years, the proportion has fallen to be just over 23 percent in 1994. The number of non-traffic cases which resulted in periodic detention doubled between 1985 and 1993, before dropping slightly in 1994. The average seriousness of non-traffic offences which resulted in this sentence remained reasonably steady through the mid to late 1980s, but dropped to a slightly lower level between 1991 and 1993. In 1994, the average seriousness of cases resulting in periodic detention increased a little.

The number and proportion of non-traffic cases resulting in community care/programmes dropped slightly in both 1993 and 1994. Since the introduction of the sentence in 1985, community care/programmes have been imposed on less than 2 percent of all non-traffic cases each year. The average seriousness of cases resulting in community care/programmes has shown an increasing trend.

There was a large increase in the number and proportion of non-traffic cases resulting in community service in the late 1980s and early 1990s. Over the period 1985 to 1988, community service was awarded for between 2 and 3 percent of the cases, but by 1992 the proportion had increased to 9 percent. In the last two years, 8 percent of cases have resulted in this sentence. While the proportion of cases resulting in community service has been higher in recent years, the average seriousness of the non-traffic offences in cases resulting in community service has been at a lower level than in earlier years.

The number and proportion of cases which resulted in supervision as the most serious sentence in 1994 was higher than in any previous year in the decade. In 1994, just over 7 percent of non-traffic cases resulted in supervision as the most serious sentence, compared to 4 percent in 1985. The average seriousness of the offences committed by the people sentenced to supervision as the most serious sentence increased significantly between 1985 and 1991, and has remained reasonably constant at a higher level since then.

The number and proportion of non-traffic cases which resulted in a monetary penalty as the most serious sentence has increased in the last two years, after a large decrease in such cases over the eight previous years. Monetary penalties comprised 68 percent of all sentences imposed for non-traffic offences in 1985. This proportion dropped to 38 percent in 1992, before increasing to 44 percent in 1994. This increase may be linked to the lower average seriousness of convicted non-traffic cases in the last two years.

The percentage of non-traffic offences resulting in a deferred sentence (to come up for sentence if called upon or a suspended prison sentence) as the most serious sentence has been around 6 percent in the last four years, compared to just over 3 percent in 1985.

For many of the individual violent offences, the proportion of cases resulting in a custodial sentence dropped in 1994 compared to at least the few previous years. Part of this decrease may be due to the introduction of suspended sentences of imprisonment. The average length of the custodial sentences (including preventive detention) awarded for violent offences increased considerably over the decade, from an average of 13.8 months in 1985 to an average of 23.9 months in 1994.

The Crimes Amendment Act (No. 3) 1993 increased the maximum penalty for both rape and unlawful sexual connection from 14 years to 20 years. The average length (including preventive detention) of the custodial sentences imposed for rape in 1994 was 84.1 months, much higher than any other figure in the last decade. In the three previous years, rapists had sentences imposed of 71 months, on average. The average length of custodial sentences imposed for unlawful sexual connection in 1994 (51.9 months) was the highest since the offence was introduced in 1986.

The Criminal Justice Act 1985 included a presumption against custodial sentences for most property offenders. After the introduction of this act, the proportion of cases where the offenders were imprisoned decreased for some property offences. Burglary is not one of the property offences included in the presumption. The proportion of cases involving burglary which resulted in a custodial sentence was higher in 1986 than in 1985, and remained at a higher level in subsequent years. The length of the custodial sentences awarded for burglary increased over the ten-year period, with burglars being imprisoned for nearly three months longer, on average, in 1994 than in 1985.

Table 10.9. SENTENCES FOR NON-TRAFFIC OFFENCES*

Sentence type19851988199219931994

*Only the most serious sentence imposed is shown for cases where more than one sentence was imposed.

† Custodial sentences in 1985 include six cases involving detention under Section 48A of the Criminal Justice Act 1954.

‡ Community care was introduced as a new sentence on 1 October 1985 by the Criminal Justice Act 1985. This sentence was renamed a “community programme” by the Criminal Justice Amendment Act 1993.

§ Monetary penalties are fines and reparation.

¶ To come up for sentence if called upon or a suspended prison sentence.

|| Mainly driving disqualifications and deportation orders.

◊ Because of incomplete data in the category “No sentence or costs” no cases from that category were included in the totals.

Custodial†5,0725,2906,2276,7816,440
Periodic detention7,10110,15813,50114,55714,174
Community programme‡261584869810759
Community service1,4871,5704,4824,8244,858
Supervision2,5173,1842,5803,2594,260
Monetary§40,43032,80118,96423,55926,291
Deferment¶2,0722,6703,2413,3113,545
Other||30147242920
No sentence or costs-2,7713,0453,7184,031
              Total59,24156,30449,88857,13060,347

Convictions and sentencing for traffic offences

A large proportion of all convictions each year relate to traffic offences. In 1994, just under a third of all convictions resulted from traffic offences.

The number of convictions for serious traffic offences, most notably driving while disqualified and driving with excess alcohol, increased considerably until 1991, then decreased thereafter. Part of the decrease in convictions in 1992 and 1993 was due to fewer officers being available for traffic enforcement because of training which had to be undertaken when the Police and Ministry of Transport merged in July 1992. However, the continued decrease in convictions for serious traffic offences must be due to factors other than training. Increased public awareness of the dangers of drinking and driving, and initiatives such as the introduction of compulsory breath testing in 1993, may have affected the figures for driving with excess alcohol in particular. The number of convictions for driving offences which resulted in the death of another person in 1993 and 1994 were the lowest recorded in the last decade. It should be noted that a very small number of people who kill a person while driving a motor vehicle will be charged with manslaughter rather than driving causing death.

Table 10.1. CONVICTIONS FOR TRAFFIC OFFENCES

Offence type19851988199219931994
*Includes cases where the offender refused to supply a blood specimen, or was convicted for driving under the influence of drink or drugs.
Drive causing death155181141115120
Drive causing injury9891,1971,4411,4551,510
Driving with excess alcohol*18,50922,75925,20424,14622,694
Driving while disqualified5,9078,60312,21711,10110,740
Other traffic37,58767,78229,88825,60024,709
Total63,147100,52268,89162,41759,773

The number of cases involving a traffic offence which resulted in imprisonment doubled between 1985 and 1991, then remained reasonably stable at just over 2,200 per year between 1991 and 1993. In 1994 the number of such cases dropped to 1,892. The drop in cases resulting in imprisonment in 1994 is partly due to the introduction of suspended prison sentences. The average length of the custodial sentences imposed in traffic cases increased between 1985 and 1990, and has remained reasonably stable in recent years at about five months.

The number of community-based sentences imposed for traffic offences increased dramatically over the ten-year period. The number of such cases increased from 3,760 in 1985 to 15,980 in 1991, but since then the number has dropped to 13,884 in 1994. This decrease in the last three years is probably due to the decrease in convictions for serious traffic offences in the last three years. Part of the large increase in community-based sentences over the period 1988 to 1991 may have been due to an amendment to the Transport Act towards the end of 1988 which allowed a community-based sentence to be substituted for a mandatory disqualification in some cases. A sizeable proportion of all cases sentenced to a community-based sentence relate to a traffic offence. In 1994, 36 percent of all periodic detention cases, 50 percent of all community service cases, 19 percent of all supervision cases, and 23 percent of all community programme cases were the result of a traffic offence.

Even though the proportion of cases resulting in a custodial sentence for driving while disqualified is not large (between 15 and 17 percent over the last decade), because of the large number of cases resulting from this offence, a sizeable number of offenders are imprisoned each year for driving while disqualified. In 1994, 1,292 cases of this type resulted in imprisonment, 16 percent of all cases, traffic and non-traffic, which resulted in imprisonment. This is a lower number of custodial sentences than in the previous few years for this offence, partly due to a decrease in convictions for driving while disqualified, and partly because some of the offenders who had a prison sentence imposed in 1994 for driving while disqualified had the sentence suspended.

Table 10.11. SENTENCING OF TRAFFIC OFFENCES*

Sentence type19851988199219931994

*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. This sentence was renamed “Community programme” by the Criminal Justice Amendment Act 1993.

‡ Monetary penalties are fines and reparation.

§ To come up for sentence if called upon or a suspended prison sentence.

¶ Because of incomplete data in the category “No sentence/costs” no cases from that category were included in the totals.

Custodial1,0671,4942,2052,2391,892
Periodic detention2,8095,4178,9958,7227,850
Community programme†80193413367229
Community service5331,0305,4145,1294,787
Supervision3385656318951,018
Monetary‡39,06858,03630,05426,95626,796
Deferment§3273969799
Driving disqualification313568915935899
Other-64--1
No sentence/costs-2,4021,5991,3541,357
              Total44,24067,44048,72345,34043,571

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 Rehabilitation and Compensation Insurance 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 8.5, Accidents.

10.3 Corrections system

New Zealand's corrections system is responsible for protecting the community from offenders through both deterrence and reformation, with increasing emphasis on rehabilitation over recent years.

The primary consideration is to ensure that those who are a serious danger to society by reason of the nature of their offences or the character of their offending are removed from the community. Apart from that, wherever possible, sanctions are imposed which 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 or her successful resettlement on release.

The Department of Corrections manages all custodial and non-custodial sentences imposed by the courts on offenders. This includes prison sentences and community corrections. The Department was formed in October 1995 following the restructuring of the Department of Justice.

There are eight services and groups in the Department, working together to reduce reoffending: Public Prisons, Community Corrections, Psychological Service, Internal Audit, Corrland (responsible for the Department's forests and farms), Policy and Service Development, Contracts, Strategic Development and Finance.

Community Corrections Service

The mission of the Community Corrections Service is to contribute to promoting order and safety in society, reducing re-offending and reducing imprisonment by providing information on offenders, inmates and victims and administering community-based orders within the terms of the Criminal Justice Act 1985, and the Criminal Justice Amendment Act 1993.

Provision of information. The service provides reports to judges and parole authorities on appropriate options for sentence or release of offenders. The service has sought to encourage the use of community-based sentences in relation to imprisonment through reports and recommendations.

A survey of judges' view on sentencing was conducted by the service and a report produced in June 1994. In summary, this survey showed that there is very strong appreciation by judges of court services by probation officers.

Table 10.12. REPORTS ON COMMUNITY-BASED SENTENCING*

Report type199319941995

* Year to 30 June.

† These figures include information relating to oral information, which was not collected prior to 1993/94.

Source: Department of Corrections.

Remand pre-sentence reports16,49014,36915,287
Courts servicing—same day reports and oral information16,52622,264†23,129
Reparation reports3,5892,9443,464
Community service agreements1,132565557
Parole reports2,3161,6231,969
Home leave reports1,9591,3221,352
Special purpose reports2007569

Community-based sentencing. Ensuring compliance with community-based sentences contributes to the promotion of order and safety in the community. Innovative and well-constructed programmes across all sentences make use of community-based initiatives. A community liaison policy has been developed which actively promotes a closer working relationship with communities, and enhances access to community-based services/support groups that provide opportunities for social integration for offenders.

Reviews of community-based sentences are regularly undertaken to improve the quality of service delivery, the most recent being a review of community service completed in April 1993. Recommendations are implemented as is appropriate, and implementation is continually assessed.

The service is running a home detention pilot programme in Tamaki, Auckland. The Criminal Justice Amendment Act 1993 details the conditions that apply to release of offenders on home detention and monitoring responsibilities.

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 1995, 10,073 supervision orders were imposed and the number of people sentenced to supervision, as at 30 June 1995, was 7,079.

Community service—this sentence requires an offender to provide unpaid service to a community organisation. The minimum number of hours which can be imposed is 20 and the maximum is 200, and the sentence must be completed within a 12 month period. The consent of the offender must be obtained prior to imposition.

During 1994-95, 8,766 community service orders were imposed and the number of people subject to that sentence, as at 30 June 1995, was 7,484.

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 eight hours each week. While in custody, the offender carries out supervised work in the community.

During the year ended 30 June 1995, 20,625 periodic detention orders were imposed and the number of people subject to that sentence, as at 30 June 1995, was 7,071.

Community programme—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 1995, 1,062 orders for community care were imposed, and the number of people subject to that sentence, as at 30 June 1995, was 571.

Parole—the period of parole supervision has a dual purpose: it is for the protection of the community against further offending, and to assist the prisoner in becoming re-established in the community.

Offenders serving a sentence of corrective training or imprisonment for more than 12 months are released to the supervision of a probation officer. Offenders sentenced to more than 12 months' imprisonment and eligible for parole at one-third of their sentence can be released on home detention or to a habilitation centre, for a period of up to 12 months. Offenders serving sentences of imprisonment for life, or preventive detention, are, if parole is granted, released to the supervision of a probation officer for the life of the offender.

Table 10.13. COMMUNITY-BASED SENTENCING*

SentenceAs at 30 June
19911992199319941995

* Taken from Wanganui Computer statistics from 1989—1992; 1992 onwards figures taken from the Justice Performance Management System and therefore not comparable with earlier years. 1995 figures taken from the Department of Courts' Case Monitoring System; sentences volume.

Source: Department of Corrections.

Periodic detention8,5987,7607,3567,7717,071
Community service6,2157,3207,1347,4897,484
Community programme595709655623571
Supervisions4,8044,8404,5675,7657,079
Parole1,4311,6011,5541,5741,196

Combined custodial/community-based sentences—an offender may be sentenced to a term of imprisonment of 12 months or less followed by a community-based sentence or combination of community-based sentences. An offender may be sentenced to a suspended term of imprisonment of between six months and two years. This may be imposed with a community-based sentence or combination of community-based sentences.

Public Prisons Service

The aim of the Public Prisons Service is to manage inmates in a secure, safe and humane environment that helps to reduce re-offending.

The Public Prisons Service is a key part of the Department of Corrections. It runs 17 prisons capable of housing about 5,000 sentenced inmates and remandees. There are eight maximum security units, 50 medium security units, 29 minimum security units, two corrective training units and 16 remand units.

Within the prisons the service provides a wide range of work, training and specialist programmes to assist inmates' habilitation.

The Department also provides escort and custodial supervision services to courts, such as transporting inmates to and from court appearances.

There are two separate women's prisons and a women's wing at Mt Eden Prison. Currently, there are about 2,500 prison officers.

New Zealand's 17 prisons are listed in table 10.14. Inmates with different security classifications are held at each institution. There are 13 prisons that receive remand inmates as well as sentenced inmates.

Table 10.14. PENAL INSTITUTIONS

InstitutionCapacity

* Includes remand inmates.

Source: Department of Corrections.

Male prisons
Auckland585
Christchurch536*
Dunedin59*
Hawke's Bay Regional264*
Invercargill172*
Manawatu190*
Mount Eden421*
New Plymouth108*
Ohura80
Rimutaka356
Rolleston200
Tongariro/Rangipo533
Waikeria722*
Wanganui (includes Wanganui City Prison)330*
Wellington120*
Female prisons
Arohata105*
Christchurch Women's60*
Mount Eden (Women's division)54*

Detention in a penal institution

The sentences of imprisonment which the Department of Courts may impose are set out in the Criminal Justice Act 1985 and the 1993 amendment act, and are:

Corrective training—the term fixed by law is three months. The offender must be between 16 and 19 years of age and he or she may be eligible for final release after serving two-thirds of the sentence. After release the offender is subject to supervision by the Community Corrections Service for six months.

Imprisonment—for a stated period or for life. A mandatory sentence of life imprisonment is imposed when an offender is convicted of murder. The death penalty for murder was abolished in 1961. Capital punishment was removed as a penalty for all crimes, most recently treason and mutiny in the armed forces, in 1989.

An offender sentenced to imprisonment for a fixed term of more than one year (where the sentence is not for a serious violent offence) may be eligible for release on parole after serving one-third of their sentence, and must be released after two-thirds of sentence. An offender convicted of a serious violent offence is not eligible for release on parole and will be released after two-thirds of the sentence has been served. In both cases, an offender is subject to a minimum of six months on parole when he or she is released.

Offenders sentenced to one year or less are released when they have completed half of their sentence.

PRISONERS
Numbers in prison per 10,000 mean population

An offender sentenced to imprisonment for life will be eligible for release after serving 10 years. The date of release is decided by the Parole Board. The offender will be subject to parole conditions for life when he or she is released.

Preventive detention—detention in prison for an indefinite term of at least 10 years, to be decided by the Parole Board. This sentence may be imposed when an offender is convicted for certain sexual or violent offences. The offender must be 21 years of age or over. If released, he or she will be subject to parole conditions for life.

The Criminal Justice Act 1985 states that violent offenders are to be imprisoned except in special circumstances, while property offenders should not be detained except in special circumstances.

The increase in the number of offenders given custodial sentences, together with the increase in the length of these sentences, has resulted in an increase in the number of inmates in New Zealand prisons. During 1995, there was an average of 4,069 sentenced inmates in prison at any one time, an increase of nearly 59 percent on the average muster during 1983 (2,565). The number of inmates remanded in custody has also increased. In 1995, the average number of remand inmates in prison at any one time was 376, an increase of 33 percent over the figure for 1983 (283 remand inmates).

Census of prison inmates. The following detailed statistics are taken from the census of inmates carried out on 18 November 1993 and published in the Department of Justice's Census of Prison Inmates 1993. The information was obtained directly from the prisons or extracted from the Wanganui Computer.

As at 18 November 1993 all prisons had less than the maximum manageable number of inmates. In total, there were 3,763 sentenced inmates, comprised of 118 females and 3,645 males. In addition, there were 500 remand inmates within the prisons (14 female and 486 male) making a grand total of 4,263 prisoners. A further 9 remand prisoners were held in police cells.

Age and ethnicity—in total, 2,113 inmates (56 percent) were under the age of 30, including 1,300 (35 percent) under the age of 25. Just over half (52 percent) of female inmates were under 30 years of age compared with 56 percent of male inmates. Eighteen percent of inmates were 40 years or over.

Table 10.15. AGE DISTRIBUTION OF INMATES*

AgeFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

* As at 18 November 1993.

Source: Ministry of Justice.

15--1-1-
16--130.4130.3
1721.7461.3481.3
18-1986.82296.32376.3
20-242823.997326.71,00126.6
25-292319.779021.781321.6
30-341916.254414.956315.0
35-391311.138010.439310.4
40-491815.441011.342811.4
50-5943.41825.01864.9
60+21.7762.1782.1
              Total117100.03,644100.03,761100.0

Of the 3,097 inmates surveyed, almost all identified only one ethnic group. Of the female respondents, 36 percent specified New Zealand European, 53 percent New Zealand Maori and 5 percent Pacific Island. Of male inmates 38 percent specified New Zealand European, 46 percent New Zealand Maori and 10 percent Pacific Island only.

When ethnic origin by age group was surveyed, New Zealand Maori under the age of 30 years made up 53 percent of inmates, while (in the same age group) 33 percent of inmates were identified as New Zealand European and 10 percent were of a Pacific Island ethnic group. In the 40 years and over category, 56 percent of the inmates were New Zealand European, 9 percent Pacific Island and 26 percent New Zealand Maori.

Major offence—the census shows that 61 percent of all male inmates were imprisoned for violent crimes. The next largest offending group were those inmates imprisoned for offences against property (19 percent), followed by traffic offenders (9 percent) and then by drug offenders (6 percent).

Table 10.16. MAJOR OFFENCE OF INMATES*

Major offenceFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

* As at 18 November 1993.

Source: Ministry of Justice.

Violence5244.42,20960.62,26160.1
Other against persons10.91223.31233.3
Against property3933.368918.972819.4
Involving drugs1613.72196.02356.2
Good order10.9120.3130.3
Traffic32.63108.53138.3
Against justice54.3581.6631.7
Miscellaneous--250.7250.7
              Total117100.03,644100.03,761100.0

The most common violent offences for male inmates given custodial sentences were aggravated robbery (22 percent of male violent offenders and 13 percent of all male inmates) and rape (19 percent of male violent offenders and 11 percent of all male inmates).

The most significant major offence groups represented for females were violent offences (44 percent) and property offences (33 percent). A smaller proportion of female prisoners were incarcerated for drug offences (14 percent). The most common violent offences for which female offenders were given custodial sentences were murder (25 percent of female violent offenders and 11 percent of all female inmates) and aggravated robbery (21 percent of female violent offenders and 9 percent of all female inmates).

Ten inmates were in prison for a driving offence involving manslaughter, and a further 28 inmates were imprisoned for driving causing death or injury. Six percent of all male inmates were in prison for driving while disqualified, and 1 percent for drink-driving.

Sentence length—44 percent of female inmates and 25 percent of male inmates were serving a total custodial sentence of less than one year in duration. A total of 13 females and 206 males were serving sentences of life imprisonment. 52 males were serving preventive detention sentences. Excluding life and preventive detention sentences, 7 females (6 percent of all female inmates) and 885 males (24 percent of all male inmates) were sentenced to a custodial sentence of at least five years in duration. Most inmates are released on parole or remission before the expiry of their sentence.

Table 10.17. TOTAL SENTENCE LENGTH FOR INMATES*

Sentence lengthFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

* As at 18 November 1993.

Source: Ministry of Justice.

Under 3 months76.0711.9782.1
3 months and under 6 months1512.82115.82266.0
6 months and under 1 year2924.863617.566517.7
1 and under 2 years2218.859916.462116.5
2 and under 3 years108.539910.940910.9
3 and under 5 years1412.058516.159915.9
5 and under 7 years32.644812.345112.0
7 and under 10 years32.63289.03318.8
10 years and over10.91093.01102.9
Life1311.12065.72195.8
Preventive detention--521.45212.4
              Total117100.03,644100.03,761100.0

Offending history—28 percent of female inmates had had a previous term in custody, compared to 57 percent of male inmates who had served a previous prison term. Fifty-one percent of female inmates and 66 percent of male inmates had at least six convictions recorded prior to the census date, while 26 percent of female and 36 percent of male inmates had more than 20 previous convictions for non-traffic offences.

Traffic offenders—at the time of the census 3 female and 310 male inmates were imprisoned for traffic offences (other than those which involved death or injury, and manslaughter with a motor vehicle). Almost all traffic offenders had a total of at least six previous convictions for any offence, 70 percent had more than 20 convictions and 31 percent had more than 50 previous convictions.

Table 10.18. TOTAL TIME SPENT IN PRISON ON PREVIOUS OCCASIONS*

Total time spent in prisonFemaleMale
NumberPercentNumberPercent

* As at 18 November 1993.

Source: Ministry of Justice.

No previous incarcerations8471.81,55542.7
Under 6 months1412.062517.2
6 months and under 1 year43.43459.5
1 and under 2 years108.540111.0
2 and under 3 years32.62366.5
3 and under 5 years10.92837.8
5 and under 7 years10.91323.6
7 and under 10 years--531.5
10 years and over--140.4
              Total117100.03,644100.0

Classification status—half 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. Of female inmates, 77 percent had a minimum security classification status, and 20 percent were classified as medium security.

An important objective is to ensure that inmates are held in humane conditions and at the minimum degree of security consistent with public safety. Wherever possible inmates are given some sort of constructive employment, which can be either maintenance of the prison, industrial production, or work on farms, forestry or horticulture.

There is an education co-ordinator in each prison who is responsible for contracting educational services from the community. Courses may be at any level from literacy to university study. The study gives inmates the chance to better their social and employment skills and aids re-integration into the community.

Increasingly, prisons also offer specialised programmes such as the Kia Marama programme of Rolleston Prison for people who sexually offend against children, anger management and drug and alcohol programmes which inmates are encouraged to participate in to help resolve problems and attitudes which contribute to offending. In addition prisons offer cultural programmes and recreational activities, including hobby and sports.

Earnings. Modest earnings are paid to inmates who work or are involved in re-integrative programmes. Payments vary depending on the nature of the work or activity and the standard of performance; the maximum is 92 cents a day. Money earned is banked in a personal trust account and may be spent on personal items through a weekly shopping system.

Inmates who have been in prison for more than 31 days are eligible on release for the steps to freedom grant which is administered by the New Zealand Income Support Service. This grant provides a maximum of $350 and is abated by any prison earnings the inmate may have.

Punishments. An inmate charged with an offence against discipline appears either before the general manager or a visiting justice who may impose a penalty. Serious criminal offences by inmates are referred to the police for investigation.

Release to work. A small number of selected inmates may be released during the day for outside employment. They are required to contribute to the cost of their board and part of their earnings may also be withheld to fund debts and family expenses.

Parole system. An inmate serving a sentence of more than one year for an offence other than a serious violent offence is eligible for parole after serving one third of his or her sentence. An inmate serving 15 years or more for a serious violent offence, or serving a life sentence or preventive detention is eligible for parole after 10 years. An inmate serving between two and 15 years for a serious violent offence is not eligible for parole.

If a minimum period has been imposed by the judge at sentencing, that period must be served before an inmate is released on parole.

An inmate serving a sentence of less than one year is not required to have parole conditions as part of their release.

Two types of board consider parole cases. Persons sentenced to life terms, terms of seven years or more or preventive detention have their cases considered by the National Parole Board. Those sentenced to between one and seven years appear before one of 17 district prisons boards (see also Community Corrections).

Psychological Service. The Psychological Service is a regionally-based service with offices in eight centres and two special units for the treatment of child sex offenders. It has a staff of 54 psychologists and also employs on a fee for service basis psychologists in private practice, with about 30 being employed at any one time. Psychological services are provided to both the Public Prisons Service and the Community Corrections Service, to community agencies dealing with offenders, and to courts, the district prisons boards and the Parole Board.

The main work of the division is the psychological assessment and treatment of convicted offenders who are either serving a prison sentence or a community-based sentence administered by the Community Corrections Service. It also provides psychological assessments for courts at the pre-sentence stage, and for the district prisons boards and the Parole Board to assist in parole decisions.

Other work it undertakes is the provision of advice to the Department of Corrections and the Minister of Corrections on policy, practices and procedures, and to staff of the Public Prisons Service and Community Corrections Service and community agencies on ways to assist individual offenders. It participates in programme development, implementation and evaluation and provides training for prison and probation officers, staff of community agencies and post-graduate psychology students.

The service carries out several research projects each year to give a sound base for the advice it gives; to improve the assessment and treatment methods it uses; and to evaluate the effectiveness of both its own interventions and programmes offered by the penal institutions and community corrections divisions and community agencies working with offenders.

Off with the old, on with the new—the old-style helmet, part of the uniform since 1913, gave way in 1995 to new wide-brimmed hats or the traditional peaked cap.

10.4 Police

The national administrative and operational control of the New Zealand Police is vested in the Police Commissioner who is responsible to the Government through the Minister of Police.

For operational purposes, New Zealand is divided into five police regions, each controlled by an Assistant Commissioner. The regions are divided into 28 districts, each commanded by a Superintendent.

Police National Headquarters in Wellington provides administrative support to the regions and districts, and policy advice to the government.

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, Children, Young Persons and their Families Act, Police 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, and honorary fishery officers.

The effective strength of the police at 30 June 1995 was 6,967 sworn personnel, including 875 women, and 1,775 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 1995, armed offenders squads attended 516 incidents, compared with 520 in 1994.

A total of 224 members throughout the country now perform armed offenders squad duties on a part-time basis.

Special Tactics Group. This group is made up of selected members of armed offenders squads from Auckland, Wellington and Christchurch, and is provided with specialised training to enable it to deal with incidents beyond the capability of armed offenders squads. The squads exercise with police negotiators and other specialist police support staff.

Search and rescue. There were 1,001 police-controlled search and rescue operations during the year ended 30 June 1995. These operations also involved many thousands of voluntary hours by, among others, members of NZ Land SAR and the Royal New Zealand Coast Guard Federation.

POLICE NUMBERS
Population per sworn police officer

Youth Education Service. The Youth Education Service (YES) has been formed by merging the Law-related Education Programme and School Traffic Safety section. A new Youth Education Service curriculum has been written with four themes: Drug Abuse Resistance Education (DARE); Violence Prevention (Keeping Ourselves Safe); School Road Safety Education; and Crime Prevention and Community Responsibility.

The Te Reo DARE programme Tena Kowhiria was completed and is being published with the assistance of the Lottery Grants Board. Police acknowledge the support of Tainui in hosting two hui that helped facilitate this development.

During the year a positive relationship has developed with Telecom, the new national sponsor of Police youth activities. Local Telecom staff are looking for ways to assist the implementation of YES programmes in local school communities.

Police dogs. A comprehensive network of police dogs and handlers is maintained throughout New Zealand. During the year ended 30 June 1995 police dogs were deployed on 32,693 incidents. There were 86 general purpose operational and dual purpose dogs (dual purpose dogs are trained to locate narcotics), 8 narcotic dogs, 3 explosive detector dogs, and 2 firearm detecting dogs. In addition there were 14 trainee dog handlers, giving a total strength of 113 teams.

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 1995 there were 224 community constables spread over all six police regions. (Police regions five and six were combined into one region on 1 October 1995.)

Policeman talking to a squatter under a motorway bridge.

Youth Aid Section. Under the Children, Young Persons and their Families Act 1989, the New Zealand Police must follow the principle that unless the public interest requires otherwise, criminal proceedings are not instituted against children or young persons if there is an alternative means of dealing with the matter. Thus, of the 42,722 offences attributed to children and young persons in the year to 30 June 1995, 25.3 percent were finalised by way of warning, 56.5 percent by youth aid alternative action, and 18.2 percent were referred for family group conference after a Youth Court appearance.

Youth aid staff throughout the country as at 30 June 1994 totalled 130 full-time and 39 part-time members. Each youth aid full-time officer attended, on average, 43 family group conferences during the year.

Community Support Groups. There were 18,142 community support groups throughout New Zealand as at 30 June 1995, and 75 victim support groups.

National Drug Intelligence Bureau. For the year ended 30 June 1995 there was a total of 23,133 drug offences reported, of which 92.3 percent were cleared. In the year to June 1995, search without warrant powers were exercised in 3,594 cases, resulting in 2,992 seizures (83 percent).

Table 10.19. DRUG SEIZURES BY SUBSTANCE

Substance1991-921992-931993-941994-95*

* Year ended 30 June.

Source: New Zealand Police.

Heroin (grams)3082,191103230
Heroin (millilitres)11278435129
Cocaine (grams)2,1496,28031089
Opium (grams)212737186
Morphine (grams)2624315
Morphine (millilitres)7072,4491,032947
Analgesics (tabs)40,8419,40313,97911,505
LSD (tabs)27,29923,45625,94518,230
Psilocybine (grams)2,4333,1624,0713,386
Psilocybine (mushrooms)35010,0791,8883,202
Amphetamine (grams)32016371538
Methamphetamine (grams)552837182101
Cannabis plant (number)300,041306,573220,011355,663
Cannabis leaf (grams)432,136578,888765,263863,985
Cannabis oil (grams)3,8112,426259,6413,839
Cannabis resin (grams)1,5047,372670706,439

Reported offences. A summary of offences reported to the police for the year ended 30 June 1995 can be found at the beginning of section 10.2, Criminal justice.

Police Complaints Authority

The authority is a person appointed by the Governor-General to receive and deal with any complaints against misconduct or neglect of duty by police, and to investigate incidents involving death or serious harm in which police are involved. The authority was established by the Police Complaints Authority Act 1988 and is entirely independent of the police. Complaints can be made to the authority, the police, an ombudsman or a registrar of a district court. The authority has powers to investigate complaints itself, oversee complaints, and review complaints which are investigated by the police and then sent to the authority. All complaints against police conduct, wherever laid, are ultimately dealt with by the authority.

In the year ended 30 June 1995, 2,620 complaints were received from 1,650 individual complainants (1,607 in 1994). Of these, 96 complaints were withdrawn, refused, not pursued or the authority had no jurisdiction, leaving 2,524 accepted for investigation. Sixteen were partially or to a minor degree sustained; 48 were dealt with under section 13 of the Police Complaints Authority Act; 10 conciliated; 144 sustained; and 557 were not sustained, leaving 1,749 current at 30 June 1995.

Contributors

  • 10.1 Department for Courts; Ministry of Justice; Law Commission; Crown Law Office.

  • 10.2 New Zealand Police; Ministry of Justice (including tables 10.2 to 10.11).

  • 10.3 Department of Corrections; Ministry of Justice.

  • 10.4 New Zealand Police; Police Complaints Authority.

Special articles

Lay Observers; Legal Services Board; Ministry of Commerce; Department of Prime Minister and Cabinet; New Zealand Police.

Further information

Conviction and Sentencing of Offenders in New Zealand: 1985 to 1994. Ministry of Justice.

Census of Prison Inmates 1993. Ministry of Justice.

Changes to the Seriousness of Offending and in the Pattern of Sentencing: 1979 to 1988. Department of Justice.

In the interests of justice: An evaluation of criminal legal aid in New Zealand. Legal Services Board, 1995.

Rarangi rauemi: A catalogue of resources for law-related education. Legal Services Board, 2nd edn., 1995

Report of the Ministry of Justice (Parl paper E5).

Report of the Law Commission (Parl paper E31).

Report of the Legal Services Board (Parl paper E7).

Report of the New Zealand Police (Parl paper G6).

Report of the Parole Board (Parl paper E5a).

Report of the Police Complaints Authority (Parl paper G51)

Tables of New Zealand Acts and Ordinances and Statutory Regulations in Force. Parliamentary Counsel Office (annual).

The Law Commission publishes in series both their preliminary papers and reports.

The Legal Services Board produces pamphlets on the legal aid system, and on obtaining civil or criminal legal aid.

Chapter 11. Communications

Internet cafe in Wellington.

The communications infrastructure in New Zealand has undergone dramatic changes in recent years. Over the past decade, competition has been progressively introduced into all aspects of the communications market. Today it is one of the most rapidly growing sectors of the economy.

The Communications Division of the Ministry of Commerce provides advice to the Minister of Communications on broadcasting policy issues, manages the radio spectrum, and carries out regulatory functions relating to communications. It administers the Telecommunications Act 1987, Postal Services Act 1987, Radiocommunications Act 1989 and Broadcasting Act 1989.

11.1 Mass media

Broadcasting policy

Historically, most broadcasting services in New Zealand were provided by the Government. In 1989 a new broadcasting policy regime was established to improve economic efficiency within the broadcasting industry while ensuring that social objectives continued to be met. The Government intended to increase economic efficiency by introducing a more competitive and flexible market for broadcasting services. The following steps were proposed:

  • It would be made easier for new broadcasters to enter the industry.

  • Ownership restrictions would be reduced or removed altogether.

  • It would be made easier for new technologies to be used and new services provided.

  • In the interests of increasing efficiency, the Government's commercial and non-commercial objectives would be separated.

The Broadcasting Corporation of New Zealand Restructuring Act 1988 dissolved the Broadcasting Commission and replaced it with two state-owned enterprises, Radio New Zealand Limited (RNZ) and Television New Zealand Limited (TVNZ), each with its own management board. TVNZ was required to vest its transmission assets in a subsidiary company, Broadcast Communications Limited (BCL). Aotearoa Maori Radio, which had been managed by a subcommittee of the Broadcasting Commission, was established as a charitable trust to be managed on an independent basis and has, since 1989, been broadcasting on a full-time basis in Auckland.

Limits on overseas shareholdings in New Zealand broadcasting companies were removed in 1991.

The Broadcasting Act 1989 established the Broadcasting Commission and the Broadcasting Standards Authority and provided for election broadcasting and restricted the scope for political intervention in the management or programming of TVNZ or RNZ.

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. NZ On Air collects the Public Broadcasting Fee (currently set at $110 per annum per household with a television set) and disburses it to meet its statutory objectives, namely 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 considered appropriate, extend television and radio coverage to New Zealand communities that otherwise would not receive a commercially viable signal.

  • Ensure that a range of programmes is available to provide for the interests of women, children, people with disabilities and other minorities, including ethnic minorities.

  • Encourage the establishment and operation of archives of programmes that are likely to be of historical interest in New Zealand.

NZ On Air fulfils these objectives by providing funds for broadcasting, production of programmes and archiving of programmes. When allocating funding for programme production, NZ On Air is required to take into account such factors as availability of other sources of funding, likely audience size and the likelihood of a programme being broadcast.

The members of the Broadcasting Commission, which operates under the name New Zealand on Air (NZ On Air), are appointed by the Governor-General on the recommendation of the Minister of Communications.

In 1994-95, NZ On Air spent $50.6m on the production of television programmes; $21.8m on National Radio; Concert FM and access radio services; and $11.5m on Maori broadcasting. It also spent $3.0m on remote television coverage, $1.8m on New Zealand music projects and $1.0m on broadcasting archives

Broadcasting standards. The Broadcasting Standards Authority (BSA) is an independent body established to enforce and oversee the standards and objectives specified by the Broadcasting Act 1989. The four members of the authority are appointed by the Governor-General on the recommendation of the Minister of Communications. The authority's functions 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 other codes where appropriate.

  • Conduct research and publish findings.

In relation to complaints, the authority:

  • Hears and determines formal complaints against broadcasters when the complainant is dissatisfied with the action taken by broadcasters, or when the issue relates to issues of individual privacy.

  • Publishes its findings.

  • May impose penalties (the most severe being a 24 hour restriction on broadcasting).

There are appeal rights to the High Court against the authority's decisions.

In the year to June 1995, the authority issued 144 decisions on formal complaints (151 in 1994). Of these complaints, 40 percent alleged a breach of balance, fairness and accuracy. The second largest area of complaint alleged a breach of good taste and decency. Of the decisions issued, 80 percent related to television and 20 percent to radio.

The authority is in the process of reviewing the Code of Broadcasting Practice for pay television services, with particular reference to “soft pornography” and adult entertainment programmes. It also has a very modest research programme focused on balance and fairness in broadcast news. A copy of that study is available from the authority as well as a literature review on “soft pornography” on television.

Complaints about the standard of advertising on radio and television are handled by the Advertising Standards Authority. In the year ended 31 December 1994, the Advertising Standards Authority considered 427 complaints, 46 (11 percent) of which related to liquor advertising. Overall, the level of complaints relating to liquor advertising has dropped significantly.

Under the Broadcasting Act 1989 the Broadcasting Standards Authority is responsible for allocating to political parties the free broadcasting time and funds appropriated by Parliament for party political advertising on radio and television prior to an election. It is expected that this function will be transferred to the Electoral Commission before the next general election.

Maori broadcasting. Under the Radiocommunications Act 1989, frequencies suitable for radio and television were reserved throughout New Zealand for the promotion of Maori language and culture.

Prior to the broadcasting reforms of 1988-89, one iwi-based radio station (Wellington's Te Upoko o Te Ika) had been broadcasting continuously. There are now 24 iwi-based radio stations, 23 of which broadcast on frequencies reserved by government for the promotion of Maori language and culture. In addition to the iwi stations, Aotearoa Maori Radio broadcasts to Auckland, Wellington and Christchurch.

Since 1989, New Zealand on Air has provided public funding for the operating and capital costs of Maori radio stations, and for the production of Maori programmes for broadcast on network television. The Broadcasting Amendment Act 1993 established a new Maori broadcasting funding agency, Te Reo Whakapuaki Irirangi, better known as ‘Te Māngai Pāho’. On 1 January 1995 Te Māngai Pāho assumed primary responsibility for the allocation of public funding for Maori broadcasting.

One of Shortland Street's most avid fans.

Television New Zealand Limited. The TVNZ Group operates two channels, TV ONE and TV2, 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 communications 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 TV ONE and TV2 broadcast 24 hours a day, seven days a week.

All the 50 most-watched programmes in 1995 were played on TV ONE or TV2 and, of them, 29 were locally-made (in fact, 14 of the top 20 shows were local).

TV ONE aims to provide quality New Zealand and overseas drama, news, sport and information programming. TV2's mix of comedy, drama, movie and entertainment programming attracts a younger audience. Imported programming is mainly sourced from the United Kingdom, the United States and Australia. Companies it deals with are Columbia Tristar, Paramount, Warner Bros, 20th Century Fox and the BBC, Granada, LWT, and Thames and Central Television. News and current affairs programming is sourced by satellite.

TVNZ's local and international activities, grouped in Television, Production and Distribution divisions, include programme production, outside broadcast services, multi-media development, merchandising, Teletext, signal distribution and programming supply and transmission consultancy services in Australia, South-East Asia and the Pacific.

Taiwanese television crew filming Dunedin's historic buildings.

Subsidiaries include signal distribution company BCL, which provides services for all New Zealand TV broadcasters, most radio stations and the ABC and SBS in Australia; drama company South Pacific Pictures, producer of the top-rating soap Shortland Street as well as co-productions with overseas broadcasters; facilities house Avalon Studios; and Horizon Pacific Television, which runs regional television stations in five New Zealand centres.

TVNZ's state-of-the-art compressed digital satellite network, developed in conjunction with Australia's Nine Network, is one of the most comprehensive operated by any broadcaster in the world. International and other New Zealand broadcasters account for half the business on the network.

TVNZ distributes programmes internationally through London-based HIT Entertainment pic. In 1995 sales were made to free-to-air, cable and pay-TV broadcasters in over 80 countries, including major markets such as the US, UK, Germany, Italy and France. Growth areas for TVNZ were Latin America and Eastern Europe.

The most successful programmes internationally continue to be TVNZ Natural History's Wild South documentaries and the extensive catalogue of children's drama produced by TVNZ and South Pacific Pictures.

The company's main revenue source is advertising. Advertising revenue in 1994 was $278.5 million (total revenue $391 million), up from $261 million in 1993. Tax-paid profit for the year to 31 December 1994 was $50.9 million.

TV3 Network Services Limited. TV3 is a private national television network which has been on air since November 1989. Headquarters are in Auckland with offices and studio facilities in Wellington and Christchurch.

Shareholding is 20 percent owned by Can West Global Communications Corporation, a Canadian communications company. Westpac Bank own 48 percent with the remaining 32 percent owned by TV3 Network Holdings Limited. TV3 announced its first dividend in early 1995.

The network primarily targets viewers aged 18-49 with a wide ranging programming base and strong emphasis on news, current affairs, sport and local programming. TV3's documentary series Inside New Zealand has won both national and international awards.

During 1994-95 TV3 added over 25 new translator sites throughout New Zealand and now 94 percent of the population can receive the signal. By the end of 1996 transmission will expand to 98 percent.

In the year to February 1995 there was a 14 percent increase in New Zealand programming on TV3 during prime time. TV3 obtained 40 percent of the New Zealand On Air TV funding for local programming which includes children's programmes, a teenage show, lifestyle, drama and comedy.

Overseas-sourced programmes come primarily from the USA. TV3 has exclusive agreements with ABC, Disney, and World Vision, as well as the ability to source drama and comedy from many other international distributors.

SKY Television. New Zealand's first entry into pay television began broadcasting on 18 May 1990. SKY provides movies, sports and news on three scrambled UHF channels. To receive the broadcast the subscriber must have a decoder 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 commercial stations. SKY currently has approximately 220,000 subscribers and has the potential to reach 850,000 homes. It is soon extending its coverage to Taranaki, Whangarei and Eastern Bay of Plenty.

SKY offers news and sports broadcasts 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 presented by HBO shows a mixture of classics and new releases which it rotates over different times and days.

Two new SKY channels were launched during 1994, Discovery with a non-fiction entertainment programme in October and Orange in December. Orange is aimed at the 15–39 year-old audience and features magazine programmes, teenage dramas and old favourites such as The Avengers.

Regional television services. Horizon Pacific Television, wholly owned by TVNZ, began broadcasting from four regional stations in March 1995. ATV Television broadcasts to the Greater Auckland area, Coast to Coast Television covers the Waikato/Bay of Plenty regions; Capital Television covers Wellington; and Southern Television broadcasts to Dunedin City. All four stations are stand-alone operations broadcasting on the UHF band.

About 50 percent of programming is received from the BBC World Television Service through Horizon Pacific's satellite dishes and simultaneously re-broadcast through the regional stations. In addition, all stations have their own news and current affairs teams focusing on local news and issues. It is the stated objective of the group to add more local programming as audience share grows.

Canterbury Television (CTV) began broadcasting in Christchurch, using the UHF band, in June 1991. The channel had a strong emphasis on local content, with approximately 70 percent of its programmes locally produced. In November 1995 CTV was bought by Horizon Pacific Television.

CRY TV and Max: The Music Channel are music stations broadcasting in Christchurch and Auckland, respectively. Both broadcast music videos and coverage of local bands on UHF frequencies.

Action TV. This channel, owned by the Totalisator Agency Board (TAB), commenced broadcasting in November 1992. It broadcasts live racing, race results and programmes about racing to Auckland, Waikato, the Bay of Plenty and Wellington, using UHF frequencies.

The TAB has leased the down-time on this channel to SKY Television which commenced broadcasting in October 1994.

Local television services. Geyserland TV (Rotorua) and ITV (Queenstown) provide tourist information services to hotels, motels and similar facilities in their respective areas of coverage.

Cable television. New Zealand's first commercial cable television operation began in 1993 on the Kapiti Coast as Kiwi Cable TV. In February 1996 it was relocated as Saturn Communications based in Petone. It is owned by two US companies, Todd Communications and United International Holdings. The present 1,100-homes Kapiti system remains as headend and will serve an expanding hybrid fibre-coax infrastructure in the Hutt Valley.

During 1995 Telecom extended its pay television pilot currently running in Auckland and began commercial delivery of services to a housing subdivision in Auckland.

BCL is trialling cable in the Wellington suburb of Whitby, where topography has made television reception difficult in the past. Households in the trial receive Television One, Channel 2, TV3, Action TV and the three SKY Television channels via co-axial cable from the local BCL translator.

Table 11.1. HOURS OF LOCAL CONTENT ON TELEVISION

YearTV OneChannel 2TV3Total
Source: Ministry of Commerce.
19891,7908901322,812
19902,4747721,0034,249
19911,8111,0161,2124,039
19922,5261,2271,9625,715
19932,0051,0421,7414,788
19942,2101,0411,7184,969

The decrease in hours of local content in 1993 was primarily due to the fact that coverage of the Olympic Games significantly increased the hours of local content broadcast in 1992.

Radio broadcasting

Since the broadcasting reforms of 1988-89, the number of registered radio frequencies has increased substantially. As at 1 July 1988 a total of 81 AM and 76 FM frequencies were in use throughout New Zealand.

As at 30 September 1995, 160 AM and 437 FM frequencies were registered with the Registrar of Radio Frequencies. It is difficult to ascertain how many of the registered frequencies are in use but most licence holders commence broadcasting shortly after registration.

Radiocommunications Act. The Radiocommunications Act 1989 provided a revised framework for spectrum allocation in order to cope with an increased demand for frequencies resulting from broadcasting and telecommunications reforms. It established a market-based system for spectrum management, with up to 20 year tradeable spectrum property rights. Property rights were initially awarded to the highest tenderer. Such rights not only encourage investment in spectrum use, but also provide for situations where a number of uses are possible.

Broadcasters operating under warrants issued by the Broadcasting Tribunal on 1 July 1989 were entitled to a licence under the Radiocommunications Act. These licences were issued for a 20 year period in return for a one-off lump sum payment or an annual payment for each of the 20 years.

Allocation by tender. Most of the significant remaining UHF television, FM sound radio and AM sound radio frequencies have now been tendered. Tendering is conducted on a first price, sealed bid basis. The registration of licences following tendering establishes the tradeable right which is recorded in a publicly accessible register. An annual administration fee is payable to the Ministry of Commerce by all registered licence holders.

Additional licences are created, where technically possible, and tendered when there is demand for them. Amendments to licences, such as changes of transmission site, increases in power etc, are accommodated where possible. Where an amendment is likely to result in an estimated increase in the value of the licence in excess of $5,000, the licence is required to be re-tendered. The existing licence-holder has preferred bidder status in that they are given the opportunity to match the top bid if they choose to do so. Pending tender, licences are often made available for interim use for a rental that is related to the value of the licence. These policies are periodically reviewed.

Radio New Zealand. State-owned radio has provided both commercial and public radio services to New Zealand since the early 1930s. Private radio emerged in the late 1960s and, since then, privately-owned and commercial State radio stations have been in competition. In line with government policy, in December 1995 all commercial Radio New Zealand activities were vested in a stand-alone company, Radio New Zealand Commercial, and the new company was offered for sale.

Radio New Zealand Limited (RNZ Limited) was constituted as a state-owned enterprise in 1988 when the Broadcasting Corporation of New Zealand (BCNZ), of which RNZ Limited has been a service, was dissolved. The BCNZ's radio assets were to pass through the Crown into the state-owned enterprise. However, Maori interests claimed the new structure was inadequate to carry out Treaty of Waitangi language and cultural obligations.

The issue has continued to be litigated in the courts, and the assets were legally frozen in Crown ownership with RNZ Limited making use of them under licence. Following an unsuccessful appeal to the Privy Council in 1992, the way was cleared for the assets to be vested in the Radio New Zealand state-owned enterprise.

In addition to the performance required from all state-owned enterprises, RNZ Limited is obligated to provide a range of programmes consistent with government social and cultural broadcasting objectives as set out for all broadcasters by the Broadcasting Act 1989.

New Zealand Public Radio. New Zealand Public Radio, Radio New Zealand Limited, has three divisions: National Radio, Concert FM and RNZ News and Current Affairs.

This is a non-commercial public radio service funded from a share of the Public Broadcasting Fee collected and allocated by NZ on Air. For the year ended June 1995 NZ Public Radio's income from this source was $19.4 million, with additional revenue coming from external sources amounting to approximately $6 million.

The principal services are National Radio and Concert FM. Public Radio also covers 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 which are broadcast through National Radio. The RNZ International short wave service is managed by Public Radio but funded by the Ministry of Foreign Affairs and Trade.

Powerful AM transmitters, formerly used for Concert Programme transmission, have been grouped to form an AM network broadcasting the proceedings of Parliament and extended sports coverage under contractual and statutory obligation.

Public Radio Museum pieces.

RNZ News—This division of New Zealand Public Radio gathers and broadcasts national news. It has specialist and general reporters attached to most RNZ Commercial stations, a central office in Wellington has reporters in the Parliamentary Press Gallery. International news is accessed through correspondents and 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 private sector broadcasting and non-broadcasting clients.

Radio New Zealand Commercial. The commercial activities of Radio New Zealand were split from RNZ Limited in 1992, and following a commercial restructuring and refocussing, Radio New Zealand Commercial (RNZC) became a fully stand-alone entity on December 1,1995. This process enabled RNZC to become a fully commercial organisation with a clear mission and customer focus. At the same time Government invited bids for the sale of RNZC.

The winning bidder, the New Zealand Radio Network consortium, was announced in April 1996 with a bid of $89 million. The sale was, at the time of writing, conditional on the outcome of further litigation regarding protection of the Maori language and Crown funding of Maori broadcasting.

RNZC is made up of 41 radio stations, The Radio Bureau, Stooges Production Studio and Radio New Zealand Sport. Its radio stations are heavily branded in name and format, for example, Newstalk ZB, Classic Hits, ZM and the community network of rural heartland stations. Services have been converted to FM, and some are broadcast on both FM and AM.

RNZC has a quarter of the commercial radio stations in New Zealand and earns 47 percent of the revenue, with an operating profit of $4.5 million in 1995. Revenue is earned largely through advertising, although cost containment, where it does not constrain competitive advantage, is an important factor.

A commercial network links most stations for national and international news and other programmes, such as talkback and sport.

The Radio Bureau—This is RNZC's one-stop-shop for advertising. It manages the sale and placement of radio advertising from advertising agencies and national clients for both RNZ stations and private stations. It represents virtually all radio stations in New Zealand.

Stooges Production Studio—This is a creative resource based in Wellington producing radio scripts and production for radio commercials and promotional trailers for all RNZ stations and private clients.

Private radio broadcasters. The Ministry of Commerce estimates there are now approximately 160 radio stations broadcasting separate programmes on a continuous basis, compared with 64 in 1988. Of these, approximately 120 are privately-owned, compared with 30 in 1988. New radio formats have emerged throughout the country, including ‘classic hits’, easy listening, country music and talkback stations. The Independent Broadcasters Association based in Auckland represents the private companies which operate independent radio stations. There are 63 members with stations in all metropolitan and provincial markets plus an additional 21 iwi stations. Stations include both locally operated and network operations. News and sports are provided by Independent Radio News (IRN), based in Auckland.

Non-commercial broadcasting. The Crown has reserved AM radio frequencies and UHF television frequencies throughout the country for use by non-commercial broadcasters. AM frequencies have been reserved in all communities with populations of 10,000 or more. Broadcasters may have access to reserved spectrum for non-profit community purposes. In each case, a licence is allocated upon application to an appropriate community organisation which is responsible for ensuring that all interested groups have access to airtime on the frequency. Use of reserved frequencies is restricted to non-profit activities.

Access radio stations. Access stations provide airtime on a non-profit basis to a range of minority groups in the community. At present there are nine access radio stations operating in New Zealand. All have been assisted in providing access to minority community groups by funding from NZ On Air. NZ On Air funding for access radio in 1994-95 was $1.4 million.

Newspapers and magazines

New Zealand has a high number of daily newspapers in relation to its population size. There are 28 daily newspapers (8 morning, 20 evening), down from 34 in 1986.

Of the eight morning dailies, the Auckland-based New Zealand Herald has the largest audited net circulation at 238,851 copies daily. The others have circulations ranging from 2,200 to about 100,000.

The majority of the country's daily papers are owned by two major publishing groups, Independent Newspapers Limited and Wilson and Horton Limited. Between them, these two groups now account for almost 90 percent of New Zealand's aggregate daily newspaper circulation of about 1 million copies daily. The previously dominant pattern of single family, or partnership, style of newspaper ownership survives only in some centres.

Daily newspapers are widely read. On a typical day more than 1.7 million New Zealanders over the age of 10 read a newspaper and New Zealanders spend approximately $5.3 million per week on their daily newspapers (including Sundays).

There are two Sunday newspapers, Sunday Star Times and Sunday News, both published by Independent Newspapers Limited and distributed nationwide.

Though its international agreements with Reuters, Australian Association Press (AAP) and other news organisations around the world, NZPA ensures that all New Zealanders are kept in touch with what is going on in the world around them.

Newspapers themselves also play a full role in international publishing and editorial organisations. Publishers are involved with the Pacific Area Newspaper Publishers Association (PANPA) based in Sydney, the International Newspaper Marketing Association (INMA) based in the USA and they are in regular contact with a multitude of other organisations and publishers throughout the world.

Newspapers are also involved from an editorial perspective with the Commonwealth Press Union (CPU) based in London. This commonwealth-wide organisation of journalists and publishers is actively involved in promoting and defending press freedom throughout the commonwealth by use of training, communications and advocacy.

A feature of newspaper publishing over the last 20 years has been the growth of community newspapers, most of them delivered free to all households in their recognised circulation area, although 10 have paid circulations. The New Zealand Community Newspapers Association has 112 members which between them publish over 2 million copies per issue. The great majority are tabloid, but six are broadsheet. Most are weekly, but about 31 are bi- or tri-weekly and four are fortnightly. Many of these community papers 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 2,300 magazines available in New Zealand on a regular basis. Of this number, 129 are listed with the New Zealand Audit Bureau of Circulations as being published in New Zealand or New Zealand editions. One hundred of these were audited in the period between January and June 1995. Fifty-six were published monthly, 22 were published alternate months, 10 were weeklies, 7 were quarterlies, 4 were fortnightly and 1 was ‘other’.

Table 11.2. MAGAZINE CIRCULATION*

PublicationCirculationPublished

* These figures cover magazines audited January-June 1995.

Source: Audit Bureau of Circulations.

AA Directions517,991Alternate months
TV Guide268,537Weekly
Woman's Day NZ221,086Weekly
Reader's Digest (NZ Edition)150,114Monthly
NZ Woman's Weekly132,520Weekly
Australian Woman's Weekly104,752Monthly
Computerworld Computer Buyer118,081Alternate months
NZ Listener106,457Weekly
Grapevine100,463Monthly
Farm Equipment News85,420Other
Agtrader85,406Monthly
New Idea83,597Weekly
Rural News81,960Fortnightly
NZ Gardener76,822Monthly
Tearaway75,216Monthly
Little Treasures64,835Monthly
Country Wide Rural Newspapers57,262Monthly
The Strip55,217Monthly
New Zealand Doctor51,813Fortnightly
Crosslink48,863Monthly
Next46,451Monthly
North & South41,319Monthly
Time New Zealand Edition40,993Weekly
NZ House & Garden38,782Monthly
Auckland Today36,457Alternate months
New Zealand Geographic35,112Quarterly
Cross Country31,537Monthly
Fashion Quarterly31,437Quarterly
NZ Home and Building30,570Alternate months
More29,282Monthly

Advertising

Advertising industry. Approximately 900 people are employed in advertising agencies, and 200 in advertising-related services. Advertising revenue also contributes to the employment of another 9,000 people in the publishing, radio and television industries.

At the end of March 1995, there were approximately 150 agencies, most of which (122) were New Zealand-owned, with 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 29 in 1995.

Mainstream media advertising for the year ended March 1995 was approximately $1.3 billion. Substantial additional money was spent on advertising using direct mail, telemarketing, display material, brochures and the like, although accurate estimates of this are not available. Expenditure in this category would certainly be in excess of $500 million. Forty-five percent of expenditure on media advertising was made through advertising agencies, with agencies placing around 80 percent of advertising on television, 60 percent in magazines, 20 percent on radio, 15 percent in newspapers and 20 percent of advertising through other media.

A 9.3m-wide satellite dish installed in Dunedin to beam in programmes from the BBC for Southern Television.

Table 11.3. MEDIA ADVERTISING 1995

MediumExpenditureShare

* Outdoor, cinema, telemarketing.

Source: Advertising Agencies' Association of New Zealand Inc.

 $(million)percent
Daily newspapers41232
Community newspapers1219
Television49038
Radio15612
Magazines1128
Other*151

Table 11.4. ADVERTISING EXPENDITURE BY INDUSTRY, 1994

IndustryExpenditure
Source: AGB McNair (rate card basis).
 $(million)
Retail328
Foodstuffs153
Leisure/travel/entertainment145
Agriculture/industry/office113
Household105
Investment/finance/banking88
Toiletries/cosmetics61
Automotive53
Beverages52
Pharmaceutical35

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 42 member agencies which collectively represent about 90 percent of agency billings in New Zealand. The Association of New Zealand Advertisers represents the interests of advertisers.

The industry has a self-regulatory system managed by the Advertising Standards Authority, and the Advertising Standards Complaints Board. The authority's function is to promulgate codes of practice and develop policies on advertising standards. The board's function is to adjudicate on complaints and advise the ASA on codes and public issues.

11.2 Telecommunications

Prior to 1987, Telecom had a monopoly on the provision of general telecommunication services. The Telecommunications Act 1987 ended this monopoly, requiring Telecom to allow integration of externally-produced equipment and services to its telecommunications network. Telecommunication services are now subject only to the constraints of general law, some rules relating to international services, and the need to obtain radio frequency licences, where required.

The deregulation of the telecommunications customer premises market was phased in over several years. Residential wiring and telex equipment was deregulated on 1 October 1987. Deregulation was extended to telephones on 1 May 1988, and PABX equipment on 1 April 1989.

Competition issues. Competition in the industry is developing from several sources. CLEAR Communications Limited has entered the market, offering domestic and international toll and leased line services. BellSouth Limited offers a GSM cellular service. Over 190 companies and individuals hold ‘Telepermits’, allowing them to supply equipment which can be attached to the Telecom network. An example of the choice which this promotes is in the Amps cellular mobile phones category, where there are currently some 180 product telepermits. There are numerous suppliers of services such as packet switching, pay phones and private networks.

In recent years, new services and technologies have been introduced into the telecommunications market. These include ISDN services for business users, video conferencing, interactive voice response systems, centrex and frame relay, all of which are now widely available. Some broadband services are also being trialed.

Competition in long-distance and international services has increased substantially since 1989. All New Zealand telephone customers now have access to an alternative long distance call service. CLEAR now provides an alternative 0800 freephone service, and industry participants are actively discussing how to implement 0800 number portability, although no specific timetable has been agreed to at this stage. Local loop connection is about to commence. CLEAR is planning to offer local telephone services in the central business districts of main centres early in 1996, based on a local access heads of agreement concluded with Telecom in September 1995.

Since 1987, the Government has introduced the following measures to support the new telecommunications regime:

  • In 1991, the Minister of Communications issued a policy statement reaffirming the Government's commitment to a competitive telecommunications environment. This statement noted the Government's expectation that telecommunications operators would act in good faith and provide interconnection on fair and reasonable terms, and reserved the option of further regulation, should this prove necessary.

  • The New Zealand Telecommunications Numbering Advisory group was established in 1992 to address issues relating to the allocation and management of telecommunications numbering.

  • In 1992, provision was made for joint briefing sessions to be provided to the Government at the request of telecommunications operators.

  • In August 1995, the Government issued a discussion paper on “Vertically Integrated Natural Monopolies,” the purpose of which was to seek submissions on whether there was a need to consider changes to the telecommunications regulatory environment in order to achieve the Government's objectives.

Telephone services. New Zealand continues to have a high telephone density, with 468 main lines per 1,000 people. The telephone network provides 1.593 million main lines. The network is one of the most advanced in the world, with 98 percent of customers served by digital exchanges. Customers connected to a digital exchange have access to an additional range of telephone services.

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, AUSSAT Pty Limited (the Australian satellite operation) Global One and Telstra offering services overseas.

Cellular and other mobile services, including paging and mobile radio, have developed rapidly. In 1987, Telecom began operating a cellular network based on the AMPS-B frequency. The network, which provides extensive land and mobile coverage, is currently available to 95 percent of the New Zealand population, with more than 10 percent of the population using mobile phones. Telecom began introducing a digital cellular network in 1992, after winning the AMPS-A frequency in open tender in 1990. BellSouth now offers a GSM cellular telephone service using the TACS-A band of radio spectrum and now has 90 percent population coverage. The fourth cellular frequency, TACS-B was won in open tender in 1993 by Telstra (formerly Telecom Australia), who have yet to introduce a service.

Digitalisation and the rapid installation of optical fibre cable throughout New Zealand continue to increase the networks capacity to carry voice, data and image transmission at extremely high volumes and speeds. Growing numbers of customers are using video conferencing services to link up with people in other places within New Zealand, and overseas. A new trans-Tasman optical fibre cable system (TASMAN 2) was commissioned in 1992. The PacRim East submarine cable from Auckland to Hawaii was completed in 1993. PacRim West, linking New Zealand with Asia, came into service in March 1995.

Significant new intelligent network platforms have been introduced into the network. These provide 0800 and 0900 services, wide area Centrex, automated calling card, virtual private networks, voice mail services and call answering facilities.

A new telecommunications service between New Zealand and Antarctica's Scott Base was introduced in January 1992. Using this service, Scott Base staff are able to connect to the Crown research institutes computer network in New Zealand, and through gateways from this network to international science and computing networks. Scientists based in New Zealand and other countries are able to monitor their Antarctic experiments, helping to manage them from many thousands of kilometres away. See section 11.4 for further discussion of international and national computer networks.

Telecom Corporation of New Zealand Limited. Telecom is the leading supplier of telecommunications services in New Zealand and operates one of the most technologically advanced communications networks in the world. The advanced digital network is the result of a $4.6 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 98 percent of the total number of lines are connected to digital exchanges and by 1998 all customers will be connected to these 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. Following a joint worldwide offering by Bell Atlantic and Ameritech in July 1991 and further sales in 1993, each of these US companies held 24.8 percent of the share capital in Telecom as at 31 March 1994.

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.

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 introduced on a number of major routes; the average national and international call price dropped 55 percent from March 1988 to June 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.

RESIDENTIAL TELEPHONE CHARGES
Average annual spending

Telecom intends to enter the online services market, initially as a supplier of network capacity to other service providers on the global Internet computer system. Ultimately, Telecom plans to become a supplier of Internet-based online services in its own right to its own residential and business customers.

CLEAR Communications Limited. In response to the deregulation of the New Zealand telecommunications industry, CLEAR 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 International. The total shareholder capital investment by all partners is in excess of $200 million.

CLEAR provides a full range of competitive toll, leased circuit and limited local network services. In an agreement reached with the Telecom Corporation of New Zealand Limited, CLEAR interconnects its long distance network to the Telecom local networks for the operation of these services. Leased circuit operations commenced in December 1990 and toll services in May 1991. CLEAR is expected to enter the local service market in the central business districts of Wellington and Auckland in 1996. CLEAR had over 30,000 toll customers within the first six months of operation and now has an estimated 23 percent of the national international toll markets with over 330,000 customers.

Subscribers can make both national and international toll calls through existing telephone equipment. No new numbers, special equipment or connections are required. CLEAR toll services are available throughout New Zealand.

CLEAR Communications has one of the world's most modern telecommunications networks, consisting of fibre optic cables, digital microwave radio facilities, a satellite earth-station and digital switches supplied by Northern Telecom of Canada.

CLEAR is a significant new employer in New Zealand with a current staff level of over 810 permanent staff located in offices in 12 cities throughout the country.

Telegrams. The inland and international telegram service is operated by the Telegram Company.

11.3 Postal services

The Postal Services Act 1987 gives New Zealand Post the sole right to carry standard letters up to 200 grams, unless more than 80 cents per item is charged. Under a ‘deed of understanding’ with the Government, New Zealand Post is required to meet certain social obligations such as charging a nationally uniform price for standard letters, maintaining a relationship between the price of the standard letter and movements in the Consumer Price Index, maintaining agreed delivery frequencies to a specified number of delivery points in New Zealand, and maintaining a minimum number of retail outlets.

The deed was originally established for a period of three years. It was rolled over in September 1992 for a transitional period of some months while the Government undertook a review of the letter post monopoly to determine whether increased competition should be permitted in letter post services. Following the decision to retain New Zealand Post's monopoly on the carriage of basic letters, the life of the deed was extended to 31 March 1995. In making this decision, it was noted that, while there were potential benefits in permitting open competition in letter services, there was public concern that the universal price-equalised service guaranteed by the monopoly might be at risk in a competitive environment. In the absence of clear agreement on measures to maintain service levels nationwide (and particularly to remote rural residents), the Government chose to retain New Zealand Post's statutory protection.

The right of New Zealand Post to charge for rural delivery services was challenged during 1992, when Federated Farmers took action in the High Court against New Zealand Post, following an increase in the rural delivery fee, from $40 to $80 in April 1992. While the deed of understanding guarantees delivery services at a specified frequency to rural residents (most receive six day a week delivery service), it does not include conditions about charging for the rural delivery service itself. Federated Farmers submitted that the stamp price should cover the full cost of delivery, that New Zealand Post did not have a legal basis for charging a rural delivery fee and that the company had breached contractual obligations to deliver mail as addressed by the sender. The High Court found against Federated Farmers. New Zealand Post abolished the fee on 1 April 1995.

New Zealand Post Limited

New Zealand Post Limited is a state-owned enterprise with the shares held by two ministers on behalf of the Crown—the Minister of State-Owned Enterprises and the Minister of Finance. The company's core activities are message communications in letters, distribution of courier and parcel items and financial transactions.

Apart from the conditions on products and services stipulated by the “deed of understanding” with the government, all other products and activities are subject to competitive markets.

On 2 October 1995 the price of standard letter postage was reduced from 45 cents to 40 cents. Rates for bulk medium-sized letter mail were also reduced for the third time in three years. The price reductions reflect the company's goal of passing on efficiency gains to customers.

The stamp designer with the six famous New Zealanders chosen by public response.

Table 11.5. POSTAL OUTLETS, 1995

As at 31 MarchNumber
Source: New Zealand Post.
Post Shops (including franchises)259
Post Centres705
Stamp resellers3,589
              Total4,553

Table 11.6. POSTAL DELIVERIES AND VOLUME OF ARTICLES POSTED

 Year ended 31 March
199319941995
Source: New Zealand Post.
Deliveries to—number
     Households1,036,1841,051,0211,079,290
Businesses—
     By delivery50,20555,72649,982
     By business and individual box and bag149,611145,990158,890

Table 11.7. 1995 STAMP ISSUES

DateIssueDenominations
Source: New Zealand Post.
25 JanuaryDefinitive—Butterflies$4.00, $5.00
22 FebruaryScenic—Night Lights45c, 80c, $1.00, $1.20, $1.50, $1.80
22 MarchGolf45c, 80c, $1.20, $1.80
 Environment Booklet10 × 45c stamps
3 MayADB & PBEC Conferences$1.00, $1.50
 Maori Language45c, 70c, 80c, $1.00, $1.50, $1.80
16 MayAmerica's Cup45c
21 JuneHealth50c, 85c
 Health miniature sheet$2.70
26 JulyRugby League Centenary45c, $1.00, $1.50, $1.80
 Rugby League miniature sheet$1.80
 Rugby League Booklet10 × 45c stamps
1 SeptemberChristmas45c, 70c, 80c, $1.00, $1.50, $1.80
 Farm Animals Booklet10 × 45c stamps
 Nuclear Free$1.00
2 OctoberMitre Peak40c
 Rate Decrease Booklet10 × 40c stamps
 Rate Decrease, Christmas40c
 Rate Decrease, Self-adhesive40c
 Famous New Zealanders40c, 80c, $1.00, $1.20, $1.50, $1.80
 50th Anniversary of United Nations$1.80
9 NovemberCHOGM40c, $1.80
 Christmas Booklet10 × 40c stamps

Inland postal services. Any postal item, from a letter to a parcel up to 20 kilograms, can be sent by ‘FastPost’ or by Post. FastPost targets next working day delivery between major towns and cities, with Post targeting next working day delivery across town, and two to three working days across New Zealand. Other services include Registered Post and Parcel Post. CourierPost offers Urgent, Overnight and Economy delivery services. CourierPost's Track and Trace service gives customers the ability to check on their item at any time from pick-up to delivery. New Zealand Post also provides discounts for bulk mail and handles unaddressed mail (circulars) and direct mail.

POSTAL ZONES
How long your mail takes by AirPost International

Postal volumes. For the year ended 31 March 1995, New Zealand Post carried 737,491,000 Post medium letters (1994: 707,603,000) and 16,226,000 FastPost medium letters (1994: 16,225,000).

Fibre-optic cable being laid under a railway line.

Overseas mail services. SeaPost, EconomyPost and AirPost International services are operated from New Zealand. CourierPost International offer money-back guaranteed, top priority delivery of letters, documents and parcels to over 120 countries. Other services include RegisteredPost International and International Business Reply.

Stamp issues. New Zealand Post's Stamp Business Unit produces 10 to 12 commemorative stamp issues each year and one to three definitive stamp issues. A variety of philatelic products are sold by mail order through the Philatelic Bureau at Wanganui, at philatelic sales centres and through Post Shops.

The retail network. New Zealand Post's retail network consists of 259 company-owned and franchised Post Shops with postal services available at a further 705 Post Centres. Stamps and stamp booklets are available at a further 3,589 outlets.

Financial transaction services including motor registration and bill payment services are available at all Post Shops through the sophisticated PostLink Computer System.

Some 650,000 customers are served every week in Post Shops throughout the country.

Recent performance. In the 1994-95 financial year New Zealand Post made a profit of $72 million after tax. A turnover of $644.3 million was recorded for the year.

11.4 Information technology

New Zealand has a very competitive information technology (IT) market, with a range of equipment and software companies suppling an avid domestic market and niche export markets overseas. New Zealanders are enthusiastic early adopters of new technologies: the rapid take-up of mobile cellular phones is an example. New Zealand has one of the quickest take up rates in the world. Although the penetration of personal computers (PCs) into homes is still relatively low, just 18.6 percent of New Zealand homes had a PC in 1994 compared with 25 percent of US homes, the computer in the workplace, as a learning tool, and as an entertainment source is gaining rapid acceptance.

The Communications Division of the Ministry of Commerce is responsible for providing policy advice to the Government on information technology, telecommunications, broadcasting and the radio spectrum. It also manages the radio spectrum and carries out regulatory functions relating to communications. Thus all aspects of information technology convergence are dealt with in the same division. The Minister of Communications also holds the portfolios of information technology and broadcasting.

IT Policy Unit. The IT Policy Unit was set up in the Ministry of Commerce's Communications Division in July 1993 to provide policy advice to the Minister for Information Technology and to government on information technology issues as they affect the economy and society. The unit also monitors overseas trends in technology policy and technology developments. Additionally, the unit acts as a point of contact for the IT industry with government and provides support for the Information Technology Advisory Group (ITAG) and the Interdepartmental Committee on Information Technology (ICIT).

ITAG is a 10 member group of representatives from the leading private sector IT organisations in New Zealand. It was established by the Minister for Information Technology in September 1993. ITAG's role is to provide advice to the minister on issues relating to the Government's economic policy making role from a supplier and user perspective. It is also charged with acting as an interface between the IT industry and government and with developing a medium to long term strategy for IT in New Zealand.

ICIT's function is to advise the government on issues relating to the government's role as a purchaser and user of IT equipment. As government departments are autonomous and chief executives responsible for all purchase decisions, ICIT's role is concerned with any issues crossing departmental boundaries. It comprises a main committee of six representatives of government agencies and three sub-committees dealing with purchasing, standards and inter-connectivity, and information management. It reports to the Minister of State Services.

Information technology industry. The IT industry employs approximately 4 percent of the working population of New Zealand and accounts for approximately 2–3 percent of GDP. It earns probably in excess of $200 million in exports.

IT is rapidly becoming more important to the business community of New Zealand than the transport system. Business life without the telephone or the computer would virtually be impossible. Deregulation and increased competition in the telecommunications sector has seen massive improvements in the services provided to New Zealand business. New Zealand now has one of the best telecommunications infrastructures in the world.

This has meant that distance is no longer the barrier it used to be to exporters or importers. The speed and volume of available information is opening up new markets world-wide in every sector, but at the same time, it is also opening up our markets to the world.

Internet. The Internet may be one of the most important information technology tools reshaping the worlds of commerce, politics and social interaction. The Internet provides access to vast quantities of information and gives freedom in finding it. It has gateways into most parts of the world, linking about 6.6 million host computers. The Internet's attraction is the wealth of information that is available, particularly scientific and technical information, but also latest events, news and sports, documented as soon as they happen, as well as debates and discussions on any and every subject, tours (of cities, institutions and universities) and much governmental information, particularly from and about the United States Government.

In New Zealand, the Internet has grown from just a few users in the scientific and research communities in 1990 to an estimated 80,000 users in 1995. In the four-year period July 1991 to July 1995, the number of Internet hosts grew from 1,193 to 43,864—a staggering 3,577 percent increase. In the same period, the worldwide number of hosts increased by a mere 1,141 percent. This growth is mainly fuelled from commercial organisations with domain registrations growing at 18 percent compounding per month as at November 1995.

Since November 1994, the government has had a presence on the World Wide Web (WWW), using a server based at the Victoria University of Wellington. The server contains information covering the New Zealand constitution, politics and government departments. On an average day the number of accesses equals 2,000 and on days when details with a high level of interest are posted (eg, Radiocommunications Act review), the number of accesses can rise to over 4,000.

The commerce home page is www.govt.nz/ps/min/com. The government home page is www.govt.nz/govt.

Education. IT has been slowly infiltrating the classroom over the last two decades. However, interactive educational software is proving to be the aid that turns the computer into the high technology learning tool it has always promised to be. Schools around the world are finding this type of software makes mastering the basics fun, and at a higher level provides realistic simulations that help teach complex topics and strengthen students' problem-solving skills. The computer's attractiveness for teaching is being reinforced as digital electronics and high speed links provide a growing number of schools with electronic access to libraries and universities and to other schools. Schools across the country and around the world are connecting with each other, so students can learn about life in other regions.

In Europe the impact of computers on the educational process has been widely demonstrated. In the educational use of computers, the British are leaders in IT innovation, both in the amount of equipment used and the use to which it is put. It is not unusual for leading British secondary schools to spend up to £300,000 each year on IT. This emphasis is having two beneficial effects. Firstly, students are taught the sort of thinking processes required to use spreadsheets, word processors and other software packages, making for a potentially more productive workforce. Secondly, computers are giving a big boost to learning in general, eg the use of word processors in English has helped pupils with writing. Additionally, schools that have invested in IT are believed to have a lower truancy rate because of the technology's ability to enliven otherwise routine lessons.

In New Zealand there has been rapid growth in the numbers and use of computers in schools since 1985. In 1989, most schools had at most one computer for every 20 pupils. In 1994 this ratio had improved to about one computer per 16 pupils. However, in the absence of a specified statement on computers, a wide, ad hoc range of computing activities and hardware has been installed in schools. The range of makes, models and software installed has in the past made it difficult to prepare teachers to teach students to use these computers. In general, teacher knowledge of computers has been self taught. However, teachers are increasing their computer knowledge, and the number of teachers who can, and do use computers in school is increasing.

The Ministry of Education is currently engaged in a number of IT initiatives, including the draft technology curriculum, which will increase the use of information technology in the classroom. Key among these is teacher training in IT. In 1996 the Ministry of Education will be spending $1.9 million covering 6 professional development programs for approximately 1,400 teachers. Additionally, in conjunction with the Ministry of Commerce and ITAG, an IT strategic plan has been developed for, and distributed to, all schools.

Health. Long distances are also expected to be a key focus of IT in health care. IT is expected to have a profound effect on the way people receive and manage their medical care in the future. As well as enabling health care professionals and hospitals to share life-saving information instantaneously, treatment over long distances (or tele-medicine) is expected to become much more widespread. Long distance treatment enables any number of specialists anywhere in the world to be consulted before a diagnosis is made.

Trials of such tele-medicine have already occurred in New Zealand. Health Waikato, the Hamilton based Crown health enterprise, has run an initial trial of diagnosis by video involving long distance psychiatric consultation and assessment enabled Hamilton doctors to diagnose Waikato and King Country patients. Health Waikato has investigated the feasibility of such a service further and believes it will mean specialists are able to see more patients than usual and so more efficiently use their funding. The service works by linking the specialist to the patient's local doctor's practice. The specialist consults with the patient via a video link and can carry out some diagnostic checks via a range of instruments handled by the GP which, through computer technology, relay the information to the specialist.

Operation of these tele-medicine services means specialists are able to cut down on the long hours of travelling required to attend clinics in other centres. Rural patients will also no longer have to travel long distance to see the specialists based in Hamilton. With its telemedicine service, Health Waikato believes it will get around the problem of ensuring people in isolated rural areas will have the same access to health services as city dwellers do.

The Telecommunications Users Association of NZ Inc. (TUANZ) is committed to accessing and providing information on technology and telecommunications for over 450 members who come from a wide range of organisations including; major corporates, government organisations, industry representatives, educational institutions, large and small businesses and individuals.

TUANZ vision:

  • To give members real choice in all telecommunications products and services.

  • The market will be shaped primarily through effective and efficient competition, with government-imposed controls only where necessary to ensure that the fundamental environment is capable of stimulating and supporting competition.

  • Telecommunications will be used to New Zealand's competitive advantage internationally, both directly and indirectly.

  • New Zealand will be recognised through the outstanding success of its industry model.

Members receive a monthly magazine (TUANZ TOPICS) and can attend regular seminars and/or an annual conference and exhibition. Other events include a World Wide Web design competition and designer's workshop which will include international presenters who are specialists in Web page design and implementation. Other seminars planned in 1996 include information on developments in computer telephony integration, cabling and mobile communications. Five scholarships of $1,000 and one of $5,000 are also made available each year.

TUANZ TOPICS reports on developments locally and internationally. It includes input from TUANZ's special interest groups; Interactive New Zealand, InterOp and New Zealand Electronic Commerce. A recent article, for example, covered the use of technology in education with comment from the Minister of Education.

  • Interactive New Zealand—the multimedia group of TUANZ, is involved in developing a vibrant industry and has very close links to the Australian industry. This enables a mutually beneficial exchange of information and expertise to take place.

  • InterOp New Zealand—the Enterprise Network Group of TUANZ concentrates on issues of interoperability, local and wide area networking. The ATM interest group is part of InterOp focusing on providing information on ATM (Asynchronous Transfer Mode) to members through the International ATM forum, seminars and newsletters.

  • New Zealand Electronic Commerce—(NZEC) recognises that process automation technologies, and particularly telephone-based computing solutions are “tools of business”.

Representation of users' viewpoints to government and telecommunications suppliers has been TUANZ's role since its beginnings in 1986. That role has become increasingly important since deregulation. As the community recognises the very big role telecommunications and technology plays in business and recreational activity, access to an organisation that can keep members up-to-date on developments becomes important. TUANZ's role is to meet that requirement.

Contributors

  • 11.1 Ministry of Commerce; NZ On Air; Broadcasting Standards Authority; Independent Broadcasting Association; Television New Zealand; TV3 Network Services Limited; Sky Television; Saturn Communications; BCL; Radio New Zealand Limited; Newspapers Associated; New Zealand Press Council; New Zealand Audit Bureau of Circulations; Advertising Agencies Association.

  • 11.2 Ministry of Commerce; Telecom Corporation of New Zealand Limited; CLEAR Communications Limited.

  • 11.3 Ministry of Commerce; New Zealand Post Limited.

  • 11.4 Ministry of Commerce; Telecommunications Users Association of NZ Inc.

Special articles

Television New Zealand; Ministry of Commerce; Te Māngai Pāho; New Zealand Press Council; New Zealand Post.

Further information

Mass media

Annual Report of the Ministry of Commerce (Parl paper G46).

Annual Report of the Broadcasting Standards Authority.

Annual Report of Television New Zealand Limited.

Annual Report of TV3 Network Services.

Annual Report of Radio New Zealand Limited.

Annual Report of NZ On Air.

Summary of Circulations, New Zealand Audit Bureau of Circulations (bi-annual).

Telecommunications

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 G14).

Report of the Ministry of Commerce (Parl paper G46).

Annual Report of CLEAR Communications Limited.

Postal services

Annual Report of New Zealand Post Limited.

Report of the Ministry of Commerce (Parl paper G46).

Chapter 12. Arts

Banner uses medical image for Dunedin's art gallery transfer.

12.1 Fostering the arts

In New Zealand, as in most other countries, both 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. Central agencies charged with assisting the development of New Zealand culture are: Creative New Zealand; 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.

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 Dictionary of New Zealand Biography, National Archives and the Historical Branch.

The Ministry of Cultural Affairs, established in 1991, provides advice 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's main functions are providing:

  • Policy advice: reviewing cultural sector legislation, advising on cultural policy issues, developing policy proposals and initiating projects, investigations and studies which have significance to the cultural sector.

  • Services to the Minister of Cultural Affairs: preparation of replies to ministerial correspondence and general services which assist the minister in meeting his portfolio obligations.

  • Administration of payments to cultural sector organisations: management and disbursement of payments on behalf of the Crown to the five cultural sector organisations and the monitoring of the Government's investment in these agencies.

The ministry administers the Government's funding contributions to the following cultural sector organisations: New Zealand Film Commission; Museum of New Zealand Te Papa Tongarewa; Creative New Zealand; New Zealand Symphony Orchestra; and New Zealand Film Archive.

Table 12.1. GRANTS TO THE ARTS AND CULTURAL HERITAGE SECTOR, 1994-95

GroupGovernment fundingLottery grant*

* Does not include GST

Source: Ministry of Cultural Affairs; Lottery Grants Board; Historic Places Trust; Department of Internal Affairs.

 $(000)
Museum of New Zealand77,8761,250
Creative New Zealand3,80718,950
New Zealand Film Commission1,0007,995
New Zealand Film Archive86615
New Zealand Historic Places Trust1,7901,775
Antiquities Act costs21-
Lottery community facilities-11,300
National Archives8,996-
Dictionary of New Zealand Biography847-
New Zealand Symphony Orchestra7,990-
Historical Branch (Internal Affairs)979-
Ministry of Cultural Affairs1,485-

Indemnification. The ministry administers the government indemnification scheme for touring exhibitions. Under this scheme, the government assists museums in presenting significant exhibitions to the New Zealand public. The government indemnifies touring exhibitions by accepting a substantial proportion of the risk inherent in presenting them. In 1994-95, Queen's Pictures at the Museum of New Zealand Te Papa Tongarewa, and Paul Gauguin: Pages from the Pacific and An Older Richer Cousin: Masterpieces of Australian Painting, both at the Auckland City Art Gallery, were indemnified under this scheme.

Witches from Macbeth, part of a university summer Shakespeare production, perform in front of an exhibition from the university's art collection.

New Zealand Framework for Cultural Statistics. The ministry has been working with Statistics New Zealand on a major project designed to improve the quality of New Zealand's cultural statistics. The publication of the New Zealand Framework for Cultural Statistics in 1995 provided the first comprehensive list of New Zealand's cultural activities, described the major components of the cultural sector, and specified statistics that are required by users of cultural data. It was followed up by New Zealand Cultural Statistics 1995, the first release of statistical data based on the Framework.

Creative New Zealand

Creative New Zealand is the trading name for the Arts Council of New Zealand Toi Aotearoa. The new name and identity were adopted in 1995 to give higher recognition of, and greater priority to, the unique creativity of New Zealand's artists.

The purpose of the organisation is summed up in its vision: Culturally vibrant and creative communities—Nga toi toiri a te opurenga tangata and in its mission: To foster the arts in New Zealand—Te whakatairanga i nga toi i Aotearoa.

Creative New Zealand is required, by the legislation under which it is established, to recognise this country's cultural diversity, the role in the arts of Maori as tangata whenua, and the arts of the Pacific Island peoples of New Zealand. It must also recognise and uphold the principles of participation, access, excellence and innovation, professionalism and advocacy.

Creative New Zealand has a council, two boards—The Arts Board and a Maori arts board: Te Waka Toi—and a Pacific Islands Arts Committee, as well as a professional staff. The two boards are responsible for the delivery of funding to the arts, within a policy framework set by the seven-member council. Te Waka Toi is responsible for those objectives of the council which are “for Maori by Maori” and aimed at maintaining, developing and promoting Maori Arts. The Arts Board has a similar role for all other New Zealanders. The Pacific Islands Arts Committee focuses on advice and programmes to promote and maintain Pacific Islands' arts and cultures in New Zealand.

The two boards may establish Community Arts Councils, of which there are at present 102 throughout New Zealand.

Funded by the New Zealand Lottery Grants Board and the Government, Creative New Zealand allocated $21.81 million in arts grants in 1994-95. Grants are made under 11 specific objectives such as arts in the community, international arts promotion, Maori arts development, Pacific Islands arts development, and professional development.

Applications are received and processed in two funding rounds a year. As funding is limited and demand always outstrips supply, assessment is rigorous and involves the use of external peers who advise the boards.

Creative New Zealand has committed itself to increasing its funding by 50 percent over three years to $35 million. It hopes to achieve this through the development of partnerships with the corporate world, local authorities and the government sector.

Creative New Zealand also administers a number of special funds, awards and scholarships such as the Creative Film and Video Fund, the Katherine Mansfield memorial fellowship and the TeWaka Toi Award. Some are administered in partnership with other organisations.

Under the Creative Communities New Zealand scheme, local authorities assume responsibility for distributing Creative New Zealand funds to applicants from within their communities. All 74 territorial local authorities in New Zealand are partners in the scheme, and will distribute a total of $2,312,000 (68c per head of population) in 1995-96.

The poster image for the Royal New Zealand Ballet's production of The Rite of Spring, photographed near Waiouru.

New Zealand Symphony Orchestra

The New Zealand Symphony Orchestra (NZSO) celebrates its 50th anniversary during 1996. It was formed in 1946 when the call for a professional New Zealand orchestra was an important factor during the country's post-World War II nation-building period. It is now an orchestra of international standard, and attracts prominent international artists and conductors. It is based in Wellington and performs regularly in centres throughout New Zealand, its 50,000 kms ‘on the road’ each year making it one of the world's most travelled orchestras.

Until 1988 the orchestra was part of the Broadcasting Corporation of New Zealand. Since then it has been an independent Crown-owned Entity with a board of directors appointed by the government. As a national orchestra it receives funding support from the Ministry of Cultural Affairs.

The NZSO numbers 89 players drawn from the international pool of musicians and has an administration of 20. The orchestra gives over 100 concerts each year and, as well as presenting subscription series of major symphonic repertoire in six centres, performs light music, outdoor concerts, pops, special concerts for families and schools, opera and ballet, television and radio broadcasts, and has a commitment to commercial recordings. New concepts such as the late morning Tea & Symphony concerts and outdoor events like Lotto's Twilight Opera at Wellington's Basin Reserve have brought in a wider audience. The orchestra also commissions, performs and records works by New Zealand composers and, in 1995, set up the NZSO New Zealand Music Panel whose aim is to encourage, assess and commission works by New Zealanders.

The NZSO has made three overseas visits to date—to Australia in 1974, Hong Kong in 1980, and to Expo92 in Seville when it performed an outstandingly successful concert with Dame Kiri Te Kanawa and then Chief Conductor Franz-Paul Decker as part of the New Zealand Day celebrations.

The orchestra has a long local recording history and, with the release in 1989 of its first commercial CD featuring the works of Samuel Barber, moved into the world market. This CD appeared on the American Billboard charts and was nominated for an international award. Successive recordings have drawn favourable reviews internationally and the recent recording of New Zealand's leading composer, Douglas Lilburn's Three Symphonies, was listed in the 1994 Gramophone Critics' Choice section.

The Concertmaster of the NZSO is Wilma Smith, appointed in 1993, the fifth concertmaster in the orchestra's history and the first woman.

The annually awarded Lexus Bursary gives one permanent member of the orchestra the opportunity to study overseas for six months on full pay. The 1995 recipient, Principal Percussionist Bruce McKinnon, is studying percussion section management and teaching methods with colleagues in Liverpool, Manchester and New York.

Royal New Zealand Ballet

The Royal New Zealand Ballet is one of New Zealand's largest performing arts organisations. Governed by a five-member Board of Trustees, the company, on average, comprises 26 permanent dancers and 28 people in artistic support, production, marketing and management.

In 1993 The Royal New Zealand Ballet celebrated its 40th anniversary. It is the oldest professional dance company in Australasia and one of just five ballet companies upon whom the ‘Royal’ title has been bestowed by the British Monarchy.

With a strong classical base but a healthy attitude towards innovation, the company is increasingly performing New Zealand ballets and master-works from the late 20th century in addition to classics from the 19th and 20th centuries.

The Royal New Zealand Ballet tours New Zealand more extensively and more frequently than any other major performing arts organisation and has the largest audience of any resident arts company—about 140,000 annually. Just over half the company's funding comes from box office sales, with the rest from Lottery Grant, government vote, and sponsorship.

In 1995 the company performed in Wellington, Auckland, Christchurch, Dunedin, Hamilton, Napier, Palmerston North, New Plymouth and Invercargill. It has toured the USA three times, Europe twice, has visited Japan, Fiji and China, and is a frequent visitor to Australia.

In October 1995 The Royal New Zealand Ballet appointed a new Artistic Director.

Founded in 1950, Chamber Music New Zealand is the major presenter of chamber music concerts in the country, bringing the finest international and New Zealand artists to its audiences. Concert series are presented in nine major centres, and further concerts are placed on a second network of 24 smaller cities and towns. In 1995 a total of 124 concerts was presented.

Chamber Music New Zealand's income comes from concert ticket sales, sponsorship and Creative New Zealand.

Chamber Music New Zealand has a strong commitment to develop New Zealand chamber music ensembles and provide work for New Zealand musicians and composers. The company established the New Zealand String Quartet in 1987, which is a full-time professional string quartet now developing an international reputation. The quartet is employed and managed by a separate organisation, the New Zealand String Quartet Trust. A composer residency is offered when funding is available.

Learning programmes are run in schools as part of audience development. A chamber music contest for secondary school students, sponsored by Westpac Banking Corporation, has been a focus of schools' musical calendars for over 30 years, and has seen many of New Zealand's finest musicians' names on the entry forms. Instrumental Performance and Composition sections are offered. In 1995 the contest attracted 400 group entries representing 1,600 students.

Committed to the performance of contemporary works, Chamber Music New Zealand presented the highly successful Earthshine concerts of New Zealand and international contemporary music in 1994. This was followed in 1995 by performances of the complete string quartets of Béla Bartók, to mark the 50th anniversary of the composer's death.

The New Zealand Choral Federation: Te Kotahitanga Manu Reo o Aotearoa, has 125 community, chamber, youth, cathedral, church, school and children's choirs among its members. The NZCF, whose Maori name means “the assembly of the chorus of birds of New Zealand,” aims to promote choral music in all its forms and to ensure that the experience of singing in a group is available to all New Zealanders. Its long-term goal is to develop a unique New Zealand ‘voice’, a distinctive choral sound which amalgamates the singing traditions of Maori, Polynesian and western music.

Formed in 1985, with 10 regional committees throughout the country, NZCF provides advisory and information services on all choral matters, and is the link to the International Federation for Choral Music.

Successful choral groups associated with the NZCF include the National Youth Choir (winner of the Silver Rosebowl in the 1992 Let the People Sing international competition, and twice invited to represent New Zealand at the World Choral Symposium); the New Zealand Secondary Students' Choir which has won Pacific Basin Choral Festival awards; and the Auckland Youth Choir which won the Supreme Award at the 1994 Melbourne International Festival of Choirs.

The NZCF organises the annual Smokefree Secondary Schools Choral Festival, with nine regional events culminating in a national finale. In 1995, 199 secondary schools and over 6,200 students took part; 19 school choirs attended the finale in Christchurch. The New Zealand Festival of Youth Choirs was held for the first time, in Christchurch, in 1995. The three-yearly Sing Aotearoa festival is a multicultural, multi-art festival weekend bringing together singers, writers, composers and dancers.

NZCF publishes Breve bi-monthly and has published books on singing and choral direction.

New Zealand Film Commission

The mission of the Film Commission (Te Tumu Whakaata Taonga) is to sustain a vibrant, innovative and culturally-relevant film industry in New Zealand.

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 support to a considerable number of film projects, both for development and for production. In the 17 years since the commission was established more than 50 features and more than 130 shorts have been made with commission funding.

A Beethoven fan—taking it under the chin.

Copyright

Copyright comes into existence automatically upon the completion of any original literary, dramatic, musical, or artistic work, including photographs. No registration is necessary, nor is any other formality required for securing copyright protection. Copyright also exists in New Zealand for sound recordings, cinematograph films, broadcasts, and published editions (typography) of literary, dramatic, and musical works.

Copyright in literary, dramatic, musical, and artistic works (except photographs) continues until 50 years after the author's death, if the works are published in the author's lifetime, and until 50 years after publication or 75 years after death (whichever is shorter) if they are unpublished at the death of the author. Copyright of photographs, sound recordings, cinematograph films, and broadcasts continues until 50 years after the making, and in editions until 25 years after publication.

Copyright in New Zealand of literary, dramatic, musical, and artistic works and of cinematograph films extends to all countries which are parties to the International Convention for the Protection of Literary and Artistic Works (Berne Copyright Union) and to all countries which are parties to the Universal Copyright Convention. New Zealand is a party to both these conventions. New Zealand has also acceded to the Convention for the Protection of Producers of Phonograms Against Unauthorised Duplication of their Phonograms. In New Zealand certain disputes relating to performing rights of copyright works, sound recordings or films may be determined by the Copyright Tribunal.

Censorship

The Films, Videos and Publications Act Classification 1993 unites censorship provisions for all media under a single consistent regime. The act defines a ‘publication’ as:

  1. film, book, sound recording, picture, newspaper, photograph, photographic negative, photographic plate, or photographic slide:

  2. Any print or writing:

  3. Any print or other thing—

    1. That has printed on it, or otherwise shown upon it, any word, statement, sign or representation; or

    2. On which is recorded or stored any information that, by the use of computer or other electronic device, is capable of being reproduced or shown as any word, statement, sign, or representation:'

Film is further defined as ‘a cinematographic film, video recordings, and any other material record of visual moving images.’

Administration. The act came into force on 1 October 1994 and replaced the existing censorship bodies with:

Maori women working with woven flax and embroidering European wool to make a work called whanaungatanga.

Industry Labelling Body—an industry-based group, including at least one community representative, responsible for issuing labels for films and videos which would not be classified as restricted or objectionable, it is guided by classifications assigned by overseas bodies. Ratings are consumer guides only and do not carry legal sanctions. If a film is likely to be restricted or objectionable, or if the body is having difficulty assigning a rating, the film must be referred to the Office of Film and Literature Classifications.

Office of Film and Literature Classifications—classifies material from all media that is likely to be restricted or objectionable, and has jurisdiction over advertising material in respect of films. It is a stand-alone Crown entity made up of a chief censor, a deputy chief censor and a number of classification officers. The chief censor and deputy chief censor are appointed by the Governor-General on the recommendation of the Minister of Internal Affairs with the agreement of the ministers of women's affairs and justice. Films may be submitted to the office by the Labelling Body (on behalf of distributors), the Secretary for Internal Affairs, the Comptroller of Customs or by any other person with the leave of the chief censor. The same groups may submit publications other than film. The Chief Censor can also ‘call in’ publications where they deem it necessary. Classifications assigned by the office are legally enforceable. The act makes the possession of banned (that is, objectionable) material illegal for the first time.

A curator at the Museum of New Zealand Te Papa Tongarewa with a disintegrating Maori cloak.

Film and Literature Board of Review—made up of members of the public appointed by the Governor-General on the recommendation of the Minister of Internal Affairs, with the concurrence of the ministers of Justice and Women's Affairs. The act entitles the original applicant, the owner, maker, publisher or authorised distributor, or any other person given leave by the Secretary for Internal Affairs, to submit a publication to the board for a review of its classification.

Classification. There are three general levels of classification under the 1993 act: unrestricted, restricted and objectionable. Within these parameters, the censorship bodies have a wide degree of latitude to restrict material to different age groups, special interest groups and commercial outlets.

Material is considered objectionable if it ‘describes, depicts, expresses or otherwise deals with matters such as sex, horror, crime, cruelty, or violence in such a manner that the availability of the publications is likely to be injurious to the public good’. Under the 1993 act, possession of objectionable material, whether or not it has been declared objectionable by the Office of Film and Literature Classification, is a criminal offence.

Following classification, films are labelled according to a ‘traffic light’ system: green for unrestricted; yellow for unrestricted films recommended for a certain age; and red labels for restricted material.

Publications other than film are not required to be labelled unless they are classified. Publishers of magazines and books are therefore not required to submit their products to the office, but if they are later found to be objectionable after it has been made available, then the publishers and distributors may be prosecuted.

12.2 The national collection

Art galleries and museums

There are approximately 600 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 many, 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.

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 new museum is being built on Wellington's harbour waterfront. The roof was topped off in September 1995; the new building will open in February 1998 with space and facilities to care for and develop the national collections into the future.

The museum holds 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 Hector Library is New Zealand's most comprehensive resource for students of systematic biology, ethnology and early European exploration of the region. It also 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.

The oldest surviving New Zealand-made movie, starring mounted troopers destined for the Boer War, being restored at the Film Archive.

Historic places

New Zealand Historic Places Trust: Pouhere Taonga. The country's leading heritage agency, the New Zealand Historic Places Trust is responsible for promoting the identification, protection, preservation and conservation of the historical and cultural heritage of New Zealand. This includes both Maori and European buildings and sites, historic areas, Maori traditional sites including wahi tapu (sites sacred to Maori) and archaeological sites.

One of the trust's key tasks is to maintain and add to a register of historic places, established by the Historic Places Act 1993. The trust monitors any development proposals for properties or sites listed on the register and is able to offer heritage advice to owners and developers. An important aspect of this work is liaising with territorial authorities to help them identify and protect historic places and sites in their region.

Previously the trust operated a four-fold classification system of historic buildings. Under the new act, the trust has scope to cover other sites of historical significance, including historic areas, wahi tapu and wahi tapu areas. As a result, the trust is able to present a much wider and more representative model of New Zealand history from first settlement. The new historic places categories are defined as follows:

  • Category I Places of special or outstanding historical or cultural heritage significance or value.

  • Category II Places of historic or cultural significance or value.

Historic areas, wahi tapu and wahi tapu areas are included on the register, but are not categorised as Category I or Category II.

The trust owns or manages 56 properties throughout the country, ranging from Pompallier, New Zealand's oldest surviving industrial building in the Bay of Islands, to the Southland Provincial Council Building in Invercargill. A number of properties are open to the public, including Pompallier, which re-opened in December 1993 following a three-year major conservation project. Built by French Marist missionaries as a printery and storehouse in 1841-42, the building now operates as a working museum, complete with printery, tannery and bookbindery.

The functions of the trust's recently-formed Maori Heritage Council includes ensuring the protection of wahi tapu, wahi tapu areas and historic places and areas of Maori interest. The trust teaches hands-on heritage conservation to marae communities throughout the country and also holds responsibility for all archaeological sites in New Zealand. The trust's Maori name, Pouhere Taonga, means ‘pillar that binds all treasures.’

Public interest in the activities of the trust is generated and maintained by plaques and noticeboards at many historic sites, together with a series of publications, including books, leaflets, newsletters and the magazine New Zealand Historic Places, issued bi-monthly.

The staff of the trust, including curators and those employed in regional offices in Auckland, Hamilton, Wellington, Christchurch and Dunedin, are supported by more than 32,000 volunteer members.

Protection of antiquities and archaeological and traditional sites. There are a number of legal provisions to protect items and sites of historical and cultural 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 cultural 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.

New Zealand Film Archive

The New Zealand Film Archive: Nga Kaitiaki O Nga Taonga Whitiahua, was established in 1981 to acquire, preserve and make permanently available for research, study and public screening a national collection of film and television materials of artistic, social and historic value. The archive is a charitable trust—not a government body—with a board of trustees selected to represent community, Maori, film and archival interests. Income is derived from the Lottery Grants Board, New Zealand Film Commission, the Ministry of Arts and Culture and NZ On Air, sponsorship and commercial activity.

The collection includes New Zealand and overseas films dating from 1896 to the present day and incorporates documentaries, feature films, shorts, animation, newsreels, television programmes, advertisements and home movies. A wide variety of promotional, critical and historical documentation is held. Film reference books, periodicals, stills, posters, publicity, designs, unpublished scripts, special collections, clippings, production files and equipment are available for research.

As part of the acquisition programme the archive operates a nationwide Last Film Search, sponsored by the Bank of New Zealand. Two regional searches each year collect film materials of national significance, the primary aim being to locate any surviving film shot on nitrate stock. Nitrate begins an irreversible process of decay from the time it is manufactured and has an unpredictable life span of 30 to 70 years. To date, six searches have been conducted and more than 2,500 films collected.

Art on a Putaruru pavement.

In August 1995 phase three of the Film Archive's building programme was completed with the opening of the Film Centre. The Film Centre increases public access to the archive's collections through its screening and exhibition programmes. The permanent exhibition Tracking Time: Takes on New Zealanders and film tells the story of one hundred years of film in New Zealand. Changing exhibitions are also held. Number 8/Super 8 featured amateur and home movies from the archive's collections and From Hollywood to Huntly displayed images from the Keri de Carlo collection of Hollywood portraits. Daily screenings feature film programmes such as Treasures/Nga Taonga: Silent Cinema and Hot Shots! 15 New Zealand feature film trailers. The Film Centre also offers tailored screenings for education, community, iwi and special interest groups.

The archive also draws on the collections of overseas colleagues in FIAF (Federation Internationale des Archives du Film) for screenings of rarely-seen films. New Zealand celebrated the international centenary of film in 1995 with special screenings of Lumiere films, the first films ever made; a magic lantern slide show; and a screening of a 1915 serial Les Vampires. Celebrations will continue in New Zealand during 1996, one hundred years after the first screening of moving pictures at the Opera House in Auckland on 13 October 1896.

National Archives

National Archives: Te Whare Tohu Tuhituhinga o Aotearoa, is the country's largest repository of unpublished information on the history and development of New Zealand. It holds about 60,000 linear metres of paper documents, plus 550,000 maps and plans, large collections of films, videos, photographs, art works, posters, microfilms and objects. This wide variety of archives document the social, political, economic, scientific, military, legal, technical and administrative development of the country. Archives are the raw material for the history of New Zealand.

The records held by National Archives are those created by central government. Archival documents represent the memory of government because they provide evidence of its functions, policies, transactions, decisions and areas of responsibility. Because of the high degree of involvement by government in the affairs of its citizens, much information available from National Archives concerns the lives of the people of New Zealand going back to the 1840s and earlier. For that reason National Archives is particularly popular with people doing family research or local histories.

The Chief Archivist has the sole statutory authority over the disposal and destruction of all government records. Only those records which are deemed to have permanent informational value are selected by appraisal archivists for preservation as part of the country's documentary heritage. They are transferred to National Archives where finding aids are prepared that enable researchers to access the information in the reference reading rooms. All documents held at National Archives are available for public inspection without charge, unless a department has directed that access to its records be restricted.

Since archives continue to relate strongly to the regions in which they were created and used, both for official purposes and wider historical research, National Archives maintains facilities to house and service archives in Auckland, Wellington, Christchurch and Dunedin. The selection of records for permanent preservation is carried out by staff based in each office (subject to the final approval of the Chief Archivist), and reading rooms and other reference services are provided for the archives held in each centre. Increasingly, researchers look for access to archives held in different offices: a research service on a cost-recovery basis assists enquirers to do this. On a longer-term basis, computerised access is envisaged to the full extent of the range of descriptive aids to the holdings of National Archives, from any one of its offices.

Records held by National Archives include those of government departments such as Education, Health, Police, Lands & Survey, and Internal Affairs, as well as Parliament, the armed forces, the courts and commissions of inquiry. Among the important and interesting archives from the 19th century are those of The New Zealand Company, the provincial governments, the Colonial Secretary, the Governor and immigration. Records of the 20th century are more diverse, reflecting the evolution of a more complex society, and range from the key operational and policy records of the departments of state to the records of the numerous wartime agencies and the war zones. The records of the Maori Land Courts, Maori Affairs Department and other departments contain vital evidence for all parties before the Waitangi Tribunal and provide a wealth of information on the history of the country's indigenous population. Papers of Prime Ministers such as Richard John Seddon, Sir Walter Nash, Norman Kirk and Sir Robert Muldoon are held, as well as those of a number of former cabinet ministers. In addition, the National Collection of War Art is kept at the National Archives headquarters in Wellington. It comprises oils, water-colours, and sketches of both wars made by New Zealand's official war artists and others. Given New Zealand's historical role in the Pacific, National Archives increasingly caters for researchers from other countries with an interest in Pacific-related topics.

Also at National Archives' headquarters in Wellington is the Constitution Room which provides an interesting walk-through history of New Zealand as illustrated by some of the country's most significant documents. The central focus of this unique exhibition room is the signed sheets of the original Treaty of Waitangi, carefully preserved in specially constructed environmentally-controlled showcases. Other galleries have changing exhibitions that bring interesting aspects of the past to the notice of the public.

Storage of semi-current records on a cost recovery basis is available to public and private sector clients in Auckland and Wellington. National Archives has a statutory role to protect specified classes of local authority archives and advises and assists these bodies in the care, preservation and disposal of their records.

12.3 Books and libraries

New Zealanders' interest in books compares favourably with other English-speaking nations. There is a vigorous book publishing industry that caters not only for the local market but, particularly in the case of educational books, for an increasing number of overseas purchasers.

Libraries are distributed throughout the country, from very small school and community libraries to large library systems.

Book publishing

The 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. Many of the book publishing houses are made up of companies who import as well as publish, though some are involved exclusively in one or other activity.

The Commerce Commission has estimated that around $160 million worth of books was sold by retail booksellers in 1993. 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 of 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 and university publishers has increased by more than 100 percent in the last 10 years. 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 has been printed overseas where printing prices are lower. Generally the number of copies printed (or imported) of new New Zealand books has been declining. The average print run in 1986 was around 5,000 copies. The figure may now be around 2,000 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. A feature of recent years has been the emergence of Christchurch and Dunedin as publishing centres.

A master carver at work.

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, the development of book exporting, and professional training.

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 1994 was 270 within 92 library systems.

In the year ended 30 June 1994, local authority libraries held a book stock of over 8.5 million volumes, and made over 40 million issues.

There are some 58 libraries in tertiary education institutions, including the seven university libraries, all 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 largely from government funding. Research collections have been developed, all have online integrated library systems and are linked through the national electronic network, Tuianet. Recent developments in information technology, including easy access to the Internet, have enabled much more intensive use of remote electronic databases and the sourcing of materials from external databases and collections. The holdings of all university libraries together were some 8 million items in 1994. Over 300 specialist libraries and information centres serve government departments, businesses and other organisations.

A co-operative inter-library lending system allows resource-sharing among its 250 member libraries. The Interloan scheme is administered jointly by the National Library and the New Zealand Library and Information Association.

Library education. The first professional education for librarianship was offered by the New Zealand Library School in 1946. Since 1980, librarianship has been taught at two schools. A two-year, part-time certificate programme at Wellington College of Education is designed for library assistants at work. It can also be studied by distance education. About one hundred students complete the course each year. The postgraduate diploma course moved to Victoria University of Wellington where, from 1996 on, the Department of Library and Information Studies will be offering a taught Master of Library and Information Studies over 12 months' full-time study in Wellington, or two years' study at a distance. Distance study is supported by course books and weekly audio conference sessions. Sixty or more students take the internal course every year, and about 25 distance students graduate each year. The wide-ranging curriculum includes use of information technologies such as locating and organising information resources on the Internet, and bicultural elements dealing with ownership of and access to intellectual property.

National Library of New Zealand. The mission statement of the National Library of New Zealand, Te Puna Matauranga o Aotearoa, is to contribute to the building of a learning society and an enterprise economy within New Zealand by supporting the creation of an environment where information is readily available and widely used.

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.

The collections which can be accessed through the reference and lending service include approximately 720,000 books, mainly in the social sciences and the humanities; approximately 8,700 current journal titles and monographs-in-series in all subject areas including medicine, technology and pure science; over 2 million microfiche and microfilm; approximately 4,500 music scores; a collection of sound recordings including 10,000 compact discs; over 120,000 children's books; all daily New Zealand newspapers; a small selection of overseas newspapers; and a schools collection of over 560,000 books and approximately 16,000 videos and films.

The National Library in Wellington provides a cultural as well as an information resource for New Zealanders. Visitors can view displays in the National Library Gallery and the Turnbull Room. Items from the library's heritage collections are featured in changing exhibitions and displays, which may also include touring exhibitions from other institutions. A programme of events including openings, tours and other activities supports the exhibitions. The National Library has its own programme of exhibitions touring in other parts of the country.

The following services are available from the National Library:

Research and reference 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 Family History Centre is being developed to bring together New Zealand and overseas biographical resources.

Potential readers of some of the 100,000 books borrowed each day from libraries around New Zealand, listening to a story during Library Week.

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 (New Zealand Bibliographic Network and Kiwinet); a range of publications, such as bibliographies and training guides.

Kiwinet—is the National Library's online information network. It hosts 32 databases which provide information on all aspects of New Zealand, including business, the social sciences, arts, commerce, the humanities and law. Over 950 clients access the service, often on a daily basis, nationwide and internationally.

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 function is to support libraries throughout New Zealand in their reference, interloan, cataloguing and acquisitions activities. There are over 270 member libraries. Both NZBN and Kiwinet are due to be combined and merged into a single system and service in 1996-97.

Alexander Turnbull 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, but new initiatives, such as the Archive of New Zealand Music, the New Zealand Cartoon Archive and the Oral History Centre have been developed to reflect the importance of these media in recording aspects of the New Zealand experience.

Automated access to unpublished collections is being developed on TAPUHI (Turnbull's Automation Project for Unpublished Heritage Items). The cataloguing and indexing of published material focuses on giving access to commonly used books and serials to give researchers better access to locally-held New Zealand collections.

The library receives the output of several major international microfilming projects and maintains its own copying programme. The availability of all of these microfilms on interloan greatly enhances the resources available to researchers all over New Zealand.

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 July 1995, the collection included approximately 258,000 books; 16,500 rare books; 47,800 maps; 1,602,000 photographic prints, negatives and albums; 60,000 paintings, drawings and prints; 24,000 discs, tapes and cassettes; 1,400 linear metres of newspapers; 6,700 shelf metres of manuscripts; 4,100 metres of serials; and 52,000 microfilms.

The Dorothy Neal White Collection—this is a research collection of over 6,500 children's books and magazines read in New Zealand up to 1940.

Services to schools—the National Library offers a national service to strengthen school access to information that supports the New Zealand Curriculum through the School Libraries 2000 Programme.

This integrated programme incorporates three sub-programmes to strengthen school access to information through:

  • The development of the school library or information centre to support learning programmes.

  • The development of products which improve schools' electronic access to National Library services.

  • A national collection of resources as a backup for school resources to support learning programmes.

The School Libraries 2000 Programme is delivered from 14 National Library centres across New Zealand.

Infoserve—this was established to meet the information needs of the business community. Infoserve provides a national service from offices staffed by information consultants in Auckland and Wellington.

Infoserve has access to 5,000 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 and document supply. These can be expanded to monitor market trends, industry groups, competitors and the economy.

Recording New Zealand publishing—under the legal deposit provisions of the Copyright Act 1962, the National Library receives three copies of every publication produced in New Zealand. The National Library is responsible for making available the authoritative record of New Zealand publishing in book and non-book formats. The New Zealand National Bibliography includes most of the country's publications, and is published on fiche and as part 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. It is published on fiche and CD-ROM as well as being available online.

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.

A book lover's paradise—the annual Rotary book sale in Invercargill.

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. This collection is available for public use.

Library staff are in frequent contact with their colleagues in other parliamentary libraries around the globe answering requests for information about New Zealand, especially its Parliament, government and policies, or seeking the latest overseas information to meet the needs of New Zealand members. The library participates in the Section of Parliamentary Libraries of the International Federation of Library Associations (IFLA), the Association of Parliamentary Librarians of Asia and the Pacific (APLAP) and the Association of Parliamentary Librarians of Australasia (APLA). The Parliamentary Librarian currently serves on the Standing Committee of the Section of Parliamentary Libraries of IFLA and in 1995 attended the International Conference of Parliamentary Libraries at the Turkish Grand National Assembly in Ankara, the IFLA Conference in Istanbul and the APLA Conference in Hobart.

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 for the people of New Zealand, the library includes substantial holdings of books, newspapers and periodicals (165,000); sound recordings (9,400); microfilms (11,880); maps (8,800); photographs (909,000); posters (15,600); paintings (10,600), including modern works of art; and manuscripts, particularly of early missionaries and literary figures. The library's archives and manuscripts total 5,050 linear metres, and are rich in Otago sources—business, local government, education, health, sport, community organisations, the churches and the University of Otago. In 1994 the library attracted 10,542 readers and answered 762 written enquiries.

Following the establishment of a regional branch in Dunedin, many of the library's holdings of public archives have been transferred to the National Archives.

Contributors

  • 12.1 Ministry of Cultural Affairs; Creative New Zealand; New Zealand Symphony Orchestra; Royal New Zealand Ballet; Chamber Music New Zealand; New Zealand Choral Federation; New Zealand Film Commission; Department of Internal Affairs; Ministry of Justice.

  • 12.2 Department of Internal Affairs; Department of Conservation; New Zealand Film Archive; National Archives.

  • 12.3 Book Publishers Association of New Zealand; Victoria University; Wellington College of Education; National Library of New Zealand; Parliamentary Service; University of Otago.

Special articles

Office of Film and Literature Classification; New Zealand Film Commission; National Archives; Creative New Zealand; National Library; New Zealand Library and Information Association; Royal New Zealand Foundation for the Blind.

Further information

Fostering the arts

Annual Report of the New Zealand Film Archive

Report of Ministry of Cultural Affairs (Parl paper G10).

Report of the Department of Internal Affairs (Parl paper G7).

Report of the New Zealand Film Commission (Parl paper G19).

Report of the New Zealand Lottery Grants Board (Parl paper G7b).

Report of the Queen Elizabeth II Arts Council of New Zealand (Parl paper G11).

Report of the New Zealand Historic Places Trust (Parl paper G10).

The national collection

Report of the Board of Trustees, National Art Gallery, Museum of New Zealand Te Papa Tongawera (Parl paper G12).

Books and libraries

Annual Report of the Hocken Library.

Report of the National Library of New Zealand (Parl paper G13)

Report of the Trustees of the National Library of New Zealand (Parl paper G52).

Chapter 13. Leisure and tourism

The National Aerobics Championships in Auckland.

13.1 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 Arts Assembly, which represents 14 national bodies and 1,546 clubs and groups, attests to the importance of the recreational 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 16.3.

The 1990 Life in New Zealand Survey, a baseline study of sport and leisure involvement identified five main reasons for participation in physical activity. These were: to feel good, to have fun, to keep healthy, to do things with friends and to do things with family. Top sports for the population over 15 years were swimming/diving, cycling, snooker/pool, tennis and aerobics. In the recreational physical activity section walking came out tops followed by running/jogging, cycling and fitness classes. In terms of favourite leisure activities reading was most popular followed by watching television and videos, visiting friends, listening to music and gardening.

Providing for sport and leisure

Hillary Commission for Sport, Fitness and Leisure. 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 36 staff. Ex-All Black captain, Wilson Whineray is the commission's presiding member. It is funded by the New Zealand Lottery Grants Board and government.

In the year ended 30 June 1995 the commission distributed more than $17 million to sport, fitness and leisure groups. This included $4.8 million which was directed through local authorities to fund local sport, fitness and leisure, $11.8 million to assist national sports, fitness and leisure organisations, $0.625 million to the New Zealand Olympic and Commonwealth Games Association, $2.8 million to the New Zealand Sports Foundation, and $3.2 million towards the development of regional sports trusts and their programmes. In addition, the Hillary Commission has developed initiatives and programmes in sport, fitness and leisure such as the highly successful KiwiSport modified sports codes for primary school children. Sportfit for secondary school students, and programmes for Maori, women, older adults, people with disabilities and fair play.

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.

Jonah Lomu, star of the All Blacks' 43–19 win over Ireland in Johannesburg during the World Cup.

There is a great future in the area of masters' and veterans' sport and the commission encourages national organisations to make the most of the huge potential offered by this market.

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. A number of resources the Hillary Commission produces provide teachers and sports leaders with simple and effective guidelines for bringing people with disabilities into the main group.

Research conducted by the Hillary Commission reveals that:

  • There are more similarities than differences between people with disabilities and their able-bodied counterparts when it comes to sport, fitness and leisure.

  • People with disabilities participate at the same rate although a lower intensity level.

  • People with disabilities feel they are unable to participate with their choice of companion, i.e. 47 percent participate alone whereas only 31 percent wish to do so.

  • A major barrier to more participation among people with disabilities is the actual disability rather than physical access or cost.

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. The Hillary Commission report The Business of Sport and Leisure estimates that local government invests $430 million each year in the provision of leisure services and facilities with $300 million dedicated to physical leisure.

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. The commission supports those volunteers with training and resources so that all New Zealanders can enjoy the activity of their choice. As a result of a review in 1995, twenty volunteer development officers are now employed in regional sports trusts throughout the country to improve the service supplied to sport and leisure volunteers.

Leisure industry. In 1992 the Hillary Commission commissioned Business and Economic Research Limited to undertake a major study on the impact of the sport and leisure industry in New Zealand. The resulting document, The Business of Sport and Leisure, reveals some very interesting facts:

  • Sport and leisure is a $4.5 million a day business.

  • New Zealand's sport and leisure industry supports 22,745 jobs.

  • Sport and leisure pays $300 million a year in taxes.

  • Sport and leisure directly and indirectly contributes $1,648 million to New Zealand's gross domestic product.

  • Tourism generated by sport and leisure contributed $210 million and supported 4,013 jobs in 1991.

  • Sport and leisure benefits from $200 million of free volunteer effort every year.

  • New Zealanders spent $725 million on physical leisure goods in 1990/91. This represents 2.1 percent of household expenditure.

The 1995 Business Directory compiled by Statistics New Zealand showed 22,185 New Zealanders as being employed within the category ‘recreation services’, an increase over the revised figure of 20,140 recorded a year earlier.

Sport

For many New Zealanders the successful New Zealand sportsman or woman represents the archetype of the battler succeeding against the odds. International sporting events in which New Zealand features have the power to arouse intense nationalistic fervour. New Zealanders have fared exceptionally well in the international arena despite the country's distance from the world's major venues and, until the early 1970s, a comparative lack of state or corporate funding.

Various reasons have been advanced for New Zealand's success. A small population may have helped produce an affinity between the national hero and weekend athlete, and, while a generally temperate climate has made it possible for athletes to train year round, there is sufficient variety of terrain and climate to foster a wide range of summer and winter pursuits.

Traditionally New Zealanders have excelled in rugby union, which has been regarded as the national sport, and track and field athletics. However, Sir Edmund Hillary, who with Sherpa Tensing Norgay in 1953 was the first to climb Mount Everest, probably remains New Zealand's best internationally known sportsman. Over more recent years New Zealanders have had sustained international success in rowing, rugby, netball, squash, softball, cricket, yachting and other disciplines.

Specific successes in other sports have included Olympic medals in skiing, swimming, yachting, windsurfing, boxing, equestrian, cycling, marathon running and athletics. World titles have been won in swimming, ice racing and darts.

The Sydney Olympics in 2000 present wonderful opportunities for New Zealand sport, and it is essential that the sport, trade and tourism sectors work closely together to ensure the nation makes the most of these opportunities.

In 1994 the New Zealand Lottery Grants Board decided to allocate an extra $3.6 million per year to prepare teams and athletes for the Olympic and Commonwealth Games leading up to 2000. This funding boost will help improve the results of New Zealand athletes leading into the 1996 Atlanta Olympics and 1998 Commonwealth Games in Kuala Lumpur.

Sports participation. New Zealand's success at an elite level is founded on a broad base of mass participation and support. The New Zealand Assembly for Sport, which represents over 50 national associations, claims a collective membership of over 1.5 million.

The 1990 Life in New Zealand survey found that 85 percent of the population had participated in a leisure or physical activity in the last four weeks with 47 percent of all New Zealanders belonging to at least one sport, fitness or leisure club.

Life in New Zealand also found that the most popular sports activity participated in by New Zealanders was aquatic sports (swimming/diving/water polo) with 28 percent of the population involved. The three most popular activities for women were swimming (29 percent), cycling (17 percent) and aerobics (16 percent). The three most popular activities for men were swimming (26 percent), snooker/pool, etc (23 percent) and cycling (16 percent).

Participation in sport changed dramatically with age while participation rates in general fell with increasing age. In contrast, golf participation in both men and women peaked in the 45–64 age group, and lawn bowls slowly built to 18 percent in the 65-plus age group.

New Zealand Sports Foundation. The foundation is an organisation independent of all sports bodies or groups, and government.

The objective of the New Zealand Sports Foundation is to assist our current and potential high performance sportsmen and sportswomen to succeed at international level and by so doing bring credit to themselves, their sport and our country as a whole. 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 1995 more than $30 million of assistance had been made available to more than 2,500 athletes, teams and coaches from more than 60 sports. The foundation currently operates on an annual grants budget approaching $5 million.

Over the past six 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.

The foundation is committed to its objectives and works with the Hillary Commission, the Olympic and Commonwealth Games Association, and national federations and associations representing both Olympic and 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 that compete at Olympic and Commonwealth Games level. Thirty-eight sports federations are members of the NZOCGA.

A time trial for the Atlanta Paralympics in the senior 10,000m wheelchair race at the Canterbury Regional Games.

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 library and information service, including a video section and archive with records and correspondence dating back to the first meetings of the International Olympic Committee.

Outdoor leisure activities

Research conducted by the Hillary Commission reveals that:

  • Walking is the most common outdoor activity followed by fishing, swimming, cycling, tramping, sailing, jogging and hunting.

  • 54 percent of New Zealanders participate in at least one outdoor activity per month; 36 percent participate regularly.

  • The four main reasons for participation in outdoor leisure activities are: physical health, enjoying nature, having fun, and relaxing and reducing stress.

Fishing. A wide variety of fish abound around the coasts, in bays and harbours. 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.

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 to manage sportsfish and gamebirds and have taken over from acclimatisation societies.

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, hammer-head shark, mako shark, thresher shark, kingfish (yellow tail), and tuna. The best catches are usually made in February but fishing is good from December to April.

Shooting and hunting. The principal game birds are duck, swan, pheasant, quail, geese, and chukor, but the sport is limited, the main season usually extending for about six to eight weeks depending on the fish and game region. By tradition the season starts on the first weekend of May.

There are few restrictions on big game hunting. Generally speaking there is no limit on the number of game animals that can be taken, no licence requirement and the season is open for most species all year round. Deer of several species, chamois, thar, wild pigs, goats and wallaby are numerous in several areas. For tourists and inexperienced hunters, the services of an experienced guide are recommended. For further information contact the Department of Conservation.

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 snowmaking 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 Continental cups and FIS races which are 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. The Great Walks are New Zealand's most famous tracks and are popular with both New Zealanders and visitors from overseas. They include: Lake Waikaremoana, Te Urewa National Park; Tongariro Northern Circuit, Tongariro National Park; Abel Tasman Coast Track, Abel Tasman National Park; Heaphy Track, North-west Nelson National Park; Routeburn Track, Mt Aspiring and Fiordland National Parks; Milford Track, Fiordland National Park; Kepler Track, Rakiura Track, Stewart Island. Most of these tracks take two to four days to complete and are well marked. Huts and campsites are provided for overnight accommodation.

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 come the Routeburn, Kepler, Lake Waikaremoana and Heaphy tracks.

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.

Mountain biking. The use of bicycles, particularly mountain-bikes, has been increasing since the early 1980s. The New Zealand Mountain Bike Association has 585 licensed competitors and about 5,500 members. Three New Zealanders will compete in mountain biking events at the 1996 Atlanta Olympics.

Racing and gambling

Racing. There are 93 thoroughbred, 63 harness and 13 greyhound racing clubs based throughout New Zealand. The number of meetings that each club holds and the stakes they offer vary widely, particularly between the larger city clubs and smaller provincial clubs.

New Zealand also has a very strong horse breeding sector. Export of horses is worth around $100 million per year with Australia and Asian countries being the main markets.

New Zealand-bred horses compete very well overseas. In Australia, for example, New Zealand-bred horses won 23 percent of the top 240 races in the 1994-95 season, even though they represented only 8 percent of runners.

Betting. On and off-course betting on racing in New Zealand is conducted through the Totalisator Agency Board (TAB). The board was set up in 1950 and was the first organisation in the world to facilitate off-course betting on a comprehensive national scale through a statutory body. Its legislative responsibilities and functions are now embodied in Racing Act 1971.

The TAB has two fundamental objectives. They are to provide a safe and corruption-free mechanism for betting on horse, harness and greyhound racing and to support the racing industry by returning the profit it makes to racing clubs.

Saying neigh to smokers—from July 1995, smoking was not allowed in the TAB's agencies.

Today there are 501 TAB outlets around the country. In the year ended 31 July 1995, total turnover increased 5 percent. Off-course bets totalled $840 million and on-course being totalled $115 million.

Table 13.1. RACE MEETINGS*

  GallopingTrottingGreyhounds
199419951994199519941995

* Full totalisator meetings only, for years ended July.

Source: Office of Minister for Racing.

Race meetings 332331222230102140
On-course turnover$(000)69,72565,63445,57945,5232,9433,351
TAB turnover$(000)456,167455,291240,177255,52746,63553,368
Total dividends$(000)414,665411,530225,742237,82936,84243,673

Table 13.2. ALLOCATION OF LOTTERY PROFITS

Recipient1993-941994-951995-96

* These amounts do not include carry-forwards from previous financial year.

† DC = Distribution Committee.

Source: Department of Internal Affairs.

 $(million)*
Hillary Commission for Sport, Fitness and Leisure23.024.124.6
Sports 2000 Preparation Fund  3.6
Creative New Zealand (Queen Elizabeth II Arts Council)17.318.119.0
New Zealand Film Commission7.58.08.0
Lottery General DC†12.713.419.6
Alcohol and Drug Sub-committee2.51.11.4
Lottery Community Facilities DC11.612.511.3
Lottery Welfare DC0.112.813.3
Individuals with Disabilities Sub-committee3.23.23.2
Lottery Environment and Heritage DC8.08.09.6
Lottery Aged DC4.03.83.4
Lottery Youth DC5.66.26.2
Lottery Health Research DC3.54.24.0
Lottery Science Research DC0.32.92.0
Science Centres Sub-committee2.4--
Ministry of Internal Affairs Discretionary Fund0.20.21.0
Total101.9118.5130.2

A total of $60 million tax and duties was paid to the government, $24 million in levies to the Racing Industry Board and the profit of $33.5 million was paid to the Racing Industry Board for distribution to the racing industry. The balance, around 80 percent of the total turnover, went back to bettors.

Lotteries and gaming. Under the Gaming and Lotteries Act 1977 gambling may only be run to benefit charities and the community. Larger sites and lotteries need to be licensed, smaller ones are exempt providing they meet the requirements of the act.

The act distinguishes between five forms of gambling: games of chance (including housie and gaming machines); bookmaking and betting (other than betting on racing and gaming machines—this is prohibited); prize competitions (pick the score competitions); lotteries (raffles); and instant games (‘scratch’ tickets). Horse and greyhound racing is controlled through the Racing Act 1971 and casinos through the Casino Control Act 1990.

Bowlers at the Pacific Championships in Dunedin.

13.2 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. However, recent growth in tourism and changing visitor demands have 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 walking, bungy jumping and a variety of outdoor adventure activities, as well as different cultural experiences.

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.

The tourism industry

Tourism is the world's largest industry, according to research carried out by the World Travel and Tourism Council (WTTC). In 1995 tourism employed 212 million people worldwide (one in every 10 workers).

In New Zealand, tourism is a $13.2 million a day business and is one of the top foreign exchange earners. According to the New Zealand Tourism Board's International Visitors Survey international tourism generated almost $5 billion in 1995 and this figure is expected to increase to $9 billion by the year 2000.

New Zealand's current share of the international tourism market is small at 0.2 percent, but visitor arrivals have been growing at twice the world average. For the year ended October 1995, the number of visitors to New Zealand increased by 7 percent to 1,385,907. The World Tourism Organisation predicted in 1993 that world tourism will grow at 3.5-5 percent through to the year 2000, but the growth rate to the East Asia-Pacific region, including New Zealand, will be higher at 6.8 percent per annum.

As a growing labour intensive industry, tourism generates an increasingly wide range of jobs for New Zealanders. The number of equivalent full-time jobs supported directly by tourism is about 125,000. The growth in expenditure by overseas visitors since 1994 has generated about 30,000 additional full-time equivalent jobs in New Zealand. Given further expected growth in tourism, the tourism industry will continue to be a leading generator of new job opportunities for New Zealand.

Social impact. The social consequences of tourism are beneficial, creating employment and stimulating a diversity of activities and facilities. The nature of New Zealand tourism encourages close contact between residents and visitors, and this contact contributes to the current high acceptance of tourism by New Zealanders. In a 1995 survey of New Zealanders' attitudes towards tourism, 96 percent of people surveyed saw tourism as important or very important to the economy and 59 percent believed tourism will improve New Zealanders' lifestyle.

Environmental impact. New Zealand's largely unspoiled and unpolluted environment is a major attraction for visitors. Tourism therefore provides a strong justification for the protection of the environment and the conservation of historic places and cultural sites. Careful management of New Zealand's resources is needed to ensure tourism activity has no significant detrimental impact on environmental values. Increasingly, the industry is working with others to preserve, and where possible enhance the environment, to ensure a sustainable future for the industry. In 1995, environmental responsibility was considered as part of the judging criteria for the New Zealand Tourism Awards, and a special category was introduced for best environmental performance. Sustainable tourism means maintaining or enhancing the quality of the visitor experience, meeting the needs of the host community and safeguarding the health and intrinsic values of attractions so that future generations may also enjoy them.

Table 13.3. INTERNATIONAL VISITOR EXPENDITURE—JANUARY TO JUNE 1995

 Total travel expenditureAverage expenditure per person per visitAverage expenditure per person per dayAverage length of stay
Source: New Zealand Tourism Board.
 ($million)$$days
Australia4142,21415614
USA2593,56526515
Canada533,36613622
UK2263,1849329
Japan2473,65539013
Germany1173,68013626
Taiwan1564,60641312
South Korea1152,6434598
South East Asia1093,34622517
Other North Asia472,94026522
Other Central Europe993,65011329
Nordic272,4809027
Other countries180   
              Total2,0493,02017319

Laser-light show at the Queenstown Winter Festival.

As the majority of New Zealand's finest natural attractions are on land administered by the Department of Conservation (DOC), the relationship between the tourism industry and the department has become increasingly important. DOC works with the New Zealand Tourism Board and the Tourism Policy Group of the Ministry of Commerce to resolve issues relating to visitor use of the conservation estate. DOC has also developed a strategy for managing the growth of visitors and the provision of visitor services and facilities.

Facilities for visitors. In recent years, there has been a marked trend toward more active, participatory holidays. Visitors and domestic travellers want new experiences, and there is also a much greater diversity of things to do. The variety of activities has increased as the demand for leisure activities among New Zealanders has increased. As visitors now expect activities and amenities that complement New Zealand's scenic attractions, and provide insight into another culture and lifestyle, attractions and facilities developed primarily for the local community are increasingly used by visitors.

Tourism Facilities Development Grants Programme. The government has a tourism grants programme administered by the New Zealand Tourism Board. Its purpose is to increase the stock of nationally significant public sector built attractions. The funding available under this programme for the 1995-96 financial year is $600,000. Competition for the grants means that only a few projects can be funded each year. Funding is not available for projects and organisations liable for income tax. Applicants need to show they have raised half of the cost of their project before a grant can be considered. Applications are considered in June and December.

In the past many grants have gone towards preserving historical places, cultural sites and the environment, as well as providing facilities that visitors and local people can enjoy. Projects funded since the programme began in 1985 have included the development or upgrading of walkways and tracks, the conservation of townscapes (such as art deco features at Napier and the whitestone buildings at Oamaru), the establishment or extension of museums and exhibits for visitors (such as the ‘Roaring 40's’ sub-Antarctic audio-visual experience at the Southland Museum and the audio-visual display at the Taiaroa Head Royal Albatross colony).

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, lodges, backpackers' hostels and farm/home-hosting. Accommodation patterns vary greatly between regions, depending on local population, terrain and climate.

Of all the person-nights spent in New Zealand by international visitors in the year ended September 1993, 5 percent were spent in top class hotels, 10 percent were spent in mid-range hotels and motor inns and 12 percent were spent in motels.

The use of private homes by international visitors accounted for 39 percent of total person-nights, and campervans, tents and camping grounds absorbed 7 percent of all person-nights for the year ended September 1993.

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 rental cars and campervans.

Under the weight of a record-breaking stack.

Spring-cleaning at the Ngawha springs, Tai Tokerau.

In order of use, domestic air (34 percent), private car (34 percent), rental car (25 percent) and organised coach tours (22 percent) are the four most favoured means of internal transport for international visitors. Holiday/vacation visitors favour domestic air (38 percent), organised coach tours (34.1 percent) and rental cars (29 percent). Those visiting friends and relatives make much greater use of private cars (74 percent) compared with holiday visitors (15 percent). Business travellers prefer private cars (37.1 percent) and domestic air (33 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.

Data on trends in the accommodation, attractions, activities and transport used by international visitors during 1995 will be available from the New Zealand Tourism Board during 1996.

Table 13.4. 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.
1984285,845116,79361,25054,553518,441
1985341,984127,58668,26959,156596,995
1986404,036140,48174,66169,895689,073
1987441,081157,61976,08788,422763,209
1988455,834194,93288,215116,511855,492
1989439,249207,333100,224120,716867,522
1990464,545224,875109,110134,901933,431
1991491,591238,034103,899133,538967,062
1992519,274245,845106,238128,357999,714
1993593,415255,149114,183123,8101,086,557
1994702,945272,507121,925115,9411,213,318
1995773,379282,565139,221147,8381,343,003

Table 13.5. COUNTRY OF LAST PERMANENT RESIDENCE OF INTERNATIONAL VISITORS

CountryYear ended 31 March
1990199319941995
Source: Statistics New Zealand
Australia327,459361,995369,482389,581
Other Oceania58,74950,60856,38064,604
Japan100,348131,078140,405146,316
South Korea3,42016,40837,70274,225
Taiwan14,93931,62248,14060,960
Other Asia61,55484,704108,850127,329
United Kingdom78,52896,809110,720118,490
Germany24,88651,27959,44056,690
Other Europe47,71160,65266,97675,277
North America170,896161,830181,670187,810
South Africa1,7673,9877,92811,166
Other43,17435,58525,62530,555
              Total933,4311,086,5571,213,3181,343,003

International visitors

More than 1.3 million overseas visitors arrived in New Zealand in the year to 31 October 1995—up 7 percent on the previous year. The number of countries from which overseas visitors originate has been growing increasingly diverse.

Tourism organisations

New Zealand Tourism Board. The Tourism Board is responsible for the co-ordinated marketing and promotion of New Zealand overseas as a tourism destination. Its object is to ensure that New Zealand is developed and marketed as a tourism destination to maximise the long term benefits to New Zealand. The Tourism Board encourages the tourism industry to develop new products and to market them internationally. The Tourism Board maintains 16 overseas marketing and promotion offices located in Sydney, Brisbane, Melbourne, Singapore, Taipei, Hong Kong, Tokyo, Osaka, Seoul, Bangkok, Los Angeles, Chicago, New York, Vancouver, Frankfurt and London. There are four regional offices in New Zealand, in Auckland, Rotorua, Christchurch and Queenstown.

Ministry of Commerce (Tourism Policy Group). The group's principal role is to provide advice to the government on tourism matters of national and international significance. Other functions include providing advice to the Minister of Tourism on the purchase of outputs from the New Zealand Tourism Board; managing and reviewing the government's interests in Crown-owned land for which the Minister of Tourism is responsible; providing services including information for Parliament and the Minister of Tourism; and administering acts of Parliament for which the Minister of Tourism is responsible. Tourism Policy Group seeks to ensure that government policies affecting the tourism sector are consistent are conducive to tourism being sustainable in the long term.

New Zealand Tourism Industry Association. Established in 1953 as the New Zealand Travel & Holiday Association, the functions of the association have evolved as the tourism industry has increased in economic importance in New Zealand. It serves as the united voice of all those enterprises involved in New Zealand's tourism industry. This ranges from the large corporate members through to the small one person service providers. There are many smaller association groups which represent individual product sectors within tourism but the New Zealand Tourism Industry Association provides an organisational framework to link those groups and the various regional tourism organisations involved in promoting their geographical areas.

Contributors

  • 13.1 Hillary Commission for Sport, Fitness and Leisure; New Zealand 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.

  • 13.2 New Zealand Tourism Board; Ministry of Commerce, Tourism Policy Group; New Zealand Tourism Industry Association.

Special articles

Department of Internal Affairs; Aotearoa Maori Tourism Federation; New Zealand Olympic and Commonwealth Games Association; New Zealand Sport Monthly.

Further information

Recreation and sport

Business of Sport and Leisure, The. Hillary Commission for Sport, Fitness and Leisure, 1993.

Freshwater Catch. Ministry of Agriculture and Fisheries (quarterly).

Life in New Zealand. Hillary Commission for Sport, Fitness and Leisure 1990.

New Zealand Lotteries Commission Annual Report

New Zealanders' Participation in Outdoor Activities. Hillary Commission for Sport, Fitness and Leisure, 1993.

Profile of New Zealanders wanting to be more physically active. Hillary Commission for Sport, Fitness and Leisure, 1993.

Report of the Department of Internal Affairs (Parl paper G7).

Report of the Hillary Commission for Sport, Fitness and Leisure (Parl paper E32).

Report of the New Zealand Lottery Grants Board (Parl paper G7b).

Report of the Queen Elizabeth the Second National Trust (Parl paper C2).

TAB Annual Report.

Tourism

Long term tourism roading requirements. Task Force Report, Ministry of Commerce and Transit New Zealand, December 1994.

New Zealand International Visitors Survey. New Zealand Tourism Board (annual).

Quality Toilets. Working Group Report, Ministry of Commerce, December 1994.

Report of the New Zealand Tourism Board (Parl paper G25).

Report of the Ministry of Commerce (Parl paper G46).

Tourism in New Zealand: Facts and forecasts. New Zealand Tourism Board and New Zealand Tourism Industry Association, June 1994.

Tourism Research Bibliography; 1985 to mid 1994. Ministry of Commerce, July 1995.

Tourism Research in New Zealand. Report of the Tourism Research Working Group, Ministry of Commerce, February 1995.

Tourism sector review: New Zealand tourism at a glance. Ernst & Young.

Chapter 14. Employment

Task Force Green decorates Dunedin.

14.1 Labour force

In general terms the labour force includes people aged 15 years and over who are either employed or unemployed. The main source of labour force data is Statistics New Zealand which collects information in five ways:

  • Through the Household Labour Force Survey (which produces quarterly estimates of labour market indicators, based on a sample of around 16,000 households);

  • Through the five-yearly Census of Population and Dwellings;

  • Through the Quarterly Employment Survey (which counts the number of jobs in various industries);

  • Through the Labour Cost Survey (which surveys labour-related costs for a fixed set of job descriptions); and

  • Through a record of work stoppage forms provided by the Department of Labour.

Another source is the Department of Labour, which produces statistics on the number of people registered as seeking work with the New Zealand Employment Service (NZES), the number of job vacancies reported to NZES, the number of jobseekers on NZES employment programmes, and the number, coverage and content of collective employment contracts covering 20 or more employees as lodged with the Industrial Relations 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 1991 Census and the Household Labour Force Survey definitions of the labour force include all those people who work for one hour or more per week for pay or profit (including unpaid family members working in a family enterprise) plus unemployed people who are available for and actively seeking work, and those who have a job to start within four weeks regardless of whether or not they were actively looking for work.

Table 14.1. THE LABOUR FORCE*

Quarter endedLabour forceNot in labour forceWorking-age population*Labour force participation rateUnemployment rate
EmployedUnemployed

* The civilian, non-institutionalised usually resident New Zealand population aged 15 and over.

Source: Household Labour Force Survey.

 (000)percent
Male
1993—Jun836.593.1341.31,270.973.110.0
          Sep834.088.4351.41,273.772.49.6
          Dec853.892.3332.31,278.474.09.8
1994—Mar857.891.3334.91,283.973.99.6
          Jun865.181.1341.91,288.273.58.6
          Sep869.776.6345.51,291.873.38.1
          Dec889.374.6333.01,297.074.37.7
1995—Mar901.567.3334.21,302.974.46.9
          Jun906.857.8343.21,307.873.86.0
Female
1993—Jun650.066.0620.31,336.353.69.2
          Sep662.858.9618.01,339.853.98.2
          Dec671.261.7611.51,344.454.58.4
1994—Mar674.469.8605.71,349.955.19.4
          Jun680.056.4617.81,354.254.47.7
          Sep690.550.7616.91,358.154.66.8
          Dec711.153.1599.61,363.756.06.9
1995—Mar706.752.6610.71,370.055.46.9
          Jun714.748.6611.21,374.555.56.4
Total
1993—Jun1,486.5159.2961.72,607.363.19.7
          Sep1,496.8147.3969.52,613.562.99.0
          Dec1,525.0154.1943.82,622.864.09.2
1994—Mar1,532.2161.0940.62,633.964.39.5
          Jun1,545.1137.5959.82,642.463.78.2
          Sep1,560.2127.3962.42,649.963.77.5
          Dec1,600.4127.7932.62,660.764.97.4
1995—Mar1,608.1119.9944.82,672.964.76.9
          Jun1,621.5106.4954.42,682.364.46.2

New Zealand's labour force, as measured by the Household Labour Force Survey (HLFS), decreased between 1988 and 1990. In the year to March 1990 the average number of people in the labour force had dropped from 1,620,000 to 1,582,800, a decrease of 37,200 or 2.3 percent. This was despite a continuing increase in the number of people aged 15 and over (from 2,460,400 to 2,494,600).

Table 14.1 shows that the labour force has started to grow recently. Between June 1993 and June 1995, the labour force increased by 82,400 or 5.0 percent. Over the same period, the number of people aged 15 and over increased by 75,000 or 2.9 percent. The result was a slight increase in the labour force participation rate.

Labour force growth and changes in labour force participation levels varied markedly for males and females. Female labour force participation has continued to increase steadily over the last five years. Between 1990 and 1995, female labour force participation rose from 678,700 to 750,300, an increase of 71,600 or 10.5 percent. However, male labour force participation rose less markedly from 904,000 to 956,300, an increase of 52,300 or 5.8 percent.

LABOUR FORCE PARTICIPATION RATE, 1995
Age specific

Women in the labour force

The rapidly increasing participation of women in the labour force has resulted in a change in the sex distribution of the labour force. In the year to March 1987, women made up 41.9 percent of the labour force, whereas in the year to March 1995, they made up 44.0 percent of the labour force.

In spite of the increasing labour force participation of women, there is still a clear difference in age-specific labour force participation rates as the graph shows. At every age group male participation is higher than female participation, the difference being particularly marked in the main child-bearing ages (between 25 and 34). At 73.8 percent the overall labour force participation rate for males is almost 20 percentage points higher than that for females.

Increased participation in the labour force by women reflects their changing role in society. Women are now living in a more career-oriented society than previously 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.

National Advisory Council on the Employment of Women (NACEW). The Council's function is to advise the Minister of Employment on all matters relating to the employment of women, and to promote the dissemination of information on the employment of women in New Zealand and overseas.

The National Advisory Council on the Employment of Women has seventeen members. Eight of these, including the Chairperson, are appointed by the Minister of Employment for their knowledge and experience in women's employment issues. These appointments are for a period of three years. The remaining nine NACEW members are representatives from government departments, and the central employer and union organisations. More specifically, there are two representatives from the Council of Trade Unions, and one each from the NZ Employers' Federation and State Services Commission. The government departments represented are the Ministries of Education and Women's Affairs, the Department of Labour and Te Puni Kokiri.

During 1995, NACEW has been undertaking some work on Parental Leave in New Zealand. NACEW has also prepared submissions and commented on a number of issues in 1995. Submissions were made to the Careers Information and Guidance Review and the Review of Accident Compensation. NACEW also submitted comments on the draft Pre-Employment Guidelines prepared by the Human Rights Commission, the Review of the Equal Employment Opportunities Trust and the Review of the Holidays Act.

As part of Suffrage Year in 1993, NACEW, alongside the Department of Labour and the Ministry of Women's Affairs, undertook a major project on women and self-employment. It was found there was an 11.3 percent growth in self-employment amongst New Zealand women over the last five years. Few of the self-employed women (or men) had previously been unemployed.

Agriculture, retail trade, real estate and business services account for 54 percent of female self-employment in New Zealand. Self-employed women are as likely to be employers as men and the survival rates for their businesses are roughly comparable. However, for each major occupational group the median income for self-employed women is lower than for self-employed men.

The project also identified the barriers that women face in self-employment. Amongst these are lack of start-up and ongoing capital, business skills, confidence, experience in the chosen industry, information, credibility and resources.

Full-time and part-time work

The population resident in New Zealand employed in the full-time labour force, i.e. working 30 hours or more per week, decreased from an average of 1,283,200 in the year to March 1987, to an average of 1,237,200 in the year to March 1995, a decline of 46,000 or 3.6 percent. By contrast, the number of people working 1-29 hours per week increased by 76,600 or 28.9 percent, to 341,300.

Table 14.2 shows the number of males and females employed full- and part-time in 1990 and 1995. Almost three times as many women as men are employed on a part-time basis, although the number of part-time workers of both sexes has increased in recent years. Males working part-time increased by 33.5 percent between 1990 and 1995, while the number of females working part-time increased by 20.1 percent over the same period. The definition of full-time includes all those working 30 or more hours per week. Therefore, part-time includes those people working for 1-29 hours of work per week.

Table 14.2. LABOUR FORCE BY FULL-TIME AND PART-TIME STATUS, 1990 AND 1995*

 MaleFemale
1990199519901995

* Household Labour Force Survey. Annual averages for the years ended March 1990 and 1995.

† For unemployed persons, full-time means seeking 30 or more hours of work per week. Part-time means seeking fewer than 30 hours per week.

Source: Household Labour Force Survey.

 (000)(000)
Full-time
     Employed774.2795.419.2441.4
     Unemployed†58.666.628.935.0
     Total832.8862.3448.1476.4
Part-time
     Employed64.285.7212.8255.6
     Unemployed†7.08.317.918.2
     Total71.294.0230.7273.8
Total full and part-time labour force904.0956.3678.8750.3
Percent in labour force full-time92.390.366.363.3
Total working-age population1,215.81,295.01,278.81,361.5
Participation rate (full-time)68.566.635.035.0
Participation rate (part-time)5.97.318.020.1

Hours of work. Data regarding the number of hours of work in each week is presently collected by Statistics New Zealand from two sources:

  • The Household Labour Force Survey which asks respondents for the number of hours they usually work, the number of hours actually worked in the survey reference week and where the usual and actual hours differ, the reason for any difference; and

  • The Quarterly Employment Survey which asks enterprises for the details of the number of paid ordinary and overtime hours worked in the surveyed payweek.

Given the shift from full- to part-time work highlighted in the previous section, a decrease might have been expected in the length of the average work week, but table 14.3 shows that this is not the case. Average total weekly hours, as measured by the Quarterly Employment Survey, have remained in the range of 38.7-39.4 paid hours since 1987, and have even been increasing during the last four years.

However, a shift in the composition of these hours has occurred in recent years. The average number of ordinary time hours worked has increased from 36.71 hours per week in 1990 to 37.76 hours per week in 1995. Conversely the number of overtime hours worked in the average week has decreased by 0.54 of an hour (about 32 minutes) over the same period, although there was a slight pick-up in overtime hours in the latest year. This may be the result of recent changes in the terms of employment contracts extending the number of hours defined as ‘ordinary time’.

A careers choice day at Mobil.

Table 14.3. AVERAGE WEEKLY HOURS PAID FOR, 1987-1995

Year as at FebruaryTotal Hours Paid For
MalesFemalesTotal
Ordinary TimeOver TimeTotalOrdinary TimeOver TimeTotalOrdinary TimeOver TimeTotal
Source: Quarterly Employment Survey
198737.303.1040.3035.901.4037.1036.702.5039.00
198837.203.0040.0035.801.3036.9036.602.3038.70
198937.563.0140.4335.971.4137.1236.882.3939.01
199037.423.1840.4335.791.4836.9736.712.5138.91
199137.492.7440.0835.851.2936.8736.762.1638.66
199237.852.5340.2336.141.0736.9837.081.9438.77
199338.242.5540.6236.360.9837.1137.391.9139.04
199438.422.4840.7336.450.9737.2037.531.8739.13
199538.642.6241.0836.691.0037.4637.761.9739.45

Table 14.4 shows how actual hours worked have changed between 1990 and 1995. The standard 40-hour week seems to be becoming less common; there was an average of 12,300 fewer people (3.0 percent) who worked 40 hours in 1995 than there had been in 1990. There were also fewer males and females who indicated that they worked between 35 and 39, and 41 and 44 hours, in 1995 than there had been in 1990.

Conversely, there has been a big increase in the numbers of employed people reporting that they worked between 1 and 34 hours over the last five years. In 1995, there were 18,800 or 14.6 percent more men, and 48,500 or 18.9 percent more women who worked between 1 and 34 hours than there were in 1990. This reflects the increase in the number of part-time workers.

There has also been a big increase in the number of people working long hours over this period. In 1995, there were 55,900 or 18.9 percent more men, and 22,200 or 30.1 percent more women who worked 45 hours or more than there were in 1990.

ETHNIC EMPLOYMENT
By major industry group

Status in employment

As would be expected wage and salary earners account for the majority of the employed. Data from the HLFS indicates that during the year ended March 1995, 78.9 percent of employed people were wage and salary earners. Those people who were self-employed and not employing others made up the next largest category, accounting for 11.5 percent of the employed.

Males dominate among those who are self-employed and those who employ others. Table 14.5 shows that in 1995, 70 percent of the people in these categories were male. Similarly females dominate amongst those working unpaid in a family business. Women made up 64.6 percent of this group.

Table 14.4. EMPLOYED PERSONS BY ACTUAL HOURS WORKED*

Actual hours worked per weekMalesFemales
19901995% Change19901995% Change

* Annual average for the year ended March.

… Denotes estimates less than 1000 and subject to sampling errors too great for most practical purposes. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey.

0 Hour59.353.6(9.61)55.656.92.3
1-924.629.017.955.566.219.3
10-1924.631.126.470.283.418.8
20-2934.439.013.479.692.215.8
30-3444.948.27.351.863.823.2
35-3947.241.7(11.65)66.260.8(8.16)
40256.8243.9(5.02)153.5154.10.4
41-4448.742.7(12.32)23.822.7(4.62)
45-4996.5105.08.828.835.121.9
50 and over198.5245.923.944.960.835.4
Not Specified2.81.2(57.14)..1.0..
Total838.4881.45.1631.9697.110.3

The restructuring of the New Zealand economy during the mid-late 1980s coupled with the economic recession of 1990-91 have seen shifts in status in employment. The total number of people employed has increased on average by 108,100 or 7.4 percent in the five years to March 1995. The number of wage and salary earners increased by 69,600 or 5.9 percent in the last five years, while self-employment increased by 23,900 or 15.2 percent, those employing others increased by 10,400 or 8.7 percent, and people working unpaid in a family business increased by 4,400 or 36.7 percent.

Table 14.5. STATUS IN EMPLOYMENT OF EMPLOYED PERSONS, 1990 AND 1995*

StatusMalesFemales
19901995Percentage change19901995Percentage change

* Annual averages for the years ended March 1990 and 1995. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey.

 (000)(000)
Employee628.7654.54.1546.6590.48.0
Employer88.592.14.131.238.122.1
Self-employed113.4125.911.044.355.725.7
Unpaid in family business4.45.831.87.610.639.5
Not specified3.43.1−8.82.12.24.8
              Total838.4881.45.1631.9697.110.3

Industrial structure of the labour force

Table 14.6 shows the distribution of employed people by industry during 1995. The industries presented here are grouped into major divisions consistent with the New Zealand Standard Industrial Classification (NZSIC). The largest number of the employed work in the ‘community, social and personal services’ division (27.1 percent), followed by the ‘wholesale and retail trade, restaurants and hotels’ division (21.1 percent) and the ‘manufacturing’ division (18.2 percent). The divisions employing the fewest people are the ‘mining and quarrying’ and the ‘electricity, gas and water’ divisions, each employing less than 1 percent of the employed.

Over the last five years the industrial structure of New Zealand employment has changed. More people are employed in the services sector (‘wholesale and retail trade, restaurant and hotels’, ‘business and financial services’, and ‘community, social and personal services’). Meanwhile, employment in the primary and secondary industries (‘agriculture, hunting, fishing and forestry’, ‘mining, quarrying’ and ‘building and construction’) has been steady or decreasing. The only secondary industry to show significant growth in the last five years, is ‘manufacturing’.

OCCUPATIONS OF THE EMPLOYED, 1995

FULL-TIME MALE EMPLOYMENT BY INDUSTRY

Around 60 percent of female employment is concentrated in two industrial divisions; ‘community, social and personal services’ and ‘wholesale, retail, restaurants and hotels’. As the following graph shows, males are mostly employed within one of four industrial divisions; ‘manufacturing’, ‘wholesale and retail trade, restaurants and hotels’, ‘community, social and personal services’, and ‘agriculture, hunting, forestry and fishing’. Over 70 percent of males are employed in one of these four industry groups.

Occupational structure of the labour force

Statistics New Zealand classifies occupations into nine major groups for the purposes of statistical collection and reporting. The system used for classifying occupations into major groups is the New Zealand Standard Classification of Occupations (NZSCO).

Table 14.6. EMPLOYED PERSONS BY INDUSTRY, 1995*

Major divisionMaleFemaleTotalPercentage distribution†
MaleFemaleTotal

* Annual average for the year ended March 1995.

†Based on adequately defined cases only.

… Denotes estimates less than 1000 and subject to sampling errors too great for most practical purposes. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey.

  (000)    
Agriculture, hunting, fishing and forestry112.049.0161.012.77.010.2
Mining and quarrying3.84.5
Manufacturing199.787.0286.722.712.518.2
Electricity, gas and water8.71.710.51.00.20.7
Construction85.29.594.79.71.46.0
Wholesale, retail, restaurants and hotels166.7166.7333.318.923.921.1
Transport, storage and communications63.131.194.17.24.56.0
Business and financial services82.281.1163.39.311.610.3
Community, social and personal services158.7269.5428.218.038.727.1
Not adequately defined1.22.1
              Total881.4697.11,578.5100.0100.0100.0

FULL-TIME FEMALE EMPLOYMENT BY INDUSTRY

Taking to the street in a last-ditch bid for work.

Table 14.7 suggests that New Zealanders are relatively evenly spread amongst the differing occupations. The largest occupational groups are service and sales workers, and clerical workers. Together these two occupation groups account for 27.3 percent of all employed people. The smallest occupational group is ‘elementary occupations’ (6.3 percent of employed people).

Table 14.7. EMPLOYED PERSONS BY OCCUPATION AND SEX, 1995*

Major occupational groupsMaleFemaleTotalPercentage distribution†
MaleFemaleTotal

* Annual average for the year ended March 1995.

† Percentage calculations are based on adequately defined cases only.

… Denotes estimates less than 1000 and subject to sampling errors too great for most practical purposes. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey.

Legislators, administrators and managers127.965.3193.214.59.412.2
Professionals86.8105.8192.69.815.212.2
Technicians and associate professionals105.080.4185.411.911.511.7
Clerks45.2169.1214.45.124.313.6
Service and sales workers72.0142.9214.98.220.513.6
Agriculture and fishery workers110.145.1155.212.56.59.8
Trades workers154.910.9165.817.61.610.5
Plant and machine operators and assemblers115.537.5153.013.15.49.7
Elementary occupations60.338.999.26.85.66.3
Not adequately defined3.61.14.7
              Total881.4697.11,578.5100.0100.0100.0

The largest occupational group for males is trades workers; approximately one in six males are involved in this occupation (17.6 percent). The second largest occupational group for males is the ‘legislators, administrators and managers group’, in which 14.6 percent of males are occupied. The smallest occupational group for males is ‘clerical workers’ (5.1 percent).

Women tend to be concentrated in a smaller number of occupation groups. Nearly a quarter of all employed females work as ‘clerks’, with a further 20.5 percent employed as ‘service or sales workers’. The smallest occupational group for females is ‘trades workers’, accounting for 1.6 percent of female employment.

There is still a large degree of occupational segregation in the New Zealand labour force i.e. so-called ‘male’ and ‘female’ occupations still exist. Males are over-represented in the occupations of trades workers, machine operators, legislators and managers, plant and machine operators, agriculture and fisheries, and technicians and professionals. In contrast females are over-represented in the clerical and service/sales occupations.

NZSCO was extensively revised during 1990. This revision makes it impossible to compare changes in most occupational groups before and after 1990.

14.2 Unemployment

There are three main sources of unemployment data in New Zealand:

  • Statistics New Zealand's Household Labour Force Survey (HLFS).

  • Statistics New Zealand's five-yearly Census of Population and Dwellings.

  • The Department of Labour's job seeker register.

These measures differ from each other in their scope, collection methods and the way they define unemployment. The 1991 Census counts people as unemployed if, on Census night, they were without paid employment and were available for and actively seeking paid employment. ‘Active’ job search requires that a person do more than look through job advertisements in newspapers. The HLFS definition of unemployment is similar to that used by the 1991 Census but also includes people who have a job arranged to start within four weeks, regardless of whether or not they were actively seeking work. This is based on the International Labour Organisation definition of unemployment, used in many countries.

REGISTERED UNEMPLOYED
Excluding vacation workers

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 New Zealand Employment Service. Registration is open to all job-seekers but is required of those receiving the Unemployment Benefit. The Department of Labour releases monthly updates of registered unemployment data.

Definitional differences mean that people counted as ‘unemployed’ by one measure may be excluded by another. For instance, a person on the Employment Service Register may have a temporary job working a few hours each week and would therefore be counted as ‘employed’ by the HLFS. Similarly some people without work may choose not to register with the Employment Service but could be counted in the HLFS definition of unemployment.

A major disadvantage of the population census as an indicator of the trends in unemployment is that it provides data at five-yearly intervals only. In addition, unemployment figures in successive censuses are not strictly comparable because of changes in definitions of full and part-time labour forces, and the working-age population. Short term trends are measured in the HLFS which began in 1985-86. The dramatic increase in unemployment since the mid-1970s and especially since 1985 is illustrated in the graph below. The graph also shows that in the last two years there has been a steady decrease in the number of people registered as unemployed.

Demographic and social characteristics of the unemployed

In the year ended March 1995, 128,100 people were counted by the HLFS as being unemployed. This is equivalent to 7.5 percent of the total labour force. The unemployment rate for males was higher than that for females, at 7.8 percent and 7.1 percent respectively. The variation in unemployment rates is even wider when other social and demographic characteristics are taken into account.

Table 14.8 shows the distribution of the unemployed by educational attainment. The unemployment rate is highest among those people with no educational qualifications (12.3 percent) and lowest for those people with both school and post-school qualifications (4.3 percent).

Table 14.8. UNEMPLOYED PERSONS BY EDUCATIONAL ATTAINMENT, 1995*

Educational attainmentNumber of unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

* Annual average for the year ended March 1995.

… Denotes estimates less than 1,000 and subject to sampling errors too great for most practical purposes. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey.

 (000)percent
No qualifications32.718.751.413.810.312.3
School qualification17.215.132.37.86.87.3
Post-school but no school qualification9.15.314.47.410.58.3
Post-school and school qualification14.713.728.44.04.74.3
Not specified1.21.617.112.7
              Total74.953.2128.17.87.17.5

Younger age groups are more likely to be unemployed. As can be seen in table 14.9, over half of the unemployed are aged 29 or younger, whereas fewer than 1,500 unemployed people are aged 60 or over. As the graph of age-specific unemployment rates shows, the rate of unemployment for 15-19 year-olds is more than twice as high as the overall rate of unemployment. Similarly, the unemployment rate for 20-24 year-olds is significantly higher than the overall rate.

Table 14.9. UNEMPLOYED PERSONS BY AGE, 1995*

AgeNumber of unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

* Annual average for the year ended March 1995.

… Denotes estimates less than 1,000 and subject to sampling errors too great for most practical purposes. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey.

 (000)percent
15-1913.111.424.518.117.117.6
20-2414.110.624.711.710.711.3
25-299.66.916.58.47.78.1
30-348.36.314.66.56.76.6
35-398.25.914.16.96.36.6
40-446.54.010.55.84.25.1
45-495.43.89.25.14.34.7
50-545.02.67.66.34.15.3
55-593.31.34.65.73.44.8
60-641.43.0
65 and over
              Total74.953.2128.17.87.17.5

UNEMPLOYMENT RATE, 1995
Age specific

One of the one-in-five Pacific Islanders out of work.

Teenagers learning to renovate an historic cottage.

Unemployment rates for Maori and Pacific Island people are more than three times those for Europeans. Table 14.10 shows that the unemployment rates for Pacific Island, New Zealand Maori, and Europeans are 20.7 percent, 19.4 percent and 5.6 percent respectively.

Table 14.1. UNEMPLOYED PERSONS BY ETHNICITY, 1995*

Ethnic groupNumber unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

* Annual average for the year ended March 1995.

Some discrepancies may exist between totals and the sum of their component items due to rounding.

… Denotes estimates less than 1000 and subject to sampling errors too great for most practical purposes.

Source: Household Labour Force Survey.

 (000)percent
European / pakeha46.033.679.65.75.35.6
New Zealand Maori16.312.628.919.619.219.4
Pacific Island group8.94.313.224.915.320.7
Other3.72.76.410.910.210.6
Not specified
              Total74.953.2128.17.87.17.5

Table 14.11. PERSONS UNEMPLOYED, BY DURATION OF UNEMPLOYMENT AND SEX*

Average for the year ended March1-45-89-1314-2627-5253 weeks and overNot specifiedTotal

* Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey.

 (000)
Males
19887.45.03.35.85.84.17.839.2
19898.67.66.88.210.88.07.257.1
19909.47.26.210.011.812.68.465.6
199111.68.27.613.713.918.17.280.3
199212.09.18.416.822.128.36.7103.4
19939.87.46.914.418.635.06.999.0
199411.06.76.412.316.931.56.591.3
19959.96.45.89.412.424.26.974.9
Females
19887.44.12.93.63.81.86.630.2
19898.65.24.85.65.83.97.040.8
199010.25.95.66.56.85.56.346.8
199111.37.05.98.28.48.16.555.4
199211.47.87.211.512.712.75.869.2
19939.76.45.49.912.616.56.166.6
199410.46.05.99.511.415.55.464.1
19959.55.95.07.57.911.46.053.2
Total
198814.89.16.29.49.65.914.569.5
198917.212.911.613.816.511.914.198.0
199019.613.211.816.518.718.014.7112.4
199122.815.313.421.922.226.213.7135.7
199223.416.915.628.334.841.012.5172.6
199319.513.812.424.231.351.413.0165.6
199423.814.414.119.425.848.814.8161.0
199519.412.310.716.920.335.712.9128.1

Duration of unemployment

The average duration of unemployment (the length of time people are unemployed) has increased steadily in recent years. This increase in duration is due largely to a significant increase in the proportion of the unemployed who were ‘long-term unemployed’. For the purposes of the HLFS ‘long-term unemployment’ is defined as a period of unemployment lasting more than 26 weeks.

The long-term unemployed accounted for an average of 28.2 percent of those unemployed who specified a duration in the year to March 1988. However, by 1993 they accounted for more than half (54.2 percent). In the last two years there have been decreases in the number of long-term unemployed, and in the year to March 1995 an average of 48.6 percent of those unemployed who specified a duration were long-term. Table 14.11 shows how the numbers of people unemployed for various durations have changed in recent years.

14.3 Training and employment assistance

With the introduction of Skill New Zealand, the artificial divide between ‘academic’ and ‘vocational’ education and training is disappearing. The two government agencies responsible for Skill New Zealand are the New Zealand Qualifications Authority and the Education and Training Support Agency.

In addition to a number of Skill New Zealand initiatives which aim to foster high quality industry training, the Education and Training Support Agency is responsible for the Training Opportunities Programme, which aims to provide training for the long-term unemployed people with low or no qualifications.

Education and Training Support Agency

The Education and Training Support Agency (ETSA) was established by the Education Amendment Act 1990. The agency reports directly to the Minister of Education through its board. Its purpose is to advance a range of training options for its customers, who include employers, industry training organisations, training providers and trainees. With 15 regional offices and associated sub-offices, the agency has an extensive regional structure, as well as a national office based in Wellington.

ETSA's mission is ‘Skills Development for Work’, reflecting a commitment to raising New Zealanders' skill levels. The programmes administered by the agency fall under the Skill New Zealand umbrella. Skills development is essential for economic growth and the ability to compete on the international market. Equipping New Zealanders with tomorrow's skills improves not just individual job prospects, but the economic prospects of the nation.

ETSA is committed to providing equal opportunity in training, and has a special focus on those who have not been well served by traditional educational institutions. It works closely with its customers to understand their needs and develop solutions from a range of services. The agency has a close working relationship with the New Zealand Qualifications Authority to ensure all training is carried out to nationally recognised standards.

ETSA is funded through Vote: Education under a Document of Accountability negotiated annually with the Minister of Education. In the year to June 1995 ETSA received from the government $19.7 million operational funding.

Pacific Island job search club overcoming cultural differences to solve long-term unemployment.

The Education and Training Support Agency is responsible for the following major training initiatives:

  • Skill New Zealand.

  • Training Opportunities Programme.

  • Skill Pathways.

  • Skill Enhancement.

Skill New Zealand. Under the Industry Training Act 1992, industries are progressively taking over responsibility for developing, implementing and administering their own training. The Skill New Zealand campaign has two aims: it seeks to develop a learning culture by encouraging people to view education and training as a life-long process; and it targets key groups which will develop or be involved in the new industry-driven training arrangements, including Maori and Pacific Island employers.

Industry Training Organisations— the agency's board is responsible for recognising and supporting Industry Training Organisations (ITOs). The agency assists industry groups to establish ITOs or become included in existing ITOs, and it assists ITOs to develop and establish systematic training arrangements.

ITOs are responsible for:

  • Setting national skill standards for their industry.

  • Developing training packages for employers in their industry.

  • Arranging for delivery of training on- and off-job.

  • Deciding how to monitor training standards and the assessment of trainees.

  • Administering apprenticeships, primary industry cadetships, and other industry training arrangements.

At the end of 1995, there were 50 officially recognised ITOs covering an estimated 66 percent of New Zealand's workforce.

Government subsidies are available to ITOs through the Industry Training Development Fund (ITDF) and the Industry Training Fund. ITDF is aimed at assisting ITOs develop systematic training arrangements and linked to the National Qualifications Framework. Industry Training Fund is aimed at encouraging structured industry training by supporting ITOs in their facilitation of industry training both on- and off-job.

Training Opportunities Programme. TOP provides access to education and training for people with low qualifications who are either recent school leavers or long-term unemployed.

The programme is fully funded for targeted trainees. The agency purchases training places with a variety of training providers for courses which meet a variety of skill needs, including work-based training options. Outcomes sought from the programme are:

  • The acquisition of, or credit towards, nationally recognised qualifications.

  • Further education, training, or employment.

There were an average of 16,219 TOP trainees in place during the year to 30 June 1995, of whom 45 percent were Maori, 11 percent Pacific Island people, and 47 percent women. Contracts were negotiated for 638 providers. Average training cost for TOP was $212 per trainee per week. In the year to June 1995, 21 percent of course participants went on to jobs, with a further 42 percent pursuing further training.

Skill Pathways. This initiative is designed to encourage the development of a variety of vocational training pathways for young people aged 16 to 21 years. Skill Pathways uses a mix of on- and off-job vocational education and training linked to the National Qualifications Framework. There is a range of pathways available. School-based pathways enable school students to attain vocational or technical units involving some on-job learning; similar pathways are available for polytechnic or private training establishment students.

There were 986 trainees in place by 30 June 1995, of whom 22 percent were Maori, 22 percent Pacific Island people, and 54 percent women. Contracts were negotiated for 50 providers. Average training cost for Skill Pathways was $119 per trainee per week.

Skill Enhancement. This programme (formerly known as Maori Vocational Training) is targeted at young Maori and Pacific Island people aged between 16 and 21 years inclusive. Skill enhancement provides flexible training pathways linked to the National Qualifications framework. Training pathways purchased for 1996 and beyond will include an on-job training component. Trainee outcomes sought are the achievement of educational qualifications and movement into further training or employment.

There were 687 trainees in place at 30 June 1995 (572 in 1994) of whom 82 percent were Maori and 18 percent Pacific Island people, and 34 percent were women. Contracts were negotiated for 28 providers. Average training cost for Skill Enhancement was $279 per trainee per week.

The Careers Service

The Careers Service, formerly known as Quest Rapuara: the Career Development and Transition Education Service, is a careers advice and information service which helps people choose the work, education and training that suits them and which promotes the development of education programmes which will help meet their future needs.

A Crown entity, the Careers Service was established in July 1990. It is directly responsible to the Minister of Education who appoints a board to oversee its work. The Careers Service 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. Being partly funded by the Crown, the document of accountability also allows the negotiation of contracts with other organisations, both public and private.

The Careers Service is the leading provider of careers guidance, information and advice to New Zealanders. Its principal services are:

Career Information: it researches, produces and distributes occupational, training and labour market information packaged in a variety of ways, such as computer database, leaflets, books, posters, kits. The annually-updated Quest Database contains detailed descriptions of approximately 650 careers and over 5,000 courses and is available in all Careers Service offices. The Database has been purchased by tertiary institutions, libraries, New Zealand Qualifications Authority, New Zealand Employment Service, Education and Training Support Agency, Workbridge and over 300 secondary schools.

The Careers Information Library leaflets include details on over 200 different occupations, including descriptions, training information and interviews with people. The Library has been purchased by secondary schools and some libraries, and is available in all 22 Careers Service offices.

Career Guidance: it helps people to make career plans. Both CareerQuest and JobQuest are computer guidance programs which have been developed by the Careers Service. People answer a series of questions and CareerQuest lists appropriate career choices while JobQuest lists appropriate job choices. Both programs are available in each of the 22 Careers Service offices.

Career Counselling and Advice: it provides a wide range of culturally-appropriate career counselling services to individuals and groups.

Professional Support: it helps trainers and educators run effective career development and transition education programmes.

The Careers Service has an infrastructure of five regions and 22 offices offering nationwide service.

Employment assistance measures

New Zealand Employment Service. The Employment Service (NZES) of the Department of Labour was established in 1988 to provide job search assistance for unemployed New Zealanders through 75 employment centres nationwide. The service's vision is “Every Encounter With Us Takes People Closer to Employment”.

NZES has a range of programmes and services which help job seekers towards employment. They also provide a service to employers by providing recruiting services offering job seekers from their register at no cost.

Job Plus— helps job seekers into permanent full-time employment through partial subsidies to employers for a limited time (usually about six months). Eligible job seekers must be enrolled with the service for more than six months or facing particular barriers to employment, be in receipt of a work-tested benefit and be assessed as needing extra help or training to secure a job.

Job Plus Training Option— provides employment-related training linked to a job, or jobs likely to arise. It assists job seekers who are not necessarily qualified for a position to get the job through targeted training.

Enterprise Allowance— helps job seekers into self-employment by providing an income during the initial stage of establishing their business. Eligible job seekers must be enrolled with the Service for at least 15 weeks, and in receipt of a work tested benefit. Job seekers may also be eligible for a business training and advice grant of up to $600. Job seekers can also capitalise a portion of their Enterprise Allowance up to a maximum of $5,000.

Community Taskforce— a work experience programme for job seekers who have been enrolled for more than three months. It aims to provide job seekers with skills to improve their chances of finding work. It also enables organisations to get projects which benefit the community off the ground. Sponsors provide three days work experience a week for up to six months while participants continue to receive a benefit and are paid an additional $20 per week to cover costs.

From the dole to burgeoning business.

Taskforce Green— a programme which provides project-based work to job seekers who have been enrolled with the service for more than six months. Employers are paid a partial wage subsidy while employees receive a wage negotiated with the employer/sponsor. The programme is open to both public and private sector employers for projects of benefit to the environment and the community. It aims to provide job seekers, who have been out of work for some time, a chance to get recent work experience, update or enhance old skills or gain new skills to improve their chances of finding work.

Furniture-making in the Youth Skills Olympics.

Job Clubs, Job Action and Job Search Seminars— help job seekers enrolled with the service to improve their job-seeking skills. Job Clubs are run over two weeks and teach job seekers a complete range of job search, interview and cold-calling skills. Job Search Seminars are intensive one day sessions on job search techniques. Job Action is a programme specifically designed for job seekers who have been out of work for longer than two years to enhance their employability and to develop with each of them an individualised commitment to work. Some employment centres run short, half day courses on specific aspects of job searching, such as CV preparation, interview skills, etc.

Wahine Ahuru/Turning Point— a programme to help women who are returning to paid work. The programme runs mornings only over two weeks and teaches confidence, motivation and the skills needed to track down the right job or training.

Hikoi ki pae-rangi— is the same as Wahine Ahuru/Turning Point, but specifically tailored for sole parents looking to return to work.

Tane Atawhai— a programme aimed at helping men who are returning to paid work. It teaches confidence, motivation and allows participants to clarify job choices and training options.

Modification Grants— help employers to recruit people with disabilities by funding modifications to the workplace, equipment or access to enable the person to work to his or her ability.

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 6.4).

MANA Enterprises— this programme is designed to provide grant funding to an iwi collective with a commercially viable proposal. It is not intended that MANA fund individuals or be the sole provider of funds, but to provide a level of financial assistance so as to attract other joint venture partners or financiers.

Community Employment Group. The Community Employment Group of the Department of Labour works with local communities to encourage opportunities for positive activity, employment and self-sufficiency. Positive activity refers to outcomes which would lead to enhanced work readiness through, for example, improving motivation or self esteem; redirection away from criminal or negative activities; and fuller participation in the community by disadvantaged and at-risk individuals and groups.

The group works through a network of field advisors and staff as a catalyst with communities and groups in a variety of ways. These are:

  • Helping them to develop and implement ideas which may lead to positive activity, opportunities for employment, or self sufficiency through the provision of advice and, where appropriate, through offering partial grants.

  • Enlarging upon and promoting successful ideas for further implementation, regionally or nationwide.

  • Generally helping with the co-ordination of local employment development.

  • Putting them in touch with other sources of funding or partnership if appropriate.

Groups worked with include community organisations such as volunteer agencies, Maori and Pacific Islands groups, local government, sports organisations, churches, enterprise agencies, co-operatives, trusts, women's groups, service clubs, and socially-alienated groups with barriers to employment, such as gangs.

In 1995-96, as part of the Focus on Employment package, the Community Employment Group will target its assistance primarily towards the four priority groups of Maori, rural/ urban disadvantaged communities, Pacific Islands people, and women. These have been identified as the groups with the most difficult remaining employment problems.

The group is continually testing and developing new strategies for use by communities. Some strategies which have proved successful in one community have been replicated, with local variations, in other parts of the country. These include:

Community employment mobile information services— brings information on employment opportunities, enterprise development and government services to isolated communities.

Community planning sessions— aimed at economic revitalisation of small towns or rural areas.

Small town self-help— investigates employment, training and local economic development for employment opportunities in rural towns.

SportWorks— builds on the organisational and human resources found in sports and recreational clubs to develop opportunities for employment and positive activity among local people.

Mahi A Iwi— works in partnership with iwi through the development of enterprise skills training, resource utilisation strategies and one-off projects to facilitate opportunities for employment.

Volunteer services— match and train people interested in voluntary work (many of whom are unemployed) thereby providing useful work experience.

Heritage— restores, develops and markets historic aspects of local communities to attract visitors and create opportunities for employment.

Company Rebuilders— retired business people provide advice to help save businesses in danger of collapse.

Mainstreet— communities work to make their town centres more attractive to visitors and locals, to attract more spending to the area and increase opportunities for employment.

Mature Employment Service— helps mature unemployed through counselling and referral to appropriate agencies.

Business Grow— a referral and information service aimed at encouraging growth and expansion in existing businesses.

Be Your Own Boss— an integrated package of training and advice for unemployed and non-business wise people aiming to run a business.

Ministry of Youth Affairs

Conservation Corps— a joint community/government enterprise administered by the Ministry of Youth Affairs, focusing on conservation, education and recreation for those between 16 and 25 years (with half aged 16 to 20 years) who have been registered with the NZES for at least thirteen weeks. Young people are encouraged to participate in conservation projects which benefit their local communities as well as themselves and where they can learn about conservation, gain work skills, pick up on lost educational opportunities and experience the outdoors.

The projects average twenty-one weeks and are sponsored by government agencies, educational institutions, iwi trusts and community organisations with government funding for overhead costs and training allowances. The average age of participants is 19.5 years with an average 3.7 years of secondary education, though 60 percent have fewer than 3 School Certificate passes. Forty-nine percent are Maori.

Around 1,670 young people participate in Conservation Corps each financial year. 1995 results showed that six months after leaving the programme almost 90 percent moved to employment, further education and training. About 4,400 have taken part since the Corps began in 1989.

Youth Service Corps— This government-funded programme administered by the Ministry of Youth Affairs for 16 to 20-year-olds registered with the NZES for at least 13 weeks, is modelled on the Conservation Corps with community service as the theme instead of conservation. In 1995 about 200 young people participated in Youth Service Corps in selected areas. They had an average age of 18 years, 44 percent were Maori and 20 percent Pacific Islanders, and 84 percent had fewer than 3 School Certificate passes.

14.4 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 14.12 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 14.12. MEDIAN INCOMES BY EMPLOYMENT STATUS, 1991 CENSUS*

Employment statusMedian 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 14.13. 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.

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 14.13. 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 force†25,72120,20223,479
Part-time in labour force‡10,4839,1199,355
Non-labour force8,9718,8408,890
              Total19,24311,27814,142

Earnings

Apart from the five-yearly Census of Population and Dwellings the other source of information on earnings from employment is the Quarterly Employment Survey. The Quarterly Employment Survey covers all 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.

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.

WAGE RATES
Movements of indexes

The average weekly levels of ordinary time and overtime earnings are shown in table 14.14. Average total weekly earnings and average ordinary time weekly earnings have increased steadily over recent quarters. Average overtime weekly earnings show a distinct seasonal pattern, tending to be higher in the February and November surveys than at other times of the year. The unusual increase in average overtime weekly earnings between February and May 1994 was mainly due to an increase in overtime hours paid for. Average overtime weekly earnings have also tended to increase over the last couple of years.

People employed in the central government sector are paid, on average, more than those in other sectors. This reflects the fact that there are few or no employees in the public sector in several low-paying industries that provide considerable employment in the private sector, such as textile manufacturing, construction, retail trade and hotels. Table 14.15 shows average ordinary time hourly and weekly earnings in the private, central government trading, central government non-trading, local government trading and local government non-trading sectors. In both the central government trading and central government non-trading sectors, average ordinary time weekly earnings exceed $660 per week as compared with an average weekly wage of $548 in the private sector. Average weekly earnings in local government lie between those of the central government and private sectors.

Table 14.14. AVERAGE WEEKLY EARNINGS

Date of surveyAverage weekly earnings*
Ordinary TimeOvertimeTotal†

* Includes allowances and special payments (bonuses, penal and shift allowances, paid leave and commission) earned in the payweek. Payments not earned in the payweek (eg back pay, redundancy and severance pay) and non-taxable payments, such as tool money, are excluded.

† Average ordinary time and total weekly earnings are averages for full-time equivalent employees. Overtime weekly earnings are averaged over full-time employees only as it is assumed that only full-time employees work overtime. For this reason, average total weekly earnings do not equal the sum of average ordinary time and overtime earnings.

Source: Quarterly Employment Survey.

 $
1991—Aug537.8831.66565.24
          Nov541.4035.84572.34
1992—Feb549.4435.16579.99
          May550.9433.68580.00
          Aug549.4030.07575.19
          Nov554.7834.68584.42
1993—Feb555.7234.27585.31
          May556.0032.29583.62
          Aug553.6729.83579.02
          Nov558.0235.89588.44
1994—Feb563.5233.91592.55
          May567.8235.58598.04
          Aug567.2533.26595.34
          Nov574.0037.85605.89
1995—Feb578.1036.24609.10
          May583.2635.26613.05

Table 14.15. AVERAGE ORDINARY TIME HOURLY AND WEEKLY EARNINGS, FEBRUARY 1995

 PrivateCentral government tradingCentral government non-tradingLocal government tradingLocal government non-tradingAll sectors
Source: Quarterly Employment Survey.
 $
Hourly earnings—
Male15.8819.9020.6217.2217.3016.69
Female12.6515.1615.4913.3514.9413.54
Total14.5918.1417.4616.3816.4715.31
Weekly earnings—
Male613.07780.39794.67681.82672.85644.99
Female456.58569.86591.06485.95544.17496.77
Total547.99700.00668.80636.37625.31578.10

Real wage rates

The quarterly Real Wage Rate Index (RWRI) was first released for the June 1994 quarter, having been calculated back to the December 1992 quarter. It represents the first stage in the development of a replacement for the Real Disposable Income Index (RDI) which was discontinued in the March 1994 quarter. The two series are not comparable.

The RDI was developed in the early 1980s. This period was characterised by high inflation, considerable fiscal drag effects and a high proportion of centrally negotiated wage settlements.

Recent structural changes in the New Zealand economy, notably the deregulation of the labour market with the introduction of the Employment Contracts Act in 1991, have meant that the methodology used to calculate the RDI is less representative of the current economic environment. As a result of these and other inadequacies, the RDI series was discontinued and in the future a more comprehensive disposable income index will be developed.

The RWRI measures the changing after-tax purchasing power of wages and salaries for a fixed number of hours worked. The index shows the effect that changes in negotiated wage rates, taxation, benefits and the prices of goods and services have on the buying power of wages and salaries. From the index we can see if after-tax wage rates are keeping up with or falling behind inflation. The contributing influences of the RWRI are measured separately by the all salary and wage rates component of the Labour Cost Index (SWLCI), the Ratio of Disposable Income to Gross Income (RODGI), the After-tax Wage Rate Index (AWRI) and the Consumers Price Index (CPI).

The RWRI uses the all salary and wage rates component of the Labour Cost Index to measure changes in salary and wage rates. The Labour Cost Index is derived from the Household Labour Force Survey (HLFS) and was first calculated for the December 1992 quarter. The SWLCI measures movements for a fixed number of hours, in salary and ordinary time wage rates and overtime wage rates.

The SWLCI is combined with a Ratio of Disposable Income to Gross Income measure (RODGI) to obtain the After-tax Wage Rate Index (AWRI), designed to measure the nominal after-tax purchasing power of wages and salaries. The RODGI shows changes in the proportion of gross income that is received as disposable income, that is, the effect of changes in income tax, tax rebates (such as family support) and social welfare benefits. The effect of some benefits such as the special benefit and the accommodation supplement are not reflected in the RODGI.

The RODGI is calculated using a computerised system developed by Statistics New Zealand to model the incidence of income taxation. This model, known as ASSET, is based on data obtained from the Household Expenditure and Income Survey (HEIS). The RODGI reflects changes in the tax and benefit system and will generally remain stable as long as tax rates, family support and benefit rates do not alter.

The AWRI is then deflated by the all groups CPI to account for the effects of inflation on the after-tax purchasing power of wages and salaries. The CPI is a measure of retail prices paid by New Zealand households for goods and services purchased in New Zealand. Ideally, the RWRI should use a CPI that is specifically calculated to measure inflation as it affects wage and salary earners, but such an index is not available. In practice, a CPI calculated for wage and salary earners is unlikely to differ significantly from the official CPI.

Movements of the LCI, AWRI, CPI and RWRI are summarised in table 14.16 and figure 14.8. Figure 14.8 shows the trend of the increasing RWRI in the June 1994 year being reversed in the June 1995 year. This change in direction is caused by the absence of significant tax and benefit changes, and an inflation rate more than four times higher in the June 1995 year compared to the previous year.

The RWRI dropped by 3.2 percent in the June 1995 year reflecting the failure of after-tax wage rates to keep up with inflation over this period, with the 4.6 percent increase in the CPI being only partially offset by a 1.4 percent increase in the AWRI. The purchasing power of wages and salaries started to deteriorate from the September 1994 quarter with the 1.2 percent increase in consumer prices causing a 0.7 percent drop in the RWRI despite a 0.5 percent increase in after-tax wages and salaries. The CPI continued to increase at around the same rate in each of the remaining quarters of the June 1995 year. As there were no major tax or benefit changes during this year, the increase in the AWRI was exactly the same as that of the LCI. An increase in the Family Support tax rebate on 1 October 1994 had only a very minor effect on after-tax wages and salaries.

Table 14.16. REAL WAGE RATE INDEXES

 Labour Cost Index*†After Tax Wage Rate Index‡Consumers Price Index§Real Wage Rate Index‡

* All Salary and Wage Rates Index measures the change in rates paid for actual hours worked as overtime in the base period (i.e. the December 1992 quarter). Some of these may have fallen to ordinary time levels in subsequent quarters.

†Index provides an overall measure of changes in ordinary time and overtime pay rates (i.e. Salary and Ordinary Time Wage Rates, and Overtime Wage Rates).

‡ Index has been revised from September 1993 onwards to include the effect of accommodation supplement which was introduced on 1 July 1993.

§ Percentage changes are based on official movements calculated by Infos and may not exactly correspond to those calculated from rounded index numbers listed.

Quarterly
1992—Dec1000100010001000
1993—Mar1003100310011002
           Jun100610041007997
           Sep10081015R10121003
           Dec10101017R10141003R
1994—Mar10131020R10141006R
           Jun10151025R10181007R
           Sep10201030R10301000R
           Dec10221032R1042990R
1995—Mar10261036R1054983R
           Jun102910391065975R
Percentage change from previous quarter
Quarterly
1993—Mar0.30.30.10.2
           Jun0.30.10.6−0.5
           Sep0.21.1R0.50.6
           Dec0.20.2R0.20.0R
1994—Mar0.30.3R0.00.3R
           Jun0.20.5R0.40.1R
           Sep0.50.5R1.2−0.7R
           Dec0.20.2R1.2−1.0R
1995—Mar0.40.4R1.2−0.7R
           Jun0.30.31.0−0.8R
Percentage change from same quarter of previous year
Quarterly
1993—Dec1.01.7R1.40.3
1994—Mar1.01.7R1.30.4R
           Jun0.92.1R1.11.0R
           Sep1.21.5R1.8−0.3R
           Dec1.21.5R2.8−1.3R
1995—Mar1.31.6R4.0−2.3R
           Jun1.41.44.6−3.2R

In contrast to the June 1995 year, the LCI increased by only 0.9 percent in the year to June 1994. In this year, tax and benefit changes affecting wage and salary earners helped after-tax wages and salaries to rise faster than consumer prices. While the CPI rose by 1.1 percent during this year, the AWRI increased by 2.1 percent resulting in a 1.0 percent annual increase in the RWRI. Tax and benefit changes in the June 1994 year included the lowering of the ACC earner premium from 80 to 60 cents per $100 of earnings, an increase in the maximum income threshold for entitlement to Guaranteed Minimum Family Income tax rebate (GMFI) and the introduction of the Accommodation Supplement.

Wage indexes

Prevailing Weekly Wage Rates Index (PWWRI). This index measured changes in ordinary time wage and salary rates being paid to full-time adult employees whose minimum pay rates were contained in awards or agreements registered with the Arbitration Commission in the base period of the index.

The index was calculated using pay rates for a fixed set of job descriptions obtained by a postal survey of a representative sample of employers, for the pay period in which the 15th of the middle month of the quarter falls.

In addition to an index for all sectors, separate indexes were compiled for the private, local authority and central government sectors. Each of these sectors is further divided into specific occupation and industry groups. Industry groupings conform to the production groups of the New Zealand System of National Accounts, and the occupational 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 were 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 awards or registered agreements. A table of the PWWRI for 1990-93 appeared in the 1995 Yearbook.

Labour costs

Labour Cost Index (LCI). This index, which replaced the PWWRI in the September 1993 quarter, measures changes in salary and wage rates and changes in non-wage labour-related costs. It is calculated using information obtained by a quarterly postal survey of employers.

In addition to an index for all sectors, separate indexes are compiled for the local government, central government, public and private sectors. Each of these sectors is further divided into specific occupation and industry groups. Industry groupings conform to the production groups of the New Zealand System of National Accounts, and the occupational groups to the New Zealand Standard Classification of Occupations.

Salary and wage rates being paid to employees in all sectors were, on average, 1.4 percent higher in the June 1995 quarter than in the June 1994 quarter. It can be seen in table 14.17 that this increase is slightly higher than the 1.3 percent increase for the year to March 1995 and well above the 0.9 percent increase for the year to June 1994.

Table 14.17. SALARY AND ORDINARY TIME WAGE RATES: BY SECTOR*

 Local government sectorCentral government sectorTotal public sectorPrivate sectorAll sectors combined

* Base: December 1992 quarter (=1000).

Source: Labour Cost Survey.

Indexes
1992—Dec10001000100010001000
1993—Mar10001001100110031003
           Jun10051002100310071006
           Sep10091003100410101008
           Dec10111004100510121010
1994—Mar10121005100610151013
           Jun10151007100810181015
           Sep10191011101210221020
           Dec10241012101410251022
1995—Mar10261015101710291026
           Jun10271019102010321029
Percentage change from same quarter of previous year
1993—Dec1.10.40.51.21.0
1994—Mar1.20.40.51.21.0
           Jun1.00.50.51.10.9
           Sep1.00.80.81.21.2
           Dec1.30.80.91.31.2
1995—Mar1.41.01.11.41.3
           Jun1.21.21.21.41.4

The gap evident for some time between public and private sector increases continued to narrow in the year to June 1995. Salary and wage rates being paid in the private sector increased by 1.4 percent in the year to June, while public sector rates rose by 1.2 percent. The gap, now just 0.2 of a percentage point, has narrowed in recent quarters and is well below that of 0.6 of a percentage point for the year to June 1994.

More than half of the ordinary time salary and wage rates in the survey were unchanged in the year to June 1995. Fifty-four percent stayed the same and 45 percent increased. Of those which increased, nearly two-thirds rose by more than 1 but not more than 3 percent. The average increase came in at 3.2 percent.

Non-wage labour costs in the survey are annual leave and statutory holidays, superannuation, ACC employer premiums, medical insurance, motor vehicles available for private use and low interest loans. Table 14.18 shows that non-wage costs have been rising more quickly than salary and wage rates. The increase in non-wage costs for the year to June 1995 was 5.1 percent, mainly due to higher leave and ACC employer premium costs.

Salary and wage rates accounted for 83 percent of labour costs in the index's base period, with non-wage labour costs accounting for the remaining 17 percent. Overall, labour costs rose 2.0 percent in the year to June 1995, continuing an upward trend evident to date in the size of annual increases.

Table 14.18. LABOUR COSTS BY TYPE OF COST*

 Salary and ordinary time wage ratesOvertime wage rates†All salary and wage rates‡All non-wage labour costs§All labour costs||

* Base: December 1992 quarter (=1000).

†Indexes measure changes in rates paid for actual hours worked as overtime in the base period (i.e. the December 1992 quarter). Some of these pay rates have fallen to ordinary time levels in subsequent quarters.

‡ Including overtime.

§ Indexes measure changes in all surveyed non-wage labour costs (i.e. annual leave and statutory holidays, superannuation, ACC employer premiums, medical insurance, motor vehicles available for private use and low interest loans).

|| Indexes measure changes in all surveyed labour costs (i.e. all salary and wage rates and all non-wage labour costs).

Indexes
1992—Dec10001000100010001000
1993—Mar10039991003982999
           Jun100699810069801001
           Sep100999910089831004
           Dec101099810109861006
1994—Mar1013998101310111013
           Jun1016999101510231017
           Sep10201000102010251020
           Dec10231002102210281023
1995—Mar10261006102610581031
           Jun10291007102910751037
Percentage change from same quarter of previous year
1993—Dec1.0−0.21.0−1.40.6
1994—Mar1.0−0.11.03.01.4
           Jun1.00.10.94.41.6
           Sep1.10.11.24.31.6
           Dec1.30.41.24.31.7
1995—Mar1.30.81.34.61.8
           Jun1.30.81.45.12.0

14.5 Labour relations

There is a range of legislation dealing with the employment relationship. The Employment Contracts Act 1991 sets out the main framework giving employees and employers choice in terms of who represents them, what type of employment contract should apply and what the contract should contain. Other employment legislation sets out minimum statutory conditions of employment, for example minimum entitlements to paid holidays.

The New Zealand Council of Trade Unions was formed in October 1987 to unite private and public sector unions previously represented by separate national organisations. It is the national advocate of worker interests, it organises unions on issues of mutual concern and it represents New Zealand workers internationally. Twenty-five unions (representing 80 percent of all union members) are affiliated to the CTU.

The New Zealand Employers' Federation, formed in 1902, has about 45 national business organisations affiliated, and four regional member organisations provide direct services to some 10,000 members. Funded by subscriptions of voluntary members, it represents the country's employers by influencing the conditions in which they operate, particularly through the development of public policy supportive of an open competitive economy and private enterprise.

Employment Contracts Act 1991. This act 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.

University lecturers demonstrate for more pay.

In particular the act provides for:

Freedom of association and voluntary membership of employees' organisations— 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.

Bargaining arrangements— the nature of bargaining arrangements is negotiable between employers or their representative. In particular:

  • Every employer has with each of their employees an individual or collective contract or both.

  • Employees and employers have the right to authorise another person, group or organisation to represent them in negotiations for an employment contract.

  • Representatives 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 representative, 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 of a collective contract negotiated by the representative.

  • Authorised representatives have rights of access to the workplace to assist the process of negotiation at any reasonable time.

  • Authorised representatives may become party to an employment contract when the employer, employees and representative concerned all agree.

The bargaining arrangements give employers and employees the freedom to negotiate about what type of contract they want, and about the content of the contract, which may include any matter they choose. Thus a variety of contractual arrangements is possible, including individual or collective contracts and contracts which cover a single employer or a number of employers. Collective contracts will bind only 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 certain provisions of the act, including for example the remedies which are available. 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 to 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 standard disputes procedure provided by the act will apply unless other effective procedures are agreed. 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. 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.

Lawful and unlawful strikes and lockouts— in general terms, strikes relating to the negotiation of collective contracts are lawful so long as there is no collective contract in force relating to the employees on strike. 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 the employers have not agreed to this structure), or which relate to personal grievances or disputes over the interpretation, application or operation of an employment contract are also unlawful. Notice must be given for strikes and lockouts in essential industries. 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 during industrial action. The Employment Court has jurisdiction in relation to torts and injunction actions with respect to industrial action.

Specialist labour relations institutions— there is a lower order Employment Tribunal and a higher order Employment Court, with exclusive jurisdiction over employment matters. The tribunal has two main functions: mediation assistance and adjudication. Its jurisdiction includes:

  • Providing mediation assistance. 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.

Minimum entitlements. Certain other provisions, known as the minimum code of employment, provide statutory minimum entitlements which apply to all employees. These include:

  • A statutory minimum wage at two levels: an adult minimum wage applying to employees aged 20 and over, and a youth minimum wage applying to people age 16 to 19.

  • Protection from unlawful deductions from wages.

  • Eleven paid public holidays where the holiday would otherwise be a working day.

  • 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 minimum wages for adults and young people, establishing floors for each of these groups below which wages cannot generally fall. The Minimum Wage Order 1995 sets the adult minimum wage, for those aged 20 and over, at $6,375 per hour, $51 for an 8 hour day, and $255.00 for a 40 hour week. The youth minimum wage, for young people aged 16 to 19, is set at 60 percent of the adult minimum wage, and amounts to $3,825 per hour, $30.60 for an eight hour day, and $153.00 for a 40 hour week. The new minimum wages rates came into force on 18 March 1996.

There are several groups who are not entitled to the minimum wage. They are:

  • Those under the age of 16 years.

  • Trainees undergoing training in the nature of apprenticeship.

  • Full-time university students employed during holidays to obtain practical experience related to their studies.

  • Persons undergoing certain 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. The Minimum Wage Act 1983 provides that, unless the parties agree otherwise, every employment contract under the Employment Contracts Act shall fix the working week at not more than 40 hours, exclusive of overtime.

Holidays. The Holidays Act 1981 contains minimum rights and obligations concerning annual leave, public holidays, and special leave for sickness, domestic or bereavement reasons. They apply to employees whether they are full-time, part-time, permanent, casual or temporary. Employers and employees can not agree to contract out of the Holidays Act, but can agree to better terms and conditions.

Public Holidays— the Holidays Amendment Act 1991 now ensures that all workers receive 11 paid public holidays as of right, if they fall on days which would otherwise be working days for them. 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 (25 April); Good Friday; Easter Monday; Queen's Birthday; Labour Day; and the anniversary of the province where an employee is employed. Where employees work on a public holiday, and that public holiday falls on a day they would normally work, they are entitled to a paid day in lieu. There are special exceptions for Anzac Day and Waitangi Day where employees who work for greater than ordinary rates on either Anzac or Waitangi days do not have to be granted a day in lieu. In the case of the Christmas/ New Year period falling on either a Saturday or Sunday, provision has been made for the transferral of these holidays to a Monday or Tuesday.

Annual leave— 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.

Special leave— on completion of six months employment with an employer, an employee is 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. Under the Parental Leave and Employment Protection Act 1987, parental leave is available to employees who are having a child, and to their partners. It is also available to employees, male or female, who are adopting a child under five years old. A medical certificate may be required as proof of pregnancy, or in the case of adoption, a letter from the Department of Social Welfare. To apply for parental leave under the act an employee must have worked at least 10 hours a week for 12 months at the expected date of birth and for the same employer. Applications for parental leave should in most cases be made in writing at least three months in advance. There are some exceptions for medical or work problems during pregnancy, and special provisions for adoption.

All forms of leave under the act are unpaid. The four types of parental leave available include:

  • Special Parental leave— leave of up to 10 days is available to a women during pregnancy for reasons connected with the pregnancy.

  • 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 about 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 taken by either parent or shared between both parents, although any period taken as maternity leave is deducted from the total available. Paternity leave is additional to the 12 month entitlement.

Job Protection— where an employee takes parental leave of four weeks or less, their job must be kept open. Where parental leave of more than four weeks is applied for, the employer may decide that the job is a key position and cannot be filled by a temporary replacement. The employee has a right to challenge this decision. If parental leave over four weeks is taken and the employee has accepted that their job cannot be kept open, the employee will be entitled to a preference period of six months after the parental leave finishes where the employer must offer her or him any available job that is substantially similar to the previous one.

Employers may not dismiss an employee for being pregnant or for applying for parental leave. Employees who are dismissed or given notice of dismissal for either of these reasons have a special right to go directly to the Employment Tribunal and can ask for a temporary order to give them their job back, or cancel the notice of dismissal. Any complaints about other parental leave matters should be taken to the employer first and if still unsettled may then be taken to the Employment Tribunal.

The provisions of the Parental Leave and Employment Protection Act taken together are a minimum standard. Employment contracts may have different provisions. If the employment contract has provisions which are overall less favourable to an employee than the act then the employee can claim under the act instead. If the employment contract provisions on parental leave are better overall, the employee can claim them instead.

TIME OUT AROUND THE WORLD
Annual leave entitlement, 1994

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 cannot differentiate in pay rates between employees on the basis of their sex. Under the Human Rights Act 1993, which replaced 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' sex, marital status, religious or ethical belief, colour, race, ethnic or national origins, disability, age, political opinion, employment status, family status, or sexual orientation. Discrimination in terms and conditions of employment, training, promotion and dismissal because of the employees' colour, race, ethnic or national origins, sex, age, marital status, or religious or ethical belief, and sexual harassment are also grounds for taking a personal grievance under the Employment Contracts Act 1991. Employees may make a complaint under the Human Rights Act or may use the personal grievance procedures under the Employment Contracts Act to enforce their rights in cases of discrimination or sexual harassment. Where both procedures are available, the employee must choose one or other procedure.

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 was established in 1991 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.

Employment Related Education Fund. The Employment Related Education Fund fosters training and education to improve workplace relationships between employees and employers. Under the Employment Contracts Act, direct involvement in the negotiation of terms and conditions of employment, is available to all employees and employers. The Employment Related Education Fund is available to help develop negotiation and other skills of those directly involved in the workplace.

The fund is contestable with applicants bidding for the amount they need once a year for a project which meets the aims of the fund. The intention is not only to assist employment-related education in a successful applicant's own area, but also to allow sponsored projects to act as a positive model for other groups.

Work stoppages

Annual publication of statistics relating to what are now termed work stoppages began in 1921-1922 when data from the ‘Quarterly returns re Strikes and Lockouts’ were first collected by the then Census and Statistics Office and the Department of Labour. This early data was largely obtained from returns furnished by Inspectors of Factories. Work stoppages have, since 1920, been variously collected under the names ‘industrial disturbances’, ‘industrial disputes’ and ‘industrial stoppages’ before the term ‘work stoppages’ was adopted in 1984.1 From 1988 onwards the coverage of work stoppages has been extended to include the public sector.

For statistical purposes, work stoppages are defined not only as those disputes which result in a complete withdrawal of labour by workers or a lockout by employers, but also disputes in which an organised ‘go slow’, refusal to work overtime or other methods of passive resistance are clearly manifested. This includes unauthorised stopwork meetings as well as unauthorised delays in resuming work after stopwork meetings. These are called ‘partial’ strikes, or partial lockouts if the action is initiated by the employer.

Published statistics relate to complete strikes and complete lockouts which involve the equivalent of 10 or more working days lost (eg 10 people striking on one day), and to all partial strikes and lockouts which have been identified. It should be noted that the statistics regarding the number of workers involved in work stoppages include workers who, while not participating in a stoppage directly, are suspended because of the unavailability of normal work. Work stoppage data related to partial lockouts (the situation where an employer, although allowing employees to work normal hours, withdraws the provision of contractual obligations), is still collected despite the ruling by the Employment Court in June 1994 that such action is unlawful.

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 (also measuring economic impact). Instances where several stoppages occur over the same issue are treated as one stoppage.

Work stoppage statistics are compiled by Statistics New Zealand from the ‘Record of Work Stoppage Forms’ submitted by the Department of Labour. Stoppages are identified by scanning newspapers and by regular contact with employee and employer organisations. Labour inspectors in Auckland and Christchurch also pass on any information that comes to hand. Once a dispute is identified in one of these ways a form is sent to the employer for completion.

The Employment Contracts Act 1991 places restrictions on the ability of employees to strike and on the ability of employers to lock out by making strikes and lockouts lawful only in certain circumstances. The right to strike and lock out is recognised, but the legislation attempts to minimise the extent and wider economic impact of industrial action.

1 In 1984 data was revised from 1980 in accordance with this reclassification to include stoppages not directly related to terms and conditions of employment, for example, protests over the presence of a nuclear powered vessel, or where a demand was made of a third party, eg the Government.

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 the employees involved is still in force.

  • Is concerned with the issue of whether an employment contract will bind more than one employer.

Table 14.19. WORK STOPPAGES: 1921-94

YearTotal stoppagesWorkers involvedWorking days lostAverage days lost per worker involvedEstimated loss of wages
Source: Department of Labour
     $(000)
1926596,26447,8117.6365
1931246,35648,4867.6389
1936437,35416,9802.3126
19418915,26126,2371.7269
19469615,69630,3931.9480
195110936,8781,157,39031.386,223
19565013,57923,8701.76168
19617116,62638,1852.30299
196614533,13299,0952.99878
197131386,009162,5631.892,109
1976487201,085488,4412.4310,840
1981291135,006388,0862.8720,411
1986215100,6331,329,05413.21119,496
19917151,96299,0321.9111,577
19925426,803113,7424.2419,372
19935821,30323,7701.122,863
19946916,04238,2622.394,580

Table 14.2. INDUSTRIAL DISTRIBUTION OF WORK STOPPAGES, DECEMBER YEARS

Industry groupTotal number of stoppages*Number of employees involvedWorking days lost†Average days lost per employee involvedEstimated loss in wages and salaries‡

* Stoppages which affect more than one industry have been recorded in each of the industries concerned. For this reason the total figures may not be the sum of the industry figures.

† Rounded to the nearest whole day.

‡ Rounded to the nearest $1,000.

§ This is a combination of industries. It is necessary to group these industries together to preserve the confidentiality of the statistics.

|| There was only one stoppage in these industries in 1992. Figures are included in the all industries total.

¶There were two stoppages in these industries in 1993. Figures are included in the all industries total.

◊ There was only one stoppage in these industries in 1994. Figures are included in the all industries total.

** In addition to the reason given in *, total figures for the number of working days lost and the estimated losses in wages and salaries may not equal the sum of their respective columns due to rounding.

     $(000)
Agriculture, Mining, Electricity and Related Industries§
199132807,84028.001,250
1992||
1993¶
1994◊
Manufacturing
19913718,98232,9521.743,671
1992275,25392,29617.5716,821
1993191,7653,0141.71368
1994323,99412,6563.001,439
Transport, Storage, Communications and Construction§
1991234,2878,8542.10831
199253641100.3016
199364786461.3563
199455,92915,7912.502,046
Finance, Insurance, Real Estate, Retail, Wholesale, Restaurants and Hotels§
1991105847511.3065
1992||
199354211,1722.78135
199454509402.0980
Community, Social and Personal Services
19912127,82948,6361.755,761
19922021,10621,2551.012,528
19932618,53318,1450.982,188
1994265,6668,8041.501,008
Total All Stoppages**
19917151,96299,0321.9111,577
19925426,803113,7424.2419,372
19935821,30323,7711.122,863
19946916,04238,2622.394,580

NUMBER OF STOPPAGES

TOTAL WORKDAYS LOST

The scale for this graph should read: Number (000)

LOCKOUTS
As a percentage of all stoppages

  • 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 industrial 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.

Table 14.19 shows that since 1991, the year the Employment Contracts Act was introduced, the number of work stoppages has fallen to levels not recorded since the early 1960s. Despite fluctuations, there has been a steady decline since the late 1980s. A similar pattern emerges for the number of working days lost in work stoppages. During the 1994 calendar year there were 69 stoppages recorded, 11 more than in 1993, but significantly fewer than the 171 stoppages recorded five years ago. The number of employees involved in industrial action has fallen significantly—to the lowest level since 1965. In 1994 there were slight increases in the number of working days lost, the average days lost per employee and losses in wages and salaries, but all except average days lost per worker were down on levels recorded before 1992. The trend in the number of working days lost in stoppages has been mainly downward since 1986.

Following the introduction of the Employment Contracts Act in 1991 there has been a change in the distribution of lockouts as a percentage of all stoppages. The graph shows that in the 1990 calendar year lockouts comprised less than 1 percent of all stoppages, but increased to over 11 percent by 1992. In the 1994 calendar year lockouts comprised 8.7 percent of all stoppages.

Contributors

  • 14.1 Statistics New Zealand; Department of Labour.

  • 14.2 Statistics New Zealand.

  • 14.3 Ministry of Education; Department of Labour; Education and Training Support Agency; Ministry of Youth Affairs; Te Puni Kokiri.

  • 14.4 Statistics New Zealand.

  • 14.5 Department of Labour; Statistics New Zealand; New Zealand Council of Trade Unions; New Zealand Employers' Federation; Industrial Relations Service.

Special articles

Statistics New Zealand; Department of Labour.

Further information

Employment and Incomes

Census of Population and Dwellings 1991; Report CO5: New Zealanders at Work. Statistics New Zealand.

Household Labour Force Survey. Statistics New Zealand.

Labour Cost Survey. Statistics New Zealand.

Labour Market 1995. Statistics New Zealand.

National Advisory Council on the Employment of Women (NACEW) Annual Report 1994-95.

New Zealand Social Trends. Work; Statistics New Zealand.

Quarterly Employment Survey. Statistics New Zealand.

Report of The Career Service Rapuara (Parl paper E 27).

Work Stoppages Survey. Statistics New Zealand and Department of Labour.

Labour Relations

Employment—Your Contract, Your Rights, Your Obligations. Department of Labour, 1995.

Contract—The Report on Current Industrial Relations In New Zealand. Department of Labour, 1992.

The Department of Labour produces a series of pamphlets regarding rights and obligations covering employment contracts.

Chapter 15. Science and technology

Working on a crystal in the “clean room”.

15.1 Organisation of science

The new approach to the funding and delivery of public sector research, science and technology has three principal objectives: accountability, enhanced economic growth, and improved decision-making.

A key element of the science reforms has been the organisational separation of government's involvement in science and technology policy, science funding and the carrying out of research and development. This separation has enabled much clearer objectives to be established at all levels in the science system with corresponding gains in the ability of organisations to focus their activities.

The separation of operational activities, such as research, from policy has enabled those operational activities to be given a clearer science focus. The New Zealand science system used to be dominated by a small number of large government departments with mixed roles and direct funding. The new system is characterised by a larger number of more highly focused operating agencies faced with much stronger and more transparent disciplines for excellent science performance.

Science and technology policy including science priorities and overall funding levels is decided by Cabinet based on the recommendations of a Cabinet Committee. The name and membership of the Cabinet Committee with responsibility for science can change from time to time.

There are presently two ministerial portfolios in the Government with specific responsibilities for science and technology. These portfolios are Research Science and Technology (RS&T) and Crown Research Institutes (CRIs). The RS&T portfolio includes the Government's interest in both policy and funding (or the purchase of science). The CRI portfolio covers the government's ownership interest in CRIs.

Structures

The science and technology system in New Zealand is now structured so as to create clear objectives and a clear separation of functions between organisations. There are three tiers of direct government involvement: policy and ownership, funding, and operations.

The Ministry of Research, Science and Technology: Te Manatu Putaiao (MoRST) advises the government on the overall policy framework, priorities and funding for research, science and technology and to provide contract management services to the Minister for the implementation of science funding.

The ministry is also responsible for gathering and disseminating statistics and descriptive information on research, science and technology activities and for administering intergovernmental science relations.

To facilitate its advisory role to the government, the ministry maintains a national science and technology information base. The ministry has no permanent operational responsibilities in science and technology to avoid conflict of interest with its advisory function and to reflect the general policy of restricting core departments to activities which are best handled at governmental level.

The Office of the Chief Scientist is also based in the ministry and ensures the provision of scientific and technological input into government policy development as a whole and in the co-ordination of science.

Foundation for Research, Science and Technology. The foundation is a statutory authority with an independent board, reporting to the Minister of Research, Science and Technology. It is responsible for almost half of the gross expenditure on research and development in New Zealand, investing approximately $300 million annually in line with broad priorities set by the Government and more detailed sectoral research strategies. The foundation's roles are to:

  • Invest public funds in research and development and human resources.

  • Provide independent advice to the government on science and technology.

  • Encourage technological innovation in industry.

The foundation administers the Public Good Science Fund (PGSF) which is a contestable pool of funds for research in science and technology. Public good science is defined under the Foundation Act as that which:

  • Increases knowledge or understanding of the physical, biological or social environments.

  • Develops skill bases and expertise important to New Zealand.

  • Generates outputs of future benefit to New Zealand.

  • Is unlikely to be funded adequately from other sources.

Hamiora Werahiko, a 16-year-old Rotorua Boys High School pupil, won the premier award at the 1995 ECNZ National Science Fair for his project on kai pounamu—the traditional Maori technique for preserving and storing food. He showed that modern biological analysis proved chicken (a substitute for kereru, wood pigeon), kept in gourds and immersed in its own sterilised fat, was safe for human consumption. Hamiora's prize was a trip to the 1996 International Science and Engineering Fair in Tucson, Arizona.

The foundation receives bids from Crown research institutes, research associations, government departments, incorporated societies, non-profit private trusts, private individuals, state-owned enterprises and universities, which compete to win contracts to undertake agreed research programmes that reflect national science priorities. In the 1994-95 financial year the foundation allocated approximately $258 million from the PGSF. Crown research institutes received $222,472 million, research associations received $18,528 million, universities received $13,492 million and private organisations received $3,673 million.

In June 1995 the Government released a Statement of Science Priorities that stated strategic directions and funding pathways for 17 socio-economically defined science outputs and directed the foundation to develop research strategies to guide allocation of the Public Good Science Fund in each output through to 2000-2001.

The 17 Research Strategies are available from the foundation. The science priorities and research strategies were developed in consultation with all key stakeholders in science. Funding decisions depend largely on whether research proposals (provided they achieve satisfactory standards of scientific and technological merit) fit the relevant strategy and meet other criteria, including linkage with science users.

The Technology for Business Growth (TBG) scheme aims to increase the commitment to research and technological development by New Zealand firms by contributing funding to projects with commercial outcomes. The total funds available to all TBG programmes is $10.6 million per annum.

The foundation administers and funds two fellowships. The New Zealand Science and Technology Post-Doctoral Fellowships provide early career support for New Zealand scientists, engineers and social scientists of outstanding talent. The Graduate Research in Industry Fellowship (GRIF) Scheme supports masterate and doctorate projects in science, technology and engineering conducted in companies.

In 1995 the foundation was charged with the responsibility of establishing the Marsden Fund, a new fund aimed at enhancing the quality of the research environment by supporting excellent research and researchers. The Marsden Fund supports research on the basis of its ingenuity and the likelihood of generating excellent science rather than science which is immediately applicable. Ongoing administration of the fund is carried out by the Royal Society of New Zealand.

Ministerial Advisory Group. Established in 1992, the MAG provides a consultative forum on issues and policy proposals in research, science and technology. Its members are appointed by the Minister of Research, Science and Technology so as to provide perspectives from major science and technology organisations and interest groups in New Zealand. The group includes representatives from government science organisations, research organisations, universities, the private sector and Maori who engage in significant scientific activity.

Crown Company Monitoring and Advisory Unit. CCMAU monitors Crown-owned science entities, advises the shareholding ministers and reviews the performance of the boards of Crown companies including the Crown research institutes (CRIs).

The unit also provides administrative and analytical support for the External Advisory Group for CRIs. This group comprises people with a proven commercial and/or scientific and technical experience. The members are appointed by the Minister of CRIs to provide independent advice on the performance of the CRIs.

Government science agencies

On 1 July 1992 the final organisational changes of government-funded science were put in place with the formation of nine Crown-owned research institutes. (A tenth, the Institute for Social Research and Development, closed in 1994.) 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).

Crown research institutes. The nine autonomous research institutes are 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. They are:

NZ Forest Research Institute Ltd— carries out research and development to enhance New Zealand's advantage in plantation forestry and help 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.

There are 450 staff with the main laboratories and headquarters based at Rotorua and 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 and Forest Products Research Organisation which seek to promote forest research through a co-operative relationship between researchers and industry. Each division capitalises on critical areas of growth—tree quality and breeding, harvesting, wood processing and the use and development of new products.

AgResearch (New Zealand Pastoral Agriculture Research Institute Limited)— is an internationally pre-eminent provider of innovative solutions and opportunities to the food, fibre and biotechnology-related industries based on pastoral agriculture. Established in 1992 as a Government-owned company, it has inherited the research capability that has contributed to New Zealand's reputation as an efficient, low cost producer of pastoral agricultural products.

A CT scanner, formerly used to help diagnose human illness, is now used at Crop and Food Research to study structural changes in the soil under pasture and crops.

The institute aims to develop, acquire and manage intellectual property to enhance New Zealand's international competitiveness. It has research capabilities of international standing in physiology, genetics, biotechnology and environmental impacts on agriculture. Its research has led to the development of new and novel products including food ingredients, health foods and speciality proteins, and pharmaceutical and industry inputs.

The institute has over 1,000 staff distributed between five research divisions: dairy and beef (Ruakura); sheep, deer and equine (Invermay); forage plant improvement (Grasslands); sustainable production (Lincoln); and animal health (Wallaceville).

The Horticulture and Food Research Institute of NZ Ltd— works in close partnership with New Zealand's horticulture and food organisations to help them develop and enhance their competitive advantage in local and overseas markets. Its research spans molecular biology, plant breeding and crop production, food processing, transport and the evaluation of consumer preferences.

HortResearch's strategic plan emphasises sustainable management systems for growers with research being undertaken in biochemistry, ecology, behaviour and epidemiology of plant pests and diseases, resistance mechanisms, control strategies and integrated management systems.

With nearly 600 science and support staff in 16 regional research centres and orchards throughout New Zealand, HortResearch aims to support sustainable land use, and the purity, safety and customer acceptability of plant-based products. The work covers a large range of crops of economic importance to New Zealand including fresh fruit, flowers, forestry, ornamentals and processed foods.

NZ Institute for Crop and Food Research Ltd (Mana Kai Rangahau)— focuses its research on 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. Many of the 312 staff work alongside local and overseas processing and manufacturing companies in joint venture partnerships. Farmer and grower groups are also important clients of the institute, as are other research organisations.

The institute encourages a multi-disciplinary approach to research activities, with staff skills as diverse as plant breeding and soil science, aquaculture and post harvest physiology, molecular biology, agronomy, entomology and consumer sciences.

Landcare Research NZ Ltd— New Zealand's leading environmental research organisation focusing on management of land resources for conservation and primary production. There are nearly 400 staff working at nine locations throughout New Zealand. Major offices are located on or near university campuses and links with relevant university departments are being strengthened. Smaller sites and field stations are located on campuses with other research institutes.

Science teams are researching all aspects of land environments—from developing sustainable land use systems, and managing weeds and pests, to maintaining underlying environmental quality and conserving species diversity. Attention is given to economic, social and cultural aspects of using land as well as to understanding the ecology of natural and modified environments.

This research benefits all land users, resource managers and policy makers including New Zealand and overseas governments, local and regional authorities, private enterprises, industries, recreationalists and all land owners.

Institute of Geological and Nuclear Sciences Ltd— IGNS is the premier contract research organisation providing geo-science and nuclear science expertise to the government and industry in New Zealand. 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 clients of the institute include many of the government and industrial organisations involved in geothermal, oil and gas exploration and development, and environmental studies throughout the Asia-Pacific region.

Other research organisations from Asia, Europe, North America, and Australia regularly collaborate with the institute for research programmes focused on New Zealand and international scientific and industrial needs.

The institute has 280 staff, with New Zealand offices in Lower Hutt, Wellington, Wairakei, Dunedin, and Auckland and a representative office in Bangkok, Thailand.

Industrial Research Ltd— IRL's mission is to be New Zealand's leading provider of scientific and technological research and development in the processing, manufacturing and energy industries, in partnership with the government.

The company has 420 staff and is located in Auckland, Wellington and Christchurch.

Through research partnerships, Industrial Research helps companies to position themselves at the leading edge of their market.

Adding value to natural and manufactured products is a central thrust of research, together with the introduction of advanced, efficient production technologies.

Industrial Research's energy and electrotechnology activities contribute to the long-term development of a sustainable and efficient energy infrastructure as well as providing cost effective electrotechnology solutions for commercial partners.

NIWA Taihoro Nukurangi (National Institute of Water and Atmospheric Research Ltd)— conducts research and provides related services required to give a scientific basis for the sustainable management of New Zealand's atmospheric, marine and freshwater systems and associated resources. The principal focus is on New Zealand and its territorial waters. However, NIWA has a growing interest in international projects. Environmental consultancy work is carried out in Asia and the Pacific, and involvement in the atmosphere and ocean is on a global scale.

NIWA has 600 staff with a wide discipline base covering atmospheric physics and chemistry, river hydrology, hydraulic engineering, oceanography, marine fisheries, marine and freshwater biology and sedimentology. Staff are committed to cross-disciplinary work for many research and applied science consultancy projects.

Institute of Environmental Science and Research Ltd— formerly the Institute of Environmental Health and Forensic Sciences Ltd. ESR provides science-related research and analytical and consulting services in public health, environmental health and forensic sciences to the public and private sectors in New Zealand and the Asia-Pacific region. In 1995 ESR established ESR Malaysia, a joint venture in environmental health training and consultancy, with local Malaysian partners.

In a Belfast fellmongery, Alister Gardiner of Industrial Research Ltd, Christchurch, tests a pelt grading enhancement system developed to improve the quality assessment of lamb and sheep pelts. The machine uses laser beams to automatically scan and classify many of the basic characteristics needed to grade pelts, at a rate of about one pelt every four seconds. At present, pelts are graded by eye. As faults are often difficult to detect at the early stage of processing, New Zealand pelt grades have a reputation for variability. The project to improve grading, initiated and funded by the New Zealand Meat Research and Development Council, could earn the $462 million export industry another $30 million annually. A Mark 2 version of the machine is now under development.

Studying a cross-section image of a human abdomen received on the Internet.

ESR employs 344 staff who work from six science centres around New Zealand—the Mt Albert and Mt Eden Science Centres in Auckland, the Wellington Science Centre, the Christchurch Science Centre, the Communicable Disease Centre in Wellington, ESR's Public Health Laboratory in Dunedin and Corporate Centre in Wellington. Each science centre is equipped with advanced technologies and information systems to support teams of nationally and internationally recognised scientists.

The Royal Society of New Zealand (RSNZ) is a non-governmental organisation with a special role in the new structure. The RSNZ has its own governing statute and is the body with special responsibility for recognising and representing individual scientists, fellows of the society within the Royal Society Academy, and professional societies representing single and multidisciplinary groups. The RSNZ is also becoming more involved in the allocation of science funding through schemes such as the Marsden Fund and specific fellowship programmes. The drafting of a bill reconstituting the Royal Society was finalised during 1995 and the legislation is likely to be enacted during the 1996 parliamentary session. Over the past year, the society has been functioning according to the relevant provisions of the proposed new act. Significant developments have been:

  • The establishment of a democratic electoral process, using representative electoral colleges, to constitute the governing council.

  • The admission of the social sciences and mathematics and information sciences into the membership.

  • Provision was made for the enrolment of individual members of the society.

  • The progressive appointment of standing committees representative of discrete areas of science and technology. At year's end, there were committees covering primary production, geosciences, astronomical sciences, Antarctic science, the science of the environment, marine sciences, social sciences, mathematical and information sciences, education, promotion of science, geosphere-biosphere, climate, energy and biodiversity.

  • The development of a draft code of ethical practice for acceptance by scientists and technologists.

  • The extension of activity into the science and technology education and public awareness fields. The society now provides full secretarial services to the New Zealand Association of Science Educators (previously the Science Teachers' Association), the Association of Science and Technology Centres of New Zealand and it houses the headquarters of the Telecom Technology-Science Roadshow.

  • A major sponsorship arrangement for science fairs was concluded with ECNZ and as from 1996 the fairs will be renamed the New Zealand Science and Technology Fair.

  • A new programme sponsored by ECNZ and operated by the Royal Society was launched in primary schools during the year. Named Investigate it introduces junior grade students to scientific methods and encourages their later participation in science fairs. At year's end 275,000 children were participating.

  • The International Centre for Antarctic Information and Research (ICAIR), the Australian and New Zealand Council for the Care of Animals in Research and Teaching (ANZCCART), and the Government's National Science Strategy Committees for both Climate Change and Possum/Bovine TB, operate under the auspices of the society.

  • The administration and selection of science and technology teaching fellows was transferred to the Royal Society of New Zealand effective from 1 July 1995.

  • The administration of the government's new Marsden Fund, set up to encourage curiosity-driven research, was transferred from the Foundation for Research, Science and Technology to the Royal Society effective from 1 December 1995.

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, eg 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.

Cawthron Institute. Cawthron Institute, one of two private scientific research establishments in New Zealand, was established under the Thomas Cawthron Trust Act 1924. Operations are based in central Nelson with an aquaculture facility near the city. There are 80 staff. Its testing laboratories are accredited by the US FDA for shellfish testing.

Cawthron combines basic research with commercial activities ranging from routine laboratory testing to professional marine and environmental consulting services. Its research is funded from the contestable Public Good Science Fund.

Research relating to toxic algae blooms and aquaculture continues to be a major focus for Cawthron scientists. In this area particularly, Cawthron works closely with researchers at Tohoku University in Sendai, Japan. Its scientists also work with Shizuoka University in Japan in natural products chemistry and pharmacology.

Cawthron undertakes research into marine and freshwater microbiology and ecology, provides commercial services to the seafood industry; environmental consultancy services to resource managers and users; and analytical and microbiological testing services for monitoring and quality control to a wide range of client groups.

Other government departments. A number of government departments carry out research and development to support their own activities. This includes research which supports the development and effective implementation of policy, and research that contributes to the performance of a regulatory function. This research is funded through direct allocations of funding to the department concerned. Departments with substantial research capabilities include the New Zealand Defence Force, the Department of Conservation and the Ministry of Agriculture.

Universities and polytechnics. New Zealand's seven universities all offer a wide range of tertiary education studies, which includes science in all cases and aspects of technology in most. As well as the education function, staff carry out basic research and make substantial contributions in their applied fields. Areas of speciality in science at the various universities include agriculture and horticulture, biological and physical sciences, earth and environmental sciences, forestry, engineering, medicine and pharmacy. Some of the polytechnics carry out research but only to a minor degree compared with the universities.

Research associations. Research associations are non-governmental industry linked institutions. They provide capabilities in research and technology transfer which individual companies in the sector may not be able to justify. A key goal of those research associations involved with the primary export industries is to improve the marketability and added value of products from New Zealand's farms and forests.

The 10 research associations are:

  • Wool Research Organisation of New Zealand.

  • Coal Research Association of New Zealand.

  • Building Research Association of New Zealand.

  • Cement and Concrete Association of New Zealand.

  • New Zealand Dairy Research Institute.

  • Heavy Engineering Research Association.

  • New Zealand Leather and Shoe Research Association.

  • New Zealand Logging Industry Research Association.

  • Meat Industry Research Institute of New Zealand.

  • Research Institute of Textile Services.

15.2 Technology services

Patents, trade marks and designs—Geographical indications

The New Zealand Patent Office is part of the Ministry of Commerce. The office's mission is to contribute to the prosperity of New Zealand by:

  • granting legal protection to industrial property under the Patents, Trade Marks, and Designs acts

  • making information available to the public about patents, trade marks, designs and geographical indications

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).

Table 15.1. APPLICATIONS FOR PATENTS, TRADE MARKS AND DESIGNS

Year ended 30 JunePatentsTrade marksDesigns

* Year ended March.

Source: New Zealand Patent Office.

1990*4,5828,327656
1991*4,4888,168637
1992*4,5348,178606
19933,6438,720690
19943,19710,258652
19954,50312,325807

Patents. The owner of an invention in any country may apply to patent it under the New Zealand Patents Act 1953. A patent grants the owner the exclusive right to exploit the invention commercially in New Zealand for a maximum of 20 years. After the patent expires, anyone may make use of the invention.

Patent applications in the year ended June 1995 were filed from the following countries: New Zealand 1,309; United States of America 1,301; United Kingdom 358; Australia 343; Germany 185; France 174; Switzerland 159; Sweden 135; Japan 104; Canada 86; Netherlands 73; Denmark 49; Belgium 37; Italy 36; Finland 33; South Africa 20; Norway 19; Ireland 10; Taiwan 9; Spain 9; Israel 6; Austria 6; Hungary 6. The balance of 36 patent applications came from 18 other countries.

The applications were for the following branches of technology: chemistry 1,890; mechanical engineering 1,021; home science and miscellaneous 612; electrical engineering 511; building technology 244; primary industries 225.

Compared with the previous year there were increases in patent applications for: anticancer drugs; consumer packaging methods, especially for bottles and cans and for meat; environmental applications such as road safety devices, land protection methods and toxic gas monitors; and scaffolding, gutter and spouting systems.

Applications remained at about the same level for: genetic engineering; vaccines and techniques for producing them; enzymes; human and veterinary antiviral medicines; syringes, needles and catheters; computer-related inventions; mobile telecommunication systems; and modular building systems.

The Patent Office library holds a comprehensive collection of patent specifications from a number of countries. It receives newly-published patents from New Zealand and the other industrialised countries on paper, CD-ROM, microfilm and microfiche. Available to the public, these patents describe the latest advances world-wide in every field of manufacture and have the potential to save New Zealand manufacturers substantial amounts of time and money in research and development.

During the year 2,701 applications proceeded to acceptance after search and examination, and Letters Patent were sealed on 2,642 applications.

Trade marks. The owner of a trade mark in any country may apply to register it under the New Zealand Trade Marks Act 1953 for any lawful product or service. Once the mark is registered the owner has the exclusive right to use it in New Zealand for the goods or services covered by the registration. If anyone else copies a registered mark without permission the owner has a quick and simple legal remedy. Trade marks may remain registered indefinitely by the payment of a renewal fee from time to time.

Trade mark applications in the year ended June 1995 were filed from the following countries: New Zealand 5,092; United States 2,811; Australia 1,359; United Kingdom 597; Germany 411; France 354; Japan 229. There were 1,472 applications from other countries.

The principal types of goods and services for which trade mark applications were filed in 1995 were: computer systems and miscellaneous electrical goods; foodstuffs; clothing and footwear; miscellaneous services including retail, wholesale and consultancy services; printed matter; pharmaceuticals, pesticides and herbicides; and toiletries.

Anyone proposing to use a trade mark in New Zealand may, for a small fee, commission the office to search its records and report if someone else has already registered a similar mark. Anyone thinking of applying to register a trade mark may, for a fee, request an official opinion on whether it is eligible for registration.

The trade mark library has public records of New Zealand registered trade marks and pending applications. Visitors to the library may search the records and make photocopies of them for a nominal charge. The office's trade mark records are also in the MARK database of Kiwinet, the New Zealand National Library's commercial databank. Anyone with a Kiwinet account may search the database via Telnet on the Internet.

During the year 11,294 applications were examined, 6,322 were advertised and 5,054 were registered.

Designs. The owner of an industrial design (an artistic shape or surface pattern on a manufactured article) in any country, may apply to register it under the New Zealand Designs Act 1953. Registration protects the design from unauthorised copying in New Zealand for a maximum of 15 years.

Yes, but, will it hold water? Students building a water tower for the Royal Society's Science and Technology Challenge.

The principal countries from which design applications were filed in 1995 were New Zealand, Australia, the United States and the United Kingdom.

The office maintains a public register of designs from which anyone may search and copy for a nominal charge.

Geographical indications. The Geographical Indications Act 1994 came into force in 1995. A ‘geographical indication’ is a description used on goods to indicate the place from which they came. Under the Act any person may apply to the Surveyor-General to register a geographical indication. Registration prevents anyone using it in New Zealand on goods which do not originate from the named region. It is expected that many geographical indications will be registered as part of multilateral and bilateral trade agreements with New Zealand's trading partners.

The Patent Office maintains an electronic register of geographical indications protected under the Act with details of the boundaries they apply to. The register is open to the public.

Law reform. As part of the successful GATT negotiations on world trade in 1994, the industrialised nations agreed to harmonise some trade-related aspects of intellectual property rights (TRIPS). As a result the duration of patent protection in New Zealand was increased from 16 to a maximum of 20 years and the rights of a patentee to apply for an extension of term on the grounds of inadequate remuneration or war loss were abolished. A new definition of a trade mark was enacted and the grounds were broadened on which a registered proprietor may sue if someone else copies the mark.

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 training, 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's educational arm is the New Zealand Quality College.

Telarc carries six ‘marks of excellence’ which laboratories, companies and products certified or accredited by Telarc are authorised to use.

Registered Supplier. This mark indicates that the companies to which it is awarded have implemented quality management systems complying with the ISO 9000 series of international standards, and that this has been confirmed through assessment by Telarc.

Q-Base. This programme is similar to the registered supplier programme, but is aimed at small businesses. This mark indicates compliance with the Q-Base code.

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.

Environmental Choice NZ. Authorised by the Minister of Commerce in 1990, this label is awarded to products that take account of environmental factors.

Certified Environmental Management System. This mark indicates compliance with the ISO 14000 series of environmental management system standards.

Registered Inspection Body. This mark indicates compliance with international standards of various types of bodies performing inspection.

Telarc is the first New Zealand body to be awarded JASANZ accreditation and has established numerous international agreements to facilitate the acceptance of test data overseas.

Standards New Zealand

Standards New Zealand (SNZ) is the national body responsible for co-ordinating the development of standards. It is the trading arm of the Standards Council that operates under the Standards Act 1988. Its aim is to develop partnerships with the business community and the government, to advance national prosperity by harnessing quality and technology through the development of efficient and effective standards and certification services.

The principal services of Standards New Zealand are:

  • Standards development and design

  • Sales of all standards and information services

  • ‘S’ mark product certification.

  • Certification to the International Organisation for Standardisation (ISO) 9000 series of quality management standards and the ISO 14000 series of environmental management standards

  • World Trade Organisation (formerly GATT) enquiry point

  • Supplying specialist advice concerning overseas standards, regulations, codes of practice and testing and approval procedures in foreign markets

  • Training and seminars on a range of topics such as environmental and quality management.

Unlike most standards bodies, Standards New Zealand receives no direct funding from the government. It is reliant on membership subscriptions, the sale of standards, certification services and contracts for service (with various industries, government departments, local bodies and businesses) for all its income. SNZ currently has about 1850 subscribing members, and 65 contracts for service.

Contributors

  • 15.1 Ministry of Research, Science and Technology; Foundation for Research Science and Technology; Association of Crown Research Institutes; Royal Society of New Zealand; New Zealand Institute of Economic Research; Cawthron Institute.

  • 15.2 New Zealand Patent Office; Telarc New Zealand; Standards New Zealand.

Special articles

Ministry of Research, Science and Technology; The Royal Society of New Zealand; New Zealand Institute of Economic Research; Carter Observatory; Standards New Zealand; New Zealand Patent Office.

Further information

Patent Co-operation Treaty: Basic Information and Procedure. NZ Patent Office.

Patent Office Journal. New Zealand Patent Office (monthly).

Patents, Applications and Grant; Trade Mark Registration; Designs Registration. Three NZ Patent Office information booklets, also on the Internet World Wide Web at: http://www.govt.nz/ps/min/com/patent/.

Standards. Standards New Zealand (monthly).

Report of the Commissioner of Patents, Trade Marks & Designs (Parl paper G14).

Report of the Ministry of Research, Science and Technology (Parl paper G50).

Report of the Foundation for Research, Science and Technology, (Parl paper G53).

The Foundation for Research, Science and Technology publish a number of discussion, occasional and position papers.

The Royal Society of New Zealand has World Wide Web pages Gateway to New Zealand Science under the home page address http://www.rsnz.govt.nz.

Larger than life—a praying mantis at the Auckland Museum of Transport and Technology (MOTAT).

Chapter 16. Land and environment

One of ten North Island brown kiwi bound for freedom on Motukawanui Island.

16.1 Land resources and ownership

Surveying, mapping and land information

The Department of Survey and Land Information (DOSLI) 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; maintenance of records related to the unregistered lands of the Crown; and promotion of land-related data integrated through the national Land Information System (LIS).

The main acts administered by DOSLI are the Survey Act 1986, Public Works Act 1981, Land Settlement and Land Acquisition Act 1952, Land Act 1948, the New Zealand Geographic Board Act 1946, Crown Grants Act 1908, Land Transfer Act 1952, Deeds Registration Act 1908, Joint Family Homes Act 1964 and the Unit Titles Act 1972. More than 450 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.

Surveying. New Zealand's land survey system provides the basis for security of land ownership and enables the integration of the various land information records and data sets. The positional, or spatial, foundation is the national survey control network of trigonometrical stations (trigs) and other geographically located points. All survey and mapping activities which use the survey control network are then capable of forming part of an integrated geographical information system. Typically, the control network provides the positional base for property boundary definition, land development, resource management, marine licences, engineering and construction projects, communications, map production, scientific studies, the located of marine and air navigation aids, and the determination of New Zealand's national and economic zone boundaries. The department provides the infrastructure for the cadastral survey system which includes, in addition to the survey control network, custody of and access to survey records, a computerised spatial database which displays the current sub-divisional pattern (DCDB) and a survey examination and approval system which validates all property surveys. Through its spatial records the department is able to provide support for the electoral system and the production of electoral maps.

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 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. A start has been made on converting data from the 1:50,000 maps into digital form. In addition, DOSLI 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.

Measuring continental drift on Campbell Island, using the satellite-based Global Positioning System (GPS).

Land Information System. Stage one of a core LIS is a computer system linking the survey, title and valuation records of three government departments:

  • Automated Land Transfer Journal—the automated processing of documents received for registration.

  • Automated Index to Certificates of Titles—a computerised index to records held in the Lands and Deeds Division of the Department of Justice.

  • Maori Land Court Titles Index—an index to Maori land administered by the Maori Land Court of the Department of Justice.

  • Digital Cadastral Database (DCB)—the digitised boundaries of all land parcels and their identifiers in the Department of Land Survey and Information.

  • Parcel Plan Index—an automated index to every survey plan and every parcel ever created and recorded by the Department of Land Survey and Information.

  • Valuation Roll System—standardisation of components of the Valuation New Zealand database to make it more compatible with other core systems.

Stage two of the LIS envisages the linking of statistics, topography, utility and land use data with the ‘core’ cadastral land data.

The LIS Pilot. In November 1992 the Government directed the three departments (the departments of Justice and Land Survey and Information and Valuation New Zealand) to co-operatively demonstrate a prototype of the LIS in the Auckland region. The developments are sponsored by DOSLI. They will demonstrate the benefits of the adoption of standards for land records management, co-ordinate maintenance of land data records and enable on line computer access to a central index of key data from the core land departments.

Registration of land ownership

All property rights in New Zealand are derived from the Crown and title to land in private ownership is a matter of public record. The creation of new rights and termination of existing rights in land, providing certainty of title to interests of land with a state guarantee, is the function of the Land Titles Office of DOSLI, 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, first the Land and Deeds Division of the Department of Justice, now the Land Titles Office, 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 to provide notice of unregistered dealings to conveyancers who are settling new property transactions.

In addition a computerised plan journal has been introduced providing details on new land subdivisions. This includes a tracking facility and allows early allocation of new title references for land parcels in new subdivisions of land.

A major new application is the Automated Index, which allows enquiries to be made on owners' names, legal descriptions, certificates of title reference or what purpose land is held for (eg esplanade reserve) and displays the relevant data. An inventory of land held for up to 370 public purposes can now be categorised. As at 30 June 1995 details on over 2.07 million titles were in the database. Utilising the Automated Index is 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). Data from the Maori Land Court and Valuation New Zealand has been added to form a central (common) index. As at October 1995 further extension of the Land Information System is subject to government approval.

In recent years 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 issue of title for Housing Corporation units will be a significant driver of work levels for the next three to four years. The Resource Management Act 1991 has had a widespread effect on the processing of documents, plans of subdivision and new titles in all offices. Te Ture Whenua Maori Act 1993 introduced changes for dealing with the registration of Maori land.

Table 16.1. LAND TRANSFER DOCUMENTS PROCESSED

Year ending 30 JuneInstruments receivedCertificates of titlePlans lodgedGuaranteed searchesTitle searchesDocument searchesDatabase searchesPlan searches
Source: Department of Survey and Land Information.
19891,02,968847,25816,88982,1921,176,421306,599--
19901,007,62053,98718,00090,6031,109,663283,376--
1991869,86453,56218,21487,552919,900255,932--
1992819,01550,33416,06593,125966,078263,045--
1993775,63142,05114,11499,211936,805258,389--
1994863,74342,94716,019137,7131,024,426282,0133,378,87316,077
1995873,88348,83917,726145,773982,846273,7844,878,01740,068

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 4,000 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.

LAND USE

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.

Table 16.2. MARKET SALES OF FREEHOLD FARMLAND

Half year endedNo. of salesTotal sale price $(million)Index number*Percentage change from previous half year

* Base (=1000) half year ended December 1989.

Source: Valuation New Zealand.

Dec 19892,249531.81000+7.2
Jun 19902,347652.51163+16.3
Dec 19901,939483.91188+2.1
Jun 19911,735422.51169-1.6
Dec 19911,750390.71181+1.0
Jun 19922,392735.41300+10.1
Dec 19921,951514.41358+4.5
Jun 19932,546952.91601+17.9
Dec 19931,510469.21696+5.9
Jun 19942,2161,018.61988+17.2
Dec 19941,393556.22073+4.3
Jun 19952,0131,094.12270+9.5

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 22.2, House purchase and mortgage finance.

Recent figures for freehold open-market sales of farmland are shown in table 16.2. Family sales are excluded, as are leasehold sales and sales for uses other than primary production.

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 Te Ture Whenua Maori Act 1993 and some general land owned by Maori is subject to certain provisions of that act.

Maori Land Court: Te Kooti Whenua Maori. The purpose of the Maori Land Court is to contribute to the administration of Maori land, the preservation of taonga Maori, and to promoting the management of Maori land by its owners. The Maori Land Court achieves its purpose by servicing the Maori Land Court and related tribunals, maintaining the records of title and ownership of Maori land and providing information from the Maori Land Court record and the records of Crown and other agencies.

The Maori Land Court is in the process of developing an Information System Strategy. This recommends implementation by way of two separate programmes:

  • 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 will simplify 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 court records to image, either traditional, microfiche or electronic, allowing for the transfer of these valuable documents to the National Archives.

The court handled 99,420 enquiries in the year to June 1995 (76,086 in 1994); 38,776 were by telephone, 20,105 written, and 40,539 were counter enquiries.

MAORI LAND COURTS, 1995

Table 16.3. LAND ADMINISTERED BY MAORI LAND COURT*

Maori Land Court districtsSurveyed blocksTotal blocks administered
1993199519931995

* As at 30 June.

Source: Maori Land Court.

Whangarei3,4713,1965,1245,200
Hamilton1,0261,0573,4653,465
Rotorua3,0623,1094,7954,817
Gisborne2,8462,8665,0515,075
Hastings1,1211,1131,2681,268
Wanganui3,2723,3603,7563,765
Christchurch1,3401,3401,7341,709
        Total16,13816,04125,19325,299

A green start in life—receiving a Green Mother and Baby Pack on World Environment Day.

Maori land development. Former governmental programmes aimed at the development of Maori land have largely been concluded, and Te Puni Kokiri encourages administration of Maori land by Maori land-owners.

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, including 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 DOSLI operating through the Commissioner of Crown Lands, service delivery departments and the Department of Conservation.

Lands administered by the Department of Survey and Land Information. DOSLI is responsible for the administration of residual Crown-owned lands pursuant to the Land Act 1948, Public Works Act 1981, Crown Forest Assets Act 1989, and the Railways Corporation Restructuring Act 1990.

Land administered by the Commissioner of Crown Lands pursuant to the Land Act 1948 and various endowment acts comprises unalienated Crown land, pastoral leasehold land, other Crown leasehold lands and endowment leases. At 1 July 1995 there were an estimated 3,400 parcels of unalienated Crown land, 350 pastoral leases/licences, 380 other Crown leases and 130 endowment leases.

Land administered by the Commissioner 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 1994 there were some 99 Crown forestry licences.

Land administered 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 1995 there were an estimated 450 surplus government properties in the process of being disposed of by the department.

Land administered pursuant to the Railways Corporation Restructuring Act 1990 comprises land no longer required for railway operations. At July 1995 there were an estimated 3,000 surplus railway lands in the process of being disposed of by the department.

All Crown Forest lands and a significant number of the other lands administered by the department 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. The department also administers Treaty of Waitangi landbanks and Crown settlement portfolios, pending completion of negotiations between the Crown and claimants; and an estimated 120 property-related liabilities such as contaminated sites, subsidence areas and residual accommodation leases.

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, forest parks, world heritage areas, 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 16.3 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 Titles Office of the Department of Survey and Land Information The department also holds the most comprehensive records of unregistered lands.

Maps in recycled maps bag.

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 and section 24 State Owned Enterprises Act. These plans and schedules will remain the prime records for these unregistered lands until such time as they are registered under the provisions of the Land Transfer Act 1952. Records of the allocated lands which were subject to the Public Works Act 1981 and Railways Corporation Restructuring Act 1990 are also held by DOSLI.

Land Corporation. Land Corporation Limited (Landcorp) commenced business as a State Owned Enterprise 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. It now operates completely in the private sector. Landcorp has two main operating subsidiaries, Landcorp Farming and Landcorp Investments.

Landcorp Farming is responsible for farming operations involving some 1.6 million stock units on 138 properties spread throughout New Zealand. The company is also involved in animal breeding schemes covering a wide range of animal species.

Landcorp Investments is responsible for some 2,840 leases, licences, and freehold land properties taken over from the Crown.

Landcorp's head office is in Wellington. There are regional offices in Whangarei, Rotorua, Christchurch and Invercargill.

Valuation of land

Equitable land values are needed for:

  • Levying rates by local authorities.

  • Apportioning rating levies over contributing local authorities.

  • Lending money on mortgage by government agencies and by trustees under the Trustee Act 1956.

  • Assessing stamp, estate and gift duties.

  • 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, currently every three 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 agencies 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.

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.

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 1,530 valuers registered as at 31 August 1995, 1,025 held annual practising certificates. The remaining 505 registered valuers are either retired, overseas, or do not make valuations for members of the public.

16.2 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 16.4. LAND USE TODAY

Type of landApproximate areaPercentage of total area

Source: Ministry of Forestry.

  
 hectares (million) 
Total forested land7.828.8
Pasture and arable land14.152.0
Other land5.219.2
          Total land area of New Zealand27.1100.0

Geology, soils, vegetation, wildlife and other aspects of the New Zealand environment are described briefly in Chapter 1: Geography.

Environmental planning framework

In October 1991 the Resource Management Act became law in New Zealand. The act is, first and foremost, a means of planning how the people of New Zealand are going to use, distribute or preserve natural and physical resources. These resources include rivers, lakes, coastal and geothermal areas; land, including soils, forests and farmlands; the air; and the constructed environment—buildings, bridges and other structures in cities and towns.

The act calls for a new attitude to law. Instead of prescribing what activities should or should not be allowed, the act places the emphasis on the effect a proposed activity will or might have on the environment. It also provides for the community to become involved in making decisions about resource management.

The purpose of the act is to promote the sustainable management of natural and physical resources. This means the environment is looked at as a whole when authorities are planning and making decisions. The focus of the legislation is on the effects proposed activities will have on the environment—not, as was in the past, on whether an activity was or was not allowed.

The act says that, to the greatest extent possible, people should be allowed to make their own choices as to the development, use or protection of natural and physical resources. But they must do this with the purpose of the act—to promote sustainable management. Therefore the key role of planners and decision makers should be to minimise adverse effects so that the sustainability of New Zealand's resources is not jeopardised.

It is in the process of formulating these plans and policies that members of the community have an important opportunity to have their say about what they want to happen in their area. The act encourages councils to seek the views of their residents, iwi and business people when developing resource management plans.

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 rivers.

  • The relationship of Maori and their culture and traditions with their ancestral lands, water, sites, waahi tapu, and other taonga.

There is no priority suggested in the order of this list.

Those exercising functions and powers are required to have particular regard to other matters in achieving the purpose of the act. These matters are as follows:

  1. Kaitiakitanga (the exercise of guardianship);

  2. The efficient use and development of natural and physical resources;

  3. The maintenance and enhancement of amenity values;

  4. Intrinsic values of ecosystems;

  5. Recognition and protection of the heritage values of sites, buildings, places or areas;

  6. Maintenance and enhancement of the quality of the environment;

  7. Any finite characteristics of natural and physical resources; and

  8. The protection of the habitat of trout and salmon.

Again, there is no priority suggested in the order of this list.

The Minister 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.

Sustainable management. In the act, sustainable management means managing the use, development, and protection of natural and physical resources in a way, or at a rate, which enables people or communities to provide for their social, economic and cultural well-being and for their health and safety while:

  • Sustaining the potential of natural and physical resources (excluding minerals) to meet the reasonably foreseeable needs of future generations.

  • Safeguarding the life-supporting capacity of air, water, soil and ecosystems.

  • Avoiding, remedying or mitigating any adverse effects of activities on the environment.

Environment 2010 Strategy

Through the Resource Management Act 1991, New Zealand committed itself to managing natural and physical resources sustainably and to taking into account the needs of future generations. Now the Environment 2010 Strategy gives us, for the first time, a strategic overview of the way we deal with environmental issues.

It attempts to take a longer-term view of New Zealand's environmental priorities and give a coherent focus to environmental management. Environmental issues demand, by their very nature, a long-term perspective.

The strategy provides a coherent framework against which to judge new proposals and a context in which to establish environmental goals alongside goals of economic opportunity and social cohesion.

Its vision for the New Zealand environment to 2010 is, A clean, healthy and unique environment, sustaining nature and people's needs and aspirations.

After extensive consultation, the strategy was formally adopted by the Government and released in September 1995.

Eleven priority environmental issues are identified as particularly important for New Zealand to deal with if the vision is to be achieved. Urban sustainability issues are placed in context within these issues. They are:

  • Managing our land resources.

  • Managing our water resources.

  • Maintaining clear, clean breathable air.

  • Protecting indigenous habitats and biological diversity.

  • Managing pests, weeds and diseases.

  • Sustainable fisheries.

  • Managing the environmental impacts of energy services.

  • Managing the environmental effects of transport.

  • Managing waste, contaminated sites and hazardous substances.

  • Reducing the risk of climate change.

  • Restoring the ozone layer.

Each of the issues has a related goal, which needs to be addressed in a way that is consistent with the government's economic and social policies and which imposes least cost on society. The goals will be pursued to the extent that government, the private sector and the community are prepared to commit resources to them.

All the issues involve a significant degree of environmental risk. A comparative risk assessment approach is examined as a tool in environmental priority setting.

The strategy has a six point agenda for environmental management action:

Integrate environmental, economic and social policy— this is at the heart of achieving well-being for New Zealanders. The government's sustainable development strategy is based on raising living standards through economic growth while maintaining or improving environmental quality.

Establish a coherent framework of law—recent governments have largely completed a series of reforms which re-establish the legislative framework for sustainable management of the environment, including the Resource Management Act 1991, Biosecurity Act 1993 and Forests Amendment Act 1993. Reform of laws dealing with hazardous substances and new organisms, fisheries and marine pollution has yet to be completed.

Sharpen the policy tools—now that a new legislative framework is largely in place, emphasis will be given to developing and encouraging the use of effective policy tools, including market mechanisms such as tradeable harvesting quota, and economic instruments, such as polluter-pays charges and performance bonds; guidelines and environmental standards; voluntary codes of practice by industry; and negotiation to resolve natural resource conflicts.

Build up the information base—a comprehensive and reliable information base on the environment will be developed, based on indicators of environmental quality and State of the Environment Reports. This will aid informed and sound decisions on the protection and sustainable management of New Zealand's natural and physical resources.

Promote education for the environment: Environmentally responsible behaviour and informed participation in decision making can be enhanced through the promotion of environmental education throughout the community. It is a process that extends far beyond the formal education sector.

Involve people in decision-making—people must be given the opportunity for effective participation in decision making that affects the environment.

The Ministry for the Environment will carry out a ‘stocktake’ every year to review success in implementing the strategy, and the government will also review progress every four years.

Implementation of the strategy will be the responsibility of the Ministry for the Environment and other government departments including Conservation, Forestry, Foreign Affairs and Trade, Agriculture, Fisheries, Commerce, Health and Transport. Stakeholders outside central government would also have important roles.

Environmental values are an important part of the values that bind our society together. Giving effect to these values through the actions outlined in this Strategy will help to strengthen our communities and build social cohesion.

An important aspect of this definition is that sustainable management should not be compromised by social or economic goals.

Regional policies and plans. Regional councils have a pivotal role in resource management administration. Each region has to prepare a regional policy statement, which sets out the objectives for managing all resources of the region in an integrated manner. Regional plans deal with specific resource management issues. They are not compulsory, yet there may be more than one.

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.

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. Each territorial authority must have one district plan to help them carry out their functions. The plan must be consistent with any national policy statement or the regional policy statement. The district plan may include rules which prohibit, regulate or allow activities.

Resource consents. A resource consent gives a person or organisation permission to develop a natural or physical resource, and/or carry out an activity that affects the environment in some way for a stated period. Resource consents replace the many different permissions granted under the previous law.

Under the Resource Management Act there are five types of resource consent:

  • Land use consent (granted by district and sometimes regional councils).

  • Subdivision consent (district).

  • Water permit (regional).

  • Discharge permit (regional).

  • Coastal permit (regional).

All applications for consents follow the same procedures. The basic rule is that the applicant, whether a landowner intending to subdivide, or a farmer needing water for irrigation, should check to see if a consent is required, and if so what type and category. The applicant will also need to work out what impacts the proposal is likely to have on the environment and submit this assessment to the consent authority. The applicant may also have to explain what consultation has taken place with any persons who may be affected by the proposal.

Some of these resource consent applications will require public notification. This gives the community a chance to consider the application and make a submission if they wish.

Public involvement. The act provides for members of the community to take part in managing the resources of their area. Therefore getting involved with the local authority planning process at the right time is a crucial matter if a person wishes to have an input into the decisions.

Some of the places where a person can have an input are:

  • Initial consultation by local authorities when they are preparing policy statements and plans.

  • Submissions to local authorities after they have notified the public about policy statements or plans, plan changes and resource consents.

In addition many councils provide opportunities for input in the initial stages of preparing policy statements and plans before they formally notify.

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 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.

Similarly, by identifying as a ‘matter of national importance’ the relationship of Maori to their ancestral lands, water, sites, waahi tapu, and other taonga (treasures), it is possible for policies and plans to cater for Maori-related uses on Maori land. The most prominent of these are the marae and papakainga housing. In the first instance, rules in a plan could allow for the construction of the marae itself. Other rules for papakainga housing would provide for residential development on Maori land which is generally in multiple ownership.

‘Reasonable use’ of land is covered in section 85 of the act. The phrase carries its commonly understood meaning plus an extension under this section. This extension ensures that uses which do not impact on people, other than the landowner, or the environment are classed as reasonable uses. Those whose land has been rendered incapable of reasonable use can challenge the provision during plan review or on an application for a plan change.

Hazardous substances and new organisms. The Hazardous Substances and New Organisms Bill (HSND) was introduced in November 1994. The Resource Management Act provided for the reform of laws regarding the management of hazardous substances and new organisms and for the establishment of an agency to administer the reformed legislation. It has since been decided this is to be a regulatory authority to be called the Environmental Risk Management Authority.

The reform was considered necessary because the existing legislation was recognised as being outdated, complex or, in some cases, non-existent. The intention is to both minimise the risk from hazardous substances and new organisms while retaining their benefits, and to improve the efficiency of current assessments of controls for hazardous substances and new organisms.

The principles for the new legislation require that all hazardous substances and new organisms are assessed prior to their introduction, development or manufacture in New Zealand, and that they all will follow a similar assessment process. Assessment is to be publicised and open to public input, and the decisions made will also be publicised.

Management focuses on the adverse effects of hazardous substances and new organisms on the health and safety of people and the environment rather than just on the end use to which they may be put. Hazardous substances are to be controlled at points in their life cycle where the environment and health and safety of New Zealanders are at risk. The legislation will also ensure that New Zealand's obligations under international agreements relating to hazardous substances and new organisms are adhered to.

Waste management. The production of waste and its impact on people, the economy and the environment is a matter of long-standing public concern in New Zealand. The Resource Management Act provides a framework for dealing with these impacts and the management of all wastes to meet the objectives of sustainable management of the environment. As well, the Government in 1992 agreed to a waste policy which is focused on reducing resource use and waste generation.

New Zealand's waste management policy is to:

  • Ensure that as far as practicable, New Zealand's waste generators should meet the costs of the waste they produce; and

  • Encourage the implementation of the internationally recognised hierarchy of reduction, reuse, recycling, recovery and residual management by all involved in waste generation and management in New Zealand.

Worms about to demolish waste from Wellington restaurants and cafes to create compost and jobs.

The Ministry for the Environment is the lead agency for waste management policy at central government level, and in performing this function the ministry will co-ordinate waste management policies produced by other agencies in meeting their responsibilities. A national database to provide statistical information on waste is being established.

Waste reduction targets are to be negotiated with business sectors to encourage voluntary initiatives in waste reduction and resource recovery to achieve the targets which will focus this year on used oil and plastic packaging. Investigations (carried out in consultation with relevant government departments) are to be made into regulatory and economic mechanisms to back up the voluntary initiatives in the event that they fail to result in adequate internalisation of the costs of waste. Cleaner production methods have already been implemented by a number of companies and organisations. ‘Cleaner production’ means:

  • Avoiding or reducing the amount of waste produced.

  • Using energy and resources efficiently.

  • Producing environmentally sound products and services.

  • Achieving less waste, fewer costs and higher profits.

The links between cleaner production principles and enhanced economic performance are well documented. Cleaner production, therefore, offers New Zealand businesses the opportunity to improve their competitiveness in New Zealand and international markets.

The ministry has developed cleaner production guidelines to help local authorities and business implement these approaches. A handbook has also been produced to assist managers dealing with hazardous waste.

Mineral exploitation

The impact of mining, prospecting and exploration of minerals, whether Crown or private, 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 all mining activities, including the rehabilitation of land.

Exploitation of Crown-owned minerals is governed by the Crown Minerals Act 1991, administered by the Ministry of Commerce. Under the act the Minister of Energy is required to prepare minerals programmes which establish policies, procedures and provisions to be applied to the management of Crown minerals. The minerals programme for petroleum came into effect on 1 January 1995. The draft programmes for coal, metallic minerals and industrial rocks and building stones have been notified and submissions are being analysed.

Using the procedures established in the minerals programmes, the Minister of Energy issues permits allocating Crown-owned minerals, or the rights to search for them. Permits contain conditions relating to the management of the mineral resource, and royalties.

In addition to a minerals permit, the act provides that anyone prospecting, exploring or mining Crown minerals must also make land access arrangements with the surface landowner and/or occupier.

Water and soil management

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.

Water resources. It has been estimated that New Zealand's consumption of water approaches 2,000 million cubic metres per year. Households use 210 million cubic metres, industry 260 million cubic metres, livestock 350 million cubic metres, and irrigation 1,100 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 7,000 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, such as Milford Sound, annual rainfalls of over 10,000 mm have been measured, while in others, such as Alexandra, as little as 340 mm may fall in a year.

Yellowish-green scum from an algal bloom in the Otago harbour.

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 councils in these areas.

Water quality. Maintenance of water quality is also the responsibility of regional councils within the framework of the Resource Management Act. The 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 (eg recreational activities). Regional policy statements and 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 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.

The Resource Management Act provides for the making of national environmental standards. Statutory standards can be inflexible and inappropriate for New Zealand's diverse aquatic environment. Guidelines allow regional councils discretion in the development of local standards. The Ministry for the Environment has produced water quality guidelines on nuisance growths (nitrogen, phosphorous, and organic matter), and colour and clarity (suspended solids and other visible material).

Water resources, including marine ecosystems and geothermal fluids, are a significant part of our natural heritage and our recreational activities. Low water quality in rivers will affect water quality in the coastal marine environment, in turn affecting marine vegetation and inshore fisheries. In addition to being essential as drinking water, and for many parts of the economy, water also has important practical and spiritual value for Maori and the wider community.

New Zealand has substantial rainfall and an extensive lake and river system, but water is distributed very unevenly. In some places water is plentiful, but in others demands sometimes cannot be met. The best sites for hydro-electric power schemes are already used, and developing most of the remaining sites would conflict with other uses.

While having high quality fresh and coastal waters has major benefits, achieving it everywhere will incur considerable costs. For example, it has been estimated that providing secondary treatment schemes for all urban communities around the New Zealand coasts could cost $1 billion over the next decade. There will need to be choices by communities on how quickly they can meet this goal, taking account of other priorities.

The Ministry for the Environment is developing guidelines for the protection of aquatic life and instream flow requirements.

River control. 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, litter, and spongy soil has given way to a shallow-rooted, less protective carpet of grass on a compacted, impervious, and often exhausted soil. Natural erosion, caused by climatic factors (such as high-intensity rainfall and frost heave) combined with the geological instability of much of the country, has been aggravated by man-made effects. Soil erosion now occurs on more than 8 million hectares of hill country and mountain land, about one-third of the total area of New Zealand.

Successful techniques developed to control erosion include control of burning and animal pests, oversowing, topdressing, strict grazing control, soil conservation fencing, stock-water ponds, gully control, contour ploughing, terraces, grassed waterways, and open and close tree planting.

Pollution

Public concern for the environment has led to an increased awareness of pollution problems. Organisations have responded by involving the public in the decision-making processes and by amending legislation to provide the appropriate controls.

The problems of water pollution are being addressed by regional councils through the Resource Management Act 1991. The Ministry of Fisheries (through the Fisheries Act), and the Department of Conservation (through the Wildlife Act), also have statutory powers to control water pollution. Both air pollution and noise control are included in the Resource Management Act. The Maritime Safety Authority (through the Transport Act) is responsible for marine pollution outside the territorial sea and for the co-ordination of responses to oil spills. 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. The ministry is currently developing a national strategy to address the impacts of agriculture on water quality. Sewage and farm run-off add nutrients to the water, which in some lakes (eg 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 food processing industries are also major contributors to pollution. Urban solid-waste disposal is largely by the land-fill technique, and most major cities are establishing landfill 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. 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.

Global environmental issues

Some of the most pressing environmental problems extend beyond national borders. They are known as global environmental issues and include climate change as a result of the enhanced greenhouse effect and ozone depletion. No one country is responsible for 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 has led to increasing international activity. 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.

This goal, highlighted by the 1987 Report of the World Commission for the Environment and Development (the UNCED report Our Common Future), was the theme for the United Nations Conference on Environment and Development (the UNCED or ‘Earth Summit’ held in Rio de Janeiro, Brazil in 1992).

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 at a meeting of this kind.

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. The UNCED also established the Commission on Sustainable Development (CSD) to monitor progress with implementation of Agenda 21.

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 environmental work which it pursues within its means. 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 Foreign Affairs 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 Foreign Affairs and Trade advises government on international aspects of global environment issues, including representation of New Zealand interests and concerns in negotiations. The Ministry for the Environment provides advice on the domestic aspects of global environmental issues, as well as on purely domestic matters.

A young pilot whale stranded north of Waianakarua River mouth.

New Zealand ratified the Framework Convention on Climate Change and the Convention of Biological Diversity in 1993. It was the third country (and first developed nation) to ratify the London Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer. It agreed to contribute around NZ$10.4 million to the 1994-1996 replenishment of the Global Environment Facility which provides funding for projects which address four global environmental problems (climate change, biodiversity loss, ozone depletion and international waters). New Zealand is actively engaged in negotiations on amendments to the London Convention of the Prevention of Marine Pollution by Dumping of Wastes, 1972. New Zealand ratified the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal in 1995.

New Zealand has been active in the UN Conference on Straddling Fish Stocks and Highly Migratory Fish Stocks, which in 1995 resulted in agreement on a new convention to complement the existing provisions of the UN Convention on the Law of the Sea. The convention contains innovative provisions on the enforcement of conservation and management measures on the high seas and was opened for signing in December 1995.

New Zealand plays an active conservationist role in the International Whaling Commission (IWC). It was a major proponent of the creation of a circumpolar southern ocean whale sanctuary agreed at the 1994 IWC meeting. The sanctuary extends from the Antarctic ice edge to points between 40° and 55° south latitude, and includes much of New Zealand.

New Zealand has been particularly active in questions relating to trade and environment including discussions held at the OECD and in GATT. This will continue especially in the new World Trade Organisation Committee on Trade and Environment.

WHALE SANCTUARIES

New Zealand recognises the special vulnerability of South Pacific countries to global environment problems. Through the South Pacific Regional Environment Programme (SPREP), the South Pacific Forum and other international environmental negotiations New Zealand has sought to support Pacific Island countries and to ensure their concerns are heard. It was active in the Global Conference on the Sustainable Development of Small Island Developing States, held in Barbados in 1994. In 1995 New Zealand signed the Waigani Convention to Ban the Importation into Forum Island Countries of Hazardous and Radioactive Wastes and to Control the Transboundary Movement and Management of Hazardous Wastes within the South Pacific Region.

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 the Environment Policy Directorate (EPD).

EPD co-ordinates the inter-related work of sustainable management of energy and climate change, and has a prime role in providing advice to government on moves to reduce carbon dioxide emissions. Having ratified the Framework Convention on Climate Change (FCCC) in September 1993, New Zealand, along with other party nations, has an obligation to reduce its greenhouse gases.

The Government's first steps towards achieving the target of returning CO2 emissions to their 1990 level by the year 2000 and holding them there, were announced in July 1992. That CO2 Action Programme incorporates measures designed to reduce CO2 emissions and enhance carbon sinks. Among these measures are voluntary agreements with industry to reduce CO2 emissions, the encouragement of more efficient energy use, the use of the Resource Management Act 1991 to consider CO2 emissions in plans, policy statements and resource use consents, and legislative and regulatory reform in the energy sector to encourage more competitive gas and energy markets. The Government has also foreshadowed the introduction of a low-level carbon charge to be introduced in 1997 if, by then, industry has not voluntarily lowered CO2 emissions by 3 percent on what they would have been under 1990 ‘business as usual’ conditions. In August 1995, a joint public-private sector working party to examine elements of the Government's CO2 policy was established. It is designed to gain a better understanding of any alternative measures which could achieve the Government's CO2 policy objectives and maintain and enhance New Zealand's economic growth and international competitiveness.

Advice to government on achieving sustainable provisions and use of energy, including policies relating to energy and the environment, is also provided by the directorate.

The Ministry's Pollution and Risk Management Directorate is responsible for implementing New Zealand's obligations under the Montreal Protocol on Substances that Deplete the Ozone Layer. Through the Ozone Layer Protection Act 1990, and its subsequent revisions, New Zealand's imports of chlorofluorocarbons (CFCs), methyl chloroform and carbon tetrachloride will have ceased by the end of 1995.

The Ministry for the Environment is currently consulting with affected parties and is developing policies to phase out the import of hydrochlorofluorocarbons (HCFCs), the low ozone depleting alternatives to CFCs and methyl bromide, a gas used widely to fumigate soils and items being imported and exported.

EPD is also responsible for the State of the Environment Reporting (SER) project which aims to develop regular monitoring and reporting systems on the nation's environment. Government has recognised that such a system is necessary to help New Zealand meet international environmental obligations and to enable high quality environmental decisionmaking. The SER project's main tasks are the production of the nation's State of the Environment Report and the development of a set of core environmental indicators. This latter task involves collaboration with Statistics New Zealand and the Department of Survey and Land Information, as well as the large number of regional and territorial organisations which have monitoring responsibilities under the Resource Management Act.

The Ministry for the Environment is co-ordinating within the public sector the domestic follow-up work generated by UNCED, in particular the implementation of Agenda 21.

16.3 National parks and reserves

The Department of Conservation administers the majority of publicly-owned land in New Zealand that is protected for scenic, scientific, historic and cultural reasons, or set aside for recreational purposes. More than 8 million hectares—nearly 30 percent of the nation's total area—are administered by the department.

There are 12 national parks, covering more than 2 million hectares, 20 forest parks covering some 1.8 million hectares, and nearly 4,000 reserves covering some 1.5 million hectares, and some 61,000 hectares of protected private land and covenants that have been set aside for scenic, scientific or ecological reasons. In April 1994 the Minister of Conservation announced that a new national park, Kahurangi National Park, would be established in the north-west of the South Island. Incorporating the existing North West Nelson Forest Park, Kahurangi will cover over 400,000 hectares, and will be formally established in 1996. The department also has responsibility for the preservation and management of wildlife, and has a role in management of the coastal marine area.

PARKS OF NEW ZEALAND

Respite from planting seedlings on Tinakori Hill.

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 (55,000 hectares) 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. (79,598 hectares, established 1887), was New Zealand's first national park. It includes the three active volcanoes, Ruapehu, Ngauruhoe and Tongariro.

Urewera National Park. (212,675 hectares, established 1954), together with neighbouring Whirinaki Forest Park, is the largest remaining area of native forest in the North Island. Lake Waikaremoana is noted for its scenic shoreline.

Egmont National Park. (33,543 hectares, established 1900), comprises all the land in a 9-kilometre radius of the Taranaki/Mount Egmont summit and some outlying areas to the north. The symmetrical cone of the dormant volcano is a provincial landmark.

Whanganui National Park. (74,231 hectares, established 1986), borders the Whanganui 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. (30,560 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. (114,357 hectares, established 1929), is a rugged and mountainous area straddling the main divide of the Southern Alps.

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. (70,728 hectares, established 1953), is an alpine park, containing New Zealand's highest mountain, Aoraki/Mount Cook (3,754m), 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. (355,531 hectares, established 1964), is a complex of impressively glaciated mountain scenery centred on Mount Aspiring (3,036 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.

World heritage areas

New Zealand has two World Heritage sites, Te Wahipounamu (South-west New Zealand) and Tongariro National Park. World heritage areas consist of over 440 sites listed under UNESCO's World Heritage Convention as the most outstanding natural and cultural places on the globe. Te Wahipounamu is one of the world's great forest and mountain wildernesses. It consists of 2.6 million hectares (10 percent of the area of New Zealand) of the south-west of the South Island, including Fiordland, Mt Aspiring, Westland and Mt Cook national parks and the coastal swamp kahikatea forests of South Westland. Tongariro National Park is one of a limited number of sites accorded world heritage status for both its natural and cultural values. It is considered to contain some of the most continuously active stratovolcanoes in the world and it was the first national park in the world to be freely gifted to the nation by an indigenous people, the Ngati Tuwharetoa, to whom the mountains are sacred.

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.

Other conservation areas held under the Conservation Act 1987 have an area in excess of 2,840,000 hectares.

Reserves

Reserve land includes scenic, nature, scientific, historic, national and recreation reserves, wildlife reserves, protected private land and land protected under various conservation and open space covenants.

Scenic reserves—there are more than 1,200 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 (189,400 hectares) in this category are on the mainland but most are on offshore or outlying islands.

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. 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. Total area 96,300 hectares.

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. Total area 10,300 hectares.

Historic reserves—include Maori rock drawings, the sites of prehistoric fortifications, 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 12.2 The national collection). Total area 3,200 hectares.

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. Total area 18,500 hectares.

Marine reserves and parks

At present there are 11 marine reserves protecting a variety of marine habitats (marine resources may not be extracted from marine reserves). The Kermadec Islands Marine Reserve is the largest at 748,000 hectares. Located approximately 400 nautical miles north-east of Auckland, the area has an interesting mix of subtropical, temperate and endemic species. The Cape Rodney-Okakari Point Marine Reserve (518 hectares) was the first gazetted in 1975, followed by the Poor Knights Islands (2,410 hectares) in 1981. All the remaining reserves: Wanganui-A-Hei (84 hectares), Tuhua/Mayor Island (1,060 hectares), Kapiti (2,167 hectares), Long Island (619 hectares), Westhaven Te Tai Tapu (536 hectares), Tonga Island (1,835 hectares), Te Awaatu Channel (93 hectares) and Piopiotahi (690 hectares), were all gazetted in the years since 1990.

There are two marine parks Mimiwhangata and Tawharanui, protected by fisheries regulations. The Sugar Loaf Islands, previously a marine park, are now protected under their own Act as a marine protected area.

Fire control

The Department of Conservation is responsible for fire control in state areas, which include national parks and reserves, forest parks, and unalienated Crown land, together with a 1 km 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 guaranteed 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. Under the Conservation Act, the Conservation Authority (established in 1990) provides advice to the minister on departmental policy development including Maori customary use, Treaty issues and section 4 responsibilities, and other conservation matters of national importance. The authority approves conservation management strategies (CMS), regional strategies currently being prepared in conservancies.

The authority will maintain close involvement in ecosystem protection, including animal and weed pests and the use of 1080 in animal control, the development of strategies and plans to protect New Zealand's biodiversity, monitoring, auditing and community involvement. It also has a particular interest in recreation and tourism and is concerned that the department plans for tourism, develops performance measures and carries out research on physical and social impacts.

Under the National Parks Act, the authority approves national park management plans and investigates additions to, and new, national parks.

Conservation Boards. There are 17 regional conservation boards also serviced by the department. Boards work closely with conservancies in the development of CMSs, management plans, conservation advocacy, walkways and a wide range of other conservation issues.

The boards and the authority complete their 3-year term in 1996. The Minister will appoint new Conservation Boards in September 1996.

New Zealand 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 of fish and game, 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 remnants.

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 12.2, The national collection.

Waitangi National Trust Board. This board administers the Waitangi National Reserve which includes the Treaty House. 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.

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, Nga Whenua Rahui, and the Wild Animal Recovery Service Appeal Authority.

Non-governmental conservation organisations

New Zealand has many private organisations actively involved in conservation and environmental issues. These vary from local clubs concerned to preserve some feature of the local landscape to national societies concerned to preserve the environment for its ecological, scientific, recreational or scenic value.

Contributors

  • 16.1 Department of Survey and Land Information; Maori Land Court; Valuation New Zealand; Land Corporation Limited.

  • 16.2 Ministry of Forestry; Ministry for the Environment; Ministry of Foreign Affairs and Trade; Ministry of Commerce; Ministry of Agriculture.

  • 16.3 Department of Conservation.

Special articles

Maori Trustee; Ministry for the Environment; Department of Conservation.

Further information

Land resources and ownership

  • The Conveyancing Bulletin. Butterworths (eight times a year).

  • Landcorp Annual Report. Land Corporation Ltd.

  • Listings of rural, commercial, and industrial sales. Valuation New Zealand (quarterly).

  • Residential Sales Summary. Valuation New Zealand (quarterly).

  • Report of the Department of Justice (Parl paper E5).

  • Report of the Department of Survey and Land Information (Parl paper C14).

  • Report of the Valuation Department (Parl paper G26).

  • Rural Property Sales Statistics. Valuation New Zealand (six-monthly).

  • Urban Property Sales Statistics. Valuation New Zealand (six-monthly).

Environmental and resource management

  • Environment 2010 Strategy. Ministry for the Environment.

  • Report of the Ministry for the Environment (Parl paper C11).

  • 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 C13).

  • Report of the New Zealand Conservation Authority (Parl paper C10).

  • Report of the Queen Elizabeth the Second National Trust (Parl paper C2).

Chapter 17. National economy

Large bank's foreign exchange room.

17.1 The economy

Describing and analysing the New Zealand economy requires considerable subtlety. In comparison with some of the economies with which we interact most, New Zealand's is small and simple, yet in comparison with many others, the value of activity in New Zealand is large and complex. The goods and services produced and consumed in New Zealand have many characteristics in common with those of other economies (indeed they are often identical) and yet the New Zealand economy must be understood in its own context and nature rather than merely fitted into international classifications.

New Zealand's cultural, political and social institutions are much indebted to our Maori heritage, by what was brought by the predominantly British immigrants and to what has been developed within New Zealand by local activity shaped by a continuing inflow of ideas and people. The economy, however, owes very little to the Maori heritage. Rather, Maori have had to adapt to participate in the economy, and current efforts to rectify departures from the provisions of the Treaty of Waitangi owe a great deal to the injustices that accompanied that process, most of them being unintended.

A pastoral colony

The modern New Zealand economy was developed almost entirely to participate in the 19th century economy centred on Europe and North America. Some natural resources were valuable once they were recovered and transported internationally, such as goldmining, which was (for a while) a major component of the New Zealand economy.

But the principal resource of New Zealand was the combination of land and climate which provided a long grass-growing season and made it possible to rear farm animals cheaply. Wool grown in New Zealand could compete successfully in the North Atlantic economy while providing incomes in New Zealand which were high in relation to those which could be earned elsewhere. From the end of the 19th century, wool was joined by refrigerated products, predominantly butter and cheese and frozen lamb. These exports financed a wide range of imports, allowing New Zealanders access to much the same pattern of consumption as was available in the industrialised countries of Europe and North America (and in other similar economies, such as Australia).

The New Zealand economy was therefore built around trade, and around trade in agricultural products. The relatively high incomes which could be earned in New Zealand attracted a continuing inflow of immigrants and induced a high rate of natural population increase. Most people did not work directly on farms but in urban centres. Agriculture required many services and inputs, and especially with the development of refrigerated products, some processing before being exported. Some imports could be transported more cheaply in bulk or as components, with the final packaging or assembly being done in local industries or services. New Zealand towns, while small in an international perspective, supported economic activity for which both production and consumption were entirely within New Zealand.

The New Zealand economy was one where ‘modernization’ was significantly different from the kind of ‘industrialisation’ elsewhere. This is the sense of the description of New Zealand as a ‘born free’ economy, one which achieved high income levels without industrialisation, although the term is misleading if it suggests that those high incomes were available without hard work.

Because Britain did not restrict imports and had a strong demand for the products which New Zealanders could produce most efficiently, it was overwhelmingly important among New Zealand's export markets. Because the settlers mostly had British ancestry and because the continuing inflow of newspapers and magazines was mostly from there, British goods largely satisfied consumption demand in New Zealand. This was also convenient for firms which could organise both exporting and importing. The political relationship between Britain and New Zealand was of secondary importance—New Zealand very early gained de facto control of its own trade relations—and while New Zealand governments provided some tariff preferences for British goods, they were not very important either.

Government intervention in the economy

Governments did, however, have an important economic role. In the 19th century, there was little interest anywhere in the idea of real income per capita, but New Zealanders were aware that their standards of living were better than those of Britain. The prevailing implicit economic objective was to maintain that position while building a larger population.

‘Development’ had the sense of (and which would now be attributed as) extensive growth, subject to the constraint that average real income should be maintained. Contemporary discussion was much more in terms of concrete examples of new railways, new industries, or newly farmed land rather than in any abstract terms. Whenever the government apparatus was judged to be useful in furtherance of this objective, there was little resistance to its use. There was little interest in the ‘majesty’ of government; in the economic sphere, it was readily accessible, as, when the population was small, it was in a personal sense.

Government was directly responsible for building and operating railways, and when gaps in the institutions available were not otherwise filled, as with insurance companies and some forms of financial institutions, a government agency was created. Governments depended heavily on customs duties for their revenue, and in designing tariffs, preference was given to activities which were established in New Zealand although, as far as possible, not at the expense of exporters. The government's role was largely supplementary to the private sector rather than seeking to control it.

In 1930s New Zealand, as elsewhere, government's economic responsibilities increased. Unemployment increased in the 1920s as more and more work was organised on the basis of continuous employment rather than relying on contract labour, but in the 1930s, unemployment rose to unprecedented levels. The problems were international in scope, and were transmitted to New Zealand through lower export prices. In New Zealand, both the government and the private sector found it very hard to respond other than by waiting for the problems to be solved overseas, although there were some determined efforts at local initiative. Despite the growth of beliefs that New Zealanders had drawn together in the face of a malevolent international economy, the experience of the 1930s was actually one of very considerable social tension. Recollections of the impact of unemployment played a key role in thinking about the economy for many years thereafter. Furthermore, the traditional belief that if the power of the state was useful it should be employed, was reinforced by changed international thinking which held that governments should be responsible not only for their own direct economic activities but for ensuring that the economy as a whole be as productive as possible.

One particular event joined with this historical background to shape the economy which emerged into the years after World War II. As incomes in New Zealand recovered from depression levels, the country's demand for imports rose. In December 1938, faced with a balance of payments crisis, the Labour Government introduced import and exchange controls. Unwilling to restrain imports by deliberately cutting incomes because a recurrence of unemployment would be unacceptable, the Government attempted instead to protect overseas reserves by licensing commodity imports and instituting exchange controls for other items involving overseas payments.

Import and exchange controls varied in severity from time to time and gradually declined in importance before their abolition in 1984. They survived largely because of the protection they afforded particular industries. Although they were introduced mainly because of a balance of payments crisis, their protective implications were quickly recognised. Politicians were apt to defend them in terms of their ability to promote industrial growth, even though they were well aware that New Zealand's real income was reduced if local industry grew only because cheaper imports were excluded.

The profits and jobs of many firms came to depend on the shelter afforded by import controls. The fear that these might be jeopardized made it politically difficult to manipulate the controls to contain foreign exchange payments within the limit of export earnings. And yet the workers in protected firms might have contributed more income in other occupations. In retrospect, the 1938 measures can be seen as a crucial component of the post-depression policy of ‘insulating’ the New Zealand economy from overseas influences. As such, they marked a significant discontinuity in the country's economic history.

Government would, in any case, soon have had many more direct economic responsibilities, as all countries use controls in wartime. What was unusual in New Zealand is that controls were associated with deliberate government policy and extension of the welfare state rather than with a wartime emergency. After some false starts, a ‘Stabilization Commission’ moderated price and income increases and in later years was often looked back upon with nostalgia. It was less often noticed that the success which was achieved owed a great deal to the strong discipline of fiscal policy which accompanied stabilisation. (The whole structure also depended on a willingness of sectional groups to subordinate their interests to the overwhelming objective of military success.) Because war created strong demand for New Zealand's exports, the balance of payments crisis was overcome, but controls were entrenched.

At the end of the war, many controls were dismantled but not import and exchange controls. Throughout the 1950s and 1960s, the basic structure of the economy depended on them, although precisely how was far from clear at the time. Import controls did not work through limiting the total value of imports but through ensuring that imports were mostly materials and equipment used in New Zealand activity. Businesses in New Zealand knew that they would be protected from competing final goods while generally being able to acquire needed inputs. Domestic investment was thereby enhanced since entrepreneurs could be confident about their markets. Even if they had misjudged the level of demand, errors would not be greatly penalised since population and income growth would, before long, enable the investment to be utilised.

High levels of private investment ensured that demand for labour would be high and New Zealand maintained a remarkably low level of unemployment. High levels of employment and aggregate demand meant that there was always a tendency for the demand for imports to run ahead of what could be financed from export receipts; the economy experienced a foreign exchange constraint. Bank credit was subject to direction by the Reserve Bank and was a major instrument in reducing demand when necessary. The government's own substantial investment programme could also be used to some extent.

The low level of unemployment was a major benefit of this structure. Not only was aggregate employment high, but a wide variety of jobs could be provided to suit the aptitudes and interests of individual New Zealanders. The value of this was realised only when it was lost in more recent years. The costs of the structure were that resources in New Zealand were not directed towards their most valuable use and incomes were lower on average than they could have been. This also was not fully realised at the time. It was noted that in relation to other countries, New Zealand got a lower return from its high level of investment, but even more attention was directed to the way that consumer goods available overseas were excluded from New Zealand or available only to customers who were somehow able to get themselves into a preferential position. (This was especially true of motor vehicles.)

Growth and diversification of exports

The structure gave a special role to exports. But while the New Zealand economy grew at a rate which was quite high in relation to earlier periods of history, it was soon apparent that export growth was not going to facilitate growth at a rate equal to what was being achieved by other countries. At the same time, growth of average or per capita real incomes was much more prominent than it had been in earlier years.

In the world generally, measurement of economic growth was more common: the growth and development of the world's relatively poor countries was a major topic of international economic and political discussion; and relative growth rates were used to assess the strengths and weaknesses of countries and their economic systems. While New Zealand's indigenous idea of ‘development’ in terms of expansion at a constant average income did not die overnight, it gradually became less important than growth of average incomes.

The market in Britain for New Zealand's exports did not offer scope for faster growth. Britain was growing less rapidly than many other countries, it was becoming concerned about its own farmers and wanted to protect their domestic market, and from the late 1950s onwards, there was always the prospect that Britain would eventually join the European Economic Community (EEC) and accede to its protectionist regime for agriculture. So the objective for New Zealand became diversification—diversification of both markets for traditional exports and diversification of the range of goods exported.

There was considerable success in this endeavour. Whereas in the early 1950s, under the particular stimulus of high commodity prices during the Korean War, Britain took about 90 percent of New Zealand's exports, by the time it actually joined the EEC in 1973, it took less than 20 percent. Over the same period, New Zealand's exports became more varied than the traditional frozen lamb, wool, butter and cheese. Much of the diversification was within agriculture, most obviously in the widening range of dairy products and the growth of beef exports. Furthermore, forest products became an important export. There were even moves towards exporting of manufactured goods (with government incentives being used for this purpose) but in the 1960s success was limited in scope, being mainly confined to aluminium processing.

Nevertheless, towards the end of the 1960s, there were many hopes that the constraint on New Zealand's growth rate was being removed. In 1967, the Government took the opportunity created by a realignment of British Sterling with other international currencies to devalue even further than sterling. New Zealand production became more competitive, especially for manufactured goods in Australia. Further, international commodity prices boomed, mainly in response to the impact of the Vietnam War on the United States economy.

The oil crisis and stagflation

The hopes proved to be misplaced. There were many reasons, but the main one was that in 1973, Middle East oil producers succeeding in implementing and sustaining a very sharp increase in the price of oil. In effect, a significant slice of world income was redistributed away from oil importers to oil producers, and New Zealand's export markets, although markedly more various than they had once been, were overwhelmingly oil importers. Diversification proved to be no answer when all markets contracted together.

The Government responded with the ‘growth’ or ‘think big’ projects, especially after a further rise in the relative price of oil in 1979. It was sensible to seek to use New Zealand's hydrocarbon resources which had become more valuable in line with the world price of oil. Unfortunately, this was presented in the readily-understood but misleading rhetoric of increasing New Zealand's self-sufficiency rather than as an element in a positive adaptation to a changed world economy. The real key was the competitiveness in the light of international prices, of New Zealand's industries whether they were growth projects, suppliers to growth projects, or only indirectly linked with the growth projects.

At the same time, reduced real incomes intensified sectional conflict and fed inflation. New Zealand's experience of inflation had previously been in line with international trends but became much larger, making it more difficult to evaluate investment projects and diverting attention from production to securing shelter against the impact of inflation. Unemployment began to grow. The government borrowed overseas, initially in line with international recommendations for dealing with the increased financial reserves of oil producers, but the borrowing was maintained for too long. It was subsequently defended as a sensible way to develop New Zealand's resources, but in fact it was supporting domestic consumption at a level above what was justified by production. Assistance to exporters was extended to agriculture, with the result that producers were given no incentive to look at trends in world markets, while much of the support was captured by urban suppliers of inputs to farmers. Some farmers gained, less by increasing output of marketable produce than by selling farms at prices which included capitalisation of government support.

There were achievements during the 1970s. Exports of manufactured goods (to Australia and other markets) did grow. Some of the agricultural sector developed markets in horticultural products and kiwifruit. The transport sector was significantly rationalized. The Closer Economic Relations (CER) Agreement with Australia provided exciting new opportunities for manufacturing and initiated a reorientation towards the international economy. But by 1984, it was clear that existing policies were leading New Zealand into increased overseas debt while not removing the disparity of incomes compared with other countries. The mechanisms which had produced full employment in the 1950s and 1960s had been lost; the fundamental problems remained. The election of a new government in July 1984 (which had resulted from a snap election and therefore had given few hostages to particular interest groups), provided an opportunity for an unusually sharp change of direction.

The economic achievements of the years between World War II and 1984 should not be overlooked. But while it is important to recognise the efforts of the diverse groups of people who grappled with policy issues, managed business enterprises of all kinds in the environment of the 1960s and 1970s, and worked diligently and intelligently at all kinds of employment, it is nevertheless true that New Zealand's average income was falling relative to what was being achieved in other countries. And while New Zealand's gross domestic product grew quite strongly in the late 1970s and early 1980s, an increasing share of the gains was returned to overseas lenders rather than to New Zealanders, and internal problems were suppressed rather than resolved.

Restructuring the economy

From 1984, there was therefore a major change in policy and in the basic structure of the economy. Economic policy was focussed on efficiency and equity. Both elements were controversial, and merely initiate enquiry rather than provide policy conclusions. But throughout the 1980s and early 1990s, there was continual and searching scrutiny of what government should try to do in the economic and social fields, and what instrument would best promote the objectives of the government. To describe this as a crusade is not misleading, especially for the Labour Government of 1984-90 which wanted to be seen by historians as a reforming government, comparable with the governments of the 1890s and of the later 1930s.

Changes were introduced in both the direct activities of the public sector, and the legislative and regulatory environment within which the private sector operated. In the former respect, particularly important innovations were the commercialisation and privatisation of government trading activities, and the reform of public sector management in which a key element was a change from funding programmes to purchase by ministers of defined services from government departments. Furthermore, the Reserve Bank was granted a high level of autonomy and charged with controlling inflation, a responsibility which it discharged with great success.

The importance attached to providing an environment in which other decisionmakers were induced to respond to market signals is shown most clearly in the removal of producer subsidies and the reduction of protection. Encouraging decisionmakers to respond to opportunities also necessarily promoted efforts to remove barriers in the way of their doing so, and the Government therefore implemented a process of regulatory reform. The intention was to remove inappropriate regulations, not all regulation. However, as the process started from a position where official controls were excessively detailed, it was not easy to maintain that distinction in popular discussion.

Governments accepted the argument for ‘transparency’—that if there are reasons for government to facilitate the operations of some group in society, they should be exposed for public scrutiny and debate. Ironically, the governments involved, both the Labour Government of 1984-90 and its successor National Government, 1990-93, were widely criticised for breaking electoral commitments. There is weight in this argument, which had a part in the 1993 decision, by referendum, to change the electoral system, but it underestimates the difficulty of telling people what they do not want to hear. Whatever is the final verdict on that issue, successive governments really did engage in an unusually searching analysis of what they were trying to do, making academically honest judgements about income transfers of all kinds.

The whole of the process of ‘restructuring’, the reorientation of New Zealand firms and enterprises towards being international businesses rather than providers to a protected domestic market, and the reform of the public sector, had to be managed within an overall stance of fiscal policy. It was not easy for the Government to manage its revenue and expenditure so as to support the ‘restructuring’ it wished to promote. On tax policy, the key actions were to implement a switch from direct to indirect tax (recommended by various bodies since at least 1967) and broadening the tax base so as to obtain a given total revenue from a lower average tax rate. The switch to indirect tax was achieved through the wide-ranging goods and services tax, (GST), a value-added tax implemented with unusually few exemptions and now widely recognised internationally as a model.

Tax policy was controversial enough, but it was the general stance of fiscal policy which attracted most dissent. The Government chose to withdraw from dealing in foreign currency and to allow the exchange rate to be determined in a free market. It gave up direct controls on wages, prices and interest rates, but made a determined assault on inflation. Such changes were radical, and far from understood. Nor did the Government secure immediately the outcomes it wanted. The need to borrow required it to offer attractive interest rates, and these attracted investors from overseas as well as from within New Zealand. As investment funds flowed into a free foreign exchange market, the exchange rate rose, and exporters, both agricultural and otherwise, found their returns from overseas sales worth less in New Zealand currency. Consumers gained from cheaper imports, but the loss of jobs from industry was more visible and painful. While there were some apparent countervailing gains by 1987, the international stock market crash of that year impacted heavily, revealing the unstable nature of some companies which had seemed to prosper in the new environment.

The background to all fiscal policy decisions was a level of overseas debt that was regarded as undesirable. There was never any prospect (after the election campaign of 1984), that New Zealand would not be able to meet its obligations, but the level of overseas public debt was high. It was expensive to service, and would become more so if international rating agencies decided that the riskiness of existing instruments had increased. Interest payments, on the total debt and not only on the overseas portion, constituted a significant fraction of total government spending, and reduced the Government's freedom of manoeuvre.

The lessons of the 1930s had not been forgotten, but government's management of its own affairs had become markedly more important than it was in the 1950s and 1960s. There was therefore always concern with the level and nature of its expenditure. But that expenditure was critical to activities which were seen by many as essential to the social life of New Zealand (although criticised by others.)

The quest for efficiency and equity

The thrust of government policy was towards securing ‘quality’ of government expenditure, ensuring that public assets and public funds were used as effectively as possible for the objectives towards which they were directed. And those objectives still reflected the overriding aims of efficiency and equity. It was, however, difficult to persuade people that such aims are different from reducing government expenditure for its own sake. People tend to think that fiscal pressures can easily be resolved by reducing spending which is other than that which supports their particular interests.

Economists think naturally of income maximisation, not because they are materialists but because incomes provide people with choices. Even for policy objectives, which are usually expressed in terms like ‘participation in society’ and which are therefore thought of as ‘social’ rather than ‘economic’, the experience of most people depends on their ability to make decisions about the disposition of household incomes. This is especially true of incomes earned in the labour market, which is a principal reason why employment levels have such social significance. But participation in society extends to collective activity, to the sense of belonging or social cohesion which follows from sharing in joint endeavours. Society may want to allocate some goods or services according to ‘need’ rather than according to income. It then has to find some means of judging ‘need’ and some process for ensuring that responsible institutions satisfy their mandate rather than use resources for their own purposes.

The essential policy decision was one with as many social as economic dimensions: the relative share of adjustment costs to be borne by those dependent for employment and incomes on the tradable sector and those similarly dependent on government expenditure. Most social of all was the judgment that existing New Zealanders should rely less on forcing succeeding generations to finance current consumption. Discussion of the budget deficit and the general strategy of fiscal policy is often regarded as technically demanding and of interest only to economists, but it is at the core of a social strategy.

The whole structure of policy was aimed at satisfying community aspirations, both social and economic. But those community aspirations are diverse and inconsistent so that no government can ever be entirely successful. And criticism of the government grew as unemployment levels climbed. New Zealand was not an attractive place for investment. The sharemarket crash of 1987 had a deep impact, especially in the property sector, and the climate of opinion (most obviously in Auckland) remained pessimistic. While a careful review of the evidence shows that experience is highly variable within all sectors of the economy, with firms which were able to adapt to changed circumstances finding areas of expansion, the news media remained dominated by the negative aspects of economic restructuring. And while their picture was misleading, it was undoubtedly true that growth of GNP was more difficult to secure than the Government expected and intended. The shift from ‘insulation’ to ‘international orientation’ was difficult.

It is conventional now to say that after 1984, the Government took the right actions but in the wrong sequence, that it should have moved first on labour and goods markets and only later deregulated the financial markets. There are obvious intellectual attractions in timing policy interventions according to the relative responsiveness of private sector participants, but such a choice was never available to policymakers. In 1984, exchange controls were breaking down anyway, as they were widely seen to be both ineffective and inappropriate in the face of technical change in communications. In a particular example, officials were well aware that there were dangers in floating the exchange rate when the budget deficit was high. They recommended reducing the deficit as much as possible, and then faced the question, given that political judgement set a limit on how rapidly the deficit could be reduced, was it wise to float the exchange rate in order to gain monetary control? Advising them that it would have been even better to first further reduce the deficit is hardly helpful.

An international competitive economy

The New Zealand economy has been changed into one with an international orientation. Especially since the CER Agreement with Australia, exports of manufactured goods to Australia have been a major activity. But manufactured goods are also exported to North America, Europe and Asia. They may depend on niche marketing (where manufacturers have narrowed their range of activity in which they can be internationally competitive), often relying on some expertise related to the agricultural and forestry sectors but sometimes relying on skill, knowledge or some other aspect of human capital. For an economy which is small in relation to Australia let alone Japan, the European Community or Europe, (but not relative to a great many of the 185 or so members of the United Nations), something which looks like a niche to others can be a major market. There are many examples such as the supply of windscreens to the builders and restorers of vintage cars in the United States. But the basis of manufactured exports is not always so bizarre. It may simply be a well-developed human skill, as in the case of control systems sold to Narita airport, or to the manufacturers of noodles or fish-farm feed in Korea. At the same time, agriculture and forestry are still the uses of New Zealand resources which are most valuable, in that they provide the best return in international markets. The New Zealand economy is a complex one, in which the key elements are the use of the skills and aptitudes of New Zealanders in securing high average incomes through international competitiveness, and the balancing of individual initiative with collective provision of services which contribute to a unique social and political community.

Directors of New Zealand Post on their way to present the annual report.

17.2 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 Statistics New Zealand are all integrated into the system, as are the inter-industry studies. Balance of payments statistics follow similar concepts and provide the basis of the external transactions account of the national accounts.

Annual national accounts for years ended 31 March are published each year. Provisional estimates are prepared for the latest March year only for the consolidated accounts of the nation (see below). Revised estimates for previous years are also prepared and detailed breakdowns of some of the main aggregates are also published for these years. The information used to compile the accounts becomes available progressively over a long period, and for some areas of the economy may not be available for up to three years after the March year to which it relates. Consequently, national accounts estimates are subject to revision during this period.

Tables in this section contain data for the latest available five years. For the consolidated accounts of the nation, data is provided for the years ended March 1988 to 1992, while some detailed breakdowns of the main aggregates are included for the years ended March 1987 to 1991.

Table 17.1. PRINCIPAL AGGREGATES OF THE NATIONAL ACCOUNTS (Revised)

AggregatesYear ended March
1989-901990-911991-921992-931993-941994-95
 $(million)
Gross domestic product71,40672,96273,03075,22079,99986,304
Plus, net factor receipts from rest of world-4,769-4,243-4,424-3,064-3,425-4,093
Gross national product66,63768,71968,60672,15676,57482,211
Less, consumption of fixed capital6,1686,5256,8847,3257,7278,279
National income at market prices60,46962,19461,72264,83068,84773,931
Plus, net current transfers from rest of world276235247241205155
National disposable income60,74562,42961,96965,07269,05274,087

Table 17.2. NATIONAL ACCOUNTS: 1962-1995

Year ended MarchGross National ProductGross Domestic ProductNational IncomeGDP at 1982/83 prices
***

* Excludes stock valuation adjustment.

Includes stock valuation adjustment.

19622,857..2,872..2,626..17,270
19633,096..3,114..2,847..17,779
19643,377..3,397..3,112..18,884
19653,699..3,721..3,412..20,038
19663,981..4,012..3,664..21,259
19674,148..4,190..3,775..22,065
19684,328..4,375..3,938..21,875
19694,610..4,642..4,184..22,341
19705,092..5,133..4,626..23,469
19715,791..5,832..5,268..24,338
19726,834..6,871..6,276..24,957
19737,846..7,887..7,223..26,063
19749,162..9,181..8,455..27,933
197510,049..10,107..9,226..29,059
197611,579..11,712..10,604..29,548
197713,936..14,162..12,820..29,591
197815,21414,63415,51114,97014,00813,46728,775
1979..16,549..16,958..15,25228,835
1980..19,335..19,795..17,86729,571
1981..22,557..23,068..20,88529,888
1982..27,401..28,016..25,47631,357
1983..30,703..31,561..28,45631,561
1984..33,774..35,049..31,08632,422
1985..37,675..39,677..34,43434,022
1986..43,257..45,777..39,43134,284
1987..52,257..55,024..47,76535,005
1988..59,267..62,536..54,03735,471
1989..63.910R..67,228..58,146R35,212
1990..66,637R..71,406R..60,469R35,800
1991..68,719R..72,962R..62,194R35,589
1992..68,606R..73,030R..61,722R35,129
1993..72,157R..75,221R..64,832R36,169
1994..76,574R..79,999R..68,847R38,107R
1995..82,211P..86,304P..73,931P40,421R

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.

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 17.3. GROSS DOMESTIC PRODUCT AND EXPENDITURE (Revised)

ItemYear ended March
1989-901990-911991-921992-931993-941994-95
 $(million)
Compensation of employees32,95933,36833,00133,65934,69537,416
Operating surplus21,63722,13922,54823,73526,60328,900
Consumption of fixed capital6,1686,5256,8847,3257,7278,279
Indirect taxes10,84811,13510,83710,78711,26811,964
Less, subsidies206205241286294255
Gross domestic product71,40672,96273,03075,22079,99986,304
Final consumption expenditure-general government11,73312,29112,26912,65812,69212,682
private43,45545,76045,93746,97448,74351,799
Value of physical increase in stocks2,0837097251,6262,1471,949
Gross fixed capital formation14,30313,79511,54112,36714,71217,260
Gross national expenditure71,57372,55570,47373,62578,29583,690
Exports of goods and services19,15419,93521,51923,69825,08526,920
Less, imports of goods and services18,97219,52719,20121,81222,70625,216
Expenditure on gross domestic product71,75672,96372,79175,51180,67485,393
Statistical discrepancy-350-238-291-675910

Table 17.4. NATIONAL INCOME AND OUTLAY (Revised)

ItemYear ended March
1989-901990-911991-921992-931993-941994-95
 $(million)
Final consumption expenditure—      
government—central10,34510,72010,67110,99910,96310,869
government—local1,3881,5711,5991,6591,7291,813
private—households42,73444,93845,05146,08447,84350,785
private—non-profit organisations serving households7208228868909011,014
Savings5,5574,3793,7625,4407,6179,606
Appropriation of national disposable income60,74562,42961,96965,07269,05274,087
Compensation of employees32,95933,36833,00133,65934,69537,416
Compensation of employees from the rest of the world, net------
Operating surplus21,63722,13922,54823,73526,60328,900
Property and entrepreneurial income from the rest of the world, net-4,769-4,243-4,424-3,064-3,425-4,093
Indirect taxes10,84811,13510,83710,78711,26811,964
Less, subsidies206205241286294255
National income60,46962,19461,72264,83068,84773,931
Current transfers from the rest of the world, net276235247241205155
National disposable income60,74562,42961,96965,07269,05274,087

Table 17.5. CAPITAL FINANCE (Revised)

ItemYear ended March
1989-901990-911991-921992-931993-941994-95
* Includes all government-owned producer enterprises.
 $(million)
Value of physical increase in stocks2,0837097251,6262,1471,949
Gross fixed capital formation—private10,95610,3039,13110,11112,74215,063
central government*2,4972,7331,6921,4771,1371,323
local government*850760718778833874
Purchase of intangible assets from the rest of the world, net------
Net lending to the rest of the world-4,146-3,177-1,365-271200-804
Gross accumulation12,24011,32710,90213,72217,05918,405
Savings5,5574,3793,7625,4407,6179,606
Consumption of fixed capital6,1686,5256,8847,3257,7278,279
Capital transfers from the rest of the world, net1654234946661,0411,430
Statistical discrepancy350-238291675-910 
Finance of gross accumulation12,24011,32710,90213,72217,05918,405

Table 17.6. EXTERNAL TRANSACTIONS (Revised)

ItemYear ended March
1989-901990-911991-921992-931993-941994-95
 $(million)
Current:
Exports of goods15,03115,68617,02918,79319,64620,746
Exports of services4,1234,2484,4904,9055,4396,174
Compensation of employees from the rest of the world------
Property and entrepreneurial income from the rest of the world6451,033853795525563
Other current transfers from the rest of the world533538564572569560
Current receipts20,33221,50622,93625,06526,17928,043
Imports of goods14,87115,23814,48216,53317,80820,034
Imports of services4,1014,2894,7195,2794,8985,182
Compensation of employees to the rest of the world------
Property and entrepreneurial income to the rest of the world5,4145,2765,2773,8593,9504,656
Other current transfers to the rest of the world257303317331364405
Surplus of nation on current transactions-4,311-3,600-1,859-937-841-2,234
Current disbursements20,33221,50622,93625,06526,17928,043
Capital:
Capital transfers from the rest of the world, net1654234946661,0411,430
Surplus of nation on current transactions-4,311-3,600-1,859-937-841-2,234
Capital receipts-4,146-3,177-1,365-271200-804
Net lending to the rest of the world-4,146-3,177-1,365-271200-804
Capital disbursements-4,146-3,177-1,365-271200-804

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. The aims are to:

  • Provide an overall view of the economy.

  • Trace the probable effects of major rises or falls in one industry's demand throughout the economy.

  • 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.

  • 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. Statistics New Zealand undertakes full-scale five-yearly inter-industry studies periodically 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, with less detailed studies available annually from 1990-91.

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.

Table 17.7. CONTRIBUTION TO GDP BY PRODUCTION GROUP

Production groupYear ended March
1986-871987-881988-891989-901990-911991-921992-93
 $(million)
Market production groups—
Agriculture3,0783,7044,1564,5703,9094,4864,388
Fishing and hunting218232258254237231267
Forestry and logging1,0391,1371,3691,4151,5051,5971,904
Mining and quarrying6285896418301,0141,0841,077
Manufacture of food, beverages, and tobacco3,2843,5933,9104,0154,2594,4704,512
Textiles, apparel, and leather970923800866814811815
Manufacture of wood products734700715752720723865
Manufacture of paper products, and printing1,3411,6591,6731,8261,9651,9411,859
Manufacture of chemicals, petroleum, rubber, plastic1,7511,5031,6021,7751,5241,4761,649
Manufacture of non-metallic mineral products413405427413424381433
Basic metal industries333253298459423476649
Manufacture of fabricated metal products2,6272,8002,6912,8482,6012,5562,758
Other manufacturing121128144151142122134
Electricity, gas, and water1,7121,7651,9822,1102,0992,0942,153
Construction2,7912,9382,9913,2182,8082,3962,299
Trade, restaurants, and hotels9,6159,80710,41210,09311,39110,44911,086
Transport and storage2,8103,1003,4623,7083,6663,6783,734
Communication1,6002,0912,1262,1992,3842,5212,453
Financing, insurance, real estate, and business services7,7319,49610,26810,74010,57410,53810,546
Ownership of owner-occupied dwellings3,4054,0604,9075,2755,9146,2136,119
Community, social, and personal services1,9032,3312,6142,6842,8463,1223,272
Nominal industry (bank service charge)-2,162-2,847-2,818-2,996-3,000-2,935-2,688
          Total, market production groups45,94150,36854,62857,20358,21758,43160,283
Non-market production groups       
Central government services5,7756,5707,1537,637R7,777R7,6847,853
Local government services584625720777835R785746
Private non-profit services450518577630697763777
Domestic services of households354867687289105
          Total, non-market production groups6,8447,7618,5179,1129,3819,3219,481
          Total, all production groups52,78558,12963,14666,31567,59867,75269,764
Plus, GST on production1,5013,3503,4804,4004,7414,6914,815
Plus, import duties570847507604556514553
Plus, other indirect taxes1682109587677487
Gross domestic product55,02462,53667,22871,40672,96273,03075,220

Shareholders pack the Christchurch Town Hall for a large public company's AGM.

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 17.7, 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 details for 1993-94 are not yet available.

In table 17.7, 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

Table 17.8 outlines gross fixed capital formation. It records 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 table, which analyses gross capital formation by asset type, is a summary of detailed tables, which include separate series for private, central and local government sectors.

Table 17.8. GROSS FIXED CAPITAL FORMATION BY TYPE OF CAPITAL GOOD

Year ended MarchResidential buildingsNon-residential buildingsOther constructionLand improvementsTransport equipmentPlant, machinery, and other equipmentTotal
 $(million)
19892,7972,9241,5161629704,52312,892
19903,3412,8111,4771751,6374,86114,303
19913,4192,392R1,5631541,4434,82413,795R
1992R2,9511,5961,7541631,2183,85911,541
1993R3,1741,5501,3271841,6534,47912,367
1994R3,9101,8581,2761992,0845,38614,712
19954,8272,5011,2501812,3216,18017,260

Increase in stocks.Table 17.9 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 17.9. VALUE OF PHYSICAL INCREASE IN STOCKS BY PRODUCTION GROUP

Production groupYear ended March   
1988-891989-901990-911991-921992-93
 $(million)
Market production groups
Agriculture331911268468
Fishing and hunting4512811
Forestry and logging1,0861,0801,0791,0751,149
Mining and quarrying13-27-74
Manufacture of food, beverages, and tobacco87-6-34-15
Textiles, apparel, and leather-1514102943
Manufacture of wood products4729-37-12-2
Manufacture of paper products, and printing-204-15-13-1
Manufacture of chemicals, petroleum, rubber and plastic-326-50-4342
Manufacture of non-metallic mineral products-154-17-10-6
Basic metal industries4070-54-1213
Manufacture of fabricated metal products-209194-108-2938
Other manufacturing273-58
Electricity, gas and water-232-9-8-46
Construction-36-37-2-256
Trade, restaurants and hotels-211541-253-211317
Transport and storage-1512-1-20-3
Communication-14-203-49-23
Financing, insurance, real estate and business services16-9-75
Ownership of owner-occupied dwellings-----
Community, social, personal services39-23142124
          Total, market production groups7642,0827077301,632
Non-market production groups     
Central government services3--65
Local government services113-11-11
Private non-profit services-----
Domestic services of households-----
          Total, non-market production groups213-5-6
Total, all production groups7672,0837097251,626

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 17.10(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 17.10(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.

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 17.11 contains production-based GDP statistics. That is, estimates of value added for each industry are expressed 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.

Examining the “Women Entrepreneurs Book” which helps business women network to make contacts, friends and keep up to date with information.

Table 17.1. FINAL CONSUMPTION EXPENDITURE OF RESIDENT HOUSEHOLDS (A) BY PURPOSE

 Year ended 31 March
1990-91R1991-92R1992-93R1993-94R1994-95

*Included in ‘hotels and restaurants’ is the expenditure on alcohol consumed in licensed premises. Purchases from bottle stores and wine outlets are included in ‘beverages’.

Includes fringe benefits received by households.

 $(million)
Food and beverages—
     food5,6645,6175,7415,7966,073
     beverages*1,8681,8451,9081,8741,903
Clothing and footwear2,1882,1222,1692,2852,433
Housing—
     imputed rent of owner-occupied dwellings7,3257,5547,5137,7088,070
     rental payments and associated costs1,8621,8931,9502,0182,303
Household goods and services—
     fuel and power1,0661,1421,1641,2311,269
     furniture, floor coverings and appliances1,8151,7801,8942,1112,353
     textiles and tableware673667708767853
     other goods and services1,1611,2371,2901,4101,449
Health services2,7793,1493,3833,5763,697
Transport—
     cars, motorcycles and vehicles1,7101,4701,2961,4861,834
     vehicle operation3,4563,3053,3433,4243,492
     public transport1,5391,5331,5711,6291,807
Recreation*3,7973,7804,0214,3544,701
Hotels and restaurants*3,2423,1903,2923,4703,822
Other goods and services—
     tobacco1,1421,1431,1491,1521,148
     personal1,5441,5901,6171,6871,816
     post and telephone1,0571,1231,1691,1961,290
     other services†1,4241,3441,4641,4331,520
     Total expenditure by households in New Zealand45,31045,48346,64048,60851,834
Less, non-resident households' expenditure in New Zealand. Plus, resident households' expenditure overseas-371-432-556-765-1,049
     Final consumption expenditure of resident households44,93845,05146,08447,84350,785
(B) BY TYPE
 $(million)
Total non-durables13,67413,64014,00014,24314,771
Total durables10,39610,03410,13510,98112,127
Total services†21,24021,80922,50623,38424,935
     Total expenditure by households in New Zealand45,31045,48346,64048,60851,834
Less, Non-resident households' expenditure in New Zealand.
     Plus, resident households' expenditure overseas-371-432-556-765-1,049
     Final consumption expenditure of resident households44,93845,05146,08447,84350,785

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 tables 17.12 (actual) and 17.13 (seasonally adjusted).

The constant price series are valued at 1982-83 prices.

Table 17.11. INDEXES OF GROSS DOMESTIC PRODUCT AT CONSTANT PRICES*

 AgricultureFishing, hunting, forestry, miningManufacturingElectricity gas & waterConstructionTrade restaurants, hotelsOwner occupied dwellingsTransport,communicationsGeneral government servicesGDP

* Quarterly indexes are shown as annual equivalents. Base: 1982-83 (= 100.00). Stock valuation adjustment is included. Indexes for the nine quarters up to and including June 1995 are provisional.

Includes business and personal services.

Calculated as the average of the four quarterly indexes.

Actual
March year‡
1987116137109118113104109126R100110.9
1988138131105119114102110134R99112.4
198912815410312210499112136R98111.6
1990122166103126109101114141R96113.4
1991143163981279299116143R95112.8
1992132176961327298118147R96111.3
199313518310212175100119152R97114.6
1994143187R10812886107120161R96120.7
199514418211613510211812217195128.1
Actual
Quarterly
1993 Mar1561781041267498120155R93115.9
Jun90R154106121R84102120156R98113.4R
Sep12517310514590104R120158R99118.4R
Dec193R226R112R119R92R115121164R95128.5R
1994 Mar162196R108128R77108121167R92122.7R
Jun94R159R111123R98113121168R96120.9R
Sep12917211115410111412216999125.7
Dec19320912213811012612217495136.5
1995 Mar1581891191259811812317491129.2
Jun9414211913811511912317796126.1
 Seasonally adjusted
Quarterly
1993 Mar1381751041298110112015597116.4
Jun1381841061258210312015697117.6
Sep1431801091328910612015996120.4
Dec1431931081178610812116295121.0
1994 Mar1441931091328511112116796123.3
Jun1441901121299511412116896125.3
Sep14818011414010011712217096127.5
Dec14317811713710311912217396128.9
1995 Mar14018611912810812212317395130.0
Jun14416911914211112112317794130.4

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.

INDEX OF GDP At constant prices

Both actual and seasonally adjusted indexes of GDP at constant prices by industry group are shown in table 17.11. The seasonal adjustment process removes the effect of regular seasonal events, eg, 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.

Table 17.12. ACTUAL EXPENDITURE ON GDP AT CONSTANT PRICES*

 Final consumption expenditure
PrivateGeneral governmentIncrease in stocksGross fixed capital formationGross National ExpenditureExports of goods and serviceLess imports of goods and servicesExpenditure on GDPIndex of expenditure on GDPIndex of production based GDP
* 1982-83 prices; year ended 31 March 1983.
March year$(million)
198821,9116,050419,35337,35512,22712,96136,621115.5112.4
198922,3336,0441499,11137,63712,39212,85437,175117.2111.6
199022,4116,0409199,95639,32612,12614,75636,696115.7113.4
199122,4696,1162339,55038,36813,05315,00636,415114.9112.8
199222,0206,161-88,03136,20413,87914,49635,587112.2111.3
199322,1286,2694098,77737,58314,03115,71735,897113.2114.6
199422,9486,07779210,55540,37215,28517,59138,066120.1120.7
199523,9965,98360613,20743,79216,36520,90739,250123.8128.1
Quarterly
1990 Mar5,2301,4784992,3099,5163,1523,4039,265116.9112.2
Jun5,6171,668-5112,4249,1983,4493,7058,942112.8109.8
Sep5,6191,501-782,4979,5393,1424,1288,553107.9111.2
Dec6,0201,5275862,50910,6423,1373,71410,065127.0119.5
1991 Mar5,2131,4202362,1208,9893,3253,4598,855111.7110.5
Jun5,4791,680-6241,9158,4503,6293,4388,641109.0106.1
Sep5,4771,490-4952,0098,4813,4193,6928,208103.6108.8
Dec5,8771,5385732,13510,1233,4203,7729,771123.3118.4
1992 Mar5,1871,4535381,9729,1503,4113,5948,967113.1112.0
Jun5,4501,713-4142,0958,8443,8713,7328,983113.3110.1
Sep5,4671,531-4772,2298,7503,2784,1507,87899.4110.4
Dec5,9761,5746842,31010,5443,3754,1619,758123.1122.0
1993 Mar5,2351,4516162,1439,4453,5073,6749,278117.1115.9
Jun5,6271,642-4062,4709,3333,8534,1069,080114.6113.4
Sep5,7021,515-2632,7229,6763,6924,6008,768110.6118.4
Dec6,1741,5078652,79711,3433,7214,65310,411131.3128.5
1994 Mar5,4451,4135962,56610,0204,0194,2329,807123,7122.7
Jun5,8981,580-4633,09110,1064,3144,8429,578120.8120.9
Sep5,9481,487-3313,43710,5413,8675,5388,870111.9125.7
Dec6,4371,5078383,40112,1833,9875,47210,698135.0136.5
1995 Mar5,7131,4095623,27810,9624,1975,05510,104127.5129.2
Jun6,0671,594-3373,75911,0834,1785,4879,774123.3126.1

Table 17.13. SEASONALLY ADJUSTED EXPENDITURE ON GDP AT CONSTANT PRICES*

QuarterFinal consumption expenditure
PrivateGeneral GovernmentIncrease in stocksGross fixed capital formationGross National ExpenditureExports of goods and servicesLess imports of goods and servicesExpenditure on GDP
*1982-83 prices; year ended 31 March 1983.
 $(million)
1990 Mar5,5791,5711132,4669,7293,2013,6709,260
Jun5,6011,543972,4509,6913,1953,7739,113
Sep5,6341,5372852,4369,8923,2533,9269,219
Dec5,6481,52412,3879,5603,3113,5669,305
1991 Mar5,5561,510-1622,2679,1713,3673,7498,789
Jun5,4831,558-651,9398,9153,3813,5018,795
Sep5,4961,518-721,9528,8943,5663,4848,976
Dec5,5061,534122,0329,0843,5873,6359,036
1992 Mar5,5231,5441012,1219,2893,4763,9008,865
Jun5,4601,5941412,1179,3123,5853,8039,094
Sep5,4981,558-82,1539,2013,4203,9048,717
Dec5,5841,570982,2119,4633,5244,0088,979
1993 Mar5,5921,5441632,3169,6153,5004,0069,109
Jun5,6461,5311582,4869,8213,6344,1919,264
Sep5,7331,5382282,61010,1093,8484,3169,641
Dec5,7661,5022632,69610,2273,8594,4809,606
1994 Mar5,8201,5041362,78610,2464,0014,6219,626
Jun5,9181,4791023,09210,5914,0794,9429,728
Sep5,9741,5061813,28810,9494,0505,1979,802
Dec6,0001,5022193,28711,0084,1275,2749,861
1995 Mar6,0941,4991223,57211,2874,1725,5289,931
Jun6,1371,4912333,74311,6043,9465,5959,955

17.3 Balance of payments

New Zealand's balance of payments statements are records of the value of New Zealand's transactions in goods, services and income with the rest of the world, and the changes in New Zealand's financial claims on, and liabilities to, the rest of the world.

The balance of payments summarises all New Zealand's international transactions over a given period of time:

  • Exports and imports.

  • The cost of transporting New Zealand exports and imports internationally.

  • How much New Zealanders spend holidaying overseas and how much foreign tourists spend holidaying in New Zealand.

  • How much is spent servicing the overseas debt.

  • What countries are invested in and which invest in New Zealand.

  • How much is earned from New Zealand investments overseas.

  • How much foreign investors earn from their investments in New Zealand.

  • All the government's international transactions.

In short, it is a statement summarising income and expenditure and the investment decisions with the rest of the world. The current account records the day-to-day income and expenditure while the capital account records the investment decisions.

Principally, balance of payments data is designed for macro-economic analysis. The Government and their advisers use it in determining future international and trade policies and assessing the effectiveness of existing policies.

International credit rating agencies use balance of payments and overseas debt statistics in assessing New Zealand's ability to service and repay the overseas debt. Both are key statistics in determining our credit rating.

The balance of payments shows New Zealand's history as an international borrower. It provides companies with a view of what they earn and spend internationally in relation to the whole of New Zealand. In short, it provides a picture of international New Zealand.

Statistics New Zealand compiles New Zealand's balance of payments statistics in accordance with recommendations contained in the fourth edition of The Balance of Payments Manual, produced by the International Monetary Fund. In late 1993 the IMF issued the fifth edition of the manual. This introduced a considerable number of changes to the compilation and presentation of the balance of payments statistics, including an expansion in the coverage of financial items; a clear distinction in the current account between transaction in services and income; an expansion in the list of services; the use of a 10 percent threshold for direct investment; and the removal of capital transfers, for example, migrants' transfers, from the current account.

To implement the fifth edition of the balance of payments manual, Statistics New Zealand will need, among other things, to develop new collections, change existing questionnaires, and amend and develop computer systems. This process will take several years, which is also the experience of other statistical agencies. As yet, no date has been set for when Statistics New Zealand will publish its balance of payments statistics on a fifth edition basis. However, an implementation strategy will soon be developed and statistical users will be consulted.

Essential principles guiding the compilation of New Zealand's balance of payments statistics are:

  • Balance of payments statistics include transactions between residents of New Zealand and residents of other countries.

  • 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 their New Zealand dollar equivalent.

Balance of payments statements are published quarterly and annually (year ended 31 March) by Statistics New Zealand. Both quarterly and annual statements show a full current account. The annual statement shows the capital flows of both the private and official sectors while the quarterly statements show the capital flows of only the official sector.

Most of the data we use to compile the balance of payments statement comes from the companies undertaking international transactions. In some instances alternative data collections, official records or models are used rather than directly surveying companies or individuals.

With annual balance of payments statistics available back to 1950-51 and quarterly estimates back to June 1965, historical trends can be mapped with a view to seeing where the future lies given different assumptions.

Table 17.14. ANNUAL BALANCE OF PAYMENTS STATISTICS SUMMARY OF MAJOR COMPONENTS

itemYear ended March
19931994P1995P
Credit DebitCredit DebitCredit Debit
* For the year ended March 1994, data is for the official sector only.
 $NZ(million)
Exports/imports (fob)18,604 15,19219,517 16,38220,616 18,524
Balance on merchandise trade 3,412  3,135  2,093 
Exports/imports of services4,903 6,7525,360 6,4226,133 6,826
Balance on services -1,849  -1,062  -693 
International investment income-77 3,788596 5,225639 6,217
Transfers1,813 9052,151 9062,592 1,007
Balance on invisibles -4,806  -4,446  -4,687 
Balance on current account -1,394  -1,311  -2,594 
Direct investment4,405 -2,0934,449 3,702.. ..
Portfolio investment-1,087 45,645 652.. ..
Other capital*-2,216 -412-2,118 1,943-2,113 ...
Reserve assets  62  737... -379
Net errors and omissions-4,321  369  4,870  
Net apparent capital inflow1,456  2,048  2,155  

Table 17.15. ANNUAL BALANCE OF PAYMENTS STATISTICS CURRENT ACCOUNT BALANCES

Year ended MarchMerchandise tradeInvisibles*Current account*
* Revised 1984-93.
 $NZ(million)
198479-2,000-1,921
1985-734-2,622-3,356
1986-651-3,398-4,049
1987709-3,533-2,824
19881,697-4,067-2,370
19893,319-3,877-558
19901,350-4,165-2,815
19911,561-3,519-1,958
19923,591-5,598-2,007
19933,412-4,806-1,394
1994P3,135-4,446-1,311
1995P2,093-4,687-2,594

Table 17.16. ANNUAL BALANCE OF PAYMENTS DIRECT INVESTMENT STATISTICS

Year ended MarchForeign direct investment in New ZealandNew Zealand direct investment overseas
 $NZ(million)
198420554
1985456349
1986745166
1987402949
1988238938
1989725226
19902,8243,961
19912,9322,546
19922,026728
19934,405-2,093
1994P4,4493,702
1995--

BALANCE OF PAYMENTS

17.4 Overseas debt

New Zealand's overseas debt statistics measure, at specific points in time, the outstanding total gross liabilities (excluding equity capital) of New Zealand located organisations to all overseas located organisations and individuals.

Statistics New Zealand measures New Zealand's overseas debt four times a year: 31 March, 30 June, 30 September and 31 December. It uses the results from two surveys to do this, the:

  • Quarterly Total Overseas Debt Survey conducted by Statistics New Zealand.

  • Monthly Survey of Nominee Companies conducted by the Reserve Bank of New Zealand. This is used to obtain information on domestically issued securities.

New Zealand's overseas debt includes the liabilities of New Zealand companies to their overseas parents, subsidiaries or branches, but does not include the liabilities of the overseas subsidiaries and branches of New Zealand companies. Three other types of liabilities are excluded. They are:

  • The overseas liabilities of New Zealand persons and households.

  • Equity capital.

  • Contingent liabilities.

The first type is excluded due to the difficulty in collecting that data, while the other two are excluded for conceptual reasons. Debt is not an obligation to pay, but an obligation to repay. Equity capital does not represent an obligation to repay the owners and is therefore excluded from the overseas debt statistics. A liability must represent an actual claim that is legally in existence and hence contingent liabilities are also excluded.

Debt can be raised in any currency and only has to be owed to a non-resident of New Zealand (a foreigner) to be included. It may be held in a variety of instruments: either as loans, bills, bonds, deposits, accounts payable or as domestically issued securities. Domestically issued securities taken up by foreigners either directly or through nominee companies have been included in the overseas debt statistics since 31 December 1992.

The following tables show details of New Zealand's overseas debt. Information is available on the:

  • Amount of the debt held by each economic sector.

  • Term structure of the debt.

  • Main currencies in which the debt is denominated.

  • Types of liability instrument used to raise the debt.

  • Repayment schedule of the debt, based on time to run to scheduled maturity.

  • Ratio of debt to gross domestic product (GDP) and to exports of goods and services.

Table 17.17. OVERSEAS DEBT

 30 Jun 94R30 Sep 94-31 Dec 9431 Mar 9530 Jun 95
 $NZ(million)
Official government23,86524,75624,14823,41821,976
Other sector43,91742,44642,27744,19444,239
          Total67,78267,20266,42567,61166,215

Table 17.18. OVERSEAS DEBT BY LIABILITY TERM

 30 Jun 94R30 Sep 9431 Dec 9431 Mar 9530 Jun 95
* Includes imputations for non-response and a constant estimate for the known non-surveyed firms.
$NZ(million)
Current liabilities23,29523,00621,84423,71823,193
Current portion of long-term liabilities4,8923,7073,6743,6092,130
Long-term liabilities29,15128,43827,94827,81027,707
Domestically issued securities8,67210,28011,22110,73711,358
Unallocated estimate*1,7721,7721,7381,7381,827
          Total67,78267,20266,42567,61166,215

Table 17.19. OVERSEAS DEBT BY CURRENCY OF DENOMINATION

 30 Jun 94R30 Sep 9431 Dec 9431 Mar 9530 Jun 95
* Includes imputations for non-response and a constant estimate for the known non-surveyed firms.
 $NZ(million)
NZ Dollars24,24926,68626,77329,17129,294
US Dollars25,59422,27223,04323,23221,538
Japanese Yen5,5575,5765,3316,1205,575
Australian Dollars3,9924,2583,8553,3413,527
Other currencies6,6186,6385,6864,0104,454
Unallocated estimate*1,7721,7721,7381,7381,827
          Total67,78267,20266,42567,61166,215

OVERSEAS DEBT By currency

Table 17.2. OVERSEAS DEBT BY DEBT INSTRUMENT

 30 Jun 94R30 Sep 9431 Dec 9431 Mar 9530 Jun 95
* Includes imputations for non-response and a constant estimate for the known non-surveyed firms.
 $NZ(million)
Loans22,77523,35521,80921,99822,164
Bills and bonds19,10618,14916,91216,47815,544
Deposits14,42712,42613,40415,30214,246
Accounts payable1,0301,2211,3411,3571,075
Domestically issued securities8,67210,28011,22110,73711,358
Unallocated estimate*1,7721,7721,7381,7381,827
          Total67,78267,20266,42567,61166,215

Table 17.21. OVERSEAS DEBT BY MATURITY PROFILE

 30 Jun 94R30 Sep 9431 Dec 9431 Mar 9530 Jun 95
*Includes imputations for non-response and a constant estimate for the known non-surveyed firms.
 $NZ(million)
At call5,9365,9915,1674,7355,184
2-89 days17,70616,81616,83519,73116,771
90 days and under 1 year8,6487,8158,2727,8759,018
1-5 years16,79517,14116,79217,07415,691
Over 5 years16,92417,66717,62216,45817,724
Unallocated estimate*1,7721,7721,7381,7381,827
          Total67,78267,20266,42567,61166,215

Table 17.22. OVERSEAS DEBT RATIOS

DateOverseas debtGDPExport of goods and servicesRatio of overseas debt to:
GDPExport of goods and services
  $NZ (million) percentpercent
30 Jun 199467,782R81,69425,23383,0268.6
30 Sep 199467,20282,66125,51381.3263.4
31 Dec 199466,42584,00426,21879.1253.4
31 Mar 199567,61185,27026,74979.3252.8
30 Jun 199566,21586,51126,61176.5248.8

17.5 International investment position

New Zealand's international investment position statement is a statement showing the value of all New Zealand's international assets and liabilities at specific points in time. By also including international assets their scope is wider than the overseas debt statistics.

International investment position statistics are relatively new in New Zealand. An international investment position statement shows the value of a country's international assets and liabilities, recorded at a given point in time.

The difference between the total value of a country's international assets and its international liabilities is its net international investment position. The net position of an economy is often used to characterise an economy as either a ‘net creditor’ or ‘net debtor’.

Statistics New Zealand's first attempt to measure New Zealand's complete international investment position was published in October 1992. This initial statement reported the value of New Zealand's assets and liabilities as at 31 March 1989, 1990 and 1991. Annual statistics are now published.

The framework used in compiling New Zealand's international investment position statement was designed by the International Monetary Fund. There are two approaches that may be used:

  • A balance sheet basis, showing assets and liabilities.

  • A balance of payments basis, showing foreign investment in New Zealand and New Zealand investment abroad.

Whichever approach is used, the same net international investment position results.

The second approach, the balance of payments approach, is the one recommended by the International Monetary Fund as it represents the stock or level of investment shown in the capital account of the balance of payments statement. International investment position statistics can be linked to the financial transactions shown in the capital account of the balance of payments via a reconciliation statement.

Theoretically the difference in the level of international assets and international liabilities between two points in time can be due to either:

  • Transactions (recorded in the capital account of the balance of payments).

  • Changes in market prices.

  • Exchange rate variations.

  • Other adjustments, such as write-offs and reclassifications.

Despite not being recommended by the International Monetary Fund, the first approach (the balance sheet basis) is still useful. It represents the stock or level of our international assets and liabilities on a gross basis consistent with that used in the overseas debt statistics.

New Zealand international investment position statistics are derived from data collected from three sources, the:

  • Annual capital investment survey, conducted by Statistics New Zealand;

  • Quarterly total overseas debt survey, conducted by Statistics New Zealand; and

  • Official overseas reserves statistics, produced by the Reserve Bank of New Zealand.

The major data source is the annual capital investment survey. This is a census of about 5,500 New Zealand companies which engage in international transactions. This survey collects information on the:

  • Market value of New Zealand's shareholdings in overseas-located companies;

  • Value of New Zealand's other financial claims on foreigners;

  • Market value of foreign ownership of New Zealand companies; and

  • Value of New Zealand's other financial liabilities to foreigners.

Companies in New Zealand's annual capital investment survey are asked for the value of their international assets and liabilities as at 31 March each year. When companies cannot provide valuations as at 31 March each year, they are asked to provide valuations as at their balance date immediately prior to 31 March.

Analysis of the survey data suggests that at the total level, the data published for New Zealand investment abroad and foreign investment in New Zealand is fairly representative of March year valuations. However, there is some variation when looking at individual component series.

The accepted basis of valuation for an international investment position statement is market value although in practice this is not always possible to obtain.

Table 17.23. NEW ZEALAND'S INTERNATIONAL ASSETS AND LIABILITIES

ItemAt 31 March
1990R1997R1992R1993R1994
 $NZ(million)
Assets—
     equity7,83313,56915,24115,38416,529
     lending7,9469,3459,5527,2889,242
     official reserve assets5,6126,6085,7896,1716,909
          Total international assets21,39129,52230,58328,84332,679
Liabilities—
     equity13,85415,06018,60023,51828,026
     borrowing53,26561,92264,25767,85969,898
          Total international liabilities67,11976,98282,85791,37797,924
Net international investment position-45,728-47,460-52,274-62,534-65,245

Table 17.24. NEW ZEALAND'S INTERNATIONAL INVESTMENT POSITION

ItemAt 31 March
1990R1991R1992R1993R1994
 $NZ(million)
New Zealand investment abroad—
     direct investment5,64910,14911,5068,0259,475
     portfolio and other investment9,10710,28810,77610,90114,630
          Total investment abroad14,75620,89722,28318,92624,106
Foreign investment in New Zealand—
     direct investment13,72018,34922,74327,81033,634
     portfolio and other investment46,76350,00851,96453,64955,717
          Total foreign investment60,48468,35774,55881,46089,350
Net international investment position-45,728-47,460-52,274-62,534-65,245

17.6 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 more than 30,000 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, number of persons engaged, type of activity and degree of overseas ownership.

Previous Business Directory statistics have included businesses that have compulsorily registered for GST. In some cases compulsory GST registrations have become economically insignificant over time, while some voluntary GST registrations have grown and become economically significant. Statistics in this publication are based on economically significant enterprises. These are generally defined as those with annual GST expenses or sales greater than $30,000, or those in a GST-exempt industry.

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 Statistics New Zealand's series of business census publications.

The statistics on activity units in table 17.24 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 17.25. ACTIVITY UNITS* AND FTE PERSONS ENGAGED† BY INDUSTRIAL CLASSIFICATION

NZSICdescriptionFTE persons engaged, February
19941995

*Generally defined as those enterprises with greater than $30,000 annual GST expenses or sales, or in a GST-exempt industry.

Full-time equivalent (FTE) persons engaged equal the sum of the full-time persons engaged plus half the part-time persons engaged.

New Zealand Standard Industrial Classification.

112Agricultural contracting servicesActivity units3,6954,415
  Full-time equivalents14,19115,592
113Hunting trapping and noxious animal controlActivity units7888
  Full-time equivalents243231
120-12300Forestry and loggingActivity units2,6253,408
  Full-time equivalents8,9929,911
131Ocean and coastal fishingActivity units1,3641,367
  Full-time equivalents3,6633,912
132-133Other fishingActivity units342359
  Full-time equivalents989985
21Coal miningActivity units5959
  Full-time equivalents853907
22Crude petroleum and natural gasActivity units8584
  Full-time equivalents886891
23-29Other mining and quarryingActivity units493509
  Full-time equivalents2,7302,911
3111Slaughtering and meat processingActivity units337344
  Full-time equivalents25,51323,900
31122Manufacture of milkActivity units3640
  Full-time equivalents794738
31123Manufacture of ice creamActivity units2425
  Full-time equivalents505533
31125Manufacture of dairy productsActivity units7878
  Full-time equivalents6,4466,503
3113-3122Manufacture of other foodsActivity units1,6281,734
  Full-time equivalents26,36827,093
313Manufacture of beverageActivity units210229
  Full-time equivalents2,9543,123
314Manufacture of tobaccoActivity units87
  Full-time equivalents511494
321Manufacture of textilesActivity units832896
  Full-time equivalents10,37710,988
322-324Manufacture of wearing apparel and footwearActivity units1,4921,553
  Full-time equivalents17,96817,799
33Manufacture of wood processing and wood productsActivity units3,2953,618
  Full-time equivalents24,70226,988
34110Manufacture of pulp paper and paperboardActivity units3328
  Full-time equivalents3,8383,629
3412Manufacture of paper and paperboard containersActivity units6565
  Full-time equivalents3,0373,096
3419Manufacture of pulp paper and paperboard necActivity units6869
  Full-time equivalents1,7291,922
342Printing and publishingActivity units1,4831,561
  Full-time equivalents17,18717,981
3511Manufacture of basic industrial chemicalsActivity units5458
  Full-time equivalents836891
3512Manufacture of fertilisers and pesticidesActivity units6983
  Full-time equivalents1,1821,320
3513Manufacture of synthetic resins and plasticsActivity units108111
  Full-time equivalents2,4432,619
352Manufacture of other chemicals and pesticidesActivity units366401
  Full-time equivalents5,6806,009
353Petroleum refineriesActivity units22
  Full-time equivalents585574
354Manufacture of petroleum and coal productsActivity units4143
  Full-time equivalents431427
35513Manufacture of tyres and tubesActivity units4440
  Full-time equivalents1,0811,080
3559Manufacture of rubber products necActivity units7780
  Full-time equivalents876894
356Manufacture of plastic productsActivity units429427
  Full-time equivalents7,6238,203
36Manufacture of non-metallic mineral productsActivity units847932
  Full-time equivalents6,3556,936
37Basic metal industries mineral productsActivity units229235
  Full-time equivalents6,5686,869
381Manufacture of fabricated metal productsActivity units2,5642,733
  Full-time equivalents20,94622,313
382Manufacture of machineryActivity units2,9563,210
  Full-time equivalents17,52618,505
383Manufacture of electrical machineryActivity units650688
  Full-time equivalents10,82012,192
384Manufacture of transport equipmentActivity units1,0121,121
  Full-time equivalents13,45213,964
385Manufacture of professional equipmentActivity units84101
  Full-time equivalents591636
390Other manufacturing industriesActivity units9791,073
  Full-time equivalents4,5334,601
41010Electricity generation and distributionActivity units356371
  Full-time equivalents8,8718,215
4102Gas treatment and distributionActivity units3636
  Full-time equivalents959858
41030,42000Steam and hot water supply water work and supplyActivity units144141
  Full-time equivalents1,1311,090
51 & 53Construction of buildings and ancillary servicesActivity units22,30326,155
  Full-time equivalents60,99670,088
52Other constructionActivity units2,6792,885
  Full-time equivalents16,18017,569
61111-61215,6122Wholesale primary productsActivity units1,2821,368
  Full-time equivalents8,7338,668
61216-61219,61231-6139,614Wholesale food and textilesActivity units1,7892,057
  Full-time equivalents11,54212,406
 Wholesale timber and hardwareActivity units1,5391,665
  Full-time equivalents11,58112,496
615Wholesale household appliances furniture and furnishingsActivity units377421
  Full-time equivalents2,3182,394
616-6181,6199Wholesale otherActivity units5,3735,969
  Full-time equivalents24,87026,373
6182-6184Wholesale commercial and professional equipmentActivity units3,2043,621
  Full-time equivalents20,14422,751
6185-6189Wholesale motor vehicles and motor cyclesActivity units729847
  Full-time equivalents4,7055,247
6191-6195Wholesale trade necActivity units511588
  Full-time equivalents2,0672,223
621-623,626-627Retail primary products textiles paper and pharmaceuticalsActivity units13,47213,926
  Full-time equivalents64,95367,559
624-625,629Retail paint, wallpaper and hardwareActivity units10,29511430
  Full-time equivalents40,82943,982
628Transport vehicles and fuelsActivity units6,9617,227
  Full-time equivalents33,62735,444
63Restaurants hotels etcActivity units10,56711,564
  Full-time equivalents61,06865,802
7111Railway transportActivity units205206
  Full-time equivalents1,9551,936
7112,7113Road transport—passengerActivity units2,0542,461
  Full-time equivalents7,7258,231
7114Road transport—freightActivity units4,9345,174
  Full-time equivalents19,28520,914
7115-7117,719Pipeline transport and services to transportActivity units2,6432,962
  Full-time equivalents13,01314,339
712Water transportActivity units320331
  Full-time equivalents6,0205,954
713Air transportActivity units548611
  Full-time equivalents9,1619,833
72CommunicationActivity units2,6643,070
  Full-time equivalents22,53021,801
811BankingActivity units1,8301,804
  Full-time equivalents23,91324,128
812Other financingActivity units678627
  Full-time equivalents2,5742,454
8131,82301,814 excl 81492Other financingActivity units2,2392,255
  Full-time equivalents8,4068,695
81330Holder investingActivity units5,3326,024
  Full-time equivalents2,8973,641
8211Life insuranceActivity units246212
  Full-time equivalents3,5303,684
8212Medical insuranceActivity units147136
  Full-time equivalents784775
8213General insuranceActivity units384398
  Full-time equivalents4,4824,671
822Superannuation and mutual fund operationActivity units2,1031,740
  Full-time equivalents6640
82302Insurance commission agentsActivity units511474
  Full-time equivalents831766
8311 (excl 83113)Real estateActivity units1,9462,030
  Full-time equivalents7,4416,924
83113,8312 (excl 83121)Real estate commission agentsActivity units3,3514,756
  Full-time equivalents3,8265,019
83123,83124Commercial property leasing and property developersActivity units1,6672,530
  Full-time equivalents2,4483,611
832-834Other business servicesActivity units20,00123,446
  Full-time equivalents88,36196,875
9101Central government administrationActivity units2,3382,309
  Full-time equivalents64,57563,691
91020Local governmentActivity units1,1951,149
  Full-time equivalents14,08213,811
92Sanitary and cleaning servicesActivity units2,1572,321
  Full-time equivalents12,07712,742
931 (excl. 93105) 932EducationalActivity units6,9297,209
  Full-time equivalents95,36396,227
9331-9332Medical and dental health servicesActivity units7,2727,915
  Full-time equivalents74,33471641
9333Veterinary servicesActivity units566619
  Full-time equivalents2,2782,478
934 excl 93402, 93403Welfare servicesActivity units781781
  Full-time equivalents12,58513,037
94 excl 94141,94150,94209,94401 94402Recreation servicesActivity units4,1744,591
  Full-time equivalents20,51722,590
94141,94209Live entertainment and cultural servicesActivity units384402
  Full-time equivalents1,1531,309
94150Authors music composer etcActivity units711896
  Full-time equivalents9681,162
94401,94402Sporting and recreation clubs sports peopleActivity units7578
  Full-time equivalents103102
9511-9512,9519Repair servicesActivity units1,2581,365
  Full-time equivalents3,3083,463
9513Repair of motor vehicles and motor cyclesActivity units2,9173,121
  Full-time equivalents9,68410,368
952Dry cleaning and laundry servicesActivity units476475
  Full-time equivalents3,0303,160
953Domestic servicesActivity units2525
  Full-time equivalents287412
959Personal servicesActivity units3,5633,913
  Full-time equivalents10,55111,186
TotalActivity units199,082220,611 
  Full-time equivalents1,204,6981,262,973

Table 17.26 is also based on the Business Directory Update and shows full-time equivalent persons engaged by region as at February 1995. The table is not a measure of total employment. Farms are not included, nor are some other businesses, namely: property owners', nonprofit organisations; and non-trading and dormant companies, religious organisations and sporting and recreational clubs.

Table 17.26. REGIONAL BUSINESS PATTERNS, 1995*

Regional councilAgricultural 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

* Generally defined as those enterprises with greater than $30,000 annual GST expenses or sales, or in a GST-exempt industry.

Full-time equivalent (FTE) persons engaged equal the sum of the full-time persons engaged plus half the part-time persons engaged.

full-time equivalent persons engaged†
Northland1,7481935,6773762,6858,6532,0672,9849,36633,747
Auckland2,98044590,7131,90427,019108,14631,76166,13988,544417,649
Waikato4,6261,22120,5071,5008,42924,3145,57310,23029,127105,526
Bay of Plenty3,7508712,2314715,61316,3514,0356,06416,54965,149
Gisborne995301,9671369932,8696531,1053,64612,393
Hawke's Bay1,6666210,5584203,04710,3332,1953,73811,40743,425
Taranaki7029738,1506292,6497,1881,8272,9347,95833,007
Manawatu2,28011213,8966374,94916,7693,2855,67425,50373,102
Wellington1,63013922,3441,4569,80335,76211,44934,06253,354169,998
North Island Total20,3763,261186,0407,52665,184230,38362,845132,928245,453953,994
Tasman785451,8461629742,2404865911,7628,889
Nelson1,01733,476581,0813,7831,2051,5834,14516,349
Marlborough1,069672,6571149582,8557498823,26512,614
West Coast6737021,5151497822,6897815642,58110,434
Canterbury2,86516737,2491,30511,56440,15611,35916,47344,162165,298
Otago1,79824011,5435364,62715,5753,5805,64118,51162,050
Southland1,8892258,4383122,4787,6271,9942,6077,45833,025
South Island Total10,0951,44866,7222,63422,46374,92420,15228,34081,882308,65
Extra County Islands and Shipping.159-5221036101340321
Total New Zealand30,6294,708252,81310,16287,657305,34383,007161,281327,3751,262,973

Contributors

  • 17.1 Professor Gary Hawke, Institute of Policy Studies, VUW.

  • 17.2-6 Statistics New Zealand.

Further information

Balance of Payments

Balance of Payments, Concepts, Sources and Methods 1991. Department of Statistics, 1992

Balance of Payments Manual. International Monetary Fund, 4th ed, 1977.

Balance of Payments Manual. International Monetary Fund, 5th ed, 1993.

Overseas Debt

External Debt: Definition, Statistical Coverage and Methodology. The World Bank et al, 1988.

Debt Stocks, Debt Flows and the Balance of Payments. Organisation for Economic Co-Operation and Development, 1994.

International Investment Position

New Zealand's International Investment Position 1994-95. Statistics New Zealand, 1996.

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. Statistics New Zealand (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.

Inter-industry Update 1991. Statistics New Zealand.

Balance of payments

Balance of Payments, Concepts, Sources and Methods 1991. Department of Statistics, 1992.

Balance of Payments Manual. International Monetary Fund, 4th ed, 1977.

Balance of Payments Manual. International Monetary Fund, 5th ed, 1993.

Overseas debt

External Debt: Definition Statistical Cover and Methodology. The World Bank et al, 1988.

International investment position

New Zealand's International Investment Position 1992/93. Statistics New Zealand, 1994.

Business statistics

New Zealand Business Activity Statistics. Statistics New Zealand (annual).

New Zealand Standard Industrial Classification. Department of Statistics, 1988.

Chapter 18. Agriculture

130-kg ostriches about to outstrip traditional farming livestock in earning capacity.

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 and goats.

Cereal crops are grown 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.

18.1 Current situation and trends

Agricultural produce makes up a large proportion of New Zealand's merchandise exports. Uniquely, amongst the developed countries, New Zealand farmers are almost totally exposed to world market forces. They receive no subsidies from government and have to compete with subsidised production from other producing countries. However, the GATT Uruguay Round Agriculture Agreement began to take effect from July 1995. This agreement imposes progressive reductions on the subsidies that other countries can give to agricultural production and exports. It will also increase access opportunities for New Zealand exports into overseas markets.

New Zealand's milk production for the year ended May 1995 was the second highest on record at 732,000 tonnes of milk solids. The weighted average payout received by dairy farmers for the season was $3.39/kg of milk solids, an increase of 2.1 percent from the previous season's level. Production for the season ending 30 May 1996 is expected to exceed record levels. Dairy cow numbers continue to increase, rising by around 4 percent in the year to June 1995. They now stand at around 3.99 million.

Total sheep numbers continued to fall to 48.1 million at 30 June 1995, reflecting lower prices for sheepmeat. Sheepmeat production rose by 1.5 percent to just over 530,000 tonnes in the year to 30 September 1995. Wool production remained stable at 213,300 tonnes.

The New Zealand beef cattle herd is continuing to expand, and reached 5.1 million head on 30 June 1995—an increase of 3.4 percent over the previous year. Beef and veal production rose by 16 percent to 607,400 tonnes (carcass weight equivalent) in the year ending 30 September 1995.

Pipfruit sales showed strong growth with increased export sales reflecting an increase in plantings.

Table 18.1. FARMLAND USE BY REGIONAL COUNCIL AREA AS AT 30 JUNE 1994*

Regional CouncilNumber of farmsGrazing, arable, fodder and fallow landLand in horticulturePlantations of exotic timberOther landTotal land
*Change in survey population definition introduced in 1994. Figures may not equate to the total due to rounding.
hectares
Northland RC5,674615,9555,817147,50697,887867,164
Auckland RC5,220243,3289,54341,71229,607324,189
Waikato RC12,2281,290,38710,049271,615171,4201,743,471
Bay of Plenty RC5,661285,39913,773209,072114,056622,302
Gisborne RC1,432531,6677,55289,41869,984698,621
Hawke's Bay RC3,850777,67316,151178,82777,9521,050,603
Taranaki RC4,151431,9071,16115,73758,063506,868
Manawatu-Wanganui RC6,7651,419,8167,33883,568110,2021,620,923
Wellington RC2,220430,9811,92841,18042,241516,331
          Total, North Island47,2016,027,11273,3121,078,635771,4137,950,473
Tasman DC1,882138,6487,04383,56848,490277,748
Nelson CC1256,143895,8192,84214,893
Marlborough DC1,375531,1585,53755,945116,289708,929
West Coast RC881174,62631227,942167,742370,622
Canterbury RC9,3883,141,84912,15587,590175,4283,417,023
Otago RC3,9922,325,9964,29890,877135,1332,556,304
Southland RC4,5751,141,2381,03657,60456,5251,256,402
          Total, South Island22,2187,459,65730,470409,345702,4498,601,921
Chatham Islands County4148,92961035,53754,575
          Total New Zealand69,46013,535,699103,7891,488,0831,479,39916,606,969

FARMLAND By land use

Table 18.2. LAND USE BY FARM TYPE, AS AT 30 JUNE 1994*

Farm typeNumber of farmsGrassland lucerne tussock or danthoniaLand in horticulturePlantations of exotic timberOther landTotal land
*Change in survey population definition introduced in 1994. Figures may not equate to the total due to rounding.
hectares
Dairy farming—factory supply15,0391,457,2831,2549,64162,1801,530,358
Sheep farming7,9453,560,8061,0819,164136,6713,707,722
Beef farming8,272857,8567642,891120,237981,749
Cropping63574,56893844255276,500
Dairy farming with other1,804266,9451,2217,20722,902298,274
Sheep farming with beef4,6883,380,68351917,740276,0543,674,996
Sheep farming with cropping536112,45696544733113,829
Sheep farming with other1,773819,08948117,74745,577882,893
Beef farming with sheep2,433799,9042894,474119,440924,107
Beef farming with other1,785172,8296766,09515,645195,244
Cropping with sheep41982,70960232383084,464
Cropping with other27934,48293924832835,997
Pig farming72229,65417955794631,335
Horse breeding and training90920,382137381,60122,158
Deer farming2,101200,1911461,96711,346213,649
Goat farming984,4321724624,911
Small animal breeding342,619211232,655
Mixed livestock3,6901,256,1323,17748,638103,9201,411,867
Broiler poultry farming712,46311342132,721
Other poultry farming1552,30396342012,634
Citrus orchards5422,5242,3821404665,511
Pipfruit orchards1,71910,77918,91678294031,417
Stonefruit orchards2682,1772,137571554,526
Kiwifruit orchards2,02610,21812,6377661,69525,317
Berry fruit growing3195,1981,8871955217,801
Grape growing4963,2736,68326354410,762
Other fruit nec9169,7034,8107381,54916,800
Vegetable growing incl. tomatoes2,80766,39231,9319752,760102,058
Mushroom growing218537392921,227
Tobacco and hop growing381,3415901466052,682
Flower growing1,3695,2661,9802488098,302
Plant nurseries4752,5811,733863014,701
Beekeeping1831217-31158
Plantations2,682150,6805541,352,938491,9531,996,125
Other farming42863,5612,7902,9431,80771,102
Idle land1,78363,2512,057-55,113120,421
          Total, all farm types69,46013,535,699103,7891,488,0821,479,39916,606,969

Table 18.3. FARM EMPLOYMENT, AS AT 28 FEBRUARY 1994*

Farm typeWorking owners, leaseholders and sharemilkersUnpaid family membersPaid permanent employees 
Full-timePart-timeFull-timePart-timeFull-timePart-timeCasual workers

* Change in survey population definition introduced in 1994.

Full-time = 30 hours or more per week.

Part-time = fewer than 30 hours per week.

§ Other farming includes all remaining farm types.

Note: Caution should be used when interpreting this data. 1994 employment data is released with a caveat because of under statement for some entries.

Dairy farming—factory supply18,7744,2891,9533,3696,4121,1001,374
Sheep farming6,2412,1741,1092,2441,4915441,242
Beef farming3,5983,3278052,168736249402
Cropping3861477411817454107
Dairy farming with other1,758677256587571125311
Sheep farming with beef4,1271,1956251,2052,6555591,441
Sheep farming with cropping482148741701353946
Sheep farming with other1,483501297592513150321
Beef farming with sheep1,723699315629876204562
Beef farming with other93978622665525469143
Cropping with sheep4097582981754883
Cropping with other207734775892346
Pig farming520289822264369050
Deer farming83093520971924090139
Goat farming40465271163
Mixed livestock2,9221,1385701,2151,572363800
Horticulture6,8483,8871,2262,6636,8052,26813,551
Plantations4006051215301,252105489
Other farming nec§1,5591,0112725911,169599660
          Total, all farm types53,24622,0028,34817,88125,5666,68521,770

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 three to four years, with total fertiliser application increasing by 720,000 tonnes from 1990 to 1994. Following the removal of farming subsidies in 1984 farmers were cautious about extra expenditure on fertiliser. The amount of fertiliser being sold now is a return to pre-1984 levels.

Table 18.4. MANUFACTURED FERTILISER AND OTHER FERTILISER SOLD BY FERTILISER WORKS

Year ended 30 JuneSuperphosphatic fertiliserOther fertiliser including phosphatic rockTotal
Source: Ministry of Agriculture.
tonnes
19881,092,53099,3461,191,876
19891,215,288157,0181,372,306
19901,309,602194,4461,504,048
19911,095,457217,5531,313,010
19921,216,531421,6991,638,230
19931,493,108456,0961,949,204
19941,629,889P593,957P2,223,846P
19951,401,347P594,808P1,996,155P

Agricultural production indicators

Statistics New Zealand's Agriculture Production Account is a statistical series that provides a summary of the activities of all market-oriented establishments classified under agricultural and livestock production or agricultural services (major groups 111 and 112 of the New Zealand Standard Industrial Classification). All types of farms are included, together with agricultural services operated by contractors, such as topdressing, weed-spraying, harvesting, threshing, shearing, and scrub-cutting. Other services included are herd testing and artificial insemination. Farms operated as trading enterprises by government departments and other organisations are included.

The ‘account’ includes all income derived from the activities of the establishments covered, including their characteristic farming activities, and also their ‘other’ productive activities. However, investment income (such as dividends and interest) accruing to the proprietors of farming establishments is excluded.

Tables 18.5 and 18.6 show the consumption and production of major categories of products for the agricultural sector over recent years.

Table 18.5. AGRICULTURE PRODUCTION ACCOUNT: ANALYSIS OF INTERMEDIATE CONSUMPTION*

ItemYear ended March
1990-911991-921992-93

* Some figures have been revised.

This series does not measure total capitalised development.

 $(million)
Purchase of livestock592625812
Feed and grazing368374502
Animal health and breeding266275337
Weed and pest control147159199
Fertiliser, lime and seeds585663870
Fuel and power346354388
Repairs and maintenance695704815
Freight152150166
Other (not elsewhere classified)1,4481,5011,675
 4,5994,8065,763
Less capitalised development†201915
          Total intermediate consumption4,5794,7875,748

Table 18.6. GROSS AGRICULTURAL PRODUCTION*

CommodityYear ended March
1990-911991-921992-93

*Some figures have been revised.

Non-farm income introduced July 1994 includes rental, income from farm-stays etc.

 $(million)
Wool832793737
Sheep8858451,037
Cattle1,3761,4431,559
Pigs126126134
Dairy products1,6412,2352,536
Poultry products208196207
Crops and seeds313314343
Fruit, nuts and oilseeds683833728
Vegetables414391450
Other horticultural products160178196
Agricultural services760807873
Other products nec255278346
Value of change in livestock   
     Sheep-52-62-54
     Cattle654849
     Pigs, deer and goats3913-25
Sales of live animals671701884
Non-farm income†112135135
          Gross output8,4889,27310,135

Farm price indexes

The Farm Expenses Price Index measures price changes of fixed inputs of goods and services to the farming industry. A selection of the published indexes is shown below. Capital expenditure and depreciation are not covered. (For price indexes of capital expenditure, refer to the Capital Goods Price Index in section 26.3).

Farm type indexes from the Farm Expenses Price Index are also used in the agricultural inputs of the Producers Price Index in section 26.2.

Table 18.7. FARM EXPENSES PRICE INDEX*

QuarterSheep and beef farmsDairy farmsHorticultural farmsCropping and other farmsAll farms
*All inputs excluding livestock. Prices used exclude GST. Base: December quarter 1992 (=1000).
1992-Dec10001000100010001000
1993-Mar10021001100210031002
Jun10041010100010071005
Sep1003101199010031003
Dec984984980993984
1994-Mar974974979988977
Jun972970977990-974
Sep980978984996982
Dec99710009921006998
1995-Mar1024103699910191022
Jun10321047100510221030
Sep10301047100210211028

Table 18.8. FARM EXPENSES PRICE INDEX—ALL FARMS*

Input typePercentage of base expenditurePrice index for quarter ended
1994 SepDec1995 MarJunSep
* Base: December quarter 1992 (=1000).
Administration4.910401049105710651067
Animal health and breeding4.110481054105910571071
Dairy shed expenses0.510001020102910291020
Electricity1.61024102910281039105
Feed, grazing, cultivation and harvesting7.610361039104310481055
Fertiliser, lime and seeds9.2976975974976961
Freight1.9965968964959966
Fuel3.8925927923924904
Insurance premiums1.7994991977964958
Rent and hire2.210801095111011191134
Repairs, maintenance, motor vehicle repairs10.310301039103710401044
Packaging costs3.5950946905910892
Shearing3.710191031103310331039
Weed and pest control2.910311036103510331036
Livestock purchases10.71216118510721019944
Sub-total excluding livestock57.910101015101410161016
Sub-total including livestock68.610421042102310161005
Local and central government rates and fees3.610161048104110411041
Interest rates17.3856915104610731065
Wages and salaries10.510201022102410291031
All inputs excluding livestock89.3982998102210301028
All inputs including livestock100.010071018102710281019

Agricultural organisations

New Zealand 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. 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. 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.

MAF Quality Management

MAF Quality Management is New Zealand's “front line” against exotic pests or diseases that would 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 Quality Management's structure will be examined in an independent review of activities and structures, scheduled to commence on 1 July 1996.

MAF Policy

MAF Policy provides policy advice and decision support to the Minister of Agriculture 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; Rabbit Calicivirus Disease, 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, livestock, plants and fisheries, eg, under WTO (GATT), OECD, FAO, etc; government to government liaison, eg, 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 programme; and facilitating implementation of policy.

MAF 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 was established during the 1992 science restructuring which saw the disestablishment of MAF Tech and the creation of a number of Crown Research Institutes. It was clearly signalled at that time that Agriculture New Zealand would eventually be sold. The sale of Agriculture New Zealand was completed in January 1995.

Corporate Group

MAF's Corporate Group provides the systems and structures essential to the efficient operation of MAF's business groups and head office units.

The group'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 Minister of Agriculture.

  • 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.

FARMLAND By type of farm

18.2 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 an increasing amount of dairying on the flat land of both coasts.

Livestock are rarely housed, but feeding of small quantities of supplements, such as hay and silage can occur, particularly in winter. Grass growth is seasonal, largely dependent on location and climatic fluctuations, but normally occurs for between 8 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.

Livestock numbers and types

Probably New Zealand's best known statistic is that it has more than 20 times as many sheep as people (actually now closer to 14 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.

Trends in livestock numbers are largely determined by world market prices for farm products, including meat, wool, dairy products and, more recently, venison and goat fibre.

Over the last 13 years the sheep population has declined from 70.3 million at June 1982 to stand at around 48.1 million at June 1995. The beef cattle population continued its slight increase of recent years to reach 5.1 million at June 1995. The number of dairy cattle increased to 3.99 million at June 1995.

Table 18.9. DISTRIBUTION OF LIVESTOCK, AS AT 30 JUNE 1994*

Regional CouncilDairy cattleBeef cattleSheepPigsDeerGoats
* Change in survey population definition introduced in 1994.
Northland RC356,561574,072814,1636,24518,14126,372
Auckland RC168,754213,739498,15221,14233,91614,056
Waikato RC1,437,630869,9393,606,34577,594161,99747,029
Bay of Plenty RC285,752164,806620,33715,16281,87324,618
Gisborne RC6,226351,3842,088,8703,22222,9556,706
Hawkes Bay RC31,707522,7674,264,0128,903118,30123,323
Taranaki RC599,083172,784966,75220,38719,0248,282
Manawatu-Wanganui RC308,022824,8817,458,21837,628128,67616,963
Wellington RC83,935212,6792,199,54520,39030,2327,283
          Total, North Island3,277,6703,907,05122,516,394210,673615,115174,632
Tasman DC49,09264,453424,8753,79735,8109,124
Nelson CC1,4121,89115,0992193433,193
Marlborough DC22,64874,456955,33821,09918,76410,596
West Coast RC79,25167,733216,5442,39625,9984,063
Canterbury RC212,492452,8329,747,488151,681258,98046,408
Otago RC82,173270,4227,635,96825,53191,41420,627
Southland RC114,378202,5387,850,7917,235184,51214,672
          Total, South Island561,4461,134,32526,846,103211,958615,821108,683
Chatham Islands County686,472103,557135173232
          Total New Zealand3,839,1845,047,84849,466,054422,7661,231,109283,547

A stranded half-tonne dairy cow soars over the Waipa River on the flight that saved her life.

Sheep. The most common 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 breeds as the coarse-woolled Border Leicester, suited to the wet conditions on many farms. A number of breeds that 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.

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 5,300 deer farms registered with Statistics New Zealand, and they hold over 1.2 million deer.

Goats. In the 1980s there was 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. Goat numbers at 30 June 1995 totalled about 283,500. Data shows approximately 64 percent were being farmed for mohair, cashmere and cashgora production, while about 8,500 goats were being used for milking. In 1995 around 216 tonnes of mohair (angora), 3 tonnes of cashgora and 8 tonnes of cashmere were produced.

Table 18.1. SHEEP CATEGORIES

As at 30 JuneBreeding ewes including hoggetsOther sheepTotal sheep

* Changes in survey population definition introduced in 1994.

Figures do not equate to the total due to the estimates for the components of livestock types being calculated independently from the estimates for the totals.

(000)
199042,09715,75557,852
199139,83315,32955,162
199238,39914,16952,568
199336,63813,66150,298
1994*35,75413,61849,466†

LIVESTOCK ON FARMS Total numbers

Table 18.11. SIZE OF SHEEP FLOCKS*

Size of flockNumber of farms
19901991199219931994

* As at 30 June.

Change in survey population definition introduced in 1994.

1—9911,82311,96011,26211,9938,025
100-1992,4002,5882,4922,6012,197
200-4993,9463,8843,8734,0063,363
500-9993,4773,8843,2593,2523,016
1,000-1,4993,1913,1722,9032,7292,818
1,500-1,9993,0572,9632,7622,6872,783
2,000-2,4992,9072,6492,4582,3622,256
2,500-4,9995,8295,5495,2295,0165,128
5,000-9,9991,6751,5811,5171,4461,414
10,000 and over431439430394379
Total flocks38,73638,08036,18536,48631,379
Average flock size1,4931,4491,4531,3791,576

Table 18.12. CATTLE CATEGORIES

CategoryAs at 30 June
1993**1994

* Some figures have been revised.

Figures do not equate to the total due to the estimates for the components of livestock types being calculated independently from the estimates for the totals. Note: In 1994 a change in survey population definition was introduced.

Dairy cows and heifers in milk or calf2,808,0302,994,022
Dairy cows and heifers not in milk or calf86,737120,070
Dairy heifer yearlings and calves (including bobby)625,731687,693
Dairy bulls for breeding29,64231,430
          Total, dairy3,550,1403,839,184
Beef cows and heifers bred from1,462,7871,576,588
Beef cows and heifers not bred from461,570473,262
Bulls—all ages754,031779,091
Other beef cattle2,079,5742,204,025
          Total, beef cattle4,757,9625,047,848
          Total cattle8,308,1028,887,032

18.3 Meat

Meat industry products are New Zealand's largest export income earner, accounting for around one dollar in every six earned overseas. New Zealand's main meat exports are lamb, mutton and beef. For the year ended September 1995, 83 percent of lamb, 64 percent of mutton and 81 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 product. The domestic market absorbs around 100 percent of the pigmeat and poultry produced in New Zealand.

MEAT PRODUCTION Total

Table 18.13. MEAT PRODUCTION*

CarcassesYear ended September
1991199219931994R1995P

* Inspected meat production at meat export works and abattoirs.

Source: Ministry of Agriculture.

tonnes(000)
Beef519523558523606
Veal1314141423
Mutton145158134125144
Lamb383400352398389
Pigmeat4347494951
          Total1,1031,1421,1071,1091,213

Table 18.14. LIVESTOCK SLAUGHTER AT MEAT EXPORT WORKS AND ABATTOIRS

AnimalsYear ended September
19911992199319941995P
Source: Ministry of Agriculture.
head of stock (000)
Lambs27,27428,07323,38026,21126,684
Sheep7,2337,8456,6935,8966,854
Adult cattle2,1562,1362,2632,0452,414
Calves and vealers7477898028251,250
Pigs79808818823848

Table 18.15. EXPORT MEAT PRODUCTION

Type of meatYear ended September
19901991199219931994

* Figures may not add due to rounding.

Source: Meat and Wool Boards' Economic Service.

tonnes (000) shipping weight
Lamb—carcasses125.2123.9135.779.2108.6
—other135.5162.2176.0184.9194.2
Mutton—carcasses52.046.754.922.921.1
—other25.229.928.739.838.1
Beef—manufacturing185.2207.2219.0242.0216.8
Beef—other52.974.075.484.683.7
Veal8.47.27.87.96.7
Goat1.72.32.01.81.6
Variety meats36.931.237.340.841.9
Inedible meat and offal17.019.316.917.318.0
          Total*640.0703.9753.6721.3730.7

MEAT PRODUCTION Export

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.

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 carcasses are derived from milk-fed bovine calves generally under two weeks of age.

Soccer star and Halal slaughterman sharpening up his act.

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 which are currently under review.

Schedule prices

Some 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.

Season average net schedules for the last five years are given in table 18.16. The schedule prices quoted are inclusive of pelt, slipe wool and hide payments.

Table 18.16. AVERAGE NET SCHEDULE PRICES

Classification1989-901990-911991-921992-931993-94

*Includes skin and one kilogram wool pull.

Prior to 1988-89 steer prices are for PI class.

Source: Meat and Wool Boards' Economic Service.

Lamb ($/head)*
PL 9.1-13.2 kg26.2021.9921.1831.9635.23
PM 13.3-17.0 kg35.9328.1929.1941.0841.32
YL 9.1-13.2 kg24.5321.3423.3431.7934.01
Mutton ($/head)*
MX 22 kg and under18.8611.7213.1626.3426.88
ML 22 kg and under20.4013.3414.6929.1528.48
Beef (cents/kg)
P2 Steer 245.5-270 kg†274.2x261.6x272.1300.5270.9
K2 Steer 245.5-270 kg†268.2x257.3x268.1294.6270.3
M Cow 145-170 kg227.4x216.7x211.5221.8200.1
Bull 245.5-270 kg283.7x272.6x282.0291.2259.5

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 7.8 percent of global lamb and mutton production.

In the 1994-95 season decreases in average slaughter weights were offset by an increase in slaughterings of cattle, sheep and lamb to give a slight increase in total meat production.

In the year to September 1995, beef and veal production increased by 91,228 tonnes to 629,228 tonnes.

New Zealand Meat Producers Board

The New Zealand Meat Board Producers Board exists primarily to safeguard and further the interests of New Zealand's 36,100 meat producers. The board does not buy or sell meat. Funded by producers through a levy on stock slaughtered, the board works to ensure New Zealand meat receives maximum returns and secure access to world markets. It is also involved in international promotion, marketing development and information, quality control, negotiation of freight services and provides market support through offices in Bahrain, Brussels, London, Hong Kong, Tokyo, Washington and Seoul.

The Meat Board funds a number of organisations including the Meat Research and Development Council, the Beef Council, the Sheep Council and provides some funding for the Beef and Lamb Marketing Bureau.

Its levy income totalled $26.3 million in the year ended September 1995.

Table 18.17. MEAT BOARD LEVIES, 1 OCTOBER 1994

Class of meatCents per head*

* Excluding GST.

Source: Meat and Wool Boards' Economic Service.

 
Lambs, other sheep and goats47
Bobby calves24
Cows, vealers and other adult cattle420

Export marketing

At September 1995 New Zealand meat was sold overseas by 57 companies licensed by the Meat Board. New Zealand is a major exporter of sheepmeat, accounting for 64 percent of the world export trade. It is a smaller player in the global market for beef, accounting for 6.5 percent of all world beef exports.

New Zealand's major meat markets include the United Kingdom, Germany, France, Belgium/Luxembourg, Japan and Saudi Arabia for lamb; the United Kingdom, Germany, South Korea and France for mutton; and the United States, Canada, Japan, Taiwan and South Korea for beef. In the 1994-95 season 50 percent of all sheepmeat exports went to the European Union. The United States alone accounted for 57 percent of all beef exports in 1994-95. All export figures are in shipped weight.

Sheepmeat. During the 1994-95 season lamb exports totalled 292,397 tonnes, an increase of 6.6 percent on the 1993-94 season. Exports to the United Kingdom increased from 83,383 tonnes in 1993-94 to 99,925 tonnes in 1994-95. Exports to other European Union markets also increased by 2,952 tonnes, or 3.7 percent.

Mutton exports decreased by 6.7 percent to 62,323 tonnes. Shipments to the European Union decreased by 11.7 percent to 25,113 tonnes. The United Kingdom, New Zealand's largest single market for mutton, took 14,137 tonnes. All export figures are in shipped weight.

Under the GATT Uruguay Round agreement New Zealand's lamb, mutton and goat exports to the European Union are limited by a tariff rate quota of 225,000 tonnes.

Beef and veal. New Zealand's biggest market for beef and veal in 1994-95 was the United States, with shipments totalling 194,010 tonnes. Canada was the next largest market, with 41,924 tonnes. Exports to South Korea, the third largest beef market, increased to 28,392 tonnes. All export figures are in shipped weight.

Imports of beef, veal, mutton and goatmeat into the United States are limited by a tariff rate quota of 213,402 tonnes which replaced the voluntary restraint agreements on 1 January, 1995.

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 18.18 are an indicative measure of world prices for New Zealand lamb.

MEAT CONSUMPTION Per person

Table 18.18. 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: Meat and Wool Boards' Economic Service.
Pence a kilogram
1990153.2149.9145.5153.2147.7
1991125.7123.5116.9125.7121.3
1992138.9133.4124.6138.9132.3
1993173.1169.8158.7173.1169.8
1994R194.0191.8178.6194.0191.8
1995156.5159.8158.7154.3158.7

Table 18.19 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 18.19. UNITED STATES CIF BEEF PRICES

End of last week in MarchManufacturing bullManufacturing cow
Source: Meat and Wool Boards' Economic Service.
US cents a kilogram
1990277.8260.2
1991280.0262.4
1992270.1255.8
1993264.6253.5
1994277.2272.8
1995200.6197.3

18.4 Wool

New Zealand sheep are largely dual purpose wool/meat animals and their wool is predominantly strong. New Zealand is the world's largest producer of crossbred (strong wool), contributing 25 percent of the world total and two and a half times as much as either the CIS or China, the next most significant producers of strong wool.

This type of wool is used mainly in interior textiles such as carpets, upholstery, furnishings, bedding and rugs. It is also used for handknitting yarn, in knitwear and in blankets.

In contrast, wool produced in Australia is mainly fine wool for apparel. Australia is the world's largest producer of wool overall.

It is estimated that world-wide 34 percent of New Zealand wool is used in machine-made carpets, 12 percent in handknotted and hand-tufted carpets, 44 percent in apparel, and 10 percent in other uses, primarily upholstery and bedding. Uses vary markedly from country to country.

Wool production. Although New Zealand's sheep flock ranks fourth largest in the world, the country's total wool fibre production is second only to Australia on a clean mass basis. This is due to the high clip yield per head and lower quantities of grease and other contaminants in New Zealand wool.

Table 18.2. 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: Wools of New Zealand.

 millionkgtonnes (000)cents/kg
198960.65.1233615
199057.95.3227422
199155.25.4221437
199252.64.9193433
199450.35.6214414
199549.55.9213554

Wools of New Zealand

Wools of New Zealand (formerly 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 6 percent levy on gross wool receipts ($64.4 million in 1994-95) and interest on investments ($5 million in 1994-95). The principal expenditure of the board is wool promotion and research ($46.9 million in 1994-95).

Temuka farmer-inventor with woolovered lambs.

Grower services. Board field staff work with growers to improve wool production, raise the quality of the wool clip, and help growers maximise their returns. In 1994-95, training courses were provided for more than 1,020 shearers and 68 woolhandling and woolclassing courses were held. Education and extension programmes were also held on wool production, harvesting and packaging.

Research and development. The board has a comprehensive research, development and technology transfer programme and in 1995-96 will invest about $5 million. It funds and directs research to help ensure the future of New Zealand wool by increasing demand for wool fibre through improved products and processes. Priorities for on-farm and post-harvest research are established annually, taking into account market signals and woolgrowers' needs. Research proposals are invited from New Zealand and overseas groups interested in working with the board on the development of new and improved products and processes using New Zealand wool.

The Wool Research Organisation of New Zealand (WRONZ) receives a large proportion of the board's research funding. 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.

Markets for wool

The most common way of selling wool in New Zealand is by open auction; 56 percent was sold this way in 1994-95. 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 (30 percent of sales in 1994-95).

Table 18.21. WOOL SOLD AT AUCTION

Season ended JuneGreasy and scoured new season wool (clean equivalent)Average clean price per kilogramTotal sale value
Source: Wools of New Zealand.
 tonnes (000)cents$(million)
1990154614.51,009.7
1991153422660.6
1992140437623.2
1993116433517.3
1994125414568.3
1995119554656.5

Around 90 percent of the New Zealand clip leaves the country in a greasy, scoured, or slipe form. Eighty percent of exports are scoured. Of the 10 percent of the clip processed in New Zealand, roughly half is exported in product form.

It is important to distinguish between initial and final destinations of New Zealand wool exports. Initial destinations have changed substantially over the years, and there are sometimes very large changes from year to year. Export destinations for wool fibre are shown in table 18.22. During 1994-95 the largest importers were China and Hong Kong, the United Kingdom, Germany, Japan and Australia.

With the exception of China and the CIS, 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.

WOOL EXPORTS By destination

Table 18.22. EXPORT DESTINATIONS OF NEW ZEALAND WOOL FIBRE

Country1989-901990-911991-921992-931993-941994-95
Source: Wools of New Zealand.
tonnes
China15,14719,05147,69236,51660,26253,344
Nepal5,9278,67716,59917,71111,9076,696
United Kingdom17,25218,27519,05616,31422,95619,252
Japan21,43924,60419,70615,50314,91913,259
Belgium14,24612,09616,16711,48112,90111,199
India7,91416,10010,40611,19717,2287,412
Germany11,79011,19812,8089,70612,56314,141
Hong Kong3,1603,1079,6598,81911,93220,091
United States9,9337,4769,1758,3988,4499,942
Australia9,0758,4188,6107,68210,76112,950
CIS26,6647,8224,6661,6092,095-
Other43,40344,84543,33335,54140,05944,210

Net domestic consumption of wool in New Zealand is among the highest in the world on a per head basis. In 1994 this was estimated at 4.0 kg per head compared with the 1993 figures of 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.

Wool product exports. The most important wool product exports from New Zealand are floor coverings and yarns, particularly carpet yarns. Carpets and rugs accounted for 29 percent of wool product export earnings in 1994-95. Carpet yarn accounted for 20 percent and other yarn for 5 percent. 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 10 percent to $262 million in 1994-95. These exports are summarised in table 18.23.

Table 18.23. WOOL PRODUCT EXPORT EARNINGS*

Product1989-901990-911992-931993-941994-95

* Year ended 30 June.

Source: Wools of New Zealand

$(million) fob
Carpets/rugs81.165.166.067.375.4
Wool yarn92.775.471.459.862.6
Wool apparel7.97.819.017.030.1
Skeepskin final products...21.930.632.246.8
Sheepskins—raw and processed41.920.636.140.934.9
All other17.814.421.320.221.8
Total241.4205.2244.4237.4261.6

18.5 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 90-95 percent of all milk produced.

There are four major product groupings manufactured from liquid whole milk by dairy factories in New Zealand: milk powders such as skim-milk powder (SMP), whole-milk powder (WMP), and buttermilk powder (BMP); cream products, such as butter, anhydrous milkfat (AMF), and ghee; cheese; and protein products such as casein and caseinates.

Liquid whole milk can be broken down into three chief components: milkfat, solids-nonfat (protein), and water. Skim-milk powder is made from skim milk after the cream (milkfat) has been separated from the liquid whole milk. Whole-milk powder is manufactured directly from the liquid whole milk, without separating of the cream. Buttermilk powder is made from buttermilk, a by-product of the butter manufacturing process. Most of the butter produced is of a ‘sweet cream’ type, and anhydrous milkfat and ghee are further refinements of butter. The predominant cheese variety manufactured in New Zealand is cheddar or cheddar types, although the manufacture of speciality cheese types has recently shown considerable growth. The final product grouping, milk proteins, are derived from the by-products of skim milk and also from the by-products of other dairy product manufacture such as cheese.

Dairy organisations

There are presently 15 co-operative dairy companies, which operate around 30 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.

Table 18.24. MILK PRODUCTION AND UTILISATION

Product1988-89*1989-901990-911991-921992-931993-941994-95

* New series, includes milk sold for processing only.

Source: New Zealand Dairy Board.

million litres
Production
Total milk production6,9697,3027,5097,8718,0509,0038,997
Utilisation
Milk sent to dairy factories6,5336,8687,0787,4547,6298,6038,633

Table 18.25. DAIRY FACTORY PRODUCTION

Product1990-911991-921992-931993-941994-95
Source: New Zealand Dairy Board.
tonnes
Creamery butter216,291218,351206,606223,182213,329
Anhydrous milkfat34,59043,30245,66148,90452,004
Frozen cream6,080-6,2788,6977,863
Cheese124,773137,405144,521193,348197,370
Whole-milk powder235,383250,105279,179306,448312,287
Infant food/nutritional products16,09424,56328,77826,32529,607
Skim-milk powder147,413136,037126,545140,895143,775
Buttermilk powder24,49623,40223,49626,62927,230
Casein products65,62274,19474,21679,45470,311
Lactose22,52025,60326,22229,84714,673
Whey powders11,88213,70813,97618,69819,005

The companies produce nearly all dairy products manufactured in New Zealand. On an annual basis the companies convert approximately 8.9 billion litres of milk into more than one million tonnes of dairy products, of which around 900,000 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.

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 more than 80 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.

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 Union (EU); 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.

The New Zealand dairy industry has been working to diversify its markets and product range for many years. Today, major markets vary for different products. Britain and the EU remain New Zealand's most valuable market for butter.

The primary markets for casein and cheese are the United States, Japan, and the EU. New Zealand is the world's largest exporter of casein and caseinate products and is also moving forward in its range of other sophisticated and 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.

Export markets 1995. In 1995 there was a continuation of the 1994 trend of increasing dairy product prices. This continued until mid year when prices stabilised. The increases applied particularly to milk powder, butter and to a lesser extent to cheese.

DAIRY PRODUCTS* Total sales by region

A major factor in improving prices was the continued low stocks of major exporters such as the EU and USA. Another factor was the progressive reduction in export subsidies as required by the Uruguay Round.

1995 was the first year the Uruguay Round commitments were implemented. This brought benefits to New Zealand in the imposition of limits on export subsidies and the opening up of new market opportunities. A major gain was the increase in exports of butter to the EU from 51,830 tonnes in 1994 to 76,667 tonnes in 1995. Other advantages include increased access to USA, Canada, the EU for other products and Korea.

Problems of political and economic stability continued to affect dairy markets in such areas as Algeria, Venezuela, the former Soviet Union and Mexico.

Dairy product exports continued their expansion into new markets. An example is that a consumer market for butter is now being developed in Russia. There was also the development of new products. The proportion of product sold in a consumer form has continued to rise.

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 seven seasons are given in table 18.26.

Table 18.26. PRICES FOR MILKFAT AND PROTEIN

Season ended 31 MayMilkfat componentProtein componentMilk solids
Source: New Zealand Dairy Board.
cents per kg
1989264.00356.00304
1990269.28413.80331
1991164.24275.40312
1992209.69349.49299
1993253.57422.62325
1994198.56413.66290
1995194.82442.79300

18.6 Pigs, poultry and bees

Pigs

Pig production has steadily increased in recent years, both in terms of the number of pigs slaughtered and tonnage of pigmeat produced.

For the year ending September 1995, 848,484 pigs were slaughtered, an increase of 25,445 over the previous year. The tonnage of domestic pigmeat produced has increased to 49,177 tonnes, an increase of 610 tonnes over the previous year. During the same period New Zealand imported 4,508 tonnes of pork products which, combined with domestic production resulted in consumption of 15.7 kilograms per head which compares with 15.2 kilograms per head for the previous year. This compares with 1994 Australian consumption of 19.2 kilograms per head, United States 30.0 kilograms and the United Kingdom 23.0 kilograms.

The South Island produces slightly over 50 percent of New Zealand's total pigmeat production and this has grown substantially over the last 10 years, mainly due to the industry's close proximity to the main grain producing areas in Canterbury.

Table 18.27. PIGS

At 30 JuneBreeding sows and mated giltsOther pigs of all ages (including boars)Total pigs

* A shortened Agricultural Census was undertaken in these years.

Change in survey population definition introduced in 1994.

198951,448359,886411,334
199050,990343,711394,701
1991*....407,306
199251,324359,824411,148
1993*....395,117
1994†58,065364,701422,766

New Zealand Pork Industry Board. The board is a statutory body which operates under the Pork Industry Board Act 1982. However, the industry has had an organisation since 1937, when it became one of the first farming industries to form a national organisation. Board income is sourced from a compulsory levy on all pigs slaughtered at licensed premises. The board currently comprises eight members, five of whom are elected by producers and three who are appointed by the Minister of Agriculture.

The mission of the New Zealand Pork Industry Board is, “to secure for the New Zealand producer, a profitable premium position for pork products in the food business.”

Free ranging hens in a specially constructed barn-like building near Masterton—a new generation of cage-free poultry farms.

To achieve this the board aims to extend markets, conduct research and development into pig production and pork products, encourage efficient practice in pig rearing and the handling of pork products, and to collect and make available market information.

The board is responsible for maintaining and improving the quality of stock produced in New Zealand. It does this through its subsidiary company the National Pig Breeding Company (NZ) Ltd.

Technology transfer and research and development activities are carried out on behalf of the board by the Monogastric Research Centre at Massey University. Technology transfer is achieved by means of seminars and workshops for farmers and others involved in the industry. The board funds research into pig production and into a number of environmental issues, especially the land application of piggery effluents.

“Pig Farming”, its Code of Practice, sets out guidelines for the establishment and management of pig farms to ensure the environmental effects are minimised. The board's Environmental Taskforce meets regularly with regional and district councils to ensure that the pig farmers' point of view is represented. The board is particularly concerned about the current requirements in the Resource Management Act for “factory farming” which is not defined, and which if imposed on pig farming by the local authorities will result in unrealistic requirements being placed on the industry. The board is currently seeking to remove the “factory farming” determination in the Resource Management Act.

A Total Quality Management culture is being developed throughout the industry, using the PQIP (Pork Quality Improvement Process) programme based on the HACCP (Hazard Analysis Critical Control Points). PQIP accreditation in all sectors of the industry is the ultimate objective and so far 35 percent of the killing capacity in New Zealand has achieved the PQIP accreditation.

The board continues with its active marketing of the Trim Pork and Traditional Pork brands.

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 21 kilograms of chicken per capita and another 2 kilograms of turkey and other poultry. A factor towards this increase is that chicken is now in real terms half the price per kilogram of what it was in 1972.

Chicken's share of the total market-place has increased from 5.6 percent in 1975 to around 21 percent in 1994. 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.

A major factor in the growth of the industry has been the advent of new product lines. Over the next five years, 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 three main companies: Tegel Foods Ltd, Ingham Enterprises Limited and P H van den Brink Limited.

Inspecting bees for foulbrood disease.

Table 18.28. CHICKEN PRODUCTION

YearBirdsDressed weightFreshFrozen
Source: Poultry Industry Association of NZ Inc.
 numbertonnespercent
198637,709,00046,02746.153.9
198738,925,00047,77747.852.2
198842,146,00052,83549.250.8
198945,583,00058,73251.148.9
199043,469,00055,37955.244.8
199145,891,00059,03653.546.5
199248,187,00062,79255.045.0
199351,006,000R69,570R52.247.8
199455,844,000R76,811R58.6R41.4R
1995P63,000,00086,94059.041.0

Eggs. The late 1980s saw the abolition 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 around 250 in 1995, compared with 2,500, 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 (Trifolium repens) is still the principal type, a number of other New Zealand native honey sources have wide national and international consumer appeal. Examples are rewarewa (Knightia excelsa), tawari (Ixerba brexiodides) and ling heather (Caluna vulgaris) from the North Island. South Island sources include rata (Meterosideros robusta), blue borage (Echium vulgare) and thyme (Thymus vulgaris). As well, honeydew (a non-flora source of honey) is produced from South Island beech forests. This source, with a strong, pronounced flavour, is exported primarily to Europe.

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. Because of this both the demand and the price for manuka honey have risen dramatically.

The total saleable crop for 1995 was assessed by the Ministry of Agriculture Quality Management at 8,047 tonnes (27.5 kilograms per hive), smaller than the previous year's crop of 11,819 tonnes (40.8 kilograms per hive) and slightly below the six year average of 8,759 tonnes (29.0 kilograms per hive). The 1994 crop was reported as the largest honey crop ever produced in New Zealand.

The industry's other products include beeswax, pollen, propolis and live bees (package bees and queen bees). Export opportunities for queen bees and packages to the two main markets (Canada and Korea) were improved through lobbying by the National Beekeepers' Association. The industry is determined to maximise New Zealand's advantages of relative freedom from bee pests and diseases in order to increase this trade in live bees. Bee pests and diseases, as well as the aggressive Africanised honey bees, have spread through many of the countries where bees are kept.

Table 18.29. APIARIES AND HONEY PRODUCTION*

DistrictBeekeepersApiariesHivesHoney production
199319941995199319941995199319941995199319941995

* Year ended 30 June.

Source: MAF Quality Management.

     number     tonnes 
Whangarei1,2641,2251,2133,0332,9722,89830,96729,84829,1011,0331,295354
Hamilton5965845512,9853,1002,90543,18543,74943,7428111,946962
Tauranga6065985373,5933,6963,53153,04350,28250,6319581,5241,426
Palmerston North1,3191,3581,3523,9613,9574,01138,44635,83937,2455771,4421,200
Blenheim4844744692,0362,0832,03722,44821,19022,679560493499
Lincoln7657717355,1435,3155,27058,11658,15558,8611,6112,8831,685
Invermay5885555524,3734,2084,11252,77750,81250,8211,5362,2361,921
          New Zealand5,6225,5655,40925,12425,33124,764298,982289,875293,0807,08611,8198,047

With the decline in the production of kiwifruit in New Zealand, the demand for bees for kiwifruit pollination has been reduced considerably in some areas of the country. The number of hives being moved for pollination of other crops (such as apples, stonefruit, berryfruit and squash) has remained reasonably static, but it is expected there will be an increase in the next few years in the number needed for apple pollination as the large areas of young apple trees planted recently reach maturity.

At 30 June 1995 there were 5,409 registered beekeepers in New Zealand with a total of 293,080 hives situated in 24,764 apiaries. There are 67 beekeeping businesses which own more than 1,000 hives and a further 98 with 501 to 1,000 hives. Beekeepers with 50 or more hives who pay a compulsory levy (set at $1.61 per hive for 1995), as well as many hobbyist beekeepers, are represented by the National Beekeepers' Association of New Zealand. The association commissions research from the International Bee Research Association (based in Cardiff, founded by a New Zealander) and exchanges its monthly journal The New Zealand Beekeeper with about 20 overseas national associations.

18.7 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.

After a period of decline in the 1980s the area planted in traditional cereals, such as wheat, barley and maize, is stabilising. This has occurred as the profitability of cereals has improved relative to that of other crops and farm enterprises. There has also been an increase in plantings of pasture seeds and specialist crops.

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.

MAJOR CROPS Area sown

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.

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 around 24 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 1994 this region provided 74 percent of the total production of 241,854 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 46 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 10 percent of the refined crop of 395,476 tonnes in 1994.

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 9 percent. In 1994 the Waikato Regional Council Area provided 35 percent of the crop, and the Bay of Plenty 20 percent. The total yield was 142,768 tonnes in 1994.

Table 18.3. GRAIN AND PEAS 1994*

CropArea sownYields
North IslandSouth IslandTotalNorth IslandSouth IslandTotal

* Change in survey population definition introduced in 1994.

Figures may not equate to the total due to rounding.

  hectares  tonnes 
Wheat5,06239,60644,66726,770214,957241,854
Oats67112,27112,9472,72254,98957,718
Barley12,12264,73376,85864,356331,110395,476
Peas1,45118,22819,6805,28254,61759,898
Maize14,24042514,664137,8474,920142,768

MAJOR CROPS Production

Checking the quality of a row of desiree potatoes in Inch Clutha.

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 57,718 tonnes in 1994. The main areas for oats are Southern Canterbury and Southland.

Field peas. In 1994, 75 percent of the total yield of 59,898 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 12 percent.

Potatoes. The production of potatoes is usually adequate to meet home market requirements. In 1994, the total area planted in potatoes was 9,524 hectares. The main growing areas are the Auckland, Manawatu and Canterbury local government regions. Potatoes make up 17 percent of the total area planted in vegetables.

Seed certification. The Ministry of Agriculture and Fisheries operates a seed certification scheme covering all the main herbage and arable species (and participates in the OECD seed scheme). There are considerable exports of certified seed to EC countries, the Pacific Basin, and North and South America.

Plant variety rights. Any breeder of a new and distinct plant variety may obtain a grant of plant variety rights. Such a grant gives the breeder, for a prescribed number of years, exclusive rights of commercialisation for the variety enabling the breeder 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 algae and bacteria. The New Zealand scheme complies with the 1978 Convention of the International Union for the Protection of New Varieties of Plants (UPOV).

MAJOR CROPS Yield per hectare

PIPFRUIT PLANTINGS Areas planted in pipfruit

NASHI AND EUROPEAN PEARS Area planted

PIPFRUIT Total exports

Table 18.31. AREAS PLANTED IN FRUIT

FruitAt 30 JuneMain regions
1990199219931994*

* Change in survey population definition introduced in 1994.

Areas of grapes planted by activities classified to winemaking are not included here.

hectares
Citrus     
     Grapefruit/goldfruit204167156117Bay of Plenty
     Lemons279334283263Northland
     Mandarins490544533619Northland
     Oranges833826760789Gisborne, Northland
     Tangelos475406357295Bay of Plenty
Pip fruit
     Apples11,33312,28312,93715,257Hawke's Bay
     Pears9039951,0681,279Hawke's Bay
     Nashi (Asian pears)739590484418Auckland, Bay of Plenty
Stone fruit     
     Apricots854814804844Otago, Southland
     Nectarines946889845667Hawke's Bay, Otago
     Peaches1,101958869714Hawke's Bay
     Plums324309303342Hawke's Bay, Auckland
     Cherries283272273274Otago, Marlborough
Berry fruit     
     Blackcurrants703778795720Canterbury
     Blueberries346328340357Waikato
     Boysenberries311250223231Tasman
     Raspberries285220224199Canterbury
     Strawberries313261247331Auckland
Subtropicals     
     Avocados1,3541,3081,2601,375Bay of Plenty
     Feijoas272243226161Bay of Plenty, Auckland
     Kiwifruit17,50815,25114,09912,174Bay of Plenty
     Tamarillos420353325299Northland, Bay of Plenty
     Passionfruit75746854Bay of Plenty
     Grapes (outdoor)†5,4085,3285,6637,160Marlborough, Hawke's Bay, Gisborne
Persimmons488415400412Auckland

Fruit

In the year to June 1995 fresh fruit valued at $868.9 million was exported. Table 18.31 outlines the main types of fruitgrowing in New Zealand.

Pipfruit (apples and European/Asian pears). The New Zealand pipfruit industry has experienced strong growth in recent years as a result of sound profitability, and related growth in plantings. The apple industry has successfully transformed production from the traditional varieties to the premium New Zealand-developed varieties. Braeburn and Royal Gala now account for over 50 percent of the export crop, up from 25 percent 5 years ago.

The main production areas are Hawke's Bay and Nelson, and Royal Gala, Braeburn, Fuji, Red Delicious, Granny Smith and Cox's Orange Pippin are the most commonly planted varieties. European pear varieties are mainly Packham's Triumph, Buerre Bosc, Winter Nelis and Winter Cole.

Apple and European pear export marketing is carried out by the New Zealand Apple and Pear Marketing Board. The board is effectively a grower co-operative, charged with handling the international marketing and sales of all New Zealand's export pipfruit, under the ENZA brand. The domestic market for pipfruit is de-regulated.

During the 1995 season an export crop of 17.2 million carton equivalents of fruit was handled by the New Zealand Apple and Pear Marketing Board, with offshore sales of $777 million. This was a 49 percent increase on the hail-affected 1994 crop.

The board is also involved in the processing sector for lower grade fruit and concentrated apple juice exports reached around $40 million in 1994-95. Significant sales are also made on the local market with board juice brands accounting for over 60 percent of the market.

As at September 1995 there were 600 hectares planted in Asian pears (nashi) in New Zealand. The main Asian pear growing districts are Auckland and Bay of Plenty and the main varieties are Hosui and Nijisseiki. Asian pear growing is well-organised with this fruit being exported through licensed exporters. The board is one of these exporters, handling around 40 percent of the 1995 crop.

Table 18.34. APPLE AND PEAR SALES*

 1992199319941995

* For year ended 30 September.

Source: Apple and Pear Marketing Board.

  $(000)  
Fresh fruit export523,988450,798460,690556,662
Commercial operations127,171120,178141,643227,889
     Net return651,159570,976602,333784,551

Picking strawberries for Christmas.

Summerfruit. At 30 June 1995 the areas planted in summerfruits were: apricots, 820 hectares; cherries, 290 hectares; nectarines, 900 hectares; peaches, 980 hectares; plums, 310 hectares.

The main summerfruit production areas are Central Otago, Hawke's Bay, Marlborough, Canterbury, and Auckland.

Most summerfruits are produced for local consumption, although there is an increasing focus on exports. In 1995,2,610 tonnes were exported with a value of $13.2 million compared to 1994 with 2,317 tonnes with a value of $9.2 million. The previous two seasons saw exceptionally low volumes exported primarily because of adverse climatic conditions. However the 1995 season saw an increase in export volume from last season of 43.5 percent.

Most of the increase was due to the significant increase in apricot exports, and improved prices for exported cherries. In 1995 apricots became the single largest summerfruit export. Apricot exports accounted for 44 percent of total summerfruit exports in 1995, while exports of nectarines accounted for a further 33 percent of the total summerfruit exports in 1995.

Australia remains the largest single export market, accounting for 53 percent of summerfruit exports in 1994-95, down from 68 percent in the year to 30 June 1994. Over the past seven years the industry has diversified into other markets. While Japan and North America have remained constant, other markets have increased their import volumes.

Taiwan is a fast growing market, accounting for 30 percent of New Zealand's summerfruit exports in the year to 30 June 1995. Apricots and cherries are the two main summerfruit products exported to Taiwan.

Exporting summerfruit comes under the Summerfruit Export Council Limited of the New Zealand Horticulture Authority.

Kiwifruit. Kiwifruit is one of New Zealand's most important horticultural export earners. New Zealand is a major supplier of kiwifruit and has led the development of the global industry.

In 1994, the New Zealand Kiwifruit Marketing Board, which is sole exporter except to the Australian market, sold approximately 50 million trays of New Zealand kiwifruit in more than 50 countries.

Sales (by volume) are focused in three major markets: Europe (59.7 percent), Japan (21.4 percent), and North America (5 percent). Emerging markets in North and South Asia, South America and the Middle East make up the remaining sales.

While New Zealand growers supply about a quarter of world production, kiwifruit generally accounts for less than 1 percent of world fresh fruit consumption. Other major producers include Italy, Japan, Chile, United States of America and France. The rapid increase in global production, which has now plateaued, and increasing competition from other fruits, has led to declining real prices, although New Zealand has consistently earned price premiums over its competitors.

Kiwifruit is produced in many regions of the North Island, as well as the north of the South Island, but the Bay of Plenty, with more than 75 percent of production, is the major growing area. There are about 2,800 kiwifruit growers in New Zealand. To obtain economies of scale vertical integration is occurring between orchards, packhouses and cool stores.

Table 18.35. KIWIFRUIT PRODUCTION

YearAreaExport traysSales trays
Source: New Zealand Kiwifruit Marketing Board.
 hectares(million)
19818,0576.26.2
199015,74472.162.8
199114,98059.854.7
199214,59467.352.3
199312,265 R55.3 R49.2R
199410,16154.849.9

Avocados and other subtropicals. Although small in comparison to the kiwifruit and pipfruit industries, export markets are being developed for a large number of these crops.

In the year to 30 June 1995, 1,808 tonnes of avocados were exported at a value of $9.2 million fob; an increase on last season's 1,777 tonnes worth $6.5 million.

Australia accounts for 96 percent of all avocado exports, with the remaining 4 percent taken by Hong Kong, Singapore and Korea. With increasing production in Western Australia and increased plantings and yields in New Zealand, alternative markets are being sought. Japan has been identified as a high priority market in the short-term and Korea in the long-term.

The volume of persimmons exported in 1995 was 1,384 tonnes, a significant increase on the 952 tonnes exported in 1994. Most persimmons are exports to Asia with 36 percent going to Singapore, 19 percent to Malaysia and 18 percent to Japan

Grape growing and wine production. New Zealand has an estimated area of 6,110 ha of producing grape vines as at 30 June 1995. The area of producing grape vines is expected to increase by 600 ha to 30 June 1996. The major grape producing regions are Gisborne (22,289 tonnes), Marlborough (24,509 tonnes) and Hawke's Bay (20,632 tonnes). In 1995,15,387 tonnes of Muller Thurgau grapes were crushed, the highest amount for a grape variety that season, next was Chardonnay with 12,346 tonnes, then Sauvignon Blanc (11,015 tonnes) and Muscat varieties (5,036 tonnes). The 1995 vintage, after three years of low yields, recovered to normal expectation, producing 74,500 tonnes—a 37 percent increase on the 1994 yield.

Grape production in 1992-94 was reduced by variable weather, low investment in the wine industry during the early 1990s and phylloxera ‘attack’. After recovery in the year ending June 1995, and with a dramatic resurgence in new plantings, the earlier adverse outlook has been transformed. New plantings during the 1994 season expanded the vineyards area by 9 percent to 7,500 ha (at June 1995).

The shortage of New Zealand wine in the 1992 and 1993 vintages impacted heavily on sales in both domestic and export markets. The industry's total sales were reduced by 21 percent from 45.6 million litres to 35.9 million—their lowest level in more than a decade. Driven by the shortfall, average grape prices were $867 in 1995, the same as in 1994, a 91 percent increase from $453 a tonne in 1991. Rising grape prices have played a key role in stimulating new plantings, but international market returns are unlikely to sustain such prices on a medium-term basis.

Sales of New Zealand wine on the home market rose to 30.0 million litres in 1995, a small recovery from the 28.5 million litres sold in 1994 but still down on the 39.1—50.8 million litres sold each year during the period 1985 to 1992. Export volumes of New Zealand wine dipped in 1995, totalling 7.8 million litres for the year, down from 7.9 million litres in 1994 and were worth $40.8 million (a decrease of 1.7 percent). Currency movement (the increasing value of the New Zealand dollar) was the primary reason for a small decline in average export prices, from $5.27 per litre in 1994 to $5.23 in 1995. Britain is New Zealand's major export market for wine, taking 68 percent of total wine exports by volume and 67.5 percent of value.

Dafs on display at the Dunedin Horticultural Society's Grand Spring Show.

The number of wineries in New Zealand has increased from 131 in 1990 to 204 in 1995. Further expansion in the number of wineries is expected as the vineyard area in New Zealand continues to expand.

Table 18.32. NEW ZEALAND WINE INDUSTRY STATISTICS

 Unit19911992199319941995*

* Estimated figures.

Source: Wine Institute of New Zealand.

Producing areahectares5,4405,8005,9806,1106,110
Average yieldtonnes per hectare12.19.37.18.812.2
Crushedtonnes65,70855,50042,62154,00074,500
Total productionmillion litres49.941.632.541.155.9
Domestic salesmillion litres41.143.637.428.530.0
Consumption per capitalitres (NZ Wine)12.112.811.08.18.5
Stock: sales ratiosales ratio1.65:11.28:11.21:11.62:12.15:1
Export Volumemillion litres5.67.18.67.97.8
Export Value$(million)25.334.748.341.540.8

Table 18.33. NEW ZEALAND WINE PRODUCTION, SALES AND STOCKS

 19911992199319941995*

* Estimates only.

Source: Wine Institute of New Zealand.

million litres
Production     
White42.51335.20026.04228.501-
Red5.7464.5003.4015.108-
Sparkling0.3790.4001.6135.780-
Fortified1.2871.5001.3851.720-
          Total49.92541.60032.46240.50055.900
Sales     
White33.73937.55032.50025.800-
Red4.1004.3004.1003.500-
Sparkling5.3005.6505.5004.500-
Fortified3.6003.6003.5002.600-
          Total46.73951.10045.60035.90037.900
Losses3.1002.0001.3941.3321.300
Stocks     
White55.79545.90035.285--
Red11.26410.8507.956--
Sparkling3.3263.2507.625--
Fortified6.6025.5004.281--
          Total76.98765.50055.14664.77681.476

Contributors

  • 18.1-18.2 Ministry of Agriculture, Statistics New Zealand.

  • 18.3 New Zealand Meat Producers Board, New Zealand Pork Industry Board, Poultry Industry Association of New Zealand.

  • 18.4 Wools of New Zealand.

  • 18.5 New Zealand Dairy Board.

  • 18.6 Statistics New Zealand, Ministry of Agriculture, National Beekeepers' Association.

  • 18.7 Ministry of Agriculture, Statistics New Zealand, New Zealand Apple and Pear Marketing Board, New Zealand Kiwifruit Marketing Board, New Zealand Horticulture Export Authority, Wine Institute of New Zealand Incorporated.

Special articles

Ministry of Agriculture; New Zealand Game Industry Board; Wools of New Zealand; Poultry Industry Association of New Zealand; National Beekeepers' Association; Willing Workers On Organic Farms (New Zealand); Lincoln University; Flower Industry of New Zealand Inc.

Further information

Agriculture. Statistics New Zealand (annual).

Annual Review of the New Zealand Sheep and Beef Industry. New Zealand Meat and Wool Board's Economic Service.

Census of Agricultural Contracting Services, 1984-85. Department of Statistics.

Contacts in Agriculture. Harding McPhail (biennial).

Export Levels of New Zealand Wool and Wool Products and Their Current Markets. Wools of NZ (annual).

Key Statistics. Statistics New Zealand (monthly).

Farm 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 (monthly).

New Zealand Dairy Board Annual Report.

  • From Cow to Customer: The New Zealand Dairy Industry

  • Dairy Facts and Figures 1994/5

  • New Zealand Dairy Board Corporate Profile.

New Zealand Meat Producer. New Zealand Meat Producers Board (quarterly).

New Zealand Meat Producers Board Annual Report.

New Zealand Pork Industry Board Annual Report.

Report of the Ministry of Agriculture and Fisheries (Parl paper C5).

Sentinel. National Agriculture Security Service (eight times per annum).

Situation and Outlook for New Zealand Agriculture. Ministry of Agriculture and Fisheries (annual).

Statistical Handbook. Wools of New Zealand (annual).

Surveillance. (Reports on animal health). Ministry of Agriculture and Fisheries (quarterly).

Wine Institute of New Zealand Incorporated Annual Report.

Wool Market Review. Wools of New Zealand (fortnightly).

Wool Report. Wools of New Zealand (quarterly).

Wools of New Zealand Annual Report.

Chapter 19. Forestry and fishing

19.1 Forestry

Hoping to net whitebait in 1995's “pretty dismal season”.

Forests cover about 29 percent or 7.8 million hectares of New Zealand's land area. Of this, about 6.4 million hectares are in natural forest and 1.4 million hectares in planted production forests. Of the total planted production forest estate, about 90 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 been increasing recently from 15,000 hectares in 1991 and 50,000 hectares in 1992 to 60,000 hectares in 1993. New plantings in 1994 were 98,000 hectares and the estimate for 1995 was 82,000 hectares. 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 will 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 10 years. However, major increases in supply are not expected until after the year 2000. The increase expected to become available under the assumption of 50,000 hectares of new plantings being undertaken each year is shown in the graph below.

Forestry research is described in section 15.1, Organisation of science, while the role of the Ministry of Forestry is summarised in section 3.3, State sector.

Resources

Planted production forests. Trees planted in the second boom of afforestation (1961 through to the mid-1980s) are reaching large-scale utilisation. This provides real opportunities to maximise the economic return from tree growing.

Special-purpose plantation species have also been evaluated and these are being planted by small scale forest growers on suitable sites. Uses for these timbers include furniture, cabinet work, turnery, joinery, veneers and boat-building.

Natural production forests. There are 6.4 million hectares of the natural forest remaining in New Zealand, of which around 5.1 million hectares (79 percent) are unavailable for timber production, being managed by the Department of Conservation for soil and water, conservation and recreation values.

Harvesting timber from state-owned natural forests is confined to the 138,000 hectares set aside for production on the West Coast and managed by Timberlands West Coast Limited, and 12,000 hectares set aside in Southland and managed by the state-owned enterprise Crown Forest Management Limited (known as New Zealand Forestry Corporation until December 1995). These forests are required to be managed under approved sustainable forest management regimes.

From 3 July 1996, timber production from the 1.3 million hectares of privately-owned natural forest must be done in accordance with sustainable forest management provisions of the amended Forests Act. The harvesting and milling of ‘salvaged’ timber from areas of farmland and non-natural forest, along with windblown and naturally dead trees from natural forest not being managed under an approved sustainable forest management regime, is also permitted. Approval is necessary for harvesting and milling timber for a landowner's personal use.

All sawmills milling timber from natural forests must be registered and are restricted to processing timber from approved sources. Exports of natural forest produce are limited to those sourced from an area managed under an approved sustainable forest management plan or permit or where the product is manufactured to a finished form.

FOREST PLANTATIONS Annual plantings by state and private sectors

Ownership of forests

Many of the earlier plantation forests were developed by the state, but ownership has moved increasingly to the private sector over the last decade. This led to the sale in 1990 of the cutting rights to 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.

Sale of state forest assets. The sale of management and cutting rights to Crown commercial forestry assets was officially launched by the New Zealand Forestry Corporation Limited on 25 October 1989. Rights to about 550,000 hectares of plantation forests were offered for sale in 90 units of varying sizes. The state-owned sawmilling operations at Waipa and Conical Hill were also offered for sale. However, the sale did not include the land or Maori leased forests. Prospective bidders were provided with detailed information on the sale, and bids for the forests were called prior to 30 June 1990. There was no distinction between domestic and overseas bidders. The Government retained the right to remain the owner of the resource if bids received were unacceptable.

Following consideration of the bids, management and cutting rights to 247,000 hectares were allocated to new owners, while the rights to 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.

Arbor Day in Wellington.

Table 19.1. FORESTRY PLANTING AND PRODUCTION: SUMMARY 1921-1995

Year ended 31 MarchNew area plantedRough-sawn timberWood pulp*Paper and paperboard
StatePrivate

* Chemical and mechanical wood pulp.

Source: Ministry of Forestry.

 hectares (000)hectares (000)cubic metres (000)tonnestonnes
19211..726....
192542812....
19302316668....
193558575....
19403..79322113,079
19451..80315,68120,949
19502..1,13121,78122,136
1955221,45353,01640,917
1960321,638221,408164,255
1965951,739370,499316,104
19701581,803521,654445,976
197521232,086843,244546,834
198018262,0001,122,456673,834
198520362,3061,144,911770,098
19893171,8761,259,005735,207
19901212,1211,233,809757,371
1991-162,2831,348,760822,340
1992-152,3011,343,320780,016
1993-502,6341,271,297756,013
1994-622,8161,371,234835,584
1995P-982,9491,360,389876,187

Several foreign-owned companies made significant investments in New Zealand plantation forests. Juken Nissho Limited acquired the rights to 43,000 hectares, Ernslaw One Limited acquired 24,000 hectares, and Wenita Forestry Limited acquired 21,000 hectares.

The Conical Hill sawmill was purchased by Ernslaw 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 managed about 116,000 hectares of plantation forest. American company ITT Rayonier subsequently purchased 97,000 hectares of forest managed by New Zealand Timberlands Limited after the balance of 22,000 hectares was withdrawn from the sale. New Zealand Forestry Corporation Limited continued to manage these forests for the Crown. At the end of 1995 New Zealand Forestry Corporation Limited was renamed Crown Forestry Management Limited and continued to manage the unsold state forests.

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 (as at 31 March 1994) 1.39 million hectares. Approximately 50 percent of the resource is owned by three companies, Carter Holt Harvey Limited, Fletcher Challenge and Rayonier New Zealand Limited. Juken Nissho Limited, Ernslaw One Limited and Wenita Forestry Limited together 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 planted production 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.

Statistics New Zealand's annual Business Directory update recorded a total of 30,456 full-time equivalent persons engaged in timber-related industries in 1995. There were 5,702 in forestry, 4,986 in logging, 7,744 in sawmilling, 7,758 in timber merchanting, and 4,266 in pulp and paper manufacturing and wholesaling. This compares with 28,957 people engaged in the same activities in 1994.

PREDICTED FORESTRY HARVEST 50,000 hectare new plantings per year

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 and 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 and Paper Technology, as well as a Certificate in Pulp and 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.

19.2 Timber and forest products

Timber

Roundwood. In 1994-95 logs from planted production forests supplied 16,221,000 cubic metres, or 99 percent of the total roundwood removals. Table 19.2 shows the quantities of roundwood removed from the forests of New Zealand to support approximately 380 sawmills, 5 plywood, and 8 veneer plants, 3 particleboard mills, 6 pulp and paper mills, and 5 fibreboard mills in 1994-95. This roundwood production does not include firewood.

Table 19.2. ESTIMATED ROUNDWOOD REMOVALS FROM NEW ZEALAND FORESTS

Year ended 31 MarchNatural forest removals totalPlanted production forest removalsTotal Removals
Saw logsPulp logsExport logsOther*Total

* Other includes peeler logs, small logs and export chips.

Source: Ministry of Forestry.

 cubic metres (000) 
1990R3574,1293,7091,9471,60211,38711,744
1991R3614,3984,3183,0641,55213,33213,693
1992R2054,4314,1843,5781,73813,93114,136
1993R2065,0063,4754,5411,70914,73114,937
1994R2855,1713,7814,2531,70514,91015,195
19952745,3104,0604,7622,08916,22116,495

TIMBER PRODUCTION Indigenous and plantation

Have chainsaw, will sculpt.

Sawn timber. Radiata pine accounts for about 90 percent of the total cut of exotics, Douglas fir for 5 percent and other conifers for most of the remainder. About 3 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 19.3. ROUGH-SAWN TIMBER PRODUCTION

Year ended 31 MarchSoftwoods fromHardwoods fromTotal
Natural forestsPlanted production forestsTotalNatural forestsPlanted production forestsTotal
Source: Ministry of Forestry.
 cubic metres (000)
1988681,7331,801172191,819
1989601,8011,861151161,877
1990712,0332,104161172,121
1991722,1982,270112122,282
1992542,2372,29191102,301
1993612,5632,62464102,634
1994722,7302,80276132,815
1995702,8632,93387152,948

Table 19.4. SAWN TIMBER PRODUCTION BY SPECIES

SpeciesYear ended 31 March
199019911992199319941995
Source: Ministry of Forestry.
 cubic metres (000)
Natural forest—      
Rimu and miro686951556666
Matai----11
Totara----1-
Kahikatea322332
Tawa654231
Beech1074447
Other--2312
           Total, natural forest species878363677979
Planted production forest—      
Radiata pine1,7351,8881,9352,2812,4972,591
Douglas fir212224221160123128
Eucalypts-11245
Other878681124112146
           Total, planted production forest species2,0342,1992,2382,5672,7362,870
           Total, all species2,1212,2832,3012,6342,8152,949

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 plantation growth resources. The effective introduction and maintenance of timber preservation standards has greatly assisted the utilisation of plantation-grown roundwood for these users.

Export wood chips. The export wood chip industry originated in the Nelson region. Other wood chip export ports include Mount Maunganui, Port Chalmers and Southport. Both native and exotic trees unsuitable for sawn timber production were used. The process also uses forest and sawmill residues which would normally be wasted.

Chip exports during the year ended June 1995 totalled 274,000 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. Over 1 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 New Zealand Forest Research Institute Limited.

Timber preservation has expanded markets for timber products in the building, farming and export sectors.

The Timber Preservation Council is responsible for maintaining standards in the industry.

Quarantine and inspection. New Zealand's quarantine inspection services provide a degree of insurance to the forest industry by limiting the movements of insects and disease into and out of the country. Ministry of Forestry protection officers inspect imported wood and wood products, including dunnage and packaging materials within shipping containers, bulk cargo, logs, sawn timber and manufactured wood products. Ships which have been assessed as having called in high risk areas may be inspected for gypsy moth, a potentially devastating insect for New Zealand's forestry industry if it became established. Inspection of forestry exports such as logs and timber is also undertaken by the Ministry of Forestry protection officers where the importing country requires a phytosanitary certificate.

Pottery basin set in a solid native timber vanity unit.

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.

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. This plant produces market pulp and newsprint.

Carter Holt Harvey operates pulp and paper plants at five sites in New Zealand. At Penrose in South Auckland a plant produces corrugated medium paper and paperboard from recycled waste paper. At the large Kinleith site, near Tokoroa, both market pulp and paper and paperboard are produced. The plant at Whakatane produces paperboard from mechanical pulp and from semi-chemical and waste-paper based pulps. A plant at Kawerau manufactures a range of tissue and other papers for the domestic and export markets. The Mataura plant (New Zealand's oldest established paper mill) produces a range of papers using New Zealand-made pulps supplemented with imported speciality pulps.

Pan Pacific Forest Industries New Zealand Limited operates an integrated sawmill and thermo-mechanical pulp mill at Whirinaki, near Napier.

Winstone Pulp International has a chemical thermo-mechanical pulp mill at Karioi. The plant uses wood from Karioi State Forest, as well as sawmill residues.

PULP & PAPER PRODUCTION Annual production

Table 19.5. 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
1988601,789610,150255,01947,707398,079700,805
1989663,936595,069296,29540,323398,589735,207
1990658,230575,579294,88137,802424,688757,371
1991733,240615,520321,28635,178465,876822,340
1992673,949669,371356,35119,949403,716780,016
1993588,369682,928376,1058,795371,113756,013
1994701,630669,604370,85313,794450,966835,613
1995684,454675,935374,86514,924486,398876,187

Wood-based panels. Five factories manufacture plywood, and the total output for the year ended 31 March 1995 was 150,543 cubic metres. Total production of veneer in the industry in 1994-95 was 235,444 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 99 percent of total peeler-log production.

PANEL PRODUCTION Total annual production

Table 19.6. VENEER, PLYWOOD, PARTICLEBOARD AND FIBREBOARD PRODUCTION

Year ended 31 MarchVeneerPlywoodParticleboardFibreboard
Source: Ministry of Forestry.
 cubic metres
198889,71463,069170,968301,116
198982,85563,655178,209412,825
199089,37368,479171,621442,603
199174,17960,726159,893463,232
199282,81057,864155,428513,877
1993117,72086,253164,877543,679
1994140,51696,953175,786553,670
1995235,444150,543175,995690,175

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. Laminated veneer lumber is manufactured at plants near Masterton and at Gisborne.

Overseas trade in forest products

Exports. Forest products are important earners of overseas funds. For the year ended June 1995 exports of forest products were valued at about $2,615 million. Australia took 30 percent (by value) of exports, mainly in sawn timber, paper and paperboard, panel products and wood pulp. Japan also took 30 percent, mainly logs, panel products and pulp. The remaining 40 percent is taken by smaller customers, of which the largest was Korea, taking 14 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 81 percent of the value of total forest products imports in the year ended June 1995. Imports of forest products for the year ended June 1995 were valued at $715 million.

Table 19.7. OVERSEAS TRADE IN FOREST PRODUCTS

Year ended 30 JuneWood and wood productsWood pulpPaper and paper productsAll forest products
Source: Ministry of Forestry.
Imports cif$(000)
198876,51410,406258,607345,528
198979,68811,861297,367388,916
1990109,16414,682357,089480,935
199193,65610,068373,461477,185
199285,48916,949440,889543,327
199394,24518,470548,269660,984
1994114,80412,749485,560613,113
1995P136,04714,070565,337715,454
Exports fob$(000)
1988395,760353,599236,014985,373
1989537,680398,711300,7531,237,144
1990658,759386,817340,2951,385,871
1991843,643389,817343,8001,577,260
19921,028,666379,168416,8851,824,719
19931,549,990352,709421,1092,323,808
19941,738,412326,977403,6662,469,055
1995P1,713,673480,640420,3162,614,629

Table 19.8. VOLUME OF TIMBER IMPORTS

Year ended 30 JuneHardwoodsSoftwoodsTotalLogs and poles
Source: Ministry of Forestry.
 cubic metres (000)
19881818368
19891814327
19902025456
19911425404
19921319323
19931218303
19941723413
19951723412

FORESTRY EXPORTS Destination by value, 1995

High quality Argentinian Eucalyptus grandis in a market development study by one of New Zealand's multinational companies with significant overseas forestry interests.

Table 19.9. VOLUME OF TIMBER EXPORTS

Year ended 30 JuneSawn timberLogs and poles
From natural forestRadiata pineDouglas firOtherTotal
Source: Ministry of Forestry.
 cubic metres (000)
198853366213416830
1989540867335141,545
1990444273295482,170
1991256683306813,293
1992271586478503,793
1993389257409924,734
1994286832359364,315
1995P11,01842291,0914,806

Table 19.1. VOLUME OF OVERSEAS TRADE IN PULP AND PAPER

Year ended 30 JuneWood pulpPaper and paperboard
NewsprintOther paper and paperboard*Total

* Products manufactured from paper and paperboard are excluded.

Source: Ministry of Forestry.

Importstonnes
198811,26613,05079,09992,149
198911,2459,93281,72991,661
199011,6358,73991,10699,845
199110,13416,09494,062110,156
199216,8506,022111,297117,318
199318,4423193,845193,848
199417,03787143,912143,999
199514,32465174,981175,046
Exportstonnes
1988582,586159,62176,375235,996
1989567,836175,752103,263279,015
1990560,728201,213112,482313,695
1991624,954209,158107,651316,809
1992656,088271,469116,825388,293
1993625,382285,850117,294403,144
1994628,928251,712117,029368,741
1995P665,274232,436116,533348,969

19.3 Fisheries

Fishery resources

New Zealand's Exclusive Economic Zone (EEZ), is one of the largest in the world. At 1.2 million square nautical miles, it covers an area 15 times New Zealand's land mass. In spite of the large size of the zone, the waters are relatively deep and not particularly rich in nutrients and, because of this, the average productivity of the fishery resources tends to be low. Less than one-third of the New Zealand EEZ is shallower than 1,000 metres; this is the fishable area where most fish resources occur. Only one-twentieth of the EEZ is coastal water shallower than 200 metres.

There are over 1,000 species of marine fish in New Zealand's waters, about 100 of which are commercially significant. Species include shallow water shellfish, open water migratory pelagic fish and the deepwater species which live more than a kilometre below the surface. The fisheries range from numerous, but mostly small, resources of subtropical species in the north, through moderate resources of many warm temperate species on the shelves around the main islands, to large resources of a few cool water species on the extensive plateau to the south-east and east of the country.

Much like New Zealand's human population, its diverse marine fish fauna is derived from many parts of the world, with a mix of residents, recent immigrants and seasonal visitors, and is rather thinly spread through the environment with a few areas of high density.

Fisheries management

The fisheries within New Zealand's EEZ are a ‘common property’ resource, and the government has an important role in ensuring their use is sustainable. In practice, this means ensuring the fisheries are not overfished, while balancing the competing demands of various user groups.

The main method used to manage fisheries in New Zealand is a system based on controlling the levels of catch, known as the Quota Management System (QMS). Under this system, catch limits are set for each fish stock and rights to harvest fish for sale are acquired by purchasing or leasing quota. The main goals of the QMS are to set sustainable commercial catch limits and improve economic efficiency in the fishing industry.

The catch limits, known as Total Allowable Catches (TACs) and Total Allowable Commercial Catches (TACCs) are reviewed annually. The review process involves consideration of the latest fisheries research and stock assessments, and consultation with representatives from the commercial fishing industry, Maori, recreational fishing groups and environmental organisations.

The QMS provides security for participants in the fishing industry to invest in harvesting and processing capacity. There has been substantial growth in the seafood processing and marketing sectors since the introduction of the QMS. The QMS applies throughout the New Zealand EEZ for the main commercial species, and new legislation is being developed to bring all commercial fish species into the system.

In addition to the QMS, there are various regulatory controls used to manage aspects of commercial fishing. These include method and gear restrictions, closed areas, closed seasons and restrictions on fishing permits. Recreational fishing controls include daily bag limits, minimum fish sizes, method and gear restrictions, closed areas and closed seasons.

New fisheries legislation

New Zealand's fisheries legislation is being revised in a three stage process. The first stage, which took effect from 1 October 1994, was the introduction of user charges to recover a large part of the costs the Government incurs in managing commercial fisheries. The second stage is the development of a new Fisheries Bill, which is due to be enacted in 1996. The third stage will be a review of aquaculture policy and the development of new legislation, which is also due to be introduced in 1996. The purpose of the new Fisheries Bill is to ensure the sustainable utilisation of New Zealand's fisheries resources. Features include:

  • Explicit standards for environmental protection.

  • New processes for resolving disputes between fishers over access.

  • New rules for bringing species into the quota system.

  • Enhancement of the QMS, including improved reporting procedures.

  • Clarification and enhancement of customary fishing regulations.

Ministry of Fisheries

The Ministry of Fisheries was established on 1 July 1995, and provides the following services:

  • Policy advice on sustainable utilisation.

  • Standards and specifications for all fisheries services.

  • Purchase of contestable services (including research).

  • Management and co-ordination of the TAC/TACC setting process.

  • Monitoring and audit of service delivery.

  • Delivery of non-contestable services, including enforcement and dispute resolution.

1994/95 TACCs

The review of Total Allowable Commercial Catches (TACCs) for the 1994/95 fishing year resulted in the TACCs for hoki and several other species being increased, reductions for orange roughy and deferred decisions for snapper and several other stocks. A total of 34 fish stocks were reviewed, but most emphasis focused on snapper, particularly the Auckland East (SNA 1) stock and orange roughy.

Table 19.11. TACC CHANGES FOR 1994/95

SpeciesFish stockTACC
Was (94/95)Now (95/96)

* Not managed under quota management system but by individual quotas pursuant to s89 of the Fisheries Act 1983.

Source: Ministry of Agriculture and Fisheries.

 tonnes
BluenoseBNS 7150150
 BNS 8100100
HokiHOK 1220,000240,000
Jack mackerelJMA 110,00010,000*
 JMA 318,00018,000*
LingLIN 32,8002,809
 LIN 45,7205,720
Orange roughyORH 2A6,9994,261
 ORH 2B820258
 ORH 3A1,840580
 ORH 3B14,00012,700

Proposals to increase TACCs under adaptive management programmes were also a focus of the review. Adaptive management programmes are intended to be a means of collecting information by increasing the catch limits for particular stocks and then monitoring the effects. Sixteen fish stocks are currently managed under these programmes, but to date only limited information has been gained. The industry proposed a further nine fisheries be considered for TACC increases under adaptive management, but only four of these proposals were approved.

Table 19.12. TOTAL ALLOWABLE COMMERCIAL CATCH, 1995*

Fish or shellfishQuantity

* As at 30 September. Excludes tuna species.

Source: Ministry of Fisheries.

 tonnes
Alfonsino2,721
Barracouta33,202
Blue cod2,665
Blue moki604
Blue warehou4,511
Bluenose2,664
Elephant fish715
Gemfish7,470
Grey mullet1,086
Gurnard4,982
Hake13,997
Hapuku/bass/groper2,178
Hoki240,010
Jack mackerel32,547
John dory1,107
Ling22,108
Mixed flats6,670
Orange roughy25,569
Oreos26,160
Packhorse rock lobster40
Paua1,300
Red cod16,066
Rig2,098
Scallop723
School shark3,105
Silver warehou9,884
Snapper6,884
Spiny rock lobster2,966
Squid123,332
Stargazer5,352
Tarakihi5,991
Trevally3,932

Preparing sharks' livers for oil extraction. The oil is exported to Japan for use in face and hand creams, cosmetics, ointments and health capsules.

Table 19.13. CATCH BY DOMESTIC AND FOREIGN FISHERS, 1994 AND 1995*

 DomesticCharterForeignTotal
1994P1995P1994P1995P1994P1995P1994P1995P

* Calendar year. Tonnes.

Source: New Zealand Fishing Industry Board.

Finfishtonnes
Alfonsino2,4918863337  2,524923
Barracouta7,9288,3279,1006,603  17,02814,930
Blue cod1,7131,548    1,7131,548
Blue mackerel4,1551,9938901,146  5,0453,140
Blue moki478268420  482288
Blue warehou1,3234701,03494  2,357564
Bluenose2,1551,2893410  2,1891,299
Cardinal fish4,2382,1931159  4,2502,252
Elephant fish456312    456312
Flatfish10949    10949
Gemfish2,0631,47719838  2,2611,515
Ghost shark695554431510  1,1261,063
Grey mullet69958441  703585
Gurnard2,7911,659176  2,8081,666
Hake2,3702,3004,8698,429  7,22910,728
Hoki74,36869,392113,83576,755  186,203146,147
Jack mackerel21,1808,70418,83518,951  40,01427,656
John dory 513 -  -513
Kahawai4,0211,371 -  4,0211,372
Ling10,4687,3656,1173,391  16,58510,756
Orange roughy28,56927,784379365  28,94828,149
Oreo dory445165--  445166
Red cod9,04711,4541,041991  10,08812,444
Rig1,3577794   1,361779
Shark53-1--54
Silver warehou2,3831,4745,0593,209 -7,4424,683
Skate72635698  735363
Snapper6,2433,8243   6,2463,824
Southern blue whiting590317,97114,594  18,56214,597
Spiny dogfish1742,14984,1951,028  84,3693,177
Stargazer1,8761,212227222  2,1031,435
Tarakihi4,1613,23923978  4,4003,317
Trevally3,1072,153    3,1072,153
White warehou 119 1,986  -2,105
           Total finfish202,384165,967264,529138,533--466,913304,501
(1993)219,169 271,058 58 490,285 
Tuna        
Albacore tuna1,8241,677515521,8341,693
Other tuna583633351 9271
Skipjack tuna2,845701 9  2,845710
Southern bluefin321292251842532282345
           Total tuna4,7602,54426324231345,0532,820
(1993)4,822 253 342  5,417
Eels        
Freshwater eels777534    777534
Other eels585339    585339
          Total eels1,362873----1,362873
(1993)1,330     1,330 
Shellfish        
Oysters (dredge)527965    527965
Oysters (farmed)2,2462,872    2,2462,872
Mussels56    56
Greenshell mussels45,00062,500    45,00062,500
Kina2429 7  2436
Packhorse rock        
lobster915    915
Paddle crab438280 -  438280
Paua97977751  984777
Pipi222124    222124
Queen scallop13595    13595
Scampi933575    933575
Spiny rock lobster3,2951,963--  3,2951,963
Squid10,43820,79260,49275,892  70,93096,684
Tuatua188110    188110
           Total shellfish64,41891,50360,49775,900--124,915167,403
           (1993)59,858 35,976   95,834 
Grand total272,924260,887325,289214,6753135598,244475,596

Maori fisheries

Since the passing of the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992, work has continued to implement fully all the provisions of the Act. However, the development of necessary supporting legislation is proving to be difficult and time consuming.

Baby snapper at the Mahanga Bay, Wellington, Aquaculture Research Centre.

The efforts of officials, in association with Maori, are focused on achieving the incorporation of comprehensive customary fishing regulations into the proposed Fisheries Bill due to be enacted in June 1996.

Treaty of Waitangi Fisheries Commission: Te Ohu Kai Moana

Te Ohu Kai Moana (TOKM), the Treaty of Waitangi Fisheries Commission, was set up in 1992 to replace the Maori Fisheries Commission, established in 1989 to hold fisheries assets returned to Maori by the Crown, and to arrange for their eventual distribution. In late 1992, after months of complex negotiations, an historic Deed of Settlement was signed in which the Crown agreed to fund Maori into a 50/50 joint venture with Brierley Investments Limited to bid for Sealord Products Ltd—New Zealand's biggest fishing company, holding 27 percent by volume of the New Zealand quota resource. In return, Maori agreed that all their current and future claims in respect of commercial fishing rights were fully satisfied and discharged.

The $350 million purchase of a half share of Sealord gave Maori control of roughly a third by volume of the New Zealand fishing quota. And, in addition to acquiring a half share in Sealord, the Deed of Settlement promised Maori 20 percent of quota for all species not yet in the quota management system.

The Deed of Settlement also provided that in respect of all fishing rights and interests of Maori, their status changes so that they no longer give rise to rights in Maori or obligations on the Crown. The exception is commercial fishing rights and interests.

The Settlement Act made other changes in recognition of the bigger, more complex workload now facing commissioners. TOKM was given wider ranging powers, an increased membership of 13 commissioners and a requirement that it be clearly accountable to Maori as well as to the Crown.

TOKM's role. By law, TOKM is charged with helping Maori to get into and develop, “the business and activity of fishing”. Its responsibilities include:

  • The development of a method of allocating assets to iwi, according to the provisions of the Treaty of Waitangi (Fisheries Claims) Settlement Act, and the Deed of Settlement.

  • Organising annual lease rounds (to make quota available to iwi through a leasing process). TOKM leases to iwi organisations at a rate calculated below true market rates—underlining the objective of encouraging Maori into the business and activity of fishing. The discount lease scheme has been extremely effective. Annual lease rounds will continue until an allocation scheme is in place.

  • Ensuring the widest possible iwi representation in the legislative process, particularly in relation to amendments to the Fisheries Act, Customary Fisheries regulations and eventually the new Maori Fisheries Act.

    TOKM has a major role to play in the development of the new Maori Fisheries Act. This is the Act which will set out how post-settlement assets are to be distributed, on the basis of proposals developed by TOKM after full consultation with Maori. The new Maori Fisheries Act will also set out requirements for the appointment, composition and powers of any body succeeding TOKM. TOKM is also taking a lead in the development of regulations protecting customary fishing rights.

  • Implementing a $5 million training and development strategy aimed at ensuring Maori have the skills to match their fisheries assets.

Assets held by TOKM on behalf of iwi. The assets held by TOKM on behalf of iwi/Maori can be divided into two broad categories—pre-settlement assets (PRESA) and post-settlement assets (POSA) acquired as a result of the Deed of Settlement and the Sealord purchase. Assets include major shareholdings in a number of companies involved in the fishing and seafood industry including Moana Pacific Fisheries Ltd, and Sealord Products Ltd.

  • Pre-settlement assets (PRESA). This comprises the 10 percent quota plus cash transferred from the Crown to Maori under the old Maori Fisheries Act and shares in Moana Pacific Fisheries and cash generated from these assets.

    Cash—$49,683,283

    Quota—57,213 tonnes

    Shares—a 72 percent shareholding in Moana Pacific Ltd valued at $58,432,000.

  • Post-settlement assets (POSA). A 50 percent shareholding in Nelson-based Sealord Products Limited acquired in 1993 for $350 million. Cash and a promise of 20 percent of all new quota to be entered into the QMS.

How assets will be distributed. TOKM is in the process of developing a scheme for allocation of pre-settlement assets in conjunction with iwi. Once decisions are made they will be presented to a hui of iwi representatives, and will then go to the Minister of Fisheries for approval. Once the minister has approved the model, allocation can begin. A scheme for distribution of post-settlement assets is also to be developed and will be set out in the new Maori Fisheries Act, scheduled for introduction to Parliament following the development of a PRESA allocation model.

Aquaculture

Pacific oysters, greenshell mussels and salmon continue to be the mainstay of New Zealand's marine farming industry, and are likely to continue to be so through the late 1990s. While production tonnages may not substantially increase, value-added processing and niche marketing is expected to generate increased income from these products.

The aquaculture industry is expected to diversify into other species during the 1990s, as government investment in biological research during the 1980s starts to pay off. Though industry investment has been limited by general economic conditions, work by MFish on the most promising new species (scallops, paua, rock lobster, dredge oysters and seaweeds) can now be capitalised on by industry. Paua farms are now established, and seaweed pilot projects are under way.

Reseeding, or ‘enhancement’, of the southern scallop fisheries by MFish scientists and fishers has been spectacularly successful in increasing catches. Other valuable inshore fisheries, such as paua, rock lobster and snapper, may have similar potential for enhancement but more research is required to evaluate the potential. However, a suitable tenure system needs to be devised to provide incentives for private sector enhancement of fisheries on the sea floor.

Seized undersize paua.

New Zealand control

Since the advent of the Quota Management System, control of New Zealand's fisheries resources has been firmly held by New Zealanders and New Zealand companies. This point has not always been obvious to those not associated with the industry, and the perception still exists that foreign vessels are catching our fish.

The New Zealand domestic fleet, particularly the deepwater fleet, has expanded considerably in recent years, and in 1995 domestic vessels caught 54.7 percent of the total catch. A further 45.3 percent was caught by foreign vessels on charter to New Zealand fishing companies, with the New Zealand companies controlling the further processing and marketing of the product. The catch by foreign licensed vessels was negligible, less than one percent, and these vessels operated solely in the tuna fisheries.

The charter fleet dominates the high volume deepwater fisheries (such as hoki and southern blue whiting) and the seasonal squid fishery. But, even in these fisheries, New Zealand domestic vessels are increasing their share of the catch. This trend is due to the significant investment by the seafood industry in new vessels.

As well as increased ‘New Zealandisation’ of the catching sector, the seafood industry has continued to invest in the processing and marketing sectors.

Table 19.14. REGISTERED COMMERCIAL FISHING VESSELS*

YearForeign licensed vesselsForeign charactered vesselsDomestic vessels

* At 30 September

Source: Ministry of Fisheries.

19901141882,143
19911331602,210
199244792,802
1993251672,707
199432632,569

19.4 Seafood trade

Exports. Three difficult trading years in a row (1993 to 1995) have resulted in static export revenue results at around $1.2 billion in each of those years. New Zealand seafood exports have been hit by a combination of factors, including prolonged price weakness in international markets and continued strengthening of the New Zealand dollar against major trading currencies, particularly the US dollar. The industry target of NZ$2 billion in annual export revenues by 2000 is becoming less and less attainable. A return to average nominal growth of 6-7 percent over the next five years would result in revenue of up to $1.75 billion by 2000.

In 1995 the historic top four species, orange roughy ($154.9 million), hoki ($147.5 million), rock lobster ($113.8 million) and Greenshell™ mussels ($86.9 million), were eclipsed by squid ($159.9 million). Excellent catches and better than average trading conditions were the reason. However, it is anticipated that this will be a one-off phenomenon. Snapper ($49.8 million) dropped back from fifth to seventh, as quota cuts reduced catches and revenue, and was replaced by ling ($55.2 million). In 1995 the volume of seafood exported, 322.2 thousand tonnes, increased 11.3 percent over 1994. The value increased 5.9 percent to $1.24 billion. This was in effect a nominal average decline per tonne of 4.8 percent.

Japan ($351 million), United States ($252.1 million) and Australia ($136.7 million) remained the most important individual export markets in 1995. Total exports to European Union markets were $142.8 million and grew 6.5 percent. Exports to other Asian markets were $299.3 million and grew 14.4 percent.

Imports. In 1995 approximately 28,175 tonnes (28,175,869 kgs) with a value of $89 million of fish and fish products were imported to New Zealand. Major imports remain prawns, shrimp, sardines, salmon and tuna.

Household spending on seafood showed modest growth in 1993 with regard to actual expenditure but fell as a percentage of total food purchases. Meat also shared this trend; the gap was filled by poultry.

Table 19.15. SEAFOOD EXPORTS

Commodity exported1991199219931994
QuantityValueQuantityValueQuantityValueQuantityValue
Source: New Zealand Fishing Industry Board.
 tonnes$(m)tonnes$(m)tonnes$(m)tonnes$(m)
 (000)f.o.b.(000)f.o.b.(000)f.o.b.(000)f.o.b.
Finfish or wetfish218.0701.0227.5887.7251.7869.1208.2760.0
Rock lobster2.8101.82.8101.43.3120.82.9119.6
Shellfish40.4158.462.6228.650.2198.478.5287.3
          Total261.2961.2292.81,217.6305.81,199.5289.61,166.4
         

Table 19.16. PRINCIPAL FISH EXPORTS

Species19901991199219931994
QuantityValueQuantityValueQuantityValueQuantityValueQuantityValue
Source: New Zealand Fishing Industry Board.
 tonnes$(m)tonnes$(m)tonnes$(m)tonnes$(m)tonnes$(m)
 (000)f.o.b.(000)f.o.b.(000)f.o.b.(000)f.o.b.(000)f.o.b.
Abalone0.725.11.137.91.151.20.854.20.743.3
Barracouta11.816.612.917.510.616.117.720.89.511.3
Gemfish1.910.81.411.11.614.91.313.91.213.1
Hake2.79.94.416.94.025.04.021.42.318.0
Hoki33.968.849.2156.357.2202.060.8173.144.3114.0
Ling4.016.66.129.09.150.08.242.38.948.1
Mackerel, blue3.02.57.45.57.15.93.82.90.80.7
Mackerel, jack10.710.814.410.121.823.329.122.622.716.7
Mussels8.834.210.742.112.852.414.955.317.870.2
Orange roughy16.7145.214.3138.612.1165.114.7201.112.4167.8
Oreo dory5.318.16.224.55.520.66.923.26.524.9
Rock lobster2.883.72.8101.82.8101.13.3120.82.9119.4
Salmon1.814.52.320.22.627.52.626.32.723.7
Scallops0.48.70.615.01.020.11.120.83.893.4
Scampi0.33.90.23.20.611.80.610.50.711.0
Snapper6.749.46.651.57.063.36.561.06.357.0
Southern blue whiting2.72.412.716.614.041.210.314.93.26.0
Squid34.362.525.247.344.780.230.952.955.0119.8
Tunas7.319.88.916.64.214.75.410.67.929.4
Warehous6.318.85.714.36.122.66.317.36.118.8

Table 19.17. VALUE OF FISHERIES EXPORTS TO PRINCIPAL MARKETS

Country1991199219931994
ValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exports
Source: New Zealand Fishing Industry Board.
 $(m) $(m) $(m) $(m) 
 f.o.b. f.o.b. f.o.b. f.o.b. 
Japan290.030.2409.233.6347.128.9328.728.2
United States253.726.4291.123.9317.226.4260.422.3
Australia102.710.7121.810.0126.910.6131.111.2
          Total fisheries exports961.6 1,217.4 1,199.5 1,166.4 

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 seafood 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 chief executive of the Ministry of Fisheries (or a nominee), two members nominated by the Treaty of Waitangi Fisheries Commission and appointed by the Minister of Fisheries and one other member appointed by the Minister of Fisheries, complete the board's membership.

A block of frozen squid at Sealord Fisheries cold store.

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 and Auckland, provide centralised support for the seafood industry including co-ordination of industry submissions on fisheries policy and legislation, economic research, seafood marketing and trade access, industry input to fisheries stock assessments, information services and publicity. The board advises government on sound fishing management policies by providing information, being available for consultation and through direct input to government decision-making. There is also close liaison with the Seafood Industry Training Organisation in the provision of training at all levels.

1995 saw a further increase in the proportion of the total catch from the Exclusive Economic Zone (EEZ) caught by the New Zealand-owned fleet, with 55 percent of total catches now taken by domestic New Zealand-owned vessels. Investment in large deep-water trawl and long-line vessels by New Zealand companies over the past five years is resulting in a declining use of chartered vessels in the deep-water fishery. The industry is also landing increasing quantities of the catch in New Zealand for processing, with nearly 80 percent of the total seafood catch taken in the EEZ now landed in New Zealand. The extent of further processing is dependent on prices for different product forms in international markets.

Surveyed employment in the seafood industry rose by 1.4 percent to a record level of 10,002 full-time equivalent jobs in 1995. Over the past five years employment in the industry has risen by 20.6 percent or 1,710 jobs, with 1,522 of these additional jobs in the processing sector. Over the same period, total seafood production from the EEZ has declined slightly. The growth in jobs in the processing sector is a direct result of the increasing proportion of the catch landed in New Zealand for further processing. The industry also employs significant numbers of seasonal workers unaccounted for in the above figures.

In 1993 the seafood industry adopted a strategy seeking $2 billion in exports by the year 2000. The ensuing three years have been difficult and the $2 billion target is not longer considered attainable by 2000. Since generating a record $1.2 billion in 1992, seafood export receipts have remained static. This is due to flat international trading conditions for fish products, a significant strengthening of the New Zealand dollar and stable production. As with many other primary industries, the seafood industry is a price taker on international markets. Through further processing and increasing the production of value added and filleted products, the value of exports has been maintained in spite of the unfavourable exchange rate movements.

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.

Statistics New Zealand's (formerly the Department of Statistics) five-yearly Census of Fishing has produced broad economic data on the industry. 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 in table 19.18.

Table 19.18. FISHING INDUSTRY: STATISTICAL SUMMARY

Statistical item1992R1993PChange
 $(000)$(000)percent
Inventories:   
      Closing stocks32,06633,6194.8
      Opening stocks25,81628,3179.7
Income:   
      Sales of goods and services747,827761,5411.8
      Interest, dividends etc.4,5002,911-35.3
      Government grants and subsidies4321,119158.7
      Other income Including extraordinaries7,70118,745143.4
      Total income760,461784,3163.1
          Total income adjusted for inventories766,710789,6183.0
Expenditure:   
      Employment Related:   
          Salaries and wages paid to employees57,81062,1647.5
          Redundancy and severance431..
Salaries and wages to working proprietors (SW to WPs)17,46412,135-30.5
          Levies paid to ACC3,0164,67254.9
          Employer contributions to superannuation schemes376144-61.7
      Fringe Benefit Tax336108-67.9
      Purchases and other operating expenses574,725537,161-6.5
      Interest, bad debts, royalties etc15,07415,5233.0
      Indirect taxes (excl FBT)5,6334,014-28.7
      Depreciation28,69437,72731.5
      Other expenses including extraordinaries4,6785,22911.8
                Total expenditure707,806678,876-4.1
Net profit before tax, extraordinaries, SW to WPs73,345109,36049.1
Net profit before tax, SW to WPs76,368122,87660.9
Fixed tangible assets:   
      Purchases of plant, machinery, vehicles & equipment58,06388,79852.9
      Purchases of land and land improvements2,0534,345111.6
      Purchases of buildings and other construction4,5843,980-13.2
      Total purchases of fixed tangible assets64,69997,12350.1
      Sales of fixed tangible assets16,57416,6870.7
Balance sheet:   
      Shareholders funds or owners equity445,658410,586-7.9
      Other liabilities283,779279,564-1.5
      Total capital and liabilities729,437690,151-5.4
      Fixed tangible assets297,117307,5533.5
      Other assets432,320382,598-11.5
      Total assets729,437690,151-5.4
Ratios:percent  
      Profit margin on sales9.8014.4046.4
      Return on equity16.5026.6061.8
      Return on total assets10.1015.8057.6
      Liabilities structure61.1059.50-2.6

Contributors

  • 19.1 Ministry of Forestry; Statistics New Zealand.

  • 19.2 Ministry of Forestry.

  • 19.3 Ministry of Fisheries; Treaty of Waitangi Fisheries Commission.

  • 19.4 Ministry of Fisheries; New Zealand Fishing Industry Board.

Further information

Forestry

A National Exotic Forest Description. Ministry of Forestry, 1995.

Branching Out—A Career in Forestry. Ministry of Forestry, 1995.

Business Activity Statistics 1995. Statistics New Zealand.

Foresty Handbook. New Zealand Institute of Forestry, 1995.

Forestry Insights (a series of five education resource kits held by most New Zealand schools). Forestry Insights, 1992-1995.

Forestry Projects - Sources of Assistance. Ministry of Forestry, 1995

Forestry Report. Ministry of Forestry (quarterly).

Forestry Sector in New Zealand, The. Ministry of Forestry, 1993.

Forestry Sector Issues. Ministry of Forestry, 1993.

National and Regional Wood Supply Forecasts. Ministry of Forestry, 1993.

New Zealand Forestry Statistics 1993. Ministry of Forestry, 1993.

Regional Studies. Ministry of Forestry, 1994. (10 regions).

Report of the Ministry of Forestry. (Parl paper C16).

Statistical Releases. Ministry of Forestry (series).

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 C5).

Report of the New Zealand Fishing Industry Board (Parl paper C6).

Te Ohu Kai Moana Annual Report to Parliament.

Te Ohu Kai Moana Hui-a-Tau (Annual Meeting) Report.

Te Ohu Kai Moana Corporate Profile and Strategic Plan.

Chapter 20. Energy and minerals

The Clyde dam at night, reflected in the Clutha River.

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 able to meet a substantial proportion of its energy and mineral requirements from its own resources. However, it is not self-sufficient in a number of key 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. In 1987, however, the Crown sold the major part of its interests in the production, transmission and distribution of gas to the private sector company, Fletcher Challenge Limited. Also in 1987, the state's involvement in electricity generation and transmission and in coal production was transferred to two state-owned enterprises established as corporations with commercial objectives—the Electricity Corporation of New Zealand and the Coal Corporation of New Zealand. Since then there has been further deregulation and corporatisation in both the electricity and gas industries to facilitate the development of competition in electricity and gas markets.

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.

20.1 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, 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.

The overall policy is outlined in the Energy Policy Framework Statement, issued in 1992. In 1993 a supporting document, the Renewable Energy Policy Framework Statement, was issued.

Energy markets. Recent initiatives to enhance the performance of energy markets have included the Energy Companies Act 1992, which required electricity supply authorities, the gas trading activities of local authorities and energy boards to transform themselves into companies. The Electricity Act 1992 and the Gas Act 1992 introduced provisions for abolishing area franchises for gas and electricity markets and putting in place information disclosure requirements for the companies involved. These items of legislation also contained provisions for streamlining the safety regimes for the gas and electricity industries.

A joint initiative between the Government and industry involves the development of a wholesale electricity market and the introduction of competition into the electricity generation sector.

Climate change. The government is actively involved in international co-operation that seeks to address the issue of the greenhouse effect and the possible impacts on global and regional climates. The government signed the United Nations Framework Convention on Climate Change (FCCC) at the Earth Summit in Rio de Janeiro in 1992. In September 1993 New Zealand ratified the FCCC, and the Convention came into force in March 1994.

The main greenhouse gases are carbon dioxide (CO2), nitrous oxide (N2O) and methane (CH4). Approximately 90 percent of gross man-made carbon dioxide emissions in New Zealand come from the energy sector. These result mainly from the combustion and transformation of fossil fuels and amounted to 23 million tonnes of carbon dioxide in 1990. Two thousand tonnes of nitrous oxide and 32,000 tonnes of methane were also emitted from New Zealand's energy sector in 1990. The agricultural sector is the main source of these two gases in New Zealand.

A waste minimisation project with energy saving and environmental benefits at the Richmond Fellmongery near Palmerston North.

The government's primary objective is to return net CO2 emissions to their 1990 levels by 2000 and to hold them there. In ratifying the FCCC, New Zealand has accepted a commitment to limit greenhouse gas emissions and to enhance greenhouse gas sinks, such as planted forests.

A key concern is that New Zealand should play its part in reducing emissions of greenhouse gases while maintaining its competitiveness in world markets.

In July 1994, the government announced its climate change strategy. The strategy encompasses a package of measures which will be progressively implemented to reduce New Zealand's carbon dioxide emissions. The package includes: energy efficiency measures; voluntary agreements with industry to reduce emissions; monitoring of emissions; possible strengthening of energy efficiency and renewable energy measures in 1995; and a low level carbon charge to be introduced in December 1997 if emissions are not being adequately limited by then.

In addition to measures to limit emissions, New Zealand is also positively contributing to lowering CO2 levels through new forest planting. This is expected to be the major contributor to achieving stabilisation of net emissions at 1990 levels. In August 1995, a joint public-private sector working party to examine elements of the government's CO2 policy was established. It is designed to gain a better understanding of any alternative measures which could achieve the government's CO2 policy objectives and maintain and enhance New Zealand's economic growth and international competitiveness.

The Government has already taken a number of significant steps which will limit net carbon dioxide emissions, including: a revision of the tax regime to encourage new forest planting; the energy market reforms which provide improved incentives for energy efficiency through prices that more accurately reflect costs and the removal of franchise areas which encourages power companies to compete for customers by providing energy efficiency services; and the establishment of the Energy Efficiency and Conservation Authority.

In addition, government has analysed the resource potential, cost and feasibility of renewable forms of energy, and is committed to periodically updating this work. The Government has also examined whether undue barriers to further development of renewable energy exist.

Energy efficiency and the Energy Efficiency and Conservation Authority. New Zealand shares its commitment to improving energy efficiency with the international community. Energy efficiency and conservation policies are regarded as key components of strategies to: enhance environmental performance, eg by reducing local air pollution and carbon dioxide production; reduce energy costs, thereby increasing economic competitiveness; and foster longer-term security of energy supplies.

The Government established the Energy Efficiency and Conservation Authority (EECA) in 1992 to spearhead New Zealand's drive for improved energy efficiency.

EECA continues the implementation of a national Energy Efficiency Strategy which takes a strategic medium-term and practical approach to increasing New Zealand's energy performance. Features of 1995 activity included:

Expansion of the Energy-wise Companies Campaign which has now secured commitment to energy efficiency implementation by the senior management of 300 (mainly medium to large) companies.

Implementation of an Energy-wise Practice programme providing advice and information to industrial energy users. This programme is to be complemented by the Commercial Lighting and Motors and Drives programmes which highlight cost-effective technological solutions in these particular end-uses.

Analysis to support the introduction of minimum energy performance standards for certain commercial/industrial equipment and appliances.

Contribution to the development of the framework and methodology for voluntary industry carbon dioxide reduction agreements, and subsequent auditing of draft agreements with major energy-intensive sectors and/or companies.

Development of guidelines on wind power consent applications for local authorities and other interested parties, and a draft research and development strategy for non-traditional renewable energy resources.

Security of oil supply. While the security of oil supplies is still an important issue, it is unlikely to be as crucial as it was in the 1970s. This was highlighted by the Gulf crisis in 1990-91, when measures were taken to boost local oil production, in conjunction with International Energy Agency emergency procedures. While the crisis did result in price rises, these were not as great as long lived as was expected, 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.

Unless significant new oil and gas discoveries are made, the contribution of local production to New Zealand's demand for hydrocarbons is expected to decline after 2005 as known oil and gas reserves run down.

Energy research. In 1992 the government made decisions on its priorities for public good funding of research for the five years 1993-94 to 1997-98. These were presented in a document Investing in Science for Our Future, issued by the Ministry of Research, Science and Technology. Subsequently, the government funding agency, the Foundation for Research Science and Technology, prepared strategies to implement the priority research themes.

For energy, funding from the Public Good Science Fund will increase by 43 percent from $4.68 million in 1992-93 to $6.67 million in 1997-98, and greater emphasis will be given to research in such areas as energy efficiency, alternative and renewable sources of energy, and social aspects. The energy research strategy will support the objectives of the Energy Policy Framework and Renewable Energy Policy Framework Statements. The priorities established in 1992 are currently under review for the five years 1997 to 2001.

Trends in primary energy supply and energy consumption

‘Primary energy’ refers to energy as it is first 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. Primary electricity is defined as electricity generated from hydro and geothermal sources. Total primary energy is the amount of energy available for use in New Zealand and therefore includes imports but excludes exports. Table 20.1 shows the historical sources of primary energy supply in New Zealand. The proportion of total energy supply dependent on oil imports decreased during the mid-1980s, falling from 38 percent of the total in 1980 to 14 percent in 1986, but has gradually risen since, with oil imports accounting for 25 percent of total primary energy supply in 1994.

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 20.1. TRENDS IN PRIMARY ENERGY SUPPLY

Calendar yearCoalWoodImported Oil & ProductsIndigenous OilGasHydro*Geothermal*TotalImported oil as % of total

*Hydro and geothermal energy in this table include estimates of the generation by electricity suppliers and “others”. Geothermal is calculated as output of geothermal x 10 (assumes 10% efficiency) + direct use of geothermal heat (13 PJ) and losses (6 PJ).

Source: Ministry of Commerce.

 petajoule
1974 ..62.817.7177.58.014.554.153.6388.345.7
1975 ..59.118.5191.38.316.059.453.2405.847.1
1976 ..60.519.1156.922.037.555.250.7401.939.0
1977 ..57.721.4146.831.563.652.547.8421.434.8
1978 ..53.421.7142.326.859.755.848.7408.434.8
1979 ..47.421.1147.017.939.865.743.8382.638.4
1980 ..50.822.6148.215.736.869.047.3390.438.0
1981 ..51.423.9139.221.045.170.144.7395.435.2
1982 ..50.923.3123.732.379.965.245.4420.729.4
1983 ..56.021.9124.231.586.470.469.1459.427.0
1984 ..52.722.2116.140.8109.572.681.2495.123.4
1985 ..52.124.0114.231.4140.170.276.9508.922.4
1986 ..57.722.977.558.6168.378.780.4543.914.2
1987 ..51.422.990.159.4162.378.069.8534.016.9
1988 ..49.424.579.861.7177.881.761.4536.414.9
1989 ..51.325.793.657.0182.584.372.7567.116.5
1990 ..52.425.8112.446.9181.782.988.2590.219.0
1991 ..46.827.3120.346.6197.781.093.5613.319.6
1992 ..49.326.1126.646.3209.875.394.3627.720.2
1993 ..54.527.5126.444.0204.083.699.6639.619.8
1994 ..42.927.3156.937.3190.591.793.7640.324.5

Consumer energy is energy used by final consumers. It 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 of solid fuels (coal and wood), oil, gas and electricity is shown in table 20.2. The chain of energy supply and demand in the major sectors of the economy during 1994 is shown in table 20.3. The same data is summarised as percentages of total energy demand in table 20.4.

PRIMARY ENERGY SUPPLY

Possible future trends in consumer energy demand and primary energy requirements are examined in the Ministry of Commerce publication Energy Supply and Demand Scenarios to 2020. The central ‘baseline scenario’ presents a view of the energy sector to the year 2020, taking into account current government policies, observed trends and a range of assumptions regarding future economic and other influences. The baseline is augmented with the exploration of alternative scenarios through varying the underlying assumptions.

Table 20.2. TRENDS IN CONSUMER ENERGY USE

Calendar yearSolid*OilGasElectricityGeothermal†Total

* Solid fuels include wood.

Direct use of geothermal.

Source: Ministry of Commerce.

 petajoules
19545559216NA132
19644890230NA170
197441151758NA257
198440140488330341
198535136548431340
198641141538832355
1987421405410522363
198855147529413361
198957154449712364
1990711624010011384
1991731604110212388
1992691714110013394
1993751714010514405
1994721854110614418

Table 20.3. ENERGY SUPPLY AND DEMAND, 1994

 Source of energy
Solid fuelGasHydroGeothermalElectricityOilTotal
Source: Ministry of Commerce.
 petajoules
Supply       
Indigenous production102.9190.891.793.7-90.0568.9
Imports0.1----208.4208.5
Exports32.8----60.192.9
Stock change-0.3---3.84.1
International transport-----40.140.1
          Total primary energy supply70.2190.591.793.7-194.2640.3
Transformation       
Electricity generation-4.1-54.5-91.7-74.7118.6--106.4
Liquid fuels production-45.3---18.4-26.9 
Losses and own use-2.0-4.8--6.0-11.9-8.0-32.7
          Total, transformation-6.1-104.6-91.7-80.7106.710.4-166.0
Non-energy use--42.3----14.5-56.8
          Consumer energy (calculated)64.143.6-13.0106.7190.1417.5
Demand       
Agriculture0.7---3.916.220.8
Industrial57.029.5-10.445.110.2152.2
Commercial6.35.4--20.27.539.4
Domestic7.64.4-2.637.20.852.6
Transport0.11.8--0.2150.9153.0
          Consumer energy (observed)71.741.1-13.0106.6185.6418.0
Discrepancies-7.62.5--0.14.5-0.5

The following points should be considered when examining table 20.3:

Supply—the supply data is compiled from monthly returns. Solid fuel includes coal, coke, peat and wood. Figures for wood and geothermal are estimated. Approximately 80 percent of geothermal is used as an input to electric power generation. The rest is used directly as a heat source. LPG production is included in indigenous oil production.

Total primary energy supply—total primary energy supply is the 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 of energy from one form to another always results in conversion losses. These losses are shown as negative entries in the table. Efficiencies for electricity generation are assumed to be 33 percent for gas plants and 35 percent for coal (at December year 1994). Hydro is taken as being 100 percent efficient and geothermal as 10 percent.

Developing alternative energy technologies—Wellington's demonstration wind turbine.

Consumer energy (calculated) = total primary energy supply + total transformation + non-energy use. Total electricity generation in the table includes estimates of the generation by private plants and electricity suppliers.

Energy demand—consumption data is estimated from information about where and how energy is used. Transport refers to road, rail and domestic air transport. Direct use of geothermal energy for commercial consumption is included in the domestic figure.

Consumer energy (observed) = agriculture + industrial + commercial + domestic + transport.

Table 20.4. ENERGY USED BY CONSUMER GROUPS, 1993

 IndustryCommerce and agricultureTransport excluding internationalHouseholdThermal electricity generation

* Geothermal only.

Source: Ministry of Commerce.

 percent
Oil6.739.498.61.50.0
Solid fuel (coal and wood)37.411.60.114.43.1
Natural gas19.49.01.28.440.9
Electricity (including own use and direct use of geothermal)36.540.00.175.756.0*
          Total100.0100.0100.0100.0100.0

20.2 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 central government operated station was the Lake Coleridge scheme opened in 1914. The first thermal station was Meremere which opened in 1958. In recent years hydro power has represented 70 to 80 percent of total electricity generation, depending on demand, rainfall and lake storage conditions.

The New Zealand electricity industry is not vertically integrated. Generation is dominated by the Electricity Corporation of New Zealand (ECNZ), a state-owned enterprise, which supplies over 95 percent of all electricity. The operation of the national grid is carried out by Trans Power New Zealand, the former transmission arm of ECNZ that was established as an independent state-owned enterprise on 1 July 1994. Distribution to final consumers—industrial, commercial and household—is carried out by energy companies which have been established under the Energy Companies Act 1992 to succeed the former electrical supply authorities.

Further restructuring of the wholesale electricity market will take effect in February 1996 with the establishment of a new state-owned enterprise. This is expected to reduce ECNZ's market share to 60 percent of all electricity generation. While the new state-owned enterprise will have a market share of around 27 percent. The remaining 13 percent of electricity generation will be provided by independent electricity producers and the Taranaki Combined Cycle gas plant.

Electricity Corporation of New Zealand. ECNZ has 40 power stations, of which 38 are operational, which range in capacity from 3 MW (megawatts) to 1,000 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 of Lake Dunstan behind the dam. The final stage of filling the lake was completed in late 1993 and the station was officially opened in April 1994. The Meremere coal-fired power station was mothballed in October 1991 due to age, operating cost and asbestos and pollution problems. Arnold (3 MW) was sold in April 1995.

Despite an abundance of rivers suitable for generating cheap hydro power, the capacity to store water for hydro generation in New Zealand is limited. Growing demand for electricity has resulted in the development of new and alternative sources for power generation. The latest major project to be proposed by ECNZ is the construction of the Taranaki Combined Cycle gas plant near Stratford. This is expected to have a generating capacity of up to 400 MW. A combined cycle power station uses the waste heat from a gas turbine engine to power a stream turbine engine and is more energy efficient than either process on its own.

Significant generation constraints developed in the winter of 1992, caused by exceptionally low in-flows to the major South Island hydro storage lakes in 1991 and early 1992. In the event, major power cuts were avoided by a combination of increased thermal generation, reduced hours of supply for domestic water heating and public street lighting, and voluntary savings by consumers. Following the crisis, the government appointed an Electricity Shortage Review Committee to investigate its causes. The committee recommended a number of changes, which included greater consultation and operational co-ordination between ECNZ and electricity distributors, increased encouragement of energy efficiency measures and that ECNZ should review the standards for security of supply built into its operational planning. A higher standard (allowing a one in 60 years drought as opposed to a one in 20 years drought) has been adopted as a temporary measure pending completion of the review of operational planning, and the remaining measures are progressively being implemented by ECNZ and electricity distributors.

Trans Power operates the New Zealand transmission system. Its high voltage DC link between the South and North Islands has been upgraded from 600 MW to 1,240 MW (south to north) and from 200 MW to 800 MW (north to south). Three new cables were laid in 1991 and commissioned in 1992, complementing the three original cables laid in 1965.

Table 20.5. ELECTRICITY CORPORATION OF NEW ZEALAND PROFIT STATEMENT

ItemYear ended 31 March
199319941995
Source: Electricity Corporation of New Zealand.
 $(000)$(000)$(000)
Gross income1,643,4491,700,1411,519,637
Operating expenses excluding abnormal costs767,138796,438850,451
Net finance costs345,326332,03087,554
Profit before abnormal costs530,985571,670581,532
Abnormal costs125,817--
Profit before taxation405,168571,673581,532
Taxation75,567162,385195,677
Profit after taxation329,601409,288385,855
Extraordinary expense---
Profit after taxation and extraordinary expense329,601409,288385,855
Less: Dividends280,436438,445856,779
Transfers from reserves(21,313)2,96344,283
Total appropriations259,123441,408901,062
Retained earnings for the year70,478(32,120)(515,207)
Opening retained earnings314,071535,648520,636
Prior period adjustments151,099--
Opening retained earnings (restated)465,170535,648520,636
Closed retained earnings535,648503,5285,429

Table 20.6. ELECTRICITY CORPORATION POWER STATIONS

StationInstalled capacity at 31 March 1994Energy generation year ended 31 March
Number of unitsMW*Static head1992199319941995†

* ‘In-situ maximum’ rating.

Year ended 30 June.

Sold in April 1995.

Source: ECNZ.

HydrometreskWh(million)
Arapuni8175539059157321,130
Aratiatia38434353351262439
Atiamuri47925304303239386
Karapiro39630565569460645
Mangahao5112731099837119
Maraetai10360618828826891,114
Matahina27261273266188314
Ohakuri411235424423332522
Rangipo2120206553579400620
Tokaanu4210208792781492963
Waikaremoana—       
       Kaitawa234135    
       Piripaua237113488579393492
       Tuai358206    
Waipapa35116255259219327
Whakamaru410038531535428648
Arnold‡231327262413
Aviemore4220379797291,0071,044
Benmore6540922,4451,7742,4652,646
Clyde443259..1,2782,2832,488
Cobb632594195176156223
Coleridge935149222229235267
Highbank12510186846498
Manapouri76001774,3713,8874,4764,700
Ohau ‘A’4248581,2908751,2011,218
Ohau ‘B’4212481,0547341,0261,050
Ohau ‘C’4212481,0627421,0331,056
Roxburgh8320461,5571,4141,7711,898
Tekapo ‘A’12530158102144136
Tekapo ‘B’2160146953700858551
Waitaki710521536392548580
          Subtotal, hydro1244,768...21,36919,68222,16225,687
Thermal       
Huntly41,000...5,5255,5775,6653,954
Marsden2114...-581-18-18
Meremere6-...-3---
New Plymouth5580...1,0331,530848207
Ohaaki5104...891856856723
Otahuhu6135...-1865-19-18
Stratford4198...372497406214
Wairakei9153...1,1741,2571,2991,288
Whirinaki4216...12411
          Subtotal, thermal452,500...8,9709,8879,0386,351
          Total1697,268...30,93929,56931,20032,039

Electricity generation. The total electricity generated for the year ending 31 March 1994 was 32,453 GWh of which 72 percent was generated by hydro stations, 20 percent from oil and gas, 7 percent from geothermal and the remaining 1 percent from coal.

As at 31 March 1994, the Electricity Corporation had 30 operational hydro-electric stations with a capacity of 4,768 MW (66 percent of total capacity) and eight operational thermal stations (plus Meremere which is currently non-operational) with a capacity of 2,500 MW (34 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 are preferred, given satisfactory hydrological conditions, for power production. A small amount of electricity is generated by the Electric Power Companies (EPCs) from 23 small plants. These small plants have capacities ranging from 0.2 to 78 MW and a total capacity of 317 MW.

Table 20.7. TOTAL ELECTRICITY GENERATION AND DISPOSAL

Year ended 31 MarchElectricity CorporationSupply authoritiesOther sourcesTotalSold retailNon-productive
Source: Ministry of Commerce.
 Gigawatt hours
198726,9901,163728,16025,3492,811
198827,4751,1981328,68625,8052,883
198928,1781,2811329,47226,6982,774
199028,9751,1493330,15727,3652,792
199129,5831,1868930,85827,8193,039
199230,33981774931,90528,6093,296
199329,56985682331,24827,7863,462
199431,19977647832,45329,2283,225
199531,7521,08358233,41729,7803,636

Table 20.8. ELECTRICITY SUPPLIED BY ELECTRICITY CORPORATION

Year ended 31 MarchHydroGeothermalFossil fuelsWindTotal
Source: Ministry of Commerce.
 Gigawatt hours 
198820,8911,1835,424 27,498
198921,9001,2375,052 28,189
199020,8231,8056,374 29,002
199121,8452,0685,643 29,556
199221,3692,0656,905 30,339
199319,6822,1137,774 29,569
199422,1622,1556,883 31,200
199524,2432,0525,476131,772

The Eco House was built by Wellington City Council in 1995. A major tourist attraction, this environmentally friendly house is constructed from insulated concrete blocks, has wool ceiling insulation, draught-proof exterior doors, double-glazed windows, energy-efficient light bulbs, a heat pump air conditioner in the living room, a night store heater in the hall and a special wall that traps heat and releases it into the house at night.

INTERNATIONAL COMPARISON OF ELECTRICITY PRICES IN OECD COUNTRIES
CountryCost per kWh
IndustrialDomestic
Source: ECNZ Annual Report 1994-95, based on “Energy prices and taxes, 1st quarter 1995,” IEA.
 NZ cents
Japan26.137.0
Switzerland19.524.3
Portugal18.627.5
Germany15.830.1
Italy14.724.6
Spain12.527.1
OECD12.017.6
OECD Europe11.521.1
Austria11.225.4
Turkey11.110.9
United Kingdom10.618.9
Denmark10.331.0
Luxembourg10.317.9
Ireland10.020.1
Netherlands9.419.3
Belgium9.226.1
Greece9.215.9
France8.622.8
Finland8.113.7
USA7.212.6
Australia6.611.1
Sweden6.214.5
New Zealand6.211.4
Canada5.89.0
Norway5.511.9
Mexico4.16.4

Electrical Supply Authorities. The Energy Companies Act 1992 provided for the corporatisation into electric power companies (EPCs) and resolution of the ownership of the electrical supply authorities (ESAs) which operated New Zealand's distribution and retail electricity system. Previously they had been local government entities: the 37 electric power boards were special purpose local authorities, and 11 district and city councils had also owned their own electricity supply operation. In those EPCs which are successors to the former electric power boards, the shareholdings have a mixture of local authority, trust, direct consumer and investor ownership. The 11 former municipal electricity departments have also been corporatised and the resulting companies are all majority owned by local authorities.

Some mergers took place as part of the corporatisation process, and additional mergers have occurred, and are subsequently continuing to occur. It is expected that the restructuring will provide a basis for further investment in the energy sector. The EPCs generally buy electricity in bulk from ECNZ and then on-sell it to individual customers. Some EPCs have their own generation capacity, meeting part of their needs. ECNZ also sells power directly to several major industrial users, and to Tranz Rail for the electrified portion of the North Island Main Trunk Railway.

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 ended. The council will have a transitional role in monitoring the impact of the electricity reforms on the rural community, and the Electricity Act 1992 provides for its dissolution not later than 1 April 1997.

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 the 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). As earlier noted this has been raised to a 60 year drought standard as a temporary measure, following the recommendation of the Davison Committee.

Electricity markets. Use of electricity in the New Zealand economy is shown in table 20.9. During 1994-95 industrial users accounted for 45 percent of the total demand, household demand was 34 percent of the total and commercial usage was 21 percent.

Table 20.9. ELECTRICITY MARKETS

Year ended 31 MarchDomestic*IndustrialCommercialFarming†Public lighting‡Rail and bus traction‡TotalElectricity account holders

* Includes domestic water heating.

Now included in ‘Industrial’.

Now included in ‘Commercial’.

Source: Ministry of Commerce.

 Gigawatt hours
19879,42410,4724,7225671333125,3491,488,253
19889,42310,7324,9165661383025,8051,509,209
19899,51011,0655,2506861375026,6981,528,550
19909,82411,1875,4616551166627,3091,547,573
199110,26411,2005,4966871106127,8181,581,879
199210,47412,5845,550......28,6081,599,037
199310,12412,2655,397......27,7861,607,894
199410,25613,3925,580......29,2281,621,262
199510,29513,3046,181......29,7801,638,090

Wholesale electricity market. The government established the Wholesale Electricity Market Development Group (WEMDG) in June 1993, to provide the government with proposals for developing a wholesale market in electricity that, consistent with sustainable development, would ensure that electricity is delivered at the lowest cost to the economy as a whole.

WEMDG, consisting of representatives from ECNZ, Trans Power, EECA, an independent generator, the energy companies and consumers, released its final report to government in September 1994. WEMDG's key recommendations were that steps should be taken to set up a new competitive wholesale electricity market at the earliest opportunity, but on an incremental basis.

In a related development, secondary market trading in ECNZ's current hedging contracts for wholesale electricity supply has commenced, under the auspices of the Electricity Market Company Limited (EMCO). EMCO is a joint venture between ECNZ and the Electricity Supply Association of New Zealand established to develop the necessary framework to enable the emerging wholesale electricity market to operate efficiently and effectively. The first market is for participants in the energy market to trade wholesale electricity products. This market opened in July 1994.

20.3 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 system's 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 confined to the North Island.

All of New Zealand's current hydrocarbons are produced from fields in the Taranaki region. Six fields were producing during 1994 (Kapuni, Maui, McKee, Kaimiro, Ngatoro and Waihapa/Ngaere). The Ahuroa and Tariki fields are expected to commence production in 1996, and the Kupe field two to three years later.

In the 1994 calendar year natural gas production was 222 billion feet3, down from 230 billion feet3 in 1993. Natural gas was produced from the Kapuni, Maui, McKee, Kaimiro, Ngatoro and Waihapa fields with production dominated by Maui (71.5 percent of the total production) and Kapuni (22.7 percent). These were followed by McKee (3.2 percent), Waihapa (2.3 percent) and Kaimiro (0.2 percent) and Ngatoro (0.1 percent).

Condensate production in 1994 was 915,805 tonnes, down 1.8 percent on the 932,688 tonnes produced in 1993. Condensate is produced from the Maui and Kapuni fields, with Maui dominant with around 82 percent of the total.

Crude oil production in 1994 was 856,139 tonnes, down 5.9 percent on the 909,550 tonnes produced in 1993. Crude is produced from the McKee, Kaimiro, Ngatoro and Waihapa fields. In 1994 almost 60 percent of total crude production came from Waihapa, around 35 percent from McKee, with Ngatoro and Kaimiro contributing only a small percentage of the total (4 percent and 1 percent respectively).

A second production platform for the Maui field (‘Maui B’) was installed in 1993 off the Taranaki coast. This drilling platform operates as an unmanned facility, connected by pipelines to the main Maui A platform. Production commenced early in 1993.

The average daily production of crude oil, condensate and natural gas and currently identified recoverable resources are set out in tables 20.10 and 20.11.

Table 20.1. RECOVERABLE RESOURCES AND PRODUCTION OF OIL AND CONDENSATE*

FieldEstimated reservesApproximate average daily production

* At 1 January 1995.

Proportions based on energy content (petajoules) of reserve estimates.

Source: Ministry of Commerce.

 millions of barrelsbarrels per day
Maui100.3718,749
Waihapa/Ngaere2.105,000
Kapuni10.203,500
McKee13.456,000
Kaimiro (deep)0.15109
Kaimiro (shallow)0.81488
Kupe16.30-
Tariki2.00-
Ahuroa0.70-
Ngatoro0.34650
          Total146.4234,496

Table 20.11. RECOVERABLE RESOURCES AND PRODUCTION OF NATURAL GAS*

FieldEstimated reservesApproximate average daily production

* At 1 January 1995.

Source: Ministry of Commerce.

 billion feet3million feet3/day
Maui1,579377.0
Waihapa/Ngaere36.5
Kapuni50080.0
McKee6218.0
Kaimiro (deep)43.4
Kaimiro (shallow)10.4
Kupe256-
Tariki53-
Ahuroa24-
Ngatoro- -0.7
          Total2,482486.0

Industry

Petroleum imports and refining. About 23 percent of New Zealand's net petrol needs are produced by the synthetic petrol plant at Motunui. The Motunui plant uses natural gas from the Maui and Kapuni fields to make petrol. Synthetic petrol is either exported, sold directly or blended at the refinery with conventionally produced petrol.

The bulk of New Zealand's petroleum product needs are produced at New Zealand's only oil refinery at Marsden Point. The main refinery feedstocks are imported crude oil and indigenous crude oil and condensate. Locally produced hydrocarbons make up 40 to 45 percent of the refinery's intake. Most of New Zealand's crude oil imports come from Saudi Arabia and the United Arab Emirates. 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, amounting to around 8 PJ in 1994, which is equivalent to 4 percent of local consumption.

Indigenous crude oil and condensate production, along with imports and exports are summarised in table 20.12.

Table 20.12. 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
198758.69102.82161.514.66
198870.66112.81183.4714.46
198979.17137.88217.0527.56
199081.55143.28224.8340.24
199185.28143.84229.1244.88
199280.26141.52221.7840.50
199384.70158.38243.0847.58
199481.52175.84257.3651.35

Use of natural gas. During 1994 around 30 percent of the gas produced in New Zealand was used by thermal power stations at New Plymouth, Huntly and Stratford to produce electricity. Another 25 percent was used to produce synthetic petrol at Motunui and 20 percent went to produce methanol at Waitara and 3 percent to produce urea at Kapuni. Industrial and commercial users consumed around 19 percent. There are a large number of domestic users but, in total, 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 transport sector directly uses around 1 percent of the gas produced in the form of compressed natural gas (CNG).

Distribution. Over 32 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 products to retailers and bulk customers by road tanker.

Natural gas produced in Taranaki is piped south to Wellington, north as far as Whangarei, east to Gisborne and Napier/Hastings, and to Taupo in the central North Island. 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 and supplies gas to the Huntly power station. LPG is transported from Taranaki to other North Island centres by sea and rail and to the South Island by sea. Much of this is used by industry or supplied as bottled gas. LPG is reticulated in some parts of Dunedin. LPG is also used as a transport fuel.

Table 20.13. GAS PRODUCTION

YearNet natural gas production*Manufactured gas productionTotal

* Excludes reinjected gas, LPG extracted, gas flared and production losses.

Source: Ministry of Commerce.

 petajoules
1987160.090.15160.24
1988174.660.11174.77
1989180.580.10180.68
1990179.650.07179.72
1991195.86-195.86
1992205.96-205.96
1993199.86-199.86
1994186.04-186.04

Table 20.14. NATURAL GAS SUPPLY

YearDirect sales*Reticulated salesStock changeTotal production†

* Direct sales include sales to ECNZ, the synthetic fuels plant and all other customers supplied directly.

Totals do not add due to rounding.

Source: Ministry of Commerce.

1987119.0240.910.31160.24
1988133.1741.290.33174.79
1989139.8140.630.24180.68
1990140.2039.240.26179.70
1991151.7943.640.42195.85
1992164.8340.830.32205.98
1993158.8640.690.30199.85
1994142.0643.700.29186.05

Coal

Preparing tubing to pump down sand and water, to fracture coal seams and release methane gas at Ohai.

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 in Waikato, Westland and Southland 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 62 percent and bituminous coal 32 percent.

The New Zealand coal industry faces competition from alternative energy sources, particularly for use in electricity generation but, despite this, production has climbed steadily since the deregulation of the industry in the 1980s. 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 developed rapidly in recent years and international demand for specialist bituminous Westland coals remains good.

Long term, the outlook for coal is positive. The introduction of new energy conversion technologies for coal such as underground gasification and the use of the gas in combined cycle power stations, may allow coal to compete with natural gas as a fuel for power generation on cost and thermal efficiency grounds especially when Maui gas production starts to decline. The newly-developing pollution control technologies may also help to resolve some of the potential environmental impacts of coal use in thermal utilities, in particular the level of carbon dioxide emissions.

New Zealand has 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.

Other coalfields with the potential to be major producers are Waikare, Mokau and Kawhia (sub-bituminous) and St Bathans, Roxburgh and Ashers-Waituna (lignite).

Table 20.15. RECOVERABLE COAL RESOURCES*

Coal regionMeasuredIndicatedInferredTotal

*Resources do not equate with reserves which are that part of the recoverable resource that can be extracted under current technological and economic conditions.

Source: Ministry of Commerce.

 million tonnes
Waikato205.32319.64189.16714.12
Taranaki0.15147.0426.25173.44
          North Island total205.47466.68215.41887.56
Nelson-Westland32.71220.3290.35343.38
Canterbury0.000.012.172.18
Otago331.75758.7763.721,154.24
Southland0.765,733.31522.406,256.47
          South Island total365.226,712.41678.647,756.27
          New Zealand total570.697,179.09894.058,643.83

Exploration. Coal exploration remains at a low ebb. Except for on the West Coast, recent exploration concentrated on extending reserves within existing mining licence areas. On the West Coast, CoalCorp continued its investigations of the Mt Davy/Upper Seven Mile area in Greymouth and intends to investigate the Upper Waimangaroa sector of the Buller coalfield in conjunction with a joint venture partner. Greymouth Coal Limited has been granted a new prospecting licence for its large Rapahoe prospect and is also applying for a mining licence. There has also been a general increase in interest in New Zealand's coal prospects with a number of companies carrying out reviews of New Zealand's potential.

Production and mining. During 1994 coal production totalled 3.03 million tonnes (MT), a decrease from the 3.091 MT produced in 1993. Opencast operations dominated production with 2.50 MT (83 percent) compared with 0.54 MT (18 percent) produced from underground mines. This represents a reversal of a long-term trend. In 1980, 69 percent (1.49 MT) of all production was from opencast mines, in 1985, 72 percent (1.74 MT) and in 1990, 78 percent (2 MT) was from opencast mines. In 1993, 86 percent was from opencast mines.

Sub-bituminous coal continues to dominate output with 1.52 MT (50 percent) produced in 1994 compared with 1.27 MT of bituminous coal (42 percent) and 0.25 MT of lignite (8.2 percent). The value of coal produced in New Zealand in 1993 was $193.7 million up from $177.45 million in 1992.

Coal production in the North Island was 1.30 MT in 1994, a decrease from 1.69 MT produced in 1993. The majority of this was produced in the Waikato region. The number of operating mines in the Waikato was 17. No production was recorded from Taranaki during 1994. Opencast mines continued to dominate production with 1.08 MT produced by opencasts in the Waikato. All North Island coal produced is of sub-bituminous rank. Waikato remains New Zealand's largest coal producing region accounting for 43 percent of total 1994 production.

COALFIELDS

North Island production in 1993 had a value of about $83.44 million, around 7 percent greater than the previous year ($77.75 million). This represented 43.1 percent of New Zealand's total coal production by value in 1993.

In the South Island coal production reached 1.74 MT in 1994, 0.3 MT more than in 1993. In the South Island there are 38 operating mines. 28 of these are on the West Coast, of which 13 underground mines produced 0.17 MT of coal in 1994. This is in contrast to the North Island where three underground mines produced 0.214 MT. All three ranks of coal are produced from South Island mines. The Webb opencast mine was the largest bituminous coal producer at 512,152 tonnes. The second largest mine producing bituminous rank coal is the Stockton opencast in the Buller Coalfield which produced 470,212 tonnes in 1994. The Wairaki underground mine at Ohai was the largest producer of sub-bituminous coal in Southland with 151,898 tonnes mined during 1994. The Newvale opencast near Gore was the largest lignite mine and produced 116,760 tonnes of coal in 1994 compared with 110,523 tonnes produced in 1993.

South Island coal production accounted for 57 percent of the total production. South Island coal production in 1993 was valued at $110.23 million or 56.9 percent of total coal value, an increase of $10.54 million over the previous year. High value bituminous coal exports represent a large proportion of the total value of production and account for much of the increase in value of production.

Table 20.16. COAL PRODUCTION 1993-1994

Coal regionTotal 1993Opencast 1994Underground 1994Total 1994
Source: Ministry of Commerce.
 tonnes
Waikato1,685,2021,082,992214,2061,297,198
Taranaki439   
          North Island total1,685,6411,082,992214,2061,297,198
West Coast1,054,1051,164,375171,5571,335,932
Canterbury2,7172,2562,256 
Otago55,14651,40251,402 
Southland293,170196,350150,058346,408
          South Island total1,405,1381,414,383321,6151,735,998
          New Zealand total3,090,7792,497,374535,8213,033,196

Use of coal. During 1993 industrial usage accounted for 73 percent of coal used in New Zealand. This comprised 33 percent used in basic metal manufacturing and 40 percent in other manufacturing industries (primarily the cement, lime, meat, wool and timber industries). The BHP NZ Steel plant at Glenbrook, south of Auckland, is the largest and most consistent single user of coal in New Zealand. Commercial usage accounted for 13 percent of the total, electricity generation for 9 percent and domestic use for 4 percent.

The demand for coal as a feedstock in thermal power stations has declined in recent years as alternatives, especially Maui gas, have become more cost competitive. ECNZ's dual-fired thermal power station at Huntly (980 MW) is the only operational station that can burn coal. Small quantities of coal (amounting to around 0.2 MT of coal annually) were burned to maintain the operation of coal-handling machinery at Huntly.

Of the 3.09 MT of coal produced in 1993, approximately 0.8 MT of bituminous coal was exported. Japan, India and China remained New Zealand's dominant coal export markets accounting for 39 percent, 28 percent and 16 percent respectively of total coal exports.

Before the first trial shipments of West Coast coal left New Zealand for Japan in the mid-1970s, little was known internationally about the special qualities of New Zealand bituminous coal. International customers and especially those in Japan, however, soon realised that New Zealand export quality coals had qualities which made them suitable for use in the chemical and steel industries. These properties include a consistently low ash and sulphur content, a high fixed carbon content, and a crucible swelling number equal to, or greater than, 9. Today, most of New Zealand's high-quality bituminous export coal comes from the Buller Coalfield. In the Buller Coalfield, CoalCorp's Stockton No 2 and Webb opencast mines currently have an annual production of 982,364 tonnes (1994). The coal is transported from the coal face to a coastal loading facility at Ngakawau by aerial cableway. From Ngakawau, the coal required for export is railed across the Southern Alps to the east coast port of Lyttelton. Over the period 1980 to 1993, coal exports increased significantly from 93,000 tonnes to 788,000 tonnes.

Table 20.17. COAL PRODUCTION BY RANK, 1994

Coal regionBituminousSub bituminousLignite
Source: Ministry of Commerce.
 tonnes
Waikato1,297,198  
Taranaki   
          North Island total1,297,198  
West Coast1,265,32869,071 
Canterbury 1,533 
Otago 2,256 
Southland 150,05851,402
          South Island total1,265,328219,129196,350
          New Zealand total1,265,3281,516,327251,541

Peat. Peat was produced in Southland (48,175 tonnes) and on the Hauraki Plains (63,666 tonnes) predominantly for manufacture of horticultural potting medium.

20.4 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 2,150 and 4,620 MW of electricity generation capacity.

Three deep exploration wells of over 3,500 metres were drilled at the Ohaaki steam field, two of which are currently producing steam.

Table 20.18. 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.

Source: Ministry of Commerce.

 °Csq kmpetajoulesmegawatts (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

20.5 Renewable energy

New Zealand produces a large proportion of its electricity from renewable resources. Hydro resources account for 70-80 percent of electricity generation and geothermal resources contribute a further 7 percent. There is increasing interest in non-traditional renewable resources (such as wind, biofuels, solar, and wave energy) for electricity generation and other uses.

Wind

With present technology, windpower is likely to be the most significant non-traditional renewable resource available in New Zealand in the future at a reasonable cost. Wind speeds have been measured at 12 potential wind farm sites in New Zealand. The average wind speeds at these sites range from 6.4 metres per second to 10.5 metres per second which is very favourable by international standards.

New Zealand's potential wind resource is huge. However, the cost of converting much of this wind power to electricity is estimated to be above the expected cost of traditional forms of generation for some years ahead. It is nevertheless possible that some wind farms in favourable conditions could produce electricity at costs that are competitive with traditional generation within the next few years. A demonstration wind turbine was installed in Wellington by the Electricity Corporation of New Zealand in 1993 and generated 1 GWh of electricity in the year to June 1995. Construction of a wind farm in the Wairarapa began in 1995.

Wind power is becoming more competitive as technological improvements and economies of scale in production bring costs down, and as the options for further development of traditional forms of energy become more expensive.

Biofuels

Wood residues from pulp and timber processing, forest arisings from plantation harvesting, short rotation fuelwood plantations, domestic firewood, and cereal straw from grain harvests are sources of energy that can be considered renewable if the biomass is replanted to replace each harvest.

Around 50 percent of wood residues are already used on-site to produce energy for industrial processes and it has been estimated that more energy (280 GWh) could be produced annually from wood residues at a reasonable cost. Fuelwood plantations have even greater potential (approximately 2,000 GWh per year) but are more expensive. Some further energy from forest arisings is expected to be available at a similar cost.

Wood makes a small but significant contribution to energy supply for household heating, and several small short-rotation woodlots have been harvested for firewood. Woodlots for significant additional amounts of domestic firewood and cereal straw resources are estimated to be more expensive than traditional forms of energy.

Biogas, a mixture of carbon dioxide and methane, can be obtained from anaerobic decomposition of purpose grown crops or waste organic materials such as straw, chicken manure or vegetables. It is produced in biogas reactors or effluent ponds. The number of biogas plants currently in operation is very small. Biogasification plants are operated in the meat, dairy, pulp and paper, fish processing, rendering, vegetable processing and pig and poultry industries in New Zealand. It is estimated that there are several hundred thousand tonnes of organic material suitable for biogasification produced in New Zealand each year.

Biogas is produced from several municipal sewage treatment plants and is also produced from mixed municipal waste in landfills. Two landfill sites in Auckland, (Greenmount and Rosedale) and one in Wellington (Silverstream), use landfill gas to produce electricity. Several other landfills are being investigated for their methane producing potential.

Solar

Passive solar space heating through building designs that absorb, store and release heat from sunlight are potentially New Zealand's cheapest form of energy. Passive solar features are not explicitly included in most building designs at present. Such buildings need not cost any more than conventional designs and they could save considerable energy over the life of the building.

Active solar space heating (using mechanical means to move the transport medium to where it is needed to heat rooms) and both active and passive solar water heating are currently more expensive than traditional forms of energy but are commercially available. It has been estimated that at present fewer than 5,000 New Zealand houses have solar water heating.

Sun sessions—selling the idea of solar energy.

Solar energy can be used to produce electricity from photovoltaic cells and is used in New Zealand on a very small scale, mainly to provide power for small electronic installations in remote sites. Further use of photovoltaic energy is likely to be limited because of its cost.

Wave

New Zealand's potential energy resource from waves is considerable. Wave energy systems have been developed overseas but face major design challenges before they can be proven to be practicable. The relatively low tidal ranges in New Zealand suggest that there is little prospect of harnessing tidal energy.

ENERGY AND MINERAL PRODUCTION: 1860-1994
Year ended 31 DecemberGold production*Coal production†Gas production‡GasworksElectricity generation§
HydroSteamOil/gasTotal

* Export figures only to 1940.

Underground mining only 1925–1940.

From 1975 includes natural gas. Unit of measurement from 1985 onwards is petajoules.

§ Until 1928 includes electricity generated by industry but not for public supply.

Included in steam.

Source: Statistics New Zealand.

 kgtonnes(000)m3(m)noKWh(m)
186014..............
186516,100..............
187015,200..............
18759,900..............
18808,4004546.917........
18856,20086211.420........
18905,3001,16712.127........
18958,2001,27211.427........
190010,5001,73822.330........
190514,6002,45736.138........
191013,4003,38658.848......18
191511,8003,31178.656......37
19206,0003,04396.350......117
19253,2002,148105.950......310
19303,7002,582117.346......710
19354,8002,148108.146......916
19405,3003,817............
19453,6004,228146.644......2,274
19502,1004,067156.9442,90711943,030
19557003,767146.5374,117230194,366
19609004,147160.4335,48387616,361
19653003,545163.8287,7531,9650.29,712
19703003,014180.22410,1902,7092712,926
1975802,871836.71214,1973,99216218,352
19802002,1971,069.0..18,6922,80910621,607
19859002,564133.04‡..20,1076,34331426,764
19904,6292,588179.72-23,0217,97330,994
199311,1703,101199.86-23,2439,36532,609
199410,118P3,033186.04-24,540P7,386P31,926P

20.6 Minerals

New Zealand's mineral resources are diverse. Gold, ironsand, clays, and rock aggregates are the main commodities mined. Total production of non-metallic minerals in 1994 was valued at about $200 million, while the value of metallic minerals totalled about $295 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. 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 (see also section 16.2: Environmental and Resource Management).

Metals

Iron. New Zealand has a large resource of iron ore in the black sands of the west coast beaches between Greymouth and Westport in the South Island and from Wanganui to Muriwai in the North Island. BHP 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.

GOLD PRODUCTION By mining operations

Ilmenite and other heavy mineral sands. The beaches between Westport and Greymouth contain heavy minerals including significant quantities of ilmenite, a source of titanium dioxide, which is used as an opacifier and a pigment in paint, paper, plastics, cloth and rubber. Investigations into the mineral sands at Barrytown and Westport have led to mining permit applications being lodged over the Barrytown Flats.

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 open-pit methods. The majority of current gold mining operations in New Zealand are for alluvial gold. Approximately 80 percent of total production in 1994 (10.12 tonnes) came from three open-pit hardrock mines: Martha Hill at Waihi, Golden Cross at Waitakauri in the Coromandel area and Round Hill at Macraes Flat in Otago. 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, large floating plants fed by hydraulic excavators, to one of the largest bracket ladder dredges in the world. The trend in the industry is away from small plants to those of medium and large size which have a high throughput, can mine to greater depths (30 m) and can efficiently recover the fine gold that characterises the alluvial deposits of the South Island.

Silver. Silver almost always occurs associated with gold in various proportions. 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 27.8 tonnes in 1994.

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 recovered.

Other metallic minerals. There are small deposits of manganese minerals in many localities. Uranium minerals occur in Westland but resources 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, in part because of uncertainty over land access. Iron ore, stibnite (antimony), orpiment (arsenic), chromite, monazite, nickel and rutile have been mined in the past. Tin is known from Stewart Island. Bauxite is present in Northland where reserves of 20 million tonnes have been identified. Molybdenite occurs widely throughout Northwest Nelson but awaits full assessment. Cinnabar, the principal ore of mercury, was historically produced in limited quantities from sinter deposits in Northland. Platinum group metals are associated with gold along Southland beaches but are not normally recovered in alluvial gold operations.

Non-metallic minerals

Aggregates. Aggregates are the product of a variety of rocks, gravels and sands used in road works and construction. Suitable rock for aggregate production is found throughout New Zealand. Aggregate production is dominated by several large companies—Firth Industries, Winstone Aggregate and Stevensons in the North Island and Fulton Hogan in the South Island—although Fulton Hogan is increasing production in the North Island. In addition, there are many small operators who supply local needs. Large numbers of quarries from Kaitaia to Bluff extracted 20.8 million tonnes of aggregates, worth around $173 million in 1993.

Clays. Clays are found throughout New Zealand and include bentonite, halloysite and kaolinite. They are used in the manufacture of sanitary ware, ceramics, bricks, tiles, pipes and pottery, and as fillers in the manufacture of paper, paint, pharmaceutical and animal health products. Clay production decreased from 156,547 tonnes in 1993 to 121,102 tonnes in 1994.

Bentonite. Bentonite is used as a bonding agent and for drilling specialist products. It is found in substantial quantities in Hawke's Bay and Canterbury. Although bentonite is still being imported for drilling operations, because long established and reliable overseas sources are often preferred, New Zealand bentonite is now being used as well. Demand is low and in 1993 stockpiles were sufficient to meet demand.

Halloysite. Halloysite has been mined in Northland for more than 30 years. The clay from the New Zealand China Clay Limited mine at Matauri Bay is recognised world wide as having an excellent colour and very high brightness and translucency when fired. Production in 1994 was 38,577 tonnes.

Dolomite. Dolomite rock is produced near Collingwood. It is used in agriculture and home gardening and shipped to Whangarei for use in glassmaking. In 1994 around 12,939 tonnes of dolomite, worth around $193,000 were extracted.

Table 20.19. METALLIC AND NON-METALLIC MINERAL PRODUCTION, 1993 AND 1994

 19931994
 QuantityValueQuantity
 Source: Ministry of Commerce.
 tonnes$tonnes
Metals   
Gold11264,445,40910,118 kg
Silver 5,821,18827,589 kg
Ironsand2,388,78324,636,2482,080,115
          Total2,388,820294,902,8452,117,822
Non-metals   
Bentonite---
Clay for bricks, tiles, etc130,004691,64479,080
Clay for pottery, etc26,54331,91239,024
Dimension stone40,0603,394,90818,615
Dolomite for agriculture9,671193,42012,939
Dolomite for industry---
Limestone for agriculture1,718,87512,479,2821,525,968
Limestone for industry377,8805,867,348351,227
Limestone and marl for cement1,577,3675,970,2001,541,200
Limestone for roads597,2164,345,191515,141
Perlite81422,792-
Pumice69,179377,732127,891
Rock for harbour work, filling, etc1,679,82710,520,4491,093,358
Sand for industry671,2122,348,199343,390
Sand, rock, gravel for building aggregate4,942,01148,464,3615,191,373
Sand, rock, gravel for roads and ballast13,501,967104,954,40812,502,965
Serpentine22,386503,5758,680
Silica sand48,635113,76537,611
Sulphur6,600 2,102
Zeolite  2,090
          Total25,420,247200,279,18623,392,654

Limestone. Limestone is found throughout New Zealand and is used in cement manufacture, roading, industry and agriculture. High quality limestone from Te Kuiti and Nelson is processed for export. Limestone is also used in New Zealand as a filler in the paint, glass, rubber, plastic and paper industries. Marble, a crystallised form of limestone, is mined in Nelson. It is used as a filler and in building construction: 3.93 million tonnes were mined in 1994.

METAL MINING AND PROSPECTING

Salt. At Lake Grassmere in Marlborough, salt is produced by the solar evaporation of sea water. Low rainfall, long hours of sunlight and the right wind conditions make this locality the most suitable in New Zealand for salt production. About 60,000 tonnes is produced each year for New Zealand consumption.

Serpentine. Serpentine is a magnesium-rich rock used as a fertiliser additive. Deposits are mined at Wairere, and at Greenhills in the South Island: 8,680 tonnes, worth about $200,000, were mined in 1994.

Silica sand. Northland, North Auckland and Canterbury have deposits of silica sand which are mined for use in glass manufacture, foundry moulds and the building industry. About 37,611 tonnes were extracted in 1994.

Sulphur. Sulphur is mined from Rotokawa near Taupo. In 1994, 2,102 tonnes worth $357,500 were produced. Sulphur is mainly used in production of agricultural fertiliser.

Greenstone. Nephrite, popularly known as ‘greenstone’, is present in north Westland and northern Fiordland. A deposit of greenstone boulders in Olderog Creek, a tributary of the Arahura River has been the main source of greenstone recently. The boulders are reduced in size by a portable diamond trepan saw and airlifted by helicopter. In 1994 only 45 kg of production was reported to the Ministry of Commerce. There is currently an unresolved Treaty of Waitangi claim over greenstone.

The best known occurrences of bowenite, the serpentine variety of greenstone, are in Fiordland.

Other non-metallic minerals. The following non-metallic minerals, some of which have been mined in the past, are also found in New Zealand: diatomite (industrial filtration), barite (industrial uses include glassmaking and fillers), asbestos (building material), feldspar (glassmaking, ceramics, enamels), magnesite (used in agriculture), mica (used in electronics), phosphate and sulphur (fertiliser), wollastonite (paper, asbestos substitute, ceramics, adhesives and plastics) and zeolite (animal litter).

Mining and quarrying industry statistics

Statistics New Zealand's 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 in table 20.20.

Coverage. Mining and quarrying includes the extraction, dressing and purifying of minerals occurring naturally: solids like coal and ores, liquids like crude petroleum, and gases like natural gas. Included are underground and surface mines, quarries and all exploration, prospecting and drilling for minerals. Work performed on a contract or fee basis in the development and preparation of mineral properties and sites is excluded. Also excluded are the crushing, grinding and treating of certain earths, rocks and minerals not carried out in conjunction with mining and quarrying activities.

Contributors

  • 20.1 Ministry of Commerce; Ministry for the Environment.

  • 20.2–20.5 Ministry of Commerce.

  • 20.6 Ministry of Commerce; Statistics New Zealand.

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 G40).

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.

Energy Data File. Ministry of Commerce.

Energy Supply and Demand Scenarios to 2020. Ministry of Commerce, 1994.

Greenhouse Gas Emissions From New Zealand Energy Sources 1990–1992. Ministry of Commerce, 1994.

Renewable Energy Opportunities For New Zealand. Ministry of Commerce, 1994.

Table 20.2. COAL MINING, CRUDE PETROLEUM, NATURAL GAS AND OTHER MINING STATISTICAL SUMMARY

 1992R1993 P
Source: Statistics New Zealand.
 $(000)$(000)
Inventories:  
       Closing stocks81,33484,710
       Opening stocks86,40579,302
Income:  
Sales of goods and services2,094,1522,358,853
Interest, dividends, donations, royalties, patent fees, etc69,07156,505
Government grants and subsidies3677
Other income including extraordinaries44,13216,418
Total income2,207,3912,431,853
          Total income adjusted for inventories2,202,3202,437,261
Expenditure:  
       employment related:  
         Salaries and wages paid to employees146,232175,013
         Redundancy and severance6904,633
         Salaries & wages to working proprietors (SW to WPs)8,0107,537
         Levies paid to Accident Compensation Corporation4,7375,029
       Employer contributions to superannuation schemes5,2075,283
       Fringe Benefit Tax1,8502,604
       Purchases & other operating expenses687,589784,602
       Interest, donations, grants, royalties and patent fees paid and bad debts written off180,891142,355
       Indirect taxes (excl Fringe Benefit Tax)67,92357,181
       Depreciation176,102234,369
       Other expenses including extraordinaries54,04083,434
          Total expenditure1,319,8601,497,407
Net profit before tax, extraordinaries, SW to WPs900,3781,014,406
Net profit before tax, SW to WPs890,470947,391
Fixed Tangible Assets:  
       Purchases of plant, machinery, vehicles and equipment51,39067,164
       Purchases of land and land improvements2,7745,413
       Purchases of buildings and other construction681,687404,905
          Total purchases of fixed tangible assets735,851477,327
       Sales of fixed tangible assets92,58016,748
Balance sheet:  
       Shareholders funds or owners equity4,537,9845,238,911
       Other liabilities2,713,4052,513,696
          Total capital and liabilities7,251,3897,752,607
Fixed tangible assets3,873,2114,279,059
Other assets3,378,1783,473,549
          Total assets7,251,3897,752,607
Ratios:  
       Profit margin on sales43.0%43.0%
       Return on equity19.8%19.4%
       Return on total assets12.4%13.1%
       Liabilities structure62.6%67.6%

Minerals

Economy Wide Census, Mining and Quarrying 1987. Department of Statistics.

Geothermal Resources of New Zealand, Resource Information Reports. Ministry of Commerce.

Key Statistics. Department of Statistics (monthly).

Mineral Resources of New Zealand, Resource Information Report II. Ministry of Commerce, 1991.

New Zealand Annual Mining Review. Ministry of Commerce.

Petroleum Resources of New Zealand, Resource Information Report II. Ministry of Commerce.

Report of the Ministry of Commerce (Parl paper G40).

Resource Information Report 16, The. Ministry of Commerce.

Coal Resources of New Zealand, The, Coal Geology Report 4. Ministry of Energy, 1988.

Chapter 21. Manufacturing

Creating new style swimwear to suit the New Zealand shape.

Manufacturing environment

The environment in which manufacturers operate has undergone significant reform over the past decade. The government's role has been redefined from direct support of industry to one of fostering a business environment in which business is responsible for creating, capturing and capitalising on their opportunities.

Reform of the business environment has been underpinned by the complete removal of import licensing in 1992 and the removal of tariffs on all imported goods for which there is no local manufacture of suitable alternatives. Tariffs were initially reviewed in 1987 with the announcement of a five-step tariff reduction programme, which halved the majority of industrial tariffs over the period 1 July 1988 to 1 July 1992. This was followed by a review in 1992, with the announcement of a further four-step reduction programme over the period 1993 to 1996, reducing most tariffs by one-third.

In December 1994 the government announced that further tariff reductions would apply from 1 July 1997 to July 2000. Under the programme, all ad valorem tariffs will reduce to three levels of either 15 percent, 10 percent, or 5 percent by 1 July 2000. It was also announced that goods with a 5 percent tariff on 1 July 1996 would become duty free from 1 July 1998.

It is intended that tariffs will be reviewed again in 1998.

The programme of tariff reductions has been a catalyst to an open and competitive environment. It has produced a dual effect on the manufacturing sector; in lowering the cost of imported materials, while at the same time opening up the domestic market to international competition.

Today, the state of the manufacturing environment is more reliant on the general economic conditions. In this regard balanced monetary and fiscal policies, the maintenance of low inflation, stability of interest and exchange rate policies, and the flexibility of labour markets provides a competitive base to manufacturing and creates certainty for present and future investment decisions. Manufacturing is also dependent on the competitiveness of support industries. The deregulation and privatisation, therefore, of the infrastructural sectors has provided substantial flow on benefits to the manufacturing sector through the lowering of input costs and providing more efficient, reliable and competitive services. This is especially notable in the deregulation of the transportation, energy, communications and finance sectors which has resulted in cost savings and more efficient service to the manufacturing sector and the economy generally.

Manufacturers are also now more dependent on their ability to create and seize their own initiatives, and to distinguish themselves from their competitors. Firms are, therefore, reliant on being innovative, enterprising and responding swiftly to market demands. To achieve this manufacturers are encouraging quality in their operations and management, with many manufacturers seeking ISO9000 certification and implementing total quality management principles to impart the quality ethic within their organisation.

Skills training and education are also important in the continuous development of manufacturers' competitiveness. The new National Qualifications Framework and the introduction of Industry Training Organisations provide greater flexibility for industries to determine their own skill and training needs, and for these needs to be responded to by the educational framework in an efficient and timely manner. Science and technology is also important and firms will continue to have responsibility for individual product development and commitment to increased research and development. The government also recognises the importance of science and technology and is committed to increased funding for manufacturing-related science to $35.9 million per year by the year 2001 through the Public Good Science Fund (PGSF). The objective of the PGSF is to create new technology bases on which industry can draw.

The business environment, having changed substantially, now provides a more robust and outwardly focused economy. It also now provides manufacturers with a strong framework in which to create and capitalise on the opportunities. The sector, however, will continue to be faced by the constantly changing external environment and will need to respond.

Growth issues

In recent years manufacturing has emerged from the liberalisation of imports and the economic reforms of the 1980s, to be characterised by growing confidence in the sector's domestic and international competitiveness.

Manufacturers will continue to face competitive pressures influencing their operations, and challenges will grow as tariffs are further reduced over the period 1997–2000.

The Manufacturing Advisory Group published its third strategy document entitled “Manufacturing for growth 1995—a strategy for maintaining the momentum of manufacturing growth”.

The establishment of free trade across the Tasman under the Australia New Zealand Closer Economic Relations Trade Agreement (CER) in 1983 has been a catalyst to the development of an internationally competitive and export-oriented manufacturing sector. CER has also been the catalyst to an integrated trans-Tasman economy and work is continuing to expand the agreements scope. Progress is being made on a Trans-Tasman Mutual Recognition Agreement to reduce regulatory restrictions to trade. As well, the recently-signed agreement on joint Australia/New Zealand food standards presents manufacturers and consumers with a number of opportunities by reducing technical restrictions to trade.

As the establishment of a combined New Zealand/Australia ‘domestic’ market continues to expand, trans-Tasman manufacturers are looking to expand into the fast growing Asian economies. In recognition of this, the New Zealand and Australian governments have commenced dialogue with members of the ASEAN Free Trade Area (AFTA) to promote AFTA/CER trade facilitation.

The November 1994 commitment (“Bogor Declaration”) by the 18 APEC member countries to comprehensive free trade and investment by 2010 (developed economies) and by 2020 (developing economies) means that New Zealand manufacturers will ultimately be operating in an internationally open domestic market while enjoying liberalised access opportunities to markets covered by APEC.

Manufacturers also have the opportunity to benefit from the Uruguay Round of GATT negotiations, the outcome of which will see tariffs on a range of manufactured products progressively reduced or eliminated in New Zealand's export markets. New Zealand's reciprocal commitments in the Round (beyond the unilateral tariff reform programme) include progressive reduction and elimination of tariffs on imports of pharmaceuticals, beer, pulp, paper and printed matter.

In addition, two major issues are taking place with respect to the determination of the country of origin of traded goods which could impact on New Zealand manufacturing. The first is a three-year work programme being undertaken by the World Customs Organisation (WCO) to address the scope for non-preferential rules of origin to be harmonised on the basis of a change in tariff heading approach. The WCO's Technical Committee will report to the World Trade Organisation.

At the same time, Australia and New Zealand have established a joint working group to consider the operation of Rules of Origin (ROO) in the context of CER and their relationship with the wider international scene. At issue is whether there should be a change in the way origin is determined for preference purposes; at present New Zealand and Australia require that goods achieve an Australia/New Zealand content level of 50 percent before they qualify for duty-free treatment. Both New Zealand and Australia are consulting manufacturers about ROO.

In 1991 the United Nations Conference on Environment and Development adopted a set of 27 principles of sustainable development and a guide for their implementation known as Agenda 21. This has increased the focus of the world on who is responsible for sustainable development. Subsequent analysis has indicated that New Zealand is advanced in its implementation of the Rio objectives. Agenda 21, however, has focused attention on environmental issues and there will continue to be a proliferation of environmental regulation that firms have to comply with or be forced by consumer pressure to take account of. At the same time there are also opportunities for manufacturers in marketing New Zealand's environmental advantages.

Recently the linkage between trade and environment has come under increasing scrutiny both from environmentalists and analysts. In recognition of this, a number of international organisations have initiated analysis on mutual support between trade and the environment. The World Trade Organisation (WTO) and the Organisation for Economic Co-operation and Development (OECD) have been involved in this work. Also, the International Standards Organisation has initiated work on the establishment of a series of environmental standards known as ISO 14000. This will provide a benchmark for consumers and, though voluntary, could influence manufacturers' access to markets.

Table 21.1. MANUFACTURING SECTOR PERFORMANCE 1989-94

March yearSales, nominalAdditions to fixed assetsGrowth in additions to fixed assetsContribution to GDP at 1982-83 pricesReal growth of GDP of GDP contribution
 $(million)$(million)percent$(million)percent
198934,458.51,904.8 7,606 
199037,440.31,827.8-4.07,563-0.6
199137,623.31,641.2-10.27,235-4.3
199237,831.51,331.5-18.97,144-1.3
199341,492.91,520.014.27,4754.6
199445,709.61,909.325.67,8945.6
199549,954.02,373.024.38,4817.4

A variety of issues, therefore, still have the potential to impact on manufacturing and these will need to be addressed by the industry. Manufacturing, however, is in a good position to adjust to and accommodate any changes in the future.

Manufacturing groups

Below is a brief description of some of the major secondary industries in New Zealand.

Engineering. This sector increasingly is taking an export focus in the marketing of its products. This has been facilitated by the establishment of the Engineering Joint Action Group (JAG) in July 1993, a joint venture between the Trade Development Board (TRADENZ) and industry. The JAG's objective is to seek increased performance and create opportunities through the collective co-operation of members.

Wine. Talks have been held with the European Union in an effort to finalise the details on a proposed New Zealand/European Union Wine Agreement. The agreement would secure New Zealand the opportunity to develop wine exports to the valuable European markets by providing assured access, less rigorous conditions of market entry and reduced compliance costs. New Zealand and the European Union countries would protect each other's geographic indications. While New Zealand is well advanced in the negotiation of a wine agreement with the European Commission, there are still some outstanding areas of concern relating, for example, to traditional expressions.

Motor vehicles. The New Zealand industry, comprising the assembly of cars and light commercial vehicles and the manufacture of certain components, has continued to adjust to the progressively lower levels of frontier assistance instituted in 1989. The sector has also faced the impact of technological improvement on motor vehicle performance, and has coped with the adverse influences of domestic and international recession, together with the significant increase in used vehicles imported from Japan. Following falling sales in 1991 and 1992, sales of new vehicles stabilised in 1993. Sales increased significantly through 1994 as confidence in the domestic economy became more established and stabilised again in 1995.

Certain companies in Australia and New Zealand have sought to rationalise production across the Tasman and have put forward a joint rationalisation plan to both governments. While this specific plan has not been supported by Australia, discussions on some type of rationalisation arrangement are continuing.

Although vehicle assembly is dependent on the domestic market, component manufacturing has developed significant export markets. Current production for components is approximately $400 million per year, with exports totalling around $180 million. Exports include tyres, wiring harnesses, alloy wheel springs and windscreens.

Textiles, apparel, footwear and carpet sectors

These industries were covered by the industry development plans throughout the 1980s. The principal focus of the plans was on frontier control with the basic intent of the plans being to achieve the gradual removal of import licensing and the reduction of tariff levels in a manner which would enhance the competitiveness and exporting potential of these industries.

Textiles and apparel. Textiles and apparel were amongst the last product groups to retain import licensing (licensing was removed from textiles by July 1991 and from apparel by July 1992). The import licensing regime covering these products significantly restricted the levels of imported textiles and apparel and therefore limited the extent to which the industries were exposed to international competition. The tariff reduction programmes for these industries have also been more gradual than those for most other industries, with tariffs on apparel imports in particular remaining significantly higher than those for most other industrial goods. Under the tariff reduction programme for the period July 1993 to July 1996, apparel non-preferential tariff rates will reduce from 40 percent to 30 percent. A revised regime of alternative specific (dollar value) rates for certain apparel has also been implemented. The provisions are aimed at addressing some of the problems of enforcing appropriate tariff levels for lower-cost apparel imports. Decisions made regarding post-1996 tariffs up to the year 2000 will see apparel tariffs reduce progressively to 15 percent, compared to the 5 percent for most other goods under the General Tariff Programme. The alternative specific tariffs for apparel will remain in place but will reduce in line with the reductions associated with ad valorem rates.

Textiles (a category covering a wide range of products) are subject to government's General Tariff Programme. This means that there will be one-third tariff reductions for most products in the period July 1993 to July 1996. However, a number of core textile products, namely fabrics, yarns, blankets and rugs, have been accorded a more gradual tariff reduction regime. The post-1996 tariff reduction programme will see these textile tariffs reduce to a maximum rate of 10 percent by 2000.

Benchtop ovens made by Robinson Industries in East Tamaki. The company also makes “supertubs” and range extractor hoods. The factory employs advanced technology and flexible manufacturing techniques.

The removal of import licensing and a progressive reduction in tariffs has seen apparel imports from all sources increase significantly in the period 1988 to 1994, from $84 million cif to $400 million cif. This has led to considerable rationalisation within the industry, with an accompanying reduction in employment levels. However, for the year to February 1994 employment has slightly increased over the previous year. Taken together the textile and apparel industries remain significant employers. As at February 1994 there were 23,449 people employed in these industries.

During the 1988 to 1993 period export success has been achieved in the apparel sector, with exports of apparel increasing from $30 million fob in 1988 to $136 million fob in 1993. However, exports for 1994 have fallen back to $128 million fob. Australia is New Zealand's main export market for apparel, but efforts have been made to diversify export destinations, particularly into Asia. Joint action groups supported by TRADENZ and industry bring exporters together to develop strategies to overcome constraints to achieve export success. The range of clothing produced covers all main categories of garments. A substantial proportion of apparel manufacturers are small businesses.

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 1996. These were revised in 1991, with the result that carpet was afforded a more gradual tariff reduction programme and one which aligned with the Australian tariff regime for carpet. During the 1993 to July 1996 period, carpet tariff rates will reduce from 32 percent to 23 percent with further reductions post-1996. By 2000 carpet tariffs will have reduced to 15 percent.

Tufted and woven carpet production in 1994 increased by 10 percent over the previous calendar year to 9.27 million square metres. Production of wool-rich carpets (80 percent or more wool content) was 8.17 million square metres or 88 percent of total production. The two main players in the New Zealand carpet industry, which produces predominantly wool-rich carpet, are Feltex Carpets and Cavalier Bremworth.

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. Under the tariff reduction programme for the period July 1993 to 1996 adults' footwear tariff rates will reduce from 45 percent to 30 percent. Children's footwear tariff rates will reduce from 33 percent to 25 percent over the same period. By July 2000, footwear tariffs will have reduced in four approximately even steps to 15 percent.

Considerable rationalisation of the industry has taken place since 1986, when the first significant reductions in protection occurred. Domestic production has reduced from 8.9 million pairs in 1986-87 to 3.8 million pairs in 1993-94 and employment has reduced from 4,642 to 1,863 over the same period.

The reduction in assistance has also led to a significant increase in the volume of footwear imports. In 1994 imports supplied more than 72 percent (7.7 million pairs) of the New Zealand footwear market, compared with 63 percent (6.8 million pairs) in 1991 and 18.6 percent (1.9 million pairs) in 1986. Exports have decreased from 1 million pairs in 1991 to 429,000 pairs in 1994 (June years). This is, however, still higher than the 300,000 pairs exported in 1986. As with apparel, Australia is the main destination for most of New Zealand's footwear exports.

Manufacturing enterprises

Table 21.2 shows the different types of manufacturing businesses recorded by a survey to update the Statistics New Zealand's' Business Directory at February 1995. 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 21.3 shows the number of manufacturing activity units (business locations) and full-time equivalent persons engaged over the last two years, again using the annual Business Directory update as a source.

MANUFACTURING Employment by industry type

Table 21.2. MANUFACTURING ACTIVITY UNITS* AND FTE PERSONS ENGAGED†, FEBRUARY 1995

NZSICType of manufacturing Full-time equivalent persons engaged size group
0-56-910-4950-99100+Total

* Generally defined as those enterprises with greater than $30,000 annual GST expenses or sales, or in a GST-exempt industry.

Full-time equivalent (FTE) persons engaged equals the sum of the full-time persons engaged plus half the part-time persons engaged.

Source: Statistics New Zealand.

3111Slaughtering and meat processingActivity units13631892662344
  Full-time equivalents†3172042,0651,68619,62823,900
31122MilkActivity units213123140
  Full-time equivalents3221265235185738
31123Ice creamActivity units10481225
  Full-time equivalents192914764275533
31125Dairy productsActivity units1672292478
  Full-time equivalents32506296125,1816,503
3113-3122Other foodsActivity units1,00227035256541,734
  Full-time equivalents2,5361,9036,9113,88411,86127,093
313BeveragesActivity units130364986229
  Full-time equivalents2872569926339563,123
314TobaccoActivity units302027
  Full-time equivalents150310448494
321TextilesActivity units5831021652620896
  Full-time equivalents1,2707083,6531,9633,39510,988
322-324Wearing apparel and footwearActivity units1,00417230145311,553
  Full-time equivalents2,1001,2006,5362,9934,97117,799
33Wood processing and wood productsActivity units2,60740952253273,618
  Full-time equivalents5,3602,8289,9253,6295,24626,988
34110Pulp, paper and paperboardActivity units92611028
  Full-time equivalents2415142723,3773,629
3412Paper and paper-board containersActivity units17324101165
  Full-time equivalents39215997011,7383,096
3419Pulp, paper and paperboard necActivity units317208369
  Full-time equivalents77544306597041,922
342Printing and publishingActivity units97517934233321,561
  Full-time equivalents2,1721,2286,4512,1266,00517,981
3511Basic industrial chemicalsActivity units325173158
  Full-time equivalents7234483183120891
3512Fertilisers and pesticidesActivity units4910165383
  Full-time equivalents113702864164361,320
3513Synthetic resins, plasticsActivity units47143659111
  Full-time equivalents1051006613161,4382,619
352Other chemicals, pesticidesActivity unit22351972010401
  Full-time equivalents4963542,0431,3271,7906,009
353Petroleum refineriesActivity units000022
  Full-time equivalents0000574574
354Petroleum and coal productsActivity units274111043
  Full-time equivalents5329291540427
35513Tyres and tubesActivity units107191340
  Full-time equivalents3049347526031,080
3559Rubber products necActivity units517201180
  Full-time equivalents1135248254194894
356Plastic productsActivity units200551263214427
  Full-time equivalents4493942,6652,1032,5948,203
36Non-metallic mineral productsActivity units656122134137932
  Full-time equivalents1,3508522,5758471,3136,936
37Basic metal industriesActivity units1293651910235
  Full-time equivalents2932571,0775564,6876,869
381Fabricated metal productsActivity units1,77040448556182,733
  Full-time equivalents3,6132,8449,2313,6382,98922,313
382MachineryActivity units2,37940139327103,210
  Full-time equivalents4,7892,7877,5701,8591,50218,505
383Electrical machineryActivity units446781191827688
  Full-time equivalents9475402,4031,3636,94012,192
384Transport equipmentActivity units78612016530201,121
  Full-time equivalents1,5508263,4202,1496,01913,964
385Professional equipmentActivity units7681511101
  Full-time equivalents1485825954119636
390Other manufacturing industriesActivity units8898098601,073
  Full-time equivalents1,7565501,91138504,601
3Total manufacturingActivity units14,3142,6273,71650742121,585
  Full-time equivalents30,15118,30674,47334,60495,281252,813

Business development

The government's business development is aimed at encouraging New Zealand businesses to become more innovative and internationally competitive. Following an extensive review a revised Business Development Programme was launched on 11 December 1995. The new programme aims to raise the capability of small and medium enterprises (SMEs) to grow, by targeting business capabilities/skills and business information needs.

A Levin sawmaker with a bandsaw, one of the range which won him a Tradenz commendation for increasing foreign exchange earnings by 154 percent over two years.

Table 21.3. MANUFACTURING ACTIVITY UNITS* AND FTE PERSONS ENGAGED† BY INDUSTRIAL CLASSIFICATION, 1994-95

NZSICType of manufacturing FTE persons engaged, February
19941995

* Generally defined as those enterprises with greater than $30,000 annual GST expenses or sales, or in a GST-exempt industry.

Full-time equivalent (FTE) persons engaged equals the sum of the full-time persons engaged plus half the part-time persons engaged.

Source: Statistics New Zealand.

3111Slaughtering and meat processingActivity units337344
  Full-time equivalents25,51323,900
31122MilkActivity units3640
  Full-time equivalents794738
31123Ice creamActivity units2425
  Full-time equivalents505533
31125Dairy productsActivity units7878
  Full-time equivalents6,4466,503
3113-3122Other foodsActivity units1,6281,734
  Full-time equivalents26,36827,093
313BeveragesActivity units210229
  Full-time equivalents2,9543,123
314TobaccoActivity units87
  Full-time equivalents511494
321TextilesActivity units832896
  Full-time equivalents10,37710,988
322-324Wearing apparel and footwearActivity units1,4921,553
  Full-time equivalents17,96817,799
33Wood processing and wood productsActivity units3,2953,618
  Full-time equivalents24,70226,988
34110Pulp, paper and paperboardActivity units3328
  Full-time equivalents3,8383,629
3412Paper and paperboard containersActivity units6565
  Full-time equivalents3,0373,096
3419Pulp paper and paperboard necActivity units6869
  Full-time equivalents1,7291,922
342Printing and publishingActivity units1,4831,561
  Full-time equivalents17,18717,981
3511Basic industrial chemicalsActivity units5458
  Full-time equivalents836891
3512Fertilisers and pesticidesActivity units6983
  Full-time equivalents1,1821,320
3513Synthetic resins, plasticsActivity units108111
  Full-time equivalents2,4432,619
352Other chemicals, pesticidesActivity unit366401
  Full-time equivalents5,6806,009
353Petroleum refineriesActivity units22
  Full-time equivalents585574
354Petroleum and coal productsActivity units4143
  Full-time equivalents431427
35513Tyres and tubesActivity units4440
  Full-time equivalents1,0811,080
3559Rubber products necActivity units7780
  Full-time equivalents876894
356Plastic productsActivity units429427
  Full-time equivalents7,6238,203
36Non-metallic mineral productsActivity units847932
  Full-time equivalents6,3556,936
37Basic metal industriesActivity units229235
  Full-time equivalents6,5686,869
381Fabricated metal productsActivity units2,5642,733
  Full-time equivalents20,94622,313
382MachineryActivity units2,9563,210
  Full-time equivalents17,52618,505
383Electrical machineryActivity units650688
  Full-time equivalents10,82012,192
384Transport equipmentActivity units1,0121,121
  Full-time equivalents13,45213,964
385Professional equipmentActivity units84101
  Full-time equivalents591636
390Other manufacturing industriesActivity units9791,073
  Full-time equivalents4,5334,601
3Total manufacturingActivity units20,10021,585
  Full-time equivalents243,448252,813

The programme is delivered by a network of 21 Business Development Boards. The boards also provide regular advice to the Minister of Business Development on significant business developments and matters in their region.

Board 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.

Business Development Programme. The new programme has three components:

  • an information component;

  • a business capability component comprising a preliminary appraisal exercise, a business training/educative element, a grant scheme, and best practice education and recognition and initiatives including the Business Development Quality Awards; and

  • a regional co-operation component.

Business information. Information is provided on:

  • the overall economic and regulatory environment, highlighting the significance of particular developments and issues for SMEs.

  • sources of advice and assistance; the aim being to quickly identify the appropriate sources of help and facilitate access to these so as to enhance the opportunities to improve performance and/or obtain appropriate assistance.

  • techniques to improve business skills.

  • New Zealand's trading activity and the regional economy.

Business capability improvement

  • The preliminary business appraisal is designed to identify individual and business capability/skills and performance levels at a given point in time. Eight business capabilities will be assessed which include business planning, operations management, marketing, quality, and product design, research and development management. Also assessed will be organisation and human resource management, financial and information systems, environmental management.

  • The training/educative component builds on the results of the appraisal using the eight capabilities above. Business Development Boards refer clients to those who can provide the necessary training appropriate to the client's particular needs.

  • Under the grant scheme funding is available for activities in the areas of innovation/research and development, strategy and implementation. The grant scheme offers assistance on a dollar for dollar basis to a maximum grant of $50,000 for all time for any one applicant with $20,000 per applicant being available in any one June/July year. Grants are restricted to businesses employing no more than 50 staff.

A Petone engineering company is earning plaudits—and orders—overseas for its new method of machining car muffler tubes. Designed by the company owner, the machine is quieter than others because it rolls rather than punches the louvres along the pipe.

ExcelleNZ package. The ExcelleNZ initiatives are promoted by the Business Development Group of the Ministry of Commerce as a key component of the Business Development Programme. The ExcelleNZ package currently comprises three initiatives: Total Quality Management, World Competitive Manufacturing and World Competitive Service. These initiatives, offered in New Zealand through an agreement with the Australian government, are delivered by consultants contracted to the Ministry of Commerce.

In order to contract with the ministry for delivery of the initiatives, consultants are first screened by an assessment panel appointed from the private sector by the Minister of Business Development. Consultants approved by the panel then undertake formal workshop training before being offered a contract by the ministry for the delivery of the relevant ExcelleNZ initiative. Training workshops are held according to demand and are open to both consultants and representatives of enterprises seeking to develop skills in quality management and strategic planning.

Business Development Quality Awards. These awards are designed to foster a commitment to quality principles by New Zealand SMEs and to recognise the application of total quality management. The awards are administered by the Business Development Group of the Ministry of Commerce and are promoted annually through the Business Development Board network. The Business Development Quality Awards are based on the US Malcolm Baldrige National Quality Awards and complement the New Zealand National Quality Awards.

The Business Development Quality Awards are proving to be an attractive incentive for New Zealand businesses to apply total quality management principles and to capitalise on the training in business development techniques available through the ExcelleNZ initiatives. Over the first three years of the Business Development Quality Awards a total of 504 applicants from all regions have applied to be recognised against the awards' criteria.

Manufacturing statistics

Statistics New Zealand's Quarterly Economic Survey of Manufacturing (QMS) is designed to give a representative survey estimate of economic activity for each of the New Zealand Standard Industrial Classification (NZSIC) divisions within the manufacturing sector. The manufacturing sector is defined under the NZSIC as major division 3 which encompasses the industrial divisions, shown in table 22.5. For a fuller description of these divisions, refer to the department's NZSIC catalogue.

The survey maintains a sample of just under 2,000 respondents selected from Statistics New Zealand's Business Directory. The unit records are collected at the accounting unit level. The survey asks for predominantly current income and expenditure data although some investment data is also collected. Quarterly results are published in the Hot Off the Press publication and are also available on the department's public database INFOS.

REGIONAL EMPLOYMENT IN MANUFACTURING 1995 - North Island By major types of industry, in full-time equivalents

REGIONAL EMPLOYMENT IN MANUFACTURING 1995 - South Island By major types of industry, in full-time equivalents

Brother managers discussing a pioneering new felted wool yarn developed in Christchurch at the only New Zealand factory to produce this yarn. It is regarded as a viable alternative to traditionally spun yarn for wool apparel and carpets because of many attractive properties—durability, texture, lightness, softness and the ability to create unique styling effects.

Table 21.4 has the data presented in the form of annual series for the March years of 1990 to 1995 for total manufacturing for some of the collected variables. Fuller descriptions of these variables can be found in the glossary at the back of this book. Table 21.5 shows the sum of the four quarters for the year ended March 1995 with total manufacturing divided into the NZSIC divisions referred to above.

The survey provides a quarterly sample estimate that is a useful short-term indicator of the manufacturing sector's activity. The Annual Enterprise Survey provides a more in-depth measure at a higher level of financial and industry detail while the QMS provides more timely estimates with less detail. The department performs census surveys also which provide data for a full inter-industry study. The latest manufacturing census was in 1994-95 while the previous was published in the Economy Wide Census 1986-87.

The data in table 21.4 is revised from what was published in the 1992 Yearbook as the series have been ‘linked’ into the estimates produced by the December 1992 sample re-selection. This process ensures that the sample selected for the QMS continues to be representative of the ever-changing population of the manufacturing sector.

Table 21.4. 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.

Source: Statistics New Zealand.

   $(million)   (000)
199037,4402,6792,7941,8286,31128,464463,700
199137,6232,6383,1941,6416,41728,479442,586
199237,8312,4123,0321,3316,38528,087419,396
199341,4932,4053,3241,5206,68031,622433,906
1994R45,7102,4813,5421,9097,18335,164462,858
199549,9542,6633,8502,3737,69237,865485,900

Table 21.5. QUARTERLY ECONOMIC SURVEY OF MANUFACTURING, 1995*

Industry division (NZSIC)Sales and other incomeStocks*Additions to fixed assetsSalaries and wagesPurchases and other operating expensesHours worked
MaterialsFinished goods

* Year ended 31 March.

Source: Statistics New Zealand.

   $(million)   (000)
Primary food10,7912338614671,2059,49568,655
Other food, beverages and tobacco6,8593956133048475,30959,043
Textiles, apparel and leather goods3,171282363886602,29852,126
Wood processing and products4,0561863281866482,88446,975
Paper, printing and publishing4,8862682013469963,21753,018
Chemical, petroleum, coal, rubber, etc6,1033754684637804,31344,134
Non-metallic mineral products1,34448806120590811,967
Basic metal products1,8491561741052941,50313,945
Fabricated metal products etc10,4776787333381,9897,642130,726
Other manufacturing418423115672965,307
          Total49,9542,6633,8502,3737,69237,865485,900

Contributors

  • 21 Ministry of Commerce; Statistics New Zealand.

Further information

A season of excellence? New Zealand Institute of Economic Research, 1996.

Economy Wide Census: Manufacturing 1987. Department of Statistics.

Islands of Excellence? New Zealand Institute of Economic Research, 1993.

Key Statistics. Statistics New Zealand (monthly).

Report of the Ministry of Commerce (Parl paper G46).

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 22. Housing and construction

Building with polystyrene blocks.

22.1 Housing

The housing sector forms a vital part of New Zealand's domestic economy. A good standard of housing is as vital as any of the other factors upon which we rely, such as health and education. Housing fulfils a variety of social roles. It provides shelter and security for the family and for the individual; a physical anchor in our environment. For some, it provides a measure of social status and an expression of lifestyle choices. Housing provides employment and livelihood for a variety of trades, and the maintenance, renovation and improvement of homes is a major leisure-time activity for ‘do-it-yourself’ New Zealanders. In a market-based, property-owning economy, housing is the main area of investment for many.

The total number of dwellings in New Zealand recorded in the 1991 Census was 1,185,700. Of these, 1,164,400 were permanent and occupied, an 8 percent increase from the previous census in 1986. Of the total number of dwellings, 852,400 (74 percent) were recorded as owner-occupied; 267,300 or 23 percent as rented or leased; and the remaining 3 percent were occupied without payment. Fifty-four percent (456,400) of owner-occupied dwellings were owned with a mortgage, while 396,000 or 46 percent were owned without a mortgage.

By comparison with most other western nations, New Zealand has a very good standard of housing and a very high level of owner-occupier dwellings. At the time of the 1991 Census, 99 percent of New Zealanders were living in conventional permanent dwellings (either detached houses or flats). Home ownership is the dominant form of tenure in New Zealand, with 74 percent of households owning their own homes in 1991. This is well ahead of many other western countries (70 percent for Australia, 66 percent for the United Kingdom, 64 percent for the United States, 62 percent for Canada, 55 percent for Sweden, 30 percent for Switzerland). Household amenities, such as electricity, water and sewage disposal, are almost universal in New Zealand, and in 1991 only 1.4 percent of private dwellings had no form of heating. On census night in 1991, just 1 percent of private households were occupied on a semi-permanent basis: baches, cribs, huts, caravans or other temporary premises intended for short-term accommodation. Moreover, the census showed that less than 1 percent of occupied private dwellings had three or more persons per bedroom.

While families accounted for 74 percent of all households in 1991, what was once the typical family (a couple with at least one dependent child) represented only 38 percent of all families and 29 percent of all households.

The average number of persons per household reached a new low of 2.8 people at the time of the 1991 Census, after falling below three people in the 1986 Census. Over half of New Zealand's households now contain one or two people only, and the number of couples without any children at home continues to rise. By 1991, more than a third of families consisted of a husband and wife only (including de facto couples). Single person households now constitute 20 percent of all households: at the time of the 1991 Census almost 236,000 adults lived alone.

The 1991 Census also showed that 51 percent of Maori were owner-occupiers, and 49 percent of Maori were in rental housing. This compares to the population as a whole, where 76 percent were owner-occupiers and 24 percent lived in rental housing. Older people are more likely to be owner-occupiers than tenants, with 84 percent of those aged over 60 years owning their own home compared to 72 percent of those aged less than 60.

Building activity has increased since 1991 due to a combination of economic and demographic factors. In demographic terms, the population and the rate of household formation is expected to grow, as is the level of migration, while households are decreasing in size. These factors will create an increasing demand for accommodation, most of which is predicted to occur in the Auckland region.

House sales. There has been a very slight decrease in the number of house sales. The number of freehold open market house sales, as notified to Valuation New Zealand, for the year to June 1995 provisionally totalled 73,286 units. This is a 1.7 percent decrease on the 74,542 units recorded for the previous year.

The number of sales has increased since 1992 and the 1994 figure was the highest since Valuation New Zealand started recording this series in 1973. Freehold open market sales cover approximately 80 percent of all market sales, but exclude forced sales, sales between family members with a gift element, sales of leasehold, and mixed tenure properties.

Residential prices. The average sale price for houses in the year to June 1995 was $149,446 compared to $132,073 in 1994. This represents a 13.2 percent increase on the average price recorded in 1994. The sale prices are exclusive of chattels and other considerations.

Table 22.1. RESIDENTIAL PRICES

Average sale priceDecember year
1991199219931994
Source: Valuation New Zealand, Ministry of Housing.
 $
Sections41,04043,66847,92355,049
Houses115,461120,734125,609141,506
Owner-occupier flats105,839108,626111,806126,312

The Urban House Property Price Index compiled by Valuation New Zealand is designed to measure changes in the average level of prices paid for residential properties 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. The indexes for the last five June years are shown in table 22.2.

Table 22.2 shows that prices have been increasing since 1992, and in the year to June 1995 they increased throughout all localities. Prices rose 12 percent over the year to June 1995. The Auckland area recorded the largest increase at 20 percent. Tauranga and Rotorua Districts also recorded an increase in excess of 10 percent. By contrast, the Hastings and Wanganui Districts had the smallest increase at 0.5 percent.

Table 22.2. HOUSE PRICE INDEX*†

Locality19911992199319941995

* Base December 1989 quarter = 1000.

Year ended June.

Auckland includes North Shore City, Waitakere City, Manukau City, Papakura District and Auckland City.

§ Wellington includes Porirua City, Upper Hutt City, Wellington City, Hutt City

Source: Valuation New Zealand.

Whangarei District10631043106711581225
Auckland Area‡100694896910941316
Hamilton City11311093111812231329
Tauranga District10611061110312161361
Rotorua District10461011103711391270
Gisborne District12061206130914991620
Napier City11231152125314201493
Hastings District11701250137115261533
New Plymouth District11831228131413691441
Wanganui District11951169116811801186
Palmerston North City11071130114511791213
Masterton District10651059108211181126
Wellington Area§9879429479631018
Nelson City11251158127413581416
Christchurch City11711188122012811404
Timaru District11611209127313421390
Dunedin City12001244134013841447
Invercargill District12291242128613611372
          Total New Zealand10671048108111711310

Selling property by the touch of a screen—a real estate information station.

HOME MORTGAGE RATES Registered mortgages

22.2 Housing loans

Activity in the residential sector has been strong in recent years. In part this reflects the increase in immigration, particularly in the Auckland area, but it also more generally reflects rising employment and incomes during the recent cyclical upswing, as well as increased confidence in New Zealand's longer-term growth prospects. Competition between major providers is also likely to have stimulated demand. Customers are now offered more flexible, individually-tailored mortgage products, as well as the choice of floating, fixed and capped mortgage interest rates.

In January 1996 mortgage lending by M3 institutions (mainly registered banks, finance companies and building societies) was around 44 percent of total lending to the non-bank private sector; five years earlier the share of total lending was less than 30 percent. Table 22.3 indicates that both the number and value of housing loans drawn down in the six months to December 1995 have increased significantly compared to the same period 12 months earlier. This reflects the current strength in the residential sector.

Table 22.3, housing loan drawdowns, has replaced the old housing loan approvals series. The latter tended to overstate the actual loans as customers could go to several banks, get approval to borrow from them all and select only the most attractive one.

Table 22.3. HOUSING LOAN DRAWDOWNS

QuarterLifeM3Total
insurance officesinstitutions  
Source: Reserve Bank of New Zealand.
1994—no$(m)no$(m)no$(m)
September41035.951,169R3,111.8R51,579R3,147.7R
December27920.152,345R3,486.0R52,624R3,506.1R
1995—      
March28623.542,206R2,583.4R42,492R2,606.9R
June30626.246,303R2,975.8R46,609R3,002.0R
September37433.058,825R3,630.3R59,199R3,663.3R
December33225.660,8304,083.361,1624,108.9

Mortgage interest rates. The level of first mortgage housing interest rates has fallen from a peak of 20.5 percent, recorded in June 1987, to a recent low of 7.4 percent in February and March 1994. These statistics represent the variable first mortgage interest rate offered to new borrowers for residential property, weighted by each surveyed institution's total lending outstanding for housing purposes. Tightening of monetary policy in late 1994, and policy remaining relatively firm to date, has seen mortgage interest rates firm to around 10.4 percent at the beginning of 1996. Firming interest rates have to date, however, had little impact on the intensity of activity in the residential sector.

Rentals. The dwelling rentals component of the Consumer Price Index rose by 7.8 percent in the year to June 1995. Over the past year the government has been putting into place its market rent policy which has seen the Housing Corporation rentals increase substantially to be comparable with rentals in the private sector. As part of the final stage in this transition the Housing Corporation and Local Authority rentals increased by 12.4 percent in the year to June 1995, while private rentals increased by 5.6 percent over the same period. The reforms were mainly in the March, June and September 1994 quarters but have affected the annual movement to June 1995.

Maori housing. There has been a major refocus on the delivery of housing assistance for Maori households. The delivery of housing loans and rental accommodation previously provided by Te Puni Kokiri, has now been mainstreamed for delivery through other agencies. Due to the transfer of the mortgage accounts administered by Te Puni Kokiri to the Housing Corporation of New Zealand, lending activity by Te Puni Kokiri ceased in the third quarter of the 1993 June year. Most of the rental accommodation previously administered by Te Puni Kokiri has now been sold to local tribal authorities.

MORTGAGES Registered and discharged

Church service in Lower Hutt to mark rent increases.

The total loan portfolio of former Te Puni Kokiri loans held by the Housing Corporation at 31 October 1995 was some $224 million for 6,525 clients. There were 8,484 loans.

Housing assistance and government housing agencies

Accommodation supplement. The accommodation supplement was introduced on 1 July 1993 and replaces the subsidised housing assistance delivered by the Housing Corporation, and the accommodation benefit from the Department of Social Welfare. All low income households are eligible to apply for the accommodation supplement, irrespective of whether they live in public or private sector housing, and whether they are renters, mortgagors or borders. The low income threshold is $350 per week.

The accommodation supplement is a cash payment administered by the New Zealand Income Support Service, which is part of the Department of Social Welfare. The supplement is capped on a regional basis and takes account of higher living costs in Auckland and Wellington. A cash assets test is also applied which is similar to the test that was used for the accommodation benefit. An abatement regime assists in targeting the supplement to households on lower incomes. As at 30 June 1995 there were 266,275 accommodation supplement recipients.

A number of transitional measures were implemented in the period prior to the introduction of the accommodation supplement. These measures were designed to give on-going assistance to Housing New Zealand Limited tenants who lost access to existing housing subsidies after the supplement was introduced. Tenants 65 years of age and over on 1 October 1992 may benefit from tenure protection allowance. Tenure protection may also assist Housing New Zealand tenants who on 1 October 1992 were living in a unit specifically modified to accommodate a disability. As at 30 June 1995 there were 8,715 current tenure protection allowances.

Housing Corporation of New Zealand. The Housing Corporation was established by the Housing Corporation Act 1974. From 1974 until mid-1992 the corporation was responsible for rental housing services, home lending and housing policy advice. Between 1986 and mid-1992 the corporation was responsible for administering the Residential Tenancies Act. From 1 July 1992 the corporation was restructured to leave it with only responsibility for home lending functions, the principal part of which was administration of existing loans.

The Housing Corporation also provides housing loans for those low income households who have difficulty obtaining loans in the private sector. The corporation has recently implemented a pilot programme in rural areas of the East Coast and Northland. The Low Deposit Rural Lending programme combines education about housing matters with practical assistance to improve access to finance, and facilitate home ownership.

During 1994-95 the Housing Corporation has facilitated the sale of Housing New Zealand rental houses to tenants, known as the “Homebuy” programme. The corporation provides suspensory loans which are an important part of the programme, as well as advancing a significant proportion of first mortgage finance to participants.

Table 22.4 shows the amount of loan activity undertaken by the Housing Corporation in the last two financial years. As outlined above, the major form of assistance is now the accommodation supplement.

Table 22.4. HOUSING CORPORATION LOAN APPROVALS AND SALES

Programme (year ending June)NumberValue
1994199519941995
Source: Housing Corporation.
   $(million)
Home loans1,3341,39242.025.8
Housing New Zealand sales—HCNZ-130-8.9
Suspensory-343-2.8
Papakainga23460.91.8
Community lending1431.90.5
          Total1,3711,91444.739.8

GOVERNMENT HOUSING Ratio of state/private housing starts

Housing New Zealand Limited. Housing New Zealand is responsible for the management of a state rental housing stock of approximately 70,000 units. It 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 (currently the Minister of Housing). The shareholding ministers appoint the board of directors and also perform other functions as set out in the act.

Housing New Zealand has four regional offices and 54 neighbourhood units throughout the country. It competes on an equal basis with other housing providers, charging market rents for most of its tenancies. It is required, however, to rent its vacant units primarily to people on low incomes and to give priority access in allocations to people in temporary accommodation, or in accommodation detrimental to their health or well-being.

Table 22.5 summarises activity undertaken by Housing New Zealand in the last three financial years.

The number of community houses increased to 713 as at 30 June 1995. In line with 1994 Budget announcements, a new Community Housing Agency has been constituted as a wholly-owned subsidiary of the company on 1 July 1995.

Table 22.5. HOUSING NEW ZEALAND ACTIVITY

Year ended 30 June199319941995
Source: Housing New Zealand, Ministry of Housing.
Stock units70,23470,10469,690
Number of allocations13,33515,56714,333
Community houses provided652588713
Percentage of allocation to low income households949391

Ministry of Housing. Established on 1 July 1992, the ministry's main functions are the provision of high quality, independent and timely policy advice on housing to government, and efficient and effective tenancy bond and dispute resolution services across New Zealand.

Tenancy Services, which is a division of the Ministry of Housing, administers the Residential Tenancies Act 1986. The Act provides for 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. The ministry operates a Bond Processing Centre located in Porirua, for the lodgement, processing and refund of all bonds paid to landlords by their tenants.

In the year to 30 June 1994 there were 35,363 applications made to the Tenancy Tribunal. Of these applications, 26,524 were referred to mediation, of which 11,443 were resolved by this method. There were 8,966 applications that were either not resolved or only partly resolved in mediation and these were referred to the Tenancy Tribunal. Of the applications referred to mediation, 4,994 were withdrawn. The total number of applications referred to the tribunal for a hearing, either directly or after an attempted mediation, totalled 19,829. A total of 18,606 applications were resolved at the tribunal while the others were either withdrawn, adjourned or referred back to mediation.

Community housing. The delivery of assistance for community housing needs has been restructured as part of the Government's housing reforms. Community housing organisations provide housing to people with special needs, and, like other users of housing, they rent or borrow from whom they choose in order to perform this role.

Housing New Zealand has tenancies available at market rents, and the Housing Corporation makes available funds at market interest rates for use by community housing providers. The Community Funding Agency (a service of the Department of Social Welfare) is responsible for delivery of funding support for some approved community housing providers, to assist them in meeting their rent and mortgage outgoings.

Worker dwarfed by the 16-metre high retaining wall at the base of the Auckland casino construction.

Breaking into a male preserve—house renovation, female style.

22.3 Building and construction industry

Building and construction is an important part of the New Zealand economy. For the year ended 31 March 1995 there was $8.6 billion of gross fixed capital investment on building and other construction. For the previous year the equivalent figure was $7.0 billion. The number of full-time equivalent jobs (including working proprietors) in the industry at the end of March 1995 was 98,600, 6.1 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-storey buildings and light steel framing for industrial buildings. However, with the introduction of the performance-based building code, traditional systems are slowly being replaced with new methods and products, and with shortages of timber on the local market light steel framing is becoming more common.

Construction standards

Building controls are managed by the Building Industry Authority, a Crown entity established under the Building Act 1991 and responsible for writing the New Zealand Building Code. The code specifies the essential requirements for building performance to ensure the health and safety of building users and protection of other people's property. The Building Industry Authority issues guidance documents which provide methods of satisfying the code. The solutions published in these documents are not mandatory, and the building industry is encouraged to develop new materials and systems as alternatives to traditional methods. Important requirements of the code are durability, ease of access for all users and energy efficiency in buildings. Day-to-day administration is the responsibility of the territorial authorities who must confirm that building projects satisfy the code provisions.

Building consents are required for new buildings and for alterations for existing buildings. Any such work must also comply with district plans of territorial authorities prepared under the Resource Management Act 1991. Further information is set out in chapter 16, Land and environment. For completed buildings the requirement for regular maintenance of essential systems, such as fire alarms, lifts and air conditioning, is covered by compliance schedule and annual building warrant of fitness provisions.

New Zealand has developed particular expertise in the design of earthquake resistant structures, in other specialist areas such as hydro and geothermal power station design and construction, and the construction of economic granular-based road pavements.

Building authorisations

The main official building statistics are Statistics New Zealand's monthly analyses of building authorisations and its quarterly analyses of the value of work put in place. The prime source of these statistics is building consents issued by territorial authorities. Under the new building regulations effective from 1 January 1993, building authorisations are applied for under the building consents system administered by territorial local authorities. Prior to this date, applications were made under the building permits system. The building consents system, however, has wider coverage than the building permits system. The additional coverage includes some government building (particularly work on education buildings) and on-site drainage and reticulation work.

Table 22.6. VALUE OF BUILDING CONSENTS ISSUED

Type of buildingYear ended 31 March
19911992199319941995
Source: Statistics New Zealand.
 $(million)
Residential—
New dwellings1,997.11,704.11,851.32,172.12,864.1
Alterations/additions and outbuildings431.5413.8433.5507.6576.7
          Total residential buildings2,428.62,117.92,284.82,679.73,440.8
Non-residential (includes additions and alterations)     
Hostels, boardinghouses3.48.417.331.011.2
Hotels, motels, etc20.814.930.837.9207.8
Hospitals and nursing homes51.986.371.580.764.4
Education buildings117.169.194.5190.5231.5
Social, cultural, religious and recreational buildings105.394.0117.9223.9250.3
Shops, restaurants, taverns207.6135.9173.0207.5314.1
Office and administrative226.5169.2280.8196.4253.1
Storage buildings43.549.857.761.1105.5
Factories and industrial231.6126.5145.8252.7316.3
Farm buildings48.948.369.190.1108.1
Miscellaneous and multi-purpose buildings52.523.530.278.4137.6
          Total non-residential buildings1,109.2825.91,088.51,450.11,999.9
          Total all buildings3,537.92,943.83,373.24,129.75,440.7

The authorisation 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 or lower due to changes in wage rates and material prices.

The values of building authorisations for five years to March 1995 are described by types of building in table 22.6. Consents cover alterations and additions as well as new buildings.

The high proportion of the total value of building authorisations 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 1994-95 includes 23,681 permits or authorisations to a total value of $2,864.1 million for new dwellings. This includes authorisations for 29 new government dwellings (value $3.0 million).

Some categories of buildings used in those and other building consent tables require additional explanation. ‘Hostels and boarding houses’, 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 and recreational buildings’ includes churches, halls, theatres, cinemas, clubrooms, community centres, and grandstands.

Tea break at the top—the Auckland casino sky tower.

NEW DWELLINGS Number of building permits issued

Table 22.7. LOCATION AND VALUE OF BUILDING AUTHORISATIONS 1995*

Main urban areaNew dwellingsNon-residential value†Total buildings value†
NumberResidential value

* Year ended 31 March.

Includes alterations and additions.

Source: Statistics New Zealand.

   $(million) 
Whangarei22223.016.043.0
Auckland (main) urban area7,7881,072.4694.71,937.8
Northern Auckland zone2,347328.3113.8484.8
Western Auckland zone1,107138.154.8213.3
Central Auckland zone2,539339.5393.8815.1
Southern Auckland zone1,795266.5132.3424.6
Hamilton77098.166.3179.4
Tauranga1,218138.235.8187.1
Rotorua19820.633.559.4
Gisborne10513.018.535.6
Napier35440.922.369.2
Hastings20723.921.051.3
New Plymouth23626.322.857.2
Wanganui11513.014.532.1
Palmerston North39345.762.5115.8
Wellington (main) urban area931122.1180.9357.3
Upper Hutt Valley zone445.24.112.5
Lower Hutt Valley zone16122.433.667.0
Porirua Basin zone17227.713.846.2
Wellington City zone55466.7129.4231.6
Nelson54859.221.687.1
Christchurch2,790302.5167.7508.6
Timaru9110.117.630.4
Dunedin39643.849.8110.2
Invercargill14017.315.938.4
          Total, 17 main urban areas16,5022,070.11,461.43,899.9

BUILDING CONSENTS Residential consents as a percentage of all building consents, by value

Table 22.8. TYPES OF BUILDING AUTHORISATIONS 1995*†

Type of buildingType of applicantTotal
Producer enterprisesFinancial intermediariesGeneral governmentPrivate non-profit organisationsHouseholds and foreign

* Year ended 31 March.

Includes alterations and additions.

Source: Statistics New Zealand.

   $(000)   
Residential7,089-2,2993,2053,428,2133,440,806
Hostels and boarding houses2,075-7,3781,739-11,192
Hotels, motels, etc207,101-276455-207,832
Hospitals and nursing homes26,2015514,55423,624-64,434
Education buildings2,433350217,07311,652-231,508
Social, cultural, religious and recreational114,427-65,43470,406-250,267
Shops, restaurants, taverns301,6632,4427369,242-314,083
Office and administrative166,50529,46950,2166,84040253,070
Storage buildings104,198290877137-105,502
Factories and industrial306,7084428,6255,598-316,334
Farm buildings107,567-144374-108,085
Miscellaneous and multipurpose124,5981410,5362,459-137,607
          All buildings1,470,56533,062378,148130,6923,428,2535,440,720
Totals for 1994998,59242,649297,213116,1242,675,1714,129,745

Table 22.9. BUILDING AUTHORISATIONS

Year ended 31 MarchNew dwellingsResidential buildings (including outbuildings)*All buildings*
UnitsValueFloor area

* Includes additions and alterations.

Source: Statistics New Zealand.

 no$(million)sq m (000)$(million)
199120,8201,997.12,827.02,428.63,537.9
199217,6531,704.12,465.62,117.92,943.8
199317,9051,851.32,746.72,284.83,373.3
199419,3612,172.13,101.72,679.74,129.7
199523,6812,864.13,937.53,440.85,440.7

SIZE OF NEW DWELLINGS Average floor area

Work put in place. Statistics New Zealand conducts quarterly surveys of building work put in place. In contrast with the statistics based on building authorisations, 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 authorisation and the commencement of building, and the actual work for which an authorisation is issued can be extended over varying periods.

Table 22.1. WORK PUT IN PLACE

Year ended 31 MarchDwellings
New dwellingsAlterations additions and outbuildingsSubtotal
GovernmentOther
 $(million)
199188.32,000.4487.82,576.5
199257.91,650.5462.42,170.8
199323.61,808.1486.02,317.1
19941.42,229.2561.02,791.7
19951.92,892.0614.43,508.3
Year ended 31 MarchNon-residential buildings (including alterations and additions)Total
Hotels, boarding houses and nursing homesHospitals and industrial buildingsFactoriesCommercial buildings*Education buildingsMiscellaneous† and multi-purpose‡Subtotal

* Includes shops, restaurants, taverns, offices, administrative buildings and storage buildings.

Includes social, cultural, religious, recreational and farm buildings.

Includes shop/offices, office/warehouses, and shop/office/warehouses.

Source: Statistics New Zealand.

 $(million)
1991127.095.3354.3965.197.7214.81,854.24,430.7
199232.391.2171.8565.4128.3214.31,203.43,374.2
199339.6115.1167.0480.3106.8244.11,152.93,470.6
199476.3113.2288.9600.2189.8330.51,598.84,390.5
1995141.177.9358.1809.9212.0513.82,112.75,621.0

HOUSING COSTS Average building cost per square metre

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 since the December 1989 quarter.

Table 22.11. BUILDING AND CONSTRUCTION: STATISTICAL SUMMARY*

Statistical item1991-921992-93

* The 1992 data is final and the 1993 data is provisional.

Source: Statistics New Zealand.

  $(million)
Stocks  
          Closing621.7516.6
          Opening655.1623.9
Income—  
          Sales of goods and services7,548.47,680.2
          Interest, etc received62.146.6
          Government grants and subsidies20.145.2
          All other income13.620.1
Total sales and other income7,644.27,792.1
          Adjusted for change in stock values7,610.87,684.8
Operating expenditure—  
          Salaries and wages paid to employees1,275.31,182.0
          Redundancy and severance15.29.2
          Salaries and wages to working proprietors396.4325.3
          Levies paid to ACC52.551.9
          Employer contributions to superannuation schemes14.212.6
          Fringe benefit tax11.311.9
          Purchases and other operating expenses4,999.85,241.3
          Interest, bad debts, etc171.2138.7
          Indirect taxes37.240.3
          Depreciation186.3181.8
          All other operating expenditure40.653.0
Total operating expenditure7,184.97,238.8
Net profit before tax, after deducting extraordinaries and salaries and wages to working proprietors849.3804.2
Net profit before tax, after deducting salaries and wages to working proprietors822.3771.3
Fixed tangible assets—  
          Purchases of plant, machinery, etc217.0242.2
          Purchases of land and land improvements21.913.2
          Purchases of buildings and other construction41.920.4
          Total purchases of fixed tangible assets280.8275.7
          Sales of fixed tangible assets119.128.0
Balance sheet—  
          Shareholders funds, etc1,664.71,757.1
          Other liabilities3,044.72,848.1
          Total capital and liabilities4,709.44,605.2
Fixed tangible assets1,527.41,384.8
Other assets3,182.03,220.4
Total assets4,709.44,605.2
Ratiospercent
          Profit margin on sales11.310.5
          Return on equity51.045.8
          Return on total assets18.017.5
          Liabilities structure35.338.2

For the year ended in the March 1995 quarter the index recorded increases of 10.7 percent for residential buildings, 3.6 percent for non-residential buildings, 1.4 percent for other construction, and a decrease of 0.5 percent for land improvements.

Industry statistics. Statistics New Zealand's periodic 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 business classed in Major Division 5 of the New Zealand Standard Industrial Classification. A summary of results is given in table 22.11.

Contributors

  • 22.1 Housing New Zealand; Ministry of Housing; Valuation New Zealand; Statistics New Zealand; Department of Survey and Land Information.

  • 22.2 Statistics New Zealand; Reserve Bank of New Zealand; Ministry of Maori Development (Te Puni Kokiri); Housing Corporation; Housing New Zealand; Community Funding Agency.

  • 22.3 Statistics New Zealand; Building Industry Authority.

Special articles

Department of Conservation; Building Research Association of New Zealand.

Further information

Housing

Annual Report of the Building Research Association of New Zealand.

Report of the Housing Corporation (Parl paper B13).

Annual Report of Housing New Zealand Limited.

Report of the Ministry of Housing (Parl paper B12).

Report of the Valuation Department (Parl paper G26).

Residential Sales Summary. Valuation New Zealand (quarterly).

Statement of Corporate Intent. Housing New Zealand Limited.

Urban Property Sales Statistics. Valuation New Zealand (six-monthly).

Building and construction industry

Annual Report of the Building Industry Authority.

BUILD. Building Research Association of New Zealand (bi-monthly).

Building and Construction and Transport, Storage and Communication 1987. Statistics New Zealand (Economy Wide Census).

Building Statistics. Statistics New Zealand (annual).

Enterprise Survey. Statistics New Zealand (annual).

Chapter 23. Transport

The largest gabion wall in the South Island, built to support sections of the Milford Road.

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 2,000 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.

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. In 1994 NZ Rail was sold to the private sector and in 1995 was renamed Tranz Rail Ltd.

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. The Land Transport Safety Authority, responsible for road and rail safety, was established in 1993, from the former land transport division of the Ministry of Transport. In 1996 Tranzfund New Zealand will be formed and will be responsible for funding roading and alternatives to roading, leaving Transit New Zealand as the state highway operator.

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. Competition was further stimulated by revocation of overseas investment limitations in 1986 and in 1990 qualitative licensing was removed leaving safety certification as the only criterion for market entry.

The Government announced a new liberalised external aviation policy in 1985 which has resulted in an expansion in international air services. Twenty-five foreign airlines, including one cargo airline, operate to New Zealand. In addition, there are two New Zealand international scheduled airlines: Air New Zealand, and Kiwi Travel International Airlines, which commenced services in 1995. The foreign investment changes in 1986 led 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 the costs of its operations from aviation operators.

Airports, previously run by local and central government, were encouraged to form companies. Auckland, Christchurch and Wellington international airports have been corporatised as several regional airports have. Other changes have occurred within the aviation infrastructure, such as the creation of the state-owned enterprise, the Airways Corporation of New Zealand Limited, the stand-alone Civil Aviation Authority, and the independent agency, the Transport Accident Investigation Commission.

Comprehensive reforms of New Zealand's waterfront since 1988 have resulted in cost savings and efficiency improvements. Thirteen port companies were established in 1988 to take over the ownership and operation of commercial port facilities, and in 1989 waterfront labour was reformed. This reform saw the end of a Government-managed labour pool system, and the introduction on the waterfront of direct employment and enterprise bargaining. In 1995, the Government moved within new shipping law to allow foreign operators to enter New Zealand's coastal shipping trade. Some non-Australasian-crewed ships began to enter the trans-Tasman trade, although not in such a quantity of service that has caused the withdrawal of Australian or New Zealand-crewed ships.

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 Major Division 7 of the New Zealand Standard Industrial Classification.

Table 23.1. TRANSPORT AND STORAGE : STATISTICAL SUMMARY

Statistical item1991-921992-93R1993-94P

* Coverage: Provision of land, sea and air passenger and freight transport and incidental service. Operation of stores and warehousing facilities.

† Refers to Total Income per FTE before Stock Adjustments.

‡ Refers to Net Profit per FTE before tax, extraordinaries, and salaries and wages to working proprietors.

  $(million) 
Closing stocks69.481.673.9
Opening stocks66.671.578.6
Sales of goods and services8,174.08,311.38,885.2
Interest, dividends, donations, royalties, patent fees, insurance claims received and bad debts recovered118.7101.898.1
Government grants and subsidies71.981.978.3
Other income including extraordinaries35.993.576.7
Total income8,400.68,588.59,138.4
            Total income adjusted for inventories8,403.48,598.69,133.7
Salaries and wages paid to employees1,737.81,795.71,910.7
Redundancy and severance57.435.615.0
Salaries and wages to working proprietors (SW to WPs)194.4159.1167.3
Levies paid to Accident Compensation Corporation38.644.150.4
Employer contributions to superannuation schemes51.456.853.7
Fringe Benefit Tax21.817.916.8
Purchases and other operating expenses4,659.24,770.25,131.8
Interest, donations, grants, royalties and patent fees paid and bad debts written off355.6302.3219.1
Indirect taxes (excluding Fringe Benefit Tax)220.7223.3229.6
Depreciation577.5570.8572.0
Other expenses including extraordinaries50.561.597.7
            Total expenditure7,907.48,001.78,449.0
            Net profit before tax, extraordinaries, SW to WPs705.0724.0873.0
            Net profit before tax, SW to WPs690.4756.0852.1
Purchases of plant, machinery, vehicles and equipment882.21,339.51,049.6
Purchases of land, and land improvements30.728.560.2
Purchases of buildings and other construction114.689.6101.0
Total purchases of fixed tangible assets1,027.51,457.51,210.8
Sales of fixed tangible assets464.3651.2560.5
Shareholders funds or owners equity3,556.13,950.84,114.2
Other liabilities4,586.74,687.34,906.2
Total capital and liabilities8,142.88,638.19,020.4
Fixed tangible assets5,273.05,527.95,538.4
Other assets2,869.83,110.23,482.0
Total assets8,142.88,638.19,020.4
Ratios ($)   
            Total income per FTE†.161,424.6163,596.6
            Net profit per FTE‡.13,608.115,629.4
Ratios (%)   
    Profit margin on sales8.68.79.8
    Return on equity19.818.321.2
    Return on total assets8.78.49.7
    Liabilities structure43.745.745.6

23.1 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 are 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, to international competition and foreign-crewed ships. The trade has historically been reserved for Australian and New Zealand-crewed ships through a maritime union accord. Neither the Australian nor the New Zealand Government supports the accord and both are fully committed to open competition in all international trades, including the trans-Tasman trade.

The Maritime Transport Act 1994 introduced new law covering ship safety, maritime liability and marine environmental protection. A joint industry-government Maritime Safety Authority was established in August 1993. The authority is primarily funded from user charges and is responsible for maritime safety and marine pollution functions.

Overseas lines

Conference lines handle much of New Zealand's overseas shipping. Conferences are associations between shipping companies to provide a joint service on several trade routes. Increased competition in New Zealand's international trades over recent years has seen increasing participation by independent carriers, some of which operate round the world services that call at Auckland. An indication of New Zealand's established trades is set out below:

United Kingdom/Europe. The New Zealand European Shipping Association plays a major role in servicing Mediterranean and Northern European ports. The P & O group (UK) has 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). Malaysia International Shipping Corporation and Pacific International Lines (Singapore) in 1996 introduce a joint service between New Zealand and South-East Asia. The Middle East Container Service operated by NYK Line, P & O and Blue Star Line also serves Singapore and the Straits area.

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) ships service both east and west coasts. International Marine Transport Lines operate to the West Coast of North America, and 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 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 a number of smaller ships on the trade.

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. Sofrana Unilines, Cook Islands National Line, W Islands Lines, NZ Pacific Container Line, Pacific Direct Line, and Blue Star Line also operate ships in New Zealand's South Pacific trade and Southern Ocean Container Line and Blue Star Line provide services as part of their North America trades. These operators cumulatively provide New Zealand with services to the Cook Islands, Fiji, Kiribati (transshipment), New Caledonia, Niue (on inducement), Papua New Guinea, the Solomon Islands, Tahiti, Tonga, Tuvalu (transshipment), 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 operates four roll-on roll-off vessels on services linking Wellington, Auckland, Nelson and Lyttelton. Strait Shipping operates a livestock carrier and a roll-on roll-off vessel between Wellington, Picton and Nelson. A new operator, Searoad, commenced a one-ship service in April 1996 linking Auckland and Tauranga with Lyttelton and Timaru. Auckland-based Sea-Tow operates three tugs on tramp services around the New Zealand coast.

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.

Some coastal cargo is also carried by international ships transiting the New Zealand coast in the course of their international voyages.

Since late 1994, New Zealand Rail (Tranz Rail) has operated a high-speed car and passenger ferry between Wellington and Picton over the summer season. Two other high-speed ferry services across Cook Strait failed in their first season of operation, one in early 1995, the other in April 1996.

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. Liquigas operates the LPG carrier Tarihiko under New Zealand Line management.

Services to shipping

Ports. 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 four are partly privatised and further private ownership is being encouraged by the Government.

Registration of ships. As at 31 December 1995 there were 2,977 ships on the New Zealand Register of Ships, with a total gross tonnage of 482,180 tonnes. This compared with 2,885 ships totalling 316,829 gross tonnes in December 1994. Under the provisions of the Ship Registration Act 1992, ships not exceeding 24 metres register length are not required to have tonnages registered.

New registrations up until 31 December 1995 included the tanker Toanui, the deep sea fishing vessels, Kermadec, San Waitaki, Taharaki, Sarfaq, Otakou and Taimania and the cargo ship Suilven.

Vessels removed from the New Zealand Register during 1995 included the fishing vessels Corvina and Amaltal Challenger, the tugs Sea-Tow 21 and 22.

Table 23.2. REGISTERED VESSELS INVOLVED IN DOMESTIC AND OVERSEAS TRADE*

Number of vesselsNet registered tonnage†Number of crew‡ 

* Ships in overseas trade mainly engaged in trans-Tasman and Pacific Islands trading movements.

† The shipping register is not metricated and 1 net register ton equals 100 cubic feet (or 2.83 cubic metres) of cargo capacity.

‡ Crew figures taken from annual manning list as at 1 July 1993.

Source: Maritime Safety Authority.

Domestic   
19921452,702362
19931231,159313
1994......
19951220,221269
Overseas   
1992849,297145
1993857,582147
1994......
1995969,354170

Seafarer qualifications. The Maritime Safety Authority is the licensing body for merchant navy personnel. Such seafarers, after qualifying sea service followed by further training and examination at approved teaching institutions, are issued with certificates of competency as master, mate, engineer or integrated rating. There are different classes of certificates of competency for foreign-going, coastal or restricted-limit ships. The foreign-going certificates, and endorsements for service on special types of ships, meet in full the requirements of the relevant United Nations' conventions and are accepted (subject to appropriate checks) for use in other countries.

The authority issues separate certificates of competency to skippers, mates, engineers and deckhands of deep-sea, coastal and inshore fishing boats. These also require sea service followed by training and examination at approved teaching institutions.

The Royal New Zealand Coastguard Federation looks after pleasure-boat mariners. The federation holds courses and conducts voluntary examinations for certificates of competency as boat master and yacht master.

Ship safety. The New Zealand Government is a signatory to many International Maritime Organisation (IMO) and International Labour Organisation (ILO) conventions which specify safety standards for ships and health and safety standards for their crews. The Maritime Safety Authority is responsible for administering these conventions which are reflected in the Maritime Transport Act 1994. The authority inspects foreign and New Zealand ships to ensure they meet the required standards.

Marine safety services. There are 140 navigational aids owned and maintained by the Maritime Safety Authority on headlands, capes, reefs and shoals around 5,400 nautical miles (9,000 kilometres) of coastline. These aids consisted of 95 automatic lights, 39 day beacons, 5 navigational buoys and one radio beacon. There are no staffed lighthouses in New Zealand.

The Maritime Safety Authority provides a distress and safety radio communication system for mariners. Radio frequencies dedicated to distress messages are monitored around the clock in the Very High, Medium and High Frequency bands. This system also broadcasts weather reports, warnings of maritime hazards and assists during search and rescue operations and medical emergencies at sea.

The cost of providing the navigation aids and distress and safety radio systems is met from a marine safety charge which is levied on all commercial ships (New Zealand and foreign) of eight metres and over in length. The Government also contributes, on behalf of the recreational boating sector, a share of these costs.

Wrecks. Receivers of Wreck may be appointed by the Director of Maritime Safety. They 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.

Maritime Accidents 1994–1995. The Maritime Safety Authority investigates maritime accidents and incidents to identify their causes, analyse trends and make recommendations as to how similar occurrences can be avoided. Investigations also assess whether there has been any breach of the law.

Marine pollution. The Maritime Safety Authority is required to promote a clean marine environment and is responsible for developing and implementing New Zealand's marine oil spill response strategy. It deals with the prevention of all types of ship-sourced marine pollution and ensures that New Zealand is prepared for, and can respond to, marine oil spills.

A tiered planning and response system for dealing with oil spills has been established at the local, regional, national and international levels. The National Oil Spill Service Centre at Te Atatu, Auckland, houses equipment which can be mobilised immediately in the event of an oil spill. This national stockpile complements equipment the authority is locating strategically in the regions.

23.2 Civil aviation

Control of civil aviation

New Zealand is one of the world's most aviation-driven nations, with one of the highest percentages of aircraft fleet per head of population. New Zealand has a civil aircraft register of about 3,303 aircraft—an increase of 220 in the past year. There are about 10,000 licensed pilots, engineers and air traffic controllers, and more than 400 organisations engaged in the aviation business ranging from the international airline through to sports aviation bodies. More than 3 million passengers were carried domestically last year.

Overall responsibility for civil aviation lies with the Minister of Transport. Since 1992, the Civil Aviation Authority of New Zealand (CAA) has operated as a Crown-owned entity separate from the Ministry of Transport, but reporting directly to the minister. The CAA operates under an appointed board with the chief executive responsible for promoting civil aviation safety and security at reasonable cost. This includes developing and providing civil aviation policy and advice, safety and security standards for aircraft operations, airports and aviation service industries, and monitoring their adherence. The CAA performs exit and entry control over participants in aviation, investigates and analyses incidents and some accidents in order to amend standards and regulations and respond to changes in the working environment and technology.

The advent of the authority ushered in a new philosophy which places responsibility for safe operations on the operator instead of the regulator. The authority, as regulator, monitors participant compliance through an audit system. The CAA is funded 28 percent from the Crown for policy advice and other services. The remainder of the $12 million budget is drawn from industry by direct and indirect cost recovery.

Tributes for a dead Ansett colleague, laid on the wreckage of the plane.

The Airways Corporation of New Zealand Limited. The movement of air traffic in New Zealand airspace is managed by the Airways Corporation of New Zealand Limited. The Airways Corporation provides air traffic services to civil and military air traffic and is responsible for the planning, provision and maintenance of radars, navigational aids and communications. Established in 1987 as a State-owned enterprise, Airways aims to ensure the safe, orderly and expeditious flow of air traffic within New Zealand airspace, which extends over the land mass and the seas and oceans surrounding it. Airways also provides services over 34 million square kilometres of the Pacific region, a responsibility assigned to New Zealand by the International Civil Aviation Organisation (ICAO). Airways was the first fully commercial national air traffic control organisation in the world.

Aircraft operators and pilots pay Airways for the services they use. These include radar control, landing charges and aeronautical charts and publications. Information imperative to safety in the skies, such as weather forecasts, are also provided. Airways has contracts with airport operators in New Zealand and overseas for the installation and maintenance of technical facilities including runway lighting and navigation aids.

To provide its wide range of services, Airways uses primary and secondary surveillance radars, computerised flight data and radar data processing systems, some 111 navigational aids, air-to-ground radio telephony and an extensive ground-to-ground telecommunications network linking Air Traffic Control (ATC) units both at home and abroad. Apart from its day-to-day operational responsibilities, Airways is engaged in planning the development of the ATC infrastructure to meet the future demands of civil and military air traffic. It also assists in discharging the operational and technical commitments arising from New Zealand's membership of ICAO. All military ATC and radar surveillance is supplied on contract to the Air Force by the corporation.

In order to capitalise on new developments and ever-changing technology, Airways is committed to an investment programme more radical and far-reaching than anything seen before in New Zealand air traffic control. In its first seven years of existence the corporation completed a modernisation of New Zealand's entire air traffic control system, and the replacement and upgrade of the nation's network of navigation aids. Together, these projects have positioned the corporation, and with it the aviation industry, to take full advantage of the next generation of air traffic control technology—satellites.

Airways Corporation provides extensive ground services including air traffic control and flight information, navigation services, alerting services and telecommunications. The corporation also assists search and rescue and aerodrome emergency organisations. Elements of emergency organisations are provided at most aerodromes.

Airways Corporation also provides all air navigation facilities in New Zealand. These include electronic aids such as non-directional medium frequency beacons (NDB), Doppler very-high-frequency omni-directional radio ranges (DVOR), 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). An aeronautical Information Service publishes NOTAM (Notices to Airmen) and other aeronautical publications. It works closely with the Department of Land and Survey Information in the production of aeronautical maps and charts.

The corporation also maintains an international aviation training centre in Christchurch. Regular courses are conducted in air traffic services and telecommunications.

Domestic air services

The deregulation of domestic aviation commenced in 1983 and was completed in 1990 with the abolition of air services licensing. New Zealand has also allowed up to 100 percent foreign ownership of domestic airlines, for example Ansett New Zealand. Air New Zealand and Ansett New Zealand are the major domestic operators and both airlines have regional connections through the “Air New Zealand Link” and “Ansett New Zealand Regional” brandings of commuter airlines.

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 29 such agreements and has negotiated another which is awaiting signature. 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. The policy states that 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 and providing for fair and equal opportunities for New Zealand airlines. Fifteen foreign airlines and one New Zealand airline have commenced scheduled international passenger services to and from New Zealand since the policy was introduced in 1985.

Table 23.3. FOREIGN AIRLINE OPERATIONS—DATE OF COMMENCEMENT AND ROUTES OPERATED

DateAirlineRoutes now operated

* Qantas, Canadian Airlines International, Japan Airlines and Mandarin 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.

† American Airlines originally commenced services to New Zealand in 1970 but ceased operating in 1974. Services recommenced for the period February 1990-March 1992. The airline now code-shares on Qantas.

1 Apr 1961Qantas*Sydney/Melbourne/Brisbane/Perth/Adelaide/
Hobart/Cairns-Auckland/Christchurch/Wellington/
Sydney-Auckland-Papeete-Los Angeles Melbourne-Auckland-Los Angeles
4 Apr 1963British AirwaysLondon-Los Angeles-Auckland-Melbourne (code-
shared with Qantas, Los Angeles-Auckland-
Melbourne)
1 Oct 1974Air PacificSuva/Nadi-Auckland
Nadi-Wellington
Nadi-Christchurch
1 May 1976Singapore AirlinesSingapore-Auckland/Christchurch-Singapore-
Sydney/Auckland (freight)
25 Feb 1978Polynesian AirlinesApia-Tonga-Auckland, Apia-Tonga-Auckland-
Sydney, Apia-Wellington-Melbourne
1 Dec 1979Air NauruNauru-Auckland
1 Jul 1980Japan Airlines*Tokyo-Auckland, Tokyo-Christchurch-Auckland,
Nagoya-Auckland
Osaka-Auckland
Fukuoka-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 Airlines Los Angeles-Auckland-Melbourne 
8 Nov 1987Air CaledonieNoumea-Auckland
5 Nov 1987Thai AirwaysBangkok-Sydney-Auckland
4 Nov 1988Garuda IndonesiaJakarta-Denpasar-Auckland
1 Nov 1989Air VanuatuPort Vila-Auckland
5 Dec 1989Malaysia AirlinesKuala Lumpur-Brisbane-Auckland
13 Jun 1990Solomon AirlinesHoniara-Port Vila, Auckland Honiara-Port Vila-
Nadi-Auckland
1 Jul 1991Royal Tongan AirlinesTonga-Auckland
29 Oct 1991LufthansaFrankfurt-Los Angeles-Auckland (freight, code-
shared with Air New Zealand)
Frankfurt-Bangkok-Sydney-Auckland (passenger,
code-shared with Thai Airways) from late 1995.
  
7 Nov 1992Mandarin Airlines*Taipei-Auckland
3 Nov 1993Korean AirSeoul-Auckland
Seoul-Nadi-Auckland
Seoul-Auckland-Christchurch
7 Nov 1993EVA AirTaipei-Brisbane-Auckland
1 Jul 1995Evergreen International AirlinesLos Angeles-Honolulu-Auckland-Melbourne
(capacity taken up by Air New Zealand)
1 Nov 1995American Airlines†Los Angeles-Auckland-Melbourne
18 Dec 1995Ansett AustraliaSydney-Auckland

Air New Zealand offers services to six gateways in Australia (Sydney, Melbourne, Brisbane, Perth, 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, Singapore, Indonesia, Japan (Tokyo, Osaka, Nagoya and Fukuoka), 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). Kiwi Travel International Airlines commenced services to Sydney and Brisbane from Hamilton and Dunedin in 1995. Services from Auckland began in early 1996 and Perth and Melbourne are scheduled to be added as destinations from 1 July 1996.

The Tasman route is the busiest air route into New Zealand in both the volume of passengers carried and the number of airlines operating. Ten passenger and one cargo airlines offer services between Australia and New Zealand. There were 402,580 visitor arrivals from Australia who came to New Zealand in the year to March 1995. In the same period, 431,365 New Zealanders travelled to Australia, indicating that Australia was the destination in which they expected to spend the greatest time. There were 1,343,003 foreigners who visited New Zealand in 1995. The greatest number of visitors to New Zealand are Australians, followed by Americans, Japanese, British, Korean and Taiwanese.

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, Qantas Airways, Mandarin Airlines and Japan Airlines.

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, 2,235 km; Wellington-Melbourne, 2,589 km; and Wellington-Brisbane, 2,508 km; Christchurch-Sydney, 2,124 km; Christchurch-Melbourne, 2,413 km; Christchurch-Brisbane, 2495 km; and Christchurch-Hobart, 2,024 km.

Table 23.4. DISTANCES FROM AUCKLAND AIRPORT TO SELECTED OVERSEAS DESTINATIONS*

DestinationDistance

* These are airport-to-airport great circle distances in kilometres.

Adelaide3,247
Apia2,893
Bangkok11,500
Brisbane2,293
Buenos Aires15,884
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
Santiago12,822
Seoul12,869
Singapore8,410
Suva2,141
Sydney2,158
Taipei10,654
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. 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 nine 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 airports operated by airport companies, resulting in improved levels of service to tourists visiting those locations. Corporatisation gives the airports the flexibility to make the most from changes in the market.

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.

23.3 Railways

In 1994 new services were introduced, such as 24 South, a 24-hour freight link between Auckland and Christchurch which utilises the new around-the-clock Interisland ferry services; the Bay Raider, launched in August 1994, is an inter-modal rail/road operation linking Auckland with Poverty Bay and Hawke's Bay using Rotorua as a freight hub; and New Zealand Rail has been through a period of transition from a government-owned and operated organisation to a commercially responsible, privately-owned business. For more than a century, railways in New Zealand were run as a government department until, in 1982, New Zealand Railways Corporation was established as a statutory corporation with a commercial mandate. In 1986 it became a state-owned enterprise, and in October 1990 the Government established New Zealand Rail Limited as a limited liability company. During these years of transport industry deregulation New Zealand Rail's staff numbers were reduced from more than 21,000 to around 5,000, productivity improved by nearly 300 percent in the land-based workforce, and the organisation was transformed into a profitable business, a trend which has continued to the present day.

On 20 July 1993 the Government announced the sale of New Zealand Rail to a consortium comprising Wisconsin Central Transportation Corporation and Berkshire Partners (with a 60 percent holding) and Fay, Richwhite & Company Limited (40 percent). The sale was completed on 30 September 1993. Shareholdings at 30 June 1995 were: Wisconsin Central Transportation Corporation 31.35 percent, Berkshire Partners 25.18 percent and Fay Richwhite & Company Limited (now as Pacific Rail Limited) 25.18 percent.

The company maintained a lease from the Crown to occupy land for railway operations.

In the year to 30 June 1995, the company increased its operating profit to $106 million (compared to $79 million in 1994 and $44 million in 1993) and the net profit rose to $73.6 million ($38.9 million in 1994, $16.9 million in 1993).

Tranz Rail (the company's name since 18 October 1995) plays a key role in New Zealand's increasingly competitive transport market. It operates a national rail network, interisland ferry services and an extensive owner/driver truck network.

Installing anchors on bends in the railway line near Waihola in Central Otago to stop the tracks moving in the heat.

Freight Transport. Tranz Link, formerly Railfreight, provides freight transport by rail, road or sea; it has a road network of more than 200 owner-drivers. It also offers warehousing, distribution and freight management services. It is Tranz Rail's largest revenue earner, generating 72 percent of the company's total business. In the 1994-95 financial year it carried 9.3 million tonnes of freight an average distance of 330 kilometres.

A new coastal shipping service The Coastliner to move containerised freight between Auckland, Nelson and the West Coast of the South Island began in March 1994.

The main Tranz Rail operating business units are:

  • Bulk Freight moves bulk commodity products such as coal, steel and cement. The majority of coal is transported from the coal mines situated on the West Coast of New Zealand to the export port of Lyttelton and to BHP Glenbrook from where steel is transported to export ports and domestic markets.

  • Cargoflow transports mainly meat and dairy products in bulk containers and conventional loads and handles containerised imports.

  • Forestry manages the transportation of logs for domestic processing and export and other timber products, such as pulp and paper, supplementing its transport services with storage and container packing options.

  • Distribution is an inter-modal service which operates a nationwide network of freight terminals, utilising the owner/driver network and fleet of RoadRailers, wagons that can travel by road or rail. It also offers refrigerated transport and warehousing services.

  • Refrigerated provides specialist temperature-controlled transport and distribution services.

  • Kombi Freight and Container Services provides freight forwarding companies with linehaul and delivery services, manages container repair and storage depots and AutoExpress which moves motor vehicles in custom-built rail wagons.

Passenger Services. Tranz Rail operates long-distance rail passenger services and urban commuter rail services in Wellington and Auckland.

Tranz Scenic—The flagship of its eight services is undoubtedly the TranzAlpine between Christchurch and Greymouth which is renowned as one of the great train journeys of the world with its spectacular scenery of the Southern Alps. Patronage in 1994-95 increased 21 percent after a 20 percent increase the previous year. Other South Island services include the Coastal Pacific between Picton and Christchurch and the Southerner between Christchurch and Invercargill.

The North Island long distance train services are the Overlander and Northerner which travel between Auckland and Wellington in the day-time and night-time respectively, the Kaimai Express between Auckland and Tauranga, the Geyserland between Auckland and Rotorua and the Bay Express between Wellington and Napier.

The award-winning carriage refurbishment programme continued during the year.

Commuter rail services—Tranz Metro, formerly Cityrail, operates urban commuter services in Wellington and Auckland, providing an estimated 10.2 million passenger trips a year. Wellington has traditionally been a strong rail commuter market with services linking the central city with Johnsonville, Paraparaumu, and the Hutt Valley as well as the nearby regions of the Manawatu and Wairarapa. In 1995 a carriage refurbishment programme was announced in conjunction with the Wellington Regional Council to upgrade the region's 13-year-old Ganz Mavag electric units.

In Auckland, urban passenger services were boosted by the introduction of diesel multiple units (DMUs) in 1993. While passenger volumes remain relatively small, patronage increased 60 percent in 1995.

Interisland ferry services—Tranz Rail operates three conventional rail ferries on round-the-clock sailings across Cook Strait between Wellington and Picton. Arahura and Aratika are multi-purpose roll-on roll-off vessels carrying passengers, rail wagons and commercial vehicles, with on-board facilities including movie theatres, restaurants, food courts, bars, shops, study rooms and children's play areas, whilst Arahanga caters to the rail freight and commercial vehicle markets.

In 1994-95, it also operated a fast ferry, The Lynx, for four months, the first time a commercial fast ferry had plied the route. This service was resumed in December 1995.

The four vessels made 5,136 crossings of Cook Strait in the year to 30 June 1995. More significantly, during that period more than one million passenger journeys were made, the first time that milestone had been passed. The three conventional ferries also transported 27,000 commercial vehicles and 79,000 rail wagons.

Operations. Operations supports Tranz Link, Tranz Scenic and Tranz Metro by providing infrastructure and support services, including freight handling, train crewing, maintaining the rail network and rolling stock, managing rail yards and designing new wagons and carriages. It also operates two ISO 9002-accredited heavy engineering workshops, Hillside in Dunedin and Hutt near Wellington, which build and upgrade freight and passenger rolling stock as well as tendering for outside business. Daily servicing of the rolling stock is carried out at 20 depots throughout the country.

In 1994, operations began a major upgrading of the company's wagon fleet, to develop customer-specific designs and high-capacity wagons. The company is progressively rebuilding its fleet of DF and DX locomotives to improve power and fuel efficiency. A major emphasis in 1995 was increased use of technology to introduce remote-controlled shunting and a programme to destress track prone to heat buckling.

Rolling stock and structures. Tranz Rail operates a railway network extending over 3,973 kilometres. There are a number of short private railway sidings mainly serving collieries and other industrial undertakings.

To carry the railways across the many gorges, rivers, and streams in New Zealand, 2,330 bridges and viaducts have been built with a total length of 75.45 kilometres. The longest railway bridge is that over the Rakaia River, in Canterbury, spanning 1,743 metres. The highest viaduct is the Mohaka, standing 97 metres above the Mohaka River on the Napier-Gisborne line. Twenty-one viaducts carry the rails more than 33 metres above the rivers and streams they cross.

There are 150 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. The Otira Tunnel has a gradient as steep as 1 in 33 and the line running through it is electrified.

At 30 June 1995 Tranz Rail's track and rolling stock included 275 diesel and electric locomotives, 6,949 freight wagons, 279 passenger carriages and commuter units, three rail ferries and plant and support equipment.

Technology. New Zealand Rail has invested in an electronic data interchange (EDI) system which creates an electronic link to customers, initially for the transfer of waybills and invoices, and later for wagon ordering, cargo tracking and payments. EDI allows fast, paperless transactions of information between the company and its customers.

This will complement the state-of-the-art AMICUS computer system, which combines electronic waybilling with a wagon-tracking and weighing system. Further developments include an integrated freight management system to allow customers to track their freight movements along the network.

Environment and safety. Rail can carry higher tonnages with greater fuel efficiency, ensuring less disturbance to road travellers. For example, one log train can carry as much as 65 truck and trailer units. The urban commuter services also remove traffic congestion from the city highways and reduce carbon emissions. Tranz Rail participates in the Energy-wise Companies campaign, promoted by the Energy Efficiency and Conservation Authority which, in conjunction with the Government and energy supply authorities, aims to maximise industrial energy efficiency over the next five years.

‘Operation RailSafe’ a children's rail safety programme, was launched in early 1994. This programme teaches and shows children the dangers of playing near railway tracks or trains. In its first 20 months more than 50,000 children went through the programme.

Tranz Rail is a major sponsor for rescue helicopters based in Palmerston North and Taupo, and a rescue boat in the Marlborough Sounds.

Table 23.5. NEW ZEALAND RAIL—SUMMARY OF OPERATIONS

CategoryUnitAs at 30 June
1989*1990199319941995

* Year ending 31 March.

Source: Tranz Rail.

Route—      
    North Islandkm2,5552,5782,4812,4232,423
    (electrified)km510510510510510
    South Islandkm1,7111,4921,4921,4921,492
    (electrified)km1414141414
Bridgesno2,3032,1882,3302,3302,330
 km68.7164.6375.4575.4575.45
Tunnelsno165153150150150
 km91.5389.69888888
Locomotives—      
    diesel/diesel-electricno270259257258248
    electricno2827272727
    steamno2----
Rolling stock—      
    freightno12,39610,0678,8597,8936,949
    passenger (incl. motorised)no212256269287279
Passengers carried—      
    long distanceno....391,000450,000443,000
    suburbanno....10,000,00010,200,00010,200,000
Total freight carriedtonnes8,570,0008,295,0008,451,0009,444,0009,270,000

23.4 Road transport

Capital investment in New Zealand's roading and road transport system exceeds that in all other forms of transport. There are about 91,800 kilometres of formed roads and streets, and over 2.3 million motor vehicles. The most recent employment statistics available on the transport industry, the Statistics New Zealand Annual Business Directory update of February 1995, recorded 8,232 full-time equivalent persons engaged in the provision of road passenger transport, and 20,915 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 criterion for road transport operators.

The massive slips which closed the Manawatu Gorge for nearly three weeks during July-August 1995.

Land transport

Under the Transit New Zealand Act 1989, Transit New Zealand has the responsibility for developing a national land transport programme.

Every regional council is required to establish a regional land transport committee for its area. Each year every territorial authority must submit to that committee, and make available to the public, a district land transport programme for the next year. This programme comprises the territorial authority's recommendations concerning the land transport needs of its district and must include local roading, safety (construction and maintenance), passenger transport, state highways, 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.

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.

Transit New Zealand staff report to a government-appointed authority which operates similarly to a board of trustees.

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.

Its principal objective 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.

  • Control all aspects of the state highway system and monitor and assist with local roading.

  • Advise and assist local authorities on all aspects of the Transit New Zealand Act 1989.

  • Make payments from the Land Transport Fund, and monitor the collection of revenue for the fund.

  • Advise the Government on all aspects of the land transport system.

Roading

There are 74 national and provincial state highways and motorways in New Zealand, comprising 10,453 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 15,286 kilometres of urban roads and 66,137 kilometres of rural roads, making a total of 91,876 kilometres of developed roading, which includes over 15,800 bridges.

The operation and management of the strategic roading network is, in most cases, affected by the laws embodied in the Transit New Zealand Act 1989. As far as possible, these laws enable freedom of use of land, while ensuring that the roading network is able to provide for the safe and effective movement of people and goods.

Table 23.6. FORMED ROADS AND STREETS

Nature of surfaceLocal authority roadingState highways and motorwaysTotal
Urban areasRural areas

Source: Transit New Zealand.

  kilometres  
At 30 June 1994P    
Paved or sealed14,618.530,183.310,331.655,133.4
Metal or gravel421.436,717.3113.437,252.1
            Total, maintained roads15,039.966,900.610,445.092,385.5
At 30 June 1995    
Paved or sealed14,869.730,259.810,327.055,456.5
Metal or gravel416.035,878.0126.036,419.3
            Total, maintained roads15,285.766,137.010,453.191,875.8

Roading taxation is described in section 28.2, Taxation.

Table 23.7. EXPENDITURE ON STATE HIGHWAYS

Class of expenditure1992199319941995

* Excludes motorway structures.

† Maintenance figures include the cost of flood damage repairs when applicable.

Source: Transit New Zealand.

  $(000)  
Construction and improvement68,21995,367110,984114,933
Bridges and other structures*6,4538,0612,8601,572
Maintenance, repairs, etc.†225,499205,547223,891221,199
Total300,171308,975337,335337,704

Table 23.8. PUBLIC ROADING EXPENDITURE

Item19921993x19941995

* Previously known as the National Roads Fund.

Source: Transit New Zealand.

  $(000)  
State highways expenditure300,171308,975337,335337,704
Special purpose roads2,1711,9902,6402,585
Local authority roading expenditure—    
From Land Transport Fund*226,312230,703241,440260,902
Total528,654541,668581,415601,191

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 2.4 million vehicles are relicensed progressively throughout the year.

Licence label. A new-style label introduced in 1995 is displayed inside the vehicle's windscreen. The registration number, make, model and year of the vehicle; and month and year of the label's expiry are verified by a barcode on the label. The label also shows when the vehicle was first registered in New Zealand, whether road user charges and a Vehicle Inspection Certificate are required, and the label number and date it was printed.

Change of ownership. The procedure for changing the ownership of a vehicle has changed to put the onus on the buyer to prove their identity. The date of sale and when ownership was transferred will also be clearer. This avoids old fines being transferred with vehicle ownership and vehicles being registered in the name of children, pets or persons unknown.

The annual relicensing charges are: ordinary motorcars, $157.75, subject to transport licence fee, $167.75; motorcycles, $59.30 (60cc or less) or $141.40; rental cars, $169.25; trucks, vans and utilities (private passenger) from $157.75 to $159.25, subject to transport licence fee from $167.75 to $169.25; and tractors (non-exempt) $70.55. All figures include goods and services tax.

The various types of motor vehicles registered and licensed are itemised in the following tables.

Table 23.9. LICENSED MOTOR VEHICLES

Type of vehicleAt 31 March  
1992199319941995

* Discontinued, October 1993.

† Began October 1993.

Source: Land Transport Safety Authority.

Cars1,542,9121,562,1341,600,4991,647,134
Rental cars8,4389,63111,35013,364
Goods services cars*2,3532,117......
Light trucks, vans, utes242,644254,332271,316284,327
Heavy trucks64,29365,95168,94571,506
Taxis3,5723,8034,0794,458
Buses and service coaches7,3288,2278,6579,109
Trailers369,048368,846372,859360,311
Caravans†......1,2511,654
Motorcycles65,44260,09957,80554,391
Mopeds1,2341,1461,2561,508
Tractors†......20,17319,989
Trade plates D4,5884,4604,6675,105
Trade plates C574573592611
Miscellaneous16,68716,4227,0267,007
Exempt vehicles22,75521,6767,0407,253
            Total, all vehicles2,351,8682,379,4172,437,5152,487,722

Table 23.1. REGISTRATIONS OF NEW VEHICLES

December yearNew cars and station-wagons—c.c ratingCars previously registered Total overseas*New motor cycles
850 and under851 to 13001301 to 16001601 to 20002001 to 50005001 and over 

* Included in total.

Source: Land Transport Safety Authority.

198774618,56620,51029,16019,71792989,62812,12912,609
198869017,79627,31028,30614,08440388,58917,3728,968
198988021,49644,06650,00018,137309134,82850,9665,796
199068319,75156,43884,18118,391302159,74685,3244,897
199180610,52335,36141,60114,497178102,96647,3514,042
19925927,20930,24136,67917,17420592,11039,1462,469
19934536,67430,94338,70120,73415897,66343,8412,601
19944946,67638,93647,74429,691312123,85362,0883,337

Table 23.11. 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: Land Transport Safety Authority.

199018,3058,2999185031,03738329,445
199114,9897,47783136978453524,985
199211,9008,7841,30240194643923,772
199312,97210,3371,9304841,15053227,402
199413,66811,8602,2577071,45458830,534

Not included in the above tables are new tractors, of which there were 863 in 1990, 752 in 1991, 779 in 1992, 1,075 in 1993 and 1,521 in 1994.

Motor vehicles exempted from the annual licence fee include a variety of machines such as farmers' motor vehicles used solely on the farm and only venturing on roads to proceed from one part of the farm to another, or from farm to garage for repair, etc excavators, scoops, trench diggers, cranes, and logging trucks (used on private roads), etc.

Table 23.12. LICENSED VEHICLES BY POPULATION

As at 31 MarchNumber of
persons in
population per car
Number of
persons in
population
per motor vehicle*

* Excluding trailers and caravans.

19902.291.77
19912.241.74
19922.211.72
19932.211.72
19942.181.69

The power house inside an electric car being trialled in Christchurch. Eight 12-volt batteries propel the converted Toyota Starlet up the steepest hill roads. One charge takes it 70 kms at its top speed of 100kph.

Motor Vehicle Securities Register

A motor vehicle securities register is administered by the Ministry of Commerce Commercial Affairs Division under the Motor Vehicle Securities Act 1989.

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 April 1996 there were 431,298 current security interests registered over vehicles. The Autocheck means that a consumer considering buying a vehicle can phone the register toll free to check if any security interest is registered against the vehicle.

The 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 23.13 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.

MOTOR VEHICLES
Number licensed

Table 23.13. 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 full-time 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
Walk†46,6356.930,3428.060.6
Other8,8531.32,7450.776.3
Work at home50,0527.426,7397.165.2
Not specified10,887-6,135-64.0
            Total688,920100.0385,023100.064.1

Road safety

Since 1993 road safety has been under the control of the Land Transport Safety Authority (LTSA). The LTSA is the government's chief advisor on land transport safety and suggests policy, develops stands and reviews land transport safety systems in full consultation with industry groups.

Road laws are enforced by the New Zealand Police following their merger with the Traffic Safety Service of the Ministry of Transport in 1992. In addition they investigate serious and fatal accidents; enforce the laws regarding heavy traffic, allowable weights of vehicles and loads; and assist with the licensing of road transport services (such as taxis, buses and tow-trucks).

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 and, from age 76, practical tests must be taken every second year.

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. From 1994 Vehicle Inspection Certificates (VIC) have been phased in to replace Certificate of Fitness and Warrant of Fitness stickers. From 1 September 1994 a VIC has been needed before people can relicense their vehicles. This will make it more difficult to re-register stolen vehicles and improve the safety of vehicles on the roads.

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.

All children under five must be properly restrained by an approved child restraint when travelling in cars and vans. Drivers must make sure that children between five and seven are safely restrained if there is a child restraint or seatbelt in the vehicle. If no restraint is available, children must be seated in the rear of the car. Drivers are also responsible for making sure children between eight and 14 use seatbelts when available.

All motor cyclists and pillion riders must wear safety helmets at all speeds. Bicycle helmets have been compulsory since 1 January 1994.

Students Against Drunk Driving don black to highlight the claim that one in five people are injured or killed in alcohol-related accidents.

Alcohol impairment. Police officers have a wide range of tests available to them to deal with drivers affected by alcohol or drugs or a combination of the two. Any driver may be required to give a breath screening test at any time. This may be administered after the officer has detected alcohol on the driver's breath using a passive alcohol detector. If this screening test is positive the person may be required to give an evidential breath test. If this is also positive, the person 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.

Conducting a march for safety.

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 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.

Traffic Camera Office. A speed camera programme was introduced by the New Zealand Police in 1993; the first full year of operation being completed in June 1995.

There are 31 mobile cameras fitted in police vehicles which are able to be driven from place to place to take photographs of speeding vehicles. The mobile cameras are supplemented by 13 fixed cameras which can be used in any one of 70 pole-mounted installations on city streets.

Camera sites are selected by representative community groups which work with police to identify areas which have a speed-related vehicle crash history. The purpose of the speed camera programme is to reduce vehicle crashes on high risk areas of the road by encouraging drivers to maintain safe and consistent vehicle speeds in those areas. Speed camera tickets are issued to the owner of the speeding vehicle who is responsible, in the first instance, for resolving the notice.

Following the introduction of the speed camera programme there was a significant reduction in average traffic speeds. Crashes in speed camera sites have reduced by 13 percent on a national basis, with much higher reductions being achieved in some areas.

Speed limits. The maximum speed limits for highways and motorways are: 100 km/h for cars, motorcycles, vans and light vehicles; 90 km/h for buses, heavy motor and articulated vehicles; and 80 km/h for school buses and any vehicles towing trailers.

A general speed limit of 50 km/h is fixed in all closely populated areas. Areas with a speed limit of 70 km/h may also be specified by the Minister of Transport; and limited speed zones may be established for which the maximum permitted speed may be either 100 km/h or 50 km/h depending on conditions and circumstances.

Insurance. See section 8.5 Accidents and section 24.3 Insurance and superannuation.

Road safety education. Details on road safety campaigns are given in section 8.5 Accidents.

Traffic offences

Penalties are awarded by courts for driving and other offences under the Transport Act 1962 and attendant regulations. There is also a system in operation whereby points are automatically registered according to a fixed scale against people convicted of driving offences.

TRAFFIC CONVICTIONS
Rate per 10,000 population

The director of the Land Transport Safety Authority has the power 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. A new scale of graduated demerit points is shortly to be implemented.

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.

Table 23.14. TRAFFIC OFFENCES AND INFRINGEMENTS*†

Type of offence19941995Percent variation

*Includes traffic offences reported to the police but no prosecution initiated.

Year ended 31 December.

Source: New Zealand Police.

Traffic offences   
Drink/drive offence29,99631,8086.04
Dangerous/reckless driving4,0744,60513.03
Careless/inconsiderate driving/overtaking offences25,40826,6895.4
Speeding offences1,4281,375-3.71
Speeding—trailer, towing, heavy motor vehicle9401,19026.60
Speeding offences—speed camera offence21631746.76
Failure to stop/give way1,1621,2658.86
Failure to obey officer/fulfil duties8,0318,2683.18
Vehicle licence offences1,7221,617-6.10
Driving while disqualified offences12,06211,828-1.94
Driver licence offences15,08812,509-17.09
Certificate of fitness offences724722-0.28
Driver hours/log book3,0503,37110.52
Passenger/recovery/rental service vehicle offences539487-9.65
Other transport licence offences2--100.00
Vehicle condition offences209197-5.74
Vehicle safety offences5645-19.64
Vehicle noise/loading offences54266723.06
Bicycle offences182170-6.59
Cycle helmet offences314164-47.77
Pedestrian and other offences62126103.23
Stock and vehicle bylaw offences243754.17
Other traffic offences473362-23.47
            Total106,304107,8371.44
Traffic infringements   
Unsafe use of vehicle11,25413,06716.11
Speeding infringements38,85040,4144.03
Speeding infringements—speed camera offences315,577402,07427.41
Speeding—trailer, towing, heavy motor vehicle23,97430,06425.40
Failure to stop/give way19,49719,5740.39
Failure to obey officer/fulfill duties57468619.51
Vehicle licence/overloading infringements12,35511,733-5.03
Driver licence infringements85,62696,77513.00
Certificate of fitness infringements66,86971,9887.66
Seat belt and miscellaneous infringements10,91420,22385.29
Safety helmet infringements870769-11.61
Passenger/recovery/rental service vehicle infringements3913951.02
Vehicle condition infringements4,1053,980-3.05
Vehicle noise/loading infringements1,4901,71715.23
Bicycle infringements3,4763,007-13.49
Cycle helmet infringements11,2819,195-18.49
Pedestrian and other infringements25132228.29
Local body bylaw infringements144-71.43
            Total607,368725,96719.53
            Total713,672833,80416.83

A 4.30am breakfast party to celebrate finishing the end of seven weeks of overnight repair work in Wellington's Mt Victoria tunnel.

Contributors

  • 23.1 Ministry of Transport.

  • 23.2 Ministry of Transport; Maritime Safety Authority; Civil Aviation Authority; Airways Corporation of New Zealand.

  • 23.3 Tranz Rail.

  • 23.4 Ministry of Transport; Transit New Zealand; NZ Post; Autocheck; New Zealand Police; Land Transport Safety Authority.

Special articles

Consumers' Institute; Transport Accident Investigation Commission; Civil Aviation Authority; Airways Corporation; Transit New Zealand.

Further information

Transport—general

Annual Enterprise Survey. Statistics New Zealand.

Annual Report of the Airways Corporation of New Zealand.

Census of Transport, Storage and Communication 1984-85. Department of Statistics.

Key Statistics. Statistics New Zealand (monthly).

Report of the Transport Accident Investigation Commission (Parl paper F7).

Report of the Transport Committee (Parl paper 12B).

Report of the Ministry of Transport (Parl paper F5).

Report of Transit New Zealand (annual).

Shipping

Shipping and Cargo Movements. Department of Statistics (annual).

Civil aviation

New Zealand Civil Aircraft Accidents. Transport Accident Investigation Commission (annual).

New Zealand Register of Aircraft. Civil Aviation Authority of New Zealand.

Annual Report of the Airways Corporation of New Zealand.

Annual Report of Air New Zealand Limited.

Annual Report of the Civil Aviation Authority.

Railways

Report of the Railways Corporation (Parl paper F7).

New Zealand Rail Limited Annual Report.

Roads

Breath Tests in New Zealand. Land Transport Safety Authority (annual).

Motor Accidents in New Zealand. Land Transport Safety Authority (annual).

Report of the New Zealand Police (Parl paper G 6).

Chapter 24. Commerce and services

Wellington's newest supermarket.

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. The Commerce Act was reviewed in 1992 to ensure that its provisions are consistent with other government policies promoting economic growth.

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 established in 1986. The Consumer Guarantees Act 1993 is administered by the Ministry of Commerce.

Up-to-date summary information on distribution is provided (see table 24.1) by the Annual Enterprise Survey, which covers the activities of all businesses classified in division 6 of the New Zealand Standard Industrial Classification.

Table 24.1. DISTRIBUTION: STATISTICAL SUMMARY

Statistical item1992R1993P

Source: Annual Enterprise Survey, Statistics New Zealand.

Inventories:$(000)
Closing stocks8,350,6409,187,024
Opening stocks8,406,5358,436,565
Income:  
Sales of goods and services66,525,75372,650,583
Interest, dividends etc received435,701422,253
Government grants and subsidies8,88914,495
Other income including extraordinaries301,978188,134
            Total sales and other income67,272,32273,275,466
Total income adjusted for inventories67,216,42774,025,925
Expenditure:  
Employment related:  
    Salaries and wages to employees5,209,2725,416,007
    Redundancy and severance53,14343,054
    Salaries and wages to working proprietors (SW to WPs)954,408935,144
ACC levies82,43789,840
Employer contributions to superannuation schemes68,16458,563
Fringe Benefit Tax88,19184,179
Purchases and other operating expenses56,862,19263,325,379
Interest, donations, bad debts etc1,251,0061,241,720
Indirect taxes (excl Fringe Benefit Tax)181,978226,189
Depreciation815,743859,834
Other expenses including extraordinaries268,010259,194
            Total expenditure65,781,40072,496,048
Net profit before tax, extraordinaries, SW to WPs2,355,4662,536,081
Net profit before tax, SW to WPs2,389,4342,465,021
Fixed Tangible Assets:  
Purchases of plant, machinery, vehicles etc865,5191,077,938
Purchases of land and improvements111,27787,809
Purchases of buildings etc275,367300,402
            Total purchases of fixed tangible assets1,252,1621,466,149
Sales of fixed tangible assets523,271503,785
Balance Sheet:  
Shareholders funds or owners equity12,568,98513,199,906
Other liabilities18,458,68819,244,686
            Total capital and liabilities31,028,78632,444,593
Fixed tangible assets7,994,0458,681,196
Other assets23,034,74123,763,397
            Total assets31,028,78632,444,593
Ratios:percent
Profit margin on sales3.53.5
Return on equity18.719.2
Return on total assets7.67.8
Liabilities structure40.540.7

24.1 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.

Ministry of Consumer Affairs. The ministry exists to help New Zealanders prosper by promoting a fair and informed market-place for consumers. Its purpose will have been met when:

  • Consumers are protected by law and/or practice from deceptive, misleading or otherwise unreasonable and objectionable practices, and unsafe goods.

  • Consumers are well informed, discerning and able to exercise choice.

  • Business and consumers find mutual benefit and satisfaction in their fair dealings with one another.

  • Legal rights and obligations are known and used/met.

  • Access to redress and enforcement is easily available and fully effective.

Policy advice is provided to the Government on consumer law reform, in particular the operation of the Fair Trading Act 1986, Consumer Guarantees Act 1993, consumer credit legislation, Weights and Measures Act 1987, product safety standards, and market-place 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. In the year to 30 June 1995, there were 47,970 requests for assistance from consumers and traders.

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 enables 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 an independent and impartial consumer protection and publishing organisation. It conducts comparative tests and surveys of consumer goods and services, and researches financial, legislative, health, food, safety, environmental, welfare, gardening, home improvement and do-it-yourself subjects.

Its findings are published in the monthly magazine Consumer (which has over 81,000 subscribers) and the bi-monthly Consumer Home & Garden (over 52,000 subscribers). These publications are unique in reporting by name on products, services, companies, traders, professionals and government and other organisations. Survey results are sent to named parties before publication, and draft articles are checked with expert commentators.

Subscribers to either or both magazines are members of the Institute. It has operated with no income except that received from its subscribers since 1989 when it ceased to be a statutory body with some government funding. Consumers' Institute has one of the highest ratios of membership to population of any consumer organisation in the world. Despite the comparatively small number of households from which to draw membership, it maintains research and magazines equal to those of overseas groups (with whom it co-operates).

While no longer a publicly-funded body, the institute continues to work on behalf of all New Zealanders. It represents consumers before and on a wide range of bodies and liaises with many organisations to promote the consumer interest.

A board elected by the subscribing members governs the institute. The day to day work is carried out by a small staff, all except two in Wellington. In 1994 Consumers' Institute established the Emily Carpenter Consumer Charitable Trust to administer the funds received from the estate of the late Miss Carpenter, a former chairperson of the Consumer Council.

Shop trading hours

Traditionally, retailers have been restricted by legislation in the hours they can open their shops. Such restrictions were removed by the Shop Trading Hours Act Repeal Act 1990.

Now shops can open every day of the year, 24 hours per day, except Christmas Day, Good Friday, Easter Sunday and up to 1 pm on Anzac Day. There are exceptions to this which allow certain shops to open on any day. i.e.: dairy/mixed businesses, service stations, takeaways, souvenir and duty free shops, shops at public passenger transport terminals and genuine exhibitions and shows.

Sale of liquor

The object of the Sale of Liquor Act 1989 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:

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. Applications 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 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.

24.2 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 1993. 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 1993. This is by far the most usual form of business operation in New Zealand.

Registered companies. A company registered under the Companies Act 1993 must have at least one shareholder. There is no limit on the number of shareholders a company can have. The distinction between private and public companies under the Companies Act 1955 no longer applies under the new Act. 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. A shareholder's liability is limited to the amount, if any, unpaid on that member's shares.

A man with a mission to improve company annual reports.

Table 24.2. COMPANY REGISTRATIONS

Year ended 30 JuneNew companies registeredCompanies dissolved or struck offCompanies on register

*Year ended 31 March.

Source: Ministry of Commerce.

1989*12,3469,390160,988
1990*11,28912,377159,922
199110,95314,984153,275
199212,33011,144154,526
1993R14,16011,884156,925
199417,2639,711168,391
199516,24911,320170,350

New companies legislation. Until 1994 New Zealand's business environment was regulated through the Companies Act 1955. It was an old piece of legislation that had been substantially amended over the years and was not only hard to follow but also, in some places, out of step with current business practice. The legislation needed to be streamlined and simplified to make it more intelligible and accessible to those who use it.

In 1993 a new company law reform package was enacted which came into force on 1 July 1994. The package comprises 22 pieces of legislation, the principal ones being: Companies Act 1993, Companies Amendment Act 1993, Financial Reporting Act 1993 and Takeovers Act 1993.

The Companies Act 1993 requires companies to satisfy a solvency test in certain circumstances (eg before making a distribution in respect of shares). It enables companies to repurchase their shares (previously not permitted under company law) subject to safeguards. It reforms directors' duties and for the first time states them in the statute. It also reforms the remedies available to shareholders and simplifies the law about liquidating companies.

The company law reform package provided a three year transition period when the Companies Act 1955 and the new Companies Act will both exist. New companies will be able to be formed only under the new act but existing ones have three years in which to re-register. The package set out the procedure for the re-registration of existing companies. It also separated from the Companies Act the law about receiverships and placed it in the Receiverships Act 1993.

The Takeovers Act establishes a Takeovers Panel, whose main job was to formulate and recommend a takeovers code. The act sets out the objectives of a takeovers code, being to encourage the efficient allocation of resources, competition for corporate control, assist in ensuring shareholders are treated fairly, promote the international competitiveness of New Zealand's capital markets, recognise that ultimately it is for shareholders to determine the merits of a takeover and maintain a proper relation between the costs of compliance with the code and the benefits from it. The panel formulated and recommended a takeovers code to Government in 1995. Government decided to defer making a decision on the proposed takeovers code until the effectiveness of new companies legislation and the Stock Exchange's new Listing Rules in protecting minority shareholders could be assessed. The Companies Amendment Act 1963 will continue to apply in the absence of the panel's proposed code being adopted by Government.

NEW COMPANY REGISTRATIONS
Related to size of population

The Financial Reporting Act establishes an Accounting Standards Review Board to approve financial reporting standards. Companies (other than exempt companies) must prepare their annual financial statements in accordance with approved financial reporting standards. Companies that are public issuers (listed companies and those seeking investment from the public) and companies with 25 percent or more of their shares held by persons domiciled overseas must file their financial statements with the Registrar of Companies. Exempt companies (local companies with assets not exceeding $450,000 and a turnover not exceeding $1 million) must prepare their annual financial statement in accordance with regulations made under the act and are not required to file them with the Registrar of Companies.

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: Each partner is usually under a joint liability for all the partnership debts. A partnership will as a rule be dissolved by the death or retirement of a partner. Partnership interests are not usually capable of being assigned or transferred. Control and management of a partnership's affairs are (subject to the partnership agreement) vested in all the partners. Lastly, a partner is ostensibly an agent for the other partners, and can commit the partnership to agreements and arrangements that bind them.

Company practices

In the process of freeing up the economy and reducing government regulation of markets, legislation has been introduced to prevent large companies and industries from dominating markets by, for example, buying out their competitors, and creating a monopoly 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.

It prohibits a range of anti-competitive activities called ‘restrictive trade practices’. These apply to all individuals and commercial organisations including state-owned enterprises and government departments. Restrictive trade practices include:

  • Arrangements between competitors that substantially lessen competition in a market or reduce the competitiveness of another rival.

  • Arrangements that lead to prices being fixed among competitors.

  • A company, dominant in a market, using its position to prevent competition.

  • Suppliers fixing the prices at which their goods may be resold by other businesses.

Parties planning to be involved in business practices which may be restrictive trade practices can apply to the commission for authorisation. Authorisation will be granted if the commission believes the public will ultimately benefit from the business practice, even though there is a lessening in competition.

The act prohibits the acquisition of assets of or shares in a business if the acquisition will result in a dominant position being acquired in a market or the strengthening of a dominant position in a market.

Under the act, those acquiring assets or shares can apply to the commission for clearance or authorisation. The commission will grant a clearance if it is satisfied an acquisition will not result in the acquiring or strengthening of a dominant position in a market. It will grant an authorisation if the acquisition results in the acquiring or strengthening of a dominant position in a market but there is sufficient public benefit to outweigh the detriment to competition. If granted, clearance or authorisation exempts the business practice or acquisition from the act's prohibitions and protects the business from action by the commission and private individuals.

The act allows the commission to recommend to the Minister of Commerce that goods or services be subject to price control. Price control may be imposed only where there is limited competition in the market for particular goods or services and control is seen as necessary or desirable in the interests of users, consumers or suppliers. The last price control, over natural gas, was lifted on 1 April 1993.

Penalties for breaching the act are up to $5 million for companies and up to $500,000 for individuals.

The Commerce Commission also has responsibility for enforcing the Fair Trading Act 1986. The aim of the act is to ensure customers receive accurate information about goods and services, and to promote product safety. It prohibits people in trade from engaging in “conduct that is misleading or deceptive or is likely to mislead or deceive”. It also lists and prohibits certain types of false or misleading representations about goods and services. These include false statements that goods or services:

  • are a particular price or involve particular savings;

  • are of a particular kind, standard, quality, grade or origin;

  • are of a particular style or model;

  • are endorsed by an organisation or sponsor;

  • are supplied with particular warranties or guarantees;

  • have a particular history of use;

  • have particular uses or benefits.

The act specifically prohibits certain practices which are unfair or misleading and makes it a criminal offence to engage in any of these. They include:

  • offering free gifts or prizes when supplying goods or services if those involved do not intend awarding the gift or prize;

  • "bait" advertising, such as advertising of “specials” or “loss leaders” to attract customers into a shop, eg if the advertiser does not intend to make available the goods or services for a reasonable time and in reasonable quantities;

  • demanding or accepting payment without intending to supply goods or services ordered;

  • making misleading representations about profitability, risk or other matters affecting a business run from a home;

  • use of physical force, harassment or coercion when supplying goods or services;

  • pyramid selling schemes.

The act provides for consumer information standards to be made compulsory. In December 1995 standards covered: country of origin labelling of clothing and footwear; care labelling for textile goods (eg drycleaning, washing, ironing instructions); and fibre content labelling of textile goods.

The act provides for product safety standards to be made compulsory. In December 1995 standards covered: toys for children aged up to three years; bicycles; and night clothes for children from 6 months to 14 years old.

Fines for breaching the act are up to $100,000 for a company and up to $30,000 for an individual.

The Commerce Commission, with a staff of 69 at 30 June 1995, is funded mainly by a government grant. The Commission Members, at present six, are appointed by the Governor-General on the recommendation of the Minister of Commerce.

Table 24.3. COMMERCE COMMISSION SERVICES

Year ended 30 June199319941995

Source: Commerce Commission.

Commerce Act enforcement   
Restrictive Trade Practices investigations:   
    Total complaints received1,007819966
    Investigations commenced837060
    Investigations completed967255
Business acquisitions surveillance:   
    Investigations completed979283
Fair Trading Act enforcement:   
    Complaints received2,6072,0591,888
    Investigations completed964717717
    Total enforcement actions364376455

Securities Commission. Established under the Securities Act 1978, the fundamental purpose of the commission is to facilitate private capital investment in New Zealand by: improving the efficiency and fairness of the markets for the securities of entities which raise funds from the public in New Zealand; and enhancing public and institutional confidence in these markets both in New Zealand and overseas, while minimising the need for (and the cost of) intervention in these markets by government and by agencies funded by the government.

To achieve this purpose the commission directs its work towards:

  • Ensuring 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.

  • Encouraging improvements in the law relating to securities and bodies corporate.

  • Encouraging improvements in the standards of ethics and business practices in the markets for securities.

  • Encouraging improvements in the procedures for transacting business in the markets for securities.

  • Improving public understanding of the law and practices of securities of public issuers.

  • Achieving closer economic relations with companies and securities regulators in other countries and contributing to the harmonisation of business law and regulatory practices between countries for the purpose of improving efficiency and of reducing malpractice in across border securities transactions.

The commission aims to achieve these objectives by: the exercise of its statutory powers (eg to suspend or cancel false or misleading offer documents, act in respect of insider trading in listed shares, ensure disclosure of substantial holder interests in listed company shares); the review of business law and practices; the improvement of the public understanding of securities markets; and the exemption of persons from the obligation to comply with rules of law about offer documents.

Serious Fraud Office. The Serious Fraud Office is a specialist, inter-disciplinary department established by the Serious Fraud Office Act 1990 to facilitate the detection, investigation and expeditious prosecution of serious or complex fraud offenders. The office had a staff of 39 at 30 June 1995, composed of chartered accountants, investigators and lawyers, and multi-disciplinary teams are used in the investigation and prosecution of cases.

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 year to June 1995 the office received government funding of about $4.17 million, and completed four successful prosecutions with total value of charges of $42.67 million.

Stock exchange

There are three broad categories of stock that are bought and sold on the New Zealand Stock Exchange—shares in companies; debentures and other loans to companies; and government and semi-government stock. As on other stock exchanges around the world, company shares account for the bulk of trading.

New Zealand Stock Exchange. This central exchange was established by the Sharebrokers Amendment Act 1981, and is governed by a board of directors comprising members, independent directors and one exchange executive (managing director). Its office in Wellington is responsible for granting of listings, supervision of listed companies as regards their compliance with the Listing Rules and the collection and promulgation of all market information and the operation and supervision of the trading system. It is also responsible for the membership of the exchange.

The exchange is financed by annual fees and charges paid by exchange members; levies paid by listed companies; and charges for information supplied.

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 145 New Zealand companies and 60 overseas companies listed with the exchange at 31 December 1995.

SHARE PRICE INDEX
Gross index

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 in August 1992. 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. New technology has enabled the settlement times for the delivery of documents to be reduced to a T + 5 settlement basis and has provided a faster method for the dissemination of market information to market participants.

Market surveillance panel. The panel was established by the New Zealand Stock Exchange to administer and enforce the new Listing Rules implemented in September 1994. The panel's main function is to administer and enforce the rules and conduct investigations. Four investigations were undertaken during the year ended June 1995. The rules provide for the behaviour of listed companies on the exchange, in particular in relation to takeovers, issues of securities, disclosure of relevant information and providing for minority shareholder voting in specific instances such as acquisitions and dispositions of assets.

There has been full acceptance of the panel by companies and investors alike. This has reinforced the view that self-regulatory measures can operate to the overall benefit of market participants.

Under the Companies Act 1993 securities laws are under general review and a formal reporting regime has been announced, including the establishment of an Accounting Standard Review Board. There are new provisions for share buy-backs and takeovers.

Insolvency

Bankruptcy. The term bankruptcy 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.

BANKRUPTCIES
Rate per 100,000 population

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

Table 24.4. OCCUPATIONS OF BANKRUPTS*

Occupational group199019911992†199319941995

*Collection of data for this table has now ended.

Figures from 1992 are not comparable to previous years due to the New Zealand Standard Classification 1990 being used from the September 1992 quarter onwards.

Source: Ministry of Commerce.

Professional, technical, and related workers6487142152  
Administrative and managerial workers211249348455  
Clerical and related workers35614333  
Sales workers19424816530  
Service workers901157957  
Agricultural, forestry and fishing workers811068194  
Production and related workers, transport equipment operators, and labourers313455493492  
Not actively engaged/unknown8151,0891,0891,007  
            Total bankruptcy petitions1,8032,4102,4402,3202,0372,023
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.

One of a growing number of Wellington dairy owners who, after being beaten up and robbed several times, realise that some robbers no longer focus only on the till.

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 or an objection lodged by the assignee or a creditor with the Court. Where an objection to discharge is lodged, the Court determines whether a discharge should be granted.

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.

Another form of financial failure is covered by private assignments, which are not included in official bankruptcy statistics.

The general bankruptcy statistics do not cover assignments and compositions, but relate only to cases dealt with by official assignees.

The Official Assignee's role under the Proceeds of Crime Act 1991 are described in chapter 10.

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 24.5. COMPANY INSOLVENCIES

Year ended 31 MarchCompanies placed under receivershipCompany liquidations
Court orderVoluntary

Source: Ministry of Commerce.

19891,1038311,063
19908401,0122,597
19916561,033707
19926601,063759
19934251,004436
1994222888641
19953911,8921,029

24.3 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 Insurance Companies' (Ratings and Investigations) Act, which came into force in November 1994, requires fire and general insurance companies (not life insurance) to obtain, register and disclose a claims paying ability rating. (The requirement also applies to non-life business, such as disability products, of life insurance companies.) Whilst some insurers not providing property or disaster insurance can apply for an exemption, the legislation effectively introduces a form of market regulation that allows consumers to judge the financial strength of their insurers, which they have not been able to do before. The other 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 $42.6 million in June 1995 ($41.5 million in 1994); and $26.1 million in June 1995 under the Life Insurance Act 1908 ($26.3 million in 1994).

Statutory reporting is required under 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 Ministry of Commerce. New Zealand has no insurance commissioner or equivalent public official and there are no statutory solvency requirements or controls, nor is there any restriction or control on re-insurance.

Life insurance companies may apply to the Securities Commission on an annual basis to be ‘authorised’ in terms of the Securities Act 1978, which gives certain exemptions from the requirements of that act. The life insurance industry is also required to comply with all consumer protection legislation such as the Fair Trading Act 1986 and the Consumer Guarantees Act 1993.

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 1993 and comply with New Zealand company law in the same manner as other business enterprises.

The current 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 1995 the complaints procedure and review authority under the Code of Business Practices was replaced by the independent Insurance and Savings Ombudsman service. Further regulation of point of sale disclosure is expected following the report of the Government Working Group on Improved Product and Investment Adviser Disclosure.

Insurance intermediaries. The Insurance Intermediaries Act 1994 establishes insurance brokers client accounts, limitations on how premiums received by brokers may be used and 50 days terms of credit. 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 moved away from a tied agency system with individual agents contracted to a particular life insurance company; multiple agency agreements with different companies are now common.

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 compensation and rehabilitation in respect of accidental injury. The current Accident Rehabilitation and Compensation Insurance Act 1992 is administered by the Accident Rehabilitation and Compensation Insurance Corporation (ACC) which also has statutory responsibilities in the field of accident prevention. The system of accident compensation in place is described in section 8.4, Accidents.

New Zealand has a high degree of susceptibility to losses arising from earthquake and other geophysical events, so insurance in respect of earthquake and volcanic activity has presented a considerable problem. The Earthquake and War Damage Commission Act 1944 established a government guaranteed fund to meet losses by natural disaster or war. The act was recently replaced by the Earthquake Commission Act 1993 bringing several changes to the original scheme. Under the new act the Earthquake Commission (EQC) provides coverage of up to $100,000 for replacement of private dwellings and $20,000 for domestic contents. Perils covered are earthquake, natural landslip, volcanic eruption, hydro-thermal activity and tsunami; cover is also provided for residential land in the case of storm or flood; and all properties are covered in the event of fire occasioned by or through any insured peril. The land cover provided is additional to the $100,000. War damage has been removed as an insured peril. The EQC is currently phasing out cover for non-residential property and as from 1 January 1996 will no longer provide any non-residential disaster property insurance. From 1 January 1997 the commission will no longer cover non-residential property. Premiums, for residential property, at the rate of 5 cents per $ 100 cover are collected by insurance companies and paid to the commission.

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 was undertaken several years ago.

Fire services in New Zealand are funded through a levy upon all fire insurance policyholders. The role of the New Zealand Fire Service Commission is outlined in section 8.6, Civil defence and fire safety.

Each of these interventions in the insurance market by government 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.

The 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 Retirement Investment and Prudential which between them write about 75 percent of the country's life insurance/superannuation business, measured by annual premium income in force. Statistics New Zealand's Annual Business Directory update recorded 43 life insurance enterprises as at February 1995.

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 ability to spread risk through the international reinsurance markets has allowed New Zealand insurers to absorb large increases in business flowing from the government's decision to remove the EQC from non-residential disaster insurance.

Statistics New Zealand's Annual Business Directory update recorded 107 medical and 75 general insurance enterprises operating in New Zealand as at February 1995 (50 and 80 respectively in 1994). 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 premium pool as at 30 June 1995 was in excess of $1.86 billion for fire and general.

The Annual Business Directory update recorded 9,130 full-time equivalent persons engaged within the insurance industry as at February 1995.

The EQC premium income (net of reinsurance) for the year to 30 June 1995 was $23.055 million, down from $53.076 million in 1994. The non-life premium pool was $1,800 million not including the EQC premium or ACC levies.

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 a decrease 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 increase to compensate for the reduced government commitment to the provision of New Zealand superannuation. The appointment of a Retirement Commissioner will give a boost to public education on the need for New Zealanders to save for their own retirement (see section 7.1, Income support).

Loss prevention

The Accident Rehabilitation and Compensation Insurance Corporation (ACC) 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 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 Office 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 Incorporated (comprising adjusters and assessors).

  • 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 Office 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, state-owned enterprises, 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 was administered by a board comprising 15 members, with the Minister of Finance as statutory chairperson and representatives from various state departments and agencies.

From 1 October 1995 the administration is vested in the Superintendent of the Fund.

As at 30 June 1995 there were 48,741 contributors to the Government Superannuation Fund and they paid $134.54 million into it during the year ending 30 June 1995. At the same time there were 45,743 beneficiaries who received $491.3 million during the period.

Total assets at 30 June 1995, amounting to $3,169.9 million, included investments in government stock of $1,614.57 million and $21.5 million in members' mortgages. The average effective interest earning rate before tax of the fund was 7.85 percent for the year.

National Provident Fund. With approximately $2.8 billion in total assets, the National Provident Fund is New Zealand's largest superannuation fund and provides superannuation schemes both for employer/employee groups and for individual members.

In 1991, under the provisions of the National Provident Fund Restructuring Act 1990, the 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. The board of trustees of the National Provident Fund, which is appointed by the Minister of Finance, is the trustee for each scheme.

The act also required that the board of trustees determine the most appropriate future management arrangements for the National Provident Fund schemes and assets. To this end, the board conducted an international tender process, and new management arrangements were put into place from 1 April 1992.

The assets of the 17 schemes, which were previously administered as an omnibus fund, were restructured and are now managed through a Global Asset Trust. Twelve separate specialist fund managers manage these funds. An international global custodian, State Street New Zealand Limited, accounts for and reports on the investments of the funds. Jacques Martin Hewitt Ltd, a subsidiary of Melbourne-based Jacques Martin Pty Limited, administers the schemes. A small executive office has been maintained to assist the board with monitoring the new management arrangements and to ensure that they are operating effectively and to the benefit of members.

The changeover in management arrangements has not changed National Provident Fund members' rights and benefits. Existing scheme members may remain in their schemes, and

Table 24.6. GOVERNMENT SUPERANNUATION FUND ALLOWANCES, AT 30 JUNE 1995

Qualification for allowanceNumber

Source: Government Superannuation Fund.

Retired for age, length of service or medically unfit32,512
Spouses and dependents13,231
Total allowances45,743

Table 24.7. CONTRIBUTORS TO GOVERNMENT SUPERANNUATION FUND

Branch of serviceAt 30 June 1995Percentage of total

*Includes state-owned enterprises which were formerly part of the Public Service.

Source: Government Superannuation Fund.

Armed services7,56815.53
Judges1360.28
Parliamentarians750.15
Police4,8579.96
Prison officers5211.07
Public Service*35,58473.01
            Total48,741100.00
the payment of benefits by the schemes continues to be guaranteed by the Crown.

In 1993, an amendment to the National Provident Fund Restructuring Act led to a number of new provisions being incorporated into National Provident Fund schemes. Under these provisions, members may transfer from their National Provident Fund scheme to another registered superannuation scheme, including certain other NPF schemes.

Table 24.8. GOVERNMENT SUPERANNUATION FUND: SUMMARY

Year ended 30 JuneNumber of contributorsAnnual contributionsIncome from investmentsSubsidy from government trading departments and othersAnnual value of allowances†Accumulated fund at 30 June

*Year ended 31 March.

Tax exempt.

Source: Government Superannuation Fund.

   $(000)  
1992*56,709149,437385,074413,715453,5312,804,582
199357,925196,388422,703536,545580,5663,031,503
199452,554148,983149,116435,316479,0663,076,876
199548,741134,537248,408455,370587,3983,169,899

Because each of the National Provident Fund schemes is now reported on separately, a financial summary of the aggregated fund is no longer applicable.

Table 24.9. LIFE, MEDICAL AND GENERAL INSURANCE STATISTICAL SUMMARY

Statistical ItemLife InsuranceMedical InsuranceGeneral Insurance
1991-921992-931993-941991-921992-931993-941991-921992-931993-94

Source: Statistics New Zealand.

Income:$(m)$(m)$(m)$(m)$(m)$(m)$(m)$(m)$(m)
Premiums and contributions received—net of reinsurance1,572.01,562.71,645.9337.0401.9395.71,305.31,294.21,295.9
Transfers from reserves15.059.965.60.51.80.92.41.66.5
All other operating income265.0168.8176.414.013.214.640.643.053.9
Interest, dividends etc received741.8583.0566.826.933.125.2105.9108.098.7
Other income including extraordinaries969.2694.8800.64.55.121.514.437.923.3
            Total income3,563.13,069.43,255.2383.0455.1457.71,468.61,484.71,478.3
Expenditure:         
Salaries and wages to employees127.0121.2117.122.523.024.4149.4146.6147.3
Salaries and wages to self-employed commission agents155.1147.6124.86.57.05.931.129.341.4
Levies paid to ACC2.11.81.00.20.30.31.61.51.5
Employer contributions to superannuation schemes22.316.012.80.20.50.68.38.06.6
Fringe Benefit Tax9.56.94.10.70.80.74.94.33.9
Claims and benefits paid3,835.11,248.01,320.0281.8303.7315.1907.9846.0791.3
Income Tax paid on behalf of policy holders153.775.2110.53.74.63.4---
Transfers to reserves125.880.2235.63.53.45.20.61.01.4
All other operating expenses315.4285.4283.923.062.931.8249.6236.4210.6
Interest etc26.719.928.22.51.30.81.22.90.7
Indirect taxes (excluding FBT)12.19.37.00.80.50.32.41.91.6
Depreciation23.919.918.14.110.36.824.622.024.1
Other expenses including extraordinaries678.3444.7248.72.73.94.737.159.721.3
            Total expenditure5,487.02,476.22,511.9352.2422.0400.11,418.81,359.81,251.6
Net profit before tax, extraordinaries, SW to WPS-2,214.8343.1191.329.031.840.972.5146.8224.8
Net profit before tax, SW to WPS-1,923.9593.2743.230.833.157.749.8125.0226.8
Balance sheet:         
Shareholders funds or owners equity9,255.19,766.610,720.7258.5298.2348.4954.2920.3908.2
Other liabilities825.7909.91,024.1191.8197.4187.31,004.21,213.81,325.3
            Total capital and liabilities10,080.810,676.511,744.8450.3495.6535.71,958.42,134.12,233.5
Fixed tangible assets1,140.6674.0154.5107.2105.7106.1251.8171.1160.0
Other assets8,940.210,002.411,590.3343.1389.9429.61,706.61,963.02,073.5
            Total assets10,080.810,676.511,744.8450.3495.6535.71,958.42,134.12,233.5
Funds at beginning of year10,655.88,748.49,490.8195.0237.2241.0---
Funds at end of year8,731.99,341.510,234.0225.8270.3298.7---
Ratios:$$$      
Total income per FTE-873,346.7872,930.0-621,266.6602,644.8-279,743.4280,011.1
Net profit per FTE-97,610.451,308.3-43,462.753,843.7-27,666.042,578.5
 percentpercentpercent      
Return on equity-23.93.51.811.210.711.77.616.024.8
Return on total assets-22.03.21.66.46.47.63.76.910.1
Liabilities structure91.891.591.357.460.265.048.743.140.7

For more detail see Business Activity Statistics 1995.

Some of the 1,664 items of junk mail that came into the letter box of a Lower Hutt man in 1995.

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.

Life and medical insurance. The provision of life insurance, life re-insurance and other life insurance including mortgage repayment insurance; includes superannuation and mutual fund operation not separately administered. The provision of medical, hospital and dental insurance, funeral benefits and the operation of benefit funds includes employee benefit funds, welfare societies and friendly society funds not elsewhere classified.

General insurance. The provision of fire insurance cover for commercial and domestic purposes, marine, aviation and other accidental insurance.

24.4 Retail trade and services

Retailing embraces retail businesses, hotels and restaurants, and businesses providing household and personal services. Retail trade is one of the most important indicators of economic activity, as it constitutes a large proportion of personal expenditure on consumer goods and services.

Retail trade survey

The Statistics New Zealand retail trade survey collects data monthly on the sales of goods and services. Each quarter, the value of stocks held as at the last day of the quarter is also obtained. The sample of businesses surveyed is drawn from Statistics New Zealand's Business Directory, a comprehensive and up-to-date list of all businesses in New Zealand.

To ensure that changes in the economy are reflected in the sample, the survey is regularly redesigned. Such a redesign occurred in May 1995. The redesign included changing to the Australian and New Zealand Standard Industrial Classification (ANZSIC) rather than the previous New Zealand Standard Industrial Classification (NZSIC). This has meant changes in the population and storetype definitions. The redesign also included improvements in the coverage of the Business Directory.

Retail sales trends

The major trends in the retail sector in the year ended March 1995 were:

  • Total actual retail sales increased by 8.4 percent to $36,328 million compared with $33,506 million in the year ended March 1994.

  • The most significant increases were recorded by recreational goods stores, up 16.7 percent; furniture and floor covering stores, up 16.1 percent; cafes, restaurants and takeaway outlets, up 14.2 percent; and personal and household services, up 14.0 percent.

  • Tourism has a major effect on the New Zealand economy. Retail sales, particularly in cafes, restaurants and takeaway outlets and accommodation, hotel and liquor outlets, have increased because there are more overseas visitors. The number of short-term overseas visitors increased 10.7 percent from the March 1994 year to the March 1995 year.

Table 24.1. ANNUAL ACTUAL RETAIL SALES

StoretypeActual retail sales—March year
19911992199319941995

Source: Statistics New Zealand.

   $(million)  
Food retailing6,959.56,929.77,143.47,305.97,757.8
Footwear283.0265.6249.3255.2252.9
Clothing and softgoods1,413.21,382.91,387.41,404.91,440.3
Furniture and floorcoverings729.0662.5721.8861.41,000.2
Appliance retailing918.3916.31,015.31,182.01,324.1
Hardware602.4642.4696.7734.0768.2
Chemist894.1896.6926.9963.1996.7
Department1,224.21,291.81,453.41,725.71,835.4
Recreational goods1,012.3961.31,047.31,153.81,346.2
Accommodation, hotels and liquor2,911.82,863.22,905.63,022.03,320.1
Cafes, restaurants and takeaways1,417.81,455.61,550.31,698.41,939.7
Personal and household services774.3736.6717.5816.5930.7
Other stores2,067.22,023.61,955.92,033.22,099.0
            Subtotal21,207.021,028.221,770.723,156.225,011.3
Motor vehicle retailing5,168.34,723.45,337.95,953.76,662.8
Motor vehicle services4,043.84,006.04,194.94,395.74,653.9
            Total all stores30,419.229,757.631,303.633,505.636,328.1
Per head of population9,018.68,711.29,067.09,596.410,263.0

RETAIL TRADE
Total sales

  • Footwear was the only storetype to record a decrease in the level of sales for the year ended March 1995. The decrease was 0.9 percent.

Regional sales. Sales in the major regional council areas continue to increase, following a general decrease from 1991 to 1992. For the year ended March 1995 compared with the March 1994 year, Auckland recorded the strongest growth in sales, up $1,275.2 million (12.2 percent). Sales in Wellington increased 10.5 percent and sales in Canterbury were up 8.8 percent. The following table shows annual retail sales by regional council areas.

Table 24.11. ANNUAL SALES BY GEOGRAPHICAL REGION*

 North IslandSouth IslandTotal New Zealand
Auckland Regional CouncilWaikato Regional CouncilWellington Regional CouncilRemainder of North IslandTotal North IslandCanterbury Regional CouncilRemainder of South IslandTotal South Island

* Comparisons of retail trade regional sales should be made with caution, as shoppers from outside their regional areas also patronise the main city stores and make use of mail order services. Figures are exclusive of GST. March year.

Source: Statistics New Zealand.

     $(million)    
19919,233.53,000.13,773.96,917.522,925.03,602.83,891.47,494.230,419.2
19928,930.82,950.03,681.96,684.022,246.73,728.33,782.67,510.929,757.6
19939,466.73,046.73,809.27,063.923,386.44,051.53,865.77,917.131,303.6
199410,406.03,274.33,854.27,514.325,048.84,433.04,023.88,456.833,505.6
199511,681.23,493.24,259.37,882.627,316.44,821.74,190.09,011.736,328.1

Last days of a Wellington fashion boutique.

A Christchurch dairy and den of myriad Indian spices as well as okra, poppadoms, betel nuts and jaggery.

Adjustments. Any series has three components: trend, seasonal and irregular. To allow direct comparison between figures from different periods, seasonality and irregularity can be removed.

Seasonal adjustment aims to eliminate the impact of regular seasonal events, for example climatic effects, (eg ice-cream sales fall in winter) or calendar effects (eg retail sales increase at Christmas). These seasonal effects occur every year and can easily mask the often smaller effects of underlying economic trends.

The trend series also has the irregular elements removed. An example of an irregular event would be an increase in the rate of GST. Trend estimates reveal the underlying direction of the movement in retail sales and are likely to indicate turning points more accurately than seasonally adjusted or actual series.

The impact of inflation can also be removed. Price indexes have been prepared to deflate retail sales figures. The principal source of the prices used in these indexes is the Consumers Price Index. The prices have been appropriately weighted and the whole index expressed in March quarter 1995 prices. This gives a series in constant March 1995 dollars that shows the real change in the volume of retail sales.

The following table summarises the actual, seasonally adjusted and constant price series for quarterly retail sales and sales per head of population.

Table 24.12. RETAIL SALES SUMMARY BY QUARTER*

 Total retail salesRetail sales per head of populationTotal value of retail stocks
ActualSeasonally adjustedSeasonally adjusted at March 1995 quarter pricesTrendActualSeasonally adjustedSeasonally adjusted at March 1995 quarter pricesActual

* All previously published figures are subject to revision when the seasonal adjustment program is run each period. Figures are exclusive of GST.

Source: Statistics New Zealand.

 $(M)$(M)$(M)$(M)$$$$(M)
1993 Jun7,895.48,169.1R8,235.3R8,137R2,274.02,352R2.371.5R3,063.6
Sep8,069.68,285.1R8,338.8R8,271R2,332.02,394R2,409.7R3,122.5
Dec9,162.88,432.0R8,487.6R8,434R2,620.02,411R2,426.7R3,165.6
1994 Mar8,377.88,618.5R8,695.5R8,637R2,371.02,439R2,461.1R3,216.9
Jun8,585.58,875.5R8,939.4R8,861R2,441.02,523R2,541.5R3,258.2
Sep8,808.69,034.9R9,091.7R9,041R2,512.02,577R2,592.8R3,296.7
Dec9,932.19,147.8R9,168.7R9,161R2,799.02,578R2,583.8R3,407.9
1995 Mar9,001.89,261.1R9,261.1R9,259R2,511.02,583R2,583.4R3,399.6
Jun9,062.29,365.49,334.09,3742,540.0P2,625P2,616.7P3,398.0

Table 24.13. RETAIL STOCKS BY STORETYPE*

StoretypeRetail stocks—March year
19911992199319941995

* Figures are exclusive of GST.

Source: Statistics New Zealand.

   $(million)  
Food retailing272.2273.4270.1293.2294.6
Footwear83.173.672.672.073.4
Clothing and softgoods310.3268.3283.5287.2303.3
Furniture and floorcoverings126.1109.3116.6133.3136.0
Appliance retailing142.4165.9167.0183.0191.4
Hardware128.6133.8160.3151.8157.8
Chemist107.5111.4109.7110.5120.1
Department237.8280.0337.7333.2349.1
Recreational goods171.1172.8213.6227.0284.9
Accommodation, hotels and liquor128.8116.0123.4123.8124.9
Cafes, restaurants and takeaways26.228.432.836.035.9
Personal and household services28.326.825.727.630.3
Other stores427.1380.0324.8325.0320.0
            Subtotal2,189.402,139.502,237.902,303.502,421.60
Motor Vehicle Retailing576.9587.0693.7754.3808.8
Motor Vehicle Services148.8157.5155.5159.1169.3
            All stores—total2,915.102,884.003,087.103,216.903,399.60

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.

CREDIT CARD USE Total advances outstanding

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. Credit cards were first introduced in New Zealand in 1981. The use of credit cards for purchases has been steadily increasing, to reach the highest level so far recorded in the year ending December 1995.

The following table gives the annual value of sales by credit cards issued by registered banks, American Express and Diners Club.

Table 24.14. VALUE OF CREDIT CARD SALES

Calendar yearTotal advances outstanding*Billings
NZ cardholders spending in New ZealandNZ. cardholders spending overseasTotal†

*As at 31 December.

From 1993, total includes unallocated spending.

Source: Reserve Bank Bulletin.

  $(million) 
1987692.52,211.8-2,211.8
1988790.12,575.4-2,575.4
1989881.92,809.9-2,809.9
1990951.13,160.1-3,160.1
19911,027.83,446.5294.33,740.8
19921,055.73,780.2311.34,091.5
19931,129.23,118.9598.54,124.2
19941,289.53,682.9707.54,743.1
19951,461.04,057.3883.55,307.3

Contributors

  • 24.1 Ministry of Commerce; Consumers' Institute; Department of Labour; Ministry of Justice.

  • 24.2 Ministry of Justice; Ministry of Commerce; Securities Commission; New Zealand Stock Exchange; Statistics New Zealand.

  • 24.3 Insurance Council of New Zealand; Treasury; National Provident Fund; Statistics New Zealand.

  • 24.4 Statistics New Zealand.

Special articles

Ministry of Consumer Affairs; Commerce Commission; Insurance and Savings Ombudsman.

Further information

Controls on trading

Report of the Department of Labour (Parl paper G1).

Report of the Ministry of Commerce (Parl paper G46).

Report of the Licensing Control Commission (Parl paper E8).

Commercial framework

Current Issues in New Zealand Competition and Consumer Law. Commerce Commission (series).

Report of the Commerce Commission (Parl paper G34).

Report of the Department of Justice (Parl paper E5).

Report of the Securities Commission (Parl paper E25).

Report of the Law Commission (Parl paper E31F).

Report of the Serious Fraud Office (Parl paper E40).

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 B11).

Report of the Government Superannuation Board (Parl paper B20).

Annual Report of the Board of Trustees of the National Provident Fund.

Insurance and Savings Ombudsman Annual Report.

Retail trade and services

Key Statistics. Statistics New Zealand (monthly).

Reserve Bank Bulletin. Reserve Bank of New Zealand (quarterly).

Key statistics and information regarding the sharemarket in New Zealand are produced in daily, weekly, monthly and annual reports.

Chapter 25. Overseas trade

Loading ice-cream for Japan at the Christchurch factory of the Tip Top Ice Cream Company, winner of the Governor-General's award for Exporter of the Year in 1995. During the year the factory shipped about $19 million worth of their product to Japan.

New Zealand is heavily dependent on overseas trade. The biggest market for New Zealand exports is Australia (20.8 percent), followed by Japan (16.3 percent), the European Union (16.0 percent), the USA (10.4 percent) and the United Kingdom (6.2 percent). Imports to New Zealand have been steadily rising. Australia, the United States, Japan and the United Kingdom are the major suppliers, while imports from Germany, the Republic of China and Taiwan have significantly increased over the last two years. Over recent years New Zealand has tried to diversify its trading markets so as not to depend heavily on the top four trading partners. Many of New Zealand's' exports are now sent to Asia, the Middle East and Europe.

25.1 Administration and development of trade

Tradenz (New Zealand Trade Development Board)

Tradenz is the commercial name for the New Zealand Trade Development Board. Its mission is to foster the development and expansion of New Zealand's foreign exchange earnings.

Tradenz works with a great diversity of businesses—from large, well-established exporters of products or services, to successful, smaller operations that are evaluating their export options. No one exporter's need is the same as another's; Tradenz recognises these differences by offering a broad-based range of services through its extensive domestic and overseas network of offices.

Tradenz works with exporters at the group as well as individual exporter level. Smaller, emerging exporters are becoming a strong force in the New Zealand economy. Because of their relatively small size, better and more cost-effective results can often be achieved through ‘collective’ effort on specific projects, as part of an agreed strategic plan. The main vehicle used by Tradenz in forging close working partnerships within specific industries is the Joint Action Group (JAG).

Other aspects of Tradenz' activities include strategic development work, technology initiatives, trade fair promotions and an export award programme.

Tradenz has nine New Zealand regional offices—Wellington, Auckland, Hamilton, Tauranga, Napier, Palmerston North, Nelson, Christchurch and Dunedin—and an international network of more than 40 offices in localities of key importance to New Zealand exporters.

While Tradenz is largely funded by Government, it has a Board of Directors with a predominantly private sector background. The board has created a commercial culture within Tradenz, with a clear focus on results.

Customs and excise

The New Zealand tariff is based on the international Harmonized Commodity Description and 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 duties at the border. An update of the international Harmonised System is to be implemented in 1996.

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 commodity that might be imported or exported. The structure of the list breaks commodities down into broad categories, which are then further refined into very specific, detailed classification of goods. Against each item the Tariff indicates the appropriate duty payable on imported goods depending on their country of origin. A range of goods obtain preferential rates of duty when they originate in certain countries, eg Australia, Canada or least-developed countries. The various types of duty used in 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 39 percent. There is limited use of specific duties in the tariff. The trend of policy is in favour of ad valorem duties. Items whose manufacture is outside the scope of local industry are normally duty free.

The following extract from the tariff gives an example of an ad valorem duty:

Customs officer inspecting the remains of a suspected bomb.

 Statistical Key Rates of Duty
NumberCodeUnitGoodsNormal
Tariff
Preferential
Tariff
2008.60  Cherries:  
2008.60.0100FkgCooked and preserved by freezing,
not containing added sugar
10Au Free
    7/96,8.5CA Free
    7/97,7.5LDC8
    7/98,6.57/96,7
    7/99,57/97,6
     7/98,5
     7/99,4
     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, cooked and preserved cherries, the standard duty is 10 percent of value progressively phasing in subsequent years as shown. These goods are duty free if they originate in Australia, Canada, least-developed countries or Pacific Forum countries. There is a preferential duty of 8 percent and phasing if they originate in a less developed country. The Tariff of New Zealand, 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 less developed countries.

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 28, Public sector finance, for information on customs and excise revenue.

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 GST rate effective from 1 July 1989 is 12.5 percent.

Customs Department border operations

The Customs Department border operations provide protection at the border by managing the import and export of goods and 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.

Overseas trade statistics

New Zealand overseas merchandise trade statistics measure the value and quantity of New Zealand's merchandise exports to and imports from other countries. The statistics are compiled monthly based on entries lodged with the Customs Department by exporters and importers.

Exports are all material goods which leave New Zealand for other countries and are valued ‘fob’ (free on board). The fob value is the market value of the goods at the New Zealand port of loading. It includes all value added in bringing the goods to the port of loading but excludes international freight and associated insurance.

Imports are all material goods which enter New Zealand from abroad and are valued ‘cif’ (cost, insurance and freight) and ‘vfd’ (value for duty). The cif value is the market value of the goods at the New Zealand port of unloading. It includes the value added for cost of international freight and associated insurance. The imports vfd value is the value assessed for duty. It is a close approximation of the fob value at the overseas port of loading. Unless otherwise stated, all imports value quoted in this chapter are the cif value.

Balance of merchandise trade

An important analytical result of New Zealand overseas trade is the ‘balance of merchandise trade’. This is calculated by deducting the import value from the export value for the same period of time. An excess of exports over imports is a ‘surplus’ and is normally indicated by a positive number. Conversely, a ‘deficit’ occurs when imports exceed exports and is normally indicated by a negative sign or brackets.

In the June 1995 year, New Zealand had a balance of merchandise trade deficit of $337.6 million, compared to the $1,358.2 million surplus for 1994. The lower surplus in the June 1995 year was due to a 15.1 percent rise in the value of imports offsetting a 5.5 percent rise in the value of exports.

Table 25.1. OVERSEAS MERCHANDISE TRADE

Year ended JuneExports(fob)Imports (cif)Balance of merchandise trade
  $(million) 
198511,315.812,472.6-1,156.8
198610,571.711,467.0-895.2
198712,107.211,800.2307.0
198812,451.511,606.5845.0
198914,905.412,491.42,413.9
199015,163.515,770.5-607.0
199115,768.415,325.1443.3
199217,840.315,483.42,356.9
199318,971.217,332.81,638.5
199419,827.118,468.91,358.2
199520,924.921,262.5-337.6

OVERSEAS MERCHANDISE TRADE

25.2 Exports

Exports are valued at fob (free on board) which represents the transaction price of goods and includes costs incurred in delivering the goods on board ships and aircraft at New Zealand ports of export. In this chapter the export values include re-exports which are goods imported into New Zealand and then exported later without being significantly altered. Typical re-exports are aircrafts and heavy machinery.

Exports in the June 1995 year totalled $20,294.9 million, 5.5 percent higher than the June 1994 year. The major commodities contributing to the rise were organic chemicals (up 194.8 percent), wood pulp (up 48.9 percent), aluminium and articles (up 28.1 percent), wool and animal hair (up 17.7 percent) and fruit and nuts (up 14.9 percent). New Zealand still relies on its primary products although there have been decreases in commodity groupings such as wood and wood articles (down 1.8 percent), dairy produce (down 2.6 percent) and meat and edible offal (down 9.1 percent). There were increases in exports of mechanical machinery (up 10.0 percent), electrical machinery (up 14.6 percent), and plastics and plastic articles (up 12.6 percent), and there was a large drop in the exports of mineral fuels (down 26.8 percent).

MAJOR COMMODITIES Exports

Table 25.2. MAJOR COMMODITIES EXPORTED*

CommodityValue of exports† (fob)Percentage of total exports† (fob)
199019941995199019941995

*Year ended June.

Includes re-exports.

  $(million)    
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei2,066.92,831.02,758.113.614.313.2
Meat and edible meat offal2,318.62,873.62,613.215.314.512.5
Wood and articles of wood; wood charcoal612.91,676.01,645.74.08.57.9
Wool, fine or coarse animal hair; horsehair yarn and woven fabric1,432.61,138.51,340.39.45.76.4
Fish and crustaceans, molluscs and other aquatic invertebrates706.31,113.01,117.84.75.65.3
Fruit and nuts, edible; peel of citrus fruit or melons736.5762.5876.34.93.84.2
Aluminium and articles thereof743.8677.7868.34.93.44.1
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof526.1777.0854.93.53.94.1
Raw hides and skins (other than furskins) and leather658.4648.1665.04.33.33.2
Organic chemicals67.8203.5599.90.41.02.9
Albuminoidal substances; modified starches; glues; enzymes497.2638.9591.63.33.22.8
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders277.8446.3511.51.82.32.4
Pulp of wood or other fibrous cellulosic material396.7335.5499.62.01.72.4
Paper and paperboard; articles of paper or paperboard355.8423.4436.22.32.12.1
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes455.8455.5333.53.02.31.6
Natural or cultured pearls, precious, semi-precious stones, precious metals, imitation jewellery; coin142.9335.3322.90.91.71.5
Vegetables and certain roots and tubers; edible198.6314.5319.61.31.61.5
Plastics and articles thereof132.0240.4270.70.91.21.3
Animal originated products; nei188.3265.5262.01.21.31.3
Works of art; collectors' pieces and antiques257.8258.3253.81.71.31.2
Other nes2,390.83,412.83,784.215.817.218.1
        Total exports15,163.519,827.120,924.9100.0100.0100.0

FLOWER EXPORTS
By variety

Meat and edible offal

In the June 1995 year exports of meat and edible offal were $2,613.2 million, 12.5 percent of total exports. This is a drop of 9.1 percent on the June 1994 year and the lowest value recorded since the June 1991 year.

Table 25.3. MEAT AND EDIBLE OFFAL EXPORTS*

Product1985198019941995

*Year ended June

  $(million)  
Beef952.01,091.61,384.21,160.8
Sheep1,150.51,093.51,250.71,196.7
Goat1.74.55.24.6
Offal101.2126.4228.0245.4
Other3.02.75.55.7
Total meat and edible offal exports2,206.92,318.62,873.62,613.2
Percentage contribution to total exports19.515.314.512.5

The decline in meat and edible offal in the June 1995 year was seen primarily in beef exports (down $223.4 million) and sheep (down $54.0 million). The export destinations showing this drop in meat and edible offal were the United States (down $137.6 million), Canada (down $77.5 million) and Mexico (down $45.3 million), with other minor drops shown for the United Kingdom, Belgium and Saudi Arabia.

Table 25.4. DESTINATION OF MEAT AND EDIBLE OFFAL EXPORTS*

Destination1985199019941995

*Year ended June.

  $(million)  
Asia230.6313.8469.2513.3
European Union551.5723.0967.7974.8
Canada124.8138.2227.6150.1
USA688.4793.3785.8648.2
Other611.5350.3423.2326.8
        Total meat and edible offal exports2,206.92,318.62,873.62,613.2

In the June 1995 year the European Union took 37.3 percent of New Zealand's meat and edible offal making them New Zealand's top customer, followed by the United States, Asia and Canada. The United Kingdom was the largest destination in the EU at $386.0 million, followed by Germany at $204.6 million.

The majority of New Zealand's meat and edible offal exports to Asia went to Japan ($194.1 million), the Republic of Korea ($96.6 million), Taiwan ($83.4 million) and Hong Kong ($50.0 million). Asia showed a 9.4 percent increase in the value of meat and edible offal exports it received compared with the June 1994 year.

Dairy produce

In the June 1995 year New Zealand exported $2,747.5 million worth of dairy products, a decrease of 2.6 percent from the $2,820.2 million exported in the June 1994 year.

The major types of dairy products exported are milk and cream, butter and cheese. The value of these exports fluctuated—milk and cream were down 4.4 percent, butter down 13.0 percent, and cheese was up 14.5 percent.

New Zealand dairy produce is sold all over the world. New Zealand's top export markets for dairy produce are the United Kingdom and Malaysia. A wide variety of countries purchase New Zealand dairy produce in significant amounts, such as Algeria ($97.5 million), Morocco ($26.3 million), Venezuela ($92.0 million) and Chile ($39.9 million).

DAIRY PRODUCE EXPORTS

Table 25.5. DAIRY PRODUCE EXPORTS*†

Product1985199019941995

*Year ended June.

Casein and caseinates are now included in the category, Albuminoidal substances.

  $(million)  
Milk and cream498.3947.41,396.91,335.2
Buttermilk and yoghurt27.650.949.169.6
Whey and other products4.312.712.212.2
Butter636.5710.5834.0725.9
Cheese and curd256.8341.1528.0604.5
        Total dairy produce exports1,423.42,062.62,820.22,747.5
Percentage contribution to total exports12.613.614.213.1

Table 25.6. DESTINATION OF DAIRY PRODUCE EXPORTS*

Country of destination1985199019941995

* Year ended June

   $(million) 
Algeria131.182.1133.897.5
Australia32.256.9106.3109.7
Belgium0.70.921.425.7
Canada8.715.115.520.0
Chile6.415.341.239.9
Dominican Republic-0.1--
Egypt0.72.040.234.9
El Salvador8.27.00.68.4
Germany11.311.85.30.8
Indonesia31.631.548.666.8
Iran107.658.139.320.8
Jamaica4.121.415.312.9
Japan89.4128.1165.4189.2
Republic of Korea1.32.713.324.4
Kuwait19.622.318.417.5
Malaysia86.1152.8215.6206.3
Mexico59.8232.4178.9102.0
Morocco5.2-27.826.3
Netherlands2.221.953.933.4
Peru26.449.487.286.4
Philippines30.1110.5146.3113.8
Russia--96.895.9
Saudi Arabia36.246.073.874.6
Singapore23.437.340.138.4
Sri Lanka14.936.660.374.7
Taiwan, Province of China31.162.7136.4165.4
Thailand20.554.472.284.7
United Kingdom262.6339.4366.6420.8
United States of America81.688.284.572.5
Venezuela30.9-92.092.0
Other259.5401.1481.1434.7
            Total exports of dairy products1,423.42,062.62,820.22,747.5

Forestry products

Forestry products exported in the June 1995 year rose to $2,581.4 million, an increase of 6.0 percent compared with $2,434.8 million in the June 1994 year. This increase is due to a 48.9 percent rise in exports of wood pulp, now worth $500.0 million. The export of wood in the rough fell 20.6 percent to a value of $621.4 million in the June 1995 year. Other forestry products commodities such as paper and paperboard rose 3.0 percent.

The largest exports of New Zealand's forestry products were to Japan, Australia and the Republic of Korea. In the June 1995 year forestry products exports to these countries increased by 13.7 percent, 2.4 percent and 8.5 percent respectively.

FOREST PRODUCE EXPORTS

Table 25.7. FORESTRY PRODUCT EXPORTS*

Product1985199019941995

*Year ended June.

  $(million)  
Wood pulp, etc203.9396.7335.5499.6
Paper and paperboard287.2355.8423.4436.2
Wood (rough)37.7210.3783.0621.4
Wood (sawn)124.0175.1486.4486.4
Board (fibre, veneer, plywood)21.5150.9298.8413.9
Other94.176.6107.8124.0
            Total forestry product exports768.31,365.52,434.82,581.4
Percentage contribution to total exports6.89.012.312.3

Table 25.8. DESTINATION OF FORESTRY PRODUCT EXPORTS*

Country1985199019941995

*Year ended June.

  $(million)  
Australia350.5539.0722.8740.4
Japan175.0334.1683.9777.8
Korea, the Republic of26.1125.2342.6371.5
Taiwan, Province of China15.665.6114.4145.1
China, Peoples Republic of16.121.698.026.4
Hong Kong28.733.362.668.3
Singapore6.722.624.729.6
USA10.913.9145.5127.5
Other138.6210.0240.4294.8
Total forestry product exports768.31,365.52,434.82,581.4

Table 25.9. FISH, CRUSTACEAN AND MOLLUSC EXPORTS*

Product1992199319941995

*Year ended June.

Fresh, chilled, frozen and live $(million)  
Orange roughy163.0181.8184.1163.7
Snapper64.161.556.756.6
Hoki208.0170.7139.7128.2
Surimi36.843.425.812.4
Crustaceans118.0114.8129.0131.6
Molluscs (including squid)155.5140.6210.1268.4
Other fish332.4360.6367.7357.0
            Total fresh, chilled, frozen and live1,077.71,073.41,113.01,117.8
Preserved and prepared    
Fish26.936.132.336.8
Crustaceans and molluscs35.648.161.644.1
            Total preserved and prepared62.584.293.980.9
            Total fish, crustaceans and mollusc exports1,140.21,157.61,206.91,198.7
Percentage contribution to total exports6.46.16.15.7

Frozen half-shell mussels ready for export.

Fish, crustaceans and molluscs

Exports of fresh, frozen, chilled and live fish, crustaceans and molluscs were $1,117.8 million, up 0.4 percent compared with $1,113.0 million in the June 1994 year. Orange roughy retained its position as the industry's top fish earner, down 11.1 percent to $163.7 million, followed by hoki ($128.2 million) and snapper ($56.6 million). Mollusc exports rose 27.8 percent to $268.4 million. Another increase was of squid (included in the Molluscs category) rising 34.6 percent to $149.9 million.

Total exports of fish, crustaceans and molluscs including prepared and preserved fish, crustaceans and molluscs fell 0.7 percent in the June 1995 year to $1,198.7 million compared to $1,206.9 million in the June 1994 year. The fishing industry launched a major campaign to develop exports to Europe and Asia to reduce New Zealand's potentially dangerous over exposure to the Japanese market. Exports to Japan decreased from $344.3 million in the June 1994 year to $323.1 million in the June 1995 year, a decline of 6.2 percent. That followed a 5.8 percent decrease from the June 1993 year to the June 1994 year. New Zealand fish, crustacean and mollusc exports to Australia, Spain and Taiwan have all increased.

Table 25.1. DESTINATION OF FISH, CRUSTACEAN AND MOLLUSC EXPORTS*

Country1992199319941995

*Year ended June.

  $(million)  
Australia111.7121.6129.0139.5
Japan364.6365.6344.3323.1
Spain20.721.537.238.0
Taiwan, Province of China15.327.539.848.1
Thailand23.026.020.019.7
United Kingdom26.918.215.715.3
United States of America298.9294.7290.9268.0
Other279.1282.4330.0347.1
            Total exports of fish, crustaceans and molluscs1,140.21,157.61,206.91,198.7

Wool, hair and yarn

New Zealand's export of wool, hair and yarn has had another very successful year. In the June 1995 year wool exports increased 17.7 percent, valued at $1,340.3 million. Wool, hair and yarn exports contributed 6.4 percent of New Zealand's total exports in the June 1995 year compared with 5.7 percent in the year ended June 1994. Wool, hair and yarn exports were more important in the 1980s, for instance being worth $1,478.8 million in the June 1985 year and accounting then for 13.1 percent of New Zealand's total exports.

China continues to boost New Zealand's wool, hair and yarn exports, increasing 9.1 percent from $287.8 million in the year ended June 1994 to $313.9 million in the June 1995 year. Other countries contributing to the rise were Hong Kong (up 117.1 percent), Germany (up 86.4 percent), Turkey (up 57.6 percent) and Australia (up 35.5 percent).

Table 25.11. DESTINATION OF WOOL, HAIR & YARN EXPORTS*

Country1991199219931994

*Year ended June.

  $(million)  
Australia58.9124.897.5122.3
Belgium94.8105.665.863.0
China195.199.7287.8313.9
Germany88.696.654.4101.4
Hong Kong19.829.063.0136.9
India13.055.472.340.5
Italy76.348.348.849.0
Japan197.7157.272.482.1
Korea, Republic of39.623.810.19.6
Nepal0.537.652.637.3
Turkey7.014.717.527.5
United Kingdom187.5106.391.796.8
United States of America65.280.550.559.0
Other435.0453.1154.0200.9
            Total exports of wool, hair and yarn exports1,478.81,432.61,138.51,340.3
Percentage contribution to total exports13.19.45.76.4

SEAFOOD EXPORTS

FRUIT EXPORTS By variety

Fruit and nuts

In the June 1995 year exports of fruit and nuts were $876.3 million, 14.9 percent higher than $762.5 recorded in the June 1994 year. New Zealand's fresh apple exports were valued at $475.8 million in the June 1995 year, an increase of 52.9 percent compared with $311.1 million in the June 1994 year. That made apples the most popular fruit exported overseas, overtaking kiwifruit. Kiwifruit exports were worth $320.8 million in the June 1995 year, a decrease of 15.8 percent from the figure of $381.1 million recorded in the June 1994 year. The varieties of fresh apples contributing to the massive jump were Cox's orange pippin (up 74.7 percent) to $41.0 million, Granny Smith (up 62.6 percent) to $31.1 million and Braeburn (up 56.7 percent) to $187.9 million.

FRUIT EXPORTS

Table 25.12. FRUIT AND NUT EXPORTS*

Product1985199019941995

*Year ended June.

  $(million)  
Kiwifruit171.8474.9381.1320.8
Apples108.2212.6311.1475.8
Berries13.58.79.79.9
Pears2.15.69.215.3
Nuts0.10.20.50.6
Other62.734.550.853.9
            Total exports of fruit and nuts358.3736.5762.5876.3
Percentage contribution to total exports3.24.93.84.2

Countries receiving the majority of our fruit exports were the United Kingdom $122.9 million (up 58.4 percent), Japan $92.4 million (down 30.7 percent) and the United States $89.3 million (up 12.7 percent). In many cases our fruit exports are sold on consignment whereby the fruit is not sold when it leaves the country. These fruit exports are classified as ‘Destination unknown’. In the June 1995 year such fruit and nut consignment goods collated to $376.0 million, all of it going to the EU.

Table 25.13. DESTINATION OF FRUIT AND NUT EXPORTS*

Country1985199019941995

*Year ended June.

  $(million)  
Australia29.935.737.343.4
Hong Kong3.55.916.925.6
Japan57.6165.3133.292.4
Singapore5.87.822.321.0
Taiwan, Province of China2.15.510.319.0
United Kingdom21.461.377.6122.9
United States of America49.190.479.289.3
EU—Destination Unknown52.0326.8304.1376.0
Other136.837.881.586.8
            Total exports of fruit and nuts358.3736.5762.5876.3

25.3 Imports

In this chapter imports are valued at cif (cost, insurance and freight) which is the cost of buying the goods and bringing them to a New Zealand port.

Statistics on imports valued at vfd (value on duty) are also available. This is the value used to assess customs duty and equates approximately with the fob (free on board) value used for exports.

Imports are valued in New Zealand dollars. Foreign currency values are converted to New Zealand dollars 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.

Total imports for the June 1995 year totalled $21,262.5 million, an increase of 15.1 percent compared with $18,468.9 million for the June 1994 year.

MAJOR COMMODITIES
Imports

Table 25.14. MAJOR COMMODITIES IMPORTED*

CommodityValue of imports† (cif)Percentage of total imports† (cif)
199019941995199019941995

*Year ended June.

Includes re-imports.

  $(million)    
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof2,162.62,958.03,293.413.716.015.5
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof1,888.12,200.82,724.912.011.912.8
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders1,541.71,786.42,141.99.89.710.1
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes994.81,068.21,129.36.35.85.3
Aircraft, spacecraft and parts thereof885.2434.31,089.35.62.45.1
Plastics and articles thereof653.0843.3962.84.14.64.5
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus490.4612.0648.53.13.33.1
Paper and paperboard; articles of paper or paperboard357.1485.6565.32.32.62.7
Pharmaceutical products352.7519.8511.52.22.82.4
Iron and steel353.9376.1397.92.22.01.9
Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radioactive elements and isotopes409.6364.6397.42.62.01.9
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans262.6326.2342.01.71.81.6
Organic chemicals239.5299.4328.01.51.61.5
Iron or steel articles225.7269.9313.21.41.51.5
Rubber and articles thereof197.3256.0274.41.31.41.3
Chemical products nes191.9264.4252.71.21.41.2
Aluminium and articles thereof174.8176.9242.31.11.01.1
Apparel and clothing accessories; knitted or crocheted97.4169.6214.70.60.91.0
Apparel and clothing accessories; not knitted or crocheted109.4181.2211.00.71.01.0
Fertilizers83.0178.8201.00.51.00.9
Other nes4,100.14,697.35,021.226.025.423.6
            Total imports15,770.518,468.921,262.5100.0100.0100.0

Mechanical and electrical machinery

Imports of machinery (both mechanical and electrical) were $5,435.3 million in the June 1995 year, up 14.6 percent from the previous year. The main types of machinery imported in 1994 were automatic data processors ($722.8 million), parts and accessories thereof ($296.1 million), line telephony equipment ($239.4 million), transmission apparatus ($232.9 million) and records, tapes etc. ($188.1 million).

The United States of America is the largest supplier of machinery to New Zealand, supplying 27.1 percent ($1,472.7 million), followed by Japan (16.0 percent) and Australia (10.9 percent). In the June 1995 year imports from the United States, Japan and Australia increased 12.8 percent, 2.2 percent and 19.5 percent respectively. Other countries also made significant increases, Germany (up 23.0 percent), Taiwan (up 20.8 percent) and the United Kingdom (up 15.5 percent).

Table 25.15. MAJOR SUPPLIERS OF MECHANICAL AND ELECTRICAL MACHINERY*

Country1985199019941995

*Year ended June.

  $(million)  
Australia230.4443.0495.9592.8
Germany229.4224.4275.3338.7
Japan727.2771.2848.9867.1
Taiwan, Province of China34.3130.2219.8265.5
United Kingdom289.7324.7317.7366.9
United States of America632.8945.41,305.81,472.7
Other573.7865.41,281.11,531.6
            Total2,717.53,704.24,744.45,435.3
Percentage contribution to total imports21.823.525.725.6

Vehicles

In the June 1995 year vehicles worth $2,724.9 million were imported into New Zealand compared with $2,200.8 million in the June 1994 year, an increase of 23.8 percent. Passenger motor cars were the largest vehicle type imported in the June 1995 year, totalling 146,625 (worth $1,708.3 million).

Japan is the major supplier of vehicles to New Zealand. For the year ended June 1995 Japan supplied 64.1 percent of new car imports and 96.1 percent of used car imports.

Table 25.16. VEHICLE IMPORTS*

Commodity19901995
$(million)Quantity$(million)Quantity

*Year ended June.

Total car imports    
Unassembled—new548.154,872506.335,753
Assembled—new467.730,922765.532,854
Assembled—used140.474,010436.578,018
            Total cars1,156.2159,8041,708.3146,625
Car imports from Japan    
Unassembled—new410.746,374505.835,751
Assembled—new163.514,643171.88,245
Assembled—used223.572,480393.074,951
            Total cars from Japan797.7133,4971,070.6118,947

VEHICLE IMPORTS
Quantity

Mineral fuels

In the June 1995 year imports of mineral fuels were worth $1,129.3 million, an increase of 5.7 percent from $1,068.2 million recorded in the June 1994 year. Mineral fuels accounted for 5.3 percent of all imports compared with 5.8 percent last year and 13.3 percent in the June 1985 year. Crude petroleum oils makes up 73.6 percent of all mineral fuels.

Table 25.17. MINERAL FUEL IMPORTS*

Commodity1985199019941995

*Year ended June.

  $(million)  
Crude petroleum706.5748.0772.6830.6
Non-crude petroleum897.9184.1230.2258.6
Coal, coke, briquettes, etc45.654.657.132.5
Other9.78.18.37.5
            Total mineral fuel imports1,659.7994.81,068.21,129.3
Percentage contribution to total imports13.36.35.85.3

Saudi Arabia supplied 22.8 percent of total mineral fuel imports in the June 1995 year, compared with Australia, 20.6 percent, and the United Arab Emirates, 18.9 percent. In terms of crude oil Saudi Arabia supplied 46.6 percent in the June 1994 year, but only 29.8 percent in the June 1995 year.

Table 25.18. MINERAL FUEL SUPPLIERS*

Country1985199019941995

*Year ended June

  $(million)  
Australia420.6138.8257.5232.4
Indonesia363.399.528.758.7
Saudi Arabia301.5473.6364.2257.3
Singapore304.825.820.161.6
United Arab Emirates-145.0202.1213.6
United States of America155.840.536.237.7
Other113.771.6159.6267.9
            Total mineral fuel imports1,659.7994.81,068.21,129.3
Percentage contribution to total imports13.36.35.85.3

Plastic and plastic articles

In the June 1995 year New Zealand imported $962.8 million of plastic and plastic articles compared with $843.3 million last year, an increase of 14.2 percent. Since 1990 imports of plastic and plastic articles have increased 89.0 percent.

The two main suppliers of plastics are Australia and the United States, who collectively supplied 45.9 percent of all plastic imports in the June 1995 year. Other major suppliers of plastics to New Zealand were Japan, Germany, the United Kingdom and the Republic of Korea.

MAJOR TRADING PARTNERS
1995

Table 25.19. PLASTIC AND PLASTIC ARTICLE IMPORTS*

Country1985199019941995

*Year ended June.

  $(million)  
Australia106.7146.2199.8227.8
Canada13.222.520.822.8
Germany38.935.752.558.1
Japan77.565.369.883.4
Korea, the Republic of3.211.233.149.6
Netherlands31.920.921.224.9
Taiwan, Province of China11.727.845.443.6
United Kingdom45.443.551.357.4
United States of America119.7167.8200.0213.7
Other61.3112.2149.4181.5
            Total plastic and plastic article imports509.5653.0843.3962.8
Percentage contribution to total imports4.14.14.64.5

25.4 Major trading partners

New Zealand's pattern of trade reflects the country's efforts over the last two decades to diversify both its markets and its range of products. Although Australia, the European Union (EU), Asia and the United States of America still account for the majority of New Zealand's overseas trade, important trade links have been developed with other nations in Latin America, the Middle East and Eastern Europe.

Exports to Asia (including Japan) now account for 38.2 percent of all New Zealand's exports. Imports from Asia made up 29.5 percent of New Zealand's imports.

Table 25.2. TRADE BY GEOGRAPHICAL REGION AND COUNTRY*

CountryExports (fob)Imports (cif)
199019941995199019941995
   $(million)   
Oceania and Antarctica:      
Australia      
Australia2,980.24,162.24,342.43,257.33,942.24,443.6
Percentage of total exports/imports19.721.020.820.721.320.9
Australian External Territories      
Norfolk Island5.05.85.8
Percentage of total exports/imports
New Zealand      
New Zealand (re-imports)---72.989.086.7
Percentage of total exports/imports---0.50.50.4
Melanesia      
New Caledonia39.665.572.50.21.30.1
Papua New Guinea74.0122.784.59.241.8144.8
Solomon Islands11.818.519.11.01.10.7
Vanuatu13.613.916.30.10.20.2
            Total for Melanesia139.0220.6192.410.544.3145.8
Percentage of total exports/imports0.91.10.90.10.20.7
Micronesia      
Federated States of Micronesia0.10.40.8-0.1
Guam5.619.712.70.2
Kiribati2.94.44.9
Marshall Islands1.32.41.20.1
Nauru2.63.52.934.238.7
Northern Mariana Islands0.61.31.0-31.9
Palau0.3
            Total for Micronesia13.132.123.534.239.032.1
Percentage of total exports/imports0.10.20.10.20.20.2
Polynesia (excluding Hawaii)      
Cook Islands28.450.338.03.72.71.7
Fiji249.1215.7193.3138.646.250.5
French Polynesia68.197.798.50.30.70.8
Niue5.25.35.60.30.5
Samoa, American22.033.334.60.30.6
Samoa, Western36.086.874.78.15.85.1
Tokelau0.5
Tonga24.339.044.73.21.51.3
Tuvalu0.70.91.1
Wallis and Futuna1.15.15.7---
            Total for Polynesia435.1534.7496.3154.057.560.6
Percentage of total exports/imports2.92.72.41.00.30.3
Antarctica      
Antarctica-0.1---
Percentage of total exports/imports----
            Total for Oceania and Antarctica3,572.34,955.35,060.43,456.14,083.04,682.0
Percentage of total exports/imports23.625.024.221.922.122.0
Europe and the former USSR:      
The United Kingdom and Ireland      
United Kingdom1,093.61,182.31,290.51,389.11,111.61,318.0
Ireland14.518.020.146.057.356.8
            Total1,108.11,200.31,310.51,435.11,168.91,374.8
Percentage of total exports/imports7.36.16.39.16.36.5
Southern Europe      
Albania-0.1
Andorra-0.1--
Cyprus2.89.18.10.20.1
Gibraltar0.50.20.3--- 
Greece65.470.548.119.87.65.3
Holy See (Vatican City)---0.1
Italy268.2265.3290.4319.1481.4468.8
Malta3.86.44.80.10.1
Portugal27.925.123.919.618.421.5
San Marino      
Spain88.190.886.054.658.393.4
Bosnia-Herzegovina------
Croatia-1.14.2-0.60.4
Macedonia----0.1
Slovenia-0.10.5-2.53.7
Yugoslavia/Serbia and Montenegro3.21.71.94.4
            Total for Southern Europe459.8470.2468.2417.7569.1593.3
Percentage of total exports/imports3.02.42.22.63.12.8
Western Europe      
Austria4.317.418.158.443.860.2
Belgium186.4239.1224.1114.3133.7146.6
EU but country unknown327.4304.2376.5---
France176.9211.6232.1257.7318.6355.9
Germany353.2490.8507.8689.9807.1970.9
Liechtenstein0.70.30.2
Luxembourg0.24.79.39.5
Monaco0.2-0.10.30.2
Netherlands160.1123.1120.6174.5213.2233.2
Switzerland34.858.172.3162.0208.4195.6
            Total for Western Europe1,243.31,444.51,551.61,462.31,734.71,972.3
Percentage of total exports/imports8.27.37.49.39.49.3
Northern Europe      
Denmark23.737.443.068.888.2138.3
Faeroe Islands0.60.21.4
Finland5.17.910.867.083.6105.5
Greenland--0.1-8.4-
Iceland0.40.30.20.13.15.9
Norway5.86.19.890.250.735.6
Sweden32.243.554.5171.1317.4358.5
            Total for Northern Europe67.395.8118.6397.2552.8643.9
Percentage of total exports/imports0.40.50.62.53.03.0
Eastern Europe      
Bulgaria3.00.20.60.40.30.3
German Democratic Republic8.3--1.4--
Hungary2.21.61.73.32.52.8
Poland2.22.17.72.54.721.9
Romania15.00.98.71.61.1
Czech Republic-2.13.6-9.210.4
Czechoslovakia16.3--7.6--
Slovakia, Slovak Republic-0.40.3-0.1
            Total for Eastern Europe47.16.515.023.818.436.4
Percentage of total exports/imports0.30.10.20.10.2
The Former USSR and the Baltic States      
Armenia----
Azerbaijan----
Belarus-0.2--0.1
Estonia---
Georgia---
Kazakhstan-0.3--0.30.1
Kyrgyzstan----
Latvia-0.1-1.1
Lithuania-74.10.1--0.4
Moldova-----
Russia-134.4137.0-6.36.0
Tajikistan-0.2---
Turkmenistan----
Ukraine-2.91.0-0.3
USSR354.2--14.0--
Uzbekistan--
            Total for the former USSR and the Baltic States354.2212.0138.314.06.88.0
Percentage of total exports/imports2.31.10.70.1
            Total for Europe and the former USSR3,279.83,429.33,602.23,750.14,050.74,628.8
Percentage of total exports/imports21.617.317.223.821.921.8
The Middle East and North Africa:      
The Middle East      
Bahrain8.915.512.00.13.55.2
Iran (Islamic Republic of)178.172.868.11.551.530.6
Iraq21.9---
Israel0.94.54.540.651.340.8
Jordan32.031.825.21.525.111.4
Kuwait29.424.423.0-
Lebanon0.91.01.90.1
Oman16.515.813.823.329.336.3
Qatar2.53.33.21.20.22.2
Saudi Arabia102.1215.9168.6489.1375.6282.4
Syrian Arab Republic0.15.27.9-
Turkey38.7121.8137.611.510.716.8
United Arab Emirates32.340.444.8145.1202.4214.1
Yemen12.017.914.4-0.10.1
            Total for the Middle East476.4570.2524.8714.0749.8640.1
Percentage of total exports/imports3.12.92.54.54.13.0
North Africa      
Algeria82.9133.899.7--
Cape Verde-----
Egypt24.150.946.73.67.44.0
Libyan Arab Republic3.45.03.0---
Mauritania--
Morocco2.028.326.920.127.430.0
Sudan4.40.3
Tunisia2.15.13.30.13.8
Western Sahara------
            Total for North Africa119.0223.2179.523.835.137.9
Percentage of total exports/imports0.81.10.90.20.20.2
            Total for the Middle East and North Africa595.4793.4704.3737.8784.9678.0
Percentage of total exports/imports3.94.03.44.74.23.2
Asia:      
Southeast Asia      
Brunei Darussalam0.814.412.0-
Cambodia-0.10.8-
Indonesia136.8210.1301.6138.0145.4201.1
Lao Peoples Democratic Rep.0.10.5-
Malaysia246.3392.8398.5105.4222.5275.6
Myanmar (formerly Burma)0.70.20.40.10.20.7
Philippines144.5202.1194.728.746.048.4
Singapore171.3269.6281.3202.9296.5399.6
Thailand130.8192.2260.685.3147.8156.4
Viet Nam4.927.636.90.23.410.8
            Total for Southeast Asia836.11,309.31,487.3560.6861.81,092.6
Percentage of total exports/imports5.56.67.13.64.75.1
Northeast Asia      
China, Peoples Republic of157.1528.6544.7172.6570.1701.9
Hong Kong215.7481.9595.6210.2218.7223.4
Japan2,485.62,886.83,416.62,652.42,928.13,176.0
Korea, Democratic Peoples Rep0.61.4- 
Korea, Republic of502.0928.61,035.1289.1297.4333.6
Macau0.10.41.63.81.92.5
Mongolia-0.1
Taiwan, Province of China248.6507.3632.3432.1518.1566.6
            Total for Northeast Asia3,609.75,335.26,225.93,760.24,534.55,004.1
Percentage of total exports/imports23.826.929.823.824.623.5
Southern Asia      
Afghanistan-0.10.10.20.20.2
Bangladesh5.811.918.06.46.16.3
Bhutan-0.10.1---
India91.1163.3122.553.588.2111.2
Maldives1.10.91.6
Nepal37.654.037.90.10.50.3
Pakistan35.119.518.825.649.848.8
Sri Lanka58.267.581.210.110.510.6
            Total for Southern Asia228.9317.1280.395.9155.4177.5
Percentage of total exports/imports1.51.61.30.60.80.8
            Total for Asia4,674.86,961.67,993.54,416.85,551.76,274.2
Percentage of total exports/imports30.835.138.228.030.129.5
Northern America:      
Northern America      
Bermuda5.34.710.31.11.1
Canada274.9361.9334.6300.5300.5316.8
St. Pierre and Miquelon-----
United States of America1,979.02,228.72,168.32,797.93,321.54,273.7
            Total for Northern America2,259.22,595.32,513.23,098.53,623.14,591.6
Percentage of total exports/imports14.913.112.019.619.621.6
South America, Central America and the Caribbean:      
South America      
Argentina1.136.734.930.624.524.5
Bolivia2.82.80.1
Brazil13.420.162.868.474.675.8
Chile25.057.266.915.612.024.2
Colombia0.11.13.61.54.34.8
Ecuador2.112.01.039.928.526.3
Falkland Islands (Malvinas)0.20.1—-- 
French Guiana0.60.80.9--
Guyana0.13.84.40.70.8
Paraguay0.20.3
Peru50.088.489.32.87.14.8
Suriname-0.1--
Uruguay1.43.712.80.20.10.3
Venezuela0.994.493.00.30.90.1
            Total for South America95.0321.3372.9159.8152.0161.8
Percentage of total exports/imports0.61.61.81.00.80.8
Central America      
Belize1.00.2--
Costa Rica0.36.20.30.40.9
El Salvador7.00.718.6
Guatemala2.732.435.00.10.91.4
Honduras1.80.20.40.4
Mexico253.1279.6140.431.819.628.0
Nicaragua-0.60.20.10.20.1
Panama8.613.527.70.320.88.4
            Total for Central America274.2327.2228.232.742.439.1
Percentage of total exports/imports1.81.71.10.20.20.2
The Caribbean      
Anguilla------
Antigua and Barbuda0.40.30.4--
Aruba0.3----
Bahamas1.61.92.60.70.72.1
Barbados14.712.011.40.1
Cayman Islands-0.0--0.1
Cuba11.315.50.1
Dominica0.1-0.10.1
Dominican Republic20.021.011.80.10.4
Grenada3.02.11.2---
Guadeloupe5.57.76.4---
Haiti1.00.60.60.1-
Jamaica23.717.314.75.35.66.1
Martinique4.75.95.2--
Montserrat-----
Netherlands Antilles1.01.41.5-0.1
Puerto Rico6.81.81.916.624.426.0
St. Kitts—Nevis0.10.20.3--
St. Lucia1.22.22.6-0.2
St. Vincent and Grenadines0.10.20.3
Trinidad and Tobago13.812.311.70.10.10.2
Virgin Islands, British----
Virgin Islands, US0.10.60.3---
            Total for the Caribbean97.899.088.422.831.235.3
Percentage of total exports/imports0.60.50.40.10.20.2
            Total for South America, Central America and the Caribbean466.9747.5689.5215.4225.6236.3
Percentage of total exports/imports3.13.83.31.41.21.1
Africa (excluding North Africa):      
Central and West Africa      
Benin----
Burkina Faso0.10.1----
Cameroon, Republic of0.10.3
Central African Republic------
Chad------
Congo--
Coted'Ivoire3.20.20.2
Equatorial Guinea------
Gabon0.2----
Gambia--
Ghana0.10.50.40.20.60.4
Guinea-0.1--0.1
Guinea-Bissau----- 
Liberia-----
Mali---
Niger3.1----
Nigeria0.92.11.20.1
Sao Tome and Principe-0.1---
Senegal-1.25.3-
Sierra Leone-0.1
Togo-0.1--
Zaire----0.1 
            Total for Central and West Africa4.54.210.20.31.01.2
Percentage of total exports/imports
Southern and East Africa      
Angola0.23.90.1---
Botswana0.74.11.5-
Burundi----- 
Comoros-0.1--
Djibouti0.1----
Eritrea----
Ethiopia0.10.1-
Kenya3.41.01.62.83.33.3
Lesotho---
Madagascar-0.40.30.20.1
Malawi2.00.70.71.82.93.5
Mauritius30.629.230.20.40.50.6
Mayotte------
Mozambique1.70.70.3-
Namibia0.20.2-0.1
Reunion3.25.26.2---
Rwanda0.2--
St Helena----- 
Seychelles0.20.1---
Somalia   
South Africa18.540.161.89.848.071.6
Swaziland0.1-1.20.10.1
Tanzania, United Rep. of0.10.30.21.51.40.3
Uganda-0.3-
Zambia0.10.10.8-
Zimbabwe3.13.10.84.03.44.2
            Total for Southern and East Africa63.889.7104.522.459.983.6
Percentage of total exports/imports0.40.50.50.10.30.4
            Total for Africa (excluding North Africa)68.394.0114.722.760.984.8
Percentage of total exports/imports0.50.50.50.10.30.4
Not allocated:      
Bunkering160.1126.0133.4---
Passengers' baggage53.394.293.8---
Ship's stores32.929.819.7---
            Total for not allocated246.4250.0246.8---
Percentage of total exports/imports1.61.31.2---
            Total exports/imports15,163.519,827.120,924.915,770.518,468.921,262.5

Peter Jack, otherwise known as Mr Whip, is the only full-time whip maker, demonstrator and exporter in New Zealand. His Christchurch-based, one-man operation offers a unique and sought after product and he sells whips to Australia, Alaska, the United States, Canada, and England.

Peter makes a wide variety of whips: rope whips for use in cattle yards; bull whips (up to 30 feet long for the loudest crack); black snake whips for forward driving, oxen whips, stock whips (which simulate the body of a snake), riding whips and a range of saddlery accoutrements. Many of his whips are his own designs, and every whip is custom-made for its new owner, mostly using kangaroo hide imported from Australia. All the finishing—deer antler or turned wood handles, engraving or brass inlays—is done by Peter himself.

Table 25.21. TOP 10 COUNTRIES FOR EXPORTS*

CountryValue of exports† (fob)Percentage of total exports (fob)
199019941995199019941995

*Year ended June.

Includes re-imports.

Includes bunkering, ship stores and passengers' baggage.

  $(million)    
Australia2,980.24,162.24,342.419.721.020.8
Japan2,485.62,886.83,416.616.414.616.3
United States of America1,979.02,228.72,168.313.111.210.4
United Kingdom1,093.61,182.31,290.57.26.06.2
Korea, Republic of502.0928.61,035.13.34.74.9
Taiwan, Province of China248.6507.3632.31.62.63.0
Hong Kong215.7481.9595.61.42.42.8
China, People's Republic of157.1528.6544.71.02.72.6
Germany, Federal Rep. of353.2490.8507.82.32.52.4
Malaysia246.3392.8398.51.62.01.9
            Total10,261.213,790.214,931.867.769.671.4
All other countries†‡4,902.36,036.95,993.132.330.428.6
            Total exports15,163.519,827.120,924.9100.0100.0100.0

In the June 1995 year New Zealand's top 10 trading partners received 71.4 percent of its total exports and supplied 78.4 of its imports. Australia, Japan, the United States of America and the United Kingdom are the top four major trading partners. These countries collectively bought 53.6 percent of New Zealand's exports and supplied 62.1 percent of its imports in the June 1995 year.

Table 25.22. TOP 10 COUNTRIES FOR IMPORTS*

CountryValue of imports (cif)Percentage of total imports (cif)
199019941995199019941995

* Year ended June.

  $(million)    
Australia3,257.33,942.24,443.620.721.320.9
United States of America2,797.93,321.54,273.717.718.020.1
Japan2,652.42,928.13,176.016.815.914.9
United Kingdom1,389.11,111.61,318.08.86.06.2
Germany689.9807.1970.94.44.44.6
China, People's Republic of172.6570.1701.91.13.13.3
Taiwan, Province of China432.1518.1566.62.72.82.7
Italy319.1481.4468.82.02.62.2
Singapore202.9318.6399.61.31.71.9
Sweden171.1317.4358.51.11.71.7
            Total12,084.414,316.116,677.676.677.578.4
Other3,686.04,152.74,584.923.422.521.6
            Total15,770.518,468.921,262.5100.0100.0100.0

Australia

Australia, New Zealand's top trading partner, bought 20.8 percent ($4,342.4 million) of New Zealand's exports and supplied 20.9 percent ($4,443.6 million) of its imports in the June 1995 year. Trade with Australia continues to rise, with both exports and imports reaching record levels for the June 1995 year.

The strong growth in trade with Australia is underpinned by the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), which provided for free trade in goods between the two countries from 1 July 1990. This agreement was signed in 1983.

Table 25.23. MAJOR COMMODITIES TRADED WITH AUSTRALIA*

Commodity1992199319941995

* Year ended June.

Exports    
Mechanical machinery255.3307.0410.5428.3
Wood and wood article294.0351.1394.4371.5
Pearls, gold etc187.2273.2312.2303.6
Paper and paperboard264.2257.9264.7279.6
Mineral fuels300.6259.5260.5230.2
Electrical machinery163.3171.2190.9218.6
Plastics and articles111.8141.2157.3185.4
Aluminium and articles85.596.6108.7124.0
Other1,726.11,928.02,063.12,201.1
            Total exports to Australia3,387.93,785.64,162.24,342.4
Percentage contribution to total exports19.020.021.020.8
Imports    
Vehicles283.8298.6347.3465.1
Mechanical machinery233.4242.1264.1322.3
Electrical machinery217.7239.9231.8270.5
Inorganic chemicals293.8219.4221.8251.2
Mineral fuels237.3260.2257.5232.4
Plastics and articles164.5198.3199.8227.8
Pharmaceuticals147.8164.8186.3191.5
Aluminium and articles127.9124.2117.1163.5
Other1,720.41,999.82,116.52,319.3
            Total imports from Australia3,426.73,747.33,942.24,443.6
Percentage contribution to total imports22.121.621.320.9

EXPORTS TO AUSTRALIA

Table 25.24. TRADE WITH AUSTRALIA

Year ended JuneExports(fob)Imports(cif)Balance
  $(million) 
19851,835.72,304.0-468.3
19861,821.81,898.0-76.2
19871,794.92,119.8-324.9
19882,073.82,468.3-394.6
19892,603.82,672.9-69.1
19902,980.23,257.3-277.2
19912,937.43,117.2-179.7
19923,387.93,426.7-38.8
19933,785.63,747.338.3
19944,162.23,942.2220.0
19954,342.44,443.6-101.2

The main commodities exported to Australia were mechanical machinery ($428.3 million), wood and wood articles ($371.5 million), pearls and precious stones (mainly gold) ($303.6 million) and paper and paperboard ($279.6 million). In the June 1995 year of these exports to Australia only mechanical machinery and paper and paperboard rose, 4.3 percent and 5.6 percent respectively.

Imports from Australia rose 12.7 percent in the June 1995 year to $4,443.6 million. Main commodities imported from Australia were vehicles ($465.1 million), mechanical machinery ($322.3 million), electrical machinery ($270.5 million) and inorganic chemicals ($251.2 million). In the June 1995 year all those commodities rose, 33.9 percent, 22.0 percent, 16.7 percent and 13.3 percent respectively.

IMPORTS FROM AUSTRALIA

United States of America

The United States of America is New Zealand's third largest export market, behind Australia and Japan, and the second largest supplier of New Zealand's imports.

Exports to the United States of America in the June 1995 year were $2,168.3 million, decreasing 2.7 percent compared with $2,228.7 million in the June 1994 year. This is the third consecutive decrease since the peak in the June 1992 year. Meat and edible offal (down 17.5 percent) was the main contributor to the decrease. Decreases were also seen for fish, crustaceans and molluscs and dairy produce.

Imports from the United States in the June 1995 year were $4,273.7 million, up 28.7 percent compared with the June 1994 year. Imports of mechanical and electrical machinery, vehicles, plastics and organic chemicals all increased. The most notable increase was that of aircraft and parts thereof which rose 249.3 percent to $977.8 million.

Table 25.25. TRADE WITH UNITED STATES

Year ended JuneExports(fob)Imports(cif)Balance
  $(million) 
19851,636.02,047.8-411.9
19861,612.21,953.5-341.3
19871,944.81,872.172.7
19881,803.01,827.4-24.4
19891,975.32,049.7-74.4
19901,979.02,797.9-818.9
19912,047.22,609.5-562.3
19922,293.02,808.0-515.0
19932,256.63,198.8-942.2
19942,228.73,321.5-1,092.7
19952,168.34,273.7-2,105.3

The major commodities exported to the United States of America are primary and agricultural based produce. In the June 1995 year, among the main commodities exported were $648.2 million worth of meat and edible offal, $263.5 million of fish, crustaceans and molluscs, and $214.5 million worth of albuminoidal substances such as casein and caseinates.

TRADE WITH USA

Imports from the United States consisted of mechanical and electrical machinery worth $1,472.7 million, aircraft worth $977.8 million, optical and medical equipment worth $226.6 million, plastic and plastic articles worth $213.7 million and vehicles worth $130.7 million.

Japan

Japan is New Zealand's second major export partner after Australia and third major supplier of imports behind Australia and the United States. Exports to Japan in the June 1995 year were $3,416.6 million (up 18.5 percent) and imports from Japan were $3,176.0 million (up 8.5 percent).

The rise in the value of exports was due to primarily a 219.1 percent increase in organic chemicals (up $287.8 million). Other commodity rises were aluminium and articles (up 34.6 percent at $485.2 million) and wood and wood articles (up 11.8 percent at $659.5 million). Imports from Japan increased 8.5 percent reaching a record level of $3,176.0 million. Vehicles was the major commodity imported at $1,532.8 million (up 17.6 percent). Mechanical and electrical machinery were the other two largest items, valued at $499.8 million and $367.3 million respectively.

Table 25.26. MAJOR COMMODITIES TRADED WITH JAPAN*

Commodity1992199319941995

* Year ended June.

  $(million)  
Exports    
Wood and wood articles359.5527.5589.7659.5
Aluminium and articles442.1345.1360.4485.2
Organic chemicals73.170.2131.4419.1
Fish and crustaceans, molluscs and other aquatic invertebrates363.5364.6343.8322.2
Meat and edible meat offal146.7178.9190.4194.1
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei207.0171.3167.5191.9
Vegetables and certain roots and tubers; edible110.0110.4151.8155.0
Pulp of wood or other fibrous cellulosic material110.6108.293.1115.8
Other902.7882.9858.7873.7
            Total exports to Japan2,715.12,759.12,886.83,416.6
Percentage contribution to total exports15.214.514.616.3
Imports    
Vehicles924.61,104.61,303.71,532.8
Mechanical machinery298.0352.6479.8499.8
Electrical machinery370.5375.6369.0367.3
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus104.5135.9137.6133.6
Iron and steel73.7109.599.0124.7
Plastics and articles thereof66.672.469.883.4
Rubber and articles thereof55.167.868.067.3
Paper and paperboard72.268.651.352.9
Other409.8365.5349.9314.2
            Total imports from Japan2,375.12,652.62,928.13,176.0
Percentage contribution to total imports15.315.315.914.9

The United Kingdom

The United Kingdom has historically been one of New Zealand's largest trading partners. It was New Zealand's largest trading partner right through until the late 1970s when Australia, Japan and the United States became dominant. In the June 1995 year the UK received $1,290.5 million of New Zealand's exports, an increase of 9.1 percent from the $1,182.3 million in the June 1994 year. Major commodities exported were dairy produce ($421.6 million) and meat and edible offal ($386.0 million).

Rock lobsters (crayfish) which will be exported alive. The Marlborough-based family business, now in 50-50 partnership with Ngai Tahu, began exporting live lobsters to Asia in 1986.

Imports from the UK were valued at $1,318.0 million, an increase of 18.6 percent from the value of $1,111.6 million recorded in the June 1994 year. Major commodities imported in the June 1995 year were mechanical machinery ($234.2 million), vehicles ($178.3 million) and electrical machinery ($132.7 million).

APEC

On 6th November 1989 Australia hosted the first regional meeting of Asia-Pacific Economic Co-operation (APEC) for ministers. APEC, an Australian initiative, provides countries in the region with a forum to promote economic interaction and policy co-ordination to ensure regional economic growth. Current members are Australia, Brunei Darussalam, Canada, Chile, People's Republic of China, Hong Kong, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, Papua New Guinea, Philippines, Singapore, Taiwan Province of China, Thailand, United States of America. Mexico and Papua New Guinea joined during the June 1994 year and Chile joined during the June 1995 year.

Trade with APEC countries continues to increase steadily with exports at $14,810.2 million in 1995, 70.8 percent of total exports.

Table 25.27. EXPORTS TO APEC COUNTRIES*†

CountryValue of exports(fob)Percentage of total exports
199019941995199019941995

* Year ended June.

Includes re-imports.

Includes bunkering, ship stores and passengers' baggage.

  $(million)    
Australia2,980.24,162.24,342.419.721.020.8
Brunei Darussalam0.814.412.00.00.10.1
Canada274.9361.9334.61.81.81.6
Chile--66.9--0.3
China, People's Republic of-528.6544.7-2.72.6
Hong Kong-481.9595.6-2.42.8
Indonesia136.8210.1301.60.91.11.4
Japan2,485.62,886.83,416.616.414.616.3
Korea, Republic of502.0928.61,035.13.34.74.9
Malaysia246.3392.8398.51.62.01.9
Mexico-279.6140.4-1.40.7
Papua New Guinea-122.784.5-0.60.4
Philippines144.5202.1194.71.01.00.9
Singapore171.3269.6281.31.11.41.3
Taiwan, Province of China-507.3632.3-2.63.0
Thailand130.8192.2260.60.91.01.2
United States of America1,979.02,228.72,168.313.111.210.4
            Total exports to APEC countries9,052.113,769.714,810.259.769.470.8
Other countries‡6,111.46,057.46,114.740.330.629.2
            Total exports15,163.519,827.120,924.9100.0100.0100.0

Table 25.28. IMPORTS FROM APEC COUNTRIES*

CountryValue of imports (cif)Percentage of total imports
199019941995199019941995

* Year ended June

  $(million)    
Australia3,257.33,942.24,443.620.721.320.9
Brunei Darussalam--
Canada300.5300.5316.81.91.61.5
Chile--24.2--0.1
China, Peoples Republic of-570.1701.9-3.13.3
Hong Kong-218.7223.4-1.21.1
Indonesia138.0145.4201.10.90.80.9
Japan2,652.42,928.13,176.016.815.914.9
Korea, Republic of289.1297.4333.61.81.61.6
Malaysia105.4222.5275.60.71.21.3
Mexico-19.628.0-0.10.1
Papua New Guinea-41.8144.8-0.20.7
Philippines28.746.048.40.20.20.2
Singapore202.9296.5399.61.31.61.9
Thailand-147.8156.4-0.80.7
Taiwan, Province of China85.3518.1566.60.52.82.7
United States of America2,797.93,321.54,273.717.718.020.1
            Total imports from APEC countries9,857.613,016.315,313.762.570.572.0
Other countries5,912.95,452.65,948.837.529.528.0
            Total imports15,770.518,468.921,262.5100.0100.0100.0

Table 25.29. MAJOR COMMODITIES EXPORTED TO APEC COUNTRIES*

CommodityValue of exports (fob)Percentage of exports
199019941995199019941995

* Year ended June.

  $(million)    
Wood and articles of wood; wood charcoal547.11,626.81,616.86.011.810.9
Meat and edible meat offal1,183.31,611.21,372.913.111.79.3
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei678.71,284.71,312.67.59.38.9
Fish and crustaceans, molluscs and other aquatic invertebrates631.3939.5943.87.06.86.4
Aluminium and articles thereof706.7655.4844.07.84.85.7
Wool, fine or coarse animal hair; horsehair yarn and woven fabric406.1623.0781.84.54.55.3
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof384.3616.4682.34.24.54.6
Albuminoidal substances; modified starches; glues; enzymes374.0470.6420.74.13.42.8
Paper and paperboard; articles of paper or paperboard271.3371.3399.63.02.72.7
Raw hides and skins (other than furskins) and leather302.0344.3330.43.32.52.2
Fruit and nuts, edible; peel of citrus fruit or melons303.7330.9329.43.42.42.2
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes393.5363.4298.74.32.62.0
Other nei2,870.24,532.05,477.031.732.937.0
            Total exports to APEC countries9,052.113,769.714,810.2100.0100.0100.0

Table 25.3. MAJOR COMMODITIES IMPORTED FROM APEC COUNTRIES*

CommodityValue of imports (cif)Percentage of total imports
199019941995199019941995

* Year ended June.

  $(million)    
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof1,373.42,059.32,314.513.915.815.1
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof1,560.91,838.52,201.615.814.114.4
Electrical machinery and equipment and parts thereof: sound recorders and reproducers, television image and sound recorders1,046.71,407.11,628.710.610.810.6
Aircraft, spacecraft and parts thereof425.2296.41,006.44.32.36.6
Plastics and articles thereof570.1611.5688.15.84.74.5
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes312.9409.3556.23.23.13.6
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus327.8423.4449.63.33.32.9
Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radioactive elements and isotopes188.7319.8356.21.92.52.3
Iron and steel334.8313.0329.53.42.42.2
Paper and paperboard; articles of paper or paperboard293.6296.5321.63.02.32.1
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans160.7229242.01.61.81.6
Pharmaceutical products132.6237236.01.31.81.5
Other nei3,130.14,576.34,983.331.835.232.5
            Total imports from APEC countries9,857.613,016.315,313.7100.0100.0100.0

European Union

The EU grew out of the desire of European Governments after World War II to avoid future conflicts and to promote peaceful economic development. It was established in 1957 under the Treaty of Rome as an essentially economic grouping of six members: France, Germany, Belgium, the Netherlands, Luxembourg and Italy. There are now 15 countries in the EU, the original six plus Denmark, Spain, United Kingdom, Greece, Ireland and Portugal, and Austria, Finland and Sweden who joined the EU during the June 1995 year. Several Eastern European and Mediterranean countries are also candidates.

In the June 1995 year the EU took 16.0 percent of New Zealand's total exports, worth $3,346.4 million. The major commodities exported to the EU are primarily primary produce, such as meat and edible offal ($974.8 million), fruit and nuts ($519.0 million) and dairy produce ($501.6 million). New Zealand imported $4,342.5 million worth of EU goods in the June 1995 year, an increase of 31.4 percent compared with $3,304.8 million in the June 1994 year. This made the EU the provider of over a fifth of all New Zealand imports. Major commodities imported from the EU were mechanical machinery ($903.7 million), vehicles ($515.0 million), electrical machinery ($460.6 million) and pharmaceutical products ($228.5 million).

Table 25.31. EXPORTS TO EU*

CountryValue of exports(fob)Percentage of total exports
199019941995199019941995

*Year ended June.

   $(million)   
Austria--18.1--0.5
Belgium186.4239.1224.16.77.86.7
Germany353.2490.8507.812.716.015.2
Denmark23.737.443.00.81.21.3
Finland--10.8--0.3
France176.9211.6232.16.46.96.9
Greece65.470.548.12.32.31.4
Ireland14.518.020.10.50.60.6
Italy268.2265.3290.49.68.78.7
Luxembourg0.00.20.00.00.00.0
Netherlands160.1123.1120.65.74.03.6
Portugal27.925.123.91.00.80.7
Spain88.190.886.03.23.02.6
Sweden--54.5--1.6
United Kingdom1,093.61,182.31,290.539.338.738.6
Dest. unknown—EU327.4304.2376.511.89.911.3
            Total exports to the EU2,785.53,058.23,346.418.415.416.0
Other countries12,378.016,768.817,578.581.684.684.0
            Total exports15,163.519,827.120,924.9100.0100.0100.0

Table 25.32. IMPORTS FROM EU*

CountryValue of imports(cif)Percentage of total imports
199019941995199019941995

*Year ended June

  $(million)    
Austria--60.2--1.4
Belgium114.3133.7146.63.64.03.4
Denmark68.888.2138.32.22.73.2
Finland--105.5--2.4
France257.7318.6355.98.29.68.2
Germany689.9807.1970.921.824.422.4
Greece19.87.65.30.60.20.1
Ireland46.057.356.81.51.71.3
Italy319.1481.4468.810.114.610.8
Luxembourg4.79.39.50.10.30.2
Netherlands174.5213.2233.25.56.45.4
Portugal19.618.421.50.60.60.5
Spain54.658.393.41.71.82.2
Sweden--358.5--8.3
United Kingdom1,389.11,111.61,318.044.033.630.4
            Total imports from the EU3,157.93,304.84,342.520.017.920.4
Other countries12,612.515,164.116,920.080.082.179.6
            Total imports15,770.518,468.921,262.5100.0100.0100.0

Table 25.33. TRADE WITH EU

Year ended JuneExports(fob)Percentages of total exportsImports(cif)Percentages of total imports
 $(million) $(million) 
19852,258.920.12,588.320.8
19862,086.319.72,562.922.4
19872,635.820.82,792.423.7
19882,589.220.82,620.522.6
19892,721.918.32,297.218.4
19902,785.518.43,157.920.0
19912,702.917.12,908.719.0
19922,946.316.52,676.817.3
19932,987.915.73,057.017.6
19943,058.215.43,304.817.9
19953,346.416.04,342.520.4

Table 25.34. MAJOR COMMODITIES EXPORTED TO EU*

CommodityValue of exports (fob)Percentage of total exports (fob)
199019941995199019941995

*Year ended June

  $(million)    
Meat and edible meat offal723.0967.7974.826.031.629.1
Fruit and nuts, edible; peel of citrus fruit or melons401.8403.4519.014.413.215.5
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei377.6464.7501.613.615.215.0
Wool, fine or coarse animal hair; horsehair yarn and woven fabric483.6297.1352.717.49.710.5
Raw hides and skins (other than furskins) and leather299.9199.3202.210.86.56.0
Albuminoidal substances; modified starches; glues; enzymes107.1152.2155.03.85.04.6
Fish and crustaceans, molluscs and other aquatic invertebrates31.3120.3133.61.13.94.0
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof58.861.669.12.12.02.1
Vegetables and certain roots and tubers; edible27.050.363.71.01.61.9
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders21.238.757.10.81.31.7
Animal originated products; nei52.257.255.21.91.91.6
Beverages, spirits and vinegar12.932.633.10.51.11.0
Others nei189.1213.0229.46.87.06.9
            Total exports to the EU2,785.53,058.23,346.4100.0100.0100.0

Table 25.35. MAJOR COMMODITIES IMPORTED FROM EU*

CommodityValue of imports (cif)Percentage of total imports (cif)
199019941995199019941995

*Year ended June

Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof530.9679.7903.716.820.620.8
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof257.4304.3515.08.29.211.9
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders311.2286.9460.69.98.710.6
Pharmaceutical products165.8200.6228.55.36.15.3
Plastics and articles thereof142.1178.5226.94.55.45.2
Paper and paperboard; articles of paper or paperboard113.4119.0217.63.63.65.0
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus121.6147.4168.83.84.53.9
Chemical products n.e.s64.8106.1102.32.13.22.4
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans82.495.297.52.62.92.2
Organic chemicals72.083.796.12.32.52.2
Aircraft, spacecraft and parts thereof313.089.378.59.92.71.8
Iron or steel articles52.451.968.11.71.61.6
Others nei931.1962.11,178.929.529.127.1
            Total imports from the EU3,157.93,304.84,342.5100.0100.0100.0

TRADE WITH ASIA

Asia

Exports to Asian countries (other than Japan) have increased 12.3 percent reflecting New Zealand's campaign to diverse and develop exports to Asia. They totalled $4,576.9 million in the June 1995 year compared with $4,074.7 million in the June 1994 year.

In the June 1995 year imports from Asian countries increased 18.1 percent to top the $3 billion mark at $3,098.2 million, compared with $2,623.6 million in the June 1994 year. Major commodities imported were mechanical and electrical machinery.

Table 25.36. TRADE WITH ASIAN COUNTRIES*

Year ended JuneExportsPercentage of total exportsImportsPercentage of total importsBalance

*Excluding Japan

 $(million)percent$(million)percent$(million)
19851,473.313.01,555.212.5-81.9
19861,304.312.31,273.811.130.4
19871,722.214.21,336.811.3385.4
19881,848.314.81,279.811.0568.4
19892,559.417.21,548.912.41,010.5
19902,189.214.41,764.311.2424.9
19912,752.417.51,743.111.41,009.2
19923,494.819.62,089.513.51,405.3
19933,805.220.12,430.014.01,375.2
19944,074.720.62,623.614.21,451.1
19954,576.921.93,098.214.61,478.7

25.5 Overseas cargo

Overseas cargo records all goods, the value and gross weight, loaded or unloaded at New Zealand's seaports or airports.

Overseas cargo statistics, like overseas merchandise trade statistics, are sourced from customs entries. However, there are some conceptual differences between overseas trade statistics and overseas cargo statistics.

Some items are included in overseas cargo statistics, but not in the overseas merchandise trade statistics. These include:

  • goods being returned after repair or modification in New Zealand;

  • goods on short-term loan or lease;

  • service transactions, eg computer data tapes and drawings;

  • goods consigned to New Zealand forces or diplomatic representatives; and

  • returnable containers and samples.

Table 25.37. OVERSEAS CARGO LOADED AT NZ PORTS

Year ended JuneValue (fob)Gross weight
199019941995199019941995
Seaports $(million)  tonnes 
Whangarei290.3387.4270.7632,692914,422542,550
Auckland3,906.64,975.65,287.81,312,9261,910,1652,123,432
Tauranga1,819.12,981.52,785.42,997,0294,543,0504,913,705
Taharoa19.325.020.61,222,6401,232,4751,121,067
Gisborne28.367.878.950,090269,787331,685
New Plymouth664.1913.01,239.71,736,1312,208,3042,362,239
Napier820.21,251.01,364.9857,6991,152,4371,246,173
Wanganui0.70.00.015700
Wellington1,922.11,880.91,794.6447,129633,012647,132
            Total North Island9,470.712,482.212,842.69,256,49312,863,65213,287,983
Nelson310.6674.0587.6643,958842,769933,612
Picton1.427.823.32,47085,58474,841
Westport0.45.31.22,78329,0578,430
Lyttelton1,119.51,585.92,012.1732,5961,480,6301,816,078
Timaru362.1416.4400.8222,542362,182240,436
Dunedin1,259.81,267.51,251.2454,655614,966714,250
Invercargill (Bluff)706.1637.1804.9670,702661,193630,411
            Total South Island3,759.94,614.05,081.12,729,7064,076,3814,418,058
            Total seaports13,230.517,096.217,923.911,986,19916,940,03317,706,041
Airports      
Auckland1,463.12,384.22,558.452,30173,91774,792
Whenuapai0.30.10.5471
Ohakea0.00.00.0020
Wellington160.7158.4200.43,6054,8914,217
Christchurch327.9499.7515.313,51013,70513,887
            Total airports1,952.13,042.33,274.669,42092,52292,898
Parcel post11.110.910.015610
            Total cargo loaded15,193.720,149.421,208.412,055,63517,032,56117,798,949

Overseas cargo loaded at New Zealand ports totalled 17,798.9 thousand tonnes, an increase of 4.5 percent from the 17,032.6 thousand tonnes recorded in the June 1994 year. The value rose to $21,208.4 million, an increase of 5.3 percent. Tauranga again loaded the most overseas cargo, 4,913.7 thousand tonnes, 27.6 percent of the total overseas cargo loaded, with a value of $2,785.4 million. Auckland loaded 2,123.4 thousand tonnes, under half the amount loaded at Tauranga but valued at $5,287.8 million.

Seaports loaded 17,706.0 thousand tonnes, 99.5 percent of all overseas cargo loaded in the June 1995 year. Just over half of all seaports showed increases in the amount of cargo loaded in the June 1995 year, noticeable exceptions being Taharoa and Whangarei which decreased 9.0 and 40.7 percent, respectively.

International airports handled 92.9 thousand tonnes, an increase of 0.4 percent from the June 1994 year. The value increased 7.6 percent, to $3,274.6 million. Auckland airport loaded the most cargo, handling 80.5 percent by weight, 74.8 thousand tonnes, and 78.1 percent of value, $2,558.4 million.

Table 25.38. OVERSEAS CARGO UNLOADED AT NZ PORTS

Year ended JuneValue (cif)Gross weight
199019941995199019941995
Seaports $(millions)  tonnes 
Whangarei821.0865.6901.83,473,1233,979,5964,088,741
Auckland6,727.58,705.29,730.71,908,5802,393,8292,660,405
Tauranga307.4351.1432.1686,8511,016,4951,159,823
Taharoa0.00.00.0000
Gisborne5.617.34.51,6941,8708,739
New Plymouth72.485.979.8172,799279,439237,275
Napier193.1329.6333.3220,864456,713424,131
Wanganui0.50.30.017860
Wellington1,554.61,192.91,342.6460,012498,297558,506
            Total North Island9,682.111,547.912,824.86,923,9408,626,3259,137,620
Nelson68.3132.7142.341,92656,34843,041
Picton0.00.00.501870
Westport0.00.20.00160
Lyttelton863.91,152.01,330.8493,074577,573699,961
Timaru142.3112.1165.182,09194,905112,485
Dunedin182.3208.8188.6137,125182,500180,777
Invercargill (Bluff)326.2275.5298.5795,549790,470799,241
            Total South Island1,583.01,881.32,125.81,549,7651,701,8301,835,575
            Total seaports11,265.113,428.914,950.68,473,70510,328,15310,973,195
Auckland2,929.74,028.24,574.753,17165,17879,941
Whenuapai0.40.00.0300
Ohakea0.068.30.00320
Wellington370.8160.7180.06,0445,4695,202
Christchurch239.5425.8472.85,4678,1218,490
            Total airports3,540.54,683.15,227.564,68578,80193,632
Parcel post58.676.469.1315782472
            Total cargo unloaded14,864.218,188.420,247.28,538,70510,407,73611,067,299

1995 OVERSEAS CARGO - LOADED
By weight (thousand tonnes) and value (fob $million)

1995 OVERSEAS CARGO - UNLOADED
By weight (thousand tonnes) and value (cif $million)

Overseas cargo unloaded totalled 11,067.3 thousand tonnes with a value of $20,247.2 million. Tonnage increased 6.3 percent while value increased 11.3 percent. Whangarei unloaded 4,088.7 thousand tonnes, valued at $901.8 million, while Auckland unloaded 2,660.4 thousand tonnes valued at $9,730.7 million.

Seaports unloaded 10,973.2 thousand tonnes, or 99.1 percent of all overseas cargo unloaded. North Island ports unloaded 9,137.6 thousand tonnes, with South Island ports unloading 1,835.6 thousand tonnes.

New Zealand airports unloaded 93.6 thousand tonnes, valued at $5,227.5 million, increases of 18.8 and 11.6 percent, respectively. Auckland was the busiest airport, unloading overseas cargo worth $4,574.7 million but weighing only 79.9 thousand tonnes.

Coastal shipping

Coastal cargo statistics record the number of arrivals and departures made by New Zealand vessels to load cargo destined for another New Zealand port and unload cargo from a New Zealand port. Statistics include the gross registered tonnage (weight of the ship excluding cargo), gross tonnes (weight of the cargo carried), number of arrivals and departures.

In the June 1995 year 42,132.8 thousand tonnes of cargo was handled by New Zealand ports. Coastal cargo was 31.5 percent of that total, coastal cargo loaded being 6,440.2 thousand tonnes and cargo unloaded being 6,826.3 thousand tonnes. Vessels made 16,482 visits to New Zealand ports in the June 1995 year, an increase of 11.2 percent. Ships carrying coastal cargo made 10,175 of those visits. The busiest ports were Wellington at 4,197 visits by vessels carrying coastal cargo, followed by Picton with 2,997 visits.

Whangarei handled the most coastal cargo, in the June 1995 year, loading 2,772.3 thousand tonnes and unloading 757.5 thousand tonnes. Port Taranaki was the second largest port loading coastal cargo, at 1,340.7 thousand tonnes, while Lyttelton unloaded the second largest amount of coastal cargo at 930.2 thousand tonnes.

Petroleum products was the largest commodity of coastal cargo loaded and unloaded at New Zealand ports, 3,696.0 thousand tonnes was loaded and 3,890.8 thousand tonnes was unloaded. Whangarei and Port Taranaki loaded 94.9 percent of petroleum products, between them. The second largest single commodity handled at New Zealand ports was cement, of which 685.0 thousand tonnes was loaded while 774.9 thousand tonnes was unloaded. Westport loaded 53.5 percent of cement and Auckland unloaded 43.7 percent.

Table 25.39. COASTAL CARGO LOADED AND UNLOADED AT SEAPORTS, 1995*

SeaportMotor vehiclesContainer goodsPetroleum productsCementCoal and cokeSand and shingleGrainOther goodsTotal

* Year ended June

     Gross tonnes    
Loaded         
Whangarei-159,2792,286,781318,2657,951---2,772,276
Auckland24,646-116,467--5,305-14,859161,277
Tauranga-831-----5,3346,166
Gisbome-------- 
Port Taranaki-90,2391,221,602---28,8481,340,689 
Napier-568-----568 
Wanganui-------694694
Wellington279,43427,246----549,863856,542 
            Total, North Island304,080278,1633,624,850318,2657,9515,305-599,5985,138,212
Nelson8401,37664,942460---12,56180,179
Picton268,48877,995----263,382609,865 
Westport-59-366,28014,600--8,338389,278
Greymouth----42,468--142,469
Lyttelton6,6101,2155,239----129,231142,295
Timaru-881----28,4947429,450
Otago---------
Invercargill (Bluff)54100614-351377-3,0684,564
Chatham Islands1242,526306----9473,903
            Total, South Island276,11684,15371,101366,74057,41937728,494417,6021,302,001
            Total, New Zealand580,196362,3163,695,951685,00565,3705,68228,4941,017,1996,440,213
Whangarei-57,959679,1869,38710,966---757,498
Auckland24,142-240,540338,9887,385136,37913,51827,014787,966
Tauranga-11,635525,86074,094---55,438667,027
Gisborne--50,0113,195320---53,526
Port Taranaki-7,516132,61628,33718,951--4,146191,565
Napier--270,05434,440----304,494
Wanganui---9,750-30021,3622,21733,629
Wellington276,21879,053500,35069,786--687383,3501,309,444
            Total, North Island300,360156,1632,398,617567,97737,622136,67935,567472,1644,105,148
Nelson9962,139302,71615,545---43,527364,923
Picton263,74625,359-39,972---365,947695,024
Westport--58331,347----31,930
Greymouth-----66  
Lyttelton14,18262,999598,67351,55517,075--185,843930,327
Timaru-7,266161,820---70822,288192,082
Otago--211,22968,5023,050---282,781
Invercargill (Bluff)46-217,185----3,318220,549
Chatham Islands142,998----5483,560 
            Total, South Island278,984100,7611,492,206206,92120,125-708621,4772,721,182
            Total, New Zealand579,344256,9233,890,823774,89857,747136,67936,2751,093,6416,826,330

25.6 Overseas trade indexes

The overseas trade indexes measure changes in the levels of prices and volumes 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 Statistics New Zealand's 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’ (cif) values, while export indexes are calculated using ‘free on board’ (fob) values (see glossary).

Import and export price indexes

Table 25.40 provides a summary of the Import Price Index, and 25.41 of the Export Price Index.

Table 25.4. IMPORT PRICE INDEXES*

 Non-food manufactured goods
 Food and beveragesPetroleum and petroleum productsNon-fuel crude materialsPlastics and plastic articlesTextile yarn, fabrics related productsIron and steel†Non-electrical machineryElectrical machinery and apparatusTransport-equipmentTotal‡Total imports‡

*Base: year ended June 1989 (=1000).

Excludes manufactured articles of iron and steel.

Includes commodities not listed.

June year           
19879871223913787996736100812281026990999
198890510998788419607049681030994937941
198910001000100010001000100010001000100010001000
19901052126910148331025105210421006102710171034
19911038157010328581046999988988106410041044
19921078139210497981100107010561052122610651086
19931098146610278041100102711051107138311111129
199410541171960737102494910701114145010901087
19951040P1175P991P788P1026P933P1053P1037P1472P1075P1076P
Quarterly           
1993 Mar1135141710278221145104611001148141211251139
Jun10781456982780107099511091095144311121124
Sep10631299974765104295710801155146611181118
Dec10471217943743100694410671117144910801082
1994 Mar1041110095772198995010551127143810801071
Jun10641087965719105694210771065144010791075
Sep10601220971725103792710451069149210761080
Dec105511441002785105193710521037148710781078
1995 Mar103311711018811102592511051020143110831083
Jun1003P1168P962P846P1002P945P1025P1020P1471P10681065P

Table 25.41. EXPORT PRICE INDEXES*

 All pastoral and dairy productsTotalFish and fish preparationsFood and beveragesForestry productsNon-fuel crude materialsNon-food manufactured goodsTotal exports†
Dairy productsMeat, wool and by-productsAluminiumTotal†
MeatWoolTotal†

*Base: year ended June 1989 (=1000).

Includes commodities not listed.

June year            
1988741874916936901962846888978812868888
1989100010001000100010001000100010001000100010001000
1990116411899491098109910331130102910278649881064
1991103911936979759951055107710008488569591004
1992110812246399821037121011569958347219461031
199312811309675105411231330125211449557269711115
19941154123563610071052P12401157P127710056729321067
19951055P1083P778P992P1015P1265P1085P1219P1041P865P1000P1061
Quarterly            
1993 Mar1300132767010721146P13161270P11409597359881133P
    Jun1275131263210461108P13231246P130910216779601121P
    Sep1228132460410341083P12801208P142410706809391109P
    Dec117912396229921047P12161158P12509736469251058P
1994 Mar1143122563110021053P11991153P12399856509321059P
    Jun1081118267810031033P12661125P121110047129321048
    Sep1040116771510131021P12861107P121410057599701057
    Dec1038110879410241029P12641094P1216104684810321079
1995 Mar105510817849941013P12651077P1236106097710681080
    Jun1093P1019P820P953P1002P1245P1069P1231P1051P877P948P1036

Overseas terms of trade index

The Overseas Terms of Trade Index measures the changing volume of imports that can be funded by a unit volume of New Zealand's exports. The index is calculated as the ratio of the total export price index to the total import price index.

An increase in the terms of trade index indicates that the real purchasing power of exports has increased, while a decrease indicates a drop in the purchasing power of exports.

The Overseas Terms of Trade Index is expressed on a base of the average of the 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 25.42. EXPORT AND IMPORT PRICES AND OVERSEAS TERMS OF TRADE INDEXES

 Export price index*Percentage change from preceding periodImport price index*Percentage change from preceding periodTerms of trade index†Percentage change from preceding period

*Base: year ended June 1989 (=1000).

Base: average of ten years ended June 1989 (=1000).

June year      
19888882.8941-5.810749.1
1989100012.610006.211396.0
199010646.410343.411722.9
19911004-5.610041.01095-6.6
199210312.710864.01081-1.3
19931115P8.1P11294.01125P4.1
19941067P-4.3P1087-3.71118P-0.6P
19951061P-0.6P1076P-1.01123P0.4P
Quarterly      
1993 Mar1133P2.4P11391.11133P1.4
Jun1121P-1.1P1124-1.31136P0.3
Sep1109P-1.1P1118-0.51130P-0.5
Dec1058P-4.6P1082-3.21113P-1.5
1994 Mar1059P-0.1P1071-1.01126P1.2
Jun1048P-1.0P10750.41110P-1.4P
Sep1057P0.9P10800.51114P0.4P
Dec1079P2.1P1078-0.21140P2.3P
1995 Mar1080P0.1P10830.51136P-0.4P
Jun1036P-4.1P1065P-1.7P1108P-2.5P

Import and export volume indexes

Table 25.43 provides a summary of the import volume indexes, and table 25.44 of the export volume indexes. These indexes are expressed on a base of the year ended June 1989 (= 1000). In tables 25.43 and 25.44 the quarterly index numbers are given as annual equivalents.

IMPORT VOLUME INDEX

Table 25.43. IMPORT VOLUME INDEXES*

 Non-food manufactured goods
 Food and beveragesPetroleum and petroleum productsNon-fuel crude materialsPlastics and plastic articlesTextile yarn, fabrics related productsIron and steel†Non-electrical machineryElectrical machinery and apparatusTransport-equipmentTotal†Total imports†

*Base: year ended June 1989 (=1000).

† Includes commodities not listed.

June year           
1987844936943113211791880941723942943945
198893298610671093101220891015824904986987
198910001000100010001000100010001000100010001000
199010911194116012971074123811121164160612411221
1991109012431045121997594611711405119911941175
19921090119811701414101591910751103104611441142
199312261226118416601099116712151142103012381230
19941406139113241891116514591479121910541361 
19951527P1457P1329P2016P1190P1571P1673P1567P1494P1579P 
Quarterly           
1993 Mar11001318125215799941180110691472610771098
Jun1184130512181695113211731198114288811881196
Sep13961419140118841193159315201196126614331427
Dec16191105133919641164134515671325100014031393
1994 Mar1286156013261850110314691318102390412271255
Jun13211481123218671201143015101331104413721369
Sep15751426144421651277148718451501115516001578
Dec17361512128322991245163817411679200217901747
1995 Mar13981380132418341115165314151507120614551439
Jun1426P1510P1285P1778P1119P1510P1693P1598P1623P1594P1565P

EXPORT VOLUME INDEX

Table 25.44. EXPORT VOLUME INDEXES*

 All pastoral and dairy productsTotalFish and fish preparationsFood and beveragesForestry productsNon-fuel crude materialsNon-food manufactured goodsTotal exports†
Dairy productsMeat, wool and by-productsAluminiumTotal†
MeatWoolTotal†

*Base: year ended June 1989 (=1000).

† Includes commodities not listed.

‡ Excludes live animals and tobacco, from the September 1989 quarter onwards.

§Series was named industry group—forestry, prior to the revision effective from the September 1989 quarter.

June year            
19871037100710761018992782979714949815923948
19881034948985928958789982879908898928945
1989100010001000100010001000100010001000100010001000
199095080677279286886791310878449731043942
19911037899769856960100293612761148102410331033
19921147101795296610391151112314751064107712971152
19931112968751875960P10621072P16341010P101114161136
199413109699309201053P11881171P15561049108216101246
19951396P1010P901P9341096P1157P1240P1725P1086P1080P1747P1322
Quarterly            
1993 Mar1250114582410201050P925112415761071103712821133P
Jun1036123272610571150P9501248P18071128110315141288P
Sep982820697755852P1204998P1434868108315521103P
Dec15796351027698927P14481081P1476P974113516531191P
1994 Mar13221198101011091139P9861196P1591P1169102915081264P
Jun1359122398711181295P11131410P17211185108017251425
Sep1187777787758909P11781061P17491011109517431224
Dec1712772982773982P12181142P17051034105518051277
1995 Mar14381194114811321196P10191257P15761190108216431336
Jun1246P1297P686P1073P1298P1212P1497P1841P1111P1091P1767P1446

Contributors

  • 25.1 New Zealand Trade Development Board; New Zealand Customs; Statistics New Zealand.

  • 25.1-25.6 Statistics New Zealand.

Special articles

NZ Customs; Tradenz; Statistics New Zealand.

Further information

Tariff of New Zealand. Customs Department.

Export News. New Zealand Trade Development Board (monthly).

Key Statistics. Statistics New Zealand (monthly).

New Zealand Standard Classifications. Statistics New Zealand.

    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. Statistics New Zealand (annual).

Report of the Customs Department (Parl paper B24).

Report of Tradenz (Parl paper G45).

TERMS OF TRADE INDEX
Based on ratio of export prices to import prices

Chapter 26. Prices

E-type Jaguar owner appears unconcerned by petrol prices.

Prices of a large number of goods and services are collected periodically by Statistics New Zealand 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 25.4, External trade indexes. Farming indexes can be found in chapter 18, 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.

26.1 Consumer prices

The Consumers Price Index (CPI) measures changes in the level of prices of goods and services purchased by private New Zealand households. It is the best available measure of the effect of changes in retail prices on the average household budget. Statistics New Zealand endeavours to keep the basket of goods and services for which prices are regularly surveyed, constant in quantity and quality over time, so that only ‘pure’ price movements are recorded. The CPI is possibly New Zealand's best known statistic and is used to derive measures of inflation.

Index regimen. Since 1914, when the CPI was first calculated, spending patterns have changed considerably as new goods and services appear on the market and as lifestyles and consumer tastes alter. The CPI is revised regularly (approximately every five years) to keep up to date with changing expenditure patterns. The revisions change the composition of the basket of commodities which are price surveyed, and adjust the relative emphasis given to each commodity.

The CPI was last revised in 1993. The regimen is now divided into nine groups, 20 subgroups and approximately 319 published regimen items (excluding fresh fruit and vegetables) reflecting the range of goods and services available in New Zealand. The latest revision changed the CPI in a number of areas:

  • ‘Credit services’ was introduced as a new subgroup of the CPI. It includes mortgage interest (previously included in the home ownership subgroup), hire purchase and credit costs.

  • ‘Home ownership’ now includes the price of purchasing or building new dwellings, upkeep of existing dwellings and residential sections.

  • The treatment of fresh fruit and vegetables was changed to reflect the longer availability of fruit and vegetables once considered seasonal.

Commodity weighting. The commodity weighting pattern incorporated into the CPI is based on the average expenditures of the population as measured by Statistics New Zealand's Household Economic Survey (HES). This survey covers a large, statistically-representative sample of private households and provides comprehensive details of all their expenditures. This sample provides the weights used in the CPI for the nine groups, 20 subgroups and items. In some areas the HES data does not provide adequate information, so surveys of businesses and government organisations are also used to supplement the HES. Table 26.1 gives the weights for each group.

Table 26.1. COMMODITY GROUP WEIGHTING

GroupWeight in the CPI

Source: Statistics New Zealand.

 percent
Food17.76
Housing19.50
Household operation14.92
Apparel4.50
Transportation14.58
Tobacco products and alcoholic drinks8.46
Personal and health care6.27
Recreation and education7.50
Credit services6.50

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.

  • Direct tax and commodities which represent savings and investment.

  • 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, eg art work, catering charges for private functions, and pets.

EXPENDITURE WEIGHTS
By CPI group

Price surveys. Retail outlets and organisations are selected for price surveys for the CPI so that they correspond as closely as possible to the buying patterns of private households. The sample of outlets is updated to reflect changes in market trends and household buying behaviour. The prices for a wide range of commodities are collected, where possible, monthly for food and quarterly for other commodities at each outlet. These are compared against the previous periods results and price changes are recorded. Prices are surveyed by specially trained field staff in retail establishments in 15 urban areas throughout New Zealand.

In addition to pricing at outlets, Statistics New Zealand conducts a number of postal surveys. These surveys are continually being developed and adapted to meet the changing variety of goods and services available to New Zealanders. The postal surveys cover most items that are heavily weighted in the index including mortgage interest rates, rentals, sports club subscriptions, vehicle licensing and insurance, used car prices and charges for contractors such as electricians and plumbers.

Geographic coverage. Prices are surveyed in 15 urban areas: Whangarei, Auckland, Hamilton, Tauranga, Rotorua, Napier-Hastings, New Plymouth, Wanganui, Palmerston North, Wellington, Nelson, Christchurch, Timaru, Dunedin and Invercargill. Indexes are compiled for all regions and a number of combinations of regions. These indexes do not show if it is more expensive to live in one city than another, or in the North Island or the South Island. The indexes, however, can be used to show where prices of goods and services are rising or falling.

Uses of the CPI. The CPI is used for a variety of purposes including cost of living adjustments, targeted benefits, legal contracts, rental adjustments and other political, commercial and personal uses.

In addition, the Reserve Bank adjusts the CPI to assist in monetary policy decision making. The Reserve Bank excludes from the CPI items such as mortgage interest rates, significant government charges, changes in indirect taxes and some other significant price movements, to arrive at an estimate of “underlying inflation”.

Over the last few quarters the CPI and “underlying inflation” have received more publicity than in the previous four years. The CPI rose by 4.6 percent in the year to June 1995, while “underlying inflation” rose by 2.2 percent—which is higher than the 0–2 percent target range for “underlying inflation”.

Further development of the CPI—the Superannuitants Price Index. Statistics New Zealand has recently published for the first time a Superannuitants Price Index (SPI) for all superannuitant households (SPI). This index measures changes in the level of prices of goods and services purchased by New Zealand superannuitant households. The quarterly SPI is produced in recognition of the need for more regular and specific information on the spending patterns of superannuitant households. Two sub-indexes are also published, the SPI for All Households in Rented Accommodation, and the SPI for All Households Living in their Own Accommodation. At this stage, this index is published as a research index.

The SPI for All Households for the June 1995 quarter was 2.9 percent higher than in the June 1994 quarter. This compares with a rise in the CPI of 4.6 percent over the same period. Increases in housing and food costs were the major contributors to the annual increase in SPI, while significant increases in credit services and housing contributed most to the annual increase in the CPI.

The SPI for Households Living in their Own Accommodation rose by 2.8 percent between the June 1994 and June 1995 quarters. Over the same period the SPI for Households Living in Rented Accommodation rose by 3.4 percent.

When interpreting the results of the SPI several factors need to be taken into consideration. The SPI is a price index, it measures changes in the level of prices of a fixed basket of goods and services purchased by superannuitant households. Price indexes are used to measure the change in the level of these prices and not the actual level of the prices themselves. In the December 1993 quarter, the base period of the SPI and the CPI, both have index numbers of 1000 as a starting point against which to measure price change. However, this does not mean that the price level of the two are equal. This needs to be remembered when comparing the movement of the SPI with the CPI. A higher or lower index number for the SPI relative to the CPI does not mean that the prices paid by superannuitant households are higher or lower than the prices paid by all private households. It means that the rate of price change measured by the SPI is different from that of the CPI.

Calculation of the CPI and SPI both involve the price surveying of the same range of goods and services from which the same prices are obtained. Therefore, the movement of the SPI and the CPI will vary due to the differing weights assigned to each item and the weights assigned to each centre priced. This reflects the differing expenditure patterns and geographical population distribution of superannuitant households compared to all private households.

Table 26.2. SUPERANNUITANTS PRICE INDEX (SPI)*

 Superannuitants Price IndexConsumers Price Index All Groups
All Superannuitant HouseholdsHouseholds
in Rented Accommodationin their Own Accommodation

*Base: December 1993 quarter (=1000)

Quarterly    
1993—December1000100010001000
1994—March99810049971000
June1002101710001004
September1012103010101016
December1020103610181028
1995—March1023104410211040
June1031105210281050

Analysis of price movements

The following section discusses the price changes in New Zealand as measured by the CPI over the year to June 1995.

To compare prices over time the most popular quantity bought by the New Zealand consumer is selected as a standard. Prices of these typical sizes are collected and if the quantity is not available other sizes are scaled to calculate an equivalent price. Significant consumer cost benefits can sometimes result from the purchase of larger quantities (eg special prices for two products). Therefore, price movements of individual items can sometimes result solely or partly from changes to the quantities of a good that consumers typically buy and may not only reflect the price movements of quantities stated.

In the late 1970s the CPI recorded large annual increases. These high increases continued through most of the 1980s (except in 1984 when the CPI increased by only 4 percent). In the late 1980s the annual increase in the CPI fell to below 5 percent marking the beginning of single digit increases. These lower increases have continued through the 1990s. In the year to June 1995, the CPI increased by 4.0 percent over the year. This follows two consecutive June years in which the CPI rose by just over 1 percent.

CPI AND RESERVE BANK “UNDERLYING INFLATION”

FOOD
Change from previous quarter

HOUSING
Change from previous quarter

Table 26.3. CONSUMERS PRICE INDEX—ALL URBAN AREAS COMBINED BY GROUP

Year ended JuneAll groupsFood HousingHousehold operationsApparelTransportationTobacco and alcoholic drinksPersonal and health careRecreation and educationCredit services 

Source: Statistics New Zealand.

       
1984505529..564548607396......
1985563588..606588710451......
1986640657..690664781504......
1987747757..814773864637......
1988824818..867855920709......
1989862865..892890906771......
19909259628909409259288627998701245
19919659939409629629639048539301297
19929769869419749799739719499601147
1993988100295298798999598610109811029
19941001100010081000994996100110031006992
1995103410081083100498610041021101710371148
Quarter—          
1992          
Mar9789849379759789779769989591117
Jun98098394198098898397610119671089
Sep98499994398398698697710179741049
Dec986100294798598899398610239791025
1993          
Mar987101095098698399699010119751014
Jun993997968993100010059929919951028
Sep99810049909999949999979989961023
Dec1000100010001000100010001000100010001000
1994          
Mar100010031011999989989100110051010984
Jun100499310301001993997100710091019960
Sep10169971061100398710031009101310221012
Dec102810041076100399210091016101410321092
1995          
Mar104010111093100398010011023101910431215
Jun105010181102100598710051035102210501273

Food. The all food group increased by 2.5 percent over the year. The prices of fruit and vegetables increased by 19.7 percent over the year to June 1995. This rise was partially offset by a fall in the meat, fish and poultry subgroup.

The graph shows that the prices of fruit and vegetables (fresh in particular) fluctuate depending on the time of the year. The prices of fresh fruit and vegetables are given special treatment to reduce the influence of normal seasonal price fluctuations. This treatment does not completely eliminate the effects of seasonal fluctuations if shifts in seasonal patterns occur.

Table 26.4 shows food prices in each of the June months for the last five years. These weighted average prices of selected items are used in the calculation of the CPI 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 as the quantity and price of any good will differ from shop to shop and over time.

Table 26.4. RETAIL PRICES OF SELECTED FOOD ITEMS

ItemJune month
Unit19911992199319941995

Source: Statistics New Zealand.

    $  
Apples, eatingkg2.172.021.971.131.21
Bananaskg2.592.312.131.461.65
Orangeskg3.353.243.282.702.46
Cabbageskg0.651.110.621.181.30
Carrotskg1.081.071.010.981.22
Potatoeskg0.810.760.770.661.05
Peaches, canned452 g1.931.901.881.801.75
Peas, frozenkg2.302.102.042.021.91
Beef, blade steakkg9.759.689.889.498.51
    porterhousekg14.3814.7215.5615.1714.58
    rump steakkg12.2612.3111.6812.0911.38
    prime rib, rolledkg8.018.118.558.377.87
        mincekg6.996.807.266.805.87
Hogget, forequarter chopskg6.126.247.477.456.58
Pork loin, chopskg10.9910.6611.2010.3910.06
Bacon, middle rasherskg17.3616.9516.6814.6514.43
Sausages, beefkg4.104.154.304.104.06
Salmon, canned210 g2.942.423.372.482.14
Chicken, frozen no 8each7.977.637.246.946.83
Milk, plastic bottle211.191.191.211.182.37
Butter500 g1.911.851.871.881.86
Cheese, cheddarkg8.428.007.986.916.58
Bread, white slicedeach1.771.821.791.551.52
Cake, light fruit450 g4.043.974.023.984.06
Breakfast—flake biscuitskg4.214.044.103.813.87
Flour, white1.5 kg1.891.821.781.501.51
Rice, white long grain500 g0.860.840.811.371.34
Honey, creamed500 g2.412.262.292.272.28
Coffee, instant100 g3.353.213.093.014.88
Tea bags100 g2.422.312.292.582.55
Margarine500 g2.071.861.821.751.79
Tomato sauce, canned600 g2.272.232.242.222.22
Spaghetti, canned440 g1.451.401.401.281.35
Sugar, white1.5 kg1.961.951.961.881.74
Lemonade1.511.801.751.721.511.45
Ice-cream, vanilla213.513.253.243.073.00
Chocolate, block275 g3.553.353.393.293.30
Hamburgereach2.362.522.382.402.41
Meat pieeach1.961.641.631.952.00

Housing. The housing group includes dwelling rents, costs of purchasing and constructing a new home, upkeep costs of a home, insurance and local authority rates. In the June 1995 year the housing group rose by 7 percent with increases in both dwelling rentals and home ownership costs.

Household operation. The household operation group of the CPI includes energy, household appliances, furnishings, supplies and services. This year the household operation group rose by 0.4 percent.

Apparel. Prices of clothing fell slightly in the 1995 year, reflecting a slight fall in the price of women's, boys' and girls' clothing and a small rise in the price of men's and infants' clothing.

Transportation. The cost of running and maintaining a motor vehicle decreased, with falls in vehicle insurance fees and registration and warrant of fitness fees. The prices of new cars decreased while the prices of used cars increased.

Domestic airfares and rental car hire prices decreased while international airfares, taxi and shuttle hire charges, suburban bus and rail fares, and long distance bus, rail and ferry fares rose. Although the CPI does not show if it is cheaper to travel by public or private transport, it does show the difference in the price movements.

Tobacco products and alcoholic drinks. The price of tobacco products and alcoholic drinks rose by 2.8 percent during the year with the prices of cigarettes, tobacco, wine, beer, spirits and liqueurs rising. Taxes on tobacco and alcohol continue to be adjusted on a six-monthly basis, in line with the CPI. Tobacco tax is adjusted on 1 December and 1 June, while alcohol tax is adjusted on 1 September and 1 March.

Personal and health care. Prices in the personal and health care group overall rose slightly over the year. Prices within the personal goods and services subgroup rose by 0.4 percent (this subgroup includes hairdressing, cosmetics, personal accessories and services etc.). Health care increased by 2.3 percent due to increases in all fees charged in this subgroup, with the exception of medical insurance fees which fell.

APPAREL
Change from previous quarter

TOBACCO & ALCOHOL
Change from previous June quarter

TRANSPORT
Change from previous June quarter

Certified scales in market garden ensure accurate weighing.

Table 26.5. CONSUMERS PRICE INDEX SUBGROUPS—ALL URBAN AREAS COMBINED

QuarterFruit and vegetablesMeat, fish and poultryGrocery foods, soft drinks and confectioneryRestaurant meals and ready-to-eat foodDwelling rentalsHome ownershipEnergyHousehold appliances and furnishingsHousehold supplies and servicesClothingFootwear
1990 Mar1077950951934901889823991959913974
Jun1138954972947916921828989964939981
Sep1158965985957931935833986971935975
Dec1143965982964942936854990978956981
1991 Mar1113960988975946944875996999961981
Jun1069952994980949945882994983973993
Sep11139509949829619418859801007967993
Dec1115939976984947938898982992973998
1992 Mar1069939983986948934916982997976985
Jun10509389849909539389199919999861001
Sep112395899199495593892499210029821001
Dec108999099099595694392999310049831008
1993 Mar11609909929939649459369941003981990
Jun100298899799797596697310029959971012
Sep1046100299610019899899931004999993994
Dec10001000100010001000100010001000100010001000
1994 Mar106298299710021029100610131000990990982
Jun101896699210041086101410341004981992998
Sep102995899810091131104110461003982986991
Dec10719601000101411351060104910079769871015
1995 Mar1145933100410191157107510531001978978992
Jun121992110011024117110821078996975984999
QuarterPublic transportPrivate transportTobacco productsAlcoholic drinksPersonal goods and servicesHealthcareStationery, books, magazines and newspapersLeisure and recreationEducation and childcareCredit services

Source: Statistics New Zealand.

1990 Mar9069277589278957218459306721257
Jun9349267789379087328559328721276
Sep9579257879489177458699398741299
Dec9829718079459317338859498751305
1991 Mar9979538169589407948919639031308
Jun10199348379599468359179669171276
Sep10269389299739488439279709181220
Dec10129599739779458489569709201162
1992 Mar103596197497694610489419749231117
Jun104296497697695510659659828951089
Sep100698198397596710669829858951049
Dec98199898598697610689869928981025
1993 Mar966100599299098010429639939081014
Jun99110099949929859989889989961028
Sep992999100099699510029969969971023
Dec1000100010001000100010001000100010001000
1994 Mar9709929991002999101196510021093984
Jun101499399910101001101699510041094960
Sep10259991000101310001025997100910951012
Dec103610041003102199710301015101810951092
1995 Mar10129981013102710031034996102711471215
Jun105599510181043100510391020103011511273

HOUSEHOLD OPERATION
Change from previous quarter

PERSONAL & HEALTH CARE
Annual change

Recreation and education. The price of recreation and education services rose by 3 percent over the year. The education and childcare subgroup rose by 5.2 percent. This group includes the cost of education and many leisure-time activities including reading, sports, toys and musical instruments.

Credit services. Credit services includes mortgage services, with a far lesser weighting given to credit and store cards and hire purchase. In the June 1994 year credit services fell by 6.6 percent, reflecting a fall in mortgage interest rates in each of the four quarters in the year. However, credit services has since risen as lending institutions have raised their interest rates on residential mortgages, and shows an increase of 32.6 percent for the June 1995 year.

Table 26.6. RETAIL PRICES OF SELECTED ITEMS

CommodityJune quarter
19911992199319941995

Source: Statistics New Zealand.

   $  
Paint, white, 4170.8769.6563.6860.0859.18
Concrete blocks, per 100262.38265.98272.77274.72279.09
Gib-type board, per sheet17.1617.6717.4518.0817.87
Spouting/guttering, per 3 m15.7315.6115.7316.9418.47
Electric range1,312.871,313.501,325.281,361.471,340.84
Plug box14.2514.5016.0415.4815.80
Television set, colour1,224.881,145.151,044.05992.99887.43
Electric hand drill, cordless169.20174.30170.53231.96222.46
Carpet, 100 percent wool136.04125.33122.19111.50116.38
Sheet, single31.2930.1429.9923.1722.41
Household broom19.6118.2218.3418.8017.91
Garden hose, 20 m26.4323.3821.7421.7121.32
Bleach, 1.512.762.602.622.602.58
Detergent, dishwashing, 900 ml3.233.073.102.822.97
Soap powder, 1 kg3.983.944.053.904.04
Cling food wrap, 15 m1.591.531.471.471.55
Electric light bulb, 100 watt1.141.101.091.031.05
Batteries, D size, twin pack2.972.852.892.832.94
Postage, letter, standard post0.400.450.450.450.45
Public broadcasting fee110.00110.00110.00110.00110.00
Veterinary services, cat68.9468.9068.1666.8268.28
Sweatshirt, men's33.2530.7331.2836.5237.04
T-shirt, men's14.2013.5914.4114.2513.65
Trackpants, men's64.7964.5561.3138.5536.68
Socks, men's7.497.777.488.178.19
Slip, half25.6826.5123.7023.9822.97
Pantyhose, 15 denier4.284.474.404.254.26
Jeans, boy's48.2749.2146.9535.9933.93
Shorts, boy's15.3116.0716.2215.0815.22
Wool, 50 g4.664.594.544.064.01
School shoes68.8869.6272.6880.3177.80
Warrant of fitness13.2213.8114.4419.1820.62
Petrol, premium9.749.9010.169.359.59
Cigarettes, filter4.505.265.376.536.63
Whisky, 1125 ml41.8042.5841.7740.2139.72
Toilet soap0.770.710.720.630.65
Razor blades, cartridge, five pack5.035.305.725.615.72
Tissues, facial2.662.612.662.552.65
Toilet paper, four rolls2.952.982.822.812.82
Hairdressing, men's13.5213.8913.8713.3114.12
Hairdressing, women's29.9430.3130.1431.5133.65
Soluble aspirin, packet of 242.302.372.382.302.35
Envelopes, packet of 201.471.481.441.471.43
Newspaper0.510.560.570.580.58
Developing and printing film, 24 colour prints17.1216.6116.9617.8618.04
Audio cassette, from top 1020.4720.7821.1820.8320.92
Tennis balls, can of four19.3019.5219.8619.4918.78
Rugby club subscription, annual71.0473.7975.0270.2271.70
Tennis club subscription, annual156.26159.38164.51169.28150.49

North and South Islands

Over the year to June 1995, prices rose by 3.2 percent in the North Island mainly due to rises in credit services (up 31.8 percent), housing (up 7.0 percent), recreation and education (up 3.0 percent), tobacco products and alcoholic drinks (up 2.9 percent) and food (up 2.5 percent). The apparel group fell by 1.0 percent.

Over this period, prices rose by 4.5 percent in the South Island. While credit services (up 34.9 percent), housing (up 7.1 percent), recreation and education (up 3.2 percent), tobacco products and alcoholic drinks (up 2.4 percent) and food (up 2.4 percent) groups moved similarly to the North Island, the apparel group increased by 0.7 percent.

CREDIT SERVICES
Change from previous quarter

CPI - PERCENTAGE CHANGE
Annual comparison of groups, 1995

Table 26.7. CONSUMERS PRICE INDEX—REGIONAL MOVEMENTS, YEAR TO 30 JUNE 1995

GroupAll centresNorth IslandSouth Island

Source: Statistics New Zealand.

Food2.52.52.4
Housing7.07.07.1
Household operation0.40.6-0.3
Apparel-0.6-1.00.7
Transportation0.81.00.3
Tobacco and alcohol drinks2.82.92.4
Personal and health care1.31.31.4
Recreation and education3.03.03.2
Credit services32.631.834.9
All groups4.63.24.5

International comparisons

The following section discusses price movements in New Zealand as measured by the CPI over the year to June 1995, compared to price movements in the CPI in some other countries over the same period.

In the early 1980s New Zealand, like many other countries, experienced a rapid increase in prices of consumer goods and services. By the end of 1982 many countries had experienced some reprieve from rising prices, but New Zealanders continued to suffer large price increases until the late 1980s. It is a different situation in the 1990s, with New Zealand showing annual increases below 5 percent since 1991.

The annual percentage change in the CPI (excluding housing and credit services), for the seven countries tabled below, provides a comparison of the movement in consumer prices in the 1995 year. Over this period, the CPI increased by more than 2 percent in Australia, Canada, the United Kingdom, and the United States of America. In West Germany and New Zealand the CPI increased at a slower rate, while in Japan the CPI fell over the year.

In the 1995 year, the housing index showed an increase in Australia, Canada, the United States of America, the United Kingdom, Japan and New Zealand. World coffee prices increased over the year contributing slightly towards a rise in food prices in many countries including New Zealand. Alcohol and tobacco prices increased in the United Kingdom, Australia, the United States of America, Canada and New Zealand. The United States of America and New Zealand recorded a significant increase in used car prices. Petrol prices rose in Canada, the United States of America and New Zealand, partly due to increases in the international price of crude oil.

Australia—Contributing significantly to the annual increase in consumer prices were mortgage interest charges, cigarettes and tobacco prices, hospital and medical services and motor vehicle prices, while significant price decreases were recorded for sports and photographic equipment and video and sound equipment.

Canada—Significant price increases over the year were recorded for petrol, new vehicles, vehicle insurance and the cost of mortgage interest, offset by price decreases for clothing, recreational equipment, gas and personal care supplies.

Japan—Overall, price increases over the year were recorded for medical care, housing and miscellaneous, while price decreases were recorded in food, education, transportation and communication, reading and recreation, furniture and household utensils, and clothes and footwear. Fuel, light and water prices showed no overall change over the year.

CONSUMERS PRICE INDEX
International comparison

United Kingdom—Overall increases in prices for the year to June 1995 were recorded for food and catering, alcohol and tobacco, housing and household expenditure, personal expenditure and travel and leisure.

United States of America—Over the year to June 1995, overall price increases were recorded for food and beverages, housing, transportation, medical care, entertainment and other goods and services. Apparel and upkeep recorded a general price fall.

Table 26.8. INTERNATIONAL COMPARISON OF QUARTERLY CONSUMERS PRICE INDEX

Excluding housing and credit services
QuarterNew ZealandAustraliaCanadaJapanWest GermanyUnited KingdomUnited States

Source: Statistics New Zealand.

1990 Mar917890893928890827880
Jun930905900941894850889
Sep937912910944896862902
Dec949939923960905879921
1991 Mar956939953965912885927
Jun957942962975919922933
Sep965951966973933931938
Dec968962962986938943946
1992 Mar978966966981950949950
Jun982966973994958966960
Sep988970977988960965966
Dec992977980992969972976
1993 Mar995986988991985975983
Jun9979899911000994995990
Sep9999959951006996998992
Dec1000100010001000100010001000
1994 Mar99910049941001101410041004
Jun100110119901005101910171011
Sep100410179961001102210161020
Dec100910229981006102310211024
1995 Mar101110331011998103310301031
Jun1017104510211002103910431042

Although the table shows direct comparisons between the movements in price levels experienced by domestic consumers in each country, the indexes do not show how expensive it is to live in one country compared with another.

26.2 Producers prices

Producers Price Index

The Producers Price Index (PPI), compiled by Statistics New Zealand, 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 Statistics New Zealand 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.

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 deflater 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.

Gunshot pub window-customer unhappy at $2 for a schooner?

Table 26.9. PRODUCERS PRICE INDEX—INPUTS*

Industry groupQuarter ended
Mar 1994Jun 1994Sep 1994Dec 1994Mar 1995Jun 1995

*Base: December quarter 1982 (=1000).

† Includes industry groups 5 to 13.

‡ Includes industry groups 1 to 21.

Source: Statistics New Zealand.

1 Agriculture174617511751175117201711
        Sheep and beef farming180118021801179617441714
        Dairy farming175617591763177117701768
        Horticulture farming166816661669167116461648
        Cropping and other farming164516431629162415981628
        All farming175617571756175517231713
        Agricultural contracting160215991604161016111611
2 Fishing and hunting140014191560155814941505
3 Forestry and logging188118281812181017991814
4 Mining and quarrying158415751587161015911596
5 Food, beverages and tobacco169616911640163416021573
        Primary food processing170516551606159315461502
        Other food processing156115821592160215961595
6 Textiles, apparel and leather147014871615162116571651
7 Wood and wood products228122962319227122602275
8 Paper, printing and publishing175017411750174817641800
9 Chemicals, petroleum and plastics125412201253124012551265
10 Non-metallic mineral products175917671773178117921798
11 Basic metals154815431606164416691663
12 Machinery and metal products180918211837184718501849
13 Other manufacturing163216221631163816291655
14 Electricity, gas and water183018351880181718411877
15 Construction178517911814182918441849
16 Trade, restaurants and hotels199719982007201320132028
        Wholesale and retail trade205020512060206920702085
        Hotels, restaurants, takeaways186518581874187118691887
17 Transport and storage172017091758176117621756
        Road transport150215051507150915131498
        Transport and storage other than road179118441856186018601858
18 Communication158515701576159516011603
19 Insurance and financing227322762281229022912298
20 Ownership of dwellings227022602256227822912303
21 Community and personal services191219021921192319251938
22 Central government184918431853185518551857
23 Local government177217761782179117901803
24 Private non-profit services199520012014201720172024
        All manufacturing groups†165016541667166616661664
        All market groups‡179818011814181618181819
        All industry180218061818182018211823

Table 26.1. PRODUCERS PRICE INDEX—OUTPUTS*

Industry groupQuarter ended
Mar 1994Jun 1994Sep 1994Dec 1994Mar 1995Jun 1995

*Base: December quarter 1982 (=1000).

† Includes industry groups 5 to 13.

‡ Includes industry groups 1 to 21.

Source: Statistics New Zealand.

1 Agriculture165316301653164816101567
2 Fishing and hunting190221242246216119932070
3 Forestry and logging427843364217412339814036
4 Mining and quarrying123012351248122812241220
5 Food, beverages and tobacco180217901770176417311714
        Primary food processing168816721615159715611530
        Other food processing194719431987200419751984
6 Textiles, apparel and leather150415391587159616391624
7 Wood and wood products219021802176214221442159
8 Paper, printing, and publishing177417871804182318521875
9 Chemicals, petroleum and plastics138513591367136913641379
10 Non-metallic mineral products171817241722172517361747
11 Basic metals144014741522158716681628
12 Machinery and metal products191219421950195419611963
13 Other manufacturing166116771678169417001718
14 Electricity, gas and water189519521951193819531992
15 Construction175417661783180718251834
16 Trade, restaurants and hotels179617991802184018491860
        Wholesale and retail trade174317471749179118001809
        Hotels, restaurants, takeaways199920002008202820432059
17 Transport and storage157015791569157615541564
        Road transport169116871687168616871675
        Transport and storage other than road149615101496150614761494
18 Communication150515051505149814921484
19 Insurance and financing241224452478248124822532
20 Ownership of dwellings281728492865286329473017
21 Community and personal services211921382161217121922205
All manufacturing groups†173117391745174917531751
All market groups‡186018711882189118921899

26.3 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.

Table 26.11. CAPITAL GOODS PRICE INDEX*†

Asset groupQuarter ended
Dec 1993Mar 1994Jun 1994Sep 1994Dec 1994Mar 1995Jun 1995

*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 buildings1117113311471188122712541261
Non-residential buildings1041104110451046106310781080
Other construction1062107110821084109110861088
Land improvements1112111611111105111211101113
Transport equipment1183118911921197119911981198
Plant, machinery, and equipment1118111611141116112011221121
All groups1105110711101113112111261126

Contributor

  • 26.1-26.3 Statistics New Zealand.

Further information

Key Statistics. Statistics New Zealand (monthly).

Report of the Consumers Price Index Advisory Committee (Parl paper G28a, 1988).

Chapter 27. Money and banking

Shredded banknotes make good garden mulch.

27.1 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 which 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 Amendment Act 1986 established a framework for the registration and supervision of banks. This act contained provisions enabling suitably qualified financial institutions to become ‘registered banks’. At the end of July 1994 there were 16 registered banks, four of which were the former trading banks. The remaining 12 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.

Bank registration and supervision. The Reserve Bank of New Zealand Act 1989 confers on the Reserve Bank the function of registration and supervision of banks for the purposes of:

  • Promoting the maintenance of a sound and efficient financial system.

  • Avoiding significant damage to the financial system that could result from the failure of a registered bank.

Accordingly, the bank supervision and registration framework operated by the Reserve Bank does not aim to protect depositors or individual banks. Instead the main focus is on ensuring that the banking system as a whole continues to operate effectively and efficiently, since any major disruption in the provision of financial services or any lack of efficiency in the way services are delivered could potentially impose significant costs on other sectors of the economy. In the event that a bank does fail, the Reserve Bank has crisis management powers which allow it to take steps to minimise any flow on effects to the rest of the financial sector.

Registered banks are required to meet certain minimum standards which are designed to reduce, but not eliminate, the probability of a bank failure. However, the approach to supervision is generally less regulatory in nature than is the case in some other countries where supervision has more explicit and direct depositor protection objectives. There is a strong emphasis on ensuring that market disciplines facing depositors, bank management and boards are not undermined, in view of the important role they have to play in encouraging prudent behaviour.

There is a fairly open policy on the entry of new registered banks in New Zealand, with no upper limit on the number of banks which can be registered. This policy recognises that competitive forces encourage efficiency and innovation and that overseas banks coming into New Zealand can bring valuable expertise to the local market. Applicants for registered bank status must satisfy the Reserve Bank that they are primarily involved in providing financial services. In addition, when considering an application for registration, the Reserve Bank is required to have regard to:

  • Incorporation and ownership structure.

  • Size of the business (a minimum capital of $15 million is required).

  • Standing or reputation in the financial market.

  • Ability to carry on business in a prudent manner.

  • Law and regulatory requirements in the home country if the applicant is an overseas bank.

A new approach to the supervision of registered banks was introduced on 1 January 1996. The new approach involves a balance between Reserve Bank regulation of banks' risk positions, and enhanced market disciplines on banks through a new public disclosure regime. Under the new framework, banking supervision involves:

  • A requirement that banks hold capital of not less than 8 percent of their risk weighted exposures. This is in accord with standard international requirements.

  • A limit on the amount which a bank may lend to a related party (i.e. generally a party which is able to control or significantly influence the bank).

  • A requirement for each bank to publish a public disclosure statement on a quarterly basis. The disclosure statements must contain a comprehensive range of financial information on the registered bank and the banking group of which it is part. The bank's directors are required to sign each disclosure statement. Disclosure statements are required to be available in bank branches.

The new disclosure regime is expected to strengthen existing market disciplines on banks and to provide a sharpened focus on the role of bank directors in overseeing the management of banking risks. The disclosure regime is also expected to provide depositors and other creditors of banks with an improved capacity to make decisions as to where they will place their money. The introduction of the disclosure regime has enabled the Reserve Bank to reduce the extent of regulation imposed on banks.

Table 27.1. ASSETS OF THE RESERVE BANK

As at 30 JuneDenominated in foreign currencyDenominated in New Zealand dollars
    Advances
Current account and advancesMarketable securitiesIMF holdings of SDRsForeign assetsSettlement institutions*Crown Settlement accountAdvances to Treasury

*Includes government stock buy backs, and one day interbank advances.

Government bank accounts.

Include term loans and advances to staff.

§Includes sundry debtors.

Source: Reserve Bank of New Zealand.

    $(million)   
19911,8652,21712668-1,032
19921,5052,81222743-1,124
19931,6742,9491-1,285-1,082
19941,2542,900--850-1,176
19951,1062,896--772-1,241
As at 30 JuneDenominated in New Zealand dollars
Investment in NZ
Government securitiesOther‡Fixed assets and inventoriesOther assets§Total assets
   $(million)  
19911,3033987277,240
19921,2963266197,601
19931,280272128,359
19941,247-70117,508
19951,52936237,612

Bank archivist with historic gold-weighing scales.

  • The Reserve Bank monitors each bank on a quarterly basis, principally using the bank's public disclosure statement. It also consults with the senior management of each bank, generally once a year.

  • The Reserve Bank has a wide range of powers available to it in the Reserve Bank of New Zealand Act to respond to a bank distress or failure situation. The powers are intended to enable the Reserve Bank to minimise damage to the financial system that could result from the financial distress or failure of a bank. The Reserve Bank does not seek to protect depositors per se or to prevent a bank from failing.

Over recent years there has been a move towards greater international co-operation among supervisory authorities. New Zealand has acknowledged the principles of the ‘Basle Concordat’ promulgated by the Basle Committee on Banking Supervision which sets down a broad framework for the supervision of banks operating internationally. The Reserve Bank maintains close relationships with other supervisors, particularly the Reserve Bank of Australia which acts as parent supervisor of some of the major banks operating in New Zealand.

The New Zealand financial system. After the banking industry was deregulated in the 1980s the number of registered banks increased significantly, partly as a result of non-bank financial institutions obtaining registered bank status and partly due to an inflow of foreign banks. Non-bank financial institutions declined in importance following deregulation as most of the larger ones became banks, while some of the banks which owned separate finance companies consolidated those operations within the bank itself.

More recently there has been some rationalisation in the banking sector, with a number of banks acquiring other banks, and merging the operations of the two entities. In addition, a number of the overseas banks which entered New Zealand in the 1980s have subsequently withdrawn from the market or scaled back their operations. The number of banks has declined as a result of this process (falling from a peak of 23 as at August 1990 to 15 as at July 1995). However, the number of banks per capita is still relatively high by international standard, despite rationalisation. In part this reflects the open nature of the registration regime. The non-bank financial sector following deregulation is small compared with that in other countries, for example Australia.

Table 27.2. LIABILITIES OF THE RESERVE BANK

As at 30 JuneDenominated in foreign currencyDenominated in New Zealand dollars
Current*Long termAllocations of SDRsReserve bank billsGovernment

*Overseas liabilities.

Domestic liabilities.

Includes Crown settlement account.

§Includes IMF number 1 account and staff deposits.

Includes accounts payable.

Source: Reserve Bank of New Zealand.

$(million)
1991283,733322990397
19921103,8303751,127517
19933463,9113671,056833
19942603,4563471,132264
1995723,5983321,241279
As at 30 JuneDenominated in New Zealand dollarsOther liabilitiesCapital and reservesTotal liabilities
Settlement institutionsOther§Currency in circulation   
   $(million)  
199166481,22694217,240
19921401,28383587,601
19933651,283324628,359
19941741,413304417,508
19953481,516364877,612

Filling up with EFTPOS.

The New Zealand banking system is characterised by a high degree of foreign ownership, particularly Australian ownership. As at September 1995 around 90 percent of the assets of the New Zealand banking system were under the ownership of a foreign bank parent, with approximately 60 percent being under the ownership of an Australian bank parent. This provides a source of strength for the system, providing local banks access to capital resources and banking expertise.

The registered banks operating in New Zealand as at July 1995 are:

  • Multi-purpose banks—ANZ Banking Group (New Zealand) Limited; Bank of New Zealand; The National Bank of New Zealand Limited; and Westpac Banking Corporation.

  • Wholesale banks—Bankers Trust New Zealand Limited; Banque Indosuez; Barclays Bank PLC; BNZ Finance Limited; Citibank NA; Primary Industry Bank of Australia Limited; and The Hong Kong and Shanghai Banking Corporation.

  • Mainly retail banks—ASB Bank Limited; Countrywide Banking Corporation Limited; Post Office Bank Limited; Trust Bank New Zealand Limited; and TSB Bank Limited. (Postbank now operates as a subsidiary within the ANZ Banking Group (New Zealand) Limited; it relinquished its separate banking licence on 1 December 1994.)

Eleven of the 16 registered banks are members of the New Zealand Bankers' Association, a professional industry association established in 1891. The association represents and promotes the interests of the banking industry and delivers to its members those services effectively undertaken on an industry basis.

Access to branches and services. Between them, New Zealand's 15 banks operate more than 1,460 customer service outlets throughout the country. There are banking outlets at either end of New Zealand from Kaitaia in the north to Stewart Island in the south. These extensive branch networks were originally developed in response to the nature of New Zealand's geography and its scattered population. While some banks have replaced full branch operations in remote areas with third-party agencies or with more cost-effective outlets incorporating electronic services, other newer entrants have expanded their branch networks.

An electronic banking system enables customers to access their accounts outside normal banking hours, without going near their branch. The first automated teller machines (ATMs) were introduced into New Zealand in mid-1979. By the end of 1982, all the major New Zealand trading banks offered ATM services. The number of machines steadily increased through the 1980s, as new retail banks emerged after deregulation. There has been a slight rationalisation of ATM networks recently as a result of mergers and the streamlining of bank operations. There were 1,390 bank-owned automated teller machines in New Zealand at 30 September 1995.

In 1984 Electronic Funds Transfer at Point of Sale (EFTPOS) was introduced in New Zealand as a means of payment for retail goods and services. The banks agreed in 1990 to integrate their EFTPOS services and the growth of the network has since been rapid. There were around 27,000 EFTPOS terminals in use in New Zealand at supermarkets, service stations, liquor markets and a range of other retail outlets. There are approximately 18 million payments transacted through EFTPOS per month, at an average value of $45 per transaction. The average total value of EFTPOS transactions per month is estimated at $800 million.

Credit cards provide an increasingly popular means for people to buy goods and services without having to handle cash. It is estimated that there are up to 1.4 million cards on issue nationally and that more than 60,000 merchants in New Zealand accept credit cards as a form of payment.

Industry self-regulation. In 1992 the New Zealand Bankers' Association introduced two related self-regulatory measures. From March 1992, a Code of Banking Practice establishing minimum standards of practice to be observed by banks in their dealings with personal customers and covering the responsibilities of banks and their customers (including the protection of customer information), the use of EFT (Electronic Funds Transfer) cards and guidelines for customer complaints procedures, came into force. A draft second edition of the code was prepared in 1995 and public comment on the document sought by the end of the year. Comments and submissions will be considered by an independent facilitator, Rt Hon Sir Gordon Bisson, and a final second edition will be issued in 1996. The code is linked to an independent external complaints review process, the Banking Ombudsman scheme, which was operational from July 1992. The Banking Ombudsman is empowered to rule on complaints involving claims of not more than $100,000 related to the banking services and products of participating banks, which have been considered by the internal complaints procedures of banks and remain in dispute. All 11 current members of the New Zealand Bankers' Association are participants in the Code of Banking Practice and the Banking Ombudsman scheme.

Industry performance. Aggregate banking system capital adequacy has been above minimum requirements since the introduction of Basle-based reporting in 1989. Average capital adequacy of non-branch registered New Zealand banks at June 1995 was 10.6 percent.

Net profit after tax as a percentage of total assets employed for New Zealand banks was 1.0 percent for the September 1995 year. Banks recorded growth in total assets of 14.3 percent over the year compared to 6.2 percent in 1994.

Table 27.3. LIABILITIES AND ASSETS OF M3 FINANCIAL INSTITUTIONS

ItemAs at June quarter
1992199319941995

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.

Liabilities— NZ$(million) 
NZ dollar funding—    
    NZ residents57,094x60,887x65,62272,166.5
    Non-residents7,827x9,778x8,7329,969.2
    Unallocated----
            Total, NZ$ funding64,921x70,665x74,35382,135.7
Foreign currency funding—    
    NZ residents2,7542,3912,1491,704.1
    Non-residents6,6598,246x10,96710,367.6
    Unallocated----
    Total9,41310,637x13,11612,071.7
Capital and reserves6,073x6,549x6,3906,052.9
Miscellaneous*1,985x1,633x3,1373,837.9
            Total liabilities82,392x89,483x96,996104,098.2
Funding from associates   12,726.5
Unused committed borrowing    
    Lines and standby facilities available to surveyed institutions647870422320.7
Assets—    
NZ Government securities8,777x9,114x8,6326,240.3
(includes Treasury bills)    
NZ currency262299279276.8
Balances with the Reserve Bank1,1661,0591,1851,255.3
NZ dollar claims—    
    NZ residents64,868x70,458x78,01987,304.8
    Non-residents1,078x784x959861.5
    Unallocated----
            Total, NZ$ claims65,946x71,242x78,97888,166.3
Foreign currency claims    
    NZ residents2,1642,9362,9843,061.5
    Non-residents718884964994.2
    Unallocated----
    Total2,8823,8203,9474,055.7
Foreign (currency) fixed assets and equity investment1,154266259100.1
Shares (in NZ companies)1,3071,5811,292851.0
Fixed assets (in NZ)1,5971,5181,4991,921.8
Miscellaneous*-698x583x9261,230.9
            Total assets82,392x89,483x96,996104,098.2
Financial claims on associates†2,7903,5222,5841,713.5

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, deregulation has seen a marked change in the operations of many of these institutions. There are currently only two formal categories of financial institutions—registered banks and other financial institutions. These other institutions operate in a range of areas, and can provide full banking services, or a subset of such services, as they choose. Only registered banks can settle at the Reserve Bank; non-bank institutions must do so through a registered bank as agent.

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 Statistics New Zealand publishes information on economic activity. Financial information is provided in the quarterly Reserve Bank Bulletin, and table 27.4 (following) provides a summary. Economic statistics on the banking and finance industry are collected by Statistics New Zealand 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 17.1, Business statistics).

Coverage: Banking finance and investment. The operation of the central bank, trading banks and recognised savings banks which are empowered to issue cheques, accept demand and time deposits and extend loans. Also non-bank enterprises holding or dealing in finance and investments activities (excluding holder investing).

Table 27.4. FINANCE*: STATISTICAL SUMMARY

Statistical item1990-911991-921992-931993-94

*This table aggregates: Banking; Other financing; and Trustee operations and services to finance, investment, insurance and superannuation. These are NZSIC (New Zealand Standard Industrial Classification) major group 811; major group 812; and group 8131 and major group 814 (except 81492) and 82301. There may be rounding errors due to the aggregation. For more detail see Business Activity Statistics 1995 (Statistics New Zealand).

  $(million) 
Sales of goods and services1,977.51,800.51,925.12,147.1
Interest, dividends, etc12,880.310,240.08,006.07,501.2
Government grants and subsidies198.770.832.41.7
Other income including extraordinaries699.0780.4404.6411.3
            Total income15,755.612,891.510,368.0910,061.3
Salaries and wages paid to employees1,379.11,344.31,325.21,391.6
Salaries and wages to self-employed commission agents14.61.14.27.6
Salaries and wages to working proprietors (SW to WPs)53.556.945.355.0
Levies paid to ACC13.114.913.415.1
Employer contributions to superannuation schemes40.941.637.046.7
Fringe Benefit Tax54.436.628.625.3
Purchases and other operating expenses1,716.31,835.61,746.71,796.3
Interest, donations, etc.10,436.07,821.45,455.04,652.0
Indirect taxes (excluding FBT)781.6833.9811.2845.5
Depreciation201.8205.5256.5245.2
Other expenses including extraordinaries355.7481.9413.2134.0
            Total expenditure14,288.711,857.69,344.98,386.6
Net profit before tax, extraordinaries, SW to WPs1,177.7792.01,077.11,452.7
Net profit before tax, SW to WPs1,521.01,090.51,068.51,730.0
Total purchases of fixed tangible assets337.6308.2331.6390.2
Sales of fixed tangible assets336.2133.6136.4171.7
Shareholders funds or owners equity8,110.67,196.07,995.77,805.0
Other liabilities98,363.299,336.396,924.9101,814.6
            Total capital and liabilities106,473.9106,532.2104,920.7109,619.6
Fixed tangible assets1,447.51,358.31,519.61,737.1
Other assets105,026.3105,147.0103,401.1107,882.6
            Total assets106,473.9106,532.2104,920.7109,619.6
Ratios— ($)  
Total income per FTE (full-time equivalent)  1,019,786.71,226,415.8
Net profit per FTE  115,927.3188,470.8
Ratios— (percent)  
Return on equity49.242.347.056.7
Return on total assets28.030.734.631.9
Liabilities structure24.021.025.924.3

27.2 Money

Currency

The present decimal currency system was introduced in 1967, when the dollar as tZé monetary unit replaced the previous system of pounds, shillings and pence.

The Reserve Bank has 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 13 percent of the narrowly defined money supply (M1) and roughly 2 percent of the broad money supply (M3). The total value of notes and coins on issue from the Reserve Bank in August 1995 was $1,311 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 1992, the $50 and $100 on 3 November 1992 and the $10 on 18 May 1993.

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 maintain price stability (0 to 2 percent annual CPI increases). In the event of clearly identifiable one-off shocks caused by factors such as changes in interest rates, government charges and taxes, and export or import prices, inflation may deviate temporarily from the 0-2 percent range. Consumer price inflation is currently within the 0 to 2 percent range (see section 26.1 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.

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.

Table 27.5. MONEY SUPPLY AND CREDIT AGGREGATES

Selected aggregatesAs at 31 March
1992199319941995

*Readily available money supply.

†Broad money supply, including term deposits.

Source: Reserve Bank of New Zealand.

  $(million) 
Monetary    
    Notes and coin held by the public1,0201,0811,2171,300
    Transaction account balances8,500 x8,522 x9,5479,502
    Less, inter-institutional transaction balances156480 x27139
    Less, government deposits10211817
            M1*9,354 x9,102 x10,47510,746
    Other funds55,204 x58,907 x62,21770,771
    Less other inter-institutional funding6,827 x5,884 x6,81510,476
    Less government deposits-818 x5461,315
            M357,731 x61,307 x65,33269,726
Credit    
    Gross claims—    
            (a) Surveyed institutions66,694 x70,990 x79,91586,299
            (b) Other201632
 66,714 x71,006 x79,91886,301
Less inter-institutional claims8,075 x7,2297,8568,697
            Private sector credit58,639 x63,777 x72,06277,604
Marketing and stabilisation27111
Claims on government—    
    (a) Surveyed institutions7,907 x8,154 x7,3324,537
    (b) Reserve Bank2,3861,5181,7322,323
    (c) Coins in circulation139149160169
            Total10,432 x9,821 x9,2247,029
            Domestic credit69,098 x73,599 x81,28784,634

KEY MARKET RATES
Monthly averages by type

The Reserve Bank controls the supply of settlement cash, through its daily open market operations (for example 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 securities the Reserve Bank takes settlement cash out of the system and this in turn affects interest rates and the exchange rate. These in turn influence 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.

Price stability was effectively achieved at the end of 1991 and has been maintained since then. The new Policy Targets Agreement signed in December 1992 formally orientates the Reserve Bank towards maintaining rather than achieving price stability. Monetary conditions have remained consistent with the maintenance of price stability over much of this period, apart from a brief period at the beginning of 1993. A sharp fall in the exchange rate in January 1993, which followed several instances of exchange rate weakness over the latter part of 1992, threatened the inflation target, and led the Reserve Bank to tighten monetary policy. As the exchange rate subsequently recovered, the bank was able to return monetary settings to their pre-January levels.

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 3 to 10-year) instrument paying a fixed coupon 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 14 months to maturity) wholesale debt instruments. They are used to meet the Government's seasonal financing needs during the year and, also 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 bill.) Bills have been sold through regular weekly tenders since January 1985; previously being sold by tap issue.

  • 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 bonds. Turnover in the market has grown significantly since 1984, with transactions usually in multiples of $1 million with settlement on a two-day basis.

The Reserve Bank Registry maintains registers of securities for government, local authorities and other public bodies and several state-owned enterprises.

At September 1995 the value of total government securities registered was $30,284 million. Of this total $29,723 million comprised Treasury bills and other wholesale government bonds while government retail bonds of $561.2 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 the government.

Table 27.6. GOVERNMENT SECURITIES ON ISSUE

 As at
September 1992March 1993September 1993March 1994September 1994March 1995September 1995
Source: Reserve Bank of New Zealand.
    $(million)
Ordinary government bonds, by maturity:       
Less than or equal to 1 month3.9---316.7197.4-
More than 1 month, up to 3 months28.52.91,404.3107.9--2,065.2
More than 3 months, up to 6 months52.7328.1-151.21,860.1--
More than 6 months, up to 2 years2,836.95,171.73,455.05,652.22,922.45,772.45,360.1
More than 2 years, up to 5 years10,281.87,815.910,709.77,983.17,974.27,777.86,169.1
More than 5 years4,554.65,911.65,394.06,942.78,905.47,689.29,135.2
Treasury bills by maturity:       
Less than or equal to 3 months3,743.02,714.02,283.03,045.04,253.03,426.03,649.0
More than 3 months, up to 6 months1,560.0980.01,590.01,720.01,665.01,776.01,700.0
More than 6 months, up to 1 year300.0950.01,260.01,205.01,070.01,325.01,250.0
Unclassified678.4624.11,040.3248.9368.7402.3355.0
Index linked stock133.9125.456.039.339.339.339.3
Government stock coupons212.7221.2222.0170.7260.7170.7170.7
Kiwi stock8.07.87.77.5---
IASBs203.2192.4180.9171.3---
ONZ Bonds7.26.96.56.3---
Kiwi Bonds753.8712.6570.1538.4529.8555.0561.2
            Total internal public debt25,358.625,764.628,179.527,979.530,165.329,131.130,454.8

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 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. After declining since late 1990, the value of the New Zealand dollar stabilised in 1992, before gradually appreciating in 1993 and early 1994. The trade-weighted index measure of the exchange rate (TWI) appreciated by around 8 percent between December 1992 and July 1994. The rise continued through 1995.

Over 1993 the New Zealand dollar strengthened relative to the United States dollar, the Australian dollar, the pound sterling and the German deutschmark. Over the same period, the New Zealand dollar declined in value against the Japanese yen. The pattern continued in the first half of 1994, except that the New Zealand dollar also depreciated against the deutschmark.

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.)

Between 1992 and 1992 the ‘real exchange rate’ declined by over 15 percent, resulting in a gain in competitiveness for those sectors of the economy which compete on international markets. Since then the real exchange rate has appreciated a little. Movements in the real exchange rate largely reflect changes in the nominal exchange rate. However, because New Zealand's inflation rate is below that of our trading partners, the loss in competitiveness from the appreciation in the nominal exchange rate is not as great as would otherwise have been the case. Our lower inflation rate has partly offset the impact on competitiveness of the higher TWI.

EXCHANGE RATE
Trade-weighted index

Table 27.7. FOREIGN EXCHANGE RATES*

Month§USA mid-rate US$/NZ$1UK mid-rate Stg/NZ$1Aust. mid-rate A$/NZ$1Japan mid-rate Yen/NZ$1Germany mid-rate DM/NZ$1Switz mid-rate Fr/NZ$1Exchange Rate Index† Base June 1979 = 100Real Exchange Rate Index‡ Base Jan 1990 = 100

*All exchange rates from April 1991 are representative market mid-rates at 9am.

The exchange rate index is as calculated at 9am on the basis of representative market rates for the currencies in the basket. The currency weightings used in calculating the Exchange Rate Index are revised approximately quarterly. Effective from 1 August 1994, the weightings are US 0.2411. Stg. 0.1005, Aust 0.3486, Yen 0,2544 and DMK 0.0554. The scale factor is 6305.

This real exchange rate index is calculated by the International Monetary Fund (published in the International Financial Statistics).

§ The index is based on a global weighting system that calculates trade weights separately for manufactured and primary product exports and imports. It uses quarterly average nominal exchange rates adjusted by the consumer price inflation rates of New Zealand and its main trading partners and trade competitors. Base January 1990 = 100.

Source: Reserve Bank of New Zealand.

1994—        
August0.60230.39250.808959.960.94950.800957.2 
September0.60300.38220.815159.440.93430.775657.193.8
October0.61530.37950.828759.960.93050.776757.7 
November0.62440.39960.818661.780.98050.828558.6 
December0.64260.41210.827664.040.99860.843460.096.5
1995—        
January0.64010.40210.843162.990.96370.811659.9 
February0.63590.40250.859761.730.93080.789959.7 
March0.65000.40510.890058.240.91590.759959.998.9
April0.67380.41620.922656.400.92950.765460.9 
May0.66740.41690.925055.330.92840.766560.6 
June0.66950.41940.936556.500.92380.767461.2 
July0.67500.42120.915359.480.93120.774261.7 
August0.65050.42060.862564.450.9611..61.3 
September0.65550.41520.872064.990.9300..61.5 

Contributors

  • 27.1-27.2 Reserve Bank of New Zealand; Statistics New Zealand; New Zealand Bankers Association.

Special articles

Reserve Bank of New Zealand, New Zealand Bankers Association.

Further information

Banking in New Zealand. New Zealand Bankers' Association (2nd ed., 1994)

Explaining Inflation (pamphlet). Reserve Bank of New Zealand, 1995.

Finance, Insurance and Business Services, 1987. Statistics New Zealand.

Financial Services Industry: Effects of Regulatory Reform. New Zealand Institute of Economic Research, 1986.

Financial Statement (‘Budget’, Parl paper B6).

Monetary Policy and the New Zealand Financial System. Reserve Bank of New Zealand (3rd edn, 1992).

Monetary Policy Statement. Reserve Bank of New Zealand (six-monthly).

New Zealand Bankers' Association Annual Review 1994. New Zealand Bankers' Association.

Key Statistics. Statistics New Zealand (monthly).

Questions and answers about: Headline and underlying inflation (1994); Interest rates (1995). Reserve Bank of New Zealand.

Questions and answers on the exchange rate (1995). Reserve Bank of New Zealand.

Report of the Registrar of Friendly Societies and Credit Unions (Parl paper B18).

Report of the Reserve Bank of New Zealand (Parl paper B16).

Reserve Bank Bulletin. Reserve Bank of New Zealand (quarterly).

Survey of New Zealand Financial Institutions. KPMG Peat Marwick (annual).

Weekly Statistical Release. Reserve Bank of New Zealand.

Chapter 28. Public sector finance

Minister of Finance checks the Budget cover.

28.1 Central government finance

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.

  • 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 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 under the Companies Act 1955 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.

Expenditure

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, multi-years 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 expenses, liabilities and expenditure are 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 Appropriations. These estimates are presented to Parliament and show the costs of producing the goods and services (outputs) for individual ministerial votes. 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, assets and liabilities and the cashflows of the Crown. Within Parliament, the Estimates and Departmental Forecast Reports 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.

Departments also report on their service performance, comparing the services they proposed in the Estimates with the services they actually produced during the year.

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 and individual Crown entity legislation governs 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 in the marketplace. 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 departmental appropriations are disbursed. Some annual appropriations are disbursed to Crown bank accounts, specifically, non-departmental output classes, eg appropriations to Regional Health Authorities.

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 and the Constitution Act 1986 provide the basis for the appropriation and management of public financial resources. They require 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 Government's ownership interest 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 driving principle behind the Public Finance Act is a shift of focus from what departments consume to what they produce. Hence, budgeting and reporting is on an output basis rather than relying solely on information relating to how outputs are produced. Departments were made responsible for outputs (the goods and services they produce) while Ministers were made responsible for selecting the output mix to achieve Government outcomes (desired goals).

Consistent with the output focus, the Public Finance Act requires additional disclosures such as statements of intent and statements of service performance. The documents go beyond disclosure of financial information and require disclosure of objectives, and service and financial management performance. In addition, the act specifies other Crown disclosures specific to the public sector such as a statement of unappropriated expenditure and a statement of emergency expenditure or expenses or liabilities.

The departmental financial statements along with information on financial transactions undertaken on behalf of the Crown were consolidated in 1992-93 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 Appropriations and Departmental Forecast Reports and requires both the Crown and departments to present to Parliament annual audited financial statements.

These accrual statements form part of the Financial Statements of the Government of New Zealand, also known as the Crown financial statements, which from the year ended 30 June 1993 cover Ministers of the Crown, government departments, offices of Parliament and the Reserve Bank of New Zealand, and the Crown's share of the net assets of State-owned enterprises and Crown entities (see later in this chapter for a list of the organisations covered). The Crown financial statements are tabled in Parliament for the six months ended 31 December (unaudited) and the year ended 30 June.

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 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 27.2: Money).

Fiscal responsibility, management and policy

The Fiscal Responsibility Act 1994 (FRA), an act to promote consistent, good quality fiscal management, came into force on 1 July 1994. Effective fiscal management will contribute to the economic health and performance of the economy as a whole.

The FRA provides the legislative framework for the conduct of fiscal policy in New Zealand. It encourages better decision-making by Government, strengthens accountability and ensures more informed public debate about fiscal policy.

Under the act governments are required to:

  • Follow a legislated set of principles of responsible fiscal management, and publicly assess their fiscal policies against these principles. Governments may temporarily depart from the principles but must do so publicly, explain why they have departed, and reveal how and when they intend to conform to the principles;

  • Publish a Budget Policy Statement well before the annual Budget containing their strategic priorities for the upcoming Budget, their short-term fiscal intentions, and long-term fiscal objectives. A Fiscal Strategy Report that compares Budget intentions and objectives with those published in the most recent Budget Policy Statement is to be published on Budget night;

  • Fully disclose the impact of their fiscal decisions over a three-year forecasting period in regular “economic and fiscal updates”;

  • Present all financial information under generally accepted accounting practice (GAAP);

  • Require the Treasury to prepare forecasts based on its best professional judgement about the impact of policy, rather than relying on the judgement of the Government. The Minister must communicate all the Government's policy decisions to the Treasury so that the forecasts are comprehensive;

  • Refer all reports required under the act to a parliamentary select committee;

These requirements mean that the Government of the day has to be transparent about both its intentions, and the short- and long-term impact of its spending and taxation decisions. Such transparency is likely to lead Governments to give more weight to the longer-term consequences of their decisions and, therefore, is likely to lead to more sustainable fiscal policy. This increases predictability about, and stability in, fiscal policy settings which helps promote economic growth and gives people a degree of certainty about the on-going provision of Government services and transfers.

The FRA establishes a set of principles for use as a benchmark against which the fiscal policies of the Government can be judged by Parliament and its Finance and Expenditure Committee.

These principles are to:

  • reduce debt to prudent levels to provide a buffer against future adverse events;

  • run operating surpluses until prudent debt levels are achieved;

  • maintain, on average, operating balance once prudent debt levels are reached, i.e. the Government is to live within its means over time, with some scope for flexibility through the business cycle;

  • achieve and maintain levels of net worth to provide a buffer against adverse events;

  • manage the risks facing the Crown;

  • pursue policies that are consistent with a reasonable degree of predictability about the level and stability of future tax rates.

As noted above, the FRA does not require the Government to follow these principles but it requires the Minister of Finance to explain the reasons for any departure from them, how the Government expects to return to them, and when. This gives the Government flexibility to respond to particular economic events which may make compliance with the principles difficult but requires the Government to be very clear about the reasons for their decisions.

The term prudent debt levels is interpreted, at present, to mean net public debt in the range of 20 to 30 percent of GDP.

Financial management developments. Since 1990, the Government has sought to maintain a medium-term focus in the budget process by preparing three-year forecasts. It has also sought to control the growth of expenses and improve the effectiveness with which it uses resources within a framework of clearly defined objectives:

  • targeting expenses towards policies which advance the Government's economic, social and fiscal goals;

  • making fiscal savings from lower-priority activities;

  • identifying areas of fiscal risk and taking steps to manage them; and

  • ensuring value for money from expenses through better management of resources.

Fiscal policy objectives. Fiscal policy is set to achieve a number of mutually-reinforcing medium-term objectives. These are:

  • reducing net debt to between 20 and 30 percent of GDP;

  • restoring the Government's net worth to significantly positive levels;

  • reducing operating expenses to below 30 percent of GDP;

  • making no increases in the statutory rates of income tax and GST;

  • maintaining the integrity of the tax base; and

  • managing prudently the risks facing the Crown.

The first two objectives are being achieved by building up large and sustainable operating surpluses. The Government intends to build surpluses up to at least 3 percent of GDP until net debt falls below 30 percent of GDP. The Government aims to achieve this in 1996-97. On the basis of current projections, net worth will become positive before 30 June 1996.

Moving the fiscal position into surplus has been achieved by controlling expenses and focusing on improving the quality of spending. In particular, the Government has made explicit its priorities and has looked where possible to switch resources into those areas rather than raise overall spending.

Playing the economy game—for charity.

Table 28.1. EXPENSES

 Years ending 30 June
1993 Actual1994 Actual1995 Actual1996 Forecast1997 Projection1998 Projection1999 Projection
Source: Financial Statements of the Government of New Zealand 1995, Economic and Fiscal Update 1995. The Treasury.
    $(million)   
By input type       
Subsidies and transfer payments (see analysis below)11,95310,80911,14811,40411,55711,57011,583
Operating expenses (see analysis below)10,38911,82712,04412,74013,14013,23513,483
Personnel       
Personnel expenses (excluding pension expenses)2,3952,3362,3252,3682,3362,3122,302
Pension expenses1,320748827710669677662
Depreciation839799741747776818835
Rental and leasing costs220214217242234231231
(gain)/loss on sale of assets5616(108)44......
Finance costs (see analysis below)3,9613,7883,7573,5053,2332,7802,291
Net foreign-exchange gains on liabilities324(1,340)(773)(323)......
Net foreign-exchange losses/(gains) on assets(28)44222278......
Provision for initiatives under development........280520710
Contingency expense provision......100200200200
            Total expenses31,42929,63930,40031,61532,42532,34332,297
Analysis of subsidies and transfer payments       
Social assistance grants       
    New Zealand superannuation4,9854,9314,9825,0315,0184,9454,883
    Unemployment benefit1,5721,4831,3201,2601,2221,1571,093
    Domestic purposes benefit1,1921,2041,2691,3691,4561,4971,547
    Family support580645700743785795809
    Student allowances238247265289309320332
    Other social assistance grants1,8031,9302,2532,3542,3782,4362,500
Subsidies1,427206163170182192191
Other transfer payments Official development assistance141130170165185206206
    Other15332623222222
            Total subsidies and transfer payments11,95310,80911,14811,40411,55711,57011,583
Analysis of operating expenses       
Education purchases       
    Early childhood education196212212235269285298
    Primary and secondary education2,2932,2912,3562,4362,5692,6472,700
    Tertiary education and training1,2851,3461,3721,4191,4331,4461,457
Health purchases2,6774,3954,6454,9565,1455,1965,272
Science purchases272279295304319359359
Other operating expenses3,6663,3043,1643,3903,4053,3023,397
            Total operating expenses10,38911,82712,04412,74013,14013,23513,483
Analysis of finance costs       
Interest       
    New Zealand dollars2,3792,4202,7632,7052,5232,2261,829
    Foreign currencies1,5371,242973777688532441
Other finance costs451262123222221
            Total finance costs3,9613,7883,7573,5053,2332,7802,291

REVENUE AND EXPENSES
As a percentage of GDP

Table 28.2. GOVERNMENT FINANCE: STATEMENT OF FINANCIAL PERFORMANCE

 Years ending 30 June
1993 Actual1994 Actual1995 Actual1996 Forecast1997 Projection1998 Projection1999 Projection
Source: Financial Statements of the Government of New Zealand 1995, Economic and Fiscal Update 1995, The Treasury.
    $(million)   
Revenue       
Levied through the Crown's sovereign power       
Direct taxation16,59117,58519,84321,11921,30421,57622,729
Indirect taxation9,22110,12010,37010,65711,40211,74812,254
Compulsory fees, fines, penalties and levies151190225227225230236
            Total revenue levied through the Crown's sovereign power25,96327,89530,43832,00332,93133,55435,219
Earned through the Crown's operations       
Investment income1,6461,3682,1702,0271,5631,6201,653
Sales of goods and services669713667643638640646
Other operational revenue791499438389339337329
Unrealised (losses)/gains arising from changes in the value of commercial forests766(292)(65)........
            Total revenue earned through the Crown's operations3,8722,2883,2103,0592,5402,5972,628
            Total revenue29,83530,18333,64835,06235,47136,15137,847
Expenses       
By functional classification       
Social security and welfare12,07111,47911,72411,92111,98011,95411,937
Health4,1684,6024,8865,2355,4385,4995,579
Education4,5394,6274,8034,9965,2165,3395,441
Core government services1,4641,7231,3401,6391,5231,5431,541
Law and order1,1731,1501,1901,2281,2281,2191,212
Defence1,0541,0491,0139861,0509751,047
Transport and communications781815796807841876895
Economic and industrial services744711673719752768764
Primary services372299309297284288298
Heritage, culture and recreation310241233253240244245
Housing and community development260394660543938
Other236141811141069999
Finance costs3,9613,7883,7573,5053,2332,7802,291
Net foreign-exchange (gains)/losses296(898)(551)(245)......
Provision for initiatives under development........280520710
Contingency expense provision......100200200200
            Total expenses31,42929,63930,40031,61532,42532,34332,297
Revenue less expenses(1,594)5443,2483,4473,0463,8085,550
Surplus attributable to State-owned enterprises and Crown entities1,3528537046848831,0361,293
Dividends and other distributions(577)(642)(1,257)(1,202)(779)(851)(945)
            Net (deficit)/surplus attributable to State-owned enterprises and Crown entities775211(553)(518)104185348
            Operating balance(819)7552,6952,9293,1503,9935,898

OPERATING BALANCE

Table 28.3. GOVERNMENT FINANCE: STATEMENT OF CASH FLOWS

 Years ending 30 June
1993 Actual1994 Actual1995 Actual1996 Forecast1997 Projection1998 Projection1999 Projection
Source: Financial Statements of the Government of New Zealand 1995, Economic and Fiscal Update 1995, The Treasury
    $(million)   
Cash flows from operations       
Cash provided from       
Direct taxation       
    Individuals12,72913,72614,77215,52315,34815,18316,034
    Companies2,3203,1703,8664,3164,7255,2385,535
    Withholding taxes1,0511,0561,0541,2191,2101,1611,153
    Other direct taxation863541111
            Total direct taxation16,18617,98719,69621,05921,28421,58322,723
Indirect taxation       
    Goods and services tax5,9106,2656,7377,0027,4967,9908,440
    Excise duties1,8591,8181,8581,8771,8661,8571,863
    Other indirect taxation1,3551,5011,6701,7031,7331,8731,941
            Total indirect taxation9,1249,58410,26510,58211,09511,72012,244
Compulsory fees, fines, penalties and levies131155212218219224231
Other Receipts       
    Interest, profits and dividends1,2311,1302,4531,9721,4561,4951,513
    Sales of goods and services634705672636623623647
    Other operating receipts906531470423358353345
            Total other receipts2,7712,3663,5953,0312,4372,4712,505
            Total cash provided28,21230,09233,76834,89035,03535,99837,703
Cash disbursed to       
    Departmental outputs4,1384,0553,8784,0073,8613,7843,768
    Other outputs9,43910,46211,47611,95112,38612,54912,833
    Finance costs3,8853,4433,8613,3823,2772,5402,388
    Subsidies1,349295152170186197197
    Current transfers       
    Social assistance grants10,43810,39610,73611,01511,13411,11411,159
    Other transfers164182175195214234234
    Provision for initiatives under development........280520710
    Contingency expenditure provision......100200200200
            Total cash disbursed29,41328,83330,27830,82031,53831,13831,489
            Net cash flows from operations (carried forward)(1,201)1,2593,4904,0703,4974,8606,214
    Subtotal (brought forward)(1,201)1,2593,4904,0703,4974,8606,214
Cash flows from investing activities       
Cash provided from       
    Sale of physical assets3,0501442571951134522
            Total cash provided3,0501442571951134522
Cash disbursed to       
    Purchase of physical assets6878298401,3881,092887881
    Net increase/(repayment) of advances5273511,564(929)28420(418)
    Net (sale)/purchase of investments1,886335(399)3,097(305)(1,341)(2,441)
    Contingency capital provision......100100100100 
            Total cash disbursed3,1001,5152,0053,6561,171(334)(1,878)
            Net cash flows from investing activities(50)(1,371)(1,748)(3,461)(1,058)3791,900
            Net cash flows from operating and investing activities(1,251)(112)1,7426092,4395,2398,114
Cash flows from financing activities       
Cash provided from       
    Net issue/(repayment) of Government stock2,8211,026491891720(2,713)(3,919)
    Issue of circulating currency6112910411......
            Total cash provided2,8821,155595902720(2,713)(3,919)
Cash disbursed to       
    Net repayment of foreign-currency borrowing1,3611,8373,1151,3232,9191,3172,477
    Net (issue)/repayment of other New Zealand-dollar borrowing449(799)(1,025)3372361,2091,698
    Major project refinancing79790........
Other items7............
            Total cash disbursed1,8961,0452,1801,6603,1552,5264,175
Net cash flows from financing activities986110(1,585)(758)(2,435)(5,239)(8,094)
Net movement in cash held(265)(2)157(149)4..20
Opening cash balance4647770210616565
    Reserve Bank of New Zealand opening cash balances(122)............
    Foreign-exchange (losses)/gains on opening cash balances..(5)(17)........
            Closing cash balance777021061656585
GOVERNMENT FINANCE: 1880-1995
YearPopulationReceipts*Public debt
From taxationOtherPayments*InternalOverseasTotal

*Consolidated Fund 1876-1964, Consolidated Account thereafter. Frequent changes in accounting practices from 1920s mean statistics are not strictly comparable.

Year ended 31 March except for 1876-79, year ended 30 June from 1990 onwards.

Year ended 31 December.

 no  £(000)  
1880528,4591,4481,6873,845....23,958
1885619,3231,8162,1404,101....32,195
1890667,4772,0902,1774,257....38,668
1895740,6992,3002,1484,352....40,387
1900808,1322,8912,8085,1404,39343,48147,874
1905925,6053,7543,5936,6369,32350,58959,912
19101,050,4104,1815,0588,99113,04361,84774,890
19151,152,6385,8816,57112,38019,67180,389100,060
19201,257,61116,2529,83023,782102,07799,094201,171
19251,401,23016,17212,47127,399104,044123,771227,815
19301,506,80919,4715,87925,201116,526150,857267,383
19351,569,68920,1765,95024,500117,425136,965254,390
19401,633,64532,81114,10946,600164,165132,551296,716
19451,728,44145,68914,23958,714403,274133,953537,227
19501,927,629103,85321,143120,689565,11278,768643,880
19552,164,734162,50928,708184,376630,80497,789728,593
19602,403,567276,44638,402314,217707,787136,729844,516
19652,663,843391,61360,241447,248904,393165,3991,069,792
    $(million)  
19702,857,8601,102.0170.51,275.12,351.3535.82,887.1
19753,148,4002,760.5285.53,034.93,336.9862.84,199.7
19803,176,4005,880.51,655.07,529.16,778.93,567.510,346.4
19853,271,50011,579.54,591.416,162.415,836.812,409.528,246.3
19903,362,50026,198.14,592.429,606.223,760.720,585.844,346.5
19943,526,40028,2031,39529,17429,56516,64746,429
19953,642,500P......31,61213,48545,097

28.2 Taxation

The tax year is from 1 April to 31 March. On 1 April 1995 the first step in restructuring the Income Tax Act 1976 and the Inland Revenue Department Act 1974 came into effect. The two acts were divided into the principal acts: the Income Tax Act 1994 and the Tax Administration Act 1994. In addition, the Taxation Review Authorities Act 1994 contains provisions from the Inland Revenue Department Act 1974.

Personal income tax

Income tax is levied under the Income Tax Act 1994 and is charged on most forms of income including business profits, employment income, royalties, interest, dividends and pensions.

The rates of tax for the 1995-96 year are:

Income up to $30,87524c for every dollar
Income over $30,87533c for every dollar

‘Pay as you earn’ (PAYE) system. This system of collecting income tax, introduced in 1958, is used for individuals. Income for PAYE purposes falls into two general classes—

Salaries, wages and other remuneration—PAYE is deducted from these at the time of payment.

At the beginning of each tax year, employees complete a tax code declaration form (IR 12). Employees of businesses which operate computer payrolls do not need to complete a new IR 12 each year. Their employers merely use the tax code each employee used the previous year. The IR 12 becomes a tax deduction certificate when it is returned to the employee at the end of the financial year or when the employee leaves the job. The certificate will show the total amount of income the employee has earned, the tax deducted, any extra pays, tax-free allowances and the period of employment. The employee uses this information to complete a tax return at the end of the tax year (31 March).

Most salary and wage earners file an IR 5 tax return each year. The due date for the completed return to reach Inland Revenue is 7 June each year.

The Inland Revenue Department assesses salary and wage earners on their total taxable income. Any taxes already paid and rebates allowed are deducted from assessed tax. The resulting figure will be either a refund or further tax to pay.

TAXATION PER CAPITA
Adjusted for inflation*

Business, farming, and professional incomes—With these incomes, tax is not deducted at time of receipt but the taxpayer pays ‘provisional tax’. A provisional taxpayer is any taxpayer who is liable for paying residual income tax of $2,500 or more. ‘Residual income tax’ is basically the amount of the tax assessed (including any New Zealand Superannuation surcharge), reduced by any tax deductions made from source deduction payments, tax paid overseas, tax paid by trustees etc.

Individual provisional tax is payable in three instalments. For 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 must reach the Inland Revenue Department by 7 July for the majority of taxpayers. Expenses are deducted from the gross business, farming or professional 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 additional tax to pay. In some situations interest is charged or paid on the under- or overpayment of provisional tax.

Deductions from tax

Deductions for expenses. For self-employed people, expenses which are incurred in producing income or carrying on a business 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.

Some of the more common items exempt from tax are: maintenance or alimony payments; some war pensions and service disability pensions; income derived by charitable and certain non-profit organisations and also lottery and raffle prizes.

Rebates. Rebates are deducted from the total tax payable.

Table 28.4. REBATES: YEAR ENDED 31 MARCH 1996

RebateAmount
Source: Inland Revenue Department.
Income under $9,880This rebate is available to low income earners who are in paid work for at least 20 hours a week. The maximum rebate is $728, which would apply to someone who worked 20 hours or more each week and whose income was less than $6,241. The rebate can't be claimed for any week where less than 20 hours was worked.
Income under $30,875Broadly, the maximum rebate for an assessable income of $9,500 or less is $855. This rebate is reduced by 4 cents in every dollar over $9,500. This rebate is not available to taxpayers earning $30,875 or more.
Child care or housekeeperThis applies to working parents, or to disabled persons who pay for help with child care or housekeeping. The rebate a family can claim is limited to the smaller of 33 cents for each complete dollar of payment made or $310.
Child rebateA taxpayer who was under 15 years or under 18 years and still at school may claim this rebate. Taxpayers who turned 18 on or after 1 January 1995 also qualify. The maximum rebate is $156 for income over $1,040. For income less than $1,040, the rebate is 15 cents in the dollar of income other than interest and dividends.
Special farm, or fishing-vessel ownership accountThe rebate is 45 cents for each $1 of annual savings increase in a special farm ownership or fishing-vessel ownership account. The maximum rebate is $2,250 ($5,000 savings increase). These accounts are now closed and the rebate is for existing account holders.
DonationsThe rebate is 33.3 percent of all qualifying charitable donations, with a maximum rebate of $500. The minimum qualifying charitable donation is $5.

Residential qualifications to pay income tax

New Zealand residents. New Zealand residents are liable for 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 (NRWT), unless the approved issuer levy is paid. NRWT is deducted by the bank or other paying institution.

For tax purposes, individuals are considered to be resident in New Zealand when they fulfil one or more of the following criteria:

  • Individuals must have been in New Zealand for more than 183 days in any 12-month period.

  • Individuals who have a permanent place of abode in New Zealand. This means having strong financial, personal or other such ties with New Zealand. Each case is considered on its own facts.

  • Individuals who are away from New Zealand in the service of the New Zealand Government.

An individual ceases to be resident in New Zealand if they are:

  • Absent from New Zealand for 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.

Any part of a day in New Zealand is considered as a full day for working out residency status.

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, up to the amount of 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, 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 in New Zealand 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 Support

Family Support is a tax credit designed to help low income families with cash help. It is paid either by the New Zealand Income Support Service with a benefit if the recipient is a beneficiary or fortnightly by Inland Revenue to the main child-carer in the family.

In the 1994 Budget, the Minister of Finance announced a new threshold and new rate for Family Support. From 1 October 1994, low income families will only start receiving less Family Support when their income goes over $20,000. Previously, this threshold was $17,500. The new rates for Family Support are:

First child$42 per week ($2,184 pa)
Each other child up to 12 years of age$27 per week ($1,404 pa)
Each other child aged 15 years and over$35 per week ($1,820 pa)
Each other child born before 30 September 1977$42 per week ($2,184 pa)

Guaranteed Minimum Family Income. GMFI is a tax credit which is paid in addition to Family Support. It ensures that all New Zealanders in full employment with dependent children have a set minimum weekly income. GMFI is available to all families with children whose gross yearly income is less than $18,363. A family with such an income will receive $275 per week in hand.

Child Support

Providing financial support for children is part of the role of a parent even if living apart from the child or children.

Inland Revenue Child Support (IRCS), which is responsible for administering the Child Support Act 1991, aims to make sure that all children receive support from their absent parents.

IRCS assesses and collects Child Support from people who are liable for paying (liable persons) and pays out Child Support to people caring for children (custodians). Where the custodian receives a benefit from the New Zealand Income Support Service (NZISS), Child Support collected is paid to the Crown to offset the cost of the benefit.

Most Child Support is assessed using a formula based on the liable person's taxable income from two years ago. A living allowance based on NZISS benefit rates is deducted and the resulting figure multiplied by a percentage, according to the number of children the person is liable for.

Sometimes parents have particular circumstances which the formula doesn't take into account. From July 1994, administrative reviews of formula assessments were introduced to consider such circumstances. IRCS administers the review process, although the actual reviews are carried out by qualified people contracted by the agency.

Custodians not receiving an NZISS benefit can choose whether to be involved in the scheme or not. They can apply for a formula assessment or apply for the agency to administer an agreement they have made with the liable person.

The minimum Child Support payable is $520 a year.

There were approximately 118,000 liable persons and 121,000 custodians at 30 June 1995.

Processing a deluge of last-minute tax payments at IRD.

The total amount of Child Support collected from 1 July 1994 to 30 June 1995 was $155.3 million.

New Zealand superannuation surcharge

From 1 April 1994 National Superannuation became known as New Zealand Superannuation. The superannuation surcharge is an extra tax paid on top of ordinary income tax. Everyone who receives New Zealand Superannuation and gets more than a certain amount of other income at the same time must pay surcharge. The surcharge rate is 25 percent. Half of any pension from a superannuation fund or a life insurance annuity is included in other income when calculating surcharge.

During the 1995-96 year single superannuitants can receive up to $80 per week before tax ($4,160 per year) of other income without having to pay any surcharge. Married superannuitants can each receive up to $60 per week before tax ($3,120 per year) of other income before paying any surcharge.

Student loans

The Student Loans scheme started on 1 January 1992. The scheme is jointly administered by the Ministry of Education and the Inland Revenue Department.

At the end of each academic year loans are transferred to the Inland Revenue Department, which is then responsible for assessing and collecting loan repayments until the loan is repaid.

The interest rate and repayment threshold and rate are reviewed annually and are effective from 1 April to 31 March.

The 1995-96 and 1996-97 rates are:

 1995-961996-97
Interest9.0%8.4%
Repayment threshold$13,884 pa$14,300 pa
Repayment rate10%10%

Student Loan borrowers are required to file an annual tax return, regardless of the level of income they receive, until their loan is fully repaid.

Borrowers who are earning over the repayment threshold and who are on salary and wages have their loan repayments deducted at source, along with their ordinary PAYE deductions. Employers then pay these deductions to Inland Revenue monthly or twice monthly along with their PAYE deductions.

Repayments from borrowers not on salary and wages are made direct to the Inland Revenue in the same manner as provisional tax payments are made. Borrowers can also make voluntary repayments to Inland Revenue for any amount at any time to reduce their loan balance.

As at 30 June 1995, 164,840 students have used a Student Loan. The total value of repayments collected by Inland Revenue since 1992-93 was just over $65 million. $35.6 million had been collected via employer deductions through the PAYE system with the balance coming mainly from voluntary repayments. There were 118,132 loans held at 30 June 1995 with a total value of $798.3 million (1994, $435.3 million).

Accident compensation premiums

The Inland Revenue Department collects earner and employer premiums and pays them to the Accident Rehabilitation and Compensation Insurance Corporation.

The earner premium covers the cost of non-work-related injuries but not motor vehicle-related injuries. All earners (employees and self-employed people) must pay the earner premium. This premium is a set percentage of the earner's income. For employees, the premium is deducted from their salaries or wages. People who receive withholding payments and self-employed people must calculate their earner premium at the end of the financial year.

The employer premium goes to the cost of work-related injuries. Employers pay this premium for their employees. Employers work out their premium when filing their end-of-year reconciliation forms. The employer premium rate varies according to the type of business activity. Self-employed people calculate their premiums in their end-of-year tax returns and pay the premium out of their self-employed income.

The total amount of accident compensation premiums collected up to 30 June 1995 was $246 million for employees, $837 million for employers and $277 million for self-employed people.

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. This tax (RWT) is deducted from interest and dividends 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 RWT. The leaflet RWT on Investments, available from Inland Revenue offices, has more information on RWT.

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.

Imputation. 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, and it thus avoids the double payment of tax (i.e. by the company and the shareholders) 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.

Entertainment expenses

In 1993 government introduced entertainment expenses legislation. Under this legislation certain business expenditure on food, beverages, recreation and related transport and accommodation was only 50 percent deductible. Amendments were made to the legislation effective from 1 April 1995 in order to reduce taxpayers' compliance costs.

The main change was that from 1 April 1995 more business expenses are fully deductible. For example, the following business costs are fully deductible:

  • Meals while travelling on business.

  • Meals provided at a conference of at least four hours duration (not including meal breaks).

  • Incidental entertainment at functions open to the public and at trade displays.

Only the following types of entertainment expenses are limited to 50 percent deductibility:

  • The costs of running and maintaining: corporate boxes and similar exclusive venues; holiday accommodation; and pleasure crafts such as yachts.

  • The costs of food and beverages provided or consumed either at any of the places mentioned above, or: on a taxpayer's business premises for a business lunch, party or similar function; off the taxpayer's business premises, for example for a business lunch with clients.

Fringe benefit tax

This is a tax at 49 percent of the value of fringe benefits provided by an employer to an employee. It is payable by the employer on an annual or quarterly basis. Taxable fringe benefits include:

  • The private use of a business motor vehicle by an employee.

  • Low-interest loans.

  • Free, subsidised or discounted transport and other goods and services.

  • Employer's contribution to certain employee's superannuation funds and accident, sickness or death benefit funds and insurance policies.

The total fringe benefit tax collected up to 30 June 1995 was $300,464 million.

Company taxation

Company taxation is also levied under the Income Tax Act, 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 that individuals are entitled to.

  • The rate of tax is different.

Company taxation collected in the year ended 30 June 1995 was $3,967.244 million.

Companies

A company resident in New Zealand is assessable on all income, whether derived in New Zealand or elsewhere. A company is a New Zealand resident if any of the following apply:

  • It is incorporated in New Zealand.

  • It has its head office in New Zealand.

  • It has its centre of management in New Zealand.

  • Control of the company by its directors is exercised in New Zealand.

Resident companies pay tax on their income at the flat rate of 33 cents in the dollar.

Special types of companies. There are various types of companies that have specific methods of assessment. They are: overseas shipping companies, life insurance companies, mining companies and overseas contractors.

Non-resident companies. A company not resident in New Zealand is only liable for tax on income derived from New Zealand. Non-resident companies are taxed at 38 cents in the dollar.

Dividends, interest and royalties paid to a non-resident company are subject to withholding tax, at a rate specified in the double taxation agreement with the country within which the company is resident. Generally this is the final liability.

Goods and services tax

Goods and services tax (GST) is a tax charged at 12.5 percent on taxable supplies provided in New Zealand by a registered person in the course of a taxable activity. GST was introduced in 1986 at a rate of 10 percent, increased to 12.5 percent in 1989.

Anyone with an annual turnover of $30,000 or more must register for GST. Persons registered for GST must charge and collect GST from their customers. GST-registered suppliers of goods and services pay GST on purchases and expenses made in the course of their business but may claim it back later. Registered persons must account for and pay all GST they have collected to the Inland Revenue Department.

GST is charged on the supply of goods and services. Some activities such as salaries and wages; hobby activities; and private sales of personal or domestic items are not taxable. GST is not charged on exempt supplies. Exempt supplies include all financial services, renting of residential property and the sale of donated goods and services by a non-profit organisation. By December 1995, there were 444,467 registered persons in New Zealand.

The total GST collected up to 30 June 1995 was $4,768 million, not including GST collected by New Zealand Customs.

Small Business Tax Information Service

Small businesses make up 95 percent of Inland Revenue's business customers and many of these small businesses, particularly the new ones, have difficulty understanding their tax obligations. To remedy this problem, Inland Revenue launched a service in June 1992 aimed at providing information for new small business operators. The service also provides information for existing small businesses about record keeping, GST and employer taxes such as PAYE, fringe benefit tax and employer premium.

The Small Business Tax Information Service comprises 37 officers in Inland Revenue offices nationwide who are available to talk to small business operators about their tax obligations. The service is free and available on request. The business person can meet the Small Business Officer either at Inland Revenue's offices or at their own premises.

For the year up to the end of June 1995, Inland Revenue's Small Business Officers advised 14,836 small business operators. The officers offer a follow-up visit within six months of the initial contact.

Customer Enquiry Services

The total number of customer contacts for the year ended 30 June 1995 was 3,550,991 (621,047 pieces of correspondence, 866,138 counter enquiries, 2,063,101 telephone enquiries, and 705 problem resolution cases). Decreasing correspondence volume has been offset by increasing telephone and counter enquiries, a trend indicating changing customer preference in the method of contacting Inland Revenue.

Problem Resolution Service. Some people have problems in their dealings with Inland Revenue that require special attention.

These problems include letters or phone calls not replied to by Inland Revenue, computer error and delays in paying Family Support or refunds. To help solve these problems quickly and effectively, the Problem Resolution Service (begun in 1989) has an experienced officer in every Inland Revenue office. It is their objective to resolve 90 percent of problems referred to them within five working days and the balance within ten working days.

This officer will only become involved in a case when Inland Revenue's services have failed to provide a satisfactory solution for the customer. In the year up to 30 June 1995, the Problem Resolution Service successfully dealt with 705 cases. During the year the service was extended to Child Support customers so that all customers have the same remedies available if they experience inadequate service.

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. Profits on sale of other 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, land developer or subdivider.

  • Makes a profit which is primarily due to rezoning or likely rezoning or similar occurrence.

  • Develops or subdivides the property within 10 years of purchase.

  • Develops or subdivides the property more than 10 years after purchase and carries out extensive sub-divisional work before selling. (Only the ‘development profit’ is taxable in this case.) This is where the sale is not taxable under one of the other categories.

Stamp duty

Stamp duty is a charge on certain legal documents (sometimes called instruments). Documents that are liable for stamp duty will not usually be recognised by the Land Transfer Office or the courts until the duty has been paid.

The Inland Revenue Department charges and collects stamp duty on property transactions documents, such as:

  • Conveyances and leases of commercial land.

  • Sales of shares in a company that owns flats or offices, except for those shares which carry the right to occupy a dwelling house.

  • Variations of commercial leases.

Following are the rates of duty for transactions:

Table 28.5. STAMP DUTY

Sale price of propertyRate of duty
First $50,0001 percent
$50,000 to $100,000$500 plus 1.5 percent of amount over $50,000
Over $100,000$1,250 plus 2 percent of amount over $100,000

Lease duty is payable at the rate of 40 cents per $100 or part of $100 on the maximum annual rental including GST. If the consideration is other than rent, lease duty is payable at the rate of $1 per $100 or part of $100 of the total consideration.

The total stamp duty collected in the year up to 30 June 1995 was $112.630 million.

Excise duty

The legislative base for the imposition and collection of excise duty is contained in the Customs Act 1966, Parts IV and IVA and the Third Schedule. There are two classes of premises licensed under the act: export warehouses and licensed manufacturing areas.

Export warehouses are premises that are licensed for the deposit of imported and excisable products for export, and other such dutiable goods as the Comptroller may permit, and generally include duty free shops and ships provedores.

Licensed manufacturing areas are premises where excisable goods are manufactured. At present there are seven different types of manufacturing area: wineries; breweries; tobacco; companies using alcohol in the preparation of goods, eg food preparations; companies denaturing ethyl alcohol, eg manufacture of methylated spirits; fuels, which includes leaded and unleaded petrol, compressed natural gas (cng) and liquefied petroleum gas (LPG); and spirit makers, eg distilleries.

CUSTOMS AND EXCISE RECEIPTS
As a percentage of total Consolidated Account taxation*

The liability for excise duty arises at the time of removal of the excisable product from the manufacturing area, other than to an export warehouse or to another licensed manufacturing area for further manufacture.

Payment of the excise duty is due within 21 days of the last day of the calendar month in which the goods were removed from the licensed premises. The rates of excise duty are contained in the Third Schedule to the Customs Act 1966.

Increases to the rates of excise duty on alcoholic beverages and tobacco products are linked to movement in the Consumers Price Index. Adjustments are made on 1 March and 1 September of each year in the case of alcoholic beverages, and 1 June and 1 December of each year for tobacco products.

In times of low inflation, provision has been made that where the Consumers Price Index movement is less than 1 percent no adjustment will take place at that time, but at the following indexation the previous 12 months' Consumers Price Index movement will form the basis of the adjustment to the excise duty rates.

Roads taxation

The Road User Charges Act 1977 provides for the payment of road use fees by all vehicles over 3.5 tonnes and smaller vehicles powered by a fuel not taxed at source. Motor spirit excise duty is paid on all petrol, LPG and CNG used on the roading network.

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 paid into the Land Transport Fund. All road user charges revenue collected is paid into the Land Transport Fund.

The Land Transport Fund also includes fees paid by motorists under the Transport (Vehicle and Driver Registration and Licensing) Act 1986. It pays for maintenance and construction of New Zealand's roading network, a contribution to public passenger transport, traffic enforcement and road safety education and publicity.

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 $54.655 million net during the year ended 30 June 1995.

Taxation review authorities

The Taxation Review Authorities Act 1994 provides for the establishment of one or more taxation review authorities. There are three authorities. Each consists of one person who is either a District Court judge, a barrister or a solicitor of the High Court of not less than seven years practice, 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.

Tax revenue

Table 28.6. DIRECT TAXATION

 Years ending 30 June
1993 Actual1994 Actual1995 Actual1996 Forecast1997 Projection1998 Projection1999 Projection
Source: Financial Statements of the Government of New Zealand 1995, Economic and Fiscal Update 1995, The Treasury.
    $(million)   
Income tax       
Individuals       
    Source deductions10,52810,90111,76512,26612,02811,87512,672
    Other persons2,8232,2903,3293,5253,5533,5813,700
    Refunds(603)(588)(538)(550)(580)(630)(640)
    Fringe benefit tax390294301310313325329
            Total individuals13,13813,52714,85715,55115,31415,15116,061
Companies2,3943,0013,9674,3594,7625,2585,510
Withholding taxes       
    Residents' interest income640642684837757722712
    Non-residents' income264344285307419398404
    Residents' dividend income82634755464136
    Foreign-source dividends10399555
            Total withholding taxes9961,0521,0251,2081,2271,1661,157
            Total income tax16,52817,58019,84921,11821,30321,57522,728
Other direct taxation       
Estate and gift duties8312..1111
Land tax(20)(7)(6)........
            Total other direct taxation635(6)1111
            Total direct taxation16,59117,58519,84321,11921,30421,57622,729

Table 28.7. INDIRECT TAXATION

 Years ending 30 June
1993 Actual1994 Actual1995 Actual1996 Forecast1997 Projection1998 Projection1999 Projection
Source: Financial Statements of the Government of New Zealand 1995, Economic and Fiscal Update 1995, The Treasury
    $(million)   
Goods and services tax6,0006,7796,8097,0677,7968,0148,450
Excise duties       
    Petroleum fuels832809811806776760760
    Tobacco products587599626638651649650
    Alcoholic beverages437421430438442448453
            Total excise duties1,8561,8291,8671,8821,8691,8571,863
Other indirect taxation       
    Customs duty587658780765754851881
    Road user charges321352382399422436452
    Motor vehicle fees140147157153157168169
    Stamp, cheque and credit card duties118144166175185194204
    Gaming duties102114124122125135142
    Energy resources levies97978594949393
Total other indirect taxation1,3651,5121,6941,7081,7371,8771,941
            Total indirect taxation9,22110,12010,37010,65711,40211,74812,254

Table 28.8. 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.

Source: Statistics New Zealand.

  $(million)percent
31 March—   
198639,65514,235.935.9
198748,01417,408.136.3
198854,32621,528.139.6
198958,48522,863.939.1
199060,86326,198.143.0
199162,69325,797.641.1
199261,93123,901.038.6
199366,23625,812.039.0
199469,052R27,705.040.1R
199574,08730,21340.7

Table 28.9. GOVERNMENT FINANCE: STATEMENT OF FINANCIAL POSITION*

 As at 30 June
1993 Actual1994 Actual1995 Actual1996 Forecast1997 Projection1998 Projection1999 Projection

*Assets and liabilities are no longer separated into current and non-current, as they were in previous Yearbooks.

Source: Financial Statements of the Government of New Zealand 1995, Economic and Fiscal Update 1995, The Treasury.

    $(million)   
Assets       
Cash and bank balances777021061656585
Marketable securities and deposits7,5067,9476,5239,2058,8177,4184,941
Advances2,7842,9894,7823,7674,0884,1703,812
Receivables4,3224,6064,4534,5214,8124,8054,808
Inventories448340326324324324324
State-owned enterprises and Crown entities15,92916,56916,42018,29018,50718,74919,131
Other investments511228223226228230233
Physical assets12,55313,08013,43213,81813,82113,63413,542
Commercial forests1,001712646646646646646
State highways7,0587,8567,4547,5277,6117,7117,828
Intangible assets1822187777
Contingency capital provision......100200300400
            Total assets52,20754,41954,48758,49259,12658,05955,757
Liabilities       
Payables and provisions3,1844,1383,8243,7103,5493,7563,714
Currency issued1,4001,5291,6201,6311,6311,6311,631
Borrowings47,47846,42944,09643,05940,75235,54827,477
Pension liabilities7,8407,9518,1068,0808,0327,9697,882
            Total liabilities59,90260,04757,64656,48053,96448,90440,704
            Total assets less total liabilities(7,695)(5,628)(3,159)2,0125,1629,15515,053
Crown balance       
Accumulated operating balance(8,269)(7,539)(5,074)(2,145)1,0054,99810,896
Revaluation reserve5741,9111,9154,1574,1574,1574,157
            Crown balance(7,695)(5,628)(3,159)2,0125,1629,15515,053

28.3 Assets and liabilities

Public Debt:
Debt management

During 1988, as part of the reform of the Government's financial management, the New Zealand Debt Management Office (NZDMO) was formed to improve the management of risk associated with the Government's fixed income portfolio, which comprises liabilities in both the New Zealand and overseas markets and some liquidity assets. The categories of risk managed are interest rate, currency, liquidity, credit and operational risk.

In 1988, NZDMO introduced reforms of the public sector's cash management involving centralisation of surplus cash funds for investment and cash management purposes, and decentralisation to departments of the responsibility for payments and other banking operations.

The separation of the Government's financial management from monetary policy enables NZDMO to focus on defining a low-risk net liability portfolio for the Government and implementing it in a cost-effective manner.

Before March 1985, successive governments had borrowed under a fixed exchange rate regime to finance the balance of payments deficit. Since the adoption of a freely floating exchange-rate regime, the Government has borrowed externally only to rebuild the nation's external reserves and to meet refinancing needs.

As it is projected to run a surplus on its operations in the 1995-96 fiscal year, the Government has budgeted to use the surplus cash generated to repay foreign-currency debt. The proceeds from its domestic bond programme will be used to refinance maturing domestic term debt. The proceeds of any asset sales in 1995-96 will also be used to repay foreign-currency debt.

Under existing legislation, amounts payable in respect of principal and interest on New Zealand securities are a charge upon the public revenues of New Zealand, payable under permanent appropriation. All of the indebtedness of New Zealand is otherwise unsecured.

Debt record

New Zealand has always paid, when due, the full amount of principal, interest and amortisation requirements upon its external and internal debt, including guaranteed debt.

Quantifiable contingent liabilities of the Government, including the Reserve Bank of New Zealand, state-owned enterprises and Crown entities, amounted to approximately $5,159 million, as at 30 September 1995.

The Government's medium-term fiscal policy with regard to debt management is that it should reduce public debt-to-GDP ratios by continuing to run operating surpluses.

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.

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.

The following statement shows the movement in loans and swaps raised by the Crown, and the balances as at 30 June 1995.

Table 28.1. SALES OF STATE ASSETS

BusinessSale priceSettlement date

Note: Sale price includes any subsequent purchase price adjustments.

Source: The Treasury.

 $(000) 
New Zealand Steel Limited327,22422 March 1988
Petrocorp801,05931 March 1988
Health Computing Service4,2507 November 1988
Development Finance Corporation111,28018 November 1988
Post Office Bank Limited665,40028 February—31 October 1989
Shipping Corporation of New Zealand31,7343 March—30 June 1990
Air New Zealand660,00017 April 1989
Landcorp financial instruments77,00020 March 1989—5 February 1990
Rural Bank687,50031 October 1989—30 September 1992
Communicate New Zealand648 December 1989
Government Printing Office38,5811989/90—1992/93
National Film Unit2,50023 March—21 September 1990
State Insurance Office735,00028 June 1990
Tourist Hotel Corporation71,85015 June 1990
New Zealand Liquid Fuel investment(203,000)6 July 1990
Maui Gas254,0006 July 1990
Synfuels stocks and current assets203,7346 July 1990—30 July 1993
Telecom Corporation4,250,00012 September 1990
Forestry cutting rights1,027,05524 July—26 October 1990
Export Guarantee Limited19,7813 October 1990—24 June 1993
Housing Corporation mortgages1,316,22825 November 1991—18 September 1995
Government Supply Brokerage3,20030 January 1992
Taranaki Petroleum mining licences121,1366 April 1992—1 March 1993
New Zealand Timberlands Limited366,00015 May 1992
Bank of New Zealand849,9469 November 1992
New Zealand Rail Limited328,19130 September 1993
Fletcher Challenge shares418,05925 November—23 December 1993
GCS Limited46,99118 November 1994

Table 28.11. STATEMENT OF BORROWINGS

 Movements during the year ended 30 June 1995
As at 1 July 1994Increases/ additionsDecreases/ disposals/ repaymentsForeign exchange contractsCurrency realignmentUnamortised premiums/ discountsAs at 30 June 1995
Source: Financial Statements of the Government of New Zealand 1995, The Treasury
    $(million)   
Outstanding debt       
New Zealand-dollar debt       
    Government stock20,1883,367(2,677)....(202)20,676
    Treasury bills6,412..(154)....(68)6,190
    Loans and foreign-exchange contracts2101,621(357)....(21)1,453
    Reserve Bank bills1,132114......(5)1,241
    Earthquake       
            Commission deposits892..(9)....(12)871
    Retail stock731318(338)....(91)620
            Total New Zealand dollar debt29,5655,420(3,535)....(399)31,051
Foreign-currency debt United States dollars8,8781,033(2,795)(173)(815)436,171
    Japanese yen3,970899(1,595)131163243,592
    European and other currencies4,016967(1,676)51(61)(15)3,282
            Total foreign-currency debt16,8642,899(6,066)9(713)5213,045
            Total outstanding debt46,4298,319(9,601)9(713)(347)44,096
            Marketable securities and deposits       
    New Zealand dollars1,34661(539)......868
    United States dollars4,019..(830)(680)(209)842,384
    Japanese yen1,02763(90)(85)68621,045
    European and other currencies1,555396(568)79633142,226
            Total marketable securities and deposits7,947520(2,027)31(108)1606,523
            Advances and cash3,0595,832(3,882)..(17)..4,992
            Total financial assets11,0066,352(5,909)31(125)16011,515
            Net public debt35,4231,967(3,692)(22)(588)(507)32,581
INTERNATIONAL COMPARATIVE STATISTICS
CountryCentral Government
Debt/GDPRevenue/ GDP 1995Revenue/ GDP 1995
NetGross
1986-199519951986-19951995
Source: Standards & Poor's November 1995.
   percent   
Australia111619232426
Canada627369791721
FranceNANA30441722
Germany122625371214
Hong Kong(38)(32)271617
New Zealand483763513834
Sweden537564903847
United Kingdom273637443640
United States414660701922

PUBLIC DEBT
As a percentage of GDP

Table 28.12. TYPE OF PUBLIC DEBT

Outstanding at    Total debt
Foreign currency debtDomestic currency debtAmountPercentage of total debt
AmountPercentage of total debtAmountPercentage increase on previous year

*Forecast for 1995 and projections for 1996 and 1997 included in 1994 Economic and Fiscal Update.

Source: The Treasury.

 $(million) $(million) $(million) 
31 March      
198614,72646.017,27654.032,00213.3
198721,72851.220,74448.842,47232.7
198816,97143.422,09756.639,068(8.0)
198916,47041.523,25158.539,7211.7
30 June      
199020,58646.423,76153.644,34711.6
199120,49146.623,44453.443,936(0.9)
199220,72744.026,37856.047,1057.2
199319,86641.827,61258.247,4780.8
199416,86436.329,56563.746,429(2.2)
1995*13,48529.931,61270.145,097(2.9)
1996*12,47428.331,68671.744,160(2.1)
1997*9,59424.329,96275.739,556(10.4)

Table 28.13. GROSS INDEBTEDNESS OF CENTRAL GOVERNMENT

As at 31 MarchAmountPer head of population
 $(million)$
198632,0029,776.44
198742,47212,933.77
198839,06811,780.60
198939,72111,933.96
As at 30 June  
199044,34713,204.26
199143,93612,936.58
199245,91813,174.38
199347,47813,565.14
199446,42913,166.12

Table 28.14. INTEREST PAYMENTS

Year endedInterest OverseasNew ZealandTotal*Interest on overseas debt as percentage of exports of goods and services†Recovery of interest from government enterprises and investments‡Net interest cost‡Net cost as a percentage of total taxation

*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.

    $(000)   
31 March       
19861,026,4272,275,9533,302,3807.41,485,8371,816,54312.8
19871,292,1312,777,3074,069,4388.51,664,6442,404,79413.8
19881,477,7763,469,9964,947,7728.91,940,4033,007,36914.0
19891,371,9623,115,3114,487,2737.61,366,8823,120,39113.6
30 June       
19901,525,0003,200,0004,725,0007.9922,0003,803,00014.5
19911,692,0002,932,0004,624,0008.4879,0003,745,00014.5
19921,691,0002,456,0004,147,0007.9695,0003,452,00013.9
19931,537,0002,379,0003,916,0006.5630,0003,286,00012.6
19941,242,0002,420,0003,662,0005.0518,0003,144,00011.1

Table 28.15. MATURITY PROFILE AS AT 30 JUNE 1995

 1995/961996/971997/981998/991999/20002000/01-2004/052005/06 and afterTotal
Source: Financial Statements of the Government of New Zealand 1995, The Treasury.
Outstanding debt   $(million)    
New Zealand-dollar debt        
Government stock2,5832,9102,1222,5352,8456,2171,46420,676
Treasury bills6,190............6,190
Loans and foreign exchange contracts915345147913061,453
Reserve Bank bills1,241............1,241
Earthquake Commission deposits871............871
Retail stock3721744529......620
Total New Zealand-dollar debt12,1723,4292,3142,5732,8466,2471,47031,051
Foreign-currency debt        
United States dollars1,2699191952,035392241,4906,171
Japanese yen392269541257811,5704823,592
European and other currencies1,038925333250-2944423,282
Total foreign-currency debt2,6992,1131,0692,5421202,0882,41413,045
Total outstanding debt14,8715,5423,3835,1152,9668,3353,88444,096
Marketable securities and deposits        
New Zealand dollars772..96........868
United States dollars1,2362873861405238922,384
Japanese yen36849..4134526271,045
European and other currencies1,14299331561691073222,226
            Total marketable securities and deposits3,5184358132372088714416,523

28.4 Local government finance

Since November 1989 local authorities have undergone substantial change. The number of authorities has been reduced to 86 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 roading, works and maintenance and refuse collection. Financial information covering business units and the councils is shown in table 28.16 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.

Table 28.16. LOCAL AUTHORITY STATISTICS—NON-TRADING ACTIVITIES*†

 1991-92R1992-93R1993-94

*Coverage: all activities of local authorities not classified as trading activities, eg local government administration, provision of water supply, roading, parks and reserves, town planning and regulation.

†June balance date.

 $(million) 
Income—   
    Rates (including water rates)1,586.41,588.11,658.6
    Petroleum tax26.033.034.4
    Grants, subsidies and levies294.4295.2300.5
    Fees and fines98.099.5113.9
    Sales and other income715.4631.4640.2
    Investment income118.8114.9128.2
            Total current receipts2,839.02,762.12,875.8
Operating expenditure—   
    Employee expenses856.7791.9809.9
    Interest253.1225.3193.1
    Depreciation286.3350.2361.7
    Purchases and other expenditure1,375.31,401.31,463.5
            Total operating expenditure2,771.42,768.72,828.2
Surplus before extraordinary items67.6-6.647.6
Gains from extraordinary transactions5.585.9199.2
Surplus after extraordinary items73.179.3246.8
Additions to fixed assets446.7504.2551.1
Disposals to fixed assets122.5104.5135.0

Definitions

Rates. All forms of rates including penalties and grants in lieu. Includes water rates, but excludes rates collected on behalf of other local authorities. Water sold by meter and connection fees is excluded.

Grants, subsidies and levies. Includes grants, subsidies and levies from central government, other local authorities and organisations. Grants treated as equity contributions are excluded.

Petroleum tax. Total tax received for use by all authorities.

Fees and fines. Includes items such as parking fines, building consents, dog registration, etc. Admission and parking charges are excluded from this category as they are treated as a sale of goods and services.

Investment income. This predominantly consists of income from interest and dividends.

Sales and other income. Includes trading receipts such as admission charges, water sold by meter and other miscellaneous operating income. Excluded are any sales of goods and services charges within the authority.

Employee expenses. Gross earnings during the accounting year of all paid employees in the authority. Included are such items as overtime, sick and holiday pay, benefit allowances, value of free supplies, sales commission paid to own employees, and severance and redundancy payments. Levies paid to the Accident Rehabilitation Compensation and Insurance Corporation and employer contributions to superannuation, pension and welfare schemes are also included in this category.

Interest. Interest paid on public debt and other liabilities.

Depreciation. Depreciation on fixed assets including infrastructural and restricted assets, buildings, mobile equipment, other plant, machinery and office equipment.

Purchases and other expenses. Includes rent, insurance, fuel, postage, repairs and maintenance, contracts for services and overhead charges from the separate council trading enterprises are also included. Excluded are purchases of goods and services charges within the authority, and contract payments for capital works. Other expenses includes grants and donations to other organisations, bad debts and income tax. Also excludes loan repayments, purchases of fixed assets or contract payments for the construction and development of fixed or community assets.

Gains from extraordinary transactions. Includes gains on items outside the normal course of local authority business such as the sales of assets above or below book value, gains or losses on revaluation of capital assets, and gains or losses on extraordinary exchange transactions. Also includes any surplus transferred from the trading division of local authorities that do not fall within the coverage of this survey.

Fixed assets. The purchase and sale of fixed assets during the financial year including the purchase and sale of new and second hand operational, infrastructural and restricted assets and including capital work done by own employees. Excludes expenditure on intangible assets such as goodwill, and land and buildings held for resale.

Contributors

  • 28.1 The Treasury.

  • 28.2 Inland Revenue Department; New Zealand Customs; Ministry of Transport; The Treasury; CCMAU.

  • 28.3 The Treasury.

  • 28.4 Statistics New Zealand.

Special articles

The Treasury.

Further information

Annual Financial Statements of the Government of New Zealand (B1 HY).

Annual Report of the Treasury (Parl paper B27).

Budget Policy Statement (Parl paper B1).

Budget Speech and Fiscal Strategy Report (Parl paper B2)

Departmental Forecast Report of the Treasury (Parl paper B27 FR 95).

Economic and Fiscal Outlook and Budget Tables (Parl paper B3).

Economic and Fiscal Update (Parl paper B6).

Estimates of Appropriations (Parl paper B5).

Financial Statements of the Government of New Zealand. The Treasury (eight times a year).

Fiscal Responsibility Act 1994—An Explanation.

Fiscal Results for the Government of New Zealand. The Treasury (six times per year).

GST Guide. (booklet) Inland Revenue Department, 1994.

Half-yearly Financial Statements of the Government of New Zealand (B10).

Key Statistics. Statistics New Zealand (monthly).

Local Authority Statistics, Non-trading Activities. Statistics New Zealand (annual).

Report of the Inland Revenue Department (Parl paper B23)

Report of the Local Authorities Loans Board (Parl paper B17).

Report of the Treasury (Parl paper B27).

Retiring Allowances and Redundancy Payments. (booklet) Inland Revenue Department, 1994.

Road User Charges (booklet). Land Safety Transport Authority, 1994.

Superannuitants and Surcharge. (booklet). Inland Revenue Department, 1995.

Supplementary Estimates of Appropriations (Parl paper B7).

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 metre (m)= 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 (l)= 1 cubic centimetre (cc)
    1. litre (l)= 1.76 pints1 cubic metre (m3)= 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 gram (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
Energy
    1 kilojoule (kJ)= 0.95 British thermal units (Btu)1 megajoule (MJ)1,000 kilojoules (kJ)
 0.24 calories (cal)1 kilowatt hou(kWh)= 3.6 megajoules (MJ)
  1 gigajoule (GJ)= 1,000 megajoules (MJ)
  1 terajoule (TJ)= 1,000 gigajoules (GJ)
  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.

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 second-hand 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 cif to fob 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 (fob) from exports (fob).

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 1,000 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 second-hand 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. Statistics New Zealand 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.)

Cif (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 Rehabilitation and Compensation Insurance 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.

Consumers Price Index.

See Indexes.

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 1,000 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 Statistics New Zealand 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.

Domestically issued securities.

Domestically issued securities consist of domestically issued bonds and bills which are taken up by non-resident organisations, individuals, or through New Zealand organisations acting as their nominee. They have been included in New Zealand's overseas debt statistics from 31 December 1992.

Employer contributions.

Payments by employers to superannuation, pension and welfare schemes, and accident compensation levies.

Employment, Status in.

A respondent's employment status within the labour force. This applies to persons in full and part-time employment. Employment status categories are: paid employee; self-employed and without employees; employer; and unpaid family worker.

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 fob.

Fertility.

The actual reproductive performance of a population. Often measured in terms of the number of live births per 1,000 women aged between 15-44 years.

Final consumption expenditure

(national accounts).

  1. Resident households—All outlays on consumer goods and services, including expenditure on consumer durables such as motor vehicles and furniture; included are payments made by government on behalf of households, and the imputed rent of owner-occupied dwellings.

  2. Producers of general (central and local) government services and private nonprofit services to households—Total current expenditure by these producers less the value of any sales or own account capital formation (i.e. the total net current costs incurred in providing the services).

Foreign direct investment in New Zealand.

Changes in foreign direct investors’ claims on and liabilities to their New Zealand-located subsidiaries and branches.

Fob (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.

Full-time.

Persons working 30 hours or more a week.

Full-time equivalents.

The number of full-time equivalent persons engaged. This equals the number of full-time employees and working proprietors plus half the part-time employees and working proprietors. The resultant value is then rounded up to the nearest whole number when the data is output and is taken as at or on the nearest payday to 28 February during the census year.

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, reading, 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 (CCCN) based tariff and the SITC statistical classification.

Imports (balance of payments).

All goods and services purchased by New Zealand residents from non-residents. (See also Merchandise trade and Invisibles (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 cif (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, eg 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, volumes 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 excise duties, 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).

Invisibles (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 and unemployed persons seeking full-time work. The part-time labour force comprises persons working 1 to 29 hours per week and unemployed persons seeking part-time work.

Loans.

Direct agreements between borrowers and lenders, involving the transfer of funds to the borrower and the repayment to the lender over time. This category includes secured and unsecured loans, trade related loans, overdrafts, roll-over loans, revolving credit advances, advances from overseas parent and/or subsidiary companies, the use of swingline facilities and non-market debentures and notes.

Long-term liabilities.

Those obligations which are not expected or are not required to be met within one year of the survey date. The sum of the current portion of long-term liabilities and long-term liabilities is equivalent to the previously published statistics on New Zealand's long-term overseas debt.

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, eg hospital patient.

Main urban areas.

The criterion 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 1,000 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.

NZSNA.

New Zealand System of National Accounts.

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 government sector.

State-owned enterprises (SOEs) and local government organisations.

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 fob and imports valued cif.

Paid employees.

See persons engaged.

Part-time.

Persons working less than 30 hours a week.

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, eg losses on sales of fixed assets, sales tax, beer and excise duty and fringe benefit tax.

Re-exports.

Goods, materials or articles exported in the same condition as they were imported, and imported goods which have undergone operations such as repair, repacking, or bottling which leave them essentially unchanged before exporting.

Re-imports.

Goods, materials or articles, imported in the same condition as they were exported from New Zealand (one third of re-imports are made up of live animals, principally racehorses and dogs).

Rent and leasing.

Total expenditure on or income from the rent and leasing of land and buildings and of plant, equipment and vehicles.

Reserves (balance of payments).

Foreign reserves assets of government. The changes in reserves due to transactions equates to the balance on current account plus the net apparent capital inflows. The ‘counterpart’ to valuation change shows the change in the value of total foreign reserve assets arising from exchange rate changes.

Revised (statistics).

In this volume, any data which is different from that printed in the last edition.

Rural areas.

Those areas not specifically designated as ‘urban'. They include towns of fewer than 1,000 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 institutional 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.

The expenditure of 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.

Vfd (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.

Index

Names of people, places and geographic features are generally not indexed separately, but can be found on pages listed under the relevant headings, eg cities; mountains; population. Exceptions are names of countries, and inhabited islands.

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 (eg National Film Library; New Zealand Dairy Board).

Individual commodities or products are indexed separately only when they are unusually significant, eg wool. Where there is no individual entry, look on pages listed under the appropriate general index entry:

  1. General commodity or product headings, eg crops, dairy products, minerals, meat; or

  2. General economic and business activity headings, eg retail trade, manufacturing, prices, exports.

Similarly, specific services and industries should be looked for in listings under general headings, such as business censuses or national accounts.

In most cases New Zealand has been abbreviated to NZ to save space.

The entries in the Special Articles 1996 and New Zealand linked to the world indexes are also included in the main index.

A

abortion, 168-9
abuse of children, 144
ACC (Accident Rehabilitation and Compensation Insurance Corporation), 173-6
access radio, 244
Accident Compensation premiums, 556
Accident Rehabilitation and Compensation Insurance Corporation (ACC), 173-6
accidents (see also ACC), 173-80
air, 458
at home, 171, 180
fatal, from falls, poisoning and other causes, 179-80
hospital patients treated for, 171
infant mortality, 167
motor vehicle, 171, 176-8, 179-80
prevention of, see safety
traffic, 176-8, 179-80
water, 178-9
accommodation supplement, 140, 446
accommodation, tourist, 279
accrual accounting, 546-7,548
Action TV, 241
Active in Age programme, 269-70
Acts of Parliament, 27, 218
adoption, 147
adult adoption information, 147
adult education, see continuing education
Advertising Agencies' Association, 246
Advertising Standards Authority, 237-8
advertising, 245-6
aerial topdressing see topdressing
African countries, relations with, 63
AFS (American Field Service) student exchange, 193 age
at death, 90-2
by ethnic group, 96, 118
by sex/gender, 94-5
deaths from external causes, 180
deaths of pre-school children, 180
distribution, of population, 94-6, 98, 118
of hospital inpatients discharged, 169
of motor accident deaths and casualties, 176-7
of new mothers, 88
of prison inmates, 231
Pacific Island distribution, 132-3
Agenda 21 of UNCED, 335,434
AgResearch, 313-4
Agricultural Production Account, 371-2
agricultural costs, farm expenses price index, 372-3
exports (various), 377-393, 494-5, 497-8
land, 369-70
agricultural production see also dairy products, meat and meat products, wool
crops, 387-93
indicators of, 371-2
marketing, of products, 378-9, 380-82, 383-4, 384-5, 386, 387, 390, 391, 392
Agriculture Facts, 370-71
Agriculture, Ministry of, 40, 318, 371, 373-4, 389
agriculture, agricultural expenditure, 372-3
aspects of, 369
cattle, 369, 370-71,375-78
costs of, 372-3
crops, 387-93
current situation and trends, 369
dairy farming, 369, 370-71, 375-6, 384
deer farming, 370-71, 375
deer velvet, 520
farm employees, 371
goat farming, 370-71, 375
international policies, 371
numbers and types of farms, 369-70
pig farming, 370-71, 375, 384-5
poultry, 385-6
production indicators, 371-2
quarantine, 373
research, 313-4
sheep, and sheep farming, 369, 370-71, 375, 376, 377, 379-82
topdressing, 371, 460
aid to developing countries, 64-6
AIDS (acquired immune deficiency syndrome), 158
air force (Royal NZ Air Force), 78-9
navigation systems, international award, 459
pollution, 335
quality, 335
transport, see aviation
aircraft navigation, Oceanic Control System, 459
accidents, 458
airline services, international, 453, 458, 459-60
airports, 453, 460
cargo at, 515-8
AirPost international, delivery times (map), 250
Airways Corporation of New Zealand Ltd, 458-9
overseas use of OCS (Oceanic Control System), 459
ALAC (Alcohol Advisory Council), 163-4, 165
alcohol see also beer, wine
consumption worldwide, 163-4
consumption, 163-4, 165
excise on, 558-9
legal aspects of consumption, 474
mental health facilities patients, 172, 173
Alexander Turnbull Library (and 75th anniversary), 265, 267
allowances, income support, 139-40
amenities, of dwellings, 107-8
American Field Service (AFS) student exchange, 193
Amphibia and reptiles, 13
animal health and pharmaceutical products, export of, 503
animals and plants, 12-13
animals, farm, see livestock
anniversary day holidays, provincial, 306-7
Antarctica, Defence Force support in, 75
international co-operation, 313
NZ Antarctic Institute, 313
NZ Antarctic Programme, 328
NZ research in, 72, 313
ozone hole over, 10
Ross Dependency, 72
environment, 328, 340
anthems, national, 45, 56-7
anti-nuclear weapons campaign, 20
antiquities, protection of, 262
ANZAC frigates, 60, 77
ANZSIC (Australian New Zealand Standard Industrial Classification), 436, 486
ANZUS (Australia, New Zealand and United States) Treaty, 60, 74
APEC (Asia/Pacific Economic Co-operation), 61, 186, 311
Bogor Declaration, 434
countries, trade with, 510-12
educational links, 186, 191
customs links, 492
apiaries, 386-7
apparel, cost of, 527-30
expenditure on, 106, 107
exports of, 436
industry, 435-6
apples and pears, exports, 497-8
production, 390
appliances, in households, 107-8
aquaculture, 408-9
archaeological sites, protection of, 262
archives, national, 263-4
area of NZ, 1,329
armed forces see Defence Force, NZ
armed offenders squads, police, 234
army (NZ Army), 21, 22, 74-5, 78
arrivals, in country see also immigration, 93-4
art galleries and museums, 261-3
art, 21, 22
artificial aids, benefits for, 156
arts and cultural activities, 255-61
grants to, 255
national collections, 261-4
Arts Assembly, NZ, 269
Arts Council of New Zealand Toi Aotearoa see Creative
New Zealand, 256
ASEAN (Association of South-East Asian Nations), 60-61,74
Free Trade Area, 434
dialogue partner with, 60
Asia 2000 Foundation, 60, 61
business grants programme, 503
culture and sports grants programme, 256
education programme, 212
media grants programme, 242
Asia, defence assistance, 74
Asian countries, relations with, 60-61, 514
Asian Development Bank, 70-1
assistance to developing countries, 64-6
astronomy, Carter Observatory collaboration with overseas astronomers, 318
ASYCUDA (Automated System for Customs Data), NZ
Customs involvement in, 495
Audit Office, 47
international links, 47
Auditor-General, Controller and, 22,46-7
Australia New Zealand and United States Treaty (ANZUS), 60, 74
Australia New Zealand Closer Economic Relations Trade
Agreement (CER), 60, 434, 507
Australia
AIDS organisations, 158
ANZAC frigates, 60, 77
ANZECC (Australian and NZ Environment and Conservation Council), 329
ANZSIC (Australian and NZ Standard Industrial Classification), 436
as defence partner (CDR), 60, 74
Australasian Council of Auditors-General, 47
Australasian Dental Council, 153
Australia and New Zealand Food Authority, Code & Council, 157,435
Australian Health Ministers' Advisory Council (AHMAC), 170
benefit reciprocity, 142
CER with, 60,434, 507
Cultural Ministers Council, and NZ, 255
double taxation agreement, 60
exports to, 506, 507-8
immigration status of Australians, 122
JAS-ANZ, standards accreditation, 321
Joint Council on Vocational Education and Training (NZQA), 186
link with Australian Competition and Consumer Commission, 476
Maori in Australia, 97
NZers living in Australia, 94
NZLIA links with ALIA (Australian Library and Information Association), 266
online information, National Library, 267
PADET fellows to Canberra, 66
Parliamentary Commissioner for the Environment link with, 50
Parliamentary Select Committee exchanges, 28
pharmacists link with, 154
Privacy Commissioner link with (PANZA), 48
relations with, 60
RNZAF at Nowra, 79
social security agreements, 60, 141, 142
sports drug testing in Sydney, 273
teacher registration links, 188
trade with, 507-8
Trans Tasman Index of company share prices, 478
trans-Tasman food standards, 435
trans-Tasman Mutual Recognition Agreement, 434
trans-Tasman video evidence, 216
Australian newspapers use MetService weather graphics, 7
Autocheck, 466
aviation, civil
accidents, 458
aerial work, 460
Air New Zealand, 20, 21
airlines, 453,459
airports, 453,460
AirPost, 250
distances to overseas destinations, 460
domestic, 453,459
international, 459
licensing and control of, 457-8, 460

B

balance of payments (NZ transactions with the rest of the world), 359-60
ballet, 20
Royal NZ Ballet, 257-8
bankruptcies, 479-80
banks and banking, 22, 535-40
cheque reform, 541
Crown banking, 547
EFTPOS, 538
finance institutions, 539-40
foreign ownership of, 538
hire purchase, 489
public disclosure, 536-7
registered banks, 538-9
Reserve Bank of NZ, 535-7
self-regulation, 538-9
statistics, 540
beef, 377-80
beekeeping, 386-7
beer, consumption, 163, 165
prices world-wide, 165
bees and beekeeping, 386-7
Beijing, 4th UN World Conference on Women, 116
BellSouth NZ, 248
benefits and pensions (see also family assistance, superannuation), 136-141
accident compensation, 173-6
accommodation, and supplement, 140,446
artificial aids, 156
benefit crime, 148
child care subsidy, 138, 140
current rates, 136-7
dental, 152,156
disability allowance, 139
domestic purposes, 136-7, 139, 140
expenditure on, 135, 140
family support, 137, 138, 139, 140, 554
funeral grant, 140
handicapped child, 139
health, expenditure on, 156
independent youth, 137
invalids, 136, 137, 139, 140
job search allowance, 137
maternity, 155
number of, 139
NZ superannuation, 137, 139, 140
orphans & unsupported child, 137, 138, 139, 140
pharmaceutical, 155
reciprocity agreements, 142
sickness, 136, 137, 139, 140
special needs grant, 139, 140, 149
special, 139, 140
training incentive, 140
training, 138
transition to work, 140
transitional retirement, 136, 138, 139, 140
unemployment, 136, 137-8, 139, 140
veterans pension, 137, 139, 140
war pensions, 138, 139, 140, 141
widows, 136, 137, 138, 139, 140
betting and gaming, 275-7
NZ history, 276
NZ Lotteries Commission, 277
Totalisator Agency Board, 275
bilateral assistance, 64-5
bilateral relationships (MFAT), 64-5, 65
Bills, passing of in Parliament, 26-7
biodiversity, 336-7
birth, country of, 119
Births, Deaths and Marriages Registry, 86
births and birth rates (see also childbirth), 86-90
average age of new mothers, 88
Maori, 89-90, 125
rate, 1960-95 (graph), 91
registration of, 86
stillbirths, 167
summary (1885-1991), 90
to unmarried mothers (ex-nuptial), 89
blood samples for criminal investigations, 227
Bogor Declaration of APEC, 434
bookmaking, 275, 277
books and libraries, 264-8
author's fund, 264
books & books on audio cassettes, sold overseas, 187, 265
imports of, 499
on audio cassettes, 265
publishing, 264-5, 267
talking, for the vision-impaired, 268
BRANZ (Building Research Association of NZ), 452
breastfeeding, 160-1
Broadcasting Standards Authority, 237, 238-9
broadcasting, 20, 237-44
Broadcasting Commission (NZ On Air), 237-8, 239, 241, 242, 244
Maori Broadcasting Funding Agency (Te Mangai Paho), 238-9
Maori broadcasting, 238, 239
policy, 237
public broadcasting fee, 237
radio, 242-4
standards, 238-9
television, 239-41
Budget dates, 546
building and construction (see also housing), 448-52
authorisations, 448-50
work put in place, 450-51
Building Research Association of NZ (BRANZ), 452 buildings
construction standards, 448
historic, 38, 262, 450
bursaries, for tertiary study, 197
buses, 465, 466, 467
business development, 437-9
Pacific Island Business Development Trust, 133
Business Directory (Statistics New Zealand), 363-7
business statistics, 363-7
butter, 382-4, 494-5

C

Cabinet, 31-3
Department of the Prime Minister and, 43
cable television, 241
cadets (NZ Cadet forces), 75
Campbell Island, 1
carillon, National War Memorial, 45
Canada, TEC (Trade and Economic Co-operation Agreement) with, 62
cancer, deaths from, 165, 166-7
Capital Goods Price Index, 533
capital finance (national accounts), 351-2
gains, tax on, 558
Careers Service rapuara, The, 186, 295 cargo
air, 515-8
coastal, 518-9
handled at ports, 515-9
overseas, 514-8
carpet industry, 436
cars, 105, 435, 465-9
ex-overseas and imported, 435, 465
imported, registrations, 465
Carter Observatory, 318
casein and caseinates, 382-3
cash accounting, 548
casinos, 276
cattle, 370-71, 372, 375, 376, 377, 379
caves, depth and length, 2
Cawthron Institute, 318
CCMAU (Crown Company Monitoring Advisory Unit), 46, 313
CEDAW (UN Convention on Discrimination Against Women), NZer on committee, 115
cellular phones, 247, 248
censorship, 259-61
Census of Population and Dwellings,
ethnic origins, 96, 117-9
households and dwellings, 101-5
incomes, 299
Maori population, 97-8
Pacific Island Polynesian population, 98-9
religious professions, 116-7
total population, 82-5
travel to work, 467
censuses of population, 1858-1991, 82
centenarians, Queen's telegrams to, 42
central government finance
accrual accounting, 546-7
appropriation process, 545-6
Crown banking arrangements, 547
expenditure, 545-7
fiscal responsibility, management and policy, 547-8
public debt, 561-5
revenue, see taxation
securities on issue, 542-3
CER (Australia New Zealand Closer Economic Relations
Trade Agreement), 60,434, 507
cereals, 388-9
Certificate of Fitness see Vehicle Inspection Certificate (VIC)
cervical screening programme, 160
Chamber Music New Zealand, 258
Chatham Islands, 1,13, 54, 370
cheese, 382-3, 494-5
cheques, better security for, 541
CHEs see Crown health enterprises chicken chatter, 385
production, 385-6
Child, UN Convention on the Rights of, 118
child abuse, 144
care subsidy, 138, 140
support, 113, 141, 554-5
childbirth
births and birth rate, 87
infant mortality, 167-9
maternal deaths, 168
maternity benefits, 155
parental leave, 307
childcare and pre-school education see education, kohanga reo
centres and playgroups, 193
Children, Office of the Commissioner for, 117
Children and Young Persons Courts, see Youth Courts
Service, 144-7
Children's Health Camps, 161
children
abuse of, 144
adoption, 147
care and protection services, 144-6, 147
community services card, 155
custody and guardianship, 145-6
day care for, 190, 192-3, 211
deaths of, 180
education of see education
family group conferences, 145-6
health of, 161-2
in care of Department of Social Welfare, 145-6
overseas, educated by Correspondence School, 195
pre-school, violent and accidental deaths, 180
UN Convention on Rights, 118
vaccinations & immunisations, 155, 161-2
youth justice services, 146-7
China, People's Republic of, relations and trade with, 61, 506
chiropractors, 154
CHOGM (Commonwealth Heads of Government Meeting), 71
Choral Federation, NZ, 258
chronology 1995, 17-19
of major economic reforms, 349
churches see religious profession
Churchill Memorial Trust fellowships, 62
cinema see film
cities and city councils (see also urban areas), 54
population of, 84-5
Citizens Advice Bureaux (CAB), 142-3
Initiated Referendum, 36
citizenship, 119-120
applications granted, 120
civil aviation, see aviation, civil defence, 181
jurisdiction of courts, 219-20
claims process, Maori land, 125
under Treaty, 125-7
CLANZ see Community Learning Aotearoa New Zealand
CLEAR Communications Ltd, 248
Clerk of the House of Representatives, 25, 30
of Writs, 45
climate, 7-12, 336, 413-14
extremes, 8
map, 9
Closer Defence Relations (CDR) with Australia, 60
Economic Relations (CER) with Australia, 60, 434
coal, 415-7, 423-5
coastal shipping, 454-7, 518-9
coat of arms, ii, 45, 56
coins and coinage, 541
colleges of education, 189, 201
Commerce Commission, 471, 476-7
1995 highlights, 476
Commerce, Ministry of, 40, 237, 251, 318, 413, 439
Commission for Sustainable Development (CSD), UN, 332, 340
Commissioner
of Crown Lands, 327-8
for Children, 117
for the Environment, Parliamentary, 49-50
Privacy, 48-9
Retirement, 142
Commissions of inquiry, 37
‘Wine box’, 37
Cave Creek, 37
Royal, 37
Commonwealth and CHOGM, 66, 71
Games Association (NZOCGA), 272, 273
Heads of Government Meeting (CHOGM), 71
Parliamentary Association (CPA), 28
Youth Programme, 270
communicable disease control, 157
Communications Division (Ministry of Commerce), 237, 251
Minister of, 237
Community Corrections Service (Department of Corrections), 228-30
Employment Group, 297-8
Funding Agency, 143-4
Learning Aotearoa New Zealand, 210
Support Groups, 235
Taskforce, 295
community boards, 55
education programmes, 210
housing, 447
law centres, 220,221
Maori, 128-30
programme (sentence), 229
programmes, funded by NZCFA, 143
service (sentence), 229
services card, 138, 155
welfare services
companies, 474-6, 481
insolvencies, 481
mergers of, 476
overseas origin, 476
practices of, 476
registration, 475
statistics, 476
taxation of, 557
international comparisons of GDP per capita, 348
compensation for criminal injuries, 228
accident, 173-6
Complaints Review Tribunal (human rights, race relations, privacy), 218
condoms, 160
Congress, Maori, 128-9
Conservation Authority, New Zealand, 341
Department of, 40, 318, 327, 338-41
boards, 341
of cultural property, 262
conservation of natural resources (see also environment)
forests, 395
legislative reform, 330-31
of water and soil, 333-4
Consolidated Accounts of the Nation, 351-2
constitution, 23
recent reform, 24-5
construction, see building and construction
consumer advice world-wide, 472, 473
Consumer Guarantees Act 1993, 473
consumer protection, 472-3
Consumers' Institute, 473
Consumers Price Index (CPI), 523-31
all groups, 524
all groups, all urban areas combined, 526
expenditure weighting, 523
geographic coverage and published series, 524
geographical variation, 529-30
groups, 526-9
housing, 528
index regimen, 523, 568
international comparison, 530-31
North and South Islands, 529-30
price movements, 523-31
price surveys, 524
selected items, 526
continuing education, 210
Controller and Auditor-General, 22,46-7
Convention on Discrimination Against Women (CEDAW), 115
convictions
drug offences, 225
non-traffic offences, 223-5
offences against the person, 224
property offences, 225
traffic offences, 227
violent offences, 224
Cook Islands, relationship with, 59
Cook Strait rail ferry service, 455-6, 462
copyright, 258-9, 268
licensing, 258
Core Services Committee, 151
corporations, government, see State-owned enterprises
Corrections, Department of, 40, 228-34
corrections system, 228-34
census of prison inmates, 231-3
community-based sentencing, 229-30
Community Corrections Service, 228-30
detention, 230-1
Psychological Service, 233-4
Public Prisons Service, 230-34
corrective training, 230
Correspondence School, 195, 210
educating children overseas, 195
cost of living, (see also Consumers Price Index, retail prices), 523-31
cot death see sudden infant death syndrome
Council for Educational Research, NZ, 188
country of birth, 119
Court of Appeal, 215-6, 223
courts (see also tribunals), 215-7
civil jurisdiction of, 219-20
Department for, 40
District, 216, 219, 223
Employment, 216-7
Family, 145, 217
High, 216, 219, 223
legal aid, 221
Maori Land and Appellate, 217
Niue Court of Appeal, 217
Youth, 217, 235
CPI see Consumers Price Index, 523-31
Creative New Zealand (Arts Council of NZ: Toi Aotearoa), 256
credit cards, 489, 538
crime, 221-8
benefit crime, 148
blood samples for investigations, 227
compensation for injuries, 228
DNA typing, 226, 227
new offences, 221-2
prevention, 224
proceeds of, 220
reported offences, 222
Criminal Investigations (Blood Samples) Act 1995, 227
criminal justice, 221-8
CRIs (Crown Research Institutes), 311, 313-17
Crop and Food Research, Institute for, 314
crops, 387-94
fruit, 390-93
grains, 388-9
seeds, 389
Crown Company Monitoring Advisory Unit (CCMAU), 46, 313
entities, 563
complaints about, 47
appearance at International Court of Justice, 221
health enterprises (CHEs), 151, 152, 563
complaints about, 47
appearance at International Court of Justice, 221
Law Office, 40, 220-1
appearance at International Court of Justice, 221
Minerals Act 1991, 333, 428
reporting entity, 563
Research Institutes (CRIs), 311, 313-17
solicitors, 221
Crown-owned entities, 46, 563
lands, 327-8
CSD (Commission for Sustainable Development), UN, 332, 340
Cultural Affairs, Ministry of, 41, 255
Ministers Council, Australia and NZ, 255
cultural sites, protection of, 262, 330
statistics, NZ framework for, 256
currency, 541
curriculum, national, for schools, 195-6
NZ curriculum framework, 195-6
Customs, New Zealand, 41, 491-2, 495
customs tariff and revenue, 492-3, 558-9, 560
CYPS (Children and Young Persons Service), 144-7

D

Dairy Board, NZ, 383
dairy farming and products
butter, 382-4
casein, 382-4
cheese, 382-4
exports, 382-4, 494-5
marketing of, 383-4
milk and milk products, 383-4
prices, 384
production index, 371-2
dance, 20, 257-8
data communications, 251
daycare, 193,211
daylight saving, 13
de facto relationships, 89, 110
de-mining assistance, 74-5
deaths and death rates, 90-92, 99-100
accidental, 176-80
Maori, 92, 125
of children, 180
rate (summary, 1901-94), 91
stillbirths, 167
deaths, drowning, 179, 180
falls, poisoning and other external causes, 179, 180
fire, 182
from cancer, 166-7
infant, 167
major causes, 165-6
maternal, 168
registration of, 86
road motor accidents, 177
summary (1885-1991), 90
debt
overseas, 361-2, 562, 564-5
private, see credit, mortgages
public, 561-5
deer farming, 370, 371, 375, 380
velvet, 520
Defence Force, NZ, 41, 73-9, 318
overseas activities, 74-6, map 68
community assistance, 75-6
New Zealand Army, 21, 22, 74-5, 78
overseas, 68, 74-5
Royal New Zealand Air Force, 78-9
Royal New Zealand Navy, 77-8
strength of, 78
Defence, Ministry of, 41, 73, 76
defence, 73-9
agreements, 74
community assistance, 75-6
disaster relief, 76
exercises, 75
expenditure, 76
international relationships, 74
locations in NZ (map), 77
personnel, 76
policy, 73
White Paper 1991, 73
degrees awarded, 204
demography, see population
Dental, Council, 152-3
dental benefits, 156, 164
services, 156
technicians, 154
fluoridation, 164
health, 164
School Dental Service, 164
dentists, 152-3
Department for Courts, 40
Department of Conservation, 40, 318, 327, 338-41
international involvement with biodiversity, 336-7
linked to the world of conservation, 340
Corrections, 40, 228-34
Internal Affairs, 42
Births, Deaths & Marriages Registry, 86
Dictionary of NZ Biography, 44
Ethnic Affairs Service, 117
Historical Branch, 43
Link Centres, 41
Labour, 43, 182-3, 283, 285, 290
Prime Minister and Cabinet, 43
Social Welfare, 44, 135, 141, 148
international unit, 141
Statistics (Statistics New Zealand), 44
publications, 589-91
Survey and Land Information (DOSLI), 44, 323-5, 327-8
international links, 324
departments, government, (see also State sector)
chief executives of, 39
expenditure by, 549-50
functions of, 40-46
departures, from country, 93-4
deportation, 123
Depression of the 1930s, 345
design, industrial, 319-20
overseas applications to register, 319-20
detecting French nuclear tests, 5
developing countries, relations with, 64-6,
Dictionary of NZ Biography, 44
dietitians, 154
diplomatic representatives overseas, 87, 90
Directory of Official Information, 47
disability allowance, 139-40
and illness, 159
disability support, 159
disabled persons
assistance and services for, 139, 140, 143-4
benefits for, see benefits and pensions
disaster relief, help in South Pacific, 76
Discrimination Against Women, Convention on, 115
diseases
AIDS, 158
communicable, control of, 157
occupational, 183
treated in public hospitals, 170
displaced persons, see refugees
Disputes Tribunals, 218
dissolution of marriage, 113
distance education, 195, 206, 210
overseas by Otago University, 210
District Courts, 216, 219, 223
district planning, 331
divorce, 113
DNA typing for criminal investigation, 226, 227
doctors, 152
dogs, police, 235
domestic purposes benefit see benefits
trade and services see retail trade and services
DOSLI see Department of Survey and Land Information
double taxation agreements, 60, 554
drinking, legal aspects of, 467-8, 474
drivers' licences, 467
driving offences, 227-88, 468-9
drownings, 179, 180
drugs and medicines, control of, 156-7
drug seizures, 235
drug testing in sport, 273
convictions for offences, 225
legal, control of, 156
misuse of, 157
offences involving, 223, 225
dwellings (see also households, housing), 101-105
landlords of, 103, 104
Maori see Maori population
number and type, 101, 104
occupants in, 102, 104
Pacific Island see Pacific Island population
tenure of, 102-3, 104-5
types of, 101, 104

E

Early Childhood Development Unit, 185
earnings, 299-302
Earthquake Commission, 181, 482-3
earthquakes, 5-6
reported from USA and UK, 7
in 1995, 6-7
ECO house, energy-saving, 419
Economic Research, New Zealand Institute of, 317
NZIER overseas links, 317
Economy Wide Census, 364
economy, 343-68
1930s Depression, 345
government intervention in, 343
international comparisons, 348
international competitive, 349
major reforms since 1984, 349
restructuring the, 347
Education and Training Support Agency (ETSA), 186, 293-4
Ministry of, 41, 186, 189-91, 212,
Review Office (ERO), 41, 186-7
education (see also examinations, schools, students, universities), 185-212
additional resources, 202
funding, 190
training, 207-8
resources, 202-3
administration of, 185-9
funding, 190
training, 207-8
resources, 202-3
advisory services, 202
funding, 190
training, 207-8
resources, 202-3
agencies, 185-8
funding, 190
training, 207-8
resources, 202-3
American Field Service student exchange, 193
funding, 190
training, 207-8
resources, 202-3
assessment of students, 196
funding, 190
training, 207-8
resources, 202-3
continuing education, 208, 210
funding, 190
training, 207-8
resources, 202-3
curriculum, 195-6
funding, 190
training, 207-8
resources, 202-3
distance, 195, 206, 210
funding, 190
training, 207-8
resources, 202-3
early childhood, 192-3
funding, 190
training, 207-8
resources, 202-3
Education Development Initiative (EDI), 198-9
training, 207-8
resources, 202-3
expenditure on, 189-91, 203-5
training, 207-8
resources, 202-3
Fulbright academic exchange programme, 207
training, 207-8
resources, 202-3
future plans, 212
training, 207-8
resources, 202-3
health, 162-4
training, 207-8
resources, 202-3
information studies and teacher librarians, 202
training, 207-8
resources, 202-3
information technology in, 252
training, 207-8
resources, 202-3
international comparisons, 199, 202, 203
training, 207-8
resources, 202-3
international students, 202
training, 207-8
resources, 202-3
internationalisation of, 191
training, 207-8
resources, 202-3
Maori language, 189, 193, 211-12
training, 207-8
resources, 202-3
Maori, 193-4, 197, 211-2
training, 207-8
resources, 202-3
national qualifications framework, 197-8
training, 207-8
resources, 202-3
national secondary qualifications, 195, 196-7
training, 207-8
resources, 202-3
numbers of institutions, 199
training, 207-8
resources, 202-3
Pacific Islands Plan, 210
training, 207-8
resources, 202-3
polytechnics, 189, 201, 205-7, 209
training, 207-8
resources, 202-3
post-compulsory, 203-10
training, 207-8
resources, 202-3
pre-school, 185, 190, 192-3, 211
training, 207-8
resources, 202-3
primary schools, 192-5
training, 207-8
resources, 202-3
private training establishments, 208
training, 207-8
resources, 202-3
public expenditure on, 190
training, 207-8
resources, 202-3
Reading Recovery, 202
training, 207-8
resources, 202-3
REAPs, 202
training, 207-8
resources, 202-3
Review Office, 41, 186-7
training, 207-8
resources, 202-3
Rotary student exchange, 194
training, 207-8
resources, 202-3
rural, 195, 202, 210
training, 207-8
resources, 202-3
Service Centres, 189
training, 207-8
resources, 202-3
Skill New Zealand, 209
training, 207-8
resources, 202-3
special education, 185, 191, 201-2
training, 207-8
resources, 202-3
student support, 191, 203-6
training, 207-8
resources, 202-3
teacher trainees, 202, 203
training, 207-8
resources, 202-3
teaching position numbers, 200-201
resources, 202-3
technical, 206-7
tertiary, funding of, 191
universities, 203-6
wananga, 201,208, 211-12
educational comparisons, OECD, 199
Educational Research, NZ Council for, 188
EECA see Energy Efficiency and Conservation Authority
EEZ (Exclusive Economic Zone), 75, 403
EFTPOS, 538
Egg Producers Federation, 386
eggs, 386
El Niño and southern oscillation, 11
elections, Clerk of Writs, 45
electoral boundaries (& maps), 34-5
local government, 55-6
Parliamentary, 33-6
results, 36
voting, 34
electoral boundaries (& maps), 34-5
referendums, 24
reform, MMP, 35
electorates, parliamentary
listed, 44th Parliament, 30-31
Maori, 35
maps, 34-5
Electricity Corporation of New Zealand, 417-8
electricity, 415-20
consumption of, 415-6, 419-20
generation of, 419
markets, 420
reticulation, 420
supply authorities, 420
embassies overseas (map), 61
emergency benefits, 138
emigration, 93-4
Employment Contracts Act 1991, 303-6
Court, 216-7, 305-6
Related Education Fund, 308
Service, New Zealand, 295-7
Tribunal, 217-8, 305-6
employment (see also labour force, labour relations, occupations, unemployment)
and human rights see Human Rights Commission
and training programmes, 293-8
assistance, 295-8
farm, 371
in manufacturing, 437-8
OECD comparisons, 296
of women, 284-6
recorded by Business Directory, 364-6
status, 285, 287-8
surveys of, 283-4
temporary workers, visas for, 122-3
Energy Efficiency and Conservation Authority (EECA), 414
energy, 413-28
and mineral production, 428
coal, 415-6, 423-5
electricity, 415-20
gas, 415-6, 421-2
geothermal, 415-6, 425-6
oil, 415-6, 421-2
renewable, 426-8
biofuels, 427
coal, 415-6, 423-5
electricity, 415-20
gas, 415-6, 421-2
geothermal, 415-6, 425-6
oil, 415-6, 421-2
renewable, 426-8
consumption, 415-7
coal, 415-6, 423-5
electricity, 415-20
gas, 415-6, 421-2
geothermal, 415-6, 425-6
oil, 415-6, 421-2
renewable, 426-8
demand and supply, 416
coal, 415-6, 423-5
electricity, 415-20
gas, 415-6, 421-2
geothermal, 415-6, 425-6
oil, 415-6, 421-2
renewable, 426-8
efficiency, 414, 419
coal, 415-6, 423-5
electricity, 415-20
gas, 415-6, 421-2
geothermal, 415-6, 425-6
oil, 415-6, 421-2
renewable, 426-8
forms of,
coal, 415-6, 423-5
electricity, 415-20
gas, 415-6, 421-2
geothermal, 415-6, 425-6
oil, 415-6, 421-2
renewable, 426-8
fossil, 421-5
geothermal, 425-6
policy, 413-5
primary, 415-7
renewable, 426-8
research projects 1994-95,415
review of energy research, 414-5
solar, 427-8
supply, 416-7
wave, 428
wind, 426
engineering industry, 435
Enterprise Allowance, 295
Survey, annual, 363
entertainment expenses, 556
Environment 2010, 330-31
Ministry for the, 41, 334, 335, 337-8
Parliamentary Commissioner for the, 49-50
environment (see also conservation of natural resources, planning), 329-38
and mineral exploitation, 333, 428-32
Antarctic, 328
biodiversity, 336-7
global issues, 335-8
recycling, 333
Resource Management Act 1991, 330-34
sustainable management, 332
Environmental Choice NZ, 321
Science and Research, Institute of (ESR), 315-6
environmental
directorates (in Ministry), 337-8
health, 156
issues, global, 335-8
labelling, 321
planning, 330-33
Equal Employment Opportunities (EEO) Trust, 115, 308
Opportunities Tribunal (now Complaints Review Tribunal), 218
equal employment opportunities (EEO), 39, 115, 307-8
pay, 307
ERO (Education Review Office), 41, 186-7
erosion, control of, 334
ESR (Institute of Environmental Science and Research), 315-6
Ethnic Affairs Service (Department of Internal Affairs), 117
ethnic groups in NZ, 96, 97, 98, 99, 118
ages of, 118
ethnic minorities, race relations, 114-5
ethnicity of population, 117-9
Maori, see Maori population
Pacific Island Polynesians, see Pacific Island population
see also race relations, Treaty of Waitangi
EU (European Union) relations with, 512-14
European countries, benefit reciprocity with some, 142
relations with, 62-3, 501-2, 506-7, 512-14
European Union (EU), 512-14
events, chronology of
in 1995, 17-19
in NZ history, 15-17
ex-nuptial births, 89
ex-overseas cars, registration of, 465
examinations, 186, 196, 197-9, 204
exchange rates, 543-4
excise duties, 491-2, 558-9, 560
Exclusive Economic Zone (EEZ), 75, 403
Executive Council, 31
exotic forests see planted production forests
expenditures, of households, 105-6
Export Price Index, 520
Volume Index, 521-2
exports, 493-8
agricultural (various), 377-83, 494-5, 497-8
agricultural, see agricultural marketing, of products
animal health products, 503
coal, 425
dairy produce, 382-4, 494-5
deer velvet, 520
Export Price Index, 520
Export Volume Index, 521-2
fish, crustaceans and molluscs, 409-10, 496-7
flowers, 392, 494
forestry products, 401-2, 495-6
fruit and nuts, 497-8
global overview, 506-7
growth and diversification of, 345-6
hats, 501
ironsand, 429
major commodities exported, 493-4
meat and edible offal, 494
seafood, 409-411,496-7
telecommunications equipment and systems, 504
Terms of Trade Index, 520
various commodities, 493-7
washing machines, 504
whips, 505
wool, 497
external migration, 93-4
transactions account of the national economy, 352

F

factories (see also manufacturing enterprises, occupational safety and health), 436-8
fair trading legislation, 471, 472
families (see also households), 87-90
Family Courts, 145,217
family assistance (see also benefits), 138, 554
child care subsidy, 138, 140
daycare, 193
group conferences, 145-6
overseas, 145
health, 159-60
law, 113, 144-7, 217
planning, 159
size, 89
support see also benefits, 138, 554
violence unit, 148
FAO (UN Food and Agricultural Organisation), 68, 371
MAF involvement in, 371
farm employment, 371
Farm Expenses Price Index, 372-3
farming, chicken chatter, 385
international, 372-4
organic, 388
protecting newborn lambs 381
see agriculture, livestock
venison, 380
farmland, sales of 325
farms, numbers and types, 369-71
fauna, see vegetation and wildlife
FCCC see UNFCCC
feature films, 260
Fellows of the Royal Society of New Zealand see FRSNZ
ferries, inter-island, 455-6, 462
fertiliser (see also topdressing), 409
fertility & population change, 86-90, 99-100
FIBV (International Federation of Stock Exchanges), NZ
Stock Exchange membership of, 478
Fiji, relations with, 59-60, 501
Film and Literature Board of Review, 261
film, 20-21, 255, 258, 260, 262-3
chronology of feature films, 260
films and video recordings, 288-9
censorship of, 259-61
New Zealand Film Archive, 262-3
New Zealand Film Commission, 258
films, classification and censorship of, 259-61
NZ features 1914-95, 260
NZ Film Archive, 262-3
NZ Film Commission, 258
finance, accounting, 547, 548
foreign currency credit ratings, 562
financial institutions, 537-40
fire and general insurance, 481-3, 485
Fire Service, NZ, 181-182
fire, deaths from, 182
firefighters' referendum, 36
fire fighting and prevention, 181-2, 341
first flag of NZ, ii, 56-7
fiscal responsibility of government 547-8
fish
catch, 404-5
exports, 408-10, 496-7
processing and marketing, 410-11
species, 404-5
stocks, assessment of, 408
fisheries
history of management, 406
legislation, 403
management past and present, 403, 406
Ministry of, 41, 403-4
protection, 75
research, 408
resources, 408
stock assessment, 404
Te Ohu Kai Moana (Treaty of Waitangi Fisheries Commission), 407-8
fishing
by foreign vessels, 405
foreign, 409
Industry Board, 410-411
foreign, 409
management, Maori, 406
foreign, 409
recreational, 274
foreign, 409
research, 314
foreign, 409
vessels, 405
foreign, 409
fitness and leisure, funding for, 269
Five Power Defence Arrangements, 74
flag, first New Zealand, ii, 56-57
NZ, 45, 56
flora, see vegetation and wildlife
flowers, exports, 392, 494
fluoridation, 164
Food and Agricultural Organisation (FAO), 68, 371
food
Australia and New Zealand food standards, 435
expenditure on, 106
prices, world-wide, 530-1
standards, 157-8
foodbanks, 149
footwear industry, 436
Foreign Affairs and Trade, Ministry of, 41, 59, 61, 191, 204, 335-6
foreign aid, 64-66
currency credit ratings, 562
exchange market, 543-4
currency debt, 564-5
exchange market, 543-4
policy, 59, 64-6
signals intelligence, GCSB, 80
trade, see overseas trade
forest funds, 341
parks, 338, 340
forest product exports, 401-2, 495-6
forest products, see timber and forest products
Forest Research Institute, 313, 399
Forestry Corporation Ltd, New Zealand, 396-7
Forestry, Ministry of, 42, 399
forestry and logging, 395-402
employment in, 397-8
exports, 401-2,495-6
private, 396-7
products, see timber and forest products
research into, 313
state, 396-7
training in, 398
forests, 13, 14, 435-7
conservation and protection, 371-5
foreign ownership, 397
native, 395, 399, 402, 398
ownership of, 396-7
planted production, 395-7, 398-9
planting of, 395-6
Foundation for Research, Science and Technology, 311-12
for the Blind, Royal, talking book library, and overseas links, 268
Framework Convention on Climate Change, UN, see UNFCCC
France, youth exchange with, 66
Fraud Office, Serious, 44, 478
freight, see cargo
French nuclear testing, 5, 69
detection of, 5
International Court of Justice case, 69
postage stamp, 69
Fringe Benefit Tax, 556, 560
FRSNZ (Fellows of the Royal Society of NZ), 316
fruit
export, 497-8
production, 390-1
fuels,
coal, 415, 416, 423-5
gas, 415, 416, 421-2
oil, 414, 416, 421-2
Fulbright educational and cultural exchanges, 207
full-time labour force and work, 285-7
funeral grant, 140

G

galleries, art, 261
gambling, 275-7
gaming, 276
gas, 415-7, 421-2
GATT (see also WTO), 69, 319, 336, 369
GCSB (Government Communications Security Bureau), 79-80
GDP see gross domestic product
gender analysis framework, Ministry of Women's Affairs, 116
gender see sex
gene (DNA) typing, 226
General Agreement on Tariffs and Trade (GATT) (see also WTO), 69, 319, 336, 369
Assembly see Parliament
general elections, 26, 29-31, 33-36
geographical features, 1-2
glaciers, 1
lakes, 2
mountains, 1
rivers, 2
geography, 1-14
Geological and Nuclear Sciences, Institute of, 315
geology (see also minerals and mineral products), 2-3, 5, 14
geothermal power, 415-6, 425-6
geriatric hospitals, 158
glaciers, 1
global environmental issues, NZ involvement, 335-8
warming, 335-8,413-414
glossary of statistical terms, 568-71
goat farming, 370, 375
gold, 429
Goods and Services Tax (GST), 492, 557, 560
government departments (see also State Sector),
audits of, 47
complaints about, 47
descriptions of, 40-46
expenditure by, 549-50
heads of, 39
Official Information Act, 47
government finance, see central government finance government fiscal responsibility, 547-8
government stock and securities, 562,564-565
Government, the, 31
Buildings, restoration, 38
Communications Security Bureau (GCSB), 79-80
Superannuation Fund, 42, 484
Governor-General, 23-4, 31
Governors see Vice-Regal representatives
graduates, university, 203-4
grain, 387-9
grape growing and wine production, 391-3
greenstone, 431
greyhound racing, 275-6
gross domestic product (GDP), 351, 353
by production group, 353
in constant prices, 355-9
index of, 357
per capita, 348
gross fixed capital formation, 354
GST (Goods and Services Tax), 492, 557, 560
guaranteed minimum family income, 554
guardianship, 113

H

Hakituatahi o Aotearoa, Te, first flag of NZ, ii, 56-7
handicapped child allowance, 139
persons, see disabled persons
harbours, see ports
Harmonised System, 491-2
hats, export of, 501
hazardous substances, 332
hazards, volcanic, 4
Health, Information Service, 164-5
Ministry of, 42, 151, 155, 157, 158, 160, 162, 163, 164, 169
Research Council, 152, 153
Sponsorship Council, 162
health (see also hospitals), 151-73
AIDS, 158
expenditure on, 156
alcohol consumption, 163-4, 165
expenditure on, 156
and causes of death, 165-168
expenditure on, 156
benefits, 155-6
expenditure on, 156
Children's Health Camps, 161
children's, 161-2
dental, 160, 164
disability support, 159
disability, 169
education, 162, 163-4
environmental, 156
expenditure, 152
family, 159-60
information technology in, 252-3
inspection, 156
insurance, 481-3, 485
Maori see Maori health
medical benefits, 155-6
mental, 158-9, 171-3
occupational overuse syndrome (OOS), 183
occupational, 182-3
professionals, 152-4
promotion, 162, 163
public, 156-69
research, 21, 152, 153
sector reforms, 151-2
service structure, 151-2
statistics, 165
voluntary sector, 158
women's, 160-1
heritage, historical and cultural, 21, 261-4
preserving, 43
HES (Household Economic Survey), 107
High Court, 216, 219, 223
Higher School Certificate, 197
highways, 463-465
Hillary Commission for Sport, Fitness and Leisure, 269-270, 273-5
hire purchase, 488
historic places, 262
reserves, 262, 340
sites, 450
Historical Branch, Department of Internal Affairs, 43
history (1300-1995), NZ, 15-17
Hocken Library, 268
holidays, 306-7
and leave worldwide (graph), 307
home appliances, 107-8
nursing and home help, 156
ownership, 102-3, 104-5, 445-7
homeseekers lending, 445-7
homicide, 179-80,222,224
honey, 386
honours, 18, 23
Order of New Zealand, 23
horse racing, 275-7
horses, export of, 275,511
Horticulture and Food Research, Institute of, 314
horticulture (see also crops), 369-70, 372, 390-2
exports, 493-4,497-8
flower exports, 392,494
hospitals, 169-73
administration, 169
charges, 155
diseases and conditions treated, 170
geriatric, 156, 158, 169
injury and accident patients, 171
inpatients discharged, 169
length of stay, 169, 170
mental health facilities, 170, 171-3
patients treated, 169-1
public, 169-71
hotels and restaurants, 474,486-8
hours of work, 306
House of Representatives, see Parliament
Household Economic Survey see HES
Labour Force Survey, 283-90
households, 101-8
amenities of, 107-8
composition of, 101-4
income & expenditure, 105-8
transport, 105, 107
Housing Corporation of NZ, 42,446-7
Ministry of, 42, 447
New Zealand Limited, 447
housing (see also buildings, dwellings)
community programmes, 447
construction, 448-51
costs of, 444, 449-50
expenditure on, 106-7
government agencies, 446-7
home ownership, 102-3, 444
loans for, 445-6
Maori, 103-5, 445-6
market, 443-4
Pacific Island Polynesians, 103-5
rental, 445-6
Human Rights Act 1993, 25
Commission, 114
human rights, 114-22
promotion of equal employment opportunities, 39, 115, 307-8
humanitarian relief and human rights overseas, 67, 68
hunting and shooting, 274
hydro-electric power, 415-20

I

IBRD (World Bank), 70
ICAO (International Civil Aviation Organisation), 458
IEA (International Energy Agency), 71
illness, disability and, 139
ILO (International Labour Organisation), 457
NZ membership of, 305
IMF (International Monetary Fund), 359, 362-3
immigration, 93-4, 121-3
country of birth, 118
from Asia, 93-4
from Pacific, 93-4
immunisation, 162
IMO (International Marine Organisation), 457
Import Price Index, 519
Volume Index, 521
imported cars, 499
registration, 465
imports, 498-500
Import Price Index, 519
Import Volume Index, 521
major commodities imported, 498-9
mechanical and electrical machinery, 499
mineral fuels, 500
plastic and plastic articles, 500
Terms of Trade Index, 520
vehicles, 499
imprisonment, see prisons and prison inmates imputation credits, 556
Income Support Service, NZ, 135-6
income support, 135-43
income tax,
companies, 557
personal, 552-4, 556
revenue from, 560
incomes, 299-302
of households, 105-6
indemnification for touring exhibitions, 255
Independent Broadcasting Association, 243
Index New Zealand (INNZ), 267
Index of Gross Domestic Product, 357
indexes, explained, 568
indexes, listed
Capital Goods Price Index, 533
Consumers Price Index, 523-31
Export Price Index, 520
Export Volume Index, 522
Farm Expenses Price Index, 372-3
Import Price Index, 519
Import Volume Index, 521
Index of Gross Domestic Product, 357
Labour Cost Index, 302-3
Prevailing Weekly Wage Rates Index (discontinued), 302
Producers Price Index, 531-2
Real Wage Rate, 300-302
Terms of Trade Index, 520
Indigenous People, UN World Decade for, 69
Industrial Research, Institute of, 315
industrial accidents, 180
design, 319-20
relations see labour relations
safety, see occupational safety
structure of labour force, 288-9
Industry Labelling Body (films and videos), 260
Training Organisations (ITOs), 294, 392, 398
industry, see manufacturing industry
infant mortality, 167
inflation, see Consumers Price Index
information technology, 251-3
education, 252
health, 252-3
industry, 251-2
National Library, 267
policy, 251
information, matching, 48-9
privacy of, 48-9
Infoserve (National Library business information service), 267
injuries, compensation for criminal, 228
hospital patients treated for, 171
road motor accidents, 177
rugby, preventing, 274
sports, claims for, 274
Inland Revenue Department (see also taxes and taxation), 42,552-8
insolvency, 479-81
Instant Kiwi, Daily Keno, Lotto (gambling), 276, 277
Institute of Environmental Science and Research, 315
Geological and Nuclear Sciences, 315
Insurance and Savings Ombudsman, 482
Insurance Council of NZ, 482-3
insurance, (see also superannuation), 481-6
accident, 173-6
earthquake damage, 181, 482-3
fire and general, 482-3, 485
life, 481-3, 485
medical, 485
natural disaster, 181
Ombudsman, 482
overseas involvement in, 482-3
regulation, 481-2
Integrated Digital Network (ISDN), 246-7
inter-industry studies, 352-3, 363-4
inter-island ferry services, 455-6, 462
Inter-Parliamentary Union (IPU), 28
NZ MPs in, 28
interest rates, see monetary policy, mortgages
interest, tax on, 556
Internal Affairs, Department of, 41, 42, 43, 44, 86, 117
internal migration, 84
International Bank for Reconstruction and Development (IBRD), 70
Civil Aviation Organisation (ICAO), 458
Exchange membership, 478
Commission of Jurists (ICJ), 217
Exchange membership, 478
Court of Justice, NZ case on French nuclear testing, 69, 221
Exchange membership, 478
Development Association (IDA), 70
Exchange membership, 478
Federation of Stock Exchanges (FIBV), NZ Stock
Exchange membership, 478
Finance Corporation (IFC), 70
Labour Organisation (ILO), 457
Marine Organisation (IMO), 457
Monetary Fund (IMF), 359, 362-3
Organisation for Standardisation (ISO), 321, 435
Organisation of Securities Commissions (IOSCO), 477
Science and Engineering Fair, NZ students at, 312, 320
Whaling Commission (IWC), 336
international agricultural policies and farming, NZ's relationship with, 371, 372-4
airline services, 459-60
abortion rates, 168
alcohol consumption, 163-4
beer prices, 165
consumer prices and CPI, 530-1
daily television viewing, 241
defence expenditure, 76
education, 199, 202-4
employment, 296
ex-nuptial births, 89
farming, 372-4
GDP per capita, 348
home ownership, 443
infant mortality, 167
leave and holidays, 307
life expectancy (historical), 92
medical prices, 157
motor accident death rates, 178
newspaper sales, 244
OECD, 202, 296
personnel in r & d, 312
postal prices, 250
press freedom, 254
residential telephone charges, 247
standards of living, 108
unemployment, 296
credit rating agencies, 562
defence relationships, 74-5
education (Ministry of Education), 191
fraud, Serious Fraud Office action against, 478
investment position, NZ's, 362-3
money-laundering, inter-departmental group against, 478
organisations, participation in, 67-71
relations (Chapter 4), 59-72
roading organisations, Transit NZ links with, 464-5
comparisons
abortion rates, 168
alcohol consumption, 163-4
beer prices, 165
consumer prices and CPI, 530-1
daily television viewing, 241
defence expenditure, 76
education, 199, 202-4
employment, 296
ex-nuptial births, 89
farming, 372-4
GDP per capita, 348
home ownership, 443
infant mortality, 167
leave and holidays, 307
life expectancy (historical), 92
medical prices, 157
motor accident death rates, 178
newspaper sales, 244
OECD, 202, 296
personnel in r & d, 312
postal prices, 250
press freedom, 254
residential telephone charges, 247
standards of living, 108
unemployment, 296
credit rating agencies, 562
defence relationships, 74-5
education (Ministry of Education), 191
fraud, Serious Fraud Office action against, 478
investment position, NZ's, 362-3
money-laundering, inter-departmental group against, 478
organisations, participation in, 67-71
relations (Chapter 4), 59-72
roading organisations, Transit NZ links with, 464-5
Internet, 1, 7, 251-2, 263, 317, 508, 551
earthquake information by, 7
Ruapehu eruption on, 1
Treasury on, 551
Tradenz on, 508
Interpol, NZ links with, 234
introduced plants and animals, 13
invalids benefit see benefits
IOSCO (International Organisation of Securities Commissions), 477
iron (see also steel making), 428-9
ISDN (Integrated Digital Network), 246
islands, outlying, 1
ISO (International Organisation for Standardisation), 320-1, 435
ITOs (Industry Training Organisations), 294
Forestry, 398
Horticulture, 392
IWC (International Whaling Commission), 336
iwi locations (map) and developments, 128
publications, 245
Maori Congress, 128-9
Treaty settlements, 126

J

Japan, relations with, 61, 506, 509
student and youth exchanges with, 117, 194, 199
Job Plus, 295
job protection (parental leave), 307
search allowance, 137
judges and judiciary, 215-7
Jurists, International Commission of (ICJ), NZ connection, 217
jury service, 220
justice
convictions, 223-5, 227
criminal, 221-8
Ministry of, 42
sentencing, 225-8
system of, see courts, law

K

kai o te moana kaupapa tiakina. nga, 406
Kermadec Islands, 1
kindergartens, 190, 192-3, 211
KiwiAble, sport & leisure programmes for disabled, 270
kiwifruit, exports, 497-8
production, 391
Kiwinet (National Library information network), 266
kohanga reo, 129, 193, 199, 200, 211
Korea, relations with, 61, 506, 510
Korowai Aroha Aotearoa, Te, 112
kura kaupapa Maori, 211

L

labelling, environmental, 321
laboratory technologists, medical, 154
Labour Cost Index (LCI), 302-3
labour force (see also employment, unemployment), 283-90
definition of, 283
employment status, 287-8
full-time, 285-7
Household Labour Force Survey, 283-90
industrial structure, 288-9
market, international organisations, 305
occupational structure, 289-90
OECD comparisons, 296
part-time, 285, 286, 288
participation rates, 283-4
Quarterly Employment Survey, 283, 285-7, 300
survey of, 283-4
women in, 284-5
labour market organisations, 335
labour relations, (see also unions, work stoppages), 303-10
bargaining arrangements, 304
disputes, 216-7, 217-8
hours of work, 306
minimum entitlements, 306
personal grievances and disputes, 304
public and annual holidays, 306
rights and obligations, 304
specialist courts, 216-8
strikes and lockouts, 305, 308-10
Labour, Department of, 43, 182-3, 283, 290-1
lakes, area of, 2
lamb, 369, 370, 375-6, 377, 378
Land Corporation, 328
Information System (LIS), 324
Transport Fund, 464, 559
Transport Safety Authority, 176-8, 467
Valuation Tribunal, 325
land
agricultural, 329-30, 370-1
area, total, 1, 329-30
controls on acquisition, 325-6
Crown, 327-8
leasehold, 327-8
Maori Trustee 326
Maori, 326-7
Queen's Chain 325
recreational, 338-41
registration of ownership, 324-5
surveys of, 323-4
transfers of, 324-6
use of, 325, 329
valuation of, 328
Landcare Research NZ Ltd, 314
language translation services, 501
Maori see reo Maori
Latin America and Caribbean countries, relations with, 62
latitude and longitude, 1
Law Commission, 219
law, lay observers, 218
Legal Services Board, 221
sources of, 218-9
laws, 25
lay observers, 218
lead-rubber bearings, used overseas, 448
leap second, 13
Learning Media Limited, 187
leasehold land, 327-8
leave and holidays worldwide (graph), 307
for employees, 307
annual, special, parental, 307
international comparisons, 307
legal aid, 220, 221
Legal Services Act 1991, 220
Services Board, 221
legal system, 215-21
tender, 541
legislation, 25
leisure activities, outdoor, 274-5
Liable Parent Contribution Scheme, 554-5
libraries and books, 264-8
libraries, Alexander Turnbull 75th anniversary, 265
library education, 265
National Library information online, 267
National Library of NZ, 43, 265-7
NZ Library and Information Association, 266
professional librarians, 266
public and educational, 265
RNZFB National Braille and Talking Book Library, 268
teacher librarians, 202
Turnbull Library (and 75th anniversary), 265, 267
Library and Information Association, NZ (NZLIA), overseas links, 266
life expectancy, 91, 92, 99-100
1960 to 1992, 125
international comparisons, 108
Maori, 125
summary (1885-1991), 90
life insurance, 481-3,485
lighthouses, 457
Limited Service Volunteer scheme (defence), 76
Link Centres, 41
liquidation, of companies, 481
liquor licensing, 474
liquor, see alcohol
LIS (Land Information System), 324
literature, 21, 260, 264-8
livestock, 369, 370, 375-8
cattle, 369, 370-1, 375-8
deer farming, 370-1, 375
distribution of, 375
goat farming, 370-1, 375
health services for, 373-4
pigs, 370-1, 375-6, 384
poultry, 385-6
quarantine of, 373-4
sheep, and sheep farming, 369, 370-71, 375, 376, 377, 379-82
local authorities (see also local government), 50-56, maps 52-3
population of, 85-6
rating and valuation, 328, 565
roading, 464-5
statistics, 565
local bodies and sister cities overseas, 51
Local Government Commission, 56
local government, 50-56
Auckland Regional Services Trust, 55
boundaries, 52-3
community boards, 55
elections and membership, 55
finance, 565-6
legislation, 51
organisation, 51
regional councils, 51, 54
regions, population of, 87
sister cities, 51
special purpose local authorities, 55
territorial authorities, 54
unitary authorities, 55
lockouts, 305, 308, 310
lotteries and lotto, 131, 143, 255, 276, 277
lottery profits, allocation, 276
Lotto, Instant Kiwi, Daily Keno (gambling), 276, 277

M

magazines, 244-5
mail services, 248-51
major trading partners, 500-14
Mana Enterprises Scheme, 297
Mangai Paho, Te, Maori broadcasting, 238
manufacturing industry, 433-42
assistance to, 437-9
enterprises, 436-7
geographical distribution of, 440-41
groups, 435-6
growth issues, 434-5
quarterly survey of, 439, 442
sectors, 435-6
manufacturing statistics, 439
Maori (see also Maori education, Maori health, Maori population, Treaty of Waitangi)
arts board of Creative NZ, Te Waka Toi, 256
international links, 128
kokiri centres, 129
Te Ohu Kai Moana, 407-8
Te kaitiaki Maori (Maori Trustee), 326
broadcasting, 238, 239
international links, 128
kokiri centres, 129
Te Ohu Kai Moana, 407-8
Te kaitiaki Maori (Maori Trustee), 326
community services, 112, 128-30
international links, 128
kokiri centres, 129
Te Ohu Kai Moana, 407-8
Te kaitiaki Maori (Maori Trustee), 326
Congress, 128-9
international links, 128
kokiri centres, 129
Te Ohu Kai Moana, 407-8
Te kaitiaki Maori (Maori Trustee), 326
Council, New Zealand, 128
international links, 128
kokiri centres, 129
Te Ohu Kai Moana, 407-8
Te kaitiaki Maori (Maori Trustee), 326
Development, Ministry of (Te Puni Kokiri), 43, 126-7, 326, 327
international links, 128
kokiri centres, 129
Te Ohu Kai Moana, 407-8
Te kaitiaki Maori (Maori Trustee), 326
education see Maori education
kokiri centres, 129
Te Ohu Kai Moana, 407-8
Te kaitiaki Maori (Maori Trustee), 326
electorates, 35
kokiri centres, 129
Te Ohu Kai Moana, 407-8
Te kaitiaki Maori (Maori Trustee), 326
employment and training of, 294, 297
kokiri centres, 129
Te Ohu Kai Moana, 407-8
Te kaitiaki Maori (Maori Trustee), 326
first Expo, 129
Te Ohu Kai Moana, 407-8
Te kaitiaki Maori (Maori Trustee), 326
fisheries, 405-8
Te Ohu Kai Moana, 407-8
Te kaitiaki Maori (Maori Trustee), 326
geographical distribution, 124
Te kaitiaki Maori (Maori Trustee), 326
health see Maori health
Te kaitiaki Maori (Maori Trustee), 326
Heritage Council, 262
Te kaitiaki Maori (Maori Trustee), 326
heritage, 21
Te kaitiaki Maori (Maori Trustee), 326
housing, 103-5, 445-6
Te kaitiaki Maori (Maori Trustee), 326
international links (Te Puni Kokiri), 128
Te kaitiaki Maori (Maori Trustee), 326
iwi, 128
Te kaitiaki Maori (Maori Trustee), 326
justice, 231-2, 326-7
Te kaitiaki Maori (Maori Trustee), 326
kohanga reo, 129, 193, 199, 200, 211
Te kaitiaki Maori (Maori Trustee), 326
kura kaupapa, 194
Te kaitiaki Maori (Maori Trustee), 326
Land and Maori Appellate Court, 217, 326
Te kaitiaki Maori (Maori Trustee), 326
land claims process, 125
Te kaitiaki Maori (Maori Trustee), 326
land, 326-7
Te kaitiaki Maori (Maori Trustee), 326
language see reo
population see Maori population
newspapers, 245
reo (language), 130, 129-31, 190, 193, 194, 199-200, 211-12
Language Year, 129, 131
research, 188
software, 130
Taonga te Reo (Maori Language Year), 129, 131
Te Mangai Paho (broadcasting), 238
Te Ohu Kai Moana (Treaty of Waitangi Fisheries Commission), 407-8
Te Puni Kokiri, 43,126-7, 326, 327
tourism, 280
training & employment assistance, 294, 297
tribal (iwi) locations (map) & developments, 127
Trust Office, 326
Waikato raupatu settlement, 126-7
wardens, 129
weaving, 20
Women's Welfare League, 22, 129
women, 125, 129
Maori education, 189-90, 201, 208, 211-12
early childhood education, 211
kohanga reo, 129, 193, 199, 200, 211
kura kaupapa, 194
Maori Education Foundation, 189
Maori Education Trust, 189-90
research, 188
secondary school leavers, 197, 198
students in education, 211
tertiary education, 208, 211-12
unit of Education Review Office (ERO), 187
wananga, 201, 208, 211-12
Maori health, 21, 167
children's health, 161-2
infant mortality, 167
life expectancy, 92, 125
Maori Women's Welfare League, 129
mental health, 158-9
Maori population
Maori population, age distribution, 95, 96, 98, 118-9
age and sex/gender of, 97-8, 123-5, 156-8
birth and death rates of, 97-8, 123-5
changes, 97, 125
ex-nuptial births, 89-90
fertility, 90, 97-8
geographical distribution, 124
households & dwellings, 103-5
infant mortality, 167
life expectancy, 92, 125
Maori-Pakeha relations, 115
mapping, 323
marine parks and reserves, 340-41
pollution, 335, 455, 457
wildlife, 340-1
marital status, 109-110
Maritime Safety Authority, 456-7
marketing authorities for agricultural products,
apples and pears, 390
dairy products, 383
kiwifruit, 391
meat, 379
marriage and marriages, 108-113
marriage, age at, 89, 110-12
celebrants, 86, 108-9
counselling, 112
dissolution, 113
legislation, 113
rate of, 89
rates, 109
marriages, registration of, 86
mass media, 237-46
maternal deaths, 168
maternity benefits, 155
leave, 307
meat and meat products, 377-80
beef, 377
chicken, 385-6
consumption, 379
exports, 379-80, 494
pigmeats, 384-5
prices, 378-80, 494
NZ Meat Producers Board, 379
processing, 377
sheepmeats, 377
veal, 377
venison, 380
media, 237-46
advertising, 245-6
broadcasting, 237-44
magazines, 245
newspapers, 244-5
Press Council, 244
press freedom, NZ in international ranking, 254
radio, 242-4
television, 237, 239-41
medical benefits, 155-6
Medical Council, 152
medical insurance, 481-3, 485
laboratory technologists, 154
practitioners, 152
radiation technologists, 154
medicines and drugs, control of, 156-7
Members of Parliament, 26, 30-31
listed, 30-31
salaries and allowances, 28-9
mental health, 190, 203-5
facilities, 170, 171-3
merchandise imports, controlling, 346
merchant banks, 539
merchant navy qualifications, 456
metals, 428-9
gold, 429
industry, 430
iron, 428-9
meteorology, see climate
MetService weather graphics in Australian newspapers, 7
MFAT (Ministry of Foreign Affairs and Trade) see Ministry of Foreign Affairs
Middle East, relations with, 63, 503
midwives, 153
migration
and immigration, 93-4, 99-100, 121-3, 132
external, 93-4
internal, 84
military pensions, 141
milk and milk products (see also dairy products), 382-4, 494-5
mineral exploitation, 333, 428-32
fuels, imports and supplies, 500
minerals and mineral products (see also mining), 428-32
coal, 415-6, 423-5
metallic, 428-9
non-metallic, 429-31
production, 428, 430, 432
minimum wage, 306
mining (see also minerals and mineral products), 423-5, 428-32
and quarrying statistics, 431
laws on, 333
Minister of Senior Citizens, 148
Ministers of the Crown
list of, 32-3
salaries and allowances of, 28-9
Ministry for the Environment, 41, 334, 335, 337-8
overseas links, 329, 330, 332, 333, 335-8
Ministry of Agriculture (MAF), 40, 318, 373-4, 389
Civil Defence, 181
international activities, 191
international connections, 170
Commerce, 40, 237, 251, 318, 413, 439
international activities, 191
international connections, 170
Consumer Affairs, 471, 472-3
international activities, 191
international connections, 170
Cultural Affairs, 41, 255
international activities, 191
international connections, 170
Defence, 41,73, 76
international activities, 191
international connections, 170
Education, 41, 186, 189-191
international activities, 191
international connections, 170
Fisheries, 41, 403-4
international connections, 170
Foreign Affairs and Trade (MFAT), 41, 59-72, 191, 204, 335-7; overseas posts (map), 61
international connections, 170
Forestry, 42, 399
international connections, 170
Health, 42, 151, 155, 156, 157, 158, 160, 162-3, 164, 169
international connections, 170
Housing, 42, 447
Justice, 42
Maori Development (Te Puni Kokiri), 43, 126-7, 326, 327
international links, 128
Pacific Island Affairs, 43, 133-4
Research, Science and Technology, 44, 311
Transport, 45, 453
Women's Affairs, 45, 116
Youth Affairs, 46, 116, 270, 298
MMP referendum, 24
monetary policy, 541-2
money, 541-4
monopolies, 476-7
mortality (see also deaths and death rates), 90-92
mortgages, 445-6
Housing Corporation, 446-7
interest rates of, 445
motor vehicle industry, 435
Motor Vehicles Securities Register, 466
motor vehicles, 465-9
inspection, 467
registration and licensing, 465-6
motorcycles, racing, 19-20
registration, 463
mountain biking, 275
mountaineering and tramping, 274-5
mountains, height of, 1
movable public holidays, 306
MPs, after 1990 election, 30-31
salaries and allowances, 28-9
travel overseas, 28
women, 29
multilateral affairs (MFAT), 65,66
assistance, 66
murder, 179-80, 222, 224
Museum of New Zealand Te Papa Tongarewa, 261
museums and art galleries, 261
music, 20-21,21, 257, 258

N

NACEW (National Advisory Council on the Employment of Women), 284-5
narcotics, see drugs
National Accounts, NZ System of (NZSNA), 350-8
Advisory Committee on Health and Disability (Core Services Committee), 151
online information, 267
Advisory Council on the Employment of Women (NACEW), 284-5
online information, 267
Archives, 263-4
online information, 267
Cervical Screening Programme, 160
online information, 267
Drug Intelligence Bureau, 235
online information, 267
Fish and Game Council, 341
online information, 267
Institute of Atmosphere and Water Research (NIWA), 315
online information, 267
Library of NZ, 43, 265-7
online information, 267
Parole Board, 233
Provident Fund, 43, 484
War Memorial, carillon, 45
national anthems, 45, 56-7
collection of art and culture, 261-4
disposable income, 351-2
emblems and anthems, 56-7
income and outlay, 351-2
parks (see also forest parks, reserves), 338-40
planning, environmental, 330-33
native plants and animals, 12-13
natural disaster insurance, 181
gas, 415-7, 421-2
history TV programmes made and sold overseas, 240
increase of population, 86-90, 94, 99
nature reserves, 340
nautical charts for South Pacific, 75
navigational aids, 457, 458, 459
navy (Royal NZ Navy), 77-8
neighbourhood law offices, 220
New Zealand, overseas posts, 59-63, map 61
newspapers and magazines, 244-5
Newzgram sending NZ news overseas, 249
Niue, Court of Appeal, 217
relationship with, 59
NIWA (National Institute of Atmosphere and Water Research), 315
non-resident companies, taxation on, 557
North Island, population of, 83
nuclear science, 315
testing, French, 5, 69
nurses, 153
Nursing Council of NZ, 153
NZ AIDS Foundation, 158
NZ Antarctic Institute, 313
NZ Antarctic Programme, 328
NZ Apple and Pear Marketing Board, 390
NZ Army, 21, 22, 74-5, 78
NZ Arts Assembly, 269
NZ Australia Closer Economic Relations Trade Agreement (CER), 60, 434, 507
NZ Bankers' Association, 538-9
NZ Bibliographic Network (NZBN), 267
NZ Cadet Forces, 75
NZ Children and Young Persons Service (NZCYPS), 144-7
NZ Choral Federation, 258
NZ Community Funding Agency, 143-4
NZ Conservation Authority, 341
NZ Council for Educational Research (NZCER), 188
NZ Council of Trade Unions, 303
NZ Customs, 41, 492, 495
NZ Dairy Board, 383
NZ Defence Force, 41, 73-9
NZ Employers' Federation, 115, 303
NZ Employment Service, 295-8
NZ Family Planning Association, 158
NZ Film Archive, 262-3
NZ Film Commission, 258
NZ Fire Service, 181-82
NZ Fish and Game Council, 341
NZ Fishing Industry Board, 410-11
NZ Forestry Corporation Ltd, 396-7
NZ Government stock and securities, 542-3, 562, 564-5
NZ Government, the, 25-33
NZ Health Information Service, 164-5
NZ Historic Places Trust, 262
NZ Household Economic Survey (HES), 107
NZ Income Support Service, 135-36,446
NZ Institute of Economic Research (NZIER), 317
NZ Kiwifruit Marketing Board, 391
NZ Library and Information Association (NZLIA), 266
NZ Lotteries Commission, 276, 277
NZ Lottery Grants Board, 277
NZ Maori Council, 128
NZ Meat Producers Board, 379
NZ Olympic & Commonwealth Games Association (NZOCGA), 19, 72, 273
NZ On Air (Broadcasting Commission), 237-8, 239, 241, 242, 244
NZ Patent Office, 318-19
NZ Police, 22, 43, 234-5
overseas officers and Interpol, 234
NZ Pork Industry Board, 384-5
NZ Post Ltd, 248-51
membership of UPU (Universal Postal Union), 248
overseas postal services, 250-1
NZ Press Council, 244
NZ Qualifications Authority, 186
NZ Rail Ltd see Tranz Rail, 509-11
NZ Sports Drug Agency, 273
NZ Sports Foundation, 272-3
NZ Standard Time, 13
NZ Stock Exchange, 478-9
NZ superannuation, 137, 139, 140, 555
portability, 143
NZ Symphony Orchestra, 257
NZ System of National Accounts (NZSNA), 350-58
NZ territories, 71-2
NZ Tourism Board, 45, 281
NZ Trade Development Board (Tradenz), 45
NZ Translation Centre, 501
NZ Translation Service (Department of Internal Affairs), 501
NZ Water Safety Council, 178-9
NZ Workers' Educational Association (WEA), 210
NZ-France friendship fund, 66
NZ-United States Educational Foundation, 207
NZCER (New Zealand Council of Educational Research), 188
NZIER (NZ Institute of Economic Research) overseas links, 317
NZLIA (NZ Library and Information Association) overseas links, 266
NZODA (NZ Official Development Assistance), 64-6
NZQA (NZ Qualifications Authority) overseas links, 186
NZSNA (New Zealand System of National Accounts), 350-8

O

obituaries 1995 (individual names not indexed), 19-22
occupational overuse syndrome (OOS), 183
occupational safety and health, 182-3
Service (OSH), Department of Labour, 183
occupational structure of labour force, 289-90
occupational therapists, 153-4
occupations, 288-90
Oceanic Control System (OCS), for aircraft navigation, 459 of Airways Corporation, overseas use of, 459
OECD (Organisation for Economic Co-operation and Development), 71, 186, 434
agricultural directorate, NZ involvement in, 371
comparisons, 202, 296
educational links, 191
environmental links, 329
trade and environment, 336
labour and unemployment information, 305
labour force comparisons, 296
scientific involvement, 311
offences, 222
Office of Film and Literature Classification, 260
Office of Treaty Settlements, 43, 126
Official Development Assistance (ODA), 64-6
Official Information Act, 47
official information, Directory of, 47
links with the world, NZ's, 65
visitors from overseas, 45
oil, 415-17, 421-2
crisis, 346
imported, 414
security, 414
Olympic Games, 272
Ombudsman, Insurance and Savings, 482
Ombudsmen, 47-8
complaints to, 48
OOS (occupational overuse syndrome), 183
Open Polytechnic of New Zealand, The (TOPNZ), 206
optometrists and opticians, 154
Order of NZ (ONZ),23
overseas honorary member, 23
Organisation for Economic Co-operation and Development see OECD
orphans benefit see benefits
outdoor leisure, 274-5
outlying islands, 1
Overseas Development Assistance (ODA), 64-6
overseas
aid, 64-6
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
applications for patents, trade marks and designs, 319-20
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
assistance, 64-6
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
balance of payments, 359-60
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
cargo loaded and unloaded, 514-8
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
companies, 476
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
country of birth, 119
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
debt (outstanding liabilities of NZ to the rest of the world), 361-2, 561,562, 564-5
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
exchange transactions, 543
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
Honorary Fellows of the Royal Society, 316
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
honorary member of ONZ, 23
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
operators in coastal shipping, 454
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
postal services, NZ Post, 250-1
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
representation (map), 61
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
shipping services, 454-5, 456
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
students, 202, 204
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
trade (Chapter 25) (see also exports, imports, shipping), 491-522
balance of merchandise trade, 492-3
exports, 493-8
imports, 498-500
major trading partners, 500-14
overseas cargo, 514-8
overseas trade indexes, 519-22
global overview, 506-7
indexes, 519-22
visitors, 280
ozone depletion in 1995, 10
depletion, Montreal Protocol, 336
depletion, over NZ, 10

P

Pacific countries, relations with, 59-60, 65
Pacific Forum Line, 60
Pacific Island Affairs, Ministry of, 43, 133-4
Pacific Island population, 98-9, 132-4
age distribution of, 95, 96, 132-3
Business Development Trust, 133
employment and training, 133-4, 297
geographical distribution, 133
households & dwellings, 103-5
professional development, 134
Western Samoan immigration quota, 122
Anau Ako Pasifika project, 193
Arts Committee (of Creative NZ), 256
Education Plan, 210
Industrial Development Scheme (PIIDS), 60
language groups, 193
mental health, 158-9
secondary school leavers, 197, 198
PADET (Peace and Disarmament Trust) fellows to Canberra, 66
PAFT (Parents As First Teachers), 193
paper, imports, 498
production, 400-401
research, 313
Paralympics, 273
parental leave, 307
Parents as First Teachers, 193
parks (see also reserves),
forest, 339, 340
marine, 340-1
national, 338-40
Parliament see also elections, 23-4, 25-36
Parliament, by-elections, 26
elections to, 33-6
House of Representatives, 25
inter-Parliamentary relations, 28
legislative procedures, 26-7
members of, 30-1
MMP in, 33
opposition, 25, 30-1
Parliamentary Service, 27-8
political parties in, 25-6
proceedings, 28
salaries and allowances, 28-9
sessions of, 27, 28
Speaker, 25
Standing Orders, 25
women in, 29
Parliamentary Commissioner for the Environment, 49-50
complaints to, 50
Parliamentary delegations visit NZ, 28
Library, 267-8
Select Committees exchange with Australia, 28
Service, 27-8
parole (sentence), 229-30, 233
part-time labour force and work, 285-7
partnerships, business, 476
passports, and visas for entry, 122-3
Patent Co-operation Treaty (PCT) for international patenting, 319
Patent Office overseas involvement, 319-20
patents and trade marks, 318-19
overseas applications to file, 319
paternity leave, 307
patients, hospital, 169-73
PAYE (pay as you earn) income tax, 552
peace operations, 67
peacekeeping, commitments overseas (map), 68
penal institutions see prisons, 230-33
pensions, benefits and, (see also benefits & pensions,
superannuation), 170, 172
performing arts, 20-1, 256-8
perinatal mortality, 167
periodic detention (sentence), 229
petroleum
consumption, 415-7
imports and refining, 422, 500
processing and distribution, 422
prospecting and drilling, 421
PHARMAC, 155
condoms 160
pharmaceutical benefits, 155
pharmacists, 154
physical activity, 164
physiotherapists, 153
pigs, 370, 371, 372, 377, 384-5
Pinus radiata, 395, 399, 402
Planning Tribunal, 218
planning
authorisations for building, 448-50
district, 331
environmental, 330-4
national, 330
regional, 330
plant variety, biodiversity, 336
rights, 389
planted production forests, 395-7, 398-9
plants, see vegetation and wildlife
playcentres, 193
playgroups and childcare centres, 193
Plunket Society, 158, 161
podiatrists, 154
poisoning, deaths from, 179, 180
Police Complaints Authority, 235-6
Police, NZ, 22, 43, 234-5
police, operations, 234
armed offenders squads, 234
numbers, 234
overseas officers and Interpol, 234
political parties, 25-6
votes for, 36
pollution
air, 385
water, 334, 335, 457
Polynesians see Pacific Island population
Polytechnic, Open, overseas links, 206
polytechnics, 189, 201, 205-7, 209
population (see also Census of Population and Dwellings), 81-100
age at marriage, 110-112
age distribution, 94-5
age of, 94-6
censuses 1858-1991, 82
change, 86-94
cities, 84-5
composition of, 94-9
country of birth, 118
ethnic groups in, 96, 97, 98, 99
ethnicity of, 117-9
fertility of, 86-90, 99-100
geographical distribution, 83-6
growth, 81-2
life expectancy, 90, 92
Maori, see Maori population
marital status, 109-110
migration changes, 93-4
natural increase & fertility, 86-90
North and South Islands, 83
NZers in Australia, 94
local government areas, 85-6
Pacific Island age distribution, 132-3
Pacific Island geographical distribution, 133
projections & future issues, 99-100
regional councils, 87
religious profession, 116-7
see also Maori population, Pacific Island population
sex/gender of, 94, 95
territorial authorities, 85-6
urban areas, 85
urban-rural & drift, 84
ports, 455-6, 514-9
post, Newzgram, 249
postage stamps, 1995 issues, 249
anti-nuclear, 69
health stamps, 161
postal services, 248-51
cost, speed, volumes, 249-50
poultry and eggs, 385-6
pre-school education see education, early childhood
kohanga reo, 161, 221, 227, 241
Premier House, Wellington, 43
Premiers and Prime Ministers, 21-2, 32
Press Council, 244
press freedom, NZ in international ranking, 254
Prevailing Weekly Wage Rates Index (discontinued), 302
preventive detention (sentence), 231
price indexes
Capital Goods Price Index, 533
Consumers Price Index, 523-31
Export Prices Index, 520
Farm Expenses Price Index, 372-3
House Price Index, 444
Import Prices Index, 519
Producers Price Index, 531-2
Real Wage Rate Index, 300-2
Terms of Trade Index, 520
prices
beer, worldwide, 165
exports and imports, 519-20
housing, 444
international comparison, 530-1
retail, 526, 529
shopping, 526, 529
transport, 454
primary schools, 192-5
Prime Minister and Cabinet, Department of the, 43
Prime Minister, 52
salary and allowances, 28
Prime Ministers and Premiers (1856-1995), 21-2, 32
prisons and prison inmates, 230-33
age and ethnicity, 231-2
sex/gender, 231, 232, 233
major offences, 232
number, 230-31
offending history, 232-3
parole system, 233
sentence length, 232
classification and treatment, 233
institutions, 230
traffic offenders, 227
Prisons Service, Public 230-3
Privacy Act 1993,48
Privacy Commissioner, 48-9
complaints to, 49
privacy of information, 47, 49
private schools, 199-200
Privy Council, Judicial Committee of the, 215
probation (supervision) 229
Problem Resolution Service, 558
proceeds of crime, 220
Producers Price Index, 531-2
Production Accounts, 353-5
Protected Natural Areas Programme, 341
Provident Fund, National, 43
psychiatric hospitals, 171-3
patients and diagnoses, 173
Psychological Service (Department of Corrections), 233-4
psychologists, 153
public accounts, 549-52
public broadcasting fee, 237
public debt, 561-5
interest on, 564
maturity of, 564
per capita, 564
securities on issue, 542, 562, 564
transactions, 562
Public Health Commissioner, 156
public health, 156-69
public holidays, 306-7
public lands (see also forest parks, reserves),
Crown land, 327-8
national parks, 339
Queen Elizabeth II National Trust, 342
walkways, 275
Public Prisons Service (Department of Corrections), 230-33
public service (see also government departments, state sector)
gender ratio, 37 or 39
staff employed (33,263 full-time equivalents at 30 June 1995), 37
Public Trust Office, The, 44, 50
publishing
books, 264
newspapers and magazines, 244-5
pulp and paper, imports, 498
production, 400-1
research, 313
Puni Kokiri, Te, 43, 126-7, 327, 446
international links, 128

Q

Qualifications Authority, NZ, 186, 207
quarantine, 373, 399
quarries and quarrying, see mining
Quarterly Economic Survey of Manufacturing, 439, 442
Quarterly Employment Survey, 283, 285, 299-300
Quarterly Survey of Retail Trade, 486
Queen's Chain, 325
Queen's telegrams to centenarians, 42
Queen Elizabeth II National Trust, 342
Quest Rapuara (now rapuara), The Careers Service see rapuara
quota management, fish, 404, 409

R

Race Relations Conciliator, 114-115
race complaints, 114
relations, 114-115
racing, betting, 275-6
horse and greyhound, 22, 275-6
taxation, 559
radiation technologists, medical, 154
radio, 242-4
radiocommunications, 242-4
radiographers, 154
railways, 461-3
construction and engineering, 462
overseas ownership of, 461
passenger services, 461
Tranz Rail, 461-3
rainfall 1995, 8
records, 8
Raoul Island, 1
rapuara, The Careers Service, 186, 295
rates, local authority, 565
raupatu settlement, Waikato, 126-7
Reading Recovery, 202
real wage rates, 300
REAPs (Rural Education Activities Programme), 202
receivership for companies, 479-81
recreation and sport, 269-77
Hillary Commission for Sport, Fitness and Leisure, 269-70, 273-5
participation in, 269, 272
recreation reserves, 340
referendum, Clerk of Writs, 45
firefighters', 36
reform, electoral, MMP, 35
of cheques, 541
of health sector, 151-2
of national economy, chronology of, 349
of State sector, 37-8
refugees, 99, 122
regional affairs (MFAT), 59-60, 65
regional councils, 51, 54
Maori population, 124
migration between, 84
Pacific Island population, 133
population of, 87
Regional Fish and Game Councils, 341
regional health authorities (RHAs), 151, 169
complaints about, 48
regional planning, environmental, 330-33
regional television, 241
registration of, banks, 535-6
ex-overseas cars, 465
motor vehicles, 465-6
motorcycles, 463
taxis, trucks, 465
tractors, 468
rehabilitation, after accidents, 174
Relationship Services, 112
religious profession of population, 116-7
renewable energy, 426-8
rental housing, 445-6
reo Maori, computer software for, 130
Maori Language Commission, 129-131
Maori Language Year 1995, 129, 131
speakers of, 130
reparation for crime, 228
Representation Commission, 34-5
reproduction rates, 87-90, 97-8, 99-100
research associations, 318
research
agricultural, 313-4
Antarctic, 72, 313
building, 452
dental, 164
economic, 317
educational, 188
energy, 415
environmental, 314-5
fisheries, 408
forestry, 313
geological and nuclear, 315
health, 152
horticultural and food, 314
industrial, 315
personnel, international comparison, 312
scientific, 311-18
water and atmospheric, 315
wool, 381
Research, Science and Technology, Foundation for, 311-12
Ministry of, 44, 311
Reserve Bank of New Zealand, 22, 535-7
reserves
land, 340
marine, 340-1
Residential Tenancies Tribunal, 218
resource conservation, see conservation of natural resources
Resource Management Act, international interest in, 330
resource management, and Resource Management Act, 329-33, 428
restaurants and hotels, 474,486-8
restoration projects, 38, 450
restrictive trade practices, 476-7
retail prices, 526, 529
retail trade and services, 486-9
credit sales, 488-9
shop trading hours, 473
Retirement Commissioner, 142
retirement, NZ superannuation, 137, 139, 140
Retirement Commissioner, 142
transitional benefit see benefits
RHAs see regional health enterprises
Rights of the Child, UN Convention on the, 118
Rio Declaration, UNCED, 335
rivers (see also hydro-electric power), 2, 334
length of, 2
RNZAF at Nowra, NSW, 77
roads, 464-5
accidents, 176-8
expenditure on, 464-5
international organisations, 464-5
safety, 178, 467-8
speed limits, 468
taxes for, 559
Transit New Zealand, 464
rock types, 3
Ross Dependency, 1, 72
Rotary student exchange, 194
Royal Commissions, 37
New Zealand Navy (RNZN), 77-8
NZ Air Force (RNZAF), 78-9
NZ Ballet, 257-8
NZ Foundation for the Blind, talking book library, 268
Society of NZ, 317
Society of NZ, Fellows of, 316
Ruapehu eruption 1995, 6
on Internet, 1
rugby, 22
"golden oldies" festival, 281
injuries, prevention of, 274
rural education activities programmes (REAPs), 202
Rural Electrical Reticulation Council, 420
rural population, 84
Russia, relations with, 62-3, 502, 507

S

S mark, 321
safety, 467-9
fire, 182
marine, 457
occupational, 182-3
road, 178
water, 178-9
salaries, see wages
salt, 431
sanctuary, whale, 336
satellite links
Correspondence School, 195
telephone 247
scenic reserves, 340
schizophrenia, mental health facilities patients, 172, 173
School Certificate, 196, 197
School Dental Service, 164
School Journal, The, 187
schools (see also education, students, teachers and teaching)
boarding, 195
boards of trustees, 188
compulsory schooling, 193-4
curriculum, 195-6
funding, 190
home-based schooling, 195
in health camps, 161
independent, 195
integrated, 194
kura kaupapa, 194
library service, 267
primary, 193-201
private, 199-200
property management, 190-1
secondary, 193-201
State, 194
student numbers, 199-200, 201
terms and 4-year term, 191, 192
The Correspondence School, 195, 210
science and scientific services (see also research), 311-18
awards, 317
Carter Observatory, 318
international fair, NZ students at, 312, 320
NZ Antarctic Institute, 313
Royal Society Fellows, 316-7
scientific international links, 311
reserves, 340
seafood exports, 409-411, 496-7
trade, 409-12
seaports, 455-6, 514-9
search and rescue (SAR), 75
police-controlled, 234
secondary schools, 193-201
Securities Commission, 477-8
securities, government, 542-3
Security Intelligence Service (SIS), 79-80
seismic networks, 4
seismicity, 5-6
senior citizens, health services, 158
unit and Minister, 148
sentencing
community-based, 229-30
for non-traffic offences, 225-7
preventive detention, 231
traffic offences, 227-8
Serious Fraud Office, 44, 478
sex/gender, hospital inpatients discharges, 169
of prison inmates, 231-3
polytech enrolments, 207
population censuses 1858-1991, 95
secondary school leavers, 197, 198
university enrolments and degrees awarded, 203,204, 205
university staff, 204
university students, 205
share market, 479
sheep, and sheep farming, 369, 370-1, 375, 376, 377, 380-2
sheepmeats, 378-9
shipping (see also cargo, ports) 454-7
bulk, 456
coastal, 456, 518-9
ferries, 455-6, 462
fishing vessels, 409
overseas, 455-6
register of, 456
services to, 456-7
shipwrecks, 457
shooting and hunting, 274
shop trading hours, 473
sickness benefit see benefits
SIS (Security Intelligence Service), 79-80
Sister Cities, 51
Sixth Form Certificate, 196, 197
ski competitions, international, in NZ, 274
skiing, 274
SKY television, 241
Small Business Tax Information Service, 557
Smokefree campaigns, 162
smoking, tobacco, 162-3
snowfalls in 1995, 12
Social Policy Agency, Department of Social Welfare, 147-8
social security, overseas reciprocal agreements, 141,142-3
social services, 143-8
Citizens Advice Bureaux (CAB), 142-3
foodbanks, 149
Social Welfare, Department of, 44, 135, 141, 148
social welfare, 135-148
benefits see benefits and pensions
child support, 141, 554-5
expenditure, 135
income support, 135-143
supplementary payments, 140
SOI see Southern Oscillation Index
soil conservation, 334
soil types, 3
Solicitor-General, 220-1
South Island, population of, 83
South Pacific Commission, 60
countries, relations with, 59-60, 71-2, 501
Environment Programme (SPREP), 60, 329, 337, 340
Forum, 60
nautical charts, 75
Regional Trade and Economic Co-operation Agreement (SPARTECA), 59-60
Southern Ocean Whale Sanctuary, 336
Southern Oscillation and Southern Oscillation Index (SOI), and El Niño, 11
sovereigns of NZ, 23
SPARTECA (South Pacific Regional Trade and Economic Co-operation Agreement), 59-60
Speaker of the House of Representatives, 25, 30
Special Education Service, 185-6
Special Tactics Group (police), 234
special education, 201-2, 185, 191
needs grant, 139, 140, 149
purpose local authorities, 55
Sport, Fitness and Leisure, Hillary Commission for, 269-70
sport, 269-75
and leisure industry, 270
Volunteer Involvement Programme, 270
brief history, NZ in, 272
1995 highlights, 271
Volunteer Involvement Programme, 270
brief history, NZ in, 272
ACC claims for injuries, 274
Volunteer Involvement Programme, 270
brief history, NZ in, 272
betting, 275
Volunteer Involvement Programme, 270
brief history, NZ in, 272
drug testing, 273
Volunteer Involvement Programme, 270
brief history, NZ in, 272
fitness & leisure, funding for, 269
Volunteer Involvement Programme, 270
brief history, NZ in, 272
funding for, 269
brief history, NZ in, 272
NZ Olympic & Commonwealth Games Association (NZOCGA), 273
brief history, NZ in, 272
NZ Sports Foundation, 272-3
brief history, NZ in, 272
Olympic Games 1996, 272
brief history, NZ in, 272
Paralympics 273
participation in, 272
preventing rugby injuries, 274
involvement overseas, 271-3
SPREP (South Pacific Regional Environment Programme), 60, 329, 337, 340
stagflation, in 1970s, 346
stamp duty, 558
stamps, postage, 69, 161, 249
standard of living (international indicators), 108
Standards Council, 321
New Zealand, 321
Standing Orders of the House of Representatives, 25, 27
state forests, forest parks, 338, 340
plantation forests, 396-7
State sector (see also government departments, State-owned enterprises, central government finance), 37-50
Crown Company Monitoring Advisory Unit (CCMAU), 46
overseas interest in, 39
reform of, 37-8
overseas interest in, 39
State Services Commissioner, 38-9
State-owned enterprises, 46, 561-3
sales of, 562
transfer of land to, 325
Statistics New Zealand, 44
publications, 589-91
Statutes, 23, 27, 218-9
Stewart Island, 1
stillbirths, 90, 167
Stock Exchange, 478-9
market surveillance panel, 479
stocks, increase in, 355
strikes, 305, 308
student allowances and loans, 203-6, 555
student exchange, American Field Service (AFS) Scheme, 193
Rotary, 194
with Japan, 194
student loans, 205, 555
students,
colleges of education, 199, 203
Maori, 189-90, 197-8, 200, 211-2
numbers, 199-200, 201, 208, 204, 205, 209, 211
overseas, 202, 204
part-time, 200
primary school, 200, 201
support for, 191, 203-6
technical, 207, 209
university, 203-7
Study Right, 191
sudden infant death syndrome (SIDS), 167
sulphur, 431
sunshine 1995, 10
records, 8
Superannuation Fund, Government, 42
superannuation, 484
Government Superannuation Fund, 42, 484-5
National Provident Fund, 43,484-5
NZ superannuation surcharge, 555
supervision (sentence), 229
surcharge on NZ superannuation, 555
Survey and Land Information, Department of, 44, 323-5, 327-8
surveys
hydrographic, 75
land, 323-4
Symphony Orchestra, NZ, 257

T

TAB (Totalisator Agency Board), 275-6
Tainui (Waikato) Raupatu Settlement, 126-7
talking book library, Royal NZ Foundation for the Blind, 268
Taonga te Reo (celebration of Maori Language), 131
tariff (customs), 491-2
taxes and taxation (see also customs), 552-60
company income tax, 557
deductions, 552
double, agreements on, 554
excise duties, 491-2, 558-9
Fringe Benefit Tax, 556-7
goods and services (GST), 492, 557, 560
on interest and dividends, 556
on non-resident companies, 557
on property, 558
per capita, 552
personal income tax, 552-4
racing taxation, 559
retirement tax and superannuation surcharge, 555
revenue from, 560
review authorities, 559
roads taxation, 559
stamp duty, 558
taxis, trucks, 465
Te Hakituatahi o Aotearoa, ii, 56-7
Te Mangai Paho (Maori Broadcasting Funding Agency), 238
Te Taonga Te Reo and Maori Language, 131
teacher exchanges, 191
Teacher Registration Board, 188
teachers and teaching, continuing education, 208
registration of, 188
training and trainees, 202, 203, 207-8
teachers colleges, see colleges of education TEC (Trade and Economic Co-operation Agreement) with Canada, 62
technical education, 206-7
Telarc New Zealand, 320-1
Telecom Corporation of NZ, 247-8
Telecommunications Users Association of NZ Inc. (TUANZ), 253
telecommunications, 246-8
equipment and systems, export of, 504
telegrams, 248
telephone services, 247
residential charges, international comparison, 247
Television New Zealand, 239-40
television, 237-41
daily viewing time, 241
local content, 241
natural history programmes, 240
overseas ownership of, and overseas programmes, 239-41
regional, 241
sales overseas of Wild South and other programmes, 240
sets in households, 108
top 20 programmes in 1995, 241
temperatures 1995, 10-12
weather, 8
Tenancy Tribunal, 218, 447
terms of trade index, 520, 522
territorial authorities, 54
council members, 54
finances, 565-6
population of, 85-6
territories, NZ
Ross Dependency, 1, 72
Tokelau, 1,71-2
tertiary education, Pacific Island Professional Development Programme, 134
textiles (see also wool), 435
Thai royal horses, export of, 511
The Correspondence School, 195, 210
timber and forest products, 398-402
exports of, 401-2, 495-6
imports of, 401
pulp and paper, 400-402
timber preservation, 399
time zone, NZ and Chathams, 13
Tiriti o Waitangi, Te, (Treaty of Waitangi), 23, 115, 125-6
Office of Treaty Settlements, 126
Waikato raupatu settlement, 126-7
TNC (transnational corporation), NZ's largest, 511
tobacco consumption, 163
Tokelau, 1, 71-2
topdressing, 371,460
Totalisator Agency Board (TAB), 275-6
Tourism Board, NZ, 45, 281
tourism, 277-81
accommodation, 279
Facilities Development Grants, 279
Golden Oldies Rugby Festival, 281
impacts (social, environmental), 278
international, 280
inward visitor numbers, 280
Maori, 280
NZers travelling overseas, 280
organisations, 281
promotion, 281
visitor expenditure, 278
visitor residences, 280
WWOOFing, 388
town milk supply, 383
planning, 330-1
tractors, registration, 468
Trade Development Board (Tradenz), NZ, 45, 491, 508
Trade Measurement Unit, 473
trade
domestic, see retail trade
export, global overview, 506-7
external, see overseas trade retail, 486-9
marks, 319
overseas applications to register, 319
practices, 472, 473
representatives overseas, 59, 61,491
routes, maritime, 454-6
training, 206-7, 209
unions, 303-4
Tradenz (NZ Trade Development Board), 45, 491, 508;
overseas posts (map), 61
trading banks, see registered banks
legislation, 471-3
partners, major, 500-514
traditional sites, protection of, 262, 330
Traffic Camera Office, 468
traffic
accidents, 176-8
convictions and sentencing, 227-8
offences, 227-8, 232,469
convictions and sentencing, 227-8
training benefit, 138
training, vocational, 186, 206-7, 209, 293-4, 392, 398
tramping and mountaineering, 274-5
trans-Tasman video evidence, 216
Transit New Zealand, 464
transitional retirement benefit see benefits
translation services, 501
transnational corporation (TNC), NZ's largest, 511
Transport Accident Investigation authority, 457
transport (see also Land Transport Safety Authority), 453-70
air, 457-460
expenditure on, 106, 107
household, 105
Ministry of, 45, 453
prices, world-wide, 454
rail, 461-3
reform of industry, 453-4
road, 463-70
sea, 454-7
to work, 467
use by tourists, 279-80
Tranz Rail, 461-63
travel overseas by NZers, 280
Treasury, The, 45
on Internet, 551
treaties
defence agreements, 74
trade agreements, 59-63, 69, 336, 369
Treaty of Waitangi (Tiriti o Waitangi), 23, 115, 125-6, 326
Office of Treaty Settlements, 126
Waikato raupatu settlement, 126-7
Treaty Settlements, Office of, 43
tribunals
Complaints Review, 218
Disputes, 218
Employment, 217-8
Equal Opportunities (Complaints Review), 218
land valuation, 325
Planning, 218
Residential Tenancies, 218
Waitangi, 218, 125-6
Tritec (Department of Social Welfare), 148
TUANZ (Telecommunications Users Association of NZ), 253
Turnbull Library, 75th anniversary, 265
TV3, 240-1

U

UK reports NZ earthquakes, 7
UN (United Nations), 67-9
UN Commission for Sustainable Development (CSD), 332, 340
Commission for the Environment and Development (UNCED), 335, 434
Convention on Discrimination Against Women (CEDAW), NZer on committee, 115
Convention on the Rights of the Child, 118
Decade for World's Indigenous People, 68
Environment Programme (UNEP), 329
Framework Convention on Climate Change (UNFCCC), 311, 336, 413-4
peacekeeping operations, 67, 74-5
World Conference on Women, Beijing, 116
UNCED (UN Commission for the Environment and Development), Rio Declaration, 335
Agenda 21, 335, 434
UNCTAD (UN Conference on Trade and Development),
NZ Customs involvement with, 495
unemployment (see also labour force)
unemployment benefit see benefits
ethnicity and age of, 291, 292
growth of, 290
OECD comparisons, 296
policies and programmes, 295-8
school qualifications and, 291
UNEP (UN Environment Programme), 329
UNESCO (UN Educational, Scientific and Cultural Organisation), 69
and Ministry of Education, 191
and NZQA, 186
and The Correspondence School, 195
UNFCC (UN Framework Convention on Climate Change), 311, 336, 413-4
unions, of employers, 303-4
of workers, 303, 304
unitary authorities, 55
United Kingdom, trade with, 506, 507, 509-10
United Nations (UN) specialised agencies, 67-9, 70 see also FAO, ILO, IMO, UNCTAD, UNEP, UNESCO, WHO, WIPO
United Nations (UN), 61, 62, 63
United Nations Education, Scientific and Cultural Organisation (UNESCO), 69
United Nations, NZ contribution to, 69
membership of, 67-9
NZ commitment to peacekeeping forces, 63, map 68
United States, relations with, 61, 74, 207, 508-9
Universal Postal Union (UPU), NZ membership, 248
universities, 189, 203-6
assisted overseas students, 204
degrees awarded, 204
enrolments, 203
entrance exams, 197
extension programme, 210
Fulbright exchange programme, 207
graduates from, 204
scholarships and bursaries to, 198, 204
staff numbers, 204
students, 205
University of Otago distance learning overseas, 210
unmarried mothers, births to, 89
unpaid work, 284
unsupported child benefit see benefits
urban areas (see also cities and city councils), 85
population of, 85
USA, foreign currency credit ratings of NZ, 562
reports NZ earthquakes, 7
Fulbright educational and cultural exchange programme, 207

V

vaccinations, 155, 162
Valuation New Zealand, 45, 328, 443-4
valuation of land, 328
valuers, registration of, 328
vegetation and wildlife, 12-13
Vehicle Inspection Certificates (VIC), 467
velvet, deer, 520
venison exports, 380
veterans pension see benefits
Vice-Regal representatives, 24
video recordings, classification and censorship of, 259-61
violent offences, convictions for, 224
visas and passports for entry to NZ, 122-3
vital statistics (see also births and birth rates, deaths and death rates, marriage)
summary (1885-1991), 90
viticulture, 391-3
Vogel House, Lower Hutt, 43
volcanic hazards, 4-5
volcanoes, eruptions since 1846, 4
Ruapehu in 1995, 1,6-7, 19
Taupo Zone, 5
volume indexes of overseas trade, 520-2
voluntary welfare organisations, 158
Volunteer Service Abroad (VSA), 63
volunteers abroad (VSA) (in Africa, Asia, the Pacific), 63
voting, see elections
VSA (Volunteer Service Abroad), 63

W

wage-price freeze (1982-4), 17, 386
wages, 299-302
minimum rates, 306
Prevailing Weekly Wage Rates Index (discontinued), 302
Waikato (Tainui) Raupatu Settlement, 126-7
River, 334
Waitangi National Trust Board, 342
Tribunal, 125-6, 218
claims process, 125
Treaty of see Treaty of Waitaingi
Waka toi, Te, Maori arts board of Creative NZ, 256
walking and walkways, 275
wananga, 201, 208, 211-12
war graves and memorials, care of, 43
pensions and allowances see benefits, 141
wardens, Maori, 129
Warrant of Fitness see Vehicle Inspection Certificate (VIC)
washing machines, export of, 504
water, accidents, 178-9
drinking, 156
fluoridation of, 164
water and soil conservation, 333-4
pollution, 156, 335, 457
fluoridation of, 164
water and soil conservation, 333-4
supply, 333-4
fluoridation of, 164
water and soil conservation, 333-4
WCO (World Customs Organisation), 434, 492, 495
WEA (New Zealand Workers Educational Association), 210
weather 1995, 7-12
rainfall records, 8
southern oscillation and El Niño, 11
sunshine, 8
temperatures, 8
wind gusts, 8
weights and measures, 567
welfare organisations, voluntary, 158
Whale Sanctuary, Southern Ocean, 336
Whaling, International Commission (IWC), NZ involvement, 336
whips, export of, 505
WHO (World Health Organisation), 68-9, 165, 170
MAF involvement in, 371
widows benefit see benefits
Wild South (natural history television), 240
programmes sold overseas, 240
wildlife, 12-13
reserves, 340
wind gusts, 8
wine consumption, 164, 165
industry, 391-3, 435
Winston Churchill Memorial Trust fellowships, 62
WIPO (World Intellectual Property Organisation), 319 women
Convention on Discrimination Against, 115
economic development, 115-6
4th United Nations World Conference on, 116
health of, 160-161
in politics, 29
in the labour force, 115, 284-5
in the public service, 37 or 39
income, 115
international liaison, 116
Maori Women's Welfare League, 22, 129
Ministry of Women's Affairs, 45, 116
numbers, 94-6
ratio in population, 94-95
rights issues, 115-6
training and employment, 297
Women's Affairs, Ministry of, 45, 116
wood, see timber and forest products wool, 380-2
animal covers, 381
exports, 381-2, 497
last stockpile bale sold, 380
prices, 380, 381
production, 380
research (WRONZ), 381
Wools of New Zealand, 380-1
woolovers, protecting newborn lambs 381
Wools of New Zealand, 380-1
work stoppages, 305, 308-10
full-time and part-time, 285-7
unremunerated, 284
working conditions (see also occupational safety and health), 335-8
hours, 285-6, 306
World Bank, 70
Conference on Women, Beijing, 68, 116, 284
Health Organisation (WHO), 68-9, 165, 170, 371
Intellectual Property Organisation (WIPO), 319
Trade Organisation (WTO), 61, 69-70,434
Wide Web, addresses, 1, 126, 181, 212, 252, 322
world heritage areas, 340
World's Indigenous People, UN Decade for, 68
wrecks, 457
WRONZ (Wool Research Organisation of NZ), 381
WTO (World Trade Organisation), 61, 69-70, 434
trade and environment, 336
MAF involvement in, 371
WWOOFING in NZ, 388

Y

Youth Affairs, Ministry of, 46, 116, 270, 298
Aid Section, police, 235
Court, 235
Programme, Commonwealth, 270
youth benefit, independent, 137
education service, police, 235
justice residences, 147
justice services, 146-7
programmes, see community welfare services
travel and exchange, AFS Scheme, 193
Rotary, 194
with Japan, 117, 194, 199
NZ-France friendship fund, 66
rights issues, 116

Special articles 1996

The items in this index are also included in the main index.

A

agriculture, deer velvet, 520
facts, 370-1
international policy, 371
AIDS, 158
aircraft, accidents, 458
aircraft navigation, Oceanic Control System, 459
alcohol consumption worldwide, 163-4
American Field Service student exchanges, 193
Antarctic, environment, 328
NZ Antarctic Institute, 313
Arts Assembly, NZ, 269
Asia 2000 Foundation, 60

B

beekeeping, 387
Beijing, 4th UN World Conference on Women, 116
betting and gaming, NZ history, 276
NZ Lotteries Commission, 277
Totalisator Agency Board, 275
births, deaths and marriages registration, 86
blood samples for criminal investigations, 227
broadcasting, Maori, Te Mangai Paho, 238
Building Research Association of New Zealand, 452

C

centenarians, Queen's telegrams to, 42
censorship, 259
cheques, better security for, 541
chicken chatter, 385
Children's Health Camps, 161
Children, Office of the Commissioner for, 117
Citizens Advice Bureaux (CAB), 142-3
claims process, Maori land, 125
Commerce Commission, 1995 highlights, 476
crime, DNA typing, 226, 227
blood samples for investigations, 227
Crown Company Monitoring Advisory Unit (CCMAU), 46
Crown entities, 563
Customs Department, international links, 492, 495

D

deer velvet, 520
disability, 159
DNA typing for criminal investigation, 226, 227
drug testing in sport, 273

E

Economic Research, New Zealand Institute of, 317
economy, 1930s Depression, 345
international comparisons, 348
major reforms since 1984, 349
education, American Field Service student exchange, 193
Fulbright academic exchange programme, 207
international comparisons, 202, 203
Rotary student exchange, 194
Educational Research, New Zealand Council for, 188
El Niño and southern oscillation, 11
energy, research projects 1994-95, 415
Environment 2010 Strategy, 329-30
environment, Antarctic, 328
biodiversity, 336-7
recycling, 333
sustainable management, 332
exports, deer velvet, 520
global overview, 506-7
flowers, 392

F

farming, international 372-4
organic, 388
chicken chatter, 385
protecting newborn lambs 381
venison, 380
film, chronology of feature films, 260
finance, accounting, 547, 548
foreign currency credit ratings, 562
firefighters' referendum, 36
fisheries, research, 408
stock assessment, 404
history of management, 406
flag, first New Zealand, 56–57
flower exports, 392
food, Australia and New Zealand food standards, 435
foodbanks, 149
foreign currency credit ratings, 562
French nuclear testing, 5, 69
Fulbright academic exchange programme, 207

G

Government Buildings restored, 38

H

Hakituatahi o Aotearoa, Te, 56-7
Health Sponsorship Council, 162
health, AIDS, 158
Children's Health Camps, 161
disability, 169
Maori, 167
occupational overuse syndrome (OOS), 183
historic sites, 450
holidays and leave worldwide (graph), 307
honours, the Order of New Zealand, 23
horticulture, flower exports, 392

I

injuries, rugby, preventing, 274
Insurance and Savings Ombudsman, 482
International Court of Justice, NZ case on French nuclear testing, 69
inter-Parliamentary relations, 28

K

kai o te moana kaupapa tiakina, nga, 406

L

labour force, OECD comparisons, 296
market, international organisations, 305
land, Maori Trustee 326
Queen's Chain 325
law, lay observers, 218
Legal Services Board, 221
leave and holidays worldwide (graph), 307
Legal Services Board, 221
libraries, Alexander Turnbull 75th anniversary, 265
National Library information online, 267
RNZFB National Braille and Talking Book Library, 268
NZ Library and Information Association, 266
local government, sister cities, 51

M

Mangai Paho, Te, 238
Maori health, 167
Language Year, 129, 131
language software, 130
broadcasting, Te Mangai Paho, 238
land claims process, 125
land, Te kaitiaki Maori (Maori Trustee), 326
newspapers, 245
tourism, 280
Waikato raupatu settlement, 126-7
media, Press Council, 244

N

nuclear testing, French, 69
Newzgram, sending news overseas, 249

O

Oceanic Control System for aircraft navigation, 459
occupational overuse syndrome (OOS), 183
OECD, labour force comparisons, 296
official links with the world, NZ's, 65
Olympics, 272
Order of NZ, 23
ozone depletion in 1995, 10

P

Paralympics, 273
Parliament, inter-Parliamentary relations, 28
post, Newzgram, 249
poultry, 385
Press Council, 244

Q

Queen's telegrams to centenarians, 42

R

race complaints increase, 114
raupatu settlement, Waikato, 126-7
referendum, firefighters', 36
Retirement Commissioner, 142
Rotary student exchange, 194
Ruapehu eruption 1995, 6
rugby injuries, preventing, 274

S

science, Carter Observatory, 318
NZ Antarctic Institute, 313
Royal Society Fellows, 316-7
Sister Cities, 51
social services, Citizens Advice Bureaux (CAB), 142-3
foodbanks, 149
southern oscillation and El Niño, 11
sport, 1995 highlights, 271
drug testing, 273
Olympics, 272
Paralympics 273
preventing rugby injuries, 274
Standards New Zealand, 321
state sector, Crown Company Monitoring Advisory Unit (CCMAU), 46
student exchange, American Field Service Scheme, 193
Rotary, 194
with Japan, 194

T

talking book library, Royal NZ Foundation for the Blind, 268
telecommunications, BellSouth, 248
television, natural history programmes, 240
tourism, Maori, 280
WWOOFing, 388
translation services, 501
Turnbull Library, 75th anniversary, 265

V

venison exports, 380
volcanic hazards, 4–5
volcanoes, Ruapehu eruption 1995, 1, 6
Volunteer Service Abroad, 63

W

Waikato raupatu settlement, 126-7
weather, southern oscillation and El Nino, 11
Women, 4th United Nations World Conference on, 116
wool, last stockpile bale sold, 380
woolovers, protecting newborn lambs 381
WWOOFING in NZ, 388

‘New Zealand linked to the world’

Index of references to the ‘theme’ of the 1996 Yearbook. These items are also included in the main index.

A

AFS (American Field Service) student exchange, 193
Agenda 21 of UNCED, 335, 434
agricultural exports (various), 377-393, 494-5, 497-8
AIDS overseas organisations, 158
air navigation systems, international award, 459
airline services, international, 453, 458, 459-60
Airways Corporation, overseas use of OCS (Oceanic Control System), 459
ALAC (Alcohol Advisory Council) overseas links, 165
American Field Service (AFS) student exchange, 193
animal health and pharmaceutical products, export of, 503
Antarctica, international co-operation, 313
Ross Dependency, 72
ANZSIC (Australian New Zealand Standard Industrial Classification), 436, 486
APEC (Asia/Pacific Economic Co-operation), 61, 186
‘Bogor Declaration’, 434
customs links, 492
educational links, 191
apparel, exports of, 436
ASEAN Free Trade Area, 434
dialogue partner with, 60
Asia 2000 Foundation, 60
business grants programme, 503
education programme, 212
media programme, 242
Asian Development Bank, 70-1
astronomy, Carter Observatory collaboration with overseas astronomers, 318
ASYCUDA (Automated System for Customs Data), NZ
Customs involvement in, 495
Audit Office international links, 47
Australian connections
AIDS organisations, 158
ANZAC frigates, 60, 77
ANZECC (Australian and NZ Environment and Conservation Council), 329
ANZSIC (Australian and NZ Standard Industrial Classification), 436
Audit Office (Australasian Council of Auditors-General), 47
Australasian Dental Council, 153
Australia and New Zealand Food Authority, Code & Council, 157, 435
Australian Health Ministers' Advisory Council (AHMAC), 170
CER and CDR, 60, 434
double taxation agreement, 60
exports to, 506, 507-8
JAS-ANZ, standards accreditation, 321
Joint Council on Vocational Education and Training (NZQA), 186
Maori in Australia, 97
NZers living in Australia, 94
online information, National Library, 267
PADET fellows to Canberra, 66
Parliamentary Commissioner for the Environment, 50
Parliamentary Select Committee exchanges, 28
pharmacists, 154
Privacy Commissioner (PANZA), 48
RNZAF at Nowra, 79
social security agreements, 60, 141, 142
sports drug testing in Sydney, 273
teacher registration, 188
trans-Tasman food standards, 435
Trans Tasman Index of company share prices, 478
trans-Tasman Mutual Recognition Agreement, 434
trans-Tasman video evidence, 216
with ALIA (Australian Library and Information Association), 266
with Australian Competition and Consumer Commission, 476
Australian newspapers use MetService weather graphics, 7

B

balance of payments (NZ transactions with the rest of the world), 359-60
bilateral relationships (MFAT), 64-5, 65
biodiversity, international implications, Department of Conservation, 336-7
Bogor Declaration of APEC, 434
books, and books on audio cassettes, sold overseas, 187, 265
BRANZ (Building Research Association of NZ), overseas links, 452

C

Canada, TEC (Trade and Economic Co-operation Agreement) with, 62
cars, ex-overseas and imported, 435, 465
Carter Observatory, collaboration with overseas astronomers, 318
CEDAW (UN Convention on Discrimination Against Women), NZer on committee, 115
CER (Closer Economic Relations) with Australia, 60, 434
Chamber Music NZ, overseas artists, 258
Child, UN Convention on the Rights of, 118
children overseas, educated by Correspondence School, 195
choral groups overseas, 258
Churchill Memorial Trust fellowships, 62
Closer Defence Relations (CDR) with Australia, 60
Closer Economic relations (CER) with Australia, 60, 434
Commerce Commission trans-Tasman co-operation, 476
Commission for Sustainable Development (CSD), UN, 332, 340
Commissioner for Children advice given overseas, 145
Commonwealth and CHOGM, 66, 71
Commonwealth Parliamentary Association, NZ MPs in, 28
companies, overseas origin, 476
consumer advice worldwide, 472, 473
copyright licensing, overseas reciprocal agreements, 258
Correspondence School educating children overseas, 195
country of birth, overseas, 119
Crown Law Office, appearance at International Court of Justice, 221
CSD (Commission for Sustainable Development), UN, 332, 340

D

de-mining assistance, 74-5
Defence Force overseas activities, 74-6
dentists, Australasian Dental Council, 153
Department of Conservation, international involvement with biodiversity, 336-7
linked to the world of conservation, 340
Department of Social Welfare international unit, 141
Department of Survey and Land Information (DOSLI), international links, 324
designs, overseas applications to register, 319-20
detecting French nuclear tests, 5
distance learning overseas by Otago University, 210
DOSLI (Department of Survey and Land Information)
international links, 324
double taxation agreements, 554

E

earthquakes reported from USA and UK, 7
economic research, NZIER overseas links, 317
EECA (Energy Efficiency and Conservation Authority)
overseas, 414
Energy Efficiency and Conservation Authority (EECA)
overseas, 414
ERO overseas links, 187
ex-overseas cars, registration of, 465
exports, agricultural (various), 377-83, 494-5, 497-8
animal health products, 503
coal, 425
forest products, 401-2, 495-6
global overview, 506-7
hats, 501
ironsand, 429
seafood, 409-411, 496-7
telecommunications equipment and systems, 504
various commodities, 493-7
washing machines, 504
whips, 505
external transactions of the national economy, 352

F

family group conferences overseas, 145
FAO (UN Food and Agricultural Organisation), 68, 371
MAF involvement in, 371
FCCC see UNFCCC
FIB V (International Federation of Stock Exchanges), NZ
Stock Exchange membership of, 478
fishing vessels, foreign, 409
Food and Agricultural Organisation (FAO), 68, 371
footwear, exports of, 436
foreign currency credit rating, 562
currency debt, 564-5
exchange, 543-4
fishing vessels, 409
ownership of forests, 397
signals intelligence, GCSB, 80
forest product exports, 401-2, 495-6
forests, foreign ownership, 397
Foundation for the Blind talking book library, overseas links, 268
Fourth World Conference on Women, Beijing, 68, 116, 284
Framework Convention on Climate Change, UN, see UNFCCC
France, youth exchange with, 66
French nuclear testing, International Court of Justice case, 69
detection of, 5
Fulbright educational and cultural exchanges, 207

G

GATT see WTO
GCSB (Government Communication Securities Bureau), 80
global environmental issues, NZ involvement, 335-8

H

hats, export of, 501
health research overseas links, 153
horses, export of, 275, 511
humanitarian relief and human rights overseas, 67, 68

I

ICAO (International Civil Aviation Organisation), 458
ILO (International Labour Organisation), 457
NZ membership of, 305
IMO (International Marine Organisation), 457
imports, various commodities, 498-500
Indigenous People, UN World Decade for, 69
Insurance and Savings Ombudsman, overseas links, 482
insurance, overseas involvement in, 482-3
Inter-Parliamentary Union, NZ MPs in, 28
international agricultural policies and farming, NZ's relationship with, 371, 372-4
airline services, 459-60
credit rating agencies, 562
defence relationships, 74-5
education (Ministry of Education), 191
fraud, Serious Fraud Office action against, 478
investment position, NZ's, 362-3
money-laundering, inter-departmental group against, 478
organisations, 67-71
relations (Chapter 4), 59-80
roading organisations, Transit NZ links with, 464-5
International Civil Aviation Organisation (ICAO), 458
Commission of Jurists (ICJ), NZ connection, 217
Court of Justice, French nuclear testing, 69, 221
Federation of Stock Exchanges (FIBV), NZ Stock
Exchange membership, 478
Labour Organisation (ILO), 457
Marine Organisation (IMO), 457
Organisation for Standardisation (ISO), 321, 435
Organisation of Securities Commissions (IOSCO), 477
Science and Engineering Fair, NZ students at, 312, 320
Internet, 251-2
earthquake information by, 7
Ruapehu eruption on, 1
Treasury on, 551
Interpol, NZ links with, 234
IOSCO (International Organisation of Securities Commissions), 477
ISO (International Organisation for Standardisation), 321, 435
IWC (International Whaling Commission), NZ involvement, 336

J

Japan, student and youth exchange with, 117, 194, 199
Jurists, International Commission of (ICJ), NZ connection, 217

L

language translation services, 501
Law Commission's international links, 219
lead-rubber bearings, used overseas, 448
Learning Media Ltd overseas sales, 187
Legal Services Board, overseas links, 221
Library and Information Association, NZ (NZLIA), overseas links, 266
local bodies and sister cities overseas, 51

M

Maori international links (Te Puni Kokiri), 128
tourism overseas links, 280
MetService weather graphics in Australian newspapers, 7
MFAT (Ministry of Foreign Affairs and Trade), 59–72, 335-7
migration and immigration, 93-4, 99–100, 121-3, 132
Ministry of Agriculture (MAF), 371
for the Environment overseas links, 329, 330, 332, 333, 335-8
of Education international activities, 191
of Foreign Affairs and Trade (MFAT), 59-72, 335-7
of Health international connections, 170
MPs' travel overseas, 28
multilateral affairs (MFAT), 65, 66

N

National Archives overseas links, 263
National Library online information, 267
natural history TV programmes made and sold overseas, 240
nautical charts for South Pacific, 75
Newzgram sending NZ news overseas, 249
non-resident companies, taxation on, 557
nursing, overseas contact, 153
NZ Customs, overseas connections, 492, 495
NZ news sent overseas by Newzgram, 249
NZ Police, overseas officers and Interpol, 234
NZ Post membership of UPU (Universal Postal Union), 248
overseas postal services, 250-1
NZ Stock Exchange, overseas links, 478
NZ Symphony Orchestra, overseas visits, 257
NZ Translation Centre, 501
NZ Translation Service (Department of Internal Affairs), 501
NZ-United States Educational Foundation, 207
NZIER (NZ Institute of Economic Research) overseas links, 317
NZLIA (NZ Library and Information Association) overseas links, 266
NZQA (NZ Qualifications Authority) overseas links, 186

O

occupational overuse syndrome (OOS), OSH overseas conference on, 183
Oceanic Control System (OCS) of Airways Corporation, overseas use of, 459
OECD (Organisation for Economic Co-operation and Development), 71, 186, 434
agricultural directorate, NZ involvement in, 371
educational links, 191
environmental links, 329
trade and environment, 336
labour and unemployment information, 305
scientific involvement, 311
official links with the world, MFAT, 65
visitors from overseas, 45
oil, imported, 414
Olympic Games, 272
OOS (occupational overuse syndrome) international conference, 183
Open Polytechnic overseas links, 206
Order of New Zealand, overseas honorary member, 23
overseas applications for patents, trade marks and designs, 319-20
cargo loaded and unloaded, 514-8
companies, 476
country of birth, 119
debt (outstanding liabilities of NZ to the rest of the world), 361-2, 562, 564-5
Honorary Fellows of the Royal Society, 316
honorary member of ONZ, 23
operators in coastal shipping, 454
postal services, New Zealand Post, 250-1
shipping services, 454-5, 456
trade (Chapter 25), 491-522
trade, major partners, 500-14
visitors, 280
Overseas Development Assistance (ODA), 64-6
ozone depletion, Montreal Protocol, 336

P

PADET (Peace and Disarmament Trust) fellows to Canberra, 66
Paralympics, 273
Parliamentary Commissioner for the Environment and ACT and Canada, 50
delegations visit NZ, 28
Library overseas involvement, 268
Select Committees exchange with Australia, 28
Patent Co-operation Treaty (PCT) for international patenting, 319
Office overseas involvement, 319-20
patents, overseas applications to file, 319
pharmacists, international connections, 154
police, overseas officers and Interpol, 234
Polytechnic, Open, overseas links, 206
Press Council overseas links, 244
Privacy Commissioner, and OECD, 49
international links, 48
Privy Council, Judicial Committee of, 215

Q

Queen's telegrams to centenarians, 42

R

railways, overseas ownership of, 461
refugees, 99, 122
regional affairs (MFAT), 59–60, 65
Reserve Bank international connections, 536
Resource Management Act, international interest in, 330
Retirement Commissioner overseas contacts, 142
Rio Declaration, UNCED, 335
RNZAF at Nowra, NSW, 77
Rotary student exchange, 194
Royal NZ Ballet, overseas tours, 258
Royal Society, Honorary Fellows overseas, 316
Ruapehu eruption on Internet, 1

S

science, international fair, NZ students at, 312, 320
scientific international links, 311
seafood exports, 409–411, 496-7
Securities Commission overseas connection, 477
Serious Fraud Office international links, 478
Sister Cities, 51
ski competitions, international, in NZ, 274
social security arrangements overseas, 141, 142-3
South Pacific Environment Programme (SPREP), 60, 329, 337, 340
South Pacific nautical charts, 75
sporting involvement overseas, 271-3
sports drug testing in Sydney, 273
SPREP (South Pacific Regional Environment Programme), 60, 329, 337, 340
Standards New Zealand international links, 321
State sector reform, overseas interest in, 39

T

talking book library, Foundation for the Blind, overseas links, 268
taxation on non-resident companies, 557
taxation, double, agreements on, 554
Te Puni Kokiri international links, 128
teacher exchanges, 191
Teacher Registration Board overseas connections, 188
TEC (Trade and Economic Co-operation Agreement) with Canada, 62
telecommunications, equipment and systems, export of, 504
links overseas, 247-8
television, overseas ownership of, and overseas programmes, 239-41
sales overseas of Wild South and other programmes, 240
Thai royal horses, export of, 511
TNC (transnational corporation), NZ's largest, 511
tourism from overseas, 277-81
trade marks, overseas applications to register, 319
Tradenz (NZ Trade Development Board), 491, 508
trans-Tasman video evidence, 216
Transit New Zealand overseas links, 464-5
translation services, 501
transnational corporation (TNC), NZ's largest, 511
Transport Accident Investigation authority, overseas links, 457
travel overseas by NZers, 280
Treasury on Internet, 551

U

UK reports NZ earthquakes, 7
UN (United Nations), 67-9
UN Commission for Sustainable Development (CSD), 332, 340
for the Environment and Development (UNCED), 335, 434
UN Convention on Discrimination Against Women (CEDAW), NZer on committee, 115
on the Rights of the Child, 118
UN Decade for World's Indigenous People, 68
UN Environment Programme (UNEP), 329
UN Framework Convention on Climate Change (UNFCCC), 311, 336, 413-4
UN peacekeeping operations, 67, 74-5
UNCED (UN Commission for the Environment and Development), Rio Declaration, 335
Agenda 21, 335, 434
UNCTAD (UN Conference on Trade and Development), NZ Customs involvement with, 495
UNEP (UN Environment Programme), 329
UNESCO (UN Educational, Scientific and Cultural Organisation), 69
and Ministry of Education, 191
and NZQA, 186
and The Correspondence School, 195
UNFCCC (UN Framework Convention on Climate Change), 311, 336, 413-4
United Nations (UN) specialised agencies, 67-9, 70 see also FAO, ILO, IMO, UNCTAD, UNEP, UNESCO, WHO, WIPO
United Nations (UN), 61, 62, 63
Universal Postal Union (UPU), NZ membership, 248
University of Otago distance learning overseas, 210
USA foreign currency credit ratings of NZ, 562
USA reports of NZ earthquakes, 7
Fulbright educational and cultural exchange programme, 207

V

Volunteer Service Abroad (VSA), 63
volunteers abroad (VSA) (in Africa, Asia, the Pacific), 63

W

washing machines, export of, 504
WCO (World Customs Organisation), 434
Whaling, International Commission (IWC), NZ involvement, 336
whips, export of, 505
WHO (World Health Organisation), 68-9, 165, 170
MAF involvement in, 371
Wild South programmes sold overseas, 240
Winston Churchill Memorial Trust fellowships, 62
WIPO (World Intellectual Property Organisation), NZ membership, 319, 320
Women, UN 4th World Conference on, 68, 116, 284
World's Indigenous People, UN Decade for, 68
World Bank, 70
World Council of Press Councils, NZ membership, 244
World Health Organisation (WHO), 68-9, 165, 170, 371
World Trade Organisation (WTO), 61, 69–70, 434
WTO (World Trade Organisation), 61, 69–70, 434
MAF involvement in, 371
trade and environment, 336

Y

youth travel and exchange, AFS Scheme, 193
Rotary, 194
with Japan, 117, 194, 199
NZ-France friendship fund, 66

Appendix B. Further publications and products from Statistics New Zealand...

The INFOS database provides you with an on-line link to the largest database of official statistics in New Zealand. INFOS statistics keep you up to date with trends occurring in all areas of the New Zealand economy and society. The database of time-series (trend) statistics is continually reviewed and enhanced to meet changing customer needs.

Here are some of the topics on INFOS:

AgricultureBalance of PaymentsBuilding Permits
Consumers Price IndexDemographyEmployment
ExportsFinanceFishing
ForestryImportsIncomes
Industrial StoppagesLabour ForceLogging and Timber
ManufacturingMigrationNational Accounts
PricesProductionRetail Trade
Reserve Bank DataVital StatisticsWages
Wine Production  

Supermap 2 is an easy-to-use geographic database that provides benefits for all organisations needing information about people and households. It is ideal for marketers, analysts and planners. Supermap 2 is a comprehensive statistical database with mapping software. You can produce easy-to-read maps and it allows you to:

  • Achieve optimum sales from a marketing campaign because you are assured the profile of your selected area will match the target market for your product.

  • Map your own sales performance.

  • Plan with precision the location of any new business because you can select the area that matches your consumer profile.

  • Graph, map and table with precision the population characteristics of people anywhere in the country - right down to an area the size of a city block.

Price $3,500.00 - $6,200.00 + GST

Market 20:20 is designed to help you locate current markets and identify future ones.

It offers the latest and most comprehensive range of consumer spending, population demographics and projection statistics for New Zealand.

All MARKET 20:20 reports are illustrated and easily understandable. The range is designed to enable a better understanding of current consumer patterns in the areas of:

  • Product Spending - annual expenditure on a wide range of products and services purchased by households.

  • Product Trends - provides five-yearly expenditure patterns of products purchased by households.

  • Buyer Profile - details characteristics of consumers such as age, sex, income and occupation.

General Publications

Facts New Zealand

You're not an expert on statistics (don't probably like numbers), but you need some facts. Facts New Zealand is designed for you. It contains a wealth of statistical information presented in an imaginative and friendly way.

The 200-plus pages contain facts about many aspects of New Zealand life - from geography to the national economy - language to health.

Catalogue 01.051.

Price $19.95.

Price $112.50 for copies on a quarterly basis.

ISSN 1171-5057.

Published 1995, 221 pages.

New Zealand in Profile

Slim and pocket-sized, New Zealand in Profile is an ideal giveaway for people wanting to know more about New Zealand. It includes figures on population, production and trade and is an essential item for both the business and general traveller.

Catalogue 01.111.

10 copies for $5.00.

ISSN 0112-5621.

50 copies for $20.00.

Annual. Current edition 1996.

Published 1996.

Key Statistics

Up-to-date statistics are brought together each month in Key Statistics. Over 100 selected tables summarise the most important economic and social indicators released in the previous four weeks. Each edition features an article on specific topics such as life expectancy, overseas trade and environmental accounts. A highlights page gives an at-a-glance picture of the latest trends. This publication is an indispensable ready-reference resource.

Catalogue 01.201.

Price $34.95 per single copy.

Price $295.00 for an annual subscription in New Zealand.

Overseas price on application.

Price $112.50 for copies on a quarterly basis.

Published each month except January, 130 pages.

ISSN 0114-2119.

Hot Off The Press topics covered include:

AgricultureBuildingBusiness
EconomyIncomes and WagesLabour Force
Local GovernmentOverseas TradePrices
Population and Demography... in all over 50 titles to choose from.

Work

Labour Market

Containing details about New Zealand's labour market and employment situation. Labour Market summarises results of the quarterly labour force and employment surveys and other statistics.

Catalogue 01.029.

Published 1995, 180 pages.

ISSN 1171-283X.

Price $49.95.

Annual.

Incomes and Expenditure

Consumer Expenditure

Leading statistics on consumer expenditure are presented in this report.

Catalogue 01.026.

Published 1994, 104 pages.

ISSN 1770-747X

Price $39.95.

Annual. Current edition 1994.

Population and Demography

New Zealand Now series... is aimed at the general reader. These books are a useful source of information on the many issues facing our society. Great for schools, students, polytech lecturers, researchers, policy-makers, business people, politicians and the general public.

Baby Boomers

After World War II there was a dramatic rise in the number of births. Find out through this book the characteristics that set the baby boomers apart from other generations.

Catalogue 01.077.

Published 1995, 72 pages.

ISBN 0-478-04417-8

Price $24.95.

Children

Children brings together vital information about New Zealand's children and outlines the important trends which impact on their lives.

Catalogue 01.061.

Published 1995, 66 pages.

ISBN 0-478-04412-7.

Price $24.95.

Families

Recent trends in New Zealand family life are detailed in this study of the New Zealand family.

Catalogue 01.060.

Published 1995, 82 pages.

ISBN 0-478-04411-9.

Price $24.95.

Asians in New Zealand

This book discusses the demographic, social and economic characteristics of Asians in New Zealand.

Catalogue 01.072.

Published 1995, 114 pages.

ISBN 0-478-04424-0.

Price $24.95.

Maori

Maori describes recent trends in the demographic, social and economic situation of New Zealand's indigenous population, the tangata whenua.

Catalogue 01.059.

Published 1995, 56 pages.

ISBN 0-478-04409-7.

Price $24.95

Te Kanohi Hou O Aotearoa - Maori

New Zealand Now, Maori, also available in te reo Maori.

Catalogue 01.074.

Published 1995, 74 pages.

ISBN 0-478-04430-5.

Price $24.95.

People and Places

This book discusses how New Zealand's rapidly changing birth rates, life expectancies and migration patterns have altered our population's shape and distribution and how it will continue to do so.

Catalogue 01.058.

Published 1995, 65 pages.

ISBN 0-478-04408-9.

Price $24.95.

65 Plus

New Zealand has an ageing society. Population ageing impacts on family structures and formation, household composition and labour conditions. This book addresses some of the issues arising from those changes and is very informative.

Catalogue 01.062.

Published 1995, 106 pages.

ISBN 0-478-04409-7.

Price $24.95.

Pacific Island Profiles is a valuable set of publications profiling the six largest Pacific Island communities in New Zealand - all $19.95 each or buy six for $100.00.

Niuean People in New Zealand

Catalogue 01.064.

ISBN 0-478-04415-1.

Published 1995, 55 pages.

Cook Island People in New Zealand

Catalogue 01.063.

ISBN 0-478-04416-X.

Published 1995, 55 pages.

Fijian People in New Zealand

Catalogue 01.066.

ISBN 0-478-04427-5.

Published 1995, 53 pages.

Tokelauan People in New Zealand

Catalogue 01.067.

ISBN 0-478-04428-3.

Published 1995, 55 pages.

Samoan People in New Zealand

Catalogue 01.065.

ISBN 0-478-04414-3.

Published 1995, 55 pages.

Tongan People in New Zealand

Catalogue 01.068.

ISBN 0-478-04429-1.

Published 1995, 57 pages.

New Zealand Cultural Statistics

This volume covers New Zealand's cultural sector, size and contribution to the economy. It includes topics such as heritage, performing arts, Maori taonga, literature, broadcasting and film and video. New Zealand Framework for Cultural Statistics 1995 a companion volume to New Zealand Cultural Statistics contains a list of activities undertaken by New Zealand's cultural sector.

Catalogue 01.076.

Published 1995, 144 pages.

Catalogue 01.070.

Published 1995, 115 pages.

ISBN 0-478-04434-8.

Price $39.95.

ISBN 0-478-04422-4.

Price $29.95.

Demographic Trends

Annual statistics on population change, fertility and mortality, marriage and divorce rates, external migration and population projections are presented in Demographic Trends.

Catalogue 03.009.

Price $49.95.

ISSN 0113-3667.

Published 1995, 160 pages.

Annual. Current edition 1995.

Regional

Directory of Regional Statistics

The Directory brings together a complete listing of all regional statistics that are available from Statistics New Zealand. It comes in hard copy plus diskettes.

Catalogue 01.432.

Published 1995.

ISSN 0-478-04435-6.

Price $59.95.

Women

All About Women in New Zealand

All About Women focuses on women in the 1990s and the major forces which have shaped them over the past three decades.

Catalogue 01.021.

Published 1993, 244 pages.

ISSN 0-478-84405-4.

Price $39.95.

Business

Business Activity 1995

The statistics, which include the number of businesses and employees and details of economic activity in New Zealand, reflect the country's changing patterns and levels of business activity.

Catalogue 01.030.

Published 1995, 154 pages.

ISSN 1171-2163.

Price $49.95.

Annual. Current edition 1994.

The Prices Report

This quarterly report is aimed at promoting a greater understanding and knowledge of inflation.

Catalogue 18.043.

Published 1995.

Price $45.00 annual subscription or $14.95 single copy.

International Trade

Overseas Trade

New Zealand exports and imports are summarised. Also included are statistics on the value and volume of key commodities and their sources and destinations, as well as data on price and volume indexes. Shipping and cargo statistics complete this picture of New Zealand's overseas trade.

Catalogue 01.017.

Published 1994, 91 pages.

ISSN 0114-2607.

Price $49.95.

Annual.

National Economy

New Zealand System of National Accounts 1995 A comprehensive picture of New Zealand's economy presented within the framework of the United Nations System of National Accounts. The organisation and presentation of this material in a systematic form shows the interaction of the major parts of the economy and the impact of structural change.

Catalogue 08.001.

Published 1995, 154 pages.

ISSN 1170-778X.

Price $59.95.

Survey Assistance

A Guide to Good Survey Design (2nd edition)

The guide deals briefly with undertaking, designing, managing and processing a survey. An updated edition was produced in 1995. Also included is a reading list for fuller treatments of specific issues and suggestions about where to obtain expert opinion and advice.

Catalogue 01.701.

Published 1995, 87 pages.

ISBN 0-477-06492-2.

Price $24.95.

Classifications

New Zealand Standard Classification of Occupations (NZSCO)

This updated publication covers detailed descriptions of various occupational categories.

Catalogue 19.004.

Published 1995, 242 pages.

Price $59.95. Also available on disk for $350.00 + GST.

New Zealand Standard Classification of Households and Families 1995

Households and families are classified on a common basis for informed decision-making policy formulation, implementation and evaluation.

Catalogue 19.075

Published 1995, 88 pages.

ISBN 0-478-04425-9.

Price $29.95.

Classifications Query Tool

This tool has been designed to provide busy companies easy access to the main classifications used by Statistics New Zealand. It is a Windows application that allows you to search the harmonised system classification plus others such as occupations, the Australia New Zealand Standard Industrial Classification, expenditure classifications and so on.

Catalogue 19.069.

Updates 19.071

Price: $95 annually (current subscribers - hard copy)

Country Codes (NZSCC) New Zealand Standard Classification of

This classification provides a two-letter and a three-letter alpha code and a three-digit numeric code for representing the names of countries, dependencies and other areas of political or geographical interest.

Catalogue 19.003.

Current edition 1995.

Price $29.95

First published in 1976, latest reprint 1986, 32 pages.

Maps

Area Unit and Urban Area Maps

These maps show the 1991 Census of Population and Dwellings area unit and urban area boundaries and show region, district, city and ward boundaries. They are also available from each main and secondary urban area and zone as well as each regional council area. Priced from $9.95 to $19.95, a full set is available at a discount price of $450.00.

Census User Maps

These maps show the Census of Population and Dwellings meshblock boundaries. A meshblock is the smallest area for which Statistics New Zealand collects and processes data. There are 1,355 maps in the full series. They are printed on request for an area and cost from $10.00 to $32.00, plus handling costs. We are also able to provide an electronic copy of meshblock boundaries on request; prices on application.

Further information

For further information on other publications or products, just contact the information officers at the office nearest you.

Auckland

70 Symonds Street

Private Bag 92003

Phone: 0-9-358,4588

Fax: 0-9-379,0859

Christchurch

Winchester House 64 Kilmore Street Private Bag 4741

Phone: 0-3-374,8700

Fax: 0-3-374,8864

Wellington

Aorangi House

85 Molesworth Street

PO Box 2922

Phone: 0-4-495,4600

Fax: 0-4-472,9135

Dunedin

Civic Centre (4th Floor)

The Octagon

Private Bag 1935

Phone: 0-3-477,7511

Fax: 0-3-477,5243