New Zealand Official Yearbook 1997

Te Pukapuka Houanga Whaimana o Aotearoa

Cover

Photos from top left: Ngati Toa School, Titahi Bay, Evening Post; Corstophine, Dunedin, Otago Daily Times; Dish and mast, Dunedin, Otago Daily Times; Opera in the Park, Auckland, NZ Herald; The Terry family, Alexander Turnbull Library.

Acknowledgements

The 1996 Yearbook was produced by the Publishing and Community Information Division of Statistics New Zealand, with the assistance of many individuals and organisations—these are listed in the ‘Contributors’ section at the end of each chapter. The department wishes to record its thanks to them and to the following.

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

Photographs: Individual photographs are credited separately.

Statistics New Zealand

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

70 Symonds Street, AUCKLAND
Private Bag 92003, Telephone 0-9-357 2100, Facsimile 0-9-379 0859

Aorangi House, 85 Molesworth Street, WELLINGTON
PO Box 2922, Telephone 0-4-495 4600, Facsimile 0-4-495 4610

Winchester House, 64 Kilmore Street, CHRISTCHURCH
Private Bag 4741, Telephone 0-3-374 8700, Facsimile 0-3-374 8864

4th Floor, Civic Centre, The Octagon, DUNEDIN
Private Bag 1935, Telephone 0-3-477 7511, Facsimile 0-3-477 5243

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 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.

The coat of arms was revised in 1956 following further constitutional changes when 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’.

New Zealand Official Yearbook 1997
ISSN 0078 0170
ISBN 1-85956-211-9

Copyright © Statistics New Zealand 1997.

Published in 1997 by GP Publications, PO Box 12052, Thorndon, Wellington.

Printed by GP Print, Wellington, New Zealand.


Table of Contents

List of Tables

Foreword

This 100th edition of the New Zealand Official Yearbook maintains the traditional high standard of this most useful general reference work. It is a standard that has not only been consistently high; it has even been lifted in recent years—to the point where older Yearbooks are always worth retaining, alongside more recent editions, because of changes of emphasis in the material featured.

New Zealand Official Yearbooks are increasingly valuable additions to any library, because of their rare combination of characteristics: they always contain an enormous amount of reliable data to be sure, but they are also intelligently illustrated; they contain succinct historical articles which, happily, do not over-simplify; they are unfailingly well organised; their graphic design is a model of clarity and easy readability; they are well written and well edited; and even the paper and the binding are of high quality.

All contributors to every New Zealand Official Yearbook are entitled to be immensely proud of the accomplishments each so clearly represents. I doubt that there is a single rival to the New Zealand Official Yearbook as the outstanding national almanac, published anywhere. Congratulations to those responsible for this 100th edition. May the next 100 editions maintain the standard set by this, the New Zealand Official Yearbook for 1997.

THE RIGHT HONOURABLE SIR MICHAEL HARDIE BOYS, GNZM, GCMG
Governor-General of New Zealand

Preface

This 100th edition of the New Zealand Official Yearbook celebrates the continuing publication of these volumes over 104 years. Wars and the Depression prevented publication in four years. The 1997 edition marks this publishing centenary by reference back to the first edition in 1893, special articles on New Zealand organisations and institutions, and a comprehensive timeline from 1893 to the present. In addition, a specially selected series of historic photographs shows life in New Zealand over the 10 decades from 1893. These range from ploughing in 1895 to Dominion Day 1907, election results in 1925, first policewomen 1943, and completing census forms 1996.

The Yearbook has its origins in the Official Handbook of New Zealand—a Collection of Papers by Experienced Colonists on the Colony as a Whole and in the Several Provinces, which was edited by the then Premier of New Zealand, Julius Vogel and printed in England. It was published in 1875. From then until the emergence of the first Official New Zealand Yearbook in 1893 there was sporadic publishing of Handbooks.

As in the past 99 editions, the 1997 Yearbook presents a wide range of official and general information about our country. The Yearbook is the one-volume publication which balances the hard statistics of New Zealand society and economy with a snapshot view of events and achievements during the year.

Information gathered in the Censuses of Population and Dwellings has been an important aspect of Yearbooks since the earliest editions. The 1997 Yearbook contains as much information from the 1996 Census as was available at the time of printing. The 1998 edition will have fuller coverage as more census results are analysed.

As has been the situation with the previous 99 editions, it would not have been possible to present the wide-ranging information in the 1997 New Zealand Official Yearbook without considerable time, effort and goodwill of the hundreds of contributors in New Zealand organisations. I thank them all, especially those who contributed special articles to mark the 100th edition. I also thank the editor, the editorial team, Statistics New Zealand staff and Yearbook printers for producing a centenary volume in the best traditions of New Zealand statistics and New Zealand publishing.

LEN COOK
Government Statistician

June 1997

How to use the 1997 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 1997 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 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 1996 or some collected early in 1997.

Tables

The source of a particular table is noted at the foot of the table. The following symbols are used in all the tables:

x or Rrevised figure or figures
nil or zero
..figures not available
 not yet available—space left blank
not applicable
amount too small to be expressed
Pprovisional
necnot elsewhere classified
nesnot elsewhere specified
neinot elsewhere included

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.

A glossary of statistical terms used is given at the back of the book.

Liability

Statistics New Zealand has made every effort to obtain, analyse and edit the information and statistics used in the Yearbook. However, Statistics New Zealand gives no warranty that the information or data supplied contains no errors, and shall not be liable for any loss or damage suffered consequent on the use, directly or indirectly, of the material contained in the Yearbook.

Chapter 1. Geography

Marking cracks on the surface of a scale model, to guide repairs to the piles of the Wellington Motorway Thorndon overbridge.

1.1 Physical features

New Zealand lies in the south-west Pacific Ocean and comprises two main and a number of smaller islands. Their 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 160° 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: Land Information New Zealand

sq km
North Island†115777
South Island†151215
Offshore islands‡833
Stewart Island1746
Chatham Islands963
          Total270534

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 fewer than 200 metres above sea level. In the North Island the main ranges run generally north-east to south-west, parallel to the coast, from East Cape to Cook Strait, with further ranges and four volcanic peaks to the north-west. The South Island is much more mountainous than the North Island. A massive mountain chain, the Southern Alps, runs almost the length of the island. There are many outlying ranges to the Southern Alps in the north, and the south-west of the South Island. There are at least 223 named peaks higher than 2,300 metres. There are also 360 glaciers in the Southern Alps. The largest are, on the east, the Tasman (length 29 km), Murchison (13 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 Māori and European names of this mountain have had official recognition.

Peaks over 3,000 metres.

Source: Land Information New Zealand

metres
North Island
     Ruapehu2797
     Taranaki or Egmont*2518
     Ngauruhoe2287
     Tongariro1967
South Island†—
     Cook3754
     Tasman3497
     Dampier3440
     Silberhorn3300
     Hicks (St David's Dome)3198
     Lendenfeldt3194
     Torres3163
     Teichelmann3160
     Sefton3157
     Malte Brun3155
     Haast3138
     Elie de Beaumont3117
     Douglas3085
     La Perouse3079
     Heidinger3066
     Minarets3055
     Aspiring3033
     Glacier Peak3007

Mount Cook from Maltebrun, photographed by Thomas Pringle on 1 May 1905.

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: NIWA

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*

LakeMaximum depthArea

* Over 20 square kilometres in area.

Source: NIWA

msq. km
North Island— 
      Taupo163606
      Rotorua4580
      Wairarapa380
      Waikaremoana24854
      Tarawera8736
      Rotoiti9434
South Island— 
      Te Anau417344
      Wakatipu380293
      Wanaka311193
      Ellesmere2181
      Pukaki70169
      Manapouri444142
      Hawea384141
      Tekapo12088
      Benmore (artificial)12075
      Hauroko46271
      Ohau12961
      Poteriteriuncharted47
      Brunner10939
      Coleridge20036
      Monowai16131
      Aviemore (artificial)6229
      Dunstan (artificial)uncharted27
      Rotoroa15223
      Mahinerangi (artificial)3121

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.

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.

“Westshore embankment presents almost terrifying appearance” was the caption to this photograph by Trevor Ullyat when it first appeared in a Hawke's Bay newspaper after the Napier earthquake, 3 February 1931.

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 1996. It was a quiet year for earthquakes throughout New Zealand in 1996. In each of the previous three years a large earthquake with thousands of aftershocks has occurred. In comparison, 1996 was a return to quiet times, with no shallow earthquake larger than magnitude 6 being recorded.

The most damaging earthquakes occurred near Hanmer in the South Island on 29 August and 20 September. These shocks were both of about magnitude 5.5 and mainly caused damage to contents of dwellings in Hanmer. Local residents were subsequently disturbed by small aftershocks.

On 28 September a large deep earthquake of magnitude 6.2, located under the central North Island, was felt from Christchurch to Auckland. This shock, the largest for the year, caused no significant damage because of its 220 km depth. There is a zone of deep earthquakes under the North Island due to the collision of the Pacific and Australian tectonic plates. The more dense Pacific Plate is sinking slowly under the Australian Plate, and the zone of deep earthquakes is due to the heating and bending of this material as it sinks.

Southern Hawke's Bay was hit by two magnitude 5.0 earthquakes during the year, the first on 8 April and the other on 6 October. Neither event was sufficiently large or shallow to cause significant damage. A slightly larger magnitude 5.3 earthquake on 1 June occurred 10 km east of Levin, and was felt as far away as Christchurch. It had a depth of 36 km, so again was not significantly damaging. On 23 December a magnitude 5.2 earthquake occurred near Palmerston North. The depth was 80 km, so again little damage was reported.

Mt Ruapehu erupted for a second time within a year on 17 June. As was the case for the 1995 eruption, there was little associated seismic activity, just small earthquakes and volcanic tremor associated with the actual eruption near the crater.

Earthquake risk. The Earthquake Commission engaged Works Consultancy Services (WCS) to study the results of the worst foreseeable disaster that could reasonably be anticipated within a generation. WCS confirmed that this event was a 7.5 Richter scale earthquake along the Wellington fault line within the city limits. It has a probability of occurring within the next 50 years of between 8 and 11 percent, and would affect 150,000 residential properties from Palmerston North to Nelson as well as infrastructure (roads, bridges and services).

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 1996

1996 was a year of contrasting climate conditions in New Zealand with new records of extreme rainfall and temperature. There were at least ten flood-producing events. Severe snowstorms with extremely low temperatures hit Southland in July. Some damaging wind events occurred, and at the end of the year several severe hail storms (all within a four-week period) produced damage in horticultural areas. Cyclone Fergus ended the year with record rainfall in the Coromandel.

A weak La Nina pattern persisted throughout the year. It originated in the tropical eastern Pacific Ocean, where a pool of colder than normal ocean water developed, and is one of the reasons why northern New Zealand, for the second consecutive year, had a mild, wet winter, while the south was cold. During La Nina episodes cyclones of tropical origin are also more likely to pass near New Zealand.

More depressions tracked across New Zealand during 1996, producing stormy westerlies over the North Island. At the same time, more frequent cooler easterlies on the tail of these storms prevailed over the southern half of the South Island.

Rainfall. 1996 was rather wet over much of the North Island, with 125 to 150 percent of average rainfall in the Hauraki Gulf, South Auckland, Waikato and the King Country. Waiheke Island had its wettest year since records began in 1914. It was also wetter than usual in many other North Island regions, with rainfall between 110 and 125 percent of normal. Only Whangarei and the Wairarapa had near average rainfall.

A toboggan ride down Mt Ruapehu's ash-covered slopes, 8 July 1996. The ash cloud disrupted air travel and closed two commercial ski fields, Turoa and Whakapapa.

WEATHER

Snow-covered Brockville houses against a dark Dunedin sky about 11.30 am on 12 June 1996.

There were contrasting conditions in the South Island. Only 75 percent of normal rainfall occurred around Hanmer. Central Otago and Southland received rainfall between 85 and 90 percent of normal.

Of the four main centres, Auckland was the wettest with 1,417 mm and Christchurch the driest with 608 mm. Wellington amassed 1,266 mm and Dunedin 786 mm. Clyde was the driest town measured in New Zealand, with only 376 mm. Milford Sound was the wettest location, with 6,295 mm.

Table 1.6. LOCATIONS WITH NEAR OR RECORD HIGH RAINFALL FOR 1996

Location1996 totalAverage mmPercent of averageYear records beganRank
Annual:
Waiheke Island1,7001,1311501914Highest
Monthly:
Whitianga (Dec.)4321054111941Highest
Mokohinau Id (Dec.)218623501934Highest
Wanaka Airport (Apr.)145562591928Highest
Paeroa (Dec.)2591052471914Highest
Kerikeri (Oct.)3431422421935Highest
Arthur's Pass (Apr.)8603612381917Highest
Hokitika (Oct.)49926718718663rd highest

Temperatures. Colder conditions, with temperatures more than 1C below average, occurred in inland Otago and Canterbury. Temperatures were 0.5C or more below average in the remainder of South Canterbury, Otago, Southland, and inland Nelson/Marlborough. Temperatures were also below average in much of Taranaki and Wanganui.

In contrast, temperatures were close to average in Westland, and throughout much of the North Island, and above average in the Kaipara/South Auckland areas. The national average temperature was 12.5C, which was 0.1C below normal. This compares with a 1995 national average temperature of 12.6C.

September was the second warmest in New Zealand since records began in 1853, with record high temperatures in Levin and Wellington (Kelburn), and second highest since records began in Ruakura, East Taratahi, Palmerston North and Gore. Highest temperature for the month, 28.0C, was recorded at Waimate. The national average temperature for September was 11.7C, 1.4C above the long-term mean.

Extremely low mean November temperatures were recorded in inland regions of both islands, with temperatures 2 to 3C below normal in some areas. Record, or near record, low mean temperatures were recorded at Taumarunui, Waimate and Milford Sound.

The highest extreme temperature for New Zealand in 1996 was 34.7C, measured at Christchurch Airport on 7 February. The lowest temperature for the year was −15.3C, recorded at Tapanui, Southland on 4 July, the same day as lowest ever minimum air temperatures were recorded at both Gore (−10.5C) and Invercargill (−9.0C).

Sunshine. There were record high sunshine hours in Buller, with over 115 percent of normal. It was also very sunny in the Bay of Plenty, Westland, Otago and Southland, all having 105 to 110 percent of normal hours. Slightly above average sunshine totals occurred over much of the South Island (apart from Canterbury, which had below average hours). Sunshine was close to average in many North Island areas.

Record high sunshine hours occurred at Arapito (Karamea) with 1,916 hours (306 hours above average), the highest since records began in 1979. It was very cloudy in Gisborne which recorded a record low of 1,898 hours, only 86 percent of the annual average, and the lowest in 60 years of records.

Blenheim was the sunniest centre, recording 2,583 hours, followed by Nelson with 2,483 hours and Tauranga with 2,463 hours.

Table 1.7. SUNSHINE HOURS

CityTotal hoursDeparture from normalComments
Auckland2082+70Sunny
Wellington2062+12Near average
Christchurch1929−128Below average
Dunedin1766+168Very sunny

Floods. There were at least ten flood-producing rainfall events during 1996, some of which were severe. On 19 January a one-and-a-half-hour ‘cloud burst’ resulted in 50 mm of rainfall in Greenlane (Auckland) and flash flooding in east Auckland. Events of this magnitude occur on average once every 20 years. From 24 to 28 January a storm of tropical origin over the Kermadecs brought rainfall totalling 362 mm in 48 hours at Raoul Island, the highest 2-day rainfall total since records began in 1937. The edge of the same storm produced surface flooding in Gisborne.

Heavy rainfall on 7-8 February brought surface flooding and roads blocked in areas of coastal South Canterbury, with significant damage to crops south of Ashburton. High rainfall (more than 300 mm inland, and about 160 mm along the coast) occurred in the Gisborne region over the last two days of March, resulting in slips and surface flooding. Northern Hawke's Bay was also affected.

Thunderstorms and heavy rainfall affected northern and eastern areas of the North Island over the night of 21-22 May. There was extensive flooding at Pukekohe, and Waikato, Bay of Plenty, Hawke's Bay and Wellington were also affected by heavy overnight rain. Thunderstorms and heavy rainfall produced flooding in Waikato on 12 September, leaving paddocks and part of State Highway 1 flooded.

SOUTHERN OSCILLATION INDEX
Air pressure recordings from Tahiti and Darwin

Items banned under the Trade in Endangered Species Act were displayed by a Senior Conservation Officer in 1988. The legislation brought New Zealand into conformity with the Convention of International Trade in Endangered Species (CITES).

In the year to June 1996 more than 20,000 specimens or items were surrendered or seized at ports, airports or in the mail, the Department of Conservation reported. The largest group was oriental medicaments incorporating parts or derivatives of CITES-listed species, particularly at the Auckland International Mail Centre.

An Interdepartmental Fauna and Flora Task Force investigates and works to prevent illegal trade in species listed in CITES. During the year to June 1996 it intercepted unauthorised attempts to export pigeon eggs to Australia, and to import tortoises and chameleons from the USA.

Heavy rainfall occurred in Fiordland on 7 October. The Homer Tunnel was damaged after heavy rainfall (178 mm in 20 hours) resulted in avalanches. Flooding was reported at a number of sites on SH6 from Makarora to Wanaka, and Cromwell to Luggate. On 29-30 December Cyclone Fergus brought over 300 mm of rain to Northland, and 242 mm at Whitianga, closing roads and disrupting holiday arrangements.

Tornadoes. Small tornadoes caused damage in Ruakaka, Northland, on 29 April; in the Tauranga area (with a waterspout) during the evening of 22 May, with several trees uprooted in Bethlehem and rooves lifted further west; and a small tornado, associated with a thunderstorm, produced a path of damage through Whitianga and Cooks Beach (Coromandel Peninsula) on 15 August, taking rooves off several houses, uprooting trees and damaging power lines.

Gales and storm. Northwesterly gales caused widespread power cuts and property damage north of Gisborne early on 1 July, leaving thousands of families without electricity. Tolaga Bay was hardest hit, with many buildings damaged and trees blown over.

Severe wind occurred in parts of New Zealand on 7 October. Tornado-like winds that morning caused a trail of damage to property in Hokitika. Gales and heavy rainfall affected the country on 13 October, with power outage and damage to property in Auckland, Wellington and the Wairarapa. Gusts to 89 knots (165 km/h) were recorded at Castlepoint, and 59 knots (110 km/h) noted in Auckland.

A northwesterly storm brought rain and high winds to much of New Zealand over 18-19 November, as an exceptionally deep depression passed over the South Island, with trees fallen in places, and power cuts in Poverty Bay and coastal Otago. Wind gusts to 156 km/h occurred at Castlepoint, and 132 km/h in Wellington. The system also produced extremely low atmospheric pressures (971.8 hPa) at Christchurch and Timaru airports during the afternoon of 19 November.

Snowfalls. The year's first wintry southerly outbreak on 26 May brought significant snowfall to North and South Island ski fields, and on the Desert Road (which was closed).

From 9 to 11 June, light snow fell to low levels in Southland, in parts of inland Otago, and Dunedin hill, with blizzard conditions reported further south about Mosgiel. There was snow to 23cm near Queenstown, and the heaviest June snowfall in 10 years at Coronet Peak. The Rimutaka Hill Road and the Desert Road were closed, and the Napier-Taupo road, temporarily. The snow falls were greatest in Canterbury, with 42 cm in some inland areas. In Christchurch light snow settled.

A severe chill brought heavy snowfall to Southland and Otago, with a bitterly cold southerly outbreak over 1 and 2 July, followed by clearing weather with severe frost. The northern motorway out of Dunedin and some Southland roads were closed. Ice made many roads extremely dangerous and the Rimutaka, Desert, and Napier-Taupo roads were closed by snow on 2 and 3 July. Snow was up to 35 cm deep on the Napier-Taupo Road on 4 July, isolating some areas of Hawke's Bay, and said to be the worst snowstorm in 40 years. A rare snowfall was reported on the Moehau Range, Coromandel. Snow also fell in areas around Christchurch on 2 July. Many water-pipes burst in Invercargill when temperatures were high enough for the thaw to begin on 10 July. Lowest ever minimum air temperatures were recorded at Manapouri, Gore, Invercargill, Dunedin Airport and Hororata.

Snow fell to sea level overnight on 21 August in both Dunedin and Christchurch, settling in places, and in the North Island closed the Desert Road. Further snow fell to sea level in coastal Otago on 29 August, being heavy in some rural areas. This event also closed the North Island's Desert Road.

Hailstorms. A dramatic hailstorm, with lightning, hit parts of Canterbury in the afternoon on 5 December. Hailstones of marble to walnut size (up to the size of a 20c piece) were reported in Belfast, near Christchurch. This was followed the next day by severe hail, up to 15 mm in diameter, in Hawke's Bay. Large hail also affected Bay of Plenty.

Further damaging hailstones occurred in Appleby, Nelson, during the afternoon of 16 December. Damage to apple crops resulted in millions of dollars lost to orchardists.

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 ice ages. 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.

Preservation of the sensitive Kaimanawa ecosystem became controversial during 1996-97 when further proposals were made to cull the wild horses (see Chapter 16: Land and environment).

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 (87 species). Almost half 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.

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 plants1842†181384
Earthworms40178100
Land snails/slugs12520†99
Spiders/harvestmen602500†90
Insects11009460†90
Freshwater fish23†2785
Amphibia37†100
Reptiles—
     land362†98
     marine..6..
Birds—
     land/freshwater418454
     marine08720
Mammals—
     land333100
     marine1346

Members of the Wellington Plant Conservation Network check progress on the nationally-endangered coastal shrub Muehlenbeckia astonii. Male and female flowers of this species grow on separate shrubs. Because of coastal development, the plants in the wild became increasingly scattered and too distant from each other to breed. As a result the total North Island population dwindled to 45 known specimens, only two of which were breeding, and most seedlings were being eaten by snails and slugs. Cuttings were taken from surviving populations around Wellington and the Wairarapa and new plants grown on traffic islands and other areas in Hutt City.

Network members are from the Department of Conservation, local councils, Victoria University of Wellington, Wellington Botanical Society, nurseries and individuals. Their aim, through this “captive breeding” programme, is to restore threatened species to once again become self-sustaining in their native habitats.

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 specimens 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), and their evolution in the absence of mammalian predators (birds) or browsers (plants). 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 pre-1800 period following the arrival and expansion of Māori, forest cover was reduced and some 34 species became extinct including moa, the adzebill and the flightless goose. In the much shorter post-1800 period of European settlement the area of forest was further reduced to around 25 percent of the land, 9 more birds became extinct and many more are threatened. Many new species were introduced (since 1840 over 80 species of mammal, bird and fish and more than 1,800 plant species) in many places totally changing the landscape and ecology.

Endangered Cook Strait giant wetas are the first threatened species to begin a new life on rodent-free Somes (Matiu) Island in Wellington Harbour, 1996. They came from rodent-free Mana Island and are part of the Department of Conservation's plan to restore the Somes ecosystem to its former condition.

1.5 Time zone

One uniform time is kept throughout mainland New Zealand. This is the time 12 hours ahead of Coordinated 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 Land Information New Zealand, NIWA.

  • 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

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; Department of Conservation; Tim Armstrong, Industrial Research Ltd.

Further information

Archeology

Trotter, M and McCulloch, B, 1996 Digging up the past: New Zealand's archaeological history. Viking.

Climate

Johnson, K F 1986 Bibliography of New Zealand Meteorological Service publications 1892-1985. New Zealand Meteorological Service.

Sturman, A and Tapper, N, 1996 The weather and climate of Australia and New Zealand. Oxford University Press.

Wards, 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, as well as regional climatologies, maps and other publications.

Geography

Wards, I, 1976 New Zealand Atlas. Government Printer.

Topographical maps of the whole country can be obtained from Terralink Ltd (the Map Centre, Upper Hutt) and retailers around New Zealand.

Geology

Aitken, J J, Lowry M A, 1995 More Earthquakes Explained. Institute of Geological and Nuclear Sciences.

Aitken, J J, 1996 Plate tectonics for curious Kiwis. Institute of Geological and Nuclear Sciences.

Brazier, R, Keyes, I, Stevens, G 1990 The great New Zealand fossil book: Pictures of ancient life in an evolving land. Institute of Geological and Nuclear Sciences.

Forsyth, P J, Aitken, J J, 1995 New Zealand minerals and rocks for beginners. Institute of Geological and Nuclear Sciences.

Gregory, J 1988 Ruamoko's heritage: Volcanoes of New Zealand (video and kit) Institute of Geological and Nuclear Sciences.

Thompson, B, Brathwaite, B, Christie, T 1995 Mineral wealth of New Zealand. Institute of Geological and Nuclear Sciences.

Precious land: Protecting New Zealand's landforms and geological features. Institute of Geological and Nuclear Sciences.

The Institute of Geological and Nuclear Sciences publishes a wide range of geological and geophysical maps covering all New Zealand, plus maps of particular areas, and many bulletins, reports, and popular guidebooks and handbooks.

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.

Heather, B D and Robertson, H A 1996 The field guide to the birds of New Zealand. Viking.

King, C M 1984 Immigrant killers. Oxford University Press.

Meads, M 1990 Forgotten fauna. DSIR.

Molloy, L and Cubitt, G 1994 Wild New Zealand: The wild landscapes and wildlife of New Zealand. New Holland.

Salmon, J T 1980 The native trees of New Zealand. Reed.

Salmon, J T 1992 A field guide to the alpine plants of New Zealand. Godwit.

Chapter 2. History

During his September 1996 visit to New Zealand, the 14th Dalai Lama spoke to 2,750 people in the Dunedin Town Hall; another 500 watched on a large screen in the Glenroy Auditorium next door.

2.1 Chronology 1996

January. Auckland's Opera in the Park featuring Dame Kiri Te Kanawa and the Auckland Philharmonia Orchestra attracts a crowd of 300,000. New Zealand welcomes the announced end to French nuclear testing in the Pacific. All five passengers aboard a Sounds Air Cessna die when it crashes near Picton. A replica of Captain Cook's Endeavour visits New Zealand harbours.

February. While official Waitangi Day celebrations are held at Government House in Wellington, 400 protestors clash with police at Waitangi. New Zealand's international credit rating is upgraded by Standard and Poors' from AA to AA+. Sky Television and the New Zealand Rugby Football Union announce a deal which ends live free-to-air test rugby broadcasts. New Zealand's second casino, the Sky City Casino, opens in Auckland. Auckland band OMC's song How Bizarre reaches number one in the Australian music charts.

March. Following a series of car fires possibly linked to new unleaded petrol, oil companies are ordered by the Government to reduce levels of aromatics in the new fuel. A world-first gene treatment operation is performed on two American toddlers at Auckland Hospital. Former Court of Appeal judge, Sir Michael Hardie Boys, is sworn in as Governor-General.

April. White-spotted tussock moths, a potential threat to New Zealand forestry, are discovered in Kohimarama, Auckland. The fatal shooting of Flaxmere community constable Glenn McKibbin sparks a six-week hunt for his suspected killer. New Zealander Jason Winter among the 35 killed at Port Arthur, Tasmania, in Australia's worst massacre. Michael Laws, New Zealand First MP for Hawke's Bay resigns; to avoid a by-election, the Government sets an earlier than usual date for the 1996 general election.

May. A quarantine is set up in Auckland suburb Mt Roskill after the discovery of breeding Mediterranean fruit flies. New Zealand's thirteenth National Park, Kahurangi, is opened in northwest Nelson. In a world-first operation at Auckland's North Shore Hospital, two people receive transplants of insulin-producing pig cells. After refusing to leave a fellow climber, veteran mountaineer Rob Hall dies near the summit of Mt Everest. The Auckland Blues beat the Natal Sharks 45-21 to win the Super 12 rugby series. Choi Seung-Jin, former vice-consul of the Korean Embassy in Wellington, is deported to South Korea to face charges of leaking sensitive documents to the opposition party. Minister of Conservation Dennis Marshall resigns, 13 months after a Department of Conservation viewing platform collapsed at Cave Creek killing 14.

June. Queen's Birthday honours are the first under a new New Zealand-based honours system. The eruption of Mount Ruapehu disrupts the start of the ski season. The man accused of shooting Constable McKibbin in April is shot dead by police after being confronted in a Havelock North orchard. New Zealand singer/ songwriter Neil Finn announces that Crowded House are to split up. The keel for New Zealand's second Anzac class frigate, HMNZS Te Mana, is laid at Williamstown, near Melbourne. Māori are granted the right of appeal to the Privy Council over their fisheries. The Waitangi Tribunal announces its finding on last century's Taranaki land confiscations and recommends the Government make generous reparations.

July. To celebrate a record profit, New Zealand Post declares 1 July a free postage day for all medium-sized letters with handwritten addresses. Auckland band OMC's song How Bizarre goes to number one in the Canadian and Irish music charts, and number five in the United Kingdom's. Swimmer Danyon Loader and equestrian Blyth Tait win gold medals at Atlanta's Olympic Games. The All Blacks win the Bledisloe Cup and the inaugural professional tri-series against Australia and South Africa. The New Zealand softball team beats Canada in the United States to win the world series. Lorraine and Aaron Cohen arrive home after 11 years imprisoned in Malaysia for drug trafficking offences. Publicist Michelle Boag quits the TVNZ Board and stands down from the National Party's communications committee after misleading the wine box inquiry. The Crown is ordered to pay $328 million to Equiticorp's statutory managers; the Crown announces it will appeal. First legal sports betting (on a Bledisloe Cup rugby match) at the TAB.

August. Forestry Corp is sold to consortium partners Brierley Investments Limited and Chinese-owned Citifor for $2 billion, the sale including cutting rights to Kaiangaroa State Forest. New Zealand's 34-member team at the Atlanta Paralympics win a record nine gold medals. The Government stops a proposed cull of the Kaimanawa wild horses. The Māori Reserve Land Amendment Bill is introduced to Parliament. Secondary school teachers settle a nine-month-old pay dispute.

September. The 14th Dalai Lama visits New Zealand and meets the Prime Minister despite protests from the Chinese Government. Hamilton- based Kiwi Air, set up to provide cheap flights to Australia, goes into voluntary liquidation leaving 3,000 travellers stranded. Shayne King from Taranaki wins the world 500cc motorcross title. The All Blacks win a historic first test series against the Springboks in South Africa.

October. New Zealand's first election under MMP is held giving National 44 seats, Labour 37, New Zealand First 17, the Alliance 13, Act 8, and United 1. A $170 million settlement for the Ngai Tahu land claim is proposed. A $40 million settlement is reached on the Whakatohea claim. A spraying programme, using a low-flying DC6 aircraft, begins in Auckland in an attempt to eradicate the white-spotted tussock moth. Centenary of the first public screening of motion pictures in New Zealand.

November. Michael Jackson plays two concerts to sell-out crowds in Auckland. A Palmerston North detective is arrested after staging a ‘satanic’ attack on himself the previous month. New Zealand's first Anzac class frigate, HMNZS Te Kaha, visits Auckland before beginning sea trials. Crowded House gives a farewell concert on the steps of the Sydney Opera House to an audience of 80,000.

December. New Zealand's first government under MMP is formed following the announcement of a coalition deal between New Zealand First and the National Party. Murder of Sheryl Thayer, a New Zealand nurse working with the Red Cross in Chechnya. Privy Council hears appeal by three iwi groups against fisheries settlement assets allocation. Thousands of holiday-makers in Northland and the Bay of Plenty have their plans disrupted when a deep depression, previously known as Cyclone Fergus, passes over New Zealand. Associated high winds and rain, coinciding with high tides, cause extensive coastal flooding.

2.2 Our century

A selection of New Zealand events since the first New Zealand Official Yearbook was published in 1893.

Chronologies have been included in the Yearbook since 1898, and up to about World War I were very detailed for the early years of New Zealand's history.

The Yearbooks also carried extensive lists of books published in New Zealand.

 MāoriEnvironment and ScienceGovernment/Law
1893Bills from Māori Parliaments 1893-96 introduced into Colonial Parliament either ignored or defeated, Electoral Act extended franchise to women.
1894 NZ's first National Park created by donation of land by Ngati Tuwharetoa.Shops and Shop Assistants Act limited hours of shop business.
1895
1896
1897Te Aute Students Association formed, later known as Young Māori Party. 92 Parihaka Māori arrested & imprisoned for ploughing land leased to Pakeha Rt Hon Earl of Ranfurly became Governor.
1898Resentment against 1881 Dog Tax legislation led to armed confrontation Divorce Act. Act to provide for old age pensions.
1899James Carroll Minister of Māori Affairs (until 1911)Botanist B C Aston appointed to Department of Agriculture. T H Easterfield foundation professor of chemistry/physics at Victoria University College. Kirk's “Students' Flora of New Zealand and the Outlying Islands” published.Farmers Union formed. Liberals won election. Sir Robert Stout became Chief Justice.
1900Māori Councils Act set up health programmes organised by Maui Pomare, Apirana Ngata, Peter Buck to promote better sanitation, housing & clean waterFirst seismographic reading in NZ, Milne seismograph installed in Wellington. 
1901Queen Victoria School for Māori Girls, Auckland, foundedMilne seismograph installed in Christchurch. At conference of NZ fruitgrowers and horticulturalists in Dunedin, L Cockayne proposed establishment of regional scientific research stations for plant research.Visit of Duke & Duchess of Cornwall & York to thank NZ for Boer War support. Cook Islands became part of NZ.
1902Mahuta (3rd Māori King) accepted Legislative Council seat, became Minister representing Māori on Executive CouncilL Cockayne discovered the suppression of spines on Discaria toumatou.British Labour leader Tom Mann made lecture tour of NZ. Liberals won 5th successive election.
1903W F Massey unanimously elected leader of the Opposition.
1904Portobello marine fish-hatchery & biological station opened.Rt Hon Baron Plunket became Governor.

Mount Cook School (jail in background right), about 1890.

International Affairs and DefenceSocietyTransportArts and Communication
 
 
 
 
 Pigeon post service, Gt Barrier Is to AucklandThe Cyclopedia Company, Wellington, began publication of the first NZ encyclopedia. 6 regional vols of local information followed. David McKee Wright's “Station Ballads” was published in Dunedin
 William Pember Reeves published “The Long White Cloud”.
NZ sent Ist contingent of 214 officers & men with horses to South AfricaG Hogben appointed Inspector-General of Industrial Schools and began reform. Victoria University College opened. 
Slingersfonteein renamed NZ Hill after NZ success in defending it with bayonet charge.Public Health Act made Health Dept. responsible for health service including vaccinating children. Bubonic Plague Prevention Act. Municipal Corporations Act. Defence Act Amendment Act provided for cadet corps. Holy Cross College, Mosgiel, established.6-day-a-week summer service by steamer “Tongariro” introduced on Lake Taupo. G Hemming, Dunedin acquired a steam-powerd Locomobile. Wellington City Council took over city transport. First electric trams in Dunedin.General Assembly Library built. “Old Marlborough” by T L Buick was published in Palmerston North.
 Royal Commission recommended uniform scales for teachers' staffing and salaries. School Attendance Act passed. School leaving age raised to 14. First Presbyterian deaconness, Sister Christabel Duncan dedicated in Dunedin.A Mr Oates drove a Benz for the first motor car journey from Wellington to Napier. Railway line from Stratford to the MainTrunk line was begun. NZ was represented on the new Commonwealth Cable Management Board.Art Nouveau began to influence NZ art significantly. Film records were made of the visit of the Duke and Duchess of Cornwall & York to NZ.
The Boers surrendered. NZ force regarded as “the best mounted troops in South Africa”. The Permanent Militia became the Permanent Force. Artillery and engineers given the title Royal NZ Artillery & Royal NZ EngineersFirst tuberculosis sanatorium established at Cambridge. Manual training for primary pupils began. There were 202 trade unions, mainly in transport, mining and building industries.The Motor Car Regulation Act passed. The Automobile Association was formed, first in Auckland. Kelburn Cable Car opened. Auckland's electric tram service began. Telegraph cable linked Vancouver, Fanning Island, Fiji, Norfolk Island, Queensland, Auckland.William Satchell published a novel, “The Land of the Lost”. Canterbury Society of Arts Durham St. Gallery improved to display permanent collection and regular exhibitions. Salvation Army's Biorama Co toured NZ with music and motion pictures.
 legislation prohibited smoking for children. Parliamentary Select Committee recommended training colleges for primary teachers in 4 main centres. Secondary Schools Act introduced free places for all who passed Proficiency exam.Temuka farmer Richard Pearse experimented with powered flight. End of Pacific cable landed in Doubtless BayFrances Hodgkins & Dorothy K Richmond came to Wellington to teach and paint. “Tapu” an opera composed by Alfred Hill seen in Wellington. Concert tours were made by Dame Nellie Melba, Percy Grainger, Mark Hambourg.
 Midwives Act, Dentists Act. 14 cases of smallpox in Christchurch. Regulations introduced for inspection & examination of public schools. Free kindergartens in 4 main centres. Comprehensive school syllabus aimed at character formationCanterbury Steam Shipping Co founded in Christchurch. Schooner “Aotea”, first NZ vessel built with an internal combustion engine. Wellington ‘s electric tramway opened.Van der Velden painting in Wellington. James Nairn died; a memorial exhibition was held. Ignace Paderewski gave concerts in Auckland, Wellington, Christchurch, Dunedin & Invercargill.

The Brunner 1896 mining disaster cost 65 lives. One hundred years later it was commemorated with a re-enactment of the funeral cortege, seen here crossing the old Brunner suspension bridge over the Grey river at Taylorville.

 MāoriEnvironment and ScienceGovernment/Law
1905Land Boards with Pakeha presidents replaced Māori CouncilsJ Malcolm, pioneer of medical research, appointed to chair of physiology at University of Otago.Liberals again won the election.
1906Rua Kenana establishing settlement and following at Maungapohatu, 1906-10 Seddon died suddenly. Sir Joseph Ward became Prime Minister.
1907Royal Commission on Māori land alienation, 1907-09Animals Protection Act protected the tuatara and 36 kinds of bird.NZ given title of Dominion. Fire destroyed Parliament Buildings. Tohunga Suppression Act passed.
1908Tohunga Suppression Act imposed penalties on professed tohungaNobel Prize in Chemistry awarded to Ernest Rutherford. Scientific spokesman G M Thomson elected to Parliament as member for Dunedin North.NZ Federation of Miners formed.
1909New syllabus introduced to “native schools” similar to that used in general schools; Māori children punished for speaking te reo at school, start of serious decline in number of fluent Māori speakers. Native Land Act leads to increased land alienation.Chilton's “Subantarctic islands of New Zealand” presented the results of the 1907 scientific expedition. C A Cotton appointed lecturer in geology at Victoria College.Opposition to the Government, under Massey, formed the Reform Party.
1910 L Cockayne's “New Zealand plants and their story” published.Rt Hon Baron Islington became Governor. First NZ Labour Party was formed.
1911Death of King Mahuta, succeeded by King Te RataChamptaloup appointed professor of bacteriology & public health at University of Otago Medical School.Peace Council established. Election results inconclusive.
1912Claim for Māori ownership of bed of Lake Rotorua begun. Waiapu Farmers Co-operative Trading Company started.“Geology of New Zealand” published by P Marshall.Rt Hon Earl of Liverpool became Governor. T MacKenzie replaced Ward and became PM. No confidence motion resulted in the Massey Government.

On the evening of Dominion Day, 25 September 1907, the Government Buildings in Wellington were illuminated—“The New Dominion”.

International Affairs and DefenceSocietyTransportArts and Communication
 Old age pension increased to £25 per year & means test relaxed. Education Department founded technical high schools. NZ Civil Service Association formed.Nightly ferry service (except Sundays) between Wellington & Lyttelton began. Motor car journeys, trials and rallies began to make motoring popular. Christchurch's electric tramway opened.West's Pictures developed theatrical screening of moving pictures. Rosina Buckman sang in Alfred Hill's light opera “A Moorish Maid”.
Defence Council formedSuperannuation schemes made available to all public servants. Māori prophet Rua Kenana began building a New Jerusalem at Maungapohatu in a movement known as Iharaia. New Zealand Verse” an anthology of 60 poets was selected by W F Alexander and A E Currie. Sydney Thompson joined staff of Canterbury School of Art. NZ's first professional orchestra formed for Christchurch exhibition.
 National Endowment Act used sale of Crown Land for old-age pensions and education. Tohunga Suppression Act directed at Māori medicine. Education Dept's “School Journal” began. Education Amendment Act educated “defective or epileptic children” aged 6-21. Robert McNab, Lands and Agriculture Minister, published “Murihiku”, now a collector's item. NZ Academy of Fine Arts opened Free Art Gallery in Wellington. Dunedin Art Gallery opened. James McDonald took scenic films for tourism.
 Infants Act licensed foster parents. Special school for mentally handicapped boys opened at Otekaike, Otago. Prof. T A Hunter established NZ's first experimental psychology laboratory at VUC Wellington. NZ Federation of Miners formed, became NZFOL.Union Co's “Koonya” left Lyttelton towing Shackleton's ship “Nimrod” to the Antarctic circle. North Island Main Trunk line completed. NZR took over the Wellington & Manawatu Railway Co. Wanganui Borough Council opened its electric tramway.Scholefield, G H—“Who's Who in New Zealand”. A M Nicoll, H L Richardson, R Hawcridge all began teaching art. L J Steele painted “The spoils to the victors”. Dame Clara Butt made her first concert tour. Jan Kubelik gave recitals.
At Imperial Conference in London, NZ offered to present a battle cruiser, HMS New Zealand to Britain.Backblocks nursing scheme started. Defence Act eliminated differential rates of war pensions for MāorisOtago dock opened. Ferry service from Wellington to Nelson began. Picton-Wellington passenger steamer “Penguin” wrecked in Cook Strait with loss of 75 lives. Regular railway service Wellington—Auckland. Aero Club of NZ & Canterbury Aero Club formed.J C Williamson's production of “The Merry Widow” toured.
Defence Act 1909 created Territorial Force.Cancer more common cause of death than tuberculosis. National Provident Fund started. University Reform Association founded. Education Amendment Act required parents to provide education for handicapped children. FOL acquired “Māoriland Worker” newspaper.The first coin-operated telephone was installed at Wellington Railway Station.The Indecent Publications Act passed (conceding the relevance of literary merit). Edith Grossmann published “The Heart of the Bush”. The Hocken Library at Otago University opened to the public. David Low became political cartoonist for the Canterbury Times
10 NZ officer cadets attended first year of Royal Military College, Duntroon (Canberra).Mental Defectives Act passed. Widow's pension introduced with benefits for dependent children. Dominion Anti-Militarist Conference expressed concern at boys being given military training.Newman Bros bought their first gas buggy, a Cadillac. V Walsh made a successful powered flight. G Bolt made a manned glider flight. Radio-telegraphy station (range 960km.) opened in Wellington.Edward Fristrom teaching at Elam. John Philip Sousa toured NZ with his band. Picture-theatres were built.
 School Medical Service started. Veterans of NZ Wars and wives of mental patients could qualify for pensions. The “Evening Post” first called FOL “Red Fed” as it became more influenced by IWW. Public Service Act passed.Last sighting of “Pelorus Jack”. First driver's licence issued in Wellington. Invercargill's electric tram service began. Nelson Railway reached Glenhope.B E Baughan's collection of essays “Brown Bread from a Colonial Oven” published. Walter Wright painted “A Native Gathering”. Gaston Mclies and his US company made short films at Rotorua and other scenic attractions.

A St John's ambulance of the 1920s built in Dunedin.

 MāoriEnvironment and ScienceGovernment/Law
1913Outbreak of smallpox affected mainly MāoriThe Board of Science and Art, a forerunner of the DSIR, established. Royal Commission into forestry in NZ published its report.Waterfront dispute became a general strike, broken by “Massey's Cossacks”.
1914King George V received Māori King Te Rata in London but no redress for Māori grievances gained. Differences between Māori leaders on Māori participation in World War I, 1914-18Canterbury College Mountain Biological Station (Cass Field Station) completedOutbreak of World War I. Expeditionary force raised. Massey won election. NZ occupied Western Samoa.
1915Non-combatant Māori Pioneers went to Egypt, 1915-16Holloway published the first of his studies on the genus Lycopodium.Wartime Coalition National Government formed.
1916New Zealand Labour Party formed at a Wellington conference. Conscription introduced.
1917Māori liable for conscription, Māori Battalion formed. Violent arrest of Rua Kenana and followers at Maungapohatu; Rua imprisoned for 2 1 /2 yearsG H Cunningham, later director of DSIR Plant Disease Division (1936-57), appointed to Department of Agriculture.The office of Governor changed to Governor-General.
1918Māori communities hit hard by influenza epidemicL Cockayne engaged by the Department of Agriculture to make exhaustive survey of tussock grasslands. “NZ Journal of Science & Technology” first published by the NZ Board of Science & Art.Labour's Harry Holland elected to Parliament, followed by P Fraser, B Semple.
1919Kauhanganui (Parliament House) at Ngaruawahia openedFirst NZ Science Congress held in Christchurch, Cockayne president. J A Thomson advocated preparation of a large-scale contoured topo map of NZ. State Forest Service established as a separate government department.Referendum on prohibition lost. NZ signed Peace Treaty at Versailles and became a founding member of the League of Nations. M J Savage elected to Parliament.
1920Māori Trustee assumed responsibility for Māori Reserve landReport of the Commission to inquire into southern pastoral land published. Cockayne studying ecology of former tussock grassland. H D Gillies published “Plastic surgery of the face”. Cawthron Institute established in Nelson.Prince of Wales visited NZ with thanks for support in World War 1. Rt Hon Viscount Jellicoe became Governor-General. Communist Party of NZ formed.

Influenza depot, Christchurch, 1918.

The large sign on the left reads “Influenza Depot. Medicine supplied only to poor people with actual bad cases in the house, or to those who have been unable to secure other aid. No other person supplied.” The notice on the right: “Stimulants for patients. Small bottles of whisky, brandy or stout will be sold at the Central Medicine Depot, Cathedral Square, for patients on the signed order of Doctor Chesson, Health Officer, or any medical practitioner, or Nurse Maud.”

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Government passed Naval Defence Act. B Freyberg one of “specials” who clashed with rioters in Buckle St, Wellington, during waterside strike.Smallpox in Auckland province lasted for 1 year. Food & Drugs regulations introduced labelling. Māori deaths to be registered. State Advances Dept. set up. Methodist Church of Australasia & Primitive Methodist Church united to form Methodist Church of NZ.Union Co began cargo service to west coast of USA. Mount Cook Motor Co bought the first heavy motor truck,a Leyland for use as a goods carrier.Edith Howes, pioneer writer of books for children, published “Māoriland Fairy Tales”. Danish dancer Adeline Genee toured NZ. Tenor John McCormack toured NZ. Maewa Kaihau & Clement Scott wrote “Po Ata Rau”—later to become “Now is the Hour”
HMS Philomel commissioned as naval training ship. NZ raised expeditionary force. On declaration of war, troops occupied German (now Western) Samoa. 10 troopships carried NZ Expeditionary Force to Egypt.Government transferred control of primary school inspectors to Education Department. NZ University Amendment Act established University National Scholarships, Taranaki Scholarships, University Bursaries, and National Research Scholarships.New Plymouth- based taxi service started which became Gibson Motors. J W H Scotland made long-distance flights in Southland, Otago and Canterbury, but crashed (uninjured) after take-off in Wellington.Many artists went to the war. Art collections were used for fundraising for the war effort. Ellen Terry in NZ on a lecture tour. Dancer Maud Allan toured NZ with Cherniavsky Trio. Violinist Mischa Elman toured NZ. First NZ-made feature film, “Hinemoa”.
ANZACs landed at Gallipoli, evacuated after 6 months which included the heroic battle of Chunuk Bair. HMS Philomel continued in operations in the Suez Canal, Red Sea & Persian Gulf. RFC 2nd Lt Rhodes-Moorehouse of part Māori descent, NZ's first air VC.Discharged Soldiers Settlement Act provided housing funds. War disablement & dependents pensions. Pension for miners’ phthisis—compensation for occupational disease. WEA began in main centres + Invercargill. J Roberts secretary of Waterside Workers FedV Walsh flew a flyingboat, built and designed by him and his brother, the first in the southern hemisphere. They started the NZ Flying School, Kohimarama, and trained pilots for World War 1.H M Moore-Jones painted Gallipoli works. G E Butler and Nugent Welch were official war artists.
NZ MR brigade became part of ANZAC Mounted Division and made reconnaissance patrols in Sinai Desert & protecting Suez Canal. NZ Division arrived in Northern France, moved into front-line trenches & the Somme. Conscription introduced for European NZers.Mounted police raided Rua Kenana's New Jerusalem. Anzac Day became the most sacred day in the secular calendar William Joliffe became first Censor of Cinematograph films under the Cinematograph film Censorship Act.
NZ Lt Col C E R Mackesy first ANZAC to enter Palestine with Auckland Mounted Rifles. NZ success at Messines—Lance Cpl S Frickleton awarded VC. Auckland-born naval Lt W Sander awarded VC for action in Irish Sea.First juvenile probation officer appointed. NZ Freezing Workers & Related Trades Association formed for South Island.Count Von Luckner escaped from internment on Motihe Island—later recaptured in the Kermadec Islands. Canterbury Aviation Co founded by H Wigram, flying at Sockburn, training pilots for World War 1.Len Lye made wooden constructions with moving parts. Actress Marie Tempest toured NZ. Gonsalez Italian Grand Opera Co. toured NZ.
NZMR brigade occupied Bethlehem. On Western Front NZ troops attacked & captured fortress town Le Quesnoy, their last major action of the war. After Armistice 2nd brigade part of Allied Army of occupation.Industrial schools abolished. J G Laughton started a long ministry as Presbyterian Māori missionary in the Urewera country and Taupo. Tahupotiki Wiremu Ratana's ministry as healer and oracle began.Tom Newman (who had driven the first Newman coach) drove the last horse-drawn coach from Murchison to Glenhope. Act to control Civil Aviation in NZ introduced.Alexander Turnbull's library of 55,000 books bequeathed to the nation.
NZ Division disbanded after almost 3 years continuous fighting on Western Front. NZMR brigade disbanded. Over 3and a half years, 17,723 men had served in it. Admiral of the Fleet, Viscount Jellicoe visited NZ in HMS New Zealand.E Gunn organised first health camps for children. NZ's first town planning conference held in Wellington. Housing Act passed. Pensions became more liberal. School dental service started.First official air mail in NZ carried by G Bolt.The Quoin club of graphic enthusiasts produced printed work. The Sarjeant Gallery, Wanganui, was opened. W S La Trobe was appointed Superintendent of Technical Education and raised standards of art education.
Air Board established to advise the Government on aviation policy.Peter Buck first director of Division of Māori Hygiene in Health Department. J Shelley Professor of education at Canterbury University College, also very active in adult education. Rev. J W Kemp, pastor of Baptist Tabernacle.First flight across Cook Strait, by Capt. E Dickson. Flight over Mt Cook by Capt. L M Isitt & T M Wilkes. R Wigley founded NZ Aero Transport Co.Mander, J—“Story of a New Zealand River”. Duggan, E—“Poems”. Mansfield, K—“Bliss”. R Haszard an art student at Canterbury. Ngaio Marsh joined Allan Wilkie's heatrical company. NSW State Orchestra toured NZ. “Marama”, NZ comic opera a local success

“Electrolux” advertisement published in the New Zealand Free Lance, August 1931.

New Zealand Railways poster advertising bus and rail travel between Wellington and Lower Hutt, date unknown.

 MāoriEnvironment and ScienceGovernment/Law
1921Turangewaewae Marae establishedCockayne discovered polymorphism suggesting hybridisation between Nothofagus (Southern beech) species and published “The Vegetation of New Zealand”.J A Lee elected to parliament.
1922C E Hercus appointed professor of public health at the University of Otago Medical School. G M Thomson published “The Naturalisation of animals and plants in New Zealand”.Reform Party retained power with minority government.
192316th meeting of the Australasian Association for the Advancement of Science held in Wellington. 
1924Ngati Porou Dairy Company establishedCanterbury College established a School of Forestry. E Marsden, Assistant Director of Education, introduced the Terman intelligence test of achievement for all entrants to secondary schools in NZ.Gen Sir Charles Fergusson became Governor-General. Country Party formed.
1925Māori Purposes Fund Board established to support secondary education for Māori children. Sim Commission begins enquiry into confiscation of Māori land in Taranaki & WaikatoRelationship between endemic goitre and soil iodine discovered by C E Hercus, W N Benson & C L Carter. G H Cunningham's “Fungous diseases of fruit-trees in New Zealand and their remedial treatment” published.Massey died; interim government led by F D Bell. G Coates new Prime Minister. Child Welfare Act passed.
1926Sim Commission finds government at fault in 1860DSIR established with Marsden as secretary. Otari open-air native plant museum established, the first such museum in the world.Family Allowances Act passed.
1927Māori Land Boards authorised to advance grants on Māori landEdward Kidson, world-famous atmospheric scientist, became director of the New Zealand Meteorological Service. Massey Agricultural College opened.Duke & Duchess of York visited NZ. United Party launched, with Ward as leader.
1928Sir Apirana Ngata Minister until 1934Wheat Research Institute established at Christchurch & Lincoln College. Allan appointed systematic botanist, DSIR. “The Trees of New Zealand” by Cockayne published for the 3rd British Empire Forestry Conference held in New Zealand.None of 3 parties won a working majority, Ward formed a minority government.

An early advertisement for shoes made and sold by Hallenstein Brothers, a firm which began in Otago and developed into a New Zealand-wide chain of clothing shops.

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First NZ naval recruits joined HMS Philomel. 4 men of the Permanent Defence Force employed on aviation duties.Quarantine regulations tightened. Arbitration Court decision to reduce shearers wages by 20% led union rep on Arbitration Court to resign.Foveaux Strait crossed by Capt. M Buckley, flying for NZ Aero transport Co. G Bolt flew from Wellington to Auckland by flyingboat with stops at Wanganui & Kawhia. Largest sailing ship ever built, steel 5-masted “France” discharged coal at Lyttelton, loaded general cargo at WellingtonThe Booksellers Association of NZ was formed. W H Guthrie-Smith published “Tutira”. Violinist Jascha Heifetz toured NZ.
In response to Chanak Crisis in Turkey, 790 former officers, 11,187 other ranks,& 300 nursing sisters volunteered over 4 days for a possible expeditionary force, but they were not needed.First schools immunisation against diphtheria. First Junior High School opened at Kowhai, in Auckland. “Correspondence Scheme” established for primary education of children in remote areas. First Pentecostal healing mission came to Wellington.The Main Highways Act established the Main Highways Board and road building and maintenance became government-controlled. Wellington—Upper Hutt railway line signals became automated. A Eastwood made the first parachute jump from an aircraft in NZ.Katherine Mansfield's collection “The Garden Party” brought popular and critical success. “The Birth of New Zealand” first screened at Palmerston North. R Hayward's first feature “My Lady of the Cave” released. Regular government film-making began.
NZ Permanent Air Force (permanent defence force) and the New Zealand Air Force (territorial forces) formed.War pensions increased. English rationalist J McCabe drew large audience to lectures in Auckland.First bulk cargo of oil pumped ashore at Miramar by Union Co's tanker “Orowaiti”. Otira tunnel and NZ's first electric railway were opened between Arthur's Pass and Otira. Auckland radio telegraphy station establishedR A K Mason published “In the Manner of Men”
 Education Department applied the Terman Group Test of Mental Ability to entrants of high schools and technical schools. Pio Pio in the King Country opened as a “consolidated school” taking the 90 pupils of 4 small outlying schools.“Aorangi” was launched for Union Co's Vancouver passenger service. Motor Vehicles Act and Public Works Act passed. NZ's first trolley-bus service (Thorndon—Kaiwharawhara). Wellington Radio had first continuous wave transmitter.Elsdon Best published “The Māori”. Len Lye left NZ. A J C Fisher directed the Elam School of Art and design. National Art Association founded. “Venus of the South Seas” filmed in NZ first shown in Christchurch
Because of costs, Defence Forces stopped sending officer cadets to Duntroon. It was thought cheaper to send cadets to Sandhurst.Severe poliomyelitis outbreak. Child Welfare Act set up Children's Courts & Child Welfare Branch. Tate report criticised district high schools. Teacher training improvements proposed. Ratana Church opened. F A Bennet made Aotearoa suffragan bishop.Balloon tyres replaced solid and high-pressure pneumatic tyres. North Auckland railway line joined the NIMT. PABX telephone exchanges introduced.W H Allen And R N Field taught art at Dunedin's technical School. Fritz Kreisler and Amelita Galli-Curci each toured to acclaim. R Hayward's film “Rewi's Last Stand” screened. Free cinema at Dunedin Exhibition where Government Publicity films were shown.
 Town Planning Act encouraged systematic housing developments. NZ University Amendment Act reorganised university administration. NZ Agricultural College Act established Massey Agricultural College. Anglican Diocese of Waikato established.Radio beacon installed at Cape Maria Van Diemen. Buses and tramways competition regulated. Mt. Cook Motor Co bought 30-seater “Big Bertha”. Railways Dept. Road Services Branch began. J Lambert, Hunterville, proposed aerial topdressing.The Butcher Shop” by J Devanny banned for indecency, but sold 15,000 copies. Violet E Whiteman, painter of animals, came to New Zealand. Evelyn Polson (later Page) painting life nude figures. Tours by Anna Pavlova, Feodor Chaliapin and Wilhelm Backhaus.
NZ contributed one million pounds toward construction of Singapore Naval Base. Maj W I K Jennings first NZ officer to attend Imperial Defence College, London.First congregation of Assemblies of God formed in Palmerston North. Presbyterian General Assembly protested against compulsory military training. Revival Fire Mission established in Auckland. F P Walsh led Seamen's Union. Industrial Labour factionalisingHolm Shipping Co formed with purchase of “Progress”.4-core cable commissioned for telephone traffic across Cook Strait. Short-wave transmission began at Wellington Radio.1927 Former NZ and South Seas Exhibition building became a new Dunedin Public Art Gallery. Music Teachers Registration Board of NZ established.
Last cadets sent to RMA Sandhurst. Air Marshal Sir John Salmond, RAF, visited NZ to advise on air defence.Bishop F A Bennett consecrated bishop of Aotearoa to care for Māori Anglicans. There were now 403 trade unions representing 103,980 workers.NZR ordered new buses, bodies built in Hutt Railway Workshops. A uniform code of rules for motor traffic became law. Motor Vehicle Insurance Act passed. C Kingsford-Smith & CTP Ulm crossed the Tasman in “Southern Cross”.The first issue of “Art in New Zealand” was published. T H McCormack returned to paint in Wellington. First radio studio orchestra, 2YA, established. Miramar Film Studios commissioned.

School children outside their school, Coromandel, 1949.

 MāoriEnvironment and ScienceGovernment/Law
1929R G Simmers joined NZ Meteorological Service, co-opted as meteorologist to Mawson's Brit. Aust. and NZ Antarctic expedition. O H Frankel, geneticist, appointed to Wheat Research Institute, Lincoln.W Nash elected in by-election.
1930J D Atkinson discovered boron deficiency in apples in Nelson. Experiments in the manuring of fruit trees started at Appleby. Investigation begun into Bush Sickness, a wasting stock disease in central North Island and Poverty Bay/Hawke's Bay.Rt Hon Viscount Bledisloe became Governor-General. Forbes succeeded Ward as PM; Ward died.
1931Publication of “The Rust fungi of New Zealand” by Cunningham.In the crisis of the Great Depression, the Reform and United Parties formed a coalition National Party. The Labour Party became the official Opposition.
1932Bishop Bennett appointed Anglican Bishop of AotearoaNew Zealand Institute of Chemistry formed.Unemployed workers rioted in Auckland; Governor-General given power under Public Safety Act to declare a State of Emergency.
1933King Koroki succeeds on the death of King Te RataNew Zealand Institute became the Royal Society of New ZealandThe Government devalued. Labour expelled any Friends of the Soviet Union from the Labour party. Mrs E R McCombs (Labour) became NZ's first woman MP. H Holland died, succeeded by M J Savage as Opposition leader.
1934Prince Henry, Duke of Gloucester visited. Democrat Party formed. Sir Apirana Ngata resigned as Native Affairs Minister.
1935Electoral alliance between T W Ratana and NZ Labour PartyE Kidson and J Holmboe published “Frontal methods of weather analysis applied to the Australia-New Zealand area”.Rt Hon Viscount Galway became Governor-General. Attempts to jam Rev. Colin Scrimgeour's broadcast on 1ZB just before election. Under Savage, Labour Party won landslide victory.
1936Māori unemployed put on same basis as Pakeha unemployed but given only 1/3 of relief payment in cashAfter a dispersal of research groups within DSIR, the new Labour Government founded the Plant Diseases Divn. (Auckland), Grasslands Divn. (Palmerston North), Entomology Divn. (Nelson), and Agronomy Divn. (Lincoln).Ratana and Savage made alliance. Reserve Bank nationalised. Parliamentary proceedings broadcast. National Party formed. C Scrimgeour made head of Commercial radio. Industrial Conciliation & Arbitration Amendment Act passed.

Mothers tending their gardens in a street of State Houses, Mt Roskill, Auckland, in the 1950s.

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First NZ army combined operations exercise held in Auckland. Air Force airlifted medical and other supplies to Murchison, following major earthquake.Health stamps sold. Syllabus of Instruction for Public Schools (“Red Book”) adopted. Vocational counsellors appointed to larger technical high schools.NZ Shipping Co took delivery of “Rangitane”, “Rangitata”, ‘Rangitiki”. The Transport Department was formed. Electric locomotives replaced steam on the Christchurch—Lyttelton line. This was the peak year for suburban tram-ways.Ursula Bethell (alias Evelyn Hayes) published “From a Garden in the Antipodes”. English artist C Perkins came to paint & teach painting in Wellington. “The group” (Evelyn Page, M Anderson, C Wilding and E Collier) began an annual art show.
Air Force first active operation was sending an Air Force Moth seaplane aboard HMS Dunedin to Samoa to restore order.Unemployment Act. Commission of Inquiry led to founding of Disabled Servicemen's Re-establishment League. Pensions Dept became responsible for rehabilitation. J Dickie, principal of Knox Theological College wrote “Organism of Christian Truth”.The “Monowai” arrived in Wellington. The Railways Workshops began a carriage-building program that continued until World War 2. Radio telephone link opened for public telephone calls Australia-NZ.Association of New Zealand Art Societies formed, introducing annual rotating exhibition scheme “Rota”. First public screening of a NZ-made talkie.
Sailors from HMS Veronica, Dunedin & Diomede worked tirelessly after the disastrous earthquake. The Depression cost reduction cut Permanent Force to 86 officers, 263 other ranks. Territorial Force became voluntary, reduced from 16,990 to 3,655.Mortgage Relief Act. Special school for mentally handicapped children set up in Auckland.The turbo-electric “Rangitira” was launched. The Jubilee floating dock was towed to Wellington from the Tyne. Transport Licensing Act passed. The Napier earthquake destroyed tramways. Buses were used instead. F Chichester flew Auckland—Norfolk Island.H L Richardson painted portrait-landscape “Mrs Thornley of Titahi Bay”. Hodge, Merton—“Earthquake” (a play based on the Hawkes Bay disaster).
 Unemployment Board subsidised some building developments. Old-age, widows & miners pensions cut by 10 %. “Uncle Scrim” (C G Scrimgeour) of Methodist Social Service Mission supported Auckland riot of unemployed. Govt responded harshly to industrial unrestThe Heavy Motor Vehicles Regulations were introduced. The Stratford—Okahukura railway line completed. Rover car assembly plant opened, Petone (closed 1933).A H & A W Reed began; Cowan, J—“Tales of the Māori Bush”. NZ Women Writers Society founded. Scanlan, N —“Pencarrow”. “The Letters and Journals of Samuel Marsden” published. R MacDougall Art Gallery opened. NZ branch of B D L. Sybil Thorndyke toured.
 Carnegie Corporation granted $US 87,500 to start NZ Council for Educational Research. Radio 1ZB bought by Fellowship of the Friendly Road which included C G Scrimgeour & T Garland. Churches seriously concerned over social consequences of unemployment.The Traffic Officers Guild was formed.Denis Glover and John Drew began the Caxton Press. Curnow, Allen—“Valley of Decision”. NZ Society of Artists formed in Christchurch. Posthumous exhibition of paintings by R Haszard. Hodge, Merton—“The Wind and the Rain” (a hit in London & worldwide)
NZ Permanent Air Force became RNZAF, still administered by the Army.Fletcher Construction began building the Wellington Railway Station. School Certificate introduced as an alternative to University Entrance, but was not well accepted.NZR offered the first “packaged tour” with a 4-day tour of the Southern Lakes.John A Lee—“Children of the Poor”, Robin Hyde (Iris Wilkinson)- “Journalese”, M Escott—“Show Down”. NZ branch of PEN began. British art exhibited in Dunedin on tour of Australasia. Toss Woolaston studied art with F Scales.
To strengthen coastal defences and air force, Defence budget almost doubled to 532, 151 pounds.Native Housing Act passed. War veterans' allowances introduced. Crippled Children Society formed. National Health Service proposed, by Dr D G McMillan. Labour government elected with union support. J C Beaglehole's “Exploration of the Pacific” published. Rutland Group formed in Auckland revitalising artistic standards. 17-year-old Yehudi Menuhin toured NZ. NZ-made talkie feature “Down on the Farm” shown in Dunedin.
HMS Achilles arrived in Auckland to serve the NZ divn of the RN. Wing Commander R A Cochrane, RAF, advised on organisation of Air ForceDept. of Housing Construction; Dental Council established. Pensions introduced for invalids & deserted wives. NZCER standardised Otis Intermediate Intelligence Test. Proficiency exam ceased. Inter-Varsity Fellowship of Evangelical Unions formed.The Motor Vehicles Amendment Act made a speed limit of 30mph in built-up areas. The National Road Safety Council met. The first 6 railcars were built for Wairarapa line. J Batten completed her solo flight from England. P Van Asch began aerial mapping.The first Authors Week was sponsored by PEN. The Government granted small pensions to writers. Frank Sargeson's “Conversations with my Uncle” was published. National gallery and Dominion Museum opened.

Karitane nurses and children in the grounds of Truby King's former residence, Melrose, Wellington. Down below is the Centennial Exhibition, with Rongotai in the background, October 1940.

 MāoriEnvironment and ScienceGovernment/Law
1937NZ Wool Manufacturers Research Association formed as a branch of DSIR. NZ Medical Research Council established (initially as a committee of the Department of Health).Savage represented NZ at coronation of King George VI. FOL formed. 1st state house built at Miramar.
1938Disastrous Esk Valley floods. Lucy B Moore joined DSIR's Botany Division. V D Zotov published work on correlations between vegetation and climate.Social Security Act passed. Labour Government won election.
1939The Young Māori Conference held at Auckland University College Communist Party published 1st issue of “People's Voice”. NZ balance of payments difficulty. War declared. National Party offered wartime co-operation.
1940Centennial celebrations of the Treaty of Waitangi joined by the northern tribes but boycotted by King Koroki, Princess Te Puea and Waikato people.Muriel E Bell became Director of Nutrition Research Department of the Medical Research Council. “Handbook of the naturalized flora of New Zealand” by H H Allan published.J A Lee expelled from Labour Party. Savage died. P Fraser chosen as PM. War Cabinet of 5 Ministers formed (3 Government, 2 Opposition). S Holland became leader of National Party.
1941Soil Conservation & Rivers Control Act passed. Association of scientific workers formed. New Zealand Society of Animal production formed.Marshal of the RAF Rt Hon Baron Newall became Governor-General. Prolongation of Parliament Bill introduced to delay 1941 election because of war situation. NZ now at war with Japan. Death penalty for murder replaced by life imprisonment with hard labour.
19421942 NZ Met Service became a branch of the RNZAF; experiments began at Ohakea using radar for upper wind finding. C A Cotton's “Geomorphology” published.Finance Minister & Deputy PM W Nash represented NZ in Washington. Mrs M Grigg became 1st National woman MP. Life of Parliament extended to up to 12 months after end of war. Women admitted to jury service if they chose.
1943Sir Apirana Ngata lost the Eastern Māori parliamentary seat to Tiaka Omana (Jack Ormond)-Ratana candidate.C P McMeekan became superintendent of Ruakura Animal Research Station, on retirement from the chair of Animal Husbandry at Lincoln College.Threat of invasion receded and an election called. Labour won with reduced majority.

A Samoan language nest at the Pacific Island Resource Centre, Auckland, 1986.

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HMS Leander commissioned to NZ. Territorials reorganised. RNZAF formed as a separate branch of the Defence Forces, led by Group Captain Cochrane.Free milk introduced into schools. First state houses built in Miramar, Wellington. New Education Fellowship held international conference in NZ, stimulating educational thinking. Government convened National Industrial Conference. New FOL formed.Road Code published. Warrants of fitness introduced. Police reported traffic accidents to Transport Dept. Taxis licensed. Wellington Railway Station opened. First Cook Strait 4-channel cable laid. Wellington-Springbok match commentary teleprinted.Denis Glover published “Arraignment of Paris”. Ballet Russe de Monte Carlo toured NZ for J C Williamson Ltd.
 Social Security Act brought free universal hospital & medical services—resisted by BMA. Narrow secondary school curriculum criticised, PE developed. Council of Adult Education established—G & C Somerset pioneers in Feilding. Ringatu Church opened.Hawke's Bay ports of Wairoa & Waikokopu closed after completion of the railway to Gisborne. The first zebra crossing was introduced in Petone. Auckland's first trolley-bus service began.Buck, Peter—“Vikings of the Sunrise”. Schroder, J H E -“Remembering Things”. Finlayson, Roderick—“Brown Man's Burden”. The Country Library Service began. Anthony, F S—“Me and Gus”. NZ tours by Fay Compton and Ruth Draper. Lawrence Tibbett toured.
Volunteers enlisted at outbreak of World War II, 28 (Māori) Battallion recruited. Maj Gen B C Freyberg commanded 2nd NZEF. Advance party left for Egypt. NZ Divn RN—HMS Achilles & Leander & minesweeper Wakakura. RNZAF gave 30 bombers to RAFFree treatment in State mental hospitals. Maternity benefits made childbirth free. Rural Housing Act passed. School Publications established.Cook Strait Airways ceased. Its aircraft taken over by RNZAF.“NZ Listener” began. Brasch, C—“The Land & the People”. Cresswell, D'A—“Present without Leave”. Pascoe, J—“Unclimbed New Zealand”. Mulgan, J—“Man Alone”. Coppard, J A S—“Cartoon”. Covent Garden Russian Ballet toured. Malcolm Sargent visited NZ.
Leander escorted 6 transports carrying 1st Echelon of NZ troops to Middle East. 2nd echelon to Scotland. Egypt broke relations with Italy. 2ndNZEF took up duties in Cairo. NZ declared war on Italy. Conscription started; in 5 years 306,000 were called up.Quarantine regulations extended to aircraft. C E Beeby appointed Director of Education.Mines laid by a German raider in approaches to Auckland. Transport Legislation Emergency Regulations empowered the Transport Minister to suspend laws for the war effort. Electrification of Wellington—Paekakariki line. Harewood airport opened.A Dictionary of New Zealand Biography” ed by G H Scholefield; PEN started the Jessie Mackay poetry award. Literary competitions and New Zealand Centennial Surveys were sponsored by the Government. Centennial Music Festival performed in main centres.
2nd echelon sailed for Egypt. NZers fought in Greece, then Crete. Evacuated after German airborne invasion. HMS Leander sank Italian raider RAMB. HMS Neptune sunk by mines with loss of 150 New Zealanders. Japan and NZ at war. WAAFs established.Capitation scheme introduced for payment of General Practitioners. Pharmaceutical benefit & X-ray benefit introduced. Play Centres Association; National Film Library; National Council of Churches & Inter-Church Council of Public Affairs established.The Finnish “Pamir” was seized as a war prize in Wellington. A M Pritchard for Public Works Dept. began aerial seed sowing at ninety mile beach.The first vol of “NZ Notables” by R M Burdon (Caxton Press). P McIntyre appointed official war artist in Middle East; A B Barns-Graham & Russell Clark in the Pacific. Māori Musical Society produced “Hinemoa”. Owen Jensen formed Auckland String Players.
Women's RNZNS established. 3rdNZDiv set up. ANZAC area of Pacific Ocean under US Gen D MacArthur. NZ forces went to Norfolk Is & Tonga. Battle of El Alamein. Large 3rd NZDiv force went to New Caledonia. 55 NZ airmen joined renowned Pathfinder Force.Physiotherapy benefit introduced. School Library Service established. Ormond Burton (decorated in World War I) dismissed from Methodist ministry for pacifist actions.Minesweeper HMNZS “South Seas” collided with inter-island steamer “Wa-hine” in Wellington Harbour and sank. Auckland—Invercargill air service began.Unity Theatre began in Wellington. O Jensen began journal “Music Ho!”. National Film Unit newsreel “Weekly Review” carried the title “Marching Men” for the first time.
NZ patrol of Long Range Desert Group achieved successes. Disastrous riot of Japanese POWs at Featherston.2nd Lt Ngarimu killed, 1st Māori awarded VC. Axis forces in North Africa surrendered. 2nd NZ Div went to Italy. NZers took part in “Dambuster” raidThomas Report on post-primary school curriculum recommended introduction of core curriculum.The Stillwater-Westland railway line completed. 

A surviving wooden house in Vincent St, Auckland against a backdrop of the State Flats in Greys Avenue, 1964.

 MāoriEnvironment and ScienceGovernment/Law
1944Canberra Pact signed between NZ and Australia for collaboration in regional defence and foreign policies.
1945While Sir Peter Buck saw the “fusion” of Māori and Pakeha as inevitable, Maharia Winiata said that cultural uniformity was not the same as racial equality (forerunner of biculturalism)Research begun into the ecology of porina pasture pests.Hilda Ross elected to parliament in by-election. All electorates given approximately equal population. BNZ nationalised. Labour narrowly won election.
1946A resettlement scheme for Māori and non-Māori ex-servicement offered training and the opportunity to buy land valued up to L3,000 at low rates of interest. Elections gave Māori MPs balance of power, supporting Labour Lord & Lady Mountbatten visited NZ. Lt-Gen Rt Hon Baron Freyberg became Governor-General. Sir Humphrey O'Leary became Chief Justice.
1947A Royal Commission into Surplus Lands of the Crown compensated Māori in Auckland and North Auckland for alienated lands. The word “Māori” substituted for “Native” in official correspondence.Forest Research Institute opened at Rotorua.Mabel Howard, Minister of Health, became first woman cabinet minister. NZ adopted Statute of Westminster.
1948Tipi Ropiha became Under-Secretary for Māori Affairs. A Māori community centre opened in Auckland (forerunner of the urban marae) unifying the 10.000 Māori living in Auckland. People with half European antecedents could choose which roll to be listed onDDT recommended for control of grass-grub and porina (but later became environmentally unacceptable). DSIR established the Fruit Research Divn. at Mt Albert. Bielschowsky was made director of the British Empire Cancer Campaign Laboratory, Otago.British nationality and New Zealand Citizenship Act passed. Governor-General given power to issue regulations to ensure NZ's economic stability.
1949In March, King Koroki and Te Puea led a deputation of 600 Waikato Māori to Parliament in a vain attempt to keep alcohol out of the King Country.Inaugural meeting in Palmerston North of the New Zealand Genetical Society (Frankel president, F W Dry vice-president). NZ's first electron microscope, a Metropolitan-Vickers EM 2, set up in the Dominion Physical Laboratory, DSIR.National Party won election; S Holland became PM. Mrs. I Ratana became first Māori woman MP.
1950Maharaia Winiata and other Māori leaders began promoting integration, meaning cultural autonomy for diverse peoples within one nationWairakei geothermal site chosen for geological investigation for generation of electricity. R Duff published “Moa Hunter period of māori culture”. K A Wodzicki published “Introduced mammals of New Zealand”.Legislative Council abolished. Civil List Act passed. Death penalty re-introduced
1951Māori Women's Welfare League established by Māori women to cope with problems of urbanisation of Māori. Te Puea was patron and Whina Cooper the first president.K M Harrow discovered the diffusion process using boric acid for preservation of Pinus radiata timber. Sir Bruce Levy's “Grasslands of New Zealand” published. First conference held of NZ Ecological Society.W Nash became Opposition Leader, on death of P Fraser. In bitter waterfront dispute, under Emergency Regulations, servicemen worked ports; unions deregistered. National won snap election. ANZUS Treaty signed. Official Secrets Act passed.

One of 13,000 infants being measured as part of a Health Department and Plunket survey of the growth rate of New Zealand children, 1973.

International Affairs and DefenceSocietyTransportArts and Communication
Battle of Cassino. After landing on Nissan, 3rd NZ Div withdrawn from Solomons, subsequently disbanded. 2nd NZDiv joined advance on Florence & Faenza.Dr R Winterbourn published “Educating Backward Children in New Zealand” making comprehensive recommendations for special education. Council of Organisations for Relief Services Overseas (CORSO) formed.Official school patrols were introduced.“Beyond the Palisade” by James K Baxter, aged 18, published by Caxton Press.
After further action by 2nd NZ Div in Italy and Trieste, Germany surrendered May 9. In August action against Japan ended. HMNZS Achilles and Gambia returned to RN. Air Vice-Marshal L Isitt represented NZ at surrender of Japan.Māori Social and Economic Advancement Act passed. First Child Care Council started in Invercargill.The Christchurch—Picton railway completed. NZ National Airways Act nationalised all NZ air transport services.Davin, D—“Cliffs of Fall”. Blackwood Paul began publishing NZ books (J Mulgan, F L W Wood, S Morice, H Wilson, A Alpers). Caxton -“A book of NZ verse1923-45″”. Esther Glen Award began. Borovansky and Bodenweiser Ballets toured. Chamber Music Soc. founded.
2nd NZDiv and 2NZEF disbanded. “J”Force, raised from 9 Brigade of 2nd NZDiv sailed to Japan as part of Commonwealth Occupation Force. Further drafts from NZ replaced these men. No 14 Squadron part of Occupation Forces in Japan.Universal family benefit introduced for all children. Technical Correspondence School established.The “Hinemoa” built in Britain, delivered to NZ for Steamer Express service. The Conference Line began rebuilding their cargo fleet after World War 2. Air freight service for Cook Strait began. Daily Auckland—Sydney flyingboat service began,M H Holcroft received Hubert Church Award. the NZ Literary Fund established. Eric Lee-Johnson produced painntings with surrealist devices. Arts Yearbook replaced Art in New Zealand. National Orchestra of the NZBS was formed.
 North Island schools closed by polio epidemic. Food & Drugs Act passed. Dental benefits for secondary school children. Contact lenses, hearing aids available free. Mental Hospital Department became Mental Hygiene Divn. Industrial Hygiene Divn. set up.Passenger liner “Wanganella” ran aground on Barrett reef, Wellington; floated free. After wartime regulations petrol rationing retained for a time. Turakina railway deviation opened. Civil Aviation Administration took over Post Office's aeradio services.Landfall” began, edited by C Brasch. Community Arts Service toured northern NZ theatres. R J Kerridge began NZ Theatre Company. Boyd Neel String Orchestra toured. Ruru Karaitiana composed the popular song “Blue smoke”. First meeting of NZ Film Institute.
RNZ Armoured School established at Waiouru Camp. Peacetime Army set at 333 officers and 2,722 other ranks. 6 frigates purchased from UK. 3 NZ crews flew Dakotas in Berlin Airlift.Tenancy Act & Tuberculosis Act passed. First Old People's Welfare Council formed in Dunedin. Education Department Psychological Services began. NZ Trades Certification Board established. Youth for Christ evangelical movement formed in Auckland.“Pamir” returned to Finnish ownership. General road speed limit of 50mph introduced.Courage, J—“The fifth child”. Finlayson. R—“Tidal Creek”. Ballantyne, D—“The Cunninghams”. McDonald, G—“Grand Hills for Sheep”. McDougall Art Gallery rejected F Hodgkins's Pleasure Garden. Curnow, A—“The Axe”. Alex Lindsay String Orchestra began
National referendum voted for conscription for territorial service. CMT began. HMNZS Lachlan acquired from Australia as a survey ship. RNZAF operated in Hong Kong, SriLanka, Japan & Malay PeninsulaAuckland St John's Ambulance Assn started first meals-on wheels scheme. NZIHC society formed. Physiotherapy Act passed. A H McLintock—“History of Otago”. Ruth Gilbert—“Lazarus”. Lithuanian Rudolf Gopas came to NZ & taught P Trusttum and P Clairmont. Milan Mrkusich's first solo exhibition. Helen Hitchings's gallery opened, showing good contemporary works.
HMNZS Pukaki & Tutira sailed for Korean Waters. Kayforce, 70 officers, 974 other ranks, went to serve with UN ground forces in South Korea.Medical Research Council independent from Govt. Medical Advisory & Disciplinary Committee to investigate complaints. National Radiation Laboratory to monitor radiation. Canterbury Council of Social Services formed. Joint Family Homes Act passed. Wilson, G—“Brave Company”. Smithyman, K—“The Blind Mountain”. Pegasus Press began in Christchurch. Wilson, H—“My first eighty years”. Campbell, A—“Mine eyes dazzle”. National Film Unit made feature “1950 British Empire Games”
All three armed services worked on wharves during waterside workers' industrial dispute. NZ units in Korea amalgamated into 1st (Commonwealth) Division. New Zealand Army so named in New Zealand Army Act. NZ servicemen served in Kashmir and Cyprus.Māori Women's Welfare League formed. Govt subsidised organisations providing accommodation for young students/ workers. Presbyterian, Methodist & Congregational Churches sought church union. W Parapa 2nd bishop of Aotearoa. Waterfront dispute. Godley, C—“Letters from Early New Zealand”. Ward, Edward—Journal (1850-51). Johnson, L—“The sun among the ruins” & “Roughshod among the lilies”, “Poetry Yearbook” v 1. Ngaio Marsh's British Commonwealth Theatre Co. & Australian National Ballet toured
 MāoriEnvironment and ScienceGovernment/Law
1952The Waikato leader Te Puea Herangi, known as Princess Te Puea, died. Prime Minister Holland and Opposition leader Nash were among 10,000 mourners at her funeral The subject Māori Studies was first taught at Auckland UniversityFirst conference of NZ Entomological Society. NZ Society of Soil Science formed.Lt-Gen Rt Hon Baron Norrie became Governor-General.
1953The Māori Affairs Act consolidated legislation on Māori Affairs but neglected protective aspects of earlier Acts. Another Act with discriminatory overtones was the Town and Country Planning Act 1953. Queen Elizabeth met King Koroki at Turangawaewae MaraeWildlife Act passed. New Zealand Institute of Agricultural Science established. F H McDowall's “Buttermaker's manual” and W Cottier's “Aphids of New Zealand” published.Coronation of Queen Elizabeth II. She & Duke of Edinburgh visited NZ. Sir H E Barrowclough became Chief Justice.
1954Oceanographic Institute established. “Forest and climate of New Zealand” by J T Holloway & “Plant virus diseases of New Zealand” by E E Chamberlain were published.W Nash retained leadership of Labour Party. National won election. Social Credit Political League won 11 % of vote.
1955MIRINZ founded. H C Smith discovered barley yellow dwarf virus. J O C Neill & C S Armstrong made pioneer aerial survey of spores of the blind-seed disease of ryegrass. Sainsbury's “Handbook of the New Zealand mosses” published. 
1956Noxious Animals Act passed. H C Smith researched dry rot disease of brassicas. J W Lyttleton discovered Fraction 1 protein in herbage protein. A D Thomson found a method of dealing with potato virus Y. First meeting of NZ Microbiological Society held.Duke of Edinburgh visited. Electoral Act passed making enrolment compulsory for Māori (already compulsory for Pakeha).
1957International Geophysical Year—much NZ participation, particularly in Antarctic. First volume of “The National Forest Survey of NZ” published. F H Smirk's “High arterial pressure” published.Rt Hon Viscount Cobham became Governor-General. K Holyoake replaced retiring S Holland as PM. Labour narrowly won election, W Nash PM.
1958Kelsey wrote on possible biological control of the white butterfly. Works on cytology of genus Podocarpus by Hair and Beuzenberg; and on atomic absorption spectrometry, by Allen. “Modern approach to organic chemistry” by J Packer & J VaughanQueen Elizabeth, the Queen Mother visited NZ. Finance Minister A Nordmeyer presented so-called “Black Budget”.
1959The New Zealand Rugby Union made the controversial decision to exclude Māori from the All Black team to tour South Africa.DSIR established Antarctic Division and Institute of Nuclear Science. Miss E L Hellaby Indigenous Grasslands Research Trust began. C A Fleming translated Von Hochstetter's “Geology of New Zealand 1864.” Lee's “Earthworm fauna of New Zealand” published.Proposal to send all-white All Black team to South Africa created protest led by Citizens All Black Tour Association. Tour went ahead.

Giant New Zealand flag being prepared for unfolding on 1 January 1990 as part of the Sesquicentennial Celebrations. The flag measured 15 metres by 8 metres and flew at Auckland airport throughout the year of the 150th anniversary celebrations.

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Australian government gave NZ 4 minesweepers.Right-wing F P Walsh elected leader of FOL.Air Services Licensing Authority granted the first Aerial Work licence. Work began on extension of Rongotai Airport.John Pascoe edited Thomas Brunner's journal, “The Great Journey”. Sargeson's “I for one” published in Landfall. An exhibition of 28 contemporary NZ paintings shown in London. “Broken Barrier” made by Pacific Films.
Armistice signed in Korea. Army surplus material given to French forces in Indo-China.National Housing Council had 10-year aim of building 200,000 houses. Consultative Ctee. on Hospital Reform began work. NZ Consultative Ctee. on Intellectually Handicapped Children recommended institutional care. Dutch migrants started Reformed Church.Last voyage by the Wellington-Nelson ferry, Ngaio. Five-year drivers licences introduced. NZ railway system reached its greatest length, 5,656 km. but 151 people died in the Tangiwai disaster caused by a lahar from Mt Ruapehu.New Zealand Players, founded by R & E Campion, toured with “The Young Elizabeth” & “Dandy Dick”. New Zealand Short Stories, first of 4 vols- a selection by Dan Davin. “The Golden Bush” by Temple Sutherland. Bruce Mason writing NZ plays.
Senior Regular & Territorial Force officers instructed in theory of nuclear weapons and their tactical use.First experimental fluoridation of water supplies in Hastings. National Health Institute established. Vocational guidance services began.Shaw Savill liner Southern Cross launched in Belfast. NAC's engineering base at Milson, Palmerston North closed and new base opened at Harewood, Christchurch. First helicopter recorded on civil register. First Fletcher top-dressing aircraft began serviceE H McCormick's study of Frances Hodgkins, “The Expatriate”. Colin McCahon painted “I am”. NZ Opera Co. founded.
Squadrons 14 and 41 moved to Singapore as part of Commonwealth Strategic Reserve.Adoption Act passed. Disabled Servicemen's Re-establishment League extended training services to civilians. Hospital Boards ran meals-on-wheels & laundry for elderly. Ormond Burton returned to Methodist ministry. Presbyterians permitted women elders.Opening of Mount Maunganui wharf made Tauranga a major export port. Traffic Officers training school began in Christchurch. Rimutaka tunnel opened. H R Wigley made first ski-plane landing on Tasman glacier. Fletcher top-dressing aircraft assembled in NZ.The Hakluyt Society published 1st vol of J C Beaglehole's edition of “The Journals of Captain James Cook”. Hall, David—“Portrait of New Zealand”. Burdon, R M—“King Dick”. Baxter, James K—“The Fire & the Anvil”
Specially raised NZ Special Air Service (SAS) Squadron sent to Malaya as part of Commonwealth Strategic Reserve for Malayan Emergency. NZ bought Antarctic support ship Endeavour.Health Dept. given power to prevent pollution. Salk vaccine introduced against polio. First national course for teachers of gifted children held. Anglicans used Wells system for fund-raising.World's first agricultural aviation show held in Palmerston North.Sharp, Andrew—“Ancient Voyagers in the Pacific. Wilson, Guthrie—“Sweet White Wine”. Gordon Walters painted abstracts using the koru motif. Kelliher Art Prize began as an annual award. Larry Pruden composed “Dances of Brittany” and “Harbour Nocturne”.
HMNZS Pukaki & Rotoiti assisted with monitoring duties during Christmas nuclear tests. NZSAS Squadron returned to NZ, replaced by newly formed 1st Battalion, NZ Regiment.Hospitals Act supported private hospitals A History of Canterbury” vol 1. Scholarship in Letters won by E H McCormick. The Archives Act, 1957 passed. McEldowney, D—“The World Regained”. Frame, J—“Owls do cry”. Don Peebles's abstracts. Mason, B—“The Pohutukawa Tree”.
Squadron 75 went to Malaya.Family Benefits Act—capitalisation of benefit for first-home buyers with 2 children. State Advances Corporation low-income borrowers granted interest-free rebates. Church of Jesus Christ of Latter Day Saints (Mormons) opened NZ Temple near Hamilton. Colin McCahon painted “Northland Panels”. Mason, B—“In the Wilderness” produced, followed next year by solo work “The End of the Golden Weather”.
2nd Battalion, NZ Regiment relieved 1st Battalion in Penang.National Hydatids Council formed. Parry report on NZ universities recommended University of NZ dissolution, constituent colleges independent, University Grants committee coordinating policy. Billy Graham's open-air meetings drew crowds of up to 60,000.First Viscount “City of Wellington” arrived in Auckland. First turbo-prop service began between Auckland & Christchurch. Rongotai, now Wellington Airport, opened by GG Viscount Cobham.BNZ K Mansfield Award,M Duggan and E Locke winners. Shadbolt, M—“The New Zealanders”. Duckworth, M—“A gap in the spectrum”. Middleton, O E—“The Stone”. J Fahey painting. Baxter, J K—“The Wide Open Cage”. National Youth Orchestra founded.

The Waitangi Tribunal sitting at Orakei Marae.

 MāoriEnvironment and ScienceGovernment/Law
1960The Labour government commissioned the Hunn report on the Department of Māori AffairsGolden Kiwi lottery funds began to fund scientific research. Thomson and Reynolds used negative-staining techniques in electron microscopy. Chapman published “Salt marshes and salt deserts of the world”.Social Credit Political League proposed a Bill of Rights to safeguard individuals' rights. National Party won election. Western Samoa became independent.
1961The Hunn report was published under the new National Government. Māoritanga was expected to be superseded by “modernity”. The aim was to eliminate all statutory differences between Māori and Pakeha. A Māori Education Foundation was established.Wool Research Organisation of New Zealand founded. Symposium convened on Microbiological aspects of facial eczema. “Flora of New Zealand Vol 1” (H H Allen & Lucy B Moore) published. 
1962DSIR Plant Physiology Division established, Palmerston North. Wellcome Research Institute began at University of Otago Medical School. “The Endeavour Journal of Joseph Banks 1768-1771” (ed by J C Beaglehole) published. Wilkin awarded Nobel medicine prize.Brigadier Sir Bernard Edward Fergusson became Governor-General. Post of Ombudsman established.
1963A bi-racial congregation attended the dedication of the interdenominational Memorial Chapel at Okahu Bay, built on the last piece of Ngati Whatua land in the City of AucklandNational Research Advisory Council (NRAC) replaced the Council of Scientific & Industrial Research to advise the Minister of Science.The Queen & Duke toured NZ. QEII National Arts Council established. A Nordmeyer became leader of the Labour Party. National Party retained office. TV used in electioneering for first time. Indecent Publications Tribunal set up.
1964The Prichard Waetford Commission, set up by the National Government, recommended policies which would ease alienation of Māori land, provide for compulsory conversion of some Māori land to general land and resulted in disadvantage to multiple-ownersR N Patel appointed the first professional plant anatomist in New Zealand. “Trees and shrubs of New Zealand” by A L Poole and Nancy M Adams published. 
1965Publication of “Alpine Ranunculi of New Zealand” by F J F Fisher.1956 Electoral Act amended to stabilise South Island seats at 25. N Kirk became Leader of Parliamentary Labour Party. Cook Islands Constitution came into effect.
1966Queen Te Atairangikaahu succeeded on the death of King KorokiNZ Electron Microscope Society and Nutrition Society of New Zealand founded and held their first conferences.Queen Elizabeth the Queen Mother visited. Socialist Unity Party formed. Election won by National Party, V Cracknell first Social Credit MP elected. Sir Richard Wild became Chief Justice.

Queen Elizabeth and Te Arikinui Te Atairangikaahu at Turangawaewae, 1974.

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2nd Battalion began operations on Thai-Malayan border. 2 NZ officers seconded to UN Force in the Congo. First ship built for RNZN, frigate Otago commissioned in UK.Dr H B Turbott president of World Health Assembly. Child Health Council set up. Contraceptive pill introduced. Petone C I T began. IHC began preschool and special-care day centres. Diploma of Educational Psychology introduced at Auckland University.Union Co's passenger service to Australia ended. The new island port at Bluff opened. Cycle lanes were introduced.Mason, B—“The Pohutukawa Tree”. Hilliard, N—“Māori Girl”. Oliver, W H—“Story of New Zealand”. Crump, B—“A Good keen man”. Arts Advisory Council began. N Z Players ended (“A View from the Bridge”). Music by D Lilburn a NZ LP record. First TV channel
 Private health insurance Southern Cross Medical Care Society established. Social Welfare Advisory Board set up. Māori Education Foundation established. First Golden Shears competition, Masterton. Sinclair, Keith—“A History of NZ”. McDonald, J D—The Pitcher and the well”. Braithwaite, Errol—“An Affair of men”. Stevens, Joan—“The New Zealand novel”. ACAG exhibited “Painting from the Pacific”. Local theatre developed in Auckland & Wellington
National Service Scheme began training intake of ballot-selected recruits. Antarctic support ship Endeavour replaced by a tanker also renamed Endeavour.Māori Welfare Act established Māori Council. National Youth Council formed. Commission on Education in NZ recommended increase in primary teacher training to 3 years & curriculum development section. “Nelson System” of bible study in schools sanctioned.The rail ferry “Aramoana” began a new era in inter-island freight, cars & passenger traffic. New Dunedin airport at Momona openedGlover, Denis—“Hot water sailor” (illustrated by Russell Clark). Beaglehole, J C (ed)—“The Endeavour journal of Joseph Banks”. NZ Society of Sculptors and Associates began. Dame Margot Fonteyn toured. NZ Opera Co presented “A Unicorn for Christmas”.
Wartime training establishment Tamaki transferred from Motuihe Island to Narrow Neck, Auckland.W Liley performed world's first successful intra-uterine blood transfusion. New Adult Education Act permitted University extension courses. Curriculum Development Unit set up in Education Dept. F P Walsh died suddenly. Replaced by T Skinner.Transport Act amendment allowed for banning of dangerous driversThe Indecent Publications Act 1963 created a tribunal to address pornography cases. Pearson, Bill—“Coal Flat”. Morrieson, Ronald Hugh—“The Scarecrow”. McCahon showed “Landscape Theme and Variations”. John Gielgud toured NZ.
Establishment of Defence Ministry replaced Army Headquarters. Confrontation began between Indonesia and Malaysia.Social security regulations provided for free home-nursing service. NZ Assn of Social Workers formed. Massey Agricultural College became Massey University. Waikato University founded. Roman Catholic Mass celebrated partly in English, for the first time. Tuwhare, Hone—“No ordinary sun”. Patrick Hanley painted “Figures in Light” series. In Wellington, Downstage Theatre Society formed. Ray Columbus and The Invaders made the record hit “She's a mod”. J O'Shea's “Runaway” screened.
1st Battalion and NZSAS detachments served in Borneo. Army reorganised for SEATO purposes, with ceilings of 6,250 Regulars and 11,000 Territorials. 161 Battery, RNZ Artillery went to South Vietnam under US command. Hercules flew to McMurdo Sound.Building Industry Advisory Council established. Old people's homes for 6 or more required to be licensed.. NZ Asthma Soc formed. Rev. R J Muller, Anglican chaplain to Massey University, first mainstream clergyman involved in charismatic movement.The scow “Echo” made her last passage across Cook Strait. Seatbelts became compulsory in light trucks and cars. Drivers tests standardised, with practical test plus written and oral questions. Air NZ's new jet base at Mangere opened & renamed Auckland AirSinclair, K “William Pember Reeves”. Shadbolt, M—“Among the cinders”. Allen, R—“Nelson”. Billing, G—“Forbush and the penguins”. Duggan, M—“Summer in the gravel pit”. More NZ art shown overseas. N Z Ballet toured “Petrouchka” with Alexander Grant.
Under Colombo Plan, RNZ Engineers built a road in Thailand. NZSAS had parachute training at RNZAF's Paradrop Training Unit in Auckland.Government subsidised half cost of upgrading old people's homes run by religious or welfare organisations. Health Dept. responsible for care & treatment of alcoholics and drug addicts. Guidance counselling service in secondary schools.Demerit points introduced for drivers convicted of driving offences. E J Carr made a glider record, flying from Omarama to Picton.McClintock, A H (ed)—Encyclopedia of New Zealand. 3vols. Marsh, Ngaio—“Black Beech and honeydew”. first Frances Hodgkins Fellowship awarded to Michael Illingworth, Mercury Theatre launched in Auckland.

Lower Hutt foodbank workers packing family parcels, 1992.

 MāoriEnvironment and ScienceGovernment/Law
1967The Māori Affairs Amendment Act was fiercely opposed by Māori. The subject Māori Studies was introduced at Victoria University as part of the anthropology course.Water & Soil Conservation Act passed (allowing multiple use of water resources). Publication of aphid flight data from an 8-year study by A D Lowe.Sir Arthur Porritt became Governor-General. Referendum endorsed Triennial elections. It became possible for a Māori to stand in a general electorate, or a Pakeha to stand in a Māori electorate.
1968South Africa reversed an earlier decision and stated it would accept Māori in an All Black Team to tour in 1970. The Māori response was mixed. Duke of Edinburgh visited briefly.
1969The activist group, Māori Organisation on Human Rights (MOOHR) was founded.Biological control of porina pasture pests in NZ discussed. J D McCraw foundation professor of NZ's first university Department of Earth Science, Waikato University. “Records of plant diseases in New Zealand” by J M Dingley published.Voting age lowered from 21 to 20 years. National defeated Labour again.
1970Māori cooperatives, companies and trusts began development in the eastern Bay of Plenty.Physical Environment Conference reviewed NZ's environmental management needs. Control and ownership of NZ's natural resources discussed. Climate Laboratory opened, Palmerston North. D Miller published “Biological control of weeds 1927-48″”.Royal Family visited for Cook Bicentenary. J O'Brien replaced V Cracknell as Social Credit Leader.
1971Auckland Education Board introduced Māori Language in 3 intermediate schools.Egmont National Park established. Environmental impact procedures administered by government depts, with statutory objection and appeal procedures. Atkinson's “Diseases of tree fruits in New Zealand” published.Race Relations Act passed.
1972Clean Air Act passed. Stockholm UN Conference on Human Environment. 8th International Radiocarbon Dating conference held in Lower Hutt.Sir Denis Blundell became Governor-General. Holyoake retired as PM, replaced by J Marshall. Values Party formed by T Brunt and N Smith. New Democrats (leader J O'Brien) split from Social Credit (leader B Beetham). Labour won election.
1973Lake Manapouri protected, after large NGOs' petition. International conferences held on plant physiology; and quaternary research. “NZ alpine plants” by A F Mark & N Adams; “Chemistry & biochemistry of herbage” by G W Butler & R Bailey.Norman Kirk became PM. Amendments to 1852 Constitution Act increased the powers of the General Assembly.

The collapsed platform at Cave Creek, West Coast, April 1995.

International Affairs and DefenceSocietyTransportArts and Communication
NZ's strength in Vietnam increased with arrival of Victor One Company, from 1st Battalion, NZIR; NZ Services medical Team in Binh Dinh province, Whiskey One Rifle Company & RNZAF helicopter pilots.Royal Commission on Compensation for Personal Injury proposed system of no-fault compensation eliminating litigation. Private health insurance premiums tax deductible. Free milk in schools discontinued.The Union Co ended its service to the west coast of North America. The Hawea began a weekly roll-on, roll-off cargo service between Auckland and Lyttelton and Dunedin. Defensive driving scheme introduced.Cowley, Joy—“Nest in a falling tree”. Print Council of NZ formed. Māori Theatre Trust produced “He Mana Toa”. James K Baxter in association with the Globe Theatre in Dunedin producing plays regularly. Wat-te-ata Press Music began, ed. by D Lilburn.
4Troop of the NZSAS attached to Australian SAS Squadron at Nui Dat. RNZN hoisted its own White EnsignNZ Federation of Voluntary Agencies formed. NZ's first breast-milk bank set up at Waikato Hospital. Vocational Training Council created. Roman Catholic Archbishop McKeefry made a Cardinal & Vatican appointed an Apostolic Delegate to NZ.The inter-island car & passenger ferry “Wahine” in worst storm recorded in NZ, carried on to Barrett Reef at Wellington Heads. Passengers and crew abandoned ship and 51 died. Departments of Air & Transport combined. Transport Advisory Council establishedGeering, L—“God in the new world”. Morton, J & Miller, M—“The New Zealand sea shore” winner of first James Wattie Book of the Year. Baxter, A—“We will not cease” republished by Cape Catley. Inia Te Wiata performed in NZ. McLeod, Jenny—“Earth & Sky”
 Building Research Association formed. Food and Drugs Act increased monitoring and analysis of drugs and inspection & labelling of food. Mental Health Act passed. Social Security levy included in general income tax. PPTA published “Education in Change”.The first roll-on, roll-off ship to operate on the Tasman route, the “Maheno” began. The Rangitoto made the last voyage of the passenger service of New Zealand Shipping Co. C Tait flew round the world on smallest aircraft ever.Beaglehole. J C (ed) “Journals of Captain Cook vol 4”. Jim Allen's “Small Worlds : Five Environmental Structures” shown with direct audience participation. NZ Ballet's premier of “The Rite of Spring” in Timaru.
1st NZ Army Training Team arrived in Vietnam, based at Chi Lang near Cambodian border, to train about 8.000 platoon commanders and junior Vietnamese leaders. Whiskey withdrawn from Vietnam. HMNZS Tui leased from the US as oceanographic research ship.Rubella vaccine provided for more than 350,000 girls. Status of Children Act abolished illegitimacy giving equal status to all children. National Advisory Committee on Māori Education promoted teaching of Māori language in schools. McNeish, James—“Mackenzie”. Mahey, Margaret published five books for children, in London and New York. Govett-Brewster Gallery, New Plymouth, showed “Real Time” by Leon Narby. Colin McCahon continued with large paintings. Drama School established.
Victor 6 withdrawn from Vietnam. RNZAF Skyhawks flew across Tasman to RAAF base at Williamstown, NSW. RNZAF Orion established world endurance record of 20hours 15 mins from RNZAF base, Auckland.Nursing Council of NZ and Social Development Council established. Charismatic movement became evident in Catholic Church.The first all-container ship to visit NZ, “Columbus New Zealand” arrived in Wellington. First shipment of iron sand slurry from Waverley to Japan. First shipment of aluminium from Tiwai Point smelter. The last regular steam train.“NZ's Heritage” began (in 105 weekly parts). Stead, C K—“Smith's dream”. “Poetry New Zealand” v 1. “The Letters of D' Arcy Cresswell” (Helen Shaw). Rolleston, R—“William and May Rolleston”. Hansells Sculpture Award began. Court Theatre began in Chch.
2nd NZ Army Training Team arrived in Vietnam, attached to US Army Training team near Cam Rhan Bay. Both Training Teams & “V” Force headquarters returned to NZ. RNZAF Hercules airlifted over 500,000 kg of food in Bangladesh in relief operation.Clean Air Act. General Practitioners' Society established. Social Welfare Department created from Social Security Department and Child Welfare Division. Publication of “Child abuse in New Zealand”. National Housing Commission set up.The “Rangatira” last & largest ship of the Inter-Island Express service made her first voyage south. Wearing of seatbelts made compulsory in front seats of most vehicles.New Zealand Book Council set up during the International Book Year. Ihimaira, W—Pounamu, Pounamu. James K Baxter died. First Wellington Film Festival held in Wellington at Paramount Theatre.
First RNZAF flights to communist Peking and Moscow.First 3-year comprehensive Technical Institute nurse training programmes in Christchurch & Wellington. Citizens Advice Bureaus formed national body. Domestic Purposes Benefit introduced.Last voyage of the Union Co's passenger service to the Pacific islands, by the “Tofua”. Sail training schooner “Spirit of New Zealand” launched in Auckland. Wearing of crash helmets compulsory for motor cyclists and pillion passengers.The NZ Authors fund created. Shadbolt, M—“Strangers and Journeys”. Wendt, A—“Sons for the return home”. Ihimaera, W—“Tangi”. Bruce Barber's “Bucket Action” at Kerikeri. Hannah Playhouse open. Mercury Theatre—“Mister King Hongi”. R Hayward died.

The waka Kotuiti Tuarua surges down the Waikato river to the Turangawaewae marae, home of the Māori Queen, for celebrations in 1996 marking the centenary of the Turangawaewae regatta.

 MāoriEnvironment and ScienceGovernment/Law
1974Marine Pollution Act passed. Commission for the Environment established. Scientific Coordinated Committee for Beech Research established to advise Minister of Forests on proposed use of South Island beech forests.Royal Family attended Commonwealth Games. R Muldoon replaced J Marshall as leader of the Opposition. Kirk died suddenly, succeeded by W (Bill) Rowling, Prince Charles attended funeral of Norman Kirk. 1972-73 Accident Compensation Act came into force.
1975A tribunal of restricted powers was set up to hear Māori grievances against contraventions of the Treaty of Waitangi. The Māori Land March left Te Hapua, Sept 14, and reached Parliament, Oct 13. A Memorial of Rights with 60,000 signatories was presentedMedical Research Council asked to consider guidelines on research into genetically modified organisms. “Architecture of lambs' coats; a speculative study” by F W Dry published.National won election. Muldoon PM. 3 National MPs of Māori descent elected in general electorates. Ombudsman Act increased jurisdiction & provided for the appointment of more than one Ombudsman. First woman magistrate.
1976Feb 6th became Waitangi Day instead of New Zealand Day. The celebrations became a focus for protest and controversy. National Government introduced national superannuation scheme giving every citizen a substantial pension at 60. Wanganui Computer Centre set up. Small Claims Tribunals Act passed.
1977Kara Puketapu became Secretary of Māori Affairs, achieving a sense of direction and drive to the Māori cultural awakening. Orakei Marae Committee Action Group occupied Bastion PointQueen Elizabeth II National Trust formed. “Secondary sex characters in plants” by D G Lloyd and C J Webb published.Queen & Duke visited. Rt Hon Sir Keith Jacka Holyoake became Governor-General. Beehive wing, Parliament Buildings opened by the Queen. D Lange elected in by-election. Human Rights Commission established.
1978Eva Rickard and 150 people camped on Raglan golf course; eventually the land was returned to its Māori owners; the club to pay compensation and rent. Māori Affairs Minister Ben Couch held a Gang Summit at Parliament. Bastion Point negotiations continued.Lobbying by NGOs stopped native beech forest clear-felling in Westland. Moore and Irwin's “Oxford book of New Zealand plants” published. “Geology of New Zealand, 2 vols” ed by Suggate, Stevens, and Te Punga, published.B Beetham (Social Credit) wins by-election. After general election, National retained office. Sir R K Davison became Chief Justice. Chief Justice of Cook Islands removed the Government of Sir Albert Henry & installed Tom Davis, because of electoral fraud.
1979Engineering students at Auckland University planned a mock haka in capping parade, but met violent opposition from Māori activists, He Taua. Peter Rikys was appointed Māori rep. on ARA Planning Committee. Mana Motuhake founded by Matiu Rata.Pesticides Act passed. International symposium, Reproduction in Flowering Plants, held in Christchurch. “Geological History of New Zealand and its life” published by C A Fleming.Princess Anne visited NZ for the Save the Children Fund.
1980The Governor-General Sir Keith Holyoake was involved in a scuffle with Māori protesters at Treaty of Waitangi celebrations. A Royal Commission found that the Māori Land Court should become more efficient, leading to its eventual abolition.Science Education Unit established at University of Waikato. DSIR Division of Horticulture & Processing established. Daniel and Morgan worked on thermophilic bacteria. “Native trees of New Zealand” by J T Salmon published.Hon Sir David Beattie became Governor-General. M Rata resigned from Labour Party, formed Mana Motuhake Party for Māori self-reliance. G Knapp became second Social Credit MP. “Magistrates” became “District Court Judges”.
1981Māori, 9% of the population but nearly 25% of the unemployed. More Māori trusts established to develop horticulture in Bay of Plenty. The Government provoked further trouble from Bastion Point protestersAmendments made to National Water & Soil Conservation Act. Publication of “Red data book of New Zealand” by Williams and Given.Prince Charles visited NZ. The Queen & Duke toured after attending CHOGM in Melbourne. Springbok tour polarised NZ. National continued in power after election.

The final edition of the 123-year-old Catholic weekly newspaper, the Tablet, being checked by editor and staff in March 1996.

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NZ Force South-East Asia established in Singapore. Its core unit was 1st Battalion, RNZIR.Housing Corporation formed. Advisory Council on Educational Development published “Directions for Educational Development” after widespread public discussion and submissions. Ananda Marga movement and other Hindu groups became active in NZ.Flt Lt R R Parsons & F O N G Munro made first crossing of southern Alps by balloon (west to east).Beaglehole, J C, OM—“Life of Captain Cook”. Sutherland, M—“The Fledgling”. A H Reed, aged 99, knighted. A season of NZ plays given at Court Theatre to coincide with the Commonwealth Games.
 Disabled Persons Community Welfare Act passed. Council of Social Services formed. Hospital Amendment Act provided for regulation of legal abortion. Hawke's Bay Community College opened. Private Schools Conditional Integration Act passed.The “Tangaroa” was towed out of the Otago dock, now to be filled in for the container complex at port Chalmers. Official changeover to metric speed limits.1975 Scott, D—“Ask that mountain”. Holcroft, M H—“Mary Ursula Bethell”. Grace, P—“Waiariki”. “Women's Art” exhibition at McDougall Art Gallery, Christchurch. Impulse Dance Theatre formed. Jack Body—“Musik Dari Jalan”.
First ANZUS field training exercise held in NZ, Triad began in Waiouru, involving Army & Air Force units from the 3 ANZUS countries.National Government limited State house tenancy to 6 years to encourage home ownership. Standard Tertiary Bursary introduced. Nga Tapuwae College in Mangare first purpose-built community school. Anglican Synod admitted women to priesthood.Roll-on, roll-off terminal at Nelson opened. Last voyage of the Steamer Express service made by the “Rangatira.”Sinclair, K—“Walter Nash”. Hankin, C(ed)—“Critical essays on the New Zealand novel”. Joseph, M—“A soldier's tale”. Gee, M—“A glorious morning, comrade”. Orbell, M—“Traditional songs of the Māori”. Bagnall, A G—“Wairarapa”. Hall, R—“Glide Time”
Women's RNZNS disbanded and members integrated with RNZN. RNZAF Iriquois helicopter and crew served in earthquake relief in Guadalcanal.ALAC established, promoting moderation in drinking. National Ambulance Officers Training School opened in Auckland. National survey of Forms One and Two undertaken. Auckland Metropolitan College alternative state-funded school opened.New right hand rule in Traffic regulations. An amendment to the 1962 Transport Act extended the limit on road/rail competition. Air NZ began Antarctica sightseeing flights from Auckland.King, Michael—“Te Puea”. Manhire, B(ed.)—“NZ Listener short stories”. Summers, J— “Earthenware” & “Strictly for the words”. L Lye's kinetic “Trilogy: A Flip & Two Twisters, Blade & Fountain”—Govett-Brewster Art Gallery. G Murphy's “Wild Man” screened
Queen Elizabeth II Army Museum opened at Waiouru.Contraception Sterilisation & Abortion Act passed. “Educational Standards in State Schools” judged NZ standards adequate. 30 Catholic schools named for integration. Ruatoki School had bilingual Māori-English programme. Māori Bishop accorded full status.Road User Charges Act replaced heavy traffic fees & mileage tax with a distance tax related to size and weight of vehicles.Gee, M—“Plumb”. Roche, S—“Foreigner”. Thomson, J—“A Distant music”. Hilliard, N—“The Glory and the dream”. NZ Govt presented McCahon's “Victory over Death” to Australia (now in Australian National Gallery). New Zealand Film Commission established.
NZ contributed a 74-man Army contingent to Commonwealth Cease-Fire Monitoring Group in Rhodesia.Regulations on asbestos started. First NZ bone marrow transplant. National Advisory Committee on the Prevention of Child Abuse set up. Queen Victoria School for Māori Girls integrated. National Youth Choir began. Foundation laid for Auckland mosque.Wearing of seat belts in all seats in new cars made compulsory. Two women trained as pilots & joined Air NZ. New Zealand's worst air disaster happened when an Air NZ DC-10 crashed on Mt. Erebus, Antarctica. A lengthy inquiry followed.Hooper, P—“A Song in the forest”. Kidman, F—“A Breed of woman”. New Zealand pop music very successful—Dave Dobbyn, Sharon O'Neill, Split Enz, Tina Cross among others. Paul Maunder's feature “Sons for the Return Home”(A Wendt) released.
Contingent withdrawn when national elections had been held in what was now Zimbabwe.Old People's Homes Regulations increased government's responsibility for monitoring standards. Housing Corporation empowered to supply relocatable “granny flats” to local authorities & religious & welfare organisations. Computer education discussed. Brasch. C—“Indirections”. Ashton-Warner, Sylvia—“I passed this way”. Shadbolt, Maurice—“Lovelock version”, du Fresne, Y—Farvel and other stories”. Chapple, G—“Rewi Alley of China”. McGee, G—“Foreskin's Lament”. Māori theatre of protest seen.
RNZAF & RAAF aircraft ferried over 4,000 passengers across the Tasman during industrial disputes.Government announced interest-free loan scheme for residents in clean-air zones to buy approved heating appliances. Medicines Act provided greater scrutiny of new & existing products.“Pacific Charger” beached near Wellington Heads. The crew landed safely and the ship was re-floated. The Mangaweka-Uutiku deviation improved the NIMT in the Rangitikei valley.Temple, P—Beak of the moon”. Hay-ward, M—“Diary of the Kirk years”. Turner, B—“Ancestors”. Frank Sargeson's 3-vol autobiography republished as one book. G Murphy's successful feature “Goodbye Pork Pie”. NZ Film Archive established.
 MāoriEnvironment and ScienceGovernment/Law
1982A kohanga reo was set up at Wainuiomata; soon 119 centres were teaching 1,500 children. 400 people at Bastion Point for a 24-hour protest; police arrested 117: Council pledged to halt housing development.” Race against Time” by Hiwi Tauroa, published.Save Aramoana Campaign secured protection for wildlife habitat from construction of aluminium smelter. Second series of “Eagle's trees and shrubs of New Zealand,” and “Resolution Journal of Johann Reinhold Forster, 1772-1775″”, 4 vol. by M E Hoare.Sue Wood became president of National Party (1st woman to lead NZ political party). Prince Edward housemaster at Wanganui Collegiate. Official Information Act passed.
1983A news programme on TV, Te Karere, began. Tapu Te Ranga marae in Island Bay was being built by Bruce Stewart with help from the Mayor of Wellington Michael Fowler, and members of the Mongrel Mob and Black Power gangs.First conference on the history of science in New Zealand held in Wellington, convened by M E Hoare.Prince Charles, Princess Diana and Prince William visited NZ. D Lange replaced W Rowling as Labour Leader. New Zealand Party launched
1984A hikoi or peace walk of over 2,000 people walked to the Waitangi marae. The exhibition Te Māori opened at New York's Metropolitan Museum. Hiwi Tauroa brought together a major hui at Turangawaewae to seek consensus on the future of the Treaty of Waitangi.Interdepartmental Working Party on management of hazardous waste.Marilyn Waring withdrew her vote from the Government. PM Muldoon called a snap election, won by Labour. Lange PM. M Wilson 1st woman president of Labour Party. Roger Douglas implemented free market economic policies (“Rogernomics”).
1985Archbishop Paul Reeves became the first Governor-General of Māori descent.Dept of Health Grants Scheme gave financial incentives for solid waste management planning. Environmental Forum held. NZ's Science and Technology for Development conference held. “Flora of New Zealand: Lichens” published.Archbishop Paul Reeves became the first Governor-General of part-Māori origin. Labour Government declined US request for a nuclear-weapon-capable warship to be allowed to visit NZ. French agents blew up “Rainbow Warrior” in Auckland Harbour.
1986Environment Act passed, creating Ministry for Environment and Parliamentary Commissioner for the Environment. Fisheries Quota management system introduced. International Whaling Commission agreed on whaling moratorium.Property qualifications for voting in local body elections abolished.
1987Court of Appeal ruled Māori land claims not affected by transfer of assets to new SOEs. Waitangi Tribunal empowered to decide which Crown Land has Māori claimants.Conservation Act formed Min of Forestry and Dept of Conservation. NZ played leading role in negotiation of Montreal Protocol on ozone-de-pleting substances. Non-nuclear legislation became law.General election returned Labour Government.
1988Waitangi Tribunal reported on Muriwhenua In-corporation's claim to Northland fisheries. Fisheries quota package announced for Māori tribes. Bastion Point land returned to Māori ownership.Cyclone Bola hit East Coast. Oil found at Kupe South field.State Sector Act passed. Ministers for SOEs and Finance replaced.

A spectacular ash display from Mt Ruapehu, June 1996.

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NZ & Australia sent helicopter unit to Multinational Force and Observers in Sinai following Israeli withdrawal from Egyptian Territory.One-year rent freeze. Noise Control Act stated local authorities to deal with complaints about noise. OECD reviewed NZ's education policy. Māori-language syllabus trialled. 6-year-olds' reading recovery programme. 50 Kohanga Reo centres started.NZR became the Railways Corporation. C Tait established another record for single-engined aircraft flying UK—NZ.NZ represented by 21 works of art at the fourth Bienniale in Sydney. Dame Ngaio Marsh and Bruce Mason died. Shadbolt, M—“Once on Chunuk Bair” performed. David Farquhar composed Symphony no 2. Feature films “Smash Palace”(B Lawrence) & “The Scarecrow”.
 School-leavers Training & Employment Preparation Scheme introduced to ease transition from school to work. Sonia Davies elected FOL's first woman vice-president. J Bolger elected chairman of ILO annual conference.The “Spirit of Free Enterprise” began Wellington-Lyttelton cargo service. Amendment to Transport Act set up a national register of drivers' licences & alcohol assessment procedures for some drivers. Electrification of NIMT extended to ParaparaumuKing, M—“Whina” & “Māori…), McCauley, S—“Other halves”. McQueen, C—“Homing in”. Curnow, A “You will know when you get there”. Oliver, W H—“James K Baxter, a portrait”.” Footrot Flats” performed in NZ & Australia. G Murphy's film “Utu”.
HMNZS Canterbury awarded Wilkinson Sword of Peace for operations in Indian ocean 1982-83 during Falklands War. NZ ratified UN Convention on the Elimination of All Forms of Discrimination Against Women.Review of the Core Curriculum for Schools published. Labour government suspended Housing Corporation's limited tenancy scheme & sale of State houses and emphasised preschool education. Wage freeze ended.“Tarahiko” first gas tanker on the NZ coast was delivered to Wellington. Revised safety regulations on child restraints in motor vehicles became lawHulme, K—“The Bone people”. Stead, C K—“All visitors ashore”. Mahy, M—“The Haunting” (winner of Carnegie Medal). Adcock, F- “Selected poems”. McLauchlin, G (ed)—New Zealand encyclopaedia. Te Māori exhibition opened in New York. Ross Harris opera—“Waituhi”
UN request for a port visit by warship USS Buchanan declined by Government because of uncertainty whether it was nuclear armed. All Black Rugby tour of South Africa cancelled. Rainbow Warrior bombed and sunk.Government lifted rent freeze and rent limitations regulations. Government accepted responsibility for education of severely handicapped children. Interest continued to grow in Taha Māori (Māori language and culture) and bilingual education. University Entrance examinations to be abolished from 1997. Adult Information Adoption Bill passed.Greenpeace ship “Rainbow Warrior” sank at its berth with the loss of one life after 2 bombs exploded under its hull.Duckworth, M—“Disorderly behaviour”. Mahon, P—“Verdict on Erebus”. Manhire, B—“Zoetropes”. Boyd, M B—City of plains”. Frame, J—“Envoy from Mirror City”. Renee's play “Groundwork” produced. Royal NZ Ballet toured China. Prince Tui Teka died. Successful films were I Mune's “Came a Hot Friday” & G Preston's “Mr Wrong.”
UN Secretary-General ruled that French agents jailed in NZ be detained on Island of Hao. France to make apology and pay $ 13 million in compensation.Homosexual Law reform Bill passed. School Certificate to be abolished and replaced by internal assessment within 4 years. First visit to NZ by Pope.Mikhail Lermontov sank in Marlborough Sounds. Post Office split into 3 separate trading organisations. First Air NZ female captain.Murray Ball made the film “Footrot Flats” using the theme of his popular cartoon strips.
USA ended special arrangement for NZ purchase of military equipment. Soviet diplomat expelled. Non-nuclear legislation became law. $1.15 billion modernisation programme for Navy announced. Australian PM Hawke visitedCommission of inquiry ordered into cervical cancer research at National Women's Hospital. NZ's first heart transplant performed. State Sector Act introduced into Parliament.Ansett Airlines began NZ domestic service. Air NZ 747 hijacked at Nadi airport. Closure of 432 branch post offices.B Barclay made the film “Ngati”.
Australia-NZ free trade policy brought forward to 1990. NZ sent 10 observers to UN peacekeeping force in Persian Gulf. EC announced butter sales to Britain to be cut 25% over 4 years.Unemployed numbers exceeded 10.000. Public servants' industrial action. Task force report on hospitals & related services released. Budget announced more state assets sales. Minister for SOEs replaced. Youth & student support system announced.NIMT railway electrification completed. Terms of sale of Air NZ announced.NZ Book Award for fiction won by F Kidman for “Book of Secrets”. G Murphy filmed “Never say die”. P Jackson made “Meet the Feebles”.

Winston Peters swears on the bible before presenting his evidence at the winebox inquiry, 1996.

 MāoriEnvironment and ScienceGovernment/Law
1989Government and Māori groups signed agreement over sale of state forests.Ministry of Research Science & Technology established. South Westland rainforest protected. Tasman Conservation Accord. Wellington Convention banned drift-netting in S Pacific. Waste Management Institute founded. 2nd Maui production platform approved.Administration of Waitemata City criticised by Audit Office. New Labour Party launched with Anderton's resignation from Labour. Lange resigns as Prime Minister, replaced by G Palmer. H Clark first woman Deputy PM. Local Government Reform.
1990Māori Fisheries allocated 10% of fishing quota. Waitomo caves returned to Māori ownership.NZ ratified London amendment to Montreal Protocol. Ozone Layer Protection Act. Waitaki river water rights settled by consultation and negotiation. Attempts to smuggle keas foiled at Christchurch airport. White Island eruption widened crater by 50 metres.Prince Edward opened XIVth Commonwealth Games in Auckland. Dame Cath Tizard appointed Governor-General. Overseas Investment Commission exempted from Official Information Act. Mike Moore replaced G Palmer as PM. National Party won election, J Bolger PM.
1991Waitangi Tribunal recommended compensation to Ngai Tahu. W Peters, Min of Māori Affairs launched Ka Awatea report. Entertainer Billy T James died. W Peters no longer Min. of Māori Affairs. Mana Motuhake Party joined Alliance. Te Puni Kokiri formed.Resource Management Act & Crown Minerals Act passed. NZ Forest Accord. NZ ratified UN Convention on long drift net fishing. 1st kakapo chick hatched at Auckland Zoo. Mt Cook rock slide killed 2, height of mountain reduced.MPs G Myles & H Mclntyre quit National Party to form Liberal Party. Sir R Muldoon resigned from Parliament. Alliance Party formed.
1992Waitangi Tribunal decided land between Dargaville & Hokianga should return to Māori owners & Ngai Tahu have exclusive fishing rights in most S.I. waters. Māori joint-venture purchase of Sealord Products in lieu of commercial fishing claims. Double-hulled Te Aurere sails to Rarotonga.United Nations Conference on Environment and Development held in Rio. South Island hydro lakes fell. Comalco agreed to stop one potline and TV channels closed early. After 55 days, power crisis ended.Parliament Buildings and Parliamentary Library damaged by fire in course of $164 million restoration Former PM Sir R Muldoon died. 85% of voters voted for electoral reform. 70% of these chose MMP. Wellington's F Wilde elected first woman Mayor.
1993Toxic algal bloom closed shellfish gathering for 5 months in Northland, Hauraki Gulf & Coromandel and briefly over the whole country. 140,000 signature petition forces abandonment of myxomatosis introduction.National Government re-elected, under Rt Hon J Bolger.
1994Whina Cooper, famous Māori activist died, aged 98. Over 1,000 Māori marched on Parliament for more funds and better treatment for Māori language. Government offered $1 billion settlement plan for Treaty of Waitangi claims. Tainui accepted $170 million.International Whaling Comm created Southern Ocean whale sanctuary. Auckland drought brought water shortage.An anti-royalist sprayed air-freshener towards Prince Charles in Auckland. Marathon sittings (50 hours) in Parliament caused by stonewalling in Maritime Transport Bill. Electorates reduced to 65 for MMP election. J Anderton handed leadership to S Lee.
1995At a meeting in Turangi 1,000 Māori representatives rejected the $1 billion fiscal envelope. Formal Waitangi day proceedings cancelled. Māori occupy Motua Gardens, Wanganui & former Tamaki Girls' College in land claims. Takahue School burned down.Fire partly destroyed Kaikaumau wetlands. DOC viewing platform collapsed at Cave Creek, Westland, killing 14. Record low temperature at Ophir—minus 21.6 C. Ruapehu erupted.J Anderton resumed Alliance leadership. 4 National MPs & 2 Labour MPs formed United NZ. Dunedin's first woman mayor S Turner. Crown apologised to Tainui for 1884 land confiscation.
1996Formal Waitangi Day celebrations held at Government House, Wellington, instead of Waitangi. Rt Hon Sir Michael Hardie Boys becomes Governor-General.

Armorial bearings of Sir Edmund Hillary KG, ONZ, KBE. The Sherpa influence is represented by three Tibetan Buddhist prayer wheels; across the shield are three white ribbons symbolising mountains (the tallest representing Mt Everest); atop the shield a blue kiwi holds a gold mountain ice-axe; and at each side are emperor penguins representing Antarctica. The motto, “Nothing Venture, Nothing Win” is the title of Sir Edmund's autobiography.

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Defence Review released. PM suggested NZ's withdrawal from ANZUS Council. Government refused entry to Russian research ship. ANZAC frigate deal reached.First school board elections under ‘Tomorrow's Schools’ reforms. Police numbers cut. Changes to national superannuation and other welfare measures announced in Budget. Increases in tertiary student fees announced. Sunday trading began.Shipping Corporation sale finalised. Soviet research ship refused entry to NZ.Outstanding films were J Campion's “Angel at My Table”, V Ward's “The Navigator”, M Sanderson's “Flying Fox in a Freedom tree”. 0800 toll-free telephone service introduced.
Soviet Union became Dairy Board's largest market with $200 million order. NZ Government to resume ministerial visits to Chile and China. Simon Wiesenthal Centre listed 8 alleged war criminals living in NZ. 16 NZ hostages in Kuwait & Iraq freed.Dole for under 18 year olds abolished. Parliament voted to abolish corporal punishment in schools. Government's economic package cuts spending by $2 billion a year, features cuts in welfare payments. First Wild Foods Festival, Hokitika.10,000 sheep died on Como Express ship en route to Saudi Arabia.M Shadbolt awarded NZ Medal. NZ Book Award for poetry won by E Smither for “A Pattern of Marching”. G Preston made notable short film “Ruby & Rata”.
Contingent of 111 from NZ armed forces joined multi-national force in Gulf. NZ Government expelled suspected KGB officer. 3 NZ Army medics with UN inspection team in Iraq detained for 4 days. Government dropped Rainbow Warrior extradition proceedings.Prescription charges rose to $15 per item. Doctors' fees $35. After public protest, Employment Contracts Act passed. $1.75 million Porter report launched. More welfare cuts in Budget. Superannuitants' surtax now 25% on income of $120 a week. Auckland Star ceased publication after 121 years. Entertainer Billy T James died. I Mune filmed “End of the Golden weather.”
Government funded further $11 million for NZ Pavilion at Expo, Seville. Queen Beatrix of Netherlands visited NZ for celebration of 350 years since Abel Tasman's arrival. French suspended nuclear testing in Pacific. NZ won seat in UN Security Council.Unemployment now 215,846. User charges introduced for health care (Community Services cards issued for health subsidies). MPs superannuation cut back. Government sold Housing Corp. mortgages. Haemophiliacs infected with Hepatitis C by imported bloodAuckland ports kept under public ownership after earlier decision to sell 80% shareholding withdrawn.Auckland's Mercury Theatre closed down. B Anderson won Wattie award with “Portrait of the artist's wife”. 2nd was B Boyd's “Vladimir Nabokov; the American years”. Government funded New Zealand arts displayed at Expo, Seville.
Standard & Poors reaffirmed NZ's AA minus, foreign-debt rating. Uruguay Round of the GATT negotiations finally settled with 117 countries signing agreement. NZ regarded treaty as promising for farmers exports.Unemployed 279,834. 54% of workers' wages frozen. Police launched strategy reducing neighbourhood crime. Hospital bed charges abolished. Anti-discrimination amendments to Human Rights Act passed. 6,300 welfare beneficiaries found defrauding system.19 died in rail-crossing crashes. Whangarei won ANZAC frigate work contract over 10 yrs. Anti-drink driving laws introduced. After 120 job cuts NZ Rail sold to American consortium. Nomad aircraft crashed on Franz Josef glacier killing 9.M Mahy awarded Order of NZ. J Campion joint winner of Cannes Palme d'Or for “The Piano”; also shown—P Jackson's “Braindead”. Painting by C McCahon sold for $460,000. Wattie Book Award—Gee, M “Going West”
After 9 years. USA resumed political relations with NZ, without restoration of previous alliance. 250 soldiers sent for 6 months' front-line UN duties in Bosnia. NZ Embassy opened in Hanoi. Air Force Hercules & crew sent to Rwanda for refugee relief.Students marched against fee increases. UN report revealed NZ's record for youth suicide & child abuse. State schools to change to 4-term year in 1996. More jobs lost in meat works closures. Double lung transplant performed at Green Lane Hospital.Maritime Transport Bill opened coastal trade to foreign ships. NZ Rail's Lynx fast-ferry made its first crossing of Cook Strait in 90 minutes.Arts patron F Turnovsky died. NZ films included P Jackson's “Heavenly Creatures” & L Tamahori's “Once were Warriors”. Montana Book Award 1st prize—O'Sullivan, V “Let the river stand”. 2nd was Manhire, B “100NZ poems”
PM J Bolger received by President Clinton. ADC held in Auckland; police arrested 35 of 2,000 protesters. HMNZS Tui sailed to Moruroa with protesters against more tests. NZ Ambassador to Paris recalled. CHOGM held in Auckland. Nelson Mandela welcomed.Nga Tapuwae college school board replaced by commissioner, J Graham. High Court ordered Social Welfare to review 65,000 mishandled applications for Special Benefit. Nursing Council reviewed cultural safety teaching in polytech. nursing courses.Desert road closed for 9+1/2 days by snow. International airline Kiwi Air, Hamilton made its first Tasman flight. Mt Ruapehu ash closed roads and flying zone in Central N I. Chch hot air balloon fell in sea killing 3. Air traffic controllers strikes.Montana Book Award won by Ihimaera, W—“Bulibasha”
RNZN serves with MIF in Gulf. Kiwi Air made its last flight.NZ Book Awards amalgamated with Montana Book Awards. Shortlisted books divided into 6 categories. Winner was J Binney—“Redemption Songs; a life of Te Kooti Arikirangi Te Turuki”

A replica of Captain Cook's barqueEndeavourrests at Cook Cove in Dusky Sound where the original vessel entered in 1773. The replica attracted wide attention when it visited many New Zealand ports during 1996.

2.3 Honours and obituaries 1996

Neil Barr (b. 1908), founder of the organised farm-forestry movement in New Zealand, pioneer and honorary member of the New Zealand Institute of Forestry, became interested in forestry on his family farm at a time when little was known about it. Through a desire to share experiences he set up a local farm-forestry group in 1950 which subsequently grew into the NZ Farm Forestry Association. Known as a real “people person” and excellent communicator, he spent many voluntary hours promoting agroforestry at conferences, field days and meetings throughout the country, and wrote a regular column (affectionately known as “the word”) in the NZ Farmer for 25 years.

Adam Begg (b. 1931), became the youngest member of the New Zealand Meat Producers Board when, at the age of 37, he was appointed as a government representative in 1969. He served on the board until 1987, as chairman from 1980. Begg was also a member of the Nordmeyer Commission of Inquiry into the meat industry (1974), chaired the Meat Industry Task Force in 1983 and was active in Federated Farmers. He also gave lifelong service to his South Otago community and the Presbyterian Church.

Manuera Benjamin Couch (b. 1925) (Ngai Tahu) was a controversial Minister of Māori Affairs (1978-84), Minister of Police (1980-84) and Postmaster-General (1978-80) who served three terms as National MP for Wairarapa before being defeated in the 1984 Labour landslide. His first speech, in which he said he was a New Zealander first and Māori second, drew scathing criticism. Controversy continued when, in 1981, he defended sporting contact with South Africa as being one of the best ways to help the republic's black people, and supported the return of the birch for criminals. A former builder, shearing contractor and All Black (1947-49), he later served on the NZRFU and, after 1984, spent two years as a Mormon missionary in the Cook Islands.

Taelomu Louisa Crawley (b. 1935) came to New Zealand from Western Samoa on a scholarship to New Plymouth Girls High School. She trained as a teacher and then after a few years in Samoa and Australia settled into life in Christchurch where she was a Christchurch Polytechnic tutor and became a city councillor. Louisa was a foundation member and president of PACIFICA, and active for many years in the New Zealand Labour Party. After moving to Wellington to become deputy director of the Ministry of Pacific Island Affairs, she contributed hugely to Samoan and Pacific Island organisations, and to access radio.

Barry Crump (b. 1935), the original “good keen man” of New Zealand folklore, gained national prominence in 1960 with the publication of A Good Keen Man. It is still in print and has sold 300,000 copies. His life experience as deer culler, pig and possum hunter and adventurer provided the raw material for more than 20 books with total NZ sales topping 1 million (overseas reaching 300,000). A raconteur and actor with humour and common touch, his TV ads for a ute made him popular with a new generation. Barry Crump was always on the move, both in terms of place and in his personal life. He had six wives/partners and fathered nine sons.

Denis Dowling (b. 1910) A distinguished international baritone little known in his own country because he never returned to sing here, Dowling was from Ranfurly, Central Otago, and trained locally. At 20 he was broadcasting and in 1934 won the Melbourne Sun Aria contest which took him to the Royal College of Music in London. His international debut was in Der Rosenkavalier with Sadler's Wells Opera in 1939. War service saw him take part in D Day landings and the liberation of Belsen. In 1948 he rejoined Sadler's Wells, later the English National Opera, singing over 100 roles until retirement in 1984. He was known for his 20th century opera work, and clear diction.

Don Goodfellow (b. 1931), secretary of the National Union of Railwaymen during a period of much industrial turbulence, was respected for his shrewdness, negotiating skills and one-liners, and infamous for his “get knotted” statements during disputes. Goodfellow started in Tauranga as a railway travel assistant in 1956 and quickly became the union's branch secretary. From 1962 to 1974 he was Wellington branch secretary, becoming national secretary in 1977 when membership was around 12,500. At his retirement in 1989, industry restructuring and new technology had forced membership down to about 4,500.

Rob Hall (b. 1960) died on the descent from the summit of Mt Everest, supporting a client. Stranded by a blizzard, he communicated his condition by telephone to base camp and this was relayed by satellite to his pregnant wife in Christchurch. Highly regarded in climbing circles and one of New Zealand's most experienced expedition organisers, Hall had joined his first Himalayan expedition at 19. He reached the top of Everest five times, once with his wife. K2 was conquered in 1994, the first time by a New Zealander. Together with colleague Gary Ball, he set a record in 1990 by scaling the highest summit on each of the seven continents in seven months.

Noel Hilliard (b. 1929) From a Depression childhood spent in railways labour camps Noel Hilliard went on to Victoria University and worked as a journalist with the Southern Cross newspaper. The years 1950-52 were spent in Pukeora Sanatorium with tuberculosis. He became a teacher and in 1960 published his semi-autobiographical novel Māori Girl, the first to deal frankly with modern Māori-Pakeha relations. It became one of the most widely-read novels in New Zealand, selling 35,000 copies, and was translated into Russian and Chinese. He wrote three further novels, a short novel and short stories. Hilliard was chief sub-editor of the New Zealand Listener from 1965 to 1970 and Robert Burns Fellow in 1971.

Robert Holden (b. 1958), one of New Zealand's finest racing motorcyclists, was known for his speed and versatility. He was killed during a practice for the Isle of Man Tourist Trophy. Holden began racing at the Victoria University Motorcycle Club in 1975 and went on to win the first of eight national championships, the 125cc title, in 1978. In 1995 he won the Singles TT on the Isle of Man, the Chimay International Superbike race in Belgium, the Ulster Grand Prix and the North West 200 Singles and Superbike races also in Northern Ireland, and the New Zealand Senior TT. Known for his openness and willingness to help new riders, he was given a Motorcycling New Zealand merit award in 1995.

Rochford Hughes (b. 1914) joined the Royal New Zealand Air Force in 1937, and the RAF (as a pilot officer) in 1938. He served with distinction in World War II and later held peacetime commands in Britain, Europe, and in Singapore as commander of the British Far East Air Force. After retiring as an Air Marshal he served as commissioner of the Northland Harbour Board (1973), and was an advisor to Justice Mahon in the investigation following the 1979 Mt Erebus plane crash.

Robert Hurst (b. 1915) was an outstanding scientist, educated at Nelson College, Canterbury University College and Cambridge University. In the UK during World War II he worked on bomb disposal research and was awarded the George Medal for helping defuse the first unexploded flying bomb to land in the UK, in 1944. From 1948 he worked on atomic energy research and development at Harwell and Doun-reay, and in 1963 became research director at the British Ship Research Association, where he worked on computer-aided design in shipbuilding and automation of ship operations.

Robin Irvine (b. 1929) became in 1973 the first Dunedin-born vice-chancellor of Otago University. A 1953 medical graduate, he was awarded a number of fellowships which eventually brought him back to the department of medicine at the Otago Medical School where he became dean in 1969. As vice-chancellor until 1993 he presided over two decades of major change, including ensuring the survival of the medical school in its current form. He was also keenly interested in Antarctic research.

Richard McDonald (b. 1931), Director of the Cook Islands Office of Audit and Inquiries (1983-87), was the first to speak out on fraudulent aspects of the tax haven there. He lost his job as a result. At the time of his death he was in voluntary exile in Queensland after defying the Cook Islands Government by giving evidence in the ‘winebox enquiry’. He faced imprisonment should he return to the Cooks. From 1968-70 he was senior lecturer in Business Administration at Victoria University. He was known to be a man who stood up for what he believed in.

Joan McKenzie (b. 1918) was the first woman to head a New Zealand co-educational secondary school, Mana College in Porirua. She had started there as senior mistress when the school opened in 1957, returning 10 years later as principal, a position she held until 1975. Her 40-year career in education included primary and secondary teaching, a period as school inspector, and membership of the Wellington Teachers' College Council. She was known as a firm but fair disciplinarian with a keen sense of humour.

Jack Newman (b. 1902) took an infectious pride in the achievements of the family transport business, founded in 1879 with a mail and passenger service from Foxhill to Murchison. Becoming managing director in 1935 he pioneered the expansion of the coach tour business immediately post-war, later adding rental cars, camper vans and turbo prop airliners in Newman Air. He later developed the company into TNL Group Ltd. He represented New Zealand on a number of international travel organisations, played cricket for New Zealand 1931-33, and was a life member of the NZ Cricket Council.

Dulcie Nicholls (later Gallagher) (b. 1908) dominated New Zealand women's tennis from her first senior national singles title win in 1929 to her retirement in 1938. In that time she won the national singles title five times, the women's doubles twice and the mixed doubles three times. Her powerful ground strokes, at a time in women's tennis when the emphasis was on placement, made her a feared opponent. The family, originally from Greytown, had an illustrious sporting pedigree; three of Dulcie Nicholls' brothers were All Blacks. She shares with them the honour of a plaque in the Jackson Street, Petone, Walk of Champions.

Thelma Pitt-Turner (b. 1903) set a record in 1984 when, at 81 years old, she became the oldest woman in the world to run a marathon finishing the Hastings Countrywide Bank marathon in 7h 58min. She had previously won a bronze medal in the 1981 World Veteran Road Race championships and set three national age group running records at the 1984 National Veteran Track and Field Championships. On her running retirement she took up weightlifting to strengthen her arms. Earlier in her life, in 1922, she competed in the first Annette Kellerman Ocean Cup race in Wellington harbour and helped form the first women's surf lifesaving team at Lyall Bay in 1920. She was a former Russian ballet mistress and adagio dancer.

Athol Rafter (b. 1913) was sent overseas in 1948 by the NZ Government to learn how nuclear technology could benefit this country. In the early 1950s he set up the first radiocarbon dating facility in the southern hemisphere at Gracefield, using equipment produced in the DSIR workshop. He was the first scientist to detect increased concentrations of radiocarbon in the southern hemisphere atmosphere and sea water as a result of nuclear testing. His atmospheric studies provided information on the build-up of greenhouse gases. He worked with archeologists on radiocarbon dating and with soil scientists on understanding the fixation of atmospheric carbon in soils. Dr Rafter promoted new radioisotopes to the medical profession for the treatment of blood and thyroid cancers, leading to the establishment of hospital nuclear medicine departments.

Eve Rimmer (b. 1937) won more than 30 medals as a paraplegic athlete after a car accident in 1952 when she was 15. In 1968 at the Paraplegic Olympics in Tel Aviv she won a gold medal, two silvers and a bronze, and subsequently competed in five more Paralympics. Eve was the only paraplegic athlete inducted into the New Zealand Sports Hall of Fame. She also wrote a best-seller, No Grass Between My Toes, was sought after as a public speaker, and lectured to medical students on the sex life of paraplegics. She was a straight talker who wrote in her book and spoke publicly about the frustrations of paraplegia.

Greenpeace protesters abseil down the face of the French Embassy building in Wellington, January 1996, in protest at the latest nuclear test blast. France subsequently announced it was ending its nuclear testing programme in the Pacific.

Violet Robb (nee Walrond) (b. 1910), champion swimmer, was New Zealand's first woman Olympian, in a team of four who represented New Zealand in 1920 in Antwerp (our first time as a separate Olympic nation). Every New Zealand team member made their finals. Violet was only 15 and the swimming pool was a World War I defence canal. On the way home she won a gold medal in a five-mile championship swum down the Thames. At 17, after winning the 100m in the Australian championships, her father decided it was time for her to retire.

Hugh Sew Hoy (b. 1901), doyen of the Dunedin Chinese community and grandson of Chinese New Zealand pioneer Choie (Charles) Sew Hoy, continued the small business empire his grandfather founded, expanding from importing into sausage making, clothing manufacture, haberdashery and furniture. At its peak the business employed more than 600 staff and was one of the first to develop markets using the New Zealand-Australia Free Trade Agreement, exporting to retailers such as Coles, Myers and Target. After an initial stay (1920-22) Hugh Sew Hoy returned to Canton for 16 years. In 1938 he settled in Dunedin permanently but because of the Japanese invasion of China his wife and six children were able to join him only in 1947. He acted as translator and interpreter for others in the Chinese community and was the first Chinese New Zealander to receive an OBE.

John Spencer (b. 1931), celebrated yacht designer and former Auckland architectural draughtsman, created the international cherub and javelin classes of dinghies in the 1950s. A self-taught boat builder and designer, he started in a Devonport yard, moving later to Browns Bay and Russell. Spencer's designs ranged from runabouts to ocean-going race yachts emphasising narrow-beam, light displacement designs. In larger yachts he used glassfibre as a skin over ply—most famously in the yacht Infidel, which won the Transpac race from California to Hawaii. His boats were known for being quick and having a high standard of finish and seaworthiness.

David Tudhope (b. 1921) chaired the Shell BP Todd consortium when it found the Maui gasfield in 1969 and helped steer the project for a decade until it reached commercial production. During his 32-year career at Shell he was also very involved in the expansion of Marsden Point oil refinery and the introduction of carless days after the second oil shock. A Cambridge-trained lawyer, Tudhope had been in the RNZAF's Bomber Command Pathfinder Force and was awarded the Distinguished Flying Cross and bar in 1944. Retiring in 1981 after 14 years as managing director of Shell Oil New Zealand, he chaired National Mutual and the National Bank.

Charlie Tumahai (b. 1949, d. 1995) was a musician, composer and singer best known as lead singer of the popular NZ Pacific-reggae band, Herbs. He began playing in hotels in Tahiti when his Ngati Whatua mother and all 11 children went there with their Tahitian father in 1968. He moved on to the Sydney cabaret circuit and in the late 1960s with the rock band Healing Force recorded Golden Miles, now an Australian classic. He went to the UK with a group which folded but joined Be-Bop Deluxe as bass, recording four albums and a top-10 single. Returning to New Zealand in 1985 he joined Herbs as lead singer, song writer and music arranger. In recent times he was a Ngati Whatua court volunteer for young defendants and their families, and was developing an arts programme for prison inmates.

Piet van Asch (b. 1911), born on a farm near Havelock North, was the pioneer of aerial mapping in New Zealand. During the lean years of the Depression he developed his photographic, mapping and flying skills. In London, with earnings from mapping work undertaken there, he bought a Monospars aircraft with which aerial mapping began in 1937 in the South Island. This eventually covered the whole country and out into the Pacific, with close support from the Air Force. Vague survey maps were turned into modern cadastrals and his photographs played vital roles from archaeology, earth sciences, town planning and in search and rescue.

Terry Vaughan (b. 1915) had a theatrical and musical career most closely associated with the legendary Kiwi Concert Party of World War II. It performed in often appalling conditions, from cold such that the servicemen audience deserted, to stinging sandstorms. Immediately post-war the Concert Party toured in Australia for six years with Vaughan as musical director, arranger, designer and comedian. He had studied music at Canterbury University College and the Royal Academy in London in the 1930s, and later serious music compositions won national competitions and were performed. In 1955 he joined JC Williamson Theatres in Australia as casting and musical director and in 1965 became director of the first large-scale arts complex in Australia, the Canberra Theatre Centre.

Te Waari Kahukura (Ward) Whaitiri (b. 1912) was born in the Chatham Islands of a Ngati Mutunga mother and Ngai Tahu father and went to sea at 11 (saying he was 13). He rose to the position of Master Mariner, commanding coastal traders around the New Zealand coast for the Anchor and then Union companies. During World War II he was in convoys on the dangerous route from Britain to Murmansk. In 1975 containerisation led to redundancy, shore life and work with the Māori Affairs Department, supporting Māori and Pacific Island youth who appeared in court. Ward regained his boyhood fluency in te reo Māori, was active in the Pensioners and Beneficiaries Association, and also appeared in a number of films and in the opera Waituhi in 1984.

Contributors

  • 2.1-2.3 Statistics New Zealand.

All compilations rely on earlier work. Acknowledgement is made to other publications such as the New Zealand Book of Events, New Zealand encyclopedias, almanacs, and newspapers.

Chapter 3. Government

Visitors stream through the renovated Parliamentary Library in Wellington during an open day in January 1996.

3.1 Constitution

New Zealand's constitutional history can be traced back to 1840 when by the Treaty of Waitangi the Māori 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 Chiefs of the United 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.

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.

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 existing 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 historic first seating of the first MMP Parliament, 16 December 1996.

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 were adopted in anticipation of a House of Representatives to be elected under the Mixed Member Proportional System (MMP) at the general election of 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). Amendments were made in August 1996 (Parl paper I. 18B, 1996).

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 attempting 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 principle 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.

Party representation. The number of seats held by parties in the House of Representatives at the 1993 general election had changed so that by the time of the 1996 general election the position was: 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 general election held on 12 October 1996 did not produce an outright majority of seats for either of the two main political parties. National (previously in coalition with the United New Zealand party) or Labour. A coalition agreement was concluded between National and New Zealand First on 11 December 1996 and the new Ministry was sworn in on 16 December 1996.

In the first House of Representatives to be elected under the Mixed Member Proportional system (MMP), there are: National 44 (30 electorate, 14 party list); Labour 37 (26 electorate, 11 party list); New Zealand First 17 (6 electorate, 11 party list); Alliance 13 (1 electorate, 12 party list); Act New Zealand 8 (1 electorate, 7 party list); United New Zealand (1 electorate).

The first change since the general election occurred in April 1997 when Jim Gerard, List MP, resigned to take up the position of High Commissioner to Canada. He was replaced by Annabel Young, the next candidate on the National Party List, who took her seat in the House on 23 April 1997.

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.

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 current 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 principles 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 matters as estimates, financial reviews and petitions. A committee must 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. Debate 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 45th New Zealand Parliament was called following the General Election of 12 October 1996, and began sitting on 12 December 1996.

Parliamentary Service—Te Ratonga Whare Paremata. The Parliamentary Service provides administrative and support services to 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 currently consists of the Speaker of the House of Representatives as chairperson, and eight members, two of whom are representatives of the Leader of the House and Leader of the Opposition, four other members agreed to by the House and two further members who are appointed as observers on behalf of other parties.

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 was 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.

Table 3.3. PARLIAMENTARY SESSIONS

 ParliamentPeriod of session
Source: Clerk of the House of Representatives
Forty-first{15 August 1984-12 December 1985
26 February 1986-21 July 1987
Forty-second{16 September 1987-12 December 1989
14 February 1990-6 September 1990
Forty-third{29 November 1990-18 January 1991
22 January 1991-30 September 1993
Forty-fourth 21 December 1993-6 September 1996
Forty-fifth 12 December 1996-

Table 3.4. SUMMARY OF PARLIAMENTARY PROCEEDINGS

 1990†1991‡1991-93§1993-96*

* Forty-fourth Parliament.

† Second session, forty-second Parliament.

‡ First session, forty-third Parliament.

§ Second session, forty-third Parliament.

Source: Clerk of the House of Representatives

Sitting days5610224203
Government Bills
Introduced4312150139
Referred to select committees339124117
Members' Bills
Introduced303135
Referred to select committees403229
Local Bills
Introduced502518
Referred to select committees502518
Private Bills
Introduced301111
Referred to select committees301111

Salaries and allowances of parliamentarians. These are set by the Higher Salaries Commission and are shown in table 3.5 below. A constituency allowance is paid at a rate dependent on the nature of each member's electorate, eg urban, rural, or semi-rural, and ranges from $8,000 to $20,000. A list member is paid an allowance of $4,000 per year. 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. Travel allowances are set out in the regulation, Parliamentary Salaries and Allowances Determination 1996/55.

Table 3.5. PARLIAMENTARY AND MINISTERIAL SALARIES AND ALLOWANCES

 Annual salary or allowance payable from 13 October 1996*

*Parliamentary Salaries and Allowances Determination S.R. 1996/55.

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 Cabinet115,000
Minister of the Crown without portfolio97,000
Parliamentary Under-Secretary97,000
Officers of the House of Representatives
Speaker126,000
Deputy Speaker100,000
Assistant Speaker79,500
Chairpersons of Select Committees77,500
Leader and Deputy of the Opposition
Leader of the Opposition126,000
Leader of other parties (depending on number of party MPs)82,500-90,000
Whips
Senior Whips86,500
Junior Whips81,500
Members of Parliament
Member of Parliament74,500
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—basic expenses allowance9,500
additional allowance7,500
Assistant Speaker—basic expenses allowance7,000
additional allowance1,000
Leader of the Opposition—basic expenses allowance12,000
Leader of other parties (depending on number of party MPs)10,000
Deputy Leader—basic expenses allowance7,000
additional allowance2,000
Constituency Members—basic expenses allowance7,000
List Members4,000

Table 3.6 lists members of the House of Representatives during the 45th Parliament. The final results of the 1996 General Election were printed in the report The General Election (printed as Parl paper E.9).

Table 3.6. HOUSE OF REPRESENTATIVES, FORTY-FIFTH PARLIAMENT (as at 30 April 1997)

Prime Minister—Rt Hon JB Bolger.
Leader of the Opposition—Rt Hon Helen Clark.
Speaker—Hon D Kidd.
Deputy Speaker—I Revell.
Clerk of the House—DG McGee.
Member*Year of birthPrevious occupationElectorate/listParty

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

† Resigned April 1997.

Source: Clerk of the House of Representatives

Anae, Arthur1946Company directorlistNational
Anderton, Jim1938Company directorWigramAlliance
Awatere Huata, Donna1949Māori development consultantlistACT
Bank, Hon John1946RestaurateurWhangareiNational
Barker, Rick1951Trade unionistTukitukiLabour
Barnett, Tim1958Vol. sector managerChristchurch CentralLabour
Batten, Reverend Ann1944Anglican MinisterlistNZF
Birch, Rt Hon Bill1934Consultant surveyor-engineerPort WaikatoNational
Bloxham, Mrs Jenny1949BusinesswomanlistNZF
Bolger, Rt Hon Jim1935FarmerTaranaki/King CountryNational
Bradford, Hon Max1942Administrator, consultantRotoruaNational
Braybrooke, Geoff1935Sales managerNapierLabour
Brown, Peter1939Company directorlistNZF
Brownlee, Gerry1956TeacherIlamNational
Bunkle, Phillida1944University lecturerlistAlliance
Burton, Mark1956Community education organiserTaupoLabour
Carter, David1952Businessman, farmerBanks PeninsulaNational
Carter, John1950Local government officerNorthlandNational
Clark, Rt Hon Helen1950University lecturerOwairakaLabour
Corkery, Pam1956JournalistlistAlliance
Creech, Hon Wyatt1946AccountantWairarapaNational
Cullen, Hon Dr Michael1945University lecturerDunedin SouthLabour
Dalziel, Lianne1960Trade unionistlistLabour
Delamere, Hon Tuariki John1950Regional director TPKTe Tai RawhitiNZF
Donald, Rod1957Vol. sector administratorlistAlliance
Donnelly, Hon Brian1949School principallistNZF
Dunne, Hon Peter1954Deputy chief executive officerOhariu/BelmontUnited
Duynhoven, Harry1955TeacherNew PlymouthLabour
Dyson, Ruth1957Employment consultantlistLabour
East, Hon Paul QC1946Barrister and solicitorlistNational
Elder, Hon Jack1949TeacherlistNZF
English, Hon Bill1961FarmerClutha/SouthlandNational
Field, Taito Phillip1952Trade unionistMangereLabour
Fitzsimons, Jeanette1945Organic farmer, environment consultantlistAlliance
Fletcher, Hon Chris1955ManagerEpsomNational
Gerard, Jim†1937FarmerlistNational
Gillon, Grant1954EngineerlistAlliance
Goff, Hon Phil1953University lecturerNew LynnLabour
Gordon, Liz1955University lecturerlistAlliance
Gosche, Mark1955Trade unionistlistLabour
Graham, hon DAM1942Barrister and solicitorlistNational
Gresham, Hon Peter1933AccountantlistNational
Grover, Mr Frank1940Barrister and solicitorlistAlliance
Harré, Laila1966Barrister and solicitorlistAlliance
Hasler, Marie1948BusinesswomanWaitakereNational
Hawke, Joe1940Marae worker, housing consultantlistLabour
Hawkins, George1946TeacherManurewaLabour
Henare, Hon Tau1960Advisory officerTe Tai TokerauNZF
Herlihy, Gavan1947FarmerOtagoNational
Hide, Rodney1956Economic consultantlistACT
Hobbs, Marian1947TeacherlistLabour
Hodgson, Pete1950VeterinarianDunedin NorthLabour
Hunt, Rt Hon Jonathan1938TeacherlistLabour
Jennings, Owen1946FarmerlistACT
Keall, Judy1942ConsultantOtakiLabour
Kelly, Graham1941Trade unionistManaLabour
Kidd, Hon Doug1941Barrister and solicitorKaikouraNational
King, hon Annette1945Chief executive officerRongotaiLabour
Kirton, Hon Neil1956Health managerlistNZF
Kopu, Alamein1943Vol. sector workerlistAlliance
Kyd, Warren1939Barrister and solicitorHunuaNational
Lee, Sandra1952Local authority memberlistAlliance
Luxton, Hon John1946FarmerKarapiroNational
Mackey, Janet1953Real estate agentMahiaLabour
McCardle, Hon Peter1951Manager NZESlistNZF
McCully, Hon Murray1953Public relations consultantAlbanyNational
McDonald, Hon Robyn1951Skills trainerlistNZF
McKinnon, Rt Hon Don1939Real estate agentlistNational
McLauchlan, Joy1948Executive officerlistNational
McLean, Murray1949BusinessmanCoromandelNational
Maharey, Steve1953University lecturerPalmerston NorthLabour
Mahuta, Nanaia1970Archivist librarianlistLabour
Mallard, Trevor1954Executive assistantHutt SouthLabour
Mapp, Dr Wayne1952Law lecturerNorth ShoreNational
Mark, Ron1954Businessman, ex army officerlistNZF
Marshall, Hon Denis1943Farmer and company directorRangitikeiNational
Maxwell, Hon Roger1941FarmerlistNational
Moore, Rt Hon Mike1949Freezing workerWaimakaririLabour
Morgan, Tukoroirangi1958Television journalistTe Tai HauauruNZF
Morris, Hon Deborah1970Policy analystlistNZF
Neeson, Brian1945Real estate agentWaipareiraNational
Newman, Dr Muriel1950Tertiary and secondary teacher, business managerlistACT
O'Connor, Damien1958Tourism operatorWest Coast/TasmanLabour
O'Regan, Hon Katherine1946FarmerlistNational
Peck, Mark1953Trade unionistInvercargillLabour
Peters, Hon Winston1945Barrister and solicitorTaurangaNZF
Pettis, Jill1952Education administratorWanganuiLabour
Prebble, Hon Richard1948Barrister and solicitorWellington CentralACT
Quigley, Hon Derek1932Restructuring consultantlistACT
Revell, Ian1948Police officerNorthcoteNational
Robertson, H V Ross1949Industrial engineerManukau EastLabour
Robson, Matt1950Barrister and solicitorlistAlliance
Roy, Eric1948Farmer/company directorlistNational
Ryall, Tony1964AccountantBay of PlentyNational
Samuels, Mr Dover1939Company directorlistLabour
Schnauer, Patricia1942Barrister and solicitorlistACT
Shipley, Hon Jenny1952FarmerRakaiaNational
Shirley, Hon Ken1950Executive directorlistACT
Simcock, Bob1946Deer farmerHamilton WestNational
Simich, Clem1939General managerTamakiNational
Smith, Dr the Hon Lockwood1948Managing directorRodneyNational
Smith, Hon Nick1964EngineerNelsonNational
Sowry, Hon Roger1958Retail managerlistNational
Steel, Tony1941TeacherHamilton EastNational
Sutherland, Larry1951Trade unionistChristchurch EastLabour
Sutton, Hon Jim1941FarmerAorakiLabour
Swain, Paul1951Trade unionistRimutakaLabour
te Heuheu, Georgina1943Consultant, advocate Treaty issueslistNational
Tizard, Judith1956Electorate secretaryAuckland CentralLabour
Turia, TarianaIwi development workerlistLabour 
Upton, Hon Simon1958Student, teacherlistNational
Vernon, Belinda1958Financial controllerMaungakiekieNational
Waitai, Rana1943Police superintendentTe Puku o te WhenuaNZF
White, Jill1941NurselistLabour
Williamson, Hon Maurice1951Planning analystPakurangaNational
Wong, Pansy1955AccountantlistNational
Woolerton, R Doug1944FarmerlistNZF
Wright, John1945Motor mechaniclistAlliance
Wyllie, Tutekawa1955Māori fishing lobbyistTe Tai TongaNZF
Yates, Dianne1943Education officerlistLabour
Young, Annabel1956Business advisorlistNational

Some of the record number of women MPs in the 45th Parliament.

WOMEN IN PARLIAMENT

Whetu Tirikatene-Sullivan ONZ, MP for the Southern Māori electorate from 1967 to 1996, beneath a portrait of her father Sir Eruera Tirikatene, who represented Southern Māori from 1932 to 1967.

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.

First sitting of the Coalition Government's Cabinet.

Table 3.8. NEW ZEALAND GOVERNMENT, AT 30 APRIL 1997

Source: Cabinet Office
Governor-General:
His Excellency The Rt Hon Sir Michael Hardie Boys GCMG (assumed office 21 March 1996).
Official Secretary: Hugo Judd, CVO
 
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.
Hon Winston Peters, Deputy Prime Minister, Treasurer.
Rt Hon Don McKinnon, Minister of Foreign Affairs and Trade, Minister of Pacific Island Affairs, Minister for Disarmament and Arms Control, Minister for Ministerial Services.
Rt Hon W F Birch, Minister of Finance, Minister of Revenue.
Hon Jenny Shipley, Minister of State Services, Minister for State Owned Enterprises, Minister of Transport, Minister for Accident Rehabilitation and Compensation Insurance, Minister Responsible for Radio New Zealand Ltd.
Hon Douglas Graham, Minister of Justice, Minister for Courts, Minister in Charge of Treaty of Waitangi Negotiations.
Hon Tau Henare, Minister of Māori Affairs, Minister for Racing. Associate Minister for Sport, Fitness and Leisure.
Hon Paul East, QC, Attorney-General, Minister of Defence, Minister of Corrections, Minister in Charge of War Pensions, Minister in Charge of the Audit Department.
Dr Hon Lockwood Smith, Minister of Agriculture, Minister of Forestry, Minister for International Trade, Minister Responsible for Contact Energy Ltd.
Hon Peter McCardle, Minister of Employment.
Hon Wyatt Creech, Minister of Education, Leader of the House.
Hon Simon Upton, Minister for the Environment, Minister for Crown Research Institutes, Minister for Biosecurity, Associate Minister of Foreign Affairs and Trade.
Hon Jack Elder, Minister of Police, Minister of Internal Affairs, Minister of Civil Defence.
Hon Bill English, Minister of Health.
Hon John Luxton, Minister of Commerce, Minister of Fisheries, Minister of Lands. Minister for Industry, Associate Minister of Agriculture.
Hon Maurice Williamson, Minister of Research, Science and Technology, Minister of Communications, Minister for Information Technology, Minister of Statistics.
Hon John Delamere, Associate Treasurer, Minister in Charge of the Valuation Department, Minister in Charge of the Public Trust Office.
Hon Murray McCully, Minister of Housing, Minister of Tourism, Minister for Sport, Fitness and Leisure.
Hon Max Bradford, Minister of Labour, Minister of Immigration, Minister of Energy, Minister of Business Development.
Hon Roger Sowry, Minister of Social Welfare.
 
Ministers Outside Cabinet:
Hon Brian Donnelly, Minister Responsible for the Education Review Office, Associate Minister of Education.
Hon Chris Fletcher, Minister of Women's Affairs, Minister of Cultural Affairs, Minister of Local Government.
Hon Dr Nick Smith, Minister of Conservation, Associate Minister of Education, Associate Minister of Social Welfare.
Hon Deborah Morris, Minister of Youth Affairs. Associate Minister for Accident Rehabilitation and Compensation Insurance, Associate Minister for the Environment.
Hon Neil Kirton, Minister of Customs, Associate Minister of Health.
Hon Robyn McDonald, Minister for Senior Citizens, Minister of Consumer Affairs.

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. Māori and persons of Māori descent may choose to enrol for either a Māori 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 3.9. VOTING PATTERNS: 1981-1996

YearElectors on Master RollValid votes*Informal votes*Special votes disallowedVotes cast to electors on Master Roll

* Party votes in 1996.

† There were 2,061,746 valid electorate votes cast in 1996, and 18,796 informal electorate votes.

Source: Ministry of Justice

19812034747180130389985026391.44
19842111651192920175654203293.71
198721146561831777111844043389.06
199022021571824092101804284385.24
199323216641922796113644393285.20
199624185872072359*†8183*†5463388.28

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.

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

1995 ELECTORAL DISTRICTS - NORTH ISLAND

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 Māori 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 Māori 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 Māori 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).

1995 ELECTORAL DISTRICTS - SOUTH ISLAND

General election results. A triennial election of Members of Parliament was last held on 12 October 1996. The previous election was held on 6 November 1993. The total number of electors on the master roll for the 1996 election was 2,418,587. A total of 2,080,542 votes were cast, representing 88.3 percent of electors on the master roll.

Table 3.1. GENERAL ELECTION RESULTS

Political partyNumber of MPs
19841987*199019931996

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

Source: Ministry of Justice

Act----8
Alliance---213
Democrats2----
Labour5657294537
National3740675044
New Labour--1--
New Zealand First---217
United New Zealand----1

Section of the crowd waiting for election results outside the Otago Daily Times building, election night 1925.

Table 3.11. GENERAL ELECTIONS—VOTES FOR POLITICAL PARTIES

Political partyValid votesPercentage of total valid votes
19841987*199019931996†19841987199019931996

* Christian Coalition 1996.

† Party votes.

Source: Ministry of Justice

Act----126442----6.10
Alliance---350064209347---18.2110.10
Christian Heritage*---3874989716---2.024.33
Democrats14716210509130455--7.635.741.67--
Green--124915----6.85--
Labour82915487844864091566675958415942.9847.9635.1434.6828.19
Mana Motuhake5989978910869--0.310.530.60--
National69249480630587235867389270131535.8944.0247.8235.0533.84
New Labour--94171----5.16--
New Zealand First---161481276603---8.4013.35
United New Zealand----18245----0.88
Other18017268385040931851665320.941.462.761.663.21
     Total valid votes19292011831777182409219227962072359100.00100.00100.00100.00100.00
Informal votes75651118410180113648183
     Total19367661842961183427219341602080542

VOTER TURNOUT
Percentage of enrolled electors voting at general elections

Table 3.12. SEATS CONTESTED BY POLITICAL PARTIES, 1996 GENERAL ELECTION

 Constituency SeatsParty List
Source: Ministry of Justice
Act6256
Alliance6565
Aotearoa Legalise Cannabis419
Christian Coalitioin3741
Independent28-
Labour6560
Mana Māori718
McGillicuddy Serious4565
Natural Law6465
NZ Conservative620
New Zealand First6562
National6465
Progressive Greens2315
The Libertarianz224
United new Zealand2529
Other4966
            Total Candidates611670

General Licensing Poll. In 1990 the national triennial liquor licensing poll was abolished. Four local restoration poll votes were held at the same time as the 1996 General Election, in Eden, Grey Lynn, Roskill and Tawa. Local restoration received a majority in Grey Lynn.

Table 3.13. RESULTS OF ELECTORAL REFERENDUM POLL 1993

Voting issueVotesPercentage of vote
Source: Ministry of Justice
First past the post88496446.14
Mixed member proportional103291953.86

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 31 December 1996 the number of staff employed in the 39 public service departments was 33,011, almost 1,000 fewer than at December 1995 when the total was 33,982. Social Welfare had staff reductions of approximately 550 and the balance was largely from the reduction in temporary staff employed by Statistics New Zealand for the 1996 Census and temporary IRD staff.

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. During 1994-95 the Department of Justice was restructured. 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.

A new department. Land Information New Zealand, and a separate SOE, Terralink New Zealand were formed from the former Department of Survey and Land Information (DOSLI) on 1 July 1996.

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.

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 Services 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.

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

THE PUBLIC SERVICE
Ratio of male to female staff

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 3.14. CHIEF EXECUTIVES OF GOVERNMENT DEPARTMENTS*

DepartmentTitleName

*As at 31 May 1997.

† Announced May 1997.

Agriculture, Ministry ofDirector-GeneralB Ross
Audit DepartmentController and Auditor-GeneralD Macdonald
Commerce, Ministry ofSecretaryP Carpinter
Corrections, Department ofChief ExecutiveM Byers
Conservation, Department ofDirector-GeneralHugh Logan†
Courts, Department forChief ExecutiveW Bailey
Crown Law OfficeSolicitor-GeneralJJ McGrath QC
Cultural Affairs, Ministry ofChief ExecutiveCH Blake
Customs Service, New ZealandComptrollerGW Ludlow
Defence, Ministry ofSecretaryGC Hensley
Education, Ministry ofSecretaryH Fancy
Education Review OfficeChief Review OfficerJE Aitken
Environment, Ministry for theSecretaryD Church
Fisheries, Ministry ofChief ExecutiveW Tuck
Foreign Affairs and Trade, Ministry ofSecretaryRF Nottage
Forestry, Ministry ofSecretaryJM Valentine
Government Superannuation FundActing Chief ExecutiveMel Smith
Health, Ministry ofDirector-GeneralK Poutasi
Housing, Ministry ofChief Executivevacant
Inland Revenue DepartmentCommissionerG Holland
Internal Affairs, Department ofChief ExecutiveR Blakely
Justice, Ministry ofActing SecretaryD Smyth
Labour, Department ofSecretaryJM Chetwin
Land Information New Zealand Māori Development, Ministry ofChief ExecutiveN Love
National LibraryActing National LibrarianD Jenkins
Pacific Island AffairsActing Chief ExecutiveK Lackey
Prime Minister and Cabinet, Department ofChief ExecutiveS Murdoch
Public Trust OfficePublic TrusteeDR Hutton
Research, Science and Technology, Ministry ofChief ExecutiveJ Buwalda
Serious Fraud OfficeChief ExecutiveVacant
Social Welfare, Department ofDirector-GeneralMC Bazley
State Services CommissionState Services CommissionerM Wintringham
Statistics New ZealandGovernment StatisticianLW Cook
Transport, Ministry ofSecretaryGSE Milne
The TreasurySecretaryM Horn
Valuation New ZealandValuer-GeneralR Hutchison
Women's Affairs, Ministry ofSecretaryJ Lawrence
Youth Affairs, Ministry ofChief ExecutiveC Gibson

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 1996. Worldwide Web page addresses are given where available at the time of going to press.

Agriculture, Ministry of—Te Manatü 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. [www.maf.govt.nz]

Audit Office. See ‘Controller and Auditor-General’ further on in this section.

Commerce, Ministry of—Te Manatü 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, [www.moc.govt.nz]

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 noncustodial sentences imposed by the courts on offenders. This includes prison sentences and community corrections, such as periodic detention.

The Department of Corrections has over 3,900 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 prisons boards; and 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 re-offending: Public Prisons, Community Corrections, Psychological Service, Internal Audit, Corrland (responsible for the department's 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 department has four operational units, namely case processing (responsible for the administration of courts and tribunals and for providing support to the Judiciary); Collections (responsible for the enforcement of financial court orders); Mäori Land Court (responsible for the administrative support of the Mäori Land Court and the Mäori Appellate Court and for the administration of Mäori land records of ownership and title); and Waitangi Tribunal (responsible for administrative support to the Waitangi Tribunal).

Their work is complemented by support units: Resources (responsible for human resources, finance, security, and property at a corporate level) and Development (responsible for support and co-ordination of strategic change processes within the department).

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, [www.crownlaw.govt.nz]

Cultural Affairs, Ministry of—Te Manatü Tikanga-ä-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, [www.dia.govt.nz/mca]

Customs Service, New Zealand—Te Mana Arai O Aotearoa. The New Zealand Customs Service 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 service 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 service contributes to these goals, implementing appropriate programmes in co-operation with the business sector. See section 25.1: Customs.

The core business of the New Zealand Customs Service 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 Manatü 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—Te Ope Kaatua O Aotearoa. 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 T¯huhu 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 Manatü mō tē 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. [www.mfe.govt.nz]

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. [www.fish.govt.nz]

Foreign Affairs and Trade, Ministry of—Te Manatū Aorere. The Ministry of Foreign Affairs and Trade conducts the government's business with other 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. [www.mft.govt.nz]

Forestry, Ministry of—Te Manatū Ngāherehere. 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 Pūtea Penihana Kāwanatanga. 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, and administering and monitoring contracts for scheme management.

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. The purpose of Te Kete Hauora is to lead and influence the strategic direction of Māori health by providing informed policy advice to government. The Corporate and Information group is concerned with the internal operation of the ministry and the provision of health information to clients. [www.health.govt.nz]

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. [www.minhousing.govt.nz]

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 assistance (family support, independent family tax credit and guaranteed minimum family income) for working families, child support, and student loan repayments. [www.ird.govt.nz]

Internal Affairs, Department of—Te Tari Taiwhenua. The department develops policy and provides services which deal 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.) [www.dia.govt.nz]

Justice, Ministry of. The ministry 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 ministry 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. [www.dol.govt.nz]

Land Information New Zealand—Toitu te whenua. This department, established in July 1996, is responsible for the administration of various land-related legislation. It also now includes Land Title Services previously with the Department of Justice which is responsible for the creation and termination of land property rights, the issuing of land titles and the provision of public access to land title information. The former Department of Survey and Land Information (DOSLI) was split into Land Information New Zealand and an SOE, Terralink New Zealand Ltd which is responsible for value-added services such as commercial survey mapping and land activities. [www.linz.govt.nz]

Māori Development, Ministry of—Te Puni Kōkiri. The Ministry of Māori Development was established as a policy ministry on 1 January 1992 and replaced Manatu Māori (the Ministry of Māori 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 Māori, and on key government policies as they affect Māori.

In carrying out this role Te Puni Kōkiri's functions are to: (a) provide strategic leadership advice on Māori development issues and on the Crown's relationship with iwi, hapu, and Māori; (b) provide advice on sectoral issues; (c) monitor the performance of mainstream government departments in addressing the parity gap between Māori and non-Māori; (d) facilitate consultation between the Crown, its agencies, and iwi, hapu and Māori, on policies affecting Māori, and the development of the relationship between the Crown and Māori. Te Puni Kōkiri 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. [www.tpk.govt.nz]

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. [www.natlib.govt.nz]

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—Ngā Pirihimana o Aotearoa. The police aim to serve the community through meeting the following strategic goals: to reduce the incidence and effects of crime; to protect property, enhance public safety and maintain law and order; to improve the detection and apprehension of offenders; to improve the safe and efficient use of roads; to implement and maintain community-orientated policing; to strengthen public confidence and satisfaction with police services; and, to achieve excellence and equity in the management of 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 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, such as the operation of the Crime Prevention Unit and of the Employment Taskforce. See section 3.2: Parliament and the Cabinet. [www.cabinet.govt.nz]

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

Research, Science and Technology, Ministry of—Te Manatū Putaiao. Established in October 1989, the ministry's primary role is to provide advice to government on the 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. [www.morst.govt.nz]

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 co-ordination among any organisations and individuals (including departments of state and other agencies of the Crown) engaged in social welfare activities; (e) to undertake and promote research into aspects of social welfare; (f) to provide such administrative services as the minister may from time to time direct to such boards, councils, committees, and agencies as he or she may direct; (g) to receive and disburse maintenance payments and enforce 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. [www.dsw.govt.nz]

State Services Commission—Te Kōmihana o ngā Tari Kāwanatanga. See ‘State Services Commissioner’ earlier.

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. [www.stats.govt.nz]

Transport, Ministry of—Te Manatū 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 department's core 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. [www.treasury.govt.nz]

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. [www.hindin.co.nz/vnz]

Waitangi, Bay of Islands, Māori Church about 1906. The Treaty of Waitangi memorial is on the left.

Women's Affairs, Ministry of—Te Minitatanga mō ngā Wāhine. 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; Māori 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 Māori 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 Ministry 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 Ombudsmen 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 3.15. COMPLAINTS TO THE OMBUDSMEN, 1995-96*

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 jurisdiction12281
Declined or discontinued section 17367145
Resolved in course of investigation2672953
Sustained, recommendation made1073
Substained, no recommendation made254 
Not sustained22214818
Formal investigation not undertaken, explanation, advice, or assistance given251437763
Complaints transferred to Privacy Commissioner12562
Still under investigation as at 30 June31025627
            Total38491165153

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. The 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. In 1996 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.

Table 3.16. COMPLAINTS TO THE PRIVACY COMMISSIONER, 1995-96*

*Year ended 30 June.

Source: Office of the Privacy Commissioner

Number of complaints received993
Complaints current at start of year583
Number of complaints under process1576
Number of complaints closed during year972
No jurisdiction57
Complaints resolved without final opinion703
Final opinion (substance 41—no substance 171)212

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 1995–96 major investigations were initiated on issues related to public authority performance, coastal management, public participation and aspects of management of the conservation estate. Two investigations on national issues were completed, Tussock Grassland Management and Historic and Cultural Heritage Management.

There were two major complaint investigations (airport noise control, and water supply grading system) and 17 minor investigations.

Table 3.17. REPORTS AND PAPERS BY THE COMMISSIONER

 1993-941994-951995-96
Source: Parliamentary Commissioner for the Environment
Investigation reports646566
Information transfer papers256482414
            Total316547480

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 Public 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. As at 30 June 1996, this included $600 million in the Common Fund, and $140 million in retail-managed funds. Public Trust also holds the statutorily-required deposits of insurance companies. Each year Public Trust awards a number of Māori and Pacific Island scholarships.

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.

Local government: The Te Kuiti Library and Council Chambers in 1912.

Under Parliamentary Standing Orders, local authorities can promote legislation about matters affecting areas within their jurisdiction which they are not empowered to deal with already. Where permanent or major additional powers are sought, a local bill must be prepared for the consideration of Parliament. If this is enacted it becomes a local act, and applies only to the body or bodies which promoted it.

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

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

Local government organisation

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

  • 12 regional councils.

  • 74 territorial authorities.

  • 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.

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

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

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 hierarchial as functional, with the range of regional council functions being limited.

Table 3.18. REGIONAL COUNCILS

RegionCouncil members*

*Based on 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 territorial 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.

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.

Table 3.19. 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

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.

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.)

Table 3.2. 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 Māori 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.

  • 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 for the Environment; Public Trust.

  • 3.4 Local Government Commission; Department of Internal Affairs.

  • 3.5 Department of Internal Affairs.

Special articles

Cabinet Office; Clerk of the House of Representatives; Department of Internal Affairs; Office of the Parliamentary Commissioner for the Environment; Crown Company Monitoring Advisory Unit; Dr Henare Broughton; Ko Huiarau (The United Tribes of New Zealand and Crown of England), Puriri 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

General Election, The. (Parl paper E.9).

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

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

McGee David, (1994) Parliamentary Practice in New Zealand, 2nd edition, Wellington, GP Publications

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 G.7).

Report of the Department of the Prime Minister and Cabinet (Parl paper G.48).

Report of the Office of the Clerk of the House of Representatives. (Parl paper A.8).

Report of the Parliamentary Service Commission (Parl paper A.2).

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

Report of the Standing Orders Committee on the Review of Standing Orders, 1995 (Parl paper I18. A).

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

Standing Orders of the House of Representatives, 1996.

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.

State sector

Anderson, A (1990), The quest for efficiency: The origins of the State Services Commission, State Services Commission, Wellington.

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 B. 28).

Reports of the Parliamentary Commissioner for the Environment (Parl paper C. 12).

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

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

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. Parliamentary Counsel Office (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.

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

Kelly, J and Marshall, B (1996), Atlas of New Zealand boundaries, Auckland University Press.

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

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

Chapter 4. International relations and defence

Artillery training with 25-pounders at Waiouru, 18 October 1950, before leaving for the Korean War.

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 New Zealanders abroad, and 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.

This and more information can be found on the Ministry's internet homepage http://www.mft.govt.nz.

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 $595 million in 1996. Fiji, Papua New Guinea and the French territories are the most important markets. Imports, amounting to about $150 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.

New Zealand Premier Richard Seddon at the opening of Parliament House, Nukualofa, Tonga, 1900.

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 Madang, Papua New Guinea in 1995 and Majuro, Marshall Islands in 1996. 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, economic development, transport issues, the environment, the law of the sea, fishing, regional and political security issues, and decolonisation. In 1996 economic and development issues were once again a major topic of the forum, which had as its theme ‘Pacific Solidarity for the Common Good’. The forum also agreed that economic ministers of the region should meet on an annual basis to discuss reform issues.

The Forum Secretariat, based in Suva, is given the task of implementing forum decisions. It works on a broad range of economic and political issues. 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. However, it has always been expected to operate on a commercial basis.

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.

The South Pacific Applied Geoscience Commission (SOPAC) was established in 1972 as a UN project. It became an independent regional organisation in 1984 and assists countries in the assessment, exploration and development of mineral and other non-living resources.

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. 1996 saw the signature of the Trans-Tasman Mutual Recognition Agreement, implementation of the Joint Food Standards Agreement and the achievement of the Single Aviation Market. 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 25.4: Major 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. There is free movement of people under the Trans-Tasman Travel Arrangement. A social security agreement was signed in 1994 updating the previous agreement, and a double taxation agreement 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, Osaka, Shanghai, Seoul, Singapore and Tokyo.

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).

Japanese professors, in Dunedin in 1996 to campaign for nuclear disarmament, look at photographs of the 1945 Hiroshima atomic bomb blast.

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. It also aims to create greater awareness of New Zealand in Asia. 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 works closely with the Foundation on key activities and visitor programmes.

Americas

United States. New Zealand's relationship with the United States is one of our most important. Shared values underpin close governmental and private sector contacts across a broad range of bilateral, regional and multilateral activities. The United States is a key economic partner. It is one of New Zealand's three most important export markets and a major source of 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.

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, 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 Co-operation 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, Chile and Buenos Aires (in 1997). The ambassador in Mexico is cross-accredited to Colombia, Peru and Venezuela, and the Ambassador in Chile to Brazil and Uruguay. The embassies' efforts are supported by honorary consular representatives in Bogota, Lima, 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.

OVERSEAS REPRESENTATION

Actors from the New Zealand Māori Theatre talking with young people in Kiev during their 1970 tour in the Soviet Union. Cultural contacts were possible even during the Cold War.

Trade and investment is the primary focus of New Zealand's relationship with Latin America and the Caribbean, mainly exports of dairy products, agricultural machinery and manufactured goods. New Zealand companies are involved in a wide range of activities there in the agriculture, forestry, fisheries, construction, telecommunications 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 GATT Uruguay Round negotiations 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 do not face volume restrictions on access, though there are concerns about some of the conditions affecting this access.

The countries of the EU are important partners for New Zealand in investment and as a source of technology and expertise. A number of bilateral agreements in areas of specific interest to New Zealand are under consideration. New Zealand and the EU concluded a bilateral Veterinary Agreement in December 1996. 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 meetings at ministerial level with 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.

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. A number of New Zealand exporters are now doing good business in Russia 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.

Grieving friends and relatives of Sheryl Thayer, the Red Cross nurse killed by terrorists in Chechnya, at the graveside reading in Wanaka, 1996. New Zealanders have for a long time been active in overseas humanitarian activities.

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 has an embassy in Moscow which is accredited to Belarus, Estonia, Kazakstan, 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 an important source of crude oil. In the year ended December 1996, New Zealand exports to the region totalled $876 million. Imports for the same period were $577 million. New Zealand has embassies in Tehran, Riyadh and Ankara, and cross-accreditations to Bahrain, Egypt, Israel, Jordan, Kuwait, Oman, Pakistan, Qatar and United Arab Emirates. The New Zealand Trade Development Board has a regional office in Dubai.

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 continues to support the search for peace in the Middle East. Progress was slow under the peace process in 1996 but the Hebron Protocol in January 1997 gave a fresh impetus to negotiations. New Zealand remains committed to supporting the principles of land for peace and the Oslo Declaration of Principle concluded between Israel and the Palestinians.

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. 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. New Zealand has contributed frigates to the Multinational Interception Force (MIF) which monitors the sanctions regime in the 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 (CMAG) to deal with violations of Commonwealth principles.

The New Zealand High Commissioner in Harare is accredited to Zimbabwe, Kenya, and Namibia. The New Zealand High Commissioner in Pretoria is accredited to South Africa, Botswana, Mozambique, Tanzania and Zambia. 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 were strengthened in August 1996 with the visit of the Prime Minister to South Africa and the opening of a High Commission in Pretoria.

New Zealand has a long-standing involvement in development co-operation in Africa. Through its Official Development Assistance (ODA) programme. In 1996 a new bilateral ODA programme was established with South Africa. NZODA also supported projects and training in seven other Commonwealth states in southern Africa. The total value of this support in 1996-97 will be $3.15 million, an increase of 43 percent on the $2.19 million provided in 1995-96.

In addition to this support a further $1.775 million was provided to activities in Africa from the Emergency and Disaster Relief allocation of NZODA. New Zealand also contributes substantial core funding to multilateral agencies (such as the World Bank and UNDP) working in Africa.

New Zealand is also participating in UN peacekeeping and de-mining missions in Angola and Mozambique.

Trade with African countries accounts for only a small percentage of New Zealand's global trade. Exports were valued at $ 112 million in the year ending December 1996. Among the major exports to the region are dairy products, fish and electrical equipment. Imports from Africa (valued at $92 million) include machinery, tobacco, plastics and textile fibres. In 1996 Egypt, Algeria, South Africa 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 1996-97 financial year these are:

  • $184.465 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.

  • $12.059 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.

Bagging harvested seaweed on Kiribati. The New Zealand Overseas Development Agency (NZODA) helped establish the seaweed growing industry to supplement the islands' revenue. Seaweed grows at a rapid rate in the tropical climate and is used in the food, cosmetic and pharmaceutical industries as an important thickening, gelling and stabilising agent.

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, China and South Africa. 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.

Table 4.1. OFFICIAL DEVELOPMENT ASSISTANCE PROGRAMME 1996-97

Programme$(000)
Source: Ministry of Foreign Affairs and Trade
Bilateral schedule—
     South Pacific Programmes—
          Cook Islands11,800
          Niue7,000
          Tokelau5,700
          Western Samoa7,550
          Tonga5,600
          Papua New Guinea6,000
          Fiji5,000
          Solomon Islands4,800
          Vanuatu4,600
          Kiribati3,100
          Tuvalu2,100
     Other Pacific Island Countries875
     South Pacific Regional Programmes5,250
     South Pacific Head of Mission Funds700
     Total South Pacific Programmes70,075
Other bilateral programmes—
     ASEAN and other Asia programmes25,875
     Americas/Africa programmes4,300
     Emergency and disaster relief5,400
     Voluntary agencies9,135
     Education and training (cross-regional scholarships)24,330
     Commonwealth Good Government programme500
     Total other bilateral programmes69,540
     Total bilateral schedule139,615
Multilateral schedule—
     International financial institutions20,325
     South Pacific agencies9,700
     United Nations agencies10,630
     Commonwealth agencies2,145
     Other organisations2,050
     Total multilateral schedule44,850
     Total Official Development Assistance184,465

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 (IDA), the Asian Development Bank (ADB), the United Nations Development Programme (UNDP) 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 as 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 was established within NZODA to provide assistance in this field to Commonwealth developing countries. In 1996 a similar International Good Government programme was established to extend similar assistance to non-Commonwealth countries, particularly those in Asia.

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 the major global instrument for maintaining peace and security, developing friendly relations among countries, encouraging international co-operation aimed at solving economic and social problems, establishing and strengthening an international framework, and promoting respect for human rights. Over the years the range and complexity of functions of the United Nations (UN) and its specialised agencies have steadily grown. New Zealand concentrates on areas where it can play a useful role in matters directly affecting its interests and where it can support efforts to secure lasting peace and security.

New Zealand continues to have a high profile at the UN. In 1996 New Zealand diplomat, Denise Almao, was elected to serve on the powerful UN Advisory Committee on Administrative and Budgetary Questions (ACABQ). This body examines and reports on the budgets and accounts of the UN and its constituent bodies. The New Zealand Ministry of Foreign Affairs and Trade has published annually since 1961 a United Nations Handbook, a comprehensive reference guide to the UN system.

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 1996 of $NZ4.39 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 1995-96, these dues amounted to more than NZ$9.89 million.

Human rights. As a party to international human rights instruments, New Zealand is required to report regularly to the United Nations monitoring bodies on the measures it has taken domestically to give effect to international standards. In 1997 New Zealand presented its initial report under the Convention on the Rights of the Child and submitted its Second Periodic Report under the Convention Against Torture, and Other Cruel and Degrading Treatment or Punishment. New Zealand will also submit its Second Periodic Report under the International Covenant on Economic, Social and Cultural Rights; its Fourth Periodic Report under the International Covenant on Civil and Political Rights; and its Twelfth and Thirteenth (consolidated) Report under the Convention on the Elimination of Racial Discrimination.

In 1996, New Zealand continued to give financial support in the field of human rights, including funds to assist national human rights institutions, advisory services for indigenous populations and victims of torture. At the Commission on Human Rights and the Third Committee of the General Assembly (with deals with social, cultural and humanitarian issues) New Zealand supported resolutions addressing a wide range of current international human rights concerns, in particular mainstreaming of women's issues within the United Nations system and indigenous issues.

Issues relating to the human rights of women and children continued to be a priority for New Zealand. In 1997 New Zealand continued to participate in the drafting of optional protocols to strengthen both the Convention on the Rights of the Child and the Convention on the Elimination of All Forms of Discrimination Against Women. Dame Silvia Cartwright continued her second term as a member of the Committee on the Elimination of Discrimination Against Women (CEDAW).

Indigenous issues continued to receive international attention in 1996, with activities continuing under the Decade for the World's Indigenous People. New Zealand participated in a range of international initiatives focusing on indigenous people, including the second meeting of the intergovernmental working group considering a Draft Declaration on the Rights of Indigenous People.

The specialised agencies. The UN system encompasses 14 autonomous organisations known as the Specialised Agencies (14 if the World Bank Group is counted as one, 19 if the World Bank Group is split). There is also a large number of additional bodies with their own secretariats, budgets and operations. New Zealand is a member of all the major specialised agencies. 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 1995-99.

Terence O'Brien, presiding at the UN Security Council at a session in 1993, with UN Secretary-General Boutros Boutros-Ghali at his right.

Sir Leslie Munro, President of the Twelfth session of the General Assembly 1957-58. Official United Nations photo

Sir Carl Berendsen, New Zealand's permanent delegate to the United Nation 1949-1952 and representative on the UN Trusteeship Council.

Other UN specialised 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).

New Zealand participates in other UN bodies and programmes concerned with such diverse subjects as atomic energy (IAEA), refugees (UNHCR), development (UNDP) and environmental issues (UNEP). New Zealand was elected to the Executive Board of the UN Children's Fund (UNICEF) for the period 1997 to 1999.

World Trade Organisation

The World Trade Organisation (WTO) was established on 1 January 1995. It is an international organisation which acts as a single institutional framework 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 shares. 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.

PEACEKEEPING COMMITMENTS
Since 1952, including current commitments

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, based in London, 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, the environment, 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 will be the completion of 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 around 1,500. 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. In 1996 the formal step of devolving the legislative power was taken. With the passage of the Tokelau Amendment Act 1996 by the New Zealand Parliament, the General Fono has been able since 1 August 1996 to exercise a rule-making power.

The Council of Faipule's head is the Ulu o Tokelau (Leader of Tokelau), a post which rotates on a yearly basis. The Ulu for 1997 is Falima Teao, Faipule of Fakaofo.

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 an 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 43 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 (NZDF).

The Minister of Defence has the power of control of the New Zealand Defence Force, which is exercised through the Chief of Defence Force. The Chief of Defence Force is the principal military adviser to the Minister and is 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 chairing the Chiefs of Staff Committee.

The Secretary of Defence is the chief executive of the Ministry of Defence and 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 most recent statement of the Government's defence policy is contained in the 1991 white paper, The Defence of New Zealand. New Zealand's defence policy is based on several fundamental features of our environment: firstly our maritime setting and distance from other land masses; secondly, a small population and economic base; and thirdly, a heavy reliance on overseas trade, with lines of supply and communication among the longest in the world. Distance enhances our security, although we are not invulnerable, but protecting New Zealand interests may require deploying over long distances. Distance is therefore a major feature of defence planing in New Zealand.

In this context, New Zealand maintains a defence force to meet three major requirements: the direct defence of New Zealand and those South Pacific nations for which we have a defence responsibility; to support our wider national interests in Australia and East Asia; and to contribute to global collective security efforts.

Our defence policy goals are 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.

Victoria Cross plaques at the former RSA headquarters in Moray Place, Dunedin, being prepared for relocation in 1996.

“The New Zealand Expeditionary Force passing along Hutt Road October 10, 1914.”

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

  • Maintain and develop defence co-operation with ASEAN countries, and 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 strategy which the white paper defines as being appropriate to meet these goals is ‘self reliance in partnership’. New Zealand does not foresee a direct threat to its territory. Realistically, direct threats to New Zealand could include offshore demonstrations of force and low-level contingencies such as resource poaching and terrorism. Addressing these tasks requires a self-reliant capability. However, threats to our vital economic interests, such as a conflict in South-East Asia, require a partnership approach, as the interests of our friends in that region would also be affected.

The white paper also developed the concept of the credible minimum force. Minimum because it must be fiscally sustainable, and credible because even at a minimum level it must be seen to be capable of achieving the government's essential goals. The minimum must be credible to the New Zealand taxpayer and to our friends and allies with whom we would be operating. Unless the minimum is credible, we risk wasting our investment in the Defence Force.

The credible minimum defence force is based on providing the New Zealand government with a reasonable range of force options from which to select an appropriate response to any contingency. The implications of this for force structure are a highly trained, well-equipped and general purpose defence force, with an emphasis on professionalism, long reach, mobility, and a high degree of readiness. The military effectiveness of such a force is the ultimate test of its credibility.

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 most significant development over the past twelve months has been the extension and enhancement of the Nowra Agreement (see below).

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. The New Zealand Defence Force takes an active part in exercises which are designed to improve the ability of the forces of the five nations to operate together.

Mutual Assistance Programme. ASEAN (except Viet Nam) 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.

Liaison 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, the Philippines, 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 attachés on the staffs of the French, Indonesian and United States embassies in Wellington. Several other countries have service attachés accredited to, but not resident in, New Zealand.

Armed forces overseas

Singapore and Malaysia. 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 worked with UNTSO in Israel and neighbouring countries since 1954. They help to monitor cease-fires, supervise armistice agreements, prevent isolated incidents from escalating, and assist subsequent peacekeeping operations. New Zealand currently 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.

Implementation Force (IFOR)/Stabilisation Force (SFOR). Following the transition from the UN Protection Force to IFOR in Bosnia, New Zealand withdrew its 250-strong contingent in January 1996. The NZDF continued to be involved through the contribution of 15 staff officers filling a range of appointments on the British headquarters in IFOR. This contribution was reduced to nine officers in June 1996. A further contribution of eight officers has since been made to the Stabilisation force, which replaced IFOR in mid-December. The Defence Force has also maintained military observers with the three UN missions that continue in the former Yugoslavia. One observer is deployed with UNMOP (Croatia), one with UNPREDEP (Macedonia), and four with UNTAES (Croatia), including the Chief Military Observer.

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 an operations officer and a logistics officer working at the centre.

THE COST OF WAR
New Zealand's war casualties

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. Three 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.

DEFENCE FORCE LOCATIONS

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 TOMBOK, 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 a range of air-transport exercises, including the competition Exercise BULLSEYE. Exercise TROPIC ASTRA practises tactical helicopter 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.

Whitanui conscientious objectors detention camp, 1941-46.

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 1995-96 survey work was undertaken at Whitianga, the Bay of Plenty, the east coast of the North Island, and Fiordland.

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 89 patrols throughout the New Zealand area and its approaches in 1995-96.

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 searches 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 1995-96 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 communications 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 97 active cadet units (18 Sea Cadet Corps, 29 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 1,915 volunteers had graduated from the courses by 31 October 1996.

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.

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
19961997
Source: New Zealand Defence Force, Ministry of Defence
 $(000)
Personnel expense500,303498,107
Operating expense310,118310,594
Depreciation202,215201,264
Capital charge384,043387.675
      Total output expense1,396,6791,397,640
Less
Revenue(10,118)(7,539)
Surplus/(Deficit)(6,425) 
      Subtotal16,5437,539
Crown revenue provided1,380,1361,390,101

Table 4.3. NUMBER OF DEFENCE PERSONNEL

As at 30 JuneNavyArmyAir ForceTotalCivilians
Source: New Zealand Defence Force
1992247546883617107802546
1993234045423440103222532
1994218845163368100722443
199521524510329699581954
199620744349318896112033

Table 4.4. INTERNATIONAL COMPARISON OF DEFENCE EXPENDITURE

 Percentage of GDP
19931994199519961997*

* Estimated.

† Year ending 30 June.

‡ Year ending 31 March.

§ Year ending 30 September.

Source: New Zealand Defence Force

Australia†2.42.32.22.12.0
Canada‡1.71.51.61.51.3
New Zealand†1.51.51.41.31.4
Sweden†2.52.62.62.52.3
United Kingdom‡4.13.73.43.13.0
United States of America§4.74.23.93.43.2

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)Wellington}Naval Combat Force
Waikato
Canterbury
Fleet tankerEndeavour
Support shipCharles UphamStrategic Sea Transport Force
Research shipTui
Survey shipMonowai}Hydrographic Survey Force
Inshore survey craftTakapu
Tarapunga
Inshore patrol craftMoa}Maritime Mine Warfare Force
Kiwi
Wakakura
Hinau
Diving support vesselManawanui
Training tenderKahu
Dockyard service craftAratiki

Te Kaha, the first of the RNZN's ANZAC-class frigates, was handed over to the RNZN on 28 February 1997, and commissioned on 6 June 1997. The second ANZAC-class frigate for the RNZN has been named Te Mana, and was scheduled to be launched on 10 May 1997. HMNZS Resolution (formerly USN Tenacious) has been acquired to replace HMNZ Ships Monowai and Tui in the hydrographic and oceanographic roles. Resolution will enter service in early 1998.

Shore establishments. The naval base at Devonport, Auckland, consists of the office of the Maritime Commander (the operational authority for the RNZN), HMNZS Philomel (the naval barracks and base support establishment), the Royal New Zealand Naval Hospital, and the Naval Supply Depot. Collocated with the naval base is the dockyard, a comprehensive engineering facility for the support of naval vessels, which is managed by Babcock New Zealand Limited. 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 naval base. The RNZN Armament Depot is located 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 divisions of the Royal New Zealand Naval Volunteer Reserve, based at Auckland (HMNZS Ngapona), Wellington (HMNZS Olphert), Christchurch (HMNZS Pegasus), and Dunedin (HMNZS Toroa). There is also a port headquarters in Tauranga.

Table 4.6. STRENGTH OF THE NAVY

CategoryAt 30 June
1993199419951996
Source: New Zealand Defence Force
Regular forces:
     Officers419400395391
          Ratings1911178817571683
          Total2330218821522074
Royal New Zealand Naval Volunteer Reserve (all ranks)484424370367

A lance-corporal checks the oil in an Army landrover, 20 January 1976.

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.

The Air Force's Red Checkers aerobatic team practises a close-formation loop over the Tararua Ranges before a show at RNZAF Base Ohakea, 1996.

State of the Army. Major army units comprise two Regular Force infantry battalions, six Territorial Force infantry battalions, a light armoured regiment, a field artillery regiment, an engineer regiment, three signals squadrons, a Special Air Service group, and four logistics regiments. Major equipment includes 8 combat reconnaissance vehicles (tracked), 78 armoured personnel-carriers, 32105mm guns/howitzers and 5081mm mortars.

Table 4.7. STRENGTH OF THE ARMY

CategoryAt 30 June
1993199419951996
Source: New Zealand Defence Force
Regular forces:
     Officers687631627612
     Other ranks3875388538833737
          Total4562451645104349
Territorial Force (all ranks)4549448043714152

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 of specific aircraft and engines 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.

Table 4.8. STATE OF THE AIR FORCE

Operational units' roleAircraftLocation
Source: New Zealand Defence Force
Maritime6 Orions}RNZAF Base Auckland
Transport{2 Boeing 727s
4 Andovers
5 Hercules
Helicopters{6 Wasps (operated by RNZN)
5 Sioux
11 Iroquois
2 IroquoisRNZAF Base Wigram
HMAS Albatross,
Nowra, NSW
Combat Air Support{6 Skyhawks
 
Flying training 13 Skyhawks}RNZAF Base Ohakea
17 Aermacchi
15 Air Trainers

Table 4.9. STRENGTH OF THE AIR FORCE

CategoryAt 30 June
1993199419951996
Source: New Zealand Defence Force
Regular forces:
     Officers605620619620
     Other ranks2947274826762568
          Total3552336832953188
Territorial Air Force187136101170

4.5 Intelligence and security

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. It is not a function of the Service to enforce measures for security or to further the interests of a political party. The New Zealand Security Intelligence Service Act 1969 does not limit the right of persons to engage in lawful advocacy, protest or dissent in respect of any matter and the exercise of that right shall not, of itself, justify the Service in instituting surveillance of any person or entity within New Zealand.

The Service is subject to oversight and review by an Inspector-General and the Intelligence and Security Committee, both of which were established by acts passed in 1996.

During the year ended 31 March 1996, 4 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 4 months and 19 days. The methods of interception used were listening devices and the copying of documents.

Table 4.1. EXPENDITURE ON INTELLIGENCE AND SECURITY AGENCIES

Year ended 30 JuneEABSISGCSB
Source: External Assessments Bureau, Security Intelligence Service and Government Communications Security Bureau
 $(000)
19932,25610,30420,967
19942,2899,98719,279
19952,1219,96419,498
19962,2169,96818,541

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 Committee Act and the Inspector-General of Intelligence and Security Act were passed in July 1996 to increase the level of oversight and review of the GCSB.

External Assessments Bureau

Part of the Department of Prime Minister and Cabinet, the External Assessments Bureau (EAB) produces intelligence assessments of events and trends overseas to support informed decisionmaking by the government on events or trends likely to influence New Zealand's foreign relations and external interests. The staff of about 30 identify, collate, evaluate and analyse information collected from a range of sources, and prepare assessments and reports on political, economic, social, biographic, strategic, geographic, infrastructural, scientific and technological matters.

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; External Assessments Bureau.

Special articles

Asia 2000 Foundation of New Zealand; Ministry of Foreign Affairs and Trade; Statistics New Zealand, based on Out in the cold: Pacifists and conscientious objectors in New Zealand during World War II by David Grant, Reed Methuen, 1986.

Further information

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

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

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

Development Business. Development Co-operation Division, Ministry of Foreign Affairs and Trade.

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

In the field for peace: New Zealand's contribution to international peace-support operations: 1950-95, John Crawford. New Zealand Defence Force, 1996.

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

New Zealand Defence Quarterly. Ministry of Defence.

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

New Zealand International Review (bi-monthly). Institute of International Affairs.

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

Report of the Asia 2000 Foundation of New Zealand (Parl Paper G.47).

Report of the Ministry of Defence (Parl Paper G.4).

Report of the Ministry of Foreign Affairs and Trade (Parl Paper A.1).

Report of the New Zealand Defence Force (Parl Paper G.55).

The trans-Tasman relationship, Sir Frank Holmes. Institute of Policy Studies.

United Nations Handbook. Ministry of Foreign Affairs and Trade.

The Institute of Policy Studies and the Centre for Strategic Studies, both at Victoria University of Wellington, publish books on international affairs and defence topics.

Chapter 5. Population

Members of the older generation taking a break at a family reunion.

The demography of New Zealand has changed dramatically in the past hundred years. The nation has passed through a ‘demographic transition’ similar to those experienced by most western countries, and despite continued reliance on agricultural exports, has become highly urbanised.

Family formation patterns have changed radically, the divorce rate has soared, and de facto unions have become common. The average family size has shrunk to less than half of what it was and is now at a historic low. Substantial reductions in mortality mean that New Zealanders now expect to live, on average, over 20 years longer than they did a century ago.

The population age structure has also undergone profound changes, largely as a result of peaks and troughs in the birth rate. The number of elderly New Zealanders has increased over 20-fold since 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. Continued low birth rates 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 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 3.68 million at the 1996 Census, held on 5 March.

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, 127,866 during 1986-91 and 246,596 over the latest intercensal period, 1991-96.

POPULATION GROWTH
Percentage annual increase

“The face looks familiar …” Families past and present at the reunion in Leeston of descendants of a family who arrived in New Zealand about 130 years ago. Six generations were present. A growing interest in family origins has led to much genealogical research and many family reunions of this sort in recent years.

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 1956, 69 percent of the population resided in the North Island, by 1976 this figure had risen to over 72 percent and in 1996 was at almost 75 percent.

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
Source: Statistics New Zealand
Northland1148881781717466352833510.99
Auckland863304664176124812766551694.05
Waikato30114042174405488272216261.97
Bay of Plenty185190319772351155488846615.26
Gisborne398254485780912294−3324−27.04
Hawke's Bay126138138031698630789−3183−10.34
Taranaki9756994981254922047−3051−13.84
Manawatu-Wanganui204828299823091260894−930−1.53
Wellington366981362614268478945−6423−8.14
Nelson-Marlborough99387152491227327522297610.81
West Coast298954305620110506−1896−18.05
Canterbury40291536360308976725754638.12
Otago164925194191966539084−246−0.63
Southland9151272271222519452−4998−25.69

Urban and rural

New Zealand is a highly urbanised country with 85 percent of the population residing in urban areas at the 1996 Census. Cities have increased their dominance over time. By 1911, more than half the population was found in urban areas, rising to more than three-quarters by 1961. Since 1981, the proportion of New Zealanders living in urban areas has stabilised at around 85 percent.

The cities

At the time of the 1996 Census, while 85 percent of the population lived in urban areas, 69 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 1996, 29 percent of New Zealand's population lived there, compared with only 14 percent 70 years earlier.

URBAN DRIFT
Ratio of urban to rural population

Between 1991 and 1996, most main urban areas experienced population growth, particularly those located in the north of both islands. However, almost half of the secondary urban areas either lost population or grew very slowly. While the New Zealand population increased by 7 percent between 1991 and 1996, the population of main urban areas grew by 8 percent, secondary urban areas by 3 percent and minor urban areas by almost 4 percent.

Former deputy Government Statistician Ron Welply examining forms for the 1996 Census.

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

Population of local government areas today

Tables 5.7 and 5.8 outline the population of New Zealand's 74 territorial authority areas and 16 regional councils.

Table 5.7. POPULATION OF TERRITORIAL AUTHORITIES

Territorial authority*Census of population 1991Census of population 1996Intercensal increase or decrease (-) 1991-96

*Boundaries as at 5 March 1996.

† Includes oil rigs, Kermadec, Campbell and other off-shore islands, and inlet and coastal waters not included within territorial authorities.

Citiesnumberpercent
North Shore1521341714941936012.7
Waitakere1367161543861767012.9
Auckland3156683545323886412.3
Manukau2261472546032845612.6
Hamilton10144810904375957.5
Napier516455422425795.0
Palmerston North703187308027623.9
Porirua4660146393−208−0.4
Upper Hutt3709236738−354−1.0
Lower Hutt94540953908500.9
Wellington15030115984595446.3
Nelson3794342034409110.8
Christchurch292858315118222607.6
Dunedin11657711961230352.6
Invercargill5614853243−2905−5.2
            Subtotal, cities188613620397351535998.1
Districts
Far North5156857079551110.7
Whangarei626446720245587.3
Kaipara17325175842591.5
Rodney55784672611147720.6
Papakura365533929827457.5
Franklin4219348285609214.4
Thames-Coromandel2503727715267810.7
Hauraki16921172633422.0
Waikato375563910515494.1
Matamata-Piako29408296552470.8
Waipa370313962125907.0
Otorohanga923198225916.4
South Waikato2618624671−1515−5.8
Waitomo100749991−83−0.8
Taupo3072133778305710.0
Western Bay of Plenty3013735292515517.1
Tauranga67333783181098516.3
Rotorua650966899038946.0
Whakatane321123345413424.2
Kawerau81357754−381−4.7
Opotiki8676960793110.7
Gisborne443614596216013.6
Wairoa1037110084−287−2.8
Hastings646936668219893.1
Central Hawke's Bay12594130014073.2
New Plymouth67951681692180.3
Stratford98469729−117−1.2
South Taranaki2951928801−718−2.4
Ruapehu18104183292251.2
Wanganui45082453192370.5
Rangitikei1667616531−145−0.9
Manawatu27182279707882.9
Tararua1947818742−736−3.8
Horowhenua29476297702941.0
Kapiti Coast353093868733789.6
Masterton2294723044970.4
Carterton69136791−122−1.8
South Wairarapa90378839−198−2.2
Tasman364164003636209.9
Marlborough367654024234779.5
Kaikoura371140403298.9
Buller10941112423012.8
Grey13742143265844.2
Westland9250100718218.9
Hurunui9569101135445.7
Waimakariri2786232225436315.7
Banks Peninsula76398768112914.8
Selwyn2135925141378217.7
Ashburton24435251276922.8
Timaru4320842964−244−0.6
Mackenzie505755324759.4
Waimate77937604−189−2.4
Chatham Islands760739−21−2.8
Waitaki2299122384−607−2.6
Central Otago1569615345−351−2.2
Queenstown-Lakes1512319828470531.1
Clutha1830318243−60−0.3
Southland3368133329−352−1.0
Gore1359613002−594−4.4
            Subtotal, districts15471571638496913395.9
Other†165733151658100.1
            Total, New Zealand343495036815462465967.2

Table 5.8. POPULATION OF REGIONAL COUNCILS

RegionCensus of population 1991Census of population 1996Population change 1991-96

*Includes oil rigs and Campbell, Kermadec and Chatham Islands.

Source: Statistics New Zealand

 numberpercent
North Island
Northland131620141865102457.8
Auckland953980107720512322512.9
Waikato338883357294184115.4
Bay of Plenty2082392304652222610.7
Gisborne443874608917023.8
Hawke's Bay13948314429248093.4
Taranaki107222106570−652−0.6
Manawatu-Wanganui22661222998933771.5
Wellington402892416019131273.3
            Total, North Island255331827497881964707.7
South Island
Tasman364184003636189.9
Nelson3799542073407810.7
Marlborough367714024234719.4
West Coast339613567117105.0
Canterbury446114478912327987.4
Otago18606719313270653.8
Southland103442100758−2684−2.6
            Total, South Island880768930824500565.7
Other*864934708.1
            Total, New Zealand343495036815462465967.2

A get-together of Central Otago twins at Clyde, 1966, organised by the Plunket Society. Their mothers meet regularly in an informal support group.

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.

MEDIAN AGE OF CHILDBEARING
Based on live confinements (multiple births are counted only once)

Completing a census form for a new daughter (3 hours 45 minutes old), March 1996.

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 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 1991-95, births exceeded deaths by 157,314, an increase of 26 percent over 1981-85.

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 49 years.)

In 1935 the fertility rate in New Zealand fell to a low of 2.2 births per woman. This lower rate is attributed to fewer and later marriages, and family limitation within marriage exerting their influence. With the demobilisation of forces after World War II and the resulting increase in marriages and births, the fertility rate recovered to 3.6 births per woman in 1947.

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 most common age group for childbearing. The median age at first birth fell from 25.4 years in 1945 to 22.8 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 1946 and 1965—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.

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 1995. 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 1970s. The average age at first marriage in 1995 for women was 26.9 years and 28.9 years for men. This compares with 22.2 and 24.8 years, respectively, in 1976.

A growing proportion of New Zealanders are remaining single through their twenties. 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.

The growth in de facto unions partly accounts for the rise in the number of ex-nuptial births (children born to women who are not legally married to the child's father), up from almost 7,000 in 1966 to almost 10,000 in 1976, and to almost 24,000 in 1996. Ex-nuptial births comprised 12 percent of all births registered in New Zealand in 1966, and 42 percent in 1996. Changing social norms and the availability of social welfare benefits to single parents have contributed to this increase.

BIRTHS OUTSIDE MARRIAGE
Ex nuptial birth rate*

IMPLIED FAMILY SIZE
Total fertility rate*

There is also a high incidence of ex-nuptial births among Māori. In 1995, 80 percent of all Māori 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 Māori towards childbearing outside wedlock, but arises partly from the fact that Māori customary marriages are not legally recognised.

The transition in Māori fertility from relatively large to small families is of more recent origin. Their total fertility rate fell from a high of 6.18 births per woman in 1962 to 2.19 births per woman in 1990, a 65 percent drop. However, the Māori fertility rate rose slightly to reach 2.38 in 1995. The gap between Māori and non-Māori fertility narrowed from 2.14 in 1962 to 0.02 births per woman in 1990, but has widened slightly to 0.39 in 1995.

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.

BIRTH AND DEATH RATES
For total population*

A 68-year-old demonstrates scaling the climbing wall at the YMCA's recreation centre in Christchurch, for the Older and Bolder recreation week, 1996.

LONGER LIVES
Average age at death*

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 5 years in the life expectancy at birth of men and 4.5 years in 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 6.7 per 1,000 in 1995, it is still high compared with some European countries, particularly its post neo-natal component (ie death of a child over 28 days but under 1 year of age) (see also 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.

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 2 years. By 1950-52 the female advantage had increased to 4 years, and by 1990-92, it was about 6 years. Of recent years the female-male differences in mortality appear to have stabilised at just under 6 years.

Life expectancy also varies according to ethnicity, with a substantial reduction in Māori mortality in the last three decades, and a significant convergence in the Māori-pakeha gap in longevity. The life expectancy at birth for Māori 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 Māori counterpart by 5.4 years. For females, the difference was 6.2 years.

LIFE EXPECTANCY
At birth for selected periods*

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.

Scotch Paterson, an 84-year-old graduate of Victoria University of Wellington, completed a BA in philosophy in 1996 with the aid of a student loan and a bit of busking.

COMPONENTS OF POPULATION GROWTH
Annual net migration and natural increase

CHANGING AGES
Median age of the total population*

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 from 254,000 during 1968, to 2.5 million during the year ended 31 March 1996. 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 1996 arrivals exceeded departures by 28,609 emphasising the large swings in the external migration balance from one period to another, as shown in table 5.13.

The 1980s brought radical changes in permanent and long-term migration (people whose stated intention is arriving to settle, or departing for 12 months or more). This had shown an almost unbroken upward trend since the 1950s, rising from 6,886 in 1950 to 81,008 in 1979. In the year ended March 1980, the number of permanent and long-term departures declined by 6 percent. By 1984 the number of emigrants had fallen to 34,147. A drop in departures to Australia accounted for about three-fifths of this decline. For the first time since 1976, more people arrived in New Zealand than left in 1983 and 1984, giving small gains to the country of 3,180 and 6,558 respectively for those years. However, the turnaround was short-lived. During the remainder of the 1980s, the number of departures resumed an upward movement, reaching a peak in 1989 with 70,941 emigrants, giving a net outflow of 24,708 people for that year.

The 1990s have seen a return to net population gains from migration, resulting from both increases in the number of permanent and long-term arrivals, and decreases in departures. In the year ended March 1991, there was a net gain of 11,616 people. By 1995 this had almost doubled to 21,697 people and by 1996 reached 29,832—the highest recorded (March year) gain of permanent and long-term migrants. These gains have occurred despite net losses of population to Australia. In 1995 there was a net outflow of 6,795 people to Australia. This figure increased further to 9,156 in 1996.

Immigration from the South Pacific countries, although small in size, is continuing. Net migration from Asia has shown a large increase over recent years. In 1988 net permanent and long-term migration from Asian countries was 3,998 and by the year ended 31 March 1996 it had risen to 23,489. 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 1996 Census shows that there were 1,809,309 males and 1,872,237 females in New Zealand representing a sex ratio of 97 males per 100 females. The shift largely reflects the preponderance of females among the elderly population (65 years and over) which carried a sex ratio of 76 males per 100 females in 1996. At ages below 65 years, women now outnumber men by a small margin.

Changes in the age structure of New Zealand's 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 (ie those aged 15-64 years) in the population—only 58 percent in 1961. The elderly population (aged 65 years and over) increased in size by 42 percent between 1945 and 1961, to make up over 8 percent of the total population. As the ‘youth’ and ‘aged’ components reinforced each other, the dependency ratio lifted sharply to 0.72.

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 7.5 years since 1971, from 25.6 years to 33.1 years in 1996. The dependency ratio has fallen to a more favourable 0.53, due largely to a sharp drop in the ‘youth’ component.

At the 1996 Census, there were 835,830 children under the age of 15 in New Zealand (down from 909,623 in 1971). They made up just under 23 percent of the population. The working-age population has risen considerably since 1971 (by over half a million) to number 2,413,190 at the 1996 Census. 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 Māori 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-Māori, 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-Māori, non-Polynesian counterparts (which is 32.2 years). At the other end of the age scale, only 4 percent of Māori, 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-Māori, non-Pacific Island Polynesian population.

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.

In 1969 this group of Rarotongans arrived to take up prearranged employment, mostly with clothing manufacturers.

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 Māori population makes up the next largest group of the population, about 14.5 percent in 1996. The third main ethnic group is the Pacific Island people, who made up 5.6 percent of the population at the time of the 1996 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 inter-marriage 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.

Māori population. Estimates of the size of the Māori 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 Māori population. By the time of the systematic colonisation in the 1840s, the Māori 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 Māori 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 fewer than 60,000. This decline, combined with European immigration, made Māori 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 Māori population.

By the mid-1940s the Māori 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 1996 people who belonged to the Māori ethnic group numbered 523,374 and made up 14.5 percent of the population. Those with some Māori ancestry made up 16.0 percent of the population and numbered 579,714.

During the 1970s, international migration emerged for the first time as a significant factor in Māori population change. Large numbers of young Māori left New Zealand on a permanent or long-term basis in the 1980s. A population loss of 8,100 was recorded between 1981 and 1986. The main destinations of the migrants were Australia and the United Kingdom. Sizeable Māori communities now exist in Australia—particularly in Sydney. A result of this is that the Māori population is now susceptible to inward migration, both from return migration and the inward migration of Māori born overseas.

Fertility transition—Māori 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. Māori experienced one of the most rapid transitions chronicled anywhere in the world when the fertility rate dropped to a level two-fifths of that prior to 1962. The 10 years from 1962-71 saw the total fertility rate begin to decline, from 6 births per woman to 5 births per woman. The rate then began to fall even more sharply, and by 1977 was 3.0 births per woman. This level had only been reached by non-Māori women in 1972. In 1995 the Māori total fertility rate was 2.4 births per woman, 0.4 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 Māori. By 1945 around three-quarters lived in rural areas. However, within two decades the majority of the Māori population was 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 Māori. More recently a wider section of urban Māori have been involved. Nevertheless, by 1981, four-fifths of the Māori population was urban and urbanisation amongst Māori has remained at this level.

Urbanisation of Māori has been accompanied by a wider geographical distribution throughout the country. In the 1920s, 95 percent of Māori lived in the North Island. Countering the trend of the total New Zealand population. Māori 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 Māori from the non-Māori population structure. Throughout most of this century the Māori population has been concentrated in the younger age groups—a result of the consistently high fertility of Māori.

Between 1926 and 1976, the proportion of children in the Māori 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 Māori population was less than five years old. Over the 15 years from 1971-86 significant changes to the structure of the Māori 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-Māori. The number and proportion of children in the Māori population also changed over this period. Children made up 49 percent of the Māori 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 Māori 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 Māori population were in the working ages (15-59 years). By 1991, 58 percent of Māori were in the working ages—close to the non-Māori at 62 percent. Within the working age group, however, a higher proportion of Māori were in the 15-29 age group (30 percent of Māori compared with 24 percent of non-Māori).

Although the Māori population is moving towards a more elderly age structure it is still younger than the non-Māori population. In 1991 there were larger proportions of Māori than non-Māori in each age group under 34 years.

See also section 6.4: Māori 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 over 202,000 at the 1996 Census.

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. This migration 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 Māori 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 people a year (the average number over the last 90 years), will mean an extra 244,000 people, making a total population of 4.42 million by 2031.

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 people 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.

Delivering census papers to remote parts of Ruatahuna, southeast of Rotorua. February 1996.

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.

Source: Statistics New Zealand

0-14820000865000807000771000782000
15-6423060002451000268200027580002697000
65+416000458000543000717000940000
          Total population35420003774000403100042460004418000

Contributor

  • 5.1-5.5 Statistics New Zealand (including all tables).

Special articles

Department of Internal Affairs; Statistics New Zealand.

Further information

A full list of 1996 Census of Population and Dwellings publications to be released later this year 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.

Area Unit, Urban Area and Regional Council Maps (a set of 34 maps showing statistical area unit boundaries, Regional Council boundaries and urban area boundaries). Statistics New Zealand, 1996.

Demographic Trends. Statistics New Zealand (annual).

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).

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).

Population issues for New Zealand: New Zealand National Report on population. Prepared for the International Conference on Population and Development, Cairo, September 1994. Statistics New Zealand.

Trends and Patterns in New Zealand Fertility, 1912-1983. Department of Statistics, 1986.

Chapter 6. Social framework

Dr Pita Sharples with children of the Kohanga Reo Centre, Hoani Waititi Marae, 1985.

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.

Source: Statistics New Zealand

One family only73946467.977555765.94.9
One family plus other persons565835.2663875.617.3
Two or more families (with or without other persons)163921.5198181.720.9
Non-family households646235.9688205.86.5
One-person households20361918.723598620.015.9
Not elsewhere classified*79170.7110970.940.2
            Total1088598100.01177665100.08.2

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 house86234195064610.2
        Two houses or flats joined together1033381101036.5
        Three or more flats/houses joined together90984911790.2
        Flat/house attached to business or shop8190927913.3
        Bach, crib, hut (not in a work camp)5949687615.6
        Not specified72092385-66.9
            Total, permanent private dwellings107800511704688.6
    Temporary private dwellings*105967197-32.1
    Total private dwellings108860111776658.2
    Non-private dwellings714977318.1
            Total, occupied dwellings109574711853968.2
Unoccupied dwellings—
    Occupants temporarily away311283432810.3
    Empty habitable dwellings354544325122.0
    Holiday residences409504513210.2
            Total, unoccupied dwellings10753512271114.1
Dwellings under construction104409605-8.0

HOUSEHOLD SIZE
Persons per dwelling

TENURE OF PRIVATE DWELLINGS

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.

Table 6.3. NUMBER OF OCCUPANTS IN OCCUPIED DWELLINGS

Type1986 Census1991 Census
AggregateAverageAggregateAverage
Source: Statistics New Zealand
Permanent private dwellings—
    Separate house26827293.128280043.0
    Two houses or flats joined together2154182.12204342.0
    Three or more flats/houses joined together1651831.81622911.8
    Flat/house attached to business or shop224462.7242252.6
    Bach, crib, hut (not in a work camp)122852.1140732.0
    Not specified180512.565282.7
            Total, permanent private dwellings31161122.932555582.8
Temporary private dwellings228932.2133141.9
            Total, private dwellings31390052.932688722.8
Non-private dwellings16808123.516608021.5
            Total occupied dwellings33070833.034349492.9

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
121387619.624808521.116.0
233257430.637545331.912.9
318551717.020555717.510.8
419177217.619164616.3-0.1
51012809.3973808.3-3.9
6385473.5366483.1-4.9
7138481.3127711.1-7.8
8 or more111871.0101220.9-9.5
            Total1088601100.01177665100.08.2

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 mortgage44792141.645644739.41.9
Owned without mortgage34295431.939604234.215.5
Rented or leased25331723.526734523.15.5
Provided free316862.9398043.425.6
Not specified12723-18024-41.7
            Total1088601100.01177665100.08.2

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/company15131162.516324263.77.9
Housing Corporation5624723.26390324.913.6
Other government departments179167.4134375.2-25.0
Local authority167106.9155466.1-7.0
Landlord not specified11130-11217-0.8
            Total, rented or leased253317100.0267345100.05.5

Women of the Wellington Cook Islands community singing in a parade in Willis St, Pacific Islands Festival, March 1996.

Māori and Pacific Island households and dwellings

Composition of households. There was a total of 131,853 households in permanent private New Zealand Māori 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 Māori 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 Māori 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 Māori dwelling and a Pacific Island dwelling.

Table 6.7 shows the usual composition of New Zealand Māori 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 Māori households.

Table 6.7. USUAL COMPOSITION OF MĀORI AND PACIFIC ISLAND HOUSEHOLDS, 1991 CENSUS*

Household typeNew Zealand MāoriPacific Island
NumberPercentage of totalNumberPercentage of total

*Private dwellings where the ‘occupier’ or ‘spouse of occupier’ is a person of ‘New Zealand Māori ethnic group’ or ‘Pacific Island ethnic group’.

Source: Statistics New Zealand

One family only8975168.12617564.1
One family plus other persons1547411.7690316.9
Two families (with or without other persons)59494.531537.7
Three or more families (with or without other persons)4680.43360.8
Non-family households63754.814013.4
One-person households126189.621545.3
Not elsewhere classified12150.96931.7
            Total131853100.040812100.0

HOME OWNERSHIP
By ethnic composition

Types of dwellings. The 1991 Census distribution of Māori and Pacific Island households by dwelling type is given in table 6.8. New Zealand Māori 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.

Table 6.8. TYPES OF MĀORI AND PACIFIC ISLAND DWELLINGS, 1991 CENSUS*

TypeNew Zealand MāoriPacific Island
NumberPercentage of total†NumberPercentage of total†

*Private dwellings where the ‘occupier’ or ‘spouse of occupier’ is a person of ‘New Zealand Māori ethnic group’ or ‘Pacific Island ethnic group’.

Calculated in terms of specified cases only.

Source: Statistics New Zealand

Occupied permanent private dwellings—
Separate house10742181.93056475.1
Two houses or flats joined together106958.2443410.9
Three or more flats (houses) joined together95077.2513912.6
Flat/house attached to business or shop11340.93510.9
Bach, crib, hut (not in work camp)11820.9810.2
Not specified711...111...
            Total, permanent private dwellings13065399.14067799.7
Temporary private dwellings12000.91350.3
            Total, private dwellings131853100.040812100.0

Number of occupants. The distribution of New Zealand Māori 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 Māori 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 Māori families and the tendency for Pacific Island dwellings to house more than one family.

Table 6.9. NUMBER OF OCCUPANTS OF MĀORI AND PACIFIC ISLAND DWELLINGS, 1991 CENSUS*

Number of occupants†New Zealand MāoriPacific Island
DwellingsPercentage of totalDwellingsPercentage of total

*Private dwellings where the ‘occupier’ or ‘spouse of the occupier’ is a person of ‘New Zealand Māori 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

One1359910.323555.8
Two3071723.3637215.6
Three2764821.0717917.6
Four2627419.9784819.2
Five1714213.0652816.0
Six87996.7447011.0
Seven40173.026376.5
Eight or more36602.834208.4
            Total131853100.040812100.0

Table 6.1. TENURE OF MĀORI AND PACIFIC ISLAND DWELLINGS, 1991 CENSUS*

TenureNew Zealand MāoriPacific Island
DwellingsPercentage†DwellingsPercentage†

*Private dwellings where the ‘occupier’ or ‘spouse of occupier’ is a person of ‘New Zealand Māori ethnic group’ or ‘Pacific Island ethnic group’.

Calculated in terms of specified cases only.

Source: Statistics New Zealand

Owned with a mortgage5246140.41563038.9
Owned without a mortgage1929614.932678.1
Rented or leased5237440.32042450.9
Provided free57454.48312.1
Not specified1977...660...
            Total131853100.040812100.0

Table 6.11. CATEGORY OF LANDLORD FOR RENTED OR LEASED PRIVATE DWELLINGS, 1991 CENSUS*

Category of landlordNew Zealand MāoriPacific Island
DwellingsPercentage†DwellingsPercentage†

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

Calculated in terms of specified cases only.

Source: Statistics New Zealand

Rented or leased from—
Private person/company2488249.8714636.8
Housing Corporation2010940.21125058.0
Other government departments33036.65883.0
Local authority16773.44112.1
Landlord not specified2406...1029...
            Total, rented or leased52374100.020424100.0

Tenure. Patterns of tenure and category of landlord shown in 1991 Census data reflect the household income and demographic structures of Māori 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 Māori, 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 Māori 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

014259313.414323212.40.4
152504849.453822746.72.5
230241528.435681431.018.0
3695256.5845377.321.6
4173341.6214111.923.5
5 or more61770.680970.731.1
Not specified25509...25347...-0.6
            Total1088598100.01177665100.08.2

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. Itemised expenditure statistics from the survey are used as the weighting base of the Consumers Price Index when it is revised every five years (see section 26.1: Consumer Prices). The expenditure statistics are also used in non-revision years to check how up-to-date selected parts of the index's weighting base are.

In the 1995-96 year, 2,887 private households (comprising 7,855 people) participated in the survey, each household containing an average of 2.74 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 under-reporting 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, 1995-96*

Annual incomeApproximate equivalent weekly incomeNumber of householdsAverage weekly income per household

*As estimated by Household Economic Survey.

Source: Statistics New Zealand

$$(000)$
Under 13,300Under 255114.0162.50
13,300-18,799255 to 361116.5311.50
18,800-22,899361 to 439111.6396.80
22,900-28,799439 to 552116.7491.50
28,800-36,199552 to 694114.9626.10
36,200-44,199694 to 848115.2768.30
44,200-53,299848 to 1,022114.2929.70
53,300-67,3991,022 to 1,293113.91,145.70
67,400-87,0991,293 to 1,670114.41,451.60
87, 100 or over1,670 or over115.12,588.90
            Total...1,146.6887.60

Table 6.14. AVERAGE WEEKLY EXPENDITURE FOR SELECTED FAMILY TYPES, 1995-96

Expenditure groupYoung one person householdOlder one person householdYoung couple with no childrenOlder couple with no childrenCouple with one childCouple with two children
Source: Statistics New Zealand
$
Food60.6045.80111.8096.60135.40156.30
Housing121.8047.30292.3095.10163.90201.20
Household operations63.4054.60103.3092.70115.00117.20
Apparel14.908.4030.7025.3040.1043.20
Transport83.4049.50138.40111.00142.90166.70
Other goods54.6030.4090.7074.40109.20117.20
Other services57.9048.0099.60110.40152.10156.60
            Total expenditure456.90284.00866.80605.50858.70958.30
Expenditure groupCouple with three or more childrenOne parent with childrenFamily with othersNon-family householdsAll family types
$
Food168.0086.60140.30140.50110.40
Housing102.10139.30-5.50164.30126.80
Household operations114.6070.90101.2098.3092.60
Apparel48.1016.4031.9045.5029.10
Transport143.6071.90135.90173.30116.20
Other goods105.2048.8089.50140.8081.30
Other services159.0065.20101.30139.50109.20
            Total expenditure840.50499.00594.50902.30665.70

Table 6.15. AVERAGE WEEKLY HOUSEHOLD EXPENDITURE, 1995-96

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

*Averages have been rounded to the nearest 5 cents.

Source: Statistics New Zealand

 $percent
Food—
    Fruit7.601.1
    Vegetables9.301.4
    Meat11.701.8
    Poultry3.400.5
    Fish2.000.3
    Farm products, fats, oils12.701.9
    Cereals, cereal products14.802.2
    Sweet products, spreads, beverages13.002.0
    Other foodstuffs11.001.6
    Food consumed in eating places, takeaway foods25.003.8
            Total, food110.4016.6
Housing—
    Rent35.205.3
    Net capital outlay and related expenses-34.20-5.1
    Mortgage payments63.609.6
    Payments to local authorities14.702.2
    Property maintenance goods15.302.3
    Property maintenance services31.804.8
    Other housing expenses0.300.0
            Total, housing126.8019.0
Household operation—
    Domestic fuel and power21.503.2
    Home appliances19.502.9
    Household equipment and utensils2.900.4
    Furniture10.201.5
    Furnishings2.600.4
    Floor coverings2.500.4
    Household textiles4.600.7
    Household supplies6.801.0
    Household services22.003.30
            Total, household operation92.6013.9
Apparel—
    Men's clothing4.700.7
    Women's clothing9.401.4
    Children's clothing2.400.4
    Other clothing5.300.8
    Clothing supplies and services1.400.2
    Men's footwear1.100.2
    Women's footwear1.700.2
    Children's footwear1.000.2
    Other footwear2.000.3
    Footwear supplies and services0.200.0
            Total, apparel29.104.4
Transportation
    Public transport within New Zealand6.701.0
    Overseas travel24.603.7
    Road vehicles42.006.3
    Vehicle ownership expenses40.106.0
    Other private transport costs2.900.4
            Total, transportation116.2017.5
Other goods
    Tobacco products7.101.1
    Alcohol17.602.6
    Medical goods4.800.7
    Toiletries and cosmetics5.000.8
    Personal goods6.200.9
    Pets, racehorses and livestock5.600.8
    Publications, stationery and office-type equipment13.802.1
    Leisure and recreational goods11.501.7
    Recreational vehicles5.900.9
    Other goods3.900.6
            Total, other goods81.3012.21
Other services
    Health services14.602.2
    Personal services4.300.6
    Educational and tuitional services10.801.6
    Accommodation services4.100.6
    Financial, insurance and legal services19.903.0
    Vocational services1.500.2
    Leisure services14.602.2
    Other services nec4.500.7
    Other outgoings12.101.8
    Contributions to savings22.703.4
            Total, other services109.2016.4
            Total, net expenditure665.70100.0
            Number of households surveyed2887 

Table 6.16. HOUSEHOLD AMENITIES

Amenity in dwellingPercentage of all surveyed households*
1993-941994-951995-96

*Household Economic Survey.

Source: Statistics New Zealand

Electric range or wall oven94.893.995.0
Gas, coal or oil-fired range9.510.210.5
Microwave oven69.372.374.6
Telephone93.995.696.0
Cellular phones  13.2
Clothes-washing machine96.997.197.6
Clothes dryer60.862.263.6
Separate refrigerator31.829.330.4
Combination refrigerator/freezer76.579.079.0
Separate deep-freeze unit54.354.856.1
Dishwashing machine25.328.830.3
Colour television (owned)94.795.395.8
Television (hired or rented)3.02.72.1
No television (owned, hired or rented)3.52.93.3
Subscriber TV decoder6.09.213.7
Video recorder (owned)72.274.677.9
Video recorder (hired or rented)0.40.40.2
Home computer (mains operated, with keyboard)18.621.724.8
Portable electric heater79.478.579.6
Electric night store heater fixed in place8.19.710.5
Other electric heater fixed in place28.030.430.0
Portable gas heater17.120.124.1
Gas heater fixed in place9.810.710.8
Open fire26.525.124.0
Slow-combustion fire33.334.233.9
Portable kerosene heater2.62.22.2
Wet-back fire of any kind18.418.819.5
Central heating of any kind5.15.14.8

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.

At the Eastbourne Playcentre, April 1943.

Table 6.17. INDICATORS OF LIVING STANDARDS

ItemUnitYearNew ZealandAustraliaJapanSwedenUnited KingdomUnited States

*1993

1992

1991

§1990

Source: OECD in Figures 1996

Areasq km (000)1997268.77,686.8377.8450.0244.89,372.6
Populationmillion19943.517.8125.08.858.4260.7
Densitypersons per sq. km199413.12.3330.819.5238.527.8
Vital statistics
    Infant mortality rateper 1000 live births19947.3*5.94.24.8*6.28.5†
    Life expectancy at birthmale199473.1†75.076.676.179.272.3†
 female199478.9†80.983.081.479.579.1†
National income
Gross Domestic Product$US billion at current prices and exchange rates199559.2347.94,960.7228.51,099.76,981.7
Average annual volume changepercentage1994-952.73.30.33.52.73.3
GDP per capita$US per person at current prices and exchange rates199414,51318,07236,73222,38917,46825,512
Contribution by sector
    Agriculturepercentage of GDP19947.3§3.1*2.1*2.0*1.7*1.7*
    Industrypercentage of GDP199425.9§27.740.2*27.0*27.7*26.1*
    Servicespercentage of GDP199466.7§69.1*57.6*71.0*70.7*72.1*
Employment by sector
    Agriculturepercentage of civilian employment199410.45.3*5.83.42.2*2.9
    Industrypercentage of civilian employment199425.023.7*34.025.026.2*24.0
    Servicespercentage of civilian employment199464.671.0*60.271.671.6*73.1
Energy
    Total final energy consumptiontonnes of oil equivalent (million)199411.564.2336.635.3157.71,375.2
    Total productiontonnes of oil equivalent (million)199412.8174.089.331.3241.31,651.3
External commodities trade
    Imports (cif)$US billion at current prices and exchange rates199415.064.8336.863.8278.38126.9
    Exports (fob)$US billion at current prices and exchange rates199416.061.1434.972.2267.6706.4
Social and natural environment
    Doctorsper 1000 of mean population19942.12.2‡1.83.01.5*2.5*
    Expenditure on health (total)percentage of GDP19947.7*8.57.3*7.76.914.2
    Expenditure on public educationpercentage of GDP19946.5*5.94.96.94.16.8
    Expenditure on pollution controlpercent of government R&D19942.63.00.53.61.40.7
    Road accident fatalitiesper 100,000 of population19941611107716
Consumers Pricespercentage changeDec 1994-952.85.1-0.32.23.22.5
Long-term interest ratepercentDec 19957.08.23.28.67.86.1
Comparative price level$US to buy same basket of goods and services costing $100 in US199599101188142102100

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

1988234857.0123.34
1989227336.8822.12
1990233416.9922.12
1991230656.7821.23
1992220186.4419.78
1993220566.3319.33
1994218796.2218.66
1995 6.0317.7
1996 5.917.1

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.

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
15-19142692396245139541749145002
20-2412114611571999722281021857135978
25-3411036712540357331328478813993741266814
35-442895015072321987169591722610923276240213
45-541177811291719929101881397722472466173505
55-64931293771146465427899454992487140136
65-746357672991099224154434100712037103605
75 and over3213290585967765131115174134756832
            Total43381859114179374500555409934641189601262085
Females
15-1913706113741512918511341139986
20-241036142612719529465371651536135117
25-348064014943910167200671280712513522277890
35-441973415130523121195662370935372943243915
45-5477971102231739496691722682472487173046
55-646051843031140943809570208742334138915
65-74650155020879018365157430352040122379
75 and over7485182853321594197463816147696948
            Total368880596067744065918771001140976176791328196
            Total8027011187208153780109245125100175614366392590287

Age-specific marriage rates have, in turn, been affected by the increasing number of people in each age group living in stable ‘de facto’ relationships. General improvements in life expectancy and earlier increases in divorce rates have had a continuing impact on the numbers in the ‘widowed’, ‘divorced’ and ‘remarried’ categories at all ages.

The outcome of these changes during the 1986-91 intercensal period is shown in table 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.

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.

MARITAL STATUS: Males
Population over 20 years of age

MARITAL STATUS: Females
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 married39687933.343381834.9369399.3
Married†60915051.259114147.6-18009-3.0
Remarried694115.8793746.4996314.4
Separated‡414273.5500554.0862820.8
Divorced420543.5540994.31204528.6
Widowed318032.7346412.828388.9
Not specified19668...18960...-708-3.6
            Total1210389100.01262085100.0516964.3
Females
Never married32463326.236888028.14424713.6
Married†61370149.559606745.5-17634-2.9
Remarried661265.3744065.7828012.5
Separated‡481323.9591874.51105523.0
Divorced547984.4710015.41620330.0
Widowed13251610.714097610.884606.4
Not specified18006...17679...-327-1.8
            Total1257912100.01328196100.0702845.6

Table 6.21. DE FACTO RELATIONSHIPS*

Age group (years)1986 Census*1991 Census*Intercensal increase or decrease
NumberPercentage distributionNumberPercentage distributionNumber Percentage

*Usually resident New Zealand population.

Source: Statistics New Zealand

Males
15-1918993.325623.266334.9
20-241312522.81626020.1313523.9
25-342230538.83273940.41043446.8
35-441157120.11695920.9538846.6
45-5453889.480619.9267349.6
55-6424454.232674.082233.6
65-746421.19991.235755.6
75 and over1710.32670.39656.1
            Total57549100.081111100.02356240.9
Females
15-19579610.168618.5106518.4
20-241677329.22150726.6473428.2
25-341982134.52951736.6969648.9
35-44955216.61437917.8482750.5
45-5438016.660547.5225359.3
55-6412302.116682.143835.6
65-744020.75850.718345.5
75 and over1080.21800.27266.7
            Total57480100.080745100.02326540.5

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.

Age at marriage

In 1994, 43,758 people married (21,879 marriages), a decrease of 354 on 1993.

Table 6.22. AGES OF PERSONS MARRIED, 1994

Age of bridegroom, in yearsAge of bride, in yearsTotal bridegrooms
Under 2020-2425-2930-3435-3940-4445 and over
Source: Statistics New Zealand
Under 2094711243--184
20-24407296071412730644248
25-291482638314270414836106826
30-34317441869132233589424432
35-3913170599717462160642185
40-444681773053562661491325
45 and over63910419132051015092679
            Total brides70366906617337016541067177821879

MARRIAGE
Annual rates per 1,000 mean population

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.

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

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.

MEDIAN AGE* AT FIRST MARRIAGE

Wedding of Nellie Woodcock and William Moffat on Hoteo River, about 1910.

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.

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.

In the year ending 30 June 1996, Relationship Services provided 51,200 counselling hours. Of these, 29,000 were provided to self-referred clients.

Te Korowai Aroha Aotearoa. Established in 1990, Te Korowai Aroha Aotearoa is a professional Māori organisation providing education and training to hapu and iwi agencies, and other Māori 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.

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 presented199119921993199419951996
Source: Statistics New Zealand
Applications filed for dissolution of marriage9152911491939213957410009
Evidence of irreconcilable breakdown—
    Separation order447360322352339459
    Written separation order371137873650360932973421
    Verbal separation order357535193837386143174979
    Lived apart, no agreement or order141514481384139116211148
            Total, irreconcilable breakdown9152911491939213957410007
Other dissolution orders-----2
            Total, dissolution orders9152911491939213957410009

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 52537434422299561171237
5-9558068693752041331822624
10-1452812532261127911021977
15-191026533361337241311368
20 and over26016576081616125312803
            Total49443022689115256334646310009
Wives (all petitions and applications)
Under 5975023121367054661237
5-9241118563427212477912624
10-1428493837418410247481977
15-19352651215773818171368
20 and over1012141825956279222803
            Total19864694179472536120524410009

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 came into force in 1996 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.

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.

MARRIAGE AND DIVORCE

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: Komihana Tikanga Tangata

The Human Rights Commission is an independent statutory body. Under the Human Rights Act 1993 the commission is given a wide range of functions and powers, the primary one of which is to protect human rights in New Zealand in accordance with United Nations human rights covenants and conventions.

The best known function of the commission is the investigation and conciliation of complaints of unlawful discrimination in public life, which includes the areas of employment, access to public places, vehicles and facilities, provision of goods and services, accommodation and education. The grounds of unlawful discrimination under the act are 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 act also covers sexual harassment, racial harassment and racial disharmony. If complaints are not resolved within the private and non-adversarial investigation and conciliation process they can be taken on to the Complaints Review Tribunal.

Other functions of the commission include commenting on legislation before Parliament which has human rights implications and issuing guidelines to assist in compliance with the act. To date the commission has produced guidelines on advertising, pre-employment practices and superannuation, with a further two on insurance and credit institutions currently being completed. The commission is also involved in a number of education programmes aimed at a wide diversity of groups. These issues are largely implemented by the commission's newly formed Information and Promotion team which is staffed by legal and social research officers, education and publications officers, a librarian, information officer, enquiries officers and a sexual harassment prevention training consultant. The commission receives approximately 10,000 personal, telephone and written enquiries from the public each year.

The commission's Te Tari Kaupapa Māori deals specifically with human rights issues relating to Māori. The Te Tari team provides translation services, iwi education, research and policy advice. Te Tari's bicultural focus enables the commission to respond better to the human rights needs of Māori and to develop culturally-appropriate services for tangata whenua.

Sections 5(1)(i), (j) and (k) of the act require the commission to report to the government, by 31 December 1998, regarding legislation, policy and administrative practice which is inconsistent with the act. The commission, in close consultation with government officials, has begun this exercise which has been entitled Consistency 2000.

The commission has three offices in Auckland, Wellington and Christchurch. Auckland is the head office as the majority of the complaints of unlawful discrimination the commission receives arise within the greater Auckland area. The office in Wellington is the base for the Consistency 2000 project while the Christchurch office serves as the centre for the commission's activities in the South Island.

Human Rights Commissioners, of whom there are currently six, are appointed by the Governor-General on the recommendation of the Minister of Justice for terms of up to five years. Under the act, Commissioners are appointed with regard not only to their personal attributes but also to their knowledge or experience of matters likely to come before the commission. The Race Relations Conciliator and the Privacy Commissioner also serve as Human Rights Commissioners. One Commissioner, the Proceedings Commissioner, has special functions and responsibilities under the Human Rights Act for the institution and conduct of legal proceedings under the act.

Enquiries—9,622 were received in the year ended 30 June 1996, compared with 8,084 in 1995. The largest number concerned workplace disputes (961), age (938), disability (774), sexual harassment (758) and sex discrimination (519).

Complaints—241 formal complaints were opened in the year ended 30 June 1996, compared with 273 in 1995. Another 40 complaints could not be actioned because of staff reduction. Largest categories of complaints were sexual harassment (55), age (54) and disability (50), while the major area for complaint was employment (56 percent).

The commission received a government grant of $4.24 million for the 1995-96 year, about the same as the previous year ($4.31 million).

Office of the Race Relations Conciliator: Te Tari Whakawhanaunga-a-iwi

The office of Race Relations Conciliator is established by the Human Rights Act 1993. The act lays down a list of prohibited grounds of discrimination which include colour, race, ethnic or national origin (which includes nationality or citizenship).

The Race Relations Conciliator has responsibility for conciliating in complaints of racial discrimination, harassment and excitement of racial disharmony, along with the promotion of positive race relations in New Zealand.

The Human Rights Act gives the conciliator (who is, ex officio, a Human Rights Commissioner) a broad range of responsibilities. These include education and publicity to promote a positive climate in race relations and making public statements in relation to any matter affecting race relations. The conciliator also has to promote an understanding of, and compliance with, the Human Rights Act.

The conciliator also receives representations from members of the public on any matter affecting race relations, and consults and co-operates with other people and bodies concerned with the protection of race relations.

The act entitles the conciliator to inquire generally into any matter, including any enactment or law, or any practice, or any procedure, whether governmental or non-governmental if it appears to the conciliator that race relations are, or may be, infringed.

The conciliator is also empowered to report to the Prime Minister from time to time on any matter affecting race relations, including the desirability of legislative, administrative, or other action to give better protection to race relations. This includes advice on the desirability of New Zealand becoming bound by any international instrument on race relations and the implications of any proposed legislation or policy of the government that the conciliator considers may affect race relations.

The conciliator has to examine all acts and regulations that are in force in New Zealand, and any policy or administrative practice of the government, determine whether any of these are in conflict with the race provisions of the act or infringe on the spirit or intention of the act and report the results to the Minister of Justice before 31 December 1998.

When the conciliator receives a complaint of racial discrimination, racial harassment or exciting racial disharmony, the complaint is investigated to establish what happened. If there appears to be a breach of the act all attempts are made to conciliate between the complainant and respondent and reach a settlement agreed to by both parties. If that is not possible the Complaints Division, which includes the conciliator and is established by the Human Rights Act, considers the case. The division can attempt further conciliation or recommend outcomes such as compensation, an apology or an agreement not to repeat the action complained of. If necessary the complaint can be referred on to the Complaints Review Tribunal which has the ability to have its judgements enforced. The complainant or respondent can also apply to the tribunal for any decision to be reviewed.

Education: As part of its commitment to the long term improvement of race relations the Race Relations Office provides a range of educational services, from supplying printed educational material, to making presentations to interested groups and providing advice on the curriculum for New Zealand schools.

There is strong anecdotal evidence to suggest that there continues to be a need for better education about New Zealand's history. To improve understanding of New Zealand history, and make a long term investment in improving race relations, the office, with funding from the Ministry of Education, prepared material (called ‘In Tune’) for inclusion in the social studies curriculum for 3rd and 4th form pupils.

Equal Employment Opportunities (EEO)

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 226 members as at September 1996. 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 promotes projects on EEO in New Zealand. It is based in Auckland. The board of trustees has public and private sector representatives. The EEO trust liaises closely with private and public sector organisations with an interest in EEO, individuals and groups who express interest, EEO-designated target groups, employers‘ associations, and complementary organisations in New Zealand and overseas.

The trust has an EEO Referral Database with over 1,500 listings of EEO resources, such as books, booklets, videos, pamphlets and posters. It also contains over 200 relevant consultants, trainers and training programmes. Clients request information from this database. The government's EEO Contestable Fund supported the development of the database and the trust's EEO Self-Assessment Kit which is used by a range of workplaces to identify their EEO strengths and weaknesses. The trust also has a thrice-yearly newsletter with practical information for employers.

The trust has developed a Work & Family Network stemming from the Work and Family Directions Project. The network has over 100 members who for an annual fee of $100 receive a twice yearly mini-magazine, events, networking opportunities and access to the trust's database listing initiatives by network members in their organisations.

Women's issues

Women comprise 51 percent of New Zealand's population. While men and women have equal status under the law, women have failed to achieve full equality with men in terms of economic and social status, freedom from discrimination and access to decision-making processes.

Women continue to earn 80-81 percent of men's average ordinary time 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 issues which affect women. The ministry's vision Making a difference for women in Aotearoa-New Zealand is directed at achieving tangible and positive outcomes for women. Advice from the ministry aims to significantly improve women's lives; and addresses policy areas where there is a significant disparity between women and men which disadvantages women; and where there is a significant disparity between Māori women and non-Māori women which disadvantages Māori women.

The ministry is also working to apply a gender analysis framework across the public and private sectors, and develop strategic relationships and alliances to increase understanding of gender issues.

The main focus of the ministry's policy work in 1996 was women and the labour market; women's security; women's access to resources; measurement of women's contribution to the economy and society through unpaid work; and improved data and statistics about all aspects of women's lives.

Significant new policy initiatives by the ministry aimed at improving Māori women's status include increasing the participation of Māori women in decision-making roles; advising the Crown on the Mana Wahine claim; addressing the recommendations relevant to Māori women and girls in the Beijing Platform for Action; and advising on the policy implications of the statistical profile of Māori women.

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, has established 28 Youth Councils with 480 student representatives, 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.

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
Number PercentageNumberPercentage

*Usually resident New Zealand population.

Source: Statistics New Zealand

Anglican"791,898"24.7"732,048"22.1-7.6
Presbyterian"587,676"18.3"540,675"16.3-8.0
Catholic"496,389"15.5"498,612"15.00.4
Methodist"153,249"4.8"138,705"4.2-9.5
Christian (nod)"45,354"1.4"78,195"2.472.4
Baptist"68,016"2.1"70,155"2.13.1
Mormon (Latter Day Saints)"37,143"1.2"48,009"1.429.3
Ratana"39,729"1.2"47,595"1.419.8
Brethren"19,755"0.6"20,337"0.62.9
Salvation Army"16,821"0.5"19,992"0.618.9
Jehovah's Witness"16,377"0.5"19,182"0.617.1
Pentecostal"15,714"0.5"18,765"0.619.4
Hindu"8,148"0.3"17,661"0.5116.8
Assemblies of God"14,922"0.5"17,226"0.515.4
Seventh Day Adventist"12,048"0.4"13,005"0.47.9
Buddhist"6,516"0.2"12,765"0.495.9
Other specified"96,192"3.0"106,392"3.210.6
No religion"533,790"16.7"666,609"20.124.9
Object"244,863"7.6"251,709"7.62.8
Not specified"58,686"-"56,289"--4.1
            Total"3,263,286"100.0"3,373,926"100.03.4

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 Māori as one of those groups, while 87.7 percent reported a European ethnic group.

Implementing the Beijing Platform for Action

The Platform for Action is the document negotiated at the Fourth United Nations World Conference on Women, Beijing, 1995. The Ministry of Women's Affairs is working with other agencies to develop a Platform for Action implementation strategy, and report on work in progress and policy options on the following areas in 1997:

  • mainstreaming a gender perspective in the development of all government policies and programmes

  • information on women's unpaid work and its application to policy development

  • the gender pay gap

  • the need for more and better data collection about all aspects of women's lives

  • the recommendations which apply specifically to Māori women and girls as indigenous people

  • enhancing women's role in decision-making, including through a Government commitment to ‘gender-balance’ on all government-appointed committees, boards and other relevant official bodies.

The NGO Co-ordinating Committee, organised a highly successful series of consultations with women on the Platform for Action. The Post Beijing Display and Workshop Consultations ran from February to July 1996 and went to 21 centres throughout New Zealand.

A report of these consultations was presented at the centenary conference of the National Council of Women, September 1996. The issues raised in the NGO report will be taken into account during the development of the government's implementation strategy.

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 6.27. 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*"2,651,595"82.2"2,658,738"79.50.3
    New Zealand Māori"295,317"9.2"323,493"9.79.5
    Samoan"50,199"1.6"68,565"2.036.6
    Cook Island Māori"23,973"0.7"26,925"0.812.3
    Tongan"9,225"0.3"18,264"0.598.0
    Niuean"8,472"0.3"9,429"0.311.3
    Tokolauan"2,316"0.1"2,802"0.121.0
    Fijian"1,875"0.1"2,760"0.147.2
Other Pacific Island group813"1,413"73.8
            Total, single Pacific Island group"96,873"3.0"130,158"3.934.4
Chinese"19,566"0.6"37,689"1.192.6
Indian"12,126"0.4"26,979"0.8122.5
Other single ethnic groups†"12,078"0.4"25,926"0.8114.7
            Total, single ethnic groups"3,087,552"95.7"3,202,980"95.73.7
Two or more combinations—
    European–with New Zealand Māori"94,896"2.9"93,987"2.8-1.0
    European and New Zealand Māori–with any one of Pacific Island group"3,774"0.1"4,614"0.122.3
            –Chinese, Indian, other"2,058"0.1"1,656"-19.5
    European—with any one or two of Pacific Island group"17,043"0.5"16,602"0.5-2.6
    European—and any one of Pacific Island group with any one of Chinese, Indian, other873624-28.5
    European—with any one or two of Chinese, Indian, other"6,852"0.2"7,836"0.214.4
    NZ Māori—with any one or two of Pacific Island group"6,777"0.2"9,075"0.333.9
    NZ Māori—and any one of Pacific Island group–with any one of Chinese, Indian, other37244720.2
    NZ Māori—with any one or two of Chinese, Indian, other"1,581""1,575"–0.4
    Any two or three of Pacific Island group"2,901"0.13.8730.133.5
    Any one or two of Pacific Island group–with any one or two of Chinese, Indian, other"1,677"0.1"1,677"0.1
    Any two or three of Chinese, Indian, other357867142.9
            Total, two or more combinations"139,167"4.3"142,836"4.32.6
Not specified"36,564""28,113"-23.1
            Total"3,263,283"100.0"3,373,929"100.03.4

Before the 1996 election, about 3,000 members of the Auckland Asian community met to hear representatives from political parties speak, particularly about immigration, at a seminar organised by the Taiwanese Hwa Hsia Society.

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 Māori‡Pacific Island§Chinese†Indian†Other◊

*Usually resident New Zealand population.

Persons of single ethnic group.

Persons who specified “New Zealand Māori" 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 Māori”)

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

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
35–1414.910.812.418.416.916.3
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

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 Zealand"2,759,178"85.1"2,812,032"84.21.9
Australia"47,334"1.5"48,738"1.53.0
Pacific Islands"72,810"2.2"98,037"2.934.6
British Isles"256,762"7.9"239,157"7.2-6.5
Netherlands"24,489"0.8"24,276"0.7-0.9
Germany"4,479"0.1"5,394"0.220.4
United States of America"7,362"0.2"8,451"0.314.8
Canada"6,414"0.2"6,699"0.24.4
India"6,570"0.2"9,459"0.344.0
China"4,944"0.2"9,222"0.386.5
Other Asia"22,320"0.7"46,038"1.4106.3
South Africa"4,320"0.1"5,655"0.230.9
Other countries"25,749"0.8"26,211"0.81.8
Not specified"21,555""34,557"60.3
            Total"3,263,383"100.0"3,373,926"100.03.4

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 (ie, birth outside New Zealand); or by grant of citizenship.

BIRTHPLACES
Country of birth of population

Puni Raea presenting a petition on behalf of the Samoan community to Labour MP Frank O'Flynn on the steps of Parliament, September 1982. The petition opposed the Citizenship (Western Samoa) Bill which altered the citizenship status of many Western Samoan people following a successful appeal to the Privy Council on an “overstaying" case.

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:

  • Was in New Zealand at any time on 14 September 1982; or

  • 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.

Persons aged 14 years and over who are approved for the grant of citizenship by the Minister of Internal Affairs, are required to swear allegiance to Queen Elizabeth II, as Head of State, at a private or public ceremony to make the grant effective.

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 14,282 people were granted citizenship for the year ended 30 June 1996.

CITIZENSHIP Number of applications granted

Immigration

People who wish to emigrate to New Zealand are usually considered by the New Zealand Immigration Service under one of four main categories of government residence policy: General Skills (often called the “points system”), Business Investor, Family and Humanitarian. The General Skills and Business Investor categories were introduced in 1995, replacing the previous General and Business Investment categories which had been open since 1991, and which had replaced the Occupational Priority List or OPL system under which it was possible to migrate to New Zealand providing there was a job offer which no suitably skilled New Zealanders could fill.

The 1995 changes adjusted some of the requirements for skilled migrants in order to encourage a broader mix of skills and attract people with a genuine commitment to New Zealand. The changes also included a new system for managing the number of residence applications. Under the old General category, applicants who met the required number of points, as well as character and health requirements which all migrants must normally meet, automatically gained residence—regardless of the number of applicants. This “autopass" system was replaced by a “pass mark” system under which the number of points General Skills and Business Investor migrants need is calculated weekly in order to meet the Government's target for residence approvals. The target for the year ending 30 June 1997 is a total of 35,000 people under all categories. The number of people approved in the 1995-96 year was about 54,000; in 1994-95 about 51,000; in 1993-94 about 34,000; and in 1992-93 about 30,000.

As well as the four main residence categories, up to 1,100 Western Samoan citizens may be granted residence in New Zealand each year under a quota system for those with a job offer in New Zealand. There is also a special quota for up to 800 people each year to be granted residence under the Refugee Quota Programme. Refugees resettled in New Zealand under this programme are nominated by the United Nations High Commissioner for Refugees.

The four main categories are:

General Skills—The General Skills category is also known as the “points system” because a minimum number of points is needed to gain residence. The number of points required cannot fall below 25, and was 25 at the time of going to print. Minimum requirements include a three- year base qualification, two years‘ relevant work experience, age 18 to 55, and English language skills. The General Skills category replaced the similar General Category and General Investment sub-category in 1995. The changes included extending English language skill requirements to non-principal applicants aged 16 years and over, and the introduction of a new English language test (the International English Language Testing System—or IELTS—level 5 of the general module); registration requirements for about 25 occupations where registration with the statutory authority governing professional standards is legally required in New Zealand—for example, doctors must be registered by the New Zealand Medical Council to practise; and more weight placed on a job offer in New Zealand.

Family—Under the Family category people who have a relationship with a New Zealand citizen or resident, such as being married or in a de facto or same-sex relationship may qualify for residence. Marriage does not guarantee residence—like the other partnership sub-categories, the relationship must be genuine and stable. The category also enables New Zealand citizens and residents to be joined in New Zealand by their parents, children and adult siblings in some circumstances.

Humanitarian—This category allows people whose circumstances are exceptionally difficult to gain New Zealand residence if this is the only solution to their situation and granting residence would not be contrary to the public interest. Applicants must have at least one close relative who is a New Zealand citizen or resident and who supports their application. Applicants must show either they or the New Zealand relative is suffering from serious physical harm and/or serious emotional harm.

Business Investor—Like the General Skills category, applicants must score a minimum number of points to gain residence. The number of points cannot fall below 12, and was 12 at the time of going to print. Points may be awarded for business experience, funds the applicant can invest in New Zealand, qualifications, age and settlement factors. Minimum requirements include the transfer of at least $750,000 to New Zealand for investment for at least two years, two years‘ business experience and English language skills. Funds must have been earned by applicants through their business skills.

The changes in 1995 also included new requirements for Returning Residents‘ Visas—required by migrants for entry back into New Zealand after an overseas trip. Returning Residents‘ Visas are linked with New Zealand residence tax status, as determined by the Inland Revenue Service, and length of time spent in New Zealand. People travelling on a New Zealand passport do not require a Returning Resident's Visa.)

Who is migrating to New Zealand? Of the almost 43,000 people approved for residence in the 1996 calendar year, about 34 percent were from North Asia, about 22 percent from Europe, 13 percent Middle East and Africa, 11 percent South Asia, 10 percent Pacific, 6 percent South East Asia, 3 percent Americas and 1 percent other regions. This compares with a total of about 56,000 people in 1995, of whom about 44 percent were from North Asia, 19 percent Europe, 11 percent South Asia, 11 percent the Middle East and Africa, 7 percent Pacific, 5 percent South East Asia, 2 percent Americas and 1 percent other regions.

In 1996, 38 percent of people approved for residence were under the now-closed General category, 23 percent under the General Skills category, 25 percent under the Family category, 4 percent under the now-closed Business Investment category, 3 percent under the Western Samoa Quota, 2 percent under the Humanitarian category and the remainder under other categories. This compares with 71 percent under the General category in 1995, 16 percent under the Family category, 3 percent under the Business Investment category, 2 percent under the Western Samoa Quota, 2 percent under the Humanitarian category and the remainder under other categories.

Temporary entry. All travellers, including New Zealand citizens, arriving in New Zealand must produce a valid passport or another form of recognised travel document. Except for New Zealand citizens (which includes people born in the Cook Islands, Niue and Tokelau) and a small number of other people specified under the Immigration Act 1987, everyone entering New Zealand is required to obtain a permit to be in New Zealand.

Visitors. People from about 30 countries do not need to apply for a visa before they travel if their visit is as a tourist, to see friends or relatives, study for less than three months, play sport or perform in cultural events without pay, or a short business trip. Visitor permits are generally granted for an initial period of three months and may be extended up to a further six months. Visitors from countries which do not have a visa waiver agreement with New Zealand need to apply for a visitor visa prior to travelling to New Zealand. All visitors must be able to show they have sufficient funds to support themselves during their stay in New Zealand and have an outward ticket.

Students. People wishing to study in New Zealand need to apply for a student visa before travelling. Requirements include an offer of a place at a recognised educational institution, evidence course fees have been paid or that the student is exempt (for example on a scholarship), a guarantee of accommodation, be able to support themselves, have a return ticket home (or funds to buy one), attend classes and make satisfactory progress. A student permit does not allow the holder to work in New Zealand, though overseas students may be granted a variation of their student permit conditions for casual summer holiday work.

Work. The objective of New Zealand's work permit policy is to protect employment opportunities for New Zealand citizens and residents while still allowing New Zealand employers to recruit temporary workers from overseas to meet particular or seasonal skill needs which cannot be met from within New Zealand. Anyone who is not a New Zealand or Australian citizen or resident who wishes to work in New Zealand must have a work permit. “Work" is defined as an activity for which the person receives “gain or reward” which can include not only money, but also accommodation and food, for example. A work permit is still required if payment is made by an overseas employer.

Working holidays. Working holiday permits may be issued each year to several thousand young people (18–30 years). They allow holders to undertake casual work such as fruit picking, and for no more than three months in one job. Schemes are currently available to young people from Japan, the United Kingdom, Canada, the Republic of Ireland and Malaysia.

Removal and deportation. The Immigration Act 1987 makes provision for the removal of people who are unlawfully in New Zealand. People removed from New Zealand are not eligible to return for five years from the date of their departure. The act provides for a right of appeal against removal 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. Anyone who is deported is not permitted to return to New Zealand without special permission from the Minister of Immigration.

An immigrant group in 1996—from (left to right) India, Taiwan (holding a Māori baby), Macedonia and Samoa.

Administration and Information. The New Zealand Immigration Service: Te Ratonga Manene, part of the Department of Labour, administers immigration legislation and policy. The role of the service is to manage immigration for national advantage on behalf of the government.

Further information about immigration policy and/or application forms and details of fees may be obtained from the nearest Immigration Service branch office in New Zealand or from New Zealand diplomatic and consular representatives overseas.

6.4 Māori society

Demography

Statistics on the New Zealand Māori 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 Māori 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 Māori and used to measure the Māori electoral population. People who described themselves as belonging to one, two or three ethnic categories, one of which is ‘New Zealand Māori’, are defined as belonging to the ‘New Zealand Māori ethnic group’.

Age distribution.Table 6.30 compares the Māori 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, ie, 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 Māori population growth can be seen.

Table 6.3. NEW ZEALAND MĀORI POPULATION BY AGE GROUP*

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

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

Source: Statistics New Zealand

0–4"53,760"13.3"62,004"14.315.3
5–9"51,060"12.6"51,072"11.7
10–14"52,932"13.1"49,971"11.5-5.6
15–17"30,858"7.6"30,021"6.9-2.7
18–19"18,561"4.6"19,890"4.67.2
20–24"44,400"11.0"42,855"9.9-3.5
25–29"36,117"8.9"39,561"9.19.5
30–34"27,258"6.7"33,999"7.824.7
35–39"21,762"5.4"26,010"6.019.5
40–44"16,389"4.0"20,748"4.826.6
45–49"14,907"3.7"15,438"3.63.6
50–54"11,787"2.9"13,833"3.217.4
55–59"9,225"2.3"10,650"2.415.4
60–64"6,345"1.6"7,836"1.823.5
65–69"4,020"1.0"5,064"1.226.0
70–74"2,703"0.7"2,931"0.78.4
75–79"1,521"0.4"1,725"0.413.4
80 and over"1,164"0.3"1,239"0.36.4
            Total"404,775"100.0"434,847"100.07.43

At the 1991 Census, the New Zealand Māori population was significantly younger in age structure than the total population. This youthfulness is demonstrated by the fact that 37.5 percent of Māori were under 15 years of age, compared with 23.2 percent of the total population. In contrast, only 4.4 percent of Māori 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 Māori 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 Māori 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 Māori during the intercensal period. At the older age groups, the impact of mortality has also influenced this decrease. Māori 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 Māori population between the 1986 and 1991 censuses are shown in table 6.31. Māori 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 Māori population in the North Island regions has continued to decline since 1981.

Winners at the National Māori speech contests in 1985.

The South Island's share of the Māori 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 Māori settlement, received the bulk of this increased share and contained 5.0 percent of the Māori population at the 1991 Census.

Redistribution of the New Zealand Māori 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 MĀORI POPULATION BY REGIONAL COUNCIL*

Regional council1986 Census1991 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

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

Includes Chatham Islands County.

Source: Statistics New Zealand

North Island—
    Northland"30,669"7.6"35,502"8.215.8
    Auckland"98,235"24.2"103,212"23.75.1
    Waikato"56,118"13.9"60,642"13.98.1
    Bay of Plenty"47,235"11.7"52,488"12.111.1
    Gisborne"17,058"4.2"17,565"4.03.0
    Hawke's Bay"27,576"6.8"28,491"6.63.3
    Taranaki"12,018"3.0"12,657"2.95.3
    Manawatu-Wanganui"31,920"7.9"34,668"8.08.6
    Wellington"40,767"10.1"41,934"9.62.9
North Island total"361,596"89.3"387,159"89.07.1
South Island—
    Nelson-Marlborough"5,643"1.4"6,585"1.516.7
    West Coast"1,956"0.5"2,070"0.55.8
    Canterbury"19,701"4.9"21,726"5.010.3
    Otago"6,822"1.7"7,860"1.815.2
    Southland"8,718"2.2"9,105"2.14.4
South Island total"42,840"10.6"47,346"10.910.5
    Extra-county islands and shipping†3420.13390.1-0.9
New Zealand total"404,775"100.0"434,847"100.07.4

MAORI TRIBAL LOCATIONS
Traditional areas of major tribes

Male-female ratio. At the 1991 Census females outnumbered males in the Māori population. This repeats the pattern established in the 1986 Census. There were 214,428 males and 220,416 females in the Māori population, representing a sex ratio of 102.8 females to every 100 males.

Dynamics of population change. The Māori have a substantially higher rate of natural increase than non-Māori, 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 Māori descent.

The Māori 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 Māori and non-Māori average family size, as implied by total fertility rate, has narrowed over the years. In 1962 the difference between the Māori and non-Māori total fertility rates was 2.0 births per woman; by 1994 this had narrowed to 0.3 births per woman. However, unlike their non-Māori counterparts, Māori 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 Māori women and 28.9 years for non-Māori women.

Table 6.32. MĀORI 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 during that year.

Excess of births over deaths.

Source: Statistics New Zealand

1986"6,513"21.94R2.14R"1,225"4.13R17.811.041.01R
1987"6,982"23.05R2.26R"1,205"3.98R19.071.10R1.07R
1988"6,767"21.94R2.17R"1,258"4.08R17.861.07R1.04R
1989"6,967"22.22R2.21R"1,351"4.31R17.911.07R1.05R
1990"6,947"21.77R2.19R"1,395"4.37R17.401.07R1.04R
1991"6,946"P21.45P2.19P"1,442"P4.45P17.00P1.04P 
1992"7,238"P22.17P2.29P"1,389"P4.25P17.92P1.07P
1993"7,131"P21.66P2.29P"1,518"P4.61P17.05P1.10P
1994"7,053"P21.28P2.29P"1,405"P4.24P17.04P1.11P

Life expectancy. In 1990–92, the average life expectancy of Māori males was 68.0 years, compared with 73 years for Māori females, while for non-Māori, life expectancies were 73.4 years for males and 79.2 years for females. Therefore, Māori females were expected to outlive Māori males by nearly five years, and non-Māori females were expected to outlive non-Māori males by six years. Over the past 35 years, the difference in life expectancies for Māori and non-Māori has been converging, due to significant gains made by the Māori population, as shown in table 6.33. In spite of these gains, however, the life expectancy for Māori males is about five years lower and that for Māori females is about six years lower than for non-Māori males and females respectively.

Table 6.33. COMPARISON: MĀORI AND NON-MĀORI LIFE EXPECTANCY

YearLife expectancy at birth (years)
MāoriNon-Māori
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 Māori 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 Māori Council v the Crown saw the special relationship between the Māori 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. The Waitangi Tribunal is a permanent commission of inquiry established under the Treaty of Waitangi Act 1975. Its main function is to inquire into and make findings and recommendations to the Crown on claims relating to the Treaty of Waitangi submitted to it by Māori.

Tribunal members are appointed for their knowledge and experience in the different aspects of matters likely to come before the Tribunal. Up to 16 members, in addition to the chairperson (who is ex officio the Chief Judge of the Māori Land Court) may be appointed. From the total membership separate Tribunals (of no fewer than three nor more than seven members) are constituted for different inquiries. The membership of the Tribunal reflects the partnership in the Treaty of Waitangi through equal representation of Māori and Pakeha. Appointments are made by the Governor-General on the recommendation of the Minister of Māori Affairs made after consultation with the Minister of Justice.

The Tribunal may not inquire into any claim by Māori. It may only inquire into claims concerning legislation, or acts, omissions, policies and practices of the Crown, which are alleged to have caused the claimants prejudice and claimed to be inconsistent with the principles of the Treaty of Waitangi. Claims fall into the following three broad categories: historical claims (eg, past government actions); contemporary claims (eg, current government policies or practices); and conceptual claims (eg, the “ownership" of natural resources).

By the end of the 1995–96 year, the Tribunal had registered 590 claims. Of these, at least 78 had been reported on. Fewer hearings took place than in the previous year, partly because of a demanding research schedule, but also because the Tribunal members were engaged in writing an unprecedented number of reports covering a further 33 claims.

The text of all Tribunal reports is now accessible free to all users in an electronic format with search facilities. The Tribunal's web site is: http://www.knowledge-basket.co.nz/waitangi/welcome.html and email address is wtd@actrix.gen.nz.

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 Māori 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 Ngai Tahu, Ngati Awa, and the Taranaki tribes. The major treaty settlement in 1996 was of the historical grievance of Whakatohea (see panel). A Heads of Agreement was also reached with Ngai Tahu on the settlement of its claims.

Ministry of Māori Development / Te Puni Kokiri

The Ministry of Māori Development was established as a policy ministry on 1 January 1992 and replaced Manatu Māori (the Ministry of Māori Affairs) and Te Tira Ahu Iwi (the Iwi Transition Agency).

The ministry is the Crown's principal adviser on the Crown's relationship with iwi, hapu, and Māori, and on key government policies as they affect Māori.

In carrying out this role, The ministry's functions are:

  • to provide primary strategic leadership advice on: the Crown's relationship with iwi, hapu and Māori; development issues; monitor the performance of mainstream agencies; and consultation between the Crown and iwi, hapu and Māori,

  • 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-Māori relationship.

The ministry 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 Māori Affairs before it.

From 1 July 1995 the ministry 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 Māori 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 Māori 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 Māori. 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 Māori 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 Māori 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 Māori in terms of education, health and employment. The branch will examine and advise on opportunities for, and impediments to, Māori achieving parity; and assessing means of Māori 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 Māori people and Māori 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 Māori Affairs.

Services to the Māori Trustee—the Māori Trust Office continues to operate under its own legislation with its administrative and clerical support contracted from the Ministry of Māori Development.

Māori 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 Māoridom. Runanga or trust boards have a key role to play in the implementation of development schemes, the development of a comprehensive Māori fisheries policy, the administration of Māori language boards and cultural wananga, and other activities.

Tribal structures are ideally placed to represent the whole range of Māori opinion, and because they operate in a Māori 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 Māori community.

There are also major benefits for Māori people. Tribal identity and pride are enhanced and there is even greater incentive for Māori 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, Māori economic development, and the adaptation of traditional strengths to meet contemporary needs, which are features of Māori society today.

Maori community services

The Māori Community Services programme, as these services are collectively known, has as its legislative basis the Māori Community Development Act 1962, the Māori Affairs Act 1953 and the Māori 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 Māori organisations working alongside and partially resourced by the ministry are the New Zealand Māori Council; Māori Wardens; Māori Women's Welfare League; Te Kohanga Reo; and Māori 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 Māori Council: Te Kaunihera Māori. The New Zealand Māori Council is constituted under the Māori 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 Māori.

  • Consider and, as far as possible, act on any measures that will conserve and promote harmonious and friendly relations between Māori and other members of the community.

  • Promote, encourage and assist Māori 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 Māori people.

The council is responsible for advancing the provisions of the Treaty of Waitangi and effecting changes in the status of Māori through Acts of Parliament, such as the various fisheries acts (especially the Māori Fisheries Act 1989), the State-owned Enterprises Act 1986 and the Crown Forest Assets Act 1989.

The council currently represents 15 district Māori councils, which nominate three delegates to attend full council meetings. The council now includes representatives from the Māori Women's Welfare League, Nga Puna Waihanga (Māori Artists) and the Māori Wardens. It is the only national Māori body with a statutory framework that recognises non-iwi based representation. Apart from the urban district Māori 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.

Māori Congress: Te Whakakotahitanga O Nga Iwi O Aotearoa. The Māori Congress was officially launched in July 1990, after three national Māori 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 Māori 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 Māori.

  • Promotion of constitutional and legislative arrangements that enable Māori people to control their own right to development and self-determination.

While acknowledging the strengths and autonomy of each iwi, the Māori Congress provides a forum at which matters of national importance, affecting all iwi and indeed all Māori people, can be debated within a Māori context. By standing apart from government, both in terms of direction and funding, it offers Māori 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 Māori opinion from which acceptable policies for Māori development might take shape.

Māori Women's Welfare League conference, Auckland, 1983.

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 Māori development. There has been extensive involvement in the development of modes for the equitable disposal of Crown assets, the representation of Māori on international bodies and the expansion of social projects, such as options for housing and economic expansion.

Māori wardens. These voluntary workers, among other things, provide liaison between police, the courts and the Māori 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.

Māori Women's Welfare League: Te Ropu Wahine Māori Toko i Te Ora. Te Ropu Wahine Māori Toko i Te Ora is a national voluntary organisation; its philosophy is the well-being of Māori 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 Māori families and communities since 1951 to improve health, housing, education, welfare, employment and justice for Māori people. The ill health and social status of Māori people demonstrated the need for Māori 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 1997, so that as many children as possible will have completed childhood immunisation by the age of two. The league, with government funding, has eight immunisation co-ordinators 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 Whanau parenting programme—Research in 1994 led to the development of 12 modules covering a wide range of topics relevant to women with children aged from 0 to 15. Three of the modules, piloted in 1996, are currently being implemented.

  • 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 Māori 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 smokefree environments.

Kohanga reo. Te Kohanga Reo is a whanau (family) base where Māori 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 Māori language.

There are 802 Te Kohanga Reo throughout New Zealand where 14,500 children are taught in te reo Māori. 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.

Māori Language Commission: Te Taura Whiri i te Reo Māori. The Māori Language Commission was established by the Māori Language Act 1987 to promote the Māori 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 Māori tribal life, the venue for major social, political and ceremonial activity. The marae subsidy programme formerly administered by Te Puni Kokiri was concluded on 30 June 1996. Marae requiring assistance for renovations and maintenance now apply to the Lottery Grants Board for such assistance.

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 fimatanga o tēnei rautau; otirā, mai i te fimatanga 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 kūa 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 MāoriMāori 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 kiia te reo Mōri 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 MāoriMāori, 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 fipuna. I tua atu i te wero atu ki te iwi MāoriMāori 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 MāoriMāori, 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 MāoriMāoriMāori. 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 Māori, a Polynesian language closely related to Cook Islands Māori, Tahitian and Hawaiian, is the indigenous language of New Zealand, and the first language of some 50,000 Māori New Zealanders.

The number of native speakers of Māori 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 (Māori-language preschool movement) and, more recently, the Kura Kaupapa Māori (Māori-language immersion primary schools). Many Māori radio stations have now been established and there are moves at present to establish Māori television.

The legislation that led to the declaration of Māori as an official language of New Zealand and the establishment in 1987 of Te Taura Whiri i te Reo Māori (the Māori 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 Māori language in courts of law, the education system, broadcasting and the public service. Although the Māori Language Act 1987 fell short of the tribunal's final recommendations, the language was declared ‘official’ and the right to speak Māori in courts of law and before a number of tribunals was established.

The mission of the Māori Language Commission is to contribute to the growth and maintenance of the Māori 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 Māori, Te Taura Whiri i te Reo Māori continues to address three main groups: the Māori people, the state sector and the general population.

Māori people themselves possess the essential element in the revitalisation of the Māori language: knowledge of the language. Those who currently speak Māori 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 Māori language such as waea whakaahua ‘facsimile device; fax’. For the year ended June 1994 the commission created 894 new words, compared with 739 the previous year.

The state sector is encouraged to respond to the language needs of its Māori-speaking clientele. Te Taura Whiri i te Reo Māori assists government departments and other Crown agencies in offering a range of services in Māori. 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 Māori, and often also in other Polynesian languages.

The general population is gradually being made aware of the language concerns of the Māori people, including the need for Māori-medium schooling and broadcasting. While it is the Māori 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 Māori language is to achieve status as a fully official language.

The many activities of He Taonga Te Reo 1995: A Celebration of Māori Language in community projects, and through special TV programmes, postage stamps and artistic performances, encouraged wider use of te reo.

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 Māori, 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, ie, 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– 4"18,390"14.1"25,737"15.440.0
5– 9"17,421"13.4"19,851"11.913.9
10–14"15,819"12.1"19,110"11.420.8
15–19"14,223"10.9"17,223"10.321.1
20–24"12,993"10.0"16,695"10.028.5
25–29"11,898"9.1"15,627"9.431.3
30–34"10,776"8.3"13,080"7.821.4
35–39"8,709"6.7"10,785"6.523.8
40–44"5,982"4.6"8,547"5.142.9
45–49"4,671"3.6"5,997"3.628.4
50–54"3,153"2.4"4,710"2.849.4
55–59"2,409"1.8"3,339"2.038.6
60–64"1,641"1.3"2,622"1.659.8
65–69"1,017"0.8"1,734"1.070.5
70–746060.5"1,056"0.674.3
75–793150.25610.378.1
80 and over2670.23900.246.1
            Total"130,293"100.0"167,073"100.028.2

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.

The Pacific Island population has a different age structure from that of the New Zealand Māori 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 Māori. 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 District.

Source: Statistics New Zealand

North Island—
    Northland12751.016351.028.2
    Auckland8393164.411131566.632.6
    Waikato61954.872364.316.8
    Bay of Plenty26072.032762.025.7
    Gisborne4380.35250.319.9
    Hawke's Bay22891.825201.510.1
    Taranaki5520.46360.415.2
    Manawatu-Wanganui25952.034262.132.0
    Wellington2150416.52605515.621.0
            North Island total12138693.215662793.729.0
South Island—
    Nelson-Marlborough5610.45880.44.8
    West Coast1380.11470.16.5
    Canterbury48003.758233.521.3
    Otago19711.523251.418.0
    Southland14251.115450.98.4
            South Island total88986.8104346.317.3
    Extra-county islands and shipping†9-12- 
            New Zealand total130293100.0167073100.028.2

Ministry of Pacific Island Affairs

The Ministry of Pacific Island Affairs has a unique role in promoting and ensuring that development of social and economic policies recognise and reflect Pacific cultural values and aspirations, so that the Pacific people can participate and contribute fully to New Zealand's social, cultural and economic life.

It is concerned with Pacific communities in New Zealand whilst at the same time, recognising the web that binds Pacific peoples to their respective home countries.

The vision of the Ministry of Pacific Island Affairs 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.” This reflects the Pacific communities‘ desire to: do things in a way which reflects their uniqueness; participate in deciding their future; focus on upskilling their knowledge; and capitalise on cultural diversity and spirituality.

The Ministry of Pacific Island Affairs assists this by:

  • providing advice on key policies and issues;

  • disseminating information and consulting Pacific communities;

    PACIFIC MIGRATION Total migrants to New Zealand

  • providing a facilitation brokerage role with key government agencies who have a responsibility for meeting the aspirations of Pacific people;

  • promoting Pacific Island leadership that fosters self-reliance and full participation in all facets of New Zealand life; and

  • monitoring and influencing the development and implementation of government policies that affect Pacific Island people.

The Ministry of Pacific Island Affairs strategic priorities are education, skills development, business and economic development, health promotion, and crime prevention/safer communities.

These activities will help strengthen the Pacific communities, which are optimistic about their future and about making an even greater contribution to New Zealand society.

The Ministry of Pacific Island Affairs also continues to support the Pacific Island Business Development Trust which has already proved to be a successful model for business enterprise.

Future issues. Key issues which may have an impact on the Ministry's future activities include:

  • an increasingly larger population of Pacific youth;

  • an increasing number of Pacific peoples in the workforce;

  • the impact of an MMP environment; and

  • the need to realise that Pacific processes yield better activities for Pacific people.

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; Department of Internal Affairs; New Zealand Immigration Service.

  • 6.4 Statistics New Zealand; Waitangi Tribunal; Office of Treaty Settlements; Ministry of Māori Development (Te Puni Kokiri); Māori Council; Māori Congress; Māori Women's Welfare League; Kohanga Reo; Māori Language Commission.

  • 6.5 Statistics New Zealand; Ministry of Pacific Island Affairs.

Special articles

Race Relations Conciliator; Ministry of Women's Affairs; Janet Hesketh, President National Council of Women; Rachel L McKee, Victoria University of Wellington; New Zealand Federation of Ethnic Councils; Commissioner for Children; Ministry of Youth Affairs; Refugee and Migrant Service; Waitangi Tribunal; Maui Solomon, Barrister; Office of Treaty Settlements; Māori Women's Welfare League.

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

Annual Report of the EEO Trust.

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 G.7).

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

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

Māori population

Demographic Trends. Statistics New Zealand (annual).

Report of the Ministry of Māori Development—Te Puni Kokiri (Parl paper E.47)

Census of Population and Dwellings 1991, New Zealand Māori Population and Dwellings and Iwi Population and Dwellings. Department of Statistics.

New Zealand Now: Māori. Statistics New Zealand, 1994.

Te Kanohi Hou o Aotearoa-Māori. 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 G.7).

Census of Population and Dwellings 1991, Pacific Island Population and Dwellings. Department of Statistics.

Chapter 7. Social welfare

A display by the Disabled Servicemen's Re-establishment League Inc, probably during the 1950s (see separate article).

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 expenditure
New Zealand superannuationAll other paymentsReceipts on behalf of the CrownNet operating expensesNet capital expensesTotal

*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
19965,0544,9422444631810,233

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.

INCOME SUPPORT
Benefit payments made by the New Zealand Income Support Service

SOCIAL WELFARE EXPENDITURE Percentage of GDP

The social security system provides for a range of assistance with cash benefits paid as of right to those who meet income, residence and other eligibility criteria for each category; and other assistance available to help with specific expenses such as accommodation or those related to a disability.

The 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 843,825 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.

Table 7.2. CASH BENEFITS: WEEKLY RATES*

BenefitBasic net benefit

*As at 1 April 1997.

Single 16-17 year olds receive the training benefit only.

Source: Department of Social Welfare

 $
Unemployment—
Without children:
Single 16-17 year olds†96.97
Single 18-24 year olds121.77
Single 25 and over146.13
Married couple243.54
With children:
Single (1 child)209.30
Single (2 children)228.34
Married couple (1 child)258.80
Married couple (2 children)258.80
Sickness—
Without children:
Single 16-17 year olds121.77
Single 18-24 year olds146.13
Single 25 and over152.21
Married couple276.78
With children:
Single (1 child)209.30
Single (2 children)228.34
Married couple (1 child)276.78
Married couple (2 children)276.78
Invalids and transitional retirement benefits—
Without children:
Single 16-17 year olds147.81
Single 18 and over182.85
Married couple304.42
With children:
Single (1 child)239.94
Single (2 children)257.66
Married couple (1 child)304.42
Married couple (2 children)304.42
Widows and domestic purposes benefit—
Women alone single adult152.21
Sole parent (1 child)209.30
Sole parent (2 children)228.34
Domiciliary care domestic purposes benefit—
Single 16-17 year olds147.81
Single 18 and over182.65
Sole parent (1 child)239.94
Sole parent (2 children)257.66
Half married rate152.21
Orphans and unsupported child benefit—
Under 5 years66.01
5-9 years81.23
10-13 years88.85
14 and over96.46
Family support—
First or only child44.50
Second/subsequent child aged 0-12 years29.50
Second/subsequent child, 13-15 years37.50
Independent youth benefit—
Single 16-17 year olds121.77
Job search allowance—
Single 16-17 year olds96.97
New Zealand Superannuation and veterans pension (gross rate)—
Single living alone252.82
Single sharing231.72
Married person189.52
Married couple: both qualify379.04
Married couple: non-qualifying spouse360.74 or 379.04

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.

  • New Zealand superannuation and veterans benefits.

  • Other benefits, grants and payments: accommodation supplement, childcare subsidy programme, disability allowance, funeral grant, special benefits, special needs grants, training incentive allowance and advances on benefits.

  • 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.

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 has increased from $50 a week ($60 for beneficiaries with children) from 1 July 1996. For people receiving invalids, domestic purposes, emergency maintenance and widow's benefits the benefit is reduced by 30 cents for every dollar earned between $80.00 and $180.00 a week. Every dollar of income over $180.00 will then reduce the benefit by 70 cents.

For people receiving unemployment, sickness, training, independent youth and transitional retirement benefits and ‘non-qualified’ spouses of people receiving New Zealand superannuation and veterans pensions, any income over the $80.00 exemption reduces the benefit/pension by 70 cents for every $1.00.

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 due to a disability. The number of invalids benefits in force at 30 June 1996 was 42,422, an increase of 2,736 from the previous year.

Sickness benefit. A sickness benefit is payable to persons over the age of 16 who are temporarily incapacitated for work, and as a result suffer a loss of earnings. The number of sickness benefits in force at 30 June 1996 was 30,328, an increase of 3,709 from the previous year.

Porirua Income Support Service staff who have been working with the strategy.

INCOME SUPPORT
Percentages of people receiving support, by type of benefit For actual numbers of people see Table 7.4

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 1996 was 9,043, 36 more than at 30 June 1995; of this number 2,785 were caregivers for 4,427 children.

Domestic purposes benefit. This benefit is payable to a parent caring for children without the support of a partner, to a person caring at home for someone who would otherwise be hospitalised, and in some circumstances to an older woman alone. The number of domestic purposes benefits in force at 30 June 1996 was 108,797; of this number 104,466 were sole parents (caregivers for 183,085); 1,528 were caring for the sick or infirm; and 2,803 were women alone. At 30 June 1995 there were 104,027 domestic purposes benefits in force, 4,770 fewer than at 30 June 1996. Nearly half the recipients of a benefit are aged between 30 and 39, and 66 percent have come from a relationship where they have separated from a spouse or partner.

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 3.77 percent over the 1996 year. As at 30 June 1996 a total of 134,133 unemployment benefits were being paid, 5,254 fewer than at 30 June 1995. Of this number 108,817 people received the standard benefit; 158 received the Job Search allowance; 2,713 the independent youth benefit; 9,496 received the 55+ benefit while 9,987 received emergency unemployment benefits. Emergency support for unemployed students has increased with 25,355 at the end of December 1995, compared with 22,282 at the end of December 1994, 23,035 at the end of December 1993 and 21,961 at the end of December 1992.

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 11,389 training benefits being paid as at 30 June 1996, a decrease of 266 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 1996 there were 7,832 people receiving a transitional retirement benefit, an increase of 505 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.

NUMBER OF BENEFITS

The numbers graphed here are given in Table 7.4. Family Benefits were abolished from I April 1991, and replaced by the targeted Family Support Scheme. The number of people receiving Family Support, which is a negative income tax rather than a social security benefit, is not published by the Department of Social Welfare.

BENEFITS AND PENSIONS: 1899–1938
Year ended 31 MarchOld ageWidowsWar
no£(000)no£(000)no£(000)
18997443127... ... 
190312481212......
190813569333......
191316509412131315...
19181996074121927414497515
1923211817553411188264601,489
1928248751,0104098308205601,152
1933349321,2714687311211041,218
1938599533,2354982471240961,597

Demonstration in support of the DPB outside the Department of Social Welfare, Wellington, 1977.

Child care subsidy. The child care subsidy programme provides financial assistance to low income families with dependent children to obtain access to pre-school child care services. At 30 June 1996 there were 34,787 approved applications for subsidies, 1,399 more than at 30 June 1995.

Orphans and unsupported child benefits. This benefit is payable to a person caring for an orphan or an unsupported child. As at 30 June 1996 there were 4,662 benefits being paid, an increase of 382 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 1996 there were 1,064,474 current cardholders, 7,358 more cardholders than at the same time the previous year.

New Zealand superannuation

The current New Zealand superannuation scheme provides $252.82 a week for a single person and $379.04 a week for a married couple (or $360.74 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 1996 there were 459,901 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: Insurance and superannuation.

Veterans pension. This is paid at the same rate as New Zealand superannuation, and is not income tested but is taxable. A total of 6,555 people received veterans pensions as at 30 June 1996, 175 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 30 June 1996 there were 137,319 current allowances, an increase of 24,070 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 14,059 children receiving an allowance as at 30 June 1996, with 3,499 applications granted in the year ending 30 June 1996, an increase of 788 from the previous year.

Table 7.3. SUPPLEMENTARY PAYMENTS UNDER THE SOCIAL SECURITY ACT

Year ended 30 June1990*1992199319941995†1996

*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‡ 180,115210,834351,319491,437561,794
Tenure protection allowance 16,67517,061
Child care subsidy8,91615,73338,61938,09331,42834,281
Handicapped child allowance11,26713,49515,12016,78318,65321,735
Disability allowance 70,03688,226115,858130,486149,314
Special benefits 55,32364,18767,51883,01586,792
Special needs grants 19,61337,04645,09450,310
Funeral and tangihanga grants§5,5744,4404,1464,6444,9085,525

Special benefit. This is short-term assistance for people who have on-going expenses related to special or unusual circumstances or financial commitments. This benefit was held by 32,882 customers as at 30 June 1996, 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 1996, 516,678 grants were issued, an increase of 120,396 from the previous year.

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 1996, 323,858 advance payments had been granted, an increase of 147,375 on the previous year.

Training incentive allowance. This allowance is available to widows, invalids and domestic purposes beneficiaries to help meet costs associated with attending recognised occupational or work-related courses which provide specific work skills.

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.

Table 7.4. NUMBER OF BENEFITS AND PENSIONS IN FORCE: 1940-96*

End of financial year**Unemployment†TrainingSicknessInvalidsMinersDomestic purposesWidowsOrphans & unsupported childFamily‡Transitional retirement§New Zealand super-annuation||VeteransTotal

*Summary before 1940 is included in the 1990 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.

19404053 256511811988 1017433011053 93262 134236
1945198 423312205783 1096542124251 158332 211388
195012 49319476636 14198366254920 186512 471051
195519 42778110481 12197300298370 199236 522990
1960312 40648024353 13049277343193 204036 573308
1965208 46817951184 14529316376824 214659 619352
1970983 5876834298 15663315408397 241772 681446
19752894 78309414451723116738376452389 289348 796265
198020850 750415647213704016120413460897 405834 964326
198135666 710416961163941215416388461211 418901 995075
198232596 717717891164344714737365459994 430175 1006398
198350744 766918757164812114125362460798 441789 1042381
198450136 945220187135314413921384460382 451128 1058747
198538419 962721464115654813557365455961 459813 1055765
198642405 951721993106257013304364455330 465079 1070572
198763922 1111623087106914613019496450072 473401 1104269
198886782 1313224379974862128621537436066 479985 1129614
1989123565 1602126260785615130262993437287 485962 1190736
199013962594531951127824694823126765239446373 49550034281254458
199115325974832014730746397000109892931  5060473130831735
19921703677857240933183119672298733135  5045615393853833
1993170339108972872934957 96335102593539  4888936117850065
1994157182128343153537030 10025690124093 65404774006278842160
1995139387116553403739686 10402790074280 73274692396380825025
1996134133113893338642450 10878990474662 78704599016559818186

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

Support of children by non-custodial parents

Child support. The responsibility to collect child support payments from 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 (see section 28.2: Taxation).

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.

Table 7.5. WAR PENSIONS AT 30 JUNE 1996

Type of pensionNumber in forceAnnual value

*Disablement and dependents 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*2142461,538
Dependents pensions416622,475
Police3598

The war pensions programme comprises:

War disablement pension. This pension provides compensation for disablement. Approximately 85 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.

Table 7.6. EXPENDITURE ON BENEFITS AND PENSIONS: 1940-96*

End of financial year**Unemployment†TrainingSicknessInvalidsMinersDomestic purposesWidowsOrphans & unsupported childFamily‡Transitional retirement§New Zealand super-annuation||Veterans

*Summary of benefits and pensions expenditure before 1940 is in the 1990 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 from 1995. Previous

$(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 3,9144,80153 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
19961,276,54096,973378,850494,849 1,440,12285,00822,929 90,6985,170,50660,612

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

Independent Order of Oddfellows (IOOF) Manchester Unity—Southland District, meeting in Invercargill, March 1913.

Veterans pension. From 1 April 1990 a veterans pension (a social security benefit) replaced the economic pension, war service pension and veterans allowance.

Social security agreements

A social security agreement with Denmark is expected to be signed and to come into force this year. Negotiations with Italy are nearing completion.

Australia: Under the social security agreement between Australia and New Zealand invalids, widows, sole parents and the aged who have resided in one country for 10 years or more, are entitled to pensions/benefits in the other. New Zealand and Australia reimburse each other for pensions/benefits paid to former residents if they have less than 10 years‘ residence in the country where they are receiving the pension/benefit.

Greece. A 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 person's residence in New Zealand. Analogous Greek pension's are paid to people who have contributed to the Greek social security scheme who are living in New Zealand.

The Netherlands. Under the social security agreement between New Zealand and the Netherlands, New Zealand superannuation, veterans 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 person's residence in New Zealand. Analogous Netherlands pensions are paid to people who have contributed to the Netherlands social security scheme who are living in New Zealand.

Republic of Ireland. A 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 person's residence in New Zealand. Analogous Irish pensions are paid to people who have contributed to the Irish Social Security scheme 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 saw pensions paid directly to pensioners from 1 April 1996. About 32,000 British pensioners live in New Zealand.

Jersey and Guernsey. A 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.

Canada. A new social security agreement with Canada came into force on 1 May 1997. 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 Canada. The rate of payment is determined proportionately in accordance with the period of the person's residence in New Zealand. Analogous Canadian pensions are paid to people who have contributed to the Canadian social security scheme 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 veterans 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.

COMMUNITY FUNDING
Community Funding Agency programmes by sector

Community Funding Agency programmes, by sector
 19951996
Source: Department of Social Welfare
 $(million)$(million)
Families in need of support43.652.7
Disability services39.941.0
Community welfare10.78.5

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 Citizens Advice Bureaux, refuges and emergency housing.

People with disabilities—for the provision of vocational opportunities and employment support for people with disabilities.

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 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 ten factors—ethnicity, unemployment, population on income support, single parents with dependent children, multi-family households, regional isolation, cost of housing, infant mortality, qualifications at school leaving age and teenage pregnancy.

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.

During the 1995–96 financial year, the agency allocated $103 million directly to approximately 1,600 service providers.

NZCFA has 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 Māori 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 Māori 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.

Children, Young Persons and Their Families Service

Children, Young Persons and Their Families Service (CYPFS) administers the Children, Young Persons, and Their Families Act 1989 which relates to children and young persons who are in need of care and protection or who offend against the law:

This act aims to:

  • advance the well-being of families and the well-being of children and young persons as members of families, whanau, hapu, iwi, and family groups.

  • make provision for families, whanau, hapu, iwi, and family groups to receive assistance in caring for their children and young persons; and

  • make provision for matters relating to children and young persons who are in need of care or protection or who have offended against the law to be resolved, wherever possible, by their own family, whanau, hapu, iwi or family group.

CYPFS also supplies a range of adoption and post-adoption related services.

Children's dormitory of the St Mary's Homes Trust, 1926.

Care and Protection Services

The figures represent the number of reports accepted for investigation, not the number of contacts made with the service about care and protection matters. The service lost the capacity to record the total number of reports received with a change of recording system at the beginning of the year to June 1995. This has been rectified from the beginning of the year to June 1997 when data will be collected on:

  • number of reports made about care and protection issues.

  • number dealt with at intake—ie service provided at intake, or matter referred to another agency for assistance.

  • number accepted for investigation or exploratory interview by a social worker.

The service has been uncomfortable with the categorisation of reports by problem type before investigation and assessment and like other administrations around the world has been concerned to see a clearer distinction made between those reports which allege child abuse and neglect on the one hand (and require an investigative response), and those which relate more to the problem behaviours or relationships of children, young persons and their families (which require needs assessment rather than investigation). There has been a need, also, to clarify the service's response requirements in relation to different types of reports.

From 1997 the service will report on reports accepted for investigation or exploratory interview as follows:

Response CategoryResponse Requirement
CriticalSame day
Very urgentWithin two days
UrgentWithin seven days
Low urgencyWithin 28 days

To clarify the distinction between child protection and child welfare concerns, the service will report the following categories where the reports on investigation or interview were found to have substance: physical abuse: sexual abuse; emotional abuse; neglect; self-harm behaviour; problem behaviour/relationship difficulty; and not found.

This reconfiguration of the data will enable CYPFS to report, for the first time, whether the situation alleged in reports was found (known internationally as the substantiation rate) and generally the service's data will be more comparable with that of other administrations.

Care and protection services. Care and protection notifications are the key entry point to care and protection services.

Family group conferences

Family group conferences (FGCs) emerged in New Zealand as a new and unique method of resolving decisions about children who were abused, neglected or had offended. The Children, Young Persons and Their Families Act 1989 gave FGCs a statutory role in primary decision-making for both care and protection, and youth justice. They reflect in their philosophy an emphasis on the participation of families, young offenders and victims, cultural sensitivity and consensus decision-making; and in their practice a capacity to be translated into diverse social contexts and jurisdictions. FGCs are now found in many jurisdictions within Australia, Canada, England, and the United States. They are being adopted as a preferred decision-making forum both for young offenders and for young people in need of care and protection. Some jurisdictions are now carrying out or are contemplating experiments in other areas—for example, family violence, arrangements for the care of the children of parents in prison, decisions about custody and access, offending by young adults, and managing the affairs of those unable to manage them unaided.

New Zealand has played a part in the spread of FGCs and the evolution of the ideas that stem from them. A number of practitioners from within the Department of Social Welfare, judges from the Family and Youth Courts, staff of the Office of the Commissioner for Children and researchers have visited Australia, Canada, the USA and the United Kingdom to speak about conferencing and to offer training to those wishing to adopt the model. Interest has been aroused by international journal articles and by reports published in New Zealand. The Office of the Commissioner for Children and the Institute of Criminology at Victoria University of Wellington have assisted South Africa and the emerging Palestinian Authority on matters of juvenile justice.

Table 7.7. NOTIFICATIONS RECEIVED*

 Year ended 30 June
19951996

*Notification categories changed between 1994 and 1995. Figures for 1993 and 1994 are in the 1996 Yearbook.

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: Social Work Information System

Physical/sexual abuse (in family)67406482
Physical/sexual abuse (non family)20241899
Care concerns/emotional abuse1119510849
Child/young person with problem behaviour43313816
            Total number of general care and protection notifications2429023046
Arrest of children and young persons1018553
Number held in police custody531347
Number held more than 24 hours†8995

CYPFS 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 abuse require a response within 24 hours. A standard of all notifications being responded to within seven days was not met, primarily with those notifications relating to the intake category—problem behaviours. Rarely do these cases constitute an imminent threat to safety, but they do require investigation and follow up in due course.

Where family problems are identified following an investigation into a care and protection notification, CYPFS responds by either referring the matter on to another agency, providing direct services through a voluntary family/whanau agreement, or providing services as an agreed outcome from a statutory 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 number of family/whanau agreements has been recorded on the same basis as in previous years and shows a modest increase from 3,015 in 1995 to 3,204 in 1996.

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 statutory defined processes of a family group conference (FGC).

Table 7.8. CARE AND PROTECTION FAMILY GROUP CONFERENCES (FGCs)

 Year ended 30 June
 199419951996

*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. However, some referrals do not result in an FGC.

Source: Children, Young Persons and Their Families Service

Number of referrals made to care and protection co-ordinator*531543503779
Number of FGCs held†494448624799
Number of care and protection FGCs held that resulted in ongoing service by NZCYPS314227622692

An FGC is held when an authorised agent, usually but not always a social worker, makes a referral to a Care and Protection Co-ordinator. In the FGC a Care and Protection Co-ordinator 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 and 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.

Table 7.9. 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, Young Persons and Their Families 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‡13381308
via s 139: Temporary care agreements§188199
via s 140: Extended care agreements§192199
Total current orders||28843261
Number of children and young persons in care26542862

The number of referrals made to Care and Protection showed a 13 percent decrease, while the actual number of family group conferences convened remained similar to the number convened in 1995.

The act provides for a range of orders relating to the care, custody, and guardianship of children and young persons. The service uses these orders, including the 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.

The count is made on the basis of all the plans and orders that have been completed during the fiscal year. Previously this count was for plans and orders active at 30 June.

Orders made by the court usually involve the custody or guardianship of children and young persons, and the provision of ongoing support or services by CYPFS.

This group of actions covers the situations where emergency action is taken to provide care or protection for a child or young person. The actions range from warrant action to provide for immediate safety needs of the child or young person, through to less intrusive actions to provide care (with agreement) while longer term solutions are explored.

Table 7.1. FAMILY GROUP CONFERENCE PLANS AND COURT ORDERS COMPLETED

 Year ended 30 June
19951996

Note: A child may be subject to more than one order, under the provisions of the Children, Young Persons and Their Families Act 1989.

Source: Children, Young Persons and Their Families Service

via s74: Counselling order2628
via s78: Custody order pending determination828871
via s86: Service order595580
via s87: Restraining order196236
via s91: Support service469494
via s101: Custody orders15101702
via s102: Interim custody orders413357
via s110: Guardianship orders15141227
Family Group Conference24972943
Total FGC plans and orders completed80488438
Number of children and young persons for whom orders were completed70875238

Table 7.11. EMERGENCY ACTIONS CARRIED OUT

Type of actionYear ended 30 June
19951996
Source: Children, Young Persons and Their Families Service
via s39: Place of safety warrant478339
via s42: Police search without warrant5532
via s48: Unaccompanied child281376
via s139: Temporary care agreement16341586
Total24482333

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.

Table 7.12. YOUTH JUSTICE REFERRALS AND FAMILY GROUP CONFERENCES (FGCs)

 1993199419951996
Source: Children, Young Persons and Their Families Service
Number of referrals for FGC accepted 762450224697
Total youth justice FGCs held6559708369355735

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.

Only those referrals actually 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 and care and protection cases the service provides residential services in Auckland (Weymouth), Hamilton (Dey Street), Wellington (Epuni), Christchurch (Kingslea) and Dunedin.

The residential service ran at near capacity all year. The number of admissions was down on last year by 12 percent. In the youth justice area, the number of young persons serving sentences requiring residential supervision increased. This resulted in a reduction in the number of beds available for remand clients and consequently, a lower client turnover. The total number of people admitted to care and protection residences remained static. Furthermore, turnover was down, indicating that clients stayed longer.

Although abscondings increased overall, there were significantly fewer from Kingslea.

The percentage of completed admission objectives showed a considerable improvement over the 31 percent in 1995.

Table 7.13. ADMISSIONS TO RESIDENCES AND ABSCONDINGS*

 Weymouth (Northern)Dey StEpuniKingsleaDunedinTotal

*Year ended 30 June 1996, Note: Kingslea National Secure figures have been counted as Youth justice.

Source: Children, Young Persons and Their Families Service

Care and protection
Bed capacity10--6824
Number of admissions711033778199
Number of individuals admitted59932964164
Number of abscondings56--2521102
Youth justice
Bed capacity2552026-76
Number of admissions447162161346221138
Number of individuals admitted236979415219598
Number of abscondings155-2322-200
Total
Bed capacity35520328100
Number of admissions5181721643831001337
Number of individuals admitted2951069718183762
Number of abscondings211-234721302
Completed Admission Objectives (percent)856065969880.8

Adoption

The Adoption Information and Services Unit of the CYPFS is responsible for statutory adoption services.

Adoption Placement Services. These include the education and preparation of prospective adoptive applicants, counselling of birthparents, approving placements, and reporting to the Family Court. They also include processing and monitoring inter-country adoption placements; as well as providing post-placement information and support to younger adopted people and their families.

A further reduction in the overall number of adoptions completed was mirrored in a corresponding decrease in the number of adoptions handled by the service that resulted in a Final Order.

There was an increasing demand for services related to inter-country adoption (494 inquiries, an increase of nearly 200 over the previous year). Those inquiries produced 96 applications resulting in 80 completed home study reports (against 34 last year) for children to be adopted by New Zealanders overseas (30 from Russia, 50 from other countries). The service also obtained 46 child study reports for children to be brought into New Zealand for the purpose of adoption under New Zealand legislation.

Three immigrant children, two Ukrainian and one Latvian, arriving at Pahiatua Station in 1949. Many displaced children were adopted.

There was an increase in the number of adoption placements with relatives. This is a direct result of the passing of the Adoption Amendment Act 1995, which has resulted principally in whanau adoption placements, previously reported on by Te Puni Kokiri.

Adult Adoption Information Services include the provision of information and mediation to birthparents, and the provision of information and counselling to adult adopted people.

1 March 1996 was the 10th anniversary of the introduction of the Adult Adoption Information Act 1985, signalling the expiry of vetoes placed at the time of the act's introduction. People who wished to have their veto continue were required to apply for it to be renewed; the flow-on affect was a doubling of the demand for veto counselling services.

Table 7.14. CHILDREN PLACED FOR ADOPTION

 1992*1993†1994‡1995‡1996‡

*Year ended 31 December.

Six months ended 30 June 1993.

Year ended 30 June.

Source: Department of Social Welfare

Final adoption orders made794369683640540
Adoptions reported on by CYPFS
Adoptions by:
    Strangers196113183124114
    One parent and spouse280129221240169
    Relatives16176151146177
    Close friends19982518
    Foster parents381524126
            Total adoptions handled/reported to CYPFS:694342587547484

Table 7.15. SERVICES PROVIDED TO IMPLEMENT THE ADULT ADOPTION INFORMATION ACT 1985

 1992*1993†1994‡1995‡1996‡

*Year ended 31 December.

1 January to 31 May 1993. June not available.

Year ended 30 June.

Source: Department of Social Welfare

Birthparents placing vetoes2693469126
renewing vetoes    351
removing vetoes135151410
Adopted persons placing vetoes189263617
renewing vetoes    51
removing vetoes15814817
Birth parents requesting
identifying information196126787621650
Application for a copy of original birth certificate1613623184915971580

ADOPTIONS

Requests for adult adoption information have again remained high, as shown by the number of applications from adult adopted people for a copy of their original birth certificate. There has also been a significant increase in the number of requests for personal information under the Privacy Act 1993, from 143 last year to 553 this year.

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. The agency has a staff of about 100 and an annual budget of $9.8 million. Its divisions are:

  • 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.

  • Business and information service—supporting the provision of a policy advice service with needed, timely, and accurate information and analysis.

Also operating within the Social Policy Agency are the Family Violence Unit and the Senior Citizens Unit which provides policy and support to the Minister of Senior Citizens and assists the minister in advocating on behalf of senior citizens.

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 1996 there were 100,682 cases where the investigation was completed (93,854 in 1995), with 53,256 overpayments identified to a value of $65.6 million (48,001 and $57.3 million in 1995).

Contributors

  • 7.1–7.2 Department of Social Welfare.

Special articles

Department of Social Welfare; Office of the Retirement Commissioner; Cannons Creek Fanau Centre; National Collective of Independent Women's Refuges Inc.; Citizens Advice Bureaux.

Further information

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

Report of the Office of the Retirement Commissioner (Parl paper E.62).

Statistics Report. Department of Social Welfare (annual).

Chapter 8. Social welfare

Otaki health camp, 1964. The historic octagonal rotunda (right background) has been sold for moving to the Raukawa Marae.

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 (RHAs): There are four regional health authorities within New Zealand which are responsible for purchasing publicly-funded public health, personal health and disability support services on behalf of the government for the eligible people in their regions. The four regional health authorities are: Northern, Midland, Central and Southern. The 1995–96 fiscal year was the RHAs‘ third year of this responsibility.

The three primary functions of the RHAs are:

  • to monitor the need for public health, personal health and disability services for people within their region;

  • to purchase health and disability services for those people; and

  • to monitor the performance of providers with whom the RHA enters purchase agreements.

Personal health services are provided to people for health purposes, while disability support services involve care, support, and promotion of independence for people with disabilities. Personal health services tend to be shorter term in nature and bring about an improvement or stabilisation of a health condition. Disability support services are generally longer term. Public health services, on the other hand, aim to prevent disease, prolong life and promote health by such activities as ensuring the safety of food and water. Successful public health programmes will minimise the risk of disease and reduce the need for hospital and health services. RHAs are responsible for deciding what they will purchase within each service category, subject to the government's requirements.

Changes to the health system were announced following the 1996 general election. From 1 July 1997, a single Transitional Health Authority (THA) will take over the functions of the existing four RHAs. A regional presence will be maintained by the THA. In the mean time the government will be reviewing the role of funders and providers in the health sector and this review will determine the final shape of the National Funding Agency, the eventual successor to the role of the RHAs.

Crown Company Monitoring Advisory Unit (CCMAU), CCMAU, as part of its responsibilities to shareholding Ministers of Crown companies, advises the Ministers of Health and Finance on the ownership monitoring aspects of Crown health enterprises (CHEs). The advice includes setting ownership objectives and targets for CHEs, the Crown's investment in this sector and on the impact on CHEs of proposed health policy options. It also monitors and advises ministers of CHE performance against these objectives and targets; and manages for ministers the CHE director appointment and performance assessment process.

Student looking at healthy lungs and diseased smokers‘ lungs in a display at the Wellington Medical School.

Crown health enterprises. There are 23 Crown health enterprises. Individual Crown health enterprises generally provide health care and disability support services based around a 24-hour acute care tertiary (high technology) hospital.

National Advisory Committee on Health and Disability (known as the National Health Committee). The committee advises the Government on the content, quality and terms of access to publicly-funded public health, personal health and disability support services within a resource-constrained environment. It also provides independent public health policy advice. Among its publications in 1996 were: Priority criteria and the Human Rights Act: Guidelines for the treatment and management of depression; and New Zealand acute low back pain guide.

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.

The Victoria Ward of the Wanganui Hospital, 1907

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 purchasing 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 Māori 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 was $17.19 million. In determining priorities for health research, the council is required to consult widely, including with other organisations which 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.

The Malaghan Institute of Medical Research. The Malaghan Institute of Medical Research was established in 1979 as an independent medical research institute (formerly known as the Wellington Cancer and Medical Research Foundation). It was renamed in 1986 to recognise the contribution of Len and Ann Malaghan. The institute is a charitable trust with the goals of improving the prevention and treatment of disease and disseminating and teaching that knowledge. It has 25 full-time staff and is based at the Wellington School of Medicine.

Diseases studies at the Malaghan are asthma, cancer and tuberculosis. The institute collaborates with research groups both nationally and internationally. A major focus of the institute is on the provision of quality post-graduate (PhD) degrees through the Wellington School of Medicine (University of Otago). It is funded by contestable research grants and by contributions from corporate sponsors, private benefactors and bequests.

Health expenditure

Table 8.1. REAL HEALTH EXPENDITURE*

Source of funding1989-901990-911991-921992-931993-941994-951995-96

*CPI deflated.

Expressed in 1995–96 dollars.

$7,194 million when transfers from other votes are included.

Source: Ministry of Health

$(million)†
Public4,7994,8794,8634,8234,9575,0755,163
Private1,0241,0541,2911,4701,4971,5671,639
Total5,8235,9336,1546,2936,4546,6426,802

Health expenditure in New Zealand amounted to an estimated $6,802 million for the financial year ended 30 June 1996. This represented 7.5 percent of New Zealand's gross domestic product and was equivalent to $1,895 expenditure per annum per head of population. An estimated 75.9 percent of this expenditure came from public sources.

Expenditure totals exclude some items of Vote: Health transferred from other Health expenditure in New Zealand amounted to $6,802 million for the financial year ended 30 June 1996. This represented 7.5 percent of New Zealand's gross domestic product and was equivalent to $1,895 per annum per head of population. An estimated 75.9 percent of this expenditure came from public sources.

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 is a statutory body constituted under the Medical Practitioners Act 1995. The principal purpose of the act is to protect the health and safety of members of the public by prescribing or providing for mechanisms to ensure that all medical practitioners are competent to practise medicine. The council has ten members and includes lay participation. The main functions of the council are:

  • registration—the council is responsible for the registration of every medical practitioner working in New Zealand. Overseas-trained doctors seeking registration in New Zealand must also pass the New Zealand Registration Examination (NZREX) which is administered by the council.

  • medical education—which involves the accreditation of medical school courses and curricula and, in association with the Australian Medical Council, the accreditation of Australian medical schools. It also approves posts for the education, training and experience of interns in their seventh year, the mandatory period before general registration. In addition it must promote vocational and continuing medical education and training in New Zealand

  • fitness to practise—to consider cases of medical practitioners who (because of some mental or physical condition) may not be fit to practise

  • professional standards—the legislation provides specific authority for the council to review the competence of doctors and to implement investigation and remediation as appropriate, including, if necessary, imposing conditions on annual practising certificates or registration

  • discipline—the 1995 act established a single Medical Practitioners Disciplinary Tribunal which is an autonomous body separate from the Medical Council. However, the Medical Council receives complaints and must liaise with the Health and Disability Commissioner and, as appropriate, appoint Complaints Assessment Committees.

The number of medical practitioners on the register as at 30 June 1996 was 11,557, with 8,487 holding annual practising certificates.

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 30 June 1996 was 1,967.

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. Four dentists appeared before the tribunal in the year to June 1996 (2 in 1995); one complaint was dismissed.

Professional studies in New Zealand are provided at the School of Dentistry, University of Otago.

Nurses and midwives. The Nursing Council of New Zealand, Te Kaunihera Tapuhi o Aotearoa, 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; programmes leading to registration and enrolment; conducts examinations; approves schools of nursing and 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 21 October 1996, 45,252 nurses and midwives held annual practising certificates.

All registered nurses and direct entry midwives are now trained through three-year polytechnic courses which lead to registration as a comprehensive nurse or midwife. Some polytechnics offer shortened courses for graduates and enrolled nurses which lead to comprehensive registration and midwifery registration. Post-basic education ranges from regular in-service and short clinical courses to diploma and transition to degree courses at polytechnics; certificates and degrees to doctorate level are offered 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 developing requirements for performance-based practising certificates. Ninety-one new complaints about nurses and midwives were received (46 in 1995), and 11 disciplinary hearings held.

There was public debate in early 1995 on the cultural safety component of nursing education, and hearings on the matter were held by a Parliamentary select committee. In July 1995 the council set up a review and evaluation committee which received submissions and made recommendations that were widely discussed. In 1996 the council released new guidelines for cultural safety in nursing and midwifery education, and is working with educational institutions to monitor implementation.

The council hosted the first Western Pacific and South East Asia Regional Meeting on the Regulation of Nursing in October 1996.

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. At 31 March 1997 there were 1,465 registered psychologists, with 996 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 31 March 1997 there were 4,495 registered physiotherapists with 2,308 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 31 March 1997 there were 2,310 registered occupational therapists, with 1,189 holding annual practising certificates.

Dietitians. The Dietitians Board is constituted under the Dietitians Act 1950. The post-graduate 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 31 March 1997 there were 920 registered dietitians with 340 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.

At 31 March 1997 there were 636 registered optometrists with 407 holding annual practising certificates and 107 registered dispensing opticians with 76 holding annual practising certificates. 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.

At 31 March 1997 there were 389 registered podiatrists, with 225 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 31 March 1997 there were 303 registered chiropractors of whom 180 held annual practising certificates.

Pharmacists. The Pharmacy Act 1970 provides for the registration of pharmacists. All pharmacists must be members of the Pharmaceutical Society of New Zealand. The society provides the combined function of a registration board, including discipline, and the functions of a professional body including education, establishing standards, and caring for public interests. The society also acts as the Registering Authority for pharmacies under the provisions of the Pharmacy Registration Regulations 1975.

Entry to the profession is via a four-year degree course at the University of Otago plus a formal one-year post-graduate training programme that must be completed before registration is granted. Reciprocal recognition of qualifications exists between New Zealand, the States of Australia, the United Kingdom and Eire.

In December 1996 there were 3,638 pharmacists on the register. At the same time there were 1,041 registered pharmacies (1,053 in August 1995).

Pharmacy Technicians may receive a National Certificate jointly awarded by the NZ Qualifications Authority and the society.

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.

At 31 March 1997 there were 2,468 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, Massey University and Auckland Institute of Technology offer a Bachelor of Medical Laboratory Science. At 31 March 1997 there were 2,428 registered medical laboratory technologists, with 1,302 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. The Central Institute of Technology, Heretaunga, has a three-year diploma course for dental technicians.

For the 1996–97 year 140 dental technicians and 127 clinical dental technicians held annual practising certificates.

8.2 Subsidies for health services

General Practitioner subsidies

Regional health authorities subsidise the cost of general practitioner visits for most New Zealanders, through payment of a patient subsidy (either for each individual consultation, or as a bulk funding payment) to cover part of the cost of GP services. Doctors receive the remainder of their fees from patients directly.

Subsidies are higher for low income families (who are issued a Community Services Card) or people who have a higher need for services (who are issued a High Use Health Card).

Ex-All Black Dr M N Paewae during a consultation at his practice in Kaikohe, 1949.

The subsidy for children aged under six is due to increase from 1 July 1997, to enable GPs to provide free services to this group. Prior to 1 July 1997 the subsidy for children aged under five was $25 for card holders and $15 for non-card holders. The subsidy for children aged over six will remain unchanged, at $20 for card holders, and $15 for non-card holders. Adult card holders will continue to receive a subsidy of $15.

There is also a higher subsidy paid to GPs in some rural areas, and an immunisation benefit to cover the cost of vaccinations for children under 16.

Health Benefits Limited (HBL) was established in July 1993 by the four Regional Health Authorities (RHAs). Its role is to make Government subsidy payments to health professionals, to provide information on these events, and to monitor those payments to ensure that taxpayer money is being appropriately spent. This applies to all primary care-based transactions subsidised by the government, such as visits to the doctor, pharmaceutical prescriptions, and maternity or immunisation services. The company handles some $1.2 billion of payments on behalf of the RHAs with some 24 million items in pharmacy payments alone.

HBL has changed its systems and approaches in a number of areas since its inception to meet the RHAs‘ changing relationships with its providers. The introduction of audit and investigation activities has had a profound effect on claiming patterns and raised public awareness about these activities.

HBL has an office in Wellington, with two separate operating divisions. Its Wanganui Centre processes all pharmaceutical claims, while the Christchurch Centre processes all claims for medical and medically-related services.

HBL also provides valuable information to the RHAs, providers and other appropriate agencies about patterns of spending on health, prescription costs and medicines usage, health trends and claiming patterns.

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.

Prescriptions for children aged under six are fully subsidised. Other card holders pay $3 for prescription items. For non card holders, adults pay up to $15 per item, and children over six pay up to $10 per item. 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. Pharmaceutical Management Agency Ltd, is a Crown agency set up in 1993 as a limited liability not-for-profit company, owned equally by the four Regional Health Authorities (RHAs), to manage the country's Pharmaceutical Schedule. This is the list, updated monthly and reprinted three times a year, of almost 3,000 subsidised prescription drugs and related products available in New Zealand. The Schedule also records the price of each drug, the subsidy it receives from public funds, and the guidelines or conditions under which it may be prescribed. Last year 62 new products were added to the Schedule (72 in 1995).

The RHAs spent $694 million on pharmaceutical subsidies in the year to June 1996 ($674 million in 1995). From 1 May 1996 RHAs introduced monthly dispensing to reduce the amount of unused, unwanted and expired drugs in the medicine cabinets of New Zealand homes.

With a staff of 15, PHARMAC undertakes comprehensive pharmacoeconomic reviews of all products under the various therapeutic groups. It aims to improve the value for money of public funding of prescription drugs, using three strategies to balance patient needs and costs: price competition, improved targeting, and risk sharing. The annual increase in pharmaceutical costs is now down to 2 percent a year (5 percent in 1995, about 10 percent in 1993) although growth is expected to revive through 1996–97.

GOVERNMENT FUNDING OF ACCESS TO PHARMACEUTICALS
Annual subsidised pharmaceutical expenditure, not adjusted for inflation

Concern over the rising cost of drugs (the volume of drugs consumed is rising faster than their price is falling), and the problem of competing claims for resources, led PHARMAC to jointly sponsor the visit to New Zealand of a leading overseas medical ethicist, with the hope of stimulating a debate in which doctors, consumer groups, drug companies, politicians and the media will seek to agree on how priorities for health care might be set.

PHARMAC faces several court actions from pharmaceutical companies, and has itself challenged patent extension applications. Costs associated with litigation amounted to $680,000 in the 1996 year, out of a total cost of $4.5 million ($2.7 million in 1995).

Subsidies for hospital treatment

In-patient treatment in public hospitals is free of charge for all New Zealanders.

From 1 July 1997 all day and out-patient hospital services will be free. Before 1 July 1997 outpatient treatment in public hospitals was free of charge for all cardholders. Those without cards paid a $16 charge for children and $31 for adults. Families paid for a maximum of five out-patient visits each year, with exemptions 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 services

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 through some hospitals, from independent midwives, voluntary organisations and groups that have a direct contract with the local RHA.

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.

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.

Table 8.2. TRENDS IN EXPENDITURE ON MAJOR HEALTH BENEFITS

ItemYear ended 30 June
1993199419951996

Note: Figures are GST inclusive (12.5 percent).

Source: Ministry of Health

$(000)
Primary service
General medical services (GMS) including motor vehicle allowance168,873170,928170,275173,382
Practice nurse and health care28,75530,33031,02032,646
Rural practice bonus3,2903,0783,2473,238
Immunisation2,7123,7642,9802,964
Maternity78,22289,61889,47894,228
Dental benefits17,11816,61616,04215,780
Sub-total298,970314,334313,042322,237
Referral services
Specialists3,0152,3962,5622,721
Laboratory114,006130,657141,082158,137
Diagnostic imaging2,2022,3662,5082,808
Sub-total119,223135,419146,152163,665
Pharmaceuticals582,931640,697674,798695,939
            Total1,001,1241,090,4501,133,9921,181,841

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.

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 public health service providers (usually 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 Group has within the Ministry of Health the functions: to monitor the state of public health and to identify public health needs; and to advise the Minister of Health on matters related to public health.

Radiation protection

Potential harm from radioactive materials and irradiating equipment is controlled by the Ministry of Health through its National Radiation Laboratory in Christchurch. The ministry issues licences under the Radiation Protection Act 1965 and publishes a regularly updated series of Codes of Practice. To protect both the public who may be exposed to irradiation and the users of radiation, the ministry also inspects and calibrates equipment and monitors radiation doses.

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, 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

Opening of the new Plunket rooms at Mount Roskill, Auckland, in December 1953.

Customs Service and the New Zealand Police have maintained the National Drug Intelligence Bureau since 1972.

Communicable disease control

A revised schedule of notifiable diseases came into effect on 1 June 1996. This revision is the most comprehensive change to the schedule since the Health Act was enacted in 1956. Under the Health Act 1956, medical practitioners are required to notify the medical officer of health of any disease they suspect or diagnose. Notification data are recorded on a computerised database installed in each public health service, and are used to guide local control measures. These data are, in turn, collated and analysed at national level by the Institute of Environmental Science and Research (ESR) Communicable Disease Centre on behalf of the Ministry of Health.

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 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, the Food Act 1981 was amended in November 1996 to recognise Food Safety Programmes based on the Hazard Analysis Critical Control Point (HACCP) system. From 1 July 1997 food producers and distributors may apply to either the Director-General of Health or the relevant Territorial Local Authority for an exemption from the Food Hygiene Regulations. For an exemption to be granted the business must have an effective Food Safety Programme which fulfils the requirement now specified in the Food Act.

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.

Recovering psychiatric patients (community care residents) in their house in Epuni, Lower Hutt, 1996.

Mental health

In June 1994 the government developed an overall strategy for mental health services in New Zealand. The strategy sets out the goals, principles and objectives for mental health services and confirmed the fundamental change in direction from a hospital-based to a community-based service, backed up with sufficient inpatient services for acute and secure care.

Since 1994 RHAs have purchased additional mental health services, in line with four of the five strategic directions of the mental health strategy, which are:

  • implementing community-based and comprehensive mental health services

  • encouraging Māori involvement in planning, developing and delivering mental health services

  • improving the quality of care

  • balancing personal rights with protection of the public.

The fifth major direction of the strategy is to develop a national policy on alcohol and other drugs. This was partly addressed in July 1996, with the release of the National Drug Policy Part I, covering tobacco and alcohol.

A stocktake of adult mental health service carried out in December 1995 showed that, compared with results of a similar stocktake in 1993, there were:

  • more hospital staff but fewer beds

  • more community residential services

  • more community mental health workers, both clinical and non-clinical

  • growth in the number of non-government sector providers of mental health services

  • general acknowledgement in the sector that there were more services than in 1993 but remaining and deepening concern about the quality of services, workforce shortages and fragmentation within the sector.

A Ministerial Inquiry, carried out by Judge Kenneth Mason, reported to the Minister of Health in May 1996. In response to the Inquiry a Mental Health Commission was set up, to evaluate and report on the implementation of the mental health strategy. Also, government provided more money for mental health, to address the following:

  • new anti-psychotic medications

  • workforce development

  • child and adolescent mental health services

  • more community services for adults

  • community attitudes to mental illness.

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 rest homes 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 Family Planning Association in various centres throughout the country. The 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.

RHAs purchase family planning advice from a range of providers, eg: individual GPs (where Community Service Card subsidies are involved), group practices, student health clinics, sexual health clinics, marae-based health services, and other providers.

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. In addition, there are private providers.

Māori health

To a large extent, the difference in health between Māori and non-Māori reflects overall differences in social and economic status, although cultural circumstances are also a factor. There is a strong correlation between the incidence of ill health and low income, high unemployment, inadequate housing and low educational achievement. Therefore, as with improvements to New Zealand health more generally, initiatives to improve Māori health through health services must be linked with the actions of other sectors (including specific Māori development strategies) that are addressing social, cultural and economic conditions.

Health and disability support services can also contribute towards improving health for Māori, who have high death rates and complications from conditions that might have been prevented by timely and effective health services (eg diabetes, rheumatic fever, asthma, vaccine-preventable diseases, ischaemic heart disease). Many causes of death and disability that can be prevented by health services require early identification of the problem and early initiation of treatment. There needs to be more agreement on specific Māori health priorities to enable focused action for improved health.

Through policies for health promotion, positive incentives can be given to Māori—as individuals and as members of whānau, hapū, iwi and other Māori community groups—to take responsibility for their own health. Active participation by Māori in the health and disability sector is occurring against a backdrop of significant Māori social and economic development. The number of Māori health providers has increased significantly since 1993 (from just on 30 to just over 200 providers). Māori are seeking greater input and involvement in policy, purchasing and provision of health through:

  • greater participation by Māori people at all levels of the health and disability sector

  • priorities for resource allocation which take account of Māori needs and perspectives

  • the development of culturally-appropriate practices and procedures as integral requirements in the purchase and provision of health and disability support services.

There needs to be a focus on improving mainstream services for Māori and encouraging specific Māori provision.

Health Department clerks with some of 40,000 cards from which 36,000 parents gave permission for their children to be inoculated against polio in 1957.

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 Māori 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 a range of issues of particular relevance to women. These issues may include contraception, sexual and reproductive health, infertility, pregnancy and childbirth services, terminations, breast cancer and cervical screening. The ministry also establishes the overall framework that determines how people, including particular population or interest groups, such as women, get access to publicly-funded services. This includes examining issues such as affordability of health care, appropriateness of services, and acceptable waiting times.

Women's health services are provided by CHEs, health professionals and a large variety of community and consumer groups. A national breast cancer screening programme is being established.

The National Cervical Screening Programme (NCSP) is overseen by the Ministry of Health. RHAs purchase locally co-ordinated and managed cervical screening services from CHEs and Māori and Pacific Islands and other 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 assists in tracking women when they move from one part of the country to another. It complements, and is a back-up to, existing general practitioner recall systems.

The NCSP aims to reduce the incidence of, and mortality and disability from, squamous cancer of the cervix. The targets set to monitor the aim are:

  • reduce the age-standardised death rate from cervical cancer from 4.2 per 100,000 women in the 1989-93 time period to below 3.5 per 100,000 by the year 2005

  • reduce the age-standardised death rate from cervical cancer from 10.6 per 100,000 Māori women in the 1989-93 time period to 7.5 per 100,000 Māori women by the year 2000; and to 5.3 per 100,000 or fewer by 2005

  • reduce the age-standardised incidence rate of cervical cancer in women from 12.0 per 100,000 women in the 1989-93 time period to below 8.6 per 100,000 by the year 2005

  • reduce the age-standardised incidence rate of cervical cancer in Māori women from 29.8 per 100,000 Māori women in the 1989-93 time period to below 11.0 per 100,000 by the year 2005

  • no more than 30 percent of invasive cervical cancers detected should be beyond Stage 1 at the time of detection by the year 2000. In 1993, 51 percent of cervical cancer registrations were recorded as detected at Stage 1 (74 percent with staging reported were detected at Stage 1 in 1993, and 31 percent had no staging information stated)

  • increase the proportion of eligible women enrolled on the National Cervical Screening Register from 18 percent in 1992 to 75 percent in 1996. To increase the proportion of eligible women enrolled and screened in the previous three years to 85 percent by the year 2000.

Breastfeeding. The Ministry of Health recommends breastfeeding as 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.

The 1991 Plunket National Child Health Study found that 89 percent of women planned before the birth to 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, 71 percent of mothers were still breastfeeding to some extent. This figure is high in comparison with other western countries.

BREASTFEEDING
Babies with any breastfeeding when first seen by Plunket

BREASTFEEDING
Proportion of mothers giving any breastfeeding, and duration, for year to 30 June 1996

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 CHEs 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 7.2 deaths per 1,000 live births in 1994. 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 CHEs. 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.

Oral polio vaccine being given in 1966.

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 Table 8.3, reflect differing usage of health services by these groups. Improving usage of primary well childcare 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 healths one of the priorities identified by the government in the policy guidelines to RHAs.

Table 8.3. CHILDREN'S PUBLICLY-FUNDED HOSPITAL DISCHARGE RATES* 1994†

PopulationAge group (years)
0-45- 9/0-/4

* Per 1,000 mean population.

As at April 1997. The public hospital dataset is subject to change as hospital records are received.

Source: New Zealand Health Information Service.

Māori370.080.961 .1
Non-Māori405.683.661 .7
            Total397.583.061.6

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 fewer than 60 percent in 1992. The strategy, which came 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 (pertussis), 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 between 1994 and 1996 rose 2.1 percent to 1,553 cigarette equivalents per adult. Doorstep surveys of 10,000 people during 1996 showed that 26 percent of

A display, designed by the Cancer Society and shown in branches of the BNZ in 1967, emphasising the 7 warning signals of cancer.

adults (25 percent of men and 26 percent of women) smoked cigarettes. For the age group 15-24 year olds, 26 percent of men and 36 percent of women regularly smoked cigarettes. Between 1995 and 1996 there was a 19 percent drop in the amount of loose tobacco released for consumption. This coincided with an increase of 39 percent in the excise on loose tobacco.

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 Māori and Pacific Islands people. It was estimated that 4,500 deaths in 1994 were due to the smoking of cigarettes, comprising 17 percent of all deaths. Over 250 deaths per year are estimated to be due to passive smoking. (See page 219 for Tobacco Consumption graph.)

Expenditure on mass media tobacco advertising reduced 80 percent after the Smoke-free Environments Act took effect in December 1990. The association of the New Zealand tobacco industry with sporting and cultural events ended in December 1995.

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

Social drinking in Wellington, 1937. A group gathered for “Christmas drinks” at the studio of the photographer, Gordon Burt.

Between 700 and 800 deaths each year are attributed to alcohol. In 1994, alcohol was a contributing factor in 38 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.

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.

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 (ie 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.

Māori 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. Māori men are more likely to be engaged in ‘intense’ physical exercise, while European men are more likely to have ‘low’ levels of physical exercise. The 1996-97 National Health Survey will give more up-to-date data on physical activity levels of New Zealanders, results will be available mid-1998. The Hillary Commission is also presently undertaking a survey on physical activity.

Dental health

New Zealand's dental health service combines a school dental service for children, dental benefits for adolescents and private practice for adults. Major hospitals also provide dental services for inpatients and other special groups. The skills of dentistry are taught at a school for dental therapists at Wellington Polytechnic and dentists at the School of Dentistry, University of Otago.

ALCOHOL AVAILABLE FOR CONSUMPTION
Per person aged 15 years and over

School Dental Service. This service works to maintain a high standard of dental health for preschool 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 1.3 per child in 1994, and 50 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. Research is undertaken by the School of Dentistry at the University of Otago. Health Research Council-funded dental research is undertaken by a number of investigators.

Fluoridation. In 1996,47 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 socioeconomic groups, Māori and children.

New Zealand Health Information Service

The New Zealand Health Information Service (NZHIS) was established as a group within the Ministry of Health in 1993. NZHIS manages the national health and disability information systems and provides the health sector, including health professionals and health managers, government, and the public, with information about health and health service provision.

The key activities of 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, clients within the health sector, and the public.

  • Overseeing and co-ordinating health information activities.

  • Providing advice and support for information to the health sector.

Some of the services offered by NZHIS are:

Information network and core information systems. NZHIS provides and manages a network of information systems and services available to health care providers throughout the country.

National minimum dataset (NMDS). The NMDS contains data on the health status of New Zealanders and the provision of health services. The information contained in this database is used to provide analyses of trends in health status, use of health services, and patterns of morbidity and mortality. The NMDS is made up of the following statistical collections: inpatients and day patients discharged from publicly- and privately-funded hospitals, admissions and discharges from mental health facilities, causes of death, and primary malignant cancer registrations (New Zealand Cancer Registry).

Health information standards. A crucial role for NZHIS is the development and monitoring of standards for information in the health sector. Work is carried out to ensure that the statistical information supplied by hospitals and other providers is of high quality, and to develop a range of suitable information technology standards covering the exchange of information in the health sector. NZHIS has also prepared privacy standards for health information.

Health workforce information. NZHIS manages databases of annual survey information for each of New Zealand's registered health professions: doctors, nurses, dentists, chiropractors, medical laboratory technologists, medical radiation technologists, optometrists, dispensing opticians, psychologists, occupational therapists, dietitians, podiatrists, and physiotherapists.

Publications. The information contained in the NMDS is analysed and presented in a series of annual reports entitled Hospital and Selected Morbidity Data (for public and private hospital discharges), Mental Health Data, Cancer: New Registrations and Deaths, Mortality and Demographic Data, and Fetal and Infant Deaths. Additional reports are also published presenting health workforce data, and data collected from health surveys and the primary health care sector.

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 Council reports.

Medical practitioners certified 83 percent of deaths registered in 1994, and 17 percent were certified by coroners. Of the deaths certified by doctors, 0.8 percent were subject to a post mortem. Overall, 9 percent of deaths were subject to a post mortem.

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 61 percent of all deaths: malignant neoplasms accounted for 26.4 percent of deaths, ischaemic heart disease for 24.4 percent of deaths, and cerebrovascular disease for 10.1 percent in 1994.

Further statistics on causes of death can be found in section 8.5: Accidents. For general health statistics see section 8.4: Hospitals.

Table 8.7. MAJOR CAUSES OF DEATH*

Cause of deathNumber of deathsRate per million of mean population
199219931994199219931994

*Further details of causes of deaths are available from New Zealand Health Information Service.

Source: Provisional data. New Zealand Health Information Service

Malignant neoplasms688170947165201320512043
Diabetes mellitus458459486134133139
Chronic rheumatic heart disease130126124383635
Hypertensive disease217281259638174
Ischaemic heart disease709868986619207619941887
Other forms of heart disease114610661122335308320
Cerebrovascular disease273427882728800806778
Diseases of arteries, arterioles and capillaries636680667186197190
Pneumonia11149991015326289289
Bronchitis, emphysema and asthma409395400120114114
Other diseases of respiratory system128913101329377379379
Peptic ulcer183164153544744
Cirrhosis of liver109124130323637
Congenital anomalies211209177626050
Conditions of perinatal mortality117122119343534
All other diseases280227542860820796816
Motor vehicle accidents656617602192178172
Suicide and self-inflicted injury493443512144128146
All other unintentional accidents and external causes569680626166198179
Total, all causes of death272522720927093797278667726

Cancer. In New Zealand, one death in four is caused by cancer. A detailed report entitled Cancer: New Registrations and Deaths is published annually by the New Zealand Health Information Service. This publication provides information about all cases of primary malignant cancer reported to the New Zealand Cancer Registry as well as information about deaths from cancer.

In 1994, 95 percent of deaths from cancer were at 45 years of age or above and 69 percent at 65 years or above. The lungs continue to be the major site in male deaths from cancer, with 7 percent of all male deaths caused by lung cancer in 1994. The breasts are the major cancer site in females, and accounted for 4 percent of all female deaths in 1994.

Table 8.8. DEATHS FROM CANCER, 1994

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: Provisional data. New Zealand Health Information Service
Under 55.32.853.52.2 
5–14103.715.293.523.7
15–24145.04.1145.29.6
25.4412023.113.719436.042.5
45–64921270.035.8894262.452.3
65 and over27601599.427.52216960.021.4
Total, all ages3833221.527.13332187.525.8

SELECTED CAUSES OF DEATH
Age-standardised rate

Table 8.9. DEATHS FROM CANCER AT SELECTED SITES, 1992-94

SiteSexNumberRates per million mean population
199219931994199219931994

*Cancer of the large bowel is an aggregation of rectum cancer and cancer of the large intestine.

Source: Provisional data. New Zealand Health Information Service

Buccal cavity and pharynxM373858222234
F14173081017
OesophagusM111140139668280
F636963363935
StomachM20117114011910081
F113104111655964
Large intestineM335329363199193210
F351378397203216229
RectumM238218228141128132
F136149161788593
Large bowel*M573547591340321342
F487527558281301322
Bronchus, trachea and lungM947892919562523531
F445444484257253280
BreastM344222
F569584567328333328
Cervix uteriF848077484645
Corpus uteriF515852293330
Ovary, fallopian tube and broad ligamentF1611881729310799
ProstateM478520517284305299
Bladder and other urinary organsM941052055662118
F4745111272662
Skin, all formsM126151145758984
F979696565554
BrainM108111110646564
F769282445246
Lymphomosarcoma and reticulum-cell sarcomaM108226513
F11313627
LeukaemiaM153149133918777
F9499124545670
All other and unspecified sitesM930976850552572491
F798876792460500446
Total cancer deathsM377138123833223722352215
F311032823332179418721875

Table 8.1. FETAL AND INFANT MORTALITY RATES, 1993*

Category of deathMāoriPacific 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

INFANT MORTALITY
Deaths of infants under 1 year

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 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 death mortality rates are calculated per 1,000 total births (late fetal deaths plus live births), while the death rates for neonatal and infant deaths are calculated per 1,000 live births.

“Rally for life” demonstrators in 1974 in Willis Street, Wellington, against any liberalisation of the abortion laws. Leading the march are (from left) Professor Liley, Dr Diana Mason, Dame Ruth Kirk, and Catholic Archbishop Delargey.

Table 8.11. INFANT MORTALITY RATES FOR SELECTED OECD COUNTRIES*

Country19841994

*Rate per 1,000 live births.

1993

Source: OECD in Figures (1996 edition)

Australia9.25.9
Austria11.46.3
Germany9.65.8†
Greece14.37.9
Iceland6.14.8†
Japan6.04.2
New Zealand11.67.3†
Portugal16.77.9
Switzerland7.15.6†
United Kingdom9.66.2

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 classification code for sudden infant death syndrome.

Table 8.12. PRINCIPAL CAUSES OF INFANT MORTALITY FOR MĀORI AND NON-MĀORI, 1994

Cause of deathMāoriNon-MāoriTotal population
Number of deathsRate per 1,000 live birthsNumber of deathsRate per 1,000 live birthsNumber of deathsRate per 1,000 live births
Source: Provisional data, New Zealand Health Information Service
Infectious and parasitic disease10.1450.1060.10
Malignant neoplasms--30.0630.05
Disease of nervous system10.14100.20110.19
Circulatory system20.2830.0650.09
Respiratory system70.99100.20170.30
Digestive system20.2810.0230.05
Congenital anomalies141.98961.911101.92
Perinatal conditions141.981042.061182.05
Sudden infant death syndrome375.25721.431091.90
Accidents, poisoning, violence—external causes70.99160.32230.40
All other causes10.1450.1060.10
            Total infant deaths8612.193256.454117.16

Maternal deaths. Direct maternal deaths totalled 2 in 1994, which is a rate of 3.5 per 100,000 live births.

Abortion. Abortion is permitted by New Zealand law in certain circumstances. The main conditions required are 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. There is no upper limit to when an abortion can be carried out in New Zealand, but the grounds are stricter when the gestation of the pregnancy is more than 20 weeks. Then, an abortion can only be done to save the life of the mother or to prevent serious, permanent injury to her physical or mental health. The Crimes Act 1961 (as amended) sets out when an abortion would be unlawful.

Table 8.13. ABORTIONS ACCORDING TO AGE GROUP

Age group19911992199319941995
Source: Abortion Supervisory Committee
11-----
124-1--
1373145
143239503937
15154134133174178
16322306288333367
17498445475508540
18592622638668714
19717725716774795
20-2434503398357539004164
25-2925922661260827872985
30-3418451869192020562158
35-3910851063114212141282
40-44300308322350390
45 and over1522242837
            Total1161311595118931283513652
Under 16 years197176185217220
Age 16-19 years21292098211722832416

Table 8.14. GROUNDS ON WHICH ABORTIONS WERE AUTHORISED

Grounds1991R1992R1993R19941995
Source: Abortion Supervisory Committee
Serious danger to physical health2114272728
Serious danger to mental health1133911363115921257213379
Combination of serious danger to physical and mental health100601117623
Substantial risk of abnormal child6685836288
Incest1-4-2
Offence under s. 131 Crimes Act--312
Woman severely subnormal113-1
Serious danger to mental health and risk of abnormal child79676595111
Serious danger to physical and mental health and substantial risk of abnormal child3-4--
Serious danger to mental health and offence under s. 131 Crimes Act111--
Danger to mental and physical health and offence under s. 131 Crimes Act-----
Serious danger to mental health and woman severely subnormal-2-1-
Other multiple grounds22-118
            Total1161311595118931283513652
Factors of alleged rape taken into account5652654837

Table 8.15. ABORTION RATES: NEW ZEALAND AND OTHER LOW FERTILITY COUNTRIES

Country*YearCrude abortion rate†General abortion rate‡

*Sources for other than New Zealand statistics are given with Table 16 in the 1996 Annual Report of the Abortion Supervisory Committee.

Per 1,000 estimated mean population.

Per 1,000 estimated mean number of women aged 15-44 years.

§Australia's statistics have been derived from figures which include only those services that qualify for Medicare Benefit and for which a claim has been processed.

||Residents only.

Includes residents of Scotland obtaining abortions in England.

United States1992-25.9
Australia§19954.218.5
Japan19903.717.0P
New Zealand19872.711.3
19883.012.7
19893.112.8
19903.313.9
19913.414.4
19923.314.2
19933.414.4
19943.615.7
19953.816.4
Sweden1994P3.7-
Denmark1994P3.416.0
Norway19943.415.7
Canada||1993P3.614.9
England and Wales||1994P3.014.6
France19902.812.6P
Scotland¶19882.19.7
Finland19942.09.4
Netherlands||1992P2.0-
Germany19931.4-

A Pro-choice (abortion) demonstration outside Parliament during the opening session, May 1977.

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 Regional health authorities (RHAs)—Northern, Midland, Central and Southern—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: Subsidies for health services). The Crown Companies Monitoring and Advisory Unit is responsible for monitoring the performance of CHEs.

Public hospital patients

In 1996, there was a total of 368 hospitals in New Zealand; 119 of these were public hospitals and 249 private. The total number of hospital beds in 1996 totalled 22,488, 15,270 of which were in public hospitals and 7,218 in private hospitals.

Table 8.16. HOSPITALS AND HOSPITAL BEDS, 1993-96

 Year
1993199419951996
Source: Licensing Section. Ministry of Health
Number of hospitals
Private hospitals200205207249
CHE hospitals109131138119
Number of beds
Private hospitals7149788172187218
CHE hospitals15897162951555515270

Table 8.17. AGE AND SEX OF INPATIENTS DISCHARGED FROM PUBLIC HOSPITALS, 1995

Age group (years)MalesFemalesTotal
Source: Provisional data, New Zealand Health Information Service
0-4521564399896154
5-98145608514230
10-146550557312123
15-1974121424321655
20-2486562692535581
25-2981423376541907
30-3477283164339371
35-3971511728624437
40-447086978716873
45-497847859816445
50-548028779515823
55-599129796517094
60-6411522913020652
65-69154391184027279
70-74160741405530129
75-79134581437827836
80-84101561345323609
85+69141247819392
            Total211593288997500590
            Total, in 1994206694279756486450

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 8.18 shows the principal diseases and injuries treated in public hospitals in 1995, together with average stay (in days), and conditions as a percentage of total cases treated. The disease headings are the 50 disease group categories of the International Classification of Diseases. The table reports only the principal condition for which the patient was admitted, regardless of other diseases which were present or which developed during the stay in hospital.

Length of stay in public hospitals. The average length of stay in public hospitals in 1995 was 6.9 days. The disease groups with the longest average stays were psychoses (46.9 days), other diseases of the central nervous system (39.1 days) and cerebrovascular disease (20.7 days).

Injury cases. During 1995 the three largest categories of hospitalisations for injury came under the headings ‘accidental falls’, ‘surgical and medical complications and misadventures’, and ‘motor vehicle accidents’. More than one-quarter of the people hospitalised for injuries had been injured in a fall.

Table 8.18. DISEASES AND CONDITIONS TREATED IN PUBLIC HOSPITALS (INCLUDING RE-ADMISSIONS, EXCLUDING DAY CASES) DURING 1995

Disease groupTotal discharges or deaths in public hospitalsPercentage of all casesAverage stay (days)

*Includes carcinoma in-situ and malignant neoplasms of lymphatic and haematopoietic tissue.

Includes neoplasms of uncertain behaviour and neoplasms of unspecified nature.

Includes diseases of veins and lymphatics.

§ Excludes treatments in psychiatric hospitals.

Source: Provisional data. New Zealand Health Information Service

Infectious and parasitic diseases (except tuberculosis)104602.14.1
Tuberculosis3530.114.6
Malignant neoplasms*224304.59.4
Benign neoplasms†38480.85.7
Disorders of the thyroid gland4370.15.5
Diabetes mellitus27890.69.7
Other endocrine, nutritional, metabolic and immunity disorders24220.57.8
Diseases of blood and blood-forming organs36410.75.1
Psychoses§54161.146.9
Other mental disorders§35450.713.4
Disorders of eye and adnexa58021.22.3
Diseases of ear and mastoid process32060.62.3
Other disorders of central nervous system53251.139.1
Acute rheumatic fever and chronic rheumatic heart disease5490.115.4
Ischaemic heart disease195023.97.0
Hypertensive disease and other forms of heart disease144122.98.1
Cerebrovascular disease89191.820.7
Diseases of arteries, arterioles and capillaries43420.98.6
Other disease of the circulatory system‡35710.77.1
Acute respiratory infections and influenza74711.52.8
Pneumonia86051.77.8
Chronic obstructive pulmonary disease154183.15.5
Chronic disease of tonsils and adenoids30900.61.3
Other respiratory disease65961.35.2
Disease of oral cavity, salivary glands and jaws13920.33.1
Oesophagus, stomach and duodenum disease44110.95.9
Appendicitis39480.83.7
Hernia of abdominal cavity34650.73.1
Non-infective enteritis and colitis31230.65.9
Other digestive system disease155203.16.1
Other diseases of urinary system84461.75.5
Male genital organ diseases35990.73.9
Breast and inflammatory pelvic organs26010.52.7
Other female genital tract66711.33.7
Pregnancy and complications of childbirth, excl. abortion6784413.63.6
Pregnancy with abortive outcome57131.11.8
Skin and subcutaneous tissue disease82521.66.9
Arthropathies and related disorders81251.610.5
Osteopathies, chondropathies29760.69.3
Congenital anomalies51821.07.6
Perinatal conditions154813.17.8
Symptoms, signs300746.04.0
Fractures202694.08.1
Dislocations, sprains and strains of joints21930.43.9
Intracranial injury63771.35.4
Laceration and open wound79511.63.6
Burns12490.28.7
Drug, medicament, poisoning34530.73.1
All other conditions10012620.06.4
            Total5005901006.9
            All conditions 1994486450 7.5

Plastic surgeon Sally Langley performs microsurgery at Burwood Hospital in 1995, before the plastic and reconstructive unit was transferred to Christchurch Hospital as part of a rationalisation of acute services in Christchurch. The unit was established in 1942 to treat soldiers injured in World War II.

Table 8.19. INJURY CASES TREATED AS INPATIENTS IN PUBLIC HOSPITALS (INCLUDING READMISSIONS), 1995*

Cause of injuryTotal casesPercentage of all injury cases

*Year ended 31 December.

Source: Provisional data, New Zealand Health Information Service

Transport
Railway17-
Motor-vehicle traffic73259.5
Motor-vehicle non-traffic7501.0
Other road vehicles17982.3
Water2260.3
Air1440.2
Vehicle accidents not elsewhere classifiable17-
            Subtotal, transport1027713.3
Non-transport
Accidental poisoning12811.7
Accidental falls2056226.7
Surgical and medical complications and misadventures1754322.7
Other accidents1489819.3
Late effects of accidental injury28603.7
Adverse effects of drugs, medicaments, and biological substances40305.2
Suicide and self-inflicted injury30173.9
Homicide and injury purposely inflicted by other persons24413.2
Legal intervention by police21-
Injury undetermined whether accidentally or purposely inflicted2000.3
Injury resulting from operations of war5-
            Subtotal, non-transport6685886.7
            Total77135100
            Total for 199470301100.0

A fetal heart monitor in use on a woman in labour, 1975.

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 table 8.20. This table shows the number of patients discharged from, or dying in, public hospitals in 1995 after treatment for accidents at home. It only includes in-patients in public hospitals, not the large numbers of 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.

Open heart surgery at Green Lane Hospital, Auckland, in 1992.

Table 8.2. INPATIENTS IN PUBLIC HOSPITALS AFTER ACCIDENTS AT HOME, 1995

Cause of accidentTotal patients
Source: Provisional data, New Zealand Health Information Service
Accidental poisoning by:
    Drugs and medicaments576
    Petroleum products and other solvents41
    Agricultural and horticultural preparations other than plant foods or fertilisers39
    Noxious foodstuffs and poisonous plants53
    Other solid and liquid substances90
    Gases and vapours20
Accidental falls7827
Struck by falling objects95
Accidents caused by cutting and piercing instruments1501
Accidental burns791
Accidents caused by foreign bodies365
All other and unspecified accidents3304
            Total14702
            Total for 199412309

For further accident statistics, see section 8.5: Accidents.

Table 8.21. 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 Māori age-specific and age-standardised rates are calculated from single origin populations.

Source: New Zealand Health Information Service.

1988—
    Māori521048827517013190218
    Non-Māori10108222159127103151129
1989—
    Māori121794442601539192197
    Non-Māori119522515712995133124
1990—
    Māori1216549633829215637230
    Non-Māori788240213165140136142
1991—
    Māori41684703181979193208
    Non-Māori78022517412298125121
1992—
    Māori-101398293207102122164
    Non-Māori277329191138115118114
1993—
    Māori-1675103321779488190
    Non-Māori170221176124100119104

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.

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 8.22. 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 psychoses34111806271892349
Affective psychoses33224028066830
Paranoid states1642816132--
Other psychoses5772352110--
Neurotic depression and other depressive disorders1470192287--
Other neurotic disorders317203119115
Alcohol dependence or abuse150948897513
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 factors151465----
Mental retardation323286125304248
No psychiatric diagnosis1661654713120
Total14216139126113918924

Table 8.23. 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 psychoses40604393319302
Affective psychoses36437092816118
Paranoid states17271938
Other psychoses63727334519
Neurotic depression and other depressive disorders15025649299
Other neurotic disorders3221431763
Alcohol dependence or abuse161569889621
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 cases15653437210707574

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.

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 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. Legislative changes in 1996 allow ACC to exercise more discretion in matching services to claimants. This reinforces the scheme's basic principle—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. Its objective is to reduce the social, economic and physical impact of personal injury on individuals and the community by:

  • implementing effective injury prevention programmes

  • ensuring effective intervention when injury occurs to ensure appropriate treatment is received

  • working with claimants to help them, where practical, return to independent living and employment as soon as possible.

In recent years, ACC has undergone a major change of strategic direction. In its early history, the corporation focused on administering claims as swiftly and accurately as possible. Over the past few years, its focus has become more strategic. It now emphasises ensuring services are effectively delivered to injured people on the basis of need, and reducing the overall costs of accidents in New Zealand.

ACC 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. Its administrative costs represent only 10 percent of total budget (8 percent in 1995), with 90 percent (92 percent in 1995) of its budget going directly to claimants or being spent on services to claimants.

ACC is not a service provider. Rather, it contracts with a range of service providers—from medical staff to vocational trainers—to provide the resources required by injured people.

In its last financial year (to 30 June 1996) ACC received over 1.4 million new claims. About 10 percent of those (138,611) 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 129,812 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. The main resources it provides to injured people are:

  • the costs of their retrieval from the accident scene, where an ambulance or air transport is necessary

  • the costs of physical rehabilitation, including the costs of some public hospital and private hospital treatment, a contribution to the costs of “primary health care providers", such as GPs, for consultations and treatment relating to minor injury, and some contribution to the costs of travel to treatment

  • compensation for loss of earnings, taking the form of weekly payments equivalent to 80 percent of the claimant's pre-injury income for the period in which the claimant is unable to work because of the accident, with abated compensation where the injured person is able to continue some work but earnings are reduced

  • a range of “vocational" support provides injured people with retraining, which allows them to return, where possible, to their former capacity for work

  • a range of personal support designed to make living with an accident more comfortable. This support includes the payment of an independence allowance, the modification of homes and vehicles for those with lasting incapacity, and a range of care services for those unable to manage the normal routine of their daily life without help.

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 riskiness of the type of work carried out by the employer's workers. The employer's work injury record also influences the premium level. For the 1996–97 premium year employer premiums range from $1.21 on every $100 of payroll (finance and insurance) to $10.02 on every $100 of payroll (meat processing). Note the 6-cent Health and Safety in Employment levy collected on behalf of the Occupation Safety and Health (OSH) division of the Department of Labour is excluded from these rates.

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 on behalf of people who are not earning an income.

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 1996 the account had 291,753 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 $818,009,000.

The Earners‘ Account meets the cost of injuries occurring to earners outside their workplace (often injuries resulting from accidents in the home or 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 1996 the account had 400,567 new claims made against it. Those claims, together with ongoing costs of injuries from previous years, cost $254,882,000 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 workforce. This account is funded by a direct payment from the Government. In the year to 30 June 1996 it had 711,883 new claims made against it. Those claims, together with the ongoing costs of injuries from previous years, cost $167,493,000 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 1996 some 46,145 new claims were made against this account. The cost of those claims, and the ongoing cost of motor vehicle injuries from previous years, was $287,971,000.

The Subsequent Work Injury Account meets the cost of work-related claims that 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 1996 it received 179 new claims and total spending from the account was $976,000.

Table 8.24. ACCIDENT COMPENSATION CLAIMS REGISTERED BY ACCOUNT*

Account1993199419951996

*Figures are not comparable with previous years. Year ended 30 June.

Source: Accident Rehabilitation and Compensation Insurance Corporation.

(000)
Employers‘ account293266292292
Motor vehicle account45444746
Non-earners‘ account654688719712
Earners‘ account289333378401
Subsequent work injury account  0.20.2
Medical misadventure account 222.2
            Total claims1281133314391453

Table 8.25. STATEMENT OF ACTUAL FINANCIAL PERFORMANCE AND MOVEMENT IN ACCOUNT RESERVES, FOR THE YEAR ENDED 30 JUNE 1996

 19951996

*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 premiums799,643955,510
Motor vehicle account premiums281,280248,291
Non-earners‘ account premiums165,489176,618
Earners‘ account premiums228,833246,715
Subsequent work injury account premiums371976
Medical misadventure account premiums4,6997,779
Investment income49,67569,793
            Total income1,529,9901,705,682
Expenditure
Rehabilitation benefits
Vocational rehabilitation6,46310,335
Social rehabilitation86,171104,543
Primary medical treatment180,515192,044
Hospital treatment23,88425,496
Public health care costs106,938110,223
Dental treatment9,39010,718
Conveyance for treatment27,72331,582
Miscellaneous benefits5,49710,635
 446,581495,576
Compensation benefits
Income maintenance776,647820,155
Independence allowances12,34621,437
Lump sums*131,21910,952
Death benefits55,09956,513
 975,311909,057
Operating costs
Projects8,59730,242
Scheme related5,1996,004
Core operating costs121,793122,216
 135,589158,462
Other payments
Collection fees30,11230,407
Interest on borrowing3,9623,608
 34,07434,015
            Total expenditure1,591,5551,597,110
Operating surplus/(deficit)(61,565)108,572
Account reserves 1 July 1995445,878384,313
Account reserves 30 June 1996384,313492,885

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 1996 it received 2,053 new claims and had total costs of $7,779,000.

In the year to 30 June 1996 income totalled $1,706 million and total expenditure was $1,597 million. The shortfall was met from scheme reserves.

Accident compensation statistics. ACC collects a number of statistics on compensated claims. Compensated claims largely exclude injuries causing fewer 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.

ROAD DEATHS
Death rate from motor vehicle accidents

Burnside School children at a traffic training demonstration, 1964.

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 8.26. ROAD ACCIDENT CASUALTIES BY TYPE, 1995*

Classification of accidentsKilledSeriousMinorTotal

*Year ended 31 December.

Source: Land Transport Safety Authority

Overtaking or lane change42146522710
Head on (not overtaking)14451212351891
Lost control or ran off road on straight7236313651800
Lost control or ran off road while cornering15176127333645
Collision with obstruction11109553673
Rear end98911141212
At intersections or driveways—
    Vehicles moving in same direction, one turning14107831952
    Vehicles crossing paths, not turning2320612571486
    Vehicles crossing paths, one turning101669651141
    Vehicles merging347223273
    Vehicles moving in opposite directions, one turning right1821513201553
Vehicles manoeuvring8105769882
Pedestrian crossing road45247635927
Pedestrian—other204493157
Miscellaneous1236102150
            Total58231531371717452

THE ROAD TOLL
Numbers killed

Table 8.27. AGE OF PERSONS KILLED AND INJURED IN MOTOR ACCIDENTS

Age groups (years)Killed†Injured
199319941995199319941995

*Year ended 31 December.

Killed immediately or died within 30 days of accident.

Source: Land Transport Safety Authority

Under 5222417272306298
5-981220446461490
10-149915672761715
15-19976483285132153169
20-2411095100275230062984
25-29727373166418181879
30-34465152126414341470
35-3937412995610381174
40-44453831773815892
45-49202832634684752
50-54103223468510556
55-59111316327397425
60-6491011329347293
65-691598307337331
70-74222017238282265
75-79221712195247230
80 and over182619214224255
Unknown age271824747718692
            Total600580582151081660016870

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.

ROAD ACCIDENTS
Contributing factors by percentage, 1995

Table 8.28. ROAD USERS KILLED AND INJURED IN ROAD MOTOR ACCIDENTS, 1995*

Type of casualtyKilledSerious injuryMinor injuryTotal

*Year ended 31 December.

Source: Land Transport Safety Authority

Driver of—
    Car200110764397746
    Taxi-34649
    Van38149750937
    Truck954237300
    Bus-11213
    Motorcycle664559241445
    Other241622
    Unknown----
Passenger of—
    Car14170531954041
    Taxi-22931
    Van14119434567
    Truck4216893
    Bus1124861
    Motorcycle1245115172
    Other81312
    Unknown----
Cyclist15149664828
Pedestrian713257281124
Other and unknown11911
            Total58231531371717452

Table 8.29. 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
199072921.317698516.1537.4
199165018.816766486.0504.8
199264618.516121462.5481.0
199360017.015108428.6445.6
199458016.216600464.1487.2
199558215.916870468.1487.5

Table 8.3. INTERNATIONAL COMPARISONS: MOTOR ACCIDENT DEATH RATES

CountryYearPersons killedPersons killed per 10,000 population*Persons killed per 100,000 vehicles*

Note: Data is for countries that contribute data to the International Road Traffic and Accident Database.

Source: Land Transport Safety Authority

New Zealand199458016.22.5
Australia1994193710.91.8
United Kingdom199438076.51.5
USA19944067615.62.1
Japan19941276810.21.8
Canada1994326011.11.8
Germany1994981412.12.1
Sweden19945896.71.4
France1994901915.63.2

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 24 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. It is funded by the Lottery Grants Board and through sponsorship by organisations such as the Lotteries Commission.

The council ensures that water safety needs of the community are met both by funding its member organisations, and through the provision of key services—public education, information and statistics, research, and advice and consultancy. In 1996 the council awarded two Egarr Scholarships for post-graduate research into areas of water safety.

The council continues to support and fund water safety education programmes. In August 1996, the council, Swimming Education NZ, and Royal Life Saving Society NZ launched Lotto SwimSafe—a new learn-to-swim and personal survival programme. This replaces the previous programmes and has been written to fit the new health and physical education curriculum requirements. The skills taught are the base for a lifetime of fun and safety in the water, especially important in a country where aquatic sports such as boating, surfing and fishing are enjoyed by so many people.

New entrants and J1 pupils from St Theresa's School, Riccarton, Christchurch, take part in a Trust Bank-sponsored beach safety programme for children in Canterbury, Nelson and Marlborough, 1996.

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 1996, Lotto Take the Plunge, developed with the assistance of VicSwim in Australia, involved 10,000 participants, 1,000 instructors, and 180 swimming pools nationwide.

The drowning figures for 1996 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 8.31. DROWNINGS

ActivityYear ended 31 December
1990*1991R*1992R*1993R1994R1995R1996P

*Revised figures for 1990-93 have been confirmed against coroners‘ reports.

Source: New Zealand Water Safety Council

Recreational
Boating31152235122417
Surf sports21-1111
Whitewater sports314-521
Recreational fishing6117121188
Underwater sports9977111220
Swimming27187132022-
Other recreational3233686
            Total recreational81575071667753
Non-recreational
Immersion accidents41303125332231
Road vehicles9221518162415
Other transport11-12--
Commercial fishing467103319
Other commercial-2-2-51
Rescuing others4452-11
Suicides and homicides1424192413189
Miscellaneous213114-
            Total non-recreational75908083687776
            Total drownings156147134154134154129

General accident statistics

In both 1993 and 1994, accidents, poisonings and violence caused 6 percent of total deaths.

Accidental falls. There were 234 deaths due to accidental falls in 1994. While females have a higher mortality rate over the age of 75 years, the total male mortality rate from accidental falls exceeds the female rate.

Accidents, poisoning and violence. In 1994 males accounted for 69 percent of all deaths from accidents, poisoning and violence. Males aged 15 to 24 years recorded the most accidents for any particular age group, with motor vehicle accidents being the most common cause of death.

Table 8.32. DEATHS FROM EXTERNAL CAUSES*

Deaths from external causes199219931994
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: Provisional data, New Zealand Health Information Service

Motor vehicle crashes656191.89617178.38602171.66
Other transport accidents†5716.679527.476719.11
Accidental poisoning174.97236.65185.13
Accidental falls22666.1123267.0723466.73
Accidents caused by machinery185.27185.20195.42
Accidents caused by fire and explosion of combustible material329.363510.12267.41
Accidents caused by firearms102.9330.8741.14
Accidental drowning and suffocation‡9527.799326.8910931.08
Suicide and self-inflicted injury493144.21443128.08512146.00
Homicide8223.995114.747019.96
All other external causes12536.5613037.587922.53
            Total deaths from accidents, poisoning or violence1811529.751740503.051740496.16

Table 8.33. DEATHS FROM LEADING EXTERNAL CAUSES BY SEX AND AGE, 1994*

Age group (in years)Motor vehicle accidentsAccidental drowningsAccidental poisoningsAccidental falls
MFMFMFMF

*Registered during calendar year.

Source: Provisional data, New Zealand Health Information Service

0-142916971-41
15-2412448131-264
25-341052721-1-6-
35-445927911-62
45-54392183--42
55-64181151--62
65-7420146---1510
75 and over2519-21249117
            All ages41918371154496138
Age group (in years)Suicide and self-inflicted injuryHomicideAll other causes of accidentsAll accidents, poisonings and violence
MFMFMFMF
0-14525823127646
15-2411126492110279100
25-34932312323926162
35-4459116229216945
45-5443168420212248
55-644265-1969526
65-743410111368941
75 and over229111617114167
            All ages4091034228164641205535

Table 8.34. SITES OF FATAL NON-TRANSPORT ACCIDENTS,* 1992-94

Place of occurrenceNumber of accidentsRate per million of mean population
199219931994†199219931994†

*Excludes surgical and medical misadventure and later complications, and late effects of injuries.

Due to changes in the coding of the place of death, 1994 data is not comparable to earlier years.

Source: Provisional data, New Zealand Health Information Service

Home (including home premises and vicinity and any non-institutional place of residence)1501575674445162
Farm (including buildings and land under cultivation, excluding farm and home premises)18520516
Mine and quarry31-1--
Industrial places and premises111211333
Places for recreation and sport141014434
Street and highway9532319
Public building121220436
Residential institution (resthomes, hospitals, etc.)655295191527
Other specified place8373158242145
Place not specified9765136281939
Total4623921053135113300

Sites of fatal non-transport accidents. In 1994, 54 percent of fatal non-transport accidents occurred in the home (53 percent in 1993).

Table 8.35. DEATHS OF PRE-SCHOOL CHILDREN FROM ACCIDENTS AND VIOLENCE,* 1994

Cause of deathSexAge (in years)Total
1234

*Registered during calendar year.

Source: Provisional data, New Zealand Health Information Service

DrowningM11226
F1--12
Motor vehicle accidentsM452213
F32218
HomicideM1---1
F2-1-3
All other external causesM433212
F1-1-2
            Subtotal, male 1097632
            Subtotal, female724215
            Total171111847
            Total, 1993201731454

Deaths of pre-school children from accidents and violence. In 1994, New Zealand's age-specific mortality rate for children aged one to four from accidents and violence was 20.0 per 100,000. This is a decrease of 7 people from 1993, when the rate was 23.3 per 100,000 population.

Firefighters face leaping flames as they start battling the blaze that gutted Nelson's Majestic Theatre, January 1996.

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 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.

Otago Search and Rescue team members and bloodhounds look for clues at Whare Flat during a track and clue awareness exercise, 1996.

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.

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. From 31 December 1996 the commission no longer insures non-residential property. Premiums at the rate of 5 cents per $100 cover are collected by insurances 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.

Table 8.36. INCIDENTS ATTENDED BY FIRE BRIGADES

Year ended 30 June19941995
Source: NZ Fire Service
Fires
    Chimneys (no structural damage)13871203
    Derelict/demolished buildings and vehicles255279
    Grass/scrub/single trees etc.44874877
    Outside spill with ensuing fire173176
    Oven/stoves10441101
    Rubbish47084870
    Structures/buildings38443538
    Television and home appliances294348
    Trees—including forests406501
    Vehicles24912726
    Yard storage/standing crops366501
    Authorised/unauthorised burning17301818
    Fire or explosion not classified above11761530
            Total, fires2236123468
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 emergencies19041845
Other emergencies
    Animal rescue168207
    Assist police/emergency medical calls12411502
    Extrication from vehicles, lifts etc.18651839
    Hazardous condition standby807857
    Overpressure rupture with no combustion5149
    Person locked out/in146174
    Smoke odour removal176239
    Water evacuation (pump outs and floods)7391024
    Special service call21483632
            Total, other emergencies73419523
False alarms
    Good intent/justifiable37194045
    Deliberate15221821
    Alarm equipment fault880110401
    Not classified above397298
            Total, false alarms1443916565
            Total incidents attended4604551401

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.

    Ambulance and fire offices rescue a fall victim, Wellington, 1992.

  • 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 8.37. 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
Occupational skin disease114391
            Total7069251919

TOBACCO CONSUMPTION
Per person aged 15 years and over

Contributors

  • 8.1 Ministry of Health; Health Research Council; Malaghan Institute of Medical Research; 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

Ministry of Health, Health Research Council, Ministry of Health, Health and Disability Commissioner, New Zealand Aids Foundation, Family Planning Association, Children's Health Camps, Family Planning Association, Health Sponsorship Council, Water Safety Council, ACC.

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: New registrations and deaths. New Zealand Health Information Service, Ministry of Health (annual).

Fetal and Infant Deaths. New Zealand Health Information Service, Ministry of Health (annual).

Hospital and Selected Morbidity Data. New Zealand Health Information Service, Ministry of Health (annual).

Māori and Alcohol. Te Puni Kokiri and the Alcohol Advisory Council, 1995.

Mental Health Data. New Zealand Health Information Service, Ministry of Health (annual).

Mortality and Demographic Data. New Zealand Health Information Service, Ministry of Health (annual).

The Public Health: Report of the Department of Health (Parl paper E.10).

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 E.28).

Report of the Alcohol Advisory Council (Parl paper E.26).

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 E.19).

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

Report of the Earthquake and War Damage Commission (Parl paper B.11).

Report of the Ministry of Transport (Parl paper F.5).

Report of the National Poisons and Hazardous Chemicals Information Centre. National Toxicology Group (annual).

Report of the New Zealand Fire Service Commission (Parl paper G.8).

Report of the Health Research Council (Parl paper E.11).

Annual Review. PHARMAC

Report of the Nursing Council of New Zealand (Parl paper E.18).

Report of the Health Sponsorship Council (Parl paper E.45).

Chapter 9. Education

University capping parade, 1995.

9.1 Administration of education

Education agencies

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.

Early Childhood Development Unit—Nga Kaitaunaki Kohungahunga. The ECDU is a government agency created in 1989 to support the early childhood education of children 0 to 5 years of age. There are 10 offices throughout New Zealand with Pakeha, Māori 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 24 programmes around the country.

Specialist Education Services—He Tohu ūmanga Mātauranga. Specialist Education Services 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 Māori (He Tokonga Whakaaro Māori).

  • 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 (ETSA). The agency is a Crown entity, established under the Education Act 1989, which reports directly to the Minister of Education through its board. Its mission statement is “skills development for work.” ETSA works through the skill New Zealand strategy with Industry Training Organisations (ITOs), employers, training providers and trainees, to raise the skill level of New Zealanders. The agency is responsible for the following training initiatives described in Chapter 14:

  • Skill New Zealand.

  • Training Opportunities Programme (TOP).

  • Skill Enhancement.

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. Eight were published in 1995–96.

During the year ended June 1996 ERO made 1,427 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 $14.79 million in the year ended June 1996. 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: library@ero.govt.nz. The world wide web address is: www.ero.govt.nz.

ERO has a Māori unit which is responsible for issuing reports on Māori education in kohanga reo, kura kaupapa Māori, and Māori 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 publishing company that specialises in producing 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.

The NZ School Journal King's Birthday and Empire Day Number (above), June 1921. Below, a Russell Clark illustration on the cover of the Journal for September 1949.

LML has been a commercial 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.

  • Such well-known publications 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 Te Ata Hapara, a course of books and tapes for teachers learning Māori.

  • Pacific Islands resources in Samoan, Tongan, Cook Islands Māori, Niuean, and Tokelauan, distributed to schools throughout New Zealand and the Pacific region.

  • The New Zealand Education Gazette, the Ministry of Education's national information periodical for teachers.

It also provides publishing services for public and private sector clients wishing to develop and distribute materials for schools and early childhood centres. Recent clients include the Reserve Bank, Telecom NZ, the Accident Compensation Corporation, the Electoral Commission, Curriculum Corporation (Australia), and Creative New Zealand.

LML develops and publishes its own titles for sale to New Zealand schools and for export.

The Ministry of Education pays for materials to be issued either free, or at a small charge, to schools. The public may purchase personal copies of most items at a normal retail price.

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 65,000 registered teachers. Teachers are issued with a practising certificate valid for three years. From 1997 renewal of the practising certificate will depend on a teacher demonstrating that they are still a satisfactory teacher. The names of teachers who have their registration cancelled are circulated to teacher employers.

The board is funded from the practising certificate fees paid by teachers.

Teacher registration is compulsory for teachers employed in all kindergartens, private and state schools. Teachers who do not meet registration requirements can be temporarily employed with a limited authority to teach, which must be renewed annually.

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.

School transport in rural New Zealand.

Other educational bodies

New Zealand Council for Educational Research—Te Rūnanga o Aotearoa mō te Whakawā i te Mātauranga. See separate article.

Māori 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.

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 Māori 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 Māori speech competitions (Ngā Manu Kōrero), for secondary school students. These competitions are unique in that they allow Māori students to participate in both the Māori and English languages. Taonga are awarded that give both the successful student and their school considerable mana. Non-Māori New Zealanders may participate in the Māori language section.

The trust was set up to assist all Māori 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, Māori and non-Māori, who care about education.

Front cover of Te Pukeko i roto i Kihini (also available as Pukeko in the kitchen), written by Ruth Corrin, illustrated by Gus Hunter, published by Learning Media Limited for the Ministry of Education in 1995.

More recently the trust has developed some pilot initiatives under a programme called Whakamana Whanau. These programmes are aimed at improving educational opportunities for Māori students in primary and secondary schools. Some of these programmes have included Te Reo Māori, Maths, Science, Co-operative Reading, Learning to learn and a Young Māori writers course. A summer school for young Māori artists was held in 1996. In 1996, $422,500 was distributed for Māori education and at 30 September 1996 the trust had net assets of about $9.6 million.

Funding and administration

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 $2.31 per hour per child for children aged two years or over, and $4.61 per hour per child for under two-year-olds. For kindergartens, the rate is $2.97 per hour per child.

From 1 January 1997 chartered and licensed early childhood services are funded at a rate of $2.57 per hour per child over two years of age and $5.12 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.

In the year to June 1996 funding for Parents as First Teachers (PAFT) increased by $1.62 million to $4.65 million.

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.

EDUCATIONAL EXPENDITURE
As a percentage of GDP, 1993 Direct public expenditure for educational institutions at all levels

Education expenditure and funding

Table 9.1. GOVERNMENT EXPENDITURE ON EDUCATION*

Year ended 30 JuneEducation expensesGross Domestic ProductEducation expenses as percent of GDPTotal government expensesEducation expenses as percent of government expenses

*This table has been revised. Expenses figures from Annual Budget Statements. GDP from Statistics New Zealand.

Estimated actual.

Source: Ministry of Education

 $(million)$(million)percent$(million)percent
19934,53974,4266.131,42914.4
19944,62780,2975.829,63915.6
19954,80385,8755.630,40015.8
19965,02191,0455.531,22616.1

From 1993 a salaries grant for designated management positions has been paid directly to boards of trustees. In 1997 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 Māori immersion or Māori language programmes. The level of funding depends on the level of immersion of the programme.

Result of vandalism at Strathmore School, Wellington, in 1971.

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 and to schools. 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 2,100 school bus services carried students to and from school each day in 1996.

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 1996.

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 1997 academic year, the university sector will receive a total of $653 million through EFTS bulk funding. The polytechnics will receive $399 million, and the colleges of education $49 million through EFTS bulk funding. Wananga will receive $5.75 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.

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.

The section on Compulsory schooling gives the new method of classifying students.

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.

The New Zealand school year is divided into four terms of even length. 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.

The numbers of children on regular rolls of early childhood services are given in Table 9.17 at the end of this chapter.

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.

EARLY CHILDHOOD EDUCATION
Children attending 1996

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.

Omanaia Native School, October 1902 (from the Auckland Weekly News).

Te kohanga reo. Kohanga reo, which translates to ‘language nests’, are sessional or all-day Māori language immersion early childhood institutions. Their prime aim is the maintenance of the language of the indigenous people of New Zealand, the Māori.

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 Māori; 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 in the year to June 1996 expanded to cover most regions of the country, involving some 6,000 families. Māori and Pacific Island organisations are included in those contracted to provide PAFT programmes.

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). In 1996, this was 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.

Te Aute College prefects and monitors at a gathering in front of the building, 1921.

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 Māori (Māori medium schools). Kura kaupapa Māori are state schools where teaching is in the Māori language (te reo Māori) and is based on Māori 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 (Māori language early childhood centres) in preserving and increasing the use of te reo Māori and one of the key goals is to produce students who are competent in both Māori and English.

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, funded by the Ministry of Education, and administered by an elected Board of Trustees, composed of parents, community and school representatives.

The Correspondence School provides courses for early childhood, primary, secondary and adult students. Full-time students are enrolled for a variety of reasons, including distance from other schools, a wide range of special needs, medical and psychological problems, itinerancy and suspension from other schools. In some circumstances, the school provides courses for students in other New Zealand primary and secondary schools. It also offers valuable second chance education to adult students who wish to improve their qualifications. The school also provides some services on a fee-paying basis.

The Correspondence School also educates the children of New Zealand citizens overseas, where suitable schooling is not available. This allows these students to continue to work towards New Zealand school level qualifications.

A full range of courses, including practical subjects, such as art, clothing and textiles and science, is offered.

The total school roll of 21,011 at 1 July 1996 was made up of 700 early childhood, 1,381 primary, 771 special needs, 675 individual programmes, 2,461 full-time secondary, 8,546 Schools Open Learning Service, 6,022 Adult Open Learning Service, and 455 other pupils. The staff of 555 includes 22 early childhood teachers, 85 primary teachers, 296 secondary teachers, 12 regional representatives, and 140 supervisors and non-teaching staff.

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.

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 7 (Form 1) and Year 9 (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 Māori, pangarau (Māori Mathematics in the New Zealand Curriculum) and putaiao (Māori 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.

SIXTH FORM SUBJECTS
Subjects taken by Sixth Form Certificate candidates 1995

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 choose 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 3 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.

From 1937 to 1967 a free issue of a half pint-daily ration of milk was made to children in schools. Here it is being enjoyed by two girls at Linwood Primary School, in the 1940s.

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. A B 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.

The National Qualifications Framework

The National Qualifications Framework brings together senior secondary education, industry training and tertiary education under one system. It is co-ordinated and administered by the New Zealand Qualifications Authority (NZQA).

Currently, the Framework is based on nationally agreed “standards”. These standards are like “building blocks” towards a qualification. Each standard belongs to one of eight Framework “levels”. Level 1 is comparable to entry-level learning (Year 11) while Level 8 is comparable to post-graduate degree learning.

The National Qualifications Framework has three qualifications—National Certificates, National Diplomas and degrees. National Certificates are generally earned at Levels 1, 2, 3 and 4 of the Framework. National Diplomas and degrees are generally earned at Levels 5, 6 and 7. Level 8 is regraded as post-graduate degrees.

The role of School Certificate and Bursaries examinations has yet to be decided.

Each learner receives a “Record of Learning”. It is a personalised list of the credits the learner has successfully achieved in the year. The Framework means learners can continue their studies wherever they wish—at school, university, polytechnic, a private or government training establishment, wananga, or even in the workplace. NZQA will add to a learner's Record of Learning when it has received their results from their training organisation.

Up to 30 September 1996, 110,000 learners had been ‘hooked-on’ to the Framework, and gained more than 2 million credits. There were 194 new qualifications registered, and 1,900 individual qualifications awarded.

SCHOOL QUALIFICATIONS
Highest attainment of secondary school leavers

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

19896099392.927984.318812.965452
19906131990.124433.643206.368082
19916575899.5.. 2980.566081
19926609799.6.. 2770.466374
19936448999.5.. 3490.564838
19946422399.6.. 2830.464506
19956310799.6.. 2710.463378

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
19950.419.731.314.39.29.215.9

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 9.4. SECONDARY SCHOOL LEAVERS DURING 1995, BY YEAR OF SCHOOLING AND ETHNICITY

Years in attendanceNZ European/European/PakehaMāoriPacific IslandAsianOtherTotal by genderGrand total
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemale
Source: Ministry of Education
Year 99773564720912633188138326
Year 10318200293191602637208127164491165
Year 112127141512241095322250119735452384628856731
Year 12482941001431158349043325120171567072637313445
Year 139594107711585191166186010411045170216130511480327854
Year 1413389723112361951401891222928206214983560
Year 1520429044663329293085318420738
Total1850717821494451291781174716781497343372272532656653819

Table 9.5. SECONDARY SCHOOL LEAVERS DURING 1995, BY ATTAINMENT AND ETHNICITY

Highest attainmentNZ European/European/PakehaMāoriPacific IslandAsianOtherTotal by genderGrand total
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemale

*Minimum of 3 Cs in the University Bursary Examinations.

1 or more subjects irrespective of grade awarded.

Source: Ministry of Education

University Bursary388545861712349310359659860694805559010395
Entrance qualification*13511579156195861071431512330175920623821
Higher School Certificate197020593324142132352081753434275729175674
6th Form Certificate505550551144133546661229930861877025739714422
School Certificate3548257412551271427330151816957545043139763
No formal qualifications26981968188616804963602811849695545742879744
Total1850717821494451291781174716781497343372272532656653819

Correspondence lessons collected from the mailman and finished work sent off, 1955.

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

Table 9.6. NUMBER OF EDUCATIONAL INSTITUTIONS

Type of institution199419951996

*Early Childhood Development Unit.

Includes 4 restricted composite schools.

^Counted elsewhere.

Source: Ministry of Education

Early childhood services
Kindergartens587591594
Playcentres572562557
Childcare—regular101710931174
Childcare—casual323639
Childcare—homebased100112118
Te kohanga reo (including developing centres)819774767
ECDU* funded playgroups (including unlicensed playcentres)441482496
ECDU* funded Pacific Island language groups183173178
Correspondence School^^^
            Total early childhood services375138233923
Primary schools
State primary210621022097
State intermediate147144143
Private primary and intermediate736661
 232623122301
Composite schools
State composite (Area)454851
Correspondence School111
Private schools454544
 919496
Secondary schools
State year 9-15240239239
State year 7-15585959
State year 9-15 (attached intermediate)202222
Private secondary171619
 335336339
Special schools
State special494947
Private special222
Other vote Education555
 565654
              Total number of schools280827982790
Post secondary institutions
Polytechnics252525
Colleges of education555
Universities777
Wananga222
Private Training Establishments (PTEs)768R819R781
             Total number of post secondary institutions807R858R820

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 9.7. NUMBER OF STUDENTS ENROLLED*

Type of institution1994 (revised)1995 (revised)1996

*Categories have been revised for this table. Figures for 1994 and 1995 are given in Table 9.7, 1996 Yearbook; but revised figures for Post compulsory enrolments for 1994 and 1995 are given here. Data valid at July.

1Early Childhood Development Unit.

2Includes 9 unlicensed playcentres in 1995 and 21 unlicensed playcentres in 1996.

3Students who are dually enrolled at health camps and hospital schools and at their regular school are counted on the roll of their regular school.

. . . not available

Source: Ministry of Education

Early childhood education
Kindergartens  46960
Playcentres  17596
Childcare—regular  57582
Childcare—homebased  6558
Correspondence School  993
Te kohanga reo (including developing centres)  14302
ECDU1 funded playgroups2  12564
ECDU1 funded Pacific Island Language groups  3735
 160291
Schools
Primary education year 1—8—regular classes:
    State and state integrated schools
        Full primary and contributing  367089
        Intermediate  55507
        Composite (area)  9251
        Year 7–15  9794
        Correspondence School  1265
    Private schools  12765
 455671
Secondary education year 9—15—regular classes:
    State and state-integrated schools
        Year 9–15  178494
        Composite (area)  4509
        Year 7–15  24295
        Correspondence School  3364
        Private schools  11249
 221911
Special education:
State schools attached classes  4039
State special schools3  1720
Private special schools  88
Other vote education special schools  176
 6023
Foreign fee-paying students:
State schools  4349
Private schools  423
 4772
Ministry of Foreign Affairs and Trade scholarship students:
State schools  298
Private schools  10
 308
Adults in regular classes:
State schools  8633
Private schools  7
   8640
            Total schools  697325
            Homeschooling  5151
Post compulsory
Polytechnics—formal programmes:
Full-time37083 R41273R43778
Part-time48189R51122R51568
Colleges of education—formal programmes:
Full-time6148R65506905
Part-time5769R5824R5485
Universities—formal programmes:
Full-time62113R6525668164
Part-time40177R39246R37526
Wananga:
Full-time200658 R713
Part-time7968 R121
Private training establishments....29389
 1106416

Table 9.8. EQUIVALENT FULL-TIME TEACHING POSITIONS

Type of institution199419951996
Source: Ministry of Education
Early childhood services—paid staff
Kindergartens16391636R1656
Playcentres (includes unpaid adults on duty)136814441304
Childcare—regular and casual491252045796
Childcare—homebased co-ordinators144166R182
Te kohanga reo (including developing centres).........
Correspondence School191919
Primary schools
State194441952921177
Private422459446
Composite schools
State (area)774866896
Private810833860
Secondary schools
State142741396314119
Private494509553
Special schools   
State581R571R565
Private16159
Correspondence School
Primary and secondary406R391R385
Post secondary—academic staff
Polytechnics480147894758
Colleges of education571548556
Universities441146924818
Wananga...4466
Private training establishments......2778

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. STUDENTS TO STAFF RATIOS AT STATE SCHOOLS

YearPrimary/IntermediateCompositeSecondary
Overall ratio*Classroom ratioOverall ratio*Classroom ratioOverall ratio*Classroom ratio

Primary and intermediate ratios are based on July rolls while secondary and composite ratios are based on March rolls.

*Includes management, curriculum staffing, attached teaching staff, additional staff, secondary special education staff, supernumerary staff, beginning teacher release, and teachers paid from locally-raised funds and investment income.

Source: Ministry of Education

199219.7324.8714.1417.1216.1219.1R
199320.3225.4714.1816.8615.9719.0R
199420.3725.3413.8217.1015.9819.1R
199520.6824.6314.1616.9915.6519.1R
199619.923.315.018.215.818.6

Projected student numbers. The table below gives actual 1 July rolls and projected rolls for 1997 to 2000.

Table 9.1. ACTUAL AND PROJECTED STUDENT ENROLMENTS (Medium Projection Series)

 YearEarly childhoodPrimary (Year 1–8)Secondary (Year 9–15)Tertiary (Ministry funded EFTS)

Note: Figures exclude school students in special classes and special schools

Source: Ministry of Education

Actual1991126134415632234300 
1992135732417086236804124125
1993148239422904232728131585
1994153364429246234733137224
1995159402444443231968139916
1996160291457462232424142961
Projected1997172900472900232900146164
1998182000485100236700149314
1999191900495100247200152307
2000197100503100252700152307

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 Specialist Education Services (SES), a separate government organisation which has its own board. 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.

Crown funding to the Special Education Service (as it was then named) amounted to $35.8 million for the year to June 1996, out of total revenue of $42.6 million).

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.

All Black Andrew Mehrtens helps Gilberthorpe School pupils enjoy the books given to them for the “Books in Homes” project set up by Alan Duff.

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 1995, 14,307 children took part in the programme. Seventy-three percent of state schools (including integrated schools) provide reading recovery. Nineteen percent of six-year-olds were in a reading recovery programme. A national resource of 260 full-time teacher equivalents enables classroom teachers to be trained as Reading Recovery teachers, and also provides ongoing support for Reading Recovery programmes in some schools.

Table 9.11. TEACHER TRAINEES AT 31 JULY 1996

 Auckland COEWaikato UniversityMassey Univ. COEWellington COEChch COEDunedin COEWanganui Polytech.Total

Notes: Does not include Private training establishments. Gender breakdown for approximately 50 Waikato University Students has been estimated. COE: College of Education.

Source: Ministry of Education

Male292153195187138196491210
Female11675736286286876371074427
Primary total14597268238158258331565637
Male12459373115822-431
Female264125486121529-742
Secondary total388184859237351-1173
Male1234674-36
Female368140167230176199-1280
ECE total380143171236183203-1316
Pre-service total2227105310791143138110871568126
Male44-254--37
Female5981022321--321
Specialist total63121024825--358
Total2290106510891391140610871568484

850 young singers in the Wellington Young People's Art Festival massed choir. A total of 3,400 primary school students performed in four concerts at the Michael Fowler Centre in July 1966.

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 9.12. ENROLMENTS AT TERTIARY INSTITUTIONS, AT 31 JULY 1996

 PolytechnicsColleges of EducationUniversitiesWanangaTotal
MaleFemaleTotalMaleFemaleTotalMaleFemaleTotalMaleFemaleTotalMaleFemaleTotal

Note: Table 52 in Education Statistics of New Zealand 1997 (Ministry of Education) gives breakdown of full-time and part-time students.

Source: Ministry of Education

Higher doctorate------5510---5510
Doctor of philosophy------159711242721---159711242721
Masters94554---410643058411---411543508465
Bachelors honours------108812912379437109212942386
Post graduate diplomas12522735220217237398338527835---412842968424
Post graduate certificate131730---6259121---7576151
Bachelors453098161434611543154637467445178198473130203421855489497079
Advanced diploma/graduate certificate11714326013795610932521824330376730913541663
Certificate of proficiency9479771924---220328925095---315038697019
Professional Assoc. diploma248283531---303868---278321599
National diploma571737130836103139------6078401447
New Zealand diploma338954118800178205383------356756169183
Diploma (institution awarded)36124310792216837938962122622192445433397275901447922069
Advanced Trade Certificate6115616---------6115616
NZ Certificate/Technician Cert5040947---------50409475987 
Professional Assoc. Certificate377055759345---464086---381656159431
National Certificate42843848813224749------428638958181
Advanced Certificate381216597---------381216597
Trade Certificate/ITO497712966273---------497712966273
Certificate (institution awarded)1125712822240791136187314218521273154170324119451446226407
Intermediate certificate9117481659---261440---9377621699
Introductory certificate450150489549710171191202397786163470452649968
Subsequent certificate153237390---------153237390
Licence14613159---------14613159
                Total4959252721102313229110525128165344061519114959371465836105694125230230924
Adjustment for multiple enrolments382331446967753514264179509092691128078858616664
Number of students45769495779534622161017412390492615642910569037046483497616116644214260
Total for 1995            96419113578209997
Total for 1995            92738107020199758

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 9.13. TERTIARY GRADUATES IN 1995

ISCED field of study numberField of studyDoctorateMasters/HonoursPost-graduate Diploma/certificateDegreeDiplomaCertificateIntroductory CertificateSubsequent CertificateTotal
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleTotal

Source: Ministry of Education

1General programmes    11097    264033221141170311
8Literacy          4349147226  190275465
14Education  236829138167844548202982352384377188935864475
18Art, music & handicrafts 12726101710718928441526225781111  77110161787
22Humanities1697234853946831207255734562233406574  209237215813
26Religion and theology3 42 353182912    633497
30Social, behavioural & communication skills  248668140144342901962531357110318  68924393128
34Commercial & business3150125667342919211613900916666178610029214134778530610084
38Law  9687 1313349 183105    4925431035
42Natural and applied sciences414153151205811681001417264971159  182316033426
46Mathematics    203    5022    702595
48Computing  5135143878813610397147  319280599
50Medical & health15318351642383681108123122211128770 170628053511
52Industrial trades & crafts    145  1031311890843865186964296811694137
54Engineering  1031464383832231640 13124  8861411027
58Architectural & town planning  3525151226218036301440    362287649
62Agriculture, forestry & fishing  673872301747825064604257100208112754881763
70Transport & communication      822 72  70287693
78Service Trades    819  431257911570123229  96519432908
84Mass communication    251091547  661042125  127285412
90Sport & recreation  652926123115102922581833   521421942
92General foundation programmes          61376128  82141223
98Other programmes nec            218280  218280498
Total degrees1947816721497144414266451853327895382557676502161230522793205142696447478
Adjustment for multiple completions1346716545223274598721834366104  6789271605
Number of graduates1937516261426137913816228825927305295535873072095220122793198362603745873

GRADUATE SUBJECTS 1996

Enrolments at tertiary institutions for degrees/national diplomas

Table 9.14. UNIVERSITY STAFF EMPLOYED, 25-29 JULY 1996

DesignationFull-timePart-time staffTotal*
MaleFemaleMaleFemale

*Actual staff. Full-time equivalents for total part-time staff are: male, 483.9; female, 1,105.2.

Source: Ministry of Education

 NumberNumberNumber
Academic Staff     
Professor39641542493
Reader/Associate professor44035523530
Senior lecturer12913133931402137
Lecturer7785601451411624
Other teaching or combined teaching/research staff1862343734051198
            Total of academic staff3091118310176915982
Research only staff     
Research only staff2771457266560
Other research support staff9118556223555
            Total research only staff3683301282891115
Executive staff     
Vice-Chancellor7 1 8
Senior Academic Manager39811 58
Senior Manager831412 109
Total executive staff1292224 175
Other staff     
Technician789357421411329
Librarian and library assistant11434991298852
Student/Community Services921712999391
General staff77617971697033445
General services staff477135853161013
            Total of other staff2248280941615577030
            Grand total583643441585253714302

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.

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.

  • 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—$150 per week times the length of the course (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.

BACHELORS DEGREES

Selected degrees completed in 1995, by field of study

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 9.15. STUDENTS RECEIVING ALLOWANCES AT 31 JULY 1996

Allowance typeType of institution
Secondary schoolsPolytechnicsColleges of EducationUniversitiesWanangaPrivate institutionsTotal

Source: Ministry of Education

16–24 years—Targeted away from home21849501131102248457017177
16–24 years—Targeted at home51834404424117493238889
25+ Years—Away from home6832786324031504128471
25+ Years—At home10459884425291033
Accommodation benefit56312159244218436178147235250
Couple allowance42722819371741857
Students with dependents18018222921124392533710
Independent circumstances541310280209151623902
Earning spouse—Away from home8922878-6212
Earning spouse—At home191105564957171082770
Total allowances168029337598042437428340983271
Adjustment for more than one allowance56312159244218436178147235250
            Total students111717178353824001250193748021

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 enrolling more than 40,000 students annually. Nearly 75 percent of these students are already in paid employment and are studying part-time to enhance their career opportunities.

TERTIARY ATTENDANCE, 1996

The Open Polytechnic was established in 1946 and in 1996 celebrated its 50th anniversary as the only specialist provider of tertiary-level open or distance education. Three faculties (Commerce, Human Sciences and Physical Sciences and Technology) are based at its Lower Hutt campus, and there are regional centres in Auckland, Wellington and Christchurch. The Open Polytechnic offers more than 650 courses and programmes ranging from National Certificate through to degree level. 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 and their majors are approved by the New Zealand Qualifications Authority. 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 or other tertiary institutions.

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. The Internet site address is: www.TOPNZ.ac.nz.

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 9.16. 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..37245528909801677218960....
1989..348905318594345365202....
1990..755612783104257314528217....
1991161041722507633......45215150
19926526602358608......4556*5254
19935284721974417......48035482
19941214011654375......36754596
199513144561681391......45242295

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.

Teacher education providers

A number of institutions offer teacher training courses, including five colleges of education situated in Auckland, Palmerston North, Wellington, Christchurch and Dunedin. The Schools of Education at the University of Waikato, the University of Auckland, some polytechnics and other tertiary education institutions also offer teacher training courses.

Teacher training in early childhood education and Māori 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.

1950s Dunedin Teachers' College kindergarten students participating in practical work at the Hudson Kindergarten.

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.

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 (Māori/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 (Māori tertiary institutions) are able to provide tertiary education and training, whilst assisting the application of knowledge regarding ahuatanga Māori (Māori tradition) in accordance with tikanga Māori (Māori 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.

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 non-residential), 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.

Front cover of Ko te Nonu, published in Tokelauan for the Ministry of Education by Learning Media Limited, 1995.

COMMUNITY EDUCATION
Enrolments in 1996*

Distance education. The main agencies in the field of distance education are The Correspondence School (with 21,011 students enrolled at 1 July 1996), the Centre for University Extramural Studies of Massey University with 15,428 students enrolled in 1996, and The Open Polytechnic of New Zealand with more than 40,000 students enrolled for 1996.

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.

9.4 Māori education

Most Māori 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 Māori medium education. There is now a strong demand for Māori language education throughout the New Zealand education system.

This growth has been stimulated by the revival of te reo Māori (the Māori language). Language is at the centre of any culture and education system. The programmes developed to preserve their language have given Māori 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 (Māori language early childhood centres) and continued with kura kaupapa (Māori medium schools). Growing numbers of Māori students are also enrolled in bilingual and Māori language immersion classes in mainstream schools.

However, research continues to show that educational achievement among Māori is still of concern. While Māori 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 Māori education. Development of Māori language immersion education is being pursued through three significant areas:

  • Support for the recovery of te reo Māori as a living language.

  • Greater participation by Māori parents in education.

  • The relative merits of mainstream education and alternative structures on addressing Māori educational needs.

Increased demand for Māori immersion education has progressed from the early childhood sector to the primary, secondary and tertiary sectors as a result of the increase in Māori language immersion programmes. The exploration of alternative educational achievement among Māori 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 Māori children enrolled in early childhood education has increased from 12,516 to 29,856. In 1995 Māori enrolments in early childhood education increased by 3 percent over 1994, as compared to 4 percent overall.

In nga kohanga reo the Māori 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 Māori 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 Māori families and in 1995, 46 percent of all Māori children in early childhood education were enrolled in kohanga reo. Kindergartens are currently the second largest providers of early childhood education to Māori children, catering for some 6,415 Māori children, followed by childcare centres (5,250), playcentres (1,654) and other funded playgroups (1,959), and Correspondence School (128).

Kura Kaupapa Māori

Māori medium education in schools is rapidly expanding. In 1990 there were six officially designated kura kaupapa Māori (Māori medium schools) catering for 190 students, while in the beginning of July 1996 there were 48. In July 1995, 2,475 students attended kura kaupapa. In 1995, 410 schools other than kura kaupapa Māori were offering some form of Māori medium education. These schools catered for 25,284 Māori students or almost 18 percent of total Māori enrolments.

Table 9.17. CHILDREN ON REGULAR ROLLS OF EARLY CHILDHOOD EDUCATION SERVICES at 1 July 1996

Type of ServiceNumber of ServicesAge in yearsIncluded in total
Under 112345 and overTotalMāori descentPacific Island
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleTotalTotalTotal

Source: Ministry of Education

Licensed Early Childhood Education Services:
Kindergartens59430234864167179793475981590014883805424159228014696065442928
Playcentres55768864613711256235320832652242120681904847092168380175961557275
Childcare—regular11749378953776328772156926988592057777723622921429819277635758258662453
Childcare—homebased1183793188488188428037616635854803427344931096558694145
Childcare—casual (no regular roll)39                 
Correspondence School11 249372220719326420316175494449931371
Te Kohanga Reo704507407122410581780159419911815139112761488870416238132791302864
            Subtotal318725422289729164921239411607234302189527985259825914707423368735142968278265866
Developing Early Childhood Education Services:
Early Childhood Development Unit funded:
Playgroups475880809137112411718160814421387815780707462965899121951373322
Pacific Island Language Groups1782872772592573613494614644684197460191018263736373654
Unlicensed playcentres2128253326484941454327221951743698314
Developing Te Kohanga Reo63543698921351331531141068778553470102310043
            Subtotal7371249114717611616226221392097201014321313153144895483691732324973993
            Total392437913436905281081465613746255272390529417272957446148318777104160291303239859
Provisional usually resident population at 30 June 1996 5629058270583305966060740       
Percent of population on regular early childhood rolls 12.829.448.782.993.4       

Māori enrolments at the senior secondary school level have been steadily increasing over the last 10 years. A relatively high, and increasing, proportion of Māori are in their second year of form 5. Māori 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, Māori were most likely to be enrolled in polytechnics, while non-Māori were most likely to be enrolled in university. A total of 21,089 Māori were enrolled in a formal programme of tertiary education. Māori 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 Māori were enrolled in university, they were more likely to be part-time. Māori were more likely to be full-time at colleges of education and polytechnics.

Three wananga (tertiary establishments) have been established and are state funded: Te Wananga o Aotearoa in Te Awamutu, Te Wananga o Raukawa in Otaki, and Te Whare Wananga a Awanuiarangi (Whakatane) in 1977. Funding allocated to Ruakawa and Aotearoa totalled 473 equivalent full-time students for 1995. There are in excess of 10 other Māori 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 Māori participation in the tertiary sector.

Māori language education resources

The government supports targeting funds to increase teacher training in the Māori language to support the New Zealand Curriculum Framework in Māori and increase the supply of learning resources to meet the needs of Māori medium education. The government is also considering the impact of the Education for the 21st Century goals on Māori 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 Māori 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 21st Century: http://www.govt.nz/ps/min/edu/ed21

Ngā Haeata Mātauranga: Ministry of Education Annual Report and Strategic Direction for Māori 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

TeachNZ: http://www.teachnz.govt.nz

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; Māori Education Foundation; The Correspondence School, Open Polytechnic of New Zealand.

9.2-9.5 Ministry of Education.

Special articles

Learning Media Ltd, New Zealand Council for Educational Research, The Correspondence School, Asia 2000, Statistics New Zealand, State Services Commission.

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.

Māori in Education—Te Māori i Roto i Ngā 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 (1996), Annual Research Report 1995. Wellington: Ministry of Education.

Ministry of Education (1995), Changing Directions, Roles and Responsibilities 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 (1996), Ngā Haeata Mātauranga: Ten Point Plan for Māori Education. 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 E.2)

Report of the Ministry of Education (Parl paper E.1)

Report of Early Childhood Development Unit (Parl paper E.50)

Report of Education Review Office (Parl paper E.39)

Report of Education and Training Support Agency (Parl paper E.46)

Report of Career Development and Transition Education Service (Parl paper E.27)

Report of New Zealand Qualifications Authority (Parl paper E.44)

Report of the Māori Education Foundation (Parl paper E.24)

Report of the Pacific Islands Polynesian Education Foundation (Parl paper E.21)

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

Young barristers and solicitors being formally admitted to the bar in the Dunedin High Court, 1996.

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. 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.

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. A Higher Salaries Commission determination in November 1996 set these rates: Chief Justice, $224,000 plus an annual expense allowance of $7,900; Court of Appeal president, $220,000 plus $6,500 expenses; Court of Appeal judge, $205,000; High Court judge, $195,000; Master of the High Court, $156,000; Chief District Court judge, $187,000; District Court judge, $156,000; Principal Family Court judge, $168,000; Principal Youth Court and Principal Environment Court judges, $160,500; Chief Employment Court judge, $195,000; Employment Court judge, $182,000; Chief Māori Land Court judge, $174,500; Deputy chief Māori Land Court judge, $168,000; Māori Land Court judge, $156,000. High Court judges receive an annual expense allowance of $5,600, and District Court judges $4,100.

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. Sir Robin Cooke, the former President of the Court of Appeal (now Lord Cooke of Thorndon) is a present member of the judicial committee. 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. Since the 1996 general election, the government has decided to retain the present appellate structure.

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 by notice in the New Zealand Gazette dated 26 February 1991 ordered that the commercial list at Auckland 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 five Masters: Master Anne Gambrill, Master T Kennedy-Grant and Master J A Faire (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 30 June 1996.

Source: Department for Courts

Judges of the Court of Appeal:Rt Hon Sir Thomas Eichelbaum, GBE, Chief Justice of New Zealand (ex officio), Rt Hon Sir Ivor Lloyd Morgan Richardson, President of the Court of Appeal, Rt Hon Thomas Munro Gault, Rt Hon Ian Lloyd McKay, Hon John Steele Henry, Hon Edmund Walter Thomas, Hon Sir Kenneth James Keith, KBE, Hon Peter Blanchard.
Permanent Judges of the High Court:Rt Hon Sir Thomas Eichelbaum, GBE, Chief Justice of New Zealand, Hon Sir Richard Ian Barker, Hon John Hamilton Wallace, Hon David Lance Tompkins, Hon Rodney Gerald Gallen, Hon Richard Alexander Heron, Hon Anthony Arthur Travers Ellis, Hon Robert Philip Smellie, Hon Robert Andrew McGechan, Hon John Anthony Doogue, Hon Andrew Patrick Charles Tipping, Hon Noel Crossley Anderson, Hon James Bruce Robertson, Hon Robert Lloyd Fisher, Hon Daniel Paul Neazor, Hon Peter George Spenser Penlington, Hon Paul Basil Temm, Hon Robert Grant Hammond, Hon Dame Silvia Rose Cartwright, DBE, Hon David Stewart Morris, Hon John William Hansen, Hon John Hugh Williams, Hon Sian Seerpoohi Elias, Hon William David Baragwanath, Hon Lowell Patria Goddard, Hon Graham Ken Panckhurst, Hon Lester Hugh Chisolm, Hon Peter Maxwell Salmon, Hon Barry John Paterson.
Acting or Temporary Judges of the High Court:Hon Sir Graham Davis Speight, Hon Sir Alan Douglas Holland, Hon Laurence Murray Grieg, Hon Colin Campbell Fraser, Hon Robert Lindsay Kerr.

District Courts. Unlike the High Court, which is one court for New Zealand, District Courts are established as separate entities in various localities.

Harvey Wu of the NZ Chinese Association and Detective Hamish McCardle of the Police's Asian Crime Unit in Wellington, with page proofs of a Chinese-language crime prevention book.

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.

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.

Māori Land Court and Māori Appellate Court. These courts are constituted under the Te Ture Whenua Māori Act 1993 and have jurisdiction to hear matters relating to Māori 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 Māori Land Court are also judges of the Māori Appellate Court. Three or more of the judges have power to act as the Māori Appellate Court.

The Māori Land Court or the Māori 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 Māori Land Court and the Māori Appellate Court. See section 16.1, Māori land for more information.

Environment Court. This court is constituted under the Resource Management Act 1991. The court consists of not more than eight Environment Judges and at any one time any number of Environment 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 Māori Affairs. Any number of alternate Environment Judges and Deputy Environment Commissioners may hold office.

The Environment Court 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.

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, one 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 27 other mediator and/or adjudicator members, appointed from time to time by the Governor-General. The tribunal is located in Auckland, Hamilton, 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 58 part-time referees to service the 66 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 Māori 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, Māori population.

The Planning Tribunal has now been replaced by the Environment Court (see above).

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 Māori 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 jury system and alternatives to prosecution. 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 Māori 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 Māori 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 making, acceptance and implementation of treaties.

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. Advisory work 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.

    Some of New Zealand's first intake of policewomen, recruited in 1943, celebrate in 1988.

  • Wills and administration of the estates of the deceased.

  • Dissolution of partnerships and the taking of partnership accounts.

  • The sale and distribution of the proceeds of any property subject to a lien or charge.

  • Proceedings relating to mortgages, leases, sale, or partition of land, including specific performance of contract.

  • Execution of trusts, charitable or private.

  • Rectification, or setting aside, or cancellation of deeds or contracts.

  • Proceedings relating to the insolvency of individuals and companies.

  • Family law (matrimonial property, and proceedings under the Family Protection Act 1955).

  • Electoral petitions.

  • Admiralty.

  • Absconding debtors.

The High Court also issues declaratory judgments and hears appeals from the District Courts and from a number of administrative tribunals. Decisions on many civil proceedings in the High Court may be appealed to the Court of Appeal.

District Courts have jurisdiction to hear proceedings founded on contract or tort and other civil claims (including equitable claims) where the amount of 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 8 are largely funded by the Legal Services Board. They receive additional funding from a variety of sources, including city councils and lottery grants, and the amount of funding varies from centre to centre. Staff are paid out of these funds although there is a large component of voluntary assistance provided by lawyers and others.

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 nine teams: Bill of Rights Act, 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 Crown Law Office participates in an annual Summer Clerk programme and Pegasus Scholarship 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 1996, work handled by the Crown Law office included both appearances before the International Court of Justice in the French Nuclear tests case and before the Privy Council in several appeals, including one involving the powers of the Winebox Commission of Inquiry to compel witnesses to give evidence. Counsel from the office were amongst those representing the Crown in the Equiticorp trial in Auckland over 204 sitting days and the management of that case was a major project for the office. Crown Counsel have also been heavily involved in advising on the settlement negotiations for major Treaty of Waitangi claims and there has been a continuing involvement in settlement of claims by victims of the Cave Creek tragedy. The office has also given advice on the issue of retaining the right of appeal to the Privy Council.

A highlight of the year was the appointment on 1 December 1995 of the Deputy Solicitor-General, Lowell Goddard QC, to be a judge of the High Court. Her successor, Nicola Crutchley, took up her position on 1 May 1996.

A demonstration supporting victims' rights outside the Dunedin Courthouse, 1996.

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. Such offences are investigated by the Police department's Financial Intelligence Unit.

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.

CONVICTIONS, NON-TRAFFIC OFFENCES
By type of offence

Reported crime

A total of 515,809 offences were reported to the New Zealand Police for the year ended 30 June 1996, an increase of 2.4 percent from the previous year. This compared with a similar increase in reported offences of 2.4 percent for the June year 1995 and a 3.2 percent decrease for the June year 1994. The overall clearance rate for all reported offences was 42.7 percent in 1996 compared with 42.9 in 1995.

The number of reported violent offences decreased (1.3 percent) from 46,089 for the year ended 30 June 1995 to 45,484 at the same time in 1996. This compares with a 10.2 percent increase between 1994 and 1995 June years. The clearance rate for reported offences was comparable across years with 80.9 percent of violent crime cleared in 1995 and 80.4 percent cleared at the same point in 1996.

During the year ended 30 June 1996 a total of 119 homicides were reported to the police. This compares with 125 in the same period in 1995, a decrease of 4.8 percent. Within this group, reported murders increased, with 52 reported for the June 1996 year compared to 51 in 1995. The total number of robberies reported was 1,962, an increase of 4.0 percent over the previous year. Aggravated robbery increased by 4.1 percent, from 1,055 reported offences for the year ended 30 June 1995 to 1,098 for the same period in 1996. Non-aggravated robbery increased slightly (2.8 percent), with 706 offences reported for the June year 1996 compared with 687 at the same time in 1995.

Table 10.2. NATIONAL REPORTED CRIME, BY CLASS AND GROUP, FOR YEARS ENDED 30 JUNE

Crime typeReportedPercent cleared
1995199619951996
Source: New Zealand Police
Violence:
Homicide12511981.683.1
Kidnapping and abduction27025977.476.4
Robbery1,8871,96242.339.8
Grevious assaults2,1302,30582.982.8
Serious assaults17,70716,91283.882.6
Minor assaults16,15416,29481.081.3
Intimidation and threats7,7537,55382.783.0
Group assemblies638095.293.7
            Total46,08945,48480.980.3
Sexual offences:
Sexual attacks2,9553,11368.468.8
Sexual affronts88888747.250.9
Abnormal sexual relations322868.757.1
Immoral behaviour51853072.474.7
Indecent videos711100.045.4
            Total4,4004,56964.765.9
Drugs and antisocial:
Drugs (not cannabis)1,6571,42394.591.0
Drugs (cannibis only)21,47620,60892.191.9
Liquor4,7065,10396.096.9
Gaming368880.590.9
Disorder28,72029,98988.788.5
Vagrancy22525190.687.2
Family offences2,5032,53280.581.0
Children and young persons offences696776.871.6
Residential tenancies182072.285.0
            Total59,41060,08190.390.1
Dishonesty
Burglary85,00781,54516.416.2
Vehicles take/interfere52,70253,22421.021.4
Theft141,453146,59724.624.3
Receiving3,0713,73595.596.4
Fraud30,97037,33053.849.0
            Total313,203322,43125.425.5
Property damage:
Destroy property43,15143,73134.033.9
Endanger property21326164.772.7
            Total43,36443,99234.134.1
Property abuses:
Trespass16,94517,65678.576.3
Littering79968376.977.8
Animals71161761.756.4
Postal/fire/rail6,6206,66652.755.0
Firearms3,5293,65280.581.0
            Total28,60429,27472.371.6
Administrative:
Against justice6,4607,58985.584.8
Births/deaths/marriages141550.093.3
Immigration31851381.485.3
Racial6866.662.5
Against national interest87100.085.7
By-law breaches1,6821,84679.480.3
            Total8,4889,97884.184.0
            Total503,558515,80942.942.7

There were 1,230 reported sexual violation offences for the year ended 30 June 1996 (a 2.2 percent increase from the number reported in 1995) with 71.2 percent cleared. Overall, the number of reported sexual attack offences increased by 5.3 percent, with 3,113 reported offences for the year ended 30 June 1996 compared to 2,955 for the same period in 1995. The total number of reported sexual offences increased (by 3.8 percent), with 4,400 reported in 1995 and 4,569 in 1996. Of all these reported offences 65.9 percent were cleared.

For the year ended 30 June 1996 there were 1,423 reported non-cannabis drug offences, a 14.1 percent decrease from the previous year. Clearance rates decreased from 94.5 percent in 1995 to 91.0 percent for the same time period in 1996. Reported cannabis-only drug offences decreased by 4.0 percent with 20,608 reported for the year ended 30 June 1996. Of these, a total of 12,708 were cleared by way of prosecution (including those offenders apprehended and prosecuted in the youth court).

In total, reported drug and antisocial offences increased by 1.1 percent from 59,410 offences reported for the year ended 30 June 1995 to 60,081 for the same time period in 1996. The rate of clearance remained similar, with 90.3 percent cleared for the June year 1995 and 90.1 percent cleared for the year to 30 June 1996.

Reported dishonesty offences increased 2.9 percent, from 313,203 for the June year 1995 to 322,431 for the same time period in 1996. As in the previous year, this offence class accounted for the major proportion of all reported non-traffic offences (62.5 percent). Within this group, reported burglary decreased by 4.1 percent while reported receiving offences increased by 21.6 percent compared to the same time period in 1995. Vehicle taking and interference increased by 1.0 percent from 52,702 to 53,224, theft increased by 3.6 percent from 141,453 to 146,597 and fraud increased by 20.5 percent from 30,970 to 37,330 reported offences.

Of the 28 police districts, 14 reported a decrease in the number of reported non-traffic offences during the year ended 30 June 1996.

Children and young persons (ie those under 17 years of age) comprised 22.0 percent of all offenders apprehended for the year ended 30 June 1996. Furthermore, 45.4 percent of apprehended offenders were under 21 years of age. Of all those apprehended, 78.4 percent were male and 21.6 percent female. In the offence category of dishonesty, 30.6 percent of apprehended offenders were children, with 53.1 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 been increasing. The 1995 figure, 197,595 prosecutions, is the highest for ten years. Higher clearance rates by the police in the last two years, compared to earlier years in the decade, may have contributed to this trend.

The introduction of the Children, Young Persons, and Their Families (CYP&TF) Act 1989, and the nationwide expansion of the police diversion scheme in 1989 and 1990, both had a significant impact on the outcome of prosecutions. The CYP&TF Act emphasises the use of alternatives to prosecution for young offenders. The introduction of the act coincided with a large decrease in charges proved in the Youth Court. The police diversion scheme allows some first-time offenders who have committed non-serious offences, and who admit their guilt, not to have a conviction recorded against them. Offenders who are diverted usually have an initial appearance in court and, when they have complied with the conditions of the diversion scheme, have their case withdrawn or dismissed. This has contributed to a large increase in the number of charges with a “not proved” outcome during the 1990s.

A conviction is the most frequent outcome of a prosecution. Over the period 1986 to 1990, 70–71 percent of all prosecutions resulted in a conviction. This proportion was marginally smaller in the following four years, before decreasing further in 1995 to 65 percent, the lowest level in the decade. The decrease is likely to be linked to the use of the police diversion scheme.

For offences resulting in conviction, the average seriousness is considerably higher in the 1990s than in the mid 1980s. However, there has been little change in the average seriousness in recent years. The total number of convictions for violent offences in 1995 was the highest for the decade, although the increase between 1994 and 1995 was the smallest in the 1990s.

Hokitika armed Home Guardsmen hunting Stanley Graham, 1941.

CONVICTIONS
For non-traffic offences, by type of offence

Table 10.3. CONVICTIONS FOR ALL OFFENCES EXCEPT TRAFFIC OFFENCES

Offence type19881992199319941995
Source: Ministry of Justice
Violent954810680131591600316778
Other against persons34642685297732493534
Against property5219957379575005773657173
Involving drugs1289611440132651422011815
Against justice758811080122851306513555
Against good order83336246744883749307
Miscellaneous1856113875199951925416855
            Total112589113385126629131901129017

Table 10.4. CONVICTIONS FOR VIOLENT OFFENCES

Offence type19861989199319941995

Notes:

1Includes convictions for manslaughter which involved the use of a motor vehicle.

2Unlawful sexual connection was introduced by the Crimes Amendment Act (No. 3) 1995 which came into force on 1 February 1986.

3Aggravated burglary was introduced on 28 October 1986 by the Crimes Amendment Act (No. 2) 1986. A person committing burglary or breaking and entering who carries or uses a weapon may be charged with aggravated burglary.

4Includes both robbery and assault with intent to rob.

5Offences under Section 194(b) of the Crimes Act 1961. These are likely to be mostly “domestic” assaults.

6Threaten to kill or do grievous bodily harm.

Source: Ministry of Justice

Murder4124253135
Manslaughter12227382641
Attempted murder1457136
Kidnapping or abduction73517388112
Rape119134242263328
Unlawful sexual connection216150423382385
Attempted sexual violation2648867476
Indecent assault401555110611791125
Aggravated burglary3148527497
Aggravated robbery327317436442482
Robbery4233150156162209
Injuring or wounding210328312458584
Aggravated assault52276789610431207
Male assaults female56291373294741714100
Other assaults51015233582769727380
Threaten to kill or do GBH6184234412523516
Other violence699012110295
            Total79889534131591600316778

There was a considerable increase in the total number of convictions for violent sex offences (rape, unlawful sexual connection, attempted sexual violation, and indecent assault) over the ten-year period under examination. Overall, convictions for such offences more than tripled in number from 562 to 1,914, although the vast majority of this increase occurred between 1986 and 1993. Since 1993, there has been a relatively small increase in convictions for violent sex offences. Just over three-quarters (76 percent) of the violent sex offences for which the age of the victim was available involved victims under the age of 17 years. It should be noted that over a third (34 percent) of the convictions for violent sex offences in 1995 related to offences which occurred prior to 1990. The data indicates that 47 of the convictions in 1995 related to sex offences which occurred in the 1960s (or earlier for six charges), and 196 were related to sex offences which occurred in the 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 more than doubled since 1986. A large part 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” between 1990–94 is partly a reflection of a change in police practice towards arrest and prosecution of the offender when attending domestic incidents. The 1995 figure was slightly lower than the 1994 figure. The most serious category of assault, injuring or wounding, has exhibited a strong increase in convictions in the last two years after a period of relative stability in the previous five years. In 1995, there were 584 convictions for injuring or wounding, the highest number recorded in the decade. The number of convictions for aggravated assault has greatly increased through the 1990s with the number of convictions in 1995 being 131 percent higher than the number in 1986. Convictions for “other assaults” have increased considerably in the last few years after a downward trend between 1988 and 1991. The 1995 figure (7,380) is the highest in the ten-year period under examination.

SENTENCING, NON-TRAFFIC OFFENCES
By type of sentence

Table 10.5. CONVICTIONS FOR OTHER OFFENCES AGAINST THE PERSON

Offence type19861989199319941995

*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.

Source: Ministry of Justice

Incest4051474846
Other sex*297237405430386
Obstructing or resisting any official27362416209822382422
Threats and intimidation348186274351440
Other97130153182260
            Total35183020297732493534

Offences against property comprise the largest group of offences aside from traffic offences. The number of convictions for property offences has remained reasonably stable since 1992, at a higher level than in the six previous years. In both of the last two years, convictions for burglary have decreased with the 1995 figure being the second lowest recorded in the decade. The number of convictions for theft decreased in 1994 and 1995, the latter (12,797) was the lowest figure in the decade. Convictions for fraud in the last four years considerably exceeded the number of convictions in earlier years. The 1995 figure was the highest recorded in the decade. There have been fewer convictions for motor vehicle conversion in the last few years than the number in the mid-to-late 1980s. Convictions for wilful damage have increased with the 1995 figure (5,182) being the highest recorded in the decade.

The vast majority of convictions for drug offences involve cannabis. This was the case for 92 percent of drug convictions in 1995. The total number of convictions for drug offences remained quite stable between 1989 and 1992, before increasing sharply in both 1993 and 1994. The number fell again in 1995 back to the level seen in the early 1990s. The decrease in convictions in 1995 occurred only for cannabis offences and not for other drug offences.

Table 10.6. CONVICTIONS FOR PROPERTY OFFENCES

Offences type19861989199319941995

*Includes fraud, false pretences, and forgery.

Source: Ministry of Justice

Burglary79626921738469226749
Theft1477914853154561366212797
Receiving stolen goods28802513412534883129
Motor vehicle conversion43523600256426642817
Fraud*1616316430195782189422071
Arson220221187195191
Wilful damage40653859411148865182
Other31072865409540254237
            Total5352851262575005773657173

Table 10.7. CONVICTIONS FOR DRUG OFFENCES

Offences type19861989199319941995

Source: Ministry of Justice

Use cannabis76917075742273995933
Deal in cannabis20452482350342293443
Other cannabis1095998148217301472
Deal in other drug137232355381385
Other drug296259165147193
            Total1170111539132651422011815

The number of convictions for offences against the administration of justice more than doubled between 1985 and 1995, although the rate of increase has slowed in recent years. Two major contributing factors were large increases in the number of convictions for breach of periodic detention and breach of bail. Offences against good order decreased in the mid-to-late 1980s, but have increased in more recent years. The number of convictions for good order offences in 1995 was the highest recorded in the decade. Convictions for both disorderly behaviour and trespassing have increased in recent years with the 1995 figures being the highest recorded in the decade.

Male offenders accounted for 83 percent of the non-traffic cases (for which the gender of the offender was known) which resulted in conviction in 1995 and 17 percent of cases involved a female offender. Forty-eight percent of the non-traffic cases in 1995 (for which the ethnicity of the offender was known) involved Europeans, 43 percent involved Māori, 8 percent involved Pacific peoples, and 1 percent involved offenders of some other ethnicity. Twenty percent of the cases for a non-traffic offence resulting in conviction in 1995, and for which the age of the offender was known, involved a teenage offender, 48 percent involved offenders in their twenties, 22 percent involved offenders in their thirties and 10 percent involved an offender aged 40 or over.

SENTENCES
For non-traffic offences, by type of sentence

Table 10.8. CONVICTIONS FOR OFFENCES AGAINST THE ADMINISTRATION OF JUSTICE

Offences type19861989199319941995

*The offence of breach of bail was introduced on 1 August 1987 by the Summary Proceedings Act (No.2) 1987.

Source: Ministry of Justice

Breach periodic detention37194863665371217328
Breach supervision502475596714680
Breach parole51192470321194
Breach community service82104455418403
Breach of bail*-1891267029143384
Breach non-molestation order185268383440421
Escape custody470441320353424
Obstruct/pervert course of justice25459311889
Other546801645666632
            Total55809080122851306513555

Table 10.9. CONVICTIONS FOR OFFENCES AGAINST GOOD ORDER

Offence type19861989199319941995

1Possession of a knife in a public place was introduced as an offence on 28 October 1986 by the Summary Offences Amendment Act 1986. This offence was included in the category “possession of an offensive weapon.”

Source: Ministry of Justice

Riot24303-7
Unlawful assembly7632304464
Possess offensive weapon113111384117212481201
Offensive language20011059641694675
Disorderly behaviour32222646310136774296
Trespassing16211890221024042744
Other392456291307320
            Total86477497744883749307

Sentencing for non-traffic offences

There have generally been only small changes in the proportion of cases resulting in a custodial sentence over the last decade. In comparison, there have been large increases in the use of community-based sentences and large decreases in the use of monetary penalties for non-traffic offences. However, much of this change occurred between 1986 and 1991. Since 1991, the changes in sentencing have been very much smaller and the trends just described for community-based sentences and monetary penalties have reversed slightly in the last few years.

The number of cases which resulted in a custodial sentence increased between 1988 and 1993 but has dropped in the last two years. The proportion of cases involving non-traffic offences resulting in a custodial sentence increased a little from 9 percent in 1986 to 12 percent in 1990, before decreasing slightly over the 1990s. In 1994 and 1995, 10 percent of non-traffic cases resulted in a custodial sentence. The slightly lower figures in 1994 and 1995 are due, at least in part, to some prison sentences being suspended. The average length of custodial sentences (including preventive detention) imposed in cases involving non-traffic offences has increased from 9.5 months in 1986 to 14.0 months in 1995.

Only 6 percent of the non-traffic cases which resulted in a custodial sentence in 1995 involved a female offender. Māori offenders accounted for just over half (51 percent) of the cases which resulted in imprisonment in 1995 (for which the ethnicity of the offender was available), while a further 40 percent involved Europeans and 7 percent involved Pacific peoples. Cases involving offenders in their twenties accounted for half of the cases which resulted in a custodial sentence in 1995, with a further 20 percent of cases involving teenage offenders. (It should be noted that only 73 of the 1,230 cases identified as involving a teenager and which resulted in a custodial sentence in 1995, involved 14 to 16-year-olds. The rest of these cases involved 17 to 19-year-olds.) Only 10 percent of the offenders who were given a custodial sentence in 1995 were aged 40 or more.

Table 10.1. SENTENCES FOR NON-TRAFFIC OFFENCES1

Sentence type/years ended 31 December19861989199319941995

Notes:

1Only the most serious sentence imposed is shown for cases where more than one sentence was imposed.

2Monetary penalties are fines and reparation.

3To come up for sentence if called upon or a suspended prison sentence.

4Mainly disqualification from driving and deportation orders.

5Conviction and discharge under Section 20 of the Criminal Justice Act 1985.

Source: Ministry of Justice

Custodial56215661678164406235
Periodic detention813411141145571417413074
Community programme797604810759744
Community service12812034482448584273
Supervision27983006325942604365
Monetary23964227748235592629125706
Deferment320612678331135453175
Other414540292031
Conviction and discharge521892518371840314191
            Total6266855430608486437861794

Over the last decade there has been a large increase in the use of periodic detention, although in each of the last three years the proportion of cases resulting in this sentence has fallen a little. In 1986, periodic detention was imposed for 13 percent of the cases, but by 1992 the proportion reached 26 percent. In the last three years the proportion has fallen to just over 21 percent in 1995. The number of cases which resulted in periodic detention for a non-traffic offence in 1995 was the lowest since 1991, but still 61 percent higher than the figure for 1986.

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 1986 to 1988, community service was awarded for 2–3 percent of the cases, but by 1992 the proportion had increased to a little over 8 percent. In the last three years the proportion has fallen very slightly to just under 7 percent in 1995.

The number and proportion of cases which resulted in supervision as the most serious sentence was higher in 1995 than in any previous year in the decade. In 1995, just over 7 percent of non-traffic cases resulted in supervision as the most serious sentence.

There was a marked decrease in the use of monetary penalties (fines in particular) as the most serious sentence for cases involving non-traffic offences over the ten-year period under examination. However, the number and proportion of these cases has increased a little in the last three years. Monetary penalties comprised 63 percent of all sentences imposed for non-traffic offences in 1986. The proportion dropped to 36 percent in 1992 before increasing to 42 percent in 1995.

The average length of the custodial sentences (including preventive detention) awarded for violent offences increased considerably over the decade, from an average of 16.6 months in 1986 to an average of 24.3 months in 1995. Half of this increase occurred between 1986 and 1987.

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 increased in both 1994 and 1995 to reach 7 years 1 month in 1995, the highest figure in the decade. In the period 1991 to 1993, rapists had sentences imposed of 5 years 11 months, on average. The average length of custodial sentences imposed for unlawful sexual connection in 1995 (4 years 7 months) was the highest since the offence was introduced in 1986.

Convictions and sentencing for traffic offences

Traffic offences comprised the largest single category of offences resulting in conviction for each year between 1986 and 1995. In 1995, for example, one-third of all convictions resulted from traffic offences.

There have been fewer convictions for driving offences which resulted in the death of another person each year since 1992, compared to earlier in the decade. It should be noted that a small number of people who kill a person while driving a motor vehicle will be charged with manslaughter rather than driving causing death. Convictions for driving causing injury have increased by 44 percent over the decade, with the number of convictions in 1995 being the highest recorded in the decade.

The number of convictions for driving while disqualified and driving with excess alcohol increased considerably until 1991, then decreased in both 1992 and 1993. Part of this decrease 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. Convictions for driving while disqualified decreased a little more in both 1994 and 1995. The number of convictions for driving with excess alcohol dropped further in 1994, but increased sharply in 1995 to the highest level since 1991.

Table 10.11. CONVICTIONS FOR TRAFFIC OFFENCES

Offence type/years ended 31 December19861989199319941995

*Includes cases where the offender refused to supply a blood specimen, or was convicted for driving under the influence of drink or drugs. It excludes charges in which death or injury occurred.

The decriminalisation of some minor traffic offences means that it is not possible to compare “Other traffic” or “Total” figures for different years.

Source: Ministry of Justice

Drive causing death227202115120138
Drive causing injury11141329145515101606
Driving with excess alcohol*1975326469241462269425505
Driving while disqualified655910456111011074010488
Other traffic3823372918256002470926510
            Total65886111374624175977364247

The number of cases involving traffic offence which resulted in imprisonment nearly doubled between 1986 and 1991 (from 1,234 to 2,267) and remained at the higher level in 1992 and 1993. There were a lower number of custodial sentences imposed for traffic offences in 1994 and 1995 than was the case earlier in the 1990s, probably due to the introduction of suspended prison sentences in late 1993.

There was a large increase in the number of traffic cases resulting in a community-based sentence over the ten-year period. Upon conviction, some traffic offences result in a mandatory period of disqualification from driving. The Transport Amendment Act (No. 2) 1988, which came into effect on 11 December 1988, allows a community-based sentence to be substituted for mandatory disqualification in some cases. This amendment may be associated with the particularly marked increase between 1988 and 1989 in the number of cases involving a traffic offence which resulted in a community-based sentence. The decrease in the number of traffic cases resulting in a community-based sentence after 1991 is mostly due to a decrease in convictions for serious traffic offences.

Table 10.12. SENTENCING OF TRAFFIC OFFENCES*

Sentence type/years ended 31 December19861989199319941995

*Only the most serious sentence imposed is shown for cases where more than one sentence was imposed.

Monetary penalties are fines and reparation.

To come up for sentence if called upon or a suspended prison sentence.

§ Conviction and discharge under Section 20 of the Criminal Justice Act 1985.

Because of incomplete data in the category “No sentence/costs” no cases from that category were included in totals.

Source: Ministry of Justice

Custodial12341919223918921996
Periodic detention36738265872278507710
Community programme217244367229228
Community service6772450512947874610
Supervision36671489510181087
Monetary3876666666269562679629977
Deferment2489979973
Driving disqualification371908935899915
Other-77-1-
Conviction and discharge§10683147135413571373
            Total4639684479453404357147969

A sizeable proportion of all cases sentenced to periodic detention result from traffic offences. In 1995, a total of 20,784 cases resulted in a periodic detention sentence, and 7,710 (37 percent) of these cases involved a traffic offence. The number of traffic cases awarded a sentence of periodic detention increased from 3,673 in 1986 to 10,216 in 1991, but dropped to 7,710 by 1995. Periodic detention accounted for 16 percent of the sentences imposed on traffic cases in 1995.

The number of cases involving a traffic offence which resulted in a community programme (formerly named community care) increased from 178 in 1987 to 413 in 1992, but has decreased since then. In 1995, there were 228 such cases involving traffic offences, 23 percent of all cases were awarded a sentence of community programme in 1995.

In 1995, just over half (52 percent) of the cases which resulted in a community service sentence involved a traffic offence. There was a very large increase in the number of cases which resulted in a community service sentence for a traffic offence in the late 1980s and early 1990s, but the number has dropped a little in the last three years. Community service accounted for 10 percent of the sentences imposed on traffic offenders in 1995.

In 1995, 1,087 traffic cases resulted in supervision as the most serious sentence, the highest number of traffic cases in the decade. These cases represent 20 percent of all cases sentenced to supervision as the most serious sentence in 1995.

The average length of the custodial sentences imposed in traffic cases increased between 1986 and 1990, and has remained reasonably stable (at about five months) in recent years.

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 rehabilitation.

The Department of Corrections manages all custodial and non-custodial sentences imposed by the courts on offenders. This includes prison and community-based corrections.

There are eight services and groups in the department, working together to reduce re-offending: 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

Community Corrections' purpose is to reduce re-offending by encouraging positive change in the lives of offenders, especially Māori, and by facilitating offender reparation to the community.

The service is responsible for the management of community-based sentences with an average monthly muster of 23,000. This includes periodic detention, community service, supervision, community programmes, and services to parolees, including home detention.

Information provided. The service writes around 48,000 reports annually, providing information about offenders to the judiciary to inform sentencing decisions, and to prisons to inform decisions on parole and home leave for inmates. In providing reports, probation officers gather a range of information about the offender and the circumstances of the offence. This process may include talking to the offender's family, friends, people they work with and people who know them.

Specific reports include: same day, and remand pre-sentence reports; reparation reports—addressing the issue of reparation between offender and victim; board reports—prepared prior to an inmate appearing before a district prisons board or the Parole Board; home leave reports—responding to questions from a prison about the suitability of home leave if proposed for an inmate; and community programme agreements which form the contract with a sponsor for an offender on this sentence.

Table 10.13. REPORTS ON COMMUNITY-BASED SENTENCING*

Report type199419951996

*Year to 30 June.

These figures include information relating to oral information, which was not collected prior to 1993/94.

Due to departmental restructuring these figures cover from I October 1995–30 June 1996.

Source: Department of Corrections

Remand pre-sentence reports143691528710867
Courts servicing—same day reports and oral information222642312915529
Reparation reports294434642118
Community service agreements565557439
Parole reports162319691570
Home leave reports132213521122
Special purpose reports756933

Sentences administered by Community Corrections

Community Service—While serving this sentence the offender lives at home but provides unpaid service to a community organisation. The judge can order between 20 and 200 hours to be served. The offender works in the community under the guidance of a sponsor from the organisation as well as under the supervision of a probation officer. The offender is treated as a voluntary worker. This sentence can only be imposed with the offender's consent.

In the period 1 October 1995 to 30 June 1996, 8,886 community service sentences were imposed.

Supervision—While serving this sentence, offenders report to, and are supervised, by a probation officer. They are subject to statutory conditions relating to reporting, accommodation, employment and association with others, and they may also be subject to additional conditions to address particular needs, such as counselling and attending other programmes. The sentence of supervision is rehabilitative. It can be imposed for periods ranging from six months to two years.

In the period 1 October 1995 to 30 June 1996, 7,303 supervision sentences were imposed.

Community Programme—An offender serving this sentence is placed on a community programme, sometimes run by community groups, to help change their offending behaviour. The offender may have to attend courses which will help with relationships and employment, or relating to problems such as drug or alcohol use. The offender may have to live with their sponsor for up to six months or meet them regularly for up to a year. Family and friends, or churches or cultural organisations can be involved in sponsorship. A community programme will only be ordered if the offender consents to undertake the proposed programme.

In the period 1 October 1995 to 30 June 1996, 683 community programme orders were imposed.

Periodic Detention (PD)—An offender serving a sentenced of PD lives at home but must report to a PD centre for at least one full day of community-based work each week. This is carried out in groups supervised by PD centre staff, and is unpaid. The length of a sentence can be up to 12 months.

In the period 1 October 1995 to 30 June 1996 16,522 periodic detention sentences were imposed.

Parole—Supervision is provided for offenders on parole, who have been released early from prison. Different types of parole are residential parole, home detention or parole to an habilitation centre. They are supervised by a probation officer and have to report regularly as required. On parole or residential parole, offenders have to follow rules set by the district prisons board and take courses similar to those on supervision or a community programme.

In the period 1 October 1995 to 30 June 1996, Community Corrections supervised 1,526 offenders on parole.

Table 10.14. COMMUNITY-BASED SENTENCING*

SentenceAs at 30 June
19921993199419951996

* 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.

Due to departmental restructuring these figures cover from 1 October 1995–30 June 1996.

Source: Department of Corrections

Periodic detention77607356777170716838
Community service73207134748974846783
Community programme709655623571485
Supervisions48404567576570797307
Parole16011554157411961361

Home Detention—This is a pilot programme run by Community Corrections. Detainees are inmates who have been released on parole and must stay at home unless given permission by their probation officer to leave. Detainees are allowed to leave home to go to work or to attend habilitation programmes.

In the period 1 October 1995 to 30 June 1996, 21 offenders were on home detention.

PRISON INMATES
Numbers in prison per 10,000 mean population

A Department of Corrections joinery instructor looks at one of the Museum of New Zealand collection of native land snails, now housed in a cabinet made by Rimutaka prisoners. The cabinets have 200 sliding shelves and take the prisoners about 6 weeks to make. Rimutaka inmates have been building the museum cabinets for many years. 1996.

Public Prisons Service

The aim of the Public Prisons Service is to manage inmates in a secure, safe and humane environment.

Remand facilities are provided for those charged with offences or awaiting sentencing. There are 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. Habilitation aims to give inmates the skills they need to avoid re-offending by addressing the causes of their offending and helping them reintegrate into the community.

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 10.15. Inmates with different security classifications are held at each institution. There are 15 prisons that receive remand inmates as well as sentenced inmates.

Table 10.15. 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*
Rolleston320*
Tongariro/Rangipo561
Waikeria842*
Wanganui (includes Wanganui City Prison)330*
Wellington120*
Female prisons
Arohata85*
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.

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 1996, there was an average of 4,216 sentenced inmates in prison at any one time, an increase of nearly 59 percent on the average muster during 1986 (2,654). The number of inmates remanded in custody has also increased. In 1996, the average number of remand inmates in prison at any one time was 523, an increase of 39 percent over the figure for 1985 (376 remand inmates).

Census of prison inmates. The following detailed statistics are taken from the census of inmates carried out on 23 November 1995 and published in the Ministry of Justice's Census of Prison Inmates 1995. The information was obtained directly from the prisons or extracted from the Wanganui Computer.

All prisons, except Mangaroa/Napier, had fewer than the maximum manageable number of inmates. However, by 24 November 1995 the number of inmates in Mangaroa/Napier was fewer than the maximum manageable level. In total, there were 4,131 sentenced inmates, comprised of 151 females and 3,980 males. In addition, there were 357 remand inmates within the prisons (14 female and 343 male) making a grand total of 4,448 prisoners.

Unless specified the following figures and percentages refer to sentenced inmates.

The Mount Eden Prison riot and fire. On 20 July 1965 an attempted escape led to prisoners being freed from their cells; the buildings and all combustible contents were set on fire. Armed police, warders and troops stood guard around the prison, and warning shots were fired. The 293 prisoners surrendered the next day after 33 hours of rioting, all still in custody. The gaol, built in 1872, was completely burnt out.

Age and ethnicity—in total, 396 inmates (10 percent) were under the age of 20, 1,343 inmates (33 percent) were under the age of 25 and 2,259 inmates (55 percent) were under the age of 30. Eight hundred and seven (20 percent) of inmates were 40 years or over.

Table 10.16. AGE DISTRIBUTION OF INMATES*

AgeFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

*As at 23 November 1995.

Source: Ministry of Justice

1510.730.140.1
1610.7100.3110.3
1732.0782.0812.0
18–1985.32927.33007.3
20–243019.991723.094722.9
25–293019.988622.391622.2
30–343623.860715.364315.6
35–39128.041010.342210.2
40–492415.949112.351512.5
50–5964.01964.92024.9
60+--902.3902.2
            Total151100.03980100.04131100.0

Of the female inmates whose ethnic group was known, 69 (49 percent) identified themselves as Màori only, and 54 (39 percent) identified themselves as European only. Of the male inmates whose ethnic group was known, 1,503 (45 percent) identified themselves as Màori only, and 1,299 (39 percent) as European only.

Table 10.17. MAJOR OFFENCE OF INMATES*

Major offenceFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

*As at 23 November 1995.

Source: Ministry of Justice

Violence5536.4236959.5242458.7
Other against persons10.71092.71102.7
Against property5939.179419.985320.6
Involving drugs1912.62325.82516.1
Against good order21.3330.8350.8
Traffic117.33518.83628.8
Against justice42.6611.5651.6
Miscellaneous--310.8310.8
            Total151100.03980100.04131100.0

Male Māori and Pacific people inmates were generally younger than male European inmates. Just under two-thirds (63 percent) of male Māori inmates were under 30 years old, compared with 60 percent of Pacific people inmates and 46 percent of European inmates. Thirty percent of male European inmates were 40 years or older compared with 17 percent of Pacific people inmates and 13 percent of Māori inmates.

Major offence—the census shows that 60 percent of all male inmates were imprisoned for violent crimes. The next largest group of male inmates was those imprisoned for offences against property (20 percent), followed by traffic offenders (9 percent) and then by drug offenders (6 percent). Three percent of male inmates were imprisoned for offences against the person not classified as involving violence (mainly sexual crimes not involving an assault).

Female inmates were most likely to be imprisoned for property offences (39 percent) or violent offences (36 percent). Thirteen percent of female inmates were drug offenders and 7 percent were traffic offenders.

The most common violent offences for male inmates were: rape (21 percent of male inmates sentenced for violent offences, and 13 percent of all male inmates); aggravated robbery (20 percent and 12 percent); unlawful sexual connection (12 percent and 7 percent); and injuring or wounding (11 percent and 6 percent).

The most common violent offences for female inmates were murder (27 percent of female inmates sentenced for violent offences and 10 percent of all female inmates) and aggravated robbery (20 percent and 7 percent).

Sentence length—Fifty-six (37 percent) female inmates and 908 (23 percent) male inmates were serving a sentence of up to one year. Fifteen (10 percent) female inmates and 222 (6 percent) male inmates were serving sentences of life imprisonment. Seventy-four males were serving preventive detention sentences. Excluding life and preventive detention sentences, 10 female inmates (7 percent) and 1,013 male inmates (25 percent) were serving a sentence of more than five years.

Ten female inmates and 162 male inmates were serving sentences of three months or less. The most common major offences of inmates serving for this time were burglary (35 inmates), driving while disqualified (32 inmates), breaching periodic detention (22 inmates), and driving with excess alcohol (15 inmates).

Excluding people serving life imprisonment or preventive detention, inmates serving sentences of more than five years were most commonly imprisoned for rape (370 inmates), aggravated robbery (256 inmates), unlawful sexual connection (104 inmates), manslaughter (57 inmates), and injuring or wounding (49 inmates).

Most inmates are not required to serve the entire sentence imposed.

Table 10.18. TOTAL SENTENCE LENGTH FOR INMATES*

Sentence lengthFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

*As at 23 November 1995.

Includes corrective training.

Source: Ministry of Justice

Under 3 months106.61624.11724.2
3 months and under 6 months2013.22195.52395.8
6 months and under 1 year2617.252713.255313.4
1 and under 2 years4127.268417.272517.6
2 and under 3 years1811.943711.045511.0
3 and under 5 years117.364216.165315.8
5 and under 7 years53.351012.851512.5
7 and under 10 years32.03869.73899.4
10 years and over21.31172.91192.9
Life159.92225.62375.7
Preventive detention--741.9741.8
            Total151100.03980100.04131100.0

Offending history—Forty-two percent of female inmates, and 59 percent of male inmates, had previously received a custodial sentence. Of the female inmates 68 percent, and 70 percent of the male inmates, had at least six previous convictions. Forty percent of both female and male sentenced inmates had more than 20 previous convictions.

Twenty-eight percent of female sentenced inmates and 30 percent of male sentenced inmates had previously spent less than one year in prison. A small proportion (6 percent) of female inmates, and 14 percent of male inmates, had spent at least three years in prison previously.

Table 10.19. TOTAL TIME SPENT IN PRISON ON PREVIOUS OCCASIONS*

Total time spent in prisonFemaleMale
NumberPercentNumberPercent

*As at 23 November 1995.

Source: Ministry of Justice

No previous incarcerations8858.3162740.9
Under 6 months2818.575719.0
6 months and under 1 year159.943110.8
1 and under 2 years85.33699.3
2 and under 3 years32.02486.2
3 and under 5 years64.02987.5
5 and under 7 years21.31363.4
7 and under 10 years10.7792.0
10 years and over--350.9
            Total151100.03980100.0

Classification status—where the security status was known, 56 percent of male inmates had a minimum security classification status, 39 percent were classified as suitable for medium security, and 2 percent had a maximum security classification. For female inmates where the security status was known, 81 percent had a minimum security classification status. Overall, 4 percent of sentenced inmates had not been classified at the time of the census.

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 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 service 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 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 prisons and community corrections offices and community agencies working with offenders.

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, from 1 July 1997 New Zealand is divided into four police regions, each controlled by an Assistant Commissioner. The regions are divided into 16 districts, each managed 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 1996 was 6,589 sworn personnel, including 916 women, and 1,770 non-sworn full-time equivalent positions.

Police operations

Armed offenders squads. Police maintain 17 squads of specially trained and equipped officers throughout New Zealand. During the year ended 30 June 1996, Armed offenders squads were deployed 530 times, compared with 516 in 1995.

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.

Dogs and police search for a murder weapon in Christchurch, 1965.

Search and rescue. There were 951 police-controlled search and rescue operations during the year ended 30 June 1996, which searched for and/or rescued a total of 1,431 people. Of interest was the fact that the value of vessels ‘rescued’ in marine SAR operations was $11,062,518. Land and marine SAR operations also involved many thousands of voluntary hours by, among others, members of NZ Land SAR, the Royal New Zealand Coastguard Federations and the Amateur Radio Emergency Corps.

Youth Education Service. The aim of the Police Youth Education Service (YES) is to work with young people, families, teachers and school communities to promote individual safety, leading to safer communities. The partnership between police education officers and teachers working in schools is a positive, pro-active way of achieving that aim. Currently, some 140 full-time and part-time police education officers have been appointed and are available in all police districts.

YES promotes a curriculum for schools that has four themes:

  • Crime prevention and social responsibility eg Stealing and Vandalism.

  • Drug Abuse Resistance Education, eg the DARE programmes.

  • School road safety education, eg school patrols and the Road Safe series.

  • Violence prevention, eg Keeping Ourselves Safe and Kia Kaha.

POLICE NUMBERS
Population per sworn police officer

YES subjected itself to review by the Education Review Office (ERO) during the year, with positive results. ERO considered YES to be an effective policing strategy and to have high-quality teaching programmes. Other agencies involved in evaluation of YES programmes included the University of South Australia, Florida State University and the New Zealand Council for Educational Research.

Dare to Make Change is a new DARE programme for small groups of youngsters already in trouble. DARE programmes have again proved very popular this year. More than 35,000 youngsters and their parents went through DARE programmes, proving their popularity. There are fifty local DARE societies throughout the country supporting and promoting the sensible drug use and anti violence messages of DARE.

YES receives strong support from major sponsors Telecom New Zealand, Caltex and the Lottery Grants Board, which has assisted with the development of new YES programmes that can be made available to schools at no cost.

Police dogs. A comprehensive network of police dogs and handlers is maintained throughout New Zealand. During the year ended 30 June 1996 police dogs were deployed on 32,777 incidents. There were 93 general purpose operational and dual purpose dogs (dual purpose dogs are trained to locate narcotics), 8 narcotic dogs, 3 explosive detector dogs, and 1 firearm detecting dog. In addition there were 14 trainee dog handlers, giving a total strength of 115 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 1996 there were 233 community constables spread over all five police regions.

Police helmet leaflets which were posted to households to encourage participation in 1993 Neighbourhood Week.

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 offences attributed to children and young persons in the year to 30 June 1996, 10,798 were finalised by way of warning, 25,483 by youth aid alternative action, 4,565 were prosecuted in the youth court, and 3,464 referred for a family group conference.

Youth aid staff throughout the country as at 30 June 1996 totalled approximately 130 full-time and 39 part-time members. Each full-time officer attended, on average, 27 family group conferences during the year.

Community Support Groups. There were 18,142 community support groups throughout New Zealand as at 30 June 1996, and 77 victim support groups.

National Drug Intelligence Bureau. For the year ended 30 June 1996 there was a total of 22,031 drug offences reported, of which 91.9 percent were cleared. In the year to June 1996, search without warrant powers were exercised in 4,009 cases, resulting in 3,432 seizures (85.6 percent).

Table 10.2. DRUG SEIZURES BY SUBSTANCE

Substance1992-931993-941994-95*1995-96*

*Year ended 30 June.

Source: New Zealand Police

Heroin (grams)2191103230673
Heroin (millilitres)78435129382
Cocaine (grams)62803108993
Opium (grams)1273718668
Morphine (grams)2431532
Morphine (millilitres)244910329471760
Analgesics (tabs)94031397911505468
LSD (tabs)2345625945182308655
Psilocybine (grams)3162407133861733
Psilocybine (mushrooms)10079188832022682
Amphetamine (grams)16371538331
Methamphetamine (grams)837182101199
Cannabis plant (number)306573220011355663268586
Cannabis leaf (grams)578888765263863985482617
Cannabis oil (grams)242625964138393067
Cannabis resin (grams)73726707064391301

Reported offences. A summary of offences reported to the police for the year ended 30 June 1996 can be found at the beginning of section 10.2, Criminal justice.

Traffic Camera Office. A speed camera programme was introduced by the New Zealand Police in 1993; the first full fiscal 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 51 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. Land Transport Safety Authority research indicates a reduction in the number of fatal and serious crashes of approximately 23 percent at urban camera sites and 11 percent at rural camera sites.

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 1996, 2,635 complaints were received from 1,804 individual complainants (1,650 in 1995). Of these, 191 complaints were withdrawn, refused, not pursued or the authority had no jurisdiction, leaving 2,444 accepted for investigation. Two were partially sustained; 55 were dealt with under section 13 of the Police Complaints Authority Act; 186 conciliated; 106 sustained; and 401 were not sustained, leaving 1,694 current as at 30 June 1996.

Contributors

10.1 Department for Courts; Department of Labour; Ministry of Justice; Law Commission; Legal Services Board; Crown Law Office.

10.2 New Zealand Police; Department for Courts; Ministry of Justice.

10.3 Department of Corrections; Ministry of Justice.

10.4 New Zealand Police; Police Complaints Authority.

Special articles

International Commission of Jurists (New Zealand); Lay Observers; Legal Services Board; Ministry of Justice; New Zealand Council of Victim Support Groups; Department of Prime Minister and Cabinet; New Zealand Police; Auckland Women Lawyers' Association.

Further information

Conviction and Sentencing of Offenders in New Zealand: 1985 to 1994. Ministry of Justice.

Census of Prison Inmates 1995. Ministry of Justice.

Changes to the Seriousness of Offending and in the Pattern of Sentencing: 1979 to 1988. Department of Justice.

Escape pressures—inside views of the reasons for prison escapes. Department of Corrections and Ministry of Justice, June 1996.

In the interests of justice: An evaluation of criminal legal aid in New Zealand. Legal Services Board, 1995.

New Zealand Crime Prevention Strategy. Department of the Prime Minister and Cabinet, October 1994.

New Zealand Now: Crime and New Zealand Now: Crime, Tables. Statistics New Zealand, August 1996.

Psychiatric Morbidity in Prisons: An investigation of the prevalence of psychiatric disorders among New Zealand prisoners. Department of Corrections, December 1995.

Rarangi rauemi: A catalogue of resources for law-related education. Legal Services Board, 2nd ed., 1995

Review of the Corrland Service of the Department of Corrections. Deloittes, July 1996.

Review of the Psychological Service. KPMG May 1996.

Report of the Department of Corrections (Parl paper E.61).

Report of the Department for Courts (Parl paper E.60).

Report of the Ministry of Justice (Parl paper E.5).

Report of the Law Commission (Parl paper E.31).

Report of the Legal Services Board (Parl paper E.7).

Report of the New Zealand Judiciary.

Report of the New Zealand Police (Parl paper G.6).

Report of the Parole Board (Parl paper E.5a).

Report of the Police Complaints Authority (Parl paper G.51)

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

Pupils from Palmerston North Central School provide their opinions to questionmaster Bob Irvine for the 2ZA programme Junior Angle, 1953. Panels and quizzes (such as Quiz Kids) were very popular on radio until TV took over.

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 Corporation 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 Māori 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 (NZ On Air) 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 Māori 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 1995–96, NZ On Air spent $44.9m on the production of television programmes; $22. 1m on National Radio, Concert FM and access radio services; and $11.5m on Māori broadcasting. It also spent $3.3m on remote television and radio coverage, $1.8m on New Zealand music projects and $1.0m on broadcasting archives.

Ian Mune during filming of Pukemanu, 1971.

Broadcasting standards. The Broadcasting Standards Authority (BSA) is a Crown entity 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 1996, the authority issued 171 decisions on formal complaints (144 in 1995). Of these complaints, almost 40 percent alleged a breach of balance, fairness and accuracy. The second largest area of complaint, again nearly 40 percent, alleged a breach of good taste and decency. Of the decisions issued, 78 percent related to television and 22 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.

Election broadcasting. Under the Broadcasting Amendment Act 1996, the Electoral Commission is responsible for the allocation to political parties of free broadcasting time and funding of party political advertising broadcast before an election.

Māori broadcasting. Under the Radiocommunications Act 1989, frequencies suitable for radio and television were reserved throughout New Zealand for the promotion of Māori language and culture.

Prior to the 1988–89 broadcasting reforms, one iwi-based radio station (Wellington's Te Upoko i te Ika) had been broadcasting continuously. There are now 24 iwi-based radio stations broadcasting.

After 1989, NZ On Air provided public funding for the operating and capital costs of Māori radio stations, and for the production of Māori programmes to broadcast on network television. The Broadcasting Amendment Act 1993 established a new Māori broadcasting funding agency, Te Reo Whakapuaki Irirangi (now known as Te Māngai Pāho). On 1 January 1995, Te Māngai Pāho assumed primary responsibility for the allocation of public funding for Māori broadcasting, which currently includes support for Māori programming on TVNZ, iwi radio stations and some Māori radio programming available on a networked basis.

Television New Zealand Limited. The TVNZ Group operates two national channels (TV ONE and TV2), five regional stations, 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 and 76 percent audience share. Both TV ONE and TV2 broadcast 24 hours a day, seven days a week.

All the 50 most-watched programmes in 1996 were played on TV ONE or TV2 and 13 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, 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 overseas 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.

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, and maintenance to the Australian National Transmission Agency; 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 1996 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 1995 was $288.5 million (total revenue $427.4 million), up from $278.5 million in 1994. Tax-paid profit for the year to 31 December 1995 was $43 million.

TV3 Network Services Limited. TV3, New Zealand's only privately-owned free-to-air national television network, has been on air since November 1989. Headquarters are in Auckland with offices and studio facilities in Wellington and Christchurch.

From 1 April 1997 TV3 is 68 percent owned by Can West Global Communications Corporation, a Canadian communications company, with options over the remaining 32 percent owned by TV3 Network Holdings Limited.

The network is a broad-based entertainment channel which primarily targets viewers aged 18–49 with a strong emphasis on news, current affairs, sport and local programming. TV3's documentary series Inside New Zealand has won both national and international awards.

Presenters and supporters during the final frenzied moments of Telethon at Avalon, 1979.

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.

During 1995–96 TV3 added over 25 new transmitter/translator sites throughout New Zealand and by mid 1997 transmission will cover almost 98 percent of the population. In October 1996 TV3 announced the launch in 1997 of a second free-to-air channel on VHF frequency, to be called TV4, which will be entertainment-oriented aimed at viewers in major metropolitan and provincial cities.

Sky Television. New Zealand's first pay television network began broadcasting in May 1990, using scrambled UHF channels. Subscribers need a decoder and, in some cases, a dedicated UHF aerial to receive broadcasts. A satellite service accessible by all New Zealand homes has been announced; this will require a satellite dish and decoder.

SKY's UHF signal can be received by over three-quarters of New Zealand homes and there are more than 270,000 subscribing households; they pay from about $10 (for 3 channels) to $12.50 (for 5 channels) a week.

The five channels are: SKY Sport (24 hours), HBO (movies), Orange (broad-based variety entertainment, Juice music TV and Cartoon Network for children), SKY News (24 hours), and Discovery (non-fiction entertainment).

SKY is 51 per cent owned by a consortium of US companies (Ameritech, Bell Atlantic, TCI and Time Warner); 16 percent by TVNZ; and the balance by private investor groups.

Regional television services. Horizon Pacific Television, wholly owned by TVNZ, began broadcasting from four regional stations in March 1995. Canterbury Television (CTV) which began broadcasting in Christchurch in June 1991, became part of the Horizon network in December 1995.

ATV Television broadcast to the Greater Auckland area; Coast to Coast Television the Waikato/ Bay of Plenty regions; Capital Television covered Wellington; Canterbury Television covered Christchurch; and Southern Television broadcasts to Dunedin City. All five stations were standalone operations broadcasting on the UHF band.

In 1997 TVNZ announced the closing of Horizon Pacific Television, for relaunching as a youth-targeted, music content channel.

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 wholly owned by the US company United International Holdings. The original Kapiti system serves as headend for an expanding HFC (hybrid fibre-coaxial) infrastructure in the Hutt Valley and Wellington.

Following a pilot scheme for the provision of pay television services in the Auckland suburbs of New Lynn and Pakuranga, Telecom launched a broadband network in September 1996. Stage 1 involved deployment of fibre optic and coaxial cables past approximately 70,000 homes in targeted areas of Auckland and Wellington during 1996 and 1997. First Media Limited, a full subsidiary of Telecom New Zealand, is responsible for developing and marketing entertainment and information services on the network.

Table 11.1. HOURS OF LOCAL CONTENT ON NETWORK TELEVISION

YearTV OneChannel 2TV3Total

*The decrease in hours in 1993 was mainly because coverage of the Olympic Games significantly increased the hours of local content broadcast in 1992.

Source: NZ On Air

198917908901322812
1990247477210034249
19911811101612124039
1992*2526122719625715
1993*2005104217414788
19942210104117184969
19952532111313735018
19962407125514045066

Non-commercial television. In late 1996 the Ministry of Commerce announced that UHF television frequencies reserved for non-commercial use had been allocated to groups in Auckland, Christchurch and Dunedin. None of these stations is yet operational.

Radio broadcasting

Since the broadcasting reforms of 1988–89, the number of registered radio frequencies has increased substantially. At 1 July 1988 there were 47 AM and 17 FM stations broadcasting in New Zealand, 30 of which were privately owned.

In November 1996 over 180 radio stations were broadcasting separate programmes on a continuous basis. All but three (National Radio, Concert FM and the AM Network) were privately owned.

The New Zealand (formerly Mobil) Radio Awards are held annually to recognise excellence in radio.

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 20 years.

Allocation by tender/auction. Most of the remaining UHF television, FM sound radio and AM sound radio frequencies have now been tendered. Tendering is conducted on an auction 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) are accommodated where possible. Where an amendment is likely to result in an estimated increase in the value of the licence, the existing licenceholder has the option of paying 110 percent of the calculated increase in value, according to the Ministry's formula, or re-tendering the ‘varied licence’ with the licence holder having the option of matching the highest bid or receiving a predetermined percentage (up to 50 percent) of the increase in the tender price, over and above the previous tender price.

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.

Public radio. 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 standalone company, Radio New Zealand Commercial, and the new company was offered for sale.

2YA transmission masts on Mount Victoria, Wellington, 1933. One mast has now been dismantled.

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, Māori 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.

Radio New Zealand (formerly NZ Public Radio) is a Crown-owned company established in December 1995 by the Radio New Zealand Act 1995. Its functions are to provide innovative, comprehensive and independent broadcasting services of a high standard as detailed in the charter contained in the act.

Radio New Zealand consists of three radio networks: National Radio, Concert FM and the AM Network; a shortwave service. Radio New Zealand International (funded by the Ministry of Foreign Affairs and Trade); and a news service, Radio New Zealand News and Current Affairs.

National Radio focuses primarily on news and information. Broadcasting 24 hours a day the network reaches 96 percent of New Zealanders. High profile programmes include Kim Hill Nine to Noon (weekdays), Morning Report, Checkpoint, Sunday Morning and Saturday's Top o' the Morning.

Concert FM is the music and fine arts network, broadcasting fine music and spoken features including literature, drama and arts commentary. The network actively promotes the work of New Zealand composers, musicians, music organisations and artists and is an important showcase for the best of New Zealand work.

The AM Network broadcasts all sittings of Parliament from transmitters in Auckland, Wellington, Christchurch and Dunedin. Time on the network which is not required for Parliamentary broadcasts is available for lease to other broadcasters eg “Sports Roundup” each summer.

Radio New Zealand International is the country's international shortwave service, providing news and information programmes to listeners in the South Pacific 19 hours a day. RNZ International's 100 kilowatt signal is beamed to the South Pacific but can be heard by listeners as far away as Japan, North America, the Middle East and Europe.

Radio New Zealand News provides news, current affairs and rural programmes for National Radio and Concert FM. Programme and news in text form are also sold to many private clients. International news services, correspondents overseas, and reporters in several centres deliver news throughout the day, every day. News programmes, such as Morning Report, Midday Report, Rural Report, Checkpoint and Late Edition are a major news source for hundreds of thousands of New Zealanders and, through Radio New Zealand International, for many listeners overseas.

Te Reo o Aotearoa is Radio New Zealand's Auckland-based Maori and Pacific Islands unit supplying news, current affairs and feature programmes to National Radio and Radio New Zealand International. Te Reo is also responsible for Nga Taonga Korero, the Maori and Pacific Island broadcasting archives, separately funded by New Zealand On Air.

Radio New Zealand Sound Archives maintains the country's radio sound archives, funded by New Zealand On Air.

The Radio Network of New Zealand Limited. The Radio Network—formerly the government-owned Radio New Zealand Commercial—commenced operations as a private radio broadcaster on 1 August 1996. It is owned by a consortium comprising radio, newspaper and outdoor advertising group Australian Provincial Newspapers Holdings Limited, US radio and television operator Clear Channel Communications Inc., and local newspaper and publishing group Wilson & Horton Limited.

In November 1996, The Radio Network acquired Prospect Limited from its British owner, GWR Group. Prospect's 12 commercial stations include the original ‘pirate’ station Radio Hauraki, Easy Listening 98FM and the Independent Radio News and Sport bulletin service. Some of these stations will be sold as a result of the Commerce Commission decision to approve the sale of Prospect to The Radio Network.

The Radio Network is now made up of 56 radio stations including the 12 Prospect stations, The Radio Bureau, Stooges Production Studio, Radio Network Sport and Sports Roundup. Its radio stations are heavily branded in names and formats such as Newstalk ZB, Classic Hits, ZM and the community network of rural heartland stations.

The Radio Network now has one-third of the commercial radio stations in New Zealand. A commercial network links most stations for national and international news and other programmes, such as talkback and sport.

The Radio Bureau—This is The Radio Network's one-stop-shop for advertising. It manages the sale and placement of radio advertising from advertising agencies and national clients for both Radio Network stations and other private stations. The Radio Bureau 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 Radio Network stations and private clients.

Private radio broadcasters. The Ministry of Commerce estimates there are now over 180 radio stations broadcasting separate programmes on a continuous basis, compared with 64 in 1988. Following the sale of Radio New Zealand's commercial stations, all but three radio stations are now privately owned. A variety of formats is offered throughout the country including ‘classic hits’, ‘easy listening’, ‘Top 40’, ‘classic rock’, and talkback stations. From 1 October 1996 the Independent Broadcasters Association changed its name to the Radio Broadcasters Association (RBA). Based in Auckland, this represents the private companies operating independent radio stations in all metropolitan and provincial markets, including locally-operated, network and iwi stations. The RBA provides services, including a defamation insurance scheme, for 110 member radio stations. News and sports are provided to some RBA member stations by Auckland-based Independent Radio News.

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. Licences are allocated to appropriate community organisations which are responsible for ensuring that all interested groups have access to airtime on the frequencies. 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 10 access radio stations operating in New Zealand. All have been assisted by funding from NZ On Air. NZ On Air funding for access radio in 1995-96 was $1.4 million (the same as in 1994-95).

“A novel wallpaper—an interior of a backblocks home decorated with Weekly News illustrations.” From the Auckland Weekly News of 5 June 1913.

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 226,702 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 116 members which between them publish 2.3 million copies per issue. The great majority are tabloid, but six are broadsheet. Most are weekly, but about 29 are bi- or tri-weekly and 3 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. About 60 were published monthly, about 30 were published alternate months.

Table 11.2. MAGAZINE CIRCULATION

PublicationCirculationPublished
Jan-June 1995June-Dec 1996

Source: Audit Bureau of Circulations

AA Directions517991520040Alternate months
TV Guide268537260724Weekly
Woman's Day NZ221086202646Weekly
Reader's Digest (NZ Edition)150114132368Monthly
NZ Woman's Weekly132520118812Weekly
Computerworld Computer Buyer118081120968Alternate months
NZ Listener10645798304Weekly
Australian Woman's Weekly (NZ Edition)10475298276Monthly
Farm Equipment News8542085011Other
Agtrader8540684128Monthly
New Idea8359751504Weekly
Rural News8196089980Fortnightly
NZ Gardener7682276780Monthly
Tearaway7521661540Monthly
Country Wide Rural Newspapers5726219845Monthly
The Strip5521760065Monthly
Crosslink4886345489Monthly
Next4645150995Monthly
North & South4131939474Monthly
Time (NZ Edition)4099340888Weekly
NZ House & Garden3878237928Monthly
Auckland Today3645740275Alternate months
New Zealand Geographic3511230880Quarterly
Cross Country3153728052Monthly
Fashion Quarterly3143726918Quarterly
NZ Home and Building3057025020Alternate months
She & More-32506Monthly

Advertising

Advertising industry. Approximately 1,000 people are employed in advertising agencies, and 2,500 in advertising-related services. Advertising revenue also contributes to the employment of another 10,000 people in the publishing, radio and television industries.

At the end of March 1996, there were approximately 150 agencies, most of them New Zealand-owned, with the remainder (29) 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 1996.

One of the advertisements used by Statistics New Zealand for the 1996 Census. The aim of the advertisement was to promote the value of the census to the community. Statistics New Zealand in association with Logos Porter gained an international award for the census communication campaign.

Mainstream media advertising for the year ended March 1995 was approximately $1.324 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.

Table 11.3. MEDIA ADVERTISING

Medium19951996
ExpenditureShareExpenditureShare

*In 1995: Outdoor, cinemas, telemarketing. In 1996: Outdoor, cinemas, telemarketing not included.

Source: Advertising Agencies' Association of New Zealand Inc (actual media revenue).

 $(million)percent$(million)percent
Daily newspapers4123242632
Community newspapers12191209
Television4903847636
Radio1561215812
Magazines112812710
Other*151171

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 (known as the 3As) is an incorporated body representing the interests of its members on issues affecting the advertising industry and agencies. There are 41 member agencies which collectively represent about 85 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, leased line services, and local services to business users. 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, PCS (Personal Communications System) services, 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 have access to alternative services from Telecom New Zealand, Clear Communications, Telstra and Global One. There are also a number of callback operators providing international services. Both Telecom and Clear provide 0800 freephone services, and industry participants have agreed to the introduction of 0800 number portability. Local loop competition in particular niches has begun—Clear offers local telephone services in the central business districts of main centres, and Saturn has announced its intention to enter the local call market.

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.

  • Following an August 1995 discussion paper on “Vertically Integrated Natural Monopolies,” the Government in June 1996 reaffirmed, for the time being, the present regulatory regime based on the Commerce Act. However, the Government said it considered that use of the Baumol-Willig rule had potential to lessen competition in telecommunications and it would be concerned to see the rule being applied in future. [The Baumol-Willig rule provides that the incumbent should be compensated for the incremental costs of supplying access to competitors, plus the opportunity costs incurred by not restricting access to itself. It was validated by the Privy Council in the local access case between Telecom and Clear.] Concerned about the slow progress in the development of number portability, the Government requested a report on options for facilitating number portability in New Zealand.

Telephone services. New Zealand continues to have a high telephone density, with 477 main lines per 1,000 people. The telephone network provides 1.719 million main lines. The network is one of the most advanced in the world, with 99 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, Optus Pty Limited (the Australian satellite operation), Global One, Worldx Change, Voyager (Internet-based), 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 offers a GSM cellular telephone service using the TACS-A band of radio spectrum and now has 91 percent population coverage. The fourth cellular frequency, TACS-B was won in open tender in 1993 by Telstra (formerly Telecom Australia), which has 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 $5.2 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 99 percent of the total number of lines are connected to digital exchanges.

Telecom has been privately owned since September 1990 when it was purchased from the Government for $4.25 billion. The purchaser was a consortium of two leading United States telecommunications suppliers, Bell Atlantic and Ameritech, and two New Zealand companies, Fay Richwhite and Freightways. 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.

RESIDENTIAL TELEPHONE CHARGES
OECD basket comparison of annual cost, August 1996

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. In May 1996 XTRA, an Internet access, navigation and content service was launched, and after 6 months had gained more than 25,000 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 British Telecom.

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 provides local service in the central business districts of Wellington and Auckland.

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. It employs over 1,000 staff.

Telegrams. The inland and international telegram service is operated by The Telegram Company, a subsidiary of New Zealand Post. Telegrams can be lodged by freephone or at a Post Shop, and are delivered within New Zealand by courier (to addresses in 16 main centres) or by FastPost elsewhere.

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. 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.

On 1 July 1996 New Zealand Post shared their 1995-96 financial year success by giving New Zealanders the opportunity to post hand-addressed standard letters free of charge. Free Post Day highlighted the value of letter writing as a key means of communication. About 4.681 million ‘free’ letters were posted that day, giving a record daily volume carried through the system of 6.759 million items.

Parcel prices to Australia for the majority of customs parcels were reduced from 1 August 1996 under a bilateral agreement negotiated between New Zealand Post and Australia Post. On the same day CourierPost International was relaunched, offering an increased worldwide delivery network of 219 countries through an agreement with DHL Worldwide Express for all services beyond New Zealand.

Table 11.5. POSTAL OUTLETS

As at 31 March19951996

Source: New Zealand Post

Post Shops (including franchises)259288
Post Centres705683
Stamp resellers35893599
            Total45534570

Table 11.6. POSTAL DELIVERY POINTS

 Year ended 31 March
 199419951996

Source: New Zealand Post

Deliveries to—number
Households105102110792901125789
Businesses557264998253816
Private Box and Bag (including counter mail)172231182819183773
Rural Delivery109141107781128577

Table 11.7. 1996 STAMP ISSUES

DateIssueDenominations

Source: New Zealand Post

24 JanuaryRacehorses40c, 80c, $1.00, $1.20. $1.50, $1.80
21 FebruarySeashore (booklet)10 × 40c stamps
Māori craft40c, 80c, $1.00, $1.20, $1.50, $1.80
27 MarchRescue services40c, 80c, $1.00, $1.50, $1.80
Scenic definitives5c, 10c, 20c, 30c, 50c, 60c, 70c, 80c, 90c
1 MayWildlife40c, 80c, $1.00, $1.20, $1.50, $1.80
Scenic self-adhesive definitives6 × 40c stamps
5 JuneHealth45c x 2, 85c
Health (miniature sheet)$2.60
10 JulyNew Zealand Symphony Orchestra Anniversary40c, 80c
Olympics40c, 80c, $1.00, $1.50, $1.80
7 AugustCentenary of cinema40c, 80c, $1.50, $1.80
AirPost Booklet Stamps$1.00
28 AugustOlympic Gold40c
4 SeptemberChristmas40c x 3, 70c, 80c, $1.00, $1.50, $1.80
4 OctoberMMP40c
Extinct birds40c x 2, 80c, $1.00, $1.20, $1.50, $1.80
11 NovemberExtinct birds (miniature sheet)$1.80
Scenic Gardens40c, 80c, $1.00, $1.50, $1.80
FastPost booklet stamps80c

Olympic gold medal winners Danyon Loader and Blyth Tait with a large version of the celebratory Olympic Gold stamp issue.

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 Boxlink, 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 SERVICES: 1855-1996
Year*LettersAll mailPost OfficesRural box holders

*Calendar year to 1945, thereafter year ending 31 March.

Total postal deliveries to households and businesses only.

As at 1 November 1991.

§Includes all postal outlets: official post shops, post agencies, postal delivery centres, stamp retailers and stamp book outlets.

Source: NZ Post

 (000) itemsnumber
1855171....-
1860890....-
18654443....-
18705646..457-
187510428..647-
188022824..856-
188535830..1043-
189043917700001185-
189529587544871404-
190039898768021686-
1905711161224941937-
19101967693102372257-
19152425483565202402-
19202597433607472207-
1925294631471504198213066
1930313148542003177321000
1935288645526127177723517
1940296684531942170532382
1945140335236844160736963
1950169798343024150851827
1955180105386381144264125
1960210300464300144071880
1965263100551400143575591
1970288600595400151477379
1975351100699000143583834
1980541200654300132194860
19855807007309001269103365
199059850011955711684 
199575371712881624553§107781
199678939913494834570§128577

POSTAL ZONES
How long your mail takes by AirPost International

Postal volumes. For the year ended 31 March 1995, New Zealand Post carried 774,241,000 Post medium letters (1995: 737,491,000) and 15,158,000 FastPost medium letters (1995: 16,226,000).

Overseas mail services. SeaPost, EconomyPost and AirPost International services are operated from New Zealand. CourierPost International offers top priority delivery of letters, documents and parcels to 219 countries. EMS International offers an Express Mail Service for urgent documents to over 120 countries, delivered via the EMS network operated by postal administrations worldwide. Other services include RegisteredPost International and International Business Reply.

Stamp issues. New Zealand Post's Stamp Business Unit produces around 12 commemorative stamp issues each year and one to three definitive stamp issues. A variety of philatelic products is 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 288 company-owned and franchised Post Shops with postal services available at a further 683 Post Centres. Stamps and stamp booklets are available at a further 3,599 outlets.

Financial transaction services including motor registration and bill payment services are available at all Post Shops through the sophisticated PostLink Computer System.

Some 750,000 customers are served every week in Post Shops and Post Centres throughout the country.

Recent performance. In the 1995-96 financial year New Zealand Post made a profit of $75 million after tax ($72 million in 1994-95)

11.4 Information Technology

New Zealand has a very competitive information technology (IT) market, with a range of equipment and software companies supplying an eager domestic market and niche export markets overseas. New Zealanders are enthusiastic adopters of new technologies: the rapid take-up of mobile cellular phones is just one example, with nearly 500,000 New Zealanders subscribing to a cell phone service in April 1997. Personal computers (PCs) are also becoming a popular consumer purchase. Statistics New Zealand figures show that just under one quarter (24.8 percent) of New Zealand homes owned a PC in March 1996, up from 11.5 percent in 1989. Much of the recent growth in PC ownership can be attributed to falling PC prices and the increasing popularity of the Internet. For many New Zealanders a PC is now a regular part of their day at home and at work, for education and as a source of entertainment. IT is infiltrating New Zealanders' lives in other more subtle ways, as embedded chips and software make their way into everyday appliances such as washing machines, cars and television sets.

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. The Minister of Communications also holds the portfolio of Information Technology.

IT Policy Unit. The IT Policy Unit is part of the Ministry of Commerce's Communications Division. Established in July 1993, its role is to provide policy advice to the Minister for Information Technology and the government on information technology issues as they affect the economy and society. The unit also monitors overseas trends in technology policy and technology developments, acts as a point of contact for the IT industry with the government, and provides support for the Information Technology Advisory Group (ITAG) and the Interdepartmental Committee on Information Technology (ICIT).

ITAG is a group of about ten representatives from New Zealand's leading private sector IT organisations, established by the Minister for Information Technology in September 1993. Its role is to provide advice to the Minister on issues relating to government economic policy-making from an IT supplier and user perspective. It is also charged with acting as an interface between the IT industry and the Government, and with developing a strategic view of the social and economic impacts of IT.

ICIT's function is to advise the government on issues relating to its purchase and use 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. ICIT has 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.

New Zealand's IT industry comprises those industry sectors whose business is IT related, including computing, broadcasting and telecommunications. The New Zealand IT industry employs approximately 45,000 people. The most recent industry survey conducted by Statistics New Zealand found the industry had total New Zealand and export sales of approximately $4.7 billion in 1996, up from $4.2 billion in 1995. This comprises sales to end users of: hardware (single and multi-user systems), computer peripherals, communications hardware, software and services. The survey, now in its third year, is jointly funded by Statistics New Zealand, Ministry of Commerce, Information Technology Association of New Zealand (ITANZ), and the New Zealand Trade Development Board (TRADENZ).

High-tech teleconsulting equipment at Dunedin Hospital allows specialists at the hospital to support the duty GP at Dunstan Hospital during emergencies, among other medical services, 1995.

IT is now central to New Zealand business infrastructure. Business life now without a telephone, fax or computer would be virtually impossible. Deregulation and increased competition in the telecommunications sector are helping New Zealand businesses take advantage of the increasing globalisation of markets. The telecommunications infrastructure, now recognised as being one of the best in the world, is helping to make New Zealand's distance from its major markets no longer the barrier it once was for local businesses.

Internet. The Internet is one of the key information technologies impacting on businesses and a growing number of households. It incorporates a huge range of information resources and provides a unique way to view them, as well as bringing a new way for people to interact with other people. Although it is almost impossible to know exactly how many people are connecting to the Internet, a January 1997 survey found over 16 million host computers worldwide. Host computers are computers that have their own Internet address and are permanently and directly connected to the Internet. Hosts can be mainframe computers with several hundred users connected, or an individual PC with one user. Home or business Internet users who connect by dialling up are not included in the host computer count, so it appears reasonable to assume that the number of actual Internet users is much higher than the number of hosts.

In New Zealand, Internet connections have grown quickly from the 1,193 hosts in July 1991, mostly in the scientific and research communities. By January 1997 this had risen to 84,532. This is some 23 Internet hosts for every 1,000 people, ranking New Zealand seventh in the world in terms of the number of hosts by population. The country with the highest number of hosts for every 1,000 people was Finland with 56.

Much of the growth of New Zealand Internet use comes from business connections. When an organisation connects to the Internet it registers a domain name—a unique identifier that acts as that organisation's Internet address. Organisations are allocated domain names according to their type, so a business will have a domain name in the format: businessname.co.nz, while a school or university might have: schoolname.ac.nz. Government organisations register under the: govt.nz domain. By March 1997 9,620 New Zealand organisations had registered a domain name, of which 8,343 (87 percent) were businesses or commercial organisations.

Since November 1994 the New Zealand Government has had a presence on the World Wide Web section of the Internet. This was an initiative of the IT Policy Unit and was aimed at providing useful government and departmental information on the Internet. A number of departments such as the Treasury established their own web sites and these were also linked into the government site. In November 1995, the Department of Internal Affairs launched a web site which also provided a range of government information and links to departments. In March 1997, the initiatives of the Ministry of Commerce and the Department of Internal Affairs were merged to form one site known as New Zealand Government On-Line (NZGO). NZGO is a one-stop site for information on the government, its constitution, the political scene, and links to all departments and agencies with web sites. NZGO is located at www.govt.nz and the Ministry of Commerce home page is www.moc.govt.nz.

Education. IT has over the last decade become a part of the modern New Zealand classroom. Almost all New Zealand schools have computer equipment, and telephone and fax lines, available to staff or students. Many are using their computer equipment and phone lines to connect to the Internet, to take advantage of the educational resources available. Interactive educational software is also becoming widely used by New Zealand schools; at a higher level this can provide realistic simulations that help teach complex topics and strengthen students' problem-solving skills. The attraction of IT in teaching is continuing to develop as new IT developments and high-speed communication links combine to bring new and distant educational resources into the classroom.

These new IT developments are also opening up distance education opportunities for schools. For either remote schools which lack teaching resources, or schools unable to offer certain subjects, distance education means using communication links to access educational resources or schools and educational institutions where those subjects are offered. The resources or other educational institutions can be in the next town or in a country on the other side of the world.

The number of computers in New Zealand schools has increased dramatically since the first survey in 1989. The 1996 Survey of computer use in New Zealand schools showed a mean ratio for all schools of one computer for every 18 pupils (ranging from one computer to every 19 pupils in primary schools, to one to 10 in secondary schools). The most common type of computer (about 23 percent) were found to be IBM compatible PCs based on the 486 chip. The survey found that 32 percent of all schools were connected to the Internet (26 percent of primary schools, 68 percent of secondary schools).

The Ministry of Education is 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 spent approximately $1.9 million on teacher professional development courses for approximately 1,400 teachers.

Health. Long distances are also one of the barriers for many New Zealanders in gaining access to healthcare. Information technologies are providing solutions to problems such as distance in healthcare, are assisting in medical breakthroughs and having a profound effect on the way people receive and manage their medical care. IT enables health care professionals and hospitals to share life-saving information instantly over short or long distances using computers connected by telephone lines. This is known as telemedicine and one of the most useful applications is in providing diagnoses and treatment over distance using video cameras hooked to a computer which analyses and transmits images over the phone lines. At the same time as giving local doctors access doctors to remote rural patients, local doctors can also consult specialists in other locations in New Zealand, or even other countries, to get up-to-date information about a particular condition.

There have been a number of trials of telemedicine already in New Zealand. For example, Health Waikato, the Hamilton based crown health enterprise, has run a trial of diagnosis by video involving long distance psychiatric consultation and assessment. Health Waikato concluded from the trial that a service based on telemedicine will mean specialists are able to see more patients than usual. So telemedicine services can provide better access for doctors to patients as doctors can use them to avoid travelling long distances to attend clinics in other centres, and patients also do not have to travel long distances to see doctors and specialists.

The Telecommunications Users Association of NZ Inc. (TUANZ) is committed to accessing and providing information on technology-enabled communications for over 500 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.

  • New Zealand will be recognised as a telcommunications leader internationally through the outstanding success of its industry model.

Members receive a monthly magazine (TUANZ TOPICS) and can attend regular seminars and an annual conference and exhibition. Five scholarships of $1,000 and one of $5,000 are made available each year.

  • Interactive New Zealand—the multimedia group, is involved in developing a vibrant industry and raising awareness in the application of “new media”.

  • InterOp New Zealand—the Enterprise Network Group, concentrates on issues of interoperability, local and wide area networking.

  • 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 it began in 1986, and has become increasingly important since deregulation. As the community recognises the very big role telecommunications and technology play in business and recreational activity, an organisation like TUANZ is necessary to keep members up-to-date on developments.

Cable laying machine at work for Kapiti pay TV service, Kiwi Cable, 1996.

Checking data on the computer—Hillmorton High School has a weather station and a home page:—http//aws.com/cgi-win/wx.exe?hnhaynz.obs, connected to the US-based AWS. This is one of several educational information technology projects run by the school.

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; Radio New Zealand Sound Archives; New Zealand Press Council; New Zealand Post.

Further information

Mass media

Annual Report of the Ministry of Commerce (Parl paper G.46).

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.

Code of Broadcasting Practice, Broadcasting Standards Authority.

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 G.14).

Report of the Ministry of Commerce (Parl paper G.46).

Annual Report of CLEAR Communications Limited.

Postal services

Annual Report of New Zealand Post Limited.

Report of the Ministry of Commerce (Parl paper G.46).

Chapter 12. Arts

Students from the Christchurch Youth Recorder Ensemble arriving in Wellington for the opening concert of Recorder Week at St Patrick's College, Silverstream, 1996.

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 interest 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. FUNDING TO THE ARTS AND CULTURAL HERITAGE SECTOR, 1995-96

GroupGovernment funding*Lottery grant*

*Does not include GST.

Source: Ministry of Cultural Affairs; Lottery Grants Board; Historic Places Trust; Department of Internal Affairs

 $(000)
Museum of New Zealand80,0451,250
Creative New Zealand3,38418,950
New Zealand Film Commission1,0007,995
New Zealand Film Archive143675
New Zealand Historic Places Trust1,8141,775
Lottery community facilities (II: Cultural facilities)- 
Lottery environment and heritage (III: Cultural heritage)- 
National Archives8,076-
Dictionary of New Zealand Biography601-
New Zealand Symphony Orchestra9,115-
Historical Branch (Internal Affairs)954-
Ministry of Cultural Affairs1,302-

Indemnification. The ministry administers the government indemnification scheme for touring exhibitions. Under this scheme, the government facilitates public access to significant cultural exhibitions through indemnifying museums and art galleries against the liability for loss or damage to borrowed exhibitions. Four indemnifications were administered in 1995-96. These were: Paul Gauguin: Pages from the Pacific and An Older Richer Cousin: Masterpieces of Australian Painting 1800-1900 both at the Auckland City Art Gallery; Diaspora in Context at the Waikato Museum of Art and History and Govett-Brewster Art Gallery, New Plymouth; and Self Portrait by Rubens at the Dunedin Public Art Gallery.

Cultural Statistics Project. The Ministry of Cultural Affairs and Statistics New Zealand have been working together to improve the range and quality of statistical information on New Zealand's cultural sector. In November 1995, the Cultural Statistics project team published the first report that brings together data on the sector, New Zealand Cultural Statistics—Ngā Tatauranga Whakapuaki Tuakiri o Aotearoa 1995. A further report, Household Spending on Culture 1996, was published in November 1996.

Creative New Zealand

Creative New Zealand is the operating name for The Arts Council of New Zealand Toi Aotearoa. Established under the Arts Council of New Zealand Toi Aotearoa Act 1994, Creative New Zealand is a Crown entity and receives funding through Vote Cultural Affairs and from the New Zealand Lottery Grants Board. It is the only body responsible for supporting a full range of arts activity in New Zealand.

This support is achieved through the provision of two funding rounds each year, a programme of research and information, and concerted advocacy on behalf of the arts.

Funding support for the arts. Funding is made available under eleven objectives. These ensure support for activities as diverse as concert tours, arts magazines, new art works and performances, artist residencies, and post-graduate study in the arts. Grants totalling $19.4 million ($16 million in 1995) were allocated to each of these objectives for the year ended 30 June 1996:

Arts in the communityto encourage participation in a wide range of arts activities$2,572,000 (13.2 percent)
Arts presentationto assist in the presenting of arts to New Zealand audiences$7,435,100 (38.3 percent)
Māori participationto increase Māori participation in nga toi Māori$350,000 (1.8 percent)
Arts awarenessto increase access to and participation in the arts through extending knowledge, experience and understanding of the diverse arts of New Zealand$1,490,400 (7.7 percent)
Arts accessto increase access to and participation in the arts by people and communities whose involvement is otherwise limited$500,000 (2.6 percent)
Arts developmentto support the creation of work of high quality and originality$4,543,600 (23.4 percent)
Māori arts developmentto support the maintenance and development of Māori arts and artists$1,099,900 (5.7 percent)
Pacific Islands arts developmentto support the maintenance and development of the arts of people from Pacific Islands living in New Zealand$259,300 (1.3 percent)
International arts promotionto encourage promotion of New Zealand arts internationally to enhance the country's cultural, social and economic interests$250,000 (1.2 percent)
Indigenous arts promotionto assist in developing links between Māori artists and artists from other indigenous cultures$250,000 (1.2 percent)
Professional developmentto support and encourage professional development of New Zealand's artists and art workers$664,400 (3.4 percent)

In 1995-96 Creative New Zealand provided direct support to more than 700 projects and programmes, while many more projects received support at the community level, through the Creative Communities scheme. This is a partnership with all New Zealand's local authorities, to whom $2.5m is devolved for distribution. The local authorities have set up allocation committees to receive applications from the public.

Annual programmes of 29 major New Zealand cultural organisations and art presenters were supported in the 1995-96 funding year. Creative New Zealand also administers a number of special funds, awards and scholarships including the Screen Innovation Production Fund for short films, the Katherine Mansfield Fellowship for writers, the Te Waka Toi Award for Māori artists and the Authors' Fund, which compensates authors for royalties lost as a result of their books being available in public libraries. $769,000 was allocated for distribution under the Authors' Fund in the 1995-96 funding year.

Advocacy on behalf of the arts. Creative New Zealand plays a key role in advocating for the arts in order to increase recognition of their value and role. In recent times, it has presented the case for increased funding for the arts, in an integrated advocacy strategy called Growing the arts. In a further development of this strategy, Creative New Zealand has set up high-level task forces to look at increasing the levels of support available to the arts through patronage and sponsorship. Other advocacy initiatives have focused on ensuring that the potential implications for the arts of changes to gaming in New Zealand are known and taken into consideration, especially as total funding, in real terms, declined. Reliance on the New Zealand Lottery Board's static income pool meant that Creative New Zealand's revenue remained essentially unchanged. Only the Lotteries Commission is bound by law to fund community purposes, while other forms of gambling are excluded.

Creative New Zealand also promotes recognition of the arts through involvement with the Montana New Zealand Book Awards and a special award for arts journalism in the Qantas Media Awards.

Research into the arts. Recent work by Statistics New Zealand and the Ministry of Cultural Affairs has greatly improved the amount of statistical data available on the arts. But key questions remain unanswered. How many New Zealanders participate in the arts? How often? Who are New Zealand's professional artists? What sort of living can they earn from their art? Is there a clear career path for the aspiring artist?

Information of this kind is vital for effective planning and advocacy. Creative New Zealand has initiated major surveys on participation in the arts, and the artist in New Zealand. These special initiatives complement a regular programme of research which, for example, provides information on the number of visits made to New Zealand's museums and galleries (almost 5 million in 1995-96), and the level of local authority investment in the arts ($221 million in 1992-93).

Creative New Zealand has a council, two boards—the Arts Board and a Māori arts board: Te Waka Toi—and a Pacific Island 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 Māori by Māori” and aimed at maintaining, developing and promoting Māori 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, at the request of the community concerned. At present there more than 100 such councils throughout New Zealand. With the implementation of the Creative Communities scheme, many community arts councils are redefining their role as co-ordinators, facilitators and presenters of the arts at the local level. In some instances local authorities have contracted community arts councils to provide arts-related services in their local community, and community arts councils are represented on most Creative Communities scheme allocation committees.

Creative New Zealand has offices in Wellington, Auckland and Christchurch.

Public art for Wellington's International Festival of the Arts, 1996. The other end of the Mt Victoria tunnel portrayed Hades.

New Zealand Symphony Orchestra

The New Zealand Symphony Orchestra (NZSO) celebrated its 50th anniversary in 1996. The occasion was noted with a national series of concerts featuring the high-profile British conductor Sir Neville Marriner and New Zealand pianist Michael Houston. Numbering 95 players and supported by an adminmistration staff of 22 the NZSO is now an orchestra of international standing attracting prominent international artists and conductors. Based in Wellington, it performs regularly in centres throughout New Zealand travelling over 50,000 kms each year. This makes it one of the world's most travelled orchestras.

Since 1988 the orchestra has been a Crown-owned entity with a board of directors appointed by the government. A funding cut in 1991, increasing costs and a growing incidence of OOS among players led to a difficult situation. After the Scott Report in May 1996 there was an additional government grant as well as a change of board.

The orchestra performs over 100 concerts each year. As well as presenting subscription series of major symphonic repertoire in six centres, it performs light music, pops, special concerts for families and schools, opera and ballet. The NZSO's involvement in major outdoor concert “events” such as Opera at the Basin and the introduction of late-morning Tea and Symphony concerts have broadened its market appeal.

The NZSO is also committed to commissioning, performing and recording works by New Zealand composers. In 1995 it established the NZSO New Zealand Music Panel whose aim is to encourage, commission and assess works by New Zealanders. It has also presented Enzso—the NZSO performing the music of New Zealand rock band Split Enz.

To date, the NZSO has made three overseas visits—to Australia in 1974, Hong Kong in 1980, and to Expo92 in Seville when it won international praise for its New Zealand Day concert with Dame Kiri Te Kanawa and then Chief Conductor Franz-Paul Decker. In May 1997, the orchestra travelled to Australia and performed three concerts as part of the Brisbane Biennial International Music Festival.

The Concertmaster of the NZSO is Wilma Smith, appointed in 1993, the fifth concertmaster in the orchestra's history and the first woman appointed to the position.

The annually awarded Lexus Bursary gives one permanent member of the NZSO the opportunity to study overseas for six months on full pay. The 1996 recipient, Sub Principal Second Violin David Gilling, is studying solo, chamber music and orchestral repertoire with teachers in Los Angeles and Montreal.

A crowd estimated at 300,000 fills the Auckland Domain to hear Dame Kiri Te Kanawa perform in the Opera in the Park, January 1996.

Each year since 1959 the National Youth Orchestra has brought together about 100 young instrumental musicians for an intensive week of rehearsal, culminating in a public concert performance, under a conductor of international standing. Aged from 13 to 23 years and selected by nationwide auditions, the young players receive coaching from NZSO principals and gain experience of professional symphony orchestra conditions. Many become NZSO and regional orchestra players. The Youth Orchestra is administered and funded by the NZSO. After many years of additional sponsorship, New Zealand Post has moved its support to the four regional youth orchestras.

Royal New Zealand Ballet

The Royal New Zealand Ballet is one of New Zealand's largest performing arts organisations. Governed by a seven-member Board of Trustees, the company comprises 32 permanent dancers and 28 staff in artistic support, production, marketing and management.

Established in 1953, 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 regularly performs 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.

International tours have taken The Royal New Zealand Ballet to the USA, Europe, Asia and Australia.

In January 1996 Matz Skoog was appointed as Artistic Director.

The New Zealand School of Dance trains approximately 55 students each year, in a three-year programme. They come mostly from New Zealand but also from Australia and Japan. The school, founded in 1967, is connected to the Royal New Zealand Ballet and students dance in RNZB performances. Each year the third-year students go on tour, alternating between the North and South Islands. The New Zealand School of Dance is funded by a grant from the Ministry of Education ($672,000 in 1994 and 1995), tuition fees, and sponsorship.

Te Kura Toi Whakaari O Aotearoa: New Zealand Drama School was established in 1970 by the Queen Elizabeth II Arts Council. Since then over 200 actors have graduated from the school. Toi Whakaari has a three-year full-time degree course in acting and a two-year full-time National Diploma course in technical production. It shows its commitment to the Treaty of Waitangi through the development of a multicultural environment. Funding in 1995-96 from the Ministry of Education amounted to $616,000.

The Opera House, Greymouth, built in 1899, photographed about 1905.

The poster for Bruce Mason's Awatea, presented by Downstage in 1968, starring Inia Te Wiata.

Founded in 1950, Chamber Music New Zealand is the major presenter of chamber music concerts. International and New Zealand artists are presented in Celebrity Season concerts in nine centres, with further concerts being placed on a second network of 25 smaller cities and towns. There were 98 concerts in 1996.

With nearly 50 years experience, Chamber Music New Zealand has strong ties with artists' managements and concert presenters world wide. This offers the opportunity to tour the best of both the established and the young emerging international ensembles.

Chamber Music New Zealand has a strong commitment to the development of New Zealand musicians and composers. The company established the New Zealand String Quartet in 1987. This professional full-time string quartet has developed an international reputation. The performance and commissioning of works by New Zealand composers is high on Chamber Music New Zealand's artistic goals.

For over 30 years Chamber Music New Zealand has organised the Westpac Secondary School Music Contest for Chamber Musicians in both instrumental performance and composition categories. Over the years many of these contestants have gone on to become New Zealand's finest musicians and enjoyed distinguished international careers. The 1996 contest attracted 410 group entries representing 1,600 young musicians from throughout the country.

The major source of Chamber Music New Zealand's funding is the sale of tickets to its concerts. The balances comes from Creative New Zealand and sponsorship.

The New Zealand Choral Federation: Te Kotahitanga Manu Reo o Aotearoa (NZCF), has 324 community, chamber, youth, cathedral, church, school and children's choirs among its members. The NZCF, whose Māori 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 Māori, 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. NZCF's income is derived from membership fees, event management, sponsorships and Creative New Zealand.

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 ten regional events culminating in a national finale. In 1996, 121 secondary schools and over 6,300 students took part; 20 school choirs attended the finale in Wellington. The New Zealand Festival of Youth Choirs was held for the first time, in Wellington, in 1995. In 1996, the inaugural Auckland International Festival of Choirs was staged prior to the 4th World Choral Symposium in Sydney, at which event the award-winning Māori group, Te Waka Huia, performed together with the New Zealand National Youth Choir to open the World Choirs Festival. 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 and videos on sight singing and choral direction.

New Zealand Film Commission

The mission of the 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 Vote Cultural Affairs and as a distribution agency for the Lottery Grants Board. Each year, the commission offers financial support to a considerable number of film projects, both for development and for production. In the 19 years since it was established more than 60 features and more than 140 shorts have been made with commission funding (see separate list of feature films).

A montage of members of the 1916-17 Wanganui Male Choir.

Copyright

Copyright in New Zealand is based on the Copyright Act 1994, administered by the Ministry of Commerce. Copyright law is complex and only the essential aspects are discussed here.

Copyright protection in New Zealand comes into existence automatically on the completion of any original literary, dramatic, musical and artistic work (including photographs), sound recording, film, broadcast, cable programme and published edition. Computer programs gain copyright protection under the definition “literary work.” No registration is necessary (or even possible) nor is any other formality required for securing copyright protection.

Duration of copyright. For literary, dramatic, musical and artistic works (including photographs) copyright continues for 50 years after the end of the calendar year in which the author died. For sound recordings and films, copyright generally continues for 50 years from the end of the calendar year in which they were made. For broadcasts and cable programmes copyright continues for 50 years from the end of the calendar year in which they were made (broadcasts) or included in a cable programme service (cable programmes). Copyright in published editions is for 25 years from the end of the calendar year in which they are first published.

Ownership of copyright. The first owner of copyright is usually the author or maker. However, if this person was employed and made the work in the course of employment then the employer is usually the first owner. If the author or maker of some kinds of work (such as sound recordings, films, photographs and computer programs) was commissioned to make that work, the first owner is usually the person who commissioned the work. For works commissioned or made by an employee the parties can agree to vary the usual first ownership rule. Copyright can be assigned in writing to another person.

Moral rights. The author of literary, dramatic, musical or artistic work, or the director of a film, has the right to be identified as the author or director provided this is asserted in accordance with the Copyright Act. Authors and directors also have the right to object to certain treatments of their work which are derogatory (prejudicial to their honour or reputation). These rights cannot be assigned.

Performers' rights. Performers have rights to prevent the recording or live broadcast or inclusion live in a cable programme of certain performances.

Enforcement of copyright in New Zealand is available by civil action or criminal action. Criminal liability for breach of copyright can extend to $50,000 or 3 months imprisonment. Remedies from civil action include damages, injunctions, or an order for delivery up.

Copyright Tribunal. Certain disputes about or proposals for licences allowing the copying, performing and broadcasting of works may be heard and determined by the Copyright Tribunal.

Protection overseas. Generally speaking the copyright protection given in New Zealand also extends to works originating from countries that are party to the Berne Convention for the Protection of Literary and Artistic Works; the Universal Copyright Convention; and the World Trade Organisation (WTO) Agreement. New Zealand is party to all three. Conversely, countries that are party to either convention or the WTO Agreement must give works originating from New Zealand the same protection that they give to works produced by their own nationals.

Censorship

The Films, Videos, and Publications Classification Act 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:

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 Classification.

Office of Film and Literature Classification—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 films. 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.

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.

Auckland City Art Gallery, 1976.

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, Māori 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 Māori taonga including Te Hau Ki Turanga, which is the oldest, extant Māori 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.

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 Māori and European buildings and sites, historic areas, Māori traditional sites including wahi tapu (sites sacred to Māori) 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:

White dust flies as the first heat for the World Stone Sawing competition begins during the historic Oamaru Heritage Celebrations Victorian Fete in Oamaru, November 1996.

  • 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 and re-interpretation as a working museum, complete with printery, tannery and bookbindery. The Stone Store, Keri Keri, the oldest stone building in New Zealand, which is owned by the trust, is the subject of major conservation works during 1996-97.

The functions of the trust's Māori Heritage Council include advocating the protection of wahi tapu, wahi tapu areas and historic places and areas of Māori interest. The trust teaches hands-on heritage conservation to marae communities throughout the country and also holds a regulatory responsibility for all archaeological sites in New Zealand. The trust's Māori 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.

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 33,000 subscribing members.

During 1996 the Parliamentary Commissioner of the Environment reported on aspects of historic and cultural heritage management in New Zealand and made a number of recommendations to government, which is currently considering a broadly-based heritage strategy incorporating central and local government responsibilities, which may affect the future role of the trust.

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 Māori 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: Māori 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.

Bishop's School, Nelson, a wooden schoolhouse built in 1881, was restored by the New Zealand Historic Places Trust in 1975. It contains articles from Victorian schooldays.

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, Māori, film and archival interests. Income is derived from the Lottery Grants Board, New Zealand Film Commission, the Ministry of Cultural Affairs and NZ On Air, sponsorship and commercial activity.

Actor Terence Bayler and the commemorative stamp issued in 1996 to celebrate 100 years of New Zealand cinema. Bayler starred, with Kay Ngarimu, in Broken Barrier, made in 1952.

The collection includes New Zealand and overseas films dating from 1895 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, and production files 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 4,000 films collected.

During 1996 an outreach programme, Te Hokinga Mai, commenced. With support from the Museum of New Zealand's National Services Committee and the Health Sponsorship Council, film material made specific to iwi was made up into special programmes for Ngati Tuwharetoa, Tainui, Whanganui and Tuhoe. Fifty screenings have been held on marae, at schools and district museums to an overall audience of 8,300 people. Further outreach screenings are planned for other areas over the next five years.

The Film Archive aims to increase public access to its collections through the Film Centre facility in Wellington which offers exhibitions, archival television programmes and cinema screenings. A semi-permanent exhibition Tracking Time: Takes on New Zealanders and Film tells the story of 100 years of film in New Zealand. Changing exhibitions are also held. This year the focus has been on celebrating New Zealand's centenary of cinema, and exhibitions have included Under the Macrocarpas: A Salute to Film Buffs and Their Collections and The First Picture Show celebrating Wellington's first screening of film on 28 October 1896. Daily screenings at the Film Centre feature programmes such as Treasures/Nga Taonga: Silent Cinema and Hot Shots! 15 New Zealand Film Trailers. Specially curated screenings during the year have included: The Alan Roberts Collection of Early European Cinema and The Old Triers: A Tribute to New Zealand's First Generation Film Makers. The TVNZ Television Room hosts a changing programme of early television items. Highlights this year have included a compilation of early comedy shows and talent quests. The Film Centre also provides specially tailored screenings for school and community groups.

National Archives

National Archives: Te Whare Tohu Tuhituhinga o Aotearoa, is part of the Department of Internal Affairs. It is the country's largest repository of unpublished information on the history and development of New Zealand, holding about 66,500 linear metres of paper documents, 550,000 maps and plans, 1.25 million photographic images, large collections of films, videos, photographs, art works, posters, microfilms and objects. Archives are the raw material for the history of New Zealand.

The records held by National Archives are those created by central government. Archives represent the memory of government because they provide evidence of its functions, policies, transactions, decisions and areas of responsibility. The wide variety of archives document the social, political, economic, scientific, military, legal, technical and administrative development of the country. Users include government departments, Treaty of Waitangi researchers (public and private sectors), historians, genealogists and private individuals. Because of the high degree of government involvement 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 (including destruction) of all government records. Only those records which are deemed to have permanent evidential informational value are selected for preservation. 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. 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. To assist them, a research service on a cost-recovery basis is available. 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 those concerning 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 Māori Land Courts, Māori 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.

A float in Dunedin's Otago Centennial celebrations in 1948.

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 a 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 about interesting aspects of the past.

National Archives has more clearly defined its standard setting role with the establishment in 1996 of the Statutory Regulatory Group. This group will also offer advice on the management of records within government agencies. National Archives also 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.

Semi-current records from both public and private sectors are stored on a cost-recovery basis by records centres in Auckland and Wellington.

National Archives currently operates under the Archives Act 1957 but a Bill is expected to result in a new act which will take into account recent legislation (such as the Official Information Act 1982, Privacy Act 1993) that impinges on the administration of the Archives Act. It also aims to cover technological advances since 1957 and the issues around the preservation of electronically-stored information.

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

Book publishing in New Zealand is a dynamic and diverse industry, producing high-quality books for the local and international markets. These cover every genre, from educational titles to crime fiction to works of high cultural value.

Just as New Zealand approaches to education have high standing in the world, so too do New Zealand educational books. Early readers in particular, written and illustrated by local authors and artists and produced by local publishers, can now be found in infant rooms all over the world. Writers if high standing, such as Margaret Mahy and Joy Crowley, have been backed by publishers to create a substantial export industry. Educational publishing accounts for approximately 20 percent of all book sales by value. While the 1990s may be testing times for the book as a form of instruction, with much money being poured into new technologies, school book spending over the years 1989-1994 has remained relatively steady.

The mix of New Zealand publishers has always been one of local ventures and the local office of multinational importers and publishers, with books from small family firms rubbing shoulders on retail book shelves with the products of giant publishing conglomerates. The Commerce Commission has estimated that around $160 million worth of books were sold by retail booksellers in 1993. Of these, approximately 35 percent were published in New Zealand. With market dominance of overseas books to contend with, local publishers have had to produce their books at prices, and to standards, which are set internationally. The result has been that New Zealand publishers are able to turn out a fine book on a budget New York publishers would laugh at. Local books are produced in print runs which are but fractions of those of the overseas books they compete with in the stores.

According to library sources there are about 300 publishers of New Zealand books, but of these about 80 are specialist book publishers or importers. This specialist group is responsible for the production and distribution of over three-quarters of all new titles available and accounts for over 90 percent of New Zealand book sales. The other 200-odd publishers comprise mainly government departments, local bodies, historic societies, business organisations, special interest groups and individuals.

Most publishers belong to the industry body, the Book Publishers Association of New Zealand (BPANZ). This represents the wide-ranging interests of its members, such as export, copyright concerns, training, and professional standards. The association inaugurated the GP Print Book Design Awards in 1997, established and ran the Wattie Book Awards (later Montana Book Awards) for twenty-five years, and (with the New Zealand Society of Authors) owns the reprographic rights organisation, Copyright Licensing Ltd. Book marketing in the form of trade promotions, such as the Listener Women's Book Festival, the Montana New Zealand Book Awards and the New Zealand Post Children's Book Festival, is undertaken by Booksellers New Zealand, to which most serious publishers also belong.

BPANZ has been working to develop links with publishers internationally and is a member of the Asia-Pacific Publishers Association and the International Publishers Association. For the first time in 1997, BPANZ has exhibited books at the Tokyo Book Fair, with an enthusiastic response from Asian publishers and agents interested in rights. Just as the export development of educational books was a phenomenon of the eighties, more general trade books from New Zealand are travelling far and wide in the nineties. In 1995 and 1996 locally-produced books were bestsellers in the US, selling in the hundreds of thousands. The development of book sales over the Internet will be another facet of the process. In the world of books, the talent of New Zealand writers, illustrators, and publishers is strong, often quirky, and increasingly admired.

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 coordinated 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 1996 was 278 within 84 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.

WEA Library Van, with Professor Shelley (left), G T Alley (later National Librarian), G Worthington and Miss Jean Osborne in Christchurch, 24th March 1930. The WEA initiative was forerunner of the Country Library Service, later part of the National Library.

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 over 8.4 million items in 1995. 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 is offered by distance education and about one hundred students complete the course each year. From 1998 the New Zealand Library Studies Certificate will cease to exist and will be replaced by a new series of qualifications offered through the Open Polytechnic of New Zealand. Two diplomas at different levels will be available, leading to a Bachelor of Applied Science majoring in Library and Information Studies. The degree will have a vocational emphasis, as the certificate does at present, but offers more opportunities for on-going study than have been available until now at an undergraduate level.

The postgraduate diploma course moved to Victoria University of Wellington in 1980 where the Department of Library and Information Studies now offer a Master of Library and Information Studies. This is taught over 12 months' full-time study in Wellington, or two years' study at a distance. Distance study is supported by coursebooks and weekly audioconference 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 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 and information issues. Recent work in this area includes research on access to government information through the Depository Library Scheme, and a paper on the provision of equity in public library services.

In 1966 the National Library was established by an act of Parliament, which also incorporated the Alexander Turnbull Library into the National Library. It was given the responsibility of collecting, preserving and making the country's documentary heritage available to all New Zealanders.

Altogether, in its various collections, the National Library holds about 1,800,000 books; about 1,600,000 photographs and negatives; 60,000 paintings, drawings and prints; enough newspapers to form a stack about 1km high; 6.5km of manuscripts; more than 4km of serials; 100,000 music scores; a collection of sound recordings (including 11,000 music compact discs and 5,000 oral history interviews); 688,000 children's books (which includes the schools' collection); and just under 95,000 ephemera items, ranging from propaganda material to theatre programmes.

The library is committed to making its information resources available to all New Zealanders. It provides access to its collections on site and by interlending to other libraries, and is continuing to investigate ways of making its information resources available through computer-based online services and tools, as well as through database-access services.

Visitors can view ever-changing displays in the National Library Gallery and Turnbull room, as well as showings of often unique film footage in the library's auditorium. The gallery exhibitions are supported by special events, and an active touring programme is ensuring greater access to these cultural treasures across the country.

The Alexander Turnbull Library is a national research collection, containing both published and unpublished material and 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 art and craft of book-making. It is based on the collections of Alexander Horsburgh Turnbull, a wealthy Wellington merchant who died in 1918 and bequeathed the nation some 55,000 volumes, as well as manuscripts, paintings and sketches which he had collected during his lifetime.

Access to both published and unpublished material held in the Alexander Turnbull Library continues to be improved so that researchers are able to use the New Zealand collections which are not generally available for lending.

Other initiatives have been developed to reflect the importance of recording aspects of life in New Zealand using varying media. These include: the Archive of New Zealand Music; the New Zealand Cartoon Archive, which is supported by the archive's trust; and the Oral History Centre, which carries out interviews to add to its collections and offers training workshops on how to record oral history.

Susan Jowsey, winner of the 1996 Visa Gold Art Award. Her untitled work was made from stained and discarded blankets cast off by the Red Cross, SPCA and Salvation Army. The artist said the work explored the alienation of mental illness.

Services available from the National Library are:

Research and reference services—the National Library provides a reference service to assist enquiries for information that cannot be satisfied by other New Zealand libraries or information sources. Access is provided to the full range of the library's published collections, and local and overseas online resources. The service also makes referrals to the unpublished heritage collections of the Alexander Turnbull Library. The Family History area is a popular self-help section where people trace their family tree using books and microfiche information from both New Zealand and overseas, particularly Europe.

Kiwinet—is the National Library's online information network. It hosts 35 databases which provide information on all aspects of New Zealand, including business, the social sciences, arts, commerce, the humanities and law. Over 1,000 clients from New Zealand and overseas access the service, often on a daily basis.

New Zealand Bibliographic Network (NZBN)- is an online computer system that 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 now more than 280 member libraries.

Kiwinet and NZBN have been merged under Online Services. The National Library worked on developing a system in conjunction with the National Library of Australia to make more information resources available online, incorporating existing databases. The project, known as the National Document and Information Service (NDIS) was terminated in December 1996 after costing the National Library nearly $9 million.

Services to libraries—A range of services is provided to New Zealand libraries to facilitate, enhance and support their work and collections. These services include the provision of resource-sharing tools and directories, bibliographic verification tools and services, and database services (New Zealand Bibliographic Network and Kiwinet, which make up the Library's Online Services).

Services to schools—Through the School Libraries 2000 programme, the National Library offers a national service to strengthen schools' access to information that supports the New Zealand curriculum. The library acknowledges the growth in electronic access to information and networks both within schools and the library itself.

The integrated programme incorporates three projects to strengthen schools' access to information through:

  • the development of the school library or information centre to support learning programmes

  • the development of products, such as databases on CD-Rom, which enable schools to gain access to National Library services

  • a national collection of information resources for teachers as a backup for school resources to support learning programmes.

Services to Māori—Māori are acknowledged as a special group of users by the National Library because of the library's commitment to bicultural objectives, and to meet growing demand from Māori people for information held by the library. The Services to Māori unit focuses on ways the library can further develop relationships with the Māori community, including servicing Kura Kaupapa Māori schools through its School Libraries 2000 programme; the library also has Takawaenga-a-Rohe, Māori District Liaison Librarians, who act as a link between Māori and the library community.

Services to New Zealand publishers—Under the National Library Act 1965, amended 1994, publishers are required to deposit three copies (in some cases fewer) of every publication produced in New Zealand. The library has the responsibility of collecting these publications and making them available to present and future generations. They are listed on the library's New Zealand National Bibliography, which is often used by potential buyers to order new titles.

It also issues publishers with international standard numbers which are designed to give publications a unique identification. The number allows a publication to be located and ordered with ease.

Access to the National Library via the Internet—Acknowledging the changes in the way people access information, the National Library has established a site on the World Wide Web [www.natlib.govt.nz] which carries detailed information about its resources and services. The site allows visitors to ask questions and give feedback—just as they could if they visited the library in person. The library also now offers online access to the pictorial collections.

Image services—With state-of-the-art imaging technology, the National Library's Image Services is widening access to the wealth of pictorial history held in the Alexander Turnbull Library. Copies of electronically-stored images from these collections can be printed in-house, and they can now be downloaded from the website [timeframes.natlib.govt.nz]. The library hopes to have 30,000 images available online by late 1999.

Parliamentary Library. This library provides library, information, research and reference services for Parliament as required by the Parliamentary Service Commission. The library's collection, which numbers over 500,000 volumes, is strongest in areas such as economics, politics, public administration, law, social sciences and biography, all being subjects relevant to members of Parliament for their legislative duties. The library has one of the largest collections in the country of books, pamphlets, periodicals and newspapers relating to New Zealand.

The International Documents Collection comprises parliamentary papers and publications of overseas governments, mainly English-speaking, and of international organisations such as the United Nations, the OECD, and the European Community. This collection is available for public use.

Practising to travel to Samoa with classmates to represent Otara and Manukau City in the 7th South Pacific Festival of Arts, 1996. There has been a huge increase in Maori and Pacific performing arts in recent years, with major festivals starting at secondary school level involving thousands of participants.

Refurbishment and earthquake strengthening of the General Assembly Library building began in 1992. The library's stock was returned to the building at the beginning of 1996.

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.

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 (172,000); sound recordings (10,200); microforms (13,440); maps (9,200); photographs (922,000); posters (16,300); paintings (10,740), including modern works of art; and manuscripts, particularly of early missionaries and literary figures. The library's archives and manuscripts total 5,700 linear metres, and are rich in Otago sources—business, local government, education, health, sport, community organisations, the churches and the University of Otago. In 1996 the library attracted 10,651 readers and answered 787 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 Museum of New Zealand Te Pap Tongarewa; New Zealand Historic Places Trust; 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

Asia 2000; New Zealand Film Commission; Copyright Licensing Ltd; Booksellers New Zealand; New Zealand Library and Information Association; National Library; Oral History Centre, National Library; Alexander Turnbull Library; Recording Industry Association of New Zealand.

Further information

Fostering the arts

Annual Report of the New Zealand Film Archive

Household spending on culture. Statistics New Zealand and Ministry of Cultural Affairs, 1996.

Local Authority spending on the arts 1992-93. Creative New Zealand, 1996.

New Zealand cultural statistics. Statistics New Zealand and Ministry of Cultural Affairs, 1995.

Report of Ministry of Cultural Affairs (Parl paper G.10).

Report of the Arts Council of New Zealand (Parl paper G.11).

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

Report of the New Zealand Film Commission (Parl paper G.19).

Report of the New Zealand Lottery Grants Board (Parl paper G.7b).

Report of the New Zealand Historic Places Trust (Parl paper G.10).

The national collection

New Zealand museums 1990-96: facts and trends. Creative New Zealand, 1997.

Report of the Board of Trustees, National Art Gallery, Museum of New Zealand Te Papa Tongawera (Parl paper G.12).

Books and libraries

Annual Report of the Hocken Library.

Report of the National Library of New Zealand (Parl paper G.13)

Report of the Trustees of the National Library of New Zealand (Parl paper G.52).

Chapter 13. Leisure and tourism

Cyclists lined up on the Petone Esplanade, some time in the 1930s.

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.

Art societies exist in almost every suburb, small town and provincial centre, with participants meeting in people's homes or in local rooms. Among the most popular of the recreational arts are painting, pottery, weaving and woodturning. Doll-making also has an increasingly large following. The Wellington-based New Zealand Academy of Fine Arts holds eight exhibitions a year and the 400-500 entries received for each exhibition attests to the importance of arts as a form of participatory recreation.

Outdoor recreation is also popular, 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 June 1996, the commission distributed more than $29 million to sport, fitness and leisure groups in New Zealand in four key areas. This included $8.42 million in the area of high performance sport through the New Zealand Sports Foundation, the Olympic and Commonwealth Games Association and National Governing Sports Bodies; $8.3 million in the area of sport development through National Governing Sports Bodies; $7.63 million in the area of community fitness and leisure through sports clubs, local authorities and regional sports trusts; and $2.99 million in the area of junior sport through local schools and regional sports trusts.

In 1996 the commission asked over 3,000 adults (18 years and over) in New Zealand about the sport and physical activities they had done in the last year. Nine out of 10 stated they had taken part in sport or physical activities. The most popular activities were gardening or walking. However, taking those who only walk or garden out of the figures still left 8 out of 10 people who reported participating in sport or physical activity. Three out of 10 people belonged to a sports club and one third took part in competitive sport. A similar number received coaching or instruction.

In general, sport and physical activities were more popular with men than women and young people were more active than older adults.

The research highlighted the large amount of voluntary work that goes into sport and active leisure. One in 5 adults volunteer their services as coaches, officials and administrators (only 3 percent were paid). It is estimated that sport and active leisure benefits from at least $200 million worth of volunteer effort each year.

High performance. From mid-1996, the Hillary Commission contracted the New Zealand Sports Foundation to manage the development of high performance sport. Following the Winning Way report, extra funds were made available by the government to streamline high performance sport funding.

Junior sport. Sport for young people is a major priority for the Hillary Commission. Research in 1996, in which 750 school students (13-17 years old) were asked about their participation in sport and physical activity, showed participation rates are exceptionally high. A huge 98 percent of young people reported taking part in sport with 72 percent choosing to do so in their own time and 47 percent belonging to a club. At school, rugby (28 percent) and cricket (27 percent) were the two main sports played by boys. Netball (36 percent) and soccer (14 percent) were the top sports for girls.

While boys play more sport than girls, the gap, particularly in school sport, is closing. Eighty percent of boys reported playing one or more sports (76 percent in 1991), while the figure for girls is 77 percent (65 percent in 1991). Asked why they enjoyed playing sport, the young people responded they liked improving their skills (86 percent) and facing a challenge (83 percent). The prospect of winning (46 percent) took second place.

In view of this high interest, the commission is developing a national junior sports policy. Entitled “Moving through Sport", the document offers guidelines for the smooth and successful administration of junior sport. It also seeks to consolidate sport within school programmes and to place sport in the health and physical education curricula.

Both the Kiwisport programme (a modified sports codes for primary school children initiated in 1988) and secondary schools‘ Sportfit (established in 1991), continue to be important. Nine out of 10 children are reported as playing Kiwisport. In addition, a Fairplay campaign was introduced in 1996 with the support of Firestone Fire Company. The campaign includes a television commercial to reinforce the ‘play hard but play fair’ message as well as pamphlets, stickers, clothing and spectator cards. These are distributed through regional sports trusts and Firestone outlets.

Green prescriptions. Green prescription is a concept developed by the commission which involves patients being prescribed physical activity by their GP. When patients receive a white prescription for medication, if their medical condition can be helped by participating in physical activity, they will also receive a “green prescription” encouraging them to get physically active.

Evidence of the correlation between physical activity and improved general health status is clear. If people do just 30 minutes of moderate-intensity physical activity most days of the week, they are less likely to suffer from common health problems such as high blood pressure, cholesterol, heart disease, diabetes, obesity, depression, anxiety, insomnia and arthritis.

Initially, the concept will be run in the North Health region including the Auckland and Northland area and it is planned the idea will go nationwide by the end of 1999. Doctors‘ referrals for physical activity will be backed up by community support from regional sports trusts, of which there are five in the North Health area. An 0800 ACTIVE line will also be established to offer advice.

The Active in Age programme, initiated by the Hillary Commission and now administered by the Regional Sports Trust, is being tied in with the Green prescription programme.

Sport development. The sport development area provides coaches and training programmes for officials and volunteers at all levels who manage funding for national sporting organisations and regional sports trusts, and work on the success and efficiency of organisations.

Coaches Count campaign. During 1996-97 the Coaches Count campaign will recruit and train coaches and generally improve the on-going quality of coaching at all levels. Research has shown a shortage of trained coaches at all levels. The campaign will focus on the need for more adults to coach junior sport, but will also reach potential coaches who are interested in becoming involved at other levels. Currently, 1 in 9 New Zealand adults are coaches and the coach-to-athlete ratio in team sports is 1 to 20. Sport experts say the average ideal ratio is 1 to 9.

Support for international events. In the past year the commission has contributed to some major events to be held in New Zealand, such as:

NetballWorld Championships 1999
Surf LifesavingWorld Championships 1998
Sports MedicineOceania Sports Medicine Conference 1997
AthleticsOceania Veterans 1998
BowlsWorld Blind Bowls 1997
NZ Recreation AssociationConference 1996
ShootingBid for World Shooting Clay 2000
CyclingMountain Bike World Cup Round 2 1997
GlidingWorld Masters‘ Gliding Championships 1998
TennisKB Federation Cup 1998
MotorcyclingWorld 125cc Motorcross Championships Round 1998
DivingWorld Diving Cup 1999
SoftballBid for International Mens‘ Championship Series 2000
BasketballOceania Qualifying Series 1997
OrienteeringWorld Masters‘ Championships 2000
TrampolineWorld Cup 1997

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 plan of practical action: encouraging the establishment, strengthening and support of National Youth Councils; supporting the development, refinement and implementation of National Youth Policies and structures; supporting the Commonwealth Youth Credit Initiative; and urging the promotion of the Commonwealth Youth Programme's Human Resource Development Strategy for Youth. 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 operates the Community Sport Fund which gives local authorities $1.35 per capita for the sports clubs and organisations in their area. Base funding of $25,000 is available for those authorities which would not reach that amount under the $1.35 per capita system. The commission also produces recreational management resource material and may fund the development of recreation plans. Local authorities may apply to the Community Facilities Fund administered by Internal Affairs Department for funding of major sports and recreation facilities. The Creative Community Scheme, administered by Creative New Zealand, funds local authorities at the rate of $0.60 per capita and has a base or minimum funding level of $5,000. The scheme funds programmes which primarily benefit the local community.

Latest Hillary Commission research estimates local government spends in excess of $300 million a year on sport and education.

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.

Marching team, Dunedin, 1916

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.

Boxing match in progress, about 1910.

Croquet in the early 1900s.

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 in 1996 represented over 100 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.

Curling on the frozen Idaburn Dam at Oturehua, with the Hawkdun Range in the background, 1952.

New Zealand Sports Foundation. The foundation aims to assist New Zealand's current and potential high performance sportspeople to succeed at international level. Conceived as a joint venture between the public and private sectors, the foundation received $2.85 million in Hillary Commission funding in the year to 30 June 1996. In the same period $50 million of assistance was made available to more than 3,000 athletes, teams and coaches from more than 60 sports.

The foundation currently operates on an annual grants budget approaching $15 million and works with the Hillary Commission, the New Zealand Olympic Committee, the corporate sector, national sports organisations, athletes and coaches. Hillary Commission funding rose to $11.3 million in the 1996-97 financial year.

Over the past 18 years the foundation has proved remarkably successful in identifying and supporting outstanding sports talent. One of the main ways it does this is through the sports academy programmes. Academies are integrated high-performance development programmes which incorporate the employment of national coaches, sports science and medicine, squad development and talent identification. The aim of the programmes is to enable talented youth to progress to international athletes at the highest level.

The foundation provides funding to 17 sports academies in the following disciplines: rugby, league, cricket, equestrian, netball, rowing, yachting, athletics, bowls, cycling, golf, hockey, shooting, squash, swimming, tennis and triathlon. Nine academies were set up using money from the Sport 2000 Fund in 1995 and these have a four-year funding commitment. Academies are run by the relevant national sporting body. The foundation provides funding, support programmes for academy employees and performance evaluation.

New Zealand Olympic Committee Inc. (NZOC) (formerly the New Zealand Olympic and Commonwealth Games Association Inc.). The NZOC 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. Forty-one sports federations are members of the NZOC.

Educational and promotional activities are a major part of the committee's function. A number of events, such as the Olympic Day Run, are organised every year to celebrate and encourage mass participation and promote values such as fair play and the pursuit of excellence. Educational material are prepared prior to each of the games and the committee runs a library and information service. Information is also available on the Internet through the committee's home page (http:www.olympic.org.nz).

Outdoor leisure activities

Community fitness and leisure. An estimated 900,000 New Zealanders do not lead an active lifestyle, but most would like to. Getting more people, more active, more often is the aim of the Community Fitness and Leisure team at the Hillary Commission. It has been proven that being active leads to improved quality of life and that better health can be achieved by just 30 minutes of activity “collected” throughout the day. Through its Community Fitness and Leisure programmes the commission endeavours to provide all New Zealanders with access to a wide range of sport facilities and activities so that getting active is easy.

Family campsite, 1963.

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, hammerhead shark, mako shark, thresher shark, kingfish (yellow tail), and tuna. The best catches are usually made in February but fishing is good from December to April.

Shooting and hunting. The principal game birds are duck, swan, pheasant, quail, geese, and chukor, but the sport is limited, the main season usually extending for about six to eight weeks depending on the fish and game region. By tradition the season starts on the first weekend of May.

There are few restrictions on big game hunting. 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, 11 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 9 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.

The International Ski Federation (FIS) has sanctioned the holding of international ski competitions at Mount Hutt, Whakapapa, Coronet Peak, Cardrona, Turoa, and Mt Dobson. This includes Continental cups and FIS level races held annually.

Paekakariki Holiday Park in fine weather, January 1997.

New Zealand Masters Scrabble tournament participant enjoying his successful play, Dunedin 1996.

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.

Cycling. Cycling New Zealand holds the New Zealand affiliation to the UCI (International Cycling Union). The New Zealand organisations affiliated to Cycling New Zealand are: New Zealand Mountain Bike Association; BMX New Zealand; Master Cycling Association; and New Zealand Secondary Schools Association.

Cycling New Zealand has about 2,000 licensed participants belonging to 49 clubs throughout the country. There are around 150 major open events held during the year, apart from club racing which caters for racing at entry level. The New Zealand Mountain Bike Association has 558 licensed competitors.

Competitors at the Wellington chess championships, January 1978. A mass chess match in Cuba Mall.

Concertgoers party to the sound of Hawera band The Bogans on the opening day of the outdoor Mountain Rock festival near Palmerston North, 1996.

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 and regularly win top races, although in total, they constitute a small percentage of runners.

The Racing Industry Board is considering the introduction of significant changes to the industry to combat problems like declining attendances and increased competition in leisure activities.

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.

Today there are 520 TAB outlets around the country. In the year ended 31 July 1996, total turnover increased 10 percent. TAB bets totalled $926 million and on-course betting totalled $108 million.

Table 13.1. RACE MEETINGS*

 GallopingTrottingGreyhounds
199519961995199619951996

*Full totalisator meetings only, for years ended July.

Source: TAB

Race meetings 331329230227140144
On-course turnover$(000)65,63462,93145,52341,4373,3513,446
TAB turnover$(000)455,291461,265255,527252,04753,36862,166
Total dividends$(000)411,530421,978237,829236,25543,67352,818
Sports Betting (5 weeks to 31 July 1996)4,968 

A total of $60 million tax and duties was paid to the government, $30 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.

Table 13.2. ALLOCATION OF LOTTERY PROFITS (REVISED)*

Recipient199419951996

*For year ended 30 June. Amounts do not include carry-forwards from previous financial year.

Source: New Zealand Lottery Grants Board

Distribution Committees$(million)
Lottery Aged4.03.83.4
Lottery Community Facilities11.612.511.3
Lottery Environment and Heritage7.99.09.6
Lottery General15.115.521.0
Lottery Health Research3.54.24.0
Lottery Science Research5.92.92.0
Lottery Welfare12.912.813.3
Lottery Welfare—Individuals with Disabilities3.23.23.2
Lottery Youth5.66.56.2
Minister of Internal Affairs0.20.71.0
Statutory Bodies
Arts Council of New Zealand Toi Aotearoa17.218.119.0
Hillary Commission for Sport, Fitness and Leisure23.027.628.2
New Zealand Film Commission7.57.88.0
Total101.9118.5130.2

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.

A top tourist attraction in Timaru over the 1977-78 summer holiday season was the Chandris liner Australia, tied up at Caroline Bay.

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 the top foreign exchange earner. According to the New Zealand Tourism Board's International Visitors Survey international tourism generated $4.8 billion in 1996 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 19965, the number of visitors to New Zealand increased by 8 percent to 1.493 million. As a growing labour-intensive industry, tourism generates an increasingly wide range of jobs for New Zealanders.

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 1996 survey of New Zealanders‘ attitudes towards tourism, 95 percent of people surveyed saw tourism as important or very important to the economy and 56 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.

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.

Table 13.3. INTERNATIONAL VISITOR EXPENDITURE—APRIL TO MARCH 1996

 Total foreign exchange earnings (excluding airfares)Average spend per person per visitAverage spend per person per day

Source: New Zealand Tourism Board

 (NZ$million)(NZ$)(NZ$)
Australia6471,828143
North America
USA4283,125214
Canada813,160114
UK/Nordic
UK3202,83090
Nordic442,57692
Central Europe
Germany1863,893157
Switzerland694,068117
Netherlands493,50891
Other Central Europe453,165136
Japan6094,066210
North Asia
Taiwan2013,671277
South Korea2242,253345
Hong Kong892,955176
Other North Asia192,425219
South East Asia
Singapore422,148133
Thailand803,969163
Malaysia292,422126
Other South East Asia323,434186
Other countries360  
        Total3,5542,776152

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 was $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 audiovisual 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 March 1996, 4 percent were spent in top class hotels, 6 percent were spent in mid-range hotels and motor inns and 13 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 March 1996.

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.

In order of use, domestic air (24 percent), private car (27 percent), rental car (28 percent) and organised coach tours (24 percent) are the four most favoured means of internal transport for international visitors. Holiday/vacation visitors favour domestic air (38 percent), organised coach tours (33 percent) and rental cars (31 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 (26 percent) and domestic air (24 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 is collected on an ongoing basis and is available from the New Zealand Tourism Board during 1996.

Christmas dinner at the seaside in Auckland, 1915.

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.

Source: Statistics New Zealand

19842858451167936125054553518441
19853419841275866826959156596995
19864040361404817466169895689073
19874410811576197608788422763209
198845583419493288215116511855492
1989439249207333100224120716867522
1990464545224875109110134901933431
1991491591238034103899133538967062
1992519274245845106238128357999714
19935934152551491141831238101086557
19947029452725071219251159411213318
19957733792825651392211478381343003
19968111943193501560181552761441838

OVERSEAS VISITORS
Total numbers

International visitors

More than 1.5 million overseas visitors arrived in New Zealand in the year to February 1997—up 8 percent on the previous year. The number of countries from which overseas visitors originate has been growing increasingly diverse.

MORE TRAVELLERS
Overseas visitors per 1,000 of the New Zealand population

Table 13.5. COUNTRY OF LAST PERMANENT RESIDENCE OF INTERNATIONAL VISITORS

CountryYear ended 31 March
1993199419951996

Source: Statistics New Zealand

Australia361995369482389581409326
United States134003150666155731151823
Canada25978283982961428918
United Kingdom96809110720118490126076
Japan131078140405146316157970
Germany51279594405669053041
Singapore19277247462266222207
North Asia72358116134172023217285
Netherlands10134114071227814068
Nordic13867147601696217941
Switzerland12514137501473014001
Pacific Islands44014497265583857046
Latin America6965861398889730
Other including unspecified106286115071142200162406
Total1086557121331813430031441838

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, New York, 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 and 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.

An Irish linen tea towel, made in Belfast, based on a stamp poster designed by the National Publicity Studios for the overseas information service of the Tourist and Publicity Department, 1968.

Contributors

  • 13.1 Hillary Commission for Sport, Fitness and Leisure; New Zealand Arts Assembly; Commonwealth Youth Programme; New Zealand Assembly for Sport; New Zealand Sports Foundation; New Zealand Olympic Committee; Department of Conservation; Office of the Minister for Racing; TAB; 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 Māori Tourism Federation; ACC; TAB; New Zealand Sports Drug Agency; New Zealand Lotteries Commission; New Zealand Lottery Grants Board.

Further information

Recreation and sport

Annual Report of the New Zealand Olympic and Commonwealth Games Association.

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 G. 7).

Report of the Hillary Commission for Sport, Fitness and Leisure (Parl paper E. 32).

Report of the New Zealand Lottery Grants Board (Parl paper G. 7b).

Report of the Queen Elizabeth the Second National Trust (Parl paper C. 2).

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 G.25).

Report of the Ministry of Commerce (Parl paper G. 46).

Tourism in New Zealand: Facts and forecasts. New Zealand Tourism Board and New Zealand Tourism Industry Association, June 1994.

Tourism Research Bibliography; 1994 to 1996. Ministry of Commerce, December 1996.

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

Unemployed men working on the banks of the Avon River in Christchurch in the 1920s.

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 stoppages 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 and 1996 Censuses 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. In addition, the Household Labour Force Survey counts those who have a job to start within four weeks (regardless of whether or not they were actively looking for work) as unemployed.

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
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
Sep910.757.9344.01,312.673.86.0
Dec931.560.3327.31,319.175.26.1
1996—Mar932.163.3330.21,325.675.16.4
Jun931.856.1342.71,330.674.25.7
Sep933.360.3340.81,334.474.56.1
Dec944.562.7332.71,339.975.26.2
Female
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
Sep723.844.0611.31,379.055.75.7
Dec734.649.6601.51,385.656.66.3
1996—Mar738.452.8600.71,391.956.86.7
Jun751.749.8595.31,396.857.46.2
Sep761.749.2589.61,400.557.96.1
Dec756.645.3604.21,406.157.05.6
Total
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
Sep1,634.5101.9955.22,691.664.55.9
Dec1,666.0109.8928.82,704.765.76.2
1996—Mar1,670.5116.1930.92,717.565.76.5
Jun1,683.5105.9938.02,727.465.65.9
Sep1,695.0109.5930.42,734.966.06.1
Dec1,701.1108.0936.92,746.065.96.0

Table 14.1 shows that the labour force has started to grow recently. Between June 1993 and June 1996, the labour force increased by 143,800 or 8.7 percent. Over the same period, the number of people aged 15 and over increased by 120,100 or 4.6 percent. The result was an 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 the March quarter 1991 and the March quarter 1996, female labour force participation rose from 702,800 to 776,600, an increase of 73,800 or 10.5 percent. However, male labour force participation over the same period rose less markedly from 919,700 to 995,400, an increase of 75,700 or 8.2 percent.

LABOUR FORCE PARTICIPATION RATE, 1996
Age specific

Women in the labour force

In the year to March 1996, women made up 44.2 percent of the labour force.

In spite of the generally 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 74.5 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 (Ministries of Education and Women's Affairs, the Department of Labour and Te Puni Kokiri) and the central employer and union organisations (two representatives from the Council of Trade Unions, and one each from the NZ Employers‘ Federation and State Services Commission).

During 1996 NACEW focused on developing a research project on childcare. It is envisaged that this will take the form of a national survey to gather high-quality data on the use or non-use of childcare in relation to the labour market, and the relationships between paid work and childcare arrangements. NACEW's report on parental leave was completed at the end of 1996.

Full-time and part-time work

The definition of full-time includes all those usually working 30 or more hours per week. Therefore, part-time includes those people usually working for 1-29 hours of work per week. New Zealanders employed in the full-time labour force increased from an average of 1,178,000 in the year to March 1991, to an average of 1,292,800 in the year to March 1996, an increase of 114,800 or 9.7 percent. However, there was a more marked percentage increase for those people working part-time—up 18.0 percent or 54,100, to 355,400.

Table 14.2 shows the number of males and females employed full- and part-time in 1991 and 1996. Around 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 26.3 percent between 1991 and 1996, while the number of females working part-time increased by 15.2 percent over the same period.

Table 14.2. LABOUR FORCE BY FULL-TIME AND PART-TIME STATUS, 1991 AND 1996*

 MaleFemaleTotal
199119961991199619911996

*Household Labour Force Survey. Annual averages for the years ended March 1991 and 1996.

†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)(000)
Full-time
    Employed758.6827.7419.4465.11178.01292.8
    Unemployed†72.450.736.029.8108.480.5
    Total831.0878.4455.4494.91286.41373.3
Part-time
    Employed73.392.6228.0262.7301.3355.4
    Unemployed†7.99.119.419.027.328.1
    Total81.2101.7247.4281.7328.6383.5
Total full and part-time labour force912.2980.1702.8776.61615.01756.7
Percent in labour force full-time91.189.664.863.779.678.2
Total working-age population1231.71316.31296.11382.82527.82699.1
Participation rate (full-time)67.566.735.135.850.950.9
Participation rate (part-time)6.67.719.120.413.014.2

Hours of work. Data regarding the number of hours of work in each week are presently collected by Statistics New Zealand from two sources:

Signwriter Glenda Leete paints a window display on a Willis St, Wellington, shop while 4-months-old baby Jordan sleeps in his pram.

  • The Household Labour Force Survey (HLFS) which asks individuals 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 (QES) which asks enterprises for the details of the number of paid ordinary and overtime hours worked in the surveyed payweek.

Harvesting lemons, Bay of Plenty. New Zealand has a higher rate of employment in the agricultural sector than most other OECD nations (see Table 6.17).

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 four years to 1995.

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 36.76 hours per week in 1991 to 37.82 hours per week in 1996. Conversely, the number of overtime hours worked in the average week has decreased by 0.32 of an hour (about 19 minutes) over the same period, although there was a slight pick-up in overtime hours in 1995. This may be the result of recent changes in the terms of employment contracts extending the number of hours defined as ‘ordinary time’.

Table 14.3. AVERAGE WEEKLY HOURS PAID FOR, 1987-1996

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
199638.742.4841.0436.730.8937.4137.821.8439.39

ETHNIC EMPLOYMENT
By major industry group

Hosiery manufacturing department of Bruce Woollen Mills, Alliance Textiles, 1925.

Table 14.4 shows how actual hours worked have changed between 1991 and 1996. While the majority of people still work a 40-hour week, there has been more growth in the last five years amongst those working 29 hours a week or fewer, and those working 45 hours a week or more.

In 1996, there were 24,000 or 16.8 percent more men, and 39,800 or 14.7 percent more women who worked between 1 and 29 hours than there were in 1991. This reflects the increase in the number of part-time workers. Meanwhile, there were 74,800 or 26.0 percent more men, and 26,600 or 36.2 percent more women who worked 45 hours or more than there were in 1991.

Table 14.4. EMPLOYED PERSONS BY ACTUAL HOURS WORKED*

Actual hours worked per weekMalesFemalesTotal
19911996Change19911996Change19911996Change

*Annual average for the year ended March. ... 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(000)percent(000)percent
0 hours52.358.311.552.060.616.5104.3118.914.0
1-926.930.513.464.468.46.291.398.98.3
10-1928.536.929.575.287.916.9103.7124.820.3
20-2934.940.917.279.994.418.1114.7135.317.9
30-3460.553.8-11.161.768.210.5122.2122.0-0.2
35-3952.744.1-16.368.163.5-6.8120.9107.6-10.1
40239.4248.53.8148.1159.98.0387.5408.45.4
41-4447.743.6-8.623.324.23.971.067.8-4.5
45-4993.0106.514.528.737.330.0121.7143.818.2
50 and over Not specified195.2256.531.444.862.840.2240.0319.333.0
        Total831.9920.310.6647.4727.912.41479.21648.211.4

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 1996, 78.5 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 11.8 percent of the employed.

Males dominate among those who are self-employed and those who employ others. Table 14.5 shows that in 1996, 69.8 percent of the people in these categories were male. Similarly, females dominate amongst those working unpaid in a family business. Women made up 65.3 percent of this group.

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 169,000 or 11.4 percent in the five years to March 1996. The number of wage and salary earners increased by 113,400 or 9.6 percent in the last five years, while self-employment increased by 35,000 or 22.1 percent, those employing others increased by 18,800 or 16.1 percent, and people working unpaid in a family business showed little change (down 100 or 0.5 percent).

HOURS WORKED BY THE EMPLOYED
International comparison of average annual hours actually worked, per person in employment.*

Women working at Amalgamated Brick and Pipe factory, Auckland 1965.

Table 14.5. STATUS IN EMPLOYMENT OF EMPLOYED PERSONS, 1991 AND 1996*

StatusMalesFemalesTotal
19911996Change19911996Change19911996Change

*Annual averages for the years ended March 1991 and 1996. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey

 (000)percent(000)percent(000)percent
Employee624.2680.89.1556.3613.110.21180.51293.99.6
Employer85.596.212.531.439.626.1116.9135.716.1
Self-employed113.6133.917.945.159.832.6158.7193.722.1
Unpaid in family business6.66.83.013.012.8-1.519.719.6-0.5
Not specified2.02.630.01.42.685.73.45.252.9
        Total831.9920.310.6647.3727.912.51479.21648.211.4

FULL-TIME MALE EMPLOYMENT BY INDUSTRY

Industrial structure of the labour force

Table 14.6 shows the distribution of employed people by industry during 1996. 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 (27.0 percent), followed by the ‘wholesale and retail trade, restaurants and hotels’ division (21.3 percent) and the ‘manufacturing’ division (17.8 percent). The divisions employing the fewest people are the ‘mining and quarrying’ and the ‘electricity, gas and water’ divisions, each employing around 1 percent of the employed.

Table 14.6. EMPLOYED PERSONS BY INDUSTRY, 1996*

Major divisionMaleFemaleTotalPercentage distribution†
MaleFemaleTotal

*Annual average for the year ended March 1996.

†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 forestry112.048.0160.012.26.69.7
Mining and quarrying4.5...5.3.........
Manufacturing204.189.4293.52.212.317.8
Electricity, gas and water10.72.413.11.20.30.8
Construction91.011.9102.99.91.66.2
Wholesale, retail, restaurants and hotels177.5173.9351.419.323.921.3
Transport, storage and communications67.830.097.87.44.15.9
Business and financial services89.687.5177.19.712.010.7
Community, social and personal services162.1283.2445.317.638.927.0
Not adequately defined1.0...1.7.........
        Total920.3727.91648.2100.0100.0100.0

FULL-TIME FEMALE EMPLOYMENT BY INDUSTRY

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’.

Over 60 percent of female employment is concentrated in two industrial divisions: ‘community, social and personal services’ and ‘wholesale, retail, restaurants and hotels’. As the 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 14.7 suggests that New Zealanders are relatively evenly spread throughout 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, 1996*

Major occupational groupsMaleFemaleTotalPercentage distribution†
MaleFemaleTotal

*Annual average for the year ended March 1996.

†Percentage calculations are based on adequately defined cases only.

... 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) 
Legislators, administrators and managers132.569.3201.814.49.512.2
Professionals93.0113.7206.710.115.612.5
Technicians and associate professionals112.186.3198.512.211.912.0
Clerical workers49.9174.7224.65.424.013.6
Service and sales workers77.3148.4225.78.420.413.7
Agriculture and fishery workers110.344.8155.212.06.29.4
Trades workers159.112.1171.117.31.710.4
Plant and machine operators and assemblers122.636.9159.513.35.19.7
Elementary occupations61.140.5101.66.65.66.2
Not adequately defined2.41.03.4.........
        Total920.3727.91648.2100.0100.0100.0

The largest occupational group for males is trades workers; approximately one in six males are involved in this occupation (17.3 percent). The second largest occupational group for males is the ‘legislators, administrators and managers group’, in which 14.4 percent of males are occupied. The smallest occupational group for males is ‘clerical workers’ (5.4 percent).

Women tend to be concentrated in a smaller number of occupation groups. Nearly a quarter of all employed females work as ‘clerical workers’, with a further 20.4 percent employed as ‘service or sales workers’. The smallest occupational group for females is ‘trades workers’, accounting for 1.7 percent of female employment.

OCCUPATIONS OF THE EMPLOYED, 1996

There is still a large degree of occupational segregation in the New Zealand labour force ie 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.

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 1996 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 1996 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.

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. The graph also shows that in the last two years there has been a steady decrease in the number of people registered as unemployed.

REGISTERED UNEMPLOYED
Excluding vacation workers

UNEMPLOYMENT RATE, 1996
Age specific

Demographic and social characteristics of the unemployed

In the year ended March 1996, 108,600 people were counted by the HLFS as being unemployed. This is equivalent to 6.2 percent of the total labour force. The unemployment rate for males was similar to that for females, at 6.1 percent and 6.3 percent respectively. The variation in unemployment rates is 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 (10.7 percent) and lowest for those people with both school and post-school qualifications (3.8 percent).

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 14.8. UNEMPLOYED PERSONS BY EDUCATIONAL ATTAINMENT, 1996*

Educational attainmentNumber of unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

*Annual average for the year ended March 1996.

... 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 qualifications25.417.943.211.210.110.7
School qualification13.812.526.36.05.55.7
Post-school but no school qualification7.04.311.35.88.16.5
Post-school and school qualification13.413.727.13.44.43.8
Not specified..................
Total59.848.8108.66.16.36.2

Unemployment rates for Māori 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 Māori, and Europeans are 15.3 percent, 15.5 percent and 4.6 percent respectively.

Table 14.9. UNEMPLOYED PERSONS BY AGE, 1996*

Age  Number of unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal 

*Annual average for the year ended March 1996.

... 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
15-1912.511.223.816.215.916.1
20-2411.38.419.69.58.49.0
25-297.05.312.26.05.85.9
30-345.55.811.34.36.25.1
35-396.35.511.85.15.45.2
40-445.45.310.64.85.45.1
45-494.84.08.84.44.34.3
50-543.31.95.24.02.83.5
55-592.6...3.64.2...3.5
60-64......1.3......2.7
65 and over..................
        Total59.848.8108.66.16.36.2

Table 14.1. UNEMPLOYED PERSONS BY ETHNICITY, 1996*

Ethnic groupNumber unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

*Annual average for the year ended March 1996. Some discrepancies may exist between totals and the sum of their component items due to rounding.

... Denotes estimates less than 1,000 and subject to sampling errors too great for most practical purposes.

Source: Household Labour Force Survey

 (000)percent
European/Pakeha38.029.767.84.64.64.6
New Zealand Māori12.411.624.014.616.715.5
Pacific Island group4.94.19.115.115.615.3
Other4.33.37.611.610.611.1
Not specified..................
        Total59.848.8108.66.16.36.2

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
199610.85.55.5S.I9.115.15.759.8
Females
19887.44.12.93.63.81.86.630.2
19898.65.24.85.65.S3.97.040.8
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
199611.45.34.46.77.28.15.648.8
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
199622.210.89.914.916.323.211.3108.6

Waikato University students look for holiday work as part of Student Job Search, 1996.

A demonstration of the unemployed marching in Christchurch, May Day 1932.

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 1996 an average of 40.6 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

New Zealand needs to develop a highly skilled, flexible and productive workforce if it is to achieve levels of economic growth which will improve its competitive advantage as a small player in a global economy.

The Skill New Zealand strategy promotes the concept of lifelong learning, with both employers and employees having an ongoing commitment to training and learning. Access to high quality education and training assists individuals to develop skills for the workplace. This is achieved through the integration of school, tertiary, and workplace education, based around the National Qualifications Framework.

Education and Training Support Agency

The Education and Training Support Agency (ETSA) is a Crown entity 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 1996 ETSA received from the government $19.7 million operational funding (same in 1995).

The Education and Training Support Agency is responsible for the following major training initiatives:

  • Skill New Zealand.

  • Training Opportunities Programme.

  • Skill Enhancement.

  • Secondary Tertiary Alignment Resource.

  • Skill Pathways (operated until December 1996).

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 training system encompasses new skill standards and qualifications developed by Industry Training Organisations (ITOs) to meet the needs of their industry. ETSA is responsible for recognising and supporting ITOs. It assists industry groups either to establish ITOs or to become included in existing ITOs.

ITOs are responsible for: setting national skill standards for their industry; developing training packages for employers in their industry; arranging delivery of on- and off-job training; and administering apprenticeships, primary industry cadetships, and other industry training arrangements.

At 30 September 1996 there were 52 recognised ITOs covering an estimated 75 percent of New Zealand's work force.

ETSA administers the Industry Training Fund, which subsidises structured industry training. For each calendar year, the agency purchases a target number of Standard Training Measures (STMs). One STM is regarded as equivalent to a trainee who has completed training designed to lead to the achievement of a 120-credit National Certificate (or a Trade Certificate or Cadetship equivalent). The funding subsidises component costs of ITO training arrangements.

At 30 June 1996 there were 14,014 new trainees (9,161 in 1995) and a total of 23,957 trainees (18,344 in 1995). Total expenses of Industry Training for the year ended 30 June 1996 were $29,696 million.

Training Opportunities Programme (TOP). This is a fully-funded programme targeted towards people with low qualifications who are either recent school leavers or long-term unemployed. Eligibility changes introduced on 1 April 1996 mean that ex-prisoners, refugees, people who have been on Domestic Purposes or Widows‘ benefit for a year or more, and NZES Youth Action and other priority clients are now included in the target group.

TOP offers trainees the opportunity to be assessed against National Qualifications Framework unit standards and to gain credits on the Framework, to move into further education and training and to improve their employment prospects. The Agency purchases a diverse range of training in a variety of responsive learning environments including marae, polytechnics, community organisations and the workplace.

The programme is designed to assist trainees gain credits towards nationally-recognised qualifications. These may be vocationally based, such as fishing or computing courses, but also can include capability skills, such as communication and budgeting. Trainees may remain in the programme until they have accumulated up to 240 credits on the National Qualifications Framework. Work-based training is available, which places trainees with employers for on-job training.

There was an average of 16,201 trainees in place during the year to 30 June 1996 (16,219 in 1995). At 30 September 1996 there were 17,490 TOP trainees of whom 44 percent were Māori, 11 percent Pacific Island, and 49 percent were women, about the same proportions as in 1995. Contracts were negotiated for 594 providers (638 in 1995). Average training cost of the programme was $213 per trainee per week ($212 in 1995). For the year ended 30 June 1996 the total expenses of TOP were $165,456 million ($164 million in 1995).

Skill Enhancement. This programme (previously known as Māori Vocational Training and before that as Māori Trade Training) provides vocational learning opportunities and improved employment prospects for young Māori and Pacific Island people aged between 16 and 21 years inclusive. Skill Enhancement provides training leading to a qualification on the National Qualifications Framework at levels 3 and/or 4, presenting an alternative pathway and learning environment which assists Māori and Pacific Island youth obtain the qualifications and experience sought in the workplace.

There was an average of 638 trainees in the year to 30 June 1996. There were 748 trainees in place at September 1996 (687 in place at 30 June 1995, 572 in 1994), of whom 78 percent were Māori, 22 percent Pacific Island, and 36 percent were women. Training was purchased from 49 providers (28 in 1995). Average training cost for Skill Enhancement in the 1996 calendar year was $250 per trainee per week ($279 in 1995). For the year ended 30 June 1996, total expenses of Skill Enhancement were $8,723 million ($8,889 million in 1995).

Secondary Tertiary Alignment Resource (STAR). The aim of STAR is to provide secondary school students with industry-focused training options. Programmes offered by the schools may have a number of different characteristics but all have a common school-industry link. STAR is administered by the Ministry of Education. The role of the agency in STAR is to provide advice and assistance to targeted schools on the design, establishment and implementation of the programme. This may include assistance with the establishment of links with industry and other tertiary organisations; advice on unit standards and qualifications relating to the National Qualifications Framework; and/or information on assessment and evaluation procedures within the workplace.

R Bell & Co Match factory, Wellington, opened in July 1895.

Skill Pathways. This initiative was designed to encourage the development of a variety of vocational training pathways for young people aged 16 to 21 years, using a mix of on- and off-job vocational education and training linked to the National Qualifications Framework. In 1996 Skill Pathways was focused on senior students in secondary school. 84 schools developed training pathways (50 providers in 1995) under the Skill Pathways programme, allowing students the opportunity to gain credit toward national certificates. There was an average of 1,060 trainees for the year to 30 June 1996. Average training cost for Skill Pathways was $85 per trainee per week. Skill Pathways operated until December 1996.

Career Service rapuara

A Crown entity, Career Services was established (as Quest Rapuara) in July 1990. It contracts with the Minister of Education to deliver a range of services through a document of accountability between the minister and the Career Services board.

Career Services is New Zealand's leading provider of career advice, planning and information. Staff in fourteen locations nationwide provide services to a range of private and public sector clients. Offices are also open to the general public for career information and advice, and career planning services, and services are available through the freephone number 0800 A CAREER.

In fulfilment of its objective to ensure all New Zealanders have access to publicly-funded, up-to-date, neutral, culturally-appropriate, quality career information, Career Services provided such information and advice to 41,562 customers through its network of centres throughout the country in the year to June 1996.

Career planning. Career Services consultants work with clients to: identify skills; investigate career and training options; base decisions on up-to-date information; develop career plans; learn interview and job search skills; and prepare CVs. In the year to June 1996, 5,025 people received individual career guidance at Career Services offices, and 73 group career guidance sessions were held for 1,095 participants.

In the 1996 year 6,136 people received funded career guidance compared with 5,373 people in the previous year.

Quest Database is an easy-to-use computer program which describes 692 jobs, including tasks involved, entry requirements, and where to find more information. It lists about 5,000 training courses in New Zealand, covering content, entry requirements, course lengths and locations, and has bi-lingual English and Māori text. In the year to June 1996 the annual Quest Database update was distributed to 578 licence holders.

Career Information Library. Printed resources include 183 career leaflets, and the book Courses galore—New Zealand's training guide. At June 1996 there were 497 Career Information Library licence holders. A slight decline reflects the fact that some clients now focus on accessing the information electronically.

First floor of the Bryant & May, Bell & Co match factory in Wellington, 1939.

CareerQuest and JobQuest are self-help computer-aided career guidance programs designed to assist people who are making career decisions and are looking for job and training ideas. Users answer questions on work ideas, education, interests, skills and school subjects, which generates information on suitable career options. Half the licences for CareerQuest are with the New Zealand Employment Service.

Career Services, with Victoria University of Wellington, is also piloting KiwiCareers, an Internet-based career information system.

At school level, the service was involved in 13 career expos reaching about 130,000 students and members of the public; and provided professional development and career information updating for more than 1,000 teachers and tutors. More than 180 newly-appointed school-based careers advisers involved in career education and guidance were given induction courses.

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 NZES for at least 26 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.

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.

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 Māori. Under the Māori Development Act 1991, Te Puni Kōkiri is responsible for promoting higher training and employment achievement by Māori. It does this mainly by giving policy advice to the government departments and agencies which provide training and employment services for Māori. Recently, this has included:

  • helping design and implement specific projects coming out of the Māori Labour Market Strategy, including three training and employment programmes—Wahine Pakari, Māori Youth Scheme and Job Plus Māori Assets;

  • advising on purchasing specifications for the Training Opportunities Programme (TOP) and helping design and implement a pilot project which uses an alternative TOP purchasing mechanism involving a Māori tribal organisation;

  • helping identify and develop criteria to ensure Māori training and employment service providers meet a minimum quality standard;

  • providing information on barriers to effective participation by Māori training organisations in training and employment service provision; and

  • providing advice to Industry Training Organisations on how to improve their responsiveness to Māori.

Te Puni Kōkiri is also involved in facilitating consultation between government training and employment agencies and iwi, hapu and other Māori organisations and individuals. This includes helping Māori, at local level, to access appropriate government service delivery agencies.

Community Employment Group. The Community Employment Group of the Department of Labour works with communities and community groups to maximise opportunities for local responses to unemployment. Using its wide experience and local and national networks, the group helps communities identify opportunities for employment, self-sufficiency and positive activity.

Positive activity refers to activity leading to enhanced work readiness, redirection away from criminal activities, and participation in the community by disadvantaged and at-risk individuals and groups. Positive activity may include participation in cultural or sporting activities, voluntary work and mentoring.

The Community Employment Group works predominantly with communities whose members face greater than average disadvantage in the labour market and currently targets its services primarily towards the four priority groups of Māori, women, rural and urban disadvantaged communities, and Pacific Islands people.

The group can help community organisations by:

  • providing information and advice;

  • assisting the development and implementation of ideas;

  • facilitating community planning;

  • putting groups in touch with other sources of funding or partnership;

  • helping with the co-ordination of local employment development; and, where appropriate,

  • offering partial grants.

The group's assistance aims to kick-start projects to provide solutions including, where necessary, the provision of seeding funding. It does not provide ongoing support to community organisations. The responsibility for, and ownership of, an employment project stays with the community.

In 1995-96 the group's field staff were involved in 17,605 community interventions. These included community strategic planning sessions (6,721); co-ordination of local employment initiatives (855); community upskilling (816); monitoring of funded projects (1,622); and networking to link up groups and individuals (3,093).

Thirty-eight percent of community upskilling interventions and 40 percent of networking interventions were targeted at Māori. The group also funded 621 community employment projects, of which 41 percent were targeted at Māori and 8 percent at Pacific Islands people.

The significant number of projects and interventions targeted at Māori is a result of the group's Mahi a Iwi strategy, which involves working with unemployed and disadvantaged Māori communities. Mahi a Iwi uses a staircasing strategy to help Iwi and Māori groups develop a vision of the future they want and lead them through to self-sustaining initiatives that will realise that vision.

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

The first full year of operation of the expanded Conservation Corps and new Youth Service Corps saw an increased number of participants and more than twice the number of programmes. Community sponsorship averaged 50 cents every government dollar committed to projects.

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 13 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 20 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 3.5 years of secondary education, though 71.7 percent have fewer than 3 School Certificate passes. Forty-nine percent are Māori.

Around 1,700 young people participate in Conservation Corps each financial year. 1996 results showed that six months after leaving the programme almost 82 percent moved to employment, further education and training. About 6,700 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 1996, 291 young people participated in Youth Service Corps in selected areas. They had an average age of 18 years, 45 percent were Māori and 17 percent Pacific Islanders; about 79 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.

Source: Statistics New Zealand

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.

Source: Statistics New Zealand

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 (QES). The QES 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 generally 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.

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 the 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 $680 per week as compared with an average weekly wage of $570 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

1992—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
Aug583.6532.08610.62
Nov590.7836.17621.14
1996—Feb597.4334.67626.97
May601.0732.11628.11

Table 14.15. AVERAGE ORDINARY TIME HOURLY AND WEEKLY EARNINGS, FEBRUARY 1996

 PrivateCentral government tradingCentral government non-tradingLocal government tradingLocal government non-tradingAll sectors

Source: Quarterly Employment Survey

 $
Hourly earnings
Male16.4520.2821.2717.6518.0317.24
Female13.1415.1715.7714.0715.3213.97
Total15.1318.2817.8216.8916.9815.80
Weekly earnings
Male636.90791.50820.47706.41699.45667.84
Female475.40569.55600.28519.18554.62512.87
Total569.72702.43681.79663.89640.78597.43

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 is discontinued. 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 combined, separate indexes are compiled for the local government, central government, public and private sectors of ownership. 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, 1.9 percent higher in the June 1996 quarter than in the June 1995 quarter. It can be seen in table 14.16 that this increase is the same as those for the year to December 1995 and March 1996, but well above the 1.4 percent increase for the year to June 1995.

A relief camp for unemployed workers in the Akatarawa valley, Upper Hutt, in the 1930s. The men built roads in the area.

Table 14.16. SALARY AND WAGE RATES (INCLUDING OVERTIME): BY SECTOR*

 Local government sectorCentral government sectorTotal public sectorPrivate sectorAll sectors combined

*Base: December 1992 quarter (=1000).

Source: Labour Cost Survey

Indexes
1993—Sep10091003100410101008
Dec10111004100510121010
1994—Mar10121005100610151013
Jun10151007100810181015
Sep10191011101210221020
Dec10241012101410251022
1995—Mar10261015101710291026
Jun10271019102010321029
Sep10381023102510381035
Dec10441032103310441041
1996—Mar10471035103710491046
Jun10511037103910531049
Percentage change from same quarter of previous year
1994—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
Sep1.91.21.31.61.5
Dec2.02.01.911.9
1996—Mar2.02.02.01.91.9
Jun2.31.81.92.01.9

The prolonged period during which increases in public sector salary and wage rates were substantially lower than those in the private sector ended during the past year. Rates being paid in the private sector increased by 2.0 percent in the year to June 1996, while public sector rates rose by 1.9 percent.

Nearly half of the ordinary time salary and wage rates in the survey were unchanged in the year to June 1996. Forty-seven percent stayed the same and 53 percent increased. Of those which increased, three in five rose by more than 2 but not more than 5 percent. The average and median increases were 3.8 percent and 3.0 percent, respectively.

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 14.17 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 1996 was 4.2 percent, mainly due to higher ACC employer premium costs, which rose 23.8 percent.

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 2.3 percent in the year to June 1996, down a little from the peak of 2.5 percent in the year to December 1995.

Table 14.17. LABOUR COSTS BY TYPE OF COST*

 Salary and ordinary time wage ratesOvertime wage ratesAll salary and wage ratesAll 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 (ie 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 (ie 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 (ie all salary and wage rates and all non-wage labour costs).

Source: Labour Cost Survey

Indexes
1993—Sep100999910089831004
Dec101099810109861006
1994—Mar1013998101310111013
Jun1016999101510231017
Sep10201000102010251020
Dec10231002102210281023
1995—Mar10261006102610581031
Jun10291007102910751037
Sep10351013103510781042
Dec10421013104110871049
1996—Mar10471018104610871053
Jun10501020104911201061
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
Sep1.51.31.55.22.2
Dec1.91.11.95.72.5
1996—Mar2.01.21.92.72.1
Jun2.01.31.94.22.3

Real Wage Rates

The quarterly Real Wage Rate Index (RWRI) was first released in the June 1994 quarter, having been calculated back to the December 1992 quarter.

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 wage rates, taxation, benefits and the prices of goods and services have on the purchasing 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 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 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 Economic Survey (HES). 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 CPI.

Movements of the LCI, AWRI, CPI and RWRI are summarised in table 14.18 and the graph, which 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 14.18. REAL WAGE RATE INDEXES

 Labour Cost Index* † LCIAfter Tax Wage Rate Index‡ | AWRIConsumers Price Index§ CPIReal Wage Rate Index‡ | RWRI

*All Salary and Wage Rates Index measures the change in rates paid for actual hours worked as overtime in the base period (ie 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 (ie Salary and Ordinary Time Wage Rates, and Overtime Wage Rates).

‡Index was 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.

||The percentage change figures are calculated on unrounded numbers and the percentage change in Infos may be different.

Source: Labour Cost Survey

Quarterly
1993—Sep1008101510121003
Dec1010101710141003
1994—Mar1013102010141006
Jun1015102510181007
Sep1020103010301000
Dec102210321042990
1995—Mar102610361054983
Jun102910391065975
Sep103510441067979
Dec104110501073979
1996—Mar104610541078978
Jun104910561086972
Sep1055109210921000
Percentage change from previous quarter
Quarterly
1993—Sep0.21.10.50.6
Dec0.20.20.20.0
1994—Mar0.30.30.00.3
Jun0.20.50.40.1
Sep0.50.51.2-0.7
Dec0.20.21.2-1.0
1995—Mar0.40.41.2-0.7
Jun0.30.31.0-0.8
Sep0.60.50.20.4
Dec0.60.60.60.0
1996—Mar0.50.40.5-0.1
Jun0.30.20.8-0.6
Sep0.63.40.62.9
Percentage change from same quarter of previous year
Quarterly
1993—Dec1.01.71.40.3
1994—Mar1.01.71.30.4
Jun0.92.11.11.0
Sep1.21.51.8-0.3
Dec1.21.52.8-1.3
1995—Mar1.31.64.0-2.3
Jun1.41.44.6-3.2
Sep1.51.43.5-2.1
Dec1.91.72.9-1.2
1996—Mar1.91.82.2-0.4
Jun1.91.72.0-0.3
Sep1.94.62.32.1

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.

The trend of the RWRI was largely stable between June 1995 to June 1996. There was then a significant (2.9 percent) increase in the RWRI from the June 1996 quarter to the September 1996 quarter, reflecting the effect of the tax and benefit changes of July 1996. The RWRI in September 1996 was 2.1 percent higher than in September 1995.

These tax and benefit changes included decreases in the rate of personal taxation, changes to benefit abatement rates and the introduction of a new tax credit, the Independent Family Tax Credit for working families. The effects of all of these changes were included in the RWRI for the September 1996 quarter.

The September 1996 quarter of the RWRI was the final publication of the Real Wage Rate Index. The index was discontinued because of shortcomings which limit the value of the index for both information and analysis, and because of funding constraints within Statistics New Zealand. The index did not include irregular wage and salary payments such as bonuses and commissions. It also uses the Consumer Price Index which is a household-based deflator and the Labour Cost Index which is employer-based. Neither of these is totally consistent with wage changes which the index is supposed to reflect.

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-two 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 which provide direct services to some 11,000 members. Funded by subscriptions of voluntary members, it represents the country's employers by influencing the conditions in which they operate, particularly through developing public policy which supports 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.

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's main functions are:

National political and trade union representatives, including John Lepper, economic adviser to the Alliance party, attended the 5th anniversary of the Alliance Textile Mill workers‘ lock-out in the Octagon, Dunedin, 1997. The 1.3 workers have turned from picketing outside the factory to political lobbying.

  • 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 day 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 1997 set the adult minimum wage, for those aged 20 and over, at $7 per hour, $56 for an 8-hour day, and $280.00 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 $4.20 per hour, $33.60 for an 8-hour day, and $168.00 for a 40-hour week. The new statutory minimum wages rates came into force on 1 March 1997.

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: 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; Christmas Day (25 December); Boxing Day (26 December); 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.

Specials guard the approach to the wharf near J Shed in the Wellington waterfront strike of 1913 (photograph in the Otago Witness, 12 November 1913).

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.

TIME OUT AROUND THE WORLD
Annual leave entitlement, 1994

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 woman 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.

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 provides 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. Some projects funded by the EEO Fund which develop EEO resources will be available for wider distribution to employers and interest groups via the EEO Trust.

Work stoppages

Statistics relating to what are now termed work stoppages have been published regularly in the Yearbook since 1922 when data from the ‘Quarterly returns re Strikes and Lockouts’ was first collected by the then Department of Statistics and the Department of Labour. This early data was largely obtained from returns furnished by Inspectors of Factories. Work stoppages have, since 1922, been variously collected under the names ‘industrial disturbances’, ‘industrial disputes’ and ‘industrial stoppages’ before the term ‘work stoppages’ was adopted in 1984 when only those stoppages relating to terms and conditions of employment were collected.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. 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.

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.

  • 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. During the 1995 calendar year there were 69 stoppages recorded, the same number as in 1994, but significantly fewer than the 137 stoppages recorded five years ago. In the 1995 calendar year there were increases in the number of workers involved in stoppages, working days lost, and the estimated loss in wages and salaries. Only the figure for average days lost per employee was lower than in the previous year. However, all except average days lost per worker were down on levels recorded before 1993.

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, fell to 8.7 percent in 1994, 2.9 percent in 1995 and increased to 4 percent in 1996.

1 In 1984 data was revised from 1980 in accordance with this reclassification. Hence protests over the presence of a nuclear-powered vessel, or where a demand was made of a third party, eg the Government, were no longer included in the narrower classification ‘work stoppages’.

NUMBER OF STOPPAGES

TOTAL WORKDAYS LOST

LOCKOUTS
As a percentage of all stoppages

Table 14.19. WORK STOPPAGES: 1921-96

YearTotal stoppagesWorkers involvedWorking days lostAverage days lost per worker involvedEstimated loss of wages

Source: Department of Labour

 $(000)
192177"10,433""119,208"11.43180
192659"6,264""47,811"7.6365
193124"6,356""48,486"7.6389
193643"7,354""16,980"2.3126
194189"15,261""26,237"1.7269
194696"15,696""30,393"1.9480
1951109"36,878""1,157,390"31.386,223
195650"13,579""23,870"1.76168
196171"16,626""38,185"2.30299
1966145"33,132""99,095"2.99878
1971313"86,009""162,563"1.892,109
1976487"201,085""488,441"2.4310.840
1981291"135,006""388,086"2.8720,411
1986215"100,633""1,329,054"13.21119,496
199171"51,962""99,032"1.9111,577
199254"26,803""113,742"4.2419,372
199358"21,303""23,770"1.122,863
199469"16,042""38,263"2.394,580
199569"32,048""53,352" P1.666,813
199674 P"44,400" P"72,928" P1.64 P10.245P

Table 14.2. WORK STOPPAGES IN SELECTED INDUSTRIES*

 Total Number of StoppagesNumber of Employees involvedPerson-days of Work lost‡ §Average Days lost Per EmployeeEstimated Loss in Wages and Salaries|

*ANZSIC: Australian and New Zealand Standard Industrial Classification.

†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.

‡Previously termed working days lost.

§Rounded to the nearest whole day.

||Rounded to the nearest $1,000.

¶This is a combination of industries. Mining, Electricity Gas & Water Supply; Construction; Wholesale Trade, Retail Trade, Accommodation, Cafes & Restaurants; Finance & Insurance, Property & Business Services; Cultural, Recreational, Personnel & Other Services.

**The total figures for working days lost and losses in wages and salaries may not add to the sum of their respective columns due to rounding of each figure.

.. = suppressed to maintain confidentiality.

Source: Department of Labour and Statistics New Zealand

     $(000)
Manufacturing
1993201,8103,0341.68371
1994334,02812,8183.181,457
1995265,12323,2974.552,687
199623 P3,739 P18,876 P5.05 P2,765P
Health and Community Services
1993163,4887,9622,28896
1994152,7125,5102.03638
19952........
199612P523 P1,026P1.96P203P
Education
19932........
199431,7052,4821.46276
19951319,03022,4091.183,072
199610P22,156P17,993 P0.81 P2,963P
Government Administration and Defence
199339521140.1213
199451,1745500.4772
199592,3117021.6089
19969P8,794 P14,676 P1.67 P1,706P
Transport, Storage and Communication Services
199353842960.7721
199435,88215,6302.662,028
199582,8114,4841.60690
19969P2,877 P4,987 P1.73 P684P
Other¶
199312........
1994105411,2742.35109
199511........
199611P6,311P15,370P2.44 P1.924P
        Total all stoppages**
19935821,30323,7701.122,863
19946916,04238,2632.394,580
19956932,04853,352P1.666,813
199674 P44,400 P72,928 P1.64P10,245P

Contributors

  • 14.1 Statistics New Zealand

  • 14.2 Statistics New Zealand.

  • 14.3 Education and Training Support Agency; Career Services; New Zealand Employment Service; Te Puni Kōkiri; Community Employment Group; Ministry of Youth Affairs.

  • 14.4 Statistics New Zealand.

  • 14.5 Department of Labour; New Zealand Council of Trade Unions; New Zealand Employers‘ Federation; Industrial Relations Service; EEO Trust; Statistics New Zealand.

Special articles

Statistics New Zealand; Department of Labour; Student Job Search.

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.

New Zealand Social Trends. Work; Statistics New Zealand.

Quarterly Employment Survey. Statistics New Zealand.

Report of the Career Services (Parl paper E.27).

Report of the Department of Labour (includes Industrial Relations Service, New Zealand Employment Service, Community Employment Group) (Parl paper G.1).

Work Stoppages Survey. Statistics New Zealand and Department of Labour.

Labour Relations

Contract—The Report on Current Industrial Relations In New Zealand. Department of Labour (quarterly).

Employment—Your Contract, Your Rights, Your Obligations. Department of Labour, 1996.

Holding the balance: A history of New Zealand's Department of Labour, 1891-1995. John Martin, Canterbury University Press, 1996.

Chapter 15. Science and technology

Noted anthropologist Henry Skinner and his camp at Te Roto, Chatham Islands in 1924.

15.1 A history of science in New Zealand

Early science

The early Māori and science. Critical observation by the early Māori of the natural environment, and adaptation of tropical crops to a temperate climate, are characteristics of an incipient science; but the absence of a written language prevented the development of the structure of a science as we know it today. Māori familiarity with genealogy (whakapapa) is evidence of an awareness of genetics. Māori recognition of plant variation is evidenced for example by the selection and maintenance of genetically distinct cultivars of kumara and flax (Phormium), some still in cultivation today. This knowledge of rudimentary applied genetics was not unlike that possessed by some of the first Pakeha settlers.

Māori also developed a sophisticated storage procedure for the kumara, preparation of the underground portion of the cabbage tree (Cordyline) for the utilisation of its sugar content, and a range of herbal medicines utilising indigenous plants.

European voyages of discovery. At a time when descriptive science was at its height in Europe, New Zealand, the last of the world's temperate regions to be discovered by Europeans, attracted the interest of scientists, especially those concerned with natural history. It was the botanists who pioneered early science in New Zealand. Initially they were visitors, followed later by resident scientists.

Formal science in New Zealand commenced with the voyage—for the purpose of observing the transit of Venus from Tahiti—of James Cook in 1769. He was accompanied on the Endeavour by botanists Joseph Banks and Daniel Solander assisted by natural history artists, including Sydney Parkinson. Banks and Solander recorded many plants, but the findings of this voyage of discovery were not formally published though Solander's unpublished manuscript, Primitiae Florae Novae Zelandiae is a catalogue of 343 plant species collected in the North and South Islands in 1769 and 1770. It was the first descriptive account of science in New Zealand and even today Solander's work is relevant.

Other early visiting scientists included Johann and George Forster on Cook's second voyage to New Zealand, who published much information about New Zealand plants. The visit of leading botanist J.D.Hooker added to knowledge and French botanist and surgeon Etienne Raoul spent three years at Akaroa and the Bay of Islands and added substantially to the first records of the New Zealand flora.

The first professionals. As colonisation gathered momentum—and with it the demand for land and raw materials—pressure mounted for local administrators to more accurately determine the nature of the country's physical resources. Surveyors were directed into the remote interior and systematic geological studies were undertaken. Professional scientists began to be engaged, with their research directed towards specific commercial goals.

The first of these was Ernst Dieffenbach, a German naturalist employed by the New Zealand Company on the 1838 Tory expedition. His task was to file reports relating to “navigation, geography, geology, botany, and zoology, and the traditions, customs and character of the natives”.

In many ways Dieffenbach embodied the best qualities of the many talented scientists contributing to the fledgling colony. Meticulous and versatile, and with a fine sensitivity towards Māori culture, he completed a study of the Māori race which was influential in making the emergent discipline of ethnology respectable in Europe. In the service of the company he displayed extraordinary stamina and resourcefulness, and a prescience which still impresses: “What a chain of alterations, in the distribution and number of animated beings, takes place from the introduction by man of a single animal in a country where it was before unknown!" he wrote, echoing the ecological instincts of Colenso and of the Māori.

Dieffenbach became the first European to make an alpine ascent, scaling Mt Egmont, Taranaki and, characteristically, determining its height by measuring the boiling point of water at its summit. Following extensive journeys through the North Island he returned to England, publishing in 1843 his Travels in New Zealand, the first general scientific account of the country.

An early geologist, and one whose career was to have a far-reaching impact on antipodean science, was Ferdinand von Hochstetter. Arriving on the Austrian expedition ship Novara in 1858, he was asked to undertake a survey of the Auckland province's coalfields. On the strength of his report, the New Zealand Government secured his services for detailed investigations into the geology, physical geography and natural history of the country. For nine months, often in the company of Julius von Haast and Charles Heaphy, Hochstetter explored much of the North Island and the upper South Island as far south as Lake Rotoiti. His detailed fieldwork established the foundations of New Zealand geography and helped break the pattern of collecting and systematising, which was beginning to straitjacket resident naturalists.

With the value of such work clearly demonstrated, steps were taken by the other provinces to build on Auckland's example and appoint provincial geologists. Haast, formerly Hochstetter's assistant, became provincial geologist in Canterbury (1861 -68), then founder-director of the Canterbury Museum (1870-87). He also lectured at Canterbury University College, later taking its first chair in geology.

James Hector, another outstanding scientist, was appointed provincial geologist in Otago in 1862, being joined later by the future colonial analyst, William Skey. Hector was succeeded in 1873 by the third of the country's most eminent contributors to nineteenth century geology and biology, Frederick Hutton. Later Hutton served as professor of geology at Otago (1877) and Canterbury (1880), becoming curator of the Canterbury Museum in 1893. He had wide-ranging interests, but his real achievement lay in the systematic descriptions of fossil and living shells and other animals summarised in his Index Faunae Novae-Zealandiae.

If Hochstetter's example opened up opportunities for talented individuals, it also fostered an independent scientific outlook. But by the mid-1860s it was clear that isolation and overwork, the absence of reference collections, and the limited opportunities for publication, could only be overcome through the establishment of a formal institutional base.

The era of consolidation

A small number of well-educated men and women with a Victorian inquisitiveness about the natural world provided support needed to develop the colony's early scientific organisations. Their role remained crucial until late in the century when the demands of an agricultural economy changed the face of research.

Institutional growth. In 1865 the Geological Survey was established in Wellington, with James Hector as its first director. Hector, who had arrived in 1862, first examined Otago's goldfields and explored Fiordland. He then distinguished himself gathering natural history material throughout the colony for the New Zealand Industrial Exhibition. He proved an able administrator, and his responsibilities from that year included the Colonial Museum and the Colonial Laboratory, to which were added, in 1868, meteorological observations. Hector held the post for 38 years, and together with his colleague Haast pushed geology into the limelight, perhaps at the expense of other disciplines. But then, in the popular imagination geology meant gold, and struggling colonists equated gold with progress.

In the provinces, scientific life largely revolved around the museums and their gifted curators. Auckland's museum, now the Auckland Institute and Museum, opened in 1852 and achieved a high profile as a result of the botanical achievements of its curator, Thomas Cheeseman. Canterbury's museum developed under the guiding hand of Haast, and in Otago Hector's Industrial Exhibition collection formed the nucleus of a museum which, from 1877, became closely associated with the University of Otago. Its first three curators, Hutton. Parker and Benham, were all elected Fellows of the Royal Society of London—reinforcing New Zealand's standing in the world-wide scientific community.

Foundation of the societies. Internationally the growth of institutions has generally been accompanied by the emergence of scientific societies, which come to serve both as a forum for debate and as a vehicle for the spread of information. New Zealand is no exception. Because of the isolation of New Zealand scientists from specialist colleagues overseas, societies have always been strong in New Zealand and virtually all fields of science are covered.

Inspired by Australia's Tasmanian Society, local equivalents began tentatively to appear, not in the rough-and-ready Bay of Islands (a favoured haunt of visiting naturalists), but in the planned southern settlements. The first of these, the Literary and Scientific Institute of Nelson, was formed by enthusiastic immigrants in 1841 while their ship, Whitby, was still at sea, and before the name “Nelson" had even appeared on maps. In 1842 the building of a library and reading room began, and across Cook Strait the Wellington Horticultural and Botanical Society held its inaugural meeting the same year.

Mechanics institutes were soon established in provincial centres, offering ready access to libraries stocked with works on natural history. Although not generally considered “learned societies", and sometimes struggling financially, their influence in helping communicate scientific knowledge to a wider audience was considerable.

The founding of the New Zealand Institute in 1868 was a landmark development, offering for the first time a national organisation within which the scattered societies could effectively function, and with opportunity for regular scientific publication. The Institute owed its existence in part to the interest of Sir George Grey who had, while Governor of Cape Colony, been instrumental in bringing Hochstetter to Auckland and later in founding, along with Water Mantell, the short-lived New Zealand Society in 1861.

New Zealand Institute of Chemistry stand at the Royal Society Science Exhibition, Wellington Town Hall, April 1948.

Hector, already Director of the Colonial Museum and Geological Survey, was appointed manager and editor of the Institute at its inception, a position he held for 35 years. A major responsibility was the publishing of the Institute's Transactions and Proceedings—undoubtedly the single greatest record of the country's scientific endeavour, and a cornerstone of scientific publication in New Zealand. Despite a full public life, which included a period as Chancellor of the University of New Zealand, Hector continued to be actively involved in biological research (which he termed his “sideshows”), producing papers on fish, whales, moas and other birds. His major geological contributions include Outline of New Zealand Geology (1896), and research on glaciation and fossil reptiles.

In 1933 the Institute became the Royal Society of New Zealand and, with government support, continues to play an important part in the scientific life of the country. Its members represent the country in many international forums, such as the International Council of Scientific Unions (ICSU). The most notable New Zealand scientists are elected Fellows of the Royal Society of New Zealand (FRSNZ).

The New Zealand Association of Scientists was established in 1941 to further the interests of scientists and to promote science and scientific method. It publishes the New Zealand Science Review, and the Directory of New Zealand Science, which lists the many smaller bodies serving professionals in bacteriology, dairy science, ecology, genetics, astronomy, soil science, and many other disciplines.

The New Zealand Science Congresses conducted under the auspices of the Royal Society of New Zealand were once an important feature of New Zealand science and embraced all aspects of science in periodic meetings, first held in 1919 in Christchurch and continued into the 1970s. Australian and New Zealand scientists met periodically under the auspices of the Australia and New Zealand Association for the advancement of Science (ANZAAS). The first meeting of ANZAAS was in 1888. The Pacific Science Congress first met in 1920 in Honolulu and has been a forum for scientists in the Pacific region.

These forums helped to reduce New Zealand scientists‘ feeling of isolation. In more recent times, air travel and modern methods of communication have radically changed the outlook for scientists and international contacts are now commonplace.

Scientific publication. The venues for the publication of research findings has also changed radically in recent years. Although Transactions continues as the Journal of the Royal Society of New Zealand, a range of specialist journals especially in applied science relating to New Zealand have been introduced in recent years (see separate article).

The New Zealand Journal of Agriculture, first published in 1910, was a pioneer publication for agriculture in New Zealand and contained records of agricultural and horticultural research.

In addition to the more formal scientific journals a great range of second-tier publications and newsletters have been published in recent years by the specialist science societies and various research organisations, eg The New Zealand Wheat Review was first published in 1946 from the Wheat Research Institute in Christchurch.

This rare 8m-long squid, weighing nearly a tonne, is the second-largest recorded in New Zealand waters. It was caught by the National Institute of Water and Atmospheric Research vessel Tangaroa, north-west of the Chatham Islands, in 1996.

Government-sponsored science

The founding of the New Zealand Geological Survey in 1865, the appointment of William Skey as the Colonial Analyst under the Adulteration of Food Act 1866, and the establishment of the Meteorological Service in 1861, marked the beginning of the government's rôle in science in New Zealand. From those early times new institutions and varying forms of administration developed. The first tentative move in the direction of systematic research came in 1913 when the Board of Science and Art was established, primarily to publish scientific work. Earlier, in 1892 with the establishment of the Department of Agriculture, a start was made on the application of science to agriculture. The appointment of A.H.Cockayne in 1904 as the Assistant Biologist in the Department later had an influence in the development of government-sponsored biological research in New Zealand.

Modern government-sponsored science dates from the Heath Report in 1926 which led to the founding in that year of the Department of Scientific and Industrial Research (DSIR), which became the largest scientific organisation in New Zealand. Its function was to co-ordinate and apply scientific research beneficial to the primary and secondary industries. The nucleus of the new DSIR was the Dominion Laboratory, Dominion Museum, the Observatory, Meteorological Service, and Geological Survey.

Over the years the DSIR expanded to embrace new disciplines such as biotechnology, environmental science and information technology and its structure evolved into four groups: biological industries, industrial resources, and corporate operations. Throughout its history, the DSIR provided scientific services to other government departments, such as those responsible for justice, forestry, agriculture, health, transport, and works.

The progenitor of the biology divisions of the DSIR was the Department of Agriculture's Biological Laboratory which initially developed with the appointment of A.H.Cockayne to the Department. He was placed in charge of the laboratory in 1911. On the laboratory staff were many pioneer biologists, including G.H. Cunningham, New Zealand's greatest plant pathologist and mycologist and one of the early New Zealand scientists to be elected a Fellow of the Royal Society of London. He became Director of the DSIR's Plant Diseases Division. The Biological Laboratory evolved into the Plant Research Station at Palmerston North, jointly run by the DSIR and the Department of Agriculture. The station included specialists in plant pathology, entomology, grasslands research, agronomy, and botany. These sections of the station later became divisions of the DSIR in a reorganisation in 1936: Plant Diseases Division, Entomology Division, Grasslands Division, Fruit Research Division, Agronomy Division, and Botany Division. They remained intact for 56 years until the dissolution of DSIR in 1992 and the formation of the independent Crown Research Institutes. These and the other 21 DSIR divisions provided excellent service in the field of applied science to the primary and secondary industries, as well as many government departments, and also catered for some of the scientific requirements of the universities, including the publication of research findings within New Zealand. The expertise of the DSIR was available to private citizens and the organisation developed over the years an outstanding record for providing reliable expertise on all matters relating to science.

Stability and consistency in the funding of government-sponsored science in the DSIR between 1926 and 1992 had major advantages for applied science in New Zealand, especially in the biological sciences where long-term projects such as plant breeding could be brought to successful conclusions. Also benefiting from this kind of support for research was the establishment of essential long-term basic resources for present and future biological research such as the mycological herbarium which had been assembled at the former Plant Diseases Division, and the botanical herbarium assembled at the former Botany Division. These vital projects would not have succeeded with short-term funding.

A National Research Advisory Council was established in 1964 to advise the Government on national policy for scientific research relevant to the country's economic development. Assessing priorities for research had become increasingly necessary given the limited funds available.

Following the initiation of a new government policy, broadly referred to as “user pays", a major change in DSIR policy began in the 1980s with an emphasis on user pays in science. In 1992 a major re-organisation resulted in the dissolution of the DSIR and the establishment of independent Crown Research Institutes. Some specialist divisions of DSIR disappeared and the staff were distributed into other relevant CRIs, eg the staff of Plant Diseases and Entomology divisions were merged with Landcare Research, Horticultural Research, and Crop and Food Research. Botany Division was merged with Landcare Research.

A competitive contracting method of funding was introduced and the merit of projects was assessed by the Foundation for Research, Science and Technology. University scientists can now apply for funding from the foundation. A separate Marsden Fund was established in 1995 to cater for more basic research. For the first time, scientists outside the main research organisations can apply for funding, to the benefit of part-time researchers, including women.

These changes in the organisation of science in New Zealand were accompanied in 1990 by 43 redundancies in the 21 divisions of the former DSIR; and in October 1996, 22 staff were made redundant from the Crown Research Institute of Geological and Nuclear Sciences. These were the first redundancies in recent years in New Zealand government-sponsored science.

Independent research organisations. As well as the major government-sponsored CRIs, there are important privately-funded research organisations, especially industry-based organisations. Foremost among these is Nelson's Cawthron Institute, established in 1920. T.H.Easterfield was the first Director and the institute has had many pioneer New Zealand scientists including T.Rigg and Kathleen Curtis. The Cawthron's research has been primarily in agriculture, horticulture, and plant pathology with microbiology a major theme in recent years. Discoveries at Cawthron Institute over the years, notably those relating to trace elements, have greatly benefited New Zealand's primary sector.

Retiring Dean of Science and one of Canterbury University's longest-serving staff members, freshwater ecologist Dr Vida Stout, plans to continue her research study of South Island's many lakes, tarns and ponds. Dr Stout was one of the first New Zealand women to complete a PhD in a science discipline, and was foundation president of the New Zealand Limnological Society. Her van Dorn water sampler is designed to take samples at any depth.

Medical research. Medical research in New Zealand is conducted at Medical Schools in the University of Otago (established 1869) with the associated Christchurch and Wellington Schools of Medicine, and in the University of Auckland (established 1968). The Medical Research Council was established in 1937 and has funded extensive research in the Otago Medical School. In 1991 the MRC became Health Research of New Zealand. Many major advances in the health of New Zealanders followed from research supported by the MRC, including the abolition of thyroid enlargement (goitre), especially through the researches of H.D.Purves working at the Otago Medical School. New Zealanders also greatly benefited through the research on nutrition by Muriel Bell, also at the Otago Medical School.

The Cancer Society of New Zealand has been another important funder of research and in cytogenetics, P.H.Fitzgerald and his colleagues have made discoveries leading to the characterisation of chromosome abnormalities in humans and genetic counselling. In 1963 the MRC established a Human Genetics Unit at the Otago Medical School.

The universities. Like the scientific societies, New Zealand universities developed initially in the more populous and relatively affluent southern settlements, firstly in Otago (1869) and then Canterbury (1873). Auckland followed in 1882, Victoria (Wellington) in 1897, and the University of Waikato much later in 1963. Until 1961 all four older Universities functioned as colleges of the University of New Zealand. Massey Agricultural College was established in 1926 and in 1964 became Massey University; Lincoln Agricultural College was established in 1878 and in 1990 became Lincoln University.

Before 1950, the universities were poorly staffed and ill-equipped for scientific research. Teaching rather than research was the norm, though there were exceptions. In the 1950s and 1960s New Zealand, along with other Western countries, saw a great expansion in university science. A major reason for this sudden expansion seems to have been the result of the Cold War era, particularly the Soviet achievements in space with the successful launching of the Sputnik earth satellites in 1957.

The introduction of doctorates in New Zealand, the devolution of the universities, and the growth in student numbers resulted in expanding academic staff, the construction and equipping of new science buildings at all the universities, and much more scientific research.

Women in science. The participation of women in all facets of science in New Zealand has increased in recent years. In earlier times, little or no science was taught to girls in secondary schools. The subject of home science was often their only introduction to science. Girls were not encouraged to study science at school or at university. However, by the 1920s biology and especially botanical science attracted many women and today women are active in all facets of science. The highest accolade available to scientists in New Zealand is a Fellowship of the Royal Society of New Zealand. In 1946, out of a total of 45 Fellows there was just one woman (Kathleen Curtis), and in 1995 out of 230 Fellows, 15 were women.

“The organisation of biological science in New Zealand.” A somewhat static display at the Royal Society Science Exhibition in the Wellington Town Hall, April 1948.

Achievements in science. As a measure of achievement in science, some 30 New Zealanders have been elected Fellows of the Royal Society of London, one of the most prestigious scientific awards available. Ernest Rutherford (Chemistry, 1908) and Maurice Wilkins (Medicine, 1962) are New Zealand-born Nobel Prize winners. Leonard Cockayne (1855-1934), the pioneer botnist (and father of pioneer agriculturist A.H.Cockayne) was one of our most distinguished scientists. He received many international awards, including the Darwin Medal (1928), the only New Zealander to receive this award.

Science in wartime

From the outset of World War II, scientists in New Zealand, especially in government-sponsored institutions, quickly adapted their expertise to the Allied war effort. The cessation of essential supplies from the Axis powers and from countries overrun by the enemy produced a search for replacement materials from New Zealand sources. The entry of Japan into the war shifted scientific research towards problems relating more to the Pacific theatre. Much of the wartime research was done by scientists in the DSIR and the Department of Agriculture. DSIR divisions such as the Dominion Physical Laboratory expanded, and the DSIR Industrial Development Divisions in Auckland and Christchurch were started. DSIR was given legal control of the national physical standards. Wartime projects involving food production and processing helped initiate extensive developments in biological sciences in the post-war years. Within the scientific community, men joined the services, giving women graduates unprecedented opportunities to obtain university and government positions, and to contribute to the war effort.

Biologists in the DSIR (especially Lucy Moore) participated in the establishment of an agar industry (Davis); research on fibre plants including linen flax; (and the development of a wartime industry), hemp and Phormium; food processing; research on medicinal plants; the establishment of appropriate grass species on airfields; and the prevention of rotting in canvas. The entry of Japan into the war affected the emphasis on food production, and scientists participated in the production of fresh vegetables (Services Vegetable Production scheme), especially for the American Servicemen stationed in New Zealand. Other contributions by scientists to the war effort on the home front included the production of fish liver oil (to replace imported codliver oil), and a survival booklet for servicemen (especially American pilots) in the Pacific war theatre.

Science at work

By the first decades of the twentieth century the time had come to build on the groundwork of the scientific pioneers. It was clear that agriculture and, to a lesser extent, forestry would be the mainstay of the future economy, and both desperately needed the fruits of applied research. Farmers running out of new land to break in looked to science to increase their yields and, along with orchardists and foresters, sought relief from the ravages of introduced animals and diseases, and insect pests.

Easily accessible resources had given the country an enviable standard of living, but it was apparent that maintaining that standard would come to rely on the development of less readily available resources. In an increasingly technological age that meant more investment in scientific research.

New grasses and improved crop plants were developed and insect pests and plant diseases overcome, hydro-electricity was augmented by geothermal power and indigenous heartwood timbers were replaced by plantation-grown exotic softwoods.

As society has increased in complexity and world markets have become more competitive, scientific research grew in importance, helping the country adjust to massive economic and society shifts such as those caused by British entry into the European Economic Community, the energy crisis of the 1970s, and more recently economic deregulation, and the spread of microchip technology.

Science in agriculture. The most consistently applied scientific research, and the most successful, has been directed towards the primary industries. Plant diseases and insect pests have been identified, their damage assessed and control measures recommended. With increased international trade, and travellers to New Zealand, the possibility of diseases and pests being introduced has become an increasingly important problem.

Growing awareness of the dangers of excessive use of fungicides and insecticides, the general concern about pollution in the environment, and the presence of residues on fruit for the export market, has seen the emergence of more sophisticated control measures such as the use of parasites and insect pheromones. Biological control methods are being extended to the control of many troublesome weeds by insects.

With the realisation that grasslands farmers were in fact harvesting a crop, more attention was paid to improving its performance, both by growing new strains and by technological developments like aerial topdressing which, after World War II, was instrumental in maintaining the fertility of New Zealand's hill country.

New pasture plants developed by the DSIR's Grasslands Division in association with Ministry of Agriculture and Fisheries, plus the advances in pasture management, saw New Zealand leading the world in grassland farming. A soil survey of the entire country was completed in the 1960s and mineral deficiency diseases such as “bush sickness", which denied profitable use of the central plateau's pumice lands, were diagnosed and remedied.

Plant diseases caused by fungi, bacteria, and viruses were identified and brought under control. These researches resulted in some pioneering discoveries including the first method of combining heat treatment and plant tissue culture to cure potato plants of virus disease. Modifications of this procedure were later used in New Zealand and overseas to cure a range of different plants of significance in horticulture. In the 1950s, the late R.E.F.Matthews, then a researcher on the staff of Plant Diseases Division, initiated experiments into the control of virus diseases of plants by spraying the infected plants with nudeic acid analogues including 8-azaguanine. Though these experiments failed to cure the virus-infected plants, they led to pioneer discoveries providing some of the early evidence for the key role of nucleic acid in biology. Matthews‘ research was an example of work which had a very practical aim in plant pathology, yielding results of significance to basic biology. The reverse is also common and an example is the use of techniques in DNA analysis developed from basic research which are now a standard procedure in criminal investigations.

Perhaps one of the greatest achievements in agricultural research in the 1950s and 1960s was the resolution of the fungal cause of the facial eczema disease of sheep. Many researchers in a wide range of scientific disciplines contributed to the solving of this intractable problem that caused heavy losses to sheep farmers.

Plant breeding in the DSIR's Crop Research Division helped to improve the yield and quality of crop plants, including wheat, oats, barley, potato, brassicas, peas, and hops. Improved pasture species were bred at Grasslands Division and apples at Fruit Research Division. These improved cultivars were developed from long-term plant breeding projects, though genetic engineering has in recent years held out hope for a more rapid and effective transfer of genes to produce higher yielding, better quality, and diseases and herbicide resistant plants. Genetic engineering experiments with sheep are included in the molecular biology research in the joint AgResearch-University of Otago Molecular Biology Unit in Dunedin. In association with developments in genetic engineering, reproductive technology such as artificial insemination and embryo culture are now well established and provide successful procedures in animal breeding. In plant breeding novel techniques of tissue culture have provided procedures which have significantly improved the success of older plant breeding methods.

Pioneering research by H.O.Askew and others at the Cawthron Institute determined the important rôle of trace elements in agriculture and horticulture. This research included some notable discoveries, including the identification and control of boron deficiency in apples by J.D.Atkinson in 1936.

In 1947 the Forest Research Institute was established in Rotorua to undertake forest and forest-product research for the Forest Service (later Ministry of Forestry). Its early work, particularly on native timbers and timber preservation, has expanded with the industry. The institute has been involved in such diverse work as harvest planning, nursery technology, timber engineering, tree breeding, and soil protection.

Closely associated with the former DSIR were independent organisations undertaking agricultural research: the Wool Industries‘ Research Institute, which was concerned with wool manufacture; the Fertiliser Manufacturers‘ Research Association; the Wool Research Organisation; and the Dairy Research Institute.

Industrial research. Industry itself has channelled increasing funds into research as different types of manufacturing became established. This has been both for its own needs and, together with individuals, for philanthropic purposes. But from the beginning it was obvious that private and state enterprises would rely heavily on government-assisted research. To be effective, such research has concentrated on two areas; projects of national significance, like the evaluation of iron ore deposits, and projects likely to be useful to a number of end-users.

Setting a fruit-fly trap after the flies were discovered in Mt Roskill, Auckland, on 2 May 1996. Between 2 and 23 May a total of 41 adult fruit flies and 85 larvae were found. The flies probably came into New Zealand inside undeclared fruit brought by a traveller, as commercial shipments are fumigated. The eradication programme alone cost over $4 million, not including the value of lost export earnings after trading partners put controls on receiving New Zealand produce. Surveillance for insect pests has since been strengthened.

Though still not as extensive as in agricultural research, the government (mainly former DSIR) involvement in industry has, over the years, provided a framework within which the country has developed both industry and public amenities. Activities have steadily broadened to include mineral exploration and development, building research, the application of mathematical techniques to industrial problems, and robotics.

In the early 1980s the Oceanographic Institute completed mapping the country's ocean floor and analysing sediments on the continental shelf—an indispensable preliminary to the siting of undersea oil and gas pipelines and power cables. The institute also assessed the commercial value of marine minerals like manganese nodules.

The energy crisis of the early 1970s brought to prominence the importance in a modern industrial society of a broad research base. DSIR divisions worked towards minimising economic disruption by testing alternative fuels including methanol, synthetic petrol, and biomass conversion, and studying the feasibility of local CNG conversion kits and cylinders.

The distinction between science and technology has always been contentious, though the application of scientific techniques to engineering has undoubtedly been crucial to New Zealand.

Computer modelling of earthquake stresses on building structures by the Dominion Physical Laboratory in 1960, for example, broke new ground in engineering studies. And work by geologists, geophysicists, and chemists on geothermal power in Kawerau resulted in direct use of steam in the pulp and paper industry.

Another function of the DSIR was technology transfer—the communication of research findings through workshops, seminars and printed papers. In this it was helped by the work of research associations, supported by both government and specific industry sectors. Begun soon after World War II, they were an initiative of the Manufacturers‘ Research Committee, formed in 1944. Several are associated with industry, ranging from the New Zealand Leather and Shoe Research Association, the Concrete Research Association, and the New Zealand Pottery and Ceramics Research Association to the Heavy Engineering Research Association.

Environmental science

Worldwide concern about pollution, depletion of finite resources, and despoliation of the natural environment with a loss of species from the fauna and flora in many regions, has seen a worldwide upsurge in environmental science. In New Zealand, research relating to environmental issues was included in the research programme of the former DSIR's Botany and Ecology divisions (now Landcare Research). Environmental concerns have helped to speed the development of biological control procedures for weeds and pests. Research in the DSIR's Botany Division helped to determine the indigenous plants that are rare or endangered. The division also surveyed and assessed National Parks and Reserves and published inventories. A new Department of Conservation was established in 1987 with the task of managing the conservation estate.

Antarctic research. New Zealand's position in the South Pacific meant that we are strategically placed in relation to Antarctica. Exploration began with the reconnaissance of James Cook and continued with the explorations by whalers and sealers. New Zealand has been a staging post for many expeditions and in recent years the United States Antarctic Programme has been serviced from Christchurch. New Zealand's participation in the International Geophysical Year (IGY) in 1957 heralded the more active participation of New Zealand scientists in Antarctic research. The implementation of a programme of exploration and research in the Ross Dependency was initially the responsibility of the former DSIR's Geophysics Division. When it was decided New Zealand activity in Antarctica should be on a permanent basis at the end of IGY activities in 1958, the DSIR's Antarctic Division was formed to co-ordinate Antarctic research. Government-sponsored and university scientists have worked in meteorology, geology and glaciology, upper atmosphere research, seismology, geomagnetism, oceanography, ionosphere research, and biology. With evidence of global warming and depletion of the ozone, Antarctica has assumed increasing significance. With the dissolution of DSIR in 1992 Antarctic research became part of the New Zealand Antarctic Programme under the control of the Ministry of External Relations and Trade. The New Zealand Antarctic Programme was in turn replaced in 1996 by Antarctica New Zealand, a Crown Research Institute based in Christchurch.

15.2 Organisation of science

The present 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.

The science system in New Zealand

Science and technology policy. In 1996 the government adopted three high-level policy goals for research, science and technology. These are:

  • Fostering societal values and attitudes that recognise science and technology as critical to future prosperity;

  • Ensuring an adequate level of investment in science as a component in national life which has cultural value in its own right; and

  • Maximising the direct contribution of science and technology to diverse social, economic and environmental goals.

The government's investment is designed to strengthen the overall national infrastructure for research, science and technology. It aims to ensure the availability of resources, particularly human resources, necessary to conduct effective public and private research and development and to ensure the effective use of technology in enterprises. However, the public investment in science does not overlap with or duplicate private sector investment which directly leads to commercial benefits.

Organisational design. A key element of the far-reaching science reforms undertaken in New Zealand from 1989 to 1992, was the organisational separation of the government's involvement in science and technology policy, science funding and the carrying out of research and development, with the aim of establishing clearer objectives at all levels in the science system. The system is characterised by highly focused operating agencies, with strong, transparent incentives for excellent science performance.

The Ministry of Research, Science and Technology (MoRST) is the primary adviser to the Government on science and technology policy, including advice on science priorities and funding. MoRST is also responsible for gathering and disseminating statistics and descriptive information on research, science and technology activities, administering international science relations at an intergovernmental level, and monitoring Government funding of science. MoRST also provides scientific and technical advice for public policy development and coordinates science funding and activity on topics of national importance, where a range of funding agencies and science organisations are involved.

The Ministerial Advisory Group (MAGST), with members appointed by the Minister of Research, Science and Technology, provides a consultative forum on issues and policy proposals to do with research, science and technology.

Nga Kaitirotiro Putaiao (Māori Advisory Committee) advises MoRST and CCMAU on Māori issues in relation to the Research, Science and Technology and Crown Research Institute portfolios. It also assists with consultation between MoRST and CCMAU and the Māori community.

The International Science and Technology Advisory Committee (ISTAC) provides the Minister of Research, Science and Technology with strategic advice on New Zealand's international science and technology linkages, and also advises on relative priorities for programme funding from the International Science Linkages Fund.

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 Advisors 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.

Science and research funding

New Zealand's research effort is funded by the government, the private sector and the universities. A 1993-94 survey released by MoRST in 1996 showed that the total expenditure for research and development was $825 million, or 1.02 percent of GDP. In 1993-94, the business sector spent $293 million on research (including $14 million spent overseas); the government spent $346 million in New Zealand, $1.2 million overseas and $106 million from general university funds. Others spent $95 million on research and development in New Zealand, this being made up of university own fund expenditure, $57 million; private non-profit $17.8 million; and overseas funds, $20.1 million. (All figures are exclusive of goods and service tax in compliance with OECD measurement standards).

PERSONNEL ENGAGED IN RESEARCH AND DEVELOPMENT
per million population
 Scientists & engineersTechnicians
Source: UNESCO Statistical Yearbook 1995
Australia. 19902477943
Canada, 19912322978
China, 19921128-
India, 1990151114
Israel, 198448261032
Japan, 19925677869
Netherlands, 199126561774
New Zealand, 19901555785
Singapore, 19871284583
Switzerland, 198924091374
USA, 19883873-

Government funding

Total public investment in 1996-97 is approximately $520 million (including GST), which is about 0.56 percent of GDP.

Public Good Science Fund (PGSF)

The PGSF is the government's major investment in strategic science and technology. The PGSF has a value of $267.7 million in 1996-97 (see separate table).

Public good science and technology is defined as research that is likely to increase knowledge or understanding of the physical, biological or social environment; develop, maintain or increase research skills or scientific expertise that is or are likely to be of particular importance to New Zealand; or which may be of benefit to New Zealand, but is unlikely to be funded from non government sources.

Public good science and technology funds are potentially available through a contestable bidding system to all organisations and individuals involved in research and development.

The allocation of funds is guided by priorities which are determined by the Government after a widely consultative process, involving both scientists and end-users. Priorities are expressed by setting five-year funding targets for broad areas to which the research, scientific services and technology are expected to contribute.

The Marsden Fund is for the support of scientific and technological research which is characterised by excellence, irrespective of topic or research area. In recognition of the artificiality of many of barriers between the academic disciplines, humanities are included in the Marsden Fund from 1997-98. The Marsden Fund for unprioritised science has a value of $11 million in 1996-97 and will rise to $22 million in 1997-98.

The Technology for Business Growth programme aims to promote technology and innovation as essential elements of competitive strategy in enterprise. The programme includes the Technology for Business Growth scheme ($7.714 million), the Graduates in Industry Fellowships scheme ($2.56 million), TechStart ($0.8 million) and the Visiting Technologist scheme ($0.2 million).

Promotion of science and technology

An important element of science and technology promotion is the support of fellowships which enable role models to be recognised and publicised.

A new programme of Māori Science and Technology Fellowships began in 1996-97. This programme will develop and promote Māori role models in science, technology and engineering research by providing fellowships for suitably-qualified Māori students to undertake postgraduate research. Funding of $300,000 is available for the fellowships in 1996-97. The fellowships are administered by FORST.

The prestigious James Cook Fellowships are awarded annually to senior researchers who have achieved sustained excellence in their respective fields. Two new James Cook fellowships were offered in 1996-97, bringing the total number of fellowships to four, with support from funding doubled in 1996-97 to $360,000. The RSNZ administers the scheme.

The International Science and Technology Linkages Fund (ISLF) brings together a number of programmes which enhance New Zealand's science and technology linkages. The ISLF programmes are administered by the Ministry of Research, Science and Technology.

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.

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 1996-97 financial year the foundation allocated approximately $265 million from the PGSF. Crown research institutes received $226.1 million, research associations received $19.6 million, universities received $15.3 million and private organisations received $4.2 million.

As the foundation was established to purchase research on behalf of the public it places a high priority on research being relevant and useful to the wider community, including those involved in business, environmental management and social work.

At the strategic level, the foundation's research strategies seek to build partnerships with industry and others involved in applying the results of the research it funds. When making purchasing decisions the foundation places a high priority on the relevance of research bids, and considers matters such as the “fit" with its research strategies, industry support for research proposals, and the extent and quality of the communication between scientists and users of research. A satisfactory level of scientific or technological merit must also be demonstrated.

The foundation administers and funds three 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. The Tūāpapa Pūtaiao Māori Fellowships provide support for talented Māori graduates who wish to undertake a masterate or doctorate degree in science or technology. The fellowships are intended to foster the development of positive role models in order to promote the participation in Māori in science, technology and engineering.

Other funding agencies which support the country's research efforts include the Health Research Council (the main funder of health research); the Animal Health Board (primarily concerned with the eradication of bovine tuberculosis); the Royal Society of New Zealand (which administers the Marsden Fund and specific fellowship programmes); and the Agricultural and Marketing Research and Development Trust (primarily involved in promoting and encouraging the agricultural, pastoral, horticultural and forestry industries).

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—is the principal supplier of research and development to the New Zealand forestry sector. Established in 1947, the institute is a leader in plantation forestry and wood processing research, and is one of the most diverse organisations of its type in the world. Its research programmes encompass activities from genetics and plant propagation to forest management, wood processing, product development, and pulp and paper. A fundamental component of research in all these areas is to ensure they are sustainable through time. Increasingly, the emphasis is on multi-disciplinary teams to provide an integrated approach to problem solving and new directions.

There are 468 staff, with the main laboratories and headquarters based at Rotorua and South Island operations at Ilam and Rangiora.

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.

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).

World Wide Web address: www.agresearch.cri.nz.

The Horticulture and Food Research Institute of NZ Ltd (HortResearch)—works in close partnership with New Zealand's horticulture, tree and food industries to develop and enhance their competitive advantage in local and overseas markets. Its research spans molecular biology, plant and tree breeding, crop production, plant physiology, plant protection, post-harvest handling and storage, and the evaluation of consumer preferences.

HortResearch's strategic plan emphasises sustainable management systems for producers supported by research in crop ecology, epidemiology of plant pests and diseases, durable resistance mechanisms, natural control strategies and integrated production systems.

With 530 permanent science and support staff and up to 150 casual workers in 14 regional research centres and orchards throughout New Zealand, HortResearch aims to support sustainable production systems, and the purity, safety and customer acceptability of plant-based products. Research covers a large range of crops of economic importance to New Zealand including fruit, cut flowers, forestry, ornamentals and vegetable species.

World Wide Web address: www.hort.cri.nz.

Prototype 3-wheel, rear-engined car built around 1965 by DSIR Industrial Research scientists and engineers, photographed in 1990 when it was offered for sale. It was developed apparently in semi-secrecy, at a time when government policy was to promote import substitution.

NZ Institute for Crop & Food Research Ltd (Mana Kai Rangahau)—conducts research, develops technologies and provides services to improve New Zealand's capability to produce high quality products from field and glasshouse crops as well as from the ocean. Research undertaken for the Crown and for private companies is carried out in close partnership with industry, exporters and growers. Our focus is on safe and environmentally sustainable food production. The skills of the institute's 320 staff have expertise in plant breeding, biotechnology, food technology, nutrition, biochemistry, post harvest technology, agronomy, plant physiology, and pest and disease control.

The institute serves six major sectors: Arable foods, including the sustainable production of food products based on cereals, pulses and new crops; Vegetable foods, producing, harvesting and processing major vegetable crops, and introducing new crops; Seafood, harvesting, handling and processing seafood; Ornamentals, developing new colour and form and improving production systems; Animal feed, improving feed quality and nutritional value; Plant products, extracting and identifying natural plant products such as bioactive compounds, pigments and essential oils.

World Wide Web address: www.crop.cri.nz.

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 (including water) 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.

World Wide Web address: www.landcare.cri.nz.

Institute of Geological and Nuclear Sciences Ltd—the institute is New Zealand's premier geo-science and isotope science provider. It undertakes public good research and provides numerous services on a commercial basis. Activities include resource evaluation for the fossil fuel exploration industry, natural hazard assessment and mitigation, geological mapping, engineering geology, geophysical surveys, geothermal assessment and development, groundwater and environment chemistry, and the application of isotope science to industrial, medical and environmental studies.

Through its predecessor organisation, the institute has a 130 year history of research and applied earth sciences. It has 260 staff and its library collections are of national importance. It has four science groups covering the core businesses of—Hazards, Resources, Isotope Sciences, Information and Operations. Staff are located at Wellington, Dunedin and Wairakei.

Each group builds its business from core capabilities. While the accent is on public good science, the institute pursues opportunities to develop partnerships with private sector companies, SOEs, universities and international research institutions.

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.

The company has 370 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.

World Wide Web address: www.irl.cri.nz.

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 580 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.

World Wide Web address: www.niwa.cri.nz.

Institute of Environmental Science and Research 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.

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 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 an independent, statutory body incorporating the national academy of science and technology, and a constituency of scientific and technological societies, regional societies, Fellows, and individual Members. The society includes the fundamental, applied and human dimensions of the biological, earth, engineering, mathematical, medical, physical, social and technological sciences. The society has the statutory responsibility to foster a culture supportive of science and technology in New Zealand and to initiate appropriate international linkages. It provides considered, expert advice on important public issues to the government and the community.

The society advances and promotes science and technology in New Zealand, recognises and encourages excellence in research, establishes ethical standards, supports science and technology education, publishes scientific journals, reports and education resources. It encourages professional development through research grants, fellowships, awards and prizes. Established in 1867 as The New Zealand Institute, the society is incorporated under The Royal Society of New Zealand Act.

The Internet home page is: Gateway to NZ Science http://www.rsnz.govt.nz/

Recent developments are:

  • The Marsden fund, set up by the Government to finance excellent, non-prioritised research has been set up with six assessment panels dealing with agricultural and life sciences; biochemical and biomedical science; earth sciences and astronomy; mathematical and information science, physical sciences and engineering, and social sciences. A further area is to be added, that of the humanities. Monitoring processes are being set in place to assess the contracts awarded. During 1997 the size of the fund will increase from $11 million to $22 million.

  • The International Centre for Antarctic Information and Research (ICAIR), a division of the Royal Society, has consolidated a Global Resource Information Database “GRID-Christchurch" a component of the United Nations Environmental Programme “UNEP-GRID”. There is a close association with GRID-Arundel in Norway.

  • Standing committees have been established for primary production, geosciences, astronomical sciences, Antarctic science, environmental science, marine sciences, social sciences, mathematical and information sciences, education, promotion of science, geosphere-biosphere, climate, energy and biodiversity.

  • The Code of Ethical Practice is now in place.

  • Strong emphasis has been given to the promotion of science and technology. This has included maintaining relations with the New Zealand Association of Science Educators, the Association of Science and Technology Centres of New Zealand, the Telecom Technology-Science Roadshow and ECNZ. Strong inputs into science curriculum development have taken place.

Cooling a power control device in liquid nitrogen, during the development of superconductor-compatible components, at Industrial Research Ltd, Lower Hutt. Superconductors are materials which lose all resistance to electricity when cooled to a certain temperature, making them very efficient for electricity generation and transmission.

  • The administration and selection of science and technology teaching fellows and the Captain James Cook fellows are now well established processes. One science teacher fellow is working at ICAIR in Christchurch and has established the “Linking Education with Antarctic Research in New Zealand” (LEARNZ) programme at ICAIR.

  • Support has continued for 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 Climate Change and Possum/Bovine Tb.

  • Strong support has been provided for international science relations including the International Council for Scientific Unions and kindred organisations.

  • The society has maintained its production of high quality science and technology publications. Further streamlining followed formal reviews of the journals in 1996. These reviews examined the journals for both continued relevance, cost and the possibility of rationalisation.

Other organisations contributing to research

A number of other research organisations are active in New Zealand which have not been referred to already. These include the Cawthron Institute, the Carter Observatory, the Agricultural Engineering Institute at Lincoln University and the Museum of New Zealand.

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.

Cawthron scientists work with Shizuoka University in Japan on research into natural products chemistry and pharmacology. Research relating to toxic algae blooms and aquaculture continues to be a major focus. In this area particularly, Cawthron works closely with researchers at Tohoku University in Sendai, Japan.

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. It is beginning a two-year project to examine the impact and sources of introduced species in New Zealand harbours.

The Malaghan Institute of Medical Research is the other private scientific research organisation (see Chapter 8).

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 and the Ministry of Fisheries.

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.

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, eg the New Zealand Council for Educational Research (see Chapter 9) and the New Zealand Institute for Economic Research (Inc) (see separate article); commercial market research firms, private research consultancies and research or analysis units within private enterprises; and voluntary agencies.

15.3 Technology services

Patents, trade marks and designs

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

1991*44888168637
1992*45348178606
199336438720690
1994319710258652
1995450312325807
1996480013291881

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.

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. The library has over 8 million documents, a growing number now on CD-ROM.

During the year 2,691 applications proceeded to acceptance after search and examination, and Letters Patent were sealed on 2,845 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 1996 were filed from the following countries: New Zealand 5,186; United States 3,155; Australia 1,398; United Kingdom 700; Germany 575; France 310; Japan 268. There were 1,699 applications from other countries.

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 16,622 applications were examined, 12,393 were advertised and 8,767 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.

Applications for design registration numbered 881 in the year to June 1996, an increase over the 807 in 1995. The principal countries from which applications were filed in 1996 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.

Other intellectual property rights

Layout designs. The Layout Designs Act 1994 provides protection for the designs of integrated circuits. The act protects layout designs from unauthorised copying in New Zealand for a period of up to 15 years.

Geographical indications. The Geographical Indications Act 1994 is not yet in force. It is anticipated that this will occur in 1997. A geographical indication is a description used on goods to indicate the origin of the goods. Under the act any person may apply to the Surveyor-General to register a geographical indication. Registration of a geographical indication prevents anyone using that geographical indication, on goods specified under the act, which do not originate from that origin. 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 will maintain an electronic register, open to the public, of geographical indications protected under the act, with details of the boundaries they apply to.

Law reform. The government is currently considering reforms to the intellectual property rights statutes. Māori have indicated they have concerns with the current intellectual property rights system and the government is, therefore, consulting with them as part of the reform process.

Telarc

Telarc is a user-funded statutory body responsible for ensuring technical standards are met in New Zealand's industrial, scientific, commercial, regulatory, health care and administrative sectors.

Telarc formally recognises quality in all aspects of the design, development, formulation, manufacture, supply, servicing, inspection, testing, measurement and calibration of products, materials and services. This is achieved through accreditation, certification, training and advisory services. It is New Zealand's leading and most experienced accreditation and certification agency.

Telarc represents New Zealand in international laboratory accreditation forums and maintains close liaison with similar national laboratory accreditation organisations overseas. It has established Mutual Recognition Agreements or informal relationships with such bodies in Australia, Asia, Europe and North America.

Accreditation

Laboratory accreditation—assessing the technical competence of testing, measurement and calibration laboratories in all fields of science and technology, including: biological, chemical, dairy, electrical, gas cylinder, mechanical, medical, physical and wool testing; and metrology and calibration.

Inspection body accreditation—for the independent accreditation of inspection bodies against international standards ISO 9001 or ISO 9002 (quality management systems); ISO Guide 39 (general requirements for the acceptance of inspection bodies); or EN 45004 (general criteria for the operation of bodies performing inspections).

Radiology Services accreditation—providing radiology services with formal recognition of their skills, expertise, systems, procedures and facilities based on independent, peer group assessment.

Certification

Quality Management Systems certification—assessing an organisation's quality management system and certifying that the system conforms to the requirements of the ISO 9000 series of standards. Telarc has provided this service since 1983, being the first certification body in New Zealand to achieve formal accreditation by JAS-ANZ (Joint Accreditation System—Australia and New Zealand).

Environmental Management Systems certification—assessing an organisation's environmental management system and certifying that the system conforms to the requirements of the ISO 14001 standards. It will include a company's environmental policy, organisational structures, responsibilities, procedures, processes and resources. Telarc has provided this service since 1994, and was the first certification body in New Zealand to achieve formal accreditation to certify to ISO 14001 standard by JAS-ANZ, in 1996.

Q-Base—a basic, entry level assessment and certification programme based on the ISO 9000 series of standards for small to medium business enterprises. Q-Base identifies the basic quality management disciplines a small business needs to apply; it can lead to full ISO 9000 compliance at a later date.

Environmental Choice NZ—& product certification programme developed to help consumers find products that ease the burden on the environment. The programme results from a New Zealand Government initiative and Telarc manages it on behalf of the Ministry for the Environment.

Training

The New Zealand Quality College is the training division of Telarc and provides training in topics supporting Telarc's accreditation and certification programmes.

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.

The full text of all New Zealand Standards and Joint Australian/New Zealand Standards was released on CD-ROM in April 1996.

Contributors

  • 15.1 Dr A D Thomson, Centre for Studies on New Zealand Science History, Christchurch.

  • 15.2 Ministry of Research, Science and Technology; Crown Company Monitoring and Advisory Unit; Foundation for Research, Science and Technology; Association of Crown Research Institutes and individual CRIs; Royal Society of New Zealand; Cawthron Institute; New Zealand Institute of Economic Research.

  • 15.3 New Zealand Patent Office; Ministry of Commerce; Telarc New Zealand; Standards New Zealand.

Special articles

Royal Society of New Zealand; Ministry of Research, Science and Technology; Dr A Peter W Hodder, Association of Science-Technology Centres of New Zealand, Hamilton; Simon Chapple, New Zealand Institute of Economic Research.

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/.

Report of the Commissioner of Patents, Trade Marks & Designs (Parl paper G.14).

Report of the Foundation for Research, Science and Technology. (Parl paper G.53).

Report of the Ministry of Research, Science and Technology (Parl paper G.50).

Report of the Standards Council (Parl paper G.15)

Report of the Testing Laboratory Registration Council of New Zealand (Parl paper G.31) Standards. Standards New Zealand (monthly).

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.

Chapter 16. Land and environment

The Scenery Conservation Society's picnic party in the Nihotupu Forest Reserve, Auckland, around the turn of the century.

16.1 Land resources and ownership

Land Information New Zealand

Land Information New Zealand was established in July 1996 as the government department responsible for the administration of various land-related legislation. It is the product of the separation of the former Department of Survey and Land Information (DOSLI) into a government department charged with maintaining core land data and the processes to support it, and a State-owned enterprise known as Terralink New Zealand Ltd, responsible for value-added services such as commercial survey, mapping and land activities.

Land Information New Zealand includes the Land Title Services, which had moved from the Department of Justice to DOSLI in 1995 and which is responsible for the creation and termination of land property rights, the issuing of land titles and the provision of public access to land title information. The department is a nationwide, client-focused organisation with public offices throughout New Zealand.

The new department has two broad focuses:

  • policy and regulatory responsibilities and standards for land-related and seabed information

  • direct services to the public such as the state-guaranteed issue of land titles, availability of land information and approval of survey plans.

Specifically, Land Information New Zealand undertakes to:

  • provide expert advice to the government on land-related laws and policies

  • provide a secure environment for buying, selling and subdividing property

  • administer the Crown's interests in land through the acquisition, disposal, administration of Crown land and the management of Crown land liabilities

  • assist the government and its agencies address Treaty of Waitangi issues through the provision of information on land history and status

  • ensure New Zealand has high quality databases for its survey, mapping, hydrographic and property activities.

Responsibilities of the new department are land titles (land registration and search facilities), survey system (administration of the survey infrastructure), Crown property (administration of Crown land, disposal of surplus Crown land and provision of advice to the government) and topography/hydrography (provision of digital databases and core topographic mapping).

The main acts administered by Land Information New Zealand 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 give Land Information New Zealand specific responsibilities for land transactions.

Terralink

Terralink NZ Limited is a State-owned enterprise which acquired the commercial functions of DOSLI. It works in four groups:

Mapping. There are two divisions—Topographical mapping maintains the national topographic map series under contract to Land Information New Zealand. There are 19 maps in the Infomap 262 (1:250,000) series and 300 in the Infomap 260 (1:50,000) series. These provide the baseline information for New Zealand in printed sheet form and act as the inventory of the New Zealand landscape for public good, military, search and rescue, and planning purposes. The present traditional manual cartographic production methods are being replaced by digital production. Published mapping can provide either digital or hard copy maps. The range includes urban production maps, recreation and thematic maps, aeronautical charting, earth science, atlas cartography, hydrographic charting and international maps.

“A draughtsman working with a pantograph, reducing plans to scale, at the Lands and Survey Department in Wellington” in 1954.

Survey Services is New Zealand's largest survey organisation with 15 offices around the country. It carries out topographic, cadastral and control surveys; international border demarcation; Global Positioning Systems (GPS) surveys; and specialist surveys such as scene-of-crime or accident surveys, setting out land development and engineering works. On contract to Land Information New Zealand, Survey Services will carry out national and local control survey work to enhance the survey control network, the extension of the co-ordinate and height datum, photo control and control for developments. Inspection and maintenance of bench and control marks and beacons are part of ongoing contract work on behalf of the Crown.

Systems Solutions provides photogrammetry in different forms, data ready for entry to a Geographical Information System (GIS), and GIS consultancy services. With digital orthophotos, land mass information and man-made features can be represented in their true planimetric positions. This is of particular value to regional and local authorities to record and monitor the environment. Satellite imagery information includes images from the new satellite station in Tasmania (TERSS) which has a ‘footprint’ covering New Zealand. Systems Solutions also distributes and manipulates ‘core’ data, such as DCDB and topo data from Land Information New Zealand's datasets.

Property Services specialises in acquisition and disposal of land and is an accredited agent for Land Information New Zealand to facilitate public land acquisitions and disposals under the Public Works Act.

A Map Centre in Upper Hutt distributes maps, and houses the international map library.

Surveying, mapping and land information

Surveying. New Zealand's survey system provides the basis for the survey of land and 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 that 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, location of utilities, engineering and construction projects, communications, map production, scientific studies, the location of marine and air navigation aids, and the determination of New Zealand's national and economic zone boundaries.

Land Information New Zealand 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 that validates all property surveys.

Through its spatial records Land Information New Zealand supports the electoral system and the production of electoral maps. It also contributes to the development and application of the satellite-based Global Positioning System and its use in New Zealand, through the provision of reference tracking stations, and the upgrading of the survey control network.

Aerial photography

Extensive use is made of aerial photography to support New Zealand's national mapping programme. This programme has two components—mapping of regions not previously covered and revision of existing mapping.

Land Information New Zealand holds and maintains a national air photo library which provides a comprehensive national source of land information data that is available to the public. Terralink New Zealand Ltd also receives and holds multi-spectral imagery collected by earth resource satellites.

Mapping

The metric 1:50,000 topographic map series now reaching completion provides a reliable and authoritative record of New Zealand land form and its features. This series is used for planning, construction, development, environmental assessment, local government administration, emergency services, search and rescue, and defence purposes. Much data from the 1:50,000 maps has been converted into digital form. Land Information New Zealand also has smaller scale 1:250,000 maps and a digital database. These are used when a less detailed overview of regions is required.

Land Information New Zealand's map holdings include maps of New Zealand, the Pacific and Antarctica.

Hydrography

Hydrography—the science of surveying and charting seas—is a new responsibility for Land Information New Zealand. Prior to the department's establishment in July 1996, hydrography was a role of the Navy. It will continue to undertake this work for the next seven years at least, but under contract to Land Information New Zealand.

The department, which is developing a hydrographic information strategy for the next 10 years, is responsible for providing an infrastructure for a standard seabed database extending out to the continental shelf.

Currently only 30 percent of South Island coastal waters and 20 percent of North Island coastal waters are charted. The government and the department are to discuss the extent of charting outside these areas. The Navy has estimated that a complete survey of the coastline would take 20 years.

An Officials Hydrographic Information Advisory Group will help the department decide the extent of information required. This will include consideration of issues such as safe navigation, exploitation of resources, making New Zealand waters available for pleasure users, search and rescue needs and emergency needs such as charts for oil spills.

Registration of land ownership

Almost all privately-owned land in New Zealand is held under the land title system, as embodied in the Land Transfer Act 1952. All property rights 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 Land Title Services of Land Information New Zealand, as is the keeping of title records.

The outcomes of Land Title Services are primarily:

  • to provide state-guaranteed certainty of title to land and

  • to provide and maintain the Torrens Land Title System.

New Zealand is divided into 12 Land Registration Districts. Each district has a Land Registry Office responsible for recording transactions affecting the land in that district. A Certificate of Title to a piece of land is the basic record of transactions concerning that land. It provides:

  • the legal description and diagram of the land

  • all owners, both current and historic

  • a summary of registered legal documents concerning the land.

Documents listed on a Certificate of Title may include mortgages, leases, various types of charges, rights and restrictions which affect the land in some way. Certificates of Title and the documents listed on them are held in the Land Registry Office in the district where the land is situated and are available for public search. Alternatively, copies of Certificates of Title and documents and progress reports on unregistered documents can be ordered from the Land Title Link. This new, 12-hours-a-day, on-line service allows customers to access the Land Titles Database from their own office and request search copies.

Table 16.1. LAND TRANSFER DOCUMENTS PROCESSED

Year ending 30 JuneInstruments receivedCertificates of titlePlans lodgedGuaranteed searchesTitle searchesDocument searchesDatabase searchesPlan searches
Source: Land Information New Zealand
198910296884725816889821921176421306599
199010076205398718000906031109663283376
1991869864535621821487552919900255932
1992819015503341606593125966078263045
1993775631420511411499211936805258389
199486374342947160191377131024426282013337887316077
19958738834883917726145773982846273784487801740068
199692526350665164621823941048717287394592728646050

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

Jun 19911735422.51169-1.6
Dec 19911750390.71181+1.0
Jun 19922392735.41300+10.1
Dec 19921951514.41358+4.5
Jun 19932546952.91601+17.9
Dec 19931510469.21696+5.9
Jun 199422161,018.61988+17.2
Dec 19941393556.22073+4.3
Jun 199520131,094.12270+9.5
Dec 19951153483.02295+1.1
Jun 199620061,133.92323+1.2
Dec 19961121452.72334+0.5

Acquisition of New Zealand land by overseas persons

The Overseas Investment Regulations 1995 have replaced the provisions of the Land Settlement Promotion and Land Acquisition Act 1952 (LSP Act) governing the acquisition of New Zealand rural land by overseas persons. The regulations provide a more liberal approach and set clearer criteria for consent, either by the joint Ministers of Finance and Lands, or by the Overseas Investment Commission.

The regulations:

  • define transactions that will normally require joint ministerial consent. These include transactions for land:

    1. exceeding five hectares in area

    2. on offshore islands (specified in the regulations) that exceed 0.4 hectares in area

    3. exceeding 0.4 hectares in area that is on, or adjoins foreshores, certain-sized lake beds, reserves or historic places

    4. over $10 million in value.

Where land is to be used for agricultural purposes, that use and whether it is for experimental or research work will be taken into consideration. Where persons wish to farm the land individually, their capacity to do so will also be material.

  • stipulate the need for applicants:

    1. to have relevant business experience and acumen

    2. to demonstrate a financial commitment to the overseas investment.

  • require that the following benefits accrue:

    1. creation of new job opportunities in New Zealand

    2. introduction of new technology or business skills

    3. development of new export markets and the introduction of new capital to New Zealand

    4. promotion of competition, efficiency, productivity and processing of primary product in New Zealand and enhancement of domestic services.

  • provide for requisition of information from applicants where evasion or non-compliance with the regulations is suspected

  • provide for the joint consents of the Minister of Finance and the Minister of Lands or for the revocation of consents where appropriate.

Māori land

Before European settlement, all land was held by the various groups and tribes of the Māori people in accordance with their traditional customs and usage. The land remaining in this tenure is termed ‘Māori customary land’. By the Treaty of Waitangi, the right to purchase land from Māori was reserved to the Crown. Almost all of what had been Māori 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 Māori owner on the recommendation of the Māori Land Court; and (c) the issue of a freehold order by the Māori Land Court in favour of the Māori 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 Māori freehold land. A Māori may buy or otherwise acquire land which is not Māori freehold land, ie general land, and for this reason there is an unknown but considerable amount of general land owned by Māori in addition to their holdings of Māori freehold land. Māori freehold land is subject to the jurisdiction of the Māori Land Court pursuant to the Te Ture Whenua Māori Act 1993 and some general land owned by Māori is subject to certain provisions of that act.

Māori Land Court: Te Kooti Whenua Māori. The purpose of the Māori Land Court is to contribute to the administration of Māori land, the preservation of taonga Māori, and to promote the management of Māori land by its owners. The Māori Land Court achieves its purpose by servicing the Māori Land Court and related tribunals, maintaining the records of title and ownership of Māori land and providing information from the Māori Land Court record and the records of Crown and other agencies.

The Māori 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 Māori 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.

Table 16.3. LAND ADMINISTERED BY Māori LAND COURT*

Surveyed blocksTotal blocks administered
Māori Land Court districts199319951996199319951996

*As at 30 June.

Source: Māori Land Court

Whangarei347131963244512452005263
Hamilton102610571059346534653465
Rotorua306231093120479548174840
Gisborne284628662824505150755079
Hastings112111131113126812681268
Wanganui327233603381375637653766
Christchurch134013401340173417091709
            Total161381604116081251932529925390

Māori land development. Former government programmes aimed at the development of Māori land have largely been concluded, and Te Puni Kokiri encourages administration of Māori land by Māori landowners.

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 Forests Act 1949. Significant reconstruction of the public sector commenced in 1987, including the reorganisation of the government's environmental and public works administrations. Much of the Crown's commercial or productive land was subsequently transferred to State-owned enterprises. Land remaining in Crown ownership comprises land administered by the former Department of Survey and Land Information (DOSLI) operating through the Commissioner of Crown Lands, service delivery departments and the Department of Conservation. When DOSLI was disestablished in 1996 Land Information New Zealand took over its land ownership and administration functions.

Lands administered by Land Information New Zealand. Land Information New Zealand 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, Crown pastoral leasehold land, and other Crown leasehold lands and endowment leases. At 1 July 1996 there were an estimated 3,500 parcels of unalienated Crown land, 360 pastoral leases/licences, 335 other Crown leases and licences and 102 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 1996 there were 100 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 acquired. It includes surplus government properties formerly held by the Crown for hydro-electric power development, post offices, public works depots and government office accommodation. At 1 July 1996 there were an estimated 500 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 1996 there were an estimated 2,500 surplus railway lands in various stages 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 Māori 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 110 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.

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 133 properties spread throughout New Zealand. The company is also involved in animal breeding schemes covering a wide range of animal species, and provides research development, marketing and limited processing to enhance profitability and support its products in the market.

Landcorp Investments is responsible for some 1,917 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 1,482 valuers registered as at 30 June 1996, 996 held annual practising certificates. The remaining 486 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 has 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 within 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 Māori and their culture and traditions with their ancestral lands, water, sites, waahi tapu, and other taonga.

LAND USE

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.’

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 Māori to their ancestral lands, water, sites, waahi tapu, and other taonga, it is possible for policies and plans to cater for Māori-related uses on Māori 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 Māori 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.

A Weekly News photograph of a Hutt Valley Conservation Society notice, 1970.

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.

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 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.

Greenpeace protesters unfurl a banner opposing the trial crop of genetically-altered canola rapeseed at Pukeuri, December 1996.

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.

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 Māori 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.

The winner of the inaugural Awhitu Peninsula Environmental Awards, farmer David Craig. He planted flax to combat drifting sand along the coastline, and diverted the money previously spent on spraying gorse into planting trees under which the gorse eventually disappeared. Mr Craig also fenced off about 50 hectares of wetland and bush to protect it from stock.

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 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 (which include insecticides, fungicides and herbicides) are widely accepted as essential for efficient agriculture and horticulture. Their use is controlled by the Pesticides Board under the auspices of the Ministry of Agriculture. The board controls the import and sale of pesticides and has an approved list of registered pesticides for use in different situations, such as in or near water. The board also gives guidance on the application of those pesticides.

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.

WHALE SANCTUARIES

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 Māori. 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.

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.

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.

Kyle Mewburn watering the living roof on his Millers Flat house, 1996. The 10 cm-thick sods grow barley grass, brown-top and extra clover on the north side, which do not need mowing, and provide the house with good insulation.

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. A report, Climate Change and CO2 Policy: A Durable Response was published in June 1996.

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. Work focused on amending the Ozone Layer Protection Act 1990. The new act was passed in June 1996. Where the previous act contained controls in the body of the act, the new act sets up a framework for making regulations to implement controls. This means that in future it will be easier to comply with changes to obligations under the Protocol.

The new act also sets up a system for accreditation of workers dealing with ozone-depleting substances. This will require these workers to have sufficient technical knowledge to comply with their obligations under the new act, and will strengthen the effectiveness of New Zealand's compliance measures under the Protocol.

The Ministry for the Environment is currently consulting with affected parties and is developing policies to phase out the import of hydro-chlorofluorocarbons (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 decision-making. 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 Land Information New Zealand, as well as the large number of regional and territorial organisations which have monitoring responsibilities under the Resource Management Act. A discussion document, National Environmental Indicators—Building a framework for a core set was released in January 1996. Publication of the first national SER is planned for early 1997.

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 13 national parks, covering just under 2.5 million hectares, 20 forest parks covering some 1.8 million hectares, and about 3,500 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 May 1996 a new national park, Kahurangi National Park in the north-west of the South Island was formally opened. Incorporating the existing North-West Nelson Forest Park, Kahurangi covers 452,000 hectares and is the second largest of the national parks. 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

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.

Kahurangi National Park. (452,000 hectares, established 1996), situated in the north-west of the South Island comprises spectacular and remote country and includes the Heaphy Track. It has ancient landforms and unique flora and fauna. It is the second largest national 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 National 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.

Inspecting a glacier in Westland National Park.

The spectacular Clay Cliffs geological formation near Omarama is protected in perpetuity by a Queen Elizabeth II National Trust Open Space Covenant.

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 Māori 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 cooperate 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

Two new marine reserves have opened during 1996, at Pollen Island and Long Bay-Okura, both in the Auckland region bringing to 13 the number of 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 northeast 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 Māori 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 Māori-owned land, while honouring the rights guaranteed to Māori 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 Māori 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 Māori 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.

During 1996 new members were appointed to both the authority and the boards for a two-year term.

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 the provision, protection and enhancement of open space for the benefit of all New Zealanders.

Most often, the trust enters into voluntary open space covenants with private or non-government landowners. While the land itself remains in private ownership, the landscape is protected by the trust which acts as independent perpetual trustees.

Covenant agreements specify how the area is to be managed and are registered against the land title.

In the year to June 1996, there were 954 registered covenants protecting 38,827 hectares. A further 333 approved projects covering 61,602 hectares are proceeding toward registration.

The trust also owns property, most of which has been gifted or bequeathed.

In the 1996 year the trust received an operating grant of $819,000 from the government. It also received $375,000 from the Forest Heritage Fund for native forest protection projects and applied $12,583 Lottery Grants Board funding to projects including wetland covenants and revegetation programmes.

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 reserve was gifted to the nation in 1932 by Lord Bledisloe, then Governor-General, and his wife. 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 Māori 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.

Conservation NGOs

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 Land Information New Zealand; Terralink New Zealand Ltd; Māori 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; Queen Elizabeth II National Trust.

Special articles

Māori Trustee; Ministry for the Environment; ECO; Royal Forest and Bird Protection Society; Department of Conservation.

Further information

Land resources and ownership

Annual Report of Terralink NZ Limited.

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 Ministry of Justice (Parl paper E.5).

Report of Land Information New Zealand.

Report of the Department of Survey and Land Information (Parl paper C.14).

Report of the Valuation Department (Parl paper G.26).

Rural Property Sales Statistics. Valuation New Zealand (six-monthly).

Urban Property Sales Statistics. Valuation New Zealand (six-monthly).

Environmental and resource management

Environment 2010 Strategy. Ministry for the Environment.

Forging the links: New Zealand's National Report to the United Nations Conference on Environment and Development. Ministry for the Environment and MERT, 1992.

Measuring up: New Zealanders and the environment. Statistics New Zealand, 1993.

Report of the Ministry for the Environment (Parl paper C.11).

Statistics of the Forests and Forest Industries of New Zealand. Ministry of Forestry (annual).

National parks and reserves

Report of the Department of Conservation (Parl paper C.13).

Report of the New Zealand Conservation Authority (Parl paper C.10).

Report of the Queen Elizabeth the Second National Trust (Parl paper C.2).

Chapter 17. National economy

Employees make up pay packets for workers at the Petone Railway Workshops. Pay–clerks were often paid less than skilled workers.

17.1 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 1991 to 1996. Detailed breakdowns of the main aggregates are included up to the latest available year.

From the 1893 Yearbook

Table 17.1. PRINCIPAL AGGREGATES OF THE NATIONAL ACCOUNTS (Revised)

AggregatesYear ended March
1989-901990-911991-921992-931993-941994-951995-96
Source: Statistics New Zealand
 $(million)
Gross domestic product70,74272,13872,14674,42680,29785,87591,045
        Plus, net factor receipts from rest of world-4,769-4,243-4,424-3,064-3,957-5,141-5,484
Gross national product65,97367,89567,72271,36276,34080,73485,561
        Less, consumption of fixed capital6,1686,5256,8847,4037,6658,0528,490
National income59,80561,37060,83863,95868,67672,68377,072
        Plus, net current transfers from rest of world276235247241205161353
National disposable income60,08161,60561,08564,19988072,84477,425

Table 17.2. NATIONAL ACCOUNTS: 1962-1996

Year ended MarchGross National ProductGross Domestic ProductNational IncomeGDP at 1991/92 prices†
***

*Excludes stock valuation adjustment.

Includes stock valuation adjustment.

Source: Statistics New Zealand

$NZ(million)
19622,857..2,872..2,626..35.943
19633,096..3,114..2,847..37.044
19643,377..3,397..3,112..39.302
19653,699..3,721..3,412..41.704
19663,981..4,012..3,664..44.245
19674,148..4,190..3,775..45.923
19684,328..4,375..3,938..45.527
19694,610..4,642..4,184..46.497
19705,092..5,133..4,626..48.845
19715,791..5,832..5,268..50.653
19726,834..6,871..6,276..51.942
19737,846..7,887..7,223..54.244
19749,162..9,181..8,455..58.136
197510,049..10,107..9,226..60.479
197611,579..11,712..10,604..61.497
197713,936..14,162..12,820..61.586
197815,21414,63415,51114,97014,00813,46759.888
1979..16,549..16,958..15,25260.011
1980..19,335..19,795..17,86761.543
1981..22,481..22,292..20,80962.204
1982..27,276..27,891..25,35065.261
1983..30,551..31,409..28,30565.679
1984..33,564..34,839..30,87567.478
1985..37,344..39,346..34,10370.807
1986..42,762..45,282..38,93671.353
1987..51,958..54,725..47,46672.853
1988..58,371..61,641..53,14273.171
1989..63,106..66,424..57,34272.856
1990..65,973..70,742..59,80573.364
1991..67,895..72,138..61,37073.036
1992..67,722..72,146..60,83872.147
1993..71,362..74,425..63,95872.980
1994..76,340..80,297..68,67677.511
1995..80,734..85,875..72,68381.613
1996..85,561..91,045..77,07284.149

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. For more detailed data and explanations, refer to the Statistics NZ publication New Zealand System of National Accounts 1996.

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.

Prime Minister, the Rt Hon Peter Fraser, sets a good example to the nation by purchasing National Savings Certificates at the General Post Office, Wellington, 1940.

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
1990-911991-921992-931993-941994-951995-96
Source: Statistics New Zealand
$(million)
Compensation of employees33,36833,00133,78535,07237,43539,906
Operating surplus21,31421,66422,66526,68028,58130,229
Consumption of fixed capital6,5256,8847,4037,6658,0528,490
Indirect taxes11,13510,83710,88811,17212,12412,742
Less subsidies205241316291317322
Gross domestic product72,13872,14674,42680,29785,87591,045
Final consumption expenditure—
        general government12,29112,26912,68212,57812,47813,024
        private45,76045,81046,68049,05652,73856,167
Value of physical increase in stocks-116857571,7561,1451,319
Gross fixed capital formation13,79511,53612,28014,63617,21318,650
Gross national expenditure71,73069,70072,39878,02683,57389,160
Exports of goods and services19,93521,64723,84025,26727,13627,132
Less imports of goods and services19,52719,20121,81222,70825,24126,131
Expenditure on gross domestic product72,13872,14674,42680,58585,46890,160
Statistical discrepancy----288407885

Table 17.4. NATIONAL INCOME AND OUTLAY (Revised)

ItemYear ended March
1990-911991-921992-931993-941994-951995-96
Source: Statistics New Zealand
$(million)
Final consumption expenditure
        government—central10,72010,67110,99910,88710,78711,290
        government—local1,5711,5991,6821,6921,6901,734
        private—households44,93844,92445,79648,08651,63755,038
        private—non-profit organisations serving households8228868839701,1011,129
Savings3,5543,0054,8387,2477,6298,234
Appropriation of national disposable income61,60561,08564,19968,88072,84477,425
Compensation of employees33,36833,00133,78535,07237,43539,906
Compensation of employees from the rest of the world, net------
Operating surplus21,31421,66422,66526,68028,58130,229
Property and entrepreneurial income from the rest of the world, net-4,243-4,424-3,064-3,957-5,141-5,484
Indirect taxes11,13510,83710,88811,17212,12412,742
Less subsidies205241316291317322
National income61,37060,83863,95868,67672,68377,072
Current transfers from the rest of the world, net235247241205161353
National disposable income61,60561,08564,19968,88072,84477,425

Table 17.5. CAPITAL FINANCE (Revised)

ItemYear ended March
1990-911991-921992-931993-941994-951995-96

*Includes all government-owned producer enterprises.

Source: Statistics New Zealand

$(million)
Value of physical increase in stocks-116857571,7561,1451,319
Gross fixed capital formation—
        private10,3039,12610,02412,65514,97416,450
        central government*2,7331,6921,4771,1481,3651,293
        local government*760718778833874907
Purchase of intangible assets from the rest of world, net------
Net lending to rest of the world-3,177-1,237-128-152-1,622-2,224
Gross accumulation10,50310,38312,90816,24016,73617,745
Savings3,5543,0054,8387,2477,6298,234
Consumption of fixed capital6,5256,8847,4037,6658,0528,490
Capital transfers from the rest of the world, net4234946661,0411,4631,907
Statistical discrepancy---288-407-885
Finance of gross accumulation10,50310,38312,90816,24016,73617,745

Table 17.6. EXTERNAL TRANSACTIONS (Revised)

ItemYear ended March
1990-911991-921992-931993-941994-951995-96
Source: Statistics New Zealand
$(million)
Current:
Exports of goods15,68617,02918,79319,66620,74520,321
Exports of services4,2484,6185,0475,6016,3916,811
Compensation of employees from the rest of the world------
Property and entrepreneurial income from the rest of the world1,033853795778557713
Other current transfers from the rest of the world538564572569560744
Current receipts21,50623,06425,20726,61428,25328,589
Imports of goods15,23814,48216,53317,80820,03420,844
Imports of services4,2894,7195,2794,9005,2075,288
Compensation of employees to the rest of the world----- 
Property and entrepreneurial income to the rest of the world5,2765,2773,8594,7355,6986,197
Other current transfers to the rest of the world303317331364399391
Surplus of the nation on current transactions-3,600-1,731-795-1,193-3,085-4,131
Current disbursements21,50623,06425,20726,61428,25328,589
Capital:
Capital transfers from the rest of the world, net4234946661,0411,4631,907
Surplus of the nation on current transactions-3,600-1,731-795-1,193-3,085-4,131
Capital receipts-3,177-1,237-128-152-1,622-2,224
Net lending to the rest of the world-3,177-1,237-128-152-1,622-2,224
Capital disbursements-3,177-1,237-128-152-1,622-2,224

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 interindustry 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, ie, compensation of employees, plus operating surplus, plus consumption of fixed capital, plus indirect taxes, less subsidies.

Table 17.7. CONTRIBUTION TO GDP BY INDUSTRY AND PRODUCTION GROUP

IndustryYear ended March
1988-891989-901990-911991-921992-931993-94
Source: Statistics New Zealand
$(million)
Agriculture4,0744,4913,9894,5114,3444,973
Sheep, beef and mixed livestocknana1,7441,5751,4582,168
Dairynana9031,5151,4431,408
Horticulturenana619759716636
Other farmingnana419371360370
Services to agriculture274313303292367391
Fishing and hunting260249233236270263
Forestry and logging5576157018501,0521,437
Mining and quarrying6448361,0051,0821,1071,121
Oil and gas exploration and extraction488618788832804787
Other mining and quarrying155218216250303334
Food, beverages and tobacco manufacturing3,9104,0154,2604,4414,3894,526
Meat and meat products manufacturing1,0909719631,092981909
Dairy product manufacturing618599737783799909
Other food manufacturing9671,0571,1621,1731,1771,245
Beverage and malt manufacturing1,2351,3881,3981,3941,4321,463
Tobacco product manufacturingcccccc
Textile and apparel manufacturing800864817813803825
Wood and wood product manufacturing7167527207238661,030
Pulp and paper products, printing and publishing1,6711,8271,9651,9341,8861,982
Paper and paper product manufacturing732842959933869874
Printing and publishing9399851,0061,0011,0171,108
Petroleum, chemical, plastics and rubber products1,6041,7761,4901,4811,5741,795
Petroleum, coal and basic chemical manufacturing838951628576649808
Rubber, plastic and other chemical manufacturing766825862905925986
Non-metallic mineral product manufacturing427413424381417491
Basic metal product manufacturing255460424477671645
Fabricated metal products, machinery and equipment2,6932,8402,6052,5342,6533,050
Fabricated metal product manufacturing8299678918088841,085
Machinery and equipment manufacturing1,0971,1521,0611,1501,2301,456
Transport equipment manufacturing767721654576539509
Other manufacturing144151142122136156
Electricity, gas and water1,9922,1342,0862,1072,1262,228
Electricity supply1,7571,8741,8331,8581,8731,944
Gas supply128158145151152166
Water supply10610110898100118
Construction2,9973,2162,8032,3892,3252,289
Distribution10,52410,29211,41110,24411,10212,675
Wholesale trade5,6615,2546,1545,0995,4776,578
Retail trade (including motor vehicle repairs)3,6603,7533,9443,8444,1944,449
Accommodation, cafes and hotels1,2031,2851,3131,3011,4311,649
Transport and storage3,4703,6873,6533,6333,7453,925
Rail transport (incl in 17.3)cccccc
Road transport1,2781,2991,2561,2981,3281,368
Water transport810802729688744787
Air transport771912879872876977
Services to transport611674789775798793
Communication services2,1482,1832,3492,6772,5072,508
Finance, insurance, real estate and business services10,26810,74010,57010,51110,54011,517
Finance2,7772,9813,0342,9942,7322,892
Insurance730696665685696878
Services to finance and insurance469512562522543607
Real estate2,8823,1873,1363,1643,3553,462
Business services3,4103,3653,1733,1463,2143,677
Ownership of owner occupied dwellings4,9075,2755,9146,2146,1536,274
Community, social and personal services2,5842,7202,8393,1213,4183,705
Education services424249758390
Health and community services8319048961,1831,2811,428
Cultural and recreation services7377487587579561,064
Personal and other services9731,0251,0461,1061,0981,124
Central government services7,1537,6377,7777,6947,8537,969
Local goverment services720777829787702747
Private non-profit services to households577630697763802831
Domestic services of households67687289105120
Bank service charge-2,818-2,996-3,000-2,935-2,581-2,655
Total all production groups62,34265,65166,77466,86868,96574,427
GST on production3,4804,4004,7414,6914,8205,161
Import duties507604556514553616
Other indirect taxes958767748793
Gross domestic product66,42470,74272,13872,14674,42680,297

Individual producers are grouped into industries on the basis of common economic activity. The classification used to define these industries 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 industries is an account recording the wages paid by households employing domestic labour. Production groups are aggregations of industries.

Table 17.7, showing contributions to GDP by industry and production group, is a summary of data contained in full production accounts which are prepared for each industry, and which are also analysed by private, central government, and local government sectors. Industry details for 1994–95 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 buildingsNonresidential buildingsOther constructionLand improvementsTransport equipmentPlant, machinery, and other equipmentTotal
Source: Statistics New Zealand
$(million)
19903,3422,8111,4781751,6374,86114,304
19913,4202,3921,5631531,4444,82413,795
19922,9501,5951,7541631,2143,85811,534
19933,0971,5301,3951821,6334,44112,280
19943,7921,8161,2532022,0095,56114,635
19954,6822,4891,2411862,2576,35917,213
19965,0092,9791,3411952,3866,73718,651

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
1989-901990-911991-921992-931993-94
Source: Statistics New Zealand
$(million)
Market production groups
Agriculture112206109-14509
Fishing and hunting-8134-1
Forestry and logging280276328400543
Mining and quarrying5-1-10820
Manufacture of food, beverages and tobacco-7-341161
Textile and apparel, and leather1213304131
Manufacture of wood products29-37-13-285
Manufacture of paper products and printing5-15-137-5
Manufacture of chemicals, petroleum, rubber and plastic7-83-38969
Manufacture of non-metallic mineral products4-17-10-811
Basic metal industries71-53-121126
Manufacture of fabricated metal products186-104-3134109
Other manufacturing73-595
Electricity, gas and water27-231-42-25
Construction-40-8-2452
Trade, restaurants and hotels727-233-311325191
Transport and storage-9-137815
Communication-37-3294-38-2
Financing, insurance, real estate and business services6-13-7620
Ownership of owner-occupied dwellings-----
Community, social, personal services12618-1-8
        Total market production groups1,405-112947641,758
Non-market production groups
Central government services-----
Local government services1-3-9-7-2
Private non-profit services-----
Domestic services of households-----
        Total, non-market production groups1-3-9-7-2
        Total, all production groups1,406-116857571,756

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. For further information refer to SNZ publication Quarterly Gross Domestic Product Sources and Methods.

Schoolboys outside the Miramar Fire Station, Wellington, hold up bottles they have collected as part of the local war funds effort.

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 1991–92 prices.

Table 17.1. FINAL CONSUMPTION EXPENDITURE OF RESIDENT HOUSEHOLDS (A) BY PURPOSE

 Year ended 31 March
1991-92R1992-93R1993-94R1994-951995-96

*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.

Source: Statistics New Zealand

$(million)
Food and beverages—
        food5,6175,7285,8336,1866,273
        beverages*1,8451,8981,8811,8841,957
Clothing and footwear2,1222,1452,2702,4172,501
Housing—
        imputed rent of owner-occupied dwellings7,5547,5137,7088,0628,868
        rental payments and associated costs1,8931,9932,0782,3702,566
Household goods and services—
        fuel and power1,1421,1951,2621,3091,358
        furniture, floor coverings and appliances1,7801,9502,2672,4842,474
        textiles and tableware667712787856870
        other goods and services1,2371,2691,4141,4571,504
Health services3,1493,3363,5603,7244,069
Transport—
        cars, motorcycles and vehicles1,4701,3191,6732,2142,619
        vehicle operation3,2053,2073,2553,3523,502
        public transport1,6331,6781,7742,0632,488
Recreation*3,7803,9964,3744,7925,098
Hotels and restaurants*3,1903,3073,5334,1124,647
Other goods and services—
        tobacco1,1431,1171,1521,1481,140
        personal1,5901,5831,6291,7141,792
        post and telephone1,1231,1521,1791,2721,418
        other services*1,3441,3811,3801,4931,618
        Total expenditure by households in New Zealand45,48346,48049,00952,90756,764
Less, non-residential households’ expenditure in New Zealand.
Plus, resident households’ expenditure overseas-560-684-923-1,271-1,726
Final consumption expenditure of resident households44,92445,79648,08651,63755,038
(B) BY TYPE
$(million)
Total non-durables13,64013,85714,13214,64214,947
Total durables10,03410,12411,22812,50713,195
Total services*21,80922,49923,64925,75828,622
        Total expenditure by households in New Zealand45,48346,48049,00952,90756,764
Less, Non-resident households expenditure in New Zealand.
Plus, resident households’ expenditure overseas-560-684-923-1,271-1,726
Final consumption expenditure of resident households44,92445,79648,08651,63755,038

Gross domestic product at constant prices. The production-based gross domestic product at constant prices series was developed from 1977–78, replacing the previously published Index of Real GDP. Historical statistics linking the two series have been calculated and are available from 1954–55. The quarterly series is only available from the June quarter 1977.

Both actual and seasonally adjusted 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 17.11. GROSS DOMESTIC PRODUCT AT CONSTANT PRICES*

 Primary industries (A)Goods producing industries (B)Service industries (C)Total business activity (A)+(B)+(C)General governmentOwner occupied dwellingsUnallocatedGross domestic product

*Year ended 31 March 1991-92.

Source: Statistics New Zealand

Actual
 $(million)
Annual (March year)
19895,91719,22631,20356,3468,1335,7057,86972,856
19905,77419,14231,52856,4448,3095,7318,04673,364
19916,50418,11831,18355,8058,5406,0028,19973,036
19926,67417,39631,04455,1148,4716,2148,21472,147
19935,97817,83931,95355,7708,6566,2708,46472,980
19946,84719,17633,70759,7308,9196,4178,86877,521
19956,58520,59536,16963,3498,9836,5159,46581,571
19966,48921,21037,93665,6359,0546,6149,87983,888
Actual
Quarterly
1990 Mar1,5964,5777,82313,9662,0931,4511,97518,231
        Jun1,3404,6407,68913,6692,1411,4731,99717,986
        Sep1,4444,4327,76013,6362,1261,4922,04317,929
        Dec1,9244,7628,02014,7062,1641,5102,15419,115
1991 Mar1,7964,2847,71413,7942,1091,5272,00518,006
        Jun1,4924,2027,64213,3362,1371,5422,00917,580
        Sep1,5484,1637,63413,3452,1041,5522,01817,554
        Dec1,8864,5778,00114,4642,1361,5582,13018,810
1992 Mar1,7484,4547,76713,9692,0941,5622,05718,203
        Jun1,3484,4227,81213,5822,1621,5602,05417,848
        Sep1,3394,1777,85413,3702,1591,5632,08617,634
        Dec1,6774,6798,21214,5682,1861,5692,21318,982
1993 Mar1,6144,5618,07514,2502,1491,5782,11118,516
        Jun1,4154,6528,13814,2052,2561,5902,14718,624
        Sep1,5194,7258,25114,4952,2081,6012,17918,898
        Dec2,0195,0048,63415,6572,2501,6102,31420,225
1994 Mar1,8944,7958,68415,3732,2051,6162,22819,774
        Jun1,4684,9688,77215,2082,2641,6212,29619,733
        Sep1,5194,9968,82415,3392,2441,6262,33019,878
        Dec1,8605,4439,35416,6572,2611,6312,47721,319
1995 Mar1,7385,1889,21916,1452,2141,6372,36220,641
        Jun1,4095,3299,17915,9172,2901,6442,39820,491
        Sep1,4935,1129,38515,9902,2461,6512,42020,513
        Dec1,8385,5519,76517,1542,2771,6572,56921,809
1996 Mar1,7495,2189,60716,5742,2411,6622,49221,075
Seasonally Adjusted
$(million)
Quarterly
1990 Mar1,4784,6967,84414,0182,1071,45173118,252
        Jun1,5364,5927,78113,9092,1301,47372618,277
        Sep1,5884,5417,83613,9652,1301,49268818,299
        Dec1,7014,5877,82814,1162,1531,51065918,425
1991 Mar1,6744,3497,73613,7592,1301,52761418,022
        Jun1,6884,1867,72513,5992,1201,54258717,865
        Sep1,6994,3137,71213,7242,1091,55257117,936
        Dec1,6614,3987,81913,8782,1211,55857518,116
1992 Mar1,6344,4927,79013,9162,1211,56161418,219
        Jun1,5454,4347,89013,8692,1421,56056618,140
        Sep1,4854,2957,93513,7152,1661,56356218,022
        Dec1,4504,4958,02513,9702,1701,56958018,278
1993 Mar1,4924,6038,09514,1902,1821,57857618,531
        Jun1,6124,6638,22114,4962,2321,59059618,930
        Sep1,6724,8858,34014,8972,2141,60161419,310
        Dec1,7914,7988,44615,0352,2331,61062419,479
1994 Mar1,7724,8538,69615,3212,2401,61662019,794
        Jun1,6644,9748,86215,5002,2381,62166520,054
        Sep1,6745,1068,91915,6992,2511,62669120,303
        Dec1,6315,2289,15616,0152,2461,63168320,542
1995 Mar1,6145,2849,22216,1202,2491,63768620,663
        Jun1,6125,3279,27516,2142,2631,64466520,820
        Sep1,6505,2509,48716,3872,2541,65164720,946
        Dec1,6085,3329,56716,5072,2621,65763121,020
1996 Mar1,6275,3109,60316,5402,2771,66264321,100

“Help to win the war”—a government poster published in 1916 advertising War Certificates. “Have you 16s.—Have you twice, thrice, or ten times that sum? You Can Help to Win the War and Help Yourself too, for You Receive Compound Interest on your money at "4,1"/2 per cent.”

Table 17.12. BUSINESS ACTIVITY AT CONSTANT 1991-92* PRICES

 AgricultureFishing forestry, miningManufacturingElectricity, gas & waterConstructionWholesaleRetailRestaurants & hotelsTransport & communicationFinancePersonal & community servicesTotal business activity

*Year ended 31 March 1991-92.

Source: Statistics New Zealand

$(million)
Annual (March year)
19894,1141,80314,0181,9843,2245,3203,9471,4275,72610,9633,82156,346
19903,8051,96913,7852,0163,3415,5783,9931,4055,89210,8153,84556,444
19914,4852,01913,1932,1062,8195,5063,9031,3286,01910,5563,86955,805
19924,5122,16212,9072,1002,3895,0993,8441,3016,31610,5113,97355,114
19933,7592,21913,5531,9772,3095,4023,9511,3366,60510,5794,08055,770
19944,5212,32614,5142,0692,5935,7114,1621,4017,13510,8914,40859,730
19954,3072,27815,5352,1472,9136,1214,4701,5368,00311,1674,87163,349
19964,1902,29915,8422,2443,1246,3024,6141,5998,85411,4195,14865,635
Quarterly
1990 Mar1,0855113,3474797511,4169513481,4832,67195413,996
        Jun8185223,3455287671,3709533171,4802,61795213,669
        Sep9464983,1625776931,3919483121,4992,65595513,636
        Dec1,4594653,4955167511,4441,0793641,5292,64196214,706
1991 Mar1,2625343,1914856081,3019233351,5112,6431,00013,794
        Jun9215713,0595346091,2599263081,5222,63798913,336
        Sep1,0085403,0435535671,2629333011,5262,61699613,345
        Dec1,3974893,4575206001,3311,0373511,6792,61299214,464
1992 Mar1,1865623,3484936131,2479483411,5892,64699613,969
        Jun7476013,3284985961,3589423061,5642,64599713,582
        Sep8025373,1254785741,3419513121,6042,6401,00613,370
        Dec1,1635143,5775055971,3911,0883701,7102,6331,02014,568
1993 Mar1,0475673,5234965421,3129703481,7272,6611,05714,250
        Jun7956203,5105026401,3879863211,7182,6761,05014,205
        Sep9815383,4785746731,4101,0023241,7262,7031,08714,495
        Dec1,4655543,8304916831,4571,1473801,8082,7381,10415,657
1994 Mar1,2806143,6965025971,4571,0273761,8832,7741,16715,373
        Jun8436253,7295167231,4811,0633541,9322,7701,17215,208
        Sep9735463,6735917321,5041,0833581,9062,7631,20915,339
        Dec1,3465144,1515337591,5991,2294212,0652,8141,22516,657
1995 Mar1,1455933,9825076991,5371,0954032,1002,8201,26516,145
        Jun8245853,9415638251,5501,1073732,0932,8241,23215,917
        Sep9205733,7415937781,5951,1083772,1632,8291,31315,990
        Dec1,3045344,1995557971,6331,2524282,2762,8701,30617,154
1996 Mar1,1426073,9615337241,5241,1474212,3222,8961,29716,574
Seasonally Adjusted
Quarterly
1990 Mar9765023,3825118031,4569843431,4892,67194414,018
        Jun1,0474893,3195207531,3859793351,5042,62095613,909
        Sep1,0885003,3125376921,3909743291,5102,65495413,965
        Dec1,1955063,3395287201,3939913351,4912,64496714,116
1991 Mar1,1535213,1855146501,3379563291,5142,63799013,759
        Jun1,1575313,0615315941,2729533261,5432,63999413,599
        Sep1,1475523,2305155681,2639603191,5412,61899513,724
        Dec1,1305313,2915325751,2849503221,6452,61799813,878
1992 Mar1,0825523,3165206561,2809813331,5852,63798613,916
        Jun9865593,3515055781,3699703241,5822,6451,00313,869
        Sep9385473,2774445741,3429803311,6242,6441,00413,715
        Dec8915593,4045165751,3479973401,6792,6381,02413,970
1993 Mar9425503,4915225901,3461,0033381,7172,6511,04514,190
        Jun1,0395733,5395076171,3961,0163401,7352,6761,06014,496
        Sep1,1155573,6865326671,4111,0323451,7522,7101,08614,897
        Dec1,1916003,6424966601,4121,0503501,7802,7421,10915,035
1994 Mar1,1775953,6715286541,4931,0623651,8642,7621,15215,321
        Jun1,0885763,7575236941,4891,0953751,9502,7691,18615,500
        Sep1,1045703,8405477191,5061,1163811,9362,7721,20715,699
        Dec1,0725593,9475447371,5541,1253892,0372,8171,23016,015
1995 Mar1,0445703,9795337721,5711,1323902,0762,8081,24716,120
        Jun1,0705423,9725657901,5581,1413952,1132,8231,24716,214
        Sep1,0515993,9415477621,5971,1414002,1982,8391,31016,387
        Dec1,0285803,9905687741,5901,1483962,2472,8731,31316,507
1996 Mar1,0425853,9485637991,5551,1854092,2932,8831,27916,540

Table 17.13. EXPENDITURE ON GDP AT CONSTANT PRICES* (Actual)

 Final consumption expenditureIncrease in stocksGross fixed capital formationGross National ExpenditureExports of goods and servicesLess imports of goods and servicesExpenditure on GDP
PrivateGeneral government

*1991-92 prices; year ended 31 March 1991-92.

r = revised.

Source: Statistics New Zealand

$(million)
Annual (March years)
198946,77511,790-15913,73972,14519,11917,53473,730
199046,82311,9321,14814,77474,67718,65319,96473,366
199146,79012,3118214,19773,38019,81119,93673,255
199245,81012,2698511,53669,70021,64719,20172,147
199346,07812,56963812,07471,35922,18520,61572,929
199447,30112,5051,25314,10175,16023,95422,28376,831
199549,50612,4141,13916,35279,41125,98625,40479,993
199650,39512,67683217,67081,57326,39826,97480,997
Quarterly
1990 Dec12,4333,1103873,77719,7074,7424,95919,490
1991 Mar10,9922,9152433,08117,2315,1784,48517,924
        Jun11,4033,305-7332,81016,7855,6474,66117,771
        Sep11,4222,914-3312,86416,8695,1524,95017,071
        Dec12,1173,0704983,02318,7085,3964,90719,197
1992 Mar10,8682,9806512,83917,3385,4524,68318,107
        Jun11,3753,366-3342,93717,3446,0754,94918,470
        Sep11,4123,015-2973,04517,1755,1075,44516,837
        Dec12,3153,1786083,15419,2555,3005,46819,087
1993 Mar10,9763,0106612,93817,5855,7034,75318,535
        Jun11,6473,323-2243,33018,0766,1325,24818,960
        Sep11,7683,038-463,66718,4275,5675,89618,098
        Dec12,5823,1308473,71920,2785,8445,87720,245
1994 Mar11,3043,0146763,38518,3796,4115,26219,528
        Jun12,1703,231-1233,94319,2216,8315,96220,090
        Sep12,2983,018-2134,23119,3346,0246,76618,592
        Dec13,1913,1209864,20621,5036,3816,60721,277
1995 Mar11,8473,0454893,97219,3536,7506,06920,034
        Jun12,4383,334-1584,44020,0546,8326,40420,482
        Sep12,6033,085-2344,45619,9106,2077,14118,976
        Dec13,2763,1667294,63221,8036,5527,01321,342
1996 Mar12,0783,0914954,14219,8066,8076,41620,197

Table 17.14. EXPENDITURE ON GDP AT CONSTANT PRICES* (Seasonally adjusted)

QuarterFinal consumption expenditureIncrease in stocksGross fixed capital formationGross National ExpenditureExports of goods and servicesLess imports of goods and servicesExpenditure on GDP
PrivateGeneral Government

1991-92 prices; year ended 31 March 1991-92.

Source: Statistics New Zealand

1990 Dec11,7723,084-653,60918,4014,9314,83218,500
1991 Mar11,5843,025-1723,27017,7065,0904,83217,964
        Jun11,4413,097-2092,84917,1785,2404,73017,689
        Sep11,4363,023222,79117,2715,4634,65918,075
        Dec11,4483,047252,88417,4045,6114,77318,242
1992 Mar11,4673,0912463,02717,8325,3565,06718,121
        Jun11,4223,1631702,97017,7265,6405,03418,333
        Sep11,4433,121942,95917,6165,4345,11317,937
        Dec11,6153,1571063,02317,9015,4895,30418,086
1993 Mar11,6103,1192823,14718,1585,5835,15818,582
        Jun11,7093,1362513,34818,4435,7185,36818,793
        Sep11,8113,1362683,54818,7625,9195,52219,159
        Dec11,8583,1133243,58518,8796,0355,68619,228
1994 Mar11,9613,1163343,64619,0576,2595,71019,606
        Jun12,2333,0633083,93419,5386,3936,11619,815
        Sep12,3113,1052294,08719,7316,4336,32819,837
        Dec12,4383,1074504,06720,0616,5746,37720,259
1995 Mar12,5063,1433274,29920,2756,5886,60320,260
        Jun12,4973,1613124,40820,3796,4076,57020,215
        Sep12,4863,1741534,29920,1126,6726,66920,115
        Dec12,6003,1551354,48820,3776,6596,76920,268
1996 Mar12,8073,1902354,49320,7246,6226,98920,358

A poster advertising 3% National Savings Bonds. The artist was W Krogman, and the scene shows, “The capture of the German submarine U 570 by a Lockheed “Hudson” of the British Coastal Command.”

QUARTERLY GROSS DOMESTIC PRODUCT
At constant prices*

17.2 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.

Table 17.15. ANNUAL BALANCE OF PAYMENTS STATISTICS SUMMARY OF MAJOR COMPONENTS

ItemYear ended March
19941995R1996P
Credit DebitCredit DebitCredit Debit
Source: Statistics New Zealand
$NZ(million)
Exports/imports (fob)19,518 16,38220,614 18,52420,172 19,304
Balance on merchandise trade 3,136  2,090  868 
Exports/imports of services5,528 6,4276,317 6,8836,815 7,182
Balance on services -899  -566  -367 
International investment income641 5,1621,168 7,3871341 7,630
Transfers2,396 9262,970 1,1593,630 1,168
Balance on invisibles -3,950  -4,975  -4,194 
Balance on current account -814  -2,886  -3,326 
Direct investment4,706 3,8114,020 2,2194,442 -254
Portfolio investment5,582 6961,459 -573,075 545
Other capital-2,765 1,635406 -733253 598
Reserve assets  729  -379... 674
Net errors and omissions-393  -1949  -2881  
Net apparent capital inflow1,774  2,507  4,000  

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’ capital 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 timetable has been established for the implementation of the fifth edition, as additional funding is required for these developments.

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 17.16. ANNUAL BALANCE OF PAYMENTS STATISTICS CURRENT ACCOUNT BALANCES

Year ended MarchMerchandise tradeInvisiblesCurrent account*
Source: Statistics New Zealand
 $NZ(million)
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
19923,591-5,472-1,881
19933,412-4,663-1,251
1994R3,136-3,950-814
1995R2,090-4,975-2,886
1996P868-4,194-3,326

BALANCE OF PAYMENTS

Table 17.17. ANNUAL BALANCE OF PAYMENTS DIRECT INVESTMENT STATISTICS

Year ended MarchForeign direct investment in New ZealandNew Zealand direct investment overseas
Source: Statistics New Zealand
 $NZ (million)
1985456349
1986745166
1987402949
1988238938
1989725226
19902,8243,961
19912,9322,546
19922,026728
19934,405-2,093
19944,7063,811
1995R4,0202,219
1996P4,442-254

17.3 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 people 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:

  • 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.

OVERSEAS DEBT
By currency

Table 17.18. OVERSEAS DEBT

 31 Dec 9531 Mar 9630 Jun 9630 Sep 9631 Dec 96
Source: Statistics New Zealand
$NZ (million)
Official government Sector22,41921,89623,38322,65322,328
Corporate sector52,12650,49753,83955,32557,508
        Total74,54572,39377,22277,97879,836

Table 17.19. OVERSEAS DEBT BY LIABILITY TERM

 31 Dec 9531 Mar 9630 Jun 9630 Sep 9630 Dec 96

*Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

Source: Statistics New Zealand

$NZ (million)
Current liabilities29,32127,60329,53330,57930,509
Current portion of long-term liabilities4,3503,9293,7962,4554,865
Long-term liabilities26,10125,22826,07726,03525,091
Domestically issued securities12,87213,69015,73016,73917,074
Unallocated estimate*1,9011,9432,0862,1702,298
        Total74,54572,39377,22277,97879,836

Table 17.2. OVERSEAS DEBT BY CURRENCY OF DENOMINATION

 31 Dec 9531 Mar 9630 Jun 9630 Sep 9631 Dec 96

*Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

Source: Statistics New Zealand

$NZ (million)
NZ Dollars38,76038,14342,57943,15744,970
US Dollars20,32719,65420,24021,42220,345
Japanese Yen5,5724,6664,1444,1943,805
Australian Dollars3,6473,7233,7562,9253,156
Other currencies4,3374,2654,4174,1115,262
Unallocated estimate*1,9011,9432,0862,1702,298
        Total74,54572,39377,22277,97879,836

Table 17.21. OVERSEAS DEBT BY DEBT INSTRUMENT

 31 Dec 9531 Mar 9630 Jun 9630 Sep 9631 Dec 96

*Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

Source: Statistics New Zealand

$NZ (million)
Loans23,65623,14224,25024,01826,635
Bills and bonds15,91715,76414,71713,04413,687
Deposits18,69616,57019,47220,87619,219
Accounts payable1,5031,2839671,132924
Domestically issued securities12,87213,69015,73016,73917,074
Unallocated estimate*1,9011,9432,0862,1702,298
        Total74,54572,39377,22277,97879,836

Table 17.22. OVERSEAS DEBT BY MATURITY PROFILE

 31 Dec 9531 Mar 9630 Jun 9630 Sep 9631 Dec 96

*Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

Source: Statistics New Zealand

$NZ(million)
At call6,5756,7348,1657,266,789
2-89 days23,00419,20221,19423,18726,091
90 days and under 1 year9,82210,9189,1488,4998,497
1-5 years14,75916,21916,10415,75914,095
Over 5 years18,48117,37720,52421,10422,067
Unallocated estimate*1,9011,9432,0862,1702,298
        Total74,54572,39377,22277,97879,836

Table 17.23. OVERSEAS DEBT RATIOS

DateOverseas debtGDPExport of goods and servicesRatio of overseas debt to:
GDPExport of goods and services
Source: Statistics New Zealand
$NZ(million)
31 Dec 199574,54589,09127,10583.7275.0
31 Mar 199672,39390,01526,97080.4268.4
30 Jun 199677,22290,87927,20585.0283.9
30 Sep 199677,97891,97427,37984.8284.8
31 Dec 199666,21592,63126,61186.2291.1

17.4 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 17.24. NEW ZEALAND'S INTERNATIONAL ASSETS AND LIABILITIES

ItemAt 31 March
199219931994R1995R1996
Source: Statistics New Zealand
$NZ(million)
Assets—
        equity15,24115,26415,89015,87320,533
        lending9,5527,3098,8058,0279,447
        official reserve assets5,7896,1716,9096,0956,748
          Total international assets30,58328,74431,60429,99536,728
Liabilities—
        equity18,60023,83129,04434,15139,185
        borrowing64,25768,77370,34367,34070,839
          Total international liabilities82,85792,60599,387101,491110,024
        Net international investment position-52,247-63,861-67,783-71,496-73,296

Table 17.25. NEW ZEALAND'S INTERNATIONAL INVESTMENT POSITION

ItemAt 31 March
199219931994R1995R1996
Source: Statistics New Zealand
$NZ (million)
New Zealand investment abroad—
        direct investment11,5067,9059,20510,94214,783
        portfolio and other investment4,9874,7286,9315,9946,821
        Official Reserve Assets5,7896,1716,9096,0956,748
          Total investment abroad22,28318,80423,04523,03228,352
Foreign investment in New Zealand—
        direct investment22,74327,81636,08340,16046,587
        portfolio and other investment41,66146,76350,00851,81454,850
          Total foreign investment74,55882,66590,82894,528101,649
Net international investment position-52,274-63,861-67,783-71,496-73,296

17.5 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. The Annual Enterprise Survey supplements the censuses, collecting financial information from a representative sample of some 30,000 businesses. Most non-farming, market-orientated industries are included in the Annual Enterprise Survey coverage. Quarterly business surveys, such as the 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, market-orientated businesses for the 1986–7 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. A manufacturing census was conducted in the 1994–95 year. The 1995–96 year coincided with a “rest of economy” census, covering all industries except manufacturing, distribution, mining and quarrying.

In addition to these financial surveys and censuses, the Annual Business Directory Update Survey collects business demographic information as at February each year. This survey collects non-financial data relating to the location, type of activity, degree of overseas ownership and employment level of New Zealand business. This survey (together with data from the Inland Revenue Department and various other sources) is used to update the Business Directory, which is the population register for Statistics New Zealand's business surveys and censuses. Farms are excluded from this survey, as are property owners, businesses involved in commercial property leasing and rental, non-profit organisations, religious organisations, sporting and recreation clubs, and non-trading companies.

Up until 1994, Business Directory statistics included businesses that compulsorily registered for GST. Since then the statistics have been 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.

The statistics on activity units and full-time equivalent persons engaged in Table 17.26 are derived from the Annual Business Directory Update Survey. The table uses the New Zealand Standard Industrial Classification, for comparability with the Annual Enterprise Survey results presented elsewhere in this book. An “activity unit” is a separate operating unit engaged in one (or predominantly one) kind of economic activity from a single physical location. “Full-time equivalent persons engaged” equal the sum of the full-time employees and working proprietors engaged, plus half the part-time employees and working proprietors engaged. A person is regarded as full-time if they work 30 or more hours per week.

Table 17.27 is also based on the Annual Business Directory Update Survey and shows full-time equivalent persons engaged by regional council areas, as at February 1996. This table uses the Australian and New Zealand Standard Industrial Classification.

Inland Revenue managers with “Smart Business” kits for small and new businesses, 1996.

Table 17.26. ACTIVITY UNITS* AND FTE PERSONS ENGAGED† BY NEW ZEALAND STANDARD INDUSTRIAL CLASSIFICATION

NZSIC RangeNZSIC Description1995 Activity Units1996 Activity Units1995 Full-time equivalent persons engaged1996 Full-time equivalent persons engaged

*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.

Source: Statistics New Zealand

112Agricultural contracting services4,4154,86515,59216,774
113Hunting & trapping8877231246
12Forestry & logging3,4083,5059,9119,953
131Ocean and coastal fishing1,3671,3593,9123,969
132-133Fishing inland waters, fish farming & fishing consulting3593719851,000
21Coal mining5953907872
22Crude petroleum & natural gas exploration & extraction8483891780
23-29Other mining & quarrying5095302,9113,127
3111Slaughtering & meat processing34434223,90025,684
31122Milk Bottling & packaging4044738719
31123Manufacture of ice cream2527533575
31125Manufacture of dairy products78776,5036,830
3113-3122Processing of other foods1,7341,66927,09326,860
313Manufacture of beverages2292433,1233,199
314Manufacture of tobacco76494486
321Manufacture of textiles89688710,98810,344
322-324Manufacture of apparel & footwear1,5531,52517,79916,298
33Wood processing & wood product manufacturing3,6183,64426,98826,921
3411Manufacture of pulp, paper & paperboard28283,6293,695
3412Manufacture of paper & paperboard containers65553,0963,091
3419Manufacture of other paper products69621,9221,976
342Printing & publishing1,5611,51017,98117,883
3511Manufacture of basic industrial chemicals5857891871
3512Manufacture of fertilisers & pesticides83771,3201,176
3513Manufacture of plastics1111202,6192,360
352Manufacture of other chemical products4014046,0095,824
353Petroleum refineries22574556
354Manufacture of petroleum & coal products4339427389
35513Manufacture of tyres & tubes40361,0801,081
3559Manufacture of rubber products nee8069894895
356Manufacture of plastic products nee4274408,2038,364
36Manufacture of non metallic mineral products9329256,9367,221
37Basic metal industries2352386,8696,756
381Manufacture of fabricated metal products (except machinery & equipment)2,7332,79222,31323,013
382Manufacture of machinery (except electrical)3,2103,40518,50519,336
383Manufacture of electrical machinery & appliances68868012,19211,904
384Manufacture of transport equipment1,1211,14613,96414,141
385Manufacture of professional & photographic equipment101114636712
390Other manufacturing industries1,0731,0644,6014,353
4101Electricity generation & distribution3713528,2158,000
4102Gas treatment & distribution3632858798
4103, 42Steam & hot water supply, water works & supply1411491,0901,055
51, 53Construction of buildings & ancillary services26,15528,27970,08875,905
52Other construction2,8853,06417,56919,164
611-61215, 6122Wholesale commodity traders1,3681,3708,6688,678
61216-61219, 6123-613, 615, 6191-6195Wholesale household items3,0663,15217,02217,667
614Wholesale building products1,6651,71512,49612,271
616-6181, 6199Wholesale paper, industrial & intermediate products5,9696,03926,37326,495
6182-6184Wholesale agriculture machinery & equipment3,6214,16722,75125,712
6185-6189Wholesale transport equipment8479575,2475,442
621-623, 626-627Retail durables13,92613,07967,55967,137
624-625, 629Retail non-durables11,43010,47443,98242,391
628Retail automotive7,2777,25735,44436,672
63Restaurants & hotels11,56411,63565,80267,666
7111Railway transport2061841,9362,108
7112-7113Road passenger transport2,4612,6328,2318,381
7114Road freight transport5,1745,21520,91421,733
7115-7117,719Pipeline transport & services allied to transport2,9623,00214,33915,303
712Water transport & supporting services to water transport3313275,9545,878
713Airtransport6116169,83310,216
72Communications3,0703,37121,80122,908
811Banking1,8041,63224,12824,403
812Other financing6275902,4542,575
8131, 82301, 814 (exel 81492)Services to finance, investment, insurance & superannuation2,2552,2498,6958,754
8133Holder investing6,0246,0203,6414,016
8211Life insurance2122073,6843,720
8212Medical insurance136129775730
8213General insurance3984114,6714,912
822Superannuation & mutual fund operation1,7401,5584023
82302Insurance commission agents474436766728
8311 (excl 83113)Real estate2,0302,1156,9247,744
83113Real estate commission agents4,7565,2455,0195,506
83124Property developers2,5302,7803,6113,969
832-834Business services23,44726,13896,876102,544
9101Central government administration2,3082,20363,69061,509
9102Local government administration1,1491,12513,81114,276
92Sanitary & cleaning services2,3212,40212,74214,070
931 (excl 93105), 932Educational services, scientific & research establishments7,2097,36996,227104,051
9331-9332Medical & dental & other health services7,9158,36771,64171,802
9333Veterinary services, boarding kennels & catteries6196262,4782,548
93401Old peoples licensed rest homes78177413,03713,703
94 (excl 94150, 94141,94209, 94401,94402)Amusement & recreational services4,5914,71722,59024,211
94141, 94209Live entertainment & cultural services4024031,3091,379
94150Authors, music composers & other independent artist8961,1331,1621,405
94401Self-employed sports people7890102120
9511-9512, 9519Repair of footwear, leather goods, electrical goods & other repair shops nee1,3651,3363,4633,485
9513Panelbeaters & auto-electricians3,1213,27010,36811,314
952Dry cleaning & laundry services4754583,1603,168
953Domestic services2525412380
959Hairdressers, photographic & beauty shops3,9133,89211,18611,214
 Total220,611 1,262,973 

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’, non-profit organisations; and non-trading and dormant companies, religious organisations and sporting and recreational clubs.

Table 17.27. FULL-TIME EQUIVALENT PERSONS ENGAGED BY REGIONAL COUNCIL AND STANDARD INDUSTRIAL CLASSIFICATION
February 1996
Economically Significant Enterprises*

Regional councilAgriculture, forestry and fishingMiningManufacturingElectricity, gas and water supplyConstructionWholesale tradeRetail tradeAccommodation, cafes and RestaurantsTransport and storageCommunication servicesFinance and insuranceProperty and business servicesGovernment administration and defenceEducationHealth and community servicesCultural and Recreational servicesPersonal and other 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.

Source: Statistics New Zealand

Northland1,6461975,6673832,8831,6245,7741,8881,6083319512,7001,2103,4282,92250293634,648
Auckland1,74341692,5021,81630,48847,73254,19615,92123,9719,11417,45657,42414,10126,20723,7468,94311,276437,048
Waikato4,2931,22820,3121,5849,0275,66415,5055,0733,9151,8582,8679,9383,5519,7468,2072,0913,075107,929
Bay of Plenty3,2789612,1105516,1503,97410,1723,6403,4939331,6225,8932,3125,1035,2441,2991,76167,627
Gisborne1,200301,8881439915671,9045275011702648184601,3931,02213335812,365
Hawke's Bay1,7896010,3874833,2072,6396,2071,7341,6774851,1303,1191,6453,5523,1745591,15442,999
Taranaki5848178,2316232,8201,6924,7631,3281,2245108152,7689292,5352,60259778233,617
Manawatu2,27312013,7556405,1593,88910,3433,5052,0951,2421,7645,7796,7928,0205,7131,1121,96174,156
Wellington1,20113122,4881,53010,27912,08918,3526,8877,5964,23113,20625,46017,47013,04810,0804,6804,945173,669
North Island Total18,0053,092187,3387,75271,00279,869127,21340,50246,07918,87340,073113,89748,46773,03162,70919,91326,245984,056
Tasman790401,9021489574521,418524500451415952167613132631829,240
Nelson1,05923,409641,0871,0112,1737828963094581,3956141,0441,65721842516,598
Marlborough1,043642,6561209904431,8617495741322258481,37363754317725612,687
West Coast7276891,4221378013141,5081,0176289315947242875995221822910,548
Canterbury2,45119337,3641,37612,14712,47921,5708,3279,0462,7584,82015,5858,85012,68913,3553,4004,034170,440
Otago1,82424111,0527074,6842,9128,6954,3982,7127581,6805,3352,3536,3745,4631,5841,66662,432
Southland1,6732648,9702672,8451,5814,5991,7601,5183148972,0511,0182,2622,44337789233,727
South Island Total9,5661,49066,7752,81723,51019,19041,82217,55515,8724,4078,37826,27914,85024,52424,7256,2347,682315,672
Extra County Islands and Shipping154..604721610162471518392325
New Zealand Total27,7244,582254,17210,57294,51999,060169,05158,06761,96723,28248,454140,18263,33197,57287,43626,15633,9291,300,052

Contributors

  • 17.1–5 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, 4th ed, 1993.

Chapter 18. Agriculture

Martin Bruce's maxi-till, 10m wide, built in Darfield to his design, expected to halve the time taken by an average-sized till. 1996.

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 1996 was the highest on record at 788,000 tonnes of milk solids. The weighted average payout received by dairy farmers for the season was $4.00/kg of milk solids, an increase of 18.0 percent from the previous season's level. Production for the season ending 30 May 1997 is expected to exceed record levels. Dairy cow numbers continue to increase, rising by around 2.5 percent in the year to June 1996. They now stand at around 4.090 million.

Total sheep numbers continued to fall to (provisionally) 47.40 million at 30 June 1996, reflecting lower prices for sheepmeat. Sheepmeat production fell to about 509,000 tonnes in the year to 30 September 1996. Wool production dropped to about 199,000 tonnes.

The New Zealand beef cattle herd is continuing to expand, and reached 4.8 million head on 30 June 1996. Beef and veal production remained stable at 632,000 tonnes (carcass weight equivalent) in the year ending 30 September 1996 (631,000 tonnes in 1995).

Pipfruit sales showed strong growth with increased export sales reflecting an increase in plantings.

FARMLAND
By land use

Table 18.1. FARMLAND USE BY REGIONAL COUNCIL AREA AS AT 30 JUNE 1995

Regional CouncilNumber of farmsGrazing, arable, fodder and fallow landLand in horticulturePlantations of exotic timberOther landTotal land

Source: Agriculture Production Survey, Statistics New Zealand, for the year ended 30 June 1995

1. Symbols used in this table:

“c" denotes an estimate that has been suppressed for reasons of respondent confidentiality.

“s" denotes an estimate that has been suppressed for reasons of very poor quality.

2. Chathams Islands data has been combined with the South Island total.

 hectares
Northland RC5,770621,1926,160150,97683,455861,782
Auckland RC5,298234,93611,309..s27,062310,241
Waikato RC11,9541,277,60310,564..s169,5371,733,937
Bay of Plenty RC5,511293,13913,257227,35493,886627,636
Gisborne RC1,394521,931..s..s61,381699,278
Hawke's Bay RC3,860808,05918,694188,83070,5051,086,088
Taranaki RC3,963420,2441,17624,11751,666497,203
Manawatu-Wanganui RC6,6121,383,25710,56594,520122,7471,611,090
Wellington RC2,249418,4172,101..s45,304512,225
            Total, North Island46,6115,978,77984,7121,150,446725,5437,939,480
Tasman DC1,919131,3387,340..s46,171271,536
Nelson CC132..s..c..s..c14,758
Marlborough DC1,413535,129..s..s..s701,471
West Coast RC890200,309..s29,334176,983406,940
Canterbury RC9,3813,159,73918,774..s133,6633,407,844
Otago RC3,8952,307,9044,483..s..s2,507,382
Southland RC4,4931,146,976..s..s47,1481,269,141
            Total, South Island22,1657,541,01639,431448,297609,7188,638,462
            Total New Zealand68,77613,519,794124,1431,598,7431,335,26116,577,942

Table 18.2. LAND USE BY FARM TYPE, AS AT 30 JUNE 1995

Farm typeNumber of farmsGrassland lucerne tussock or danthoniaLand in horticulturePlantations of exotic timberOther landTotal land

Source: Agriculture Production Survey, Statistics New Zealand, for the year ended 30 June 1995

1. Symbols used in this table:

“c" denotes an estimate that has been suppressed for reasons of respondent confidentiality.

“s" denotes an estimate that has been suppressed for reasons of very poor quality.

 hectares
Dairy farming—factory supply14,7471,507,5611,23012,91763,2051,584,913
Sheep farming7,3703,422,91895110,14679,1463,513,162
Beef farming7,664894,343..s3,16681,052979,151
Cropping64077,394..s25285779,805
Dairy farming with other1,775251,9871,8309,69015,882279,389
Sheep farming with beef4,7973,297,3351,18420,663277,2683,596,451
Sheep farming with cropping390103,19534456712,646116,752
Sheep farming with other1,745974,331..s21,61354,2001,051,561
Beef farming with sheep2,077710,528..s3,49186,473801,057
Beef farming with other1,927156,6859286,094..s178,517
Cropping with sheep36079,602..s33530681,388
Cropping with other29539,3342,449..s..s42,651
Pig farming86633,545159417..s34,763
Horse breeding and training1,01122,967..s..s..s23,723
Deer farming2,070220,580..s3,285..s234,436
Goat farming100..s..s..c..c..s
Small animal breeding..s..c-..c..c..s
Mixed livestock3,7031,276,0194,85754,349139,0861,474,311
Broiler poultry farming1905,123..s..s..s5,579
Other Poultry farming276..s88..s..s..s
Citrus orchards542..s2,648..s..s4,925
Pipfruit orchards1,90113,15720,2599421,35535,712
Stonefruit orchards266..s1,99028..s3,447
Kiwifruit orchards1,84413,38912,7781,2172,21529,600
Berry fruit growing355..s2,263..s..s..s
Grape growing5905,1697,053..s..s12,938
Other fruit n.e.c1,01811,6454,900..s..s18,980
Vegetable growing inc. tomatoes2,91576,15141,6871,871..s121,862
Mushroom growing25..c53..c-91
Tobacco and hop growing39..s564..s566..s
Flower growing1,60010,0702,357..s..s13,658
Plant nurseries6561,5552,740318..s5,106
Beekeeping176..s..s..s..s..s
Plantations3,206194,174..s1,439,969447,7052,082,771
Other farming39856,0163,875..s..s66,144
Idle land1,22042,765668-34,76278,195
            Total, all farm types68,77613,519,794124,1431,598,7431,335,26116,577,942

Table 18.3. FARM EMPLOYMENT, AS AT 28 FEBRUARY 1995

Farm typeWorking owners, leaseholders and sharemilkersUnpaid family membersPaid permanent employeesCasual workers
Full-time*Part-time†Full-time*Part-time†Full-time*Part-time†

*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. 1995 employment data is released with a caveat because of under statement for some entries.

1. Employment has been randomly rounded to comply with Statistics New Zealand's policy on confidentiality.

Consequently totals may not necessarily reflect the exact value of their components.

2. “..s" denotes an estimate that has been suppressed for reasons of very poor quality.

Source: Agriculture Production Survey, Statistics New Zealand, for the year ended 30 June 1995

Dairy farming19,4504,7801,8303,1406,4801,1101,490
Sheep farming6,7002,3209802,0701,3804501,210
Beef farming4,3004,0306201,970485..s..s
Cropping560220..s..s1533668
Dairy farming with other1,860760230520510..s320
Sheep farming with beef4,5801,2806101,2502,5605001,640
Sheep farming with cropping410110401201202465
Sheep farming with other1,740530260550565145455
Beef farming with sheep1,630840210520625..s..s
Beef farming with other1,2601,120..s800..s..s..s
Cropping with sheep410110..s851432446
Cropping with other..s..s..s..s1231585
Pig farming670..s..s2204608565
Deer farming1,1901,190130600..s..s130
Goat farming..s..s..s..s..s..s0
Mixed livestock3,3001,6604701,3001,630410..s
Horticulture9,3345,4121,2172,7018,5233,08517,113
Plantations700980..s6101,030..s..s
Other farming nec‡1,8991,4472425481,234502427
            Total, all farm types60,31027,3407,46017,28026,4607,31025,550

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 543,000 tonnes from 1990 to 1995. 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.

The nutrient value of the total fertiliser applied is now higher, as a result of the changeover from superphosphate fertiliser to other fertilisers which have higher nutrient values. The productive response to the total fertiliser applied in 1996 is therefore higher than when similar tonnages were applied in the early 1980s.

Table 18.4. MANUFACTURED FERTILISER AND OTHER FERTILISER SOLD BY FERTILISER WORKS

Year ended 30 JuneSuper-phosphatic fertiliserOther fertiliser including phosphatic rockTotal
Source: Ministry of Agriculture
 tonnes
19881092530993461191876
198912152881570181372306
199013096021944461504048
199110954572175531313010
199212165314216991638230
199314931084560961949204
199416298895939572223846
199514243166229242047240
19961577928P627640P2205568P

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
1990-911991-921992-931993-94

*Some figures have been revised.

This series does not measure total capitalised development.

Source: Statistics New Zealand

 $(million)
Purchase of livestock592625804815
Feed and grazing368374509513
Animal health and breeding266275338378
Weed and pest control147159197187
Fertiliser, lime and seeds585663864890
Fuel and power346354384380
Repairs and maintenance695704811832
Freight152150164166
Other (not elsewhere classified)1,4481,5011,6281,634
 4,5994,8065,6995,795
Less capitalised development†20191525
            Total intermediate consumption4,5794,7875,6845,770

Table 18.6. GROSS AGRICULTURAL PRODUCTION*

CommodityYear ended March
1990-911991-921992-931993-94

*Some figures have been revised.

Wool output has been revised due to changes in wool stocks methodology.

Other products nec have been revised due to timber stock change now being recorded separately and a revision of timber sales figures.

§Revisions have occurred to stock changes as a result of methodology updates.

||Non-farm income category, introduced in July 1994, includes rental, income from farm-stays etc.

Source: Statistics New Zealand

 $(million)
Wool†859811729702
Sheep8838451,0321,214
Cattle1,3731,4431,5511,531
Pigs126126133143
Dairy products1,6372,2342,5232,584
Poultry products208196206213
Crops and seeds312314342356
Fruit, nuts and oilseeds692833725591
Vegetables419390447505
Other horticultural products160177195207
Agricultural services758807876920
Other products nec‡150177237218
Value of change in livestock§
    Sheep58-63-8231
    Cattle7411756403
    Pigs, deer and goats4923-2226
    Timber26313554
Sales of live animals671701876887
Non-farm income115135170169
            Gross output8,5709,29710,02910,754

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
        Jun972970977990974
        Sep980978984996982
        Dec99710009921006998
1995-Mar1024103699910191022
        Jun10321047100510221030
        Sep10301047100210211028
        Dec10321048100010221029
1996-Mar10291043100110261027
        Jun10301044100410311029
        Sep10441062101210381042
        Dec10491064101710461047

Table 18.8. FARM EXPENSES PRICE INDEX—ALL FARMS*

Input typePercentage of base expenditurePrice index for quarter ended
1995 Dec1996 MarJunSepDec

*Base: December quarter 1992 (= 1000).

Source: Statistics New Zealand

Administration4.910681074109010971105
Animal health and breeding4.110621061105910751085
Dairy shed expenses0.510291030103010121032
Electricity1.610651073108711011108
Feed, gazing, cultivation and harvesting7.610461049105910681065
Fertiliser, lime and seeds9.2961954950930928
Freight1.9966961952946947
Fuel3.8901924926926948
Insurance premiums1.79691035106210171011
Rent and hire2.211471169116712051211
Repairs, maintenance, motor vehicle repairs10.310421042103310411048
Packaging costs3.5893893887886884
Shearing3.710431045105010581062
Weed and pest control2.910161020102310271035
Livestock purchases10.7926942928947967
Sub-total excluding livestock57.910141018101910211026
Sub-total including livestock68.610001006100510101017
Local and central government rates and fees3.611091109110911091163
Interest rates17.310601032102810861084
Wages and salaries10.510361040105510591062
All inputs excluding livestock89.310291027102910421047
All inputs including livestock10010181018101810321038

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 is the subject of an independent review of activities and structures, scheduled to be reported on by 1 July 1997.

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:

  • Domestic Policy

  • 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 and plants, 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.

Table 18.9. FARMING SINCE 1861*

YearFarmsArea in occupationTotal cattleSheepPigsDeerGoatsFertiliser spreadLand in plantationsLand for horticulture
Dairy cattleBeef cattle

Because of the different ways statistics have been gathered since 1861, this table can be used only to indicate broad trends. From 1971 the coverage includes all farms, irrespective of size or location, but before this, the counting both of farm animals and of the number of farms varied, depending on the size of the farm and whether or not boroughs were included. From 1994 there has been a change in the definition of a farm. Figures are for year ended 31 January up till and including 1961, then year ended 30 June.

The sheep number peaked in the early 1980s at around 70 million.

Source: Statistics New Zealand

  hectarestonneshectareshectares
 number(000)(000)(000)(000)(000)(000)(000)(000)(000)(000)
1861  193        
187110211...436 276143     
188124147...699 9701151     
18913808312896832 12985200     
190162786141281257 18128309     
191173876162842020 20233251     
192184076176233139 23996347     
193183816174984080 23285350     
194186373173564576 29792476     
195190230174655060 31752786     
106173166176716446 3198564     
197164882174233198479658911552  2219507 
198172515212502922511369884420109683508953 
1991804391745034294671551624071130792 159991
1995687761657840905182488164311179 32731599124

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.

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 18.1. DISTRIBUTION OF LIVESTOCK, AS AT 30 JUNE 1995

Regional CouncilTotal dairy cattleTotal beef cattleTotal sheepTotal PigsTotal deer

1. Symbols used in this table:

“c" denotes an estimate that has been suppressed for reasons of respondent confidentiality.

“s" denotes an estimate that has been suppressed for reasons of very poor quality.

2. Chathams Islands data has been combined with the South Island total.

Source: Agriculture Production Survey, Statistics New Zealand, for the year ended 30 June 1995

Northland RC394,986588,005780,1466,43715,502
Auckland RC175,952219,658503,26625,82027,579
Waikato RC1,523,259864,2233,515,33872,673140,868
Bay of Plenty RC306,655167,108650,40515,46472,189
Gisborne RC7,022363,8582,094,1872,80721,530
Hawke's Bay RC30,955528,1874,351,06011,039103,737
Taranaki RC618,543168,260906,99420,94615,835
Manawatu-Wanganui RC324,097857,1707,430,17340,303123,866
Wellington RC92,376218,9392,175,12322,63727,206
            Total, North Island3,473,8443,975,40922,406,695218,127548,313
Tasman DC52,46364,896409,296..s33,453
Nelson CC..c2,16216,033..c..c
Marlborough DC24,03580,354930,216..s16,552
West Coast RC85,15665,975221,246..s..s
Canterbury RC239,138488,0999,562,261157,557277,248
Otago RC87,768284,3477,481,11520,28390,551
Southland RC125,806214,3267,687,777..s186,216
            Total, South Island615,9731,207,09926,409,576212,877630,391
            Total New Zealand4,089,8175,182,50848,816,271431,0041,178,704

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.

AGRICULTURAL EXPORTS
By region

FARMLAND
By type of farm

“Sheep-dipping, Canterbury.” Late nineteenth century.

A Waitepeka deer farmer with his top velveting stags.

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 18.11. CATTLE CATEGORIES

CategoryAs at 30 June
1994*1995

*Figures do not equate to the total due the estimates for the components of livestock types being calculated independently from the estimates for the totals. In 1994 a change in survey population definition was introduced.

Source: Agriculture Production Survey, Statistics New Zealand, for the years ended 30 June 1994 and 1995

Dairy cows and heifers in milk or calf2,994,0223,153,230
Dairy cows and heifers not in milk or calf120,070158,391
Dairy heifer yearlings and calves (including bobby)687,693740,648
Dairy bulls for breeding31,43031,543
Other dairy cattle 6,004
            Total, dairy3,839,1844,089,817
Beef cows and heifers bred from1,576,5881,616,860
Beef cows and heifers not bred from473,262501,460
Bulls—all ages779,091692,273
Other beef cattle2,204,0252,371,914
            Total, beef cattle5,047,8485,182,508
            Total cattle8,887,0329,272,325

LIVESTOCK ON FARMS
Total numbers

Table 18.12. 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.

Source: Statistics New Zealand

 (000)
199042,09715,75557,852
199139,83315,32955,162
199238,39914,16952,568
199336,63813,66150,298
1994*35,75413,61849,466†
199534,99913,81848,816

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. About 90 percent of lamb, 75 percent of mutton and 81 percent of beef produced in New Zealand was 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 over 99 percent of the pigmeat and poultry produced in New Zealand.

Table 18.13. MEAT PRODUCTION*

CarcassesYear ended September
1992R1993R1994R1995R1996P

*Inspected meat production at meat export works and abattoirs.

Source: Ministry of Agriculture

 tonnes (000)
Beef529565529612619
Veal1515152424
Mutton187161153172162
Lamb401353399390378
Pigmeat14850505252
            Total12801144114612501235

Table 18.14. LIVESTOCK SLAUGHTER AT MEAT EXPORT WORKS AND ABATTOIRS

AnimalsYear ended September
1992199319941995R1996P
Source: Ministry of Agriculture
 head of stock (000)
Lambs2807323380262112668424570
Sheep78466693589669516300
Adult cattle21362264204524132418
Calves and vealers79080282512541278
Pigs808818823849840

Table 18.15. EXPORT MEAT PRODUCTION

Type of meatYear ended September
19911992199319941995P

*Figures may not add due to rounding.

Source: New Zealand Meat Producers Board

 tonnes (000) shipping weight
Lamb—carcasses123.9135.779.2108.696.4
—other162.2176.0184.9194.2192.4
Mutton—carcasses46.754.922.921.135.7
—other29.928.739.838.138.7
Beef—manufacturing207.2219.0242.0216.898.7
Beef—other74.075.484.683.7248.6
Veal7.27.87.96.712.3
Goat2.32.01.81.61.7
Variety meats31.237.340.841.952.9
Inedible meat and offal19.316.917.318.017.2
            Total*703.9753.6721.3730.7794.5

Meat types

Sheepmeat

Lamb—is a young sheep under 12 months of age or one that does not have any permanent incisor teeth in wear.

Hogget—is a young male sheep or maiden ewe having no more than two permanent incisors in wear.

Ram—is an adult uncastrated male sheep having more than two permanent incisors in wear.

Mutton—includes ewes and castrated males (wethers) with more than two permanent incisors in wear. A wether must not show any ram characteristics.

MEAT PRODUCTION
Total

MEAT PRODUCTION
Export

A milk dispenser for feeding calves made by a New Plymouth farmer in 1965. It took 15 minutes to feed 40 calves from this 25-gallon milk can, with holes drilled to take 20 teats attached to plastic tubes.

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 bovine with masculine characteristics.

Bobby calves—Bobby veal carcasses are derived from milk-fed bovine calves generally under two weeks of age.

Veal—Veal is no longer an export meat type as numbers are now insignificant. Previously defined as maiden female, castrated male, or entire males (not showing masculine characteristics) that are up to 14 months of age.

A standard system of classifying meat is used in New Zealand. The classification systems for beef and sheepmeats have been developed by the New Zealand Meat Producers Board in consultation with producers and the Meat Industry Association.

Export meat is classified according to the type of animal, and includes maturity, sex, fat content and muscling. Weight is relevant for payment purposes.

Schedule prices

Some meat processors publish their schedules of stock purchase prices in the weekly specialist 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

Classification1990-911991-921992-931993-941994-95

*Includes skin and one kilogram wool pull.

Source: Meat and Wool Boards' Economic Service

Lamb ($/head)*
PL 9.1-13.2 kg21.9921.1831.9635.2326.83
PM 13.3-17.0 kg28.1929.1941.0841.3234.59
YL 9.1-13.2 kg21.3423.3431.7934.0126.07
Mutton ($/head)*
MX 22 kg and under11.7213.1626.3426.8822.58
ML 22 kg and under13.3414.6929.1528.4825.10
Beef (cents/kg)
P2 Steer 245.5-270 kg†261.6x272.1300.5270.9213.4
K2 Steer 245.5-270 kg†257.3x268.1294.6270.3216.0
M Cow 145-170 kg216.7x211.5221.8200.1157.3
M Bull 245.5-270 kg272.6x282.0291.2259.5210.0

Red meat production

The New Zealand production season runs from 1 October to 30 September. New Zealand accounts for 1.0 percent of global beef and veal production, and 6.4 percent of global lamb and mutton production.

In the 1995-96 season slaughterings decreased for lamb and sheep but increased for cattle. The decrease in lamb and sheep slaughterings was only partially offset by increased slaughter weights so that bone-in production of lamb and mutton decreased on the previous year. A decrease in cattle weights was offset by increased slaughterings so that beef bone-in production remained similar to the 1994-95 level. Bobby veal production increased due to increased slaughterings.

New Zealand Meat Producers Board

The New Zealand Meat Board Producers Board exists primarily to 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 that producers in New Zealand of stock from which meat is derived obtain the best possible long-term returns. It is involved in market access, market development and information, international promotion, carcass classification, quality assurance and provides market support through offices in Brussels, London, Tokyo, Washington and Seoul.

The Meat Board funds a number of organisations including the Meat Research and Development Seoul.

Table 18.17. MEAT BOARD LEVIES, 1 OCTOBER 1995

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

Council, the Beef Council, the Sheep Council and provides partial funding for the Beef and Lamb Marketing Bureau.

Its levy income totalled $25.4 million in the year ended September 1996.

MEAT CONSUMPTION
Per person

Export marketing

At September 1996 New Zealand meat was sold overseas by 73 companies fully 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, Saudi Arabia and the United States for lamb; the United Kingdom, Germany, South Korea and France for mutton; and the United States, Canada, Japan, South Korea and Taiwan for beef. In the 1995-96 season 53 percent of all sheepmeat exports went to the European Union. The United States alone accounted for 51 percent of all beef exports in 1995-96. All export figures are in shipped weight.

Sheepmeat. During the 1995-96 season lamb exports totalled 297,937 tonnes, an increase of 1.9 percent on the 1994-95 season. Exports to the United Kingdom fell from 99,925 tonnes in 1994-95 to 87,714 tonnes in 1995-96. Lamb exports to other European Union markets increased by 10,086 tonnes, or 13 percent.

Total mutton exports decreased by 13 percent to 70,284 tonnes. Shipments to the European Union increased by 33.4 percent to 33,489 tonnes. The United Kingdom, New Zealand's largest single market for mutton, took 20,579 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 226,700 tonnes.

Beef and veal. New Zealand's biggest market for beef and veal in 1995-96 was the United States, with shipments totalling 169,608 tonnes. Canada was the next largest market, with 46,335 tonnes. Exports to South Korea, the third largest beef market, fell slightly to 23,811 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.

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
1991125.7123.5116.9125.7121.3
1992138.9133.4124.6138.9132.3
1993r172.0168.7157.7172.0168.7
1994194.0191.8178.6194.0191.8
1995156.6159.9158.8154.4158.8
1996185.2185.2180.8179.7184.1

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 bull Manufacturing cow
Source: Meat and Wool Boards' Economic Service
 US cents a kilogram
1990277.8260.2
1991280.0262.4
1992270.1255.8
1993269.0258.0
1994277.8273.4
1995200.7197.3
1996189.6170.9

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
199549.55.8213554
199648.85.5199494

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.

J. Stewart's bullock team carting wool on the Slip Road, North Otago.

Shearing gang standing by a traction engine loaded with 120 bales of wool, in the Hastings area, about 1905.

The board is entirely funded by woolgrowers and has no government financial backing. The main sources of income for the board are: a 5 percent levy on gross wool receipts ($53.2 million in 1995-96) and interest on investments ($12.1 million in 1995-96). The principal expenditure of the board is wool promotion and research ($60.6 million in 1995-96).

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 1995-96, training courses were provided for more than 1,000 shearers and 500 woolhandlers and woolclassers. 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 1996-97 will invest $8 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; 54 percent was sold this way in 1995-96. 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 (31 percent of sales in 1995-96).

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
1996107494520.0

Around 90 percent of the New Zealand clip leaves the country in a greasy, scoured, or slipe form. Seventy-five percent of exports are scoured. Of the 10 percent of the clip processed in New Zealand, roughly half is exported in product form, mainly as carpet yarn, carpets or knitted jerseys.

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 1995-96 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.

Loading wool for the Napier market at Waipiro Bay, about 1908.

Motorised transport of wool at Cape Terawhiti near Wellington, about 1939.

WOOL EXPORTS
By destination

Godfrey Bowen with eight rams in the Festival Plaza at Expo 1970 in Osaka, on New Zealand's National Day.

Table 18.22. EXPORT DESTINATIONS OF NEW ZEALAND WOOL FIBRE

Country1990-911991-921992-931993-941994-95R1995-96
Source: Wools of New Zealand.
 clean tonnes
China190514769236516602625270250864
Nepal867716599177111190767838196
United Kingdom182751905616314229561973717093
Japan24604197061550314919140069898
Belgium12096161671148112901111197882
India1610010406111971722875617716
Germany11198128089706125631406612139
Hong Kong310796598819119322314316345
United States747691758398844997978433
Australia84188610768210761130098713
CIS7822466616092095  
Other448454333335541400594585734361
            Total    217780181690

Net domestic consumption of wool in New Zealand is among the highest in the world on a per head basis. In 1995 this was estimated at 3.7 kg per head compared with the 1993 figures of 1.99 kg in Australia, 2.21 kg in 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*

Product1989-901990-911992-931993-941994-95R1995-96

*Year ended 30 June.

Source: Wools of New Zealand

 $(million) fob
Carpets/rugs81.165.166.067.379.072.5
Wool yarn92.775.471.459.865.459.8
Wool apparel7.97.819.017.014.214.9
Sheepskin final products...21.930.632.246.834.7
Sheepskins—raw and processed41.920.636.140.935.057.7
All other17.814.421.320.217.020.3
            Total241.4205.2244.4237.4257.3260.0
            Total, wool sector    1510.21294.0

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-non-fat (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 12 co-operative dairy companies, which operate around 29 dairy factories for the production of manufactured dairy products. Each company is governed by a board of directors who are elected by farmer suppliers. The co-operatives utilise funds supplied in the form of share capital by the farmers.

The companies produce nearly all dairy products manufactured in New Zealand. On an annual basis the companies convert approximately 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.

Table 18.24. MILK PRODUCTION AND UTILISATION

Product1988-89*1989-901990-911991-921992-931993-941994-951995-96

*New series, includes milk sold for processing only.

Source: New Zealand Dairy Board

 million litres
Production
Total milk production6969730275097871805090038997...
Utilisation
Milk sent to dairy factories65336868707874547629860386339325

Table 18.25. DAIRY FACTORY PRODUCTION

Product1990-911991-921992-931993-941994-951995-96
Source: New Zealand Dairy Board
 tonnes
Creamery butter216291218351206606223182213329241537
Anhydrous milkfat345904330245661489045200455832
Frozen cream6080...6278869778638652
Cheese124773137405144521193348197370229086
Whole-milk powder235383250105279179306448312287298307
Infant food/nutritional products160942456328778263252960734869
Skim-milk powder147413136037126545140895143775172149
Buttermilk powder244962340223496266292723029984
Casein products656227419474216794547031179157
Lactose225202560326222298471467320132
Whey powders118821370813976186981900522414

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 89 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 stand for Ganes milking machines at the Royal Agricultural Show, England, in 1913. “More Gane machines sold than any other three makes combined in N.Z. for past year. Machines working in New Zealand. Australia. Argentine. & Gt Britain.”

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 around 90 percent of dairy products traded on the international market. Relatively smaller quantities are exported by the Nordic countries, Eastern Europe, and Latin America.

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. Sales to Russia are also significant.

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 1996. World dairy product prices increased steadily throughout 1995 and these prices continued into early 1996. However, a build up in stocks in Europe coupled with an increase in supply from Australia and New Zealand saw prices ease, starting in the second quarter of 1996. There were two major increases in the European Union export subsidy for butter, which had the effect of reducing the world price by US$350-400 per tonne. This had a flow-on effect to skimmilk powder and to casein products. Prices drifted down during most of the year and by the end of 1996 most prices were around 25-30 percent below the prices prevailing at the end of 1995. The exception to this was cheese, where prices remained relatively stable during both the price increases and reductions.

Sales to the European Union, Japan and the United States were in line with the previous year's volumes and there was significant growth in butter exports to Russia and Iran. In the case of Russia this growth continued into 1997 and has seen the establishment of a sizeable consumer market for New Zealand butter and cheese.

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
1996233.7531.13360

18.6 Pigs, poultry and bees

Pigs

While pork production has been steadily increasing over recent years in terms of tonnage of pigmeat produced and the number of pigs killed, the effects of a difficult 1995-96 period for pork producers became evident during 1996.

For the year ending September 1996, 814, 798 pigs were slaughtered, an decrease of 33,686 (or 3.97 percent) from the previous year. The tonnage of domestic pigmeat produced has increased to 49,911, a decrease of 1.325 tonnes from the previous year. During the same period New Zealand imported 6,254 tonnes of pork products (an increase of 38 percent from the previous year) which, combined with domestic production resulted in consumption of 15.6 kilograms per head (on a product weight basis). This represents a slight decrease on the previous year when consumption was 15.7 kg per head. In comparison, consumption of pigmeat in Australia in 1995 was 18.6 kg per head, United States 31.6 kg, United Kingdom 23.5 kg and Taiwan 40.7 kg.

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 and there was no question on the number of breeding sows.

Change in survey population definition introduced in 1994.

Source: Statistics New Zealand and New Zealand Pork Industry Board

199050,990343,711394,701
1991*....407,306
199251,324359,824411,148
1993*....395,117
1994†58,065364,701422,766
199559,250371,755431,004

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 licenced 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.”

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 Carterton piggery generates electricity from the effluent produced each day, 1996.

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 almost 50 percent of the killing capacity in New Zealand has achieved the PQIP accreditation. Additionally, three pork processing plants have achieved the PQIP Standard for Food Safety. By the end of 1996 the first producers achieved the PQIP Standard for Pig Producers launched earlier in the year.

The board continues with its active marketing of the Trim Pork and Traditional Pork brands.

Poultry

The poultry meat industry is relatively new in New Zealand and is expanding rapidly. It is now the major intensive livestock industry in the country. In 1995 the poultry industry produced 93,650 tonnes of poultry meat, almost solely for the domestic market. Of this 95 percent was chicken meat produced from 63.7 million chickens; with turkey, duck, and roasting fowl most of the remainder. Currently the industry earns almost $500 million in retail sales and provides about 3,000 jobs.

Declining prices in real terms and lifestyle changes have seen poultry consumption continue to increase, up from 14 kg per capita 10 years ago to over 26 kg per capita in 1995. While total meat consumption has been relatively static in the last decade, the proportion of poultry meat consumed has increased from 15 to 26 percent, largely at the expense of sheep meat.

Strict quarantine regulations are imposed by MAF due to the unique and superior health status of the New Zealand poultry flock; no imports of fresh or frozen poultry meat or table eggs are allowed. New Zealand exports a small amount of poultry products and live poultry, mainly to the Pacific Islands.

Tegel Foods Ltd, Inghams Enterprises (NZ) Pty Ltd, and P H van den Brink Ltd control over 90 percent of poultry meat production, with the remainder split between approximately 15 smaller operators.

Table 18.28. CHICKEN PRODUCTION

YearBirdsDressed weightFreshFrozen
Source: Poultry Industry Association of NZ Inc
 numbertonnespercent
1986377090004602746.153.9
1987389250004777747.852.2
1988421460005283549.250.8
1989455830005873251.148.9
1990434690005537955.244.8
1991458910005903653.546.5
1992481870006279255.045.0
1993510060006957052.047.8
1994558440007681158.641.4
1995637000008897060.040.0

Eggs. In 1996 New Zealand's estimated 2.45 million laying hens produced close to 62 million dozen eggs. Over 85 percent of these are sold as table eggs within the domestic market, with the remainder used in the baking and catering industries. Total egg production has remained relatively static for the past decade, with slight drops in per capita consumption (now around 200 eggs per person annually) more than made up by New Zealand's increasing population.

Most eggs produced in New Zealand are from caged hens, with free range and barn egg production accounting for around 5 percent of the total. The last decade has seen a wider choice of egg types available, from standard white to brown; wholegrain, vegetarian, omega-enriched, barn and free range eggs.

New Zealand currently has 250 commercial egg producers, with the largest 20 producers accounting for over 50 percent of total production. Since deregulation in the late 1980s the number of commercial egg producers has declined rapidly and this trend is likely to continue with the present competitive market conditions.

A small number of table eggs is exported, mainly to the Pacific Islands. Fertile eggs and day old chicks are also exported to the Pacific and Papua New Guinea, to supply quality laying hens for egg production there.

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.

Beekeeping at Matamata in the 1930s.

Table 18.29. APIARIES AND HONEY PRODUCTION*

DistrictBeekeepersApiariesHivesHoney production
199419951996199419951996199419951996199419951996

*Year ended 30 June.

Source: MAF Quality Management

     number     tonnes 
Whangarei1225121311502972289826872984829101287771295354829
Hamilton58455153031002905294743749437424127019469621639
Tauranga598537511369635313414502825063147670152414261077
Palmerston North135813521330395740114005358393724538121144212001367
Blenheim474469463208320371935211902267921775493499607
Lincoln771735789531552705361581555886158983288316851287
Invermay555552533420841124030508125082150210223619211804
            New Zealand5565540953062533124764243792898752930802868061181980478610

The total saleable crop for 1996 was assessed by the Ministry of Agriculture Quality Management at 8,610 tonnes (30 kilograms per hive), slightly below the six year average of 8,735 tonnes (29.4 kilograms per hive). Exports of bulk, retail pack, comb and honeydew totalled 2,513 tonnes. 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. Export of live bees in 1995 came to 49,330 queen bees and 14,214 kg bulk bees.

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.

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. Information about New Zealand beekeeping can be found at: www.wave.co.nz.

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.

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 32 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 1995 this region provided 74 percent of the total production of 245,173 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 41 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 302,804 tonnes in 1995.

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 10 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 160,797 tonnes in 1995.

MAJOR CROPS
Area sown

Table 18.3. GRAIN AND PEAS 1995

CropArea sownYields
North IslandSouth IslandTotalNorth IslandSouth IslandTotal

Figures may not equate to the total due to rounding.

Source: Agriculture Production Survey, Statistics New Zealand, for the year ended 30 June 1995.

 hectarestonnes
Wheat7,78044,58252,36226,839218,335245,173
Oats1,0289,03510,0633,60735,12838,735
Barley10,04758,15968,20642,700260,105302,804
Peas1,15717,26718,4243,54752,90156,448
Maize15,84266316,505154,7286,069160,797

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 38,735 tonnes in 1995. The main areas for oats are Southern Canterbury and Southland.

Field peas. In 1995, 75 percent of the total yield of 56,448 tonnes of peas were grown in the Canterbury Regional Council Area in the South Island. Of the total area planted in grain crops, field peas make up 11 percent.

Potatoes. The production of potatoes is usually adequate to meet home market requirements. In 1995, the total area planted in potatoes was 10,585 hectares. The main growing areas are the Auckland, Manawatu-Wanganui, Waikato 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
Production

Demonstration of the Bensemann tomato sizer, “Sizes 200 cases per 8 hour day, polishes fruit with accurate sizing, saves labour and time, a packing shed necessity. Over 100 satisfied users!”

PIP FRUIT PLANTINGS
Areas planted in pipfruit

MAJOR CROPS
Yield per hectare

Fruit

Table 18.31 outlines the main types of fruitgrowing in New Zealand. Exports are dealt with in section 25.2.

Pipfruit. New Zealand apple and pear exports during the early 1990s were relatively stable at around 11 million cartons (200,000 tonnes). This increased to 17 million 18-kg cartons in 1995, and this year to almost 18 million. The volume growth has been primarily in three varieties—Braeburn, Royal Gala and Fuji, which now make up over 70 percent of New Zealand's apple exports.

The New Zealand Apple and Pear Marketing Board (NZAPMB) is responsible for marketing all export grade apples and European pears from New Zealand, or giving other organisations permission to do so. Fruit is marketed in 60 countries under the ENZA brand.

There are 1,560 export apple and pear growers in New Zealand. Hawke's Bay and Nelson/Marlborough production areas account for 80 percent of New Zealand's export production. Along with Braeburn, Royal Gala and Fuji, Red Delicious and Cox Orange Pippin are the most commonly planted apple tree for export production. The main export pear varieties are Buerre Bosc, Doyenne du Comice, Taylor's Gold and Packham's Triumph. The board also exports Asian pears (nashi), but does not have the exclusive right to their export.

A subsidiary of the NZAPMB processed more than 150,000 tonnes of apples into concentrate, much of which is exported.

The 1996 New Zealand marketing season was characterised by a life in prices in most markets but average grower returns per carton were only up about 5 percent over 1995 returns because of a substantially strengthened New Zealand dollar, a rise in shipping costs, and a move to a higher specification of packaging. Offshore fresh fruit sales totalled $631.6 million, an increase over 1995 offshore sales of $557 million.

Ploughing stubble in 1895.

This season New Zealand overcame its first real phytosanitary threat to the industry: fruit fly. The outbreak disrupted marketing, particularly in Asian countries, but was under control within days and there is not likely to be any long-term damage to markets.

Table 18.31. AREAS PLANTED IN FRUIT

FruitAt 30 JuneMain regions
199219931994*1995

*Change in survey population definition introduced in 1994.

Areas of grapes planted by activities classified to winemaking are not included here.

“..s” denotes an estimate that has been suppressed for reasons of very poor quality.

Source: Agriculture Production Survey, Statistics New Zealand

 hectares
Citrus
    Grapefruit/Goldfruit167156117117Bay of Plenty
    Lemons334283263..sNorthland
    Mandarins544533619654Northland
    Oranges826760789757Gisborne, Northland
    Tangelos406357295316Bay of Plenty
Pip fruit
    Apples12,28312,93715,25715,916Hawke's Bay
    Pears9951,0681,2791,266Hawke's Bay, Tasman
    Nashi (Asian Pears)590484418413Bay of Plenty, Auckland
Stone fruit
    Apricots814804844831Otago
    Nectarines889845667705Otago, Hawke's Bay
    Peaches958869714738Hawke's Bay
    Plums309303342336Hawke's Bay
    Cherries272273274353Otago, Marlborough
Berry fruit
    Blackcurrants778795720714Canterbury
    Blueberries328340357377Waikato
    Boysenberries250223231222Tasman
    Raspberries220224199..sCanterbury
    Strawberries261247331..sAuckland
Subtropicals
    Avocados1,3081,2601,3751,588Bay of Plenty, Northland
    Feijoas243226161..sAuckland
    Kiwifruit15,25114,09912,17411,873Bay of Plenty
    Tamarillos353325299249Northland, Bay of Plenty
    Passionfruit74685454Bay of Plenty
    Grapes (outdoor)†5,3285,6637,1607,382Marlborough, Hawke's Bay, Gisborne
    Persimmons415400412428Auckland

Table 18.32. APPLE AND PEAR SALES*

 19921993199419951996

*For year ended 30 September.

The NZAPMB no longer controls market sales or the processing sector—these areas were deregulated in 1994. Prior to 1994 the board's net return reflected the revenue from the entire pipfruit industry. The Board is still involved in the processing and local market industries, but the commercial operations figure is only the Board's revenue in this area.

Source: Apple and Pear Marketing Board

 $(000)
Fresh fruit export523,988450,798460,690556,662631,645
Commercial operations†127,171120,178141,643227,889242,236
            Net return651,159570,976602,333784,551873,881

Summerfruit. At 30 June 1996 the total areas planted in summer fruits was 3000 hectares, mainly peaches, nectarines, apricots, plums and cherries.

The main summerfruit production areas are Central Otago, Hawke's Bay, Marlborough, Canterbury, and Auckland.

The value of fresh and processed summerfruit produced for the local market was about $37 million, and for export $11.2 million.

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 1995, the New Zealand Kiwifruit Marketing Board, which is sole exporter except to the Australian market, sold 48.7 million trays of New Zealand kiwifruit in more than 50 countries.

Sales (by volume) are focused in three major markets: Europe (about 60 percent), Japan (17 percent), and North America (about 6 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.

NASHI AND EUROPEAN PEARS
Area planted

PIP FRUIT
Total exports

Table 18.33. KIWIFRUIT PRODUCTION

Year ended 31 MarchAreaExport traysSales trays
Source: New Zealand Kiwifruit Marketing Board
 hectaresmillion
198180576.26.2
19901574472.162.8
19911498059.854.7
19921459467.352.3
19931226555.349.2
19941016155.8R49.9
19951021058.848.7

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 18.34. HORTICULTURAL EXPORTS

Year ended 30 June1995199519961996
Source: Fruit Research Council of New Zealand. Fruit research in New Zealand 1996
 $(million)percent$(million)percent
Fresh fruit862.659.8990.763.4
Processed fruit148.710.3167.810.7
Fresh vegetables195.113.5167.910.7
Processed vegetables149.710.4150.29.6
Flowers and foliage49.53.447.83.1
Seeds and plants37.82.638.42.5
            Totals1,443.4100.01,562/8100.0

“A New Zealand vineyard.” Mr Beetham's vineyard near Masterton, as shown in the Christmas Number of the New Zealand Graphic, December 1897. “Mr Beetham started growing grapes 8 or 9 years ago, as a hobby, but is now producing wine in considerable quantity.”

Grape growing and wine production. The area planted in producing grape vines increased from 6,110 ha in 1995 to an estimated 6,700 ha in 1996. Marlborough (24,192 tonnes), Gisborne (22,330 tonnes) and Hawke's Bay (21,172 tonnes) are the major grape producing areas.

The industry had a number of setbacks between 1992 and 1994 which included variable weather, low investment in the wine industry and the phylloxera ‘attack’.

Since then there has been a recovery and the 1996 season was New Zealand's second largest wine vintage, producing 75,300 tonnes of grapes. Chardonnay (13,870 tonnes), Muller Thurgau (13,838 tonnes) and Sauvignon Blanc (12,354 tonnes) were the most popular grapes of the season.

Along with increased grape production, exports of wine also increased 29 percent from 8.8 million litres in 1995 to 11 million in 1996, reflecting a good 1995 growing season. The increase prompted the formation of New Zealand Wine Exporters, the export management committee of the Wine Institute.

The United Kingdom, which imported 7,440,511 litres of wine in the year to 30 June 1996, is New Zealand's major export market for wine. Australia, importing 1,162,530 litres, follows as the second-largest export market.

The number of wineries in New Zealand has increased from 131 in 1990 to 238 in 1996.

Table 18.35. NEW ZEALAND WINE INDUSTRY STATISTICS

 Unit19921993199419951996*

*Estimated figures.

Source: Wine Institute of New Zealand

Producing areahectares58005980611061106700
Average yieldtonnes per hectare9.37.18.812.211.2
Crushedtonnes5550042621540007450075300
Total productionmillion litres41.632.541.156.456.5
Domestic salesmillion litres43.637.428.530.932.5
Consumption per capitalitres (NZ Wine)12.811.08.18.79.0
Stock: sales ratiosales ratio1.28:11.21:11.62:12.19:12.21:1
Export Volumemillion litres7.18.67.97.811.0
Export ValueS(million)34.748.341.540.860.3

Table 18.36. NEW ZEALAND WINE PRODUCTION, SALES AND STOCKS

 19921993199419951996*

*Estimates only.

Source: Wine Institute of New Zealand

 million litres
Production—
White35.20026.04228.50141.656
Red4.5003.4015.1087.675
Sparkling0.4001.6135.7805.180
Fortified1.5001.3851.7201.880
            Total.41.60032.46240.50056.39256.500
Sales—
White37.55032.50025.80026.500
Red4.3004.1003.5004.000
Sparkling5.6505.5004.5005.600
Sparkling3.6003.5002.6002.600
            Total51.10045.60035.90038.70043.500
Losses—2.0001.3941.3321.5371.500
            Total65.50055.14664.77684.83996.339

Flax cutting—place and date unknown.

Contributors

  • 18.1-18.2 Ministry of Agriculture, Statistics New Zealand.

  • 18.3 New Zealand Meat Producers Board, Meat and Wool Boards' Economic Service.

  • 18.4 Wools of New Zealand.

  • 18.5 New Zealand Dairy Board.

  • 18.6 Statistics New Zealand, Ministry of Agriculture, New Zealand Pork Industry Board, Poultry Industry Association of New Zealand, 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; 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 New Zealand (annual).

Further prospects for horticulture, E G Bollard, 1996. HortResearch.

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 C.5).

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

Bullock team hauling kauri logs at Lagoon Bay, Takatu Peninsula, near Warkworth. This photograph appeared in the 1936 Weekly News Annual.

19.1 Forestry

Forests cover about 29 percent or 7.9 million hectares of New Zealand's land area. Of this, about 6.4 million hectares are in natural forest and 1.5 million hectares in planted production forests. Of the total planted production forest estate, 91 percent is radiata pine (Pinus radiata), and 4 percent is Douglas fir (Pseudotsuga menziesii). Hardwoods comprise about 3 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 theltow level of 15,000 hectares in 1991 to 71,000 hectares in 1995. In 1996, 78,000 hectares of new planting was expected to be undertaken. 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), macrocarpa (Cupressus macrocarpa) 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 70 percent increase between 1996 and 2010. The increase expected to become available under the assumption of 60,000 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

Indigenous forests. New Zealand's 6.4 million hecates of indigenous forest are located mainly in the mountainlands, particularly on the West Coast of the South Island. The major indigenous tree species in these complex forests are beech, kauri, rimu, taraire and tawa. The indigenous forests harbour about 330 species of native birds (some classed as endangered or threatened), two species of bat, reptiles, freshwater fish, amphibians and invertebrates, most notably land snails and giant weta. Their cultural values include recreational, scientific, historic and scenic values.

The indigenous forests are a key part of New Zealand's environment and help protect the natural values of the ecosystem. The main threats to these forests are introduced animals and plants and an increasing demand for access and recreational opportunities.

The Crown is the major indigenous forest owner (about 77 percent). Twenty-three percent of the estate is in private hands. Part IIIA of the Forests Act 1949, introduced in 1993, promotes the sustainable management of privately owned indigenous forests. This means the forests are managed in a way that maintains their ability to provide products and amenities in perpetuity. The act does this by:

  • requiring private owners to manage their forests sustainbly through sustainable management plans and permits

  • controlling the indigenous timber input to sawmills

  • prohibiting indigenous woodchip and log exports.

Having a large planted forest resource enables New Zealand to protect and sustainably manage its Crown- and privately-owned indigenous forest. Less than 2 percent of New Zealand's total forest production is harvested from indigenous forests.

Planted production forests. Trees planted in the second boom of afforestation (1970 through to the mid-1980s) are reaching large-scale utilisation. This provides real opportunities to maximise the economic return from tree growing.

From the 1893 Yearbook

From the 1893 Yearbook

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 4.9 million hectares (77 percent) are unavailable for timber production, being managed by the Department of Conservation for heritage, conservation, soil and water, and recreation values.

Harvesting timber from state-owned natural forests is confined to the 130,000 hectares set aside for production on the West Coast and managed by Timberlands West Coast Limited. During 1996 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) was transferred to the Waitutu Incorporation. 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.

TIMBER PRODUCTION
Indigenous and plantation

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. In August 1996 the Government sold its shares in the Forestry Corporation of New Zealand which owned licences to the cutting rites to 188,000 hectares of prime planted forest in the Bay of Plenty.

Prior to these sales ownership of plantation forests was shared almost evenly between the public and private sectors. Today approximately 93 percent of the plantation 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 Māori 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.

FOREST PLANTATIONS
Annual plantings by state and private sectors

Table 19.1. FORESTRY PLANTING AND PRODUCTION: SUMMARY 1921-1996

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..79322113079
19451..8031568120949
19502..11312178122136
19552214535301640917
1960321638221408164255
1965951739370499316104
19701581803521654445976
197521232086843244546834
1980182620001122456673853R
1985203623061144911770098
198931718761259005735207
199012121211233809757371
1991-1622831348760822340
1992-1523011343320780016
1993-5026341271297756013
1994-622817R1371234835613R
1995-982955R1360389876187
1996-7129041405307892969

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 remained in Crown ownership.

Where management and cutting rights were not sold, plantations were transferred to three new state-owned enterprises: Forestry Corporation of 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.

In August 1996 the Government sold its shares in the Forestry Corporation of New Zealand, which owned licences to 188,000 hectares of forest and the Waipa sawmill. These shares were purchased by a consortium made up of Fletcher Challenge, Brierly Investments and Citifor.

An agreement between the Crown, the Māori Council and the Federation of Māori Authorities provides security of tenure for purchasers of state plantations and protects the interests of Māori 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 Māori 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 at 31 March 1995 was 1.48 million hectares. Seventy percent of the planted forest estate is owned by 10 major organisations (with considerable off-shore investment), while the remaining 30 percent is owned by small companies, local government, partnerships, joint ventures and many thousands of farmers. The dominance of large companies has recently given way to individuals and groups of smaller investors. Small forest owners planted almost 50 percent of the new forest area in 1995. These included farmers, forest investment syndicates, Māori forestry interests and additional foreign participants. More than 14,000 forests are fewer than 100 hectares in size, and many of these are individually owned. About 55 percent of the resource is owned by three companies, Fletcher Challenge, Carter Holt Harvey Limited 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.

PAST AND FUTURE WOOD SUPPLY
Forecast based on 60,000 hectares of new planting per year

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 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 25,544 full-time equivalent persons engaged in forestry and first-stage processing activities in 1996. There were 9,953 in forestry and logging, 6,159 in sawmills, 1,617 in planing, preserving and seasoning timber, 62 in chipmills, 2,688 in plywood, veneer and board, 3,695 in pulp and paper manufacturing and 1,370 in logging haulage. This compares with 25,415 people engaged in the same activities in 1995.

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. Lincoln University offers a Bachelor of Commerce (Forestry) which combines studies in commerce and forestry.

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 coordinate 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.

Aerial view of about 100 acres of the Kaingaroa Forest in August 1965. Photographed for the NZ Forest Service by John Johns.

19.2 Timber and forest products

Timber

Roundwood. In 1995-96 logs from planted production forests supplied 16,800,000 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 440 sawmills, 5 plywood, and 8 veneer plants, 3 particleboard mills, 6 pulp and paper mills, and 5 fibreboard mills in 1995-96. 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 removalsTotal
Saw logsPulp logsExport logsOther*

*Other includes peeler logs, small logs and export chips.

Source: Ministry of Forestry

cubic metres (000)
199035741293709194716021138711744
199136143984318306415521333213693
199220544314184357817381393114136
199320650063475454117091473114937
1994R20451713781425317251493015131
1995R20553104060476221101624216437
199613052713757560821641680016930

Sawn timber. Radiata pine accounts for about 91 percent of the total cut of exotics, Douglas fir for 4 percent and other conifers for most of the remainder. Less than 2 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.

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 Whangarei, 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 1996 totalled 270,000 bone-dry units. (A bone-dry unit for radiata pine wood chips is equivalent to 2.63 cubic metres; and for beech, 2.25 cubic metres.)

Table 19.3. ROUGH-SAWN TIMBER PRODUCTION

Year ended 31 MarchSoftwoods fromHardwoods fromTotal
Natural forestsPlanted production forestsTotal softwoodsNatural forestsPlanted production forestsTotal hardwoods
Source: Ministry of Forestry
 cubic metres (000)
19886817351803172191822
19896118011862141151877
19907120332104161172121
19917221982270112132283
1992542237229191102301
1993612563262464102634
1994722730280286142816
1995702863293397162949
1996482843289176132904

Table 19.4. SAWN TIMBER PRODUCTION BY SPECIES

SpeciesYear ended 31 March
199119921993199419951996
Source: Ministry of Forestry
 cubic metres (000)
Natural forest—
Rimu and miro695155666644
Matai---112
Totara---1--
Kahikatea223321
Tawa542313
Beech744474
Other-23121
        Total, natural forest species836367797955
Planted production forest—
Radiata pine188819352281249725912631
Douglas fir224221160123128104
Eucalypts112455
Other8681124112146109
        Total, planted production forest species219922382567273628702849
        Total, all species228323012634281629492904

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.

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 the adjacent Kaingaroa Forest is utilised. This plant produces market pulp and newsprint.

The wood chip pile at Port Chalmers at its highest level ever, containing 40,000 tonnes of chips.

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 Forest, as well as sawmill residues.

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
198860178961015025501947707398079700805
198966393659506929629540323398589735207
199065823057557929488137802424688757371
199173324061552032128635178465876822340
199267394966937135635119949403716780016
19935883696829283761058795371113756013
199470163066960437085313794450966835613
199568445467593537486514924486398876187
199670257570273239143613084388449892969

Wood-based panels. Five factories manufacture plywood, and the total output for the year ended 31 March 1996 was 160,481 cubic metres (150,543 cubic metres in 1995). Total production of veneer in the industry in 1995-96 was 259,928 cubic metres (235,444 cubic metres in 1995). 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.

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.

Table 19.6. VENEER, PLYWOOD, PARTICLEBOARD AND FIBREBOARD PRODUCTION

Year ended 31 MarchVeneerPlywoodParticleboardFibreboard
Source: Ministry of Forestry
 cubic metres
19888971463069170968301116
19898285563655178209412825
19908937368479171621442603
19917417960726159893463232
19928281057864155428513877
199311772086253164877543679
199414051696953175786553670
1995235444150543175995690175
1996259928160481159082632019

Overseas trade in forest products

Exports. Forest products are important earners of overseas funds. For the year ended June 1996 exports of forest products were valued at about $2,586 million ($2,615 million in 1995). Japan took 30 percent (by value) of exports, mainly in logs, sawn timber, panel products and wood pulp. Australia took 29 percent, mainly sawn timber, panel products, pulp and paper, paperboard. The remaining 40 percent was taken by smaller customers, of which the largest was Korea (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 79 percent of the value of total forest products imports in the year ended June 1996. Imports of forest products for the year ended June 1996 were valued at $778 million ($715 million in 1995).

PULP&PAPER PRODUCTION
Annual production

PANEL PRODUCTION
Total annual production

FORESTRY EXPORTS
Destination by value, 1996

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$(000)
198876,51410,406258,607345,528
198979,68811,861297,367388,916
1990109,16414,682357,089480,935
199193,65610,068373,461477,185
199285,48916,949440,889543,327
199394,24518,470548,269660,984
1994114,80412,749485,560613,113
1995136,64114,070565,298716,009
1996P163,57117,655596,821778,047
Exports fob$(000)
1988395,760353,599236,014985,373
1989537,680398,711300,7531,237,143R
1990658,757R386,817340,297R1,385,871
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
19951,730,893480,862420,7822,632,537
1996P1,605,192456,788523,6972,585,677

Table 19.8. VOLUME OF TIMBER IMPORTS

Year ended 30 JuneHardwoodsSoftwoodsTotalLogs and poles
Source: Ministry of Forestry
 cubic metres (000)
19881818368
19891814327
19902025456
19911425404
19928R1927R3
19937R1825R3
19948R2332R3
199510R2334R2
19961324382

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
1989540867335141545
199044427329548R2170
1991256683306813293
19922703R84R47836R3793
19933870R56R40969R4734
19942852R3235921R4315
19951994422810654802
1996189831199495460

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
198811266130507909992148R
19891124599328172991661
19901163587399110699845
1991101341609494062110156
1992168506022111297117318
1993184423193845193848
19941703787143912143999
19951432465174981175046
19961529924161129161153
Exportstonnes
198858258615962176375235996
1989567836175752103263279015
1990560728201213112482313695
1991624954209158107651316809
1992656088271469116825388293
1993625382285850117294403144
1994628928251712117029368741
1995665274232418116516348934
1996654326245972121718367690

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, Māori, 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 was the development of a new Fisheries Bill, enacted in 1996. The third stage will reform legislation relating to marine farming. The purpose of the Fisheries Act 1996 was 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 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.

A Crop&Food Research scientist gently lifts a live salmon from the water without a splash. AQUI-S, a new natural product, has been developed to anaesthetise seafood before harvest, giving substantial improvements to quality as a result.

1996-97 TACCs

The review of Total Allowable Commercial Catches (TACs) and Total Allowable Commercial Catches (TACCs) for the 1996-97 fishing year resulted in the TACCs for hoki and several other fish stocks being increased, and reductions for gemfish and oreo stocks. The TACC for the snapper 1 (SNA 1) fish stock, which extends from North Cape to East Cape and includes the Hauraki Gulf, was maintained at 3,000 tonnes, following the significant reduction made last year. However, to date legal action by the fishing industry has prevented the implementation of this TACC for SNA 1.

Table 19.11. TACC CHANGES FOR 1996-97

SpeciesFish stockTACC
Was (95-96)Now (96-97)
Source: Ministry of Agriculture and Fisheries
 tonnes
BarracoutaBAR1997011000
BluenoseBNS17051000
GemfishSKI333551500
 SKI71663900
HokiHOK1240000250000
OreoOEO3A101066600
 OEO630006000
Red GurnardGUR3601900

Proposals to increase TACCs under adaptive management programmes were considered and approved for two fish stocks, the Auckland east and west bluenose stock (BNS 1) and the south-east South Island red gurnard stock (GUR 3). Adaptive management programmes provide for additional monitoring and analyses to improve the scientific assessment of the fish stock and estimates of sustainable yield. Twenty-one fish stocks are currently managed under these programmes.

Table 19.12. TOTAL ALLOWABLE COMMERCIAL CATCH, 1996-97*

Fish or shellfishQuantity

*As at 30 September. Excludes tuna species.

Source: Ministry of Fisheries

 tonnes
Alfonsino2721
Barracouta34233
Blue cod2665
Blue moki604
Blue warehou4512
Bluenose2466
Elephant fish715
Gemfish4862
Grey mullet1086
Gurnard4982
Hake13997
Hapuku/bass/groper2178
Hoki250010
Jack mackerel60547
John dory1107
Ling22111
Mixed flats6670
Orange roughy21330
Oreos26160
Oysters505
Packhorse rock lobster40
Paua1254
Red cod16066
Rig2098
Scallop909
School shark3105
Silver warehou9884
Snapper4955
Spiny rock lobster2954
Squid123332
Stargazer5353
Tarakihi5992
Trevally3932

Māori 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. The efforts of officials, in association with Māori, focused on achieving the incorporation of comprehensive customary fishing regulations into the Fisheries Bill enacted in 1996.

Table 19.13. CATCH BY DOMESTIC AND FOREIGN FISHERS, 1994 AND 1995*

 DomesticCharterForeignTotal
19941995199419951994199519941995

*Calendar year. Tonnes.

Source: New Zealand Fishing Industry Board

Finfishtonnes
Alfonsino261122925455  26652347
Barracouta7098124801045810478  1755622958
Blue cod1846211921  18482120
Blue mackerel4485681112841427  57698237
Blue moki54254900  542549
Blue warehou90610111059732  19651743
Bluenose2244249115020  23952511
Broadbill Swordfish8810463  94107
Cardinal fish433240145736  43894050
Elephant fish633715    633715
Flatfish4738424812  47394250
Frostfish61513729712472  35862609
Gemfish20571865482248  25382112
Ghost shark11531264703923  18562187
Grey mullet735782 3  735784
Gurnard305928643957  30992920
Hake4502436755811824  800914260
Hapuku&bass13261345149193  14751538
Hoki815938292111576397739  197356180660
Jack mackerel6176127362730821198  3348533934
John dory7708168422  854837
Kahawai500440180   50044018
Ling95441139482918702  1783620096
Orange roughy3138933911237912  3162634823
Oreo dory2172221552596569  2231822121
Other fish21361170946145775  675017485
Red cod95321516817012114  1123317282
Rig162418102114  16441824
School Shark256827205245  26202765
Silver warehou1083123774815821  85647057
Skate1272859753672  20251531
Snapper67526050201  67726052
Southern blue whiting70768161396312706  1467019522
Spiny dogfish2655229336012365  62574658
Stargazer26022272537720  31402992
Tarakihi45024700354237  48564938
Trevally34363591 0  34363591
White warehou27916614602295  17382461
        Total finfish234262274261211810190379--446073464640
Tuna
Albacore tuna52886272356  53236278
Other tuna1162088481  200289
Skipjack tuna31351308210  31371318
Southern bluefin462262311732637303437
        Total tuna85858014361270263789628321
Eels
Freshwater eels13161451    13161451
        Total eels13161451----13161451
Shellfish
Cockles/Clams993762    993762
Oysters (dredge)5861073    5861073
Oysters (farmed)22462872    22462872
Greenshell™ mussels5001062519    5001062519
Kina854724    854724
Other shellfish16041656    16041656
Packhorse rock lobster619    619
Paddle crab5537    5537
Paua9811178    9811178
Pipi238163    238163
Scallop84966208    84968208
Queen scallop246    246
Scampi10641029 1  10641029
Spiny rock lobster26782557    26782557
Squid347878687195591431  7543399299
Tuatua212142    212142
        Total shellfish73524888107195591432--145479180242
Grand total3176873725362841162820812637601829654654

A salmon fisher, Otago, between 1908 and 1914. This picture is one half of a glass plate stereograph (for viewing in a stereoscope to give a 3-dimensional effect).

Te Ohu Kai Moana: Treaty of Waitangi Fisheries Commission

Te Ohu Kai Moana (TOKM), the Treaty of Waitangi Fisheries Commission, was set up in 1992 to replace the Māori Fisheries Commission, established in 1989 to hold fisheries assets returned to Māori 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 Māori into a 50/50 joint venture with Brierley Investments Ltd to bid for Sealord Products Ltd—New Zealand's biggest fishing company. In return, Māori agreed all their current and future claims in respect of commercial fishing rights were fully satisfied and discharged.

The $175 million paid for a half share of Sealord gave Māori control of roughly a third by volume of the New Zealand fishing quota. In addition the Deed of Settlement promised Māori 20 percent of quota for new species added to the quota management system.

The Deed of Settlement also provided that in respect of all fishing rights and interests of Māori, their status changes so that they no longer give rise to rights in Māori or obligations on the Crown. The exception is commercial fishing rights and interests.

The Treaty of Waitangi (Fisheries Claims) Settlement Act made other changes in recognition of the bigger, more complex workload now facing commissioners. TOKM was given wider ranging powers than its predecessor, an increased membership of 13 commissioners and a requirement that it be clearly accountable to Māori as well as to the Crown.

TOKM's role. By law, TOKM is charged with helping Māori 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 Settlement Act and the Deed of Settlement.

  • Organising annual lease rounds (to make quota available to iwi through a leasing process) until an allocation scheme is in place. Providing leases to iwi at a rate calculated below true market rates—underlining the objective of encouraging Māori into the business and activity of fishing.

  • 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 Māori Fisheries Act. TOKM has a major role to play in the development of the Māori Fisheries 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 Māori. The new Act will also set out requirements for the appointment, composition and powers of any body succeeding TOKM.

  • Implementation of a training and development strategy, through a Charitable Trust set up for that purpose, aimed at ensuring Māori have the skills to match their fisheries assets.

TOKM achievements 1993-96

  • 50 new Māori fishing enterprises have been established;

  • Most Iwi fishing operations are currently operating good surpluses;

  • Significant employment for Iwi members has been generated by Iwi fishing enterprises;

  • The discount lease scheme has been extremely effective: $51.4 million is the estimated gross value of discounts on lease quota prices which has been distributed as benefits to Iwi in these three years;

  • $2,760,000 has gone to promoting training and development;

  • 20 percent of Iwi now operate, own or have interests in processing facilities.

  • TOKM has played a key role in the development of regulations protecting customary fisheries.

  • Legal action by TOKM to gain access to the Foveaux Strait oysters and to speed up the transfer of species outside the quota management system was successfully resolved in an out of court settlement. In February 1997, the Government and the Commission reached an out of court agreement that Māori should have 20 percent of the oyster quota from June 1997. This is the first new species to be transferred.

Assets held by TOKM on behalf of iwi

The assets held by TOKM on behalf of iwi/Māori can be divided into two broad categories: pre-settlement assets (PRESA) and post-settlement assets (POSA) acquired as result of the Deed of Settlement and the Sealord purchase. Assets include 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 Māori under the old Māori 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 Ltd acquired in 1993 for $350 million. Cash and a promise of 20 percent of all new quota to be entered into the Quota Management System (QMS).

  • The value of Māori fishing assets managed by TOKM has increased from around $250 million in 1992 to $700 million in 1996.

Māori oyster farmers in Parengarenga Harbour. They are part of a group in the Far North who are developing oyster farms in a joint development between the Tai Tokerau Business Development Board and commercial banks.

Allocation of assets to iwi

Work on the allocation of pre-settlement assets is seen as a necessary pre-requisite to the development of a post-settlement assets model. Significant progress on PRESA allocation was made in 1996. In April the Court of Appeal determined that urban Māori should be provided for in the allocation process and that the Commission should include Urban Māori Authorities amongst parties to be consulted during the development of an allocation model. In January 1997, the Privy Council overturned this ruling, finding that the definition of “iwi" and “urban Māori" should be determined by the High Court in New Zealand. All parties agreed to stay out of court while the Commission continued to work on a proposal to allocate assets.

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, allocations can begin. A scheme for the distribution of post-settlement assets is also to be developed and will be set out in the new Māori Fisheries Act, scheduled for introduction to Parliament following the development of the 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 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 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.

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 chartered vesselsDomestic vessels

*At 30 September

Source: Ministry of Fisheries

19901141882143
19911331602210
199244792802
1993251672707
199432632569
199532542575
199622552458

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.

Many fear the orange roughy fishery is endangered. This fish is one of a rare catch of 50 being kept in tanks at Greta Point, Wellington. NIWA scientists will be refining the acoustic measuring techniques, enabling them to estimate the total orange roughy stock more exactly and calculate what the sustainable catch should be.

In 1995 the historic top four species, orange roughy ($154.4 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 markets were $150.1 million and grew 6 percent. Exports to other Asian markets were $299.3 million and grew 14.4 percent.

Imports. In the year to December 1995, 12,924.6 tonnes with a value of $80.1 million (CIF) of fish and fish preparations were imported to New Zealand. Major imports remain prawns, orange roughy, 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 exported19911992199319941995
QuantityValueQuantityValueQuantityValueQuantityValueQuantityValue
Source: New Zealand Fishing Industry Board
 tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.
Finfish or wetfish218.0701.0227.5887.7251.7869.1208.2760.0212.9791.1
Rock lobster2.8101.82.8101.43.3120.82.9119.63.0113.8
Shellfish40.4158.462.6228.650.2198.478.5287.3106.4333.1
        Total261.2961.2292.91,217.7305.21,188.3289.61,166.9322.21,238.0

Table 19.16. PRINCIPAL FISH EXPORTS

Species19911992199319941995
QuantityValueQuantityValueQuantityValueQuantityValueQuantityValue
Source: New Zealand Fishing Industry Board
 tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.
Abalone1.137.91.151.20.854.20.743.31.353.2
Barracouta12.917.510.616.117.720.89.511.311.515.7
Gemfish1.411.11.614.91.313.91.213.11.313.8
Hake4.416.94.025.04.021.42.318.05.927.7
Hoki49.2156.357.2202.060.8173.144.3114.047.7130.8
Ling6.129.09.150.08.242.38.948.19.251.4
Mackerel, blue7.45.57.15.93.82.90.80.71.91.7
Mackerel, jack14.410.121.823.329.122.622.716.716.115.2
Mussels10.742.112.852.414.955.317.870.221.386.8
Orange roughy14.3138.612.1165.114.7201.112.4167.812.3151.1
Oreo dory6.224.55.520.66.923.26.524.95.220.5
Rock lobster2.8101.82.8101.13.3120.82.9119.43.0113.8
Salmon2.320.22.627.52.626.32.723.73.824.4
Scallops0.615.01.020.11.120.83.893.42.657.9
Scampi0.23.20.611.80.610.50.711.00.612.9
Snapper6.651.57.063.36.561.06.357.05.449.8
Southern blue whiting12.716.614.041.210.314.93.26.01.62.6
Squid25.247.344.780.230.952.955.0119.878.8158.6
Tuna8.916.64.214.75.410.67.929.48.535.4
Warehous5.714.36.122.66.317.36.118.85.9519.11

Table 19.17. VALUE OF FISHERIES EXPORTS TO PRINCIPAL MARKETS

Country19911992199319941995
ValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exports
Source: New Zealand Fishing Industry Board
 $(m) f.o.b.$(m) f.o.b.$(m) f.o.b.$(m) f.o.b.$(m) f.o.b.
Japan290.030.2409.233.6247.120.8328.728.2351.028.4
United States253.726.4291.123.9317.226.7260.422.3252.120.4
Australia102.710.7121.810.0126.910.7131.111.2136.711.0
        Total fisheries exports961.2 1,217.7 1,188.3 1,166.9 1,238.0 

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.

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.

Table 19.18. FISHING INDUSTRY: STATISTICAL SUMMARY
Ocean, coastal and fishing, fish farming and fishing consulting

New Zealand Standard Industrial Classification (NZSIC) = Division 13
Statistical item1993-94R1994-95PPercentage change
 $(000)$(000)percent
Inventories:
        Closing stocks25.126.76.4
        Opening stocks29.328.7-1.8
Income:
        Sales of goods and services630.8775.522.9
        Interest, dividends etc.CCC
        Government grants and subsidies0.530502.1
        Other income including extraordinariesCCC
        Total income638.7788.123.4
            Total income adjusted for inventories634.6786.123.9
Expenditure:
        Employment Related:
          Salaries and wages paid to employees63.971.411.7
          Redundancy and severance0.00.21,256.1
Salaries and wages to working proprietors (SW to WPs)19.114.2-25.9
          Levies paid to ACC5.45.99.7
          Employer contributions to superannuation schemesCCC
        Fringe Benefit Tax0.20.222.6
        Purchases and other operating expenses410.1540.231.7
        Interest, bad debts, royalties etc18.217.9-1.4
        Indirect taxes (excl FBT)1.31.946.8
        Depreciation41.340.7-1.4
        Other expenses including extraordinariesCCC
            Total expenditure571.7697.322.0
Net profit before tax, extraordinaries, SW to WPs88.299.713.0
Net profit before tax, SW to WPs82.0102.925.5
Fixed tangible assets:
Purchases of plant, machinery, vehicles&equipment115.593.2-19.3
        Purchases of land and land improvements2.53.643.0
        Purchases of buildings and other construction4.27.067.2
        Total purchases of fixed tangible assets122.2103.8-15.0
        Sales of fixed tangible assets20.117.6-12.5
Balance sheet:
Shareholders funds or owners equity371.5350.0-5.8
        Other liabilities363.0370.12.0
        Total capital and liabilities734.5720.2-2.0
        Fixed tangible assets375.3374.8-0.1
        Other assets359.2345.4-3.9
        Total assets734.5720.2-2.0
Ratios:percent 
Total Income per FTE$134,780$170,477
Net Profit per FTE$18,618$21,571
        Profit margin on sales14.012.9
        Return on equity23.728.5
        Return on total assets12.013.8
        Liabilities structure50.648.6

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 New Zealand Fishing Industry Board.

Statistics New Zealand produces broad economic data on the industry, through the Annual Enterprise Survey, which covers 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.

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, 1996.

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, 1997.

National and Regional Wood Supply Forecasts. Ministry of Forestry, 1996.

New Zealand Forestry Statistics 1995. Ministry of Forestry, 1996.

Regional Studies. Ministry of Forestry, 1994. (10 regions).

Report of the Ministry of Forestry. (Parl paper C.16).

Statistical Releases. Ministry of Forestry (series).

Fishing

Achieving sustainable fisheries. Ministry of Fisheries, 1996.

An introduction to the Fisheries Act. Ministry of Fisheries, 1996.

Changing course—Towards fisheries 2010. Ministry of Fisheries, 1996.

Economy Wide Census 1987. Department of Statistics.

New Zealand Fisheries Technical Report. NIWA.

New Zealand Journal of Marine and Freshwater Research. Royal Society of New Zealand (quarterly).

New Zealand Seafood Industry Economic Review. NZFIB.

Report of the Ministry of Fisheries (Parl paper C.20).

Report of the New Zealand Fishing Industry Board (Parl paper C.6).

Report of the Treaty of Waitangi Fisheries Commission Te Ohu Kai Moana (Parl paper C.19).

Te Ohu Kai Moana Hui-a-Tau (Annual Meeting) Report.

Te Ohu Kai Moana Corporate Profile and Strategic Plan.

Chapter 20. Energy and Minerals

New Zealand's first wind farm at Big Hill, near Martinborough in the Wairarapa.

20.1 Energy

Energy contributes about 3 percent to New Zealand's gross domestic product (GDP), and directly employs about 9,000 people, or slightly over 0.5 percent of the workforce. The efficiency with which New Zealand produces and uses energy impacts directly on its international competitiveness, economic growth and the quality of the environment.

New Zealand's total primary energy supply (the amount of energy available for use in New Zealand for energy transformation and end-use) for the year ended December 1995 was 665 PJ, an increase of 2 percent over the previous year. Oil provides 32 percent, gas 27 percent, wood 5 percent, coal 7 percent, hydro 15 percent, geothermal 14 percent and other renewables slightly less than 1 percent.

New Zealand is self-sufficient in all energy forms apart from oil. In 1995 New Zealand was 86 percent self-sufficient in its primary energy needs and 36 percent self-sufficient in oil.

New Zealand's energy intensity (measured as energy use per dollar of GDP) is amongst the highest in the OECD, but the steady increase from 1982 to about 1992 has reversed in the last few years. Total energy consumption was 435 petajoules (PJ) in 1995, which is equivalent to about 3,400 litres of petrol per person. New Zealand's consumer energy (energy used by final consumers) is dominated by oil, comprising 197 PJ per year (46 percent), with electricity 110 PJ (26 percent), coal 41 PJ (9 percent), gas 37 PJ (9 percent), with renewables such as geothermal, wastes and wood making up the remainder.

Energy policy

There have been general moves in the economy since the mid-1980s to remove statutory barriers to competition, and to reduce the government's direct involvement in business activities. These have included the removal of direct government involvement in the operational aspects of energy supply and demand through the corporatisation of previously government-owned and operated energy trading departments. Energy markets have been substantially deregulated. All sectors—including gas, oil, coal and electricity—were affected.

In the late 1980s major milestones included the corporatisation of New Zealand's electricity generation and transmission and the deregulation of the petroleum industry, including the removal of price controls from diesel and petrol. Legislation passed in 1992 deregulated and reformed the electricity and gas industries, including the removal of the traditional electricity and gas franchise areas, the removal of price control on gas, and the corporatisation of the electric power boards and municipal electricity departments. More recently, New Zealand's major generator, the Electricity Corporation of New Zealand Limited or ECNZ, has been split into two State-owned enterprises and a competitive wholesale electricity market established.

The Ministry of Energy divested the generation and transmission assets of its Electricity Division to ECNZ when it was established in 1987. The Ministry of Energy itself was disestablished in 1989, its remaining policy and regulatory activities being largely transferred to the new Energy and Resources Division of the Ministry of Commerce.

The government's energy policy objective has been to ensure the continuing availability of energy services, at the lowest cost to the economy as a whole, consistent with sustainable development. This has led to competitive markets operating within an effective and stable regulatory framework set by the government.

There are a number of areas where government interventions have still been considered necessary: natural monopolies, environmental impacts, and barriers to energy efficiency uptake.

Natural monopolies. The energy sector is characterised by a number of activities that have strong natural monopoly characteristics: notable among these are electricity and gas transmission and distribution lines. There is the potential for the owners of such facilities to over-charge for their use, and to restrict access to competitors, to the detriment of consumers and the economy as a whole.

From the 1893 Yearbook

The government has introduced so called ‘light handed’ regulatory regimes which rely on Commerce Act provisions to prohibit anti-competitive actions, supported by regulations which require extensive disclosure of information on the operation of electricity and gas lines in particular. There are also legislative powers available to introduce price regulation if necessary.

Environmental impacts. The Resource Management Act is designed to ensure that the local impacts of energy production and use are avoided, remedied or mitigated. This ensures that local environmental costs are recognised in planning processes.

In addition, however, there are global impacts, for example the risk of climate change from carbon dioxide emissions resulting from the use of fossil fuels (oil, gas and coal). There has been recent debate about how best to deal with carbon dioxide emissions with considerable attention focused on ‘polluter pay’ approaches, whereby the perceived environmental costs could be incorporated in energy prices through introducing carbon taxes or emission permits. Current policy is for a low level carbon tax to be introduced in 1997 if emissions containment is not ‘on track’ to meet a year 2000 target.

Energy research and development. The government has established a process for setting long-term priorities for the allocation of monies from the Public Good Science Fund (PGSF). Priorities were first set in 1992 for the five-year period to 1997/98. This provided for an increase in energy sector research and development from $4.68 million in 1992/93 to $6.67 million in 1997/98 (an increase of 43 percent, compared to an overall PGSF increase of 14 percent), and a shift in focus from fossil fuels and traditional renewables (hydro and geothermal) to energy efficiency and non-traditional renewables.

These priorities were reviewed in 1995 and energy research and development is to increase by 61 percent to $7.8 million, compared to an aggregate PGSF increase of 28 percent. Again increased emphasis is to be given to work in the energy efficiency and non-traditional renewables areas. A further review will occur in 1998.

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).

†From 1998 this table will use the same category, “renewables (including wood)”, that is used by the Ministry of Commerce Energy Data File.

Source: Ministry of Commerce

 Petajoule
197462.817.7177.58.014.554.153.6388.345.7
197559.118.5191.38.316.059.453.2405.847.1
197660.519.1156.922.037.555.250.7401.939.0
197757.721.4146.831.563.652.547.8421.434.8
197853.421.7142.326.859.755.848.7408.434.8
197947.421.1147.017.939.865.743.8382.638.4
198050.822.6148.215.736.869.047.3390.438.0
198151.423.9139.221.045.170.144.7395.435.2
198250.923.3123.732.379.965.245.4420.729.4
198356.021.9124.231.586.470.469.1459.427.0
198452.722.2116.140.8109.572.681.2495.123.4
198552.124.0114.231.4140.170.276.9508.922.4
198657.722.977.558.6168.378.780.4543.914.2
198751.422.990.159.4162.378.069.8534.016.9
198849.424.579.861.7177.881.761.4536.414.9
198951.325.793.657.0182.584.372.7567.116.5
199052.425.8112.446.9181.782.988.2590.219.0
199146.827.3120.346.6197.781.093.5613.319.6
199249.326.1126.646.3209.875.394.3627.720.2
199354.527.5126.444.0204.083.699.6639.619.8
199443.731.1157.037.2190.592.194.1644.724.3
199548.231.3178.531.2180.097.591.4658.127.1

PRIMARY ENERGY SUPPLY

Table 20.2. TRENDS IN CONSUMER ENERGY USE

Calendar yearSolid*OilGasElectricityGeothermalTotal

*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
1994R711863710713414
1995701963611013425

Future energy scenarios

New Zealand's energy sector will continue to undergo significant change in the next 25 years as the demand for energy grows, the Maui gas field declines, and new technologies become economic.

Based on the Ministry of Commerce's supply and demand scenarios projections are that between 1995 and 2000, consumer energy will grow by 1.8 percent per year for an assumed 3 percent GDP growth. In the longer term, for 3 percent per year GDP growth, consumer energy grows by an average of 1.5 percent per year between 1995 and 2020. This represents a significant decline in the ratio of energy growth to GDP growth from around 1.2-to-1 in the past 25 years, to around 0.5-to-1 in the next 25 years as the New Zealand economy becomes less energy intensive.

Residential sector consumer energy is projected to grow at around 1.7 percent per year between 1995 and 2020—the industrial and commercial sector by 0.8 percent, and the transport sector by around 2.1 percent per year. Over the same period electricity consumption is projected to grow each year by around 1.8 percent, the consumer energy of coal by 0.8 percent, oil by 2.2 percent, and gas to decline by an average of around 0.2 percent. The decline in gas consumption will be affected by the draw-down of the Maui field in the early years of the next century, and the resultant closure of the petrochemicals plants.

In the baseline scenario, around 2600 MW of new electricity generating capacity is projected to become economic by 2020, as demand for electricity exceeds the economic capacity of the current system. Around 400 MW each of gas combined cycle, geothermal and coal is projected to become economic, along with around 600 MW of hydro, 450 MW of cogeneration, 200 MW of wind and 150 MW of distillate plant.

The composition of electricity generation is projected to change significantly as these new increments are installed, and when Huntly switches to coal as gas prices rise above coal prices between 2000 and 2005. Hydro's share of electricity generation is expected to decline from 74 percent in 1995 to around 55 percent in 2020, and gas's share from around 14 percent now to around 7 percent in 2020. Electricity generated from coal experiences the most rapid fuel share growth, from around 2 percent in 1995 to around 17 percent in 2020.

CO2 emissions are projected to increase by about 1.8 percent per year, with transport and electricity generation contributing most of the growth.

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 34 percent for coal (at March year 1996). Hydro is taken as being 100 percent efficient and geothermal as 10 percent.

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 20.3. ENERGY SUPPLY AND DEMAND, 1995*

 Source of energy
Solid fuelGasHydro GeothermalElectricityOilTotal

*Year ended December.

Source: Ministry of Commerce

 Petajoules
Supply
Indigenous production128.0180.397.591.4-76.0573.3
        + Imports-----216.8216.8
        - Exports42.8----45.588.3
        - Stock change-0.2----1.5-1.3
        - International transport-----39.139.1
          Total primary energy supply85.3180.197.591.4-209.7664.0
Transformation
Electricity generation-16.5-50.3-97.5-71.9126.2--110.0
Liquid fuels production -28.4---11.5-16.9
Losses and own use-2.0-4.7--6.0-12.9-6.2-31.8
          Total, transformation-18.5-83.5-97.5-77.9113.45.3-158.7
Non-energy use--57.9----14.9-72.8
          Consumer energy (calculated)66.838.7-13.5113.4200.1432.5
Demand
Agriculture1.0---4.716.822.4
Industrial53.825.1-10.946.610.3146.7
Commercial7.25.3--20.66.039.1
Domestic7.64.5-2.638.00.953.5
Transport0.11.4--0.2161.8163.5
          Consumer energy (observed)69.736.3-13.5110.0195.7425.2
Discrepancies-2.82.4--3.44.47.4

20.2 Electricity

Fuel share. Currently, depending on demand, rainfall and lake storage conditions, over 80 percent of New Zealand's electricity demand is met by renewable resources, with hydro contributing most of this (73 percent in 1995, a fairly wet year) and geothermal 7 percent. Over two-thirds of hydro electricity is generated in the South Island, and all geothermal electricity is generated in the North Island. Most of the balance of electricity demand is met by generation from natural gas, 15 percent in 1995, with a small amount from coal and a small but increasing contribution from non-traditional renewables, wind and land-fill gas.

Plant types. In 1995 (prior to its break-up) the Electricity Corporation of New Zealand Limited (ECNZ) generated 92 percent of electricity used in New Zealand from its 38 power stations, ranging in generating capacity from 3 megawatts (MW) to New Zealand's largest, the 1000 MW, four-turbine Huntly power station, which can run on gas or coal. Electric power companies’ relatively small generating schemes ranging in capacity from 0.3 MW to 78 MW generated a further 4 percent while the remaining 4 percent of total generation came from co-generators.

Conveyance. New Zealand is fully reticulated through a national high voltage transmission network and local low voltage distribution networks largely operated by the electric power companies. Power transmission between the North and South Island is via a high voltage direct-current (HVDC) link from the Benmore power station in the South Island to Haywards substation in the North Island. Part of this link is a submarine cable running under Cook Strait. The link allows surplus power generated in the South Island to be transmitted to the North Island where demand is greatest, but also allows transmission from north to south.

The largest electricity-using sector is industry (aluminium smelter, iron and steel works, and several pulp and paper mills and large dairy factories), followed by the household sector and commercial applications. Annual per capita end use is 34 GJ (9400 kWh).

Electricity sector developments

Transmission. In April 1994 ECNZ's transmission business was separated from ECNZ into a new State-owned enterprise, Trans Power (New Zealand) Limited, with the purpose of ensuring the independence of the transmission grid.

Distribution and retailing. The Energy Companies Act 1992 required corporatisation of the then electric power boards and municipal electricity departments of local authorities. Ownership structures are now a mixture of local authority, trust, and private ownership.

Many amalgamations and mergers have occurred particularly between neighbouring companies.

The wholesale market. The Electricity Market Company (EMCO) was established in 1993 for the purpose of developing and providing the various services required by the proposed wholesale electricity market. EMCO administers the rules which govern the New Zealand Electricity Market (NZEM). A fully functioning wholesale electricity market came into effect on 1 October 1996. The rules provide for an ex ante financial commitment market, providing the opportunity for purchasers and generators to establish a price and quantity a day ahead of actual delivery.

Table 20.4. ELECTRICITY CORPORATION OF NEW ZEALAND PROFIT STATEMENT (Abridged)

ItemYear ended 31 March
199419951996
Source: Electricity Corporation of New Zealand
 $(000)$(000)$(000)
Gross income1,700,1411,5191,383
Operating expenses excluding abnormal costs796,438850786
Net finance costs332,03088110
Profit before taxation571,673581487
Taxation162,385195162
Profit after taxation409,288386326
Less: Dividends438,4458561,416

Table 20.5. POWER STATIONS: CAPACITY AND GENERATION

StationInstalled capacity at 31 March 1994Energy generation year ended 31 March
Number of unitsMW*19921993199419951996

*‘In-situ maximum’ rating.

Year ended 30 June.

Sold in April 1995.

§7 months to 31 January 1996.

Source: ECNZ

ECNZ:kWh(million)
Hydro
Arapuni817590591573211301189
Aratiatia384353351262439441
Atiamuri479304303239386388
Karapiro396565569460645631
Mangahao5111099837119 
Maraetai1036088288268911141136
Matahina272273266188314 
Ohakuri4112424423332522544
Rangipo2120553579400620550
Tokaanu4210792781492963931
Waikaremoana—
        Kaitawa234     
        Piripaua237488579393492 
        Tuai358     
Waipapa351255259219327336
Whakamaru4100531535428648661
Arnold2327262413 
Aviemore4220979729100710441079
Benmore654024451774246526462729
Clyde4432 127822832488 
Cobb632195176156223 
Coleridge935222229235267 
Highbank12586846498 
Manapouri760043713887447647004525
Ohau ‘A’42481290875120112181165
Ohau ‘B’421105473410261050980
Ohau ‘C’4212106274210331056983
Roxburgh83201557141417711898 
Tekapo ‘A’125158102144136146
Tekapo ‘B’2160953700858551837
Waitaki7105536392548580574
          Subtotal, hydro124476821369196822216225687 
Thermal
Huntly4100055255577566539544068
Te Awamutu-52---165 
Marsden2114-581-18-18-15
Meremere6--3--- 
New Plymouth558010331530848207 
Ohaaki5104891856856723 
Otahuhu6135-1865-19-18 
Stratford4198372497406214 
Wairakei91531174125712991288 
Whirinaki421612411 
          Subtotal, thermal4525008970988790386351 
Wellington Wind Turbine0.225-----1
Stations sold to Contact      4,256§
Hydro stations to be sold      1536
Generation purchased      2817
          Total16972683093929569312003203932653
Contact Energy:
Electricity generation (GWhr) 8 months to 30 September 1996
Roxburgh1,005.5New Plymouth900.7
Clyde 1,329.5Stratford17.4
Total hydro2,335.0 Otahuhu0.2
Ohaaki382.2 Whirinaki0.2
Wairakei854.2 Total thermal918.5
Total geothermal1,182.4 Total Contact4,436.9

The Lake Coleridge Power Station, 1938.

Table 20.6. ELECTRICITY GENERATION BY FUEL TYPE

Year ended 31 MarchHydroGeothermalFossil fuelsRenewables*WindTotal

*Wood, steam, biogass.

Source: Ministry of Commerce

 Giga Watt hours
19882089111835424  27498
19892190012375052  28189
19902082318056374  29002
19912184520685643  29556
19922136920656905  30339
19931968221137774  29569
19942216221556883  31200
19952560520955958757134416

Table 20.7. ELECTRICITY MARKETS

Year ended 31 March Domestic*Industrial CommercialFarmingPublic 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
1987942410472472256713331253491488253
1988942310732491656613830258051509209
1989951011065525068613750266981528550
1990982411187546165511666273091547573
19911026411200549668711061278181581879
199210474125845550......286081599037
199310124122655397......277861607894
199410256133925580......292281621262
1995R10416138345675......299251626491

20.3 Oil

Oil which includes condensate, crude oil and oil products accounted for 210 PJ (32 percent) of primary energy and 197 PJ (46 percent) of consumer energy in 1995. The consumer energy of oil includes synthetic petrol produced from natural gas.

Reserves. New Zealand's estimated remaining crude oil and condensate reserves are dominated by the Maui field, which as at December 1995 contains 70 percent of New Zealand's reserves, with Kapuni, Kupe and McKee dominating the balance.

Production. New Zealand's production of crude oil and condensate was 69 PJ in 1996, all from on-and off-shore fields in the Taranaki region. Nearly half of total production comes from the off-shore Maui field. Two-thirds, or 46 PJ, of oil production is in the form of condensate produced from the Kapuni and Maui fields. The remaining one-third of oil production, 23 PJ, is as crude oil, produced at the McKee, Kaimiro, Waihapa and Ngatoro fields, and more recently from Maui's F Sands production field. The average daily production of crude oil and condensate is 0.188 PJ (about 30,000 barrels or 4,800,000 litres). About one-third of local production is used for refinery feedstock, and about two-thirds is exported.

Refinery. New Zealand's only oil refinery is located at Marsden Point, near Whangarei. The main feedstocks are imported crude oil (about two-thirds) and local crude oil and condensate (about one-third). The refinery produces petrol, diesel, aviation kerosene, fuel oils and bitumen.

Imports. New Zealand imports crude oil from Saudi Arabia, the United Arab Emirates and Australia. To meet demand the oil wholesalers also import refined petroleum. Imports of oil increased 16 percent from 1990 to 1995, in part due to the upturn in the economy.

Exports. New Zealand exports about two-thirds of local crude oil and condensate production. In addition, 0.6 percent of refined products is exported from New Zealand, and 19 percent is used by international transport.

Synthetic petrol. A varying amount of New Zealand's petrol demand is supplied by synthetic petrol produced from Maui gas at the Motunui synthetic petrol plant. The synthetic petrol is blended with other petrols at the refinery, exported, or sold directly on the New Zealand market.

Self-sufficiency. New Zealand's primary self-sufficiency in oil depends on both indigenous oil production and demand. Over the period 1974 to 1986 it increased dramatically from under 5 percent to over 50 percent. In 1995 with demand having increased faster than production, it was 36 percent.

Distribution. A refinery-owned pipeline transports about a third of the refinery's production to Wiri in South Auckland to supply the Auckland area. The rest of New Zealand is mostly supplied by coastal tankers supplying port depots, and then by road tankers.

The new Maui F Sands production, storage and offloading unit is expected to produce initially around 30,000 barrels of oil per day.

Petrol bowsers in the forecourt of a petrol station, early 1950s. The brands being sold were Shell, BP, Texaco, Plume, Atlantic, Europa and Big Tree.

End use. New Zealand's consumer energy is dominated by oil, comprising 197 PJ (46 percent) of the total consumer energy of 427 PJ. Domestic transport dominates the consumer energy use of petroleum products, with 164 PJ (over 90 percent) of oil consumption being used for transport, with 72 percent of this for road transport. Annual per capita end use of petroleum products is 53 GJ (about nine barrels or 1,430 litres).

Unleaded petrol. Unleaded regular grade petrol was introduced into New Zealand in 1987. Since then there has been a steady increase in its use with unleaded regular grade comprising about 70 percent of total petrol demand in 1996.

Table 20.8. 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
Maui100.3718749
Waihapa/Ngaere2.105000
Kapuni10.203500
McKee13.456000
Kaimiro (deep)0.15109
Kaimiro (shallow)0.81488
Kupe16.30-
Tariki2.00-
Ahuroa0.70-
Ngatoro0.34650
        Total146.4234496

Table 20.9. RECOVERABLE RESOURCES AND PRODUCTION OF NATURAL GAS*

FieldEstimated reservesApproximate average daily production

*At 1 January 1995.

Source: Ministry of Commerce

 billion feet3million feet3/day
Maui1579377.0
Waihapa/Ngaere36.5
Kapuni50080.0
McKee6218.0
Kaimiro (deep)43.4
Kaimiro (shallow)10.4
Kupe256-
Tariki53-
Ahuroa24-
Ngatoro-0.7
        Total2482486.0

Table 20.1. 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
199568.35169.37237.7244.12

20.4 Gas

Reserves. New Zealand's major gas resource is the Maui offshore field which has about two-thirds of New Zealand's estimated economically recoverable gas reserves of around 2500 PJ. Kapuni and the, as yet undeveloped, Kupe field have about 12 percent each. These reserves are estimated to last until about 2014, with the Maui field possibly running out around 2006.

Production. Natural gas production is 180 PJ per year, 27 percent of total primary energy supply. Gas is produced in the Taranaki region. In 1995 natural gas production was dominated by the Maui and Kapuni fields (95 percent of total production). The McKee, Waihapa and Ngatoro fields produce the remaining 5 percent. The Kaimiro field has not produced gas since April 1995.

Distribution. It occures only in the North Island and comprises 2,600 kms of high pressure gas transmission pipelines and low pressure distribution systems in most cities.

Petrochemicals. About half of New Zealand's gas is used for petrochemicals, in the production of chemical methanol and synthetic petrol at the Motunui synthetic petrol plant and Waitara methanol plant. Crude methanol is produced from natural gas, primarily from the Maui and Kapuni fields, and then either distilled into high ("AA”) grade methanol or made into synthetic petrol: the product mix depends on relative prices. Some Maui and Kapuni gas is used also in the production of ammonia/ urea.

Other end use. Twenty-six percent of New Zealand's gas is used for electricity generation, and 22 percent is reticulated to the commercial and residential sectors. Of the 37 PJ of consumer energy reticulated in 1995, 25 PJ was used in industry, 5 PJ in the commercial sector, 5 PJ in the residential sector and 1 PJ in transport (as compressed natural gas, or CNG). Annual per capita end use of gas is 12 GJ (300 cubic metres).

Compressed Natural Gas (CNG) is supplied through a network of North Island service stations for the automotive market. The gas industry also produces liquefied petroleum gas (LPG), which is transported by sea and rail throughout New Zealand.

Table 20.11. GAS PRODUCTION

YearNet natural gas production*Manufactured gas productionTotal

*Gross production minus 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
1995175.57-175.57

Table 20.12. 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

 Gross Petajoules
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
1995132.0443.290.24175.57

The Gas display at the Napier Mardi Gras, Christmas, 1913.

20.5 Coal

Resources. Coal occurs widely in New Zealand, with total in-ground coal resources estimated at about 15 billion tonnes. Of this, 8.6 billion tonnes is judged to be economically recoverable, made up of about 80 percent relatively low grade lignite, 15 percent middle grade sub-bituminous coal, and the remaining 5 percent bituminous coal. About 90 percent of the economically recoverable coal by weight, or 75 percent by energy content, is located in the South Island.

Of the economically recoverable resources, about one-third is in existing mines, while the remainder could be mined without significant investigatory work.

Production. Coal production in 1995 was 92 PJ, or 3.5 million tonnes, mainly of the sub-bituminous grade. Of the 53 mines in operation at the end of 1995, 42 were opencast and 11 underground, responsible for 81 percent and 19 percent of total coal production respectively. Only five mines produced over 200,000 tonnes of coal and 26 operations had an output of under 10,000 tonnes, with the average coal output per mine during 1995 being 65,000 tonnes. Total coal production in 1995 was 15 percent higher than in 1994 although consumption (including exports) was down 5.3 percent.

Table 20.13. 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
Otago331.75758.7763.721154.24
Southland0.765733.31522.406256.47
        South Island total365.226712.41678.647756.27
        New Zealand total570.697179.09894.058643.83

Table 20.14. COAL FLOW SUMMARY

ProductionExportAdjustmentsUse (observed)
Source: Ministry of Commerce
 Electricity generation (includes cogeneration)4.8
Iron and steel15.8
Bituminous46.8 Own use-0.2Other industry15.2
Sub-bituminous35.0  Commercial7.5
Lignite3.8Difference between calculated production available for domestic use, and observed use+2.4Transport, agricultural, residential2.3
 
Total production85.6- 40.4 + 0.4= Total use45.6

COALFIELDS

Exports. The export markets for premium grade New Zealand coals at December 1995 were Japan (44 percent), Chile (21 percent), India (16 percent), Australia (7 percent) and China (6 percent).

End use. The main end users of coal in New Zealand are basic metals manufacturing (principally steel) at 33 percent, other industry also at 33 percent (primarily the cement, lime and plaster, meat, dairy products, wool and timber industries), the commercial sector and electricity generation (including cogeneration) at 15 percent each, and the residential and agriculture sectors at about 2 percent each. Annual per capita end use is about 11 GJ (520 kg).

Coal sector developments. The government's interests in coal operations, the Coal Corporation of New Zealand Limited, or Coalcorp, now trades as Solid Energy. Solid Energy produces about two-thirds of New Zealand's coal from 11 mines, and has major export contracts to Japan, India and China. It also supplies about 60 percent of the local market. The remainder is supplied by private operators of a further 42 mines.

20.6 Renewables

Renewables are a major part of New Zealand's total primary energy supply, contributing 230 PJ or 35 percent. This is dominated by hydro and geothermal at 100 PJ and 90 PJ per year respectively. Wood provided the next largest renewable contribution of 32 PJ, with “wastes" 4 PJ, and under 2†PJ from biogas and wind.

Solar-powered boat constructed at the CIT, Heretaunga, in the water for the first time at Seaview on Wellington Harbour, 1996. The covers have just come off the solar panels. A trans-Tasman race of boats powered solely by the sun is due to take place in November 1997, from Porirua Harbour to Townsville beach, a distance of 2,000 nautical miles. Competitors are expected from Australia, Britain, Canada, Israel, Russia, the United States and Zimbabwe as well as New Zealand.

The Central Institute of Technology's principal lecturer in electronics, Peter Thomas, believes that if solar-powered, self-guided, crewless vessels could be used for oceanographic and atmospheric research, the savings will be of the order of tens of thousands of dollars a day.

The vessel Mr Thomas has been working with is the size and weight of a two-person canoe—4 metres long, with a hull made of kevlar, its deck is covered in solar panels and it is equipped with a satellite global positioning system and an electronic compass.

The race is being co-ordinated by the Central Institute of Technology which will oversee the start. The James Cook University in Queensland will manage the finish, expected to be about the end of November.

Table 20.15. 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/Ohaaki265-3075-11600190060210
Kawerau250-3106-12600220060230
Mokai280-32412-1617003200180340
Ngatamariki270-2806-12700170080180
Orakeikorako230-28010-12700170070180
Reporoa2401210001000110110
Rotokawa300-33015-1825003700270400
Rotorua25010-1510001500100160
Taupo*
        Tauhara265-27918-2222003100230330
        Wairakei250-2712521002800260340
Te Kopia24165005005050
Tokaanu/Waihi25088008008080
Waimangu/Rotomahana26022-3025003400260360
Waiotapu220-29516-18900290090310
Tongariro28015-2017002800180300
Ngawha225-32025-5016009800701040
          Total  211004300021504620

Electricity generation. The major use of renewable energy resources is for electricity generation. 87 percent of New Zealand's electricity is so generated, predominantly from hydro (79 percent), and geothermal (6 percent).

Direct use. Apart from electricity, 42 PJ per year or 10 percent of consumer energy is provided by the direct use of renewables. This is dominated by wood, with 28 PJ. Direct geothermal use for heating contributed 14 PJ, and wastes and biogas provided 0.5 PJ. Annual per capita direct end use of geothermal energy is 4 GJ per person, with per capita end use of biofuels, predominantly wood, estimated at 8 GJ.

In New Zealand, major hydro schemes and geothermal are the “traditional" renewable sources. Apart from the direct use of wood, other “non-traditional" renewable sources, such as biomass, micro hydro, wind and solar, at present make a very small contribution to overall supply, although they have the potential to make a greater contribution in the future.

Landfill gas is already used to produce electricity in small scale plants in Auckland and the Hutt Valley.

Wind. Wind generation from better sites at 6 to 8 cents per kWh is the non-traditional renewable resource nearest to being commercially competitive. New Zealand's first commercial wind farm in the southern Wairarapa began generating electricity in June 1996, and several energy companies in the lower half of the North Island are considering wind farms as an alternative source of electricity generation.

Solar energy for water heating is currently priced at 13 to 16 cents per kWh, and photovoltaic electricity generation at 30 to 60 cents per kWh.

20.7 Energy intensity and efficiency

Energy intensity and efficiency trends. Although New Zealand's population rose by only 17 percent between 1975 and 1995, energy consumption increased by about 65 percent in the same period. In part, this was caused by the development and expansion of a number of energy intensive industries such as aluminium smelting and the Taranaki-based petrochemicals industries. New Zealand's energy intensity (measured as energy use per dollar of GDP) is amongst the highest in the OECD, but the steady increase from 1982 to about 1992 has reversed in the last few years.

In the residential sector the five years 1991-1996 saw total energy consumed by households increase by less than 1 percent, while the population rose by over 6 percent. There was an 8 percent decline in energy use per household, and an 11 percent decline in energy use per square metre of floor area. Over the same period, the energy used by the industrial and commercial sectors increased only 4 percent and 3 percent respectively, despite a 17 percent GDP increase.

In transport, on the other hand, the five years 1991-1996 saw a 14 percent increase in overall passenger transport energy intensity. There was a 15 percent increase in energy used by the transport sector, and a 21 percent increase in energy used for passenger transport, with total passenger travel distance increased by 6 percent. Private car petrol consumption increased 4 percent per annum over the period, while diesel use grew at 21 percent per annum.

Energy efficiency. During the development of New Zealand's climate change policy in 1993/94, further emphasis was placed on improving energy efficiency as a key response. Funding for the Energy Efficiency and Conservation Authority (EECA) was increased and a number of new programmes (such as the Energy-Wise Companies campaign) were developed. Additionally EECA administers the Energy Saver Fund, a five-year fund of $18 million started in 1995 as part of the wholesale electricity market reforms, which helps finance energy efficiency projects in the residential sector.

Greenhouse gas emissions

The energy sector contributes over 90 percent of New Zealand's national gross human-made carbon dioxide (CO2) emissions, with industrial processes the remainder: gross CO2 emissions from energy sources and industrial processes were 27 million tonnes in 1995.

New Zealand's emissions of 7 tonnes of CO2 per capita compare favourably with those of most other developed countries.

Other greenhouse gases emitted from energy sources include nitrous oxide (N2O) and methane (CH4). Energy's share of emissions of these gases is small compared with CO2: the agriculture sector is the main contributor to both gases’ emissions.

20.8 Minerals

New Zealand's mineral resources are diverse. Gold, ironsand, clays, and rock aggregates are the main commodities mined.

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.

Gabriel's Gully goldmining. William Rattray with cradle used in the 1860s, photographed at the Gabriel's Gully Jubilee, 1911.

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 openpit methods. The majority of current gold mining operations in New Zealand are for alluvial gold. The majority of total production comes from three openpit 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.

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.

ENERGY AND MINERAL PRODUCTION: 1860-1995
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..............
186516100..............
187015200..............
18759900..............
188084004546.917........
1885620086211.420........
18905300116712.127........
18958200127211.427........
190010500173822.330........
190514600245736.138........
191013400338658.848......18
191511800331178.656......37
19206000304396.350......117
192532002148105.950......310
193037002582117.346......710
193548002148108.146....916..
194053003817............
194536004228146.644......2274
195021004067156.944290711943030
19557003767146.5374117230194366
19609004147160.433548387616361
19653003545163.828775319650.29712
19703003014180.2241019027092712926
1975802871836.71214197399216218352
198020021971069.0..18692280910621607
19859002564133.04‡..20107634331426764
199046292588179.72-23021797330994
1993111703101199.86-23243936532609
1994101183033186.04-25579......
1995121323446175.57-27090......

METAL MINING AND PROSPECTING
NON-METALLIC MINERALS

Gillespie's Beach dredge in 1938.

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.

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.

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.

Dolomite. Dolomite rock is produced near Collingwood. It is used in agriculture and home gardening and shipped to Whangarei for use in glassmaking.

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.

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.

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.

Sulphur. Sulphur is mined from Rotokawa near Taupo. 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. 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.

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.

  • 20.2-20.8 Ministry of Commerce; Statistics New Zealand.

Special articles

Ministry of Commerce.

Further information

Energy

Annual Statistics in Relation to the Electric Industry in New Zealand. Ministry of Commerce.

Electricity Corporation of New Zealand Limited. Annual Report.

Energy Data File, Ministry of Commerce.

Energy efficiency: A guide to current and emerging technologies. Centre for Advanced Engineering, University of Canterbury, 1996.

Energy Greenhouse Gas Emissions, 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.

New and emerging renewable energy opportunities in New Zealand. EECA and Centre for Advanced Engineering, University of Canterbury, 1996.

Renewable Energy Opportunities For New Zealand. Ministry of Commerce, 1994.

Key Statistics. Statistics New Zealand (monthly).

Report of the Ministry of Commerce (Parl paper G40).

Sustainable energy: Options for New Zealand, Dai J Redshaw and Keith R Dawber. University of Otago Press, 1996.

Wave Power Generation. Ministry of Energy, 1988.

Wind Energy Resource Survey of New Zealand. New Zealand Energy Research and Development Committee, 1987.

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 Mining. New Zealand Crown Minierals, Ministry of Commerce.

Petroleum Resources of New Zealand, Resource Information Report II. Ministry of Commerce.

Report of the Ministry of Commerce (Parl paper G.40).

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

Assembly line work Auckland.

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 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 substainally, 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 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 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.

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.

Table 21.1. MANUFACTURING SECTOR PERFORMANCE 1994-96

March yearSales, nominalAdditions to fixed assetsGrowth in additions to fixed assetsContribution to GDP at 1991-92 pricesReal growth of GDP contribution
 $(million)$(million)percent$(million)percent
199445,482.4R1,902.0R25.114,5147.1
199549,700.8R2,366.2R24.415,5357.0
199651,341.42,667.712.715,8422.0

Internal Marketing Division dehydration plant, Pukekohe, processing cabbages during World War II.

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 was 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 around $400 million per year, with exports totalling around $150 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 reduced 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.

Cheese-making, Kaipara Dairy Company, Helensville.

Textiles (a category covering a wide range of products) are subject to government's General Tariff Programme. This means that there have been 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.

The removal of import licensing and a progressive reduction in tariffs has seen apparel imports from all sources increase significantly in the period 1989 to 1996, from $129 million cif to $480 million cif. This has led to considerable rationalisation within the industry, with an accompanying reduction in employment levels. While employment increased slightly between February 1993 and 1994, it fell from 28,787 to 26,642 between February 1995 and 1996. Taken together the textile and apparel industries remain significant employers.

During the 1989 to 1996 period export success has been achieved in the apparel sector, with exports of apparel increasing from $49 million fob in 1989 to $171 million fob in the June 1996 year. 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 reduced 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 1996 increased by 1 percent over the previous calendar year to 9.98 million square metres. Production of wool-rich carpets (80 percent or more wool content) was 8.48 million square metres or 85 percent of total production.

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 reduced from 45 percent to 30 percent. Children's footwear tariff rates reduced 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 7.7 million pairs in 1986-87 to 2.7 million pairs in 1995-96.

The reduction in assistance has also led to a significant increase in the volume of footwear imports. In 1996 imports supplied more than 13.6 million pairs of the New Zealand footwear market, compared with 12.1 million pairs in 1992 and 10.6 million pairs in 1989. Exports have increased from 1.8 million pairs in 1992 to 2.0 million pairs in 1996 (June years). 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 1996. 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.

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.

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.

Table 21.2. MANUFACTURING ACTIVITY UNITS* AND FTE PERSONS ENGAGED, FEBRUARY 1996

NZSICType of manufacturing Full-time equivalent persons engaged size group
0 to 56 to 910 to 4950 to 99100 or moreTotal

* 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 & meat processingActivities13038802767342
Full-time Equivalents3172621,9801,80021,32725,684
31122MilkActivities28393144
Full-time Equivalents3622232241190719
31123Ice creamActivities104101227
Full-time Equivalents202720761261575
31125Dairy productsActivities1852182577
Full-time Equivalents42375425025,7096,830
3113-3122Other foodsActivities95824435557551,669
Full-time Equivalents2,4381,7266,9283,85311,91626,860
313BeveragesActivities158234796243
Full-time Equivalents3611671,0506679553,199
314TobaccoActivities-22-26
Full-time Equivalents-1432-440486
321TextilesActivities5731131631919887
Full-time Equivalents1,2347883,8041,4463,07310,344
322-324Apparel & footwearActivities1,02813628649261,525
Full-time Equivalents2,1499535,9113,1674,11916,298
33Wood processing & wood productActivities2,64240652444283,644
Full-time Equivalents5,5082,80810,1583,0655,38226,921
3411Pulp, paper & paperboardActivities101611028
Full-time Equivalents266157743,4333,695
3412Paper & paperboard containersActivities7422101255
Full-time Equivalents22295016631,8763,091
3419Other paper productsActivities229206562
Full-time Equivalents52634245139251,976
342Printing & publishingActivities93218333032331,510
Full-time Equivalents2,0311,2716,4372,1016,04317,883
3511Basic industrial chemicalsActivities286202157
Full-time Equivalents7039512144107871
3512Fertilisers & pesticidesActivities4014165277
Full-time Equivalents991022854032881,176
3513PlasticsActivities541734105120
Full-time Equivalents1161276077127992,360
352Other chemical productsActivities2364889229404
Full-time Equivalents5263391,9181,5261,5175,824
353Petroleum refineriesActivities----22
Full-time Equivalents----556556
354Petroleum & coal productsActivities25392-39
Full-time Equivalents4624213108-389
35513Tyres & tubesActivities76191336
Full-time Equivalents2141340676131,081
3559Rubber products neeActivities379211169
Full-time Equivalents775949250217895
356Plastic products neeActivities212531322815440
Full-time Equivalents4663752,8181,8572,8508,364
36Non-metallic productsActivities6571111361011925
Full-time Equivalents1,4247712,6216331,7747,221
37Basic metal industriesActivities1332957109238
Full-time Equivalents2952071,1726314,4526,756
381Fabricated metal products (except machinery)Activities1,80540450464152,792
Full-time Equivalents3,6382,8239,5234,4862,54423,013
382Machinery (except electrical)Activities2,54640441231123,405
Full-time Equivalents4,9822,7987,7412,0001,81619,336
383Electrical machinery & appliancesActivities433791251924680
Full-time Equivalents9245602,5341,4946,39311,904
384Transport equipmentActivities79812517329211,146
Full-time Equivalents1,5568803,4972,0136,19614,141
385Professional & photographic equipmentActivities85820-1114
Full-time Equivalents15260378-122712
390Other manufacturing industriesActivities88088942-1,064
Full-time Equivalents1,7266251,873130-4,353
3TotalmanufacturingActivities14,4922,5753,73650242221,727
Full-time equivalents30,34717,99774,87934,39995,887253,507

MANUFACTURINGEmployment by industry type

New Zealand Glass manufacturing engineering shop, Penrose, Auckland in 1969.

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.

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.

Table 21.3. MANUFACTURING ACTIVITY UNITS* AND FTE PERSONS ENGAGED BY INDUSTRIAL CLASSIFICATION, 1995-96

NZSICType of manufacturingFTE persons engaged, February
1995 activity units1996 activity units1995 FTE persons engaged1996 FTE persons engaged

* 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 & meat processing34434223,90025,684
31122Milk4044738719
31123Ice cream2527533575
31125Dairy products78776,5036,830
3113-3122Other foods1,7341,66927,09326,860
313Beverages2292433,1233,199
314Tobacco76494486
321Textiles89688710,98810,344
322-324Apparel & footwear1,5531,52517,79916,298
33Wood processing & wood product3,6183,64426,98826,921
3411Pulp, paper & paperboard28283,6293,695
3412Paper & paperboard containers65553,0963,091
3419Other paper products69621,9221,976
342Printing & publishing1,5611,51017,98117,883
3511Basic industrial chemicals5857891871
3512Fertilisers & pesticides83771,3201,176
3513Plastics1111202,6192,360
352Other chemical products4014046,0095,824
353Petroleum refineries22574556
354Petroleum & coal products4339427389
35513Tyres & tubes40361,0801,081
3559Rubber products nee8069894895
356Plastic products nee4274408,2038,364
36Non-metallic mineral products9329256,9367,221
37Basic metal industries2352386,8696,756
381Fabricated metal products2,7332,79222,31323,013
382Machinery3,2103,40518,50519,336
383Electrical machinery68868012,19211,904
384Transport equipment1,1211,14613,96414,141
385Professional equipment101114636712
390Other manufacturing industries1,0731,0644,6014,353
        3Total manufacturing21,58521,727252,820253,513

Making Mallowpuffs in the 1950s.

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 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 10 groups from the Australian and New Zealand Standard Industrial Classification (ANZSIC) within the manufacturing sector. The manufacturing sector is defined under the ANZSIC as division C which encompasses the industrial groups, shown in table 21.5. For a fuller description of these groups, refer to the department's ANZSIC 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.

Table 21.4 has the data presented in the form of annual series for the March years of 1992 to 1996 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 1996 with total manufacturing divided into the ANZSIC groups 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 also undertakes census surveys 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 and 21.5 is different from what was published in the 1996 Yearbook as the series is now published according to the Australian and New Zealand Standard Industrial Classification. Previously the Yearbook data was published according to the New Zealand Standard Industrial Classification (NZSIC).

Table 21.4. QUARTERLY ECONOMIC SURVEY OF MANUFACTURING: ALL-INDUSTRY TOTALS

Year ended 31 MarchSales and other incomeStocks*Additions to fixed assets*Salaries and wagesPurchases and other operating expensesHours worked by paid employees
MaterialsFinished goods

* At end of year.

Source: Statistics New Zealand

 $(million)(000)
199237,5172,4023,0281,3226,33427,849414,772
199341,1022,3933,3201,5076,62331,296428,724
199445,0812,4713,5381,9007,10534,640456,384
199549,0542,6473,8142,3597,57437,004477,607
199650,6142,6643,8922,6517,99538,102493,498

Table 21.5. QUARTERLY ECONOMIC SURVEY OF MANUFACTURING, 1996*

Industry groups (ANZSIC)Sales and other incomeStocks*Additions to fixed assetsSalaries and wagesPurchases and other operating expensesHours worked by paid employees
MaterialsFinished goods

* Year ended 31 March

Source: Statistics New Zealand

 $(million)(000)
Meat and dairy products11,0102128034721,2059,31968,372
Other food, beverage & tobacco6,9183866532948425,39855,778
Textile, clothing, footwear & leather2,936240360896492,08749,621
Wood & paper products5,8323194533559144,17153,674
Printing, publishing & recorded media2,536108981926571,55737,925
Petroleum, coal, chemical & associated products5,9503754753248184,49045,737
Non-metallic minerals products1,39847886122094512,754
Metal products5,1083733445519573,73557,124
Machinery & equipment manufacturing7,3645065362581,4595,34592,300
Other manufacturing1,5639883552751,05620,212
All manufacturing50,6152,6643,8922,6517,99538,102493,498

Contributors

21 Ministry of Commerce; Statistics New Zealand.

Further information

A season of excellence? New Zealand Institute of Economic Research, 1996.

Census of Manufacturing Statistics. Statistics New Zealand.

Islands of excellence? New Zealand Institute of Economic Research, 1993.

Key Statistics. Statistics New Zealand (monthly).

Report of the Ministry of Commerce (Parl paper G.46).

Research and Development in New Zealand: A Public Policy Framework. New Zealand Institute of Economic Research, 1987.

Productivity and Prosperity. Ministry of Commerce, 1989.

Productivity and Quality in New Zealand Firms: Effects of Deregulation. New Zealand Institute of Economic Research, 1989.

Productivity Trends and Cycles in New Zealand: A Sectoral and Cyclical Analysis 1961-1987. New Zealand Institute of Economic Research, 1989.

Chapter 22. Housing and construction

Doug and Gay Grant relax on the sundeck of their $75,000 motor home, 1996.

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 occupied private and non-private dwellings in New Zealand recorded in the 1996 Census was 1,283,994. Of the 1,276,332 occupied private dwellings, 864,060 were owned with or without a mortgage. This was an increase of 1.4 percent on the 1991 Census. It represents 68 percent of all occupied private dwellings in New Zealand. The number of rental dwellings has also grown but by a much greater extent at 17.5 percent to 314,148 dwellings. A total of 95 percent of all private dwellings had access to a telephone. At the time of publication, detailed information on households from the 1996 Census was not yet available.

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.

In 1991, while families accounted for 74 percent of all households, 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 Māori were owner-occupiers, and 49 percent of Māori 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 an increase in the number of house sales. The number of freehold open market house sales, as notified to Valuation New Zealand, for the year to December 1996 totalled 77,872 units. This is an 8.5 percent increase on the 71,778 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 December 1996 was $170,379 compared to $154,758 in 1995. This represents a 10.1 percent increase on the average price recorded in 1995. The sale prices are exclusive of chattels and other considerations.

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 half-years ended in June are shown in table 22.2.

Table 22.1. RESIDENTIAL PRICES

Average sale priceDecember year
19921993199419951996
Source: Valuation New Zealand
 $
Sections43,66847,92355,04959,92068,787
Houses120,734125,609141,506154,758170,379
Owner-occupier flats108,626111,806126,312138,716154,077

Table 22.2 shows that prices have been increasing since 1992, and in the year to June 1996 they increased throughout most localities. Prices rose 13 percent over the year to June 1996. The Auckland area recorded the largest increase at 23 percent. Hamilton City and Rotorua District also recorded an increase of 10 percent or more. By contrast, Palmerston North City and Invercargill District had the smallest increase at 0.2 percent.

REAL COST OF HOUSINGHousing group of CPI compared with CPI-All groups

Table 22.2. HOUSE PRICE INDEX*

Locality19921993199419951996

*Base: Half-year ended December 1989 = 1000.

Half-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 District10431067115812251328
Auckland Area948969109413161613
Hamilton City10931118122313291475
Tauranga District10611103121613611438
Rotorua District10111037113912701400
Gisborne District12061309149916201720
Napier City11521253142014931517
Hastings District12501371152615331578
New Plymouth District12281314136914411481
Wanganui District11691168118011861191
Palmerston North City11301145117912131216
Masterton District10591082111811261098
Wellington Area§94294796310181073
Nelson City11581274135814161457
Christchurch City11881220128114041507
Timaru District12091273134213901425
Dunedin City12441340138414471496
Invercargill District12421286136113721375
        Total New Zealand10481081117113101478

22.2 Housing loans

Activity in the residential sector has been strong in 1995 and 1996, primarily as a result of increased borrowing by households for residential property. In January 1997 mortgage lending by M3 institutions (mainly registered banks, finance companies and building societies) was around 45 percent of total lending to the non-bank private sector; six years earlier the share of total lending was less than 30 percent. This growth is attributable to a number of factors including:

  • the positive impact of economic growth on households' real disposable income which increased by approximately 3 percent in 1995 and 4 percent in 1996;

  • the contribution of positive net immigration to population growth and household formation;

  • competitive product innovation and greater flexibility in qualifying criteria for housing loans; and

  • changes to housing preferences and increased demand for inner-city housing in particular, which has contributed to a building boom.

MORTGAGESRegistered and discharged

Day One of construction at the first home built with volunteer labour by Habitat for Humanity New Zealand, at Pukekohe.

Table 22.3 gives quarterly data on the number and value of housing loans drawn down from M3 institutions during 1995 and 1996. The level of new borrowing made for residential purposes has increased from $13.3 billion in 1995 to over $14 billion in 1996. As this series not only includes first and subsequent mortgages but refinancing and other mortgage variations, it will tend to overstate the value of housing loans made for actual new sales of residential property. During 1996 competitive marketing of fixed-rate lending and ‘no start-up fee’ deals offered by financial institutions provided an incentive for many existing borrowers to switch mortgage products and refinance at lower fixed or capped rates.

Table 22.3. HOUSING LOAN DRAWDOWNS

QuarterLife insurance officesM3 institutionsTotal
Source: Reserve Bank of New Zealand Monthly M3 Statistical Return & Life Office Asset Quarterly Survey
 no$(m)no$(m)no$(m)
1995—
March28623.542206R2,583.4424922,606.9
June30626.246303R2,975.8466093,002.0
September37433.058825R3,630.3591993,663.3
December340R26.5R608304,083.361170R4,109.8R
1996—
March32225.6553143,901.2556363,926.8
June37535.9475213,535.3478963,571.2
September43344.4427032,815.5431362,859.9
December67979.8500963,639.8507753,719.6

Mortgage interest rates. The accompanying table and graph set out the annual average variable mortgage interest rate available to new borrowers for housing purposes since 1955. Annual average rates peaked at 19.85 percent in 1987 but fell to under half this rate by 1993 to average less than 9 percent. This respite was short-lived, however, as monthly average variable mortgage rates returned to double figures in December 1994 and remained within the range of 10.05 and 11.50 percent during 1995 and 1996. These higher rates reflect a firmer monetary policy stance and increased yields on 90-day bills which are a key source of funding for banks' floating mortgage rates.

It is important to note that the annual average variable mortgage interest rate currently overstates the actual average mortgage interest rate paid by new borrowers for residential property as it is based on floating rates only. Increased competition in the mortgage market has delivered significant innovations to the range of mortgage products offered, including the increased availability of lower fixed and capped mortgage rate lending as well as attractive start-up deals. A one-off survey of major retail banks by the Reserve Bank of New Zealand indicated that there has been a significant increase in the proportion of new mortgages registered at lower fixed or capped rate lending during 1995 and 1996. Since late 1994, when the share of mortgages registered with floating interest rates was estimated at over 90 percent, floating-rate mortgages may now account for less than 60 percent of total mortgages issued by M3 institutions.

Rentals. The dwelling rentals component of the Consumer Price Index rose by 7.5 percent in the year to June 1996. The government has been putting into place its market rent policy which has seen Housing New Zealand rentals increase substantially to be comparable with rentals in the private sector. As part of the final stage in this transition Housing New Zealand 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 affected the annual movement to June 1995.

HOUSING COSTSAverage building cost per square metre

HOME MORTGAGE RATESNew registered mortgages

Early farmhouse.

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 boarders. 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 1996 there were 279,276 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 1996 there were 7,553 current tenure protection allowances.

Housing Corporation of New Zealand—Te Kaporeihana Whare. 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 continues to provide housing loans for those low income households who have difficulty obtaining loans in the private sector. The corporation has 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 1995-96 the Housing Corporation 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.

The accompanying table (at left) shows the amount of mortgages the Housing Corporation has sold to other institutions in the 1995-96 financial year.

Table 22.4 shows the amount of loan activity undertaken by the Housing Corporation in the last three 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
199419951996199419951996
Source: Housing Corporation
 $(million)
Home loans1334139230042.025.811.4
Housing New Zealand sales—HCNZ-130240-8.915.9
Suspensory-343610-2.85.3
Papakainga2346160.91.81.1
Community lending143-1.90.5-
Rural lending--53--2.9
        Total13711914121944.739.836.6

Changing style of the suburban home.

Community Housing Limited. Community Housing Limited became a wholly-owned subsidiary of Housing New Zealand on 1 July 1995. It is now a limited liability company wholly owned by the Housing Corporation of New Zealand.

Community Housing Limited's mission is to provide, throughout New Zealand, suitable and well-maintained accommodation and excellent service which meets the accommodation needs of community groups and individuals with disabilities.

The company rents approximately 1,000 properties to community groups who support people with physical, intellectual and psychiatric disabilities, women's refuges, emergency accommodation and support for children. The company's Disability Modification Project facilitates the modification of houses to suit the needs of individuals with disabilities. Community Housing provides a 24-hour 0800 number so that it is always accessible to its customers.

Housing New Zealand Limited. Housing New Zealand is responsible for the management of a state rental housing stock of approximately 67,000 houses. It was established to own and manage the Crown's rental housing portfolio formerly owned and managed by Housing Corporation of New Zealand. Set up under the Housing Restructuring Act 1992, it is a registered company wholly owned by the Crown. The company has two shareholding ministers, the Minister of Housing and the Minister of Finance, who appoint the board of directors and also perform other functions as set out in the act.

Housing New Zealand's principal objective is to provide rental housing to those on low incomes in a manner which meets the Crown's social objectives, enhances shareholder value, is customer-service focused, and attracts private sector investment. Housing New Zealand is the single largest owner of rental houses in New Zealand, accounting for about 24 percent of all national rental accommodation.

It has four regional offices and 52 Neighbourhood Units located in the areas of greatest need, closest to concentrations of Housing New Zealand properties. These are Housing New Zealand's ‘shop front outlets’, each responsible for between 500 to 3,500 rental units, easy to reach and staffed by multi-skilled people with a commitment to service and understanding the needs of their local community.

Housing New Zealand 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 accommodation detrimental to their health or well-being, or in temporary accommodation. Of all new tenancies in the year to 30 June 1996, 40 percent were to single people with children and 17 percent to couples with children.

Table 22.5. HOUSING NEW ZEALAND ACTIVITY

Year ended 30 June1993199419951996

* Income of $350 a week or less (of new tenancies who stated their income).

Source: Housing New Zealand

Stock units70234701046897767031
Number of allocations (new tenancies)13335155671433316751
Community houses provided652588713924
Percentage of allocation to low income households9493*91*84*

Ministry of Housing. Established on 1 July 1992, the ministry's main functions are the provision of independent advice on housing policy to government, and efficient and effective tenancy bond and dispute resolution services. The ministry, through its Tenancy Service Division, administers the Residential Tenancies Act 1986.

Tenancy Services has 21 dispute resolution offices throughout the country providing education, advice, mediation and referrals to the Tenancy Tribunal; and a Bond Centre located in Porirua for the processing of all tenancy bonds. While Tenancy Services runs the mediation service, the Tenancy Tribunal is administered by the Department for Courts.

GOVERNMENT HOUSINGRatio of state/private housing starts

Interior of the new Museum of New Zealand, under construction, 1996.

In the year to 30 June 1996, there were 41,691 applications made to the Tenancy Tribunal. Of these 30,092 were referred to mediation, of which 29,884 were resolved at mediation. There were 9,878 applications that were not resolved or only partially resolved in mediation and which were referred to the Tenancy Tribunal. Of the total number of applications referred to mediation, 6,519 were withdrawn. The number of applications referred to the tribunal for a hearing, either directly or after an attempted mediation totalled 23,197. A total of 18,090 applications were resolved at the tribunal while the others were either withdrawn, adjourned or referred back to mediation.

22.3 Building and construction industry

Building and construction is an important part of the New Zealand economy. For the year ended 31 March 1996 there was $9.3 billion of gross fixed capital investment on building and other construction. For the previous year the equivalent figure was $8.4 billion (revised from $8.6 billion). The number of people employed in the industry at the end of March 1996 was 111,400, 6.7 percent of those employed. 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 law

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 building 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 also writes 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 building 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 to existing buildings. Any such work must also comply with district plans of territorial authorities prepared under the Resource Management Act 1991. For completed buildings the requirement for regular maintenance of essential systems, such as fire alarms, lifts and air conditioning, is covered by the Building Act's 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.

The building certifier is a new building professional created by the Building Act. By the end of the 1996 calendar year seven building certifiers had been approved, situated from Auckland to Dunedin. Some are limited to approving work covered by the Approved Documents for housing, others are specialised in disciplines such as automatic sprinkler systems and lifts. The presence of building certifiers provides competition for territorial authorities and is expected to bring efficiencies in the authorities' administration of the Building Act.

The worldwide move to performance-based building codes as a means of overcoming trade barriers sees New Zealand as a leader among countries successfully implementing such reforms. The New Zealand Building Code was used extensively as the model for the revised Building Code of Australia.

SIZE OF NEW DWELLINGSAverage floor area

Under the 5-yearly review cycle for sections of the building code, the authority focused on energy efficiency and made recommendations for changes that will encourage different solutions to reducing heat loss from the envelope of buildings depending on New Zealand's differing temperature zones. Consideration for restricting heat loss from water storage systems and provision for efficient lighting in commercial buildings were also included.

Adequate provision for people with disabilities is an important consideration in all new building work. Such provision has existed under the Disabled Persons and Community Welfare Act since 1975, but it is only since the building code appeared that designers and building owners have fully appreciated them, and also that the provisions are taken seriously by territorial authorities when issuing consents. The code's objective of ensuring that people with disabilities are able to enter and carry out normal activities and functions within buildings is now being accepted as a right of those disadvantaged.

The Building Industry Authority is funded by the building consent levy at the rate (since December 1995) of $0.65 for every $1,000 of building work, applicable to projects exceeding $20,000. The rate has been reduced from the $1/$1,000 when the levy was introduced in 1994. This gave an income of about $3.46 million for the year to 30 June 1996. The authority's approved expenditure for that year was just under $2.8 million, of which 40 percent was spent on education and information activities.

“The Last Straw” studio, a straw bale construction in the Hawkesbury Valley, Marlborough, December 1994. (Designed by Coyote Design, built by Peter and Jacek Kundycki.)

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 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.

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 1996 are described by types of building in table 22.6. Consents cover alterations and additions as well as new buildings.

Table 22.6. VALUE OF BUILDING CONSENTS ISSUED

Type of buildingYear ended 31 March
19921993199419951996
Source: Statistics New Zealand
 $(million)
Residential—
New dwellings1,704.11,851.32,172.12,864.12,741.9
Alterations/additions and outbuildings413.8433.5507.6576.7619.0
        Total residential buildings2,117.92,284.82,679.73,440.83,360.9
Non-residential (includes additions and alterations)
Hostels, boardinghouses8.417.331.011.234.5
Hotels, motels, etc.14.930.837.9207.8194.0
Hospitals and nursing homes86.371.580.764.494.3
Education buildings69.194.5190.5231.5261.2
Social, cultural, religious and recreational buildings94.0117.9223.9250.3246.0
Shops, restaurants, taverns135.9173.0207.5314.1270.6
Office and administrative169.2280.8196.4253.1295.6
Storage buildings49.857.761.1105.5150.6
Factories and industrial126.5145.8252.7316.3334.5
Farm buildings48.369.190.1108.1100.7
Miscellaneous and multi-purpose buildings23.530.278.4137.6215.0
        Total non-residential buildings825.91,088.51,450.11,999.92,197.0
        Total all buildings2,943.83,373.24,129.75,440.75,558.0

NEW DWELLINGSNumber of building consents* issued

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 1995-96 includes 21,256 permits or authorisations to a total value of $2,741.9 million for new dwellings. This includes authorisations for 38 new government dwellings (value $5.5 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.

Table 22.7. LOCATION AND VALUE OF BUILDING AUTHORISATIONS 1997*

 NumberRes.Value ($)Non res val ($)Tot bld val ($)
19961997199619971996199719961997

* Year ended 31 March.

Source: Statistics New Zealand

Whangarei15827518.229.827.229.648.964.3
Auckland (main) urban area698574911047.31090.5800.8866.42041.82160.8
Northern Auckland zone21401869339.6324.4120.6160.7512.1542.7
Western Auckland zone12201287157.8167.054.363.4236.5258.1
Central Auckland zone17422154288.6306.2420.0390.4797.1785.0
Southern Auckland zone18832181261.3292.8205.8251.9496.1575.0
Hamilton768100798.4132.780.873.8194.9224.8
Tauranga12701458151.3178.740.644.8207.1235.2
Rotorua21620320.723.725.619.451.949.3
Gisborne1027311.78.312.48.527.719.6
Napier27421635.828.217.930.159.563.5
Hastings14322218.820.639.355.165.382.2
New Plymouth16313619.316.422.014.349.638.0
Wanganui80719.09.018.513.531.726.2
Palmerston North31617641.024.139.848.390.580.6
Wellington (main) urban area8941052118.8128.5146.1172.6320.6363.2
Upper Hutt Valley zone51778.97.33.26.124.916.2
Lower Hutt Valley zone12313319.218.527.129.456.560.6
Porirua Basin zone13010819.717.510.224.634.046.2
Wellington City zone59073470.985.395.5112.4205.2240.2
Nelson37239942.545.032.952.482.5104.0
Christchurch23382148268.6264.2247.5253.6563.1561.0
Timaru80699.57.915.418.427.428.5
Dunedin31425434.728.741.185.390.2126.2
Invercargill1157215.59.035.625.456.138.5
        Total22467238653127.63264.42590.52850.66371.56789.3

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)
Residential5,039-8,2633,5703,344,0396,704,950
Hostels and boardinghouses14,0426513,9536,420-34,481
Hotels, motels, etc192,546-599859-194,005
Hospitals and nursing homes40,74922035,09118,206-94,266
Education buildings6,161-244,02210,997-261,181
Social, cultural, religious and recreational111,426 72,83861,738-246,001
Shops, restaurants, taverns252,6876,5321,27410,140-270,632
Office and administrative214,19820,28743,75317,33076295,720
Storage buildings149,35188440689-150,567
Factories and industrial313,2501,01216,2473,999-334,507
Farm buildings99,883100552170-100,706
Miscellaneous and multi-purpose184,94816025,6324,319-215,059
        All buildings1,584,28028,178462,663137,4373,344,1158,902,073
Totals for 19951,470,56533,062378,148130,6923,428,2535,440,720

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

 sq m
 no$(million)(000)$(million)
1991208201,997.12827.02,428.63,537.9
1992176531,704.12,465.62,117.92,943.8
1993179051,851.32746.72,284.83,373.3
1994193612,172.13101.72,679.74,129.7
1995236812,864.13937.53,440.85,440.7
1996212562,741.93,646.93,360.95,558.0

Napier after the earthquake on 3 February 1931. It was this devastation that led to a Building Regulations Committee recommending, later that year, that a national building code be prepared and applied. The following year the New Zealand Standards Institution (now Standards New Zealand) was established.

A log home in the Wairarapa, built by its owner in the 1990s.

10 laminated portals in an 18,000sq ft store built in Lower Hutt of radiata pine, 1969.

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
19966.83,005.0658.93,670.7
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-purposeSubtotal

* 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
1996275.196.5400.9958.2315.9715.52,762.16,432.9

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 for non-residential buildings, four other construction and four land improvement price indexes have been produced since the December 1989 quarter.

For the quarter ended in March 1996 the index recorded increases of 4.9 percent for residential buildings, 2.1 percent for non-residential buildings, 2.8 percent for other construction, and 1.2 percent for land improvements, from the March 1995 quarter.

Columbia Ave, in Costorphine, Dunedin. The houses were built as part of a government development in the days of the quarter-acre section.

Table 22.11. BUILDING AND CONSTRUCTION: STATISTICAL SUMMARY

Statistical item1993-941994-95
Source: Statistics New Zealand
 $(million)
Stocks
Closing509.6660.3
     Opening468.3546.2
Income—
     Sales of goods and services8,564.910,227.3
     Interest, etc received50.946.7
     Government grants and subsidies3.44.1
     All other income31.752.1
Total sales and other income8,651.010,330.3
     Adjusted for change in stock values8,692.210,444.3
Operating expenditure—
     Salaries and wages paid to employees1,263.31,525.8
     Redundancy and severence4.15.1
     Salaries and wages to working proprietors379.0480.2
     Levies paid to ACC69.186.2
     Employer contributions to superannuation schemes16.610.7
     Fringe benefit tax10.09.9
     Purchases and other operating expenses6,037.27,124.4
     Interest, bad debts, etc130.4146.9
     Indirect taxes (excluding FBT)44.743.4
     Depreciation202.1228.6
     All other operating expenditure14.025.5
Total operating expenditure8,166.59,681.5
Net profit before tax, after deducting extraordinaries and salaries and wages to working proprietors887.01,216.3
Net profit before tax, after deducting salaries and wages to working proprietors904.71,243.0
Fixed tangible assets—
     Purchases of plant, machinery, etc356.7411.5
     Purchases of land and land improvements22.515.9
     Purchases of buildings and other construction45.037.0
     Total purchases of fixed tangible assets424.3464.5
     Sales of fixed tangible assets131.8133.7
Balance sheet—
     Shareholders funds, etc1,635.71,917.4
     Other liabilities2,785.23,193.6
     Total capital and liabilities4,420.95,111.0
Fixed tangible assets1,537.71,756.2
Other assets2,883.23,354.4
Total assets4,420.95,111.0
Ratiospercent
     Profit margin on sales10.411.9
     Return on equity54.263.4
     Return on total assets20.123.8
     Liabilities structure37.037.5

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 Statistics New Zealand; Valuation New Zealand; Land Information New Zealand.

  • 22.2 Reserve Bank of New Zealand; Statistics New Zealand; Department of Social Welfare; Housing Corporation; Housing New Zealand; Community Housing Ltd; Ministry of Housing.

  • 22.3 Statistics New Zealand; Building Industry Authority.

Special articles

Angus McCallum, Secretary Log Builders' Association of New Zealand, Masterton RD2; School of Architecture Library, Auckland and New Zealand Institute of Architects; Earth Building Association of New Zealand; The 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 Industry Authority News. Building Industry Authority (monthly).

Building Statistics. Statistics New Zealand (annual).

Enterprise Survey. Statistics New Zealand (annual).

New Zealand Building Code Handbook and Approved Documents. Building Industry Authority (available from Standards New Zealand).

Chapter 23. Transport

Air New Zealand's first big jet DC8 at Mangere, November 1965. The 150-foot long airliner arrived from Los Angeles in July 1965.

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 was formed and is 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-nine foreign airlines, including three cargo airlines, operate to New Zealand and six serve New Zealand on a code-share basis only. In addition, there are two New Zealand international scheduled airlines: Air New Zealand, and Freedom Air International, 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 (now the Civil Aviation Authority), 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 have several regional airports. 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 standalone 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 and some non-Australasian-crewed ships began to enter the trans-Tasman trade.

Queen's Wharf, Auckland, photographed on 21 August 1899.

The Annual Enterprise Survey covers the activities of all businesses classified in Major Division 7 of the New Zealand Standard Industrial Classification. Some of the survey's results are shown in table 23.1.

Table 23.1. TRANSPORT AND STORAGE: STATISTICAL SUMMARY

Statistical itemRoad Transport 1994-95Water Transport 1994-95

Note: ..c = suppressed for reasons of respondent confidentiality.

Source: Statistics New Zealand

 $(million)
Closing stocks25.98.3
Opening stocks23.38.0
Sales of goods and services3,054.61,137.6
Interest, dividends, donations, royalties, patent fees, insurance claims received and bad debts recovered21.0..c
Government grants and subsidies58.1..c
Other income including extraordinaries19.18.5
Total income3,152.71,166.8
        Total income adjusted for inventories3,155.41,167.0
Salaries and wages paid to employees623.4319.2
Redundancy and severance4.35.4
Salaries and wages to working proprietors (SW to WPs)112.82.7
Levies paid to Accident Compensation Corporation25.712.1
Employer contributions to superannuation schemes3.615.2
Fringe Benefit Tax3.81.9
Purchase and other operating expenses1,619.2514.4
Interest, donations, grants, royalties and patent fees paid and bad debts written off86.119.1
Indirect taxes (excluding Fringe Benefit Tax)229.613.9
Depreciation232.364.9
Other expenses including extraordinaries6.810.3
        Total expenditure2,943.3973.9
Net profit before tax, extraordinaries, SW to WPs312.5197.7
Net profit before tax, SW to WPs324.8195.9
Purchases of plant, machinery, vehicles and equipment460.463.8
Purchase of land, and land improvements..c..c
Purchases of buildings and other construction..c..c
Total purchases of fixed tangible assets483.5128.0
Sales of fixed tangible assets83.118.1
Shareholders funds or owners equity819.21,082.3
Other liabilities1,361.0543.3
Total capital and liabilities2,180.21,625.6
Fixed tangible assets1,394.41,208.7
Other assets785.8417.0
Total assets2,180.21,625.6
Ratios ($)
        Total income per FTE108,407.2198,278.7
        Net profit per FTE11,049.633,602.0
Ratios (%)
     Profit margin on sales10.217.4
     Return on equity38.118.3

The 4-masted barque Hinemoa in dock in Port Chalmers, date unknown.

23.1 Shipping

Almost 85 percent of New Zealand exports by value, and over 99 percent by volume, are carried by sea. In the case of imports, around 75 percent by value are carried by sea and the volume is also over 99 percent. 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. In recent years there has been an increase in both Australasian and foreign participation in the 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.

“Arrival at the Hydrabad.” Waitarere Beach, December 1909.

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. 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. P & O Nedlloyd Ltd has the largest trade, with the balance held by a number of continental carriers.

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 a number of other lines including the China Ocean Shipping Company (People's Republic of China), Tasman Asia (New Zealand), 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 introduced a joint service between New Zealand and South-East Asia.

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.

Trans-Tasman. The serving of the Tasman trade has changed considerably recently with a number of foreign cross traders joining existing Australasian tonnage in the trade. Union Shipping New Zealand now operates in conjunction with Australia/New Zealand while the Tasman Express Line operates with South Pacific Shipping and P & O. BHP Transport (Australia) also operates ships on the Tasman.

South Pacific. The regionally-owned Pacific Forum Line operates four vessels linking New Zealand, Australia, Fiji, Papua New Guinea, the Cook Islands, Tonga, and American 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 (transhipment), New Caledonia, Niue (on inducement), Papua New Guinea, the Solomon Islands, Tahiti, Tonga, Tuvalu (transhipment), 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 Tranz 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, Lyttelton and Timaru. Strait Shipping operates a livestock carrier and a roll-on roll-off vessel between Wellington, Picton and Nelson. 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.

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 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 Coastal Tankers Ltd distribute petroleum products from the Marsden Point oil refinery. Liquigas operates the LPG carrier Tarihiko.

MARINE ACCIDENTSTotal reported 1995-96...

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 six are partly privatised and further private ownership is encouraged by the Government.

Registration of ships. As at 31 December 1996 there were 3,039 ships on the New Zealand Register of Ships, with a total gross tonnage of 344,478 tonnes. This compared with 2,974 ships totalling 354,896 gross tonnes in December 1995. 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 during 1996 included the deep sea fishing vessels, Ocean Fresh, San Venturer, San Discovery, San Tongariro, and Amaltal Mariner, and the passenger vessel Superflyte.

Vessels removed from the New Zealand Register during 1996 included the tanker Kuaka and the fishing vessel Will Watch.

Table 23.2. REGISTERED VESSELS INVOLVED IN DOMESTIC AND OVERSEAS TRADE*

 Number of vesselsNet registered tonnageNumber of crew

* Ships in overseas trade mainly engaged in trans-Tasman and Pacific Islands trading movements.

The shipping register is not metricated and I net register ton equals 100 cubic feet (or 2.83 cubic metres) of cargo capacity.

Crew figures are not necessarily up to date.

Source: Maritime Safety Authority

Domestic
19931231159313
1994
19951220221269
19961226048302
Overseas
1993857582147
1994
1995969354170
1996859006153

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 3,328 aircraft—an increase of 102 in the past year. There are about 10,135 licenced 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 about 20 percent from the Crown for policy advice and other services. The remainder of the $12.8 million budget is drawn from industry by direct and indirect cost recovery.

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 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 was the first commercial air navigation services organisation in the world to implement a satellite-based Oceanic Control System which will make a significant contribution to increased airline efficiency and air traffic safety. Airways continues to be a world leader in its field. It has received four major international awards for achievement in infrastructure and the implementation of the Oceanic Control System.

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.

AIR ACCIDENTSNotifiable aircraft accidents

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).

In addition, a division of Airways Corporation, Aviation Publishing is responsible for publishing aeronautical charts and manuals on behalf of the Civil Aviation Authority. Airways 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 20 such agreements and has negotiated another two which are awaiting signature. It also has a non-governmental agreement with Taiwan. 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 two New Zealand airlines 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

* Canadian Airlines International, Japan Airlines, Ansett Australia, United Airlines, Polynesia Airlines, Royal Tongan Airlines, Lan Chile 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 1961QantasSydney/Melbourne/Brisbane/Perth/Adelaide/Cairns-Auckland/Christchurch/Wellington/Sydney-Auckland-Papeete 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 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 AirlinesLos 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-Auckland
13 Jun 1990Solomon AirlinesHoniara-Port Vila, Auckland Honiara-Port Vila-Nadi-Auckland
1 Jul 1991Royal Tongan AirlinesTonga-Auckland-Sydney
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, Taipei-Auckland
13 Sep 1994Polar AirLos Angeles-Honolulu-Nadi-Auckland-Sydney (freight)
1 Jul 1995Evergreen International AirlinesLos Angeles-Honolulu-Auckland-Melbourne (freight capacity taken up by Air New Zealand)
1 Nov 1995American AirlinesLos Angeles-Auckland-Melbourne
18 Dec 1995Ansett Australia*Sydney-Auckland
5 Jul 1996Lan Chile*Santiago-Easter Island-Papeete-Auckland
27 Mar 1997Asian ExpressAuckland-Sydney (freight)

Air New Zealand operates services to six gateways in Australia (Sydney, Melbourne, Brisbane, Perth, Hobart and Cairns) and code-shares on Ansett Australia services to a number of other points. In the Pacific, Air New Zealand operates to the Cook Islands, Western Samoa, Fiji, Tonga, Tahiti, Norfolk Island and New Caledonia. Thailand, Singapore, Indonesia, Japan (Tokyo, Osaka, Nagoya and Fukuoka), Hong Kong, Taiwan and Malaysia (on a code-share basis with Ansett International Services) are served in Asia and the United Kingdom and Germany in Europe. In North America services are available to both the United States and Canada (Vancouver and Toronto) while in South America, Air New Zealand operates on a code-share service with Lan Chile. Freedom Air International offers services across the Tasman.

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 operator 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, Mandarin Airlines, Japan Airlines, United Airlines, Lan Chile, Polynesian Airlines, Royal Tongan Airlines and Ansett Australia.

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, 2,495 km; and Christchurch-Hobart, 2,024 km.

Table 23.4. DISTANCES FROM AUCKLAND AIRPORT TO SELECTED OVERSEAS DESTINATIONS*

DestinationDistanceDestinationDistance

* These are airport-to-airport great circle distances in kilometres.

Adelaide3247Perth5400
Apia2893Port Moresby4126
Bangkok11500Rarotonga3013
Brisbane2293San Francisco10503
Buenos Aires15884Santiago12822
Hong Kong9145Seoul12869
Honolulu7086Singapore8410
Los Angeles10480Suva2141
Melbourne2635Sydney2158
Nadi2156Taipei10654
Norfolk Island1091Tokyo8837
Noumea1859Tonga2004
Pago Pago2902Townsville3359
Papeete4093  

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.

Hawkins Hill radar, which covers the area from Taranaki to Kaikoura.

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.

The railway station at Dannevirke, Hawke's Bay, photographed by Muir and Moodie on 1 April 1912.

23.3 Railways

The New Zealand railways system 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. In June 1996 Tranz Rail Holdings Limited was listed on the New Zealand Stock Exchange and the NASDAQ National Market in the United States of America in an initial public offering. The company continues to be profitable.

Since the sale in 1993, the New Zealand Railways Corporation has continued as a residual government body with two principal activities: to manage all known litigation, contingent issues and statutory obligations, and to manage the Rail Corridor Lease with Tranz Rail Limited so as to achieve the best return to the Crown. Lease income in the year to 30 June 1996 was $887,000 ($900,000 in 1995).

Tranz Rail plays a key role in New Zealand's increasingly competitive transport market, operating rail, trucking and shipping services throughout its national network. Since privatisation the company has transformed itself from a line haul rail company to a multi-modal transport operation providing freight and distribution services, warehousing, and logistics management as well as travel experiences.

Planned investment in Tranz Rail's infrastructure will have a major impact on the ability to increase capacity, service reliability and the efficiency of the network.

Tranz Rail is considering an investment of $565 million over the next 15 years to provide a new Interisland fleet and new North and South Island ferry terminals. The first stage of this, the replacement of the interislander ferry, the Aratika, by a larger roll-on-roll-off rail ferry is currently underway.

The company continues to look at new market opportunities including the movement of bulk milk by rail from remote catchment areas into mega dairy processing sites. A contract to move up to 1.3 million litres of milk per day for Kiwi Dairy heralds a new era in the transport of milk products.

Freight transport. Tranz Link 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 logistics management services. It is Tranz Rail's largest revenue earner, generating 70 percent of the company's total business. In the 1995-96 financial year it carried 10.3 million tonnes of freight an average distance of 330 kilometres.

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.

  • Logistics provides planning services to meet customers' total transport needs including distribution, warehousing, vanning, IT systems and shipping.

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. 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. This year Tranz Scenic was also a finalist in the New Zealand Tourism Awards.

Commuter rail services—Tranz Metro operates urban commuter services in Wellington and Auckland, providing an estimated 10.5 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 14-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 by 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.

A seasonal fast ferry, The Lynx, operates for four months in the summer.

The four vessels made over 5,000 crossings of Cook Strait in the year to 30 June 1996. More significantly, during that period more than one million passenger journeys were made. The three conventional ferries also carried 213,000 cars and 296,000 commercial vehicles (lane metres).

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.

Operations have begun a major upgrading of the company's wagon fleet, to develop customer-programme specific designs and high-capacity wagons. The company is progressively rebuilding its fleet of DF and DX locomotives to improve power and fuel efficiency. Remote controlled shunting and single man crewing have been successfully introduced and a programme to destress track prone to heat buckling has also been completed.

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.

There are 2,178 bridges and viaducts to carry the railways across the many gorges, rivers, and streams in New Zealand. 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 149 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 1996 Tranz Rail's track and rolling stock included 341 diesel, electric and shunting locomotives, 6,828 freight wagons, 256 passenger carriages and commuter units, three rail ferries and plant and support equipment.

Technology. Tranz 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. Ontrac, Tranz Rail's freight tracking system, tracks individual consignments using barcode technology. This is complemented by Ontrac Direct which provides real time freight tracking data over the Internet. The address of the Tranz Rail web site is www.tranzrail.co.nz.

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’ is a children's railway safety programme designed to educate school children about level crossings and the dangers of playing near railway tracks and trains. Since it was launched in 1994 more than 70,000 children have been through the programme.

Tranz Rail also supports safety in the community through its sponsorship of air ambulances based in Palmerston North, Taupo and the West Coast, with a future service planned for Dunedin. The Tranz Rail Marine Safety Centre in Greymouth and the Tranz Rail Rescue Boat in Marlborough Sounds are also part of the safety programme.

Table 23.5. NEW ZEALAND RAIL—SUMMARY OF OPERATIONS

CategoryUnitAs at 30 June
19901993199419951996
Source: Tranz Rail
Route—
    North Islandkm25782481242324232423
    (electrified)km510510510510510
    South Islandkm14921492149214921492
    (electrified)km1414141414
Bridgesno21882330233023302178
 km64.6375.4575.4575.4575.45
Tunnelsno153150150150149
 km89.6988888887.3
Locomotives—
    diesel/diesel-electricno259257258248191
    electricno2727272727
    steamno-----
Rolling stock—
    freightno100678859789369496828
    passenger (incl. motorised)no256269287279256
Passengers carried—
    long distanceno 391000450000443000453000
    suburbanno 10000000102000001020000010500000
Total freight carriedtonnes829500084510009444000927000010300000

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 1996, recorded 8,383 full-time equivalent persons engaged in the provision of road passenger transport, and 21,736 persons engaged in providing road freight transport.

Building “rootbridges” over the root systems of ancient giant kauri in the Waipoua Forest. The whole of State Highway 12 through the forest is being sealed to reduce dust and allow revegetation with native flora right up to the edge of the road. Polystyrene is used to absorb road shock under one section.

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.

Land transport

Under the Transit New Zealand Act 1989, Transit New Zealand was given the responsibility for developing a national land transport programme. It took over the responsibilities of the National Roads Board and Urban Transport Council, becoming the new organisation responsible representing the interests of New Zealanders in the planning and funding of the land transport system.

In 1995 there were further significant changes to roading system administration with the passing of the Transit New Zealand Amendment Act. A new Crown entity, known as Transfund New Zealand was established, functioning independently from Transit New Zealand.

Transfund New Zealand

Transfund New Zealand began operations on 1 July 1996 as a Crown entity. Its responsibilities include land transport system funding operations that were previously undertaken by Transit New Zealand. Its objective is to allocate road-user funds from the National Road Account to achieve a safer and more efficient roading system. This account is made up of proceeds from a portion of the Fuel Excise Tax, Road User Charges and Motor Vehicle registration funds.

Specific roles of the organisation include:

  • Developing the National Roading Programme (NRP) which proposes activities and allocates funds for roading, passenger transport, and efficient alternatives to roading.

  • Undertaking reviews and audits of the activities of road controlling authorities, including Transit New Zealand, with respect to roading construction and maintenance and passenger transport funded from the National Road Funds.

  • Determining standards of maintenance, construction, safety, etc for eligibility of funding for road controlling authorities.

  • Ensuring all activities outlined in the NRP are achieved.

Transit New Zealand

Transit New Zealand came into being on 1 October 1989 and operates as a Crown entity. It is charged with the responsibility for the management, maintenance, and further development of the state highway network and reports to the Transit New Zealand Authority. This is an independent authority, appointed by the government which operates much like a company board, directing overall policy and funding allocation.

Each year Transit New Zealand is required to prepare an annual work programme for the state highways and submit this to Transfund New Zealand for approval. This programme is competitively assessed against applications for funding submitted by the nation's 74 territorial authorities.

Through the organisation, New Zealand has become one of only three countries to adopt a formal road safety audit policy and procedure.

The roles of Transit New Zealand include:

  • Managing the state highway network.

  • Developing, in consultation with territorial local authorities, standards and guidelines for state highway management practices that are safe and cost-effective. This includes topics such as road maintenance, construction and advisory signs.

  • Providing assistance and advice, including development of standards and guidelines for safe and cost-effective practices, to local authorities as requested by Transfund.

  • Ensuring activities programmed in the National Roading Programme for state highways are achieved.

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 1994
Paved or sealed14618.530183.310331.655133.4
Metal or gravel421.436717.3113.437252.1
        Total, maintained roads15039.966900.610445.092385.5
At 30 June 1995
Paved or sealed14869.730259.810327.055456.5
Metal or gravel416.035878.0126.036419.3
        Total, maintained roads15285.766137.010453.191875.8
At 30 June 1996
Paved or sealed14866.830641.810346.755855.3
Metal or gravel490.835401.0117.036008.8
        Total, maintained roads15357.666042.810463.791864.1

Roading taxation is described in section 28.2, Taxation.

Table 23.7. EXPENDITURE ON STATE HIGHWAYS

Class of expenditure19921993199419951996

* Excludes motorway structures.

Maintenance figures include the cost of flood damage repairs when applicable.

Source: Transit New Zealand

 $(000)
Construction and improvement68,21995,367110,984114,933136,170
Bridges and other structures*6,4538,0612,8601,572910
Maintenance, repairs, etc.225,499205,547223,891221,199226,051
        Total300,171308,975337,335337,704363,131

Table 23.8. PUBLIC ROADING EXPENDITURE

Item19921993x199419951996

* Previously known as the National Roads Fund.

Source: Transit New Zealand

 $(000)
State highways expenditure300,171308,975337,335337,704363,131
Special purpose roads2,1711,9902,6402,5854,240
Local authority roading expenditure—
From Land Transport Fund*226,312230,703241,440260,902256,726
        Total528,654541,668581,415601,191624,097

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.

MOTOR VEHICLESNumbers licensed

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. REGISTRATIONS OF NEW COMMERCIAL VEHICLES

December yearNew commercial vehicles by gross weight in kilogramsTotal commercial vehicles
2500 or less2501 to 45004501 to 90009001 to 1450014501 and overOmnibus and service coaches
Source: Statistics New Zealand
1992119008784130240194643925325
199312969103371930484115053228863
199413668118602257707145458831940
199512526116902213741171471430879
199610960128452608921769101231132

Table 23.1. LICENSED MOTOR VEHICLES

Type of vehicleAt 31 March
1993199419951996

* Discontinued, October 1993.

Began October 1993.

Source: Land Transport Safety Authority

Cars1562134160049916471341635718
Rental cars9631113501336414394
Goods services cars*2117.........
Heavy trucks, light trucks, vans, utes320283340261355833342246
Taxis3803407944585733
Buses and service coaches8227865791099248
Caravans, trailers368846374110361965341841
Motorcycles60099578055439147196
Mopeds1146125615082102
Tractors 201731998918302
Trade plates D4460466751055953
Trade plates C573592611650
Miscellaneous164227026700714958
Exempt vehicles216767040725311665
        Total, all vehicles2379417243751524877222540006

Table 23.11. REGISTRATIONS OF NEW VEHICLES

December yearNew cars and stationwagons—c.c ratingCars previously registered overseas*New motor cycles
850 and under851 to 13001301 to 16001601 to 20002001 to 50005001 and overTotal

* Included in total.

Source: Land Transport Safety Authority

198988021496440665000018137309134828509665796
199068319751564388418118391302159746853244897
199180610523353614160114497178102966473514042
1992592720930241366791717420592110391462469
1993453667430943387012073415897663438412601
19944946676389364774429691312123853620883337
19955795246469525603537375469146656809763451
199658637995606667402478294961761781117643812

Not included in the above tables are new tractors (see separate table).

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 carNumber 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
19952.151.66
19962.201.64

A 1937 bitumen sprayer, believed to be the oldest working model in New Zealand, on display at the Roads 96 Conference in Christchurch. It was originally owned by Sir Russell Matthews, the first person to seal roads in New Zealand—in New Plymouth, 1913, using a horse and cart.

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 people employed in the full-time labour force to travel to work on the day of the 1991 Census of Population and Dwellings.

A large section (50.0 percent) drove a privately-owned car, truck or van to work, while a further 14.6 percent drove a vehicle owned by the employing company. The public transport system serviced only 4.7 percent of those travelling to full-time work, with buses contributing 3.8 percent and trains only 0.9 percent.

Among the less common employment-related means of transport are walking (7.3 percent) ‘other’ (1.1 percent), travelling as passengers in cars, trucks or company buses (7.7 percent), by bicycle (4.7 percent) and as riders of motorcycles or powercycles (2.6 percent). The remaining 7.3 percent worked at home.

Significant patterns of travel to work at the 1991 Census relate to male-female differentials in means of transport. Males showed a much greater tendency than females to drive company vehicles, or ride motorcycles, powercycles or bicycles to work. Females, by contrast, tended to make greater use of the public transport system (public buses and trains), drive private vehicles, travel as passengers in cars, trucks and company vehicles, and walk more than their male counterparts. This male-female structure of transport use reflects a combination of demographic and economic variables including living arrangements, household composition and income, number of household income earners, access to household vehicles, distance travelled to work, occupation, industry and employment status.

Table 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 bus164852.4235866.241.1
Train54660.844791.255.0
Drive private vehicle31036245.821788157.558.8
Drive company vehicle13815020.4166654.489.2
Passenger in car. truck or company bus392945.84162511.048.6
Bicycle384365.7116643.176.7
Motorcycle, powercycle242973.631680.888.5
Walk466356.9303428.060.6
Other88531.327450.776.3
Work at home500527.4267397.165.2
Not specified10887-6135-64.0
        Total688920100.0385023100.064.1

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 car travelling across Takapau plains passes a sculpture erected in memory of the victims of the tragic 1992 Christmas Eve crash. The outstretched rusting steel hands make a silent plea to passing motorists to slow down.

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 I 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.

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.

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 fiscal 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 51 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. Land Transport Safety Authority research indicates a reduction in the number of fatal and serious crashes of approximately 23 percent at urban camera sites and 11 percent at rural camera sites.

Speed limits. New Zealand's roading network is essentially a two way, two lane system and the management of speed is therefore a critical aspect of traffic safety. 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.

Laser Speed Management. In 1996, Police introduced LIDAR speed measuring equipment to supplement other enforcement tools. LIDAR uses a laser beam to measure the speed of vehicles. It is particularly useful in heavy traffic and multi-lane situations, where its ability to isolate and measure individual vehicles permits targeting of speeding vehicles in the traffic stream.

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. Breaches of certain laws are dealt with under an infringement system whereby a driver may pay an infringement fee within a specified time to avoid court proceedings.

Wellington's and New Zealand's last tram passes by the Government Buildings on its way from Thorndon to the Newtown tram barns, May 1964.

There is also a system in operation whereby demerit points are automatically registered according to a fixed scale against people convicted of driving offences or people who paid certain infringement fees. The director of the Land Transport Safety Authority may suspend drivers' licences for three months where 100 or more demerit points are received within two years. Some demerit points are awarded on a graduated scale, based on the speed a driver is detected travelling at over the limit.

TRAFFIC CONVICTIONSRate per 10,000 of population

Table 23.14. TRAFFIC OFFENCES AND INFRINGEMENTS*

Type of offence19951996Percent variation

* Includes traffic offences reported to the police but no prosecution initiated.

Year ended 31 December.

Source: New Zealand Police

Traffic offences
Drink/drive offences3180831516-0.9
Dangerous/reckless driving46054501-2.3
Careless/inconsiderate driving/overtaking offences2668924761-7.2
Speeding offences (under 100 km)13751338-2.7
Speeding offences (over 100 km)11501105-3.9
Speeding—trailer, towing, heavy motor vehicle40437.5
Speeding offences—speed camera offence31734910.1
Failure to stop/give way126512680.2
Failure to obey officer/fulfil duties82687608-8.2
Vehicle licence offences1617209129.3
Driving while disqualified offences11828122713.7
Driver licence offences12509126671.3
Certificate of fitness offences72283215.2
Driver hours/log book337135043.9
Passenger/recovery/rental service vehicle offences48764833.1
Vehicle condition offences197154-21.8
Vehicle safety offences455113.3
Vehicle noise/loading offences66776114.1
Bicycle offences170104-3.8
Cycle helmet offences164144-12.2
Pedestrian and other offences12623687.3
Stock and vehicle bylaw offences375548.6
Other traffic offences362345-4.7
        Total107837106352-1.4
Traffic infringements
Unsafe use of vehicle13067133982.5
Speeding infringements (under 100 km)404144816219.2
Speeding infringements (over 100 km)284653332117.1
Speeding—trailer, towing, heavy motor vehicle159916533.4
Speeding infringements—speed camera offences402074317159-21.1
Failure to stop/give way195742302917.7
Failure to obey officer/fulfill duties68677412.8
Vehicle licence/overloading infringements117331792452.8
Driver licence infringements9675510796811.6
Certificate of fitness infringements7198869079-4.0
Seat belt and miscellaneous infringements202232664831.8
Safety helmet infringements769696-9.5
Passenger/recovery/rental service vehicle infringements3954247.3
Vehicle condition infringements39803863-2.9
Vehicle noise/loading infringements1717224230.6
Bicycle infringements30072837-5.7
Cycle helmet infringements91958256-10.2
Pedestrian and other infringements322233-27.6
Local body bylaw infringements41343250.0
        Total725967677800-6.6
        Total833804784152-6.0

Demonstration of a microwave speed detector, November 1956.

One of the new speed radar guns, July 1996.

The Mikhail Lermontov sinking in the Marlborough Sounds, 1986.

Contributors

  • 23.1 Ministry of Transport; Maritime Safety Authority.

  • 23.2 Ministry of Transport; Civil Aviation Authority; Airways Corporation of New Zealand.

  • 23.3 Tranz Rail; New Zealand Railways Corporation.

  • 23.4 Ministry of Transport; Transit New Zealand; Autocheck; New Zealand Police; Land Transport Safety Authority.

Special articles

Transport Accident Investigation Commission; Civil Aviation Authority; Airways Corporation; Transit New Zealand.

Articles on transport in earlier Yearbooks

Railways in New Zealand: their history and progress; The New Zealand Midland Railway; Ports and harbours; and the three main shipping lines (1894 Yearbook, p377-85; p386-9; p389-408; and 414-21)

The Wellington-Manawatu Railway Company (1895 Yearbook, p381-4)

The development of New Zealand's railway system 1863-1963 (1963 Yearbook, pi 175-95)

New Zealand ports and shipping developments (1974 Yearbook, p1065-77)

Among the short articles in the 1990 Yearbook are:

Shipping lines (p530); Flying boat services, Early domestic airlines, TEAL (p537-9); Railways and the state, A railway system forms, The passenger trains (p542-5); Toll roads, Roading, When service cars ruled the highways (p546-9); The trams (p550); The Warrant of Fitness, Traffic enforcement, Rules of the road (p552-4).

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 F.7).

Report of the Transport Committee (Parl paper 1.2b).

Report of the Ministry of Transport (Parl paper F. 5).

Report of Transit New Zealand (annual).

Shipping

Shipping and Cargo Movements. Department of Statistics (annual).

Civil aviation

New Zealand Civil Aircraft Accidents. 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 F.7).

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).

Report of the Road Safety Trust (Parl paper F.15).

Te Aro Coach Company, 1898. The sign advertises “A. Williams' Patent Axle Stay. Runaway Horse Stopper.” The 1895 Census showed 807 people employed in coach building and painting, and there were 1,185 in the 1901 Census, as well as 652 working in saddlery and harness factories.

Chapter 24. Commerce and services

The largest store of the Warehouse chain opened in Dunedin in October 1996.

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 subsequent 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 and the Fair Trading Act 1986 are New Zealand's competition law. In general terms, they rest on the premise that the existence of open and competitive markets will ensure the efficient allocation of economic resources.

The Commerce Act prohibits anti-competitive collusive and unilateral behaviour, and 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.

The Fair Trading Act exists to ensure information for consumers is accurate. Accurate information is vital for competition. If information is false or misleading, then consumers and competitors are disadvantaged and competition is distorted.

The Fair Trading Act gives anyone, including customers, competitors and the Commerce Commission the right to take action against breaches of it.

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.

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.

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.

Table 24.1. DISTRIBUTION: STATISTICAL SUMMARY (6: Wholesale and Retail Trade, Restaurants and Hotels)

Statistical item1993-941994-95Percentage change
Source: Annual Enterprise Survey, Statistics New Zealand
 $(000)
Closing stocks9,532.79,904.73.9
Opening stocks9,150.99,237.80.9
Sales of goods & services78,575.784,662.57.7
Interest, dividends, donations, royalties, patent fees, insurance claims received & bad debts recovered648.2651.80.6
Government grants & subsidies11.317.453.2
Other income including extraordinaries334.4514.753.9
Total income79,569.785,846.47.9
        Total income adjusted for inventories79,951.586,513.48.2
Salaries & wages paid to employees5,645.46,006.76.4
Redundancy & severance25.929.212.8
Salaries & wages to working proprietors (SW to WPs)1,057.91,107.94.7
Levies paid to accident compensation corporation101.5108.87.2
Employer contributions to superannuation schemes61.760.8-1.5
Fringe benefit tax83.790.37.9
Purchases & other operating expenses67,766.773,029.87.8
Interest, donations, grants, royalties & patent fees paid & bad debts written off1,140.01,153.61.2
Indirect taxes (excl Fringe Benefit Tax)211.8196.2-7.4
Depreciation940.5991.05.4
Other expenses including extraordinaries329.3229.9-30.2
        Total expenditure77,338.682,975.07.3
Net profit before tax, extraordinaries, SW to WPs3,665.74,361.519.0
Net profit before tax, SW to WPs3,670.84,646.326.6
Purchases of plant, machinery, vehicles & equipment1,153.51,251.78.5
Purchases of land & land improvements95.9141.547.6
Purchases of buildings & other construction354.5351.7-0.8
Total purchases of fixed tangible assets1,604.01,744.98.8
Sales of fixed tangible assets509.5468.1-8.1
Shareholders funds or owners equity13,730.514,951.18.9
Other liabilities21,322.921,251.3-0.3
        Total capital & liabilities35,053.436,202.43.3
Fixed tangible assets8,994.99,265.63.0
Other assets26,067.126,936.53.3
        Total assets35,053.436,202.43.3
Ratios
Total income per FTE$283,824$289,541 
Net profit per FTE$13,076$14,710
Profit margin on sales4.7%5.2%
Return on equity26.7%29.2%
Return on total assets10.5%12.0%
Liabilities structure39.2%41.3%

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 work with consumers and business to promote a fair and informed market place for consumers. Its mission is to

  • provide high quality advice to the government on key laws, practices and policies affecting consumers

  • enhance consumer's ability to function effectively and equitably in the market by providing information, education and advice

  • ensure that market transactions based on weight and measurement are accurate and fair promote improved market practices and encourage compliance with codes, standards and laws in the interest of consumers and business.

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, self-regulation, and market-place regulation issues. In formulating policy, consultations are held with consumer/community groups, government departments and traders.

Consumers ability to function effectively and equitably in the market by providing information, education and advice is enhanced by consumer-education programmes in the community, the provision of consumer education resource material to schools and teaching institutions, and consultation with relevant community groups on the appropriate development of education and information resources.

The ministry's Consumer Advice Service, with toll-free lines based in Auckland, Wellington and Christchurch, handles enquiries from consumers about their legal rights to enable them to resolve their own complaints. In the year to 30 June 1996, there were 49,112 requests for assistance from consumers and traders.

“Seven smart girls ... lined up for the photographer in their attractive sky-blue uniforms” at the opening of Wardell's supermarket in Lower Hutt, August 1968.

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, Feilding, Wellington and Christchurch. An accreditation programme enables private sector firms to certify weighing and measuring equipment for use in trade.

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 84,000 subscribers) and the bi-monthly Consumer Home & Garden (over 45,000 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 three 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, ie: 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.

A Liquor Review Advisory Committee was appointed last year to assist with the review of the Sale of Liquor Act 1989. The committee recently released its report which contained recommendations on a number of issues including: reducing the minimum drinking age; extending Sunday trading; changes relating to the different types of licences that can be granted; retaining the status quo in respect of the drinking hours; not incorporating a definition of host responsibility or intoxication into the act; devolving more operating power from the Liquor Licensing Authority to District Licensing Agencies; introducing a new licensing controllers certificate to replace the present certificated manager system; removing the trading privileges for licensing trusts; and changes on a number of minor technical issues. The committee made no recommendation in respect of health warnings, pending the outcome of the Australian and New Zealand Food Authority's findings. It also recommended that consideration of the Potter Report on liquor advertising should await the outcome of the triennial review to be conducted by the Advertising Standards Authority Inc. in 1997. The government is currently considering the committee's recommendations. Any legislation arising from the review is not expected to be introduced until next year.

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.

LIQUOR LICENSING: 1894-1989
YearPublicansTaverns*

* Excludes premises of licensing trusts, established in 1944.

Appendices to the Journal of the House of Representatives figure.

New class of license ‘hotels’.

§ Sale of Liquor Act 1990 introduced 1 April 1990; data no longer collected in comparable format.

Source: Department of Justice

 no
18941719..
18951579..
19001526..
19051415..
19101257..
19151207..
19201156..
19251115..
1930....
1935....
1940....
19451038..
1950....
19551126..
19601107..
19651102..
1968105727
1970929133
1975796294
1980703379
1985672403
1986669416
1987655412
1988653433
1989653432
1990§....

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*123469390160988
1990*1128912377159922
19911095314984153275
19921233011144154526
1993R1416011884156925
1994172639711168391
19951624911320170350
19961942513101177872

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.

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 exists to bring about awareness, acceptance of, and compliance with, the Commerce and Fair Trading Acts, so that consumers and producers benefit from healthy competition.

NEW COMPANY REGISTRATIONSRelated to size of population

The Commerce Act 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 is satisfied that 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 gives the Minister of Commerce the power to set price controls for goods or services. 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 aim of the Fair Trading 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 gives the Minister of Consumer Affairs the power to make consumer information and product safety standards mandatory.

In October 1996 consumer information 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.

In October 1996 product safety 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 68 at 30 June 1996, is funded mainly by a government grant. The Commission Members, at present five plus two associate members, are appointed by the Governor-General on the recommendation of the Minister of Commerce.

Table 24.3. COMMERCE COMMISSION SERVICES

Year ended 30 June199479951996

* Includes written and telephone complaints and enquiries.

Source: Commerce Commission

Commerce Act enforcement
Restrictive Trade Practices investigations:
        Total complaints received8199661255
        Investigations commenced7060150
        Investigations completed725561
Business acquisitions surveillance:
        Investigations completed928399
Fair Trading Act enforcement:
        Complaints received2059188813717*
        Investigations completed717717699
        Total enforcement actions376455410

Slater's Mobile Grocery Shop, a service in Auckland suburbs during the 1950s.

Securities Commission. Established under the Securities Act 1978, the fundamental purpose of the commission, as a Crown entity, is to facilitate private capital investment in New Zealand by: improving the efficiency and fairness of securities markets 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 to promoting:

  • Sound principles for market regulation.

  • Good standards of disclosure.

  • Reliable and ethical procedures for effecting transactions.

  • Flexibility in development of best regulatory practices.

  • Closer relations with overseas regulators.

  • Public understanding of the law and practices of securities.

Notable events (for the year ended 30 June 1996):

  • Commencement of review of the role and functions of the Securities Commission.

  • Review of Securities Act and Regulations in conjunction with the Working Group on Improved Product and Investment Adviser Disclosure.

  • Recommendations for reform of insider trading laws.

  • Extensive inquiry work.

  • Record number of exemptions approved.

  • Increased recognition of overseas regulatory regimes and co-operation with offshore regulatory bodies.

  • First prohibition of Internet advertisement for breach of securities law.

Serious Fraud Office—Te Tari Hara Tāwere. The Serious Fraud Office (SFO) 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 38 at 30 June 1996, composed of forensic accountants, investigators and prosecutors, 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.

During the year 122 new complaints were received (101 in 1995) and one case previously considered was re-opened when new information was received. The number of cases under investigation totalled 160, of which 9 resulted in prosecutions. There were 7 successful prosecutions with total value of charges of $61.915 million (4 prosecutions, total value of charges $42.67 million, in 1995). One trial had the proceedings stayed by the judge; in another case, the Malaysian Government reneged on promised assistance with overseas evidence and the SFO had to withdraw the prosecution. In the year to June 1996 the office received government funding of $4.888 million ($4.17 million in 1995). This included an additional $700,000 required by the SFO in responding throughout the year to the “wine box” Commission of Inquiry.

Statutory powers: The SFO's powers are the most extensive to have been legislated for in the area of criminal investigations in New Zealand. Briefly, they require any person whose affairs are being investigated, or any other person whom the director has reason to believe may have relevant information or documents, to attend before him to answer questions and produce such documents for inspection. In the year to 30 June 1996, 626 notices were issued under these powers (662 in 1995), and 21 search warrants executed (16).

New legislation: An amendment in 1996 to the Crimes Act 1991 criminalised money laundering. The Financial Transactions Reporting Act 1996 facilitates the prevention, detection, investigation and prosecution of money laundering, and the enforcement of the Proceeds of Crime Act. Financial institutions are required to report suspicious financial transactions, and persons entering or leaving New Zealand required to declare cash in excess of a prescribed amount.

SHARE PRICE INDEXGross index

The Stock Exchange, Wellington, in September 1975. The “board” and “chalkies” no longer exist since share transactions became electronic.

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 136 New Zealand companies and 65 overseas companies listed with the exchange at 31 December 1996.

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. The exchange introduced its code of practice requirements for the conduct and practice of individual members and member firms of the New Zealand Stock Exchange during 1996.

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. The exchange has provided a new takeover code in its listing rules to meet a market need for appropriate rules for the conduct of transactions which have the potential to change the control of the listed company. The exchange's code has all the necessary provisions for shareholders' protection; notice periods, requirements for disclosure, restrictions on defensive tactics, and provisions for compulsory acquisitions. The code provides a choice for shareholders of companies to incorporate into their constitutions the method by which changes in major shareholdings are conducted.

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.

All proceedings in bankruptcy are commenced by a petition filed in the court by either the debtor or a creditor. Not less than $200 in total must be owing by the debtor to any creditor, or creditors, filing a petition.

The Official Assignee is a statutory officer, and an officer of the court, in whom (apart from certain statutory exceptions) all the assets of a bankrupt vest on adjudication, and who acts as a trustee in respect of those assets. The assignee is empowered to sell the bankrupt's property, enforce debts due to the bankrupt's estate or carry on the business of the bankrupt so far as it is necessary or expedient for its disposal or conclusion. When all the assets are realised, the assignee deducts expenses incurred, pays any debts given statutory priority and then divides the proceeds among the creditors. Secured creditors are paid from the proceeds of the security, and other creditors are paid on a pro rata basis. Creditors may accept a composition in satisfaction of the debts due to them.

Table 24.4. OCCUPATIONS OF BANKRUPTS*

Occupational group199019911992199319941995

* 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/unknown815108910891007  
Total bankruptcy petitions180324102440232020372023

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.

BANKRUPTCIESRate per 100,000 population

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
198911038311063
199084010122597
19916561033707
19926601063759
19934251004436
1994222888641
199539118921029
1996174758..

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.

Window display of a Self Help store in the 1940s.

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 re-insurers, 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 nonresidential disaster insurance.

Statistics New Zealand's Annual Business Directory update recorded 102 medical and 80 general insurance enterprises operating in New Zealand as at February 1996 (107 and 75 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 9,362 full-time equivalent persons engaged within the insurance industry as at February 1996.

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 re-insurers 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 1996 there were 44,458 contributors to the Government Superannuation Fund and they paid $127.23 million into it during the year ending 30 June 1996. At the same time there were 45,610 beneficiaries who received $507.6 million during the period.

Total assets at 30 June 1995, amounting to $3,143.6 million, included investments in government stock of $1,568.08 million and $13.5 million in members' mortgages. The average effective interest earning rate before tax of the fund was 4.07 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.

Table 24.6. GOVERNMENT SUPERANNUATION FUND ALLOWANCES, AT 30 JUNE 1996

Qualification for allowanceNumber
Source: Government Superannuation Fund.
Retired for age, length of service or medically unfit32350
Spouses and dependents12260
        Total allowances45610

Table 24.7. CONTRIBUTORS TO GOVERNMENT SUPERANNUATION FUND

Branch of serviceAt 30 June 1996Percentage of total

* Includes state-owned enterprises which were formerly part of the Public Service.

Source: Government Superannuation Fund.

Armed services604813.60
Judges1170.26
Parliamentarians730.17
Police445410.02
Prison officers4370.98
Public Service*3332974.97
        Total44458100.00

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 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.

“Millions of pounds on paper go through hire purchase accounts every year” was the caption to this picture of hire purchase accounts workers in 1960. The article it went with was titled, “Hire purchase, a basic factor in our economy, means that we live on what we owe.”

Table 24.8. GOVERNMENT SUPERANNUATION FUND: SUMMARY

Year ended 30 JuneNumber of contributorsAnnual contributionsIncome from investmentsSubsidy from government trading departments and othersAnnual value of allowancesAccumulated fund at 30 June

* Year ended 31 March.

Tax exempt.

Source: Government Superannuation Fund

1992*56709149,437385,074413,715453,5312,804,582
199357925196,388422,703536.545580,5663,031,503
199452554148,983149,116435.316479,0663,076,876
199548741134,537248,408455,370587,3983,169,899
199644458127,231129,773542,619690,5423,143,609

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 AND GENERAL INSURANCE STATISTICAL SUMMARY

Statistical ItemLife insuranceGeneral insurance
1993-941994-951993-941994-95
Source: Statistics New Zealand
 $(m)$(m)$(m)$(m)
Sales of goods and services1,968.31,931.01,369.51,500.2
Premiums and contributions received—net of reinsurance1,719.91,652.51.295.91,442.3
Transfers from reservesC119.26.55.3
All other operating incomeC159.367.052.5
Interest, dividends, donations, royalties, patent fees, insurance claims received and bad debts recovered580.9570.7100.1131.8
Interest received455.1428.989.597.8
Dividends receivedCC10.5C
Other property incomeCC0.1C
Other income including extraordinaries814.3679.823.316.3
        Total income3,363.53,181.51,492.91,648.3
Salaries and wages paid to employees116.2115.8147.3162.9
Redundancy and severance3.3C0.20.6
Salaries and wages to self employed commission agents93.8116.354.6C
Salaries and wages to working proprietors (SW to WPs)....C0.00.4
Levies paid to accident compensation corporation1.01.31.51.6
Employer contributions to superannuation schemes13.112.06.67.7
Fringe benefit tax4.4C3.94.2
Purchases and other operating expenses2,019.62,138.41,008.41,141.5
Claims and benefits paid1,354.21,474.3791.3884.1
Transfers to reservesCC1.41.6
All other operating expenses334.9317.0215.6255.8
Interest, donations, grants, royalties and patent fees paid and bad debts written off28.216.50.70.9
Interest paidCC0.50.5
Other property expensesCC0.20.4
Indirect taxes (excl Fringe Benefit Tax)7.05.91.61.3
Depreciation19.616.324.1C
Other expenses including extraordinaries282.9589.921.383.6
        Total expenditure2,585.83,016.61,269.91,467.1
Net profit before extraordinaries, SW to WPs246.4C221.1248.9
Net profit before tax, SW to WPs777.7C223.0181.6
Purchases of plant, machinery, vehicles & equipment16.815.021.742.1
Purchases of land and land improvementsCC-0.4
Purchases of buildings and other constructionCC11.06.7
Total purchases of fixed tangible assets17.317.232.649.2
Sales of fixed tangible assets33.744.939.014.0
Shareholders funds or owners equity10,958.610,900.8928.7989.6
Other liabilities1,021.2962.11,328.81,423.1
Total capital and liabilities11,979.811,862.92,257.52.412.8
Fixed tangiblessets248.7201.5160.0154.5
Other assets11,731.111,661.42,097.52,258.3
        Total assets11,979.811,862.92,257.52,412.8
Funds at the beginning of the year9,684.410,204.9--
Funds at the end of the year10,461.910,381.4
Ratios1993-941994-951993-941994-95
Total income per full-time equivalent$901,018$860,690$282,773$349,689
Net profit per full-time equivalent$66,004C$41,871$52,801
Return on equity2.2%C23.8%25.1%
Return on total assets2.1%C9.8%10.3%
Liabilities structure91.5%91.9%41.1%41.0%

For more information refer to Business Activity Statistics 1996.

Saturday trading in New Brighton, Christchurch, 1957. In the years when weekend trading was prohibited, New Brighton, as a seaside suburb, enjoyed a special dispensation and attracted up to 15,000 shoppers on Saturdays. This changed with the coming of general Saturday shopping in the early 1980s.

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 1996 were:

  • Total actual retail sales increased by 4.0 percent to $37,787 million compared with $36,348 million in the year ended March 1994.

  • The most significant increases were recorded by cafes, restaurants and takeaways, up 15.8 percent; motor vehicle retailing, up 8.0 percent; motor vehicle services, up 7.8 percent; and chemists, up 7.6 percent.

  • Storetypes showing the largest decreases were: hardware, down 4.7 percent; furniture and floor covering, down 4.0 percent; and clothing and softgoods, down 3.2 percent.

Table 24.1. ANNUAL ACTUAL RETAIL SALES

StoretypeActual retail sales—March year
19921993199419951996
Source: Statistics New Zealand
 $(million)
Food retailing6,929.77,143.47,305.97,757.87,877.8
Footwear265.6249.3255.2252.9246.2
Clothing and softgoods1,382.91,387.41,404.91.440.31,394.3
Furniture and floor coverings662.5721.7861.4997.2957.4
Appliance retailing930.91,030.11,202.01,347.81,367.9
Hardware642.4696.7734.0768.2732.4
Chemist896.6926.9963.1996.71.0726
Department1,291.81,453.41,725.71,835.41,838.7
Recreational goods961.31,047.31,153.81,346.51,414.0
Accommodation, hotels and liquor2,863.22,905.63,022.03.320.13,372.2
Cafes, restaurants and takeaways1,455.71,550.41.698.41.940.22,247.2
Personal and household services736.7717.5816.5930.7963.5
Other stores2,023.61,955.92,033.22,097.82.092.1
        Subtotal21,042.721,785.623,176.125,031.725,576.3
Motor vehicle retailing4,723.45,337.95,953.76,662.87,196/4
Motor vehicle services4,006.04,195.04,395.74,653.95,014/6
        Total all stores29,772.231,318.533,525.636,348.437,787.3

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)
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
199612,585.33,593.44,479.48,141.328,799.34,907.64,080.38,987.937,787.3

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.

RETAIL TRADETotal sales

The DIC Building, Christchurch. DIC, the Drapery and General Importing Company, grew from Dunedin to become a nation-wide chain of stores, now no longer existing.

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)
1994 Mar8,382.7R8,588.0R8,664.4R8,633R2,372R2,431R2,542.3R3,220.1R
Jun8,591.5R8,862.3R8,926.3R8,851R2,433R2,520R2,537.8R3,261.4R
Sep8,814.8R9,058.8R9,115.4R9,063R2,514R2,583R2,599.6R3,299.7R
Dec9,937.9R9,195.0R9,216.1R9,180R2,801R2,591R2,597.2R3,410.7R
1995 Mar8,004.2R9,216.6R9,216.6R9,247R2,512R2,571R2,571.0R3,400.8R
Jun9,058.1R9,343.3R9,315.1R9,303R2,539R2,619R2,611.3R3,402.5R
Sep9,110.3R9,354.1R9,348.4R9,350R2,560R2,629R2,627.0R3,421.5R
Dec10,132.0R9,397.1R9,453.7R9,462R2,807R2,604R2,619.3R3,618.4R
1996 Mar9,486.99,696.69,740.39,6592,6392,6972,709.03,641.2

Table 24.13. RETAIL STOCKS BY STORETYPE*

StoretypeRetail stocks—March year
199419951996

* Figures are exclusive of GST.

Source: Statistics New Zealand

 $(million)
Food retailing293.2294.6307.1
Footwear72.073.470.2
Clothing and softgoods287.2303.3299.3
Furniture and floor coverings133.3136.0134.1
Appliance retailing183.0191.4200.0
Hardware151.8157.8174.6
Chemist110.5120.1124.4
Department333.2349.1385.5
Recreational goods227.0284.9290.0
Accommodation, hotels and liquor123.8124.9130.9
Cafes, restaurants and takeaways36.035.940.0
Personal and household services27.630.335.3
Other stores325.0320.0337.2
        Subtotal2,303.502,421.602,528.5
Motor Vehicle Retailing754.3808.8912.2
Motor Vehicle Services159.1169.3200.5
        All stores—total3,216.903,99.603,641.2

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.

Table 24.14. VALUE OF CREDIT CARD SALES

Calendar yearBillings
Total advances outstanding*N.Z. cardholders spending in New ZealandN.Z. 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
19911,27.83,446.5294.33,740.8
19921,055.73,780.2311.34,091.5
19931,129.23,118.9598.54,124.2
19941,289.53,682.9707.54,743.1
19951,481.74,057.3883.55,307.3
19961,726.44,764.21,055.16,173.5

CREDIT CARD USETotal advances outstanding

The Hire Purchase Act 1971 is the governing legislation in New Zealand. Regulations to control hire-purchase trade, including limits on minimum deposit and the maximum period of credit, were removed in September 1983.

The Credit Contracts Act 1981 reformed the law relating to the provision of credit under contracts of various kinds. Included in the act are provisions which prevent oppressive contracts, and ensure the disclosure of the cost of credit on a uniform basis.

Credit card sales. 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.

Contributors

  • 24.1 Ministry of Commerce; Ministry of Consumer Affairs; Consumers' Institute; Department of Labour; Ministry of Justice.

  • 24.2 Ministry of Justice; Ministry of Commerce; Commerce Commission; 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; Ministry of Commerce; Commerce Commission; Serious Fraud Office; Insurance and Savings Ombudsman.

Further information

Controls on trading

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

Report of the Ministry of Commerce (Parl paper G.46).

Report of the Licensing Control Commission (Parl paper E.8).

Commercial framework

Current Issues in New Zealand Competition and Consumer Law. Commerce Commission (series).

Report of the Commerce Commission (Parl paper G.34).

Report of the Department of Justice (Parl paper E.5).

Report of the Securities Commission (Parl paper E.25).

Report of the Law Commission (Parl paper E.31f).

Report of the Serious Fraud Office (Parl paper E.40).

Insurance and superannuation

Economy Wide Census: Finance, Insurance and Business Services 1987. Department of Statistics.

Report of the Earthquake and War Damage Commission (Parl paper B.11).

Report of the Government Superannuation Board (Parl paper B.20).

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

Frozen lamb exports at the wharf in 1970—carcases transferred by hand from a railway wagon into a rope sling for lifting aboard.

New Zealand relies heavily upon overseas trade. New Zealand's largest export markets, in the June 1996 year, were Australia (20.3 percent), the European Union (16.4 percent), Japan (15.9 percent) and the United States of America (9.1 percent). Imports have been steadily increasing since the June 1991 year. Australia, the United States of America, Japan and the United Kingdom are New Zealand's major suppliers. Germany, China and Italy have shown strong growth in the past two years. Recently New Zealand has attempted to diversify its trading markets so as not to be too dependent upon our four major trading partners. That has seen increased trade with the Middle East, Europe and Asia.

25.1 Development and administration of trade

Tradenz (New Zealand Trade Development Board)

Tradenz is the commercial name for the New Zealand Trade Development Board. Established in 1988, 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 has nine New Zealand regional offices—Wellington, Auckland, Hamilton, Tauranga, Napier, Palmerston North, Nelson, Christchurch and Dunedin—and an international network of more than 45 offices in localities of key importance to New Zealand exporters.

Tradenz trade commissioners around the world can recommend appropriate marketing strategies and identify contacts such as importers, distributors and retailers. They can also monitor markets, carry out market research, determine tariffs, taxes, labelling requirements and product standards, and investigate competing products and services. Visit programmes and interpreters can be arranged and promotion, trade fair and seminar work supported.

The Tradenz onshore network covers the spectrum of exporter service requirements: from information on educational activities such as market seminars, to networking opportunities with other exporters and referrals to sources of finance and potential investors. The core service is working with companies to achieve their goals through thorough and comprehensive planning and market research.

Recognising the special needs of new and emerging exporters, Tradenz established a New and Regional Exporter Team two years ago, dedicated to assisting these companies into overseas markets, and improving the delivery of Tradenz services to regional centres throughout the country.

The Māori Enterprise team/Te Roopu Hinonga Māori works with Māori companies and organisations to develop their resources into valuable export ventures.

Tradenz works with exporters at the group as well as individual exporter level. As a nation of small- to medium-sized companies, better and more cost-effective results can often be achieved through ‘collective’ effort on specific projects. Tradenz promotes the concept of “co-operating to compete”—in particular through industry joint action groups (JAGs), Hard Business Networks (HBNs) and clusters.

More than 30 JAGs have been established to date and in many cases their efforts have resulted in large increments of foreign exchange earnings being achieved, beyond what companies could have achieved individually. Some of the industry sectors that Tradenz works with through the JAG programme include telecommunications, seafood, organics, wine, engineering and construction.

Another level of business relationship is the Hard Business Network (HBN)—a profit-orientated alliance between a small group of companies, often within the same region, formed to focus on joint action to improve efficiency or develop new opportunities. The HBN programme is a joint venture between Tradenz, Business Development Boards and local development agencies.

Tradenz is also encouraging the development of localised clusters of competitive and complementary businesses in regions. Professor Michael Porter, in the 1991 Tradenz-sponsored Porter Project, identified the significance of local clusters as export and wealth generators. He strongly recommended that clusters should form the basis for regional development strategies in New Zealand. Successful examples of international clusters include Silicon Valley in the United Sates, and Montebelluna, a community of 25,000 people in Italy that produces 65 percent of the world's ski boots. Clusters in New Zealand are embryonic, but include the deep sea fishing industry in Nelson and the marine industry in Auckland.

Other aspects of Tradenz' activities include strategic development work, technology initiatives, trade fair promotions and an export awards programme.

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 was 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:

NumberStatistical KeyGoodsRates of Duty
CodeUnitNormal TariffPreferential Tariff
2008.60  Cherries:  
2008.60.0100FkgCooked and preserved by freezing,
not containing added sugar
 Au Free
    8.5CA Free
    7/977.5LDC
    7/986.57
    7/9957/976
     7/985
     7/994
     LLDC Free
     Pac Free

The left hand columns give identification and statistical codes for the category and sub-category of goods in the example, the middle column gives the relevant description, and the two right hand columns give the normal and preferential rates of duty. For the specific item, cooked and preserved cherries, the standard duty is 8.5 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 7 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.

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 New Zealand Customs Service at the time of importation. The GST rate effective from 1 July 1989 is 12.5 percent.

Border operations

The New Zealand Customs Service 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.

The Customs Department's drug detection dog at work in the international parcels depot, Wellington, in 1974. Watching are visiting customs officers from Fiji, Tonga, Cook Islands, Niue and Western Samoa.

Customs seeks to ensure a safe and secure border within minimum intervention to legitimate trade and travel. To achieve this the Service employs risk management techniques to monitor and assess the risk of arriving and departing persons, craft and goods.

Border operations involve three main activities:

  • Checking and clearance of passengers and craft and airports and sea ports;

  • Surveillance and search for prohibited items;

  • Investigation of Customs offences and related items.

Underpinning these programmes is the collection and processing of intelligence on potential breaches of legislation the Customs Service enforces.

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 New Zealand Customs Service 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.

Table 25.1. OVERSEAS MERCHANDISE TRADE

Year ended JuneExports* (fob)Imports (cif)Balance of merchandise trade
*Includes re-exports.
 $(million)
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
199520,784.921,260.9−476.0
199620,549.521,352.5−803.0

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 total import value from the total export value for the same period. An excess of exports over imports is a ‘surplus’ normally indicated by a positive number. Conversely, a ‘deficit’ occurs when imports exceed exports and is normally indicated by a negative sign, or parentheses around the value.

OVERSEAS MERCHANDISE TRADE

MAJOR COMMODITIES
Exports

FLOWER EXPORTS
By variety

In the June 1996 year, New Zealand had a balance of merchandise trade deficit of $631.5 million, compared to the $336.0 million deficit for 1995. The larger deficit is a result of a 1.0 percent fall in the value of exports and a 0.4 percent rise in the value of imports.

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 1996 year totalled $20,549.5 million, 1.1 percent lower than the June 1995 year total of $20,924.9 million. Increases in paper and paperboard (up 21.1 percent), mineral fuels (up 12.0 percent), fruit and nuts (up 11.2 percent) and works of art (up 11.1 percent) were offset by decreases in organic chemicals (down 54.4 percent), wool and animal hair (down 16.8 percent), vegetables (down 9.2 percent) and wood and wood articles (down 6.9 percent). New Zealand's two largest commodities, dairy products and meat and edible offal, rose 8.5 and 1.6 percent respectively. Exports of mechanical machinery rose fractionally (up 0.0 percent), while exports of aluminium and articles fell (down 5.9 percent).

Table 25.2. MAJOR COMMODITIES EXPORTED*

CommodityValue of exports† (fob)Percentage of total exports† (fob)
199119951996199119951996

*Year ended June.

Includes re-exports.

 $(million) 
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei2,014.92,758.12,998.112.813.314.6
Meat and edible meat offal2,588.32,613.62,655.316.412.612.9
Wood and articles of wood; wood charcoal798.61,645.71,531.45.17.97.5
Fish and crustaceans, molluscs and other aquatic invertebrates748.41,117.81,147.44.75.45.6
Wool, fine or coarse animal hair; horsehair yarn and woven fabric1,051.31,340.31,115.66.76.45.4
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof577.7854.9855.23.74.14.2
Fruit and nuts, edible; peel of citrus fruit or melons791.8735.6817.85.03.54.0
Aluminium and articles thereof779.8868.3817.34.94.24.0
Raw hides and skins (other than furskins) and leather559.5665.0728.83.53.23.5
Albuminoidal substances; modified starches; glues; enzymes465.7591.6649.63.02.83.2
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders263.6511.4532.31.72.52.6
Paper and paperboard; articles of paper or paperboard368.2436.2528.02.32.12.6
Pulp of wood or other fibrous cellulosic material398.0499.6477.12.52.42.3
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes576.5333.5373.43.71.61.8
Natural or cultured pearls, precious, semi- precious stones, precious metals, imitation jewellery; coin119.5322.9312.20.81.61.5
Vegetables and certain roots and tubers; edible195.8319.6290.31.21.51.4
Works of art; collectors' pieces and antiques325.6253.8282.02.11.21.4
Organic chemicals149.7599.9273.80.92.91.3
Animal originated products; nei208.8262.0273.61.31.31.3
Plastics and articles thereof138.2270.7272.80.91.31.3
Other nei2,648.63,784.53,617.516.818.217.6
        Total exports15,768.420,784.920,549.5100.0100.0100.0

Meat and edible offal

In the June 1996 year exports of meat and edible offal rose 1.6 percent to $2,655.3 million, 12.8 percent of total exports. This follows a 9.1 percent fall in the June 1995 year.

Table 25.3. MEAT AND EDIBLE OFFAL EXPORTS*

Product1986199119951996

*Year ended June.

Includes re-exports.

 $(million)
Beef691.81,283.81,160.81,053.7
Sheep934.31,149.61,196.71,337.0
Goat1.04.94.64.4
Offal86.5147.2245.4254.8
Other3.02.85.75.5
        Total meat and edible offal exports1,716.62,588.32,613.22,655.3
Percentage contribution to total exports16.216.412.612.9

A 9.2 percent fall in the value of beef exports (down $107.2 million) was offset by an 11.7 percent rise in the export of sheep meat (up $ 140.3 million). The United States of America received the largest amount of New Zealand's meat and edible offal exports at $521.8 million, down $126.4 million from the June 1995 year. The United Kingdom and Germany, New Zealand's next two largest single markets, both rose 10.3 and 19.3 percent respectively.

Other increases were recorded for the Islamic Republic of Iran (up $45.1 million) and Japan (up $12.8 million). Markets in Asia were dominated by Japan at $207.0 million, the Republic of Korea ($84.4 million), Taiwan ($79.5 million) and Hong Kong ($47.9 million).

Table 25.4. DESTINATION OF MEAT AND EDIBLE OFFAL EXPORTS*†

Country1986199119951996

*Year ended June.

Includes re-exports.

 $(million)
Belgium15.039.474.685.1
Canada92.7143.0150.1151.7
France27.589.1126.1129.8
Germany48.3120.2204.6244.1
Greece28.837.434.527.2
Hong Kong20.330.050.047.9
Iran, Islamic Republic of202.555.3-45.1
Italy21.135.529.031.7
Japan109.6169.9194.1207.0
Korea, Republic of15.866.396.684.4
Malaysia9.215.633.144.1
Netherlands7.126.128.837.7
Papua New Guinea14.218128025.0
Saudi Arabia22.134.343.647.5
Singapore19.224.032.337.8
Sweden0.47.525.227.5
Switzerland10.526.637.742.8
Taiwan, Province of China18.056.083.479.5
United Kingdom299.0371.2386.0425.7
United States of America539.9923.3648.2521.8
Other countries195.4299.3307.2311.9
        Total meat and edible offal exports1,716.62,588.32,613.22,655.3

Dairy produce

In the June 1996 year dairy produce worth $2,982.2 million was exported, an increase of 8.5 percent from the $2,747.5 million exported in the June 1995 year.

Milk and cream, butter and cheese are the major dairy commodities exported. All of those commodities rose in the June 1996 year, by 5.5, 18.5 and 2.1 percent respectively. Cheddar was the largest cheese item exported in the June 1996 year, valued at $234.1 million.

New Zealand dairy produce is sold all over the world to a vast range of countries. The top export markets are the United Kingdom ($367.8 million) and Malaysia ($242.0 million). Other destinations included Japan ($225.0 million), Mexico ($121.9 million), Peru ($90.4 million), Sri Lanka ($82.9 million) and Iran ($76.8 million).

DAIRY PRODUCE EXPORTS

FOREST PRODUCE EXPORTS

Table 25.5. DAIRY PRODUCE EXPORTS*†

Product1986199119951996

*Year ended June.

Includes re-exports.

 $(million)
Milk and cream529.11,047.91,335.21,408.2
Buttermilk and yoghurt29.350.269.672.7
Whey and other products6.410.112.223.5
Butter538.8542.1725.9860.4
Cheese and curd267.2358.0604.5617.4
        Total dairy produce exports1,370.72,008.32,747.52,989.2
Percentage contribution to total exports13.012.713.214.5

Table 25.6. DESTINATION OF DAIRY PRODUCE EXPORTS*†

Country of destination1986199119951996

*Year ended June.

Includes re-exports.

 $(million)
Algeria59.5173.997.525.3
Australia25.764.0109.7133.2
Belgium-6.825.744.9
Indonesia43.146.166.883.2
Iran, Islamic Republic of66.033.720.876.8
Japan64.6159.5189.2225.0
Korea, Republic of1.32.724.419.4
Malaysia67.3161.8206.3242.0
Mexico27.999.7102.0121.9
Peru34.236.886.490.4
Philippines40.578.7113.8104.5
Russia--95.9145.2
Saudi Arabia31.261.874.678.2
Singapore23.240.838.445.3
Sri Lanka32.833.474.782.9
Taiwan, Province of China29.965.9165.4141.4
Thailand21.659.184.792.6
United Kingdom287.5260.3420.8367.8
United States of America93.354.372.580.1
Venezuela32.286.492.066.1
Other countries388.9482.7585.9715.8
        Total dairy produce exports1,370.72,008.32,747.52,982.2

Forestry products

Forestry products exported in the June 1996 year totalled $2,536.5 million, a decrease of $45.0 million from the June 1995 year. This decrease resulted from a 23.4 percent fall in the value of sawn wood exports and a 14.7 percent fall in boards, countering a 21.1 percent rise in the value of paper and paperboard and a 7.7 percent rise in rough wood, the largest forestry products commodity, valued at $669.4 million.

Table 25.7. FORESTRY PRODUCT EXPORTS*†

Product1986199119951996

*Year ended June.

Includes re-exports.

 $(million)
Wood pulp, etc.221.5398.0499.6477.1
Paper and paperboard245.3368.2436.2528.0
Wood (rough)40.3338.1621.4669.4
Wood (sawn)110.7208.8486.4372.4
Board (fibre, veneer, plywood)23.4179.2413.9353.2
Other86.472.4124.0136.5
        Total forestry products exports727.61,564.82,581.42,536.5
Percentage contribution to total exports6.99.912.412.3

New Zealand's two largest destinations of forestry products, Japan ($757.9 million) and Australia ($669.8 million), both showed decreases in the June 1996 year, of 2.6 and 5.5 percent respectively. The Republic of Korea, the third largest destination for forestry products showed a 15.5 percent increase to $429.1 million in the June 1996 year.

Table 25.8. DESTINATION OF FORESTRY PRODUCT EXPORTS*†

Country1986199119951996

*Year ended June.

Includes re-exports.

 $(million)
Australia321.1484.9740.4699.8
China, Peoples Republic of16.246.226.430.1
Hong Kong19.539.068.380.6
Japan190.8454.6777.8757.9
Korea, Republic of20.8163.3371.5429.1
Singapore7.728.629.629.9
Taiwan, Province of China12.992.9145.198.2
United States of America13.310.6127.5114.6
Other countries125.3244.6294.8296.3
        Total forestry products exports727.61,564.82,581.42,536.5

Fish, crustaceans and molluscs

Exports of fresh, chilled, frozen, and live fish, crustaceans and molluscs rose 2.6 percent to $1,147.4 million in the June 1996 year. Major fish commodities were orange roughy ($137.9 million), hoki ($123.2 million) and snapper ($48.0 million); they all showed falls in the June 1996 year, of 15.7, 3.9 and 15.2 percent respectively. Exports of squid (included in the Molluscs category) also fell (10.8 percent) to $133.7 million, while exports of crustaceans rose 4.0 percent to $136.8 million. Exports of crayfish made up 78.8 percent of total crustacean exports in the June 1996 year.

Total exports of fish, crustaceans and molluscs including prepared and preserved fish, crustaceans and molluscs rose 1.7 percent in the June 1996 year to $1,219.3 million compared to $1,198.7 million in the June 1995 year. Exports to Taiwan showed a 36.4 percent increase to $65.7 million, and to Japan rose 15.8 percent to $374.3 million in the June 1996 year, while exports to the United States of America, which have been falling since their peak in the June 1992 year, decreased 14.5 percent to $229.1 million.

Table 25.9. FISH, CRUSTACEAN AND MOLLUSC EXPORTS*†

Product1993199419951996

*Year ended June.

Includes re-exports.

Fresh, chilled, frozen and live$(million)
Orange roughy181.8184.1163.7137.9
Snapper61.556.756.648.0
Hoki170.8139.8128.2123.2
Surimi43.425.812.421.5
Crustaceans114.8129.0131.6136.8
Molluscs140.6210.1268.4259.8
Other fish360.5367.6356.9420.0
        Total fresh, chilled and frozen1,073.41,113.01,117.81,147.4
Preserved and prepared
Fish36.132.336.825.0
Crustaceans and molluscs48.161.644.146.9
        Total preserved and prepared84.293.980.971.8
        Total fish, crustaceans and mollusc exports1,157.61,206.91,198.71,219.3
Percentage contribution to total exports6.16.15.85.9

Table 25.1. DESTINATION OF FISH, CRUSTACEAN AND MOLLUSC EXPORTS*†

Country1993199419951996

*Year ended June.

Includes re-exports.

 $(million)
Australia121.6129.0139.5133.8
Japan365.6344.3323.1374.3
Spain21.537.238.039.5
Taiwan, Province of China27.539.848.165.7
Thailand26.020.019.716.5
United Kingdom18.215.715.313.8
United States of America294.7290.9268.0229.1
Other countries282.4330.0347.1346.7
        Total fish, crustaceans and molluscs exports1,157.61,206.91,198.71,219.3

Wool, hair and yarn

Exports of wool, hair and yarn decreased 16.8 percent to $1,115.6 million in the June 1996 year, compared to the $1,340.3 million recorded in the June 1995 year. Wool, hair and yarn contributed 5.4 percent to New Zealand's total merchandise exports, compared with 6.4 percent in the June 1995 year and 13.1 percent in the June 1986 year.

Table 25.11. DESTINATION OF WOOL, HAIR AND YARN EXPORTS*†

Country1986199119951996

*Year ended June.

Includes re-exports.

 $(million)
Australia132.791.8122.395.2
Belgium66.869.363.043.2
China, Peoples Republic of148.690.8313.9298.0
Germany76.671.7101.477.6
Hong Kong31.819.3136.9104.3
India15.575.540.540.9
Italy56.052.649.037.4
Japan127.8131.282.153.4
Korea, Republic of36.829.29.68.2
Nepal0.739.337.347.9
Turkey7.018.227.527.9
United Kingdom157.983.596.885.2
United States of America65.050.259.050.1
Other countries465.5228.8200.9146.1
        Total wool, hair and yarn exports1,388.91,051.31,340.31,115.6
Percentage contribution to total exports13.16.76.45.4

SEAFOOD EXPORTS
Fresh, chilled, frozen and live

WOOL EXPORTS
By country

FRUIT EXPORTS
By variety

FRUIT EXPORTS
By country

China, New Zealand's largest destination for wool, hair and yarn exports, showed a decrease of $15.9 million. Decreases were shown for Hong Kong (down $32.6 million), Japan (down $28.7 million), Australia (down $27.1 million), Germany (down $23.8 million) and Belgium (down $19.8 million). Of the top ten export destinations for wool, hair and yarn only Nepal and India showed increases, up $10.6 million and $0.4 million respectively.

Fruit and nuts

Fruit and nuts were valued at $817.8 million in the June 1996 year, 11.2 percent higher than the figure of $735.6 million recorded in the June 1995 year. Fresh kiwifruit valued at $407.0 million was the largest commodity exported, an increase of 26.9 percent on the June 1995 year. Fresh apples were the second largest commodity exported in the June 1996 year, valued at $338.6 million, up 0.3 percent on the figure recorded in the June 1995 year. Braeburn was New Zealand's most popular export apple variety in the June 1996 year, valued at $120.2 million, up 3.3 percent. Royal Gala was the second largest export variety, valued at $106.8 million, up 20.1 percent. Of all the other apple varieties exported, Gala was the only one to show an increase in the June 1996 year, up 3.3 percent.

Table 25.12. FRUIT AND NUT EXPORTS*†

Product1986199119951996

*Year ended June.

Includes re-exports.

 $(million)
Kiwifruit, fresh294.4437.7320.8407.0
Apples, fresh115.0297.3337.7338.6
Berries35.410.514.215.8
Pears2.57.915.39.8
Nuts0.10.10.60.7
Other33.738.249.544.1
        Total fruit and nut exports481.1791.8735.6817.8
Percentage contribution to total exports4.65.03.54.0

The major country destinations for New Zealand's fruit and nuts were Japan at $113.1 million (up 22.4 percent), the United Kingdom at $96.1 million (up 10.5 percent) and the United States of America at $59.3 million (down 5.8 percent). A significant proportion of New Zealand fruit exports are sold to the European Union (EU) on consignment. Those exports sold on consignment are classified to either ‘Destination unknown EU’ or ‘Destination unknown not EU’. In the June 1996 year, $343.4 million was classified as ‘Destination unknown EU’.

Table 25.13. DESTINATION OF FRUIT AND NUT EXPORTS*†

Country1986199119951996

*Year ended June.

Includes re-exports.

 $(million)
Australia23.541.843.440.8
Hong Kong4.57.025.235.3
Japan98.7140.292.4113.1
Singapore5.810.919.720.9
Taiwan, Province of China2.98.819.020.5
United Kingdom29.581.586.996.1
United States76.4103.362.959.3
EU—Destination Unknown45.1333.4307.6343.4
Other countries194.964.778.688.4
        Total fruit and nut exports481.1791.8735.6817.8

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 1996 year were valued at $21,352.5 million, an increase of 0.4 percent or $91.6 million over the June 1995 year total of $21,260.9 million.

Table 25.14. MAJOR COMMODITIES IMPORTED*

CommodityValue of imports (cif)Percentage of total imports (cif)
199119951996199119951996
*Year ended June.
 $(million) 
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof2,159.63,293.43,574.314.115.516.7
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof1,511.12,724.92,755.39.912.812.9
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders1,826.72,141.92,227.911.910.110.4
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes1,276.81,129.31,291.68.35.36.0
Plastics and articles thereof632.2962.8929.44.14.54.4
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus485.7648.5656.13.23.13.1
Paper and paperboard; articles of paper or paperboard373.5565.3596.82.42.72.8
Pharmaceutical products399.9511.5551.02.62.42.6
Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radioactive elements and isotopes420.5399.1409.22.71.91.9
Iron and steel256.9397.9390.61.71.91.8
Iron or steel articles238.7313.2372.51.61.51.7
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans271.2342.0326.61.81.61.5
Organic chemicals210.7328.0311.81.41.51.5
Aircraft, spacecraft and parts thereof634.31,089.3301.64.15.11.4
Rubber and articles thereof188.0274.4295.01.21.31.4
Chemical products nes189.4252.7265.51.21.21.2
Fertilizers65.5201.0251.40.40.91.2
Apparel and clothing accessories; not knitted or crocheted128.2211.0236.20.81.01.1
Toys, games and sports requisites; parts and accessories thereof133.1194.8234.10.90.91.1
Aluminium and articles thereof178.5242.3215.01.21.11.0
Other nei3,744.85,037.85,160.724.423.724.2
        Total imports15,325.121,260.921,352.5100.0100.0100.0

Mechanical and electrical machinery

Machinery imports, electrical and mechanical, totalled $5,802.2 million in the June 1996 year; this is a 6.8 percent increase on the June 1995 year figure of $5,435.3 million. The major machinery commodities imported in the June 1996 year were computer equipment ($738.1 million), line telephone apparatus ($341.7 million), parts and accessories for typewriters, calculators and automatic data processors ($319.7 million) and records, tapes, etc. ($210.9 million).

The United States of America is the largest supplier of machinery arriving in New Zealand, supplying 28.6 percent ($1,659.4 million). Japan supplied 12.8 percent ($745.5 million) and Australia 11.6 percent ($675.0 million). In the June 1996 year the United States and Australia rose in value, 12.7 and 13.9 percent, while Japan fell 14.0 percent. Other significant rises were Canada (up 100.5 percent), Italy (up 25.6 percent) and Malaysia (up 17.6 percent).

Table 25.15. MAJOR SUPPLIERS OF MECHANICAL AND ELECTRICAL MACHINERY*

Country1993199419951996
*Year ended June.
 $(million)
Australia482.0495.9592.8675.0
Canada48.361.557.8115.9
China, Peoples Republic of57.381.8111.1127.2
Germany231.9275.3338.7391.7
Italy119.5160.7178.7224.6
Japan728.2848.9867.1745.5
Malaysia70.494.2134.3158.0
Singapore140.3179.1231.8224.0
Sweden98.6128.8160.2161.9
Taiwan, Province of China184.5219.8265.5239.9
United Kingdom293.1317.7366.9300.1
United States of America1,137.51,305.81,472.71,659.4
Other countries578.1575.0657.6778.9
        Total machinery imports4,169.84,744.45,435.35,802.2
Percentage contribution to total imports24.125.725.627.2

MAJOR COMMODITIES
Imports

VEHICLE IMPORTS
Quantity

Vehicles

Vehicle imports increased 1.1 percent to $2,755.3 million in the June 1996 year, an increase of $30.4 million from the June 1995 year figure of $2,724.9 million. Passenger motor cars were the largest commodity grouping imported in the June 1996 year, totalling 168,850 vehicles and valued at $1,802.0 million.

Japan was the largest supplier of vehicles to New Zealand. During the June 1996 year Japan supplied 95.6 percent of the total number of used car imports and 56.5 percent of the total number of new car imports.

Table 25.16. VEHICLE IMPORTS*

Commodity19911996
$(million)Quantity$(million)Quantity
*Year ended June.
Total car imports
Unassembled—new336.733,385422.732,473
Assembled—new362.722,716807.435,268
Assembled—used216.068,294571.9101,109
        Total cars915.5124,3951,802.0168,850
Car imports from Japan
Unassembled—new248.230,219409.731,682
Assembled—new130.611,009135.96,569
Assembled—used195.966,813511.596,704
        Total cars from Japan610.6108,0411,057.0134,955

Mineral fuels

Imports of mineral fuels in the June 1996 year were valued at $1,291.6 million, a 14.4 percent increase on the June 1995 year value. Imports of crude petroleum fell by 2.0 percent to $813.8 million in the June 1996 year, while imports of non-crude petroleum rose 58.1 percent to $408.9 million. Crude petroleum makes up 63.0 percent, by value, of all mineral fuel imports.

Over the past decade suppliers of mineral fuels to New Zealand have changed. In the June 1986 year major suppliers were Singapore ($357.1 million), Australia ($283.6 million), Saudi Arabia ($227.3 million) and Bahrain ($116.2 million), while in the June 1996 year the major suppliers were Australia ($421.1 million), Saudi Arabia ($315.3 million), Malaysia ($149.9 million) and Indonesia ($80.3 million).

Table 25.17. MINERAL FUEL IMPORTS*

Commodity1986199119951996
*Year ended June.
 $(million)
Crude petroleum226.2954.9830.6813.8
Non-crude petroleum1,074.4256.3258.6408.9
Coal, coke, briquettes, etc52.557.432.560.4
Other6.28.27.58.5
        Total mineral fuel imports1,359.31,276.81,129.31,291.6
Percentage contribution to total imports11.98.35.36.0

Table 25.18. MINERAL FUEL SUPPLIERS*

Country1986199119951996
*Year ended June.
 $(million)
Australia283.6181.0232.4421.1
Bahrain116.2---
Indonesia134.260.858.780.3
Malaysia-30.518.4149.9
Oman-97.936.377.4
Saudi Arabia227.3519.2257.3315.3
Singapore357.155.161.661.9
United Arab Emirates-193.2213.645.8
United States of America92.798.537.751.0
Other148.340.6213.388.9
        Total mineral fuel imports1,359.31,276.81,129.31,291.6

Plastics and plastic articles

New Zealand imported $929.4 million of plastics and plastic articles in the June 1996 year compared with $962.8 million in the June 1995 year. Over the last 10 years imports of plastics and plastic articles have nearly doubled (up 95.2 percent).

The two major suppliers of plastics and plastic articles to New Zealand are Australia ($218.9 million) and the United States of America ($209.9 million). Collectively they supply New Zealand with 46.1 percent of total plastics and plastic articles imports. Other suppliers include Japan ($64.4 million), Germany ($59.9 million) and the United Kingdom ($56.4 million).

Table 25.19. PLASTICS AND PLASTIC ARTICLES IMPORTS*

Country1986199119951996
*Year ended June.
 $(million)
Australia79.7144.4227.8218.9
Germany37.832.558.159.9
Japan65.360.283.464.4
Korea, Republic of3.210.049.644.5
Netherlands25.716.524.927.8
Taiwan, Province of China14.129.643.644.5
United Kingdom45.644.357.456.4
United States of America115.7165.3213.7209.9
Other countries89.1129.4204.3202.9
            Total plastics and plastic articles imports476.1632.2962.8929.4
Percentage contribution to total imports4.24.14.54.4

MAJOR TRADING PARTNERS
1996

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 39.1 percent of all New Zealand's exports, an increase of 0.6 percent over 1995. Imports from Asia made up 29.3 percent of New Zealand's imports, a decrease of 0.2 percent.

Table 25.2. TRADE BY GEOGRAPHICAL REGION AND COUNTRY

CountryExports (fob)Imports (cif)
199119951996199119951996
 $(million)
Oceania and Antarctica:
Australia
Australia2,937.44,342.44,207.03,117.24,443.64,964.0
Percentage of total exports/imports18.620.920.520.320.923.2
Australian External Territories
Norfolk Island6.65.85.3
Percentage of total exports/imports
New Zealand
New Zealand (re-imports)---105.786.798.0
Percentage of total exports/imports---0.70.40.5
Melanesia
New Caledonia43.172.580.40.30.10.3
Papua New Guinea76.484.583.08.8144.853.2
Solomon Islands12.119.115.11.10.70.9
Vanuatu11.716.311.90.10.20.4
            Total for Melanesia143.3192.4190.410.2145.854.9
Percentage of total exports/imports0.90.90.90.10.70.3
Micronesia
Federated States of Micronesia0.10.80.3-
Guam13.312.78.90.1
Kiribati3.84.94.8
Marshall Islands1.61.21.0-
Nauru3.22.91.421.231.929.6
Northern Mariana Islands1.11.00.9-
Palau0.1--
            Total for Micronesia23.123.517.521.232.129.7
Percentage of total exports/imports0.10.10.10.10.20.1
Polynesia (excluding Hawaii)
Cook Islands30.838.032.24.21.72.1
Fiji195.2193.6180.480.850.549.1
French Polynesia75.398.581.80.20.81.3
Niue7.75.68.50.50.5
Pitcairn0.10.40.4
Samoa, American26.434.631.10.60.5
Samoa, Western50.474.761.58.45.16.6
Tokelau----
Tonga27.044.733.83.31.32.0
Tuvalu0.81.10.7
Wallis and Futuna Islands3.05.75.6---
            Total for Polynesia416.6497.0435.997.060.662.0
Percentage of total exports/imports2.62.42.10.60.30.3
Antarctica
Antarctica0.1-
Percentage of total exports/imports-
            Total for Oceania and Antarctica3,527.15,061.04,856.13,351.44,768.85,208.7
Percentage of total exports/imports22.424.323.621.922.424.4
Europe and the former USSR:
The United Kingdom and Ireland
United Kingdom1,024.21,254.51,254.61,069.61,318.01,152.5
Ireland12.320.120.449.356.873.1
            Total for the United Kingdom and Ireland1,036.51,274.51,275.01,119.01,374.81,225.5
Percentage of total exports/imports6.66.16.27.36.55.7
Southern Europe
Albania0.10.1-
Andorra--
Cyprus2.48.14.80.10.10.1
Gibraltar0.30.30.10.1--
Greece80.748.140.15.15.37.5
Holy See (Vatican City State)--0.1
Italy252.7289.1330.8357.0468.8549.0
Malta5.74.812.80.20.10.2
Portugal37.223.928.115.921.523.7
San Marino-----
Spain70.586.078.646.193.494.9
Bosnia-Herzegovina------
Croatia-4.21.7-0.40.4
Macedonia--0.3-
Slovenia-0.50.3-3.73.5
Yugoslavia/Serbia and Montenegro1.71.90.74.00.1
            Total for Southern Europe451.3467.0498.2428.5593.3679.4
Percentage of total exports/imports2.92.22.42.82.83.2
Western Europe
Austria14.318.111.245.060.292.7
Belgium166.4224.1221.990.8146.6165.2
Destination unknown—EU333.4308.1343.5---
France167.8232.1217.5334.7355.9524.0
Germany, Federal Rep. of372.1506.3503.6695.0970.91,042.9
Liechtenstein0.10.20.4
Luxembourg0.23.79.59.7
Monaco-0.30.20.1
Netherlands157.2120.6121.1170.8233.2239.6
Switzerland52.472.369.4182.6195.6212.0
            Total for Western Europe1,263.91,481.71,488.61,523.01,972.32,286.6
Percentage of total exports/imports8.07.17.29.99.310.7
Northern Europe
Denmark28.343.050.770.7138.3103.1
Faeroe Islands-0.20.2
Finland8.310.810.459.6105.6139.4
Greenland0.10.1--
Iceland0.90.20.90.21.31.6
Norway5.19.89.3113.635.637.1
Sweden55.251.644.7545.8358.5343.1
            Total for Northern Europe97.8115.7116.2790.0639.4624.2
Percentage of total exports/imports0.60.60.65.23.02.9
Eastern Europe
Bulgaria0.60.61.80.60.30.2
German Democratic Republic---0.9--
Hungary1.41.72.32.72.83.1
Poland1.77.72.72.324.95.0
Romania0.10.90.41.31.11.7
Czechoslovakia6.4--4.7--
Czech Republic-3.62.7-10.48.0
Slovakia, Slovak Republic-0.30.1-0.1
            Total for Eastern Europe10.215.010.012.439.418.1
Percentage of total exports/imports0.10.10.10.20.1
The Former USSR and the Baltic States
Armenia-----
Azerbaijan-----
Belarus----0.2
Estonia-0.1--
Georgia----
Kazakhstan---0.10.3
Kyrgyzstan-----
Latvia-0.11.2-1.1-
Lithuania-0.1-0.40.2
Moldova----
Russia-137.0177.2-6.04.6
Tajikistan-----
Turkmenistan----
Ukraine-1.00.3-0.3
USSR182.3--7.4--
Uzbekistan-----
            Total for the former USSR and the Baltic States182.3138.3178.87.48.05.3
Percentage of total exports/imports1.20.70.9
            Total for Europe and the former USSR3,041.93,492.13,566.63,880.14,627.34,839.1
Percentage of total exports/imports19.316.817.425.321.822.7
The Middle East and North Africa:
The Middle East
Bahrain11.512.016.20.35.25.4
Iran (Islamic Republic of)114.568.1143.31.830.63.8
Iraq5.1-----
Israel2.24.53.626.440.841.0
Jordan56.525.230.40.911.410.3
Kuwait3.423.027.3-
Lebanon2.31.91.70.4
Oman18.713.811.297.936.377.4
Qatar3.53.23.20.72.21.8
Saudi Arabia181.2168.6191.9531.8282.4335.0
Syrian Arab Republic0.87.95.6-
Turkey39.5137.6156.49.816.819.0
United Arab Emirates35.844.874.3193.3214.146.3
Yemen19.814.415.1-0.1
            Total for the Middle East494.8524.8680.2863.0640.1540.4
Percentage of total exports/imports3.12.53.35.63.02.5
North Africa
Algeria173.999.726.9--
Cape Verde------
Egypt14.946.763.42.54.03.0
Libyan Arab Republic10.43.03.8---
Mauritania---
Morocco5.326.937.624.230.033.3
Sudan-
Tunisia1.03.39.03.83.0
Western Sahara------
            Total for North Africa205.5179.5140.726.737.939.3
Percentage of total exports/imports1.30.90.70.20.20.2
            Total for the Middle East and North Africa700.3704.3820.9889.7678.0579.7
Percentage of total exports/imports4.43.44.05.83.22.7
Asia:
Southeast Asia
Brunei Darussalam1.012.012.928.8
Cambodia-0.82.5
Indonesia166.7301.5306.0107.9201.1229.8
Lao Peoples Democratic Rep0.50.2-0.1
Malaysia394.5397.3471.1144.4275.6433.3
Myanmar (formerly Burma)0.60.41.30.40.70.5
Philippines115.7194.7220.621.948.451.1
Singapore226.4280.0301.3218.6399.6407.6
Thailand149.3260.6261.893.1156.4164.3
Viet Nam2.536.972.40.610.815.6
            Total for Southeast Asia1,056.81,484.71,650.0615.61,092.61,302.4
Percentage of total exports/imports6.77.18.04.05.16.1
Northeast Asia
China, Peoples Republic of186.1544.7520.0217.5701.9774.0
Hong Kong240.7595.1674.0183.9223.4202.1
Japan2,611.13,416.93,302.12,337.23,176.02,884.9
Korea, Democr. Peoples Rep-0.00.0
Korea, Republic of718.91,035.11,028.0246.3333.6378.3
Macau1.61.64.83.12.52.1
Mongolia0.1--
Taiwan, Province of China315.7632.3571.6384.7566.6525.3
            Total for Northeast Asia4,074.26,225.86,110.53,372.75,004.14,766.9
Percentage of total exports/imports25.830.029.722.023.522.3
Southern Asia
Afghanistan0.1-0.20.20.2
Bangladesh4.018.021.65.96.36.9
Bhutan0.1---
British Indian Ocean Territory0.1
India127.0122.5106.546.5111.2117.6
Maldives0.41.64.3
Nepal40.737.948.20.10.30.5
Pakistan23.818.821.329.848.843.4
Sri Lanka36.681.290.39.410.612.3
            Total for Southern Asia232.5280.4292.292.0177.5180.8
Percentage of total exports/imports1.51.31.40.60.80.8
            Total for Asia5,363.57,990.98,042.74,080.36,274.26,250.1
Percentage of total exports/imports34.038.439.126.629.529.3
Northern America:
Northern America
Bermuda4.810.33.60.31.11.1
Canada232.1333.3296.1276.3316.8426.4
St. Pierre and Miquelon-----
US Minor Outlying Islands0.1-----
United States of America2,047.22,142.01,859.62,609.54,273.73,686.5
            Total for Northern America2,284.22,485.62,159.32,886.24,591.64,114.0
Percentage of total exports/imports14.512.010.518.821.619.3
South America, Central America and the Caribbean:
South America
Argentina3.234.932.715.124.519.6
Bolivia0.12.83.80.10.2
Brazil25.362.882.664.475.887.2
Chile19.666.996.618.824.225.5
Colombia2.83.62.21.14.85.2
Ecuador0.61.01.948.626.338.6
Falkland Islands (Malvinas)0.10.10.0--
French Guiana0.40.90.8--
Guyana1.14.46.51.90.80.9
Paraguay0.20.2-0.30.2
Peru37.489.394.33.54.81.1
Suriname---
Uruguay0.412.86.30.30.5
Venezuela86.993.069.70.60.10.1
            Total for South America178.3372.9397.6154.0161.8179.1
Percentage of total exports/imports1.11.81.91.00.80.8
Central America
Belize1.00.2-
Costa Rica0.16.20.20.40.90.6
El Salvador5.818.615.70.1
Guatemala3.435.023.90.11.41.7
Honduras2.20.10.20.4
Mexico130.2140.4150.021.028.032.6
Nicaragua2.20.21.20.1
Panama8.927.715.48.4
            Total for Central America153.8228.2206.621.839.135.0
Percentage of total exports/imports1.01.11.00.10.20.2
The Caribbean
Anguilla-----
Antigua and Barbuda0.30.40.3-
Aruba----
Bahamas1.32.62.61.62.11.2
Barbados11.811.413.7
Cayman Islands--0.20.7-
Christmas Island----
Cuba69.015.531.30.10.1
Dominica-0.1-
Dominican Republic7.111.812.90.40.3
Grenada1.61.21.4---
Guadeloupe5.86.47.1---
Haiti1.90.60.1-
Jamaica16.314.719.05.96.16.0
Martinique5.05.25.5---
Montserrat-----
Netherlands Antilles1.01.51.6-0.1
Puerto Rico5.61.92.318.526.035.0
St. Kitts—Nevis0.10.30.4--
St. Lucia0.92.62.3-0.2-
St. Vincent and Grenadines0.30.1-
Trinidad and Tobago14.311.711.60.20.22.2
Turks and Caicos Islands-----
Virgin Islands, British----
Virgin Islands, United States0.80.30.1--
            Total for the Caribbean142.988.4112.527.035.345.0
Percentage of total exports/imports0.90.40.50.20.20.2
            Total for South America, Central America and the Caribbean475.0689.5716.7202.8236.3259.1
Percentage of total exports/imports3.03.33.51.31.11.2
Africa (excluding North Africa):
Central and West Africa
Benin------
Burkina Faso-----
Cameroon, Republic of-0.20.30.3
Central African Republic----
Chad-----
Congo------
Cote d'Ivoire3.23.20.20.1
Equatorial Guinea------
Gabon0.1----
Gambia0.1-
Ghana1.10.40.31.20.40.6
Guinea-0.1--0.1
Guinea—Bissau----
Liberia----
Mali---
Niger0.1---
Nigeria0.41.20.8-0.19.6
Sao Tome and Principe0.1---
Senegal5.32.1-
Sierra Leone0.1-0.1
Togo0.10.1---
Zaire--
            Total for Central and West Africa2.110.26.61.51.210.7
Percentage of total exports/imports0.1
Southern and East Africa
Angola-0.10.1---
Botswana0.91.50.2--
British Indian Ocean Terr-0.1----
Burundi-----
Comoros-----
Djibouti----
Eritrea----
Ethiopia0.50.10.1
Kenya1.91.61.92.03.32.3
Lesotho---
Madagascar2.20.30.10.10.1
Malawi2.20.71.32.73.53.8
Mauritius27.230.226.40.60.60.6
Mayotte------
Mozambique3.80.3---
Namibia0.21.3-3.9
Reunion3.96.26.5---
Rwanda-0.1-
St Helena------
Seychelles0.10.10.2-
Somalia----
South Africa17.061.866.712.471.674.2
Swaziland0.2-9.20.10.2
Tanzania, United Rep. of0.70.20.41.30.30.8
Uganda0.30.1-
Zambia0.10.10.5-
Zimbabwe1.00.82.84.64.25.2
            Total for Southern and East Africa59.6104.5108.233.283.691.1
Percentage of total exports/imports0.40.50.50.20.40.4
            Total for Africa (excluding North Africa)61.6114.7114.934.784.8101.8
Percentage of total exports/imports0.40.60.60.20.40.5
Not Allocated:
Bunkering212.6133.4131.5---
Passengers' baggage37.493.8122.4---
Ships' stores64.819.718.4---
            Total for not allocated314.8246.8272.3---
Percentage of total exports/imports2.01.21.3---
            Total of all Exports/Imports15,768.420,784.920,549.515,325.121,260.921,352.5

ORIGIN OF IMPORTS
Proportion of total imports coming from different countries

TRADING PARTNERS
Proportion of total exports going to different markets

COMPOSITION OF EXPORTS
Major types by value

In the June 1996 year New Zealand's top 10 trading partners received 70.0 percent of our total exports and supplied 77.4 percent of our imports. Australia, Japan, the United States of America and the United Kingdom are New Zealand's top four trading partners. Collectively these countries received 51.7 percent of New Zealand's exports and supplied 59.4 percent of New Zealand's total imports.

Table 25.21. TOP TEN COUNTRIES FOR EXPORTS*

CountryValue of exports (fob)Percentage of total exports (fob)
199119951996199119951996

*Year ended June.

† Includes bunkering, ships stores and passengers' baggage.

 $ (million) 
Australia2,937.44,342.44,207.018.620.920.5
Japan2,611.13,416.93,302.116.616.416.1
United States of America2,047.22,142.01,859.613.010.39.0
United Kingdom1,024.21,254.51,254.66.56.06.1
Korea, Republic of718.91,035.11,028.04.65.05.0
Hong Kong240.7595.1674.01.52.93.3
Taiwan, Province of China315.7632.3571.62.03.02.8
China, Peoples Republic of186.1544.7520.01.22.62.5
Germany372.1506.3503.62.42.42.5
Malaysia394.5397.3471.12.51.92.3
            Total10,848.014,866.614,391.668.871.570.0
All other countries4,920.45,918.26,157.931.228.530.0
            Total exports15,768.420,784.920,549.5100.0100.0100.0

Table 25.22. TOP TEN COUNTRIES FOR IMPORTS*

CountryValue of imports (cif)Percentage of total imports (cif)
199119951996199119951996
*Year ended June.
 $ (million) 
Australia3,117.24,443.64,964.020.320.923.2
United States of America2,609.54,273.73,686.517.020.117.3
Japan2,337.23,176.02,884.915.314.913.5
United Kingdom1,069.61,318.01,152.57.06.25.4
Germany695.0970.91,042.94.54.64.9
China, Peoples Republic of217.5701.9774.01.43.33.6
Italy357.0468.8549.02.32.22.6
Taiwan, Province of China384.7566.6525.32.52.72.5
France334.7355.9524.02.21.72.5
Malaysia144.4275.6433.30.91.32.0
            Total11,266.816,551.016,536.473.577.877.4
All other countries4,058.34,709.94,816.126.522.222.6
            Total imports15,325.121,260.921,352.5100.0100.0100.0

New Zealand HeraldFrontpage of a 1967 Melbourne Age supplement, compiled by theNew Zealand Herald.

Australia

Australia is New Zealand's top trading partner, receiving 20.3 percent ($4,207.0 million) of New Zealand's exports and supplying 23.2 percent ($4,964.0 million) of our total imports in the June 1996 year. Total trade with Australia topped $9 billion in the June 1996 year, a $520.4 million rise in imports while exports fell $135.4 million.

Table 25.23. MAJOR COMMODITIES TRADED WITH AUSTRALIA*

Commodity1993199419951996
*Year ended June.
 $(million)
Exports
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof307.0410.5428.3436.8
Paper and paperboard; articles of paper or paperboard257.9264.7279.6345.9
Natural or cultured pearls, precious, semi-precious stones, precious metals, imitation jewellery; coin273.2312.2303.6294.3
Wood and articles of wood; wood charcoal351.1394.4371.5251.1
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes259.5260.5230.2220.7
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders171.2190.9218.6200.7
Plastics and articles thereof141.2157.3185.4187.2
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei91.0106.7110.0133.2
Fish and crustaceans, molluscs and other aquatic invertebrates93.699.6110.4113.1
Aluminium and articles thereof96.6108.7124.0104.2
Other nei1,743.41,856.91,980.71,919.8
            Total exports to Australia3,785.64,162.24,342.44,207.0
Imports
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof298.6347.3465.1501.3
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes260.2257.5232.4421.1
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof242.1264.1322.3375.1
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders239.9231.8270.5299.9
Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radioactive elements and isotopes219.4221.8251.2264.7
Plastics and articles thereof198.3199.8227.8218.9
Pharmaceutical products164.8186.3191.5208.1
Iron and steel122.3158.7158.7166.1
Paper and paperboard; articles of paper or paperboard197.5143.7144.1165.5
Iron or steel articles72.886.7104.2141.4
Other nei1,731.41,844.52,075.82,201.8
            Total imports from Australia3,747.33,942.24,443.64,964.0

TRADE WITH AUSTRALIA
Exports fob, imports vfd

The value of exports to Australia fell 3.1 percent to $4,207.0 million in the June 1996 year. The main commodities exported to Australia were mechanical machinery ($436.8 million), paper and paperboard ($345.9 million), pearls and precious stones (mainly gold) ($294.3 million) and wood and wood articles ($251.1 million). Wood and wood articles and pearls and precious stones (mainly gold) fell 32.4 and 3.1 percent respectively, while paper and paperboard and mechanical machinery rose 23.7 and 2.0 percent respectively.

Table 25.24. TRADE WITH AUSTRALIA

Year ended JuneExports(fob)Imports(cif)Balance
 $(million)
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
19964,207.04,964.0−757.0

Imports from Australia rose 11.7 percent to $4,964.0 million in the June 1996 year. The main commodities imported from Australia were vehicles ($501.3 million), mineral fuels ($421.1 million), mechanical machinery ($375.1 million) and electrical machinery ($299.9 million). In the June 1996 year these main commodities rose by 7.8 percent, 81.2 percent, 16.4 percent and 10.9 percent respectively.

EXPORTS TO AUSTRALIA

IMPORTS FROM AUSTRALIA

Japan

Japan is New Zealand's second largest export destination after Australia and the third largest supplier of imports after Australia and the United States of America. Exports to Japan in the June 1996 year were valued at $3,302.1 million, down 3.4 percent, while imports were also down (9.2 percent) to $2,884.9 million.

Table 25.25. MAJOR COMMODITIES TRADED WITH JAPAN*

Commodity1993199419951996
*Year ended June.
 $(million)
Exports
Wood and articles of wood; wood charcoal527.5589.7659.5632.2
Aluminium and articles thereof345.1360.4485.2466.5
Fish and crustaceans, molluscs and other aquatic invertebrates364.6343.8322.2371.5
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei171.3167.5191.9228.1
Meat and edible meat offal178.9190.4194.1207.0
Organic chemicals70.2131.4419.1148.7
Vegetables and certain roots and tubers; edible110.4151.8155.0142.4
Albuminoidal substances; modified starches; glues; enzymes121.6105.1113.9131.4
Pulp of wood or other fibrous cellulosic material108.293.1115.8124.5
Fruit and nuts, edible; peel of citrus fruit or melons108.2133.292.4113.1
Other nei653.1620.4667.5736.8
            Total exports to Japan2,759.12,886.83,416.63,302.1
Imports
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof1,104.61,303.71,532.81,433.1
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof352.6479.8499.8431.4
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders375.6369.0367.3314.1
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus135.9137.6133.6133.8
Iron and steel109.599.0124.791.0
Rubber and articles thereof67.868.067.368.7
Plastics and articles thereof72.469.883.464.4
Photographic or cinematographic goods41.546.046.139.1
Ships, boats and floating structures23.63.22.335.9
Paper and paperboard; articles of paper or paperboard68.651.352.933.6
Other nei300.3300.7265.7239.7
            Total imports from Japan2,652.62,928.13,176.02,884.9

The decrease in exports was due primarily to a 64.5 percent decrease in organic chemicals ($148.7 million) and small decreases in the two main export commodities wood and wood articles (down 4.1 percent) and aluminium and articles (down 3.9 percent). The other two main commodities, fish and crustaceans and molluscs ($371.5 million) and dairy produce ($228.1 million), rose 15.3 percent and 18.9 percent respectively.

Imports of vehicles ($1,433.1 million), mechanical machinery ($431.4 million) and electrical machinery ($314.1 million) all fell in the June 1996 year, down 6.5 percent, 13.7 percent and 14.5 percent respectively. Imports of optical and medical equipment rose fractionally (0.2 percent) to $133.8 million.

The United States of America

The United States of America is New Zealand's third largest export destination and second largest import supplier. Exports and imports both fell in value in the June 1996 year, exports fell 13.2 percent to $1,859.6 million and imports fell 13.7 percent to $3,686.5 million.

Exports of meat and edible offal and fish, crustaceans and molluscs both fell, in the June 1996 year, by 19.5 percent and 14.7 percent respectively, while exports of casein rose 19.4 percent. The fall in imports is largely the result of a $910.9 million decrease in aircraft imports.

Table 25.26. TRADE WITH THE UNITED STATES OF AMERICA

Year ended JuneExports (fob)Imports (cif)Balance
 $(million)
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
19952,142.04,273.7−2,131.7
19961,859.63,686.5−1,827.0

Major commodities exported to the United States of America are primary and agricultural based. Commodities include meat and edible offal ($521.8 million), casein ($256.1 million), fish, crustaceans and molluscs ($224.7 million) and fruit and nuts ($59.3 million).

TRADE WITH USA

TRADE WITH APEC COUNTRIES

Major imports were mechanical machinery ($1,206.6 million), electrical machinery ($452.8 million), optical and medical equipment ($231.7 million) and plastics and plastic articles ($209.9 million).

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 through until the late 1970s when Australia, Japan and the United States of America became dominant. In the June 1996 year the United Kingdom received $1,254.6 million of New Zealand's exports. Major commodities were meat and edible offal ($425.7 million), dairy produce ($368.8 million) and fruit and nuts ($96.1 million).

New Zealand's imports from the United Kingdom in the June 1996 year totalled $1,152.5 million, this is a 12.6 percent decrease from the previous June year. Major commodities imported were mechanical machinery ($186.4 million), vehicles ($170.0 million) and electrical machinery ($113.7 million).

APEC

On 6 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. APEC countries received 69.9 percent ($14,361.6 million) of New Zealand's total exports in the June 1996 year, down −2.8 percent from 1995, supplied 71.4 percent of New Zealand's imports ($15,239.0 million) down 0.6 percent.

Table 25.27. EXPORTS TO APEC COUNTRIES*

CountryValue of exports† (fob)Percentage of total exports
199119951996199119951996

*Year ended June.

† Includes re-exports.

‡ Includes bunkering, ships stores and passenger' baggage.

 $(million) 
Australia2,937.44,342.44,207.018.620.920.5
Brunei Darussalam1.012.012.90.10.1
Canada232.1333.3296.11.51.61.4
Chile-66.996.6-0.30.5
China, Peoples Republic of186.1544.7520.01.22.62.5
Hong Kong240.7595.1674.01.52.93.3
Indonesia166.7301.5306.01.11.51.5
Japan2,611.13,416.93,302.116.616.416.1
Korea, Republic of718.91,035.11,028.04.65.05.0
Malaysia394.5397.3471.12.51.92.3
Mexico-140.4150.0-0.70.7
Papua New Guinea-84.583.0-0.40.4
Philippines115.7194.7220.60.70.91.1
Singapore226.4280.0301.31.41.31.5
Taiwan, Province of China315.7632.3571.62.03.02.8
Thailand149.3260.6261.80.91.31.3
United States of America2,047.22,142.01,859.613.010.39.0
            Total exports to APEC countries10,342.914,779.914,361.665.671.169.9
Other countries‡5,425.56,005.06,187.934.428.930.1
            Total exports15,768.420,784.920,549.5100.0100.0100.0

Table 25.28. IMPORTS FROM APEC COUNTRIES*

CountryValue of imports (cif)Percentage of total imports
199119951996199119951996
*Year ended June.
 $(million) 
Australia3,117.24,443.64,964.020.320.923.2
Brunei Darussalam28.8
Canada276.3316.8426.41.81.52.0
Chile-24.225.5-0.10.1
China, Peoples Republic of217.5701.9774.01.43.33.6
Hong Kong183.9223.4202.11.21.10.9
Indonesia107.9201.1229.80.70.91.1
Japan2,337.23,176.02,884.915.314.913.5
Korea, Republic of246.3333.6378.31.61.61.8
Malaysia144.4275.6433.30.91.32.0
Mexico-28.032.6-0.10.2
Papua New Guinea-144.853.2-0.70.2
Philippines21.948.451.10.10.20.2
Singapore218.6399.6407.61.41.91.9
Taiwan, Province of China93.1156.4164.32.52.72.5
Thailand384.7566.6525.30.60.70.8
United States of America2,609.54,273.73,686.517.020.117.3
            Total imports from APEC countries9,987.215,313.715,239.065.272.071.4
Other countries5,337.95,947.26,113.534.828.028.6
            Total imports15,325.121,260.921,352.5100.0100.0100.0

Major commodities exported to APEC countries included wood and wood articles ($1,509.1 million), dairy produce ($1,466.0 million), meat and edible offal ($1,262.5 million) and fish, crustaceans and molluscs ($978.4 million). Major commodities imported from APEC countries included mechanical machinery ($2,506.2 million), vehicles ($2,202.3 million), electrical machinery ($2,662.8 million) and mineral fuels ($823.6 million).

Table 25.29. MAJOR COMMODITIES EXPORTED TO APEC COUNTRIES*

CommodityValue of exports† (fob)Percentage of total exports
199119951996199119951996

*Year ended June.

† Includes re-exports

 $(million) 
Wood and articles of wood; wood charcoal771.31,616.81,509.17.510.910.5
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei777.61,312.61,466.07.58.910.2
Meat and edible meat offal1,452.91,373.31,262.514.09.38.8
Fish and crustaceans, molluscs and other aquatic invertebrates654.2943.8978.46.36.46.8
Aluminium and articles thereof760.9844.0791.57.45.75.5
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof430.2682.3703.24.24.64.9
Wool, fine or coarse animal hair; horsehair yarn and woven fabric441.5781.8663.14.35.34.6
Albuminoidal substances; modified starches; glues; enzymes342.8420.7484.53.32.83.4
Paper and paperboard; articles of paper or paperboard298.6399.6481.22.92.73.4
Pulp of wood or other fibrous cellulosic material,369.8487.5468.93.63.33.3
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders205.3367.2387.62.02.52.7
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes491.6298.7342.64.82.02.4
Other nei3,346.35,251.44,822.932.435.533.6
            Total exports to APEC countries10,342.914,779.914,361.6100.0100.0100.0

Table 25.3. MAJOR COMMODITIES IMPORTED FROM APEC COUNTRIES*

CommodityValue of imports (cif)Percentage of total imports
199119951996199119951996
*Year ended June.
 $(million) 
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof1,458.12,314.52,506.214.615.116.4
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof1,280.92,201.62,203.312.814.414.5
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders1,057.81,628.71,662.810.610.610.9
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes460.7556.2823.64.63.65.4
Plastics and articles thereof454.7688.1662.04.64.54.3
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus324.2449.6465.43.22.93.1
Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radioactive elements and isotopes356.3357.9367.73.62.32.4
Paper and paperboard; articles of paper or paperboard225.8321.6358.32.32.12.4
Iron and steel211.9329.5319.42.12.22.1
Iron or steel articles173.8232.6284.31.71.51.9
Pharmaceutical products150.5236.0254.81.51.51.7
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans177.8242.0234.51.81.61.5
            Total imports from APEC countries9,987.215,313.715,239.0100.0100.0100.0

Customers in a Manchester store are served by a New Zealander employed for exhibitions and shop promotions, 1966. The carrier bag slogan says: “Enjoy the Cream and Sunshine Foods—New Zealand Butter & Cheese.”

Table 25.31. TRADE WITH APEC

Year ended JuneExports (fob)Percentage of total exports*Imports (cif)Percentage of total importsBalance
*Includes re-exports.
 $(million) $(million) $(million)
19898,808.459.18,018.864.2789.6
19909,052.159.79,857.262.5−805.1
199110,342.965.69,987.265.2355.7
199211,893.366.710,840.970.01,052.4
199312,919.868.112,196.570.4723.3
199413,769.769.413,016.370.5753.4
199514,779.971.115,313.772.0−533.9
199614,361.669.915,239.071.4−877.4

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 1996 year the European Union received 16.4 percent ($3,392.9 million) of New Zealand's exports, while supplying 21.4 percent ($4,560.2 million) of New Zealand's imports. Major commodities exported to the EU included meat and edible offal ($1,074.6 million), fruit and nuts ($566.6 million), dairy produce ($462.5 million) and wool, hair and yarn ($276.2 million). Major commodities imported from the EU included mechanical machinery ($971.6 million), vehicles ($542.0 million), electrical machinery ($503.7 million) and pharmaceutical products ($240.2 million).

Table 25.32. EXPORTS TO EU COUNTRIES*

CountryValue of exports(fob)†Percentage of total exports
199119951996199119951996

*Year ended June.

† Includes re-exports.

‡ Includes bunkering, ships' stores and passengers' baggage.

 $(million)
Austria-18.111.2-0.10.1
Belgium166.4224.1221.91.11.11.1
Denmark28.343.050.70.20.20.2
Finland-10.810.4-0.10.1
France167.8232.1217.51.11.11.1
Germany372.1506.3503.62.42.42.5
Greece80.748.140.10.50.20.2
Ireland12.320.120.40.10.10.1
Italy252.7289.1330.81.61.41.6
Luxembourg0.20.2
Netherlands157.2120.6121.11.00.60.6
Portugal37.223.928.10.20.10.1
Spain70.586.078.60.40.40.4
Sweden-51.644.7-0.20.2
United Kingdom1,024.21,254.51,254.66.56.06.1
Dest, unknown—EU333.4308.1343.52.11.51.7
            Total exports to the EU2,702.93,236.43,277.417.115.615.9
Other countries‡13,065.514,312.113,994.782.968.968.1
            Total exports15,768.420,784.920,549.5100.0100.0100.0

TRADE WITH EU COUNTRIES

Table 25.33. IMPORTS FROM EU COUNTRIES*

CountryValue of imports(cif)Percentage of total imports
199119951996199119951996
*Year ended June.
 $(million) 
Austria-60.292.7-0.30.4
Belgium90.8146.6165.20.60.70.8
Denmark70.7138.3103.10.50.70.5
Finland-105.6139.4-0.50.7
France334.7355.9524.02.21.72.5
Germany695.0970.91,042.94.54.64.9
Greece5.15.37.5
Ireland49.356.873.10.30.30.3
Italy357.0468.8549.02.32.22.6
Luxembourg3.79.59.7
Netherlands170.8233.2239.61.11.11.1
Portugal15.921.523.70.10.10.1
Spain46.193.494.90.30.40.4
Sweden-358.5343.1-1.71.6
United Kingdom1,069.61,318.01,152.57.06.25.4
            Total imports from the EU2,908.74,342.54,560.219.020.421.4
Other countries12,416.416,918.416,792.281.079.678.6
            Total imports15,325.121,260.921,352.5100.0100.0100.0

Table 25.34. TRADE WITH EU

Year ended JuneExports (fob)Percentage of total exports*Imports (cif)Percentage of total importsBalance
*Includes re-exports.
 $(million) $(million) $(million)
19862,086.319.72,562.922.4−476.6
19872,635.821.82,792.423.7−156.6
19882,589.220.82,620.522.6−31.3
19892,721.918.32,297.218.4424.7
19902,785.518.43,157.920.0−372.4
19912,702.917.12,908.719.0−205.8
19922,946.316.52,676.817.3269.5
19932,987.915.73,057.017.6−69.1
19943,058.215.43,304.817.9−246.6
19953,236.415.64,342.520.4−1,106.2
19963,277.415.94,560.221.4−1,282.8

Table 25.35. MAJOR COMMODITIES EXPORTED TO EU COUNTRIES*

CommodityValue of exports† (fob)Percentage of total exports (fob)
199119951996199119951996

*Year ended June.

† Includes re-exports.

 $(million) 
Meat and edible meat offal789.3974.81,074.629.230.132.8
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei301.0501.6462.516.815.514.1
Fruit and nuts, edible; peel of citrus fruit or melons453.4408.9451.111.112.613.8
Wool, fine or coarse animal hair; horsehair yarn and woven fabric358.7352.7276.213.310.98.4
Raw hides and skins (other than furskins) and leather206.1202.2244.77.66.27.5
Albuminoidal substances; modified starches; glues; enzymes103.3155.0148.63.84.84.5
Fish and crustaceans, molluscs and other aquatic invertebrates70.0133.6128.12.64.13.9
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders24.657.168.40.91.82.1
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof54.269.156.82.02.11.7
Animal originated products; nei67.755.252.12.51.71.6
Beverages, spirits and vinegar18.433.147.80.71.01.5
Vegetables and certain roots and tubers; edible29.463.745.91.12.01.4
Other nei226.9229.4220.48.47.16.7
            Total exports to the EU2,702.93,236.43,277.4100.0100.0100.0

Harding Traffic Systems are producing road lane markers which glow, change colour and flash, useful for rail and pedestrian crossings, emergency indoor lighting, airport runway lighting and in-pool illumination. They were developed from Auckland University research on inductive power transfer, and do not need direct wiring to a power source. The markers have already been sold Italy and Australia, and there are other good export prospects.

TRADE WITH ASIA
Excluding Japan

Table 25.36. MAJOR COMMODITIES IMPORTED FROM EU COUNTRIES*

CommodityValue of imports (cif)Percentage of total imports (cif)
199119951996199119951996
*Year ended June.
 $(million) 
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof543.2903.7971.618.720.821.3
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof207.7515.0542.07.111.911.9
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders355.9460.6503.712.210.611.0
Pharmaceutical products177.8228.5240.26.15.35.3
Plastics and articles thereof131.9226.9223.44.55.24.9
Paper and paperboard; articles of paper or paperboard103.4217.6204.83.65.04.5
Aircraft, spacecraft and parts thereof93.278.5197.13.21.84.3
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus124.9168.8162.64.33.93.6
Organic chemicals63.596.197.82.22.22.1
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans91.197.590.23.12.22.0
Chemical products nes77.6102.390.12.72.42.0
Iron or steel articles52.168.175.71.81.61.7
Other nei886.51,179.01,161.030.527.125.5
            Total imports from the EU2,908.74,342.54,560.2100.0100.0100.0

Asia

Exports to Asian countries (excluding Japan) have been steadily increasing since the June 1990 year and totalled $4,740.6 million (up 3.7 percent) in the June 1996 year. This reflects New Zealand's push towards increasing exports to Asian countries.

Imports from Asian countries (excluding Japan) totalled $3,365.2 million (up 8.6 percent), compared with $3,098.2 million in the June 1995 year.

Table 25.37. TRADE WITH ASIAN COUNTRIES*

Year ended JuneExports†Percentage of total exportsImportsPercentage of total importsBalance

*Excluding Japan.

† Includes re-exports.

 $(million) $(million) $(million)
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
19954,573.922.03,098.214.61,475.7
19964,740.623.13,365.215.81,375.4

Early export by air in 1968 of frozen boneless beef, destined for Hong Kong.

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.

Table 25.38. OVERSEAS CARGO LOADED AT NZ PORTS*

 Value (fob)Gross weight
199119951996199119951996
*Year ended June.
Seaports$(million)tonnes
Whangarei409.0270.7214.0856,713542,550505,936
Auckland3,603.75,287.85,380.51,288,8972,123,4322,014,578
Tauranga2,328.92,785.43,020.44,361,6584,913,7055,456,484
Taharoa18.520.620.11,001,2811,121,0671,229,724
Gisborne29.978.9106.165,801331,685405,289
New Plymouth834.21,239.7977.41,827,5002,362,2392,833,453
Napier981.11,364.91,371.41,146,9681,246,1731,277,814
Wanganui4.0--2,954--
Wellington1,648.31,794.61,660.7490,864647,132650,772
            Total North Island9,857.512,842.712,750.511,043,63613,287,98314,374,050
Nelson350.6587.6580.8657,612933,612961,847
Picton1.023.329.33,51274,841112,236
Tarakohe1.0--4--
Westport-1.20.1-8,4302,645
Lyttelton1,143.32,012.12,037.4835,9351,816,0782,318,838
Timaru340.5400.8507.0227,860240,436311,123
Dunedin1,312.91,251.21,208.7555,117714,250675,976
Invercargill (Bluff)751.1804.9771.1642,529630,411592,555
            Total South Island3,899.55,081.25,134.42,922,5694,418,0584,975,220
            Total seaports13,757.017,923.917,884.913,965,21917,706,04119,349,269
Airports
Auckland1,542.22,558.42,586.255,39874,79271,050
Hamilton--0.3--4
Whenuapai0.5-1-
Wellington136.1200.492.43,4304,2173,206
Christchurch324.0515.3551.712,59213,88715,620
Dunedin--0.8--35
            Total airports2,002.23,274.63,231.571,42392,89889,916
Parcel post11.710.08.233105
            Total cargo loaded15,770.921,208.421,124.614,036,67617,798,94919,439,190

1996 OVERSEAS CARGO - LOADED
By weight (thousand tonnes) and value (fob $million)

1996 OVERSEAS CARGO - UNLOADED
By weight (thousand tonnes) and value (cif $million)

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.

Overseas cargo loaded at New Zealand ports weighed 19,439.2 thousand tonnes, in the June 1996 year, up 9.2 percent on the June 1995 year. The value of cargo loaded was $21,124.6 million, down 0.4 percent. Tauranga again loaded the most overseas cargo in the June 1996 year, 5,456.5 thousand tonnes (an increase of 11.0 percent), worth $3,020.4 million. Auckland loaded 36.9 percent (2,014.6 thousand tonnes) of the amount loaded by Tauranga, but valued at $5,380.5 million.

Seaports loaded 19,349.3 thousand tonnes in the June 1996 year, an increase of 9.3 percent. More than half of all ports showed increases in the amount of cargo loaded, a notable exception being the port of Auckland which fell 5.1 percent, although the value of the cargo rose 1.8 percent.

Of the three major airports, only Christchurch showed an increase (up 12.5 percent) in the amount of overseas cargo loaded in the June 1996 year. Both Auckland and Wellington showed decreases, of 5.0 percent and 24.0 percent respectively. Auckland showed an increase in the value of overseas cargo loaded, up 1.3 percent to $2,592.8 million.

Table 25.39. OVERSEAS CARGO UNLOADED AT NZ PORTS*

 Value (cif)Gross weight
199119951996199119951996
*Year ended June.
Seaports$(millions)tonnes
Whangarei1,017.7901.8858.53,458,0784,088,7413,941,574
Auckland6,355.39,730.310,357.11,638,7632,660,3982,994,979
Tauranga300.5432.1449.5584,3251,159,8231,250,185
Gisborne0.34.53.1248,7394,365
New Plymouth241.379.8119.1194,250237,275288,039
Napier202.7333.3338.8167,523424,131464,740
Wanganui0.1--1--
Wellington1,532.31,342.61,299.4446,361558,506722,986
            Total North Island9,650.312,824.413,425.66,489,3259,137,6139,666,868
Nelson112.1142.3155.944,49743,04174,841
Picton-0.5--70-
Lyttelton883.41,330.41,320.3481,045699,960748,024
Timaru200.4165.1165.461,326112,485140,675
Dunedin175.0188.6188.5121,410180,777181,708
Invercargill (Bluff)337.8298.5463.1753,531799,241893,384
            Total South Island1,708.72,125.42,293.21,461,8091,835,5742,038,632
            Total seaports11,358.914,949.815,718.87,951,13410,973,18711,705,498
Airports
Auckland2,776.24,575.54,712.744,39579,94976,797
Hamilton----
Wellington355.6180.0174.64,5565,2024,738
Christchurch241.6472.8442.25,4338,4908,474
Dunedin----
            Total airports3,373.35,228.35,329.754,38493,64190,011
Parcel post62.169.158.0780472367
            Total cargo unloaded14,794.420,247.221,106.48,006,29811,067,29911,795,876

Overseas cargo unloaded totalled 11,795.9 thousand tonnes (up 6.6 percent) valued at $21,106.4 million (up 4.2 percent). Whangarei unloaded 3,941.6 thousand tonnes valued at $858.5 million, while Auckland unloaded 2,995.0 thousand tonnes valued at $10,357.1 million. Nelson showed the largest increase in the amount of overseas cargo unloaded (up 73.9 percent to 74.8 thousand tonnes).

Seaports unloaded 11,705.5 thousand tonnes in the June 1996 year, 99.2 percent of all overseas cargo unloaded. North Island ports unloaded 9,666.9 thousand tonnes and South Island ports 2,038.6 thousand tonnes.

Airports in New Zealand unloaded 90.0 thousand tonnes in the June 1996 year, valued at $5,329.7 million. Auckland airport unloaded 85.3 percent, by weight, of all cargo unloaded at airports. The Auckland, Wellington and Christchurch airports all showed decreases in amount of overseas cargo unloaded, of 4.0 percent, 8.9 percent and 0.2 percent respectively.

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 New Zealand Customs Service.

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).

Overseas terms of trade index

The Overseas Terms of Trade Index measures the changing volume of imports that can be funded by a unit volume of New Zealand's exports. The index is calculated as the ratio of the total export price index to the total import price index.

TERMS OF TRADE INDEX
Based on ratio of export prices to import prices

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 25.4. 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

*Year ended June 1989 (= 1000).

† Base: averages of ten years ended June 1989 (=1000).

June year
1986809−6.61002−4.2919−2.5
19878646.8999−0.39857.2
19888882.8941−5.810749.1
1989100012.610006.211396.0
199010646.410343.411722.9
19911004−5.610441.01095−6.6
199210312.710864.01081−1.3
199311158.111294.011254.1
19941067−4.31087−3.71118−0.6
19951063−0.41076−1.011250.6
19961042−2.0P1069−0.6P1110−1.4P
Quarterly
1994 Jun1048−1.010750.41110−1.4
         Sep10570.910800.511140.4
         Dec10792.11078−0.211402.3
1995 Mar10800.110830.51136−0.4
         Jun1038−3.91064−1.81111−2.2
         Sep10470.910821.71102−0.8
         Dec10581.11070−1.111262.2
1996 Mar1045−1.21069−0.11110−1.4
         Jun1023−2.11056−1.11103−0.7
         Sep1015P−0.8P1047P−0.9P1104P0.2P

Export and import price indexes

Table 25.41 provides a summary of the Export Price Index, and 25.42 of the Import Price Index.

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-products
MeatWoolTotal†AluminiumTotal

*Year ended June 1989 (=1000).

† Includes commodities not listed.

June Year
1986765900718813832912849774750616752809
19877579248078848851142892850856708802864
1988741874916936901962846888978812868888
1989100010001000100010001000100010001000100010001000
1990116411899491098109910331121102910278649881064
1991103911936979759951005107710008488569591004
1992110812246399821037121011569958347219461031
199312811309675105411231330125211449557269711115
1994115412356361007105212401157127710056729321067
1995105510837799931015126610851226104386510041063
199611941027760945102711771102121910008039481042
Quarterly
1994 Jun108111826781003103312661125121110047129321048
Sep104011677151013102112861107121410057599701057
Dec1038110879410241029126410941216104684810321079
1995 Mar105510817849941013126510771236106097710681080
Jun10931019823954100312481069123910588779511038
Sep11471017790947101112331087126310378769661047
Dec12361056759953104211341117128810238259641058
1996 Mar1245101676293910361144111212189997649391045
Jun1138102873494510191191109611159467529231023
Sep1116P1103P711P978P1018P1142P1091P1089P939P707P913P1015P

Table 25.42. IMPORT PRICE INDEXES*

 Food and beveragesPetroleum and petroleum productsNon-fuel crude materialsNon-food manufactured goodsTotal imports‡
Plastics and plastic articlesTextile yarn, fabrics related productsIron and steelNon-electrical machineryElectrical machinery and apparatusTransport-equipmentTotal‡

*Year ended June 1989 (=1000).

†Excludes manufactured articles of iron and steel.

‡ Includes commodities not listed.

June year
19861033186996879297072093911718429411002
19879871223913787996736100812281026990999
198890510998788419607049681030994937941
198910001000100010001000100010001000100010001000
19901052126910148331025105210421006102710171034
19911038157010328581046999988988106410041044
19921078139210497981100107010561052122610651086
19931098146610278041100102711051107138311111129
199410541171960737102494910701114145010901087
199510381175988788103093410541037147210761076
1996104211699987691010101110301006144010671069
Quarterly
1994 Jun10641087965719105694210771065144010791075
Sep10601220971725103792710451069149210761080
Dec105511441002785105193710521037148710781078
1995 Mar103311711018811102592511051020143110831083
Jun9991167961843100294610241023146910661064
Sep102011189948421027101910621000150210891082
Dec10511125993789105310481015994142110701070
1996 Mar103112301007725992101010201015144110621069
Jun1072118999771896897010231018140610471056
Sep1075P1224P951P710P990P970P1031P961P1419P1036P1047P

Export and import volume indexes

Table 25.43 provides a summary of the export volume indexes, and table 25.44 of the import 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.

Table 25.43. 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-products
MeatWoolTotal†AluminiumTotal

*Year ended June 1989 (=1000).

† Includes commodities not listed.

June Year
19861003791991857867702860758863810956874
19871037100710761018992782979714949815923948
19881034948985928958789982879908898928945
1989100010001000100010001000100010001000100010001000
199095080677279286786791110878449731043942
1991103789976985693896010021276936102411481033
19921147101795296610391151112314751064107712971152
199311129687518759601062107216341010101114161136
1994131096993092010531188117115561049108216101246
19951396101090193410961156123917161085108117381320
19961338108376495211041260128316941054110217691341
Quarterly
1994 Jun13591223987111812951113141017211185108017251425
Sep11877777877589091178106117491011109517431224
Dec17127729827739821218114217051034105518051277
1995 Mar143811941148113211961019125715761190108216431336
Jun12451295686107212971209149618321105109117631443
Sep970981563807912133811331713934105917951250
Dec14948149688279741341113116561068113118211289
1996 Mar13741233883109711371056123415991121107316141293
Jun15141303644107613951303163518061091114618451531
Sep1468P930P710P820P1055P1318P1279P1780P990P1157P1885P1344P

EXPORT VOLUME INDEX

Table 25.44. IMPORT VOLUME INDEXES*

 Food and beveragesPetroleum and petroleum productsNon-fuel crude materialsNon-food manufactured goodsTotal imports‡
Plastics and plastic articlesTextile yarn, fabrics related productsIron and steelNon-electrical machineryElectrical machinery and apparatusTransport -equipmentTotal‡

*Year ended June 1989 (=1000).

† Excludes manufactured articles of iron and steel.

‡ Includes commodities not listed.

June year
1986664109910421028105821501081629968904917
1987844936943113211791880941723942943945
198893298610671093101220891015824904986987
198910001000100010001000100010001000100010001000
199010911194116012971074123811121164160612411221
1991109012431045121997594611711405119911941175
19921090119811701414101591910751103104611441142
199312261226118416601099116712151142103012381230
199414061391132418911165145914791219105413591361
199515351472133420201189156816731570149616101583
199615901694133219981130142218581684124616111600
Quarterly
1994 Jun13211481123218671201143015101331104413721369
Sep15751426144421651277148718451501115516001578
Dec17361512128322991245163817411679200217901747
1995 Mar13981380132418341115165314151507120614551439
Jun14311571128717841119149616921594162215941568
Sep18021800127020021171142718481844110216521653
Dec16941323146220981135136919931863136017151678
1996 Mar14791874138919271091137516851412117814851499
Jun13861779120519661121151719081615134415931568
Sep1753P1592P1450P2233P1154P1617P1948P1867P1548P1814P1776P

IMPORT VOLUME INDEX

Contributors

  • 25.1 New Zealand Trade Development Board; New Zealand Customs Service; Statistics New Zealand.

  • 25.1–25.6 Statistics New Zealand.

Special articles

NZ Customs; Tradenz; Statistics New Zealand.

Further information

Tariff of New Zealand. New Zealand Customs Service.

Export News. Tradenz (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).

Report of the New Zealand Customs Service (Parl paper B.24).

Report of Tradenz (Parl paper G.45).

Chapter 26. Prices

Salvation Army Major Campbell Roberts uses the price of a can of beans to make his point during a protest.

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—the goods and services that are price surveyed, and their relative weights—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.

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.

EXPENDITURE WEIGHTS
By CPI group

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.

“Cost of Living and Anti-conscription demonstration. 2,600 people present. Christchurch Colosseum March 18th, 1917.”

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 2.0 percent in the year to June 1996, while “underlying inflation” rose by 2.3 percent—which is higher than the 0–2 percent target range for “underlying inflation”. As part of the coalition agreement reached by the National Party and New Zealand First this target was widened to 0–3 percent at the end of 1996.

Superannuitants Price Index (SPI). This measures changes in the level of prices of goods and services purchased by private 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, the index is published as a research index and released as part of the CPI.

The SPI for All Households for the June quarter 1996 was 2.0 percent higher than in the June 1995 quarter. The increase was dominated by a rise in the cost of housing, which was a similar factor in the 2.0 percent rise in the CPI over the same period.

From the June 1995 to the June 1996 quarter, the SPI for All Households Living in their Own Accommodation increased by 1.9 percent, while the SPI for All Households Living in Rented Accommodation increased by 3.6 percent. The increase in rental cost accounted for the difference between the two series.

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)

Source: Statistics New Zealand

Quarterly
1993—December1000100010001000
1994—March99810049971000
      June1002101710001004
      September1012103010101016
      December1020103610181028
1995—March1023104410211040
      June1031105210281050
      September1033106210291052
      December1038107110351058
1996—March1043108110381063
      June1052109010481071

CPI and RESERVE BANK “UNDERLYING INFLATION”
Change from previous quarter

FOOD
Change from previous quarter

Further development of the CPI–the 1998 revision of the CPI

Statistics New Zealand has started work on the five-yearly review of the CPI with the aim of introducing the revised index in the March 1999 quarter. The new base period (the period which is given an index value of 1000) for the index will be the December 1998 quarter.

The review will cover:

  • the concepts and methods used in compiling the CPI to ensure that the highest statistical standards are applied to the New Zealand CPI;

  • the various goods and services purchased by householders which should be represented in the CPI;

  • the expenditure weights with regard to the relative importance of each good or service;

  • the design of the price surveys which produce the ongoing data on which the index is calculated; and

  • current interest and concerns about the CPI.

Since 1988, there has been a major revision every five years to ensure that the CPI continues to reflect the current situation. Prior to that, there were revisions on a regular basis.

As part of the 1998 revision, a CPI Revision Advisory Committee met in May 1997 with two tasks:

  • to advise the Minister of Statistics on the purposes of the CPI; and

  • to advise the Government Statistician on the concepts and methods to be adopted in the calculation of the CPI in order to achieve a form of index consistent with its identified purposes.

In the past, committees have recommended or supported conceptual and methodological changes to the CPI. This has ensured that the index continued to be a relevant and up-to-date measure of changes in prices as they relate to private New Zealand households. They also ensured that the index continued to meet the needs of its users. Committees placed a strong emphasis on technical standards of the CPI. Past recommendations also endorsed contemporary international standards in terms of professional statistical theory and practice relevant to consumer price indexes.

Membership of the committee covers representatives of producer and consumer, employer and employee groups and major government policy agencies.

Implementing the revision. There are two main tasks in implementing a revision of the CPI:

Updating base weights: So that changes in the spending patterns of New Zealand consumers are taken into account, the revision includes updating the base weights of the index. These base weights indicate the relative importance of items purchased by households. The Household Economic Survey provides most of the information for this, and the 1997–98 survey will provide data for this exercise. In some areas, estimates of expenditure are calculated independently. This is particularly true for items that are rarely purchased (housing) or easily forgotten (sweets, newspapers, alcohol, etc).

HOUSING
Change from previous quarter

Table 26.3. CONSUMERS PRICE INDEX–ALL URBAN AREAS COMBINED BY GROUP

Year ended JuneAll groupsFoodHousingHouse-hold operationsApparelTransportationTobacco and alcoholic drinksPersonal and health careRecreation and educationCredit services
Source: Statistics New Zealand
1985563588..606588710451......
1986640657..690664781504......
1987747757..814773864637......
1988824818..867855920709......
1989862865..892890906771......
19909259628909409259288627998701245
19919659939409629629639048539301297
19929769869419749799739719499601147
1993988100295298798999598610109811029
19941001100010081000994996100110031006992
1995103410081083100498610041021101710371148
1996106110141142101097610021060104010801254
Quarter–
1993
Mar987101095098698399699010119751014
Jun993997968993100010059929919951028
Sep99810049909999949999979989961023
Dec1000100010001000100010001000100010001000
1994
Mar100010031011999989989100110051010984
Jun100499310301001993997100710091019960
Sep10169971061100398710031009101310221012
Dec102810041076100399210091016101410321092
1995
Mar104010111093100398010011023101910431215
Jun105010181102100598710051035102210501273
Sep105210051121100897610041044102610621259
Dec105810141134100797710031053103410681262
1996
Mar10631014114910109719991069104410911241
Jun107110231164101697910011073105410971254

Reviewing and updating price collection methods: All the surveys which collect prices for the CPI need to be reviewed and updated on a regular basis. The review of these surveys covers both items for which prices are collected (all of which need to be checked), the sample of outlets from which the data is collected, and the method by which we collect the data.

Other ongoing improvements to the CPI. As well as the major revision, Statistics New Zealand has an ongoing annual review process. The aims of this are to ensure that the index remains up-to-date and relevant. This annual review is particularly important to reduce the bias due to changes in shopping habits, in that the outlets from which we collect prices are reviewed each year. New products can be introduced at these annual reviews, as can minor changes to other elements of the CPI.

Analysis of price movements

The following section discusses the price changes in New Zealand as measured by the CPI over the year to June 1996.

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 1996 the CPI increased by 2.0 percent over the year. This follows a rise of 4.6 percent in the year to June 1995 and two consecutive June years in which the CPI rose by just over 1 percent.

Food. The all food group increased by 0.5 percent over the year. The prices of grocery foods increased by 4.2 percent over the year to June 1996. Prices for restaurant meals and ready-to-eat food also rose. These rises were partially offset by falls in the fruit and vegetables and meat, fish and poultry subgroups.

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.

The table 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

ItemUnitJune month
19921993199419951996

*Changed from 1 litre to 2 litre in December 1993.

Source: Statistics New Zealand

 $
Apples, eatingkg2.021.971.131.211.18
Bananaskg2.312.131.461.651.95
Orangeskg3.243.282.702.462.60
Cabbageskg1.110.621.181.300.82
Carrotskg1.071.010.981.221.07
Potatoeskg0.760.770.661.050.65
Peaches, canned452g1.901.881.801.751.82
Peas, frozenkg2.102.042.021.911.95
Beef, blade steakkg9.689.889.498.517.62
    porterhousekg14.7215.5615.1714.5813.52
    rump steakkg12.3111.6812.0911.3810.61
    prime rib, rolledkg8.118.558.377.877.40
    mincekg6.807.266.805.875.36
Hogget, forequarter chopskg6.247.477.456.586.81
Pork loin, chopskg10.6611.2010.3910.069.98
Bacon, middle rasherskg16.9516.6814.6514.4314.33
Sausages, beefkg4.154.304.104.064.08
Salmon, canned210g2.423.372.482.141.84
Chicken, frozen no 8each7.637.246.946.837.07
Milk, plastic bottle*211.191.212.362.372.58
Butter500g1.851.871.881.861.96
Cheese, cheddarkg8.007.986.916.586.77
Bread, white slicedeach1.821.791.551.521.72
Cake, light fruit450g3.974.023.984.064.02
Breakfast–flake biscuitskg4.044.103.813.874.18
Flour, white1.5kg1.821.781.501.511.60
Rice, white long grain500g0.840.811.371.341.35
Honey, creamed500g2.262.292.272.282.46
Coffee, instant100g3.213.093.014.884.53
Tea bags100g2.312.292.582.552.69
Margarine500g1.861.821.751.791.76
Tomato sauce, canned600g2.232.242.222.222.20
Spaghetti, canned440g1.401.401.281.351.38
Sugar, white1.5kg1.951.961.881.741.73
Lemonade1.511.751.721.511.451.47
Ice-cream, vanilla213.253.243.073.003.22
Chocolate, block275g3.353.393.293.303.77
Hamburgereach2.522.382.402.412.46
Meat pieeach1.641.631.952.002.08

TOBACCO & ALCOHOL
Change from previous June quarter

TRANSPORT
Change from previous June quarter

HOUSEHOLD OPERATION
Change from previous quarter

PERSONAL & HEALTH CARE
Annual change

APPAREL
Change from previous quarter

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 1996 year the housing group rose by 5.6 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 1.1 percent.

Apparel. Prices of clothing fell slightly in the 1996 year, reflecting a fall in the price of men's and women's clothing and a small rise in the price of boys‘, girls‘ and infants‘ clothing.

Transportation. The cost of domestic air travel increased while the cost of international air travel fell. Similarly, the price of used cars rose slightly while the price of new cars fell.

The overall cost associated with running a motor vehicle was unchanged, despite rises in the cost of servicing, insuring and relicensing a motor vehicle. The price of petrol fell over the year.

Tobacco products and alcoholic drinks. The price of tobacco products and alcoholic drinks rose by 3.7 percent during the year with the prices of cigarettes, tobacco, wine, beer, spirits and liqueurs rising. Taxes on tobacco and alcohol are adjusted annually, in line with the CPI. Tobacco tax is adjusted on 1 December while alcohol tax is adjusted on 1 June.

Personal and health care. Prices in the personal and health care group overall rose by 3.1 percent over the year. Prices within the personal goods and services subgroup rose by 2.5 percent (this subgroup includes hairdressing, cosmetics, personal accessories and services etc.). Health care increased by 3.8 percent due to increases in all fees charged in this subgroup, including general practitioners fees, dentists fees and medical insurance fees.

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 furnishingsHouse-hold supplies and servicesClothingFootwear
1991 Mar1113960988975946944875996999961981
      Jun1069952994980949945882994983973993
      Sep11139509949829619418859801007967993
      Dec1115939976984947938898982992973998
1992 Mar1069939983986948934916982997976985
      Jun10509389849909539389199919999861001
      Sep112395899199495593892499210029821001
      Dec108999099099595694392999310049831008
1993 Mar11609909929939649459369941003981990
      Jun100298899799797596697310029959971012
      Sep1046100299610019899899931004999993994
      Dec10001000100010001000100010001000100010001000
1994 Mar106298299710021029100610131000990990982
      Jun101896699210041086101410341004981992998
      Sep102995899810091131104110461003982986991
      Dec10719601000101411351060104910079769871015
1995 Mar1145933100410191157107510531001978978992
      Jun121992110011024117110821078996975984999
      Sep11498989971031122110931102994973972995
      Dec113091610131030123211061106990973975988
1996 Mar108090310291035125211201119981980973965
      Jun108690210431043125911381142977987980974
QuarterPublic transportPrivate transportTobacco productsAlcoholic drinksPersonal goods and servicesHealthcareStationery, books, magazines and news-papersLeisure and recreationEducation and child-careCredit services
Source: Statistics New Zealand
1991 Mar9979538169589407948919639031308
      Jun10199348379599468359179669171276
      Sep10269389299739488439279709181220
      Dec10129599739779458489569709201162
1992 Mar103596197497694610489419749231117
      Jun104296497697695510659659828951089
      Sep100698198397596710669829858951049
      Dec98199898598697610689869928981025
1993 Mar966100599299098010429639939081014
      Jun99110099949929859989889989961028
      Sep992999100099699510029969969971023
      Dec1000100010001000100010001000100010001000
1994 Mar9709929991002999101196510021093984
      Jun101499399910101001101699510041094960
      Sep10259991000101310001025997100910951012
      Dec103610041003102199710301015101810951092
1995 Mar10129981013102710031034996102711471215
      Jun105599510181043100510391020103011511273
      Sep107898810321049100510461048103711551259
      Dec105799110361060101210551081103611551262
1996 Mar101099710861062102110661062104512681241
      Jun103499410951064103010781108103612721254

Recreation and education. The price of recreation and education services rose by 4.5 percent over the year. The education and childcare subgroup rose by 10.5 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 later rose as lending institutions raised their interest rates on residential mortgages, and showed an increase of 32.6 percent for the June 1995 year. For the year to June 1996, the credit services group fell 1.5 percent, as mortgage interest rates again fell. Hire purchase costs increased over the same period.

CREDIT SERVICES
Change from previous quarter

A 1975 display of prices, showing increases since 1972. The prices of such items are now included in the Grocery Foods Sub-group of the Food Price Index, itself a sub-group of the CPI. At the time of this photo, grocery foods were not indexed separately, but the All-foods Price Index (which also included restaurant meals and fresh fruit and vegetables) rose from 130 in December 1972 to 173 in June 1975.

CPI - PERCENTAGE CHANGE
Annual comparison of groups, 1996

Table 26.6. RETAIL PRICES OF SELECTED ITEMS

CommodityJune quarter
19921993199419951996
Source: Statistics New Zealand
 $
Paint, white, 4169.6563.6860.0859.1864.41
Concrete blocks, per 100265.98272.77274.72279.09279.57
Gib-type board, per sheet17.6717.4518.0817.8718.03
Spouting/guttering, per 3 m15.6115.7316.9418.4718.79
Electric range1,313.501,325.281,361.471,340.841,408.06
Plug box14.5016.0415.4815.8015.04
Television set, colour1,145.151,044.05992.99887.43705.02
Electric hand drill, cordless174.30170.53231.96222.46225.46
Carpet, 100 percent wool125.33122.19111.50116.38114.94
Sheet, single30.1429.9923.1722.4122.33
Household broom18.2218.3418.8017.9117.28
Garden hose, 20 m23.3821.7421.7121.3222.82
Bleach, 1.512.602.622.602.582.58
Detergent, dishwashing, 900 ml3.073.102.822.973.16
Soap powder, 1 kg3.944.053.904.044.26
Cling food wrap, 15 m1.531.471.471.551.46
Electric light bulb, 100 watt1.101.091.031.051.04
Batteries, D size, twin pack2.852.892.832.942.96
Postage, letter, standard post0.450.450.450.450.40
Public broadcasting fee110.00110.00110.00110.00110.00
Veterinary services, cat68.9068.1666.8268.2869.35
Sweatshirt, men's30.7331.2836.5237.0436.13
T-shirt, men's13.5914.4114.2513.6514.14
Trackpants, men's64.5561.3138.5536.6835.39
Socks, men's7.777.488.178.198.28
Slip, half26.5123.7023.9822.9723.07
Pantyhose, 15 denier4.474.404.254.264.02
Jeans, boy's49.2146.9535.9933.9334.10
Shorts, boy's16.0716.2215.0815.2215.97
Wool, 50 g4.594.544.064.014.19
School shoes69.6272.6880.3177.8076.55
Warrant of fitness13.8114.4419.1820.6221.45
Cigarettes, filter5.265.376.536.636.89
Whisky, 1125 ml42.5841.7740.2139.7239.51
Razor blades, cartridge, five pack5.305.725.615.725.94
Tissues, facial2.612.662.552.652.71
Toilet paper, four rolls2.982.822.812.822.90
Hairdressing, men's13.8913.8713.3114.1214.66
Hairdressing, women's30.3130.1431.5133.6534.44
Soluble aspirin, packet of 242.372.382.302.352.40
Envelopes, packet of 201.481.441.471.431.64
Newspaper0.560.570.580.580.68
Developing and printing film, 24 colour prints16.6116.9617.8618.0417.85
Audio cassette, from top 1020.7821.1820.8320.9221.07
Tennis balls, can of four19.5219.8619.4918.7818.13
Rugby club subscription, annual73.7975.0270.2271.7073.83
Tennis club subscription, annual159.38164.51169.28150.49154.50

North and South Islands

Over the year to June 1996, prices rose by 2.1 percent in the North Island mainly due to rises in housing (up 5.8 percent), recreation and education (up 4.9 percent) and tobacco products and alcoholic drinks (up 3.6 percent). The credit services group had the largest fall of 1.3 percent.

Over this period, prices rose by 1.9 percent in the South Island and movements similar to the North Island were experienced. Housing (up 5.1 percent), tobacco products and alcoholic drinks (up 3.9 percent), personal and health care (up 3.6 percent) and recreation and education (up 3.3 percent) were the major increases. The credit services group had the largest fall of 2.3 percent.

Table 26.7. CONSUMERS PRICE INDEX–REGIONAL MOVEMENTS, YEAR TO 30 JUNE 1996

GroupAll centresNorth IslandSouth Island
Source: Statistics New Zealand
Food0.50.50.5
Housing5.65.85.1
Household operation1.11.11.3
Apparel-0.8-0.7-1.1
Transportation-0.4-0.5-0.2
Tobacco and alcohol drinks3.73.63.9
Personal and health care3.12.93.6
Recreation and education4.54.93.3
Credit services-1.5-1.3-2.3
All groups2.02.11.9

International comparisons

The following section discusses price movements in New Zealand as measured by the CPI over the year to June 1996, compared to price movements in the CPI in some other countries over the same period.

CONSUMERS PRICE INDEX
International comparison

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 1996 year. Over this period, the CPI increased by less than 3 percent in all countries shown except Australia.

Australia–Contributing significantly to the annual increase in consumer prices were cigarette and tobacco prices, vehicle insurance, petrol and beer prices, mortgage interest charges and charges for hospital and medical services. Significant price falls were recorded for local government rates and charges and video and sound equipment.

Canada–Significant price increases were recorded for new vehicles, petrol, meat (other than beef), telephone services, residential rents and restaurant meals while prices fell for mortgage interest charges, new houses, fresh vegetables and beef over the year.

United Kingdom–Overall increases in prices for the year to June 1996 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 1996, overall price increases were recorded for food and beverages, housing, transportation, medical care, entertainment, other goods and services and apparel and upkeep.

Table 26.8. INTERNATIONAL COMPARISON OF QUARTERLY CONSUMERS PRICE INDEX
Excluding housing and credit services

QuarterNew ZealandAustraliaCanadaJapanWest GermanyUnited KingdomUnited States
Source: Statistics New Zealand
1991 Mar956939952965918885927
      Jun957942961975975925932
      Sep965951965973942931938
      Dec968962961986945942946
1992 Mar978966965981956948950
      Jun982966972994967966960
      Sep988970977988971965966
      Dec992977980992972972975
1993 Mar995986988991988975983
      Jun9979899901000994995989
      Sep9999959961005996998992
      Dec1000100010001000100010001000
1994 Mar99910049931001101410031004
      Jun100110119901005101910171011
      Sep100410179961001102210161020
      Dec100910229981006102010211024
1995 Mar101110331012998102610301031
      Jun1017104510221002103010431042
      Sep101610581024997103310461045
      Dec102010671024997102910521049
1996 Mar102410731030993103610581058
      Jun1031108010421002104010711070

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.

A page of meat coupons from a World War II ration book. The basic weekly allowance for meat per person was 1/3d (5 x 3d coupons) plus the value of the “H" coupon.

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 the change in the prices received by producers in the New Zealand economy ("outputs”) and the change in the prices of goods and services paid for by producers in the economy ("inputs”).

The format of the PPI is based on the economic activities assigned in the Australian and New Zealand Standard Industrial Classification (ANZSIC). The indexes measuring changes in input prices are published for 24 industry groups, including several non-market industries. Output indexes are published for the 21 market-oriented industry groups.

The index is calculated quarterly from price quotes which are collected mainly by postal survey. Approximately 13,000 individual commodity items are surveyed from about 3,000 respondents. Prices are generally collected each quarter with the price on the 15th of the middle month of the quarter being measured. Prices may be obtained monthly or annually depending on the nature of the item.

The prices used to calculate the output indexes are those prevailing at the “factory door” (price received by the producer). Taxes including GST are excluded. The input indexes include such things as materials, fuels, electricity, rental, net insurance, etc. Excluded from the index are wages and salaries (see Labour Cost Index), Capital Expenditure (see Capital Goods Price Index) and government taxes, although GST is included where it is non-recoverable. Imported commodities include freight, insurance and customs duty.

The weightings applied to the prices collected are determined by the relative importance of commodities and businesses within the industry or industry group. Information from various economic surveys and censuses is used to determine the weightings. 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 PPI is a Laspeyres base-weighted price index series.

All the industry and group indexes are being redeveloped. Information about this is included with the quarterly release of the PPI.

Table 26.9. PRODUCERS PRICE INDEX–INPUTS*

Industry groupQuarter ended
Sep 1995Dec 1995Mar 1996Jun 1996Sep 1996Dec 1996

*Base: December quarter 1982 (= 1000). Input prices are producer's prices and include commodity taxes paid and subsidies received by the producer.

†Includes industry groups 5-13.

‡Includes industry groups 1-21.

Source: Statistics New Zealand

1 Agriculture169116841694169217011713
      Sheep and beef farming169416811691168716931711
      Dairy farming172917241729172417311728
      Horticulture farming163916311638163616401648
      Cropping and other farming163016371663167416941714
      All farming169316851696169417011713
      Agricultural contracting161016141636164216501665
2 Fishing and hunting149315231554153815291544
3 Forestry and logging181518451858183118281812
4 Mining and quarrying160016161612163116331641
5 Food, beverages and tobacco158615911587158816151620
      Primary food processing151615251521150715541570
      Other food processing160816071602162616181602
6 Textiles, apparel and leather163016061607156415711554
7 Wood and wood products226322172221222922092191
8 Paper, printing and publishing185118801903181817991798
9 Chemicals, petroleum and plastics125412391269125612511266
10 Non-metallic mineral products180518031816182718341832
11 Basic metals165816461643164416201606
12 Machinery and metal products187618801864185118171793
13 Other manufacturing185018351838184118271818
14 Electricity, gas and water187017761787181018251827
15 Construction185318681877188118821892
16 Trade, restaurants and hotels203720522059206520852100
      Wholesale and retail trade209421102121212821462162
      Hotels, restaurants, takeaways189619051901190719341942
17 Transport and storage175317631763175617641774
      Road transport150215121515150515251541
      Transport and storage other than road185218611861185418581866
18 Communications161015931604162016211626
19 Insurance and financing232523322341235823622368
20 Ownership of dwellings231823172319232423332335
21 Community and personal services194919611973198619861980
22 Central government186318711886189118781880
23 Local government182918511860186518451842
24 Private non-profit services204720632077209620802091
All manufacturing groups167416701674165616531648
All market groups182518261832182818321835
All industry183018311838183418371839

Queuing for poultry outside Salisbury's, Dixon Street, Wellington, during World War II. Rationing inevitably caused price distortions, and many rationed items could be obtained at higher than official prices on the “black market.”

The PPI can be used in the analysis of inflationary trends, in economic forecasting and in estimating economic growth (deflators used to derive constant price indicators). The index is also widely used to determine the increases allowable under escalation clauses in commercial contracts.

Table 26.1. PRODUCERS PRICE INDEX–OUTPUTS*

Industry groupQuarter ended
Sep 1995Dec 1995Mar 1996Jun 1996Sep 1996Dec 1996

*Base: December quarter 1982 (= 1000).

†Includes industry groups 5 to 13.

‡Includes industry groups 1 to 21.

Source: Statistics New Zealand

1 Agriculture153915381529150315551572
2 Fishing and hunting212320232006207021152148
3 Forestry and logging408241904208388237903764
4 Mining and quarrying121812311229125612621298
5 Food, beverages and tobacco172717461726173517661780
      Primary food processing154115751532154215601585
      Other food processing198519822003200920602055
6 Textiles, apparel and leather160515851582155015591548
7 Wood and wood products223122332212221721802170
8 Paper, printing and publishing196319731941190718941889
9 Chemicals, petroleum and plastics137913851388140514071402
10 Non-metallic mineral products174717501766177117701772
11 Basic metals161315971571153814961465
12 Machinery and metal products198219911986198619741974
13 Other manufacturing176017731772177117771774
14 Electricity, gas and water200419541971199820172011
15 Construction18471871R1884R1896R1892R1900
16 Trade, restaurants and hotels185118631856185618531859
      Wholesale and retail trade179918091799179717901796
      Hotels, restaurants, takeaways207820912108210821252135
17 Transport and storage155115381505151415001512
      Road transport163616351639164816491651
      Transport and storage other than road149114731424143414131430
18 Communications147214501461146014561460
19 Insurance and financing252324402536254325402526
20 Ownership of dwellings308731333206323132763276
21 Community and personal services225022522260227822922297
All manufacturing groups176917761764176117631762
All market groups190619051909R190719141917

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
Sep 1995Dec 1995Mar 1996Jun 1996Sep 1996Dec 1996

*Base: December 1989 quarter (=1000). Output prices are factory door prices, or as close to this level as it is a firm's practice to price, before addition of commodity taxes or deduction of producer commodity subsidies.

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.

Source: Statistics New Zealand

Residential buildings127112931315134013411345
Non-residential buildings108910971101110011011104
Other construction109011111116112411191115
Land improvements111511171123113011311139
Transport equipment119711971195119311871186
Plant, machinery, and equipment112211251120111511131112
All groups113011361136113511331132

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 G.28a, 1988).

Articles on prices in earlier Yearbooks

Retail prices in New Zealand with special reference to the Consumers‘ Price Index (1947–49 Yearbook, p998–1016).

Revision of Consumers Price Index 1974 (1975 Yearbook, p1039–51).

Consumers Price Index 1980 revision (1981 Yearbook, p975–81).

Short articles in the 1990 Yearbook:

Price changes over a century (p614).

[The 1912] Royal Commission on the Cost of Living (p616).

A tangle of price controls (p623).

Chapter 27. Money and banking

The Reserve Bank Currency Policy and Supply Manager compares a real $100 note with a forgery. The bank detected 70 forgeries during the year, out of 498 million notes processed.

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 June 1997 there were 18 registered banks, four of which were the former trading banks. The remaining 14 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;

  • 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. This 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 “connected persons” (ie 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 disclosure regime strengthens existing market disciplines on banks and provides a sharpened focus on the role of bank directors in overseeing the management of banking risks. The disclosure regime also provides 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.

  • 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.

Table 27.1. ASSETS OF THE RESERVE BANK

As at 30 JuneDenominated in foreign currencyDenominated in New Zealand dollars
Current account and advancesMarketable securitiesIMF holdings of SDRsForeign assetsAdvances
Settlement institutions *Crown Settlement accountAdvances to Treasury

*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)
19921,5052,81222743-1,124
19931,6742,9491-1,285-1,082
19941,2542,900--850-1,176
1995R1,1132,889--773-1,250
19961,2973,0561-682-1,249
As at 30 JuneDenominated in New Zealand dollars
Investment in NZ
Government securitiesOtherFixed assets and inventoriesOther assets §Total assets
19921,2963266197,601
19931,280272128,359
19941,247-70117,508
1995R1,519-6197,614
19961,982-6178,335

A warm farewell after the decimal currency changeover–£760,000 in £ s d notes being burnt at the Reserve Bank, July 1968.

  • 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 declined between 1990 and 1995 as a result of this process (falling from a peak of 23 as at August 1990 to 15 as at July 1995). In the year to 31 March 1996, however, four new banks have been registered (and one deregistered), amounting to a current total of 18 registered banks. The number of banks per capita is still relatively high by international standards, 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.

The New Zealand banking system is characterised by a high degree of foreign ownership, particularly Australian ownership. As at December 1996 around 99 percent of the assets of the New Zealand banking system were under the ownership of a foreign bank parent, with approximately 70 percent being under the ownership of an Australian bank parent. This provides a source of strength for the system, giving local banks access to capital resources and banking expertise.

The registered banks operating in New Zealand as at June 1996 are:

  • Multi-purpose banks–ANZ Banking Group (New Zealand) Limited (incorporating PostBank); Bank of New Zealand; The National Bank of New Zealand Limited; and Westpac Banking Corporation (incorporating TrustBank).

  • Wholesale banks–Bankers Trust New Zealand Limited; Banque Nationale de Paris; Bank of Tokyo-Mitsubishi (Australia) Limited; Deutsche Bank AG; Credit Agricole Indosuez; Barclays Bank PLC; BNZ Finance Limited; Citibank NA; Primary Industry Bank of Australia Limited; Rabobank Nederland and The Hong Kong and Shanghai Banking Corporation.

  • Mainly retail banks–ASB Bank Limited; Countrywide Banking Corporation Limited; and TSB Bank Limited.

Nine of the 18 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 18 banks at 31 December 1996 operated 1,278 customer service outlets throughout the country. 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.

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
19942603,5463471,132264
1995R723,5963341,241280
19963813,6703011,249535
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
1995R3581,516294857,614
199618281,59955498,335

Mobile EFTPOS terminal–buying a coffee from a street stall in Wellington, 1996.

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 1,502 bank-owned automated teller machines in New Zealand at 31 December 1996.

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. At December 1996 there were around 46,360 EFTPOS terminals in use in New Zealand at supermarkets, service stations, liquor markets and a range of other retail outlets. In 1996 there were approximately 20 million payments transacted through EFTPOS per month, at an average value of $47 per transaction.

Credit cards provide an increasingly popular means for people to buy goods and services without having to handle cash. There are up to 1.7 million cards on issue nationally and around 90,000 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 second edition of the Code was issued in November 1996 following a comprehensive public review. 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 nine 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. Rated average capital adequacy of non-branch registered New Zealand banks at June 1996 was 10.38 percent.

Net profit after tax as a percentage of total assets employed for New Zealand banks was 1.2 percent for the December 1996 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
1993199419951996

*Includes trade creditors/debtors, accounts payable/receivable, and items in transit, timing and statistical adjustments.

Any two entities, ie, 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$(million)
NZ dollar funding–
      NZ residents60,887x65,62272,16783,105
      Non-residents9,778x8,7329,96913,137
      Total, NZ$ funding70,665x74,35382,13696,242
Foreign currency funding–
      NZ residents2,3912,1491,7042,642
      Non-residents8,246x10,96710,3689,157
      Total10,637x13,11612,07211,800
Capital and reserves6,549x6,3906,0536,321
Miscellaneous*1,633x3,1373,8384,666
      Total liabilities89,483x96,996104,098119,028
Funding from associates  12,72713,564
Unused committed borrowing
      Lines and standby facilities available to surveyed institutions870422321982
Assets–
NZ Government securities9,114x8,6326,2402,605
(includes Treasury bills)
NZ currency299279277283
Balances with the Reserve Bank1,0591,1851,2551,245
NZ dollar claims–
      NZ residents70,458x78,01987,305102,484
      Non-residents784x9598621,568
      Total, NZ$ claims71,242x78,97888,166104,053
Foreign currency claims
      NZ residents2,9362,9843,0622,680
      Non-residents8849649941,011
      Total3,8203,9474,0563,690
Foreign (currency) fixed assets and equity investment26625910047
Shares (in NZ companies)1,5811,2928511,947
Fixed assets (in NZ)1,5181,4991,9221,989
Miscellaneous*583x9261,2313,169
      Total assets89,483x96,996104,098119,028
Financial claims on associates3,5222,5841,7141,812

BNZ technology manager teaches NZ Association for the Blind members how to use a new braille ATM, 1995.

Entrance of the Reserve Bank, Wellington, about 1955.

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.

Table 27.4. INDUSTRY 8: BUSINESS AND FINANCIAL SERVICES
New Zealand Standard Industrial Classification (NZSIC) = Divisions 81, 82, & 83 (except 81492, 82200, 83113, 83120-83129)

Statistical Item (1)1993/94 $(m)1994/95 $(m)Percentage change
*There may be rounding errors due to the aggregation. For more detail see Business Activity Statistics 1996 (Statistics New Zealand).
Closing Stocks255.6162.0-36.6
Opening Stocks230.5146.4-36.5
Sales of goods & services16,467.318,166.810.3
Interest, dividends, etc16,483.919,284.117.0
Government grants & subsidies74.061.5-16.9
Other income including extraordinaries6,438.73,686.4-42.7
Total income39,463.841,198.74.4
Total income adjusted for inventories39,489.041,214.44.4
Salaries & wages paid to employees4,383.24,642.35.9
Redundancy & severance43.933.2-24.3
Salaries & wages to self employed commission agents501.4599.819.6
Salaries & wages to working proprietors (SW to WPs)625.2800.728.1
Levies paid to accident compensation corporation63.860.9-4.5
Employer contributions to superannuation schemes112.3119.16.1
Fringe benefit tax72.774.52.5
Purchases & other operating expenses10,184.311,711.615.0
Interest, donations, etc9,885.311,571.617.1
Indirect taxes (excl FBT)66.159.6-9.7
Depreciation719.6835.016.0
Other expenses including extraordinaries3,073.34,092.133.2
Total expenditure29,685.634,567.216.4
Net profit before tax, extraordinaries, SW to WPs7,063.37,853.611.2
Net profit before tax, SW to WPs10,428.67,447.9-28.6
Purchases of plant, machinery, vehicles & equipment906.01,501.565.7
Purchases of land & land improvements162.864.8-60.2
Purchases of buildings & other construction273.2212.8-22.1
Total purchases of fixed tangible assets1,342.01,779.132.6
Sales of fixed tangible assets647.7614.5-5.1
Shareholders funds or owners equity102,057.7106,669.64.5
Other liabilities198,154.8203,478.32.7
Total capital & liabilities300,212.6310,147.93.3
Fixed tangible assets6,724.06,282.4-6.6
Other assets293,488.6303,865.53.5
Total assets300,212.6310,147.93.3
Ratios (1)
Total income per FTE$274,808$287,066 
Net profit per FTE$49,186$54,723 
Profit margin on sales42.9%43.2% 
Return on equity6.9%7.4% 
Return on total assets2.4%2.5% 
Liabilities structure34.0%34.4% 

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 via the Annual Enterprise Survey (see section 17.1, Business statistics). Detailed information has been collected on the banking and finance industry as part of the “Rest of the Economy” census (see 17.1).

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).

27.2 Money

Currency

The present decimal currency system was introduced in 1967, when the dollar as the monetary unit replaced the previous system of pounds, shillings and pence.

The Reserve Bank has 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 December 1996 was $1,495 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 3 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 0–3 percent range. Consumer price inflation is currently within the 0 to 3 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.

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, ie 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 achieved in late 1991. Since then, some breaches have occurred but these have been minor. With the formation of the Coalition government in December 1996, the price stability target was widened to 0 to 3 percent underlying inflation.

Decimal changeover–destruction of old £, s d cash registers, 1967.

Table 27.5. MONEY SUPPLY AND CREDIT AGGREGATES

Selected aggregatesAs at 31 March
1993199419951996

*Readily available money supply.

Broad money supply, including term deposits.

Source: Reserve Bank of New Zealand

 $(million)
Monetary
      Notes and coin held by the public1,0811,2171,3001,397
      Transaction account balances8,522x9,5479,50210,208
      Less, inter-institutional transaction balances480x2713939
      Less, government deposits21181717
            M1*9,102x10,47510,74611,548
Other funds58,907x62,21770,77179,060
Less other inter-institutional funding5,884x6,81510,47611,590
Less government deposits818x5461,315570
M361,307x65,33269,72678,449
Credit
      Gross claims–
        (a) Surveyed institutions70,990x79,91586,29999,300
        (b) Other16321
 71,006x79,91886,30199,301
Less inter-institutional claims7,2297,8569,04010,295
                Private sector credit63,777x72,06277,26189,007
Marketing and stabilisation1111
Claims on government–
      (a) Surveyed institutions8.154x7,3324,5372,635
      (b) Reserve Bank1,5181,7322,3232,161
      (c) Coins in circulation149160169182
            Total9,821x9,2247,0294,978
            Domestic credit73,599x81,28784,291R93,986

Government securities market

The Government currently sells three types of debt instruments to meet its core financing requirements:

  • Government bonds, which are 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 bonds have 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, ie 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 bonds, which are 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, ie may be sold by the holder to another party. Bonds are 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 bonds 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 June 1997 the value of total government securities registered was $28,878 million. Of this total $28,410.9 million comprised Treasury bills and other wholesale government bonds while government retail bonds of $459.1 million were 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.

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.

Dollars and Cents–Front page of a booklet produced by the Decimal Currency Board in 1967 “to help older Māoris handle our new money”.

EXCHANGE RATE Trade-weighted index

Table 27.6. GOVERNMENT SECURITIES ON ISSUE

 As at
September 1993March 1994September 1994March 1995September 1995March 1996September 1996
Source: Reserve Bank of New Zealand
 $(million)
Ordinary government bonds, by maturity:
      Less than or equal to 1 month--316.7197.4--302.8
      More than 1 month, up to 3 months1,404.3107.9--2,065.2-2,339.6
      More than 3 months, up to 6 months-151.21,860.1----
      More than 6 months, up to 2 years3,455.05,652.22,922.45,772.45,360.15,360.14,986.6
      More than 2 years, up to 5 years10,709.77,983.17,974.27,777.86,169.17,738.15,979.2
      More than 5 years5,394.06,942.78,905.47,689.29,135.29,159.29,619.1
Treasury bills by maturity: Less than or equal to 3 months2,283.03,045.04,253.03,426.03,649.02,928.04,151.0
      More than 3 months, up to 6 months1,590.01.720.01,665.01,776.01,700.01,700.02,295.0
      More than 6 months, up to 1 year1,260.01,205.01,070.01,325.01,250.01,176.01,100.0
      Unclassified1,040.3248.9368.7402.3355.0443.0241.0
Index linked stock56.039.339.339.339.3163.0368.1
Government stock coupons222.0170.7260.7170.7170.7170.7170.7
Kiwi stock7.77.5-----
IASBs180.9171.3-----
ONZ Bonds6.56.3-----
Kiwi Bonds570.1538.4529.8555.0561.2538.7430.2
            Total internal public debt28,179.527,979.530,165.329,131.130,454.829,376.831,983.3

KEY MARKET RATES Monthly averages by type

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 and 1996.

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. When New Zealand's inflation rate was below that of our trading partners, the loss in competitiveness from the appreciation in the nominal exchange rate was 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.

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$1Exchange Rate Index Base June 1979 = 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.

Source: Reserve Bank of New Zealand

1995–
November0.65460.42650.874166.480.941162.1
December0.65440.42170.884968.870.944062.9
1996–
January0.66870.44410.898271.780.996564.7
February0.67110.43780.879870.240.985563.8
March0.67840.44490.868872.061.000964.3
April0.68640.45560.871872.051.048064.9
May0.68240.44470.855473.501.047064.5
June0.68400.44160.867174.791.039265.1
July0.69360.44560.887374.821.024265.8
August0.69190.44410.873974.981.021665.5
September0.69930.44730.884077.561.066566.7
October0.70530.43200.890880.511.066467.4
November0.70910.42190.874880.641.086566.9
December0.70600.41760.887082.071.098167.5

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)

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 B.6).

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. New Zealand Bankers‘ Association.

Key Statistics. Statistics New Zealand (monthly).

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 B.18).

Report of the Reserve Bank of New Zealand (Parl paper B.16).

Reserve Bank Bulletin. Reserve Bank of New Zealand (quarterly).

Survey of New Zealand Financial Institutions. KPMG Peat Marwick (annual).

The impact of monetary policy on exporters (1996). Reserve Bank of New Zealand.

The impact of monetary policy on people (1997). Reserve Bank of New Zealand.

This is the Reserve Bank (1997). Reserve Bank of New Zealand.

Weekly Statistical Release. Reserve Bank of New Zealand.

Your bank's disclosure statement–what's in it for you? Reserve Bank of New Zealand.

Reserve Bank home page: www.rbnz.govt.nz.

Chapter 28. Public sector finance

Clients at the counter of the Inland Revenue Department, 1974.

28.1 Central government finance

The New Zealand financial management system is concerned with public sector performance in all its forms. Each element of the system reinforces the other elements to provide a comprehensive approach to implementing the Government's strategy, facilitating high-quality decision making by management, and enabling effective scrutiny by Parliament.

The system is designed to:

  • help the Government to translate its strategy into action;

  • promote informed decision-making and accountability; and

  • encourage the state sector to be responsive and efficient.

The system achieves these aims through the planning, decision-making and scrutiny processes that culminate in the passing of the Government's Budget, the incentives for managing efficiently, and the reporting and feedback processes.

The system emphasises specifying expected performance that is within the control of managers, delegating the necessary authority to achieve high-quality performance, providing incentives to perform to the levels expected and measuring that achievement in a timely and consistent manner.

The system is continuously examined and refined to meet emerging needs and to ensure that any one element of the regime is not overly burdened. It has gained general acceptance by most players within the system and is seen as a model for other countries to follow.

Lines of accountability. Cabinet Ministers are formally responsible for specifying performance requirements of the chief executives of departments. Chief executives are in turn responsible for service delivery and have the necessary managerial decision-making authority delegated to them. There are incentives to perform and requirements for performance information, as a basis for monitoring and assessment.

This scheme was implemented by two Acts of Parliament: the State Sector Act 1988 and the Public Finance Act 1989. In 1994 it was supplemented by the Fiscal Responsibility Act which specifies principles of responsible fiscal management and requires the Government to be transparent about its fiscal policy objectives (see box).

Roles and responsibilities. The State Sector Act sets out the roles and responsibilities of ministers and chief executives. These are further clarified by the annual performance agreements negotiated by these parties. These agreements:

  • link to the Strategic Result Areas (SRAs) of government–the critical medium-term objectives for the public sector that contribute significantly to the Government's longer-term policy goals;

  • identify Key Result Areas (KRAs)–the major contributions each department will make to the Government's medium- to long-term objectives in the SRAs; and

  • specify the outputs to be delivered in terms of quantity, quality and cost.

Chief executives have a five-year contract term with tenure based on performance. They are appointed and employed by the State Services Commissioner, though Cabinet may veto appointments. They are then the legal employers of the staff in their departments. This gives the chief executives powers to hire and fire, set salaries and negotiate conditions of employment.

Financial management

The Public Finance Act 1989 governs the financial management regime. It:

  • removed many administrative controls;

  • defines the appropriation process in terms of outputs;

  • makes chief executives responsible for departmental financial management; and

  • establishes departmental and Crown reporting requirements.

These provisions are all designed to clarify the accountabilities of chief executives. Centralised input controls, previously established though Treasury Instructions, and the requirement to use centralised monopoly suppliers such as accommodation, vehicles, computers, office services, etc are no longer a feature of the New Zealand government management system.

Defining performance in terms of purchase and ownership interests. In chief executives‘ annual performance agreements, performance distinguishes between the Government's interest in the performance of a department as the owner seeking efficient use of its resources on the one hand, and on the other as the purchaser of the services being either directly to the Government or to third parties. As purchasers, ministers are looking for a given quality of goods and services at the best price.

Distinguishing these perspectives clarifies expectations – clear specification of the deliverables and a full accrual-based accounting of the resources consumed in their production is therefore essential.

Setting objectives. The New Zealand system focuses on outputs, rather than inputs or outcomes. Focusing on outputs means delivery of services is more able to be attributed to chief executives than any ultimate consequences (outcomes) of that service delivery.

Ministers and others have good information about the specific services supplied by a department, and what those services cost. Also, ministers can acquire services from sources other than the specific department, or reduce the amount of services being produced. Ministers can compare the performance of departments with other agencies in the public and private sectors. This encourages departments not to adopt a short-term, mechanistic approach to output production but rather to develop and market their services by strengthening their contribution to the Government's strategic objectives.

The Budget process

The Fiscal Responsibility Act 1994 requires the Government to clearly formulate and report its fiscal policy objectives. Using GAAP (Generally Accepted Accounting Practice) a number of principles have been formulated to define responsible fiscal management. These are that:

  • debt should be reduced to prudent levels;

  • operating expenses should not exceed operating revenues over a reasonable period;

  • Crown net worth should be maintained at sufficient levels to counter adverse events;

  • the fiscal risks facing the Government should be managed prudently; and

  • fiscal policies should be consistent with predictable stable tax rates.

As part of the budget process, the Minister of Finance must report on the Government's fiscal objectives, the extent to which these objectives are consistent with the above principles and the justification for any inconsistency. These fiscal objectives are first presented to Parliament by 31 March in the Budget Policy Statement, three months before the start of the financial year. Debate on these objectives therefore takes place before the Budget itself.

Currently, the Government maintains a baseline budget projecting current policies forward three years. Baseline updates occur regularly as the Government determines adjustments in accordance with its strategic and fiscal objectives. Outside these budget update processes, amendments to the baseline are permitted only for:

  • fiscally neutral adjustments;

  • unavoidable or uncontrollable expenses;

  • natural disasters or civil emergencies;

  • recognition of existing liabilities; and

  • capital investments supported by business plans and a sound business case.

The Budget must be introduced to the House by the end of July, and the associated Appropriation Act must be passed by the end of October.

Revised economic and fiscal forecasts are published half-yearly and immediately before a general election. These fiscal forecasts must be prepared on a GAAP basis consistent with the other reports, and must include a Statement of Fiscal Risks and Contingent Liabilities which describe, and quantify if possible, all the specific and general fiscal risks associated with the forecasts.

Accrual-based appropriations. Parliament authorises expenditure of public money by ministers, departments and offices of Parliament through the appropriation process. Appropriations are made separately for:

  • expenses incurred on each class of outputs;

  • benefits or other unrequited expenses;

  • borrowing expenses;

  • other expenses;

  • capital injections;

  • the purchase or development of capital assets; and

  • repayment of debt.

This gives Parliament control over the outputs purchased from departments and others, what sized balance sheets it thinks is needed to produce those outputs, and what resources it wants transferred between different groups in the community, but which do not involve the production of outputs.

Charging for capital. A common weakness in government financial management systems is the incentive for budget maximisation and for accumulating assets of low utility. To counter this the Government now charges departments for the capital they use.

Cost allocations. Focusing on outputs requires cost accounting systems which allocate costs, including the capital charge, to those outputs. Costs can then be compared with similar costs that would be incurred by other suppliers both in the public and private sectors.

These costing systems help ministers reprioritise and choose the appropriate mix of outputs to achieve the desired outcomes. These systems have also identified opportunities for improving output performance and facilitated cost recovery where there are recognisable recipients of the service or output.

Cash management. Before the start of each year, each department negotiates with the Treasury a profile of cash injections during the year. Once this cash profile is agreed, there is a system of interest rate rewards and penalties for effective cash management by departments.

The Treasury operates a central cash management system which sweeps all the departmental bank accounts each night and invests spare funds in the overnight money market.

Generally Accepted Accounting Practice (GAAP). The Public Finance Act requires that the Financial Statements for the Government are prepared in accordance with the generally accepted accounting practice. The Financial Reporting Act 1993 established the Accounting Standards and Research Board, to set accounting standards which are binding on government agencies as well as private sector companies.

This approach made it possible for the entire accounting system of the Government to be totally revised and upgraded over two years because the standards, conventions and software already existed as did accountants with the skills to apply them.

External reporting

The Financial Statements of the Government of New Zealand include the following key statements:

  • Statement of Financial Performance;

  • Statement of Financial Position;

  • Statement of Cash Flows; and

  • Statement of Contingent Liabilities.

Departmental Financial Statements contain the same key statements as above but also report:

  • Statement of Objectives; and

  • Statement of Service Performance.

The publication of a balance sheet with an audit opinion attached within three months of the end of the financial year for the whole of government is a unique feature of the New Zealand financial management system.

Valuation problems are generally dealt with in conventional and pragmatic ways that provide a good estimate of net current value by using a realisable value, or a depreciated replacement cost approach.

The underlying information systems provide new and superior information to the national statistical data collection for the system of national accounts.

The balance sheet can also indicate movements in net worth caused by the relationship between capital consumption and new investment. It can provide an indicator of whether the Government is running down its estate to maintain current consumption.

In a real economic sense the power of the Government to tax its citizens provides a guarantee of revenue which is not available to a private sector company. This power can however be viewed as analogous to mutual or co-operative organisations that levy their members. This is not treated as an asset as members want to know the financial position of the organisation before the exercise of the power to levy. Further, it is impossible to value this “asset" with sufficient reliability and an attempt to do so would drown the other information in the balance sheet. On the liabilities side the value of future social welfare obligations is a similarly large item over which the government has significant discretion and which is very difficult to quantify.

Parliamentary scrutiny

The Parliament's scrutiny of the Government's financial performance follows the budget and reporting events through the year. The following chart summarises these:

The Budget documents incorporate:

  • the Government's budget speech and fiscal strategy over the medium term (10 years),

  • an economic and fiscal outlook including the Government's forecast financial statements,

  • the Estimates of Appropriations that Ministers seek from Parliament, and

  • departmental forecast reports for each government department.

Progress against budget is reported monthly from the end of the first quarter. These reports are also prepared on a GAAP basis consistent with the forecasts and must be published within six weeks of the end of the month. The annual financial statements must be prepared and audited within three months.

Parliament and its committees scrutinise the financial management of the executive in three ways, comparing actual performance with planned performance:

  • scrutiny of the Government's intentions for the current year as expressed in its budget proposals, and of its actual performance reported in the Financial Statements of the Government;

  • xml:id="page609"/>examination of the actual performance of departments as reported in their annual reports and financial statements and in comparison with the plans laid a year earlier;

  • examination of the performance of state-owned enterprises and other non-departmental government entities.

Table 28.1. EXPENSES

 Years ending 30 June
1993 Actual1994 Actual1995 Actual1996 Actual1997 Forecast1998 Projection1999 Projection
Source: Financial Statements of the Government of New Zealand 1996, Pre-Election Economic and Fiscal Update September 1996. The Treasury
 $(million)
By input type
Subsidies and transfer payments
      (see analysis below)11,95310,80911,14811,44111,99312,33712,488
Operating expenses
      (see analysis below)10,38911,82712,04412,79313,60413,68813,971
Personnel expenses (excluding
   pension expenses)2,3952,3362,3252,3732,3572,3142,305
      Pension expenses1,320748827812728732752
Depreciation839799741713776833954
Rental and leasing costs220214217241232233233
(Gain)/loss on sale of assets5616(108)444....
Finance costs (see analysis below)3,9613,7883,7573,7033,0942,4812,163
Net foreign-exchange gains on liabilities324(1,340)(773)(1276)......
Net foreign-exchange losses/(gains) on assets(28)442222673.... 
Provision for initiatives under development...........  
Contingency expense provision...... 150200200
            Total expenses31,42929,63930,40031,74332,91732,77932,899
Analysis of subsidies and transfer payments
Social assistance grants
      New Zealand superannuation4,9854,9314,9825,0515,0665,0395,011
      Unemployment benefit1,5721,4831,3201,2361,2641,2181,147
      Domestic purposes benefit1,1921,2041,2691,3621,4621,5171,566
      Family support580645700748828911934
      Student allowances238247265293313335351
      Other social assistance grants1,8031,9302,2532,4212,6852,9093,080
Subsidies1,427206163147177187167
Other transfer payments Official development assistance141130170165184206217
Other15332618141515
      Total subsidies and transfer payments11,95310,80911,14811,44111,99312,33712,488
Analysis of operating expenses
Education purchases
      Early childhood education196212212227268290307
      Primary and secondary education2,2932,2912,3562,4712,6832,8092,860
      Tertiary education and training1,2851,3461,3721,4061,4291,4381,448
Health purchases2,6774,3954,6454,9585,3255,3755,472
Science purchases272279295304319358398
Other operating expenses3,6663,3043,1643,4273,5803,4183,486
      Total operating expenses10,38911,82712,04412,79313,60413,68813,971
Analysis of finance costs
Interest
      New Zealand dollars2,3792,4202,7632,7322,5442,0921,844
      Foreign currencies1,5371,242973708527366296
Other finance costs4512621263232323
      Total finance costs3,9613,7883,7573,7033,0942,4812,163
SOE DIVIDEND PAYMENTS TO THE CROWN
1995 and 1996 financial years19951996

*including special dividend

Source: CCMAU

 $000
Auckland International Airport (51.6% owned)10,78212,082
Airways Corporation of New Zealand6,6257,050
Christchurch International Airport (25% owned)1,2241,210
Coal Corporation of New Zealand13,3198,450
Contact Energy (established 1996)-150,000
Crown Forestry Management Electricity Corporation of New Zealand856,000*1,416,000*
Government Property Services--
Land Corporation50,00037,000
Meteorological Service of New Zealand1,3802,800*
New Zealand Post85,41785,310
Radio New Zealand796849
Television New Zealand30,20062,400*
Trans Power New Zealand50,71462,658
Timberlands West Coast--
Vehicle Testing New Zealand Ltd690492
Wellington International Airport (66% owned)1,1641,206
Works & Development Services Corporation (NZ)13,61516,169

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 Actual1997 Forecast1998 Projection1999 Projection
Source: Financial Statements of the Government of New Zealand 1996, Pre-Election Economic and Fiscal Update September 1996, The Treasury
 $(million)
Revenue
Levied through the Crown's sovereign power
Direct taxation16,59117,58519,84321,17721,17721,15921,986
Indirect taxation9,22110,12010,37011,53811,53811,98912,489
Compulsory fees, fines, penalties and levies151190225235226236241
            Total revenue levied through the Crown's sovereign power25,96327,89530,43832,46832,94133,38434,719
Earned through the Crown's operations
Investment income1,6461,3682,1701,6041,7251,1611,204
Sales of goods and services669713667662630616638
Other operational revenue791499438410329303294
Unrealised (losses)/gains arising from changes in the value of commercial forests766(292)(65)(87)   
            Total revenue earned through the Crown's operations3,8722,2883,2102,4912,6842,0802,136
            Total revenue29,83530,18333,64835,05935,62535,46436,852
Expenses
By functional classification
Social security and welfare12,07111,47911,72412,24012,44212,72512,842
Health4,1684,6024,8865,2285,6105,6805,779
Education4,5394,6274,8034,9495,3365,5215,625
Core government services1,4641,7231,3401,5651,5411,5451,601
Law and order1,1731,1501,1901,2341,2531,2351,221
Defence1,0541,0491,0139701,0179381,018
Transport and communications781815796821866908931
Economic and industrial services744711673997788771743
Primary services372299309304343310321
Heritage, culture and recreation310241233247274283277
Housing and community development260394640544139
Other2361418148149141139
Finance costs3,9613,7883,7573,7033,0942,4812,163
Net foreign-exchange (gains)/losses296(898)(551)(603)   
Provision for initiatives under development........280520710
Contingency expense provision........150200200
            Total expenses31,42929,63930,40031,74332,91732,77932,899
            Revenue less expenses(1,594)5443,2483,3162,7082,6853,953
Surplus attributable to State-owned enterprises and Crown entities1,3528537047051,0931,2191,309
Dividends and other distributions(577)(642)(1,257)(707)(935))(516)(559)
            Net (deficit)/surplus attributable to State-owned enterprises and Crown entities775211(553)(2)158703750
            Operating balance(819)7552,6953,3142,8663,3884,703

Minister of Finance Bill Birch presenting the 1996 Budget.

OPERATING BALANCE

Table 28.3. GOVERNMENT FINANCE: STATEMENT OF CASH FLOWS

 Years ending 30 June
1993 Actual1994 Actual1995 Actual1996 Actual1997 Forecast1998 Projection1999 Projection
Source: Financial Statements of the Government of New Zealand 1996, Pre-Election Economic and Fiscal Update September 1996, The Treasury
 $(million)
Cash flows from operations
Cash provided from
Direct taxation
      Individuals12,72913,72614,77215,68515,37015,21915,811
      Companies12,72913,72614,77215,68515,37015,21915,811
      Withholding taxes1,0511,0561,0541,5161,4591,2271,210
      Other direct taxation863541111
            Total direct taxation16,18617,98719,69621,37921,14421,16121,965
Indirect taxation
      Goods and services tax5,9106,2656,7377,2687,4518,0128,408
      Excise duties1,8591,8181,8581,8691,8611,8861,900
      Other indirect taxation1,3551,5011,6701,8031,9282,0332,149
            Total indirect taxation9,1249,58410,26510,94011,24011,93112,457
Compulsory fees, fines, penalties and levies131155212218227236241
Other Receipts
      Interest, profits and dividends1,2311,1302,4531,4401,6511,0221,041
      Sales of goods and services634705672627628603633
      Other operating receipts906531470422365307298
            Total other receipts2,7712,3663,5952,4892,6441,9321,972
      Total cash provided Cash disbursed to28,21230,09233,76835,02035,25535,26036,635
      Departmental outputs4,1384,0553,8783,9744,0173,8383,790
      Other outputs9,43910,46211,47612,01013,09712,97213,339
      Finance costs3,8853,4433,8613,3913,0382,2472,278
      Subsidies1,349295152135189187165
      Current transfers Social assistance grants10,43810,39610,73611,09411,61411,91912,075
      Other transfers164182175183205223234
      Provision for initiatives under development........280520710
      Contingency expenditure provision........150200200
            Total cash disbursed29,41328,83330,27830,78732,31031,58632,081
            Net cash flows from operations (carried forward)(1,201)1,2593,4904,2332,9453,6744,554
      Subtotal (brought forward)(1,201)1,2593,4904,2332,9453,6744,554
Cash flows from investing activities
Cash provided from
      Sale of physical assets3,0501442571641737146
            Total cash provided3,0501442571641737146
Cash disbursed to
      Purchase of physical assets6878298401,0151,5001,086998
      Net increase/(repayment) of advances5273511,564(190)696)255320
      Net (sale)/purchase of investments1,886335(399)2,865(772)(1,301)(1,821)
      Contingency capital provision........100300300
            Total cash disbursed3,1001,5152,0052,690(1,868)(340)(203)
            Net cash flows from investing activities(50)(1,371)(1,748)(2,526)2,041(269)249
            Net cash flows from operating and investing activities(1,251)(112)1,7421,7074,9863,4054,803
Cash flows from financing activities
Cash provided from
      Net issue/(repayment) of Government stock2,8211,026491558(1,277)(1,801)(2,724)
      Issue of circulating currency61129104821  
            Total cash provided2,8821,155595640(1,276)(1,801)(2,724)
Cash disbursed to
      Net repayment of foreign-currency borrowing1,3611,8373,1152,3703,0121,1951,666
      Net (issue)/repayment of other New Zealand-dollar borrowing449(799)(1,025)(154)987408414
      Major project refinancing79790........
      Other items7............
            Total cash disbursed1,8961,0452,1802,2163,9991,6032,080
Net cash flows from financing activities986110(1,585)(1,576)(5,275)(3,404)(4,804)
Net movement in cash held(265)(2)157131(289)1(1)
Opening cash balance46477702103445556
      Reserve Bank of New Zealand opening cash balances(122)............
      Foreign-exchange (losses)/gains on opening cash balances..(5)(17)3......
            Closing cash balance7770210344555655

TAXATION PER CAPITA Adjusted for inflation*

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 1996–97 year are:

Income up to and including $30,87522c for every dollar
Income from $30,875 to $34,20024c for every dollar
Income over $34,20033c 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.

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.

INTERNATIONAL AVERAGE TAX RATES
Married couple's* average income tax rates, as a percentage of gross income, 1996

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.

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 Assistance

Family Assistance is the new term used to cover family support; Guaranteed Minimum Family Income (GMFI), is the new independent family tax credit and payments are 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.

With the 1996 tax cuts, new thresholds and rates were announced for family support and GMFI. The new rates for Family Support are:

First child$44.50 per week ($2,314 pa)
Each other child aged 13 years or over$37.50 per week ($1,950 pa)
Each other child aged under 13 years$29.50 per week ($1,534 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 $18,307. A family with such an income will receive $281 per week in hand.

Independent Family Tax Credit (IFTC). ITFC is an extra payment for families. It is a maximum payment of $7.50 for each child. However, it is not paid during the time that any of the following income is received:

  • income tested benefit

  • New Zealand Superannuation or veteran's pension

  • Student allowance

  • weekly compensation payments from ACC (unless received for fewer than three months).

GOVERNMENT FINANCE: 1880-1996
YearPopulationReceipts*Public debt
From taxationOther Payments*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)
18805284591,4481,6873,845....23,958
18856193231,8162,1404,101....32,195
18906674772,0902,1774,257....38,668
18957406992,3002,1484,352....40,387
19008081322,8912,8085,1404,39343,48147,574
19059256053,7543,5936,6369,32350,58959,912
191010504104,1815,0588,99113,04361,84774,890
191511526385,8816,57112,38019,67180,389100,060
1920125761116,2529,83023,782102,07799,094201,171
1925140123016,17212,47127,399104,044123,771227,815
1930150680919,4715,87925,201116,526150,857267,383
1935156968920,1765,95024,500117,425136,965254,390
1940163364532,81114,10946,600164,165132,551296,716
1945172844145,68914,23958,714403,274133,953537,227
19501927629103,85321,143120,689565,11278,768643,880
19552164734162,50928,708184,376630,80497,789728,593
19602403567276,44638,402314,217707,787136,729844,516
19652663843391,61360,241447,248904,393165,3991,069,792
  $(million)
197028578601,102.0170.51,275.12,351.3535.82,887.1
197531484002,760.5285.53,034.93,336.9862.84,199.7
198031764005,880.51,655.07,529.16,778.93,567.510,346.4
1985327150011,579.54,591.416,162.415,836.812,409.528,246.3
1990336250026,198.14,592.429,606.223,760.720,585.844,346.5
1994352640028,2031,39529,17429,56516,64746,429
19953580000......310511304544096
19963640000   31747975341500

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. 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 1996–97 year single superannuitants can receive up to $90 per week before tax ($4,550 per year) of other income without having to pay any surcharge. Married superannuitants can each receive up to $67.50 per week before tax ($3,412.50 per year) of other income before paying any surcharge. However, as these changes came in three months into the tax year the composite rates work out at $87.50 for a single person and $65.62 for married people.

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 1996, there were 117,000 student loan borrowers. The total value of repayments collected by Inland Revenue since 1992–93 was $134.8 million. $79.1 million had been collected via employer deductions through the PAYE system with the balance coming mainly from voluntary repayments. There were 157,894 loans held at 30 June 1996 with a total value of $1.2 billion (1995, $798.3 million).

Accident compensation premiums

The Inland Revenue Department collects earner and employer premiums and pays them to the Accident Rehabilitation and Compensation Insurance Corporation.

Prosecutor for the Inland Revenue Department with a 6-foot-long pile of files, representing 300-odd tardy payers, 1972.

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 1996 was $244 million for employees, $1,055 million for employers and $282 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 21.5 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 (ie 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 1996 was $327,112 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 33 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 October 1996, there were 467,591 registered persons in New Zealand.

The total GST collected up to 30 June 1996 was $5,092 million, not including GST collected by New Zealand Customs.

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 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 1996, Inland Revenue's Small Business Officers advised 15,246 small business operators.

Customer Enquiry Services

The total number of customer contacts for the year ended 30 June 1996 was 3,907,545 (636,531 pieces of correspondence, 955,088 counter enquiries, 2,315,494 telephone enquiries, and 432 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 432 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.

Records in the Treasury's basement room, 1990.

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 Customs and Excise Act 1996 provides for the imposition of excise duty on alcoholic beverages, tobacco products, super and regular grade petroleum, liquefied petroleum gas (LPG) and compressed natural gas (CNG) when compressed by a natural gas fuelling facility for use as a motor vehicle fuel.

Similarly excise equivalent duty is levied on the same goods if imported into New Zealand.

The relevant provisions are contained in Part VII of the Customs and Excise Act 1996 and the Third Schedule to the act.

The excise regime is dependent on the licensing of the areas within which excisable goods may be manufactured or stored and within which Customs powers may be exercised. These areas are called Customs controlled areas and such areas may be licensed for the purpose of:

  • the manufacture of excisable goods (breweries, wineries, tobacco manufacturing plants, distilleries, petrol refineries, etc.,) or

  • the deposit, keeping or securing of imported goods, without payment of duty on the goods, pending the export of those goods (ships‘ provedores) or

  • the storage by or for–

    1. The manufacturer; or

    2. The first owner of the goods, being the holder of a wine maker's licence under the Wine Makers Act 1981,–
      of wine manufactured in New Zealand, where the wine cannot be physically accommodated within the manufacturing area in which it was manufactured (off-site storage of wine) or

  • the storage of imported goods or goods manufactured in a manufacturing area, of a kind that are subject to duty, and on which such duty has not been paid, pending the sale of those goods to–

    1. Persons departing to or arriving from a country outside New Zealand; or

    2. Persons exercising an entitlement to the supply of goods free of duty under the act, or any other act.

These premises are usually duty free shops.

The liability for excise duty arises at the time of removal of the excisable product from the place of manufacture or, in the case of wine, from the off-site storage area, other than to an export warehouse or to another Customs controlled area for further manufacture.

The liability for excise equivalent duty is triggered by the importation of goods.

Payment of excise duty incurred on alcoholic beverages is due for payment on the last working day of the month following the month in which the liability was triggered. Excise duty on tobacco products and fuels is payable within 15 working days of the calendar month in which the goods were removed from the Customs controlled area. Excise equivalent duty is payable in accordance with the Customs deferred payment system or prior to the delivery of the goods from Customs control. The rates of excise duty and excise equivalent duty are contained in Part A and Part B of the Third Schedule to the Customs Act 1966.

The legislation provides the discretionary authority for government to apply increases to the rates of excise and excise equivalent duties on alcoholic beverages and tobacco products in accordance with the movement in the Consumers Price Index. Adjustments may be made annually to the alcoholic beverages rates of duty on 1 June of any year and the rates of duty on tobacco products may be made on 1 December in any year. Excise equivalent duty rates are similarly adjusted.

CUSTOMS AND EXCISE RECEIPTS As a percentage of total Consolidated Account taxation*

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 $46,091 million net during the year ended 30 June 1996.

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 no fewer 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 Actual1997 Forecast1998 Projection1999 Projection
Source: Financial Statements of the Government of New Zealand 1996. Pre-Election Economic and Fiscal Update September 1996 The Treasury
 $(million)
Income tax
Individuals
      Source deductions10,52810,90111,76512,53912,21212,06512,741
      Other persons2,8232,2903,3293,3103,3453,3883,377
      Refunds(603)(588)(538)(550)(562)(627)(647)
      Fringe benefit tax390294301327345363380
            Total individuals13,13813,52714,85715,62615,34015,18915,851
Companies2,3943,0013,9674,0634,3844,7544,931
Withholding taxes
      Residents‘ interest income640642684984906758742
      Non-residents'income264344285491497411416
      Residents‘ dividend income82634730353027
      Foreign-source dividends103959141618
            Total withholding taxes9961,0521,0251,5641,4521,2151,203
            Total income tax16,52817,58019,84921,25321,17621,15821,985
Other direct taxation
Estate and gift duties8312 3111
Land tax(20)(7)(6)(1)......
            Total other direct taxation635(6)2111
            Total direct taxation16,59117,58519,84321,25521,17721,15921,986

Table 28.7. INDIRECT TAXATION

 Years ending 30 June
1993 Actual1994 Actual1995 Actual1996 Actual1997 Forecast1998 Projection1999 Projection
Source: Financial Statements of the Government of New Zealand 1996, Pre-Election Economic and Fiscal Update September 1996, The Treasury
 $(million)
Goods and services tax6,0006,7796,8097,2627,7668,0628,433
Excise duties
      Petroleum fuels832809811777755768781
      Tobacco products5875996266556558661660
      Alcoholic beverages437421430443453458460
            Total excise duties1,8561,8291,8671,8751,8661,8871,901
Other indirect taxation
      Customs duty5876587808439039781,049
      Road user charges321352382410443482510
      Motor vehicle fees140147157152155160162
      Stamp, cheque and credit card duties118144166216185193201
      Gaming duties102114124126126134140
      Energy resources levies97978594949393
Total other indirect taxation1,3651,5121,6941,8411,9062,0402,155
            Total indirect taxation9,22110,12010,37010,97811,53811,98912,489

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
199469,05227,705.040.1
199574,08730,21340.7
199677,42532,23341.6

Table 28.9. GOVERNMENT FINANCE: STATEMENT OF FINANCIAL POSITION*

 As at 30 June
1993 Actual1994 Actual1995 Actual1996 Actual1997 Forecast1998 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 1996, Pre-Election Economic and Fiscal Update September 1996, The Treasury

 $(million)
Assets
Cash and bank balances7770210344555655
Marketable securities and deposits7,5067,9476,5239,0627,7146,4444,767
Advances2,7842,9894,7823,4572,8153,2743,687
Receivables4,3224,6064,4534,7824,9244,8664,890
Inventories448340326336313309306
State-owned enterprises and Crown entities15,92916,56916,42018,48717,23217,90218,505
Other investments511228223211213216219
Physical assets12,55313,08013,43213,92514,24314,18314,029
Commercial forests1,001712646551551551550
State highways7,0587,8567,4547,7597,8317,9558,105
Intangible assets1822187777
Contingency capital provision    100400700
            Total assets52,20754,41954,48758,92155,99856,16355,820
Liabilities
Payables and provisions3,1844,1383,8244,0703,4903,6873,505
Currency issued1,4001,5291,6201,6751,6761,6761,676
Borrowings47,47846,42944,09641,50036,31132,93028,133
Pension liabilities7,8407,9518,1068,3328,3118,2728,205
            Total liabilities59,90260,04757,64655,57749,78846,56541,519
            Total assets less total liabilities(7,695)(5,628)(3,159)3,3446,2109,59814,301
Crown balance
Accumulated operating balance(8,269)(7,539)(5,074)(1,550)1,3164,7049,407
Revaluation reserve5741,9111,9154,8944,8944,8944,894
            Crown balance(7,695)(5,628)(3,159)3,3446,2109,59814,301

New Zealand HeraldSculptor Bruce Barber appearing at the Auckland City Art Gallery in October 1975 in his controversial exhibition, “Stocks and Bonds.” Mr Barber fasted for the 48 hours he was locked into wooden stocks, and suffered pain, lack of sleep and occasional abuse from visitors to the exhibition.

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.

Since the sale process began in 1987 the Government has used the proceeds of asset sales largely to repay maturing foreign currency debt. Since 1993/94 the Government has also been running a surplus on its operating balance and has used these surpluses to pay down foreign currency debt. In September 1996 New Zealand reached zero net foreign currency public 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 $4,987 million, as at 30 June 1996.

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.

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 Limited678,47828 February–31 October 1989
Shipping Corporation of New Zealand31,7343 March–23 December 1993
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 assets206,0546 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 mortgages2,175,92825 November 1991–23 September 1996
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
Wrightson Rights3,44925 November 1993
Fletcher Challenge shares418,05925 November–23 December 1993
GCS Limited46,99118 November 1994
Waikato Regional Airport Limited2,12529 March 1996
Māori Development Corporation20,93017 June 1996
The Radio Company Limited89,00010 July 1996
Forestry Corporation of New Zealand1,600,00027 September 1996
Works and Development Services108,0008 November 1996

Table 28.11. STATEMENT OF BORROWINGS

 Movements during the year ended 30 June 1996
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 1996, The Treasury
 $(million)
Outstanding debt
New Zealand-dollar debt
      Government stock20,6763,293(2,725)....(22)21,222
      Treasury bills6,190760......(2)6,948
      Loans and foreign-exchange contracts1,453519(1044)2..52982
      Reserve Bank bills1,2418........1,249
      Earthquake Commission deposits871..(77)....1795
      Retail stock620344(413)......551
            Total New Zealand dollar debt31,0514,924(4,259)2..2931,747
Foreign-currency debt
      United States dollars6,171329(1,666)377(126)255,110
      Japanese yen3,592370(617)35(882)442,542
      European and other currencies3,282892(1,455)(399)(247)282,101
            Total foreign-currency debt13,0451,591(3,738)13(1,255)979,753
            Total outstanding debt44,0966,515(7,997)15(1,255)12641,500
Marketable securities and deposits
      New Zealand dollars868 (92).. 2778
      United States dollars2,3841,030(29)(39)(172)(45)3,129
      Japanese yen1,0451,817(45)(239)(327)(31)2,698
      European and other currencies2,226657(168)(203)(58)32,457
            Total marketable securities and deposits6,5233,504(334)(3)(557)(71)9,062
            Advances and cash4,9924,191(5,385)..3..3,801
            Total financial assets11,5157,695(5,719)(3)(554)(71)12,863
            Net public debt32,581(1,180)(2,278)18(701)19728,637

PUBLIC DEBT As a percentage of GDP

Table 28.12. TYPE OF PUBLIC DEBT

Outstanding atForeign currency debtDomestic currency debtTotal debt
AmountPercentage of total debtAmountPercentage of total debtAmountPercentage increase on previous year

*Financial Statements of the Government of New Zealand for the year ended 30 June 1996.

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)
199513,04530.031,05170.044,096(5.0)
19969,75324.031,74776.041.500(6.0)
1997*6,80019.029,51181.039,311(13.0)
1998*5.62517.027,30583.032.930(9.0)
1999*3,95914.024,17486.028,133(15.0)
2000*3,95917.019,30983.023,268(17.0)

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 endedInterestInterest on overseas debt as percentage of exports of goods and servicesRecovery of interest from government enterprises and investmentsNet interest costNet cost as a percentage of total taxation
OverseasNew ZealandTotal*

*Includes interest on New Zealand Railways Corporation debt from 1990 onwards.

†Exports of goods and services from Department of Statistics annual GDP expenditure series.

‡Revised to include interest credited to the Crown Settlement Account.

 $(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
INTERNATIONAL COMPARATIVE STATISTICS
CountryCentral Government
Debt/GDPRevenue/GDP 1996Spending/GDP 1996
NetGross
1987-199619961987-19961996
Source: Standards & Poor's, May 1996.
 percent
Australia1118192525.527
Canada6575708016.819
FranceNANA335316.220
Germany183131421214
Hong Kong(27)(26)222615.716
New Zealand4534604737.934
Sweden5475658739.244
United Kingdom2838384835.239
United States4246626918.721

Table 28.15. MATURITY PROFILE AS AT 30 JUNE 1995

 1996/971997/981998/991999/20002000/012000/02-2005/062006/07 and afterBook value
Source: Financial Statements of the Government of New Zealand 1996 for the year ended 30 June, The Treasury
Outstanding debt$(million)
New Zealand-dollar debt
Government stock2,7532,1402,5223,4431,2876,1192,95821,222
Treasury bills............69486,948
Loans and foreign exchange contracts3653432010321445982
Reserve Bank bills1,249............1,249
Earthquake Commission deposits795............795
Retail stock429782816......551
Total New Zealand-dollar debt12,5392,5612,5703,5621,2896,2632,96331,747
Foreign-currency debt
United States dollars1,6502061,991..2202917525,110
Japanese yen32543219359601,1762972,542
European and other currencies831318223..562117502,101
Total foreign-currency debt2,8069562,407598421,5841,0999,753
Total outstanding debt15,3453,5174,9773,6212,1317,8474,06241,500
Marketable securities and deposits
New Zealand dollars68197..........778
United States dollars1,5902568627497174043,129
Japanese yen1,395..431281,23192,698
European and other currencies1,700244725992273352,457
Total marketable securities and deposits5,366377176641562,1757489,062

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.

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*

 1992-93R1993-941994-95

*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)1,588.11,658.61,695.4
      Petroleum tax33.034.436.1
      Grants, subsidies and levies295,2300.5310.4
      Fees and fines99.5113.9133.0
      Sales and other income631.4640.2560.7
      Investment income114.9128.2230.3
            Total current receipts2,762.12,875.82,965.9
Operating expenditure–
      Employee expenses791.9809.9828.1
      Interest225.3193.1173.8
      Depreciation350.2361.7354.3
      Purchases and other expenditure1,401.31,463.51,582.0
            Total operating expenditure2,768.72,828.22,938.2
Surplus before extraordinary items6.647.627.7
Gains from extraordinary transactions85.9199.2343.7
Surplus after extraordinary items79.3246.8371.4
Additions to fixed assets504.2551.1772.5
Disposals to fixed assets104.5135.0148.8

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

28.1The Treasury.
28.2Inland Revenue Department; New Zealand Customs; Ministry of Transport; The Treasury; CCMAU.
28.3The Treasury.
28.4Statistics New Zealand.

Special articles

The Treasury.

Further information

Annual Financial Statements of the Government of New Zealand (B.1 HY)

Budget Policy Statement (Parl paper B.1)

Budget Speech and Fiscal Strategy Report (Parl paper B.2)

Departmental Forecast Report of the Treasury (Parl paper B.27 FR 96)

Economic and Fiscal Outlook and Budget Tables (Parl paper B.3)

Economic and Fiscal Update (Parl paper B.6)

Estimates of Appropriations (Parl paper B.5)

Financial Statements of the Government of New Zealand. The Treasury (eight times a year)

Fiscal Responsibility Act 1994–an explanation. The Treasury

Fiscal Results for the Government of New Zealand. The Treasury (six times a year)

GST Guide (booklet) Inland Revenue Department 1994

Half-yearly Financial Statements of the Government of New Zealand (B.10)

Key Statistics. Statistics New Zealand (monthly)

Local Authority Statistics, Non-trading Activities. Statistics New Zealand (annual)

Putting It Together The Treasury 1996

Report of the Inland Revenue Department (Parl paper B.23)

Report of the Local Authorities Loans Board (Parl paper B.17)

Report of the Treasury (Parl paper B.27)

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 B.7)

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 (ie 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.

Economically significant enterprise.

An enterprise which meets at least one of the following criteria: has greater than $30,000 annual GST expenses or sales; has more than two full-time equivalent paid employees; is in a GST-exempt industry except residential property leasing and rental; is part of a group of enterprises; is a new GST registration that is compulsory, special or forced (this means the business is expected to exceed the $30,000 boundary.); is registered for GST and is involved in agriculture or forestry.

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 (ie 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, roading, and improvements to land. In measuring the outlays, sales of similar goods are deducted. Land is excluded from gross fixed capital formation. Included is the value of construction work done by a firm's own employees. The term ‘gross’ indicates that consumption of fixed capital has not been deducted from the value of the outlays.

Gross national expenditure

(national accounts). The total expenditure within a given period on final goods and services by New Zealand residents (ie 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, ie 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 (ie 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 1997 index are also included in the main index.

A

abortion, 200–2 [Note: The paragraph on page 201 should follow after the 4th paragraph on page 200. The committee referred to on page 201 is the 1936 special committee, not the 1996 Parliamentary Select Committee.]
abuse of children, 174
ACC (Accident Rehabilitation and Compensation Insurance Corporation), 207–9, 615–6
access radio, 285
Accident Compensation premiums, 615–6
Accident Rehabilitation and Compensation Insurance Corporation (ACC), 207–9
accidents (see also ACC), 207–15
air, 516
at home, 205, 214
fatal, from falls, poisoning and other causes, 213–15
hospital patients treated for, 205
infant mortality, 199–200
motor vehicle, 204, 210–12, 213–15
prevention of, see safety
traffic, 210–12, 213–15
water, 212–13
accommodation supplement, 168, 498
accommodation, tourist, 331
accrual accounting, 606–7
Action TV, 281
acts and regulations passed (1985–95), 51
Acts of Parliament, 51, 255
adoption, 176–8
adult adoption information, 177
adult education, see continuing education
Advertising Agencies‘ Association, 288
Advertising Standards Authority, 278
advertising, 286–8
aerial topdressing see topdressing
African countries, relations with, 88–9
age
at death, 116–19
by ethnic group, 147
by sex/gender, 120–21
deaths from external causes, 214
deaths of pre-school children, 215
distribution, of population, 118, 120–21, 124
of hospital inpatients discharged, 202
of motor accident deaths and casualties, 211
of new mothers, 114–5
of prison inmates, 269
Pacific Island distribution, 160–2
structure, Māori, 124
Agenda 21 of UNCED, 399–400, 490
AgResearch, 378
Agricultural Production Account, 431–2
agricultural costs, farm expenses price index, 432–3
exports (various), 437–54, 552–4, 555–6
land, 429–30
agricultural production see also dairy products, meat and meat products, wool
crops, 448–53
indicators of, 431–2
marketing, of products, 438–9, 440–2, 443–4, 445–6, 448, 450–1, 452, 454
Agriculture Facts, 430–1
Agriculture, Ministry of, 64, 381, 432, 433–5
Agriculture Production Survey, 436, 448
agriculture, agricultural expenditure, 432–3
aspects of, 429
beekeeping, 447
cattle, 429, 430–2, 434–7
costs of, 432–3
crops, 448–53
current situation and trends, 429
dairy farming, 429, 430–1, 435–6, 443–5
deer farming, 430–1, 435–6, 439
deer velvet, 574
farm employees, 431
flower exports, 454
goat farming, 430–1, 435–6
international, policies, 432
numbers and types of farms, 430
pig farming, 430–1, 435–6, 445–6
policies, international, 432
poultry, 446
production indicators, 431–2
quarantine, 433
research, 378–9
sheep, and sheep farming, 429, 430–2, 435–6, 437, 439–42
topdressing, 431, 518
venison exports, 439
aid to developing countries, 89–92
AIDS (acquired immune deficiency syndrome), 191
air force (Royal NZ Air Force), 45, 46, 104
navigation systems, international award, 517
transport, see aviation
air quality, 399
aircraft navigation, Oceanic Control System, 515, 517
accidents, 515, 516
airline services, international, 511, 516–7
airports, 511, 517
cargo at, 575–8
AirPost international, delivery times (map), 292
Airways Corporation of New Zealand Ltd, 515–6
overseas use of OCS (Oceanic Control System), 517
ALAC (Alcohol Advisory Council), 196
alcohol see also beer, wine
consumption, 195–6
excise on, 619
legal aspects of consumption, 532–3
mental health facilities patients, 206, 207
Alexander Turnbull Library, 311
allowances, income support, 167–8
amenities, of dwellings, 133
amphibia and reptiles, 13, 14
animals and plants, 12–15
animals, farm, see livestock
anniversary day holidays, provincial, 360
Antarctica, Defence Force support in, 101
international co-operation, 374–5
NZ Antarctic Institute, 374–5
NZ Antarctic Programme, 401
NZ scientific research in, 97, 374–5
ozone hole over, 10
Ross Dependency, 97
environment, 401
anthems, national, 68, 80–1
antiquities, protection of, 306
ANZAC exchanges, 84
ANZAC frigates, 102
ANZSIC (Australian New Zealand Standard Industrial Classification), 492–545
ANZUS (Australia, New Zealand and United States) Treaty, 85
APEC (Asia/Pacific Economic Co-operation), 85
Bogor Declaration, 490
countries, trade with, 570–2
educational links, 243
customs links, 550
apiaries, 447–8
apparel, cost of, 588–90
expenditure on, 132
exports of, 492
industry, 491–2
apples and pears, exports, 450, 556
production, 450–1
appliances, in households, 133
aquaculture, 465, 468
archaeological sites, protection of, 306
archives, national, 306–8
area of NZ, 1, 393
armed forces see Defence Force, NZ
armed offenders squads, police, 272
army (NZ Army), 97, 99–100, 103–4
arrivals, in country see also immigration, 119–20
art galleries and museums, 305–6
art, 305, 312, 622
artificial aids, benefits for, 187
arts and cultural activities, 297–305
grants to, 297–9
national collections, 305–8
Arts Assembly, NZ, 326
Arts Council of New Zealand Toi Aotearoa see Creative New Zealand, 298–9
ASEAN (Association of South-East Asian Nations), 85, 91, 99
Free Trade Area, 490
dialogue partner with, 85
Asia 2000 Foundation, 85, 86
business grants programme, 562
culture and sport grants programme, 298
education programme, 235
media and culture grants programme, 283
Asia, defence assistance, 98–9
Asian countries, relations with, 85–6, 574
Asian Development Bank, 95
assistance to developing countries, 89–92
asthma, 191
astronomy, Carter Observatory, 379
ASYCUDA (Automated System for Customs Data), NZ Customs involvement in, 553
Audit Office, 71
Auditor-General, Controller and, 71
Australia New Zealand and United States Treaty (ANZUS), 85, 99
Australia New Zealand Closer Economic Relations Trade
Agreement (CER), 85, 490
Australia
ANZAC frigates, 102
ANZSIC (Australian and NZ Standard Industrial Classification), 492, 545
as defence partner (CDR), 85, 98
Australia and New Zealand Food Authority, Code & Council, 188, 490
benefit reciprocity, 171
CER with, 85, 490
double taxation agreement, 85
exports to, 566–8
immigration status of Australians, 85
JAS-ANZ, standards accreditation, 385, 490
Māori in Australia, 123
NZers living in Australia, 120
NZLIA links with ALIA (Australian Library and Information Association), 309
online information, National Library, 312
PADET fellows to Canberra, 87
Parliamentary Select Committee exchanges, 52
pharmacists‘ reciprocity, 184
relations with, 85
RNZAF at Nowra, 104
social security agreements, 85, 171
teacher registration links, 225
trade with, 566–8
trans-Tasman food standards, 490
trans-Tasman Mutual Recognition Agreement, 490
Autocheck, 524
aviation, civil
accidents, 515–16
aerial work, 518
airlines, 511, 516–17
airports, 511, 517
AirPost, 292
distances to overseas destinations, 517
domestic, 511, 516
international, 516–17
licensing and control of, 515, 517

B

balance of payments (NZ transactions with the rest of the world), 418–20
ballet
Royal NZ Ballet, 300
bankruptcies, 539–40
banks and banking, 595–600
cheque reform, 597
EFTPOS in NZ, 598–9
finance institutions, 599–601
foreign ownership of, 597
public disclosure, 596
registered banks, 597–8
Reserve Bank of NZ, 595–7
self-regulation, 599
statistics, 600–1
beef, 437–40
beekeeping, 446–8
beer, consumption, 195
prices world-wide, 196
bees and beekeeping, 446–8
Beijing, Platform for Action implementation, 145
BellSouth NZ, 289
benefits and pensions (see also family assistance, superannuation), 164–171
accident compensation, 207–9
accommodation, and supplement, 168, 500
artificial aids, 187
benefit crime, 178
child care subsidy, 167, 168
current rates, 164–7
dental, 186
disability allowance, 167
domestic purposes, 164, 166, 168, 169
expenditure on, 163, 169
family assistance/support, 164, 166, 168, 169
funeral grant, 168
handicapped child, 167–8
independent youth, 164
invalids, 164, 165, 166, 168, 169
job search allowance, 164
maternity, 186
number of, 166, 168
NZ superannuation, 164, 166, 167, 168, 169
orphans & unsupported child, 164, 167, 168, 169
pharmaceutical, 185
reciprocity agreements, 171
sickness, 164, 165, 166, 168, 169
special needs grant, 168
special, 168
training incentive, 168
training, 166
transition to work, 168
transitional retirement, 164, 166, 168, 169
unemployment, 164, 166, 168, 169
veterans pension, 164, 168, 169
war pensions, 166, 167, 168, 169–70
widows, 164, 166, 168, 169
betting and gaming, 327–9
Casino Control Authority, 329
NZ history, 327
NZ Lotteries Commission, 330
sports, 329
Totalisator Agency Board, 328
bilateral assistance, 90–1
bilateral relationships (MFAT), 90–1
Bill of Rights Act 1990, NZ, 49, 140
Bills, passing of in Parliament, 51
biodiversity, 400
birth, country of, 146, 147
Births, Deaths and Marriages Registry, 115
births and birth rates (see also childbirth), 114–16
average age of new mothers, 114
Māori, 116, 153
outside marriage, 115
rate 1960-95 (graph), 117
registration of, 115
summary (1885-1991), 116
blood samples for criminal investigations, 265
Bogor Declaration of APEC, 490
bookmaking, 328–9
books and libraries, 308–15
author's fund, 308
Books in Homes scheme, 309
imports of, 557
publishing, 308, 309, 313
BRANZ (Building Research Association of NZ), 509
breastfeeding, 192–3
Broadcasting Standards Authority, 277, 278
broadcasting, 277–85
archives, Radio New Zealand's Sound Archives, 284
Broadcasting Commission (NZ On Air), 277–8, 279, 283, 285
Māori Broadcasting Funding Agency (Te Mangai Paho), 278
Māori broadcasting, 278, 279
policy, 277
public broadcasting fee, 277
radio, 282–5
standards, 278
television, 279–81
Budget dates, 606
building and construction (see also housing), 502–9
authorisations, 503–5
awards of the NZ Institute of Architects, 503
log homes, 506
straw bale houses, 503
volunteer-built houses, 499
with earth, 506
work put in place, 507
Building Research Association of NZ (BRANZ), 509
buildings
construction law, 502
historic, 305–6
bursaries, for tertiary study, 233
buses, 522, 523, 524
business development, 494–5
Business Directory (Statistics New Zealand), 423–5
business statistics, 423–5
butter, 443–5, 553–4

C

Cabinet, 57–8
Department of the Prime Minister and, 68
cable television, 281
cadets (NZ Cadet forces), 101
Campbell Island, 1
carillon, National War Memorial, 68
Canada, TEC (Trade and Economic Co-operation Agreement) with, 86
cancer, deaths from, 198, 199
Cannons Creek Fanau Centre, 172
Capital Goods Price Index, 593–4
capital finance (national accounts), 409–10
gains, tax on, 618
Career Service rapuara, 222, 348–9
cargo
air, 575–8
handled at ports, 575–8
overseas, 575–8
carpet industry, 492
cars, 131, 491, 522–7
ex-overseas and imported, 491, 523
imported, registrations, 523
Carnegie libraries, 312
Carter Observatory, 379
casein and caseinates, 443, 444, 553
Casino Control Authority, 329
casinos, 327, 329
cattle, 429, 430–2, 434–7
caves, depth and length, 2
Cawthron Institute, 381
CCMAU (Crown Company Monitoring Advisory Unit), 74, 179, 375
CEDAW (UN Convention on Discrimination Against Women), NZer on committee, 144
cellular phones, 288, 289
censorship, 271, 304–5
film, 304
Census of Population and Dwellings Census 1996, 123
ethnic origins, 122, 145–6, 147
households and dwellings, 127–31
incomes, 353
Māori population, 122–3
Pacific Island Polynesian population, 125
population 1858-1996, 107
religious professions, 144–5
total population, 107–13
travel to work, 524
centenarians, Queen's telegrams to, 66
central government finance
accrual accounting, 606–7
appropriation process, 606–7
expenditure, 605–6
fiscal responsibility, management and policy, 606–7
lines of accountability, 605
public debt, 622–5
roles and responsibilities, 605
revenue see taxation
securities on issue, 602, 603
CER (Australia New Zealand Closer Economic Relations Trade Agreement), 85, 490
cereals, 448–9
Certificate of Fitness see Vehicle Inspection Certificate (VIC)
cervical screening programme, 192
Chamber Music New Zealand, 302
Chatham Islands, 1, 15, 78
Chatham Islands (Rekohu) and Moriori, 157
cheese, 443–5, 553–4
cheques, better security for, 597
CHEs see Crown health enterprises
chicken consumption, 439
and egg, 446
production, 446
Child, UN Convention on the Rights of, 140
child abuse, 145, 174
care subsidy, 167, 168
support, 140, 169, 615
childbirth
births and birth rate, 114–117
infant mortality, 199–200
maternal deaths, 200
maternity services, 186
parental leave, 362
childcare and pre-school education see education, kohanga reo
centres and playgroups, 228, 229, 236, 237
Children, Office of the Commissioner for, 145
Children and Young Persons Courts, see Youth Justice Service, 175–76
Children's Health Camps, 193
children
abuse of, 145, 174
adoption, 176–8
care and protection services, 173–5, 176
community services card, 184
custody and guardianship, 174–5
day care for, 228–9, 248
deaths of, 215
education of see education
family group conferences, 174–5
health of, 193–4
in care of Department of Social Welfare, 174–5
overseas, educated by Correspondence School, 231
preschool, violent and accidental deaths, 215
UN Convention on Rights, 140
vaccinations & immunisations, 185, 193–4
youth justice services, 175–6
China, People's Republic of, relations and trade with, 86, 565, 566
chiropractors, 183
Choral Federation, NZ, 302
chronology 1996, 17
1893–1996, 18–43
of major economic reforms, 426
churches see religious profession
Churchill Memorial Trust fellow ships, 95
cinema see film
cities and city councils (see also urban areas), 78
population of, 110–11
Citizens Advice Bureaux (CAB), 176–7
Initiated Referenda, 62
citizenship, 147–8
applications granted, 148
civil aviation, see aviation, civil
defence. 215–6
jurisdiction of courts, 255–6
claims process, Māori land, 155
under Treaty, 153–5
CLANZ see Community Learning Aotearoa New Zealand
CLEAR Communications Ltd, 290
Clerk of the House of Representatives, 50, 53
of Writs, 68
climate, 7–12, 399–401, 474
extremes, 8
map, 9
Closer Defence Relations (CDR) with Australia, 85, 98, 100
Economic Relations (CER) with Australia, 85, 490
coal, 474, 481–2, 485
coastal shipping, 513–4
coat of arms, ii, 43, 68, 81
coins and coinage, 601, 602
colleges of education, 225, 237, 244
Commerce Commission, 529, 534–6
1996 highlights, 536
Commerce, Ministry of, 65, 277, 293, 383, 473, 494
Commission for Sustainable Development (CSD), UN. 395, 400
Commissioner
of Crown Lands, 391
for Children, 145
for the Environment, Parliamentary, 73
Privacy, 72–3
Retirement, 170
Commissions of inquiry, 62
‘Wine box,’ 62
Royal, 62
Commonwealth, 92, 95
Games, 324
Parliamentary Association (CPA), 52
Youth Programme, 319
communicable disease control, 188
Communications Division (Ministry of Commerce), 277, 293
Minister of, 277
Community Corrections Service (Department of Corrections), 265–7
Employment Group, 350–2
Funding Agency, 172
Learning Aotearoa New Zealand, 246
Support Groups, 274
Taskforce, 349
community boards, 78
education programmes, 247
law centres, 256–7, 258
programme (sentence), 266
programmes, funded by NZCFA, 172
service (sentence), 266
services card, 167
services Māori, 156, 158
welfare, funding, 172
companies, 533–5
insolvencies, 539
overseas origin, 535
practices of, 534
registration, 533–4
statistics, 535
takeovers, 534
taxation of, 616–7
comparisons, international see international comparisons
compensation for criminal injuries, 265
accident, 207–9
Complaints Review Tribunal (human rights, race relations, privacy), 140, 141, 254
condoms, 187
Congress, Māori, 156, 158
conscientious objectors, 101
Conservation Authority, New Zealand, 405
Department of, 65, 381, 393, 402–5
boards, 405
conservation of natural resources (see also environment)
forests, 455
legislative reform, 393–4
of cultural property, 305–6
of water and soil, 396–8
Consolidated Accounts of the Nation, 408–10
constitution, 47
recent reform, 48–9
construction, see building and construction
Consumer Affairs, Ministry of, 530–1
10 years of, 530
Consumer Guarantees Act 1993, 531
consumer protection, 529–32
Consumers‘ Institute, 531–2
Consumers Price Index (CPI), 583–91, 628
all groups, 584, 584
all groups, all urban areas combined, 588
commodity, expenditure weighting, 583–4
geographic coverage and published series, 584–5
geographical variation, 590
groups, 587–9
index regimen, 583, 628
international comparison, 590–91
North and South Islands, 590
price movements, 583–91
price surveys, 584
selected items, 587
continuing education, 247
Controller and Auditor-General, 71
Convention on Discrimination Against Women (CEDAW), 144
convictions
drug offences, 262
non-traffic offences, 260–3
offences against the person, 262
property offences, 262
traffic offences, 264–5
violent offences, 261
Cook Islands, relationship with, 83
Cook Strait rail ferry service, 513, 519
copyright, 302–4
licensing, 305
corporations, government, see State-owned enterprises
Corrections, Department of, 65,265–72
corrections system, 265–72
census of prison inmates, 268–71
community-based sentencing, 266
Community Corrections Service, 265–7
detention, 268
Psychological Service, 272
Public Prisons Service, 267–72
corrective training, 268
Correspondence School, 230, 231, 247
educating children overseas, 231
lessons since 1922, 230
cost of living, (see also Consumers Price Index, retail prices), 583–91
cot death see sudden infant death syndrome
Council for Educational Research, NZ, 224
country of birth, 146,147
Court of Appeal, 251–2, 260
courts (see also tribunals), 251–4
civil jurisdiction of, 255–60
Department for, 65
District, 252–3, 256, 260
Employment, 253, 359–60
Family, 174–5, 253
High, 252, 255–6, 260
legal aid, 258
Māori Land and Appellate, 253–4, 390–1
Youth, 253, 274
CPI see Consumers Price Index, 583–91
Creative New Zealand (Arts Council of NZ Toi Aotearoa), 298–9
credit cards, 547–8, 599
crime, 258–65
benefit crime, 148
blood samples for investigations, 265
compensation for injuries, 265
DNA typing, 265, 267
new offences, 258
prevention, 260
proceeds of, 266
reported offences, 259–60
Criminal Investigations (Blood Samples) Act 1995, 265
criminal justice, 258–65
CRIs (Crown Research Institutes), 375, 378–80
Crop and Food Research, Institute for, 379
crops, 448–53
fruit, 450–2
grains, 448–9
seeds, 449
Crown Company Monitoring Advisory Unit (CCMAU), 74, 179, 375
entities, 609
complaints about, 71
Law Office, 65, 257
Minerals Act 1991, 396, 484
reporting entity, 608
Research Institutes (CRIs), 375, 378–80
solicitors, 257
health enterprises (CHEs), 180, 609
complaints about, 71
Law Office, 65, 257
Minerals Act 1991, 396, 484
reporting entity, 608
Research Institutes (CRIs), 375, 378–80
solicitors, 257
Crown-owned entities, 70, 609
lands, 391–2
CSD (Commission for Sustainable Development), UN, 395, 400
Cultural Affairs, Ministry of, 65, 297
cultural sites, protection of, 305–6
statistics, NZ framework for, 298
currency, 601
curriculum, national, for schools, 231–2
NZ curriculum framework, 231–2
Customs, New Zealand, 65, 550–2, 553
customs tariff and revenue, 550, 619
CYPFS (Children and Young Persons Service), 172–5

D

Dairy Board, NZ, 443
dairy farming and products
butter, 443–5
casein, 443–5
cheese, 443–5
exports, 443–5, 553–4
marketing of, 443–4
milk and milk products, 443–5
prices, 445
production index, 431–2
dance, 300
data communications, 293–5
daycare, 229, 248
daylight saving, 15
de facto relationships, 115, 135–7
de-mining assistance, 99–100
deaf community and NZ sign language, 142
deaths and death rates, 116–19, 125
accidental, 210–12, 213–15
of children, 215
infants, 199, 200
Māori, rate (summary, 1901–95), 117
deaths, drowning, 213, 215
falls, poisoning and other external causes, 214
fire, 217
from cancer, 198–9
infant, 199–200
major causes, 198
maternal, 200
registration of, 115
road motor accidents, 210–12
summary (1885–1996), 116
debt
overseas, 361–2, 562, 564–5
private, see credit, mortgages
public, 561–5
decade of Ministry of Consumer Affairs, 530
Ministry of Women's Affairs, 143
Parliamentary Commissioner for the Environment, 73
deer farming, 430–1, 435–6, 439
velvet, 574
Defence Force, NZ, 66, 97–104, 381
overseas activities, 94 (map), 99–100
New Zealand Army, 99–100, 103
overseas, 94, 99–100
community assistance, 102
New Zealand Army, 99–100, 103
overseas, 94, 99–100
Royal New Zealand Air Force, 104
Royal New Zealand Navy, 102–3
strength of, 104
Defence, Ministry of, 65–6, 97, 102
White Paper 1991, 97
defence, 97–104
agreements, 98–99
community assistance, 102
disaster relief, 101
exercises, 100
expenditure, 101
international relationships, 98–9
locations in NZ (map), 100
personnel, 99–100
policy, 97–8
degrees awarded, 241–2
demography, see population Dental, Council, 182
Dental, Council, 182
dental
services, 186, 196–7
technicians, 184
fluoridation, 197
health, 196–7
School Dental Service, 197
dentists, 182
Department for Courts, 65, 251–7
Department of Conservation, 65, 381, 392,402–05
international involvement with biodiversity, 400
Births, Deaths & Marriages Registry, 115
Dictionary of NZ Biography, 70
Ethnic Affairs Service, 146
Historical Branch, 69
Link Centres, 67
Visits and Ceremonial Office, 66, 68
remuneration of, 64
Corrections, 65, 265–72
Births, Deaths & Marriages Registry, 115
Dictionary of NZ Biography, 70
Ethnic Affairs Service, 146
Historical Branch, 69
Link Centres, 67
Visits and Ceremonial Office, 66, 68
remuneration of, 64
Internal Affairs, 67
Births, Deaths & Marriages Registry, 115
Dictionary of NZ Biography, 70
Ethnic Affairs Service, 146
Historical Branch, 69
Link Centres, 67
Visits and Ceremonial Office, 66, 68
remuneration of, 64
Labour, 67, 217–19, 335, 337, 343
remuneration of, 64
Prime Minister and Cabinet, 68
remuneration of, 64
Social Welfare, 69, 163, 169
remuneration of, 64
Statistics (Statistics New Zealand), 69
remuneration of, 64
Survey and Land Information (DOSLI) now Land
remuneration of, 64
Information New Zealand and Terralink Ltd departments, government (see also State sector) chief executives of, 64
remuneration of, 64
expenditure by, 609–10
functions of, 64–70
departures, from country, 119–20
deportation, 150–1
Depression of the 1930s, 426
design, industrial, 384
overseas applications to register, 384
developing countries, relations with, 89–92
Dictionary of NZ Biography, 67,70
dietitians, 183
diplomatic representatives overseas, 83, 86
Directory of Official Information, 71
disability allowance, 167
and illness, 190
support, 190
survey, 189
disabled persons
assistance and services for, 167, 168, 172
benefits for, see benefits and pensions
Disabled Servicemen's Re-establishment League, 165
disaster relief, help in South Pacific, 101
Discrimination Against Women, Convention on, 144
diseases
AIDS, 191
communicable, control of, 188
occupational, 218–9
treated in public hospitals, 203
displaced persons, see refugees
Disputes Tribunals, 254
dissolution of marriage, 138–9
distance education, 231, 243–4, 247
District Courts, 252–3, 256, 260
district planning, 395
divorce, 138–9
DNA typing for criminal investigation, 265, 267
doctors, 182
dogs, police, 274
domestic purposes benefit see benefits trade and services see retail trade and services
DOSLI see Department of Survey and Land Information (former)
double taxation agreements, 85, 614
drinking, legal aspects of, 525, 532–3
drivers‘ licences, 524–5
driving offences, 264–5, 526–7
drownings, 212–3
drugs and medicines, control of, 187–8
drug seizures, 275
drug testing in sport, 324
convictions for offences, 261,262
legal, control of, 187
misuse of, 187–8
offences involving, 261
dwellings (see also households, housing), 127–31
landlords of, 129–130
Māori see Māori population
number and type, 127,128
occupants in, 128,130
Pacific Island see Pacific Island population
tenure of, 128–9, 130–1
types of, 127, 128

E

Early Childhood Development Unit, 221
earnings, 353–4
earth buildings, housing, 506
Earthquake Commission, 216, 541–2
earthquakes, 5–7
reported from USA and UK, 7
in 1996, 6
Economic Research, New Zealand Institute of, 383
100 years of, 382
Economy Wide Census, 423
economy, 407–27
1930s Depression, 426
major reforms since 1984, 436
Education and Training Support Agency (ETSA), 222, 346–7
Ministry of, 66, 222, 224, 225, 226, 227, 249
Review Office (ERO), 67, 222–3
education (see also examinations, schools, students, universities), 221–49
additional resources, 239–40
funding, 226
training, 244–5
resources, 240
administration of, 221–8
funding, 226
training, 244–5
resources, 240
advisory services, 240
funding, 226
training, 244–5
resources, 240
agencies, 221–5
funding, 226
training, 244–5
resources, 240
and employment-related training, 346
funding, 226
training, 244–5
resources, 240
assessment of students, 232
funding, 226
training, 244–5
resources, 240
continuing education, 245, 246–7
funding, 226
training, 244–5
resources, 240
curriculum, 231–2
funding, 226
training, 244–5
resources, 240
distance, 231, 243–4, 247
funding, 226
training, 244–5
resources, 240
early childhood, 228–30
funding, 226
training, 244–5
resources, 240
Education Development Initiative (EDI), 234–5
training, 244–5
resources, 240
expenditure on, 226–8, 241–3
training, 244–5
resources, 240
future plans, 249
training, 244–5
resources, 240
health, 194–7, 198–9
training, 244–5
resources, 240
information studies and teacher librarians, 240
training, 244–5
resources, 240
information technology in, 295
training, 244–5
resources, 240
international comparisons, 236, 243
training, 244–5
resources, 240
international students, 238
training, 244–5
resources, 240
internationalisation of, 243
training, 244–5
resources, 240
Ko e Ako a e Kakai Pasifika, Pacific Islands Plan, 246
training, 244–5
resources, 240
Māori language, 225–6, 229, 231, 248–9
training, 244–5
resources, 240
Māori, 229, 231, 234, 248–9
training, 244–5
resources, 240
national qualifications framework, 232–3
training, 244–5
resources, 240
national secondary qualifications, 232–3
training, 244–5
resources, 240
numbers of institutions, 235
training, 244–5
resources, 240
Pacific Island people's, 246
training, 244–5
resources, 240
polytechnics, 225, 235–7, 240
training, 244–5
resources, 240
post-compulsory, 241–7
training, 244–5
resources, 240
pre-school, 221, 226, 228–30, 248–9
training, 244–5
resources, 240
primary schools, 228–31
training, 244–5
resources, 240
private training establishments, 246
training, 244–5
resources, 240
public expenditure on, 226
training, 244–5
resources, 240
Reading Recovery, 239
training, 244–5
resources, 240
REAPs, 239
training, 244–5
resources, 240
Review Office, 66, 22–3
training, 244–5
resources, 240
rural, 230, 239, 247
training, 244–5
resources, 240
Service Centres, 225
training, 244–5
resources, 240
Skill New Zealand, 246
training, 244–5
resources, 240
special education, 221–2, 227, 238
training, 244–5
resources, 240
student support, 227–8, 242–3
training, 244–5
resources, 240
teacher trainees, 239, 240
training, 244–5
resources, 240
teaching position numbers, 242
resources, 240
technical, 244
tertiaryie, funding of, 227–8
universities, 241–2
wananga, 235, 245, 249
educational comparisons, OECD, 236
Educational Research, NZ Council for, 224
EECA see Energy Efficiency and Conservation Authority EEZ (Exclusive Economic Zone), 101, 463
Efficiency Strategy, Energy, 484
EFTPOS in NZ, 598, 599
Egg Producers Federation, 446
eggs, 446
El Niño and southern oscillation, 11
elections, Clerk of Writs, 61, 68
electoral boundaries (& maps), 58–60
local government, 79–80
Parliamentary, 58–62
results, 60
voting, 58 59, 60
electoral boundaries (& maps), 58–60
referendums, 48
reform, MMP, 48, 59, 60
electorates, parliamentary
listed, 45th Parliament, 53–4
Māori, 60, 61
maps, 59–60
Electricity Corporation of New Zealand, 476–7
electricity, 473, 474, 475, 476–8
consumption of, 475
generation of, 477–8
markets, 478 *
embassies overseas, 86 (map)
emergency benefits, 165
emigration, 119–20
Employment Contracts Act 1991, 358–60
Court, 253, 359–60
Service, New Zealand, 349–52
Tribunal, 254, 359–60
employment (see also labour force, labour relations, occupations, unemployment)
and human rights see Human Rights Commission
and training programmes, 347–52
assistance, 347–52
farm, 431
in manufacturing, 493
OECD comparisons, 351
of women, 336–7
recorded by Business Directory, 424–5
status, 337–42
surveys of, 335
temporary workers, visas for, 150
employment-related training, education and, 346
endangered species, 14
Energy Efficiency and Conservation Authority (EECA), 484
Energy Efficiency Strategy, 484
energy, 473–488
and mineral production, 484–8
coal, 474, 481–2
electricity, 474, 476–8
gas, 474, 480
geothermal, 474, 482
oil, 474, 478–80
renewable, 482–4
consumption, 475, 476
coal, 474, 481–2
electricity, 474, 476–8
gas, 474, 480
geothermal, 474, 482
oil, 474, 478–80
renewable, 482–4
demand and supply, 476
coal, 474, 481–2
electricity, 474, 476–8
gas, 474, 480
geothermal, 474, 482
oil, 474, 478–80
renewable, 482–4
forms of,
coal, 474, 481–2
electricity, 474, 476–8
gas, 474, 480
geothermal, 474, 482
oil, 474, 478–80
renewable, 482–4
fossil, 478–82
geothermal, 474, 482
policy, 474–5
primary, 474, 475, 476
renewable, 482–4
research projects 1996, 474–5
review of energy research, 474
supply, 475–6
wind, 483–4
engineering industry, 491
Enterprise Allowance, 349
Survey, annual, 423
entertainment expenses, 616
Environment 2010 Strategy, 396–7
Ministry for the, 66, 397, 400, 401–2
Parliamentary Commissioner for the, 73
environment (see also conservation of natural resources, planning), 393–402
and mineral exploitation, 396, 484–8
Antarctic, 401
air quality, 399
biodiversity, 400
global issues, 399–402
recycling, 396
Resource Management Act 1991, 393–8
sustainable management, 394, 395
Environmental Choice NZ, 385
Science and Research, Institute of (ESR), 380
environmental
directorates (in Ministry), 401–2
health, 187
issues, global, 399–402
labelling, 385
planning, 393–7
Equal Employment Opportunities (EEO) Trust, 141, 362
Opportunities Tribunal (now Complaints Review Tribunal), 254
equal employment opportunities (EEO), 64, 141, 362
pay, 362
ERO (Education Review Office), 66, 222–3
erosion, control of, 398
ESR (Institute of Environmental Science and Research), 380
Ethnic Affairs Service (Department of Internal Affairs), 146
ethnic councils, 146
ethnic groups in NZ, 121–5, 146
ages of, 147, 160
distribution of, 161
ethnic minorities, race relations, 141
ethnicity of population, 145–7
1996 Census, 124
Māori, see Māori population
Pacific Island Polynesians, see Pacific Island population
see also race relations, Treaty of Waitangi
EU (European Union) relations with, 572–4
European countries, benefit reciprocity with some, 171
relations with, 87–8, 560–1, 567, 572–4
European Union (EU), 572–4
events, chronology of
in 1996, 17
in NZ history, 18–43
ex-nuptial births see births outside marriage, 115
ex-overseas cars, registration of, 523
examinations, 232–5, 241, 242
exchange rates, 602, 603, 604
excise duties, 550, 619, 620
Exclusive Economic Zone (EEZ), 101, 463
Executive Council, 57
exotic forests see planted production forests
expenditures, of households, 131–3
Export Price Index, 580
Volume Index, 581
export team, Māori, 565
exports, 552–6
agricultural (various), 437–44, 553–4, 556–64
agricultural, see agricultural marketing, of products
coal, 482
dairy produce, 443–4, 553–4
deer velvet, 574
Export Price Index, 580
Export Volume Index, 581
fish, crustaceans and molluscs, 468–70, 552, 555
flowers, 454, 552
forestry products, 461–2, 554
fruit and nuts, 556
global overview 1996, 566–7
ironsand, 484
major commodities exported, 552
meat and edible offal, 552–3
seafood, 468–71, 552, 555
Terms of Trade Index, 579
various commodities, 552–6
venison, 439
wool, 555–6
external migration, 119–20
transactions account of the national economy, 410

F

factories (see also manufacturing enterprises, occupational safety and health), 492–3
fair trading legislation, 529–30, 534–6
families (see also households), 114–16
Family Courts, 253
Family Planning Association, 192
family assistance (see also benefits), 166–7, 614–5
child care subsidy, 167, 168
daycare, 229
group conferences, 174–5
health, 190
law, 139–40, 172–5, 253
planning, 190
60 years of, 192
size, 116
support (see also benefits), 166–7, 614
violence unit, 178
Fanau Centre, Cannons Creek, 172
FAO (UN Food and Agricultural Organisation), 92, 432
MAF involvement in, 432
farm employment, 431
Farm Expenses Price Index, 432–3
farming
chicken and egg, 496
international, 432, 433–4
see agriculture, livestock
venison, 439
farmland, sales of 390
farms, numbers and types, 429–30
fauna, see vegetation and wildlife
FCCC see UNFCCC
feature films, 303
Fellows of the Royal Society of New Zealand see FRSNZ
ferries, inter-island, 513, 519
fertiliser (see also topdressing), 431
fertility & population change, 113–16, 125–6
FIBV (International Federation of Stock Exchanges), NZ Stock Exchange membership of, 538
figures and surveys, fisheries, 469
Fiji, relations with, 83, 559
Film and Literature Board of Review, 304
film, 297, 302, 303, 306–7
film censorship, 304
chronology of NZ feature films (1914–96), 303
NZ Film Archive, 306–7
NZ Film Commission, 302
films and video recordings, 303–4
classification and censorship of, 271, 304–5
financial institutions, 597–600
fingerprints, 274
fire and general insurance, 540–2, 544
Fire Service, NZ, 216–17
fire, deaths from, 217
fire fighting and prevention, 216–7, 405
first flag of NZ, ii, 80–1
fiscal responsibility of government 606–7
fish
catch, 464–5
exports, 468–70, 552, 555
processing and marketing, 470–2
species, 464–5
stocks, assessment of, 469
fisheries
history of management, 466
legislation, 463
management past and present, 463, 466
Ministry of, 66, 463
protection, 101
research, 380, 468, 469
stock assessment, 468
Te Ohu Kai Moana (Treaty of Waitangi Fisheries Commission), 465, 467–8
fishing
by foreign vessels, 465
foreign, 468
Industry Board, 470–2
foreign, 468
management, Māori, 466
foreign, 468
recreational, 324–5
foreign, 468
research, 379
foreign, 468
vessels, 465
foreign, 468
fitness and leisure, funding for, 317
Five Power Defence Arrangements, 98
flag, first New Zealand, ii, 80–1
NZ, 68, 80
flora, see vegetation and wildlife
flowers, exports, 454, 552
fluoridation, 197
Food and Agricultural Organisation (FAO), 92, 432
food
Australia and New Zealand food standards, 490
expenditure on, 132
prices, world-wide, 590–1
standards, 188
footwear industry, 492
Foreign Affairs and Trade, Ministry of, 66, 83, 86, 243, 400
foreign aid, 89–92
currency credit ratings, 625
exchange market, 602, 604
currency debt, 625
exchange market, 602, 604
policy, 83, 89–92
signals intelligence, GCSB, 105
trade see overseas trade
forest funds, 405
parks, 402, 404
forest product exports, 461–2, 554
forest products, see timber and forest products
Forest Research Institute, 378, 460
Forestry Corporation Ltd, New Zealand, (former), 456–7
Forestry, Ministry of, 66, 460
forestry and logging, 455–63
employment in, 458–9
exports, 461–2, 554
private, 456–8
products, see timber and forest products
research into, 378
state, 456–8
training in, 458–9
forests, 15, 16, 455–8
conservation and protection, 402–5
foreign ownership, 457
indigenous, 455, 459, 460, 462
ownership of, 456–8
planted production, 455–8, 459–60
planting of, 455–6
Foundation for Research, Science and Technology (FORST), 376–8
Framework Convention on Climate Change, UN, see UNFCCC
France, youth exchange with, 87
Fraud Office, Serious, 68–9, 537
freight see cargo
French nuclear testing
International Court of Justice case, 257
Fringe Benefit Tax, 616, 620
FRSNZ (Fellows of the Royal Society of NZ), 380
fruit
export, 556
production, 450–3
fuels
coal, 474, 481–2, 485
gas, 480–1, 478–9
oil, 473, 474, 476, 478, 481
full-time labour force and work, 337–41
funeral grant, 168

G

galleries, art, 305
gambling, 327–9
gaming, 327, 328
major activities, 328
gas, 478–9, 480–1
GATT (see also WTO), 93, 385, 400, 429
GCSB (Government Communications Security Bureau), 105
GDP see gross domestic product
gender analysis framework, Ministry of Women's Affairs, 143
gender see sex
gene (DNA) typing, 267
General Agreement on Tariffs and Trade (GATT) (see also WTO), 93, 385, 400, 429
Assembly see Parliament
general elections, 58–62, geographical features, 1–2
glaciers, 1
lakes, 2
mountains, 1
rivers, 2
geography, 1–15
Geological and Nuclear Sciences, Institute of, 379
geology (see also minerals and mineral products), 3, 5–7, 12, 16
geothermal power, 474, 483
geriatric hospitals, 189
glaciers, 1
global environmental issues, NZ involvement, 399–402
warming, 399–400, 484
glossary of statistical terms, 627–30
goat farming, 430, 436
gold, 485, 486
Goods and Services Tax (GST), 550, 617, 620–1
government departments (see also State Sector),
audits of, 71
complaints about, 71
descriptions of, 64–70
expenditure by, 610–11
heads of, 64
Official Information Act, 71
government finance, see central government finance
government fiscal responsibility, 606–7
government stock and securities, 622, 624–5
Government, the, 57
Communications Security Bureau (GCSB), 105
Superannuation Fund, 66, 543–4
Governor-General, 47–8, 57
Governors see Vice-Regal representatives
graduates, university, 241–2
grain, 448–50
grape growing and wine production, 452–3
greenstone, 487
greyhound racing, 327, 329
gross domestic product (GDP), 409, 411–2
by production group, 411–2
in constant prices, 413–17
gross fixed capital formation, 412
GST (Goods and Services Tax), 550, 617, 620–1
guaranteed minimum family income, 614
guardianship, 139

H

Habitat for Humanity, 499
Hakituatahi o Aotearoa, Te, first flag of NZ, ii, 80–1
handicapped child allowance, 167
persons, see disabled persons
harbours, see ports
Harmonised System, 550
hazardous substances, 395–6
hazards, volcanic, 4–5
Health and Disability Commissioner, 190
Health, Information Service, 197
Ministry of, 66–7, 179, 186, 188, 191, 194, 196, 197, 202
Research Council, 181
Sponsorship Council, 198–9
Healthy Lifestyles (He Oranga Poutama), 318
health (see also hospitals), 179–207
AIDS, 191
alcohol consumption, 195–6
and causes of death, 198–200
subsidies, 184–7
expenditure on, 180
Children's Health Camps, 193
children's, 193–4
dental, 180, 193, 196–7
disability support, 190
disability, 189, 202–3
environmental, 187
expenditure, 181–2, 186
family, 190, 192
information technology in, 295
inspection, 187
insurance, 545
Māori see Māori health
medical benefits, 184–7
mental, 189–90,206–7
occupational overuse syndrome (OOS), 218
occupational, 217–9
professionals, 182–4
promotion, 194, 198–9
public, 187–202
research, 181
sector reforms, 179
service structure, 179–82
statistics, 197
voluntary sector, 189
women's, 191–2
heart transplants, 205
heritage, historical and cultural, 18–43, 305–8
preserving, 68
HES (Household Economic Survey), 131
High Court, 252, 255–6, 260
Higher School Certificate, 233
highways, 520–2
Hillary Commission for Sport, Fitness and Leisure, 317–9,324
hire purchase, 547–8
historic places, 305–6
reserves, 306, 404
Historical Branch, Department of Internal Affairs, 67
history, NZ (1893–1996), 18–43
Hocken Library, 314
holidays, 362
and leave worldwide (graph), 362
home appliances, 133
nursing and home help, 186
ownership, 128–9, 130–1,498–502
homeseekers lending, 498–502
homicide, 213, 214, 215, 259, 261
honey, 446–8, 564
honours and awards, 44, 46, 47, 48–49
Order of Merit, 44
Order of New Zealand, 47
system, NZ, 48–9
horse racing, 327–9
horses, Kaimanawa, 395
Horticulture and Food Research, Institute of, 378
horticulture (see also crops), 429–30, 432,448–54
exports, 452,497–8, 552, 556
flower exports, 454, 552
hospitals, 202–7
administration, 202
charges, 185
diseases and conditions treated, 203
geriatric, 186, 189,202
injury and accident patients, 203–5
inpatients discharged, 202
length of stay, 203
mental health facilities, 203, 206
patients treated, 203–4
public, 202–7
hotels and restaurants, 532–3, 545–7
hours of work, 337–9
House of Representatives, see Parliament Household Economic Survey see FTES
Labour Force Survey, 335–43
households, 127–40
amenities of, 133
composition of, 127–31
income and expenditure, 131–3
transport, 131, 133
Housing Corporation of NZ, 67, 500–1
Ministry of, 67, 501–2
New Zealand Limited, 501
housing (see also buildings, dwellings)
community programmes, 501
construction, 502–9
costs of, 498, 504–5
earth buildings, 506
expenditure on, 132
government agencies, 500–2
Habitat for Humanity, 499
home ownership, 102–3, 128, 129, 130, 497
loans for, 498–9
log homes, 506
māori, 129–31
market, 497–8
Pacific Island Polynesians, 129–31
rental, 499
straw bale houses, 503
volunteer house building, 499
Human Rights Act 1993, 48–9
Commission, 140
human rights, 140–51
promotion of equal employment opportunities, 64, 141,362
human rights overseas, 92
hunting and shooting, 325
hydro-electric power, 473, 478

I

IBRD (World Bank), 94–5
ICAO (International Civil Aviation Organisation), 515
IEA (International Energy Agency), 96
illness, disability and, 167, 168
ILO (International Labour Organisation), 514
NZ membership of, 361
IMF (International Monetary Fund), 419,421–2
immigration, 119–20, 149–51
country of birth, 147
from Asia, 119–20
from Pacific, 119–20
immunisation, 194
IMO (International Marine Organisation), 514
Import Price Index, 580
Volume Index, 581–2
imported cars, 558
registration, 523
imports, 556–9
Import Price Index, 580
Import Volume Index, 581–2
major commodities imported, 556–7
mechanical and electrical machinery, 557
mineral fuels, 558
plastic and plastic articles, 558–9
Terms of Trade Index, 579
vehicles, 558
imprisonment, see prisons and prison inmates imputation credits, 616
Income Support Service, NZ, 164–5
income support, 163–72
income tax,
companies, 616–7
personal, 612–4, 616
revenue from, 620–1
incomes, 353–8
of households, 131
Incorporated Societies Act 1908, 532
indemnification for touring exhibitions, 297
Independent Broadcasting Association, 284
indexes, explained, 628
indexes, listed
Capital Goods Price Index, 593–4
Consumers Price Index, 583–91
Export Price Index, 580
Export Volume Index, 581
Farm Expenses Price Index, 432–3
Import Price Index, 580
Import Volume Index, 581–2
Labour Cost Index, 354–5
Prevailing Weekly Wage Rates Index (discontinued), 354
Producers Price Index, 592–3
Real Wage Rate, 356–8
Terms of Trade Index, 579
Industrial Research, Institute of, 380
industrial accidents, 214
design, 384
relations see labour relations
safety, see occupational safety
structure of labour force, 341–2
Industry Labelling Body (films and videos), 304
Training Organisations (ITOs), 347,454,458
industry, see manufacturing industry
infant mortality, 199–200
inflation, see Consumers Price Index
information technology, 293–5
education, 295
health, 295
industry, 293–4
National Library, 312
policy, 293
information, matching, 72–3
privacy of, 72–3
injuries, compensation for criminal, 265
hospital patients treated for, 204
road motor accidents, 212
rugby, preventing, 323
sports, claims for, 323 Inland Revenue Department (see also taxes and taxation), 67,612–18
insolvency, 539–40
Instant Kiwi, Daily Keno, Lotto (gambling), 327
Institute of Economic Research, NZ, 383
Institute of Environmental Science and Research, 380
Geological and Nuclear Sciences, 379
Institute of International Affairs, 96
Insurance and Savings Ombudsman, 540
Insurance Council of NZ, 541–2
insurance, (see also superannuation), 540–5
accident, 207–9
earthquake damage, 216, 541–2
fire and general, 541–2, 544
life, 540–2, 544
medical, 544
natural disaster,216
Ombudsman, 540
overseas involvement in, 541–2
regulation, 540–1
Integrated Digital Network (ISDN), 288–9
inter-industry studies, 410–11, 423
inter-island ferry services, 513, 519
Inter-Parliamentary Union (IPU), 52
NZ MPs in, 52
inter-Parliamentary relations 1996, 52
interest rates, see monetary policy, mortgages
interest, tax on, 616
Internal Affairs, Department of, 66, 67, 68, 69, 70, 115, 146
internal migration, 109–10
International Bank for Reconstruction and Development (IBRD), 94–5
Civil Aviation Organisation (ICAO), 515
Commission of Jurists (ICJ), 253
Court of Justice, NZ case on French nuclear testing, 257
Development Association (IDA), 94–5
Federation of Stock Exchanges (FIBV), NZ Stock Exchange membership, 538
Finance Corporation (IFC), 94–5
Labour Organisation (ILO), 514
Marine Organisation (IMO), 514
Monetary Fund (IMF), 419, 421–3
Organisation for Standardisation (ISO), 385, 490
Organisation of Securities Commissions (IOSCO), 536
Whaling Commission (IWC), 340, 399
international agricultural policies and farming, NZ's relationship with, 432, 433–4
affairs, understanding, 96
abortion rates, 201
beer prices, 196
consumer prices and CPI, 590–1
daily television viewing, 279
defence expenditure, 102
education, 236
employment, 351
farming, 433–4
infant mortality, 200
leave and holidays, 362
life expectancy (historical), 118
motor accident death rates, 212
newspaper sales, 286
OECD, 236, 351
personnel in r & d, 376
postal prices, 290
press freedom, 285
residential telephone charges, 289
standards of living, 134
unemployment, 351
airline services, 516–7
abortion rates, 201
beer prices, 196
consumer prices and CPI, 590–1
daily television viewing, 279
defence expenditure, 102
education, 236
employment, 351
farming, 433–4
infant mortality, 200
leave and holidays, 362
life expectancy (historical), 118
motor accident death rates, 212
newspaper sales, 286
OECD, 236, 351
personnel in r & d, 376
postal prices, 290
press freedom, 285
residential telephone charges, 289
standards of living, 134
unemployment, 351
comparisons
abortion rates, 201
beer prices, 196
consumer prices and CPI, 590–1
daily television viewing, 279
defence expenditure, 102
education, 236
employment, 351
farming, 433–4
infant mortality, 200
leave and holidays, 362
life expectancy (historical), 118
motor accident death rates, 212
newspaper sales, 286
OECD, 236, 351
personnel in r & d, 376
postal prices, 290
press freedom, 285
residential telephone charges, 289
standards of living, 134
unemployment, 351
credit rating agencies, 625
defence relationships, 98–100
education (Ministry of Education), 243
farming, 433–4
fraud, Serious Fraud Office action against, 537
investment position, NZ's, 421–2
money-laundering, inter-departmental group against, 537
organisations, participation in, 92–6
relations (Chapter 4), 83–97
science links, 378
trade, 566–7
Internet, 7, 293–4, 612
earthquake information by, 7
Treasury on, 612
Interpol, NZ links with, 272
introduced plants and animals, 13, 15
invalids benefit see benefits
IOSCO (International Organisation of Securities Commissions), 536
iron (see also steel making), 484
ISDN (Integrated Digital Network), 288–9
islands, outlying, 1
ISO (International Organisation for Standardisation), 385, 490
ITOs (Industry Training Organisations), 347
Forestry, 458
Horticulture, 454
IWC (International Whaling Commission), 340
iwi locations (map) and developments, 152, 155–6
publications, 286
Māori Congress, 156, 158
Treaty settlements, 154–5

J

Japan, relations with, 85, 566–9
student and youth exchanges with, 235
Job Plus, 349
job protection (parental leave), 362
search allowance, 164
Job Search, Student, 344
journal publishing, science, 368–9
Journal, School, 223
judges and judiciary, 251–4
Jurists, International Commission of (ICJ), NZ connection, 253
jury service, 256
justice
convictions, 260–3, 264
criminal, 258–65
Ministry of, 67
sentencing, 263–5
system of, see courts, law

K

kai o te moana kaupapa tiakina, nga, 466
Kaimanawa horses, 394
Kaitiaki Māori, te, (Māori Trustee), 390
Kermadec Islands, 1
kindergartens, 211, 228–30, 248
kiwifruit, exports, 556
production, 451–2
Kiwinet (National Library information network), 312
kohanga reo, 158–9, 229, 235, 236, 237, 248
Korea, relations with, 86, 566, 570
Korowai Aroha Aotearoa, Te, 138
kura kaupapa Māori, 231, 248–9

L

labelling, environmental, 384, 385
laboratory technologists, medical, 184
Labour Cost Index (LCI), 354–5
labour force (see also employment, unemployment), 335–43
definition of, 335
employment status, 339–40
full-time, 337–41
Household Labour Force Survey, 335–43
industrial structure, 341–2
market, international organisations, 361
occupational structure, 342–3
OECD comparisons, 351
part-time, 337, 339
participation rates, 335–6
Quarterly Employment Survey, 335, 337–42, 354
survey of, 335–6
women in, 336–7
labour market organisations, 361
labour relations, (see also unions, work stoppages), 358–64
bargaining arrangements, 358
disputes, 253, 254
hours of work, 360
minimum entitlements, 360
personal grievances and disputes, 358–9
public and annual holidays, 360–1
rights and obligations, 359
specialist courts and tribunals, 253, 254
strikes and lockouts, 359, 363–4
Labour, Department of, 67, 217–9, 335, 343
lakes, area of, 2
lamb, 429, 431, 435–6, 437, 438
Land Corporation, 392
Transport Fund, 521, 620
Transport Safety Authority, 210–12, 524
Valuation Tribunal, 392
land
agricultural, 370–1, 393, 430
area, total, 1, 393
controls on acquisition, 389–90
Crown, 391–2
leasehold, 391–2
Māori Trustee, 390
Māori, 390–1
Queen's Chain 391
recreational, 402–4
registration of ownership, 389
surveys of, 388–9
transfers of, 389
use of, 393
valuation of, 392
Landcare Research NZ Ltd, 379
Māori see reo Māori
Latin America and Caribbean countries, relations with, 86–7
latitude and longitude, 1
Law Commission, 255
law,
100 years of women in, 255
lay observers, 254
Legal Services Board, 258
sources of, 255
laws, 49
lay observers, 254
lead-free petrol, 479
lead-rubber bearings, used overseas, 502
leap second, 15
Learning Media Limited, 223–4, 225
leasehold land, 391–2
leave and holidays worldwide (graph), 362
for employees, 360–2
annual, special, parental, 361–2
international comparisons, 362
legal aid, 221, 256, 258
Legal Services Act 1991, 256
Services Board, 258
legal system, 251–6
tender, 601
legislation, 49
leisure activities, outdoor, 324–7
Liable Parent Contribution Scheme, 615
libraries and books, 308–15
libraries
Alexander Turnbull, 311
information online, 312
Oral History Centre, 311
Carnegie, 312
information online, 312
Oral History Centre, 311
library education, 310
information online, 312
Oral History Centre, 311
library history, 310
information online, 312
Oral History Centre, 311
National Library of NZ, 68, 310–11
information online, 312
Oral History Centre, 311
NZ Library and Information Association, 309
public and educational, 309–10
teacher librarians, 240
Turnbull Library, 311
Library and Information Association, NZ (NZLIA), 309
life expectancy, 116–19, 125
at birth, 1880–1995, 116
1960 to 1992, 153
international comparisons, 134
Māori, 153
life insurance, 485, 540–2, 544
lighthouses, 514
limit setting, fisheries, 468
Limited Service Volunteer scheme (defence), 101
Link Centres, 67
liquidation, of companies, 540
liquor licensing, 532–3
liquor see alcohol
literature, 304, 308–15
livestock, 429–31, 435–8
cattle, 429, 430–1, 435–8
deer farming, 430–1, 436
distribution of, 436
goat farming, 430–1, 436
health services for, 433–4
pigs, 430–1, 437, 445–6
poultry, 446
quarantine of, 433–4
sheep, and sheep farming, 429, 430–1, 435, 437, 438–9, 440–2
local authorities (see also local government), 74–80; maps, 76–7
population of, 112–3
rating and valuation, 392, 625–6
roading, 522
statistics, 625
Local Government Commission, 80
local government, 74–80
Auckland Regional Services Trust, 79
boundaries, 76–7
community boards, 78–9
elections and membership, 79–80
finance, 625–6
legislation, 74–5
organisation, 75
regional councils, 78
regions, population of, 112–3
special purpose local authorities, 79
territorial authorities, 78–9
unitary authorities, 78
lockouts, 359, 363–4
log homes, 506
lotteries and lotto, 297, 327, 328, 329, 330
Lotteries Commission, NZ, 330
Lottery Grants Board, NZ, 330
lottery profits, allocation, 329
Lotto, Instant Kiwi, Daily Keno (gambling), 327, 329

M

magazines, 285–6, 288
magazines and newspapers, Māori, 286
mail services, 290–3
major trading partners, 559–75
management, fisheries, (Nga kai o te moana kaupapa tiakina), 466
Mangai Paho, Te, Māori broadcasting, 278, 279
manufacturing industry, 489–96
assistance to, 492–5
enterprises, 492–4
groups, 491–2
growth issues, 490
quarterly survey of, 495, 496
sectors, 490–2
manufacturing statistics, 495–6
Māori (see also Māori education, Māori health, Māori population, Treaty of Waitangi)
arts board of Creative NZ, Te Waka Toi, 298
broadcasting, 278, 279
Māori broadcasting, Te Mangai Paho, 278
community services, 138, 156, 158
Congress, 156, 158
Council, New Zealand, 156
Māori descent, 122
Development, Ministry of (Te Puni Kokiri), 67, 155, 390, 391
kokiri centres, 159
Te Ohu Kai Moana, 465–8
Te kaitiaki Māori (Māori Trustee), 390
research, 224
education see Māori education
kokiri centres, 159
Te Ohu Kai Moana, 465–8
Te kaitiaki Māori (Māori Trustee), 390
research, 224
electorates, 58–9, 60, 61
kokiri centres, 159
Te Ohu Kai Moana, 465–8
Te kaitiaki Māori (Māori Trustee), 390
research, 224
employment and training of, 347
kokiri centres, 159
Te Ohu Kai Moana, 465–8
Te kaitiaki Māori (Māori Trustee), 390
research, 224
export team, Te Roopu Hinonga Māori, 565
Te Ohu Kai Moana, 465–8
Te kaitiaki Māori (Māori Trustee), 390
research, 224
fisheries, 463–8
Te Ohu Kai Moana, 465–8
Te kaitiaki Māori (Māori Trustee), 390
research, 224
geographical distribution, 152
Te kaitiaki Māori (Māori Trustee), 390
research, 224
health see Māori health
Te kaitiaki Māori (Māori Trustee), 390
research, 224
Heritage Council, 306
Te kaitiaki Māori (Māori Trustee), 390
research, 224
housing, 129–31
Te kaitiaki Māori (Māori Trustee), 390
research, 224
iwi, 152
Te kaitiaki Māori (Māori Trustee), 390
research, 224
justice, 390–1
Te kaitiaki Māori (Māori Trustee), 390
research, 224
kohanga reo, 229, 235, 237, 248, 158, 159
Te kaitiaki Māori (Māori Trustee), 390
research, 224
kura kaupapa, 248
Te kaitiaki Māori (Māori Trustee), 390
research, 224
Land and Māori Appellate Court, 253, 390–1
Te kaitiaki Māori (Māori Trustee), 390
research, 224
land claims process, 155
Te kaitiaki Māori (Māori Trustee), 390
research, 224
land, 390–1
Te kaitiaki Māori (Māori Trustee), 390
research, 224
language see reo
research, 224
language publications, 226
research, 224
Option, technical information, 60
research, 224
population see Māori population
research, 224
newspapers and magazines, 286
research, 224
prison inmates, 269–70
research, 224
reo (language), 158–9, 229, 231, 235–7
research, 224
Te Mangai Paho (broadcasting), 278, 279
Te Ohu Kai Moana (Treaty of Waitangi Fisheries Commission), 465–7
Te Puni Kokiri, 67, 155, 390, 391
tourism, 332
training and employment assistance, 347
tribal (iwi) locations (map) and developments, 152, 155–6
Trustee, 390
Whakatohea settlement, 154
wardens, 158
Women's Welfare League, 158
women, 153, 158
Māori education, 221–2, 237, 245, 228–33
early childhood education, 248
kohanga reo, 158, 159, 229, 235, 237, 248, 211
kura kaupapa, 231, 248–9
Māori Education Trust, 225
research, 224
secondary school leavers, 234
students in education, 228–33
tertiaryie education, 245, 249
unit of Education Review Office (ERO), 222–3
wananga, 237, 245, 249
Māori health, 190
children's health, 193–4
infant mortality, 199
life expectancy, 118, 153
Māori Women's Welfare League, 158
mental health, 189
Māori population
Māori population, age distribution, 121, 122, 124
age and sex/gender of, 120–1, 151, 153, 191–2
birth and death rates of, 114, 116–17, 153, 190
changes, 116, 153
ex-nuptial births, 116
fertility, 116, 123
geographical distribution, 151
households and dwellings, 129–31
infant mortality, 199
life expectancy, 119, 153
mapping, 387
marine parks and reserves, 404–5
pollution, 399, 512, 515
wildlife, 404–5
marital status, 135–6
Maritime Safety Authority, 514–5
marketing authorities for agricultural products,
apples and pears, 450
dairy products, 443
kiwifruit, 451
meat, 438
marriage and marriages, 135–40
marriage, age at, 115, 135–7
celebrants, 115, 135
counselling, 137
dissolution, 138–9
legislation, 138
rate of, 115
rates, 135
same sex, 139
marriages, registration of, 115
same sex, 139
mass media, 277–86
maternal deaths, 200
maternity benefits, 186
leave, 362
meat and meat products, 437–8
beef, 438
chicken, 446
consumption, 439
exports, 439–40, 552
pigmeats, 445–6
prices, 439–40, 553
NZ Meat Producers Board, 438
processing, 437
sheepmeats, 437
veal, 438
venison, 439
media, 277–86
advertising, 286–7
and culture programme, Asia 2000, 283
broadcasting, 277–85
magazines, 285–6
newspapers, 285–6
Press Council, 287
press freedom, NZ in international ranking, 285
radio, 282–5
television, 277, 279–81
Medical Council, 182
medical insurance, 545
laboratory technologists, 184
practitioners, 182
radiation technologists, 184
medicines and drugs, control of, 185–6
Members of Parliament, 53–6
listed, 53–6
salaries and allowances, 52–3
Memorial Trust, Winston Churchill, 95
mental health facilities, 204, 206–7
merchandise imports, controlling, 556
merchant banks, 600
merchant navy qualifications, 514
metals, 484–5
gold, 485, 486
industry, 484–5, 488
iron, 484
meteorology, see climate
MFAT (Ministry of Foreign Affairs and Trade) see Ministry of Foreign Affairs Middle East, relations with, 88, 566
midwives, 182
migration
and immigration, 119, 123–4, 149–51, 160–1
external, 119–20
internal, 109–10
military museums, 97
military pensions, 169
milk and milk products (see also dairy products), 443–5
mineral exploitation, 396, 484–5
fuels, imports and supplies, 475, 478, 484–5
minerals and mineral products (see also mining), 484–5
coal, 481–2
metallic, 485
non-metallic, 485–7
production, 484–5, 486
minimum wage, 360
mining (see also minerals and mineral products), and quarrying statistics, 485–6
laws on, 396
Ministers of the Crown
list of, 57–8
salaries and allowances of, 52–3, 396, 397, 398, 399, 400
Ministry for the Environment, 66
Ministry of Agriculture (MAF), 64, 373, 399, 432, 448
Civil Defence, 215
decade of, 530
overseas posts (map), 86
tenth anniversary, 143
Commerce, 65, 277, 293, 383, 396, 479, 494, 531
decade of, 530
overseas posts (map), 86
tenth anniversary, 143
Consumer Affairs, 529, 530–1
decade of, 530
overseas posts (map), 86
tenth anniversary, 143
Cultural Affairs, 65, 297
overseas posts (map), 86
tenth anniversary, 143
Defence, 66, 97
overseas posts (map), 86
tenth anniversary, 143
Education, 66, 222, 224, 225, 226, 227, 249
overseas posts (map), 86
tenth anniversary, 143
Fisheries, 66, 399, 463
overseas posts (map), 86
tenth anniversary, 143
Foreign Affairs and Trade (MFAT), 66, 83–90, 400;
overseas posts (map), 86
tenth anniversary, 143
Forestry, 66, 455, 460
tenth anniversary, 143
Health, 66–7, 179, 186, 188, 191, 194, 196, 197, 202
tenth anniversary, 143
Housing, 67, 501–2
tenth anniversary, 143
Justice, 67
tenth anniversary, 143
Māori Development (Te Puni Kokiri), 67, 155, 390
tenth anniversary, 143
Pacific Island Affairs, 68, 161–2
tenth anniversary, 143
Research, Science and Technology, 68, 369
tenth anniversary, 143
Transport, 69, 511
tenth anniversary, 143
Women's Affairs, 70, 143
tenth anniversary, 143
Youth Affairs, 70, 144, 319, 352
MMP referendum, 62
monetary policy, 601–2
money, 601–4
monopolies, 534–5
Moriori and Rekohu (Chatham Islands), 157
mortality (see also deaths and death rates), 116–9
mortgages, 498–9
Housing Corporation, 500
interest rates of, 498
motor vehicle industry, 491
Motor Vehicles Securities Register, 524
motor vehicles, 522–7
inspection, 525
registration and licensing, 422–3
motorcycles, registration, 521, 523
mountain biking, 326
mountaineering and tramping, 326
mountains, height of, 1
movable public holidays, 362
MPs, after 1996 election, 53–4
salaries and allowances, 52–3
travel overseas, 52
women, 55–6
multilateral affairs (MFAT), 91
assistance, 91–2
murder, 214, 259, 261
Museum of New Zealand Te Papa Tongarewa, 305
museums and art galleries, 305
music, 299–300, 301, 302

N

NACEW (National Advisory Council on the Employment of Women), 336–7
narcotics, see drugs
National Accounts, NZ System of (NZSNA), 407–17
Advisory Committee on Health and Disability (National Health Committee), 180
online information, 312, 313
Advisory Council on the Employment of Women (NACEW), 336–7
online information, 312, 313
Archives, 307–8
online information, 312, 313
Cervical Screening Programme (NCSP), 192
online information, 312, 313
Council of Women (NCW), 144
online information, 312, 313
Drug Intelligence Bureau, 274–5
online information, 312, 313
Fish and Game Council, 405
online information, 312, 313
Institute of Atmosphere and Water Research (NIW A), 380
online information, 312, 313
Library of NZ, 68, 310–13
online information, 312, 313
Parole Board, 272
Provident Fund, 68, 543
War Memorial, carillon, 68
national anthems, 68, 81
collection of art and culture, 305–8
disposable income, 408–9
emblems and anthems, 81
income and outlay, 409
parks (see also forest parks, reserves), 402–4
planning, environmental, 393–6
native plants and animals, 12–15
natural disaster insurance, 216
gas, 473, 474,480, 481
increase of population, 107–8,113–16 nature reserves, 404
nautical charts for NZ and South Pacific, 101
navigational aids, 514, 515, 517
navy (Royal NZ Navy), 100, 101,102–3
neighbourhood law offices, 220
New Zealand, overseas posts, 83–93; map, 86
newspapers and magazines, 244–5
Māori, 286
Niue, migration from, 160
relationship with, 83, 97
NIWA (National Institute of Atmosphere and Water Research), 380
non-profit organisations, Incorporated Societies Act, 532
non-resident companies, taxation on, 617
North Island, population of, 109
nuclear science, 379
nurses, 182–3
Nursing Council of NZ, 182–3
NZ AIDS Foundation, 191
NZ Antarctic Institute, 374
NZ Antarctic Programme, 374–5, 401
NZ Apple and Pear Marketing Board, 450
NZ Army, 98–100, 103–4
NZ Arts Assembly, 326
NZ Australia Closer Economic Relations Trade Agreement (CER), 60, 434, 507
NZ Bankers‘ Association, 599
NZ Bibliographic Network (NZBN), 312
NZ Cadet Forces, 101
NZ Children and Young Persons Service (NZCYPS), 172–5
NZ Choral Federation, 302
NZ Community Funding Agency, 172
NZ Conservation Authority, 405
NZ Council for Educational Research (NZCER), 224
NZ Council of Trade Unions, 358
NZ Customs Service, 65, 550–1, 553
NZ Dairy Board, 443–4
NZ Debt Management Office (NZDMO), 622
NZ Defence Force, 66, 97–104
NZ Employers‘ Federation, 358
NZ Employment Service, 349–52
NZ Film Archive, 306–7
NZ Film Commission, 302
NZ Fire Service, 216–7
NZ Fish and Game Council, 405
NZ Fishing Industry Board, 470–2
NZ Forestry Corporation Ltd (until 1995), 456
NZ Government stock and securities, 599, 602–3, 623, 625
NZ Government, the, 49–58
NZ Health Information Service, 197
NZ Historic Places Trust, 305–6
NZ Household Economic Survey (HES), 131
NZ Income Support Service, 164–5, 500, 615
NZ Institute of Architects (NZIA), building awards of, 503
NZ Institute of Economic Research (NZIER), 382, 383
NZ Kiwifruit Marketing Board, 451
NZ Library and Information Association (NZLIA), 309
NZ Lotteries Commission, 327, 328, 330
NZ Lottery Grants Board, 327, 329, 330
NZ Māori Council, 156
NZ Meat Producers Board, 438–9
NZ Olympic Committee (NZOC), 324
NZ On Air (Broadcasting Commission), 277–8, 279, 283, 285
NZ Patent Office, 383–4
NZ Police, 68, 272–5, 524–7
overseas officers and Interpol, 272
NZ Pork Industry Board, 445–6
NZ Post Ltd, 290–3
NZ Press Council, 287
NZ Qualifications Authority, 222, 244
NZ Railways see Tranz Rail, 518–20
NZ Sign Language (NZSL), 142
NZ Sports Drug Agency, 324
NZ Sports Foundation, 324
NZ Standard Time, 15
NZ Stock Exchange, 538–9
NZ superannuation, 164, 167, 168, 169, 615
portability, 171
NZ Symphony Orchestra, 299
NZ System of National Accounts (NZSNA), 407–17
NZ territories, 96–7
NZ Tourism Board, 333
NZ Trade Development Board (Tradenz), 83, 86 (map), 549–50
NZ Water Safety Council, 212–3
NZ Workers‘ Educational Association (WEA), 247
NZ-France friendship fund, 87
NZCER (New Zealand Council of Educational Research), 224
NZIA (NZ Institute of Architects), building awards of, 503
NZIER (NZ Institute of Economic Research), 382, 383
NZLIA (NZ Library and Information Association), 309
NZODA (NZ Official Development Assistance), 89–92
NZQA (NZ Qualifications Authority), 222
NZSL (New Zealand Sign Language), 142
NZSNA (New Zealand System of National Accounts), 407–17

O

obituaries 1996 (individual names not indexed), 44–6
Observatory, Carter, 379
occupational overuse syndrome (OOS), 218, 219
occupational safety and health, 21–9
Service (OSH), Department of Labour, 218–9
occupational structure of labour force, 342–3
occupational therapists, 183
occupations, 342–3, 424–5
Oceanic Control System (OCS), for aircraft navigation, 515, 517
OECD (Organisation for Economic Co-operation and Development), 95–6, 243, 490
agricultural directorate, NZ involvement in, 432
education comparisons, 236
comparisons, 236, 351
trade and environment, 400
labour and unemployment information, 361
labour force comparisons, 351
offences, criminal, 259
Office of Film and Literature Classification, 271, 304
Office of Treaty Settlements, 68, 154–5
Official Development Assistance (ODA), 89–92
Official Information Act, 71
Official Information, Directory of, 71
official links with the world, NZ's, 91
visitors from overseas, 68
oil and gas reserves, 481
oil, 473, 474, 476, 478–80, 481
imported, 474
Olympic Games, NZ at, 321, 322, 324
Ombudsman, Insurance and Savings, 540
Ombudsmen, 71–2
complaints to, 72
OOS (occupational overuse syndrome), 218, 219
Open Polytechnic of New Zealand, The (TOPNZ), 243–4
open space protection, Queen Elizabeth II National Trust, 406
opera, more than 100 years, 301
optometrists and opticians, 183
Oral History Centre, National Library, 311
Oranga Poutama, He (healthy lifestyles), 318
Order of Merit, NZ, 44
Order of NZ (ONZ), 47, 48
overseas honorary member, 47
Organisation for Economic Co-operation and Development see OECD
orphans benefit see benefits
outdoor leisure, 324–6
outlying islands, 1
overseas aid, 89–92
applications for patents, trade marks and designs, 384
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
assistance, 89–92
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
balance of payments, 418–20
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
cargo loaded and unloaded, 575–8
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
companies, 535
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
country of birth, 146–7
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
debt (outstanding liabilities of NZ to the rest of the world), 420–1, 622, 623, 624, 625
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
exchange transactions, 602–4
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
honorary member of ONZ, 47
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
operators in coastal shipping, 512
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
postal services, NZ Post, 292–3
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
representation (map), 86
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
shipping services, 513, 514
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
students, 238
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
trade (Chapter 25) (see also exports, imports, shipping), 549–82
balance of merchandise trade, 551–2
exports, 552–6
global overview, 566–7
imports, 556–9
indexes 579–82
major trading partners, 559–74
overseas cargo, 575–8
overseas trade indexes, 579–82
visitors, 332–3
ozone depletion in 1996, 10
depletion, Montreal Protocol, 400

P

Pacific countries, relations with, 83–4, 90, 91
Pacific Forum Line, 84
Pacific Island Affairs, Ministry of, 68, 161–2
Pacific Island population, 124, 125, 160–2
age distribution of, 121, 160–1
employment and training, 347, 351
geographical distribution, 161
households & dwellings, 129–31
Western Samoan immigration quota, 149
Anau Ako Pasifika project, 229, 246
arts development (Creative NZ), 298
Business Development Trust, 162
education 246, 249
Industrial Development Scheme (PIIDS), 84
language groups, 229
Polynesian Education Foundation, (PIPEF), 249
secondary school leavers, 234
PACIFICA, 161
PADET (Peace and Disarmament Trust) fellows to Canberra, 87
PAFT (Parents As First Teachers), 229–30
paper, imports, 557
production, 460–1
research, 378
Paralympics 1996, 323
parental leave, 362
Parents as First Teachers, 229–30
parks (see also reserves)
forest, 404
marine, 404–5
national, 402–4
Parliament see also elections, 47–8, 49–62
Parliament
elections to, 58–62
House of Representatives, 49–50
inter-Parliamentary relations, 52
legislative procedures, 51
members of, 53–4
MMP in, 59
opposition, 50
Parliamentary Service, 51–2
political parties in, 50–1
proceedings, 52
salaries and allowances, 52–3
sessions of, 51, 52
Speaker, 50
Standing Orders, 50
women in, 55–6
Parliamentary Commissioner for the Environment, 73
complaints to, 73
looking back 10 years, 73
Parliamentary delegations visit NZ, 52
Library, 313–4
Select Committees exchange with Australia, 52
Service, 51–2
parole (sentence), 266, 270
part-time labour force and work, 337–9
partnerships, business, 534
passports, and visas for entry, 149–50
Patent Co-operation Treaty (PCT) for international patenting, 383
patents and trade marks, 383
overseas applications to file, 383, 384
paternity leave, 362
patients, hospital, 202–7
PAYE (pay as you earn) income tax, 612
peacekeeping, commitments overseas 94; map, 99
penal institutions see prisons, 268–72
pensions, benefits and, (see also benefits & pensions, superannuation), 165–171
performing arts, 298–302
perinatal mortality, 199–200
periodic detention (sentence), 266
petrol, lead-free, 479
petroleum
consumption, 474, 479
imports and refining, 479, 480, 558
processing and distribution, 479, 480
prospecting, 481
PHARMAC, 185
condoms 187
pharmaceutical benefits, 185
pharmacists, 183–4
physical activity, 196
physiotherapists, 183
PIC Netball Club, 162
pigs, 430, 431, 432, 437, 445–6
Pinus radiata, 455, 459, 460
Planning Tribunal, 254
planning
authorisations for building, 504–5
district, 395
environmental, 393–6
national, 393
regional, 394
plant variety, biodiversity, 400
rights, 449–50
planted production forests, 455–6, 459–60
plants, see vegetation and wildlife
Platform for Action, Beijing, implementation of, 145
Playcentres, 228
playgroups and childcare centres, 228, 229, 236, 237
Plunket Society, 189, 192
podiatrists, 183
poisoning, deaths from, 213, 214
Police Complaints Authority, 275
Police, NZ, 68, 272–5
Police Museum, 275
police, operations, 272–3
armed offenders squads, 272
numbers, 272
overseas officers and Interpol, 272
political parties, 49–50
votes for, 58, 61–2
pollution
air, 399
water, 397, 399, 515
Polynesians see Pacific Island population Polytechnic, Open, 243–4
polytechnics, 225, 235, 236, 237, 243–4
pop, brief history of, 313
population (see also Census of Population and Dwellings), 107–126
age at marriage, 135–7
age distribution, 120–1
age of, 120–1
censuses 1858–1996, 107
change, 113–120
cities, 110–111
composition of, 120–5
country of birth, 149
ethnic groups in, 121–2, 124–5
ethnicity of, 145–7
fertility of, 114–6, 125–6
geographical distribution, 109–113
growth, 107–9
life expectancy, 116–19
Māori, see Māori population
marital status, 135–6
migration changes, 119–20
natural increase & fertility, 113–16
North and South Islands, 109
NZers in Australia, 119
local government areas, 112–13
Pacific Island age distribution, 160
Pacific Island geographical distribution, 161
projections and future issues, 125–6
regional councils, 113, 110
religious profession, 144–5
see also Māori population, Pacific Island population sex/gender of, 121
territorial authorities, 112–13
urban areas, 110–11
urban-rural & drift, 110–11
ports, 514, 575–8
postage stamps, 1996 issues, 291
health stamps, 193
stamp club, 293
postal services, 290–3
cost, speed, volumes, 290, 291, 292–3
poultry and eggs, 446
pre-school education see education, early childhood kohanga reo, 58–9, 229, 235, 236, 237, 248
Premier House, Wellington, 69
Premiers and Prime Ministers, 56
Press Council, 287
press freedom, NZ in international ranking, 285
Prevailing Weekly Wage Rates Index (discontinued), 354
preventive detention (sentence), 268
price indexes
Capital Goods Price Index, 593–4
Consumers Price Index, 583–91
Export Prices Index, 580
Farm Expenses Price Index, 432–3
House Price Index, 498
Import Prices Index, 580
Producers Price Index, 592–3
Real Wage Rate Index, 356–8
Terms of Trade Index, 579
prices
beer, worldwide, 196
exports and imports, 579–80
housing, 497–8
international comparison, CPI, 590–1
retail, 584, 587
shopping, 584, 587
transport, 512
primary schools, 230–40
Prime Minister and Cabinet, Department of the, 68
Prime Minister, 56
salary and allowances, 52–3
Prime Ministers and Premiers (1856–1995), 56
prisons and prison inmates, 265–72
age and ethnicity, 269
classification and treatment, 271
sex/gender, 267–8, 269–70
classification and treatment, 271
major offences, 269
classification and treatment, 271
number, 267–8
classification and treatment, 271
offending history, 270
classification and treatment, 271
parole system, 272, 270
classification and treatment, 271
sentence length, 270
classification and treatment, 271
institutions, 268
traffic offenders, 265
Prisons Service, Public, 267
Privacy Act 1993, 72
Privacy Commissioner, 72–3
complaints to, 73
privacy of information, 71, 72–3
private schools, 231
Privy Council, Judicial Committee of the, 251, 257
probation (supervision), 266
Problem Resolution Service, 617–8
proceeds of crime, 256
Producers Price Index, 592–3
Production Accounts, 411–12
Protected Natural Areas Programme, 405
Provident Fund, National, 68
psychiatric hospitals, 206–7
patients and diagnoses, 206–7
Psychological Service (Department of Corrections), 272
psychologists, 183
public accounts, 610–12
public broadcasting fee, 277
public debt, 622–5
interest on, 624
maturity of, 625
per capita, 624
securities on issue, 601, 623, 625
transactions, 623
public health, 187–202
public holidays, 362
public lands (see also forest parks, reserves)
Crown land, 391–2
national parks, 402–4
Queen Elizabeth II National Trust, 406
walkways, 326
Public Prisons Service (Department of Corrections), 267
public service (see also government departments, state sector)
gender ratio, 63
senior staff remuneration, 65
staff employed, 62–3
Public Trust Office, The, 68, 74
publishing
books, 308–9
in Pacific Islands languages, 247
local, 308
newspapers and magazines, 285–6
science journals, 368–9
pulp and paper, imports, 557
production, 460–1
research, 378
Puni Kokiri, Te, 67, 155, 390, 391

Q

Qualifications Authority, NZ, 222, 244
quarantine, 433, 460
quarries and quarrying, see mining
Quarterly Economic Survey of Manufacturing, 495–6
Quarterly Employment Survey, 335, 337, 353–4
Quarterly Survey of Retail Trade, 545–8
Queen's Chain, 391
Queen's telegrams to centenarians, 66
Queen Elizabeth II National Trust, 406
open space protection, 406
quilts, 314
quota management, fish, 463–4, 468

R

Race Relations Conciliator, 141
race complaints, 141
relations, 141
racing, betting, 327–8
horse and greyhound, 327–8
taxation, 620
radiation technologists, medical, 184
radio, 282–5
Radio Broadcasters Association (RBA), 284
Radio New Zealand Sound Archives, 284
radiocommunications, 282–5
radiographers, 184
railways, 518–20
construction and engineering, 519
overseas ownership of, 518
passenger services, 519
Tranz Rail, 518–20
rainfall 1996, 8
records, 8
Raoul Island, 1
rapuara, The Careers Service, 222, 348
rates, local authority, 625
Reading Recovery, 239
real wage rates, 356–8
REAPs (Rural Education Activities Programme), 239
receivership for companies, 539–40
Recording Industry Association of New Zealand (RIANZ), 313
recreation and sport, 317–26
Hillary Commission for Sport, Fitness and Leisure, 317–8,324
participation in, 317, 323
recreation reserves, 404
referendum, Clerk of Writs, 68
reform,
economic, in NZ, 426
electoral, MMP, 59
of cheques, 597
of health sector, 179
of national economy, chronology of, 426
of State sector, 63
Refuge, Women's, 173–4
refugees, 125, 149–50
regional affairs (MFAT), 83–6
regional councils, 78
Māori population, 152
migration between, 110
pacific Island population, 161
population of, 113
Regional Fish and Game Councils, 405
regional health authorities (RHAs), 179, 181, 182, 202
remuneration of chief executives, 182
regional planning, environmental, 393–5
regional television, 281
registration of, banks, 595–6
ex-overseas cars, 523
motor vehicles, 523
motorcycles, 521
taxis, trucks, 523
tractors, 523
rehabilitation, after accidents, 207–8
Relationship Services, 137–8
religious profession of population, 144–5
renewable energy, 482–4
rental housing, 499–500
reo Māori, te
Māori Language Commission, 158–9
newspapers and magazines, 286
publications in, 226
speakers of, 159
reparation for crime, 265
Representation Commission, 58–9
reproduction rates, 114–16, 123, 125–6
research associations, 382
research
agricultural, 373
Antarctic, 97, 374
arts, 299
building, 509
dental, 197
economic, 382, 383
100 years of, 382
educational, 224
energy, 474
environmental, 374, 380
fisheries, 380, 468, 469
forestry, 378
geological and nuclear, 379
health, 181
horticultural and food, 378
industrial, 373
medical, 371
personnel, international comparison, 376
scientific, 367–74
water and atmospheric, 380
wool, 441
Research, Science and Technology, Foundation for (FORST), 370, 376–7
Ministry of(MoRST), 68, 375
Reserve Bank of New Zealand, 595–7
reserves
land, 404
marine, 404–5
Residential Tenancies Tribunal, 254
resource conservation, see conservation of natural resource
resource management, and Resource Management Act, 393–9, 484
restaurants and hotels, 533, 545–7
restrictive trade practices, 535–6
retail prices, 584, 587
retail trade and services, 545–8
credit sales, 547–8
shop trading hours, 532
Retirement Commissioner, 170
retirement, NZ superannuation, 164, 167, 168
transitional benefit see benefits RHAs see regional health enterprises
Rights of the Child, UN Convention on the, 140
Rio Declaration, UNCED, 399
rivers (see also hydro-electric power), 2, 398
length of, 2
RNZAF at Nowra, NSW, 100
road code, Streelsense, 524
roads, 521–2
accidents, 210–12
expenditure on, 522
safety, 198–9, 211, 524–6,
speed limits, 526
taxes for, 620
Transit New Zealand, 521
rock types, 3
Roopu Hinonga Māori, Te (Māori export team), 565
Roopu Wahine Māori Toko I Te Ora, Te, (Māori Women's Welfare League), 158
Ross Dependency, 1, 97
Royal Commissions, 62
New Zealand Navy (RNZN), 102–3
NZ Air Force (RNZAF), 104
NZ Ballet, 300
Society of NZ, 380
Fellows of, 380
Ruapehu eruptions 1995 and 1996, 6–7 rugby
injuries, prevention of, 323
rural education activities programmes (REAPs), 239
rural population, 109–10
Russia, relations with, 87–8, 561, 567

S

S mark, 385
safety, 524–6
fire, 215, 217
marine, 514
occupational, 217–19
road, 198–9, 210–11, 524–6
water, 212–13
salaries, see wages
same sex marriages, 139
sanctuary, whale, 399
satellite links
Correspondence School, 231
telephone 289
scenic reserves, 404
schizophrenia, mental health facilities patients, 206, 207
School Bulletins, 222
School Certificate, 232, 234
School Dental Service, 197
School Journal, The, 223
schools (see also education, students, teachers and teaching)
boarding, 227, 231
boards of trustees, 225
compulsory schooling, 230
curriculum, 231–2
funding, 226–7
home-based schooling, 231
in health camps, 193
independent, 231
integrated, 231
kura kaupapa, 231
library service, 312
primary, 230–40
private, 231
property management, 227
secondary, 230–40
State, 230
student numbers, 236–8
terms and 4-year term, 228, 231
The Correspondence School, 230, 231, 247
science and scientific services (see also research), 367–74
awards, 380
Antarctic, 374–5
Carter Observatory, 379
links, international, 378
science journal publishing, NZ, 368–9
science-technology centres, 377
scientific international links, 378
reserves, 404
seafood exports, 468–70, 555
trade, 468–70
seaports, 514, 575–8
search and rescue (SAR), 101
police-controlled, 273
secondary schools, 230–40
Securities Commission, 536–7
securities, government, 602–4
Security Intelligence Service (SIS), 105
seismic networks, 4
seismicity, 5–7
select committees, 44th Parliament, 50
45th Parliament, 51
senior citizens, health services, 189
unit and Minister, 178
sentencing
community-based, 266
for non-traffic offences, 263–4
preventive detention, 268
traffic offences, 264–5
Serious Fraud Office, 68, 537
international fraud, 537
sex/gender
college of education students, 243
hospital inpatients discharges, 202
of prison inmates, 270
polytech students, 243
population censuses 1858–1996, 121
secondary school leavers, 234
university enrolments and degrees awarded, 241, 242, 243
university staff, 242
university students, 243
share market, 538
sheep, and sheep farming, 429, 430–1, 435, 437, 438–9, 440–2
sheepmeats, 438–9
shipping (see also cargo, ports) 512–14
bulk, 513
coastal, 513, 578
ferries, 513, 518
fishing vessels, 468
overseas, 513
register of, 514
services to, 514–15
shipwrecks, 514
shooting and hunting, 325
shop trading hours, 532
sickness benefit see benefits
sign language, NZ, 142
SIS (Security Intelligence Service), 105
Sixth Form Certificate, 233, 234
ski competitions, international, in NZ, 325
skiing, 325
SKY television, 281
Small Business Tax Information Service, 617
Smokefree campaigns, 198–9
smoking, tobacco, 194–5
snowfalls in 1996, 12
Social Policy Agency, Department of Social Welfare, 178
social security, overseas reciprocal agreements, 171
social services, 172–8
Citizens Advice Bureaux (CAB), 176–7
Social Welfare, Department of, 69, 163, 168, 169
social welfare, 163–71
benefits see benefits and pensions
child support, 169, 615
expenditure, 163
income support, 163–7
supplementary payments, 168
SOI see Southern Oscillation Index
soil conservation, 398
soil types, 3
Solicitor-General, 257
sound archives, Radio New Zealand, 284
South Island, population of, 109
South Pacific
Commission, 84
countries, relations with, 84, 96, 559–60
Environment Programme (SPREP), 84, 400
Forum, 84
nautical charts, 101
Regional Trade and Economic Co-operation Agreement (SPARTECA), 84
Southern Ocean Whale Sanctuary, 339
Southern Oscillation and Southern Oscillation Index (SOI), and El Niño 1996, 11
sovereigns of NZ, 47
SPARTECA (South Pacific Regional Trade and Economic Co-operation Agreement), 84
Speaker of the House of Representatives, 49, 53
Special Education Service, 221–2
Special Tactics Group (police), 272
Special Education 2000, 238
special education, 221–2, 227, 238
needs grant, 168
purpose local authorities, 79
species, endangered, 14
Sport, Fitness and Leisure, Hillary Commission for, 317–18
sport, 317–26
1996 highlights, 320
brief history, NZ in, 321
1996 women's highlights, 321
brief history, NZ in, 321
ACC claims for injuries, 323
brief history, NZ in, 321
betting, 329
brief history, NZ in, 321
drug testing, 324
brief history, NZ in, 321
fitness & leisure, funding for, 317
brief history, NZ in, 321
funding for, 317
brief history, NZ in, 321
NZ Olympic Committee Inc. (NZOC) formerly NZ Olympic & Commonwealth Games Association, 324
brief history, NZ in, 321
NZ Sports Foundation, 324
brief history, NZ in, 321
Olympic Games 1996, 321, 322
brief history, NZ in, 321
Paralympics 1996, 323
participation in, 323
preventing rugby injuries, 323
involvement overseas, 320–3
SPREP (South Pacific Regional Environment Programme), 84, 400
stamp duty, 618
stamps, postage, 193, 291
standard of living (international indicators), 134
Standards Council, 385
New Zealand, 385
Standing Orders of the House of Representatives, 50, 51
state forests, forest parks, 402, 404
plantation forests, 456–8
State sector (see also government departments, State-owned enterprises, central government finance), 62–74
Crown Company Monitoring Advisory Unit (CCMAU), 74, 179, 375
reform of, 63
State Services Commissioner, 63–4
State-owned enterprises, 71, 662–3
sales of, 623
transfer of land to, 391
Statistics New Zealand, 69
Statutes, 47, 51, 255
Stewart Island, 1
stillbirths see perinatal mortality
Stock Exchange, 538–9
market surveillance panel, 538–9
stocks, increase in, 413
straw bale houses, 503
Streetsense, road code, 524
strikes, 359, 363
student allowances and loans, 242–3, 615
student exchange with Japan, 235
Student Job Search, 344
student loans, 242–3, 615
students,
colleges of education, 235, 239
Māori, 225–6, 234, 247–9
numbers, 236, 238, 240, 248–9
overseas, 238
part-time, 236
primary school, 236, 237
support for, 227, 242–3
technical, 244
university, 241–3
Study Right, 227
sudden infant death syndrome (SIDS), 200 sulphur, 487
sunshine 1996, 11
records, 8
Superannuation Fund, Government, 66
superannuation, 542–4
Government Superannuation Fund, 66, 542–4
National Provident Fund, 68, 543–4
NZ superannuation surcharge, 615
supervision (sentence), 266
surcharge on NZ superannuation, 615
survey, Agriculture Production, 436, 448
Survey and Land Information, Department of, see Land Information NZ, 67, 387–9, 391–2
surveys
hydrographic, 101
land, 388–9
Survey Board of New Zealand, 388
Symphony Orchestra, NZ, 299–300

T

TAB (Totalisator Agency Board), 328
tariff (customs), 550
taxes and taxation (see also customs), 612–21
company income tax, 616–7
deductions, 613
double, agreements on, 614
excise duties, 550, 619, 620
Fringe Benefit Tax, 616, 620
goods and services (GST), 550, 617, 620–1
on interest and dividends, 616
on non-resident companies, 617
on property, 618
per capita, 612
personal income tax, 612–14
racing taxation, 620
retirement tax and superannuation surcharge, 615
revenue from, 620–1
review authorities, 620
roads taxation, 620
stamp duty, 618
taxis, trucks, 523
Te Hakituatahi o Aotearoa, ii, 80–1
Te Mangai Paho (Māori Broadcasting Funding Agency), 278
Te Reo Māori, 159
teacher exchanges, 243
Teacher Registration Board, 225
teachers and teaching, continuing education, 245
registration of, 225
training and trainees, 239, 240, 244, 245
teachers colleges see colleges of education
TEC (Trade and Economic Co-operation Agreement) with Canada, 86
technical education, 243–4
Telarc New Zealand, 384–5
Telecom Corporation of NZ, 289–90
Telecommunications Users Association of NZ Inc. (TUANZ), 295
telecommunications, 288–90
telegrams, 290
telephone services, 289
residential charges, international comparison, 289
Television New Zealand, 279
television, 277–81
daily viewing time, 279
history of in NZ, 280
local content, 281
overseas ownership of, and overseas programmes, 279–81
regional, 281
sets in households, 133
top 20 programmes in 1996, 279
temperatures 1996, 10–12
weather, 8
Tenancy Tribunal, 254, 501–2
tenth anniversary, Ministry of Women's Affairs, 143
terms of trade index, 579
territorial authorities, 78, 79
council members, 79
finances, 265–6
population of, 112–13
territories, NZ
Ross Dependency, 1, 97
Tokelau, 1, 96
textiles (see also wool), 491–2
The Correspondence School, 230, 231, 247
timber and forest products, 459–62
exports of, 461–2, 554
imports of, 461, 462
pulp and paper, 460–2
timber preservation, 460
time zone, NZ and Chathams, 15
Tiriti o Waitangi, Te, (Treaty of Waitangi), 47, 141, 153–5, 390
Office of Treaty Settlements, 154–5
Whakatohea settlement, 154
tobacco consumption, 194–5, 219
Tokelau, 1, 96
topdressing, 431, 518
Totalisator Agency Board (TAB), 328
Tourism Board, NZ, 333
tourism, 329–33
accommodation, 331
Facilities Development Grants, 331
impacts (social, environmental), 330
international, 332–3
inward visitor numbers, 332
Māori, 332
NZers travelling overseas, 332
organisations, 333
promotion, 333
visitor expenditure, 330
visitor residences, 333
town milk supply, 443
planning, 393–5, tractors, registration, 523
Trade Development Board (Tradenz), NZ, 549–50, 567
Trade Measurement Unit, 531
trade
domestic see retail trade
overseas applications to register, 383
export, global overview 1996, 566–7
overseas applications to register, 383
external see overseas trade
overseas applications to register, 383
retail, 545–8
overseas applications to register, 383
marks, 383
overseas applications to register, 383
practices, 529–32
representatives overseas, 83, 86, 549
routes, maritime, 512–14
training, 240, 243–4
unions, 358
Tradenz (NZ Trade Development Board), 549–50, 567
overseas posts (map), 86
trading banks, see registered banks
legislation, 595–7
partners, major, 559–74
traditional sites, protection of, 306
Traffic Camera Office, 526
traffic
accidents, 210–12
convictions and sentencing, 264–5
offences, 264–5, 270, 526–7
convictions and sentencing, 264–5
training benefit, 166
training, vocational, 222
tramping and mountaineering, 326
Transfund, 521
Transit New Zealand, 521
transitional retirement benefit see benefits
transnational corporation (TNC), NZ's largest, 552
Transport Accident Investigation Commission, 515
Ministry of, 69, 511
transport (see also Land Transport Safety Authority), 511–27
air, 515–18
expenditure on, 105, 106
household, 131
rail, 518–20
reform of industry, 511
road, 520–7
sea, 512–15
to work, 524
use by tourists, 331
Tranz Rail, 518–20
travel overseas by NZers, 332
Treasury, The, 69, 605–12, 622
Treasury, 1840, 622
treaties
defence agreements, 98–9
trade agreements, 84, 85, 93, 400, 429, 490
Treaty of Waitangi (Tiriti o Waitangi), 47, 141, 153–5, 390
Office of Treaty Settlements, 154–5
Whakatohea settlement, 154
Treaty Settlements, Office of, 154–5
tribunals
Complaints Review, 254
Disputes, 254
Employment, 254
Land Valuation, 392
Planning, 254
Residential Tenancies, 254
Waitangi, 153–5, 254
TUANZ (Telecommunications Users Association of NZ), 295
Turnbull Library, 311
TV3, 279–81

U

UN (United Nations), 92–3
UN Commission for Sustainable Development (CSD), 340
Commission for the Environment and Development (UNCED), 399–400, 490
Convention on Discrimination Against Women (CEDAW), NZer on committee, 92, 144
Convention on the Rights of the Child, 140
Decade for World's Indigenous People, 92
Framework Convention on Climate Change (UNFCCC), 400,
peacekeeping operations, 99–100
World Conference on Women, Beijing, 145
UNCED (UN Commission for the Environment and Development), Rio Declaration, 399
Agenda 21, 399–400, 490
UNCTAD (UN Conference on Trade and Development), NZ Customs involvement with, 553
understanding international affairs, 96
unemployment (see also labour force)
unemployment benefit see benefits
changes in and rate of, 343
ethnicity and age of, 344, 345
OECD comparisons, 351
school qualifications and, 344
UNESCO (UN Educational, Scientific and Cultural Organisation), 93, 243
UNFCC (UN Framework Convention on Climate Change), 400
union membership, 358
unions, of employers, 358
of workers, 358
unitary authorities, 78
United Kingdom, trade with, 565, 567, 570
United Nations (UN) specialised agencies, 92–3, 99, see also FAO, ILO, IMO, UNCTAD, UNESCO, WHO, WIPO
United Nations (UN), 86, 88
United Nations Education, Scientific and Cultural Organisation (UNESCO), 93
United Nations, NZ contribution to, 93
membership of, 92–4
NZ commitment to peacekeeping forces, 88; map, 94
United States, relations with, 86, 99, Universal Postal Union (UPU), NZ membership, 291
universities, 225, 241–3
continuing education, 247
degrees awarded, 241
enrolments, 240
entrance exams, 233, 234
graduate subjects, 242
scholarships and bursaries to, 233
staff numbers, 237, 242
students, 236
unpaid work, 336
unsupported child benefit see benefits
urban areas (see also cities and city councils), 110
population of, 110
USA, foreign currency credit ratings of NZ, 625

V

vaccinations, 185, 193–4
Valuation New Zealand, 69, 392, 497–8
valuation of land, 392
Valuers Registration Board, 392
vegetation and wildlife, 13–15
Vehicle Inspection Certificates (VIC), 525
Vehicle Testing NZ Ltd, 525
velvet, deer, 574
venison exports, 439
veterans pension see benefits
Vice-Regal representatives, 48
Victim Support, 257
video recordings, classification and censorship of, 271, 304
violent offences, convictions for, 261
visas and passports for entry to NZ, 150
vital statistics (see also births and birth rates, deaths and death rates, marriage)
summary (1885–1996), 116
viticulture, 452–3
Vogel House, Lower Hutt, 69
volcanic hazards, 4–5
volcanoes, eruptions since 1846, 4
Ruapehu in 1995 and 1996, 6–7
Taupo Zone, 5
volume indexes of overseas trade, 581–2
voluntary welfare organisations, 189
volunteer house building, 499
Volunteer Service Abroad (VSA), 90
volunteers abroad (VSA) (in Africa, Asia, the Pacific), 90
voting, see elections
VSA (Volunteer Service Abroad), 90

W

wages, 353–8
minimum rates, 360
Waikato River, 398
Waitangi National Trust Board, 406
Tribunal, 153–5, 254
claims process, 155
Treaty of see Treaty of Waitangi
walking and walkways, 326
wananga, 237, 240, 245
war dead, NZ's, 98
war graves and memorials, care of, 69
pensions and allowances see benefits, 169
wardens, Māori, 158
Warrant of Fitness see Vehicle Inspection Certificate (VIC) water, accidents, 212–3
drinking, 186
fluoridation of, 197
pollution, 399, 515
fluoridation of, 197
supply, 397–8
fluoridation of, 197
water and soil management, 396–8
WCO (World Customs Organisation), 490, 553
WEA (New Zealand Workers Educational Association), 247
Wearable Art Awards, 314
weather 1996, 8–12
rainfall records, 8
southern oscillation and El Niño, 11
sunshine, 11
temperatures, 10
wind gusts, 12
welfare organisations, voluntary, 189
Whakatohea settlement, 154
Whale Sanctuary, Southern Ocean, 399
Whaling, International Commission (IWC), NZ involvement, 400
WHO (World Health Organisation), 93
widows benefit see benefits
wildlife, 13–15
reserves, 404
wind gusts, 12
wine consumption, 453
industry, 452–3, 491
Winston Churchill Memorial Trust fellowships, 95
WIPO (World Intellectual Property Organisation), 383
Women, National Council of, 144
women
Convention on Discrimination Against, 144
4th United Nations World Conference on, 145
health of, 191–2
in politics, 55–6
in the labour force, 144, 336–7
in the public service, 63
income, 143
Māori Women's Welfare League, 158
Ministry of Women's Affairs, 70, 143
MPs, 55–6
numbers, 120–1
PACIFICA, 161
ratio in population, 120–1
rights issues, 143–4
sporting highlights 1996, 321
training and employment, 350
Women's Affairs, Ministry of, 70, 143–4
10th anniversary, 143
Refuge, 173–4
Welfare League, Māori, 158
wood, see timber and forest products wool, 440–2
exports, 441–2, 555–6
prices, 440, 441
production, 440
research (WRONZ), 441
Wools of New Zealand, 440–1
work
full-time and part-time, 337–9
stoppages, 359, 363–4
unremunerated, 336
working conditions (see also occupational safety and health), 358–62
hours, 337–9, 360
World Bank, 94–5
Conference on Women, Beijing, 145, 336
Health Organisation (WHO), 93
Intellectual Property Organisation (WIPO), 383
Trade Organisation (WTO), 93–4, 432, 490
world heritage areas, 404
World's Indigenous People, UN Decade for, 92
wrecks, 514
WRONZ (Wool Research Organisation of NZ), 441
WTO (World Trade Organisation), 93–4, 432, 490
MAF involvement in, 432

Y

Youth Affairs, Ministry of, 70, 144, 319, 352
Education Service, police, 273
Court, 253
Programme, Commonwealth, 319
youth benefit, independent, 164
justice residences, 176
NZ-France friendship fund, 87
with Japan, 235
justice services (CYPFS), 175–6
NZ-France friendship fund, 87
with Japan, 235
programmes, see community welfare services travel and exchange
NZ-France friendship fund, 87
with Japan, 235
rights issues, 144, 145

special articles 1997

The items in this index are also included in the main index.

A

abortion, 200–1 [Note: The paragraph on page 201 should follow after the 4th paragraph on page 200, The committee referred to on page 201 is the 1936 special committee, not the 1996 Parliamentary Select Committee.]
agriculture facts, 430–1
AIDS, 191
Antarctic science, 374–5
environment, 401
ANZAC exchanges, 84
Asia 2000 Foundation, 85
business grants programme, 562
education grants programme, 235
media and culture programme, 283
asthma, 191

B

banking, EFTPOS, use of in NZ, 598
Beijing, Platform for Action implementation, 145
betting, sports, 329
broadcasting archives, Radio New Zealand's Sound Archives, 284
building
awards of the NZ Institute of Architects, 503
log homes, 506
straw bale houses, 503
volunteer-built houses, 499
with earth, 506

C

Cannons Creek Fanau Centre, 172
Carnegie libraries, 312
censorship, 271
film, 304
Census 1996, 123
centenarians, Queen's telegrams to, 66
Chatham Islands (Rekohu) and Moriori, 157
chicken and egg, 446
Citizens Advice Bureaux, 176–7
citizens initiated referenda, 62
Commerce Commission, 1996 highlights, 536
conscientious objectors, 101
Consumer Affairs, Ministry of, 10 years, 530
Correspondence School lessons since 1922, 230

D

deaf community and NZ sign language, 142
decade
Ministry of Consumer Affairs, 530
Ministry of Women's Affairs, 143
Parliamentary Commissioner for the Environment, 73
disability, 189
Disabled Servicemen's Re-establishment League, 165

E

earth buildings, housing, 506
economic research, 100 years of, 382
education and employment-related training, 346
education, Pacific Island people's, 246
Efficiency Strategy, Energy, 484
EFTPOS, use of in NZ, 598
endangered species, 14
Energy Efficiency Strategy, 484
environment, Antarctic, 401
ethnic councils, 146
ethnicity (1996 Census), 124
export team, Māori, 565
exports 1996, global overview, 566–7

F

family planning, 60 years of, 192
Fanau Centre, Cannons Creek, 172
film
censorship, 304
chronology of feature films, 303
fingerprints, 274

G

gaming, major activities, 328

H

Habitat for Humanity, 499
Health and Disability Commissioner, 190
Healthy Lifestyles (He Oranga Poutama), 318
heart transplants, 205
honours system, NZ, 48–9
horses, Kaimanawa, 395
housing, earth buildings, 506
log homes, 506
straw bale houses, 503
volunteer house building, 499

I

Incorporated Societies Act, 532
injuries, rugby, preventing, 323
international affairs, understanding, 96
international fraud, Serious Fraud Office, 537
inter-Parliamentary relations 1996, 52

J

Job Search, Student, 344
journal publishing, science, 368–9
Journal, School, 223

K

Kaimanawa horses, 394

L

labour force, OECD comparisons, 351
law, 100 years of women in, 255
lay observers, 253
lead-free petrol, 479
libraries, Carnegie, 312
library history, 310
National Library, Oral History Centre, 311
log homes, 506

M

magazines, newspapers and, Māori, 286
Māori
descent, 122
export team, Te Roopu Hinonga Māori, 565
language publications, 226
newspapers and magazines, 286
Māori Option, technical information, 60
Women's Welfare League, 158
marriages, same sex, 139
media and culture programme, Asia 2000, 283
military museums, 97
Ministry of Consumer Affairs, decade of, 530
Women's Affairs, tenth anniversary, 143
Moriori and Rekohu (Chatham Islands), 157

N

National Council of Women (NCW), 144
newspapers and magazines, Māori, 286
non-profit organisations, Incorporated Societies Act, 532
NZ Institute of Architects (NZIA), building awards of, 503
NZSL (New Zealand Sign Language), 142

O

Occupational Overuse Syndrome (OOS), 218
OECD, labour force comparisons, 351
oil and gas reserves, 481
Olympics, New Zealand at, 321, 322
open space protection, Queen Elizabeth II National Trust, 406
opera, more than 100 years, 301
Oral History Centre, National Library, 311
Oranga Poutama, He (healthy lifestyles), 318
Order of Merit, NZ, 44
ozone depletion in 1996, 10

P

Pacific Island education, 246
PACIFICA, 161
Paralympics 1996, 323
Parliamentary Commissioner for the Environment, 10
years, 73
petrol, lead-free, 479
PIC Netball Club, 162
Platform for Action, Beijing, implementation of, 145
Police Museum, 275
pop, brief history of, 313
publishing, local, 308
in Pacific Islands languages, 247
science journals, 368–9

Q

Queen's telegrams to centenarians, 66
Queen Elizabeth II National Trust, open space protection, 406
quilts, 314

R

Radio New Zealand Sound Archives, 284
Recording Industry Association of New Zealand (RIANZ), 313
Refuge, Women's, 173–4
refugees, 149–50
research, economic, 100 years of, 382
road code, Streetsense, 524
Roopu Hinonga Māori, Te (Māori export team), 565
Wahine Māori Toko I Te Ora, Te. (Māori Women's Welfare League), 158
Ruapehu eruptions 1995 and 1996, 6–7
rugby injuries, preventing, 323

S

same sex marriages, 139
School Bulletins, 222
School Journal, 223
science, Antarctic, 374–5
science journals, publishing, 368–9
science-technology centres, 377
select committees, 44th Parliament, 50
45th Parliament, 51
Serious Fraud Office, international fraud, 537
sign language, NZ, 142
sound archives, Radio New Zealand, 284
southern oscillation and El Niño 1996, 11
species, endangered, 14
sport
1996 highlights, 320
1996 women's highlights, 321
betting, 329
drug testing, 324
Olympics, 321–322
Paralympics, 323
preventing rugby injuries, 323
straw bale houses, 503
Streetsense, road code, 524
Student Job Search, 344
Survey Board of New Zealand, 388

T

television, history of, 280
tenth anniversary, Ministry of Women's Affairs, 143
Transport Accident Investigation Commission, 515
Treasury, 1840, 622

U

understanding international affairs, 96
union membership, 358

V

Vehicle Testing NZ Ltd, 525
Victim Support, 257
volunteer house building, 499

W

war dead, NZ's, 98
Wearable Art Awards, 314
Whakatohea settlement, 154
Women, National Council of, 144
women in Parliament, 55–6
sporting highlights 1996, 321
Women's Affairs, Ministry of, tenth anniversary, 143
Refuge, 173–4
Welfare League, Māori, 158

Appendix A. Photograph acknowledgements

Alexander Turnbull Library
page
2Mt Cook (Birch collection)
23Influenza depot (The Press, Christchurch, collection)
24“Electrolux” advertisement
24Railways poster
93Sir Leslie Munro (United Nations collection)
134Eastbourne Playcentre (Pascoe collection)
167Pro-DPB demonstration (Evening Post collection)
177Immigrant children (National Publicity Studios collection)
181Victoria Ward, Wanganui Hospital (F J Denton collection)
184Dr Paewae, Kaikohe (National Publicity Studios collection)
196“Christmas drinks” (Gordon Burt collection)
200Anti-abortion march (Evening Post collection)
201Pro-choice demonstration (Lee Switzer)
233School milk (John Pascoe collection)
302Wanganui Male Choir (F J Denton collection)
302Downstage poster (Downstage Theatre)
317Cyclists, Petone Esplanade (W H Raine collection)
321Boxing match (William A Price collection)
322Playing croquet
323Curling, Idaburn
324Family camp site
326Chess competitors (Evening Post collection)
348Match factory, Wellington (Labour Department album)
349Match factory, Wellington 1939 (Wilkinson Sword collection)
355Akatarawa relief camp (S C Smith collection)
388Draughtsman, Lands & Survey Dept (National Publicity Studios collection)
407Pay clerks (A P Godber collection)
408PM buying savings certificate (Evening Post collection)
413Bottle-collecting schoolboys (Evening Post collection)
416War certificates poster (Ephemera collection)
417National Savings Bond poster
440Traction engine - bales of wool (Russell Orr collection)
441Loading wool, Napier
441Trucking wool (Making New Zealand collection)
450Ploughing
491Processing cabbages (National Publicity Studios collection)
495Making Mallowpuffs
541Self Help store (Gordon Burt collection)
591Ration book
593World War II queue (New Zealand Free Lance collection)
600Reserve Bank entrance (National Publicity Studios collection)
605IRD counter (Evening Post collection)
Auckland Institute and Museum
page
26Coromandel school children
27Mt Roskill mothers
84Seddon in Nukualofa
138Woodcock-Moffat wedding (Helensville Historical Society)
157Moriori bark carving
163Disabled Servicemen's Re-establishment League
173Children's dormitory, St Mary's Homes Trust, 1926 (Auckland Anglican Diocesan Office)
225School transport [please ignore the? under the photograph]
229Omanaia Native School
285Backblocks home (Auckland Weekly News)
331Auckland Christmas dinner (Auckland Weekly News)
340Making pottery
435Sheep-dipping, Canterbury
444Ganes milking machine stand
447Matamata beekeeping
449Bensemann tomato sizer
452Masterton vineyard
453Flax cutting
479Petrol bowsers
492Cheese-making, Helensville
500Early farmhouse
501Two early suburban homes
536Mobile grocery shop
Museum of New Zealand Te Papa Tongarewa
page
6Napier earthquake
19Mt Cook school and jail
21Dominion Day, Government Buildings
75Municipal building, Te Kuiti (Burton Brothers collection, C.11519)
981st NZEF, Hutt Road
230Te Aute College
301Opera House, Greymouth (Burton Brothers collection, C.14073)
369 and 372Royal Society Exhibition, Wellington Town Hall
481Gas display, Napier Mardi Gras
512Queen's Wharf, Auckland (Burton Brothers collection, C.11229)
512Hinemoa at Port Chalmers
513Arrival at the Hydrabad (G L Adkin collection, B.022783)
518Railway Station, Dannevirke (Burton Brothers collection, B.010871)
528Te Aro Coach Company
547DIC building (Burton Brothers collection, C.11519)
National Archives
page
31Measuring child (Communicate New Zealand collection)
459Kaiangaroa Forest (New Zealand Forestry collection)